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:

GUD Holdings Limited (ASX: GUD)

According to a note out of Macquarie, its analysts retained their outperform rating but trimmed their price target on this diversified products company’s shares to $13.60. Macquarie notes that GUD delivered a full year result largely in line with expectations. This was driven by an impressive performance by the company’s Automotive business. And while lockdowns are impacting its performance, Macquarie expects GUD to rebound once trading conditions return to normal. The GUD share price is trading at $11.37 today.

Nick Scali Limited (ASX: NCK)

A note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this furniture retailer’s shares to $13.80. The broker was pleased with Nick Scali’s FY 2021 results. It also wasn’t surprised with its poor start to FY 2022 because of the impact of lockdowns and was already factoring this into its forecasts. As a result, it remains positive on Nick Scali’s medium term outlook and expects its market position to strengthen once the pandemic passes. The Nick Scali share price is fetching $12.14 on Friday.

Reliance Worldwide Corporation Ltd (ASX: RWC)

Analysts at UBS have upgraded this plumbing parts company’s shares to a buy rating with an improved price target of $6.16. According to the note, the broker expects the repairs and renovation markets to grow, supporting demand for Reliance Worldwide’s products. And while it acknowledges that high copper prices could be a headwind, it expects this to be offset by price increases and cost outs. The Reliance share price is trading at $5.64 today.

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

More reading

• Banks, NIB and Nuix share prices rise. Nick Scali flying. Scott Phillips on Nine’s Late News
• 2 leading ASX dividend shares that just reported more growth in FY21
• ASX 200 rises, Nick Scali falls, Pinnacle jumps
• Why Emerge Gaming, Imugene, Mesoblast, & Nick Scali shares are dropping
• Nick Scali (ASX:NCK) share price up 5% to record high on FY 2021 results

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 Reliance Worldwide Corporation Limited. The Motley Fool Australia has recommended Reliance Worldwide Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3Ag6WyG

The EML Payments Ltd (ASX: EML) share price is gaining today despite no news having been released by the company.

However, the S&P/ASX 200 All Technology Index (ASX: XTX) is also gaining, as are many ASX buy now, pay later (BNPL) stocks.

Additionally, the Reserve Bank of Australia’s (RBA) governor Philip Lowe has stated he would like to see a special licencing system for payment providers.

Let’s take a closer look at what might be influencing the financial services company’s shares today.

What’s driving EML Payments?

There’s seemingly no pinpoint moment that’s driving the EML share price today.

However, there have been a few breadcrumbs that could be increasing investors’ sentiment in the payment company.

The first is the bullish BNPL and technology sector. The ASX 200 technology index is up 0.99% today. At the same time, many BNPL stocks are gaining as they have been for most of this week, spurred by an exciting takeover offer handed to Afterpay Ltd (ASX: APT) that hit the news cycle on Monday.

Additionally, governor of the RBA Philip Lowe told a standing committee on economics today that he believes Australia’s regulatory system needs to be adjusted to account for modern payment providers. He said the payments landscape is changing quickly and our regulatory systems need to keep up.

While nothing in particular came of the conversation, aside from flagging the RBA’s concerns, it puts the spotlight on companies like EML Payments, potentially influencing its share price.

Finally, today’s gains could be a rebalancing from the market’s negative reaction to news released by EML Payments on Friday.

Then, the company stated it’s found historical issues regarding cash from dormant and expired e-money accounts. The troubles date to before the company acquired Prepaid Financial Services.

The EML Payments share price fell 2.2% on the back of the news.

EML Payments share price snapshot

Today’s gains aren’t enough to boost the EML Payment share price back into the green.

The company’s shares have fallen 10% since the start of 2021. However, its 21% higher than it was this time last year.

The post Why the EML (ASX:EML) share price is gaining today appeared first on The Motley Fool Australia.

More reading

• What’s going on with the EML Payments (ASX:EML) share price?
• ASX 200 midday update: GUD results, Woodside update, ANZ appointment
• EML (ASX:EML) share price up 5% on Tuesday
• The EML Payments (ASX:EML) share price is falling today. Here’s why
• Two months on, what is the outlook for the EML Payments (ASX:EML) share price?

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. owns shares of and has recommended AFTERPAY T FPO and EML Payments. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2VujoMf

The Vulcan Energy Resources Ltd (ASX: VUL) share price is ending the week in style. The lithium developer’s shares are rocketed 14% higher today after a week of positive announcements.

