The Insurance Australia Group Ltd (ASX: IAG) share price has been struggling this year. Since the beginning of 2021, the insurance company’s shares have been range-bound between $4.56 and $5.35.

The last week has been no exception, with the IAG share price bouncing between $4.84 and $5.00 apiece.

While investors can take solace in the company’s shares being in the positive year-to-date (YTD), it doesn’t make the last month or so much easier. In that time, the IAG share price has slipped ~5%.

Let’s revisit Australia and New Zealand’s largest general insurance provider and see where the downward pressure is coming from.

Why the IAG share price is under pressure?

As previously reported by my fellow Fool, Nikhil, the latest news from IAG is the finalisation of its FY22 aggregate reinsurance cover.

According to the company, the FY22 aggregate cover provides protection of $350 million in excess of $400 million. Additionally, individual events will be capped at $200 million in excess of $50 million per event.

Furthermore, IAG’s catastrophe cover after allowing for quote share arrangements comes to a maximum event retention of $169 million at 1 July 2021.

Storms rain down on IAG

Zooming out on the IAG share price, the recent storms and floods in Victoria appeared to unleash concern among investors.

The insurance company noted that it had received around 4,300 claims as of 15 June. For the most part, these claims involved property damage.

At the time, the number of claims was expected to climb higher as residents returned and inspected their homes more closely.

IAG’s preliminary estimate indicated that the Victorian floods could lift its FY21 natural perils claim costs between $720 million to $743 million. This would exceed the company’s allowance of $658 million and its previous guidance of $660 million to $700 million.

When it comes to insurance, claims are costs. Therefore, the increased natural perils cost would weigh on profitability.

The post What’s weighing down the IAG (ASX:IAG) share price lately? appeared first on The Motley Fool Australia.

More reading

• It’s been a tough month for the IAG (ASX:IAG) share price so far
• 5 outperforming ASX dividend shares unmasked
• Latest ASX shares to be hit by a broker downgrade today
• ASX 200 rises again, Avita jumps, Shaver Shop sinks
• What moved the IAG (ASX:IAG) share price today?

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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Insurance Australia Group 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/3r9RIHS

The financial year just past proved to be a profitable one for shareholders of the best ASX fintech shares.

While Australia’s traditional banks made a strong comeback during the COVID recovery year, the 5 best fintech ASX shares trading on the All Ordinaries Index (ASX: XAO) all saw their shares gain significantly more.

As our benchmark, the All Ords (which contains the 500 largest shares on the ASX) gained 25% during FY21, which ran from 1 July 2020 through to 30 June 2021.

Now let’s see how these nimble financial players stacked up.

Best ASX fintech share: HUB24 Ltd (ASX: HUB)

The best ASX fintech share to hold during FY21 was HUB24, with shares gaining 198% over the year.

The company uses its technology driven wealth management solutions to connect advisers and their clients. And it seems to be doing so efficiently. In March this year, HUB24 reported its funds under management (FUM) had increased 237% year-on-year to $51.4 billion.

HUB24 closed the financial year trading at $28.51 per share. It has a market cap of $1.8 billion and pays a slender dividend yield of 0.31%, fully franked.

Praemium Ltd (ASX: PPS)

Taking out the number 2 spot in our best ASX fintech list is Praemium, which gained 184% over the 12 months.

The company offers portfolio administration, investment platforms, and financial planning tools for the wealth management industry. And like our number one performer, Praemium also saw its funds under management grow strongly during the year, up 96% year-on-year when it provided its March update.

Praemium closed on 30 June at $1.08 per share. With just under 502 million shares outstanding, it has a market cap of $479 million.

Sezzle Inc (ASX: SZL)

Coming in at number 3 is Sezzle. Sezzle shares gained 128% during FY21.

The buy now, pay later (BNPL) share is a relative newcomer to the ASX. It listed in August 2019 and closed its first trading day at $2.39 per share.

In a sign of the growing trend of making a number of interest free payments on purchases, it’s currently at $8.87 per share after hitting all-time highs of $11.34 on 28 August, 2020.

