Post-COVID recovery stocks have had a nice run the past 6 months. So much so that many are now above their pre-pandemic highs, making them fairly expensive.

But one fund manager reckons he’s found a cheap ASX share that’s yet to realise its potential.

“We have screened the small caps universe for tactical opportunities within the later-stage (recovery) cohort which still offer earnings and valuation upside potential,” said Montgomery portfolio manager Dominic Rose. 

“A clear standout here is outdoor media company, oOh!Media Ltd (ASX: OML).”

oOh!Media is a provider of ‘out of home’ advertising.

“The company reaches 77% of the metropolitan and regional population via an extensive network of circa 37,000 digital and static asset locations,” Rose said.

“These include roadside billboards, retail shopping centres, offices, bus stops, train stations and airports.”

How COVID-19 killed oOh!Media’s business

The pandemic last year completely floored the outdoor advertising market.

“COVID-19 absolutely hammered the out-of-home sector, far worse than most other forms of media, with audiences significantly declining due to initial lockdowns and mobility restrictions,” said Rose.

“Advertisers pulled outdoor campaigns and redirected what was left of their budgets towards viewers stuck at home in front of the telly.”

oOh!Media suffered a painful 62% reduction in year-on-year revenue for the quarter ending June 2020.

“Faced with a rapidly evolving and highly uncertain near-term outlook, management took the decisive steps to materially reduce operating costs and strengthen the balance sheet,” said Rose.

Outdoor ads will roar back

Rose is optimistic about oOh!Media’s recovery as he’s certain outdoor ads will make a comeback as Australia adjusts to post-coronavirus life. 

Earnings would recover to pre-pandemic levels next year, he suspects.

“Clear upside potential for the business exists as workers eventually return to offices and borders reopen to facilitate a travel sector recovery,” Rose said.

“We also see OML as well positioned to benefit from the strong domestic macro backdrop which should drive higher advertising rates across all formats as big advertisers like banks and auto come back into the outdoor market.”

The best thing is that the fund manager is convinced the market has not yet fully realised the ASX share’s comeback potential.

At the market close on Tuesday, oOh!Media shares were down 0.58%, trading at $1.71. That’s only 5.2% up from the start of the year.

“Valuation looks too cheap to us. The stock is trading on 7.5x recovered EBITDA (2022) which compares to OML’s historic average of 10x to 12x and the broader small cap market on 11x,” Rose said.

“We see potential for the stock to rerate towards 10x as confidence in the earnings recovery builds.”

That’s a 33% upside that the Montgomery Small Companies Fund is betting on.

Rose admitted the recent lockdowns in Sydney and Melbourne have been a setback for the ASX share.

“However, successful vaccination programs in countries like the US and the UK provide confidence in the medium-term outlook.”

The post Pssst… here’s a cheap COVID-recovery ASX share appeared first on The Motley Fool Australia.

More reading

• COVID-19 lockdown hits oOh!Media (ASX:OML) share price

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 recommended oOh!Media Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Telstra Corporation Ltd (ASX: TLS) share price has been a very strong performer in 2021.

Since the start of the year, the telco giant’s shares are up almost 20%.

Can the Telstra share price climb even higher?

The good news is that one leading broker still believes the Telstra share price has a lot further to run from here.

According to a note out of Goldman Sachs this morning, the broker has retained its buy rating and lifted its price target to $4.20.

Based on the current Telstra share price, this implies potential upside of 16.5% over the next 12 months excluding dividends. And if you include the 16 cents per share fully franked dividend the broker is forecasting, this potential return stretches to over 21%.

What did Goldman say?

Goldman Sachs is bullish on the Telstra share price largely due to its belief that the key Mobile business is well-placed for growth.

Its analysts commented: “We have high conviction on the quantum of mobile market repair that is occurring in Australia, along Telstra’s ability to grow subscribers and ARPU across FY21-23E. Based on our detailed analysis, we estimate that Telstra could potentially achieve a postpaid ARPU > A$53/sub/m in FY23 (vs. $46 in 1H21) which is c.6% ahead of Visible Alpha Consensus Data expectations.”

Goldman believes there are a number of reasons why this is achievable. This includes deferred 5G prices rises impacting ~30% of subscribers, rational market behaviour, and international roaming recovery.

Overall, the broker notes that this underpins its $7.8 billion underlying EBITDA estimate for FY 2023, which is 4% ahead of the consensus estimate but well within Telstra’s $7.5 billion to $8.5 billion aspiration.

