The share price of ASX IT specialist Dicker Data Ltd (ASX: DDR) has surged higher this year, buoyed by news the company is making a key strategic acquisition.

Dicker Data shares set a new 52-week high price of $16.60 on 26 August. They have now slid back down to $13 (at the time of writing). However, it still means the Dicker Data share price has risen a whopping 78% over the past 12 months.

Company background

Dicker Data is one of the most established distributors of computer software and hardware in Australia. It partners with many leading international technology vendors, including Cisco Systems Inc (NASDAQ: CSCO), Intel Corporation (NASDAQ: INTC), Dell Technologies Inc (NYSE: DELL), and Microsoft Corporation (NASDAQ: MSFT).

As an IT distributor, Dicker Data doesn’t sell directly to consumers. Instead, it partners with more than 6,900 resellers across Australia and New Zealand. Dicker Data claims to take a customer-centric approach, and works proactively with its resellers to help grow their businesses.

Recent news affecting the Dicker Data share price

The Dicker Data share price took off following the announcement it was acquiring the Exeed Group for $68 million.

Exeed is the second-largest IT distributor in New Zealand, with FY21 full-year normalised earnings before interest, tax, depreciation, and amortisation expenses (EBITDA) expected to be around $15 million. By comparison, Dicker Data (on its own) reported EBITDA of $51 million for the first half of FY21.

Crucially, the deal will give Dicker Data a major foothold in the New Zealand market. Annual revenues for the combined entities is expected to be NZ$500 million.

Dicker Data chair and CEO David Dicker described the deal as “a very satisfying outcome”. Investors liked it too, with the Dicker Data share price rocketing 16% higher the day following the announcement.

What about the financials?

In the wake of the Exeed acquisition news, Dicker Data also released its interim FY21 financial report, covering the six months ended 30 June 2021.

Revenues were up 6.3% versus the prior corresponding period (to $1.07 billion). This might seem like only a modest increase, but the company pointed out it experienced a spike in demand in the first half of FY20. A global shortage of computer chips also had a negative impact on sales over the first half of FY21.

The company said, despite the ongoing chip supply issues, orders were still being placed by resellers, with no cancellations. Dicker Data also stated it was identifying other new growth areas and opportunities. These included return-to-work solutions, 5G technology, and cloud technology.

Dicker Data share price snapshot

Despite the company’s reassurances, Dicker Data shares plunged following the release of the company’s interim results. After surging to new highs on the back of the news of the Exeed acquisition, the Dicker Data share price fell almost 19% on the day of the results announcement.  

Since then, the shares seem to have stabilised at around $13. Nervous shareholders will now be hoping that chip supply issues won’t continue to hurt the company’s top-line growth over the second half of FY21 and beyond.

The post The Dicker Data (ASX:DDR) share price is up 80% over the last 12 months appeared first on The Motley Fool Australia.

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• Which ASX shares are set to finish the week as the top movers on the ASX 300?
• Here are the top 10 ASX 200 shares on Thursday
• Why Altium, Catapult, Dicker Data, & PolyNovo shares are charging higher
• Dicker Data (ASX:DDR) share price surges 5% as directors buy the dip

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Rhys Brock has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Dicker Data Limited and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Intel and has recommended the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The MGC Pharmaceuticals Ltd (ASX: MXC) share price is charging higher on Tuesday.

In early trade, the cannabis company’s shares are up 11.5% to 6.7 cents.

Why is the MGC Pharma share price charging higher?

Investors have been bidding the MGC Pharma share price higher on Tuesday following the release of a positive update on its UK operations.

According to the release, the company’s CannEpil+ product has been approved for UK import and prescription by the Medicine and Healthcare products Regulatory Agency (MHRA).

CannEpil+ is a biosimilar effect-identical product of CannEpil, which is a phytocannabinoid treatment for drug-resistant epilepsy. The release notes that the approval was facilitated by its UK distribution and clinical access partner, Elite Pharmaco.

