The Mesoblast Limited (ASX: MSB) share price rocketed on news that the company’s drug, rexlemestrocel-L, is showing promising signs.

The Mesoblast share price closed today’s trade 14.29% higher at $2.56 per share. Notably, today is the highest its shares have been since the failure of remestemcel-L in treating COVID-19 patients was announced in late December.

Why is the Mesoblast share price soaring?

Mesoblast announced that a single dose of its drug rexlemestrocel-L provides a reduction in heart attacks, strokes and cardiac death in patients with chronic heart failure.

The results come from its landmark, randomised controlled phase 3 trial with 537 patients. Of the patients, who all had chronic heart failure, some received rexlemestrocel-L and others received a control sham. The study found that a single dose of the drug resulted in a substantial and durable reduction in heart attacks, strokes, and cardiac deaths. The patients were monitored for 30 months after the dose was administered.

Since the existing therapies have very minimal benefit on these same endpoints, Mesoblast claims that these results may signal a breakthrough in addressing certain unmet needs with patients who have chronic heart failure.

Heart attacks and strokes were reduced by 60% from a single dose, while incidence of death from rexlemestrocel-L was also reduced by the same amount. Across the board the drug reduced all 3 outcomes of death by 30%.

This comes as a sharp turnaround from the news Mesoblast released on 15 December that there was no reduction in the recurrent non-fatal decompensated heart failure events from the drug, which caused its share price to fall by 15%.

Chronic heart failure affects 6.5 million people in the US and 26 million globally, with those numbers increasing in prevalence and incidence every year.

About the Mesoblast share price

The Mesoblast share price was particularly volatile in 2020, rising as high as $5.70 and dropping as low as $1.02. Nonetheless the recent news has pushed shares in the company higher, resulting in a 1-year return of 11.79%.

More reading

• ASX 200 drops 0.9%
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• Mesoblast (ASX:MSB) share price could be facing more pressure in 2021
• Do ASX mining companies carry the Australian share market?
• These are the 10 most shorted shares on the ASX

Motley Fool contributor Daniel Ewing 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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ASX uranium shares are once again becoming a hot topic.

Somewhat ironically, investing in uranium miners is controversial in Australia. I say that because Australia is believed to have the world’s largest uranium resources. At least for resources that are recoverable at a reasonable cost.

Yet with no nuclear power generation of its own, and no nuclear-powered naval vessels, many Aussie investors view uranium as a dangerous energy source best relegated to the last century.

Now there are good reasons to be cautious around uranium. It can, after all, be enriched for use in nuclear missiles. And the waste remains radioactive for many centuries.  

On the flipside, however, uranium produces power without any carbon emissions. And in a world intent on de-carbonising without turning off the power, some analysts are forecasting a fresh bull run for uranium.

The case for a 2021 uranium bull market

Ben Cleary is a portfolio manager at Tribeca Investment Partners. Cleary has a decidedly bullish outlook for many hard commodities this year. And, as the Australian Financial Review reports, Cleary believes uranium could enter a bull market in 2021.

According to Cleary:

Things like uranium, which have no carbon footprint, are starting to get some recognition. Oil can double, uranium can go up five times. It’s that structural demand and supply mismatch – last year, for example, there was 200 million pounds of [uranium] consumption and 100 million pounds was mined.

The difference between what was consumed and what was mined was made up from existing stockpiles. But those stockpiles will only last so long if demand remains in excess of new supply. Economics 101 dictates that any prolonged period of excess demand without a matching increase in supply will drive prices higher.

Cleary tipped 2 All Ordinaries Index (ASX: XAO) uranium miners he believes are well-placed to benefit from an increase in uranium prices: Bannerman Resources Limited (ASX: BMN) and Boss Energy Ltd (ASX: BOE).

Boss Energy and Bannerman Resources share price and company snapshots

Boss Energy (formerly Boss Resources) holds interests in the Honeymoon uranium project located in South Australia.

The Boss Energy share price fell hard today, down 9.0%. That leaves it flat for the 2021 calendar year. Over the past 12 months, though, Boss Energy shares have gained 100%.

Bannerman Resources focuses on the development of large open-pit uranium operations. The majority of its interest are in the Etango Uranium Project in Namibia, Africa.