It has been a stellar month for the company as lithium prices continue to rise, with expectations of further tailwinds. In the past month, Vulcan shares have delivered a 60% return to shareholders.

Let’s take a look at what’s charging the excitement.

Milestone moments

Investors are bidding up the Vulcan share price leading into the weekend. This follows two notable announcements during the week.

Firstly, on Monday the company revealed its Zero Carbon Lithium Project will produce negative carbon emissions. This was a result of updated data fed into Vulcan’s life cycle assessment.

According to the new data, the lithium project located in western Germany is expected to produce more renewable energy than it would consume in the process. Potentially lucrative, the company plans to export the excess to the German electricity grid. The announcement sent the Vulcan share price roaring ahead on the day.

Secondly, another offtake deal was penned on Monday. In addition to the offtake agreement signed with LG Energy Solution last week, Vulcan can now count Renault as another partner.

According to the release, the agreement will see Renault purchase between 6,000 tonnes and 17,000 tonnes of lithium per annum for 5 years.

Positive lithium potential boosts Vulcan share price

Adding to the positive outlook for Vulcan, analysts at Macquarie are forecasting further momentum in spodumene prices. Optimistic expectations from the analysts follow spodumene prices cracking US$1,000 a tonne. Spodumene is a mineral that contains a source of lithium.

Additionally, the broker explained that global electric vehicle (EV) sales surged 153% year-over-year (YoY) in June to 540,000. Similarly, EV sales came to 2.4 million in the first half — an increase of 161% YoY.

However, the commodities strategy team at Macquarie is forecasting 2021 full-year sales to come in between 4.8 million and 5.3 million.

Rising tide lifts all boats

Thanks to the positive outlook for the lithium sector as a whole, the Vulcan share price is not the only one enjoying a strong performance today. Other ASX-listed lithium developers and producers enjoying the ride on Friday include:

• Piedmont Lithium Inc (ASX: PLL) up 5.33% to 79 cents per share,
• Sayona Mining Ltd (ASX: SYA) up 7.37% to 10.2 cents per share,
• Pilbara Minerals Ltd (ASX: PLS) up 3.47% to $2.09 per shares, and
• Lake Resources NL (ASX: LKE) up 13.04% to 64 cents per share.

All of the above lithium companies have skyrocketed from their respective price points a year ago. The Vulcan share price is now an astonishing 2,300% above where it was a year ago.

The post The Vulcan Energy (ASX:VUL) share price is rocketing 14% higher appeared first on The Motley Fool Australia.

More reading

• Here are the top movers in the ASX 300 today
• Why AnteoTech, BetMakers, News Corp, & Vulcan shares are racing higher
• Why the Vulcan (ASX:VUL) share price is running hot in August
• Why Argosy Minerals, Genworth, Vulcan, & Zip shares are charging higher
• Here’s why the Vulcan (ASX:VUL) share price is rocketing 11% higher

Motley Fool contributor Mitchell Lawler 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 Piedmont Lithium 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.

from The Motley Fool Australia https://ift.tt/3xCZMmt

The Fortescue Metals Group Limited (ASX: FMG) share price has risen over the past 12 months, up 24%. And this doesn’t even include the juicy dividends that the company pays shareholders every time it reports its bi-annual results.

Understandably, Fortescue has been a hot topic since the spot price of iron ore has surged to astronomical levels. During July, the steel making ingredient hit US$219.77 per metric tonne – an all-time high. However, as all good things must come to an end, the spot price of iron ore has settled to around US$171.91, down 5.81% today.

Nonetheless, you may be wondering if you invested 5 years ago in Fortescue shares, how much would you have now?

Quick take on Fortescue

Recognised as the world’s fourth largest iron ore miner, Fortescue has become a dominant player in the mining industry. With world-class assets located in the Pilbara region of Western Australia, the company has been booming in recent times.

Fortescue traditionally enjoys a close trade relationship with China, which has been a major consumer of iron ore for the past decade. Although until recently, strained ties between Australia and China have sought to put a dent in the iron ore industry.

How has the Fortescue share price performed in 2021?

In the past 8 months, the Fortescue share price has been swinging both up and down throughout the period.

The company reported a strong quarterly result that drove its shares to a record high of $26.58 in late July. Yet this was only to be met by Chinese rhetoric about cutting its iron ore reliance on Australia. Since then, Fortescue shares have been off a cliff, declining 12% in just 1 week.