What else did it say?

Also potentially giving the Telstra share price a lift in the coming years could be the introduction of inflation-linked pricing. Goldman sees opportunities for Telstra to follow the lead of UK telcos that have done this recently.

It explained: “We also consider whether the AU telco market has capacity to introduce inflation linked pricing across fixed & mobile plans, potentially in response to the recent NBN pricing proposals that has a CPI plus component to access pricing.”

“We believe that should Telstra, as the incumbent, introduce inflation-linked pricing, the industry would likely follow, which could drive sustained revenue growth in an industry that has historically seen pricing deflation.”

“This would be consistent with what was launched in the UK in 2020, where operators are implementing +4.5% price rises in early 2021 (CPI + 3.9%). On a recent earnings call, VOD also noted it was planning on launching inflation-linked pricing across Europe, given it was well-received in the UK,” it added.

The post Telstra (ASX:TLS) share price tipped to jump 16% from here appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are 3 ASX 200 shares making market moves today
• Should you buy Telstra (ASX:TLS) shares for its dividend yield?
• Temple & Webster share price surges with other ASX COVID winners
• ASX 200 Weekly Wrap: Share market breaks 5 week winning streak

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 Telstra Corporation 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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Luckily for income investors during these low interest rate times, the Australian share market is home to a number of companies offering very generous yields.

Two that do just this are listed below. Here’s why they could be top options for income investors:

Aventus Group (ASX: AVN)

The first ASX dividend share to look at is this leading owner, manager, and developer of retail parks. Aventus has been performing very positively during the pandemic. This has been driven by its high weighting to household goods and everyday needs retailing, which have experienced strong and sustained consumer demand.

Things have been going so well that Aventus recently revealed that the value of its properties have increased by $254 million or 12% since the end of December. It also advised that it expects its earnings to grow 7% this year, compared to its prior guidance of 4% growth.

This went down well with analysts at Goldman Sachs, who retained their buy rating and lifted their price target to $3.27. The broker is also forecasting distributions per share of 16.7 cents, 18.85 cents, and then 20.4 cents between now and FY 2023. Based on the current Aventus share price, this represents yields of 5.2%, 5.9%, and 6.4%, respectively.

Mineral Resources Limited (ASX: MIN)

Another high yield ASX dividend share to consider is Mineral Resources. It is a mining and mining services company with exposure to iron ore and lithium.

Thanks to the sky high iron ore price, Mineral Resources has been tipped by analysts at Macquarie to reward shareholders with some big dividends over the next couple of years. It is for this reason that the broker currently has an outperform rating and $73.00 price target on the company’s shares.

Macquarie is expecting Mineral Resources to pay fully franked dividends of $3.32 per share in FY 2021 and then $3.05 per share in FY 2022. Based on the latest Mineral Resources share price of $51.64, this will mean fully franked yields of 6.4% and 5.9%, respectively, over the next two financial years.

The post 2 high yield ASX dividend shares named as buys appeared first on The Motley Fool Australia.

More reading

• Mineral Resources (ASX:MIN) share price nears all-time high
• 2 buy-rated ASX dividend shares with 4%+ yields
• Why the Aventus (ASX:AVN) share price edged higher today
• 2 high yield ASX dividend shares rated as buys
• These ASX dividend shares have generous yields

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) fought back from a heavy morning decline to finish the day just a touch lower. The benchmark index fell almost 0.1% to 7,301.2 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to push higher on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.35% higher this morning. This follows a reasonably positive night of trade which saw the Dow Jones and S&P 500 rise slightly and the Nasdaq push 0.2% higher.

Oil prices push higher

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could be on the rise on Wednesday after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 0.65% to US$73.40 a barrel and the Brent crude oil price is up 0.6% to US$75.11 a barrel. Oil prices rose after demand hopes offset concerns the Delta variant of COVID-19 reducing mobility globally.

Telstra rated as a buy

The Telstra Corporation Ltd (ASX: TLS) share price could be heading notably higher from here according to analysts at Goldman Sachs. This morning the broker has retained its buy rating and lifted its price target to $4.20. The broker suspects that Mobile ARPU growth could positively surprise over the coming years. It also sees opportunities for Telstra to introduce inflation linked pricing across fixed and mobile plans.

Gold price sinks

It could be a tough day for gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) after the gold price sank overnight. According to CNBC, the spot gold price is down 1.1% to US$1,761.40 an ounce. The precious metal fell to an 11-week low amid concerns that a strong U.S. jobs report this week could cement the Federal Reserve’s recent hawkish stance.

