The Sezzle Inc (ASX: SZL) share price is out of form and sinking lower on Thursday.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are down over 5% to $8.50.

Why is the Sezzle share price sinking today?

The weakness in the Sezzle share price on Thursday appears to have been driven by a broad selloff of tech shares.

It isn’t just Sezzle that is under pressure. Rival BNPL shares Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are also recording sizeable declines of their own today.

This has ultimately led to the S&P/ASX All Technology Index (ASX: XTX) tumbling 2.8% lower today.

Weakness on Wall Street’s tech-focused Nasdaq index and the rotation from growth to value options appear to be responsible for this.

Is this a buying opportunity?

One broker that appears to see a lot of value in the Sezzle share price is Ord Minnett.

Earlier this week, the broker responded very positively to Sezzle’s recent first quarter update.

According to the note, the broker has retained its buy rating and lifted its price target on the company’s shares to $11.90.

Based on the current Sezzle share price, this implies potential upside of 40% over the next 12 months.

What did the broker say?

Ord Minnett was impressed with Sezzle’s first quarter update, noting that it delivered underlying merchant sales (UMS) growth ahead of its expectations.

In addition to this, the company’s repeat usage metric of 90.7% was better than its analysts were forecasting.

Another reason the broker is positive on the company is its valuation. It notes that the Sezzle share price is attractively priced in comparison to rival Afterpay. It also sees positives in the company’s pursuit of a US IPO and listing.

All in all, Ord Minnett appears to believe that it could be worth taking a closer look at Sezzle’s shares following the recent weakness. Particularly if you’re looking for exposure to the rapidly growing BNPL market.

More reading

• Why the Afterpay (ASX:APT) share price is sliding 5%
• ASX 200 tech shares under pressure after Nasdaq selloff
• Why Dubber, Mesoblast, PointsBet, & Sezzle shares are storming higher
• Sezzle (ASX:SZL) share price shoots higher on Q1 update and US listing plans
• ASX 200 rises, Woolworths falls, Fortescue was flat

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 ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is closing in on its pre-COVID record high of 7,160, currently sitting at 7,055.10.

These 3 blue chip ASX 200 shares have followed suit, recently breaking above pre-COVID highs and, in some cases, eyeing multi-year highs. Let’s take a look.

ASX 200 shares breaking out into 52-week highs 

Commonwealth Bank of Australia (ASX: CBA)

The Commonwealth Bank share price climbed 2.5% on Wednesday to $92.72, a 6-year high for the ASX 200 heavyweight, and has topped that again today, currently swapping hands for $92.76 a share.

While there has been no price-sensitive news out of the bank recently, its big four stablemate Australia and New Zealand Banking Grp Ltd (ASX: ANZ) recently released a positive set of half-year results. ANZ pointed to a number of factors for its strong earnings that also impact the broader banking sector, including an improving economic outlook.

The surging Australian property market has been as a key driver for the CBA share price in recent months. With the property market showing no signs of slowing down, evidenced by CoreLogic’s monthly indices, there’s the possibility that Commonwealth Bank could continue to benefit from increased lending activity. 

Commonwealth Bank is expected to report its March quarter trading update later next week. 

South 32 Ltd (ASX: S32) 

The South32 share price has just managed to tip over its pre-COVID highs of $2.94. The diversified mining company has experienced a strong uplift across its commodities, including alumina, aluminum, coal, manganese, nickel, silver, lead and zinc. South32 shares are up another 1.80% at the time of writing to $3.01.  

After releasing its March quarter production update, big brokers including UBS, Credit Suisse, Morgan Stanley, Ord Minnett, Macquarie and Citi were all buy-rated on South32 shares with an average target price of $3.26.  

Telstra Corporation Ltd (ASX: TLS) 

The Telstra share price has been on a bullish run since its lows of $2.70 in November 2020. There are several drivers behind the resurgence of Telstra shares, including the return of market-leading dividends, with its board reaffirming a 16 cents per share dividend for 2021 back in October last year. 

Telstra previously announced its intentions on a new proposed legal restructure by December this year. As part of the plan, the company will establish a new holding company and separate subsidiaries – InfraCo Fixed, InfraCo Towers, ServeCo and Telstra International. The restructure is generally viewed as a potential near-term catalyst that could unlock significant value for Telstra shareholders. 

Telstra shares closed at a 52-week high on Wednesday at $3.55. They’ve since dropped back in today’s trade, currently siting at $3.48 per share.

