The Iress Ltd (ASX: IRE) share price will be on watch this morning after the company provided a market update.

At Monday’s market close, the financial software company’s shares finished the day at $9.93.

Let’s take a look and see what Iress announced in yesterday’s late market release.

Iress highlights progress on executing growth strategies

Iress shares could be on the move today after the company reported a number of positive updates.

In its announcement, Iress advised that the acquisition payments to the vendors of QuantHouse have now been completed. Approximately 8 months ahead of schedule, the company will now focus on integrating its teams and business strategy.

In addition, the deployment of Automated Super Administration is on track, with two clients scheduled to go live this year.

Iress noted that in Australia, 66% of services under its cloud transition program have now moved to the cloud. Year to date, global services migration has increased by 33% when compared to the 2020 financial year.

Two lenders are expected to go live in 2021 with the company’s mortgage lending software, MSO. Project activity and sales pipeline in the United Kingdom market is growing, further building on revenue and margin.

OneVue’s corporate and functional integration met all milestones in the quarter. Iress now plans to release the combined OneVue and Xplan offering in Q3 FY21.

Upgraded FY21 guidance

In further news that could boost Iress shares today, the company revised its net profit after tax (NPAT) guidance for FY21.

Due to the one-off provision release of QuantHouse earnout arrangements, NPAT is expected to exceed guidance by $14 million. As a result, FY21 NPAT in constant currency is forecast to be in the range of $70 million to $77 million. This is a significant uplift when compared to the previous projection in February of $56 million to $63 million.

Year-to-date performance up to 31 March 2020 is in line with current estimates. Iress revealed that pro forma segment profit is up by 2% against the prior corresponding period in constant currency. Pro forma NPAT is recording an 11% jump against the same time frame.

Iress chief executive Andrew Walsh commented on the company’s outlook, saying:

2021 promises to be a productive year for Iress as we implement major client projects, integrate OneVue with Xplan and increase our revenue and margin in the UK as the market continues to recover.

Our focus is clear. We continue to grow a highly competitive business with scale in key markets to drive margin expansion and increased returns on invested capital. We look forward to delivering on expectations as the year progresses.

Iress share price summary

The Iress share price has fallen by around 4.5% over the past 12 months. Year-to-date, the company’s shares have fared even worse, sitting around 7% down.

Based on the current share price, Iress presides a market capitalisation of roughly $1.9 billion, with 193.3 million shares outstanding.

More reading

• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended IRESS 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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A fund manager has singled out one small cap ASX-listed telecommunications business as capable of a 40% rise in share price to match its valuation.

Montgomery Investment Management founder Roger Montgomery told his subscribers that Macquarie Telecom Group Ltd (ASX: MAQ) is a structural winner.

“Structural winners might be part of a global megatrend, have long runways for growth, are disruptive and/or market share takers with a long-term total addressable market that is theirs to lose.”

The Macquarie share price has dipped in recent times. It started the year above $52 but was trading at $50.75 at the market close on Monday.

Priced as yesterday’s hero

Montgomery said the market seems to perceive Macquarie as a winner only during COVID-19 when demand for telco services was at a peak.

“Experience tells us the patient will be rewarded,” he said.

“Our valuation estimate is currently circa $70.”

If the share price rose to match Montgomery’s valuation estimate, it will have grown almost 40% from current levels.

The fund manager explained that Macquarie recently separated its cloud services/government (CSG) and data centres (DC) into distinct divisions to help investors see the growth in each.

The company also has a telecom arm, which sells data, voice and mobile.

“Data centres’ revenue and earnings are what we see as the crown jewels,” said Montgomery. 

“The wholesale customer at [data centre] IC3 East is expected to commission its contracted capacity next financial year and billings, and therefore earnings from it will emerge the year after.”

He isn’t the only analyst bullish on Macquarie. Just a few weeks ago, Canaccord Genuity rated the stock as a buy while slapping on a price target of $68.