Nuix insider trading allegations

The Nuix Ltd (ASX: NXL) share price will be on watch today amid allegations of insider trading at the embattled investigative analytics and intelligence software. According to the SMH, the company’s recently sacked chief financial officer, Stephen Doyle, is the subject of a criminal investigation into insider trading and dealing with the proceeds of crime over Nuix shares. Mr Doyle’s brother and father are also being investigated according to the report.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• ASX 200 dips, Collins Foods drops, Kathmandu falls
• Here are 3 ASX 200 shares making market moves today
• Leading brokers name 3 ASX shares to sell today
• Why this expert thinks commodities are about to rally again
• ASX construction shares like Brickworks (ASX:BKW) are falling 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. has recommended Nuix Pty Ltd. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Nuix Pty Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) went down by around 0.1% to 7,301 points.

Here are some of the highlights from the ASX today:

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price dropped around 5.7% after revealing its FY21 report. It was the worst performer in the ASX 200. 

It reported that total revenue increased 12.4% to $1.07 billion, with KFC Australia revenue rising 13.8% to $900.4 million. KFC Europe same store sales (SSS) declined 0.6% whilst Taco Bell revenue rose 57.4% to $28 million.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) from continuing operations (before AASB 16) went up 12.4% to $136.3 million. Underlying net profit after tax (NPAT) (before AASB 16) increased 18.2% to $56.9 million.

The ASX 200 share’s board declared a final dividend of 12.5 cents per share. That brings the total FY21 fully franked dividend of 23 cents per share, up 15%.

Collins Foods CEO Drew O’Malley had these comments on the outlook and Taco Bell:

With continuing strong cash generation and a healthy balance sheet, Collins Foods is well positioned to continue to pursue strategic organic and acquisition growth opportunities across the group in the year ahead.

Taco Bell is on track for accelerated development in FY22, supported by ongoing consumer demand for Mexican in Australia, and a refined marketing approach. With nine to 12 new restaurants in the pipeline in the year ahead, we remain committed to our strategy of achieving scale within three to five years. New restaurants will be opened in tightly concentrated clusters in Queensland and Victoria and we expect to open our first Perth restaurant in late 2021. Increased points of presence support brand visibility and will be complemented by a simplified marketing strategy that emphasises the core product range and everyday value, as we continue to brand drive awareness and trial.

Kathmandu Holdings Ltd (ASX: KMD)

The Kathmandu share price dropped 4% today after giving an update.

A number of its stores have suffered disruption because of the latest lockdowns of stores in NSW and WA. There was also the impact of the Victorian lockdown at the start of June.

Kathmandu’s sales for FY21 are expected to be below original expectations at approximately $930 million and underlying EBITDA is estimated to be approximately $120 million.

The impact of the NSW and Victorian lockdowns is estimated to be around $13 million of EBITDA.

Kathmandu did say that its stores had a positive start to winter, with trading broadly in line with pre-COVID-19 levels before Australian lockdowns began to cause impacts.

However, Rip Curl has continued to trade strongly according to the company. Despite COVID-19 disruptions, the North American and Europe regions have been “well above” pre-COVID-19 levels. Wholesale orders received for FY22 continue to show double digit growth compared to FY19.

Oboz has seen record sales performance in the second half of FY21, with wholesale orders for FY22 significantly above both FY19 and FY20.

Regional Express Holdings Ltd (ASX: REX)

The regional airline, which calls itself Rex, announced it had signed a letter of internet (LOI) with a lessor for the lease of two Boeing 737-800NGs.

The two aircraft are expected to arrive in late August, increasing the 737 fleet to eight, and are scheduled to enter service on Rex’s domestic network in September.

Rex said that the two additional aircraft will provide Rex with the ability to launch new routes to other capital cities, large regional centres and popular leisure destinations. The new routes will be announced shortly.

The post ASX 200 dips, Collins Foods drops, Kathmandu falls appeared first on The Motley Fool Australia.

More reading

• Here are 3 ASX 200 shares making market moves today
• Why Collins Foods, Genworth Mortgage Insurance, Kathmandu, & ResMed are sinking
• ASX construction shares like Brickworks (ASX:BKW) are falling today
• ASX 200 down 0.9%: Big four banks drop, Metcash charges higher
• Collins Foods (ASX:CKF) share price hits record high after reporting strong FY 2021 growth

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods 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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While the Australian tech sector may not be anywhere near as large as its US equivalent, that doesn’t mean there aren’t any quality options for investors to choose from.