What would be the value of Fortescue shares buying from 5 years ago?

If you had invested $2,000 in Fortescue shares in 2016, you would have bought them for around $4.59 a piece. This gives you approximately 435 shares, without reinvesting the dividends received over those years.

Fast-forward to today, the current Fortescue share price is at $22.98. This means that those 435 shares would be worth $9,996.30 (435 shares x $22.98). When looking at percentage terms, this implies an upside of close to 400%, or on average an 80% yearly return.

Are Fortescue shares a buy today?

A number of brokers rated the company with varying price points following its June quarter results in late July.

JPMorgan cut its 12-month price target by 3.3% to $29 for Fortescue shares. Following suit, both Credit Suisse and Goldman Sachs also reduced their rating, down 4.3% to $22, and down 2.9% to $19.90 per share, respectively.

The post If you invested $2,000 in Fortescue (ASX:FMG) shares 5 years ago, this is how much it would be worth now appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: REA & ResMed results, Afterpay jumps
• Why the Fortescue (ASX:FMG) share price is tumbling lower on Friday
• 3 ASX 200 mining giants making moves towards renewables
• Fortescue (ASX:FMG) share price falls on COVID-19 scare
• Why the Fortescue (ASX:FMG) share price is struggling this week

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/3yvd2KO

The Woolworths Group Ltd (ASX: WOW) share price is slightly up after it announced a new range of homeware products it will sell at its Australian supermarkets.

At the time of writing, shares in the consumer staples and retail giant are trading at $40.01 – up 0.54%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.03% higher.

Let’s take a closer look at today’s news.

Woolworths share price up amid new range launch

Woolworths today launched a new range of home and office accessories in a bid to ramp up sales in non-perishable and non-food divisions.

The new inventory includes bedding, towels, and home office supplies, with prices starting from $10.

The supermarket is taking on Kmart, owned by Wesfarmers Ltd (ASX: WES), a market leader for home products in the value price range. According to a 2019 Roy Morgan poll, 1-in-5 shoppers went to Kmart for their home product needs and a further 5.6% shopped at Target — a brand also under the Wesfarmers umbrella. Since this poll, a number of Target stores have been rebranded as Kmart.

In contrast, Woolworths’ rival brand Big W had only an 8.1% market share.

Big W, which represents Woolworths Group’s homeware appliances business, has been underperforming against other divisions within the company. In its half-yearly update, Woolworths reported that Australian food generated more than $18 billion per square metre (psm), Endeavour drinks saw returns of about $21 billion psm, while Big W generated only $4.4 billion.

Management commentary

Woolworths general manager for non-food, James Hepworth, said:

With many Australians spending more time working from home, we know customers are looking for simple and affordable ways to improve their space.

Our new range features accessories that are perfect for a home office, with bed linens and towels made with eco-friendly materials. With spring just around the corner, this is a great way for customers to get organised to bring a fresh look and feel to their home for great value.

Woolworths share price snapshot

Over the past 12 months, the Woolworths share price has underperformed the ASX 200 by about 4 percentage points – rising 20% to the index’s 24%. Year-to-date, however, it is overperforming the Australian benchmark by about 5.5 percentage points.

Woolworths has a market capitalisation of around $50.4 billion.

The post Woolworths (ASX:WOW) share price rises as it launches new homewares range appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX:WOW) share price unhurt by call for COVID bouncers
• Woolworths (ASX:WOW) share price up as stores converted to online hubs
• Own Woolworths (ASX:WOW) shares? Here’s what to look for during reporting season
• Pricing power shares like Woolworths (ASX:WOW) help fight inflation: expert
• ASX 200 Weekly Wrap: ASX grinds to a halt following new all-time high

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 Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3jyUkvU

The Sezzle Inc (ASX: SZL) share price has risen by around 9% in the month of August to date.

Sezzle is a buy now, pay later business that predominantly has operations in the US, though it has aspirations to expand internationally as well.

Investors may react to news in different ways. Some people may decide to sell on news whilst other investors may decide to buy.

There have been two pieces of important news that may have affected things.

Sezzle’s quarterly update

At the end of July, Sezzle released its 2021 second quarter update.

It said that it reached new highs in the second quarter of 2021 for underlying merchant sales (UMS), active consumers, active merchants and repeat usage.

UMS for the three months to 30 June 2021 increased by 118.7% year on year to US$411.1 million. That was an increase of 9.6% quarter on quarter.

The business reported its income as a percentage of UMS remained steady year on year at 5.9%.

