Could the A2 Milk Company Ltd (ASX: A2M) share price be a buy right now? It has fallen to a 52-week low of around $10.

What’s going on?

The market continues to punish A2 Milk as it suffers with lower demand for its products.

It’s experiencing issues relating to infant formula demand. In August there was the flow-on effect of pantry de-stocking continuing into FY21 after the strong sales lift in the third quarter of FY21 and lower than anticipated sales to retail daigous in Australia, primarily due to reduced tourism from China and international student numbers.

In September it said that it had started to see additional disruption to the corporate daigou and reseller channel, particularly because of the prolonged stage 4 lockdown in Victoria, with a contraction beyond its expectations.

A2 Milk told the market in December that the effect of the disruption in the daigou channel, which represents a significant proportion of infant nutrition sales in the ANZ business, has proved to be more significant and protracted than was previously anticipated. This is also impacting sales in other segments.

The company had been expecting a stronger recovery in the FY21 second quarter. The recovery has been slower than expected.

A2 Milk is also seeing an impact in the cross border e-commerce channel (CBEC) because of the daigou troubles. The ASX share says that the daigou channel plays an important role in stimulating demand across multiple sales channels, including CBEC.

As a result of all of the above, and the recovery not being as strong as expected, its internal sales forecasts for both the daigou and CBEC channels for the rest of FY21 reduced in December. Its intention is to focus on reactivating the daigou channel in the second half.

Any positives?

A2 Milk revealed that its China mother and baby stores (MBS) growth remains very strong and it expects revenue growth in the first half to be above 40%.

The rolling 12-month rolling market value share in MBS is continuing to rise, it’s now at 2.3% at the end of October, with increases in both same store sales and the number of new stores in the first half.

A2 Milk also said that its liquid milk businesses in Australia and the USA have performed well through the first half, with both milk businesses posting “strong” growth compared to the first half of FY20.

Despite the problems with the daigou channel, A2 Milk said that it’s seeing a positive trend in indicators in China like awareness and intention to purchase. A2 Milk continues to see a positive impact from the marketing investment in activation and brand building activities.

A2 Milk guidance

A2 Milk is expecting FY21 first half revenue to be around NZ$670 million, with FY21 annual revenue in the range of NZ$1.4 billion to NZ$1.55 billion. The FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) margin is expected to be between 26% to 29%.

Is the A2 Milk share price a buy?

There are mixed views about A2 Milk.

Broker Citi thinks that A2 Milk shares are a sell because of continuing troubles in the daigou sector, stronger domestic brands and the uncertainty relating to market access. It has a share price target of $9.40 for the infant formula business.

However, Morgans has a buy rating at the moment with a share price target of $12.20. The broker acknowledged that trading was weaker than expected and it will be some time before investors are confident about the business again.

More reading

• Leading brokers name 3 ASX shares to sell today
• What to expect from the a2 Milk (ASX:A2M) half year result
• 2 exciting mid-cap ASX shares to buy and hold
• 2 ASX shares rated as buys by brokers
• Here are the 10 most shorted shares on the ASX

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. 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.

The post Is the A2 Milk (ASX:A2M) share price a buy? appeared first on The Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) fell by 0.6% today to 6,807 points.

Here are some of the highlights from the ASX today:

Victoria goes into lockdown

From midnight tonight, the whole of Victoria will enter a 5-day lockdown to act as a “circuit breaker” against the spread of the UK strain of COVID-19 which saw the total number of cases reach 13.

Victoria will go back to stage 4 restrictions which will see people only be able to leave for four reasons: essential work, exercise, care and caregiving and shopping for essential supplies. The exercise and shopping will be only for a 5km distance from home. Masks will need to be worn everywhere except in your own home, with no visitors.

Baby Bunting Group Ltd (ASX: BBN)

The baby and infant product retailer released its FY21 half-year result today.

It reported that total sales increased by 16.6% to $217.3 million against the 26-week prior corresponding period. Same store sales growth was 15%, or 21.8% excluding Victorian stores.

Total online sales growth was 95.9%, with click and collect sales growth of 218%.

Baby Bunting’s gross profit margin went up 41 basis points to 37.4%. Pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 29.7% to $18.5 million. Pro forma net profit after tax (NPAT) grew 43.5% to $10.8 million, with statutory NPAT growing 54.7% to $7.5 million.

The company decided to declare a fully franked interim dividend of 5.8 cents per share, up from 4.1 cents per share.

