The FBR Ltd (ASX: FBR) share price has been a standout performer on the market today – so much so that it attracted a speeding ticket from the ASX.

FBR, also known as Fastbrick Robotics, designs, develops, builds and operates dynamically stabilised robots to address global needs. Using its proprietary technology, the company is in the process of commercialising products for the construction sector, along with technology-enabled solutions for other industries.

What’s going on?

This morning, FBR was issued a ‘please explain’ from the ASX after shares skyrocketed from yesterday’s closing price of 2.9 cents to an intra-day high of 10.5 cents – a mammoth 262% jump. The ASX also noted a significant increase in the trading volume of FBR shares.

While there was no news out of FBR today, the company made an announcement prior to market open yesterday regarding its flagship Hadrian X construction robot.

In response to the ASX’s price and volume query, FBR stated it is not aware of any information that hasn’t been announced to the market which could explain the recent trading in its shares.

Responding further, FBR said:

“Following FBR’s announcement to the ASX on Wednesday, 3rd June 2020 that it had reached a new top laying rate of 200 blocks per hour with its Hadrian X construction robot, FBR received widespread media coverage on tv news, print and radio. The release of the announcement resulted in an increase in share price of 32% yesterday, and FBR believes that the increased media attention subsequently has contributed to the trading activities today.”

Additionally, FBR drew attention to the government’s HomeBuilder residential construction stimulus package which was announced prior to market open this morning.

In any case, FBR considers yesterday’s announcement as a major milestone in the commercialisation journey of the Hadrian X. It was the first time the company had been able to prove the real commercial case of the Hadrian X in practice.

“When you consider that manual brick and block laying costs globally vary anywhere from $10 per square metre to $100 per square metre, we are already cost competitive across a broad range of the market at 200 blocks per hour,” said CEO Mike Pivac.

At the time of writing, FBR shares are sitting 124.14% higher for the day at 6.5 cents per share. This takes the company’s current market capitalisation to $116 million. For context, the FBR share price closed last week at 2.2 cents with a market cap of around $40 million.

More reading

• Telstra shares and 2 other ASX companies to buy in a low-interest rate world
• Top brokers just upgraded these 3 ASX 200 stocks to buy
• 3 ASX dividend shares with big yields above 9%
• Why the Alliance Airlines’ share price is surging higher
• Is the Qantas share price a buy?

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.

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Alliance Aviation Services Ltd (ASX: AQZ) will fly from Brisbane to Proserpine four times a week. The Queensland state government announced the deal in an effort to revive tourism in the area. There is also the option to increase daily flights if warranted by demand.

QLD Premier, Annastacia Palaszczuk said: “Tourism supports one in three jobs in the Whitsundays. We know how crucial this industry is to the livelihoods of people in this region.”

These flights can be booked from today and will begin on 22 June.

Whitsunday Coast Airport COO, Craig Turner said, “These flights present the opportunity for WCA to develop a partnership with Alliance Airlines through this challenging period and beyond.”

Alliance Airlines, the nation’s workhorse

The move further cements Alliance Airlines as a reliable travel partner. The company’s core offering is fly-in-fly-out services for resource projects across the country. These flights increased during the coronavirus pandemic to maintain social distancing. 

The swift and agile approach from the company allowed them to not only increase flights but to also win new resource clients during the pandemic. On 20 March the company also reported a large increase in charter revenue, driven by both social distancing and the lack of operating alternatives. 

The company is one of the unsung heroes of the COVID-19 period through its support of resource projects. In a recent market update, Alliance provided guidance of a likely $40 million dollar profit.

This is in stark contrast to small airline competitor, Regional Express Holdings Ltd (ASX: REX) who entered the pandemic demanding money from state governments of Western Australia and Queensland. 

Year-to-date performance

With a share price that is up by 8.7% year-to-date, Alliance Airlines has outperformed the aviation sector. It has a price-to-earnings ratio (P/E) that is 4 points higher than its 8-year average. In 2019, Qantas Airways Limited (ASX: QAN) took a 19.9% interest in Alliance, make it the airlines largest shareholder. 