Sezzle finished FY21 trading at $8.81 per share. The company has a market cap of $899 million.

Money3 Corp Ltd (ASX: MNY)

Moving down to number 4, we find Money3, with a highly respectable 116% share price gain over the financial year.

The company focuses on providing non-bank finance via secured automotive loans as well as secured and unsecured personal loans. In May, Money3 cited improved trading conditions to upgrade its profit guidance for FY21 from $36 million to $38 million.

Money3 closed at $3.38 per share on 30 June. It pays a 1.92% fully franked dividend yield and has a market cap of $657 million.

Afterpay Ltd (ASX: APT)

Demonstrating the continued strength of top performing buy now, pay later companies, the fifth best ASX fintech share is Afterpay. Afterpay’s share price gained 95% in FY21.

The BNPL heavyweight first began trading on the ASX in June 2017. And investors who bought shares back on day 1 would currently be sitting on paper gains of 3,912%.

Afterpay closed FY21 at $188.17 per share. With roughly 291 million shares outstanding, it has a market cap of $34.4 billion.

The post Here are the 5 best ASX fintech shares of the 2021 financial year appeared first on The Motley Fool Australia.

More reading

• Afterpay and Zip shares on watch amid Apple Pay Later speculation
• 5 things to watch on the ASX 200 on Wednesday
• 3 ASX growth shares named as buys
• Ansarda (ASX:AND) share price surges on record quarter
• How did the S&P/ASX All Technologies Index (XTX) perform in FY21?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Hub24 Ltd, and Praemium Limited. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Hub24 Ltd and Praemium 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/3kgbO1O

Woolworths Group Ltd (ASX: WOW) shares climbed higher yesterday. By market close, the Woolworths share price was trading at $38.21, 0.53% higher than the previous day.

In fact, the retail giant’s shares have climbed by around 10% since 1 May. Let’s take a closer look at what Woolies has been up to over the last two months.

New ‘dark store’

The company has announced plans to open a dark store in a location in Southern Sydney. A dark store only takes online orders, with no shop-front per se.

Woolworths intends to develop similar stores dotted throughout Sydney as the company pivots to prioritise its e-commerce division.

Woolworths’ share price jumped on the news, hitting an intraday high of $38.33 during yesterday’s session.

The Endeavour demerger

Woolworths commenced and completed the $10 billion demerger of its Endeavour drinks business in June. The Woolworths share price jumped almost 3% on 28 June upon completion of the demerger.

Shareholders voted overwhelmingly in favour of the plan, with 99.85% of the votes cast in favour of the demerger.

The deal is also set to return between $1.6 billion and $2 billion in cash to Woolworths shareholders via dividends.

Following the demerger, Woolworths chief executive Brad Banducci said:

We are excited to focus on our retail ecosystem with our customers and everyday needs at the core, while at the same time partnering with Endeavour Group. We are committed to creating better experiences together for a better tomorrow for all our stakeholders

As a result of the demerger the original Woolworths shares were split into two ASX-listed companies with the newly formed Endeavour Group Ltd (ASX: EDV).

Since the transaction was announced in May, investors have pushed the Woolworths share price up from $34.81 to yesterday’s $38.21.

PFD acquisition

Back in June, the Australian Competition and Consumer Commission (ACCC) announced it would not oppose Woolworths’ acquisition of PFD Food Services.

PFD is one of Australia’s premier foodservice distributors, and Woolworths received the green light for its planned $552 million investment in the company on 11 June.

With this, Woolworths targeted a 65% stake in PFD, and the transaction was finalised at the end of June.

Speaking on the deal, Woolworths’ Banducci said:

This investment is a logical adjacency for Woolworths Group and further supports the evolution of the group into a food and everyday needs ecosystem.

Since the transaction was finalised on 28 June, the Woolworths share price has climbed from $37.85 to today’s trading.

Woolworths share price snapshot

The Woolworths share price has had a choppy ride over the past 12 months, posting a return of around 12%.

