The Bellevue Gold Ltd (ASX: BGL) share price is on the charge on Wednesday morning.

In early trade, the gold explorer’s shares are up 5% to 87.5 cents.

This gain has reduced the Bellevue Gold share price year to date decline to 25%.

Why is the Bellevue Gold share price charging higher today?

Investors have been bidding the Bellevue Gold share price higher today following the release of an update on drilling at the Bellevue Gold Project in Western Australia.

According to the release, the company has reported a host of strong grade control drilling results which it believes demonstrates the continuity of the high-grade mineralisation at the project. It also feels that it reinforces the robustness of the resource within the planned open pit development.

The release notes that the grade control drilling program at the Tribune lode was conducted on a 10m x 10m grid and returned intersections grading up to 176.6g per tonne.

Bellevue Gold’s Managing Director, Steve Parsons, commented: “These results provide more firm evidence that not only is the Bellevue mineralisation exceptionally high grade, but it also exhibits strong continuity. Whilst expected, the continuity is highly valuable because it helps underpin the de-risking and the successful development of the project.”

What now?

Bellevue Gold advised that it now has two rigs exclusively drilling grade control at Tribune. One of these is dedicated to the open pit areas and the other to the early underground development areas.

At the same time, step-out and infill drilling is ongoing at both the Marceline and Deacon North lodes.

The company will continue to maintain its strategy of de-risking the project through underground development, underground drilling, and grade control drilling. It will also continue resource growth drilling from both surface and underground to seek to grow the global resources and reserves.

But as things stand, it currently estimates that it has a total mineral resource of 8.55Mt at a grade of 9.9g per tonne.

The post Here’s why the Bellevue Gold (ASX:BGL) share price is charging 5% higher appeared first on The Motley Fool Australia.

More reading

• Report: Apple planning upgrades, updates for Apple Watch
• RPMGlobal (ASX:RUL) share price dips despite ESG acquisition news
• Why is the Actinogen (ASX:ACW) share price up 414% in 3 months?
• Why the Cettire (ASX:CTT) share price is rebounding 9% today
• Why the AVITA (ASX:AVH) share price is jumping 8% today

James Mickleboro does not own any shares 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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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.

That cool smart device on your wrist will soon become even more attractive and useful, at least if you intend to acquire one of the latest model Apple (NASDAQ: AAPL) Watches when they arrive. According to a report published Monday by Bloomberg, citing “people with knowledge of the plans,” Apple is planning a host of updates and upgrades to its signature wearable tech product.

Later this year, those sources say, Apple will upgrade the device with a faster processor and an updated screen. The new model should also feature better connectivity, as it will utilize the same ultrawideband functionality that is a core feature of Apple’s recently introduced AirTags.

Based on the company’s naming convention, this next iteration of the device will likely be dubbed the Apple Watch Series 7.

In 2022, the tech giant will again update the Apple Watch, in addition to the comparatively budget Apple Watch SE. More intriguingly, the company plans a new wearable aimed at extreme sports athletes. 

Apparently, Apple would also like to integrate new services and features into future Apple Watches, among them blood sugar sensors and body temperature gauges.

Apple, typically a rather tight-lipped company, has not yet commented on the Bloomberg article.

While smartwatches and fitness trackers are dime-a-dozen technology these days, Apple aims to stand out from the crowd by packing added features into the Apple Watch. Bloomberg pointed out that blood sugar monitoring would make the device unique in its increasingly crowded field.

Apple’s stock did well on Monday, climbing 2.5% against an essentially flat performance from the S&P 500 index.

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

The post Report: Apple planning upgrades, updates for Apple Watch appeared first on The Motley Fool Australia.

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Eric Volkman owns shares of Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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.

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Shares in RPMGlobal Holdings Ltd (ASX: RUL) are down slightly this morning following news of an acquisition. The RPMGlobal share price is currently $1.68 — down 0.59% on yesterday’s close.

