The Regis Resources Ltd (ASX: RRL) share price has jumped higher this morning after an early morning announcement from the Aussie gold miner. At the time of writing, shares in Regis are trading for $3.02, up 1.68%.

Why is the Regis Resources share price climbing?

This morning, Regis provided an update on its Ben Hur maiden ore reserve located near Laverton in Western Australia. The Aussie miner said that the acceleration of exploration following the 2020 acquisition has grown the Mineral Resource by 34 per cent. That has allowed the declaration of the maiden Ore Reserve at Ben Hur.

The total Mineral Resource for the Ben Hur deposit is estimated to be 10.3 megatonnes (Mt) at 1.2 grams per tonne (g/tonne). This equates to a total of 390,000 ounces of gold. As a result of the update, the Regis Resources share price shot 2.7 per cent higher at the market open.

Regis’ Ore Reserve Estimate for Ben Hur found probable reserves of 3.5 Mt of ore. This will be mined at 1.1 g/tonne for a total of 130,000 ounces of gold. 

Shareholders appeared to receive this morning’s update favourably. Shares in the Aussie gold miner have been volatile in early trade while the S&P/ASX 200 Index (ASX: XJO) has climbed 0.8% higher after the Easter break. 

What about other ASX gold miners?

It’s been broadly good news across major Resources sector shares. The Newcrest Mining Ltd (ASX: NCM) has also shot 1.4 per cent higher in early trade. Additionally, St Barbara Ltd (ASX: SBM) shares have also climbed higher. 

However, the Incitec Pivot Limited (ASX: IPL) share price has slumped nearly 10 per cent lower to start the shortened trading week. That move comes after an pre-market update on its Waggaman Ammonia Plant.

Foolish takeaway

The Regis Resources share price has been volatile to start the week and remains on watch in Tuesday’s trade. Shares in the Aussie gold miner surged higher after an update on its Ben Hur site which included a significant expansion of the Mineral Resource.

More reading

• Why the Vocus (ASX:VOC) share price is surging this year
• Why the Chorus (ASX:CNU) share price is on watch
• UBS is calling time on the ASX iron ore supercycle
• 5 things to watch on the ASX 200 on Tuesday
• Top broker picks the best ASX shares to buy for the new quarter

Motley Fool contributor Ken Hall 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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Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Boral Limited (ASX: BLD)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and lifted their price target on this building products company’s shares to $6.30. This follows the announcement of the sale of its 50% share in the USG Boral business. Morgan Stanley notes that this is another positive in the transformation of Boral. It also suspects that other asset sales could be made, which could lead to further capital management. The Boral share price is fetching $5.87 on Tuesday.

Codan Limited (ASX: CDA)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this technology company’s shares to $17.00. This follows the announcement of the acquisition of Zetron for US$45 million last week. Macquarie is a fan of the acquisition and feels it gives Codan exposure to a complementary and attractive market. In addition to this, the recent launch of a key new metal detector could be a boost to sales. Previously, the company has entered into a strong upgrade cycle following the release of major new metal detectors. The Codan share price is up over 5% to $16.74 this morning.

Sealink Travel Group Ltd (ASX: SLK)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this travel and transport company’s shares to $10.30. According to the note, the broker has been looking into the New Zealand public transport industry. Macquarie sees opportunities for Sealink to expand into New Zealand through acquisitions. In addition to this, the broker feels the company is well-placed for further contract wins. The Sealink share price is trading at $9.51 today.

More reading

• Why Afterpay, Codan, Cleanaway, & Webjet shares are surging higher
• These were the best performing ASX 200 shares last week
• These were the best performing ASX 200 shares in the Q1 of 2021
• ASX 200 rises, Webjet sinks, Boral climbs
• ASX 200 up 0.25%: AMP names new CEO, Boral’s buyback, Webjet sinks

Motley Fool contributor James Mickleboro 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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As the Australian economy begins to emerge from the other end of the COVID-19 pandemic, it’s worth taking a look at some companies that may now have significant tailwinds behind them.

