It has been a fantastic year for the Life360 (ASX: 360) share price.

So far in 2021, the family-focused app maker’s shares have risen an incredible 139%.

Can the Life360 share price keep climbing higher?

The Life360 share price may be smashing the market in 2021, but one leading broker doesn’t believe it has peaked just yet.

According to recent note out of Bell Potter, its analysts have retained their buy rating and lifted their price target on the company’s shares to $10.75.

With the Life360 share price currently fetching $9.30, this means there’s still potential upside of 15.5% over the next 12 months.

What did the broker say?

Bell Potter was pleased with Life360’s performance during the first half of FY 2021. The broker notes that the company’s revenue of US$48 million and EBITDA loss of US$4.8 million were in line with its forecasts.

And while the broker acknowledges that Life360 intends to invest more heavily and will record greater than previously forecast losses, this isn’t enough to impact its bullish view.

Bell Potter continues to be a big fan of the company due to its attractive valuation compared to peers, its large and resilient subscriber base, and its potential to enter and disrupt other markets.

In respect to the latter, the broker commented: “Life360 has the potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents. An example is roadside assistance where Life360 launched a subscription-based product called Driver Protect which disrupted the market and helped enable monetisation of its user base. Other markets Life360 could potentially enter include insurance, item & pet tracking, senior monitoring, home security and/or identity theft.”

All in all, while the Life360 share price has rocketed higher this year, the broker doesn’t believe the gains are over just yet.

The post Why the Life360 (ASX:360) share price could be heading higher appeared first on The Motley Fool Australia.

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• 3 top ASX growth shares for investors in September
• 3 excellent ASX growth shares for September
• Why these ASX shares just hit 52-week highs or better
• Brokers name 3 ASX shares to buy today

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 Life360, Inc. 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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ASX energy shares play a vital role in powering the economy. These companies are involved in producing and supplying energy, developing oil and gas reserves, and refining and fuel production.

Woodside Petroleum Limited (ASX: WPL), engaged in petroleum exploration and production, is the ASX’s largest energy stock. Santos Ltd (ASX: STO), an oil and gas producer, and AGL Energy Limited (ASX: AGL), which produces and sells electricity, are also major players.

Results for ASX energy shares were mixed in the August earnings season — the sector is currently in a state of flux, with several mergers and demergers planned.

As society moves toward cleaner energy sources, industry participants are restructuring and refining operations as they position their businesses for the future. 

How have ASX energy shares performed against the market?

Shares in the energy sector have underperformed the broader market in 2021. The AGL share price has declined steadily, falling almost 50% over the course of the year. By contrast, the All Ordinaries Index (ASX: XAO) has gained more than 10% year to date.

AGL’s share price fall means the company was removed from the S&P/ASX 50 (ASX: XFL) in the most recent quarterly rebalance. Share in Woodside Petroleum have also dropped this year, currently down more than 16% year to date, while the Santos share price is around 6% lower for the year. 

Who are the winners this earnings season? 

Santos was a winner this earning season, reporting record half-year production and sales volumes.

Production increased 23% while sales volumes were up 15%. Product sales revenue reached US$2,040 million, providing a free cash flow of US$572 million.

Net profit was US$354 million, up from a loss of US$289 million in 2020. This allowed for the payment of a fully franked dividend of US5.5 cents per share, 162% higher than the previous interim dividend. 

Santos is progressing a planned merger with Oil Search Ltd (ASX: OSH), under which Santos will acquire all shares in Oil Search for consideration of new Santos shares. Oil Search shareholders are expected to hold approximately 38.5% of the merged group, with Santos shareholders owning approximately 61.5%.

The merged entity is expected to have a pro forma market capitalisation of A$21 billion, positioning it among the 20 largest global oil and gas companies. 

Improved oil and gas prices in 1H 2021 boosted Woodside Petroleum’s earnings before interest, tax, depreciation and amortisation (EBITDA), which increased to $1,496 million from $974 million in 1H2020.

The company reported that sales revenue was boosted by a recovery in LNG and oil demand towards pe-pandemic levels. Underlying profit increased by 17% to $354 million for the half-year.

The company declared an interim dividend of US 30 cents per share, representing a payout ratio of approximately 80% of underlying profit after tax. The result reflected a strong rebound in market conditions following the uncertainty brought on by COVID-19 in 2020. 