Comparable store sales growth in the first six weeks of the second half of FY21 was “strong” at 18.5%, bringing year to date growth to 15.7%.

Baby Bunting managing director Matt Spencer said: “Maternity and baby goods are essential products for parents and parents-to-be and are less discretionary in nature. Our strong comparable store and total sales growth performance demonstrates that we continue to deliver on our strategy of growing market share.

“We still have over 90% of sales occurring or being completed in our stores highlighting the importance of our store network across Australia.”

The company also announced that it plans to launch a physical retail store network in New Zealand.

The Baby Bunting share price fell 6.6% today in response.  

Crown Resorts Ltd (ASX: CWN)

Crown continued to be in the news today after director and chairman Andrew Demetriou resigned from his positions.

However, the casino business denied that CEO and managing director Ken Barton had resigned. The company said that Crown and Mr Barton are continuing to consider his position.

The operating conditions for Crown Melbourne has been halted because of the Melbourne lockdown.

All gaming activities will cease from midnight tonight, as will food and beverage, retail, banqueting and conference facilities other than for the provision of takeaway meals or meal delivery services. Hotel accommodation can continue to be provided in a reduced capacity.

The Crown share price fell by 1.6% in response.

More reading

• Telstra (ASX:TLS) share price rises as brokers pass judgement on its profit result
• Why AVITA, Baby Bunting, Kathmandu, & Webjet shares are sinking
• ASX 200 down 0.3%: Crown CEO hasn’t resigned, Mirvac update, Nearmap remains halted
• Mirvac (ASX:MGR) share price slides on half-year results
• Why the Baby Bunting (ASX:BBN) share price is tumbling 10% lower

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts 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 Ioupay Ltd (ASX: IOU) share price smashed nearly 52% higher to a new 52-week high today. By market close, the Ioupay share price finished the day at 44 cents.

This follows a 30% leap in Ioupay shares on Tuesday, after the Malaysia-based buy now, pay later (BNPL) provider announced it had entered a merchant referral agreement with EasyStore Commerce. EasyStore currently services more than 7,000 merchants across Southeast Asia.

With no new announcements issued today, let’s take a peek at the company’s most recent results.

Ioupay share price soars following quarterly update

Since the release of the company’s December 2020 quarterly report on 29 January 2021, the Ioupay share price has rocketed by around 160%.

A major achievement during the December quarter related to the company obtaining a Malaysian money lending license. This license is required in order to provide BNPL services in Malaysia.

Ioupay also entered into a number of service agreements and improved its system integrations during the period. These activities were carried out in preparation for Ioupay’s BNPL soft launch, which is scheduled to occur during February and March this year.

In its December update, the business also referenced its successful capital raise executed in November 2020. Ioupay raised approximately $10.5 million from sophisticated investors, with around $10 million raised via a two-tranche placement.

The company advised that it plans to use these funds primarily for business expansion activities. This includes funding toward marketing development and salaries for the group’s growing front and back-office teams.

Ioupay outlook

The business believes that market conditions for increased digital commerce in Southeast Asia will remain strong. This outlook is based on the continuing trends of increased online purchases and cashless payments. 

Ioupay expects that the coronavirus environment will accelerate demand-driven growth because of the restrictions that presently impact daily activities and extend across all industries.

The Ioupay share price has risen by a whopping 4,789% over the past year, giving the company a current market capitalisation of $128 million.

More reading

• Here’s why the IOUpay (ASX:IOU) share price is rocketing 30% higher
• Why the IOUpay (ASX:IOU) share price jumped 11% higher today

Motley Fool contributor Gretchen Kennedy 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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If JPMorgan’s analysts are right, the world is looking at a rare new supercycle in commodity prices. Prices have been on the rise for oil, metals and agriculture. And sustained high prices could last for years.

Over the past 100 years, there have been only 4 commodity supercycles. The last one started in 1996 and began to retreat during the fallout from the GFC in 2008.

Much of the credit for driving the last commodities supercycle went to a rapidly expanding, resource-hungry China at the time. But not this one.

As Bloomberg reports:

JP Morgan attributed the latest cycle to several drivers including a post-pandemic recovery, “ultra-loose” monetary and fiscal policies, a weak US dollar, stronger inflation and more aggressive environmental policies around the world.

According to the JPMorgan analysts, led by Marko Kolanovic, the world’s efforts to limit climate change could have “unintended consequences”. Consequences that could “constrain oil supplies while boosting demand for metals needed to build renewable energy infrastructure, batteries and electric vehicles”.

