If you’re looking for exposure to the small side of the market, then you might want to consider the three small cap ASX tech shares listed below.

I believe these three tech shares have the potential to grow materially in the future. This could make them great long term options for investors:

Audinate Group Limited (ASX: AD8)

Audinate is a digital audio-visual networking technologies provider that is best known for its innovative Dante audio over IP networking solution. This industry-leading product is used widely across the professional live sound, commercial installation, broadcast, and recording industries globally. While the company has been hit hard by the pandemic, it is in an excellent position to accelerate its growth once the crisis passes. Management notes that the number of Dante enabled products manufactured by its customers is a key measure of its technology proliferation. It is also traditionally a leading indicator of future revenue growth. Pleasingly, the company has achieved 31% growth in this metric and finished FY 2020 with 2,804 Dante-enabled products on the market. I believe this bodes well for its growth over the coming years.

Mach7 Technologies Ltd (ASX: M7T)

Another small cap tech share which I think has a lot of potential is Mach7. It is a growing medical imaging data management solutions provider. Mach7’s software creates a clear and complete view of the patient. This helps users with diagnoses, reduces care delivery delays and costs, and improves patient outcomes. In FY 2020 the company doubled its revenue to $18.9 million. The good news is that this is still only scratching at the surface of its sizeable market opportunity. Management estimates that its total addressable market is worth approximately US$2.75 billion per annum at present.

Whispir (ASX: WSP)

A final small cap tech share to look at is this software-as-a-service communications workflow platform provider. I think it is a great long term option for investors. Especially after a reasonably sharp pullback in its share price in recent weeks following the tech selloff. I believe Whispir has a very bright future ahead of it thanks to its industry-leading software platform. This platform allows users to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. Management estimates that the Workflow Communications platform as a Service market could be worth US$8 billion per year by 2024.

More reading

• Forget Afterpay (ASX:APT) shares, buy these 3 growth shares
• Could these exciting small cap tech shares be the next Afterpay (ASX:APT) and Altium (ASX:ALU)?
• Why Myer, Resolute, SKY, & Whispir shares are tumbling lower today
• Whispir (ASX:WSP) share price sinks 9.5% lower on major shareholder sell-down
• 3 very exciting small cap ASX shares to watch

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 MACH7 FPO and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO. The Motley Fool Australia has recommended AUDINATEGL FPO, MACH7 FPO, and Whispir Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Lark Distilling Co Ltd (ASX: LRK) this morning announced the successful completion of its capital raise. This news has sent the Lark share price jumping 24.55% to $1.37, at the time of writing.

This compares to the All Ordinaries Index (ASX: XAO) which is up just 1.05% for the day so far to 6,076.30 points.

What does Lark do?

Formerly known as Australian Whiskey Holdings Limited, Lark is involved in the Australian craft distilling industry. The company produces whiskey and liqueurs in Hobart, Tasmania.

Completion of capital raise

Lark updated the market today advising it had completed a capital raising of $8.85 million via an institutional placement. The offer was priced at $1.10 per share and the proceeds raised will be used to accelerate its growth strategy.

The company has been busy ticking off its strategic roadmap and will leverage its balance sheet to broaden consumer appeal.

The new shares will be allotted next week on 23 September.

Management commentary

Lark Managing Director, Geoff Bainbridge, was optimistic about Lark’s future. He said:

The overwhelming support received for the Placement provides validation of the Lark growth strategy – brand and barrels – and will ensure that whisky under maturation will reach 1.5m Litres by the end of F22. The Placement is the next step into Lark’s journey to becoming a globally consumed, recognized and loved Tasmanian brand icon.

Mr Bainbridge further added:

It is the final milestone in the restructure of ‘Lark for growth’ plan, and it is a real coup for the Company to welcome such proven and highly regarded institutions to the Lark register.

FY21 guidance

Lark is forecasting to double its net sales in FY21 to $12 million. The company’s key drivers are expected to be from its e-commerce platform and direct mainland sales. In the first two months alone, e-commerce sales are more than all of FY20 e-commerce sales at a 6-fold increase. This has been underpinned by new, limited online releases selling out within hours/days.

Specialty products Symphony No1 and Nant sales performance are tracking ahead of FY21 plans. To meet the rising demand, Lark will continue to increase whisky under maturation.