This acquisition is currently under investigation by the ACCC. They have raised issues about purchasing such a large stake in an “important and growing competitor”. I agree fully with this as the airline’s strength has come from its independence and agility.

Foolish takeaway

Alliance Airlines is continuing to win both work and favour across the country, it has been a rock-solid partner for the resources sector throughout the pandemic. I believe its ability to deliver continued service has set up this organisation for sustained incremental performance. 

More reading

• Is the Qantas share price a buy?
• Why Afterpay, Infigen, Qantas, & Zip Co shares are charging higher
• ASX 200 up 0.6%: NAB charges higher, ACCC investigates Qantas acquisition
• Why the price of these ASX travel shares soared over 30% since mid-May
• Qantas share price lower on ACCC investigation

Motley Fool contributor Daryl Mather 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 Qantas Airways Limited (ASX: QAN) share price has fallen nearly 38% since the start of the year. Unsurprisingly, this is predominantly due to the COVID-19 pandemic and the resulting restrictions on air travel.

However, Qantas shares have soared 117% from their March lows. This performance exceeds the recovery of the S&P/ASX200 index (ASX:XJO) which has rebounded around 35% since its lowest point.

Let’s first look at two reasons the Qantas share price may still offer compelling value at today’s price of $4.42. Then, we’ll consider what Qantas CEO, Alan Joyce, had to say about the company’s outlook. 

Reason 1: strong brand name

According to Airline Ratings, Qantas has been named the safest airline in the world for 2020. I think it’s fair to say that when travelling by plane, passengers value their safety above everything else. A reputation for absolute safety could definitely be seen as a ‘moat’ or competitive advantage for Qantas. As restrictions continue to ease and plane travel resumes, it’s possible passengers will be prepared to pay a premium for safety. This could be good news for the Qantas share price.

In an ASX media release on 5 May, Qantas reported that is Frequent Flyer program has continued to perform well during the pandemic. The program has enabled some revenues to keep flowing from partnerships with companies such as Woolworths Group Ltd (ASX: WOW).

Also, a survey of Qantas Frequent Flyer members showed 85% were planning to fly as soon as conditions returned to normal. This is another positive sign for the Qantas share price.

Reason 2: strong financial position 

Qantas has secured a further $550 million in debt funding to help it survive the coronavirus crisis.  This was facilitated by borrowing against three of its wholly-owned Boeing 787-9 aircraft. Likewise, $1.05 billion was raised in March against seven 787-9 aircraft. Pleasingly, the group has no significant debt maturities until June 2021. 

In addition, Qantas has sufficient liquidity to continue operating under current conditions until at least December 2021.

As of 4 May 2020, Qantas had short-term liquidity of $3.5 billion which includes a $1 billion undrawn facility. The group expects a cash burn rate of $40 million per week by the end of this month.  

Fuel is a significant expense for airlines and the strategy Qantas takes to keep its fuel costs under control is hedging. Essentially, hedging helps minimise the risk and uncertainty created by oil price fluctuations. 

Unfortunately, as demand for travel significantly declined, the group experienced hedging losses due to the drop in oil prices. These losses, together with the impact of foreign exchange, will result in a $145 million cash outflow by the end of September.

Nevertheless, the Aussie airline stated that there will be no risk of further hedging losses. This should assist the company to retain its strong cash position and help boost the chances of continued growth in the Qantas share price. 

CEO comments

On a further positive note, Qantas Group CEO Alan Joyce said in the 5 May media release:

“Our cash balance shows that we’re in a very strong position, which under the circumstances we absolutely have to be. We don’t know how long domestic and international travel restrictions will last or what demand will look like as they’re gradually lifted.

Our ability to withstand this crisis and its aftermath is only possible because we’re tapping into a balance sheet that has taken years to build”.

