• Could Airbnb’s trademark dispute threaten the Airtasker (ASX:ART) share price?

    ASX share price war presented by big dog facing off against little dog

    The rise of the Airtasker Ltd (ASX: ART) share price took the ASX by storm, surging from a listing price of 65 cents to a high of $1.965 in only two days. 

    The company is currently valued at more than $500 million despite achieving FY20 revenues of just $19.3 million. Its rich valuation comes with a promise of international expansion to leverage its scalable technology and perhaps bring the company closer to a reasonable valuation. 

    Airtasker’s Australian marketplace currently represents approximately 99% of its revenue, with the remaining 1% derived from the United Kingdom. In 2020, it established marketplaces in New Zealand, Singapore and Ireland. It also intends to commence operations in the United States in 2021. 

    As it stands, a behemoth is blocking Airtasker’s path to becoming a truly international platform. Should speed bumps get in the way of the company’s growth story, this could impact the Airtasker share price moving forward. 

    Air … bnb or tasker? 

    Global accommodation marketplace, Airbnb has been in a trademark dispute with Airtasker since 2019, opposing its entry into Europe. 

    Airbnb believes that Airtasker has essentially ripped off its first characteristic syllable ‘Air’. It argues the average consumer might assume that Airtasker is a special service or subsidiary of Airbnb. 

    On Sunday, The Sydney Morning Herald reported that in Airbnb’s submission to the European Union Intellectual Property Office, it argues that its mark “is among the best known and most valuable marks in the world”.

    Despite the potential roadblock, Airtasker has remained confident of a positive outcome. 

    What’s next for the Airtasker share price? 

    Based on the current Airtasker share price, the company commands a market capitalisation of $536.31 million. This equates to around 28 times the company’s FY20 revenue. As such, the pressure could build for Airtasker to justify its current valuation. 

    Airtasker’s 2-year compound annual growth rate for gross merchandise value, revenue and profit have been a respective 24.2%, 32.1% and 33.8% between FY19 and FY21 forecasts. At face value, its growth sounds mediocre when compared to tech shares such as Afterpay Ltd (ASX: APT) or Zip Co Ltd (ASX: Z1P) that trade at similar revenue multiples. 

    Airtasker’s prospectus highlights its plans to drive growth by establishing marketplaces overseas.  

    The company estimates a total addressable market (TAM) for local services in Australia of approximately $52,309 million.

    Looking over at other countries, Ireland’s TAM for local services is estimated to be $6,393 million, with $4,890 million in New Zealand, $5,021 million in Singapore, $70,440 million in the United Kingdom and a whopping $504,058 in the United States. 

    The Airtasker share price closed Monday’s session flat for the day at $1.365.

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    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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  • LIVE COVERAGE: ASX to fall; tech shares on watch

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    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. 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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  • 2 of the best ASX dividend shares to buy

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    Are you looking to add some new faces to your income portfolio this week? If you are, then you might want to look at the ASX dividend shares listed below.

    Here’s what you need to know about them:

    Coles Group Ltd (ASX: COL)

    This supermarket operator could be a top option for income investors right now. This is due to Coles’ strong market position, defensive qualities, and its attractive valuation and yield.

    And while the second half of FY 2021 could be mildly disappointing due to the fact it is now cycling the elevated sales period from a year earlier, Coles’ longer term outlook remains very positive. This is thanks to its focus on automation, growing own label sales, and its transformational strategy.

    Goldman Sachs is very positive on the company’s prospects. It currently has a buy rating and $20.70 price target on its shares. Goldman is also forecasting a 62 cents per share dividend in FY 2021. Based on the current Coles share price, this represents a fully franked 4% yield.

    Wesfarmers Ltd (ASX: WES)

    Another option to consider is Coles’ former parent, Wesfarmers. This conglomerate has been performing very positively in FY 2021.

    This has been driven by solid performances across its portfolio but particularly from the Bunnings business. The hardware giant has been benefiting from home improvement-related government stimulus and the booming housing market.

    Its strong performance underpinned a 16.6% increase in Wesfarmers’ first half revenue to $17,774 million and a 25.5% jump in net profit after tax to $1,414 million.

    Goldman Sachs is also a fan of Wesfarmers and currently has a buy rating and $59.70 price target on its shares.

    In addition, the broker is forecasting a fully franked dividend of $1.88 per share in FY 2021. Based on the latest Wesfarmers share price, this represents an attractive 3.4% yield.

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  • 5 things to watch on the ASX 200 on Tuesday

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    On Monday the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of gains. The benchmark index rose ever so slightly to 7,065.6 points.