Year to date, Woolworths shares have returned 10%, which has lagged the S&P/ASX 200 Index (ASX: XJO)’s return of ~11.3% this year.

At the current market price, Woolworths has a market capitalisation of $48.4 billion.

The post Here’s why the Woolworths (ASX:WOW) share price is up 10% since May appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX: WOW) share price up amid new ‘dark store’ plans
• Are the 10 highest paid ASX 200 CEOs worth their paypackets?
• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat
• These 3 ASX 200 shares were the most heavily traded today
• Where to next for the Woolworths (ASX:WOW) share price?

The author Zach Bristow has no positions 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/3B05ZeZ

2021 has been a year of sideways movement for the Fortescue Metals Group Ltd (ASX: FMG) share price.

Shares in the iron ore major hit record all-time highs of $26.40 on 8 January but tumbled to lows of $18.87 by 22 March.

In the last week, there appears to be a resurgence in confidence for iron ore miners and the broader resources sector, with the Fortescue share price staging an 8.63% rally to close at $25.18 on Tuesday.

Fortescue share price eyeing previous record highs

The Fortescue share price is less than 5% away from its January all-time record high of $26.40.

Encouragingly, Fortescue isn’t alone in its attempt to break out to new highs.

The BHP Group Ltd (ASX: BHP) share price has rallied 4.86% in the last week to $50.70. It’s also not far off its 11 May all-time high of $51.82.

Similarly, the Rio Tinto Ltd (ASX: RIO) share price is up 3.52% in the last week to $128.36. It needs another 2.84% to reach its 10 May record all-time high of $132.94.

What’s the go with iron ore prices?

Iron ore prices continue to defy bearish expectations, holding above the US$200 level.

According to Market Index, the spot iron ore price is currently sitting at US$217.33 a tonne.

Looking ahead, experts believe iron ore could pull back to pre-COVID levels in the medium-to-long term.

The Australian government’s commodity forecaster, Office of the Chief Economist (OCE), said that “prices are forecast to average around US$150 a tonne in 2021, before falling to below US$100 a tonne by the end of 2022, as Brazilian supply recovers and Chinese steel production softens”.

The last time iron ore was fetching US$100 a tonne was around early June 2020.

Back then, the Fortescue share price was trading around $14.

What’s next for the Fortescue share price?

Goldman Sachs has slapped a sell rating on Fortescue shares with a 12-month target price of $18.20.

The broker believes that Fortescue’s rally might be coming to an end and vulnerable to falling iron ore prices.

The post Why the Fortescue (ASX:FMG) share price has rallied 6% in the last week appeared first on The Motley Fool Australia.

More reading

• 2 high quality ASX dividend shares with very big yields
• Are the 10 highest paid ASX 200 CEOs worth their paypackets?
• Which ASX 200 shares helped deliver record profits and a 4.5% dividend?
• 2 excellent ASX 200 dividend shares that could be buys
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Kerry Sun 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/3yT4du5

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.

What happened

After racing upward by more than 4% in Monday trading, Tesla (NASDAQ: TSLA) give back half of its stock price gains Tuesday.

As of 2:52 p.m. EDT, shares of the electric car manufacturer were down by 2.5% from Monday’s close.

So what

So what was troubling Tesla on Tuesday? Well, for one thing, there’s the ongoing trial questioning the propriety of its $2.6 billion acquisition of SolarCity in 2016. Plaintiffs in the case allege that CEO Elon Musk put his own financial interests ahead of those of Tesla’s shareholders. That’s obviously not a good look for the company.

Meanwhile, Wall Street is still digesting the import of recent pricing moves, and of Tesla’s weekend rollout of “FSD v.9.0 Beta,” the latest iteration of the software that’s supposed to help make Tesla cars autonomous and usher in an age of robo-taxis.

In a note it put out Tuesday morning, Goldman Sachs asserted that increased sales and higher prices on Teslas sold will help the company earn an above-consensus $5 a share in 2021. On the other hand, notes TheFly.com, Goldman does worry that chip shortages in the automotive industry could curtail Tesla’s production numbers this quarter. If Tesla isn’t able to sell as many higher-priced Model S and Model X cars as Wall Street expects, that could weigh on profits.