Three ASX tech shares that are highly rated are listed below. Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first tech share to look at is Altium. It is an electronic design software provider best-known for its Altium Designer and Altium 365 platforms. These platforms dominate the electronic design market, which continues to expand due to the growing Internet of Things and artificial intelligence industries. Management is confident in its growth prospects. So much so, it is aiming to more than double its revenue to US$500 million within five years.

Analysts at Credit Suisse are positive on the company. Earlier this month they retained their outperform rating on its shares and lifted their price target on them to $42.00. The Altium share price is currently fetching $36.36.

Life360 Inc (ASX: 360)

Another ASX tech share to look at is San Francisco-based app maker Life360. Its eponymous app offers families a wide range of safety solutions for the modern world. This includes real-time location sharing and notifications, driving safety features like Crash Detection and Roadside Assistance, and messaging. At the last count, the company had a massive 28 million monthly active users.

This morning Morgan Stanley initiated coverage on the company with an overweight rating and $8.60 price target. This compares to the current Life360 share price of $6.25.

Whispir Limited (ASX: WSP)

Whispir is a software as a service (SaaS) communications workflow platform provider. Its popular platform is used by 750 businesses globally to automate interactions between them and their people and customers. Among its users are the Australian Government, Changi Airport, Monash University, Nespresso, and Takata. Management estimates that it has a total addressable market of US$4.7 billion in just United States. This compares to its current annualised recurring revenue (ARR) of $50.3 million.

Ord Minnett has a buy rating and $4.25 price target on Whispir’s shares. This is notably higher than the latest Whispir share price of $2.49.

The post Here are 3 ASX tech shares tipped for big things appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Life360, Marley Spoon, & Metcash are storming higher
• How growing dividend shares can supercharge your income
• 5 things to watch on the ASX 200 on Tuesday
• Investing $20k into these ASX shares 10 years ago would have made you very rich
• 3 stellar ASX growth shares named as buys

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 Altium and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Life360, Inc. The Motley Fool Australia owns shares of and has recommended Altium. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are a group of ASX shares that are growing at a very fast pace. Some are growing revenue by double digits, or even triple digits.

Businesses that are producing fast revenue growth may be able to generate profit growth and benefit from increasing scale.

Here are two businesses that are growing really quickly:

Bapcor Ltd (ASX: BAP)

This business has the goal of being the leading auto parts business in the Australasian region.

It has a number of operating segments include Bapcor Trade (which includes Burson), Bapcor New Zealand, retail (including Autobarn and Autopro), specialist wholesale (such as commercial vehicles and electrical), and service (like Midas and ABS).

In the first six months of FY21, the ASX share reported it had grown revenue by 25.8% and it saw net profit growth of 49.7%.

One of the main ways that Bapcor is looking to grow revenue and profit is by increasing its network footprint, both physical and online. It has plans to grow its number of stores, rolling out improved ‘concepts’ to differentiate against competitors. Bapcor wants to provide customers with an online offering to supplement its physical stores. The company also wants to grow its existing store sales and geographic expansion in Asia.

In Australia, it’s looking to grow its trade network by 10 to 12 stores per annum to a total of 260 over the next five years, up from 200. For Australian retail, it currently has 133 stores and will add around 12 new stores a year as it targets 200 Autobarn stores for the longer-term.

In Asia, the ASX share is targeting more than 60 stores in Thailand, it currently has six stores. This may translate into $100 million of annual revenue. Overall, Bapcor is targeting $500 million of Asian revenue thanks to its Tye Soon stake purchase.

Bapcor is also consolidating 13 distribution centres in Victoria into one located in Tullamarine.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is an online homewares and furniture business that sells many thousands of products by suppliers which ship directly to customers. That saves on inventory costs for the ASX share and makes delivery quicker.

In the third quarter of FY21, Temple & Webster said it continues to exceed expectations with revenue growth of 112%. Active customers reached around 750,000.

April 2021 revenue was up more than 20%, despite April 2020 having a large amount of sales because of the nationwide lockdowns.

The ASX share said it has a growth strategy to grow its online market leadership, utilising its strong balance sheet and capitalising on the significant market opportunity as more people buy homewares online.

In the short-term, the business is expecting a lower earnings before interest, tax, depreciation and amortisation (EBITDA) margin, but then it expects to achieve higher profit margins from greater scale benefits.