In addition, the company will look to launch a portfolio strategy to address multiple occasions and price points. This will include the reboot of its Forty Spotted Gin product for Summer 2020.

About the Lark share price

The Lark share price has risen 63% since April this year and has slowly been trending upwards. At a market capitalisation of around $73 million, the Lark share price has an average volume of around 17,000 shares traded on any day. Today, that volume has increased to 301,000 shares being exchanged.

Should you invest?

I think that Lark has exciting growth prospects in the coming years. If the company is able to increase brand awareness and execute effective marketing strategies, sales should increase. This in-turn could drive the Lark share price up even further.

I would recommended prospective investors adding Lark to their watchlist to monitor its future developments.

More reading

• 3 exciting small cap ASX tech shares that could be the next big thing
• Brokers name 3 ASX shares to buy right now
• $10,000 invested in the Appen (ASX:APX) IPO is worth this much today
• ASX 200 down 0.1%: Tech shares push higher, AMP (ASX:AMP) sinks lower
• Immutep (ASX:IMM) share price flying 20% on improving trials

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a large number of broker notes this week.

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:

Beach Energy Ltd (ASX: BPT)

According to a note out of Citi, its analysts have upgraded this energy producer’s shares to a buy rating with a $1.94 price target. The broker believes that Beach Energy’s shares are attractively priced at the current level and offer a compelling risk/reward. It also likes the company due to its relative balance sheet strength in comparison to some of its peers. While I think Citi makes some great points, I would prefer to get exposure to energy through a more diversified miner.

Challenger Ltd (ASX: CGF)

Analysts at Credit Suisse have upgraded this annuities company’s sharers to an outperform rating with a $4.25 price target. The broker made move largely on valuation grounds after recent share price weakness. It notes that this has left Challenger’s shares trading at a large discount to its book value. And while it does acknowledge that the first half of FY 2021 could be difficult, it feels this is largely priced in now. I think it would be best to stay away from Challenger until there has been a notable improvement in its performance.

Reject Shop Ltd (ASX: TRS)

A note out of Morgans reveals that it has initiated coverage on this discount retailer’s shares with an add rating and $8.89 price target. According to the note, the broker believes the company’s turnaround program could deliver solid results in the coming years. It also sees plenty of room for the company to expand its store network meaningfully in the future. While I’m not a huge fan, I think Morgans makes some good points and Reject Shop could be worth a closer look.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Brokers upgraded JB Hi-Fi (ASX:JBH) share price and this other ASX stock to “buy” today
• Why Beach, BrainChip, Cleanaway, & Credit Corp shares are sinking lower
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Challenger Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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One of the most successful initial public offerings (IPOs) over the last few years came from Appen Ltd (ASX: APX).

Appen is a leading provider of language technology data and services. It has team of over one million crowd-sourced experts around the globe providing or improving the data that is used for the development of machine learning and artificial intelligence products.

When did Appen hit the ASX boards?

Appen has been listed on the Australian share market for just over five and a half years.

It listed in January 2015 after raising $15 million at 50 cents per share. This gave Appen a market capitalisation of $47.3 million.

Management explained that the funds raised would help it “take advantage of, and grow with, the recent acceleration of devices and technology that interact with humans on human terms and advances in mobile communications and social media that are driving unified communication in any language and across languages.”

It certainly achieved on this and has been growing at an extraordinary rate since 2015.

For example, last month it released its half year results and revealed a 35% increase in underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) to $62.5 million. That’s more than its entire market capitalisation upon listing.

Looking ahead, the company expects a strong second half. It reaffirmed its guidance for underlying EBITDA in the range of $125 million to $130 million in FY 2020. This will be a 23.8% to 28.7% increase year on year.

The good news is that more of the same is expected in the coming years.

The company’s chairman, Chris Vonwiller, commented: “We are especially pleased with this result amidst the pandemic and the implementation of our growth initiatives. The strength of our business model, market exposure, competitive position and our consistent execution give us the confidence to push forward with our investments to solidify future growth.”

What if you had invested in the Appen IPO?

If you had invested $10,000 into Appen’s shares at its IPO, you would have picked up 20,000 shares at 50 cents each.

At the time of writing, the company’s shares are changing hands for $31.83.