Now what

Rumors of a price hike on the FSD feature (which some speculate could rise from $10,000 currently to $14,000) could help boost Tesla’s profits, of course. On the other hand, in a note released Monday, analysts at Citigroup warned that as far as autonomous driving goes, the new FSD software “doesn’t appear very different than” the software that preceded it, and certainly falls short of the level of independence that would permit transforming Teslas into robo-taxis, as Musk has predicted.

In short, even with share prices down 24% from their highs earlier this year, Citi sees Tesla stock as overpriced. Unlike Goldman Sachs, which thinks Tesla is a “buy,” Citi still argues it’s a “sell” — and worth no more than $175 a share.

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

The post Why Tesla stock just gave back half of Monday’s gains appeared first on The Motley Fool Australia.

More reading

• ASX investors were buying Tesla and Apple shares last week
• ASX lithium shares are surging on Tuesday. Here’s why
• Why Tesla stock took off on Monday
• As markets fall, here’s how a Tesla death cross might actually matter
• Why Tesla stock crashed and burned again on Wednesday

Rich Smith 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 Tesla. 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.

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/3B2WjAa

It has been an unusually disappointing 12 months for the CSL Limited (ASX: CSL) share price.

Since this time last year, the biotherapeutics company’s shares are trading flat.

This compares to a 23% gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Why is the CSL share price underperforming the ASX 200?

Uncertainty is probably the best word to use to explain why the CSL share price is underperforming the ASX 200 over the last 12 months.

This uncertainty is being caused largely by plasma collection headwinds. Plasma is a core ingredient in many of CSL’s life-saving therapies such as immunoglobulins. As this isn’t something that can be made synthetically, the company must collect it from willing donors.

Unfortunately for CSL, the pandemic hit collections hard for a few reasons. One was people staying home to avoid contracting or spreading COVID-19, another was government stimulus payments. The latter meant that donors that donate for the financial reward suddenly had no reason to.

In addition to this, border restrictions in the US have meant that Mexicans have been unable to cross over into the United States to donate plasma.

This ultimately led to plasma collection centres having to raise payments to attract donors, putting pressure on margins. The big question, though, is how much pressure this will have on CSL’s margins and ultimately the CSL share price?

What impact will plasma collections have?

According to a recent note out of Credit Suisse, it is expecting a reasonably large impact to the company’s margins from these plasma collection headwinds.

The broker downgraded CSL’s shares to a neutral rating late last month after estimating that the CSL Behring business could experience a large gross margin decline in FY 2022.

Credit Suisse suspects that its CSL Behring business could have a gross margin of 54.1% in FY 2022. This will be down from 61.2% in FY 2020.

In light of this, the broker revised its earnings estimates lower and cut its CSL share price target to $310. However, due to recent weakness in the CSL share price, this price target now implies decent potential upside of almost 11% over the next 12 months.

Whether CSL’s ASX 200 underperformance continues, only time will tell. But no doubt its full year results and guidance for FY 2022 in August will have a major say in whether that is the case.

The post Why the CSL (ASX:CSL) share price has trailed the ASX 200 by 23% in the last year appeared first on The Motley Fool Australia.

More reading

• Are the 10 highest paid ASX 200 CEOs worth their paypackets?
• Which ASX 200 shares helped deliver record profits and a 4.5% dividend?
• The CSL (ASX:CSL) share price is down 8% in the past month, here’s why
• Worst ASX 20 shares of the past year: CSL (ASX:CSL) makes the cut
• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat

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. 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/3ASCAmO

As part of our end of financial year ruminating, today we bring you the 5 best ASX shares over the 12-month period.

More specifically, the 5 best ASX shares that make up part of the All Ordinaries Index (ASX: XAO).

The All Ords, as you likely know, is home to the 500 largest Aussie listed companies, making up the lion’s share of all listed companies in Australia.