More reading

• ANZ Bank (ASX:ANZ) share price hit by broker downgrade post results
• Is the ANZ (ASX:ANZ) share price a buy following its half year results?
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, ANZ drops, Nearmap jumps
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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 CSL Limited (ASX: CSL) share price is slightly lower today despite announcing plans to buy rights for novel late-stage gene therapy candidate.

In late afternoon trade, the global biotech’s shares are swapping hands for $276.06, down 0.5%.

What did CSL announce?

Investors appear unfazed by the company’s latest release, sending its shares in negative territory.

According to its release, CSL announced it will push forward with its commercialisation and license agreement with Uniqure NV (NASDAQ: QURE).

Founded in 1998, uniQure is a late-stage gene therapy company that is developing etranacogene dezaparvovec (AMT-061) to treat haemophilia B.

The deal, announced last June will give CSL rights to commercialise and sell AMT-061 if approved.

CSL stated that this could be one of the first gene therapies to provide potentially long-term benefits to patients with haemophilia B.

One dose of AMT-061 has shown to increase Factor IX (FIX) plasma levels to a degree that reduces or eliminates the tendency for bleeding for many years. FIX is the blood-clotting protein lacking in people with haemophilia B.

Should AMT-061’s trial be successful, appropriate candidate haemophilia B patients will be able to have a one-time treatment to restore FIX activity to functional levels capable of eliminating the need for frequent and ongoing replacement therapies.

What’s in the deal?

Under the terms of the deal, uniQure will receive an upfront cash payment of US$450 million next week. This will be followed by regulatory and commercial sales milestone payments and royalties.

CSL stated that uniQure will conclude its Phase 3 HOPE-B trial and commence manufacturing for an initial commercial supply. In turn, CSL Behring will look after regulatory submissions and commercialisation.

CSL CEO and managing director, Paul Perreault commented:

We are continuing to build on our legacy of delivering lifesaving innovations in haematology with today’s news. This agreement enables us to take forward a gene therapy that, if approved, has the potential to transform the lives of haemophilia B patients.

Etranacogene dezaparvovec has the potential to be the first-ever gene therapy approved for haemophilia B and help CSL Behring deliver on our ongoing commitment to improving the lives of those living with haemophilia B.

How has the CSL share price performed lately?

Since early March, CSL shares have begun their accent to levels achieved in mid-January. Year-to-date performance is marginally lower at around 2%, however, it seems the worst is behind the company. Just yesterday, CSL released its presentation for the upcoming Macquarie Group Ltd (ASX: MQG) conference, citing an update on plasma collections.

CSL has a market capitalisation of around $126 billion, with approximately 455.1 million shares on issue.

More reading

• Top brokers name 3 ASX shares to buy today
• Is the CSL (ASX:CSL) share price in the buy zone after its update?
• 2 fantastic ASX 50 shares rated as buys
• Why the CSL (ASX:CSL) share price is seesawing over the past month
• Pssst, I’m a value investor who makes money from growth shares: fundie

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Venture Minerals Limited (ASX: VMS) shares are sliding lower today after the company released its presentation from the Sydney Resources Roundup conference. At the time of writing, the Venture Minerals share price is trading 6% lower at 11.75 cents.

In earlier trade, the company’s shares were actually up by 8% before giving back those gains and then some.

As its name suggests, Venture Minerals is focused on the exploration and development of mineral resources. It’s currently exploring in Western Australia for copper- lead-zinc at the Thor Prospect, nickel-copper at the Odin Prospect, and gold-nickel-copper-cobalt at the Caesar Project, among others.

Presentation highlights

The Venture Minerals share price is in the red today after the company outlined its current progress on multiple projects. Its Riley iron ore processing plant has now been built on schedule and within budget. The first shipment of ore out of the plant is expected in the second quarter of this year. The company is hoping the quick turnaround will allow it to capitalise on record-high iron ore prices.

Venture Minerals has also commenced an electromagnetic survey program on what it calls a ‘Julimar lookalike’ drilling target at its South West nickel and copper project.

Meanwhile, drilling has confirmed up to 7% zinc deposits from the company’s first assays at the Orcus prospect and, at Golden Grove North, follow-up drilling has commenced.

According to Venture Minerals, the trench results at Kulin also have confirmed a “significant gold system” but the company is still awaiting results from its maiden drill program. Judging by today’s Venture Minerals share price action, it seems some investors have decided not to wait around for these results. 