About Macquarie Telecom

Just last month, Macquarie terminated its mobile wholesale supply deal with Telstra Corporation Ltd (ASX: TLS) to switch to rival Optus.

Macquarie was founded in 1992 upon the deregulation of the telecommunications industry in Australia.

The company listed on the ASX in October 1999 and currently has a market capitalisation of just over $1 billion.

More reading

• These ASX dividend shares have attractive fully franked yields
• 2 fantastic ASX 200 dividend shares rated as buys
• Is the Telstra (ASX:TLS) share price going to keep rising?
• Is the Telstra (ASX:TLS) share price better value than the TPG (ASX:TPG) share price?
• What’s next for the Telstra (ASX:TLS) share price?

Motley Fool contributor Tony Yoo 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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More reading

• Why these ASX shares just hit 52-week lows or worse
• 2 highly rated ASX growth shares for May
• These ASX dividend shares have attractive fully franked yields
• 5 things to watch on the ASX 200 on Tuesday
• 2 fantastic ASX 200 dividend shares rated as buys

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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Although the S&P/ASX 200 Index (ASX: XJO) is closing in on a record high, not all shares are performing as positively.

Two ASX shares that have just fallen to 52-week lows or worse are listed below. Here’s why they are down in the dumps:

A2 Milk Company Ltd (ASX: A2M)

The a2 Milk share price hit a multi-year low of $7.13 on Monday. Investors have been selling the infant formula company’s shares for a number of reasons.

The main one is the fact that it has downgraded its earnings guidance multiple times during the last 12 months. This has been driven by significant weakness in the daigou channel and management’s failure to accurately predict its recovery.

Unfortunately for shareholders, one of the most supportive brokers, Morgans, has lost faith and downgraded its shares last week.

It notes that ecommerce platform pricing in China isn’t improving and in Australia it has seen retailers and pharmacies discounting stock to clear ageing inventory.

Morgans feels this could be bad news for the company. It explained: “A2M needs pricing to rise so that reseller margins improve and therefore demand for its products increase. Our industry feedback suggests that there has been no real improvement in the underlying operating environment.”

As a result, it thinks that its FY 2021 guidance will be difficult to achieve.

Adore Beauty Group Limited (ASX: ABY)

The Adore Beauty share price dropped to a record low of $4.52 on Monday. This means the online beauty retailer’s shares are now trading 33% lower than their October IPO listing price of $6.75.

Several disappointing updates from ecommerce companies this month have weighed heavily on investor sentiment and put significant pressure on the Adore Beauty share price.

This is despite the company’s performance in FY 2021 tracking ahead of its prospectus forecasts. For example, during the first half of FY 2021, the company had almost 800,000 active customers. From these, it generated revenue of $96.2 million, up 85% on the prior corresponding period.

Morgan Stanley appears to believe the weakness in the Adore Beauty share price is a buying opportunity. It currently has an overweight rating and $8.75 price target on its shares.

More reading

• Bubs (ASX:BUB) share price hits multi-year low but could keep sinking
• This broker thinks you should buy the Kogan (ASX:KGN) share price dip
• Top brokers name 3 ASX shares to sell next week
• 2 quality ASX growth shares rated as buys
• 3 outstanding ASX growth shares

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 owns shares of and has recommended A2 Milk. 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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Are you looking to add a growth share or two to your portfolio next month? Then take a look at the two ASX shares listed below.

Here’s why they could be growth shares to buy right now:

Afterpay Ltd (ASX: APT)

This buy now pay later (BNPL) provider could be a good option for growth investors.

It has been growing at a rapid rate over the last few years and this has continued in FY 2021. For example, during the third quarter, Afterpay reported a 104% increase in underlying sales to $5.2 billion.

This strong performance was driven by a 75% increase in active customers globally to 14.6 million and increasing customer frequency across all regions.

The good news is that the company still has a significant runway for growth over the next decade thanks to the lucrative US and UK markets and its expansion across Europe and Asia.