The day before the release of its half-year results, Woodside announced plans to enter a merger with BHP Group Ltd (ASX: BHP). The plan is for the companies to combine their respective oil and gas portfolios by an all-stock merger. This will create a global top 10 independent energy company by production.

BHP’s oil and gas business would merge with Woodside, and Woodside would issue new shares to BHP shareholders. The expanded Woodside would be owned 52% by existing Woodside shareholders and 48% by existing BHP shareholders. 

And the losers? 

AGL’s earnings (EBITDA) fell 18% in FY21 to $1,666 million, reflecting a challenging year for the energy company.

Results were impacted by lower wholesale electricity prices, reduced electricity generation output at peak periods, and the roll off of legacy supply contracts.  Underlying profit after tax fell 34% to $537 million, reflecting the impact of increasing generation supply and lower demand arising from the pandemic and milder weather.

A statutory loss of $2,058 million was reported, including $2,929 million of impairment losses previously announced. Despite challenges in the wholesale market, AGL continues to consolidate its position as Australia’s largest multi-product energy retail with solid organic and inorganic growth. The company added 254,000 services to customers in FY21, with customer churn flat across the year. 

AGL has confirmed it intends to undertake a demerger to create two energy businesses with separate listings on the ASX. AGL Energy Limited is to become Accel Energy Limited, a baseload power producer focused on redeveloping its sites as low-carbon industrial energy hubs.

AGL Australia Limited, an energy retailer backed by flexible energy trading, storage and supply, will be demerged. The demerger is intended to protect value and provide greater strategic focus for both entities. 

What is the outlook for ASX energy shares?

AGL has provided guidance for underlying EBITDA of $1,200 million to $1,400 million and net profit after tax of $220 million to $340 million in FY22. The company expects to deliver a $150 million reduction in operating costs (excluding depreciation and amortisation) in FY22 compared to FY20.

AGL has expressed cautious optimism regarding its outlook, noting it is well-positioned to benefit from any sustained recovery in wholesale electricity prices. Plans are progressing to implement the demerger in the fourth quarter of FY22. 

Thanks to improved oil prices, Santos says it is on track to deliver free cash flow of more than $1.1 billion in 2021.

Santos and Oil Search are expected to sign a binding merger agreement in the coming weeks, with the due diligence period set to expire on 13 September 2021. The merger is expected to create a regional champion with a diversified portfolio of long-life, low-cost oil and gas assets. Substantial potential synergies are expected to be unlocked. 

The Woodside BHP merger is expected to take place during the second quarter of the 2022 calendar year.

The expanded Woodside will boast a high margin oil portfolio and long life LNG assets with resilient, high margin operating cash flows. These assets are expected to generate attractive returns for the next decade but will need to be positioned within society’s transition to clean energy. 

The post How have ASX energy shares performed during the August 2021 earnings season? appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, Santos and Oil Search merge
• Why the Oil Search (ASX:OSH) share price is leaping out of the trading pause
• Santos (ASX:STO) share price climbs as Oil Search merger confirmed
• September hasn’t been a great month so far for the AGL (ASX:AGL) share price
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Katherine O’Brien 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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It has been a week to forget for the S&P/ASX 200 Index (ASX: XJO). Due to a selloff on Thursday, the benchmark index dropped 1.5% or 116.3 points over the five days to end the week at 7,406.6 points.

Fortunately, not all shares dropped lower with the market. Here’s why these were the best performing ASX 200 shares last week:

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price was the best performer on the ASX 200 last week with a gain of 11.3%. The catalyst for this was a bullish broker note out of Bell Potter. According to the note, the broker has upgraded the company’s shares to a buy rating and lifted its price target on them by 28% to $12.50. Bell Potter notes that last month the company announced the progressive cessation of support from October for customers who use its on-premise solution. It believes this will accelerate the rate of customers switching to its software-as-a-service (SaaS) offering.

Alumina Limited (ASX: AWC)

The Alumina share price wasn’t far behind with a gain of 9.3%. This appears to have been driven by rising aluminium and bauxite prices following a coup in Guinea. There are concerns that this coup could disrupt the supply chain, which appears to have seen end users scramble to get hold of product this month. Not even Macquarie putting an underperform rating and $1.30 price target on the company’s shares could hold them back.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

The Soul Patts share price was on form and rose 8.1% over the five days. This follows a busy week for the investment house. Over the period, the company released a profit update for FY 2021, confirmed its merger ratio, and was subject of divestment speculation. In respect to the latter, Soul Patts is allegedly advancing plans for an IPO of its wholly-owned copper subsidiary Round Oak Metals.