    Will the market be able to build on this on Tuesday? Here are five things to watch:

    ASX 200 expected to fall

    The Australian share market looks set to trade lower on Tuesday. According to the latest SPI futures, the ASX 200 is expected to open the day 27 points or 0.4% lower this morning. This follows a disappointing start to the week on Wall Street, which saw the Dow Jones fall 0.35%, the S&P 500 drop 0.5%, and the Nasdaq tumble 1% lower.

    Oil prices rise

    Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could push higher today after oil prices climbed again. According to Bloomberg, the WTI crude oil price is up 0.5% to US$63.43 a barrel and the Brent crude oil price has risen 0.5% to US$67.11 a barrel. Weakness in the US dollar was supportive of oil prices

    Iluka rated as a buy

    The Iluka Resources Limited (ASX: ILU) share price is in the buy zone according to Goldman Sachs. The broker has put a buy rating and $8.30 price target on the mineral sands producer’s shares, which implies potential upside of almost 13%. Goldman likes Iluka due to its compelling mineral sands and rare earth growth potential, the Zircon market entering a deficit this year, and its attractive valuation.

    Gold price falls

    Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.5% to US$1,770.70 an ounce. Rising bond yields knocked the precious metal off its seven-week high.

    Tech shares on watch

    Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) shares could come under pressure today after a pullback in US tech stocks overnight. The Nasdaq index fell 1% on Monday after bond yields widened. As the local tech sector tends to follow the Nasdaq’s lead, this doesn’t bode well for Tuesday’s session.

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    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 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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  • 3 fantastic ASX shares to buy this month

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    There certainly are a lot of options for investors to choose from on the Australian share market.

    But three that could be fantastic options right now are listed below. Here’s what you need to know about them:

    Adore Beauty Group Limited (ASX: ABY)

    The first ASX share to look at is Adore Beauty. Australia’s leading online beauty retailer has been growing very strongly during the pandemic. For example, in February the company reported half year revenue of $96.2 million and EBITDA of $5.2 million. This was up 85% and 188%, respectively, over the prior corresponding period. Positively, thanks to the shift online and its growing active customer base, Adore Beauty appears well-placed to continue its positive form over the coming years.

    UBS is positive on Adore Beauty. It appears confident its strong market position and growing customer numbers will underpin further strong growth in the future. UBS currently has a buy rating and $6.20 price target on its shares. 

    Goodman Group (ASX: GMG)

    Another ASX share to consider buying is Goodman Group. It is a leading integrated commercial and industrial property group that owns a high quality portfolio of assets. Positively, many of its assets have exposure to structural tailwinds such as ecommerce and the digital economy. As a result, they look likely to be in demand with customers for a long time to come. This should be supportive of strong rental income and distribution growth over the next decade.

    Macquarie is a fan of Goodman. This morning the broker retained its outperform rating and $20.39 price target on its shares.

    Ramsay Health Care Limited (ASX: RHC)

    A third ASX share to consider buying is Ramsay Health Care. It is a leading private healthcare company with operations across the world. After struggling during the height of the pandemic, Ramsay has bounced back strongly in recent months and is now benefiting from a backlog in surgeries. Looking ahead, the company looks well-placed for long term growth thanks to increasing demand for healthcare services due to ageing populations.

    Macquarie is also positive on the company. Last month it reaffirmed its outperform rating and $75.00 price target on Ramsay’s shares.

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. The Motley Fool Australia has recommended Ramsay Health Care 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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  • Why the Dubber (ASX:DUB) share price just smashed its all-time high

    A young man pointing up looking amazed, indicating a surging share price movement for an ASX company

    The Dubber Corp Ltd (ASX: DUB) share price rocketed almost 5% today after the company released its response to an ASX query.

    The Dubber share price touched an all-time high of $2.42 in morning trade before retreating in the afternoon to close at $2.26, a rise of 0.44%.

    What happened

    At 9.30 this morning, Dubber responded to the ASX’s inquiry over the strong price rise prior to its Zoom Video Communications Inc (NASDAQ: ZM) announcement on 14 April. The company was asked to explain why its share price rose from $1.78 to $1.96 with increased volume on 13 April.

    Crucially, with the Zoom announcement being released the following day, the ASX was inquiring about the possibility of insider trading.

    Dubber responds

    In response, company secretary Ian Hobson outlined how the company became aware of the situation at 8.03am on 14 April and consequently released the information before the market opened on the same day.

    However, he noted that Dubber had been in discussion in the months prior, relating to a range of commercial initiatives.

