The Governor of the Reserve Bank of Australia (RBA), Philip Lowe has delivered optimistic updates on the state of Australia’s economy today. Dr Lowe was quoted saying it’s “doing a bit better than was earlier feared.”

According to the Australian Financial Review (AFR) reporting, Dr Lowe made the remarks while speaking in a Senate enquiry into the economic impacts of the coronavirus pandemic.

While Dr Lowe describes the unemployment statistics released earlier this month as a “shocking set of numbers”, he is optimistic the worst is behind us.

“[The jobless numbers] weren’t quite as bad as we thought they would be and the data we have seen since suggests there is a bottoming out” the AFR quotes Dr Lowe as stating. Dr Lowe further stated there has been “some pick up in employment in those industries most affected by the virus.”

However, Lowe also referenced it remains important for the government to not withdraw coronavirus stimulus measures (such as the JobKeeper program) prematurely. He said,

“I think it’s very important that we don’t withdraw the fiscal stimulus too early. … Ending the fiscal support could be damaging, but if the economy bounces back [then] tailoring the fiscal support might be the right thing to do.”

One thing investors may find illuminating is the RBA governor’s continuing assurance that Australia won’t follow other countries in introducing negative interest rates.

He stated that “I don’t think negative interest rates work. The package we have so far is working. If we had to do more we could buy more government bonds.”

What do the RBA governor’s comments mean for the ASX?

I think, for ASX investors, there are good sentiments to take from Dr Lowe’s comments. The rally that the S&P/ASX 200 Index (ASX: XJO) is enjoying today can only continue if underpinned by a strong economic recovery. Dr Lowe’s comments suggest this is starting to take shape (although it’s still early days).

The lost prospect of negative interest rates may disappoint some ASX investors. Yet, it’s good news for retirees and any investors with significant cash savings (although it looks like as low-interest rates are still here to stay).

However, in my opinion, Dr Lowe’s comments also imply that we are not out of the woods yet, and the economic situation remains fluid. That’s why I think ASX investors should still be cautious and prudent. I’m not entirely convinced just yet that the current ASX rally is a new dawn (although I hope it is).

Even so, there’s no doubt that Dr Lowe’s comments today are good news for all ASX investors, and indeed all Australians.

More reading

• Why now could be a better time to buy the underperforming CSL share price
• ASX 200 bull market! Why this ASX fundie is getting nervous
• ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets
• The next looming test for the ASX 200 bull market is just round the corner
• Why you shouldn’t fear an ASX share market crash

Motley Fool contributor Sebastian Bowen 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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The CSL Limited (ASX: CSL) share price lost its status as the market darling in the latest rally, but this could be a better time to be buying the stock if Citigroup is to be believed.

Shares in the blood products pharmaceutical is trading only just above breakeven during lunch time trade at $288.87 when the S&P/ASX 200 Index (Index:^AXJO) jumped 1%.

Over the past month, CSL lost around 11% of its value while the top 200 benchmark jumped by around 9% on growing optimism that we are overcoming the COVID-19 pandemic.

From hero to zero

This marks a turn in fortunes for CSL. The stock outperformed during the height of crisis thanks to its defensive and dependable earnings while cyclical stocks like big ASX banks crashed due to their exposure to the economic downturn.

But signs that the economy is holding up better than expected triggered a rally in bank shares like Westpac Banking Corp (ASX: WBC) and National Australia bank Ltd. (ASX: NAB). This comes at the expense of CSL.

Too early to declare victory

However, Citigroup reminded investors that the global coronavirus pandemic is far from over with 5.5 million people around the world infected by the virus and more than 350,000 succumbing to it.

And those are only the official figures. The true human cost of COVID-19 is likely to be many times these numbers and things won’t return to the way they were until a vaccine is found.

This also means that the high financial toll to contain the outbreak will continue to weigh on the global economy for quite a while yet.

Vaccine may be years away

“Vaccine development has historically taken up to 10 years,” said Citi.

“Given the social and economic costs of COVID-19, governments, the pharmaceutical industry, regulators and funders are following a new “outbreak” approach to accelerate development in the hope to have a vaccine available sometime within 6-18 months.

“There is a possibility we get multiple vaccines.”

Path back to normality blocked by many obstacles

Medical experts warn that the time to get a proven vaccine is likely to be measured in years and not months. Hoping to find a cure before the end of 2020 might be wishful thinking.

“As the epidemic slows in many countries, it will become more difficult to recruit patients to conduct large scale phase 3 trials,” added the broker.