One of the metals you’ll find used extensively in electric vehicles and home storage batteries is copper. Copper is also widely used in electrical wiring for building construction, as well as plumbing. And with developed nations around the globe pledging big infrastructure spending, the metal could see further lifts in demand.

Two leading ASX copper shares

On 23 March last year, copper prices fell to US$210 per pound, victim to the wider COVID-driven panic selling at the time, and the lowest prices since October 2016.

Since then, copper prices have leapt 80%, currently trading at US$377 per pound. That’s right at an 8-year high.

While not every ASX listed copper share has ridden the wave higher, several have. Those include OZ Minerals Limited (ASX: OZL) and Aeris Resources Ltd (ASX: AIS).

The OZ Minerals’ share price is up 221% since copper prices bottomed on 23 March. Over that same period, the Aeris Resources share price gained 350%.

Year-to-date OZ Minerals shares are flat while Aeris Resources shares are down 18%.

Now there are no guarantees ASX copper miners will see their share prices go up, even if we’re in the early stages of commodities supercycle that will continue to lift copper prices in the years ahead.

But without a doubt, ASX copper shares will welcome higher copper prices.

More reading

• Why ASX miners will get a double tailwind from Biden’s US$1.9tn stimulus
• Why these market experts aren’t concerned about the ASX 200’s pullback
• Why the IGO (ASX:IGO) share price is tanking today
• Investment specialist: ASX to buckle in for the commodity bull market of a lifetime
• Why the Oz Minerals (ASX:OZL) share price will be on watch 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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Are you wanting to buy some blue chip ASX shares for your portfolio? If you are, then I would suggest you check out the ones listed below.

These quality companies could have the potential to grow strongly over the next decade. As a result of this, they have been tipped as blue chips to buy. Here’s why:

REA Group Limited (ASX: REA)

The first ASX blue chip share to look at is property listings company REA Group. Over the last few years it has had to contend with a mini housing market crash and a pandemic. But despite this, the company has shown how resilient its business model is by coming out on top and delivering solid financial results.

The good news is that the housing market is improving, mortgage loan growth is accelerating, and house prices have been tipped to rise strongly in 2021. This is likely to lead to higher listing volumes over the next 12 months and could result in an acceleration in its profit growth. Especially given its new revenue streams, cost cutting, and potential price increases.

This morning Morgan Stanley retained its overweight rating and lifted its price target on the company’s shares to $175.00.

ResMed Inc. (ASX: RMD)

Another blue chip to consider is ResMed. It is a medical device company with a focus on sleep disorders.

Despite the pandemic’s negative impact on sleep disorder diagnoses and referrals, ResMed has continued to grow strongly over the last 12 months. This has continued in FY 2021, with ResMed recently releasing a strong second quarter update.

For the three months ended 31 December, the company delivered a 9% increase in quarterly revenue to US$800 million and a 17% increase in net profit to US$206.4 million.

Pleasingly, it still has a long runway for growth ahead of it. In fact, management has set itself a goal of improving 250 million lives in out-of-hospital healthcare in 2025. Helping it achieve this goal will be its rapidly growing digital health ecosystem, which reached over 12 million cloud connectable medical devices in 2020. This provides ResMed with strong recurring revenues and a material amount of high quality data.

Analysts at Morgans are positive on its future. They currently have an add rating and $30.99 price target on its shares.

More reading

• Brokers name 3 ASX shares to buy right now
• ASX 200 down 0.3%: Crown CEO hasn’t resigned, Mirvac update, Nearmap remains halted
• Here’s a bargain ASX share in a sea of expensive stocks
• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week

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

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If you’re looking for ASX growth shares to buy, then it could pay to listen to the team at Hyperion Asset Management.

As of the end of December, the Hyperion Australian Growth Companies Fund has achieved a total return of 20.1% per annum over the last three years. This means the fund is outperforming its benchmark by a solid 6.9%.

I thought I would take a look at some of the shares the fund manager. Here are three in its portfolio:

Afterpay Ltd (ASX: APT)

This buy now pay later provider is Hyperion Australian Growth Companies Fund’s largest holding and accounts for 10% of its portfolio. The fund manager was happy with the company’s recent trading update, noting that it grew underlying sales by 112% to A$2.1 billion in November. Hyperion also appears impressed with its referrals to retailers, which were up 147% on the prior corresponding period. It notes that Afterpay generated 35 million leads globally for its merchant partners during the month and 1.2 million in the US on Black Friday alone.

