BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO)’s joint venture has been hit with a lawsuit against its plans to build a massive copper mine in the US.

Resolution Copper, which is 55% owned by Rio Tinto and 45% by BHP, has so far spent more than US$2 billion to advance the project in Oak Flat, Arizona.

But non-profit advocacy group Apache Stronghold has this week started legal action to prevent the government from handing over 980 hectares of land, also known as Chi’chil Bildagoteel, to Resolution.

The lawsuit is the latest move in the San Carlos Apache native American tribe’s resistance to the proposed copper mine.

“Oak Flat is holy and sacred. Chi’chil Bildagoteel is central to our traditional religion and identity as Apache people,” said Apache Stronghold leader Dr Wendsler Nosie. 

“Giving away our sacred land by the US government for destruction by a foreign mining company destroys our ability to practice our religion. It violates our First Amendment right to the free exercise of our religion protected by the constitution.”

The Motley Fool has contacted Resolution Copper for comment.

Both BHP and Rio have a lot riding on this copper mine, which is projected to supply almost 25% of copper demand in the US for 40 years.

The lawsuit is looking to block the release of the final environmental impact statement on Friday US time, which would prompt the transfer of Chi’chil Bildagoteel to Resolution.

Rio Tinto’s relations with locals have been rocky

The Arizona headache comes after Rio Tinto endured a year from hell in 2020 over its destruction of the Juukan Gorge in Western Australia in May.

Rio Tinto initially stated it did nothing wrong, citing that all its actions were legal. 

But after pressure from its major shareholders about the cultural and historical significance of the site, 3 executives departed the mining giant.

Then earlier this week, Rio Tinto had to deal with a new crisis in Mongolia. The government there has threatened to pull the plug on its Oyu Tolgoi mine expansion project.

Ulaanbaatar was left “dissatisfied” with the economic benefits of the plans for the copper and gold mine. So much so that it would revoke the Oyu Tolgoi Underground Mine Development and Financing Plan (UDP), which was signed with Rio in 2015.

Rio’s subsidiary Turquoise Hill Resources Ltd (NYSE: TRQ) announced it would be “engaging immediately” with the Mongolian government to save the UDP.

Rio Tinto’s shares were down 1.75% at the time of writing. BHP was down 1.21%.

More reading

• Iluka (ASX:ILU) share price surged higher on a potential $1bn+ valuation uplift
• The BHP (ASX:BHP) share price is Goldman Sach’s top pick for iron ore
• Rio Tinto (ASX:RIO)’s top growth project could be cancelled
• 5 things to watch on the ASX 200 on Wednesday
• Here’s why the Fortescue (ASX:FMG) share price is up 12% in a month

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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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. The benchmark index is currently up 0.3% to 6,708.3 points.

Here’s what is happening on the market today:

Afterpay surges higher.

The Afterpay Ltd (ASX: APT) share price is back on form on Thursday and is surging higher. Improving sentiment in the tech sector and a positive broker note appear to be the drivers of this gain. In respect to the latter, this morning Morgan Stanley retained its overweight rating and lifted its price target on the payments company’s shares to $136.00. The broker notes that app downloads have been increasing strongly in the US and UK.

Pro Medicus $40 million contract win.

The Pro Medicus Limited (ASX: PME) share price is rocketing higher today after the leading health imaging software company announced another major new contract win. Pro Medicus has signed a seven-year contract worth $40 million with Salt Lake City based Intermountain Healthcare. The deal will see its Visage 7 Viewer and Visage 7 Open Archive products implemented across all of Intermountain’s radiology and subspecialty imaging departments.

Whitehaven Coal climbs higher.

The Whitehaven Coal Ltd (ASX: WHC) share price is climbing higher today following the release of its quarterly update. For the three months ended 31 December, Whitehaven Coal achieved a 64% increase in managed run-of-mine (ROM) production to 5.1Mt. And while its sales were flat on the prior corresponding period, management has tightened its guidance range to between 19Mt and 20Mt from 18.5Mt and 20Mt. The company also revealed that coal prices have been improving strongly.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Thursday has been the Pro Medicus share price. Its shares are up 12.5% following its $40 million contract win. The worst performer on the index has been the Abacus Property Group (ASX: ABP) share price with a decline of almost 5%. This is due largely to its shares trading ex-dividend today for its 8.5 cents per share interim dividend.