Foolish takeaway

Qantas has a reputation of being the safest airline in the world as reinforced by its rating for 2020. Furthermore, the company’s financial position is strong considering the current circumstances. As such, I feel the current Qantas share price may present a buying opportunity. Whilst uncertainty still remains surrounding demand once restrictions ease, an indication that 85% of Qantas Frequent Flyer members will fly once they are permitted to is positive in my view.

More reading

• Alliance Airlines continuing to surge
• 3 large cap shares beating the ASX 200 this year
• Why the Nufarm share price is crashing lower today
• Should you be an ASX bull or bear right now?
• Top brokers name 3 ASX 200 shares to sell today

Motley Fool contributor Matthew Donald has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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 don’t have enough funds to build a truly diverse portfolio, a quick way to add some diversity is with exchange traded funds (ETFs).

Through just a single investment, ETFs give investors exposure to whole indices, industries, and even themes.

There are a large number of ETFs for investors to choose from, but three that I rate highly right now are listed below. Here’s why I like them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

I think the BetaShares Asia Technology Tigers ETF would be a great option for investors. This exchange traded fund provides investors with exposure to a number of exciting tech shares in the Asian market. These include the likes of ecommerce giant Alibaba, search engine company Baidu, and new Afterpay Ltd (ASX: APT) shareholder and WeChat owner, Tencent. These companies are revolutionising the lives of billions of people in the region and look very well-positioned to profit from it over the next decade.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

Another option you can use to diversify is the BetaShares NASDAQ 100 ETF. It provides investors with exposure to the 100 largest non-financial shares on the NASDAQ index. This includes giants such as Amazon, Facebook, Microsoft, and Starbucks. I believe many of these companies have the potential to grow at a quicker rate than the global economy over the next decade. This could lead to the BetaShares NASDAQ 100 ETF providing stronger returns than the ASX 200 for the foreseeable future.

iShares Global Healthcare ETF (ASX: IXJ)

Another option for investors to consider is the iShares Global Healthcare ETF. I believe it could be a quality option for investors due to the increasing demand for healthcare services globally. This exchange traded fund provides exposure to companies across a range of sectors including biotechnology, pharmaceutical, and medical devices. This includes many of the world’s biggest healthcare companies such as CSL Ltd (ASX: CSL), Johnson & Johnson, Novartis, and Pfizer.

More reading

• Are Megaport shares the ones to buy and hold beyond 2030?
• Why I would buy these outstanding ASX 50 shares right now
• Where to invest $2,000 in cheap shares
• Why the shares of Afterpay rival Openpay are up 840% since March
• 3 of the best ASX shares to buy with $3,000 right now

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 AFTERPAY T FPO and CSL Ltd. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS and BetaShares Asia Technology Tigers ETF. 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 ASX tech sector is relatively small compared to the much larger US NASDAQ tech sector. However, it is home to a growing number of exciting tech shares, including Megaport Ltd (ASX: MP1).

You may be familiar with names such as Appen Ltd (ASX: APX), Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO), but perhaps not Megaport.

Here’s why I think this fast-growing tech share is a good buy and hold option for the long term.

What does Megaport do?

Megaport provides a ‘network as a service’ offering to enterprises, or what is commonly referred to as “elastic interconnection services”.

This enables enterprises to increase or decrease their fixed broadband bandwidth. They can do this in response to their own usage requirements and can then ramp up their bandwidth requirements during busy times. Likewise, they can reduce it when demand is lower.

The service is provided via a network of cloud providers, data centre operators, and network service providers.

A simple mobile application enables users to access services for as short or as long a period as they require.

Why is the Megaport business model so compelling?

Megaport has a subscription-based billing model.

This is much more beneficial than being tied to regular network service agreement levels, or expensive long-term contracts.

It also provides Megaport with a sticky recurring revenue stream, receiving revenue from not just the network access points, but also the services that customers consume within the ecosystem.

As more network access points are added, more customers are attracted to joining. Also, existing ones tend to consume more. Thus, the ecosystem continues to grow and grow over time.