The Bannerman Resources share price also dropped today, down 7.7%. Shares are still well into the green for the year though, up 20% since 4 January. Over the past 12 months Bannerman Resources shares have gained a whopping 200%.

More reading

• These 2 ASX healthcare shares popped today
• Ex-COO of ASX giant arrested in Sydney
• It’s electrifying: Vulcan Energy (ASX:VUL) share price up 23% today
• Genesis Energy (ASX:GNE) share price drops 5% today after closing at 52-week high last week
• The Marley Spoon (ASX:MMM) share price is up over 700% in 12 months

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 All Ordinaries Index (ASX: XAO) slid down close to a percent today, with the healthcare sector doing the same. At the time of writing, the All Ords is down 0.96% and the healthcare sector has dipped 1.2%.

Regardless of this lacklustre performance, these 2 ASX healthcare shares are having a pretty good day. 

Anteris Technologies Ltd (ASX: AVR)

The Anteris share price has surged 18.60% today to reach $5.10 per share. This gain comes after a tough year, with the Anteris share price dropping more than 62% over the past 12 months.

The company’s mission is to create the world’s most durable heart valve. While no significant news hit the wires today, the company continues to steadily progress its heart valve technology.

In March 2020, Anteris announced the first implantation of its ADAPT-treated single-piece 3D aortic valve in a patient with aortic stenosis.

At the start of this year, the company confirmed that it had entered into a short-term facility for a $1,220,000 advance, based on its forecasted research & development (R&D) tax incentive. Anteris followed this statement up two days later announcing an additional $20 million in secured funding.

According to Anteris, the company continues to focus on delivering “next generation technologies that help healthcare professionals create life-changing outcomes for patients.”

CleanSpace Holdings Ltd (ASX: CSX)

The CleanSpace Holdings share price is currently up by 7.29%, trading at $7.51 at the time of writing. The company engages in the design and manufacturing of respiratory protection equipment (RPE) for healthcare and industrial employers internationally.

The purpose of RPE is to protect people from inhaling hazardous substances in the air. The Sydney-based company was founded by a team of biomedical engineers in 2009. Products sold by CleanSpace include the CleanSpace Halo for the healthcare market and the CleanSpace2, CleanSpace Ultra and CleanSpace Ex designed for industrial markets. 

While it’s been a rocky ride over the previous 12-month period, the CleanSpace share price has just managed to inch into the green, returning 0.67% over the past year.

In its most recent trading update, CleanSpace upgraded its first half FY21 revenue expectations to be in the range of $39 million–$41 million for the six months ended 31 December 2020.

More reading

• 2 more small cap ASX shares to watch in 2021
• Why the CleanSpace (ASX:CSX) share price is climbing today

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CleanSpace Holdings 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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(ASX: CIM) chief operating officer David Savage has been arrested” style=”float:left; margin:0 15px 15px 0;” />

Former Cimic Group Ltd (ASX: CIM) chief operating officer David Savage has been arrested as he exited hotel quarantine in Sydney on Monday.

Australian Federal Police officers detained the 60-year-old over allegations he was involved in a major bribery scandal with Iraqi government officials back when Cimic was called Leighton Holdings.

Savage will face Sydney Central Local Court later on Monday, facing two charges of knowingly providing misleading information.

The high-flying executive was living in France but returned to Australia on 27 December, when a border alert was triggered.

Like all overseas arrivals, he went into mandatory COVID-19 quarantine in a Sydney hotel. When the 2-week period was complete on Monday, police made an immediate arrest.

Another ex-Cimic executive, Russell Waugh, was arrested in November over the same scandal.

The arrests come after a complicated 9-year investigation by the Federal Police, which uncovered about US$77.6 million of “suspicious payments” made to Iraqi Ministry of Oil and the South Oil Company of Iraq officials.

Leighton at the time was trying to win two contracts worth US$1.46 billion.

The police were tipped off in November 2011 about the allegedly criminal payments.

Most senior execs ever arrested for foreign bribery

Savage and Waugh, according to The Sydney Morning Herald, are the most senior executives from an ASX-listed business to be charged with foreign bribery violations since the law came into being in 1999. 

The AFP enquiry resulted in more than 2 million documents seized and harvested evidence from 10 countries.

AFP deputy commissioner Ian McCartney said back in November his team had shown “outstanding resilience over the past 9 years”.