More reading

• Why Afterpay, Australian Ethical, Pro Medicus, & Sezzle shares are charging higher
• Are ASX 200 shares set to climb 15% higher in 2021?
• Why the Pro Medicus (ASX:PME) share price is racing 7% higher today
• Here’s why the Whitehaven Coal (ASX:WHC) share price is charging 5% higher
• 4 ways to lose all your money

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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2020 was a tough year for the retail sector and many ASX retail shares. Shops were shuttered globally in the effort to fight COVID-19, putting a major dampener on sales. Retail sales in Australia fell more than 17% in April, the greatest fall on record.

While spending was down in the June quarter, the September quarter made up for it with sales rebounding above pre-COVID levels. Pent up demand was unleashed as restrictions eased, with retailers seeing a surge in volumes. Positive momentum continued into the December quarter, with Deloitte predicting growth of 2.6% in retail volumes over 2020. 

Still, spending was uneven. Clothing, cafes, and department stores lagged, while spending on food and household goods has been above pre-COVID levels. With physical stores closed, consumers in lockdown turned to online for their purchasing requirements.

This accelerated a trend which has been growing swiftly over the past few years. Rapid growth in internet penetration and increasing acceptance of online shopping as a feasible and safe alternative to in-store shopping has seen digital commerce boom. 

So as we head into 2021, what can we expect from ASX retail shares? This depends on the sector they operate in and the strength of their online presence.

Household goods are expected to continue to perform well as consumers spend more time living and working at home. Those peddling computers and electronics should continue to benefit from increased demand. Retailers with a strong online presence will be best placed to take advantage of the shift to online that accelerated last year. 

Household retailers 

Online household goods retailers Kogan.com Limited (ASX: KGN) and Temple & Webster Group Ltd (ASX: TPW) both reported record sales in 2020.

Kogan saw gross sales rise by a record 39.3% in FY20 to reach $68.9 million. The company has reported strong performance in the first few months of FY21, with sales expected to have peaked over the Christmas period. Kogan’s impressive 2020 sales performance led to a 155% increase in the company’s share price over 2020, with Kogan entering the S&P/ASX 200 Index (ASX: XJO) in December. 

Kogan is a clear beneficiary of the move to online shopping. In an ASX announcement on 17 August 2020, founder Ruslan Kogan said:

There is a retail revolution taking place as more and more shoppers learn about the benefits of eCommerce…once someone discovers the benefits of online shopping, I struggle to see why they would ever go back to the old way of doing things. After almost 15 years of preparation, the revolution occurring in retail represents a significant opportunity for Kogan.com.

Kogan is not the only beneficiary of this shift. Temple & Webster reported a 74% increase in full year revenue in FY20.

Australia’s largest eCommerce company in the furniture and homewares space, Temple & Webster saw active customer numbers increase 77% in FY20 to almost half a million. The company is growing its market share even as its brick-and-mortar competitors take online more seriously.

Temple & Webster highlighted that it is benefitting from the increasing advantages of scale as it gets larger. In the company’s latest AGM address, the CEO commented, “the bigger we get, the better and stronger our customer propositions becomes, which is a virtuous cycle.” 

Another household goods retailer with strong momentum coming in 2021 is Adairs Ltd (ASX: ADH). Adairs operates both online and through physical stores. When physical stores shut in 2020, Adairs saw a significant increase in online sales, a trend which has continued. In the first half of FY21 to December, online sales were up 99.7% on the prior corresponding period. Online sales represented 39% of total sales versus 20% in the same period of the prior year.

In a trading update on 8 December, CEO and managing director Mark Ronan said, “it is now clear our first half FY21 result will be outstanding and builds on the excellent result in FY20…these gains extend across all aspects of our business with Adairs achieving strong growth through our integrated omni-channel model.”

Adairs has forecast group sales of $235 million–$245 million for the first half of FY21, well above the $179 million achieved in the prior corresponding period.  

Electronics and beauty 

JB Hi Fi Limited (ASX: JBH) also had a stellar 2020. The electronics retailer recorded a strong first quarter for FY21 with total sales growth of 27.3%, compared to growth of 4.7% in the first quarter of FY20. This growth was achieved despite store closures in Victoria with the online business continuing to scale. Online growth combined with continued in-store sales momentum has resulted in a strong start to FY21. 