In addition to this, the company is expanding beyond BNPL into savings accounts and cash flow tools with its Afterpay Money app. That is scheduled to launch early in FY 2022 and could be another key driver of growth in the future.

One broker that is positive on the company is Morgan Stanley. Its analysts have recently put an overweight rating and $149.00 price target on its shares.

Pro Medicus Limited (ASX: PME)

Another growth share to consider is Pro Medicus. It is a healthcare technology company that provides healthcare organisations with radiology information systems, picture archiving and communication systems, and advanced visualisation solutions.

Like Afterpay, it has been a strong performer during the pandemic. In February the company reported a 7.8% increase in revenue to $31.6 million and a 25.9% jump in underlying profit before tax to $18.76 million.

Positively, since the end of the first half, the company has won a number of lucrative long term contracts with major healthcare institutions. It also still has a large pipeline of sales opportunities that could be converted in the near future, particularly given its industry-leading technology and the structural shift away from legacy systems. 

Goldman Sachs is a fan. The broker currently has a buy rating and $53.80 price target on its shares.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• If Afterpay leaves the ASX, what happens to the shares?
• 5 things to watch on the ASX 200 on Monday
• Fundie reveals why the Pro Medicus (ASX:PME) share price is still a buy
• The ASX healthcare shares Goldman Sachs rates as a buy

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Pro Medicus Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Pro Medicus 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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Unfortunately for income investors, interest rates are still at ultra low levels and unlikely to improve in the near term.

But don’t worry because the Australian share market is home to countless dividend shares offering attractive yields. Two to consider are listed below, here’s what you need to know about them:

Accent Group Ltd (ASX: AX1)

Accent is a retail group with a collection of popular footwear-focused store brands. These include stores such as HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete’s Foot. 

But it is unlikely to stop there. Accent is not afraid to test the waters with new ideas. In fact, just last month the company launched a new brand called 4 Workers. If this launch is a success, the company is likely to throw capital behind the brand and grow its nationally. If it isn’t a success, it will move onto the next idea.

Positively, this strategy has been working wonders. Thanks to the popularity of its brands and its expanding footprint, Accent has been growing at a consistently solid rate over the last few years. 

In addition to this, the company has just bolstered its offering with the acquisition of Glue Store. This opens up Accent to the growing street fashion market, complementing its existing businesses.

Citi currently has a neutral rating but $3.10 price target on its shares. The broker is forecasting dividends of 12 cents per share and 12.5 cents per share over the next two years. Based on the latest Accent share price of $2.90, this represents fully franked yields of 4.1% and 4.3%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to consider is Telstra. Although the telco giant’s shares have been on a strong run in recent months, it doesn’t appear to be too late to invest.

Thanks to its improving outlook due to the T22 strategy and its separation and asset monetisation plans, the Telstra share price has been tipped to climb meaningfully higher in 2021 by a number of leading brokers.

One of those is Goldman Sachs. Its analysts have a buy rating and $4.00 price target on the company’s shares. 

The broker is also forecasting 16 cents per share fully franked dividends for the foreseeable future. Based on the latest Telstra share price, this will mean dividend yields of 4.7%.

More reading

• 2 fantastic ASX 200 dividend shares rated as buys
• Is the Telstra (ASX:TLS) share price going to keep rising?
• Is the Telstra (ASX:TLS) share price better value than the TPG (ASX:TPG) share price?
• Got money to invest for dividends? Here are 3 ASX shares
• What’s next for the Telstra (ASX:TLS) share price?

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

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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index dropped 0.2% to 7,045.6 points.

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

ASX 200 expected to rise

The Australian share market looks set to bounce back on Tuesday following a solid night start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 10 points or 0.15% higher this morning. In the United States, the Dow Jones dropped 0.2% but the S&P 500 rose 0.2% and the Nasdaq climbed 0.9% to a record close.

Oil prices soften

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could trade lower today after oil prices softened. According to Bloomberg, the WTI crude oil price is down 0.35% to US$61.92 a barrel and the Brent crude oil price has fallen 0.7% to US$65.67 a barrel. Oil prices dropped after surging COVID-19 cases in India sparked fuel demand concerns.