Renewable aspirations

In today’s presentation, there was also some news on the renewable energy front. Venture Minerals reported it has advanced its Mount Lindsay tin and tungsten project, which “provides near-term exposure” to electric vehicle (EV) market demand for rare earth metal and the critical minerals markets. Tungsten is considered a critical mineral by the Australian Government.

According to the company’s presentation, “EV and critical minerals demand drives re-assessment of the high-grade tin and tungsten resource base at Mount Lindsay.”

Venture also added that it is “uniquely positioned with Mount Lindsay being one of the largest undeveloped tin projects in the world, containing in excess of 80,000 tonnes of tin metal. Mount Lindsay also hosts, within the same mineralised body, a globally significant tungsten resource containing 3.2 million metric tonne units of tungsten.”

Venture Minerals share price snapshot

Despite today’s falls, the Venture Minerals share price has boomed in the past month, gaining more than 95%. It’s also up by 135% year to date and 488% over the past year. Based on the current valuation, the company has market capitalisation of $157 million.

More reading

• Chalice Mining (ASX:CHM) share price surges to new record high

Motley Fool contributor Lucas Radbourne-Pugh 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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Tech, mining and the big four banks typically dominate the spotlight for most traded ASX 200 shares. 

But amongst the S&P/ASX 200 Index (ASX: XJO), there’s an overlooked sector that has been quietly outperforming the broader market. 

Say hello to insurance. 

Brokers think insurers can outperform the ASX 200 

Back in March, brokers delivered a flurry of buy recommendations towards insurers. This was on the basis that the insurance market was moving through a “hard cycle”, where premiums increase and the capacity for most types of insurance decreases.

Multiple insurers, including Insurance Australia Group Ltd (ASX: IAG) and Suncorp Group Ltd (ASX: SUN), were upgraded with the view that premiums will increase, driving higher margins and revenues. 

A number of insurers continue to meet with bullish broker notes, including: 

AUB Group Ltd (ASX: AUB)

AUB is the largest equity-based insurance network in Australia and New Zealand. Macquarie comments that the company’s March quarter results were strong with improvements in both revenue and margins. The broker highlighted the 5.9% increase in premium rates, which were at the top of the company’s estimates and well ahead of Macquarie forecasts. 

An outperform rating was retained, with the target price increasing from $20.40 to $23.13. AUB shares are up more than 30% year-to-date into record territory. Its shares are currently fetching $20.63. 

Steadfast Group Ltd (ASX: SDF)

Steadfast is also a major general insurance broker network and the largest group of insurance underwriting agencies in Australia. The company recently upgraded its FY21 guidance, increasing FY21 underlying NPAT to $127 million – $132 million from its previous guidance of $120 million – $127 million. 

Macquarie observes that stronger operating conditions have driven the guidance upgrade. The broker retained an outperform rating while edging its target price higher from $4.60 to $4.70. Steadfast shares have had a relatively quiet year-to-date performance, up a steady 4%. Its shares are currently trading at $4.17. 

QBE Insurance Group Ltd (ASX: QBE)

UBS observes that QBE’s first-quarter performance shows an average premium increase of 8.9%, slightly lower than 2020 figures but within the broker’s expectations.

Despite a slower increase in premiums, the broker observes that volume growth appears ahead of expectations. A buy rating was retained with an increase in target price from $10.25 to $11.50.

It’s been a volatile 12 months for the QBE share price, with its shares losing 50% in value during the initial COVID-19 sell-off. From a year-to-date perspective, its shares have pushed 30% higher to $10.81 but are still another 40% from pre-COVID highs. 

More reading

• 7 ASX 200 shares with emission reduction strategies
• QBE Insurance (ASX:QBE) set to face AGM shareholder revolt
• Brokers pick these ASX 200 shares to outperform the market

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Steadfast 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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There are a handful of S&P/ASX 200 Index (ASX: XJO) shares that could be reliable and offer investors good income.

It’s particularly difficult to find good sources of income at the moment because of how low the official Reserve Bank of Australia (RBA) interest rate is and how high share prices of many businesses have gone.

These two could be worth looking at for income:

Centuria Industrial REIT (ASX: CIP)

This is one of the larger real estate investment trusts (REIT) on the ASX. It has a market capitalisation of almost $2 billion according to the ASX.

It owns a portfolio of quality industrial assets that are located in important city locations throughout Australia, with a strong and diverse tenant base.

Centuria Industrial REIT is currently rated as a buy by a few different brokers, including Morgan Stanley which has a price target of $3.77 on the ASX 200 share.