Over the 12 months to 30 June 2021, active customers increased by 95.5% to 2.9 million. It added more than 250,000 active consumers in the quarter.

Management were pleased to report that Sezzle’s consumer profile continued to improve as active consumer repeat usage grew to 91.6%. That was the 30^th consecutive month of improvement.

More than 6,200 active merchants were added in the quarter, bringing the total active merchants to 40,200.

Canada continues to grow rapidly as a source of UMS which now has a run-rate of more than US$100 million during the quarter. Canadian active merchants and active consumers saw year on year growth of 275% to more than 2,500 and 150,000 respectively.

The Sezzle share price fell 8% in early reaction to this update.

Afterpay Ltd (ASX: APT) takeover

A few days ago, investors learned of the huge takeover offer of Afterpay by Square.

At the time of the announcement, it valued Afterpay at $39 billion. But Afterpay shares continue to climb.

Afterpay shareholders are expected to receive a fixed exchange ratio of 0.375 Square shares for each Afterpay share they own.

Square said that buy now, pay later presents an attractive opportunity supported by shifting consumer preferences away from traditional credit, especially among younger consumers, consistent demand from merchants for new ways to grow their sales and the global growth in omnichannel commerce.

Investors sometimes like to use the valuations of other businesses in the same sector to get a ballpark figure to value the business they’re looking at. The Afterpay valuation – which is rising – may be giving the Sezzle share price some impetus.

The broker Ord Minnett rates Sezzle shares as a buy with a price target of $10.60. Ord Minnett thinks there may be other mergers and acquisitions in the space.

The post The Sezzle (ASX:SZL) share price is up 9% this month. Here’s why appeared first on The Motley Fool Australia.

More reading

• Here are the top movers in the ASX 300 today
• ASX 200 midday update: REA & ResMed results, Afterpay jumps
• ASX tech shares lead the market on Friday, Afterpay higher
• Banks, NIB and Nuix share prices rise. Nick Scali flying. Scott Phillips on Nine’s Late News
• Afterpay (ASX:APT) share price surges as Square hits record highs

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 AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3CjN67j

Following a strong start to the week, Origin Energy Ltd (ASX: ORG) is slipping in late afternoon trading. This is its second consecutive day of losses.

The Origin share price is down 1.84% at the time of writing, leaving shares flat for the full week.

Shareholders to vote on climate change reporting

This morning, in an ASX release unlikely related to Origin’s share price sliding today, the energy company revealed it will submit its climate change reporting for a shareholder advisory vote. That vote will occur at its 2022 Annual General Meeting (AGM).

Commenting on the upcoming vote, Origin’s chairman Scott Perkins said:

The non-binding, advisory vote will complement the continuing conversations we are having with our shareholders and stakeholders about the risks and opportunities climate change presents for the business.

Origin is looking to reduce carbon emissions across Australia’s economy by delivering clean energy and technology solutions.

“Origin has been planning for a low carbon future for a long time and has included climate strategy, climate change risk, and scenario analysis in our reporting for many years,” Perkins said.

“In addition, Origin continues to progress work on the development of more ambitious emissions reduction targets consistent with a 1.5-degree pathway.”

According to the release, in 2017, Origin became the first Aussie company to set science-based targets to cut its Scope 1 and Scope 2 emissions by 50% by 2032.

The company also adopted measures to lower its Scope 3 emissions by 25% over the same timeframe.

To achieve these goals, the company has added additional solar and wind power generation. It reports that renewables currently account for almost 20% of its owned and contracted generation capacity.

With longer-term ambitions to be net zero emissions by 2050, Origin reiterated its intent to close its last remaining coal-fired power station in or before 2032.

Origin share price snapshot

The Origin share price has been on a bit of a rollercoaster this past full year.

With more downs than ups, the Origin share price has lost 26% over the past 12 months. This compares to a gain of 24% on the S&P/ASX 200 Index (ASX: XJO).

Year to date, the Origin share price has continued to struggle, down 11.7% in 2021.

The post Origin (ASX:ORG) share price falls as climate goals put to shareholder vote appeared first on The Motley Fool Australia.