Nanosonics Ltd (ASX: NAN)

Another growth share that Hyperion has in its fund is Nanosonics. It is the infection control specialist behind the Trophon EPR disinfection system for ultrasound probes. The fund manager notes that the company released a trading update in November and revealed a 4% increase in consumables sales between 1 July and 31 October. Management also advised of an improvement in the number of new Trophon unit installations compared to the later months of FY 2020. Another positive that caught the eye of Hyperion was that “Nanosonics emphasised the continued significance and unmet need for their lead new product which is currently in development.” It was also pleased to see the company sign an agreement with I-MED Radiology Network to update its fleet of Trophon EPRs to the newer Trophon 2 model. I-MED will also expand its installed base to ensure standardised practice for high level disinfection of ultrasound equipment.

WiseTech Global Ltd (ASX: WTC)

Finally, this logistics solutions company is another growth share you’ll find in the Hyperion Australian Growth Companies Fund. The fund manager appears very positive on WiseTech Global’s outlook given its sizeable market opportunity. It commented: “WiseTech’s current target segment within the broader market, that being global supply chain software execution IT, was valued by Gartner at US$4.7 billion in 2019. With an estimated 7% market share of this segment, WiseTech’s growth opportunity remains significant.” It also notes that “the company provided evidence of its value proposition via compelling product demonstrations of CargoWise One and CargoWise Neo along with interviews with large users of CargoWise One.”

More reading

• These ASX shares are helping this fund manager smash the market
• Another day, another Zip (ASX: Z1P) share price record
• 4 steps to pick winning ASX shares
• The real reason the Afterpay (ASX:APT) share price is at a record high
• Here’s what low interest rates really means for your cash

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. The Motley Fool Australia owns shares of AFTERPAY T FPO and WiseTech Global. The Motley Fool Australia has recommended Nanosonics Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why this fund manager is a fan of Afterpay (ASX:APT) and these ASX growth shares appeared first on The Motley Fool Australia.

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Sims Ltd (ASX: SGM) shares edged higher today following news of the company’s acquisition of certain assets from Alumisource Corporation. By the market’s close, the Sims share price was up 1.13% to $12.55.

Based in Pennsylvania, Alumisource provides specialised raw materials in the form of custom shredded and blended aluminium scrap to North American aluminium and steel industries.

What did Sims announce?

The Sims share price was on the move today after the company advised that its recently acquired Alumisource assets were purchased for a guaranteed amount of US$22.5 million. It noted that further payments would follow over the next three to five years using a pre-determined earnout formula.

As a result of the takeover, Sims projects a net increase in its North American metal division’s non-ferrous retail sales volumes. The company revealed that for FY21, it expects an additional 33,000 tonnes to be sold. Sims recorded total non-ferrous retail sales volumes of 140,000 tonnes in FY20.

In addition, Sims stated that Alumisource’s founder and CEO, Gabe Hudock, will continue his role for a three to five-year minimum period. This will ensure a smooth transition and enable the business to focus on safety and sustainability.

Management commentary

Sims CEO and managing director Alistair Field spoke about the acquisition saying:

I’m pleased to achieve this key milestone toward delivering our strategic targets and growing non-ferrous retail volumes in North America. Major aluminium customers in the United States continue to seek product that is suitable for direct charging. Alumisource meets these needs by providing ‘in- spec’ furnace ready product in an automated and safe manner.

Alumisource is an ideal fit with our purpose, [to] create a world without waste to preserve our planet, and our sustainability goals. One tonne of aluminium produced from recycled sources mitigates 7.9 tonnes of carbon emissions compared to aluminium produced from virgin material

…We are committed to a disciplined capital management approach and ensuring that new capital investments fit with our strategy and purpose, as well as meeting minimum hurdle requirements

About the Sims share price

The Sims share price has travelled almost 17% higher over the past 12 months. The company’s shares hit a multi-year low of $5.52 in March 2020, before moving on an upwards trajectory.

At the current Sims share price, the company commands a market capitalisation of around $2.5 billion.

More reading

• Leading brokers name 3 ASX shares to sell today
• The latest ASX stocks to be hit by broker downgrades

Motley Fool contributor Aaron Teboneras 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 Sims (ASX:SGM) share price edged higher today appeared first on The Motley Fool Australia.

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I Googled ‘wake me up’ last night.

I didn’t get the result I expected.