This means your 20,000 shares would now have a market value of $636,600. Not bad for a $10,000 investment!

More reading

• 5 things to watch on the ASX 200 on Thursday
• Is value investing dead?
• 2 ASX shares looking much cheaper today
• Buy Afterpay (ASX:APT) and these ASX shares before the tech rebound
• 4 of the best ASX 200 shares to buy in September

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is dropping lower. The benchmark index is currently down 0.1% to 5,879 points.

Here’s what is happening on the market today:

Tech shares push higher.

The Australian tech sector is defying a sizeable decline on the Nasdaq index overnight and is pushing higher. At the time of writing, the S&P/ASX All Technology Index (ASX: XTX) is up 0.4%. The likes of Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO) are on the rise today and helping to drive the technology index higher.

AMP shares sink lower.

The AMP Limited (ASX: AMP) share price is sinking notably lower today. But rather than another scandal or something operational, this decline can be attributed to the financial services company’s shares going ex-dividend for its 10 cents per share fully franked interim dividend. Eligible shareholders can look forward to being paid this dividend in just over two weeks on 1 October.

Big four banks mostly lower.

One area of the market acting as a drag on the market today is the banking sector. At lunch, three of the big four banks are in negative territory. The worst performer in the group is the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price with a 0.6% decline. The only bank pushing higher is National Australia Bank Ltd (ASX: NAB). At the time of writing, the NAB share price is up 0.3%.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Friday has been the Whitehaven Coal Ltd (ASX: WHC) share price with a gain of almost 4%. This follows a rise in spot coal prices overnight. The worst performer has been the AMP share price by some distance. Its shares are down 8.5% at lunch after trading ex-dividend this morning.

More reading

• Why 5G Networks, AMP, Clover, & Reliance shares are dropping lower today
• The 3 best ETFs for passive investing
• How to make $1 million from ASX shares
• Why the Afterpay (ASX:APT) share price could be a buy
• Are ASX gold shares like Newcrest (ASX:NCM) still good value?

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 Xero. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Immutep Ltd (ASX: IMM) share price is today flying as the company announced a number of results from its ongoing trials. The Immutep share price has gained a huge 20.45% today, rising to 26.5 cents at the time of writing.

What Immutep does

Immutep is a biotechnology company headquartered in Australia. Immutep focuses on personalised bio-therapeutic products for the treatment of cancer. Its main product is eftilagimod alpha (IMP321), a soluble fusion protein, which is in clinical development for the treatment of cancer. Immutep has two other clinical candidates (IMP701 and IMP731) that are fully licensed to major pharmaceutical partners, and a fourth candidate (IMP761) which is in pre-clinical development. 

The company was originally built on CVac, a therapeutic cancer vaccine. In late 2014, the privately held French immunotherapy company Immutep SA was purchased by Prima Biotech. It is now dual listed with one listing on the ASX and another as Immutep ADS Representing 10 Ord Shs (NASDAQ: IMMP).

INSIGHT-004 trial

The Immutep share price is soaring higher today as it was announced that the company saw improving results from the INSIGHT-004 trial. The trial is evaluating the combination of Immutep’s lead product candidate, IMP321 with a human antibody (avelumab), in 12 patients with different solid tumours, primarily gastrointestinal.

In positive news for the biotech, 41.7% of patients showed a partial response to the combination therapy of IMP321 and avelumab (previously 33%). Furthermore, there was encouraging levels of anti-tumour activity signals in a variety of the cancer indications. These are usually not typically sensitive to immune checkpoint inhibitor (ICI) therapy.

On a final note, the combination of IMP321 and avelumab continues to be safe and well tolerated by patients.

TACTI-002 Study

The TACTI-002 study is being conducted in collaboration with Merck & Co., Inc. (NYSE: MRK). The study is evaluating the combination of IMP321 with Merck & Co’s Keytruda drug in patients with neck squamous cell carcinoma or lung cancer.

The study has produced three complete responses, with two in neck squamous cell carcinoma and one in lung cancer. A complete response indicated the complete disappearance of all lesions.

However it must be noted that, despite the improvement, the study has only produced a response in a total of 8 patients out of the 109 in the trial.

What now for the Immutep share price?

The improving results are great news for shareholders as the company seeks to return to its former highs. The Immutep share price has been on an impressive run since its lows in late March this year. The stock is up a huge 165% from its March low of 10 cents.