It notes that this will be the first time that UK authorities have approved an epilepsy treatment that is on a clinical pathway containing THC. This is in response to the urgent need of some patients to have access to a clinical product which has demonstrated its efficacy at treating drug-resistant epilepsy.

CannEpil+ will initially be used to treat ten patients in the UK who suffer from drug-resistant epilepsy. MGC Pharma will be providing CannEpil+ free of charge to these patients on compassionate grounds for six months.

Management commentary

MGC Pharma’s Co-Founder and Managing Director, Roby Zomer, commented: “The approval for the import of CannEpil+ to the UK and the associated compassionate prescriptions is an important step towards our global roll out of the treatment, and our continued commitment to patients. Achieving MHRA approval has been an ongoing process for some time with our UK partner Elite Pharmaco, and we expect the first patients in the UK to begin treat with CannEpil+ in the coming months.”

“The development of our Data Collection App will optimise our understanding of both CannEpil, CannEpil+ and other future treatments, and ultimately provide patients with a better treatment for Refractory Epilepsy, and therefore improving their quality of life. It is also a vitally important foundation for building strong relationships with UK medical regulators and health organisations which will benefit MGC Pharma going forward, as we look to roll out further clinical trials and products in the UK,” he added.

The MGC Pharma share price is now up over 200% in 2021.

The post MGC Pharma (ASX:MXC) share price jumps 11% on UK approval appeared first on The Motley Fool Australia.

More reading

• MGC Pharmaceuticals (ASX:MXC) share price rockets 40% on supply deal

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Ever since Afterpay Ltd (ASX: APT) announced in August that US fintech Square Inc (NYSE: SQ) would buy it out, shareholders have had a dilemma.

It’s a pretty enviable ‘problem’ though. Do you sell your Afterpay shares or hold onto them to convert into Square stock?

One of Afterpay’s biggest fans, Frazis Capital Partners portfolio manager Michael Frazis, revealed last month that his team took the money and ran.

“We sold our Afterpay shares,” Frazis said.

“We owned about 6% in Square, which is one of our largest positions… We’re going to maintain 6% or 7% in Square,… which we think is about right.”

Keeping some Afterpay shares up her sleeve

However, Tribeca Investment Partners portfolio manager Jun Bei Liu told The Motley Fool this week that she had the opposite idea.

“We took some profit but we still remain a shareholder of Afterpay,” she told Ask A Fund Manager this week. 

“I’m still not ruling out that there might be somebody else that will come in to bid for Afterpay — just simply because Afterpay is a first mover and is the market leader in this space. It’s the innovator, and also is the one with the most active user within its ecosystem.”

Ophir Asset Management co-founders Andrew Mitchell and Steven Ng took a similar view to Liu.

“We still own Afterpay in case a bidding war breaks out with potential suitors such as Apple Inc (NASDAQ: AAPL) or PayPal Holdings Inc (NASDAQ: PYPL),” said the fund managers last month.

“Further consolidation in the BNPL industry will likely follow with perhaps 2 to 3 key players left at maturity.”

Liu told The Motley Fool that her team sold down partially because Square is a broader business than Afterpay.

“Though we believe it’s a really great thing for Afterpay to move to the next level, it does reduce that buy now, pay later exposure,” she said.

“Because it’s now part of a bigger group and Square does make quite a lot of money from Bitcoin and a lot of other things. That is quite different from what we used to invest in.”

Square’s $39 billion takeover of the Australian buy now, pay later player is expected to wrap up early in the new year.

The post Why I’m holding my Afterpay (ASX:APT) shares: expert appeared first on The Motley Fool Australia.

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• The Selfwealth (ASX:SWF) share price could be the next Afterpay: fundie

Motley Fool contributor Tony Yoo owns shares of PayPal Holdings and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Apple, PayPal Holdings, and Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Apple and PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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These 3 S&P/ASX 50 Index (ASX: XFL) shares are outperforming their peers, gaining more than 10% in a single month.

The gains are even more impressive given the ASX 50 index itself has fallen by 2.96% over the last 30 days.