And in FY21 (1 July 2020 through to 30 June 2021) the All Ords gained a whopping 25%.

Now, we need to bear in mind that those outsized gains are partly aligned to the recovery from the COVID-19 inspired market selloff late in FY20. A recovery that continued through much of the past financial year. And some of these same forces helped propel these top performing shares to hefty 1-year gains.

Notably, none of the top 5 gainers for the year pay dividends, with 3 in the resources sector and 2 in healthcare.

So, with that said, the best ASX share of the 2021 financial year was…

Best ASX share: Vulcan Energy Resources Ltd (ASX: VUL)

Over the 12-month period ending 30 June, Vulcan Energy’s shares gained 1,275%. That’s a 10-bagger plus quite a bit of change.

The mineral explorer is predominantly focussed on becoming a go-to lithium supplier for the fast-growing European electric vehicle (EV) markets.

With lithium being a core component in the batteries that power EVs and store grid power from renewables, demand for lithium has seen prices rising quickly. Rising commodity prices have certainly been a tailwind for Vulcan Energy’s share price.

Vulcan Energy closed the financial year trading at $7.70 per share. The company has around 108.8 million shares outstanding and a market cap of $948.4 million.

AnteoTech Ltd (ASX: ADO)

Coming in at close second is AnteoTech, which delivered a 1,175% share price gain in FY21.

The biotechnology company has historically focused in developing specialty products for the energy, diagnostic, and medical device markets. But this past year saw the share price leap after AnteoTech received emergency use authorisation in the United States for its COVID-19 at-home test, initially for the US Department of Defense.

AnteoTech finished FY21 trading at 26 cents per share. The company has a market cap of $468.8 million.

Imogene Limited (ASX: IMU)

Number 3 on our best ASX shares list is Imogene, which gained 1,009% over the year.

The clinical-stage immuno-oncology company is working to defeat one of humanity’s biggest scourges, cancer. And the share price was duly rewarded over the course of the year after the company reported positive progress in phase 2 trials of its gastric cancer treatment drug, HER-Vaxx.

Imogene closed on 30 June at 36 cents per share. The company is among the larger ones to make the top performers’ list, with a market cap of $1.6 billion.

Piedmont Lithium Inc (ASX: PLL)

Our fourth best performer for the financial year gone by is Piedmont Lithium, which saw shares gain 1,033% over the 12-month period.

As with our number one performer, Piedmont has capitalised on the booming demand for lithium. Demand growth which many analysts expect to continue.

Among its holdings, the company’s Carolina Lithium project – intended to supply the ever-growing fleet of EVs in the United States – looks to become one of the largest and lowest-cost producers of lithium hydroxide in the world.

Piedmont Lithium finished off FY21 trading at $1.02 per share. The resource company has a market cap of $552 million.

Chalice Mining Ltd (ASX: CHN)

Rounding off the list as the number 5 best ASX share is Chalice Mining, gaining 706% over the year.

The resource explorer and producer has had significant success at its Julimar project in Western Australia, where it’s hunting for large deposits of nickel (Ni) and copper (Cu) ore.

Chalice Mining closed FY21 trading at $7.42 per share. It’s the biggest company to make the top performers’ list, with a market cap of $2.6 billion.

The post The 5 best ASX shares of FY21 revealed appeared first on The Motley Fool Australia.

More reading

• ASX lithium shares are surging on Tuesday. Here’s why
• Why Australian Pharma Industries, Audinate, NRW, & Vulcan are racing higher
• Chalice Mining (ASX:CHN) share price flops on demerger of gold assets
• Why the Vulcan Energy (ASX:VUL) share price is surging higher today
• These 5 ASX lithium shares energised investor portfolios in FY21

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/3khb50y

The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price, or Soul Patts, has been rising in recent months. What do brokers make of the business?

What is Soul Patts?

Soul Patts is an investment conglomerate that has been listed since 1903. It was originally a pharmaceutical business but it has since diversified into a number of different businesses and industries.