The planned purchase of environmental, social, and governance (ESG) service provider Nitro Solutions Pty Ltd will see RPMGlobal create a dedicated ESG mining division.

Let’s take a closer look at today’s news from the mining software solutions company.

New acquisition

After Nitro’s acquisition, RPMGlobal will bring all its ESG professionals into a single division headed by Nitro’s founder, Ngaire Tranter.

RPMGlobal plans to use Nitro’s knowledge of ESG to acquire or build software that will provide ESG services to mining companies.

Nitro currently provides the mining industry with ESG services. These services include environmental approvals, impact assessment, regulatory and legislation advice, environmental audits and economics, and compliance reporting.

Nitro is set to cost RPMGlobal around $1.68 million in cash and $160,000 worth of RPMGlobal shares. The purchase will also include a working capital adjustment of around $259,000 60 days after completion of the acquisition.

According to RPMGlobal, the cash components of the acquisition will come from its existing cash reserves. RPMGlobal will provide Nitro with 95,941 shares at the five-day average volume weighted closing price of $1.667 apiece.

The acquisition will close on 30 June, subject to conditions.

Commentary from management

RPMGlobal CEO and managing director Richard Mathews commented on the acquisition:

Whilst our mining advisory ESG professionals have been engaged to perform and manage numerous ESG mandates around the world, until now we have not had a dedicated division focused solely on ESG…

Ngaire and her team have an excellent reputation within the mining ESG market which gives us great confidence that we can build a world-class mining-focused ESG business leveraging an ESG team that knows and understands mining from the ground up.

RPMGlobal share price snapshot

So far, 2021 has been a good year for the RPMGlobal share price on the ASX.

Currently, the RPMGlobal share price is 32% higher than it was at the start of the year. It has also gained 62% since this time last year.

The company has a market capitalisation of around $387 million, with approximately 229 million shares outstanding.

The post RPMGlobal (ASX:RUL) share price dips despite ESG acquisition news appeared first on The Motley Fool Australia.

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

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The Actinogen Medical Ltd (ASX: ACW) share price has been an investor’s dream of late, rising 414% in the last 3 months and 552% over the last 12 months. With a raft of good news for the biotechnology company lately, we take a closer look.

Actinogen has a large addressable market, developing drugs for Alzheimer’s disease and the cognitive decline associated with other neurological and metabolic diseases. Its main focus is a drug called Xanamem, a molecule enzyme inhibitor that restrains excess cortisol production inside brain cells. Cortisol is otherwise known as the stress hormone.

So what’s there to like about Actinogen?

On 5 February, the United States Food and Drug Administration (FDA) granted Actinogen’s drug Xanamem a rare paediatric disease designation for the treatment of Fragile X syndrome. The approval is significant as it includes commercial, development and regulatory benefits, as well, it allows a priority review designed to increase overall speed to market.  

Fragile X syndrome is a rare and serious genetic disorder, typically diagnosed in children but with life-long symptoms. The announcement put the company front and centre on the world stage, and investors took note.

Recently, on 2 June, Actinogen announced the progression of its clinical development program to treat patients with Alzheimer’s Disease. The company received approval from the Bellberry Human Research Ethics Committee to commence the first part of the XanaMIA study, designed to study improvements in cognitive ability in older volunteers, and patients with Mild Cognitive Impairment, the first clinical-stage of Alzheimer’s Disease. 

A new CEO is taking the wheel

The appointment of the company’s new CEO, Dr Steven Gourlay, on 15 March, also appears to have had a positive effect on the Actinogen share price.

Gourlay’s CV is impressive; he was the founding chief medical officer at US-based Principia Biopharma Inc and was responsible for the supervision of multiple preclinical, first-in-human, Phase 2 and 3 clinical trial programs. The trials focused on four small molecules in orphan immunological diseases, multiple sclerosis and cancer. Dr Gourlay’s work supported a successful NASDAQ IPO of Principia Biopharma Inc. in 2018,  subsequently followed by an acquisition by Sanofi for US$3.7B in 2020.  