So, what’s been sending the ASX 50’s top performers skyrocketing? Let’s take a look.

The top performing ASX 50 shares of the last month

These big-name companies have been outperforming their peers over the last month.

Qantas Airways Limited (ASX: QAN)

The recent performance of the Qantas share price has seen the airline leading the ASX 50 pack.

Qantas shares have gained an impressive 19% over the last 30 days. At Monday’s market close, shares in Australia’s largest airline were swapping hands for $5.31 apiece.

The market has been pushing Qantas higher since the company released its earnings for the 2021 financial year, which included a detailed plan to resume offering international flights.

South32 Ltd (ASX: S32)

The South32 share price is nipping at Qantas’ heels, having gained 15.8% since this time last month.

Right now, investors can get a piece of the ASX 50 mining company for $3.44.

South32’s gains for the month have come about despite the company posting disappointing results for FY21.

However, as The Motley Fool Australia reported last week, the values of many commodities South32 deals with have been taking off, likely pulling the South32 share price up with them. Additionally, some brokers are backing the company as one to watch over the coming years, which has probably excited the market.

Aristocrat Leisure Limited (ASX: ALL)

Finally, taking home the ASX 50’s third-best performance of the last 30 days is Aristocrat Leisure.

The Aristocrat Leisure share price has soared 13.7% since this time last month despite the company’s silence.

As my Foolish colleague reported yesterday, the gaming technology company’s stock might be being boosted by Aristocrat’s continuous growth.

The ASX 50’s worst performer

Unfortunately, where there are winners there must also be losers.

Right now, the worst-performing ASX 50 share of the last 30 days is iron ore giant BHP Group Ltd (ASX: BHP).

The BHP share price has fallen 20% over the last month, potentially driven lower by the company’s plan to merge its oil assets with Woodside Petroleum Limited (ASX: WPL).

The post These 3 ASX 50 shares have gained more than 10% in 30 days appeared first on The Motley Fool Australia.

More reading

• Why I’m holding my Afterpay (ASX:APT) shares: expert
• Can the Temple & Webster (ASX:TPW) share price hit $16?
• The Australian Ethical Investment (ASX:AEF) share price is up 124% this year!
• The Bank of Queensland (ASX:BOQ) share price has fallen 4% since Wednesday. What’s happening?
• Coles (ASX:COL) share price on watch amid latest push to Kmart market

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Temple & Webster Group Ltd (ASX: TPW) share price has been a very strong performer over the last six months.

During this time, the online furniture and homewares retailer’s shares have gained an impressive 40%.

Where next for the Temple & Webster share price?

The good news is that one leading broker believes the Temple & Webster share price can keep on rising from here.

According to a note out of Morgan Stanley, its analysts were pleased with the company’s performance in FY 2021 and also the solid start it has made to the new financial year.

In case you missed it, Temple & Webster reported an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million in FY 2021. It also revealed revenue growth of 49% for the period 1 July to 27 August.

Driving this growth was the accelerating shift from offline to online, a thriving housing market, strong customer growth, and an increase in revenue per active customer.

In response to this update, Morgan Stanley put an overweight rating and $16.00 price target on its shares.

Based on the current Temple & Webster share price of $12.89, this implies potential upside of 24% over the next 12 months.

Why is Morgan Stanley bullish?

Morgan Stanley is bullish on Temple & Webster due to its belief that the company’s strong revenue growth will continue.

This is due partly to the company’s reinvestment program, the structural shift online, and the launch of mobile apps.

All in all, Morgan Stanley believes Temple & Webster is on track to triple its annual revenue to $1 billion in the next four years.

In light of this, the broker sees a lot of value in its shares at the current level and is recommending them as a buy.

The post Can the Temple & Webster (ASX:TPW) share price hit $16? appeared first on The Motley Fool Australia.

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• The Temple & Webster (ASX:TPW) share price is having a bad week but is up 3% today
• 2 leading e-commerce ASX shares that could be buys in September 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Ethical investing is becoming an increasingly common theme for the modern investor. Increasingly, investors not only want to grow their wealth, but they also want to feel good about where that growth comes from. Climate change, the ongoing COVID-19 pandemic, and the many social justice movements that have gained traction globally over the past 12 months have all made people more aware than ever of the impacts the companies they invest in have on society and the environment.