More reading

• Amazon invests in battery recycler founded by former Tesla exec
• Why Mineral Resources, Redbubble, Saracen, & Temple & Webster shares are pushing higher
• Clover (ASX:CLV) share price falls 10% on FY20 results
• Why 5G Networks, AMP, Clover, & Reliance shares are dropping lower today
• Macquarie (ASX:MQG) to earn $1 billion from a company you never heard of

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. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Amazon (NASDAQ: AMZN) has invested in a battery recycling start-up founded by former Tesla chief technology officer J.B. Straubel, part of the e-commerce giant’s pledge to commit $2 billion to green initiatives.

Amazon’s Climate Pledge Fund announced on Thursday that it has invested an undisclosed amount in Redwood Materials, which was founded by Straubel in 2017. Redwood and Amazon will also work together to recycle electric vehicle (EV) batteries and other lithium-ion batteries from electronics.

“To fight climate change, we need to solve the impact products have on the environment,” Straubel said in a statement. “We’re honored to be part of the Amazon’s Climate Pledge Fund and to build the closed-loop supply chain that will recycle batteries, electronics and other end of life products for Amazon.”

In addition to Redwood, Amazon also announced stakes in Rivian, an electric-truck start-up backed by Ford Motor that has a deal to supply Amazon with up to 100,000 vehicles.

Amazon said it has also made investments in:

• CarbonCure Technologies, which aims to reduce the carbon emissions from the manufacture of cement.
• Pachama, a technology exchange that verifies the impact of carbon capture in the world’s forests to allow organisations and individuals to offset emissions by supporting reforestation and forest conservation projects.
• Turntide Technologies, a maker of energy-efficient motors.

In a statement, Amazon CEO Jeff Bezos said, “I am excited to announce that we are investing in a group of companies that are channeling their entrepreneurial energy into helping Amazon and other companies reach net zero by 2040 and keep the planet safer for future generations.”

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

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• Better buy: Amazon vs Netflix
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• Better buy: Slack Technologies vs Microsoft

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Lou Whiteman owns shares of Ford. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Tesla and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Amazon. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. At the time of writing the benchmark index is down 0.2% to 5,870.7 points.

Four shares that have not let that hold them back today are listed below. Here’s why they are pushing higher:

The Mineral Resources Limited (ASX: MIN) share price is up 1% to $25.20. Investors have been buying the mining and mining services company’s shares after a sharp pullback on Thursday. A decline in the iron ore price and a broker downgrade were weighing on the company’s shares. So much so, the Mineral Resources share price fell a sizeable 9% yesterday. Some investors may believe its shares were oversold.

The Redbubble Ltd (ASX: RBL) share price is up over 4% to $4.41. This appears to have been driven by a broker note out of Goldman Sachs. Its analysts have put a buy rating and $5.30 price target on the ecommerce company’s shares. It believes Redbubble is well-positioned for growth thanks to structural tailwinds. The broker even suggested Redbubble’s shares could be worth as much as $10.75 if its growth accelerates.

The Saracen Mineral Holdings Limited (ASX: SAR) share price is up over 2.5% to $5.34. A number of gold miners are pushing higher today despite a pullback in the gold price overnight. At the time of writing, the S&P/ASX All Ordinaries Gold index is up 0.6%.

The Temple & Webster Group Ltd (ASX: TPW) share price is up almost 3% to $10.31. This also appears to have been driven by a broker note out of Goldman Sachs. As with Redbubble, the broker believes this online furniture and homewares retailer is well-positioned for growth over the coming years. As a result, it has put a buy rating and $11.50 price target on the company’s shares.

More reading

• Is the Redbubble (ASX:RBL) share price on a path to $10.75?
• Are ASX gold shares like Newcrest (ASX:NCM) still good value?
• Why Galaxy (ASX:GXY) and these ASX shares just hit new highs
• ASX 200 drops 1.2%, Mineral Resources (ASX:MIN) fell 9%
• 3 ASX shares poised for huge growth in FY21

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Clover Corporation Limited (ASX: CLV) share price has plummeted 10.33% in early morning trade following the release of its FY20 results. The Clover share price reached as low as $2.13, before pushing back to $2.17 at the time of writing. 