More reading

• The AGL (ASX:AGL) share price just hit its lowest point in 17 years
• Why A2 Milk, Marley Spoon, Origin, & Sezzle shares are tumbling lower
• Here are 3 heavily traded ASX 200 shares on the markets today
• ASX 200 midday update: NAB’s $2.5bn buyback, Origin shares sink
• Origin (ASX:ORG) share price crashes 8% on $2.2bn charge and FY 2022 guidance

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.

from The Motley Fool Australia https://ift.tt/3rZ2xxe

The CSL Limited (ASX: CSL) share price has been a major ASX winner over the past decade. Plus, it’s got the results to prove it.

Whereas the S&P/ASX 200 Index (ASX: XJO) has gained 83% over the past 10 years, CSL shareholders have enjoyed far healthier gains.

We’ve done the math to show you the possible benefits of long-term investing, using CSL as a case example.

Invest with a long-term horizon in mind

Biotechnology player CSL has been in the vaccines market for more than 25 years. Since listing in 1994, its shares have exhibited tremendous long-term capital appreciation.

Imagine we are a prudent investor with a long-term forward way of thinking. Next, imagine we invested $1,000 in CSL shares at the closing price of $28.39 per share back on 5 August 2011. That’s roughly 35 shares.

The first way we need to examine our return is to calculate the capital gains on our shares. In doing so we realise a return on investment of 943%, which is quite handy given the broad index’s return.

CSL share price over last 10 years — now

Source: The Motley Fool

That implies our original position is now worth approximately $9,430. However, that ignores one half of the equation. We also need to factor in the effect of CSL’s dividend, in order to assess our total return.

The effect of CSL’s dividend

Over the course of our examination period, CSL has returned $17.90 per share to shareholders by way of its dividend.

CSL has grown its dividend payment at a compound annual growth rate (CAGR) of 5.3% since 2011.

However, taking out the significant down-step in 2021, it has grown its dividend at a CAGR of approximately 14% over the same period.

CSL dividend history

Source: The Motley Fool

Adding in CSL’s dividend schedule, our total return mushrooms to more than 1005% over the previous 10-year period. This implies our position is now worth $10,056.

Some very interesting outcomes arrive when we make a few tweaks to our calculations. Let’s assume we reinvested the dividends received to buy more CSL shares along the way.

Harnessing the value of this dividend reinvestment plan (DRIP) yields a total return of 1,124% on our original investment.

Therefore, it suggests long-term investing can have tremendous payoffs, if done correctly.

Foolish takeaway

Several things to always remember when investing.

First, long-term investing can work. While past returns are no guarantee of future performance, the ASX 200 has risen 83% over the past 10 years. 

Second, always complete due diligence and the necessary research before allocating hard-earned capital. Finally, risk management is paramount. Maintaining an investment with conviction over a long-term horizon can be a winning formula, as evidenced through the case of CSL shares.

The post If you invested $1000 in CSL (ASX:CSL) shares a decade ago, this is how much they would be worth now appeared first on The Motley Fool Australia.

More reading

• How owning too much Afterpay (ASX:APT) was our biggest regret
• It hasn’t been a great 2021 so far for the CSL (ASX:CSL) share price
• FY 2021 results preview: Is the CSL (ASX:CSL) share price in the buy zone?
• Here are 3 dipping ASX shares now ready to rally
• 2 excellent ASX 200 healthcare shares named as buys

The author Zach Bristow has no positions 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. 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.

from The Motley Fool Australia https://ift.tt/3juwxgw

The EcoGraf Ltd (ASX: EGR) share price is racing to a 5-month high despite no news being released by the company today.

At the time of writing, EcoGraf shares are up 7.51% to 93 cents. This means that the graphite producer’s share price has rocketed to more than 50% in the space of a month.

Let’s take a quick recap of the events that have led to the company’s shares pushing higher.

Expanded market presence

In its most recent update provided to the ASX, EcoGraf advised it had signed a land reservation agreement in Sweden.

Essentially, this allows EcoGraf to secure the 65,000-kilometre industrial site, while it evaluates the feasibility to build a battery anode materials facility. The company previously explored a number of sites across Europe, including Germany.

Located in the Vasterbotten region, Sweden, the area is said to benefit from ample clean and renewable energy. In addition, it is considered to have the lowest industrial power costs in all of Europe.

Quarterly results

The week prior to the land reservation announcement, EcoGraf reported its fourth quarter results to the ASX.

Over the 3-month period, the company revealed that it spent $553,000 in operating activities. This was made up of exploration programs, staffing expenses, as well as administration and corporate costs.

Pleasingly, EcoGraf received a total of $374,000 of government grants and tax incentives.

At the end of the quarter, the company had a healthy cash balance of $52.6 million.