Nickel Mines Ltd (ASX: NIC)

The Nickel Mines share price was a positive performer and recorded a gain of 6.4% for the week. Last week analysts at Credit Suisse put an outperform rating and $1.40 price target on the nickel producer’s shares. This compares to the latest Nickel Mines share price of $1.08. Credit Suisse was pleased with the company signing an agreement with PT Iriana Mutiara Mining for a staged acquisition of the Siduarsi nickel/copper project in Indonesia. Rising nickel prices also supported its shares.

The post These were the best performing ASX 200 (ASX:XJO) shares last week appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 (ASX:XJO) shares last week
• ASX 200 rises, Santos and Oil Search merge
• Here are the 3 heaviest traded ASX 200 shares this Friday
• Here are the top 10 ASX 200 shares on Friday
• Why the Nickel Mines (ASX:NIC) share price is leaping 8% on Friday

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 owns shares of and has recommended Washington H. Soul Pattinson and Company 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 BWX Ltd (ASX: BWX) share price certainly has been on form in 2021.

Since the start of the year, the personal care products company’s shares have risen a sizeable 19% to $4.95.

Can the BWX share price keep climbing from here?

The good news for investors is that one leading broker believes the BWX share price can keep on rising.

According to a note out of Bell Potter, its analysts have retained their buy rating and lifted their price target on the company’s shares to $6.10.

Based on the current BWX share price, this implies potential upside of 23% over the next 12 months.

Why is Bell Potter bullish?

Bell Potter was pleased with BWX’s solid performance in FY 2021, particularly given the COVID-19 headwinds it was facing.

In case you missed it, BWX reported a 3.4% increase in revenue to $194.1 million and an 11.6% lift in EBITDA to $34.5 million. This was in line with management’s guidance for FY 2021.

Although Bell Potter acknowledges that the company is facing near term uncertainty, it remains very positive on its outlook. This is due to improving trading conditions in the US, margin expansion, and its acquisition of Go-To Skincare.

It commented: “Looking through near-term uncertainty we remain positive on the outlook for BWX, with improving conditions in North America, distribution gains and expanding margin outlook from BWX’s new facility all on track to deliver for the company over the next 12-24 months.”

“Factoring in changes from BWX’s result, and the Go-To Skincare acquisition and BWX’s Equity raising, we upgrade our EBITDA forecasts by +15.2% and +24.3% in FY22/FY23e respectively, driving no material change to our EPS in FY22e and an upgrade of +2.9% in FY23. We Maintain our Buy recommendation on BWX, with a revised price target of $6.10ps,” the broker concluded.

The post Top broker says BWX (ASX:BWX) share price is a buy appeared first on The Motley Fool Australia.

More reading

• 2 beauty ASX shares delivering attractive growth
• Why the BWX (ASX:BWX) share price is moving higher today
• Why Blackmores, BWX, Fortescue, & Wesfarmers shares are dropping
• BWX (ASX:BWX) share price slips 6% on placement update
• BWX (ASX:BWX) share price halted following FY21 results and Go-To acquisition

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 owns shares of and has recommended BWX 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 S&P/ASX 200 Index (ASX: XJO) was out of form last week and recorded a disappointing decline. The benchmark index dropped 1.5% or 116.3 points to end the week at 7,406.6 points.

While a good number of shares dropped lower some fell more than most. Here’s why these were the worst performing ASX 200 shares last week:

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price was the worst performer on the ASX 200 last week with a 12.4% decline. The iron ore giant’s shares came under significant pressure after they traded ex-dividend for its fully franked $2.11 per share final dividend. In addition to this, a sizeable decline in the iron ore price weighed on its shares. The steel making ingredient tumbled sharply lower after Chinese authorities took a stricter stance on steel production curbs and started sintering restrictions.

Omni Bridgeway Ltd (ASX: OBL)

The Omni Bridgeway share price was out of form and tumbled 11.1% over the period. This follows the release of an update on the Brisbane Flood class action. Unfortunately for the litigation funder, the Supreme Court of New South Wales Court of Appeal has found the remaining defendant, Seqwater, not liable to the group members in the Brisbane Floods Class Action. The company is considering an appeal of the ruling.

Polynovo Ltd (ASX: PNV)

The Polynovo share price wasn’t far behind with a decline of 10.9% for the week. A good portion of this decline came on Friday after the medical device company announced the resignation of its Chief Operating Officer, Dr. Anthony Kaye. According to the release, Dr Kaye is returning to biotherapeutics giant CSL Limited (ASX: CSL) in a more senior position.