Megaport has a geographically dispersed customer base across the Asia Pacific, Europe and North America. This provides it with a diversified income stream.

It also partners with all the leading cloud operators including Amazon Web Services, Google Cloud and Microsoft Azure, further strengthening its business model as none are in direct competition.

Strong customer demand in a fast-growing industry

Megaport is growing rapidly within a fast-growing industry. Demand for its services continues to grow strongly.

It is connected to over 60 data centres globally. And this number continues to climb. The amount that enterprises worldwide continue to spend on cloud computing services is increasing at a rapid clip.

This is leading to solid customer and revenue growth, shown through Megaport’s share price.

In the first half of FY 2020, Megaport reported a massive 70% increase in revenue to $25.9 million.

Its March 2020 quarter update revealed a 10% increase in revenue, quarter on quarter. At the end of March, it had a healthy cash balance of $108.7 million.

Are Megaport shares a good long-term investment?

Buying Megaport shares is potentially a risky investment. Its revenues are growing rapidly and it is still yet to reach profitability.

Also, its current share price is factoring in the expectation that it will continue to grow at a high growth rate. If it fails to meet its growth targets, its share price could be hit harshly over the short term.

However, I still believe Megaport is a good long-term investment. This is despite the possibility of short-term share price volatility.  

Megaport is well placed to tap into the rapid rise of cloud computing and the need for rapid connectivity. The global public cloud services market continues to expand rapidly, as more infrastructure migrates to the cloud.

More reading

• 3 top ETFs you can easily diversify your portfolio with immediately
• 3 large cap shares beating the ASX 200 this year
• Where to invest $2,000 in cheap shares
• Why the shares of Afterpay rival Openpay are up 840% since March
• Should the Xero share price have a P/E ratio of 4,000?

Phil Harpur owns shares of AFTERPAY T FPO, Appen Ltd, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, MEGAPORT FPO, and Xero. The Motley Fool Australia owns shares of Appen Ltd. The Motley Fool Australia has recommended MEGAPORT 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 S&P/ASX 50 index is potentially Australia’s most important large-cap equity index.

It represents 50 of the largest and most liquid ASX shares by float-adjusted market capitalisation.

Whilst this doesn’t necessarily mean that all the shares on the index are buys, I believe there are a few that standout as strong buys.

Three outstanding ASX 50 shares I would buy today are listed below:

CSL Limited (ASX: CSL)

The first ASX 50 share to look at buying is biotherapeutics giant CSL. I think it is one of the best buy and hold options on the index due to its high quality operations. Both its CSL Behring and Seqirus businesses appear well-placed to deliver strong sales and earnings growth over the next decade. This is thanks to their leading products and lucrative research and development (R&D) pipelines. In FY 2019 CSL invested US$832 million in its R&D activities and a similar level of investment is expected this year. I believe these investments will allow the company to maintain its market-leading position and underpin solid profit growth for the foreseeable future.

Goodman Group (ASX: GMG)

I think Goodman Group is another ASX 50 share to buy. It is an integrated commercial and industrial property group which owns, develops, and manages industrial real estate globally. The company’s portfolio has been expertly curated over the last few years to give Goodman exposure to online, logistics, food, consumer goods, and digital economy. I’m particularly positive on its prospects due to its exposure to the rapidly growing ecommerce market. Especially given its relationships with the likes of Amazon and DHL. Overall, I believe Goodman is well-placed to deliver solid earnings and distribution growth over the next decade.

Telstra Corporation Ltd (ASX: TLS)

A final ASX 50 share to consider buying is Telstra. I’ve been very impressed with the progress the telco giant is making with its new strategy. This strategy is stripping out costs and simplifying its business. Combined with the easing of the NBN headwind and the arrival of 5G, I believe Telstra’s struggles are close to coming to an end. This could mean a return to growth is now in sight for the company. In light of this and its attractive valuation, I think now would be an opportune time to invest.