It’s regularly expanding its portfolio with acquisitions. For example, it recently announced an eight-hectare land acquisition in Dandenong for $26.3 million and has entered into a development management agreement (DMA) to fund six high-quality industrial facilities. Centuria described this as a rare opportunity.

That deal increased its portfolio to 63 assets and a portfolio value (on completion) to $2.7 billion.

In its quarterly update to 31 March 2021, Centuria Industrial REIT said that it saw a $196 million valuation uplift, or 8.3% on a like for like basis from prior book values. At the time, it said that its occupancy rate had increased to 98.8% with a 9.7 year weighted average lease expiry.

The distribution is expected to be 17 cents per unit, which equates to a yield of 4.9%. Management said it’s well positioned to keep delivering secure income and capital growth for investors.

Magellan Financial Group Ltd (ASX: MFG)

Magellan is an ASX 200 share that aims to pay a high dividend to investors.

Its dividend policy is to pay interim and final dividends based on 90% to 95% of the profit of funds management business excluding crystallised performance fees. With the performance fees, it aims to pay 90% to 95% of net crystallised performance fees after tax as a dividend.

The performance fees can be variable, but the core management earnings continue to remain strong and growing, which is what funds the main part of Magellan’s annual dividend.

The FY21 half-year result saw profit before tax and performance fees of the funds management business saw 8% growth to $256.2 million. Diluted earnings per share (EPS) grew 2% to 110.6 cents. This gave the board the room to grow the interim dividend by 5% to 97.1 cents.

The underlying management profit could continue to rise with the total funds under management (FUM) rising by around $5.4 billion to $106 billion at the end of March 2021.

Magellan also has plans to grow its profit with other initiatives such as a retirement product and investments into operating businesses like Barrenjoey, Guzman y Gomez and Finclear.

Morgans rates the ASX 200 share as a buy with a price target of $58.26. The broker expects the fund manager to pay a dividend of $2.06 per share in FY21, amounting to a partially franked dividend yield of 4.4%.

More reading

• Top brokers name 3 ASX shares to sell today
• ASX 200 down 0.35%; NAB half year results, Nearmap crashes on legal threat
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, ANZ drops, Nearmap jumps
• How this new forecast could put ASX copper shares under pressure

Motley Fool contributor Tristan Harrison owns shares of Magellan Financial Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It has been a bitterly disappointing day of trade for the Appen Ltd (ASX: APX) share price.

At the time of writing, the artificial intelligence (AI) data services company’s shares are down 21% to $11.67.

This means the Appen share price has now lost over half of its value since the start of the year.

Why is the Appen share price crashing 21% lower?

Investors have been heading to the exits in their droves on Thursday after Appen released a presentation ahead of its appearance at the Macquarie Group Ltd (ASX: MQG) conference.

While there were many positives in the presentation, judging by the Appen share price performance, investors have chosen to focus entirely on the negatives.

What were the negatives?

Comments by Appen’s CEO, Mark Brayan, relating to the uncertainty and impacts of an advertising downturn and regulatory factors on customers’ spending and investment priorities appear to have spooked investors.

Mr Brayan revealed that COVID-19 has led to changes in the behaviour of many of its customers.

He explained: “COVID interrupted many businesses last year and that in turn reduced their digital ad spend for a period. This impacted our major customers’ sources of revenue, and although digital ad spend has bounced back nicely, that experience is driving them to invest in new AI products that are less reliant on advertising.”

In addition to this, the chief executive revealed that data privacy and anti-trust concerns are impacting developments, possibly with unfavourable consequences for Appen.

“Our customers are developing new AI products in response to COVID’s impact on online advertising last year and regulatory pressures such as anti-trust and data privacy. This dictates the data they need for product development and impacts their engineering resource allocations and the volumes and types of data they need from us.”

“As stated before, machine learning is an iterative process, and our customers are switching resources between development projects as they pursue new break-out products. This in turn has impacted a handful of our larger programs,” Mr Brayan said.

However, this isn’t new information. In response to an ASX query this afternoon, Appen reminded the market the messaging in the address today is consistent with what was said with its FY 2020 results.

What about the positives?

You may not believe it when looking at the Appen share price, but there were positives in the address.

The main one being that there have been no systemic changes to demand for relevance data. This is a major positive as the Relevance segment is easily Appen’s most important segment, accounting for upwards of 90% of revenue.

Management also revealed that its industry-leading position has been maintained and pricing remains solid.

Mr Brayan said: “The competitive environment for relevance is unchanged with us and Lionbridge AI the key providers. We don’t see unusual pressure on pricing. Our customers want a good deal and they negotiate well, but they will pay for quality and reliability and our reputation is strong in these areas.”