Regis Resources Limited (ASX: RRL)

The Regis Resources share price was out of form and sank 10% over the five days. Regis Resources and its fellow gold miners came under significant pressure last week after a pullback in the spot gold price. This led to the S&P/ASX All Ords Gold index falling over 4% during the week.

The post These were the worst performing ASX 200 (ASX:XJO) shares last week appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, Santos and Oil Search merge
• Here are the 3 heaviest traded ASX 200 shares this Friday
• Here are the top 10 ASX 200 shares on Friday
• Why Cleanaway, IRESS, Omni Bridgeway, & Polynovo shares are dropping
• These ASX 200 dividend shares are about to dish out $40bn to shareholders

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 CSL Ltd. and POLYNOVO FPO. 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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If investors are looking for options for income, then there are some ASX dividend shares that could be ideas.

Businesses that are paying out some of their profit as a dividend could be attractive for the cash returns they provide.

Some businesses are quite proud of the dividend record they have.

Here are two to consider:

Brickworks Limited (ASX: BKW)

Brickworks is a leading building products business. In Australia it has a number of products like bricks, roofing, precast, masonry and more. In the US it has become a large brickmaker in the north east of the country after a few different acquisitions including Glen Gery.

The company actually funds its dividends from two other sources of earnings. There is its large shareholding of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares. It also owns half of an industrial property trust with Goodman Group (ASX: GMG).

Soul Patts is an investment house that has a diversified portfolio of different names including TPG Telecom Ltd (ASX: TPG), Australian Pharmaceutical Industries Ltd (ASX: API), New Hope Corporation Limited (ASX: NHC), Bki Investment Co Ltd (ASX: BKI) and Milton Corporation Limited (ASX: MLT).

Brickworks likes Soul Patts for its defensive earnings and growing dividends. They are both ASX dividend shares.

The industrial property trust has a growing property portfolio of assets that are important for e-commerce or logistics. Two of the newest projects are for Amazon and Coles Group Ltd (ASX: COL). When those two assets are finished, Brickworks is expecting growth of both rental income and the valuation.

Those assets fund the stability and growth of the Brickworks dividend. It hasn’t cut its dividend for more than 40 years.

At the current Brickworks share price, it has a grossed-up dividend yield of 3.5%.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the largest retailers in Australia and New Zealand, with networks of both JB Hi-Fi and The Good Guys stores.

The business has experienced a lot of growth since the onset of COVID-19 as customers looked for products to learn, work and be entertained at home.

It’s currently rated as a buy by the broker Credit Suisse.

JB Hi-Fi saw total sales increase by 12.6% to $8.9 billion, with online sales rising by 78.1% to $1.1 billion.

The ASX dividend share benefited from gross profit margin improvement as well as a reduction in the cost of doing business in percentage terms. That helped total earnings before interest and tax (EBIT) increase by 53.8% to $743.1 million. Earnings per share (EPS) rose 67.5% to 440.8 cents. That funded a 51.9% increase of the annual dividend to 287 cents.  

Whilst sales have fallen a bit in the first few weeks of FY22, JB Hi-Fi is still seeing heightened customer demand and strong sales growth compared to FY20.

Credit Suisse is expecting a reduction of the FY22 dividend compared to FY21, but larger than FY20’s dividend. Looking at the FY22 projections, JB Hi-Fi is valued at 14x FY22’s estimated earnings with a forecast grossed-up dividend yield of 6.5%.

The post Got money to invest for dividends? Here are 2 ASX shares that could be buys appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• How have ASX retail shares performed during the August 2021 earnings season?
• ASX 200 edges higher, Soul Patts (ASX:SOL) falls, Hansen (ASX:HSN) declines
• Here’s why the Brickworks (ASX:BKW) share price is lifting on Monday
• ‘Price makers’: 2 ASX shares to protect against inflation

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. 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 Brickworks, COLESGROUP DEF SET, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom 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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Investors may be interested in some ASX growth shares that have been delivering underlying growth for a while now.

Businesses that are achieving good revenue growth may be able to grow profit nicely over the coming years. Profit can be a key driver of share price growth over time.

That’s why these two leading ASX growth shares could be quality ideas to think about:

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is a healthcare technology business that provides software relating to screening for breast cancer and screening for lung cancer.