“They persevered through the painstaking process of piecing this jigsaw together from facts and allegations of alleged corruption that reached internationally, to a level that allowed us to bring this before the court in Australia.”

AFP did not rule out further arrests. A third former Cimic executive, Peter Cox, is also reportedly sought by police but believed to be living in Asia.

Cimic announced to the ASX back in November that it “continues to cooperate with all official investigations”.

The Cimic share price is down 1.6% to $25.18 at the time of writing.

More reading

• Cimic (ASX:CIM) share price slides lower after new CFO announced
• ASX 200 drops 1.4%
• Cimic (ASX:CIM) share price wobbles on $2.2 billion sale news
• ASX 200 down 0.6%: Flight Centre sinks, big four banks lower, Ramelius jumps
• Why the CIMIC (ASX:CIM) share price is pushing higher

Motley Fool contributor Tony Yoo 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 Vulcan Energy Resources Ltd (ASX: VUL) share price rocketed 23.51% today. Shares are now in a trading halt pending a further announcement.

Vulcan’s share price has risen by 2,924% over the past 12 months, a no doubt exhilarating ride for Vulcan shareholders. A steady stream of announcements regarding the company’s European lithium project has largely been the driver for the gains.

The road so far for Vulcan Energy 

Early site investigations

Vulcan entered 2020 with the largest Joint Ore Reserves Committee (JORC)-compliant lithium resource in Europe. From there, the company got underway with building an experienced team and conducting studies of the resource.

On 21 February 2020, Vulcan indicated that scoping studies confirmed the potential for a combined lithium and renewable energy production project – enabling a net-zero carbon footprint.

For the following few months, the company went on an Australian virtual roadshow. While doing so, it continued its pre-feasibility studies and raised $4.8 million to facilitate further development.

July delivered two expert chemical and mechanical engineers to the Zero Carbon Lithium team.

In early August, the company announced that it had completed direct lithium extraction (DLE) tests. The DLE results from the Upper Rhine Valley geothermal brine showed lithium recovery rates in excess of 90%.

Experienced appointments to Vulcan

On 26 August 2020, Vulcan announced that Dr Kathrina Gerber would bring her extensive lithium-ion battery expertise to its executive team as project manager.

Shortly after in September, it was announced that ex-Tesla Inc (NASDAQ: TSLA) director Jochen Rudat would join Vulcan. A former direct report to Elon Mush, Mr Rudat was integral in the launch of Tesla’s Models S, 3, X, and Roadster in the Central European region. 

Mr Rudat’s role will be to explore offtake partnerships in the electric vehicle and battery sector in Europe.

Regulatory changes

More recently, Vulcan updated the market to regulatory propositions in Germany, and Europe more broadly, that are expected to be advantageous to the company. Germany’s Amended Renewable Energy Sources Act will reduce the decrease in the rate for prices on geothermal energy fed into the grid.

Additionally, the European Commission proposed a maximum carbon footprint threshold that manufacturers would need to comply with.

Today, the company is in a trading halt, pending an announcement in relation to a pre-feasibility study for its Zero Carbon Lithium project.

What next?

Vulcan shares will remain in the trading halt until the earlier of the commencement of normal trading on Wednesday 13 January 2020, or until the release of the company’s announcement.

Based on its share price at the time of the trading halt coming into effect, Vulcan commands a market capitalisation of $398.66 million.

More reading

• 2 ASX shares that ran over 1,500% in 2020
• These 6 ASX companies just started measuring ESG
• The Vulcan (ASX:VUL) share price just hit an all-time high

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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The Genesis Energy Ltd (ASX: GNE) share price has dropped almost 5% to $3.50 today, after closing last week’s trading at a 52-week high of $3.68.

The Genesis Energy share price is falling today amid a broader fall in ASX energy shares. Shares in Contact Energy Limited (ASX: CEN) fell by 7%, while the Energy Resources of Australia Limited (ASX: ERA) share price also dropped 6.5% today.

Let’s take a look at what’s been driving the Genesis Energy share price in the last 6 months.

Solid FY20 results

The company’s share price has been riding on the back of solid FY20 results, in which it reported net profit after tax (NPAT) of $46 million. This was despite challenging market conditions due to the coronavirus pandemic.