“Also, if the virus mutates significantly, it could make the development of an effective vaccine more difficult.”

But finding a vaccine is one on half of the battle. Manufacturing enough to inoculate the world’s population is the next big challenge.

Buy the CSL dip

For these reasons, it might be too early to abandon quality defensive stocks like CSL Limited. While Citi has made no changes to its earnings assumptions for the company, it upgraded the stock to “buy” from “neutral” following the pullback in its share price.

The broker’s 12-month price target on CSL is $334 a share.

More reading

• ASX 200 bull market! Why this ASX fundie is getting nervous
• ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets
• The next looming test for the ASX 200 bull market is just round the corner
• Where to invest $10,000 into ASX shares immediately
• Why you shouldn’t fear an ASX share market crash

Brendon Lau owns shares of National Australia Bank Limited and Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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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Automotive shares listed on the ASX could be poised to boom post-COVID-19. The pandemic looks to fuel several positives for the industry. New automotive sales in Australia saw their worst month on record in April, plunging more than 48.5% for the month. The sharp fall in sales marked 25 consecutive months of falling sales in the industry.

Despite the doom and gloom, the coronavirus pandemic could see new automotive sales boom in 2020 and beyond. A recent newsletter from Auscap Asset Management highlighted the concerns of many public transport commuters. With difficulty in maintaining social distancing and the risk of being in contact with asymptomatic people using public transport, consumers may seek alternative transport.

Here are 2 ASX automotive shares that could be poised to boom post-COVID-19.

AP Eagers Ltd (ASX: APE)

The AP Eagers share price tanked approximately 74% from late February to late March in response to the coronavirus pandemic. Since then, shares AP Eagers have bounced more than 175%.

The company released a trading update in late April informing shareholders that its dealerships remained in operation. As Australia’s oldest listed automotive retail group AP Eager remains operational after reducing its cost base and reshaping its business.

AP Eagers also informed the market that they secured $122 million in working capital, putting it in a dominant position over smaller competitors. AP Eagers could also capitalise on buying distressed dealerships with a potential change in consumer behaviour fuelling new car sales.

Carsales.com Ltd (ASX: CAR)

Carsales could also receive a post-COVID boost. The company has a strong balance sheet and operational metrics, in addition to international market exposure. In response to the coronavirus pandemic, Carsales implemented cost-saving initiatives to mitigate financial impact and reduced market activity.

Carsales also waived trade customer’s fixed and variable advertising fees through April, reducing dealer’s short-term operating costs. In response, the Carsales share price has bounced more than 73% from its lows in March.

Foolish takeaway

The coronavirus pandemic will surely change certain consumer behaviours. Recent data from China has reflected growth in traffic levels and weak public transport after the country was released from lockdown. According to data from the China Association of Automobile Manufacturers, new car sales increased 4.4% year on year in April.

If Australian consumers adopt the same behaviour, we could see car sales receive a much-needed boost during 2020 and beyond. Additionally, with more traffic on Australian roads, auxiliary service operators like Transurban Group (ASX: TCL) could also be potential investment ideas for investors.  

More reading

• 3 ASX 200 shares to buy for a Goldilocks-style bounce back
• Is the Transurban share price a buy today?
• 3 quality ASX dividend shares for income investors to buy today
• The one sector that could experience a V-shape COVID-19 recovery
• Which is the best ASX entertainment media share?

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended carsales.com 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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If you’re looking to beat the market over the long term, then I think the tech sector is a great place to look for investment ideas.

This is because there are a decent number of shares in this sector which have the potential to grow their earnings at a rapid rate for many years to come.

But given the growing number of options to choose from, it can be hard to decide which ones to buy.

To narrow things down, I have picked out two tech shares which I think could smash the market throughout the 2020s. They are as follows:

Altium Limited (ASX: ALU)

Altium is a printed circuit board (PCB) design software provider with enormous potential. Virtually every electronic product is constructed with one or more PCB. These boards act as the carrier for everything from electronic components to microchips. As the design of PCBs become more and more complex, devices require sophisticated electronic design automation software such as Altium Designer.

Given the proliferation of electronic devices due to the Internet of Things boom, the future looks very bright for Altium’s award-winning software. Management appears confident that this will be the case. It expects there to be 50,000 software subscriptions at the end of FY 2020. It is then aiming to double this to 100,000 by FY 2025. Given the quality of its product and favourable industry tailwinds, I wouldn’t bet against the company achieving this.

