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The Humm Group Ltd (ASX: HUM) share price is plunging amid news five members of the company’s six-person board have resigned in the wake of the termination of a planned $250 million sale.

The sale was vehemently opposed by Humm founder, director, and largest shareholder Andrew Abercrombie – who the resigning members of the board now reject working beside.

The Humm share price plunged almost 4% to 50.5 cents in early trading today before regaining ground to 51 cents at the time of writing.

For context, the broader market is in the green on Wednesday. The S&P/ASX 200 Index (ASX: XJO) is currently up 0.168% while the All Ordinaries Index (ASX: XAO) has gained 0.12%.

Let’s take a closer look at what might be weighing on the finance and buy now, pay later (BNPL) provider’s stock today.

Humm share price slumps amid board resignations

The Humm share price is sinking on Wednesday. Its tumble comes after the company announced its chair and all directors – except Abercrombie – are stepping down.

It follows last week’s news that the sale of Humm’s BNPL business to Latitude Group Holdings Ltd (ASX: LFS) had fallen through. Its termination was said to be due to “major disruption in financial markets”.

“The events leading to the termination of the proposed sale of Humm Consumer Finance to Latitude Group Holdings Ltd (ASX: LFS) … have caused the majority directors of Humm … to conclude that they cannot remain on the board of directors with Andrew Abercrombie,” the company said in a release to the ASX this morning.

The release detailed the immediate resignation of directors Alistair Muir and John Wylie.

Meanwhile, Humm chair Christine Christian and directors Carole Campbell and Rajeev Dhawan will resign when replacement directors are appointed.

The company noted the gradual handover would allow the company to “deal with the challenges and opportunities ahead”.

Abercrombie labelled the now deceased deal – that would see the company’s BNPL leg sold to Latitude – a “dud” and “nothing but a garage sale”.

That’s despite Humm noting the business hadn’t turned a profit in 2022 and risks the company’s share price.

Board unanimous ‘excluding one lone dissenting director’

The board further outlined its position regarding the failed sale in a letter to shareholders last night that accused Abercrombie of undertaking “a strident campaign against the proposed sale”. The board went on to say:

The majority directors have been prepared to act to secure [the sale] despite multiple aggressively worded private threats of legal action against us personally from Andrew Abercrombie.

[T]his was the entire board of highly experienced people acting unanimously in all these decisions, excluding one lone dissenting director.

Humm’s stock has struggled this year. It has fallen 45% year to date. It’s also 50% lower than it was this time last year.

The post Humm share price tumbles 4% as majority of board exits appeared first on The Motley Fool Australia.

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More reading

• Why Block, Fortescue, GUD, and Humm shares are sinking today
• Latitude share price lifts on cancelled Humm deal
• Humm share price sinks 11% following termination of $250m BNPL sale to Latitude
• Why Humm, Inghams, Link, and Smartgroup shares are falling
• ‘A dud deal’: Why is the Humm share price falling on Thursday?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Humm Group Limited. 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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Leading fund manager Wilson Asset Management (WAM) has picked a few S&P/ASX 200 Index (ASX: XJO) shares as opportunities.

There has been a lot of volatility on the ASX share market in recent weeks and months amid the focus on inflation and interest rate rises. No one can truly know when conditions will die down. But experts think that the lower valuations represent good prices for many businesses.

WAM manages a selection of listed investment companies (LICs). These include WAM Capital Limited (ASX: WAM), WAM Research Limited (ASX: WAX) and WAM Active Limited (ASX: WAA).

Moreover, a key focus of the WAM LICs is to find “undervalued growth companies” where there is a catalyst that could send the share price higher.

These are two of the ASX 200 shares WAM identifies in its recent update.

ARB Corporation Limited (ASX: ARB)

ARB designs, manufactures, distributes and sells motor vehicle accessories.

In May 2022, the company gave investors a market update citing “numerous” challenges to its business operations. These include an increase in commodity prices, a global shortage of new vehicles, and global logistics and pricing issues. Further to this is a labour and skills shortage and exchange rate volatility.

WAM notes that ARB pointed out it expects an increase in total capital expenditure to $57 million in FY22. That would be up from $33 million in FY21. The company attributes this to costs associated with its factories and upgrades to its retail stores and manufacturing equipment.

The fund manager is “upbeat” that the ASX 200 share will “likely” achieve its projected FY22 revenue of $700 million, supported by its 18% year-on-year increase in sales revenue over the nine months to 31 March 2022.

Wilson Asset Management is positive on the outlook for ARB as it delivers on growth opportunities in Australia and in export markets, development of new products, and fostering of partnerships with major customers.

Worley Ltd (ASX: WOR)

Another business named as an opportunity by WAM is Worley.

Worley provides engineering, procurement and construction expertise to the upstream, midstream, chemicals, power, energy and minerals sectors.