    This included the proposal by the company that the Dubber call recording service would be made available on the Zoom app marketplace. According to Mr Hobson, this process can take time relating to the various technical requirements.

    Regarding the prior price change in Dubber’s share price, the company stated that the announcement had remained confidential between Dubber and Zoom, apart from a limited number of individuals.

    As such, the company claims that it had complied with the ASX listing rules, and in particular, rule 3.1 regarding the release of information.

    About the Dubber share price

    Dubber is an Australian company that operates as a cloud platform service provider.

    It provides a call recording, management, and access service with advanced functionality. Its product suite includes Dubber Connect, a cloud call recording and communication capture service available through a service provider.

    The Dubber share price has performed well over the last year, returning 182.5% to investors.

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    Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Dubber. The Motley Fool Australia has recommended Zoom Video Communications. 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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  • Why the Quickfee (ASX:QFE) share price slumped 8% today

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    The Quickfee Ltd (ASX: QFE) share price has had another challenging trading session, falling 8%. Shareholders have been selling down the financial technology company’s shares following the release of its Q3 FY21 business update.

    As a result of the selloff, the Quickfee share price closed at 31 cents per share. Let’s take a look at what was influencing the price action today.

    Competing narratives

    Despite some impressive growth metrics from the third quarter for Quickfee, they aren’t consistent across all operations. The company tends to separate its operations into Australia and United States. From here, we can see two different stories being played out.

    For the 9 months year to date, Quickfee reported 509 active merchants using the US platform. This compares to 327 for the same period in FY20. Meanwhile, active merchants shrank from 473 to 461 in Australia in the same comparison.

    Similarly, active customers in the US increased to 126,000 from 91,000, while Australian active customers retraced to 24,000 from 30,000. Quickfee attributes this to the government stimulus measures in Australia, reducing the demand for lending locally. Evidently, this impact has flowed onto the Quickfee share price. 

    However, the company noted March was the strongest lending month thus far for this financial year – hinting at a potential recovery.

    Instalment offering and e-invoicing

    Quickfee also updated shareholders on its progress with its instalments offering. The company is continuing to gain traction in Australia and the US. 531 merchants had signed up for the product by 31 March 2021. Once again, the US beat out Australia on metric – with 69.7% of those signed up from the US.

    Furthermore, lending volumes for the instalment product remain nascent as the company executes its go-to-market strategy. Quickfee’s approach is to continue targeting its focused customer base of accounting and law customers.

    Lastly, plans are on track for the launch of ConnectAR by the end of Q4 FY21. ConnectAR is an e-invoicing tool that Quickfee expects will assist in cementing its relationship with customers.

    Quickfee share price quickly

    The Quickfee share price has been caught in a persistent downtrend since August last year. Since then, the share price has gradually eroded 60%. 

    However, in terms of returns for the last year – things aren’t as bad. Bouncing back from the COVID-19 suppression, the Quickfee share price has returned nearly 35% in the past year.

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    Motley Fool contributor Mitchell Lawler 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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  • These high yield ASX dividend shares are rated as buys

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    With low interest rates likely to be here to stay for some time to come, it certainly is a difficult time for income investors.

    But don’t worry, because there are plenty of ASX dividend shares that can help you overcome low rates. Two that are highly rated are listed below:

    Aventus Group (ASX: AVN)

    The first ASX dividend share to consider buying is Aventus. It is a leading Real Estate Investment Trust (REIT) focused on large format retail properties.

    While many retail landlords have struggled over the last 12 months, Aventus has continued its positive form. For example, in February the company released its half year results and revealed that its occupancy rate was 98.5% and centre traffic grew by 8% over the prior corresponding period. That period was before anyone had even heard of COVID-19.

    One broker that is positive on the company is Goldman Sachs. It currently has a buy rating and $3.06 price target on its shares.

    Furthermore, based on the current Aventus share price of $2.82, the broker estimates that its shares offer yields of 5.9% and 6.6%, respectively, over the next two years.

    Super Retail Group Ltd (ASX: SUL)

    Another ASX dividend share to consider is Super Retail. It is the company behind retail brands BCF, Macpac, Rebel, and Super Cheap Auto.

    Like Aventus, it has been a positive performer during the pandemic. For example, in February Super Retail released its half year results and revealed a 23% increase in sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million. Key drivers of this stellar profit growth were strong like for likes sales, online sales, and margin expansion.

    Goldman Sachs is also a fan of Super Retail and has a buy rating and $15.00 price target on its shares. It is expecting the company to have a strong second half and to reward shareholders with a special dividend.