Nearmap Ltd (ASX: NEA)

Nearmap is a leading aerial imagery technology and location data company. It allows businesses to instantly access high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools. The beauty of this product is that it means users can conduct accurate virtual site visits without leaving the home or office. This ultimately enables informed decisions, streamlined operations, and, importantly, significant cost savings.

This morning the company revealed that it is on course to achieve annualised contract value of $103 million to $107 million in FY 2020. This is barely even scratching at the surface of the global aerial imagery market which is estimated to be worth US$10.1 billion this year. I believe its quality offering, which is about to be bolstered by the release of Nearmap AI, puts the company in a position to capture a growing slice of this market over the next decade.

More reading

• Why ANZ, Blackmores, IDP Education, & Nearmap shares are racing higher
• Why the Nearmap share price has surged 15% higher today
• ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets
• Why you shouldn’t fear an ASX share market crash
• What would $50,000 invested in the ASX 200 a decade ago be worth today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of Altium. 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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If you’re looking for strong returns over the next decade, then I think the mid cap space is a great place to look.

This is because there are a good number of companies at this side of the market which have the potential to grow materially in the coming years.

But which mid cap ASX shares should you buy? Three that I think are among the best on offer are listed below:

EML Payments Ltd (ASX: EML)

EML Payments is a payments company with a focus on digital gift cards and pre-paid cards. It provides its services to shopping centres, online betting companies, and salary packaging companies. EML had been growing at a very strong rate over the last few years prior to the pandemic. And while its growth this year will inevitably be stifled, I believe it is well-positioned to resume its growth once the crisis passes. Especially following the recent acquisition of Prepaid Financial Services. This allows EML to enter the emerging field of banking as a service (BaaS) and could be a key driver of growth in the coming years.

Electro Optic Systems (ASX: EOS)

Another mid cap share to look at is Electro Optic Systems. It is Australia’s largest aerospace company and the largest defence exporter in the Southern Hemisphere. I like the company due to its experienced team and the long-established partnerships it has with major global aerospace giants. Another big positive is its massive backlog of work. This alone should support solid earnings growth over the next few years and is likely to be bolstered by new contracts along the way.

Nanosonics Ltd (ASX: NAN)

A final mid cap share to consider buying is Nanosonics. As well as having strong growth potential thanks to its industry-leading trophon EPR disinfection system, the impending launch of several new infection control products targeting unmet needs could take its growth to the next level. Especially given the growing importance of infection control and the fact that these secretive products are understood to have similar market opportunities to the trophon EPR disinfection system.

More reading

• 4 ASX fintech shares to make you rich
• How much should you pay for earnings reliability from shares?
• 3 outstanding ASX growth shares to invest $3,000 into today
• Have $500 to invest? Then buy these 5 ASX 200 shares immediately
• Why Afterpay and cohorts could confirm the economy bottomed in April

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 Emerchants Limited and Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Emerchants Limited and Nanosonics 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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Today, the S&P/ASX 200 Index (ASX: XJO) is again moving higher, up 1.1% at the time of writing to 5,835.8 points. It could be, that after weeks of flatlining, this ASX 200 bull market is now set to break the psychologically important 6,000-point barrier. If it succeeds in doing so, it will be for the first time since early March.

What an incredible run this has been too. Since 23 March, the ASX 200 has now rallied over 28%.

But one ASX fund manager isn’t too keen on piling into this ASX 200 bull market. On the contrary, Scott Haslem of Crestone Wealth Management is starting to see some stretched valuations in the market. This is something that doesn’t herald good times ahead.

According to reporting in today’s Australian Financial Review (AFR), Mr Haslem is ‘holding back’ from chasing this bull market for 2 reasons.

Confessions of a nervous ASX fundie

Firstly, he believes valuations are starting to get ahead of themselves.

“The rally is a rational response to the improving economic backdrop”, the AFR quotes Haslem as stating. “The issue is what price you want to pay for that rationality.”

Of course, the unprecedented monetary policy that governments around the world are executing, including both here and in the United States, makes it difficult to say that shares are overvalued per se. But a 30% rally in just over 2 months is definitely worth examining.

Secondly, Haslem is worried markets haven’t fully priced in the earnings hit that coronavirus is yet to unload on the ASX. Companies across the board have had to increase their costs dramatically in order to implement social distancing rules. This is almost certain to impact their profitability and, therefore, their share prices. 

