The Kogan.com Ltd (ASX: KGN) share price is surging higher this morning following another strong business update.

Kogan has provided the market with an update of how it has performed during the fourth quarter to date, in light of the coronavirus crisis.

The Kogan share price has been experiencing a very strong rally in recent months. Kogan shares dropped to a low of $3.45 in mid-March but closed yesterday at $11.40. That’s a massive 230% increase. The rally has been particularly strong since mid-May and appears set to continue based on morning trade today. At the time of writing, Kogan’s share price has already climbed nearly 9% since the market opened.

The S&P/ASX 200 Index (ASX: XJO) in comparison, has seen a much more modest recovery since the March crash.

Customer base and sales continue their upward trajectory

Kogan revealed today that its active customer base has continued on a strong growth trajectory. There were an additional 126,000 active customers added during May to now total 2,074,000. That’s an increase of 6.5%.

Gross sales for Kogan soared higher by more than 100% in the fourth quarter to date (April and May), compared to the equivalent period in 2019.

Kogan previously revealed to the market that the pipeline for new sellers in its Kogan Marketplace remains very strong. This is helping to boost the company’s strong sales momentum and, as such, the Kogan share price.

Profitability continues to climb

Kogan’s profitability also continues to improve. The company’s gross profit increased by more than 130% during April and May.

EBITDA growth was even more impressive. Adjusted EBITDA climbed by more than 200% in the prior two months, compared to the corresponding period.

When EBITDA is adjusted for the financial year to date, it grew by more than 50%. Also, a very impressive result.

Kogan’s strong growth during the last two month follows on from a very strong March quarter. The Aussie ‘etailer’ revealed back then a strong 30% increase in gross sales and a 23% jump in gross profit during the March quarter.

There has been a sharp increase in spending at online retail sites such as Kogan and Amazon since lockdown restrictions were implemented. With more Australians working from home, Kogan has been cashing in on strong demand for goods such as PCs and laptops. Also, other home office accessories as well as home fitness equipment have proven very popular with Aussies isolating at home. Whilst many companies have suffered significant revenue losses due to the COVID-19 crisis, the pandemic has largely been good news for the Kogan share price.

Where to next for the Kogan share price?

In more good news, Kogan also revealed today that it ended the month of May with $58.6 million of cash on its books. The company also has a debt facility which was drawn to $26.0 million. So, its cash position is fairly solid. As mentioned, Kogan’s share price is up by another massive 9% to be trading at $12.41. However, with such a strong rally since mid-March, I feel that Kogan may see some high share price volatility in the months ahead.

More reading

• 3 of the best ASX 200 tech shares for your watchlist
• Why Kogan, NAB, Qantas, & Sydney Airport shares are racing higher
• Is the Westpac share price too high?
• Is today’s BHP, NAB or Afterpay share price a good investment?
• Why today might be a good day to buy NAB and Westpac shares

Motley Fool contributor Phil Harpur owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com 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.

The post The Kogan share price is surging higher following another positive business update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/374wuBb

In late morning trade the S&P/ASX 200 Index (ASX: XJO) is fighting hard to get into positive territory. At the time of writing the benchmark index is down 0.2% to 5,980.7 points.

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

The Kogan.com Ltd (ASX: KGN) share price has jumped 9% to $12.42. Investors have been buying the ecommerce company’s shares after it released a business update. That update revealed that Kogan’s impressive customer, sales, and profit growth continued during the month of May. The company added 126,000 active customers during May. This helped more than double its sales and triple its operating earnings quarter to date.

The National Australia Bank Ltd (ASX: NAB) share price is up 2% to $19.28. The banking giant’s shares were given a big boost this morning by a broker note out of UBS. It has upgraded NAB’s shares to a buy rating with a $20.50 price target. It doesn’t feel that NAB’s outlook is as bleak as first feared.

The Qantas Airways Limited (ASX: QAN) share price has continued its positive run and is up a further 3% to $4.63. Investors have been buying the airline operator’s shares after it announced an increase in domestic flights for June and July. By the end of July, subject to demand, Qantas’ domestic capacity could be 40% of pre-pandemic levels. This morning Morgan Stanley responded to the news by retaining its buy rating and $5.20 price target. 