In addition, investors like to see insiders who increase their skin in the game. At the end of March, Actinogen director George Morstyn acquired 2,550,000 shares in the company at a value of almost $72,000. 

With proven management, trials progress globally and insiders willing to invest in the company, it seems the stars are aligning quite nicely. The Actinogen share price is trading at 16 cents at the time of writing.

The post Why is the Actinogen (ASX:ACW) share price up 414% in 3 months? appeared first on The Motley Fool Australia.

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• Report: Apple planning upgrades, updates for Apple Watch
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• Why the Cettire (ASX:CTT) share price is rebounding 9% today
• Why the AVITA (ASX:AVH) share price is jumping 8% today
• 2 reasons Netflix will win its merchandising gambit

Motley Fool contributor Frank Tzimas 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 Cettire Ltd (ASX: CTT) share price was out of form on Tuesday and crashed lower before being paused from trade.

The online luxury goods seller’s shares were down 21% to $1.98 before the pause.

Positively, the Cettire share price has returned to form on Wednesday. At the time of writing, it is up 9% to $2.16.

Why did the Cettire share price crash lower?

The decline in the Cettire share price appears to have been driven by concerns over its business model and the authenticity of the products it sells.

ASX Ltd (ASX: ASX) took notice of this decline and quizzed the company on it.

How did Cettire respond?

The share market operator asked Cettire why its shares might have crashed 21% on Tuesday.

It responded: “Cettire believes that the 11 June article in the Australian Financial Review may explain the recent trading in CTT securities, in particular today’s price movement.”

However, it refuted the article’s concerns and defended its business. The company explained: “Cettire has developed a unique and compelling no inventory business model, leveraging proprietary technology and processes, which collectively enable a high degree of automation and scalability.”

“Cettire has confidence in the sustainability of its supply chain and the authenticity of the products available on its platform. Cettire sources products from a large and diversified global network of suppliers, with what it believes is minimal concentration risk. Cettire’s supply network has continued to grow since IPO,” it added.

Management also confirmed that it doesn’t have any product suppliers based in China and is not intentionally blocking brand owners from seeing their products and prices on its platform.

It said: “Cettire’s platform is not currently accessible in certain markets as the Company prioritises its global expansion. It is incorrect to assert that this is to prevent brand owners, many of whom are multinational organisations, from seeing products and prices on its platform. The Company is not aware of any restrictions or restraints that would prevent it from operating in markets where it is not currently operating in the future.”

Guidance outperformance

Potentially giving the Cettire share price an extra boost today is management’s comments on its guidance.

It notes that its previous guidance was for sales revenue of at least $80 million. Whereas it is now expecting sales revenue for FY 2021 to be at least $85 million.

The Cettire share price is up 340% since the start of the year despite its recent blip.

The post Why the Cettire (ASX:CTT) share price is rebounding 9% today appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cettire Limited. The Motley Fool Australia has recommended Cettire Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The AVITA Medical Inc (ASX: AVH) share price is on the move on Wednesday.

At the time of writing, the regenerative medicine company’s shares are up 8% to $5.40.

Why is the AVITA share price jumping?

Investors have been buying the company’s shares this morning following the release of its preliminary fourth quarter results.

According to the release, quarter to date, AVITA has realised total revenue in excess of its fourth quarter guidance range of US$8.2 million to US$8.6 million.

In light of this and based on the strength of both RECELL commercial revenue and BARDA related revenue, management is raising its guidance to be in the range of US$9.5 million to US$9.7 million.

This comprises US$6 million to US$6.2 million of RECELL commercial revenue and US$3.5 million of RECELL revenue associated with BARDA. The latter is the U.S. Department of Health and Human Services’ Biomedical Advanced Research and Development Authority.