Newcomer Adore Beauty Group Ltd (ASX: ABY) debuted on the ASX in late 2020 and is also reporting strong momentum. The pureplay online beauty and skincare retailer reported better than expected November promotional sales.

Additionally, the extension of the COVD-19 lockdown in Victoria delivered stronger sales for the company throughout the period. As a result, Adore Beauty upgraded its first half FY21 forecast revenue to approximately $95.2 million, 7% above the prospectus forecast.

CEO Tennealle O’Shannessy said, “we are pleased to report strong sales ahead of our prospectus forecasts. The business has continued to scale, deliver content and meet the needs of our customers at a time when they need it most.” 

ASX retail shares in 2021 

There is no doubt Australian retailers will be hoping for an easier ride in 2021 following the disruptions of 2020. As we have seen, changes in the way we shop and what we shop for means some are in a stronger position than others. This has resulted in the retail sector fragmenting, with some ASX retail shares expected to perform strongly in 2021 while others may have a bumpy road ahead. 

More reading

• 2 rapidly growing ASX ecommerce shares to buy
• The Accent Group (ASX:AX1) share price just got hit by a broker downgrade
• Retail sales rose 7% in November to boost ASX retail shares
• 3 highly rated ASX growth shares to buy now
• Capital returns galore from cashed-up ASX retail stocks

Kate O’Brien 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’s parent company Motley Fool Holdings Inc. recommends ADAIRS FPO. The Motley Fool Australia has recommended ADAIRS FPO, 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.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. At the time of writing, the benchmark index is up 0.1% to 6,692.5 points.

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

Afterpay Ltd (ASX: APT)

The Afterpay share price is up almost 8% to $118.75. Investors have been buying tech shares again on Thursday after a solid night of trade on the tech-focused Nasdaq index. It isn’t just Afterpay recording a solid gain. At the time of writing, the S&P ASX All Technology Index (ASX: XTX) is up a sizeable 2.5%. In addition, analysts at Morgan Stanley lifted their price target on Afterpay’s shares to $136.00 this morning. They have an overweight rating on them.

Australian Ethical Investment Limited (ASX: AEF)

The Australian Ethical share price is up 3.5% to $5.72. This follows the release of the ethical fund manager’s second quarter update this morning. According to the release, Australian Ethical increased its funds under management (FUM) to $5.05 billion by the end of December. This was up 16.9% from $4.32 billion at the end of September.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price has surged almost 11% higher to $35.16. Investors have been buying the leading health imaging software company’s shares after it announced another major new contract win. Pro Medicus has signed a seven-year contract worth $40 million with Salt Lake City based Intermountain Healthcare. The deal will see its Visage 7 Viewer and Visage 7 Open Archive products implemented across all of Intermountain’s radiology and subspecialty imaging departments.

Sezzle Inc (ASX: SZL)

The Sezzle share price is up over 7.5% to $7.00. This appears to be a delayed reaction to the buy now pay later provider’s fourth quarter update this week. According to the release, Sezzle reported a whopping 195.6% year-over-year increase in merchant fees to US$17.2 million during the fourth quarter.

More reading

• Why the Australian Ethical (ASX:AEF) share price jumped 11% today
• Why the Pro Medicus (ASX:PME) share price is racing 7% higher today
• 4 ways to lose all your money
• 5 things to watch on the ASX 200 on Thursday
• 2 exciting ASX tech shares to buy today

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’s parent company Motley Fool Holdings Inc. owns shares of Australian Ethical Investment Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Australian Ethical Investment Ltd., Pro Medicus Ltd., and Sezzle 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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The Laybuy Holdings Ltd (ASX: LBY) share price is on the run today following its latest Q3 results update to the ASX market.

In mid-morning trade, the buy now, pay later (BNPL) provider’s shares are up 4.7% to $1.34.

What’s driving the Laybuy share price higher?

The Laybuy share price is pushing higher after investors seem pleased with the company’s performance over the third quarter.

For the period ending 31 December, Laybuy delivered gross merchandise value (GMV) of a record NZ$182 million. This represented an increase of 184% on the prior corresponding period and 44% over the prior quarter. On an annualised scale, GMV reached around NZ$730 million for the company.