“The likely persistence of social distancing – and rightly so – is likely to slow the revenue of these companies,” Haslem stated. “And then other behaviours are going to have to change to adjust to the new environment, and that’s going to add additional cost to doing business…” He went on to say “Boards and companies are going to have to be looking for multiple supply chains for each component, and that’s going to add to costs.”

Haslem is worried about companies getting hit with a ‘double whammy’. Not only are revenues likely to be subdued for some time among many ASX businesses, but these new costs are likely to be semi-permanent. These means a continuation of burning the earnings candle at both ends.

Should ASX investors be worried?

I think Mr Haslem makes some good points here. There’s no doubt now that this ASX 200 bull market is pricing in a strong and rapid recovery for our economy, as well as arguably for the global economy.

That leaves very little wiggle room on share pricing if things don’t pan out that way.

But does this mean we should sell out of all shares? No, not in my view anyway.

I think the best course of action an ASX investor can take today is to reassess their portfolio. Make sure it consists only of companies you have long-term faith in. Additionally, making sure there’s a significant cash position available to take advantage of any future market downturns is also important. This can provide you with peace of mind if another crash does come, as well as some firepower to take advantage of lower share prices.

More reading

• Why now could be a better time to buy the underperforming CSL share price
• ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets
• The next looming test for the ASX 200 bull market is just round the corner
• Why you shouldn’t fear an ASX share market crash
• Where will the Telstra share price be next year?

Motley Fool contributor Sebastian Bowen 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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On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below.

Here’s why these brokers are bearish on them:

Ansell Limited (ASX: ANN)

According to a note out of Macquarie, its analysts have retained their underperform rating but lifted the price target on this health and safety products company’s shares to $30.40. Although the broker believes Ansell is well-positioned to benefit from increasing demand for personal protective equipment, it has concerns over capacity constraints. It doesn’t believe the market is factoring this into its current valuation and thus believes its shares are overvalued. The Ansell share price is trading at $34.47 this afternoon.

Blackmores Limited (ASX: BKL)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted their price target on this health supplements company’s shares to $65.00. The broker appears to support the company’s decision to strengthen its balance sheet. It also notes that Blackmores has reaffirmed its profit guidance for FY 2020. However, this isn’t enough for a change in rating. The broker retains its underperform rating on valuation grounds. The Blackmores share price is up 1.5% to $80.10 on Thursday.

Sonic Healthcare Limited (ASX: SHL)

Analysts at UBS have retained their sell rating but lifted their price target on this healthcare company’s shares to $25.10. The broker has been analysing pandemic testing data and believes that testing rates have already peaked in Australia. It also notes that testing rates have flattened in the UK and growth expected to slow in the United States. This could mean Sonic doesn’t benefit as greatly as the market was expecting from testing activities. The Sonic share price is trading at $29.15 this afternoon

More reading

• Why ANZ, Blackmores, IDP Education, & Nearmap shares are racing higher
• ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets
• Why the Blackmores share price is charging higher today
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 edges down, bank share prices fly

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool Australia has recommended Ansell Ltd. and Sonic Healthcare 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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Despite a tsunami in taxpayer-funded stimulus measures to combat the coronavirus, Australia’s economic recovery is shaping up to be more of a protracted affair than a 45 degree angle snap-back. While interest rates, at close to zero, support the likelihood of a sharper V-shaped economic recovery – don’t hold your breath.

But the good news is that the recovery we’re most likely to experience will look less like a U or W-shaped recovery, and more like the Nike ‘swoosh’. The swoosh is akin to a Goldilocks-type bounce-back – not too hot, yet not too cold. A swoosh-shaped recovery bodes well for these 3 ASX 200 shares that remain seriously oversold since the beginning of the year.

McMillan Shakespeare Limited (ASX: MMS)

A decline in underlying net profit of 21.7% at half-year, plus challenging market conditions, compounded by the coronavirus, have seen the McMillan Shakespeare share price tumble to $9.03. That’s 42% lower than the $15.70 it was trading at in late November.

The professional services firm is a market leader in novated leasing, asset management and related financial products and services. But with so much of the workforce currently receiving the government’s Jobkeeper wage subsidy, it isn’t a great time to be offering these types of services. However, during its COVID-19 update on 8 April, the company expected to see its salary packaging activity go higher on the back of state governments increasing the size of the health workforces.

While the company has withdrawn earnings guidance for FY20 in light of the COVID-19 shutdown, the current MacMillan share price represents a 17% discount to Morningstar’s fair valuation of $10.18. Based on a P/E ratio of 12 (at the time of writing), the stock is trading on a discount to its sector peers (14.5) and the overall market at around 15.9.