Traditional brick and mortar retail was hit especially hard by lockdowns imposed across the country last year. However, many companies still found ways to reach new customers by expanding their digital sales channels. As the economy opens up again and consumers return to department stores and other traditional retail outlets, there is the potential for some brands to have truly banner years. Companies that expanded their market penetration through e-commerce during the pandemic may now even see an uptick in foot traffic as well.

We take a closer look at 3 ASX retail companies that have navigated the pandemic well.

Lovisa Holdings Ltd (ASX:LOV)

Lovisa sells trendy – but affordable – women’s jewellery and accessories. Sales plunged during lockdowns: first-half FY21 revenues were down 9.8% versus the prior comparative period (PcP) to $146.9 million, while net profit after tax (NPAT) plunged 22.6% to $21.5 million.

However, at $14.45 its share price is still pushing towards a new all-time high price. Despite the weak first-half result, Lovisa has reported a strong rebound in customer foot traffic in its Southern Hemisphere stores in the early stages of the second half. It also continued to pursue its international expansion plans throughout the pandemic, acquiring German wholesaler beeline GmBH (and its 80-plus retail outlets spread across Germany, Switzerland, the Netherlands, Belgium, Austria and Luxembourg).

City Chic Collective Ltd (ASX:CCX)

Plus size women’s fashion retailer City Chic Collective has been one of the surprising success stories to emerge from the pandemic. Despite the disruptions to retail trade, the City Chic share price has soared, and it is now up over 180% in the last 12 months.

First-half sales revenues jumped 13.5% versus PcP to $119 million, while NPAT increased by 24.8% to $13.1 million. Customer numbers also skyrocketed: the company claimed to have around 801,000 active customers by the end of the first half, an uplift of 56%.

The success was due in large part to the strength of its online sales channels. Digital sales made up 73% of total sales during first-half FY21, up from 53% for first-half FY20. And, like Lovisa, City Chic has continued to expand internationally throughout the pandemic. 45% of sales were generated in the Northern Hemisphere during the first half (up from just 29% for first-half FY20). The company also recently acquired UK high street brand Evans, signalling its intention to expand into more European markets.

Adairs Ltd (ASX:ADH)

Furniture and homewares retailer Adairs was one of the companies to benefit from the structural shifts that occurred during lockdowns. With people spending more time than ever in their own homes – including working from home, in many cases – homewares sales skyrocketed.

First-half FY21 total sales jumped 34.8% versus PcP to $243 million, with slightly over 37% made online, while NPAT skyrocketed 233.4% to $43.9 million. In fact, the company did so well that it made the decision to refund $6.1 million in Jobkeeper subsidies it received from the government.

The risk with Adairs – and other furniture retailers that blew up during the pandemic, like Temple & Webster Group Ltd (ASX:TPW) – is that the surge in homewares sales may have only been a temporary side-effect of the pandemic. However, Adairs reported that sales have continued to remain high throughout the early stages of the second half, so it will be interesting to watch how it performs for the remainder of FY21.

More reading

• These are the 10 most shorted shares on the ASX
• 2 impressive ASX shares to buy in April 2021
• 3 ASX shares to buy in April 2021
• 2 ASX dividend shares with very BIG yields
• 2 ASX shares rated as strong buys by brokers

Rhys Brock owns shares of Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia has recommended ADAIRS FPO and 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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The 88 Energy Ltd (ASX: 88E) share price was sliced in half on Tuesday morning after an update related to its Peregrine project in the National Petroleum Reserve in Alaska (NPR-A). 

At the time of writing, the 88 Energy share price is down 64% trading at 2.6 cents after closing at 7.3 cents on Thursday.

Project Peregrine update sinks the 88 Energy share price 

Project Peregrine is one of three 88 Energy projects in Alaska. Recent updates for Peregrine have been both a blessing and a curse. 

On 29 March, the company announced that it had detected potential hydrocarbon-bearing zones whilst conducting drilling operations for the Peregrine project.