More reading

• 3 of the best ASX shares to buy with $3,000 right now
• These ASX 200 shares could be perfect for a retirement portfolio
• Top brokers name 3 ASX 200 shares to buy right now
• The smartest ASX 200 shares to buy with $2,500 today
• JobMaker is coming. These 3 ASX 200 shares could benefit

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 CSL Ltd. 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.

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The Splitit Ltd (ASX: SPT) share price is racing higher today after the buy now, pay later (BNPL) provider released a trading update for the month of May.

At the time of writing, Splitit shares are sitting 20.15% higher for the day after rallying as much as 42.54% in early trade.

What did Splitit announce?

The BNPL small-cap reported record monthly merchant sales volume (MSV) of US$25.8 million in May, representing increases of 321% compared to May 2019 and 39% compared to April 2020. 

Breaking this down in terms of geography, MSV growth in North America and Europe jumped 336% and 548%, respectively, compared to May 2019. This has been supported by partnerships with global e-commerce retailers such as Purple, Nectar Sleep and Canyon Bicycles.

Splitit also announced a notable increase in total unique shoppers, with the number of shoppers successfully making a purchase using its platform surpassing 290,000 in May. The last 2 months alone have seen the addition of 45,000 new shoppers transacting through Splitit’s platform.

On the merchant front, Splitit now has 964 merchants offering its payment solution. This is up 12% from 862 at the end of March 2020.

Splitit’s average order value also improved in May, increasing to US$939 from US$737 in the first quarter of FY20 ending 31 March 2020.

On the whole, the company attributed these strong results to the onboarding of new large merchants in 2020, the growing shift to e-commerce, and customers increasingly using its payment solution to manage their cash flow.

Commenting on Splitit’s performance, CEO Brad Paterson said:

“We continue to see strong merchant demand as eCommerce expansion accelerates, while merchants are actively pursuing strategies to improve their conversion rates during and beyond the Coronavirus pandemic. Splitit is seeing growth in its share of checkout with merchants as it helps them meet changing consumer needs for greater flexibility and longer payment plans.”

More reading

• Should you ever buy into an ASX IPO?
• Why ASX payments shares might be the biggest winners of the 2020s

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.

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These 3 large caps have beaten the S&P/ASX 200 (INDEXASX: XJO) year to date despite the highly uncertain economic climate. Drawn from 3 different sectors, these shares demonstrate the resilience of Australian equities. 

Discretionary consumer

The consumer discretionary sector has experienced one of its more difficult years, in my experience. Unlike consumer staples like Woolworths Group Ltd (ASX: WOW) or Inghams Group Ltd (ASX: ING), the discretionary sector is one of choice. 

Despite the challenging conditions, however, there have been several companies that have thrived during the coronavirus pandemic. A stand out performer year to date in this sector is Domino’s Pizza Enterprises Ltd. (ASX: DMP). The Domino’s share price is 26.7% higher than it was at the start of the calendar year. In fact, since its low point on 19 March the Domino’s share price has risen by nearly 60%. As a great growth share, Domino’s has not only outperformed the ASX 200 over the past 12 months, it has beaten it over the last 5 years.

Information Technology

Also considered part of the financials sector as an emerging fintech company, Xero Limited (ASX: XRO) has also beaten the ASX 200 this year as well as over 5 years. Xero’s share price is up by nearly 12% year to date. Xero is carving a pathway to becoming a complete accounting platform. Starting with online accounting software, the company has expanded into bank feeds, payroll, inventory and the app marketplace. 

Xero has an almost astonishingly high price to earnings ratio. But, having said that, this is a growth company. Xero announced its first profit recently and some investors were upset that management hadn’t spent every cent acquiring new users.  

Communications

REA Group Limited (ASX: REA) has been a pioneer of online classified ads in the real estate space and is most widely known for its realestate.com.au business. The company’s share price is marginally up since the start of the year, but has still clearly outperformed the ASX 200. 

Since its inception 25 years ago, REA Group has branched out considerably. Today the company offers home loans, commercial real estate listings and innovative services such as shared work spaces. REA Group owns websites that operate in Indonesia, Malaysia, the United States and many other countries. 