Genesis followed up with another solid update for the first quarter of FY21 in October, when it reported 3.4% increase on its retails sales versus prior corresponding period.

As a result, the Genesis share price has been making grounds in the last 6 months, rising by 30% in that period.

Headwinds ahead

Genesis advised that longer term earnings faced material headwinds as depletion of its Kupe oil and gas field accelerates. Kupe currently contributes about a quarter of group earnings before interest, tax, depreciation, and ammortisation (EBITDA).

Genesis owns a 46% share in the Kupe gas field located in the Taranaki Basin in New Zealand. Kupe provides the company with a reliable supply of gas to its thermal power plants, and underpins its dual-fuel (electricity and gas) offering to retail customers.

In the company’s annual report, Genesis advised that its earnings from Kupe could end within 10-15 years, as resources in the field begin to deplete. As such, there is a material risk to Genenis’ earnings and cash flow over the longer term. To counter this, the company said it will embark on new oil and gas discoveries.

In November, the company announced that it was undergoing a strategic review on Kupe, and an announcement is forthcoming at some point mid-2021. 

Brief take on Genesis Energy

Genesis generates around 17% of New Zealand’s electricity from its thermal and hydro power stations, and commands 26% of the Kiwi retail electricity market.

New Zealand is unique, with 80% of power coming from unsubsidised renewable energy as the country is blessed with good hydrological, geothermal and wind resources – combined with a small population.

The country’s natural blessings could become a double-edged sword for the company, however. According to its annual report, Genesis’s earnings were exposed to the ups and downs in rainfall levels. This is because its hydro-generator provides it with low-cost generation during times when there is sufficient rainfall, and vice versa when the weather is relatively dry.

About the Genesis Energy share price

The Genesis Energy share price has risen by 15% over the last 12 months, and 30% in the last 6 months, as mentioned.

The company commands a market cap of $3.84 billion.

More reading

• ASX company stops Kakadu uranium production
• The Energy Resources (ASX:ERA) share price is falling. Here’s why.
• ASX 200 rose 1.6%
• ASX 200 drops 1.1%
• Here’s how ASX renewable energy shares have performed in 2020

Motley Fool contributor Eddy Sunarto 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 Marley Spoon AG (ASX: MMM) share price has been one of the best performers on the Australian share market over the last 12 months.

During this time, the meal kit delivery company’s shares have recorded a staggering gain of 720%.

Why is the Marley Spoon share price up over 700% in 12 months?

Investors have been fighting to buy the company’s shares due to it experiencing a surge in sales during the pandemic.

For example, during the third quarter of FY 2020, Marley Spoon reported very strong growth across all geographic regions. This was driven by demand for its meal kits from both new and existing customers, leading to positive growth momentum and favourable customer acquisition costs.

For the three months ended 30 September, Marley Spoon achieved revenue of 69.3 million euros, which was up 109% on the prior corresponding period.

They key driver of its growth was its US operations, which accounted for almost half of its revenue. The US business recorded revenue of 34.2 million euros, up 163% in constant currency terms. Management noted that this was driven by strong growth from its Martha & Marley Spoon and Dinnerly brands. It achieved third quarter earnings before interest, tax, depreciation and amortisation (EBITDA) of 0.7 million euros.

Similarly strong growth was achieved in Australia, with revenue increasing 84% to 25.3 million euros. These operations were even more profitable, with operating EBITDA coming in at 3.4 million euros for the quarter.

Over in Europe, the company posted an 83% increase in revenue to 9.8 million euros but an EBITDA loss of 0.6 million euros.

At the end of the period, the company had 362,000 active customers across the three markets. This was 86% higher than a year earlier. 

What about the fourth quarter and full year?

Also getting investors excited has been the company’s guidance for the full year. 

Management is expecting its solid growth to continue and has provided FY 2020 revenue guidance in the range of 90% to 100% year on year.

And with the company recently raising $56 million via a fully underwritten placement, Marley Spoon appears well-placed to invest in its growth in FY 2021.

One broker that appears confident in its future is Cannacord Genuity. Late last year it put a buy rating and $4.20 price target on its shares. This compares to the latest Marley Spoon share price of $2.78.