The company has a large number of listed investments in the portfolio including: TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Clover Corporation Limited (ASX: CLV), Bki Investment Co Ltd (ASX: BKI), Pengana International Equities Ltd (ASX: PIA), Pengana Capital Group Ltd (ASX: PCG) and Tuas Ltd (ASX: TUA).

Soul Patts also has a number of unlisted investments in sectors like resources, financial services, swimming schools and agriculture.

What has the Soul Patts share price done recently?

Over the last month, the Soul Patts share price has risen by 6%.

In the last six months it has gone up by 16%.

Recent news

A few weeks ago, Soul Patts announced that it intends going to merge with/acquire Milton Corporation Limited (ASX: MLT).

Milton shareholders will be offered Soul Patts shares as consideration with Milton shares to be valued at a 10% premium to the adjusted net tangible assets (NTA).

The Milton independent directors have unanimously recommended the takeover deal, assuming there are no better offers and the independent expert concludes that the deal is in the interests of Milton shareholders.

Soul Patts said that the merger will create a larger, more diversified investment company, focused on achieving long-term market outperformance, continuing long-term growth in dividends and growing portfolio allocations to new and alternative asset classes.

There was also a proposed takeover of Australian Pharmaceutical Industries Ltd (ASX: API) – one of Soul Patts’ larger investments – by Wesfarmers Ltd (ASX: WES).

Wesfarmers has offered $1.38 cash per share. That proposal represented a 21% premium to the last closing price of $1.145.

Soul Patts owns 19.3% of API and has agreed to vote in favour of the proposal and has granted a call option in respect of its API shares in favour of Wesfarmers.

Wesfarmers says that it’s well-positioned to bring capital and unique capabilities to support investment that will strengthen the competitive position of API and its community pharmacy partners.

However, Wesfarmers is still looking to find the support of the API board and its recommendation of the proposal to API’s shareholders.

What do brokers think of the Soul Patts share price?

Morgans currently rates Soul Patts as a hold with a price target of $28.84. That means that the broker is expecting the ASX share to potentially fall more than 10% over the next 12 months.

The broker pointed out that Milton deal could add approximately 15% to its net tangible assets (NTA). Morgans reckons the deal will add diversification but doing it without needing to sell any of its bigger positions.

Time will tell if Morgans increases its price target when the deal is done.

According to the broker, it’s valued at 37x FY22’s estimated earnings.

The post Do brokers rate the Soul Patts (ASX:SOL) share price as a buy? appeared first on The Motley Fool Australia.

More reading

• The Argo Investments (ASX:ARG) share price hits a new all-time high
• Leading brokers name 3 ASX shares to sell today
• Wesfarmers (ASX:WES) share price gains amid rumours of Priceline rival
• 2 ASX 200 blue chip shares that might be the best to buy
• 5 things to watch on the ASX 200 on Tuesday

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 Washington H. Soul Pattinson and Company Limited and 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/3wDVF8U

The Nearmap Ltd (ASX: NEA) share price has accelerated over the past month, leaving the S&P/ASX 300 (ASX: XKO) behind. At the end of Tuesday’s market close, the aerial imagery specialist’s shares finished 14.36% higher, trading at $2.27.

This means that in a month, Nearmap shares have gained more than 20%, reflecting renewed positive investor sentiment.

Following the company’s latest share price rise, we take a look at its recent updates including yesterday’s upgraded guidance.

Why is the Nearmap share price surging lately?

Trading performance

Investors appear buoyant on the company’s prospects after it provided some clarity on its trading performance for FY21.

In Tuesday’s statement to the ASX, Nearmap revealed its unaudited preliminary results for the year ending 30 June 2021.

According to the release, the company reported that it expects to exceed its recently upgraded guidance of $128 million to $132 million. Annual contract value (ACV) is forecast to close FY21 at $133.8 million on a constant currency basis. This represents an increase of 26% on the prior corresponding period (FY20).

Nearmap’s robust performance was driven by record ACV growth in North America, surging 54% to US$44.5 million. The company noted that this reflected 46% of the entire group portfolio.