    Goldman is forecasting an 81 cents per share fully franked dividend including the special dividend. Based on the latest Super Retail share price, this represents a 6.6% yield.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Why brokers think these 3 top performing ASX 200 shares can beat the market

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    The ASX 200 is within an arms reach of its pre-COVID highs. As ASX 200 shares continue to grind higher, here are the ones that brokers think can outperform the market.

    ASX 200 shares that could beat the market

    1. Eagers Automotive Ltd (ASX: APE) 

    Positive automotive data such as used car sales and increased driving as well as hygiene concerns on public transport has helped fuel a bullish run for ASX-listed automotive shares such as Bapcor Ltd (ASX: BAP), ARB Corporation Limited (ASX: ARB) and Super Retail Group Ltd (ASX: SUL).

    On Monday, Morgan Stanley, Morgans and UBS released positive notes for Eagers shares with a respective overweight, add and buy rating. The brokers highlight a positive first-quarter update from last week, observing continued demand for vehicles and supply tightness. The average target price between the three brokers is $17.10. 

    Credit Suisse was the only neutral rated broker, citing that its strong start to 2021 does not necessarily note any change in confidence in the medium to long term.

    Eagers Automotive shares have surged 4.57% on Monday to a high of $16.25. 

    2. BlueScope Steel Limited (ASX: BSL) 

    BlueScope has continued to build momentum in its earnings across all key business segments. The company has seen strong volumes and improving steel spreads in its largest steel-making business in Australia, while other regions including the United States, India, China and New Zealand continue to record strong earnings improvements. 

    This translated to $530.6 million in underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) in the first half, up 78% on 1H20 and double that of 2H20. 

    Credit Suisse is bullish on BlueScope shares with an outperform rating and $22.50 target price. The broker increased its FY21-22 operating income forecasts by 7-8% based on higher steel spreads in Australia and the US. 

    The BlueScope share price closed today at $21.40, up 2.2%.

    3. Hub24 Ltd (ASX: HUB) 

    Hub24 continues to disrupt the investment and superannuation portfolio administration space, growing its market share from 1.6% to 2.3% in the first half. The company has a two-year compound annual growth rate of 48% for platform funds under management, maintaining its position as second for annual net inflows amongst competitors. 

    Citi is forecasting net inflows of $1.9 billion in the third quarter, up 39% on the previous corresponding period. The broker believes Hub24 could overtake NetWealth Group Ltd (ASX: NWL)

    The broker rates Hub24 shares as a buy with a $26.00 target price. Hub24 shares are currently fetching $24.28.

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    Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended ARB Limited and Hub24 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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  • 2 buy-rated ASX growth shares for your portfolio

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    Looking for a growth share or two to buy this month? Then you might want to check out the two listed below.

    Here’s why these growth shares could be in the buy zone right now:

    Nanosonics Ltd (ASX: NAN)

    Nanosonics is a healthcare technology company with a focus on infection control. 

    The company currently derives all of its revenue from its trophon EPR disinfection system for ultrasound probes. This technology is regarded as the best in its class and has been consistently winning market share in the United States and globally over the last decade.

    So much so, every day an estimated 80,000 patients are protected from the risk of cross contamination because the ultrasound probe has been high-level disinfected with trophon.

    Pleasingly, the company is aiming to expand its portfolio in the coming years with the launch of new products targeting unmet needs. If these are even half as successful as the trophon system, then the future will be very bright for Nanosonics.

    UBS currently has a buy rating and $7.00 price target on its shares

    Temple & Webster Group Ltd (ASX: TPW)

    Another ASX growth share to consider buying is Temple & Webster. It is one of Australia’s leading online retailers with a focus on furniture and homewares.

    It has been growing at a rapid rate in recent years and appears well-placed to continue this trend for the foreseeable future. Particularly given the shift to online shopping, which is still largely in its infancy for furniture and homewares.

    In fact, in February Goldman Sachs suggested that the company could grow its sales at a compound annual growth rate (CAGR) of 42% and EBITDA by a CAGR of 66% between FY 2020 and FY 2023.

    In light of this, it will come as no surprise to learn that the broker put a buy rating and $12.35 price target on its shares.

    It commented: “We remain attracted to the structural tailwind of online commerce penetration and note that TPW has a leading position within its category which itself has a significant room for further online commerce growth. This should deliver well above market revenue growth and solid operating leverage over our forecast period.”

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    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 Nanosonics Limited and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Nanosonics Limited 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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