Let’s take a look at Clover’s results for the financial year.

How did Clover perform in FY2020?

Clover reported a decent FY20 result underpinned by new products delivering growth in new segments and countries.

For the full year ending 31 July, Clover announced a revenue increase of $88.3 million, up 15% over FY 2019.  This was driven by improved demand across all key regions, particularly in Europe.

Earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $18.9 million, an increase of 35% from $14 million in the prior period.

Net profit after tax stood at $12.5 million, an increase of 23.6% compared to $10.1 million the year before.

Earnings per share also increased to 7.51 cents, compared to 6.12 cents.

Clover revealed an operating expense of $11.4 million from investment in research and development programs to deliver future growth. This was a jump from the $10.3 million spent in FY2019.

Inventory leapt to $31.9 million, up from $4.2 million.

Clover advised its balance sheet is strong with $9.2 million cash on hand and a net debt of just $5.4 million.

The infant formula company declared a final dividend of 2.5 cents per share to be paid to shareholders on 18 November.

COVID-19 impact

Clover said that its FY20 result had been positively impacted by COVID-19 with increased demand through Q3 and Q4. This was due to its customers supplying additional infant formula to retail channels depleted by pantry stocking.

The company did advise, however, that new customer development had been curtailed due to the imposed travel restrictions. This affected its ability to perform audits, and attend trade shows.

Demand in the United States from new business development had been constrained as the company focused on other activities. Clover resourced its overseas team to service new and existing customers.

FY 2021 outlook

Due to the uncertainty of COVID-19, the company did not provide a guidance for 1HFY21. However, Clover mentioned that the pantry stocking from consumers could support strong sales in the first half of the year.

In addition, the company will seek to target new customers in Europe to meet the new IF standards and establish online or third-party audits.

Clover will also look to restart new product development in the United States, and increase supply chain vertical integration.

About the Clover share price

The Clover share price has made a strong comeback of 63% since falling as low as $1.33 in March. For the calendar year to date, the Clover share price is down 17.49% and has also fallen 34.44% from its 52-week high.

More reading

• Why 5G Networks, AMP, Clover, & Reliance shares are dropping lower today
• 3 ASX shares I’d buy to quickly add diversification
• Why you should add these small cap ASX shares to your watchlists

Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is edging lower. At the time of writing the benchmark index is down 0.1% to 5,876.7 points.

Four shares that have fallen more than most today are listed below. Here’s why they are dropping lower:

The 5G Networks Ltd (ASX: 5GN) share price is down 5% to $1.69 after returning from its trading halt. This morning the company confirmed that has entered into a Bid Implementation Deed with Webcentral Group Ltd (ASX: WCG) to acquire it via a recommended off market takeover bid. 5G Networks has offered 16 cents per share for the domains and hosting provider.

The AMP Limited (ASX: AMP) share price has sunk 7.5% lower to $1.41. This decline is almost entirely attributable to the financial services company’s shares trading ex-dividend this morning for its 10 cents per share fully franked interim dividend. This will be paid to eligible shareholders in just over two weeks on 1 October.

The Clover Corporation Limited (ASX: CLV) share price has crashed 11.5% to $2.17 following the release of its full year results. For the 12 months ended 31 July 2020, the specialist ingredients producer delivered sales revenue of $88.3 million and net profit after tax of $12.5 million. This was a 15.1% and 23.6% increase, respectively, over the prior corresponding period. Management’s commentary for FY 2021 appears to have concerned investors. It warned of high levels of uncertainty because of the pandemic.

The Reliance Worldwide Corporation Ltd (ASX: RWC) share price is down 3% to $3.86. The catalyst for this decline appears to have been a broker note out of UBS this morning. According to the note, the broker has downgraded the plumbing parts company’s shares to a neutral rating with a $3.85 price target. UBS made the move on valuation grounds after a strong gain in recent weeks.

More reading

• Clover (ASX:CLV) share price falls 10% on FY20 results
• 2 terrible ASX shares I will never buy
• 3 ASX shares I’d buy to quickly add diversification
• Will the S&P downgrade derail the recovery in the AMP share price?
• Why the 5G Networks share price is sinking lower 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 Clover Limited and Reliance Worldwide Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends 5G NETWORK FPO. The Motley Fool Australia has recommended Reliance Worldwide Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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