More reading

• 3 ASX shares that were unlikely winners in 2020
• Why tech investors should watch the Tesserent (ASX:TNT) share price next year

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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The Pilbara Minerals Ltd (ASX: PLS) share price has already run up by almost 25% this year and has surged 250% since October 2020. We take a closer look at what the miner has been up to. 

Lithium spot price recovery 

Much like booming iron ore prices sending the Fortescue Metals Group Limited (ASX: FMG), BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) share prices to record highs, recovering lithium prices has initiated a broad recovery in ASX lithium shares. 

On 6 January 2021, Pilbara reported a record December quarter 2020 shipment of 70,609 dry metric tonnes (dmt) on improving spodumene concentrate demand conditions. The update highlights a material uplift in lithium chemicals pricing within China, with the Platts battery grade lithium carbonate pricing assessment up 35% to date from its lows in August 2020. 

Previously, in the company’s 2019 annual report, annual spodumene concentrate sales were achieving a selling price of US$674/dmt. By July 2020, prices had further weakened to US$410–423/dmt. 

Pilbara pushing ahead 

While a lithium price recovery is still in its early days, Pilbara has gone full steam ahead with an acquisition under the belt, focusing on cost and moving from moderated production towards full production. 

Back on 14 December 2020, the company launched a $240 million equity raising to acquire Altura Mining Limited (ASX: AJM). Pilbara neighbours Altura’s operations, so the acquisition will allow the group to unlock significant exploration, logistics and infrastructure synergies. 

From a cost perspective, many ASX lithium shares such as Orocobre Limited (ASX: ORE) have been producing at or below cost amidst weak lithium prices.

Pilbara has been able to maintain low production costs despite its plants running at lower utilisation levels. In its September 2020 quarterly update, the company’s unit cash operating costs stood at US$355/dmt, with unit costs trending towards its target of US$320–350/dmt. 

Pilbara Minerals managing director and CEO Ken Brinsden is pleased with how the new year has turned out. Looking ahead, he commented:

The significant amount of work we have undertaken over the past 18-months in improving lithia recoveries, reducing operating costs and refinancing our senior debt facility, together with the impending acquisition of the neighbouring Altura Lithium Project, means that Pilbara Minerals is well positioned to respond to a recovery in the lithium market and capitalise on improvements in market conditions.

At the time of writing, the Pilbara share price is up 0.64% for the day at $1.10 per share.

More reading

• 5 top ASX mining shares for dividends and growth in 2021
• 7 ASX shares to buy for 2021
• Are ASX lithium shares staging a comeback in 2021?
• 2 quality ASX dividend shares with 6%+ yields
• These ASX dividend shares have 10% and 4% yields

Motley Fool contributor Lina Lim 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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Commodity prices across the board have surged in recent months, and energy commodities are no exception. Crude oil, thermal coal and liquified natural gas (LNG) have pushed higher, but ASX energy shares seem to be lagging behind. 

Energy commodities bouncing back

Brent crude oil has staged a significant recovery to the US$52 per barrel level. This compares to being range bound around the US$40 mark since June 2020.

Thermal coal prices have increased over 50% during the December 2020 quarter, brought on by China ramping up imports on non-Australian thermal coal. 

LNG prices have also surged to a six-year high of around US$15 per million British thermal units (MMbtu), from US$2/MMbtu in mid-2020. 

A number of supply-demand, weather and political forces continue to work in favour of sturdy energy prices. Since March 2020, key energy producers including OPEC+ and Glencore have focused on managing supply and curbing greenfield and expansion projects.

More recently, a number of regional economies have also emerged from COVID-19-related lockdowns, which could help demand-side fundamentals.

Bell Potter upgrades ASX energy shares 

Bell Potter reiterated buy recommendations for a series of ASX energy shares on 7 January 2021.

Beach Energy Ltd (ASX: BPT) had a share price target of $2.29, or an 19% upside to its closing price on Friday of $1.92.

The Cooper Energy Ltd (ASX: COE) share price target was 47 cents. This represents an upside of 17.5% compared to its closing price last week of 40 cents. 

Finally, Senex Energy Ltd (ASX: SXY) also received a buy recommendation with a price target of 40 cents. The Senex share price closed at 33 cents last week. 

These companies received buy recommendations on the basis that they each had uncontracted medium- to long-term production and are positioned to expand their existing assets to meet increased demand.