So, it’s no wonder then that Australian Ethical Investment Limited (ASX: AEF) has seen its price rally 124% so far this year (to $11, as at the time of writing).

What is Australian Ethical?

Australian Ethical is a wealth management company with over $6 billion in funds under management (FUM). The company offers a range of managed funds (catering to various risk appetites), as well as superannuation and pension products.

Managed funds pool together cash from multiple individual investors, and then the fund manager decides on how to invest the money. A fund mandate document normally sets out the terms of the investment, including the fund’s strategy and any performance benchmarks – exceeding the annual return on the S&P/ASX200 Index (ASX: XJO), for example.

While other investment vehicles and exchange-traded funds (ETFs) just screen out companies that fall short of various environmental, social and governmental (ESG) targets, Australian Ethical claims to actively seek out companies that are doing good.

So, what does it invest in?

The managed funds in the Australian Ethical product suite are weighted differently according to their risk level and investment objectives. For example, the Australian Ethical Australian Shares fund, which is high risk and focused on long-term growth, invests heavily in the financial and healthcare sectors. However, one of its top ten holdings is New Zealand-based sustainable energy provider Contact Energy Limited (ASX: CEN), which claims that over 80% of its energy is generated by renewable sources.  

The financials

Australian Ethical makes money by charging fees on its investment products. Operating revenue jumped 18% in FY21 (to $58.7 million), on the back of a 50% increase in FUM. Australian Ethical also earned a one-off $2.9 million performance fee on its Emerging Companies Fund, after it beat its one-year retail benchmark return by a whopping 17.3%.

Commenting on the result, Australian Ethical CEO John McMurdo stated: “The planets are aligning very quickly for Australian Ethical with societal, political and economic tailwinds pointing to a business case for responsible investing that is impossible to ignore.”

He went on to say that the company was “embarking on an aggressive growth strategy that reinforces [Australian Ethical’s] existing market share and expands it where we see the most potential.”

Recent moves in the Australian Ethical share price

After a brief dip around June and July, the Australian Ethical share price has taken off again. Since the release of the company’s full-year results on 26 August, the Australian Ethical share price has gained almost 16%.

And after those incredibly bullish comments from CEO John McMurdo, the Australian Ethical share price will definitely be one to watch over the coming months.  

The post The Australian Ethical Investment (ASX:AEF) share price is up 124% this year! appeared first on The Motley Fool Australia.

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• Here are the 3 heaviest trading ASX 200 shares on Monday

Motley Fool contributor Rhys Brock owns shares of Australian Ethical Investment Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Bank of Queensland Limited (ASX: BOQ) share price has struggled in the last few days.  

After closing yesterday’s trading session at $9.30, shares in the bank have tumbled more than 4% from their highs last Wednesday.

Let’s take a look at what’s been weighing down the Bank of Queensland share price.

Weaker market drags Bank of Queensland share price

The Bank of Queensland hasn’t released any price-sensitive news that could explain the slump in its share price.

As a result, weakness in the bank’s shares can be attributed to several factors

Firstly, general weakness in the broader market over the past few days could explain why the Bank of Queensland share price has struggled.

Concerns over the US economy triggered a broad market sell-off with many investors looking to take profits after a strong gain in 2021.

In addition, shares in the Bank of Queensland could be the victim of weaker sentiment across the banking sector.

This follows several downgrades for notable banks such as Macquarie Group Ltd (ASX: MQG) and National Australia Bank Ltd. (ASX: NAB).

More on the Bank of Queensland share price

Despite struggling over the past few days, shares in Bank of Queensland have had a stellar year thus far.

Since the start of 2021, the bank’s share price has gained more than 24%.

By comparison, the broader S&P/ASX200 Index (ASX: XJO) has only managed to claw 12% for the year.