The revised guidance for RECELL commercial revenue reflects a 55% to 60% increase over the prior year period and 30% to 34% increase over the third quarter of 2021.

The RECELL system is used to prepare spray-on skin cells using a small amount of a patient’s own skin. This provides a new way to treat severe burns, while significantly reducing the amount of donor skin required.

Management commentary

AVITA Medical’s Chief Executive Officer, Dr. Mike Perry, revealed that demand has been increasing after the US returned to relatively normal following the rollout of vaccines.

He commented: “As people begin to return to normal activities after the confines of the COVID-19 pandemic, we have seen an increase in burn accidents requiring treatment with the RECELL System in burn centers across the country.”

The AVITA share price is now up 7% since the start of the year.

The post Why the AVITA (ASX:AVH) share price is jumping 8% today appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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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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.

It’s easy to be skeptical about last week’s launch of Netflix‘s (NASDAQ: NFLX) online merch store. The new platform — available via Netflix.shop — is limited to selling T-shirts and hoodies themed to its Yasuke and Eden anime. It’s just designer streetwear right now, and it’s not cheap. T-shirts range in price from $30 to $45. Hypland’s Yasuke hoodie is going to set you back a beefy $82, or nearly half a year of a Netflix subscription. 

However, you may want to think twice before you dismiss the leading premium video service’s chances here. There are some good reasons to bet on Netflix’s latest move. Let’s check them out. 

1. Netflix is just getting started

This is obviously just the opening act of Netflix.shop. You can get third-party — admittedly unlicensed — shirts for a lot less elsewhere. It will be harder to duplicate the Yasuke and Eden action figures that Netflix is promising will roll out later this month. 

Limited-edition apparel and decor inspired by Lupin — with the second season just dropping into your Netflix queue — will hit the digital storefront this month. Last week’s launch also teased upcoming exclusive Stranger Things and The Witcher product lines. Reports also have Netflix working on a Bridgerton clothing line alongside live events. And Fans of La Casa de Papel — aka Money Heist — should be on the lookout for proprietary merch. 

Don’t judge Netflix’s new foray into the e-tail of physical merch based on what you see on today’s landing page. The store will get bigger, and you’ll get there once they roll around to paddling a new revenue stream based on one of your favorite shows.

2. Never underestimate the Netflix audience

It’s not smart to bet against Netflix. It doesn’t make a move unless it has thoroughly thought things through. How many times were we asking Netflix to rent video games by mail during its red envelope days? How many analysts have wondered about the money that Netflix could rake in it if sold ads on top of its streams in this era of rising connected-TV rates?

Netflix is way smarter than me. It may also be smarter than you when it comes to how it runs its business. Bloomberg is reporting that Netflix is in the process of hiring heads of consumer products, podcasts, and video game businesses that don’t currently exist. If they see the light of day — as we’re seeing with consumer product — it’s because the company knows what it’s doing. 

Netflix had 207.6 million subscribers at the end of March, and we’re talking about entire families here. The reach and breadth is larger than the account base. It’s a captive audience spending hours a day getting lost in Netflix’s growing digital catalog of content. 

Folks trust Netflix to get it right. They stick around, even if it means prices keep moving higher. Netflix has increased its monthly rates in the U.S. five times over the last seven years, and the sub count is always higher by the time the next hike rolls around. 

Netflix is a media stock. It’s not a surprise that traditional media behemoths are generating significant sums of incremental revenue through vibrant consumer product sales. Why wouldn’t Netflix — a company that’s been collecting gobs of data on your viewing habits for years — be as good at nailing what you’ll want to buy next as it is at knowing what you want to view next? We may never see a theme park, though I would be the first in line through the turnstiles of Netflixlandia to ride the Ozark roller coaster or experience the Stranger Things dark ride. Selling unique merch to an engaged audience will be a lot easier, and unlike that Ozark coaster there are no height requirements or seat restraints to keep you from making the most of the consumer products ride.  