Other preferred ASX energy shares that received speculative buy ratings from Bell Potter included Byron Energy Ltd (ASX: BYE) with a price target of 42 cents, Comet Ridge Ltd (ASX: COI) with a 17 cent price target and Blue Energy Limited (ASX: BLU) with a 17 cent price target as well. These companies are far more speculative in nature, with market capitalisations of less than $200 million. 

More reading

• 5 things to watch on the ASX 200 on Friday
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Motley Fool contributor Lina Lim 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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There are some ASX shares that could be worth looking into.

Businesses that are growing may be able to deliver satisfactory investment returns over the longer-term.

Not every business is growing, particularly during this difficult COVID-19 period.

Here are three ASX shares to think about:

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

This is an exchange-traded fund (ETF) ASX share which is focused on high-quality businesses that are listed in the United States.

VanEck, which is the ETF provider, says that the ETF gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages according to Morningstar’s equity research team. In other words, the businesses have “wide economic moats.”

The target companies of the ETF must be trading at attractive prices relative to Morningstar’s estimate of fair value, with the research used being Morningstar’s rigorous equity research process.

At the end of December 2020, its largest positions were John Wiley & Sons, Charles Schwab, Corteva, US Bancorp, Wells Fargo, Constellation Brands, Bank of America, Boeing, Yum! Brands and Cheniere Energy.

Despite the ETF’s management fees of 0.49% per annum, VanEck Vectors Morningstar Wide Moat ETF has delivered net returns of 16.6% per annum over the past five years, outperforming the S&P 500.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an ASX share which specialises in facilitating electronic donations. Its key client base is large and medium US churches. These churches receive a large amount of donations each year. The company is aiming for a 50% market share of this sector, which could see it generate US$1 billion of annual revenue eventually.

In the most recent result, the FY21 half-year report, Pushpay processed US$3.2 billion of donation volume – this was growth of 48%. Its operating revenue grew 53% to US$85.6 million in the same result.

Fund manager Ben Griffiths from Eley Griffiths said: “Over the last 12 months it has become clear Pushpay is at an inflection point for both cashflow and earnings. Under the stewardship of CEO Bruce Gordon, Pushpay has transitioned from a founder-led investment phase into an optimize/monetization phase. What is more surprising is the very conservative nature of the accounts (a rarity in small cap tech, outside Iress Ltd (ASX: IRE)). We believe the next few years for Pushpay will be rewarding and that COVID-19 will accelerate the already entrenched trend to digital giving/engagement from cash.”

In FY21 Pushpay is expecting to more than double its earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to a range of US$54 million to US$58 million.

According to Commsec, the Pushpay share price is valued at 22x FY23’s estimated earnings.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the businesses that have grown strongly since the onset of the pandemic and the rise of online shopping.

The ASX share revealed that growth has continued in FY21. It said that in FY21 between 1 July 2020 to 19 October 2020, revenue was up more than 138%. October’s revenue growth was more than 100%. The FY21 first quarter EBITDA was $8.6 million, which was more than the EBITDA from the whole of FY20.

Management plan to keep expanding its range, including the private label products. It will also keep investing in its technology, data and marketing. As it gets bigger it can invest even more into its customer proposition and advertising. The company described this as a virtuous cycle.

The ASX share is also bullish about its trade and commercial division over the long-term, which grew by 68% over FY20 despite a tough fourth quarter where many businesses reduced spending.

Temple & Webster wants to keep its customer satisfaction rates very high. It had a net promoter score of around 70% in FY20.

The company is committed to a high growth strategy to take advantage of the structural shift towards online, capitalising on both organic and inorganic opportunities.

According to Commsec, the Temple & Webster share price is valued at 39x FY22’s estimated earnings.

More reading

• 3 stellar ASX shares to buy in January
• 2 compelling ASX shares to buy in January
• 2 fantastic ASX growth shares that could beat the market in 2021
• The Pushpay (ASX:PPH) share price jumped 80% in 2020: Can it go higher?
• How to invest in ASX shares in a post-COVID world 

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX and Temple & Webster Group Ltd. The Motley Fool Australia has recommended IRESS Limited, PUSHPAY FPO NZX, Temple & Webster Group Ltd, and VanEck Vectors Morningstar Wide Moat ETF. 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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