I was looking for the Wham! song. You know the one…

Wake me up before you go-go
Don’t leave me hanging on like a yo-yo

Yeah, that one.

I was going to play it for my son. 

(It sounded like he was humming part of it, so I thought I’d play him the whole song. He swears that wasn’t what he was humming… #DadFail)

Anyway… when I put the search into Google, I instead got the song by Avicii.

Talk about a way to make a bloke feel old.

(If you don’t know who Avicii is… or who Wham! is… congratulations, you’ve just dated yourself. I only know the former because my son likes the Avicii song of the same title, too!)

Speaking of old, though, a few coincidences have got me thinking about the passing of time.

I’m coming up on a work anniversary at The Motley Fool, and have started getting LinkedIn messages.

Yesterday was 31 years since Nelson Mandela was released from prison on Robben Island, having spent 27 years in custody.

It was also my late Pop’s birthday.

Today is apparently the 25th anniversary of the release of Baz Lurhmann’s Romeo & Juliet.

All days and weeks have their confluence of anniversaries, of course, and there’s nothing uncommonly remarkable about this week… it was just something that I noticed.

Maybe it’s because today is Lunar New Year. (Kung Hei Fat Choy!)

Maybe it’s because I’m in that part of my life when it’s likely that I have fewer days left, than I have lived, but it’s hard to believe that Mandela was released from prison 31 years ago, or that R&J hit our screens in 1996.

It doesn’t help to realise we’re now closer to 2050 than 1980, either!

I’m pretty sure you’re with me on the ‘time flies’ thing.

And that’s important for us as investors too – in two very different ways.

The first is how quickly we as consumers (and businesses) adapt to the ‘new normal’.

Since Romeo & Juliet, the internet has gone mainstream (and the movie would be a good chance to be a Netflix Original if it was released today, rather than enjoy its premiere on the big screen).

We can’t really imagine life without computers or smartphones.

Electric vehicles, once the stuff of science fiction, made up the majority of new car sales in Norway last year.

The world’s largest companies are no longer oil drillers, industrial conglomerates, cigarette makers or traditional car manufacturers.

They are smartphone companies, search businesses, software designers, e-commerce players and electric vehicle innovators.

I think that’s worth keeping in mind as you think about the likely winners of the next 10, 20 or 30 years.

The second reason the ‘time flies’ thing is worth being aware of is that while thinking about investing for the long term can feel challenging, that perspective is helpful.

The developed world’s stock markets (including the ASX) are generally considered to have increased at a compound annual return of around 10% per year over the long term.

And while that’s a helluva lot more than you’ll get on cash in the bank, it doesn’t always feel exciting to have $100 turn into $110.

Or to have to wait 7 years to turn $100 into $200.

It’s welcome, sure… but 7 years feels like such a long time to wait.

The catch, of course, is we would have felt like that in 1988 when Mandela was released from prison, or while watching Romeo & Juliet for the first time.

Sitting around a table in ‘88, we would have hated the idea of having to wait until 1995 to (hypothetically) double our money. Indeed, 2021 would have seemed almost unimaginable.

Of course, if we had earned that historical 10%, we would have doubled our money in 1995, again in 2002, then in 2009 and once again in 2016. We’d now be only 2 years away from yet another double.

(The actual market return has differed, of course, but the future is also unknowable, so just stick with me for the purposes of the example!)

If you’re keeping track, in two years time, we’d have had our fifth double.

And if you have a passing acquaintance with compounding, you’ll know that a ‘fifth double’ is not just ‘5 x 2’.

Indeed, if you invest $1,000 and it doubles 5 times, you first go to $2,000.

Then $4,000

Then $8,000

Then $16,000

And, at the end of the 35 year period, if you doubled your money every seven years, you’d have $32,000.

Now, imagine starting with $10,000 instead…

Or, if you’d rather work backwards, to have a million dollars, you’d only have needed to start with just over $31,000.

And that assumes you didn’t add a single cent.

Save and invest regularly, and the numbers truly explode.

My point?

Well, other than the truly impressive nature of compounding, it’s to take us back to 1988… or 1996… or pretty much any time in the past.

Given those numbers above, wouldn’t you love to go back and have the means, the discipline and/or the knowledge to have started investing (or have invested more) back then?

I know I would.

But here’s the kicker.

Don’t you reckon that in 10, 20 or 30 years from now, you’ll wish you could go back to 2021 and do the same?

Yeah, me too.