Foolish takeaway

These 3 large cap shares have all outperformed the ASX 200 this year so far. And I believe each of them is poised for future growth. Although REA Group reported a 33% reduction in residential listings at the height of the lock down, restrictions are starting to ease. I believe as the economy emerges from hibernation, trading conditions will improve for the company. Furthermore, I feel all 3 of these Aussie large caps are well managed businesses with solid financials to back them up.

Personally, I particularly like Domino’s as a possible buy. I believe it is currently trading at a discount and has a proven track record of solid earnings. 

More reading

• Why the Nufarm share price is crashing lower today
• Should you be an ASX bull or bear right now?
• Top brokers name 3 ASX 200 shares to sell today
• ASX 200 hits 6,000 points: Westpac provide AUSTRAC update, Vocus reaffirms guidance
• Where to invest $2,000 in cheap shares

Motley Fool contributor Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited and Xero. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited and REA Group 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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The Nufarm Limited (ASX: NUF) share price is the worst performer on the S&P/ASX 200 Index (Index:^AXJO) this morning despite its efforts to hide its trading update.

Shares in the crop products group plunged 10.8% to $4.90 when the top 200 stock benchmark gained 0.5%.

The only other ASX shares on the worst performer list were gold producers like Silver Lake Resources Limited. (ASX: SLR) and Northern Star Resources Ltd (ASX: NST) as the gold price fell. But even then, these stocks “only” slumped around 6% each.

Nothing to see here

It’s funny how Nufarm didn’t think it was appropriate to mark its latest announcement to the ASX as “market sensitive” when the share price reaction says otherwise.

An oversight maybe? I would be more forgiving if not for the fact that management buried the update in its announcement titled “Presentation to Credit Suisse Conference”.

It that didn’t smell bad enough, the company lodged it after the market closed at 4.10pm yesterday.

Wrong way to release bad news

Happy coincidence? Call me a conspiracy theorist, but it looked like the company went out of its way to bury the news.

Now Nufarm doesn’t only have to contend with the negative update but questions about management’s credibility, in my view.

Unfortunately, the subterfuge (international or otherwise) didn’t work as at least two brokers downgraded the stock on the back of the update.

Europe is a sore point

The analysts at Macquarie Group Ltd (ASX: MQG) cut its recommendation on Nufarm to “underperform” (meaning a “sell) from “neutral”.

The downgrade was done on the back of management’s comments that the COVID-19 pandemic is creating uncertainties and challenges, such as product demand and exchange rates.

Macquarie noted that the last quarter of the financial year is usually the group’s largest seasonal quarter.

“Europe is experiencing both cyclical and structural headwinds,” said the broker.

“Whilst COVID impacts have exacerbated this, Europe is likely to remain challenging in the medium term given a tougher regulatory backdrop and competitive market conditions.”

The broker cut its 12-month price target on Nufarm to $4.85 from $5.10 a share.

Ahead of fundamentals

Meanwhile, Morgans also downgraded its rating on the stock to “reduce” from “hold”.

“COVID-19 has started to have a greater impact in the 4Q20,” said Morgans.

“As well as dry conditions, Europe’s 2H20 earnings outlook has been materially revised. Finance costs are also now expected to be significantly higher.”

The broker’s price target on Nufarm is $4.76 a share.

More reading

• 3 large cap shares beating the ASX 200 this year
• Should you be an ASX bull or bear right now?
• Top brokers name 3 ASX 200 shares to sell today
• ASX 200 hits 6,000 points: Westpac provide AUSTRAC update, Vocus reaffirms guidance
• Why Austal, Ecofibre, Northern Star, & Nufarm are dropping lower

Motley Fool contributor Brendon Lau owns shares of Macquarie Group Limited and Nufarm Limited (oh no!). Connect with me on Twitter @brenlau.

The Motley Fool Australia owns shares of and has recommended Macquarie Group 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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