The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price has pushed over 4% higher to $6.36. This gain appears to have been driven by the aforementioned news out of Qantas. A quicker than expected recovery in domestic tourism would be a big positive for Sydney Airport and limit the cash burn it is currently experiencing.

More reading

• The Kogan share price is surging higher following another positive business update
• Is today’s BHP, NAB or Afterpay share price a good investment?
• Why today might be a good day to buy NAB and Westpac shares
• Qantas share price soars on plans to increase domestic flights
• These top ASX dividend shares could be perfect for income investors

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Kogan.com 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.

The post Why Kogan, NAB, Qantas, & Sydney Airport shares are racing higher appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3eSeDAh

The Vocus Group Ltd (ASX: VOC) share price has been an impressive performer over the last two and a half months.

Since the specialist fibre and network solutions provider’s shares fell to a 52-week low of $1.80 in late March, they have rallied a massive 73% to trade at $3.13 today.

Is it too late to buy Vocus shares?

The Vocus share price can still go a lot higher from here according to one leading broker.

A note out of Goldman Sachs this morning reveals that its analysts have reiterated their buy rating and $3.85 price target on the company’s shares.

This price target implies potential upside of 23% for its shares over the next 12 months.

Why is Goldman Sachs bullish?

According to the note, the broker was pleased to see Vocus reiterate its FY 2020 guidance and announce the refinancing of its debt on Thursday.

Vocus revealed that it expects its FY 2020 earnings before interest, tax, depreciation, and amortisation (EBITDA) to be in the range of $359 million to $369 million.

This compares to the EBITDA of $356 million that Goldman was expecting. It believes this is reflective of the resilience of telecom earnings.

Overall, the broker remains positive on its outlook and also on its valuation in comparison to rival TPG Telecom Ltd (ASX: TPM).

Goldman commented: “We stay Buy on Vocus with this update removing two key investor issues (i.e. refinancing & lack of guidance commentary) and helping to de-risk our positive investment view.”

“This is based on: (1) improving Enterprise earnings outlook, with a meaningful opportunity to partner with NBN Co.; (2) favorable valuation (vs. TPM and history); (3) significant infrastructure asset base, which we see as attractive in a low-rate environment,” it concluded.

Should you buy Vocus shares?

While my preference in the telco space remains Telstra Corporation Ltd (ASX: TLS), I think Vocus is a great option as well.

Times have been hard for the company over the last few years, but it finally appears to be on track now to deliver solid growth over the coming years. This could lead to the Vocus share price outperforming over the medium term.

More reading

• 5 things to watch on the ASX 200 on Friday
• The 10 shares that significantly move the ASX 200 index
• Telstra shares and 2 other ASX companies to buy in a low-interest rate world
• Why I would buy these outstanding ASX 50 shares right now
• ASX 200 hits 6,000 points: Westpac provide AUSTRAC update, Vocus reaffirms guidance

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. 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.

The post Top broker tips the Vocus share price to zoom higher appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2UcSuVw

The Atomo Diagnostics Ltd (ASX: AT1) share price is charging higher this morning after expanding its COVID-19 testing partnership with a French biotech company.

Atomo Diagnostics is a medical device company that supplies rapid diagnostic test (RDT) devices to the global diagnostic market. Its RDT platforms simplify testing procedures and enhance usability for both professional users and untrained self-testers. The company has supply agreements in place for tests targeting infectious diseases such as HIV and COVID-19.

Atomo Diagnostics shares are fresh on the ASX scene after listing on 16 April 2020 at an issue price of 20 cents per share. At the time of writing, Atomo Diagnostics shares are changing hands at 34.5 cents per share – 9.52% higher for the day and 72.5% higher than the IPO price. The company’s market capitalisation is currently sitting just below $200 million.

What did Atomo Diagnostics announce?