There have been various catalysts that have helped propel the Bank of Queensland share price higher this year.

The Bank of Queensland has had a strong start to the first-half of FY21.

For the first-half, the bank recorded a 9% increase in cash earnings to $165 million and a 66% lift in statutory net profit after tax to $154 million.

The bank also boosted its interim dividend by 54% to 17 cents per share, fully franked.

In addition, shares in the bank received a boost after announcing its interest to acquire Money Equity (ME) Bank.

Following a capital raise, the Bank of Queensland received approval for the acquisition in early July.

Shares in the bank have also been on the receiving end of some positive broker reports.

Most recently, analysts at JPMorgan rated the Queensland-based bank as the third-best financial share on the market.

The post The Bank of Queensland (ASX:BOQ) share price has fallen 4% since Wednesday. What’s happening? appeared first on The Motley Fool Australia.

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• Top broker picks best ASX 200 bank shares to buy coming out of reporting season
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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Coles Group Ltd (ASX: COL) share price will be in focus today.  

Investors will be keeping an eye on the supermarket giant amid its latest push to expand into the premium homeware market.

Let’s take a closer look.

Why are investors watching the Coles share price?

Coles is one of the most trusted brands in Australia and plans to grow its market share by expanding into premium homewares.

According to a recent article in The Australian, the supermarket giant has struck a deal with celebrity chef Curtis Stone.

Stone’s high-end cookware, which has been popular on the US Home Shopping Network, is set to be sold exclusively at Coles. The high-quality cookware and utensils will be available to shoppers in an affordable price range.

With this latest deal, Coles looks to expand into the premium homewares sector dominated by Kmart, which is operated by Wesfarmers Ltd (ASX: WES).

Coles is not alone, with rival supermarket giant Woolworths Group Ltd (ASX: WOW) launching a new range of home accessories in August.

More on Coles

Last month, Coles released its full-year report for FY21 which noted a bumper year for the supermarket giant.  

The company’s report was highlighted by a 3.1% increase in sales revenue for the year of $38,562 million.

Other highlights from Coles’ report included;

• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 5.4% to $3,432 million;
• Net profit after tax up 7.5% to $1,005 million;
• Fully franked final dividend of 28 cents per share. This resulted in a record total dividend of 61 cents per share, up 6.1% from FY20.

Coles cited several initiatives for its surging grocery segment, including the continued roll-out of its ‘Click & Collect’ service.

Outlook on the Coles share price

Since the start of the year, shares in the supermarket behemoth are down more than 6%. By comparison, the S&P/ASX 200 Index (ASX: XJO) has managed to claw 11% higher in 2021.

Despite the subdued performance, the Coles share price has support from various institutions.

Most recently, leading broker Morgans retained its add rating on the company with a $19.80 share price target.

According to analysts, Coles is well placed to benefit from people working from home and consuming more due to COVID-19 lockdowns.

The Coles share price closed yesterday’s session at $17.28.

The post Coles (ASX:COL) share price on watch amid latest push to Kmart market appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Pushpay Holdings Ltd (ASX: PPH) share price could be one to consider after the tech company released an investor presentation, outlining its strategy.

For readers that haven’t heard of Pushpay before, it’s a donation processing and church management business. It currently has a number of tools for churches including live streaming, giving, bible study, HR software, bookkeeping software, music licensing and so on.

It can also work with non-church organisations like charities or corporates. Pushpay can assist with payments, donations, memberships, branded credit cards, video on demand, event management and more.

There are a few different things that Pushpay pointed to in its presentation as reasons why it has growth potential:

Diversification plans

At the moment, a very large amount of Pushpay’s earnings come from US churches. But Pushpay is looking to explore other avenues for new earnings streams.

It said that education can be another area of focus, such as K-12 and college campus alumni associations. The company shared a list of offerings it could be involved, including: tuition or dues, the parent and teacher curriculum review, student body voting, sports program funding, audio and textbook licensing, sororities and fraternities membership and dues, class attendance, study groups, home school co-ops or networks and tutoring.