The Australia and New Zealand segment lifted by 7% to $69.1 million, further extending its market leadership position.

Nearmap declared a healthy cash balance of $123.3 million for the end of the 2021 financial year.

Other updates

In addition to the trading result, the company announced its HyperCamera3 prototype has been tested in flight. Nearmap aims to roll out the next-generation camera system commercially sometime in FY22.

Nearmap also provided an update on the United States district court proceedings. It said that claims of patent infringement made by Eagle View Technologies, Inc and Pictometry International Corp are without merit. As such, Nearmap has engaged in internationally recognised patent litigators to lead its defence against the accusations.

A broker note from Citi came in the middle of May putting a price target of $2.00 for Nearmap shares. Although this is more than a month old, more brokers may weigh in the company’s share price target following yesterday’s release.

Despite plenty of peaks and troughs along the way, the Nearmap share price remains relatively unchanged when compared to this time last year and for the 7 months in 2021.

The post Why the Nearmap (ASX:NEA) share price is up 20% in a month appeared first on The Motley Fool Australia.

More reading

• ASX 200 flat, Select Harvest jumps, Nearmap soars
• ASX 200 midday update: Nearmap rockets, Incitec Pivot jumps
• Why Nearmap, PolyNovo, Select Harvests, & Youfoodz shares are storming higher
• Why the Nearmap (ASX:NEA) share price has risen 10% this morning
• Here’s how some of the top ASX SaaS shares performed in FY21

Motley Fool contributor Aaron Teboneras owns shares of Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. 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/36yDtTH

Banking, mining, retail, technology — we all know the ASX sectors that investors favour.

But what about some of the lesser-known industries?

If most people are backing companies in the same old fields then surely there must be some underpriced gems in niche areas?

When The Motley Fool spoke to Cyan Investment Management portfolio manager Dean Fergie recently, he picked 2 shares that he considered the best buys currently.

And they both play in unusual sectors.

Steady-earning ASX share is working on the ‘one big winner’

Melbourne electronic games developer Playside Studios Ltd (ASX: PLY) floated on the ASX last December.

Fergie noted that game makers can go down one of two paths. Either create original content or make software for other companies, such as movie studios.

“Playside has got a really, really good blend of building games for the other big studios. So that revenue is more defined, a lot lower risk,” he told this week’s Ask A Fund Manager.

“But what they’re also doing is developing their own IP in games and working towards having that one big winner down the track — be it console, mobile or PC.”

Hitting that ‘home run’ makes or breaks most games developers.

“It’s almost like running a movie studio. If you’ve got enough content, you’re going to get that one big hit that really builds the company.”

Playside shares entered the ASX with an initial public offering (IPO) price of 20 cents. That immediately doubled to 41 cents within a few hours of listing.

That IPO hype has now died down, with the stock going for 30 cents on Tuesday afternoon.

A famous name who found an absolute steal

Did you know television chef Maggie Beer has an ASX-listed company named after her?

Fergie is a fan of Maggie Beer Holdings Ltd (ASX: MBH), which focuses on producing gourmet food and drinks.

“Everyone knows the Maggie Beer name,” he said.

“But most excitingly, a couple of months ago, they bought an online business called The Hamper Emporium. And we think they got that at an absolute steal.”

According to Fergie, having this online presence perfectly complements the existing physical business.

“We think as entertainment is kind of subsiding a bit — you’re not thanking your customers anymore by taking them to the footy or the Grand Prix or the Olympics,” he said.

“This hamper kind of gifting is going to continue to boom.”

Maggie Beer, which has its namesake on the board, has seen its shares slide down 21.4% for the year. However, the stock is up 75% in the past year.

Fergie still can’t believe how little the company paid for The Hamper Emporium.

“They paid about a third of the multiple. I actually don’t know how they got it so cheaply, but they did.”

The post 2 hot ASX shares playing in niche sectors appeared first on The Motley Fool Australia.

More reading

• ‘That hurts’: Fund manager reveals his 35-bagger ‘failure’

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. 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/3iar39S