IRESS update

The IRESS Ltd (ASX: IRE) share price will be on watch today following the release of an after market update. The financial technology company has upgraded its net profit after tax guidance for FY 2021 to between $70 million and $77 million from $56 million and $63 million. This follows IRESS concluding its QuantHouse earnout ahead of schedule, enabling the full integration of the business.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price pushed higher overnight. According to CNBC, the spot gold price is up 0.2% to US$1,780.80 an ounce. Gold was up and down during the session ahead of the US Federal Reserve meeting later this week.

Tech shares on watch

Australian tech shares including Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) will be worth watching closely today. This follows a very positive night of trade on the tech-focused Nasdaq index. The Nasdaq was the standout performer and hit a record close ahead of major earnings updates by Amazon, Apple, Google, Microsoft, and Tesla this week.

More reading

• ASX 200 dips, NIB soars, Perenti rises
• If Afterpay leaves the ASX, what happens to the shares?
• These are the 10 most shorted shares on the ASX
• ASX 200 flat: NIB update impresses, Altium upgraded
• 5 things to watch on the ASX 200 on Monday

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 owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended IRESS 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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Are you wanting to boost your income portfolio with some ASX 200 dividend shares in May?

Then you might want to take a look at the blue chip dividend shares listed below. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is this mining giant. It could be a great option due to its world class operations and favourable commodity prices.

This is particularly the case for its iron ore operations, which should be generating significant free cash flow thanks to an iron ore price nearing US$200 per tonne.

One broker that is positive on the mining giant is Goldman Sachs. It currently has a buy rating and $53.40 price target on its shares.

Goldman is expecting a strong second half, leading to a full year dividend of $2.31 per share in FY 2021. Based on the current BHP share price of $45.65, this equates to fully franked 4.8% and 4.6% dividend yields.

Telstra Corporation Ltd (ASX: TLS)

A second ASX 200 dividend share to look at is Telstra. It could be a great option due to its increasingly positive outlook.

This is being driven largely by its Telstra’s T22 strategy, which is creating a much leaner business, and its leadership position in 5G. Another positive is that Telstra is aiming to unlock value by monetising assets and splitting into three separate entities.

Ord Minnett is a fan of the plan and believes the Telstra share price is in the buy zone. It currently has a buy rating and $4.05 price target on its shares.

It is also expecting Telstra to continue to pay a 16 cents per share fully franked dividend for the foreseeable future. Based on the latest Telstra share price, this represents an attractive 4.7% dividend yield.

More reading

• What’s behind the rising BHP (ASX:BHP) share price today?
• Is the Telstra (ASX:TLS) share price going to keep rising?
• Is the Telstra (ASX:TLS) share price better value than the TPG (ASX:TPG) share price?
• Meet the real ASX winners from record high Chinese steel prices
• What’s next for the Telstra (ASX:TLS) share price?

Motley Fool contributor James Mickleboro 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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There are signs of value emerging in the beaten down AMP Limited (ASX: AMP) share price, but you’d be hard pressed to find a broker who would recommend the ASX share as a buy.

The AMP share price is hovering at record lows and the sum of its parts are now greater than its market value.

That’s the view of JPMorgan, which put a 12-month price target of $1.35 on the embattled ASX wealth manager.

Sum-of-parts worth more than the AMP share price

This implies a close to 20% upside for the AMP share price and the broker noted other positives for this ASX underperformer.

“There is significant downside baked into the market valuation of AMP. Wealth Management arguably has virtually no ascribed value assuming reasonable multiples for other divisions),” said JPMorgan.

“A key point of uncertainty remains what may be achievable on AMPCI [AMP Capital Investors] (valued at 15x here).”

The broker noted that other real asset businesses typically trade on a 20 times one-year forward valuation. Of course, these other businesses didn’t take a big reputational hit like AMP did.

AMP share price ignoring good news

But the market also appears to be ignoring other positives in AMP’s latest quarterly update. This includes a slowing in the rate of decline in capital flows.