The announcement acted like jet fuel for the already surging 88 Energy share price, which had run more than 300% in March, prior to the announcement. Its shares finished March up almost 700%, from 0.9 cents to just shy of 7 cents.

While the potential hydrocarbon-bearing zones excited investors, 88 Energy managing director Dave Wall noted that: 

Whilst there is still work to do to confirm a discovery, the results to date are encouraging and we look forward to providing an additional update on the wireline program in 7 to 10 days.

The announcement also included a cautionary statement that said: 

The estimated quantities of petroleum that may be potentially recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration, appraisal and evaluation are required to determine the existence of a significant quantity of potentially movable hydrocarbons.

Why the 88 Energy share price is spewing today 

Today’s announcement updated the market with regards to the Peregrine operations. 

In its announcement, 88 Energy detailed its wireline program which was first used to identify potential reservoir and resistivity as well as provide an estimate of the mobility of the fluid present. The results were promising with multiple prospective zones identified, consistent with the shows and logs obtained while drilling. 

The company then attempted to take samples across the identified zones. It noted that “initial observations indicated the presence of an oil signature in the fluid using an optical fingerprint sensor in the downhole sampling tool, communication was established with the reservoir in the deepest zone of interest”. 

However, a power outage due to equipment failure and other challenges resulted in the company not being able to sample its two most prospective zones. Additional analysis of sidewall cores sand potentially further drilling may be required to confirm a discovery.

Wall commented: 

We appreciate that these early results may be difficult to interpret. That is because we do not yet have all the data required to allow interpretation.

This means some uncertainty remains; however, it is already clear that Merlin-1 has delivered by far the best outcome of any of the 5 wells drilled by 88 Energy in Alaska over the last 6 years.

More reading

• Airtasker and Zip were among the most traded ASX shares last week
• Here’s why the 88 Energy (ASX:88E) share price is accelerating 12% today
• Afterpay and Zip were among the most traded ASX shares last week

Motley Fool contributor Kerry Sun 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 Pure Hydrogen Corp Ltd (ASX: PH2) share price is fluctuating in morning trade, gaining 2% before dipping to its current level of 25 cents a share, down 2% on last Thursday’s close.

We take a look at the latest announcement from the ASX energy share below.

What did Pure Hydrogen report?

Pure Hydrogen shares are moving today after the company reported it has reached a term sheet agreement with Synergen Met Pty Ltd for a 50/50 Joint Venture (JV).

The new JV will use Synergen’s methane decomposition module to manufacture “turquoise hydrogen gas and value add carbon products” from methane at Pure Hydrogen’s 100% owned Venus coal seam gas (CSG) Pilot in Queensland.

Each module (initially there’ll be 1) can produce approximately 1,400 kilograms of hydrogen and 4,200 kilograms of value-add carbon product if they’re run around the clock.

The modules come in standard 12 metre shipping containers. Pure Hydrogen highlights this will enable them to become fully operational quickly and also enable the JV to place additional modules in areas with enough methane to “support the growing domestic and international hydrogen markets”.

According to the release, Synergen’s technology uses a “propriety plasma pyrolysis process” to decompose methane into hydrogen and solid carbon products. The process has the potential to emit virtually no greenhouse gases, if the electricity is provided from renewable sources.

Commenting on the JV agreement, Pure Hydrogen’s Managing Director Scott Brown said:

This is a very promising commercial development for Pure Hydrogen and for Synergen as we are combining proven technology with a methane resource to produce hydrogen and solid carbon products, which potentially adds another valuable revenue stream to Pure Hydrogen’s business and an exciting technology angle to Pure’s Strategy.

Pure Energy stated that the JV will reinforce its strategy to build a series of hydrogen storage and distribution hubs.

Pure Hydrogen share price snapshot

Pure Hydrogen shareholders made out well over the past 12 months, with shares in the ASX energy company up 390%. By comparison the All Ordinaries Index (ASX: XAO) is up 34% in that same time.