Temple & Webster CEO and co-founder Mark Coulter said:

You only need to look at the US to see how the e-commerce market is playing out, and why we remain bullish about the shift from offline to online. We are at the start of this once in a generation shift, and now is the time to put our foot down to secure market leadership and ensure we are the brand for the next generation of future shopper.

The post 2 ASX shares that are rapidly growing appeared first on The Motley Fool Australia.

More reading

• How growing dividend shares can supercharge your income
• ASX 200 flat, e-commerce ASX shares soar, Metcash rises
• These are the 10 most shorted shares on the ASX
• Why Atomo, Metcash, Temple & Webster, & Woolworths are pushing higher
• Temple & Webster share price surges with other ASX COVID winners

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 Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX copper shares have been enjoying some strong tailwinds since March 2020 as the price of the red metal has rocketed to near record highs.

At the time of writing, copper is trading for US$9,388 (AU$12,353) per tonne. While down from early May’s US$10,417 per tonne, that’s still almost double the US$4,790 per tonne copper was fetching on 20 March 2020.

And it’s not just ASX copper shares enjoying the higher price of the commodity they dig or grow from the dirt.

The global commodity sector has now gained for 5 quarters in a row. And more gains could be in the pipeline.

More tailwinds ahead for ASX copper shares

Saxo Market’s Ole Hansen, head of commodity strategy, forecasts continued growth for the commodity sector. Though not at the same blistering pace witnessed since the recovery from the pandemic led market meltdown last year.

In Saxo’s Q3 2021 Quarterly Outlook report, released this afternoon, Hansen writes:

Since the pandemic and global lockdown lows in March last year, the Bloomberg Commodity Spot index, which tracks the front-month futures performance of a basket of raw materials from energy to metals and agriculture, has surged higher by 75% to reach a ten-year high.

Hansen notes that many analysts are speculating that the world has entered a new commodity super-cycle. The commodity sector is prone to occasional super-cycles because, “Supply and demand imbalances take time to correct due to high start-up capex for new projects, along with the time needed to harness new supply.”

The copper sector offers a good example. Hansen says it can take 10 years from decision to production in the copper industry. He adds, “Such long periods often cause companies to postpone investment decisions while waiting for rising prices, at which point it is often too late to avoid further price gains.”

The most recent commodity super-cycle was driven by China’s rapid growth and subsequent massive new demand for raw materials, which “helped drive the Bloomberg Commodity Spot index up by almost 350%”. That super-cycle didn’t come to an end until the GFC crippled financial markets in 2008.

As for the demand for metals like copper?

Narrowing in on copper and other metals, Saxo’s outlook remains decidedly bullish for the upcoming quarter.

According to Hansen:

In metals, the combination of increased government spending on infrastructure and decarbonisation will continue to drive strong demand for metals including copper and iron ore – the key ingredient to make steel – as well as aluminium, zinc and even semi-industrial metals such as silver and platinum.

Also supporting commodity prices (and offering tailwinds to ASX copper shares) is Saxo’s forecast that inflation will rise faster than most central bankers are predicting. And that higher prices will be longer lasting rather than a flash in the pan.

Hansen says this will create “continued demand from investors as they will need real assets such as commodities to hedge their portfolios”.

2 leading ASX copper shares

There are a number of quality ASX copper shares investors can research.

For the purposes of this article, we’ll focus on 2 of the top copper producers.

First up, Oz Minerals Limited (ASX: OZL). Oz Minerals is part of the S&P/ASX 200 Index (ASX: XJO) and has a market cap of $7.44 billion. It also pays a dividend yield of 1.1%, fully franked.

The Oz Minerals share price has far outperformed the benchmark, with shares up 104% over the past 12 months and up 16% year-to-date.

Our second leading ASX copper share is Sandfire Resources Ltd (ASX: SFR), which has a market cap of $1.22 billion. Sandfire pays a dividend yield of 3.2%, fully franked.

The Sandfire share price has also outperformed, with particularly strong gains in 2021. Over the past 12 months, Sandfire shares are up 34%, with shares up 25% year-to-date.

The post How Saxo Market’s Q3 outlook is good news for ASX copper shares appeared first on The Motley Fool Australia.

More reading

• 5 outperforming ASX dividend shares unmasked
• ASX copper shares up and down as copper price bounces back
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• Why ASX copper shares are coming under pressure

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

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The Metcash Limited (ASX: MTS) share price was a strong performer on Tuesday.