After the market closed yesterday, Atomo revealed it has expanded its COVID-19 rapid test partnership with NG Biotech.

Under the existing agreement, Atomo has been supplying NG Biotech with its Galileo rapid test device for use in NG Biotech’s COVID-19 antibody tests. The initial order under the agreement was for 397,200 devices, with NG Biotech having the right to purchase up to 2.465 million devices.

To date, NG Biotech has ordered more than 1.5 million Galileo devices for testing in France. NG Biotech’s test has been CE Marked for professional use in Europe and results are obtained from a drop of blood in 15 minutes.

Under the expansion of the partnership, Atomo now has exclusive rights to market and distribute the COVID-19 antibody test in Australia, New Zealand, and a number of countries in South East Asia – subject to obtaining regulatory approvals in each jurisdiction. The test will be marketed and distributed under the brand ‘AtomoRapid COVID-19 (IgG/IgM)’ and Atomo will be the listed manufacturer.

The pricing arrangements with NG Biotech are limited to a price payable per unit only and do not include any license fees or royalties.

Atomo noted that the period of exclusivity is not currently limited and it is in the process of negotiating a definitive long-term supply agreement with NG Biotech.

What now?

Atomo will now progress regulatory applications within the relevant jurisdictions in the coming months. Based on an assessment of regulatory pathways, the company’s initial focus will be Australia, the Philippines, Hong Kong and Taiwan.

Commenting on the partnership expansion, Atomo’s co-founder and managing director John Kelly said:

“Atomo is delighted to have secured exclusive rights to market, as the listed manufacturer, the COVID19 test which NG Biotech has successfully launched in Europe with initial sales to the French Ministry of the Armies (Defence) and a number of public hospitals, following strong results in independent French clinical studies.”

More reading

• Is the Westpac share price too high?
• The Xero share price just hit a record high: Is it too late to invest?
• Is today’s BHP, NAB or Afterpay share price a good investment?
• Why today might be a good day to buy NAB and Westpac shares
• Qantas share price soars on plans to increase domestic flights

Motley Fool contributor Cathryn Goh 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.

The post Atomo Diagnostics share price charges higher on expanded COVID-19 testing partnership appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3gXTYwo

The Westpac Banking Corp (ASX: WBC) share price had another strong day yesterday, surging 1.28% to $18.18 per share.

While the S&P/ASX 200 Index (ASX: XJO) edged 0.84% higher, Westpac was one of the ASX 200 shares leading the way.

At the time of writing, shares in the Aussie bank were up 5.57% this week, but are they overvalued today?

Is the Westpac share price overvalued?

The ASX bank shares have been on a rollercoaster ride in 2020. The Westpac share price slumped as low as $13.47 in mid-March amid the bear market.

There’s been a strong rebound since, despite weak economic data and Australia heading towards a recession. But Westpac may no longer be the bargain buy it once was. 

Many, including Westpac, announced billions of dollars of impairments in April and May due to COVID-19. However, loan quality may not deteriorate if the economy bounces back quicker than expected.

But all of this seems to ignore the impending recession and its impact on the Aussie economy. The share market is inherently forward-looking but I don’t think all economic impacts are fully priced in.

There’s a lot of cash flying around in markets right now. With interest rates sitting as little as 0.25%, not many people like the idea of savings accounts or bonds for a strong return.

That means you could look towards ASX shares. The Westpac share price is still a long way down from its $30.05 52-week high. It’s been a big 12 months for the Aussie bank highlighted by its AUSTRAC scandal and the subsequent fallout.

Foolish takeaway

I still think the Westpac share price could climb higher and surpass $20 per share in 2020. There could be more volatility ahead, but that’s not necessarily a bad thing if you’re a long-term investor who is willing to buy and hold.

More reading

• Is today’s BHP, NAB or Afterpay share price a good investment?
• Why today might be a good day to buy NAB and Westpac shares
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises 0.8%, travel shares fly higher
• This ASX 200 stock is well placed to beat earnings expectations

Motley Fool contributor Ken Hall 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.

The post Is the Westpac share price too high? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3dMv417