Year-to-date the Pure Hydrogen share price is up 172%.

More reading

• Why the Pure Hydrogen (ASX:PH2) share price sank 10% today

Motley Fool contributor Bernd Struben 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 Calidus Resources Ltd (ASX: CAI) share price is flat in morning trade. At the time of writing, shares in Calidus Resources are trading for 42 cents, up 5%.

Below, we take a look at the ASX gold share’s latest project finance announcement.

What did Calidus Resources report?

The Calidus share price remains flat in morning trade after the company reported final agreements have been executed with Macquarie Bank for a $110 million project loan. Calidus initially provided the terms of the loan to the market on 30 November last year.

The ASX gold miner also reported its Power Purchase Agreement (PPA) with Zenith Energy Limited has been completed. That agreement will see Zenith provide 8 megawatts (MW) of power for the company’s Warrawoona Gold Project. This will occur via a “10.74MW installed capacity high-efficiency LNG fuelled reciprocating generation facility”. Zenith will also provide an 8 MW backup diesel generator.

Calidus also highlighted that the deal with Zenith is part of its continuing efforts to introduce renewable energy sources at its Warrawoona project.

Management commentary

Commenting on the twin agreements, Calidus’ managing director, Dave Reeves said:

We are very pleased to have executed final debt financing agreements with Macquarie. The timing of which coincides with GR Engineering mobilising to site to begin civil works at Warrawoona and the execution of the PPA with Zenith Energy.

Calidus is fully funded and focused on successfully developing the Warrawoona Gold Project and becoming a leading independent gold producer, with first production on schedule for early 2022.

Argonaut was the financial advisor while Herbert Smith Freehills was the legal advisor for the debt financing agreement with Macquarie.

Share price snapshot

Over the past 12 months, the Calidus Resources share price has outperformed the broader All Ordinaries Index (ASX: XAO). Calidus shares have gained 74% over the past full year while the All Ords are up 34% at the same time.

So far, 2021 hasn’t been as kind to Calidus shareholders, with shares down 20% year-to-date.

At the current share price of 40 cents per share, Calidus has a market cap of $135 million.

More reading

• Why Afterpay, Codan, Cleanaway, & Webjet shares are surging higher
• Why the Vocus (ASX:VOC) share price is surging this year
• Why the Anson Resources (ASX:ASN) share price is up 6% today
• Fundie says that this ASX share is a misunderstood compelling opportunity
• Alliance (ASX:AQZ) share price flies on latest deal

Motley Fool contributor Bernd Struben 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.

The post What’s going on with the Calidus Resources (ASX:CAI) share price? appeared first on The Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) has returned from the Easter break in fine form. In late morning trade the benchmark index is up 1.1% to 6,902.3 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are surging higher:

Afterpay Ltd (ASX: APT)

The Afterpay share price is up 8% to $114.18. This appears to have been driven by strong gains in the US tech sector on Thursday and Monday night. This has led to the famous Nasdaq index climbing by an impressive 5% since this time last week. At the time of writing, the S&P ASX All Technology Index (ASX: XTX) is up 3.7%.

Codan Limited (ASX: CDA)

The Codan share price has climbed 5.5% to $16.74. Investors have been buying the technology company’s shares following the release of a positive broker note out of Macquarie. This morning the broker responded to its acquisition of Zetron for US$45 million by retaining its outperform rating and lifting its price target to $17.00. It also notes the recent release of a key new metal detector, which could be a boost to sales.

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price has surged 9.5% higher to $2.41. This morning the waste management company announced an agreement to acquire Suez R&R Australia for $2.52 billion. The acquisition of the recycling and recovery business is expected to provide additional scale and scope to create further operating leverage and multiple avenues to accelerate growth. It is also forecast to be significantly accretive to earnings post synergies.