The wholesale distributor’s shares jumped 6% to a multi-year high of $3.92 before closing the day at $3.90.

This means the Metcash share price is now up an impressive 43% over the last 12 months.

Why did the Metcash share price race higher?

Investors were bidding the Metcash share price higher today after brokers responded positively to yesterday’s full year results release.

In case you missed it, on Monday the company reported a 9.9% increase in revenue to $14.3 billion and a 27.1% jump in underlying profit after tax to $252.7 million. This allowed Metcash to increase its full year fully franked dividend by 40% to 17.5 cents per share and announce a $175 million share buyback.

What did brokers say?

A number of brokers have responded to the results release and have suggested that the Metcash share price is in the buy zone. One of those is Goldman Sachs, which retained its buy rating and lifted its price target to $3.97.

Commenting on the result, Goldman said: “MTS produced a strong performance in FY21 with Revenue growth of 10.1% (despite annualisation of customer losses in Food) and EBIT growth of 19.9%, reflecting the company’s exposure to COVID driven categories and solid execution.”

And while the broker notes that its Food business disappointed by failing to demonstrate operating leverage over the period, it highlights that the Metcash thesis remains a good one. This is thanks largely to its Hardware business.

The broker explained: “While we have pulled back expectations for Food earnings, Hardware has been revised up as Total Tools earnings annualise into FY22 and store rollout accelerates. Overall, we revise group EBIT forecasts by +1.9% and +1.8% respectively over FY22e and FY23e. Underlying NPAT is revised by +0.8%. We are forecasting a three year EBIT CAGR of 3.4% for MTS, with Hardware at 8.7%, driving ~90% of earnings growth out to FY24.”

What about the rest?

Elsewhere, analysts at Credit Suisse and Morgan Stanley are a touch more bullish than Goldman Sachs.

This morning Credit Suisse retained its outperform rating and lifted its price target to $4.16, whereas Morgan Stanley retained its overweight rating and increased its price target to $4.15.

This could mean that the Metcash share price still has a little further to run despite hitting a multi-year high today.

The post Bullish brokers drive Metcash (ASX:MTS) share price to multi-year high appeared first on The Motley Fool Australia.

More reading

• Which ASX 200 shares are standing tall after today’s volatile session?
• Why Core Lithium, Life360, Marley Spoon, & Metcash are storming higher
• ASX 200 down 0.9%: Big four banks drop, Metcash charges higher
• ASX 200 flat, e-commerce ASX shares soar, Metcash rises
• These are the 10 most shorted shares on the ASX

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

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The  S&P/ASX 200 Index (ASX: XJO) has clawed its way up from a -0.91% fall by lunchtime to a close of -0.08%.

Most sectors opened in red this morning, as new COVID-19 cases around Australia continued to pressure states into lockdown.

The S&P/ASX 200 Info Tech (INDEXASX: XIJ) index was the only sector in the green this morning, extending its gains to 0.66% by market close.

Pleasingly, sectors including healthcare, consumer staples, consumer discretionary and financials managed to finish Tuesday’s session in positive territory — but only barely.

With the market moving in a volatile fashion, let’s take a look at which ASX 200 shares managed to stand tall.

Top performing ASX 200 shares today

Metcash Limited (ASX: MTS) was the best performing ASX 200 share on Tuesday, up 5.69% to $3.90.

The wholesale distributor announced its full-year results on Monday. They highlighted a solid 9.9% increase in revenue to $14.3 billion and a $175 million off-market share buy-back.

The Lynas Rare Earths Ltd (ASX: LYC) share price was also pushing higher, up 3.47% to $5.67. Shares in the world’s second-largest rare earth producer have been chopping back and forth around the mid $5 level since the company’s quarterly results in April.

Aside from Metcash and Lynas, there was a strong tech theme among the top performing ASX 200 shares.

High profile players including WiseTech Global Ltd (ASX: WTC), Afterpay Ltd (ASX: APT), Appen Ltd (ASX: APX) and Xero Ltd (ASX: XRO) all managed to eke out gains between 0.90% and 1.43%.

The ASX 200 tech index has staged a resurgence in June, after sliding about 26.4% between 10 February and 13 May.

The post Which ASX 200 shares are standing tall after today’s volatile session? appeared first on The Motley Fool Australia.

More reading

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• Why Core Lithium, Life360, Marley Spoon, & Metcash are storming higher
• ASX 200 down 0.9%: Big four banks drop, Metcash charges higher

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. owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, WiseTech Global, and Xero. 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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