In the first quarter of FY22, Volpara reported that its subscription-based cash receipts were up around 38% to NZ$6.1 million. In constant currency terms, this was an increase of 60%.

Volpara is seeing steady growth in multiple areas. For example, its coverage of US women being screened was 33%, up from the prior quarter of 32%. Not only is the market share of women increasing, but the average revenue per user (ARPU) is also rising.

ARPU in that FY22 first quarter was US$1.42, an increase from US$1.40 at the end of the fourth quarter of FY21. The average ARPU for the first quarter was US$1.55. ARPU of up to US$5.87 was achieved at some sites.

Volpara’s client loyalty remains high, with software as a service (SaaS) churn continuing to remain low.

The ASX growth share has a very high gross profit margin – it was 91% in FY21. This means that a lot of the new revenue can translate into gross profit.

The acquisition of CRA Health and expansion in the US lung cancer screening market are both promising. Volpara Lung currently covers around 8% of US lung cancer screening.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

Over six months, this exchange-traded fund (ETF) has fallen 14%. But that gives investors the opportunity to look at it at a lower valuation.

The purpose of this investment is to give exposure to 50 of the largest Asian technology businesses outside of Japan in a single portfolio.

BetaShares says that:

Due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.

The ETF provider also points out that this investment can be used as a complement for investors to get Asian tech exposure alongside the US

So what’s actually in the portfolio? There are six positions with a weighting of more than 5%: Taiwan Semiconductor Manufacturing (11.4%), Samsung Electronics (10%), Tencent (9.8%), Alibaba (8.7%), Meituan (6.6%) and Sea (5.7%). The other top 10 positions all have a weighting of at least 3%: JD.com (4.9%), Infosys (4.7%), Pinduoduo (4.4%) and Netease (3%).

These businesses come from a range of different sectors. E-commerce, semiconductors, gaming, technology hardware, entertainment, IT consulting and so on are all represented.

It has an annual management fee of 0.67%. Despite that fee, since inception to August 2018, it had produced an average return per annum of almost 23%.

The post 2 top ASX growth shares that might be worth buying appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated small cap ASX shares
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• Here’s why the ASIA (ASX:ASIA) share price is up 4% in the last week
• China gaming ban brings BetaShares’ ASIA (ASX:ASIA) ETF into focus

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 VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF and VOLPARA FPO NZ. 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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There are some industries such as the beauty industry that are exposed to ongoing strong overall growth. Some ASX shares are capitalising on this.

According to Frost & Sullivan, the beauty and personal care market in Australia is/was worth $11.2 billion and is expected to grow at a compound annual growth rate of 26% to 2024. Online sales comprise just 11.4% of the beauty and personal care market in Australia, which is a lower rate of penetration than in other developed markets like the US, UK and China.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is the one that shared those interesting characteristics (above) about the beauty market. It’s an e-commerce business that sells around 11,000 products across 260 or so brands.

Due to the large opportunity that Adore Beauty’s management sees in the growth of the online beauty retail world, it’s going to invest to grow its market share with a disciplined strategy to increase brand awareness, win new customers and improve customer retention.

The beauty ASX share believes that because of the predominately fixed nature of the cost base, management expect that scale benefits will increase and improve the operating leverage and deliver earnings before interest, tax, depreciation and amortisation (EBITDA) margin growth in the long-term as it grows revenue.

Adore Beauty is seeing a lot of revenue growth. In FY21 it experienced revenue growth of 48% to $179.3 million and EBITDA growth of 53% to $7.6 million.

Whilst active customers increased 39% to 818,000, returning customer growth was 64%. This led to annual revenue per active customer rising 7% to $219, driven by “strong” customer retention and an increasing average order value.

It’s rated as a buy by the broker Morgan Stanley, with a price target of $6. It’s expecting strong revenue growth over the coming years.

BWX Ltd (ASX: BWX)

BWX is natural beauty business that is invested in a number of different brands like Sukin, Andalou Naturals and Mineral Fusion. Nourished Life is another business BWX owns, which is an e-commerce business which saw net sales of $25.2 million in FY21.

The beauty ASX share has been busy in 2021. It announced a 5-year, equity-linked strategic partnership with Chemist Warehouse.

BWX has also made two acquisitions in the last few months.

It has bought Flora and Fauna, an Australian online retail platform that exclusively focuses on vegan, ethical and sustainable products. Net sales for Flora and Fauna were expected to be between $16.4 million to $17.1 million for FY21. This business will form an online retail group, 80% of which are not available in mainstream retail.