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

The post 2 reasons Netflix will win its merchandising gambit appeared first on The Motley Fool Australia.

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Rick Munarriz owns shares of Netflix. 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.

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The Bank of Queensland Limited (ASX: BOQ) share price was a solid performer on Tuesday.

The regional bank’s shares rose 1.5% to $8.90 following the release of a positive announcement.

This means the Bank of Queensland share price is now up 18% since the start of the year.

Why did the Bank of Queensland share price push higher?

Investors were buying the bank’s shares after it announced that it expects to reduce its collective provision by $75 million.

Management advised that this is being driven primarily by Australia’s improved economic outlook, leading to improvements in data quality relating to collateral.

The bank also advised that it continues to monitor the ongoing economic impacts resulting from COVID-19 and will assess its collective provision accordingly. This could mean further releases down the line if Australia’s economy continues its recovery.

Is it too late to invest?

One leading broker that still sees a lot of value in the Bank of Queensland share price is Goldman Sachs.

This morning the broker retained its buy rating and lifted its price target slightly to $9.85.

Based on the current Bank of Queensland share price, this implies potential upside of 10.7% over the next 12 months. And if you include dividends, this stretches to approximately 15%.

What did the broker say?

Goldman has updated its estimates to reflect the collective provision release.

It explained: “We upgrade our FY21/22E/FY23E cash EPS by +13.1%/-0.7%/+2.5%, driven by i) the A$75 mn collective provision release resulting in lower BDDs, and ii) BOQ’s better volume performance, particularly in housing.”

“We remain Buy rated on BOQ reflecting: i) continued improvements in volume momentum, particularly in housing, ii) its funding mix, which will be positively leveraged to the current funding environment, iii) potential upside risk to BOQ’s ‘broadly flat’ 2H21E sequential NIM guidance, and iv) our revised TP offering 17% [now 15%] total shareholder return over the next 12-months,” it concluded.

The post Top broker tips Bank of Queensland (ASX:BOQ) share price to charge higher appeared first on The Motley Fool Australia.

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James Mickleboro does not own any shares 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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Wilson Asset Management is a popular provider of ASX-listed investment companies in Australia.

WAM Capital Limited (ASX: WAM) was its original product, then came others like WAM Leaders Ltd (ASX: WLE) and WAM Research Limited (ASX: WAX).

Unlike much of the sector, shares for Wilson’s funds are often trading at a premium to the net tangible asset (NTA) value.

So when its fund managers speak, investors listen.

In a Wilson video last week, four of its analysts sat together for a quick-fire session where they had to call buy, sell or hold for a whole bunch of ASX shares.

Here are the 6 of the stocks they declared as “buy”:

MA Financial Group Ltd (ASX: MAF)

The financial company formerly known as Moelis is a “strong buy” for equity analyst Sam Koch.

“The next Macquarie Bank!” he said.

“They can grow earnings in three ways: funds management, corporate advisory business and the new lending business… The market’s not really appreciating the earnings growth in that new lending side of things.”

MA Financial shares are up 21% this year, closing Tuesday at $5.57.

“They’ve upgraded guidance already this year, and we see further tailwinds for that business.”

Sealink Travel Group Ltd (ASX: SLK)

Equity analyst Shaun Weick said his team was bullish on Sealink.

“The pent-up demand, we think, in the tourism industry is significant… Their Transit Systems bus business, as well, has proved to be a great acquisition.”

Sealink shares are already up 39.7% this year, to close Tuesday at $9.43.

“We think the catalyst from here is really concentrated around additional contract wins — so that one’s a ‘buy’ for us.”

Genworth Mortgage Insurance Australia Ltd (ASX: GMA)

According to Weick, Genworth is the biggest player in the lenders’ mortgage insurance market in Australia.

“It’s a buy. It’s experiencing very strong tailwinds as a result of the growth in the housing market,” he said.

“It provides strong leverage to rebounding interest rates for earnings.”