As with all stocks right now, lack of clarity coming out of the pandemic is a little unnerving. But with McMillan’s net debt at around 42% of its market cap, the company’s balance sheet looks well positioned to emerge from the downturn ready to capitalise on new opportunities.

Southern Cross Media Group Ltd (ASX: SXL)

The Southern Cross Media share price declined 9.4% last week, but the media company (formerly Macquarie Media Group) – which is responsible for brands including 2Day FM, Triple M and the Hit Network – is already up 66% this week to $0.25 (at the time of writing).

This is great news for shareholders who recently witnessed a 244% increase in Southern Cross’ existing shares on issue. This was following a $169 million equity raising early May, issued at a whopping 45.5% discount. The company has also renegotiated its bank loans and plans to draw an extra $57 million from its existing debt facilities.

The expanded war chest will be kept on its balance sheet to improve liquidity, and reduce its net debt position. At the end of 2019, the company had just $22.5 million in cash on hand and $353 million in drawn down debt. With current liabilities ($81 million) equal to 6% of its total assets, the company looks well positioned to trade through the crisis and rebound during the recovery. The fundamentals of the company’s business remain sound, and the consensus recommendation on the stock is a strong buy, with Morningstar putting fair value at around $0.34.

AP Eagers (ASX: APE)

Dragged lower by the coronavirus mass sell-down, which accentuated the slowdown in car sales, the AP Eagers share price is trading around 24% lower than its pre-COVID-19 price of $9.01.

The auto dealership group’s growth-by-acquisition strategy over the past 20 years has been impressive. Since then, it has boosted sales revenue from $500 million to $5.8 billion. Assuming April marks the low-point – with sales down 48.5% on the previous April – an upswing in car sales could mirror the recent boom in Australia’s home improvement market. What will help the company capitalise on the market’s recovery is the underlying strength of its balance sheet, which includes $270 million in cash, and undrawn corporate debt facilities.

Together with a further $122 million OEM working capital, AP Eagers has available liquidity of $392 million. The consensus recommendation on the stock is a moderate buy, and at $6.81 it is currently trading at a 26% discount to Morningstar’s fair value of $9.24.

More reading

• ASX 200 up 0.1%: Big four banks rocket, Afterpay sinks lower
• The one sector that could experience a V-shape COVID-19 recovery
• ASX 200 Weekly Wrap: ASX rallies on mining highs
• These were the worst performing ASX 200 shares last week
• Can we value ASX shares with P/E ratios in 2020?

Motley Fool contributor Mark Story 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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In the afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing the benchmark index is up 1.8% to 5,877.7 points.

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

The Australia and New Zealand Banking Grp Ltd (ASX: ANZ) share price has jumped 6% higher to $18.99. Investors continue to buy the big four banks, potentially on the belief that the worst is over for them. ANZ Bank’s latest gain means the banking giant’s shares are now up a remarkable 24% this week.

The Blackmores Limited (ASX: BKL) share price is up almost 3% to $80.99. Investors have been buying the health supplements company’s shares following the completion of the institutional component of its capital raising. Blackmores raised $92 million at an 8% discount of $72.50. It will now use these funds to strengthen its balance sheet, support its activities in the Asia market, and invest in its efficiency program. Another positive was that Blackmores revealed that it is on track to achieve its guidance in FY 2020.

The IDP Education Ltd (ASX: IEL) share price has jumped 5% to $17.72. This is despite there being no news out of the provider of international student placement services and English language testing services. However, with its shares down materially from their pre-pandemic high, it looks as though bargain hunters have been piling in today.

The Nearmap Ltd (ASX: NEA) share price has rocketed 18% higher to $2.27. This morning the aerial imagery technology and location data company released an update which revealed that its annualised contract value (ACV) had hit $102 million. This puts it well on course to achieve its full year ACV guidance of $103 million to $107 million. The company also reaffirmed that it expects to be cash flow breakeven by the end of the financial year. This is expected to leave it with a cash balance of $32 million to $35 million.

More reading

• Why the Nearmap share price has surged 15% higher today
• ASX 200 up 2.4%: Blackmores raises $92m, big four banks jump, Nearmap rockets
• Why the Blackmores share price is charging higher today
• What would $50,000 invested in the ASX 200 a decade ago be worth today?
• 5 things to watch on the ASX 200 on Thursday

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 Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Nearmap 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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