Finally, a couple of weeks ago, BWX announced it was going to spend $89 million to buy 50.1% of Go-To-Skincare – it’s an Australian skincare provider with a range a of skincare products for the ‘masstige’ market. In FY21 this business made $36.8 million of revenue and $11.6 million of EBITDA.

The beauty ASX share’s core business made progress in FY21. Underlying revenue increased 8.6% to $203.9 million, EBITDA grew 11.5% to $34.5 million (and ahead of guidance) and earnings per share (EPS) went up 44.9% to 17.1 cents.  

The new operations and manufacturing facility is within budget and on track to open at the end of the 2021 calendar year. This is expected to deliver a “step change” in both financial and operating performance.

According to Commsec, the BWX share price is valued at 17x FY23’s estimated earnings.

The post 2 beauty ASX shares delivering attractive growth appeared first on The Motley Fool Australia.

More reading

• 3 stellar small cap ASX shares for your watchlist this month
• 2 excellent ASX tech shares rated as buys
• 3 growing small cap ASX shares named as buys
• Why the BWX (ASX:BWX) share price is moving higher today
• Why Blackmores, BWX, Fortescue, & Wesfarmers shares are dropping

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. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended BWX 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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If you’re a fan of growth shares like me, then you may want to check out the three highly rated ASX 200 shares listed below.

Here’s why these growth shares are rated highly:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX 200 growth share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies and the name behind many of the most popular pokie machines globally. In addition to this, the company has a growing digital business. It is also worth noting that this business isn’t just about gambling. It has some extremely popular mobile games, such as RAID: Shadow Legends, which are generating significant recurring revenues. Combined, the company appears well-placed for growth over the long term.

Citi is a fan of the company. It has a buy rating and $46.00 price target on its shares. However, as the Aristocrat Leisure share price has just breached this level, investors might want to wait for a pullback.

Kogan.com Ltd (ASX: KGN)

Another ASX 200 growth share to look at is this ecommerce company. While management’s failure to manage its inventory efficiently during the pandemic was bitterly disappointing, it is a key lesson learned. And while this headwind may impact margins in the near term, the long term remains very positive. This is due to its strong market position and the ongoing structural shift to online shopping.

Analysts at Credit Suisse remain positive on Kogan. They currently have an outperform rating and $14.06 price target on its shares.

REA Group Limited (ASX: REA)

A final ASX 200 growth share that could be in the buy zone is REA Group. It is the dominant player in online real estate listings in the Australian market. This puts the company in a very strong position to benefit from the housing market boom. In addition to this, cost cutting, new revenue streams, price increases, and acquisitions look set to give boost its sales and earnings in the coming years.

Macquarie is bullish on REA Group. It currently has an outperform rating and $185.00 price target on its shares.

The post 3 ASX 200 (ASX:XJO) growth shares to buy appeared first on The Motley Fool Australia.

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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 Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended REA 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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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Ansell Limited (ASX: ANN)

According to a note out of Citi, its analysts have retained their buy rating and increased their price target on this safety products company’s shares to $46.50. The broker has upgraded its earnings estimates to reflect the benefit from COVID lasting longer than previously expected. Citi expects this to ultimately lead to Ansell being in a net cash position by the end of FY 2023. This will then give the company the balance sheet capacity to consider earnings accretive acquisitions or buyback. The Ansell share price was trading at $36.30 at Friday’s close.

BHP Group Ltd (ASX: BHP)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $54.00 price target on this mining giant’s shares. Macquarie has lifted its oil and gas price estimates to reflect a lengthening cycle. The broker expects an average Brent crude oil price of US$66 a barrel over the next 12 months. And while it acknowledges that the company is divesting its oil and gas operations, this is still relevant as shareholders will be given shares in the new entity. The BHP share price ended the week at $41.25.

ResMed Inc. (ASX: RMD)

Analysts at Credit Suisse have retained their outperform rating and lifted their price target on this medical device company’s shares to $44.00. This follows the company’s investor day event earlier this week. The broker notes that management highlighted its strong competitive advantage this year thanks to a significant product recall by rival Philips. The broker was also pleased with its plans to expand patient reach and its new partnership with CVS Health. Credit Suisse expects this to support above industry growth. The ResMed share price was fetching $40.17 at Friday’s close.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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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 recommended ResMed. The Motley Fool Australia has recommended Ansell Ltd. and ResMed Inc. 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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