Funding update

In that same week of releasing its activities statement, EcoGraf provided an update on its funding facilities. It noted that the Australian Government’s export credit agency is set to lend the company US$35 million. EcoGraf will use these funds to build its battery anode material facility in Western Australia.

EcoGraf share price snapshot

Over the last 12 months, EcoGraf shares have rocketed 1,229% higher, with year-to-date up almost 447%. The company’s share price reached a 52-week high of $1.10 in February before profit takers swooped in.

EcoGraf presides a market capitalisation of roughly $416 million, with approximately 450 million shares on its registry.

The post Why the EcoGraf (ASX:EGR) share price has soared 50% in a month appeared first on The Motley Fool Australia.

More reading

• Why the EcoGraf (ASX:EGR) share price is up 11% on Wednesday
• EcoGraf (ASX:EGR) share price powers 10% ahead on industrial site news
• Ecograf (ASX:EGR) share price falls on the back of its Q4 results
• EcoGraf (ASX:EGR) share price flying 14% higher on funding update
• EcoGraf (ASX:EGR) share price lifts 5% on lithium update

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/3rUKeJs

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Investor fears about Netflix‘s (NASDAQ: NFLX) future subscriber growth are very real. After a monster year in 2020, the company added just 5.5 million members in the first six months of this year. And the stock, a big outperformer over the last decade, is up only 4% in the past 12 months. 

But forecasts from MoffettNathanson, a research firm, indicate user growth is actually going to accelerate over the next five years. Netflix bulls, rejoice. It appears that the streaming entertainment pioneer’s expansion days are far from over. 

A global opportunity 

Netflix is certainly dealing with a hangover after its performance in 2020. In the most recent quarter, the business lost 430,000 customers in the lucrative UCAN (U.S. and Canada) region, something that hasn’t happened in two years. Concerns about saturation domestically, particularly with increased competition from the vast number of new services out there, mean future gains will probably come from overseas markets. 

Based on MoffettNathanson’s projections, Netflix will add 30 million subscribers next year after it adds 20 million in 2021. And the growth will accelerate. Through 2025, Netflix could see its total membership count exceed 360 million, a huge surge from the 209 million it currently has. 

Of the $7.3 billion in revenue Netflix generated in the second quarter, 55% was derived outside the U.S. and Canada, a figure that has been steadily rising over the years. Excluding UCAN, 2 million subscribers joined the service in the three-month period. And most of the future expansion for Netflix will come specifically from Asia (but not China, where the service isn’t available). 

This is definitely not a surprise. Co-CEO Reed Hastings previously mentioned that India could produce 100 million customers over time. A country with nearly 1.4 billion people that could have 900 million internet users by 2025 is a massive opportunity. Netflix launched a low-cost mobile-only plan there in 2019 and will spend even more than the $400 million it spent in 2019 and 2020 to produce 40 local shows and movies over the coming year. 

Japan is also important for Netflix’s ambitions in Asia. Media Partners Asia, a consultancy, believes that the country will become the largest revenue generator in the Asia-Pacific region for the company this year, surpassing Australia. Netflix’s ability and willingness to produce high-quality, local-language content is propelling it in markets far from home. 

Investors worried about recent slowing membership growth need to consider the remarkable potential overseas. Not only is Netflix focusing on productions tailor-made to a specific geography, but some of its hits, like the Spanish series Money Heist, have universal appeal. Compelling stories transcend borders and language barriers, something Netflix is banking on as it looks toward the future. 

What’s this mean for investors? 

Let’s be clear: Wall Street firms often make forecasts that end up being wildly incorrect. What happens with Netflix’s subscriber numbers is really just a guess. What does seem apparent with each passing quarter is that growth outside UCAN will be key to it becoming a truly global media business. 

I hope I’ve relieved some concerns about Netflix’s prospects. As previously mentioned, the stock has been a dud since last summer. Shrewd investors could take this chance to dig deeper on it and consider buying shares. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Netflix’s subscriber growth is predicted to accelerate through 2025 appeared first on The Motley Fool Australia.

More reading

• 3 ways Netflix can make gaming work –and 1 way it can’t
• Is Netflix’s move into gaming a sign its best days are over?
• Google (NASDAQ:GOOG) share price climbs on blockbuster earnings
• Why Netflix’s Q2 earnings suggest subscriber growth for Disney+
• Are Netflix’s growth days over?

Neil Patel 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 Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3AlD83L