Webjet Limited (ASX: WEB)

The Webjet share price has rebounded almost 4% to $5.48. This appears to have been driven by a broker note out of Goldman Sachs this morning. While the broker notes that its latest capital raising dilutes shareholders again, it also removes some uncertainties. In light of this, it has retained its buy rating and trimmed its price target slightly to $7.00.

More reading

• Why the IOUpay (ASX: IOU) share price tumbled 40% in March 
• Afterpay (ASX:APT) leads Zip by 40% on one critical measure
• Is the Webjet (ASX:WEB) share price in the bargain bin?
• 5 things to watch on the ASX 200 on Tuesday
• 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 owns shares of and has recommended Webjet Ltd. 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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The Vocus Group Ltd (ASX: VOC) share price has rocketed to a 52-week high in a strong start to the year. Shares in the Aussie telco have climbed 34.1% higher in 2021 to outperform the S&P/ASX 200 Index (ASX: XJO).

Why is the Vocus share price surging higher?

The big factor pushing the Aussie telco’s value higher was a takeover offer from an investment consortium. That group of investors was lead by Macquarie Infrastructure and Real Assets (MIRA) and Aware Super.

Vocus received an offer to sell 100% of its share capital to the consortium for $5.50 cash per share. For context, the Vocus share price started the year at $4.08 per share before climbing to just shy of the takeover price. The $5.50 takeover price also represented a 25.6% premium to its last closing price of $4.38 per share on 5 February 2021.

March saw a key update from the Vocus Board in relation to the offer. The Board unanimously recommended that Vocus shareholders vote in favour of the Scheme Implementation Deed.

Shareholders will be given the opportunity to vote on the takeover at a scheme meeting, which is currently expected to be held in June. After which, if shareholders vote in favour of the scheme, its implementation would occur in July.

The takeover offer has seen the Vocus share price rocket higher to its current $5.47 per share 52-week high. That reflects the fact that investors think the takeover is highly likely to proceed as planned.

Foolish takeaway

The Vocus share price is currently sitting at a 52-week high. That comes after an update on the takeover received from the MIRA and Aware Super consortium.

Shares in the Aussie telco have rocketed 34.1% in 2021 compared to a 2.2% gain for the S&P/ASX 200 Index. The takeover should finalise later this year for $5.50 per share with the unanimous backing of the Vocus Board.

More reading

• Why the Chorus (ASX:CNU) share price is on watch
• UBS is calling time on the ASX iron ore supercycle
• 5 things to watch on the ASX 200 on Tuesday
• Top broker picks the best ASX shares to buy for the new quarter
• These were the worst performing ASX 200 shares last week

Motley Fool contributor Ken Hall 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 Anson Resources Ltd (ASX: ASN) share price is up 6.41% today after the lithium miner shared good news from its flagship Paradox Basin Brine Project in the United States.

The Anson Resources share price’s gains today add to its positive year on the ASX. Currently, the miner’s shares are trading for 8.3 cents, up a whopping 315% over the last 12 months.

Let’s look closer at today’s news out of Anson.

A potentially significant resource increase

Anson Resources announced this morning that the exploration target for brine tonnes at its Paradox Project in the US state of Utah has more than doubled. In fact, the company said the target could have increased by 257%.

This follows last week’s announcement from the company that it has been granted additional claims at Paradox, totalling 590.8 hectares.

Anson increased the target after discovering a brine aquifer around 8,000 feet below the project’s surface.

The company estimates the aquifer could boost the project’s lithium containment by 230%. It could also increase its estimated bromine containment by 493%.

Anson’s announcement warned the exploration target figure is only conceptual at this point, and it isn’t able to promise that future exploration will result in a mineral resource.

The discovery of the brine aquifer came after the company conducted a review of data from historic exploration programs.

The mineral estimation was calculated using data from a similar brine aquifer in the Mississippian Leadville Formation (Leadville).

Commentary from management

Anson CEO Bruce Richardson welcomed the findings, saying:

The expansion potential presented by this massive brine aquifer located below our existing resource is significant, and provides exciting exploration upside to an already robust resource base at Paradox.