The milestone result was underpinned by Black Friday week and holiday sales in the December period. Laybuy highlighted its Black Friday sales week as the best week in its trading history which saw NZ$22 million of GMV. This reflects a record of 44% higher than the prior week. Holiday sales also grew to NZ$67 million for the month, a rise of 168% on the same time last year.

The company attributed its sound performance from executing key strategic initiatives in the lead-up to the busy season. This included the launch of partner programs in the second quarter with major e-commerce platforms, as well as the ‘Tap to Pay’ feature that rolled out for in-store during the third quarter.

Active customers hit 687,000 and onboard merchants lifted to more than 8,000, a gain of 119,000 and 1,684 for the third quarter, respectively. The increase in both sets of numbers was credited to Laybuy’s marketing strategies.

Outlook

Laybuy advised it will continue to focus its efforts in the New Zealand, Australia, and United Kingdom (UK) markets.

Supported by the launch of several key projects, the company is forecasting the fourth quarter to be on par with Q3’s growth of active merchant and customers.

In addition, Laybuy noted that COVID-19 has changed the retail landscape in the UK with online sales dominating. To drive instore sales, the BNPL provider will wait to introduce its Tap to Pay in this market when government restrictions loosen.

Laybuy also advised it will seek to expand its United States market entry during Q4. This will be accomplished by the company enabling US customers to transact on ANZ and UK platforms that ship to the US.

More reading

• Here’s how ASX buy now, pay later (BNPL) shares have performed in 2020
• Laybuy (ASX:LBY) share price on watch after market update

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.

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The Australian Ethical Investment Limited (ASX: AEF) share price has been among the best performers on the All Ordinaries index on Thursday.

In morning trade the ethical fund manager’s shares are up a sizeable 11% to $6.15.

This means the Australian Ethical share price is now up an impressive 25% since the start of 2021.

Why is the Australian Ethical share price zooming higher?

Investors have been fighting to get hold of the company’s shares this morning following the release of its quarterly update.

According to the release, Australian Ethical increased its funds under management (FUM) to $5.05 billion for the quarter ended 31 December 2020. This was up 16.9% from $4.32 billion at the end of September.

It was also the first time the company’s FUM have surpassed the $5 billion milestone.

Management advised that this sizeable increase in FUM was driven by its exceptional investment performance and strong net inflows.

At the end of the period, its Managed Funds FUM had increased 22.4% quarter on quarter to $1.75 billion and its Superannuation FUM had lifted 14.6% over the three months to $3.3 billion.

This means that Australian Ethical’s total FUM have now increased by 24.6% for the financial year to date, following record net inflows during the period.

Earnings guidance.

Last month Australian Ethical provided guidance for the first half of FY 2021. With no update provided today, it appears as though the company is on track to achieve this.

This will mean an underlying net profit after tax (UPAT) for the 6 months ending 31 December of between $4.6 million and $5.1 million. At the mid-point, this represents an increase of 11% on the prior corresponding period.

The company advised that “strong growth in Funds Under Management (FUM) was partially offset by the impact of superannuation fee reductions including those implemented in the second half of FY20 and fee and threshold reductions across some managed funds in October 2020.”

More reading

• 2 small cap ASX shares to buy that are growing quickly
• Why did the Australian Ethical (ASX:AEF) share price storm 9% higher today?
• ASX 200 falls 1.2% on Friday
• 3 reasons why Australian Ethical (ASX:AEF) shares could be worth buying
• Got cash to invest? Here are 3 ASX growth shares to 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 Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Pointsbet Holdings Ltd (ASX: PBH) share price has finally made some headway. At the time of writing, PointsBet shares are trading hands for $12.98 per share, putting them up almost 10% this year and teasing their previous record closing price of $13.28 on 2 September 2020. 

Much of these year-to-date gains occurred yesterday, after Pointsbet announced it had entered into a multi-year partnership to be the official gaming partner of the Detroit Red Wings (hockey) and Little Caesars Arena. The strategic deal includes a brand new Pointsbet sports bar coming to Little Caesars and signage during Detroit Red Wings’ games this upcoming season.