AMP’s Australian Wealth Management business suffered outflows of $1.5 billion, which was better than JPMorgan’s estimate of $1.7 billion. Assets under management in the quarter of $125.7 billion was also ahead of the broker’s circa $124 billion.

Meanwhile, loans written by AMP Bank grew slightly to $20.8 billion in the March quarter. This was also slightly better than what JPMorgan had forecast.

Value emerging but brokers stay cautious

Despite the valuation support and relatively improved performance from parts of AMP’s business, JPMorgan is sticking to its “neutral” recommendation.

Other brokers have largely followed suit as they mull the many risks facing the AMP share price and the wave of negative investor sentiment.

UBS has put a 12-month price target of $1.45 on the AMP share price, while Citigroup reckons fair value is at $1.25 a pop.

Foolish takeaway

Both these brokers have a “neutral” equivalent rating on the AMP share price. This ASX share is the worst performer among its peers, which includes the Platinum Asset Management Ltd (ASX: PTM) share price, Magellan Financial Group Ltd (ASX: MFG) share price and Macquarie Group Ltd (ASX: MQG) share price.

It would take a brave broker to dare call the AMP share price a “buy”, and an even braver investor to snap up the apparent bargain.

More reading

• What could APRA’s climate guidance mean for ASX bank shares?
• History is on the side of the battered AMP (ASX:AMP) share price as it plans its demerger
• AMP (ASX:AMP) is the most traded ASX 200 share today
• Why Accent, AMP, De Grey, & Nuix shares are charging higher
• ASX 200 down 0.1%: Kogan crashes, AMP’s demerger plans, Telstra strengthens 5G network

Motley Fool contributor Brendon Lau owns shares of AMP Limited and Macquarie Group Limited. 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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The Copper Mountain Mining Corporation CDI (ASX: C6C) share price surged higher today after the company released its quarterly activities report outlining huge profit growth. 

The Copper Mountain share price was up 8%, trading at $4.02 per share at the market close.

Copper Mountain’s revenue increases

The Copper Mountain share price has more than doubled in 2021 alone, and its business performance shows why investors have been jumping on the bandwagon.

Copper Mountain posted record quarterly production in the first quarter of the calendar year 2021 of 30.4 million pounds of copper equivalent (comprised of 25.5 million pounds of copper, 8,187 ounces of gold, and 160,484 ounces of silver).

It also recorded quarterly revenue for Q1 2021, totalling $162.2 million, from the sale of 27.5 million pounds of copper, 8,553 ounces of gold and 161,657 ounces of silver, net of pricing adjustments.

It made a record gross profit of $96.3 million and net income of $52.1 million, resulting in earnings per share (EPS) of $0.18.

The company’s cash and cash equivalents at the end of Q1 2021 was $137.1 million, up $100.9 million from the previous corresponding period. Cash flow from operations for Q1 2021 was $79.6 million.

After the quarter, Copper Mountain closed a US $250 million bond financing to refinance its existing debt, enabling the company to access 100% of the excess free cash flow from the mine.

Copper Mountain’s history and market presence

Copper Mountain is a mid-tier copper-gold producing company that was incorporated on 20 April 2006. The company owns 75% of the Copper Mountain Mine in Canada through a subsidiary, and Mitsubishi owns the remaining 25%.

The Copper Mountain Mine is a conventional open-pit, truck and shovel operation located 20km south of Princeton in British Columbia and 300km east of the port of Vancouver. Production of copper concentrate started there in 2011. 

The Copper Mountain share price is listed on the ASX because the miner also owns the Eva Copper Project. This a permitted development-ready copper-gold project in Queensland, Australia and an extensive 210,000 hectare highly prospective land package within the Mount Isa area. 

Copper Mountain share price snapshot

The Copper Mountain share price has now gained 119% since the start of the year, is up 813% over the past 12 months. 

More reading

• Why the BHP (ASX:BHP) share price is surging today

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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