Plans have been finalised and submitted to undertake a low-cost well re-entry program which will enable our technical team to test this aquifer and its potential to add to our current JORC resource. The Paradox Project is entering an exciting phase and is well positioned for future development and we look forward to providing further updates on key work streams in due course.

Anson Resources share price snapshot

The Anson Resources share price has been following the upward trend of many ASX listed lithium producers in 2021.

Currently, it is up by 166% year to date.

Anson Resources has a market capitalisation of around $69 million, with approximately 893 million shares outstanding.

More reading

• These are the top performing ASX lithium stocks in 2021 so far
• Here’s why the Anson Resources (ASX:ASN) share price has shot up 34% 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.

The post Why the Anson Resources (ASX:ASN) share price is up 6% today appeared first on The Motley Fool Australia.

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There’s a particular ASX share that fund manager Alex Milton from NovaPort Capital thinks is an opportunity – IPH Ltd (ASX: IPH).

What is IPH?

Intellectual property is an increasingly important asset in today’s world. The business has around 1,000 staff spread across a number of different places including Australia, New Zealand, Singapore, Malaysia, China, Indonesia, Thailand and Hong Kong.

The ASX share has a wide-ranging customer base comprised of huge global businesses, public sector research groups, smaller businesses and professional service firms.

Over the last decade, it has acquired a number of different IP businesses including Spruson & Ferguson, Fisher Adams Kelly, Callinans and Pizzeys Patent and Trade Mark Attorneys in Australia, Ella Cheong (Hong Kong) Limited and its subsidiary Ella Cheong Intellectual Property Agency (Beijing) Company Limited in Asia and AJ Park in New Zealand.

It also acquired Xenith IP Group a couple of years ago.

How has the business been performing recently?

Over the last year the IPH share price is down around 8%. However, it’s currently going through a bit of a recovery, with the share price up 9.25% over the last month.

The market had a strong positive reaction to the IPH FY21 half-year result at the time of the release.

IPH’s numbers were largely flat. Revenue was unmoved year on year at $179.8 million. Statutory earnings before interest, tax, depreciation and amortisation (EBITDA) fell 1% to $56.7 million, statutory net profit after tax (NPAT) declined 1% to $26.8 million and diluted earnings per share (EPS) fell 4% to 12.4 cents.

The underlying result, which excludes items like non-cash amortisation of intangible assets, was a little better with underlying EBITDA growth of 2%, underlying NPAT growth of 3% and underlying EPS growth of 1% to 17.4 cents.

Operating cashflow increased by 39%. The interim IPH dividend was increased by 4% to 14 cents per share.

Despite all the impacts of COVID-19, IPH was able to achieve profit margin improvement and achieve synergies from its acquisitions.

The company remains the market leader in Australia, as well as Singapore.

Why is the IPH share price a misunderstood opportunity?

When asked by Bella Kidman from Livewire Markets about a misunderstood opportunity, fund manager Alex Milton named IPH and said it has a strong balance sheet, high margins, good cashflow and good market share locally, with promising growth potential internationally across Asia.

One of the reasons to like the business is that it has proven to be defensive even through difficult economic periods such as COVID-19 as well as the GFC. IPH was one of the ASX shares that NovaPort Capital invested in during the market declines in 2020.

The fund manager pointed out that the earnings were being impacted by the stronger Australian dollar. Mr Milton believes the market is undervaluing the business and its positive potential.

According to Commsec, the IPH share price is valued at 20x FY21’s estimated earnings.

More reading

• Alliance (ASX:AQZ) share price flies on latest deal
• Why the FINEOS (ASX:FCL) share price is climbing this morning
• Here’s why the Core Lithium (ASX:CXO) share price is charging higher
• Why the PointsBet (ASX:PBH) share price was suddenly sold off in March 
• These ASX tech shares are all trading near their lowest prices in months

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends IPH Ltd. The Motley Fool Australia has recommended IPH 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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