Pointsbet share price finally going somewhere 

Before yesterday’s announcement, the Pointsbet share price has seemingly gone nowhere since its game-changing deal with NBCUniversal was announced last August. The deal almost doubled the Pointsbet share price in a single day from $7 to $13. 

The partnership will push the Pointsbet brand and products in front of the largest sports audience of any US media with exclusive television and digital sports betting integrations. 

From a cost perspective, Pointsbet has committed a total marketing spend of US$393 million in progressively increasing amounts over the 5-year media partnership, together with incentives payable to NBC for customer referrals. NBC will also take a 4.9% ownership stake in the Pointsbet company. 

Competing US bookmakers reporting strong results 

Elsewhere, William Hill plc reported significant growth in the US in its trading statement for the unaudited 52 weeks ended 29 December 2020. William Hill US went live in five states and launched mobile in five states, leading to 121% net revenue growth in the fourth quarter. Its sports betting apps and sports book odds are also featured in both ESPN and CBS Sports, two of America’s leading sports media brands. 

Pointsbet’s major US competitor, DraftKings Inc (NASDAQ: DKNG) has also rallied strongly in 2021, with year-to-date returns sitting at 17%. 

More reading

• Why PointsBet, Santos, Sayona, & Splitit shares are charging higher today
• Leading broker names the emerging ASX shares to buy in 2021
• Why the BetMakers (ASX:BET) share price is surging 12% higher today
• Top ASX shares to buy in 2021

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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It has been a very positive day of trade for lithium miners Galan Lithium Ltd (ASX: GLN) and Lithium Australia NL (ASX: LIT) on Thursday.

In morning trade, the Galan Lithium share price is up 16% to 44 cents and the Lithium Australia share price is up 9.5% to 8.1 cents.

Why are these lithium miners storming higher today?

This morning Lithium Australia announced that it has entered into an acquisition and joint venture agreement with Galan Lithium.

This agreement with see Galan Lithium purchase an 80% interest in the Greenbushes South Lithium Project from Lithium Australia.

The Greenbushes South Lithium Project is located 200 km south of Perth and just 3 km south of the world-class Greenbushes Lithium Mine.

The latter is owned and operated by Talison Lithium and is one of the world’s largest hard-rock spodumene deposits with very high grades. IGO Ltd (ASX: IGO) recently bought a 25% stake in the operation to much fanfare.

According to the release, Galan Lithium will issue Lithium Australia 1,221,000 fully paid ordinary shares in exchange for the 80% stake in the Greenbushes South Lithium Project. The two companies will then form an unincorporated joint venture, which will be solely funded by Galan Lithium until the completion of a preliminary feasibility study.

After which, both parties will contribute on a pro-rata basis or withdraw and retain a 2% net smelter royalty.

Management commentary.

Galan Lithium’s Managing Director, Juan Pablo Vargas de la Vega, commented: “We are delighted to acquire a significant majority stake in a highly prospective lithium project in a world-renowned lithium district and increase our existing lithium exploration ground at Greenbushes in Western Australia.”

“We have secured an outstanding exploration opportunity in Western Australia to add to our existing portfolio of assets in Argentina that have a potential production profile. We will proceed to exploring this tenure in a methodological step-by-step manner and progress tenement applications to grant. We are pleased to joint venture with Lithium Australia NL and look forward to updating the market with our developments in due course,” he added.

Lithium Australia’s Managing Director, Adrian Griffin, added: “The Company’s divestment of a majority interest in the Greenbushes South Lithium Project to Galan is consistent with our ongoing strategy, to advance proprietary, downstream lithium and battery technologies and to deliver an ethical and sustainable supply of energy metals for batteries through innovative minerals processing and battery recycling techniques, thus creating an energy-metals loop.”

“Lithium Australia is pleased to partner with Galan, a dedicated explorer that will drive the Greenbushes South Lithium Project forward. This transaction means that the Company reduces its financial commitment and exploration risk yet retains significant lithium commodity exposure by way of both Galan shares and 20% Project equity,” Griffin concluded.

More reading

• These were the best performing ASX 200 shares last week
• ASX 200 rises 0.7% on Friday
• Why the IGO (ASX:IGO) share price is dropping lower
• ASX 200 rose 1.6%
• Why the IGO (ASX:IGO) share price has soared in December

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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ASX 200 shares have been up and down in the past year. The S&P/ASX 200 Index (ASX: XJO) plummeted lower in the March 2020 bear market before finishing with a near-record December quarter performance.