Other payment services that Pushpay could offer include currency conversion and cryptocurrency transactions.

Pushpay also noted that it can geographically expand as well. The US is the main profit generator, but management are also thinking about growing in South East Asia, South America and Europe too.

Resi Media

The ASX tech share recently announced the acquisition of Resi Media. The Pushpay share price has risen by 17% since the date of the announcement. This business was bought for a cost of US$150 million.

Pushpay described Resi Media as a high-growth software as a service (SaaS) company specialising in high-quality transmission for web and multisite streaming offering end-to-end solutions to customers.

Resi Media’s products are being used by 70% of the Outreach 100 churches – many of the biggest churches in the US.

The video streaming business also reportedly has customers outside of the faith sector, including in the corporate, education, sports and live event streaming markets.

In FY21, Resi Media had $12.9 million of annual recurring revenue (ARR), with 3,374 customers and net revenue retention of more than 100%. FY21 saw 101% revenue growth compared to FY20.

Catholic sector growth

Pushpay has told investors that it wants to expand in the Catholic sector.

The company says that 23% of the US population considered itself to be Catholic in 2018.

In 2016, 27% of US faith giving was generated from Catholic services, totaling US$30 billion. Pushpay estimates there’s an estimated US$330 million annual revenue opportunity here.

The ASX tech share pointed out there are an estimated 17,000 parishes in the US, which skew more heavily to medium and large churches.

It said that current solutions for the Catholic sector are dated, lack features, are not mobile-friendly and are not cloud-based. The donation business’ research shows that parishes are generally dissatisfied with current tools and ready for a change. It also said that Catholic branded or customised solutions are “clearly preferred” by Catholic parishes.

All of that leads Pushpay to believe there is an opportunity to provide a modern technology solution.

So Pushpay is providing an offering called ParishStaq, alongside its older all-in-one offering called ChurchStaq.

Pushpay share price valuation

The pre-open price of $1.84, its shares are currently valued at 35x FY22’s estimated earnings.

The post 3 compelling reasons why the Pushpay (ASX:PPH) share price could be a buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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IDP Education Ltd (ASX: IEL) shares will be keenly monitored on Tuesday morning after a round of endorsements about their prospects.

Prior to this morning’s open, UBS brokers raised their price target for the international education provider by 13%.

They are now forecasting the IDP share price to hit $36.40. That’s an 11% premium on Monday’s closing price of $32.72.

The stock is already up close to 60% for the year and more than 20% over the past month.

Tribeca Investment Partners portfolio manager Jun Bei Liu told The Motley Fool’s Ask A Fund Manager on Tuesday morning that IDP Education has plenty more growth to come.

“It has gone up a lot but, in terms of its earnings, it has yet to return,” she said. 

“In the next 12 months, we do expect meaningful returns for this company, as its earnings grow higher and its multiple continues to expand.”

Why the ducks are all lined up for IDP shares

Liu revealed that IDP shares are among the 5 biggest positions her fund holds currently.

Australian universities, as one of the big beneficiaries of IDP’s services, previously held more than 40% ownership of the company.

But when COVID-19 difficulties hit the tertiary sector, Liu’s team bought up big.

“They sold down some parts of their stake and then we took advantage of it,” she said.

“We have always liked this company. It’s a very high-quality company exposed to global student placements.”

Liu reminded investors IDP doesn’t just do business bringing in foreign students into Australia.

“The amazing thing about this company is that it’s not just students coming to Australia. It’s going global,” she said. 

“It has huge exposure across the UK, Canada, and many other countries. Essentially just leveraged to that global movement from students wanting to be educated in some of the top universities.”

Of course, IDP’s short-term numbers have taken a massive hit due to restrictions on international travel. But Liu has faith that IDP is a strong post-pandemic recovery story.

“Once we have all the vaccinations or vaccination passports, these students will return.”

Based on the current IDP share price, the company commands a market capitalisation of around $9.1 billion.

The post Why IDP Education (ASX:IEL) shares are on watch Tuesday appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Idp Education Pty Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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