Nor does the company see any fundamental changes in the way that AI is developed.

“We don’t see meaningful changes in AI development techniques. AI models have and will continue to rely on a range of techniques to operate properly in the real world and hence high-quality labelled training data will continue to be a requirement for AI development. Unsupervised and self-supervised machine learning techniques are complementary to other techniques including supervised learning and using pre-trained models via transfer learning,” the chief executive explained.

Where next for the Appen share price?

The Appen share price is now down 54% since the start of the year. This means its shares are trading at 17x estimated FY 2022 earnings based on a recent Macquarie note.

Though, the broker has yet to respond to this presentation and it isn’t inconceivable that downgrades to estimates will be made.

In light of this, investors may want to keep their eyes peeled for broker updates in the coming days.

More reading

• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking
• ASX 200 down 0.35%; NAB half year results, Nearmap crashes on legal threat
• Why the Appen (ASX:APX) share price is down 6% to a multi-year low
• Why Airtasker, Appen, Downer, & Kogan shares are charging higher
• Why the Appen (ASX:APX) share price is racing 5% higher today

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 Appen 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.

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The Maggie Beer Holdings Ltd (ASX: MBH) share price was up as much as 9% today before partially retreating. This comes after the company announced, “strong double-digit growth in FY21” and a new ranging deal with Woolworths Group Ltd (ASX: WOW).

At the time of writing, shares in the food and beverage company are trading for 34.5 cents each – up 4.55%. For comparison, the All Ordinaries Index (ASX: XAO) is currently trading 0.68% lower.

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

Why the Maggie Beer share price is on the move

Business update

In a statement to the ASX, Maggie Beer Holdings said net sales, compared to last year, are up by double digits. Its “core business and e-commerce” platforms are up a combined 29% in April 2021, compared to the year prior.

Easing COVID-19 restrictions in Victoria have seen sales in its Saint David Dairy range “restored to pre-COVID levels”. Net sales YTD for the products are up 9% on this time last year. Paris Creek Farms sales are up 5% on the previous year.

Maggie Beer says sales for Paris Creek have been impacted by a “realignment” of its private-label business. The company claims this has resulted in reduced sales but greater profits. As well, the company says the product is being ranged more widely in Victoria and South Australia. Maggie Beer Holdings will now conduct a “strategic review” of Paris Creek to “unlock shareholder value.”

Sales in Hampers and Gifts Australia (HGA), which the company acquired in March, are up 96% on April last year. Maggie Beer says it will fully integrate the business into the fold by the end of May.

News of the HGA purchase sent the Maggie Beer share price rocketing 18%.

New product ranging

Also in the statement, Maggie Beer Holdings reported it will “launch [a] new range of Finishing Sauces and Bone Broths in October 2021…” in at least 75% of Woolworths supermarkets. The company hopes the launch of these products will aid in the reduction of seasonal variations in its sales.

Independent stores will also be selling the new products from October.

The new range of products will comprise four different sauces and two bone broths.

Management commentary

Chantale Millard, CEO of Maggie Beer Holdings, said:

We are very pleased with the continued growth in the MBH Group, in particular the strong growth of the Maggie Beer Products business.

It is also great to see Hampers & Gifts Australia continuing to demonstrate excellent growth over FY20, including over the sharp uplift in sales experienced by the e-commerce industry in April 2020 from the Covid-19 pandemic lockdown. With the recent successful completion of the capital raise to purchase HGA and the launch of the two new products lines for Maggie Beer Products later this year, we are expecting our strong growth to continue into FY22 and beyond, as the MBH Group cements its position as the premium food and beverage brand in the entertaining and e-commerce space.

Maggie Beer share price snapshot

Over the last 12 months, the Maggie Beer share price has increased by 163.8%. It is, however, down by around 30% since the beginning of this year.

Given its current valuation, Maggie Beer Holdings has a market capitalisation of approximately $97 million.

More reading

• Is this the space-aged future of Australian agriculture?
• Is the Afterpay (ASX:APT) share price a buy at $100?
• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking
• Rhythm (ASX:RHY) share price surges 10% on ColoSTAT results
• Is the Redbubble (ASX:RBL) share price an obvious buy?

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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 impact of climate change on Australian agriculture could lessen in the future but the industry faces mass digital disruption.

That’s the forecast from AgriFutures’ Future Forces report, which considers what challenges Australia’s agriculture sector might face over the next 10 years.