According to an article in the Australian Financial Review (AFR), one market strategist is tipping up to 15 per cent gains for Aussie shares in 2021.

Where are ASX 200 shares headed in 2021?

Market strategist UBS is tipping the benchmark Aussie index could climb to 7,600 points, up 15.4% on current levels.

A strong public health response to the coronavirus pandemic has laid the platform for more gains. That, alongside a rotation towards value shares, could help boost ASX 200 shares higher this year.

JP Morgan’s Jason Steed was also bullish on equities for 2021. Mr Steed cited high levels of monetary and fiscal support, alongside vaccine deployment, are likely to support earnings.

Key macro drivers include robust growth from China and a revised outlook for government stimulus in the US.

UBS is tipping 15 per cent growth in forward earnings per share (EPS) to bring that back to pre-pandemic levels. MST Marquee strategist Hasan Tevfik told the AFR that 2021 was going to be more of an “earnings-driven market”. 

Rising bond yields could mean higher discount rates and therefore lower share valuations. Credit Suisse’s Damien Boey suggested higher yields could mean fewer people rolling into equities thinking that they have no other alternative in a low-rate environment.

Foolish takeaway

2020 was a volatile year for ASX 200 shares with the benchmark index down 4.0% in the last 12 months. Stand out performers like Afterpay Ltd (ASX: APT) and Fortescue Metals Group Limited (ASX: FMG) helped to push the index higher.

It remains to be seen which top shares are set to propel Aussie share values higher this year. Technology and Resources shares have been hot in recent months with all eyes on market movements in January.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises 0.1%
• Iluka (ASX:ILU) share price surged higher on a potential $1bn+ valuation uplift
• ASX energy shares exploded today. Too late to buy?
• Will the ASX see a share market bubble in 2021?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Pro Medicus Limited (ASX: PME) share price has been a strong performer on Thursday.

In morning trade the leading health imaging company’s shares are up 7% to $34.00.

Why is the Pro Medicus share price racing higher?

Investors have been buying the company’s shares this morning after it announced another major new contract win.

According to the release, Pro Medicus has signed a seven-year contract with Salt Lake City based Intermountain Healthcare.

Intermountain is the largest health system in the State of Utah and also provides medical services in the states of Idaho and Nevada. This makes it the largest healthcare provider in the Intermountain West region.

The contract, which is based on a transactional licensing model and estimated to be worth $40 million over the seven years, will see the company’s Visage 7 Viewer and Visage 7 Open Archive products implemented across all of Intermountain’s radiology and subspecialty imaging departments.

The implementation will be fully deployed on Google Cloud Platform (GCP), leveraging Visage’s native, cloud-engineered enterprise imaging technology. Planning for the rollout is to begin in the third quarter of FY 2021, with data migration commencing immediately by Visage’s engineering team. The first sites will be scheduled to go-live shortly after.

A very important deal.

Pro Medicus’ CEO, Dr Sam Hupert, was very pleased with the contract win.

He commented: “This is a very important deal for us, not only because of its size and scope, it will provide us with a material footprint in Intermountain West, previously an untapped region for us.”

“It also validates our decision to engineer Visage 7 from the ground up to be natively cloud capable, with Intermountain deploying both the Visage 7 Viewer and Visage 7 Open Archive as part of our Visage in the Cloud offering, making this one of the largest cloud-based PACS implementations in the world.”

Dr Hupert notes that this is the fifth major contract win that the company has announced during the last six months.

He concluded: “This is our fifth major contract win in six months. We believe this validates our belief that we have unique, market leading technology which, coupled with our expanded product portfolio and native cloud capability, has significantly increased our total addressable market in our key jurisdictions of North America, Europe and Australia.”

More reading

• 3 reasons why the Pushpay (ASX:PPH) share price could be a buy
• 2 fantastic ASX healthcare shares to buy
• Top brokers name 3 ASX shares to buy today
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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 and recommends Pro Medicus Ltd. 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.

The post Why the Pro Medicus (ASX:PME) share price is racing 7% higher today appeared first on The Motley Fool Australia.

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