Maybe you genuinely don’t have the option of investing (more).

Fair enough.

But I reckon 99% of the people reading this, if they’re truly honest with themselves, would acknowledge they could put just a little more money away… starting right NOW.

So, what’s stopping you?

Don’t you owe it to your future self to put your shoulder to the wheel with just a little bit more effort?

I’m not sure I’ll be still writing these articles in 31 years’ time. I hope I am.

But either way, I hope you’ll look back on today fondly, as the day you tilted your financial future a little further upward.

More reading

• Brokers name 3 ASX shares to buy right now
• Why the Kogan (ASX:KGN) share price is charging higher today
• Telstra (ASX:TLS) share price rises as brokers pass judgement on its profit result
• What’s happening with the Northern Minerals (ASX:NTU) share price?
• Here’s why the Liontown (ASX:LTR) share price hopped 5% today

Motley Fool contributor Scott Phillips 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 Wake me up… before you go-go? appeared first on The Motley Fool Australia.

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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:

Newcrest Mining Ltd (ASX: NCM)

According to a note out of Morgans, its analysts have upgraded this gold miner’s shares to an add rating with an improved price target of $29.89. The broker made the move in response to a strong half year result by Newcrest earlier this week. It believes the company is on track to achieve its guidance in FY 2021 and appears more confident on its long term strategy following the update. The Newcrest share price is trading at $26.09 this afternoon.

REA Group Limited (ASX: REA)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted the price target on this property listings company’s shares to $175.00. According to the note, the broker continues to expect REA Group to bounce back strongly from the pandemic in the second half and FY 2022. In addition to this, it has lifted its valuation of REA Group’s stake in US real estate listings company Move Inc following a jump in its second quarter revenue. The REA Group share price is on course to end the week at $157.43.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Credit Suisse have retained their outperform rating and $3.85 price target on this telco giant’s shares following its half year results. While the company’s update fell a touch short of the broker’s expectations, it was pleased with certain aspects of it. One of those was the performance of TowerCo, which it feels bodes well for when the company eventually looks to monetise the business. Credit Suisse continues to expect Telstra to pay a 16 cents per share dividend in the near term. The Telstra share price is fetching $3.25 on Friday afternoon.

More reading

• Telstra (ASX:TLS) share price rises as brokers pass judgement on its profit result
• ASX 200 down 0.3%: Crown CEO hasn’t resigned, Mirvac update, Nearmap remains halted
• Is HyperOne listed on the ASX?
• Is the Telstra (ASX:TLS) share price in the buy zone?
• 5 things to watch on the ASX 200 on Friday

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 REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia.

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The market may be dropping lower today but that hasn’t stopped the Kogan.com Ltd (ASX: KGN) share price from charging higher.

In afternoon trade, the ecommerce company’s shares are up 1.5% to $16.89.

Why is the Kogan share price pushing higher?

The Kogan share price appears to be charging higher today on the belief that the COVID-19 lockdown in Victoria will give its sales a boost.

This afternoon the Victorian government announced that it would be locking down the state for five days from midnight tonight. This action is being taken in an effort to stop the spread of a highly transmissible strain of COVID-19.

During previous lockdowns, online retailers such as Kogan and Temple & Webster Group Ltd (ASX: TPW) performed very strongly as investors were forced to do their shopping online.

Should you buy Kogan shares?

A five-day lockdown isn’t going to make a huge difference to Kogan’s full year sales, so investors may not want to make an investment decision purely on that.

Though, one broker that was already recommending investors to buy Kogan shares was Credit Suisse. Earlier this month the broker retained its outperform rating and increased its price target on its shares to $21.08.

Based on the current Kogan share price, this price target implies potential upside of almost 25% over the next 12 months.

According to the note, the broker was pleased with its half year update and appears confident there will be more strong growth ahead for the company.

This is because it believes Kogan is well-placed to benefit from the shift to online shopping. This is particularly the case given the expansion of its product range and the recent $122 million acquisition of New Zealand-based online retailer Mighty Ape.

Mighty Ape operates online stores in New Zealand and Australia and has a focus on gaming, toys, and other entertainment categories. It currently has 719,000 active customers, bringing the company’s total to over 3.7 million.

Following today’s gain, the Kogan share price is now up 231% in 12 months.

More reading

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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 Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Kogan.com ltd 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.

The post Why the Kogan (ASX:KGN) share price is charging higher today appeared first on The Motley Fool Australia.

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