Shares of Genworth are up 13.7% year-to-date, trading at $2.82 when the market closed Tuesday.

Weick said the company was in a similar position to the big banks, with excess capital built up during the COVID-19 crisis last year.

“You’re going to see significant capital reserve releases.”

Boral Limited (ASX: BLD)

Equity analyst Anna Milne rated the construction materials business as a buy.

“Management is highly incentivised to pull off the transformation program that is ongoing,” she said.

“There is a buyback in place and a lot of catalysts on the horizon in terms of divestments.”

Boral stocks have risen more than 36% this year and closed at $6.79 on Tuesday. They were as low as $3.01 in the depths of the COVID-19 market crash in March last year.

Dusk Group Ltd (ASX: DSK)

Koch rated the candle and diffuser retailer as a “strong buy”.

“We really like it here because we see multi years of earnings growth ahead of it.”

Dusk only listed on the ASX in November, and since then has seen its share price shoot up more than 111%. The stock closed Tuesday at $3.64.

“They’re a hit too with grandmas,” said Weick.

Beston Global Food Company Ltd (ASX: BFC)

Beston stocks have gone nowhere in recent years. They closed at 12 cents on Tuesday, which is the same level as it was back in early 2019.

“A bit of a controversial one. But this is a multi-year turnaround strategy, which is coming to fruition now,” said Weick.

“We think the business is really well-positioned to benefit from the lactoferrin strategy, which we think medium-term can drive significant earnings upside.”

The post Buy these 6 ASX shares, say Wilson analysts appeared first on The Motley Fool Australia.

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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.

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Despite the cool-off this year, many ASX growth shares still have high valuations.

For example, software maker Xero Limited (ASX: XRO) is trading at a price-to-earnings ratio of more than 1,000. That’s despite shaving 7.28% off its share price this year.

Shares for online retailer Cettire Ltd (ASX: CTT) are going for more than 200 times earnings, even though they suffered a 20% crash before a trading halt on Tuesday.

As value stocks have raged upwards, many experts have said the dip in growth shares is a golden buying opportunity. But with so many businesses still expensive, which ones do they mean?

Wilson Asset Management portfolio manager Tobias Yao has an idea.

Who wants 11 times PE ratio for a growth share?

Yao declared last week that he had found a business with tremendous growth potential, whose shares are trading at a value price.

“Lynch Group Holdings Ltd (ASX: LGL) is a recent IPO [initial public offering], but it’s actually a business that’s been around for decades,” he told a Wilson video.

“It is the number 1 floral supplier in Australia.”

Lynch Group debuted in April as a public company with already a rich 106-year history under its belt as a private business. The Lynch Group share price went for $3.60 upon listing on the ASX and was trading at $3.70 at market close on Tuesday afternoon. 

Yao reckons the market is under-recognising the medium-term growth drivers for the business, which also sells flowers in the Chinese market.

“We think there will be earnings upgrades and perhaps a couple of inorganic M&A opportunities over time.”

But the best thing right now, according to Yao, is the appealing price.

“It’s on 11 times PE,” he said.

“We think this is a growth company priced [on] a value multiple.”

Already beating prospectus forecasts

Earlier this month, the western Sydney-headquartered company released a positive performance upgrade for the current financial year.

“For the upcoming period ending 27 June 2021, Lynch anticipates reporting a bumper result. This is expected to be well up on the earnings guidance outlined in its prospectus, released in early April on the ASX,” reported The Motley Fool’s Aaron Teboneras.

“As such, net profit after tax and amortisation (NPATA) is forecast to come in between $31 million and $32 million. Originally, Lynch predicted NPATA to stand at $28.7 million.”

The post Here’s an ASX growth share priced like a value stock: analyst appeared first on The Motley Fool Australia.

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Tony Yoo owns shares of Cettire Limited and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cettire Limited and Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool Australia has recommended Cettire 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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