In one scenario, the food sector may have to tackle viral disinformation campaigns and increasing digitalisation.

In another, farmers in the future might look to vertical farming, regenerative agriculture and renewable energies to mitigate the challenges climate change places on agriculture in Australia.

So, what might investors in ASX agriculture shares have to look forward to in the future? Let’s take a look.

What does the future of Australian agriculture look like?

Technological advances

The AgriFutures report examined multiple scenarios that could be a possible future for Australia’s agricultural industry.

One is that climate change will reach a peak and Australian agriculture will be forced to adapt or leave.

Vertical farming, automation, renewable energy, and carbon sequestration all come into play in this idea.

With such adaptation, comes a diversification of farmers’ income streams. Farmers might turn to the sale of excess renewable energy and carbon credits to fund their livelihoods.

The report also discussed the possibility of automated fishing operations.

 These could involve satellites with microchips planted into fish to track catches. They could also enable consumers to purchase wild fish before or during the catch, skipping the middleman entirely.

Both scenarios will see major disruptions to the Australian agriculture scene.

As such, we might begin to see some interesting announcements come from ASX-listed agriculture companies in the near future.

Digital interconnectedness

The report also discusses the likely power of disinformation in the future of Australian agriculture.

As brands become more active on social media, digital hit campaigns on companies could be the new norm.

Consumers might soon be able to trace their food from paddock to plate, right back to the genetic lines of their hamburgers.

While this sounds like exciting stuff, the report talks of the possibility of consumers investing in misinformation. Such misinformation could – for instance – claim that certain genetic lines of cattle are better for Australian’s diets and lifestyles.

This misinformation could mean ASX-listed agriculture and food companies need heavy media and marketing teams to tackle disinformation created by consumers and market competitors.

Further, future consumers may be able to play a more active role in the making of food. An example could be the potential to order products to be custom grown or produced.

More reading

• Is the Afterpay (ASX:APT) share price a buy at $100?
• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking
• Rhythm (ASX:RHY) share price surges 10% on ColoSTAT results
• Is the Redbubble (ASX:RBL) share price an obvious buy?
• Top brokers name 3 ASX shares to sell today

Motley Fool contributor Brooke Cooper 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 Afterpay Ltd (ASX: APT) share price is having an absolute clanger today. Afterpay shares are down a nasty 7.52% at the time of writing to below $100 a share at $98.87. That’s after it opened at $105.10 this morning.

That’s the lowest levels Afterpay has traded at since early December last year, when the buy now, pay later (BNPL) pioneer soared past $100 for the first time. It’s been a rough couple of months for Afterpay too. Back in February, the company hit a new record high of $160.05 a share after shooting more than 33% from the start of the year to 10 February. But it’s been down, down for the company ever since. In fact, on today’s pricing, Afterpay is now close to 40% off of those highs. And down more than 16% year to date. In saying that, Afterpay is still up around 150% over the past 12 months, so longer-term investors don’t have too much to complain about. Incidentally, Afterapy’s rival Zip Co Ltd (AX: Z1P) is also feeling that pain today, with a share price drop of 4.97% to $7.27.

So why is Afterpay getting hammered? The Fool covered some of the possible reasons earlier today. These include the company’s recent third-quarter trading update As well as the recent performance of the US-listed BNPL company, Affirm Holdings Inc (NASDAQ: AFRM). The Affirm share price was sold off last night (our time), losing more than 7% of its value.

So, now the more important question: Are Afterpay shares a buy today?

Are Afterpay shares a buy at $100?

Well as my Fool colleague James Mickleboro reported last week, broker Bell Potter is extremely bullish on Afterpay, with a price target of $168.50 a share. That implies a future potential upside of almost 70%.

However, not everyone is that bullish. As we covered last month, a broker from the US, Bernstein, recently initiated coverage on Afterpay with a price target of just $40 a share. Bernstein thinks Afterpay will keep growing, only its margins won’t. It sees significant margin compression for Afterpay over time in the face of fierce competition.

However, as we reported then, broker Jeffries has a far higher price target of $157.38 per share for Afterpay. Whilst Citi has it at $128.30.

So some brokers think Aftepray is a buy at $100 a share today, others don’t. Who said consensus was overrated?

More reading

• Why the Afterpay (ASX:APT) share price is sliding 5%
• One MASSIVE thing about Tesla and Afterpay that people forget
• Afterpay (ASX:APT) share price tumbles despite investor presentation
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower
• ASX 200 tech shares under pressure after Nasdaq selloff

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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