Last month, the ASX 200 share was given three new contracts. It also signed an agreement with Avantium Renewable Polymers to provide engineering, procurement and construction services.

WAM said that the services Worley will provide to these companies aims to support the growth of their assets and their sustainability targets.

With new contracts in the pipeline and FY22 costs expected to be less than half of FY21, the fund manager thinks the revenue and earnings target for the second half of FY22 is “well supported”.

The post This expert thinks these 2 ASX 200 shares are great buys right now appeared first on The Motley Fool Australia.

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More reading

• 3 ASX shares to pounce on after tax-loss selling: report
• 3 ASX 200 shares rocking new 52-week highs on Thursday
• 2 ASX shares the Aussie lifestyle can’t do without
• 3 high-quality ASX 300 shares trading at 52-week lows today
• 3 ASX shares to buy in troubled times: expert panel

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. 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.

What happened

Over the past 24 hours, the price of the meme token Shiba Inu (CRYPTO: SHIB) has jumped roughly 27% as of 10:30 a.m. ET for no obvious reason, although the crypto market is rebounding today after what has been a brutal sell-off as of late. 

There are also a few other recent events that show how Shiba Inu continues to gain traction among the crypto and investing community.

So what

Some are touting a new milestone for Shiba Inu because the token recently reached 3.4 million followers on Twitter, which is now tied with Shiba Inu’s rival Dogecoin.

Both are meme tokens and very similar, so investors may view this as Shiba Inu starting to catch up to Dogecoin. Dogecoin currently has a bigger market cap, but it’s definitely within reach. 

Another interesting phenomenon is that Ethereum whales, investors that on average own $14 million in their crypto wallets, seem to be growing more and more interested in Shiba Inu, which runs on the Ethereum blockchain. Shiba Inu is now the second-largest holding among Ethereum whales.

Whales are the crypto equivalent of “smart” money. These are the investors that likely know how to invest in crypto better than the rest, so their moves are followed closely.

Now what

The rebound in the crypto sector today looks to be investors taking a break from what has been intense selling and perhaps using this as an opportunity to buy the dip.

While Shiba Inu certainly moves with the crypto market to some extent, I am not a believer in this token because it possesses no real-world use case or any kind of technical advantage over other cryptocurrencies. 

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

The post Why Shiba Inu popped today appeared first on The Motley Fool Australia.

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More reading

• Thinking about buying Shiba Inu? Read this first
• Why Bitcoin, Dogecoin, and Shiba Inu are falling today

Bram Berkowitz has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum. The Motley Fool Australia owns and has recommended Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

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

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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on track to record a modest gain. The benchmark index is currently up 0.1% to 6,531.5 points.

Here’s what is happening on the ASX 200 today:

St Barbara share price tanks

The St Barbara Ltd (ASX: SBM) share price has been sold down to a multi-year low on Wednesday. This morning the gold miner revealed that it has deferred making a final investment decision on the Simberi sulphide expansion in favour of a strategic review. St Barbara also advised that there is a near-term risk of disruption to its Touquoy Operation.

Fletcher Building shares jump

The Fletcher Building Limited (ASX: FBU) share price is storming higher today. This follows the release of the building products company’s investor day update. That update reveals that Fletcher Building has reiterated its earnings before interest and tax (EBIT) guidance for FY 2022. It expects EBIT before significant items to come in at ~NZ$750 million.

Zip shares drop to multi-year low

The Zip Co Ltd (ASX: ZIP) share price has continued its slide and hit a new multi-year low. This buy now pay later provider’s shares have come under pressure this week amid speculation it could be about to give up on the UK and US markets. This is due to the large losses the company is making internationally.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Fletcher Building share price with a 6% gain following the release of its investor update. Going the other way, the worst performer has been the St Barbara share price with a 12% decline. This follows the aforementioned update out of the gold miner.

The post ASX 200 midday update: St Barbara and Zip drop to multi-year lows appeared first on The Motley Fool Australia.

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More reading

• 3 reasons why I think the Soul Pattinson share price is an excellent buy right now
• Why is the St Barbara share price crashing 14% to a multi-year low?
• Why is the Fisher & Paykel share price heading south today?
• 5 things to watch on the ASX 200 on Wednesday
• The Zip share price is down 90% in 2022. Why I won’t be buying

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Rio Tinto Limited (ASX: RIO) share price is an interesting investment proposition. The iron ore price has been falling – it’s down 15% in two weeks.

So, does a lower iron ore price mean that Rio Tinto shares are more attractive or less attractive?

Why higher iron are prices are good

As a commodity business, Rio Tinto generates revenue and profit largely by mining resources and selling them to customers.

The higher the commodity price, the better revenue, cash flow, and net profit after tax (NPAT) for the business.

Those bigger financial numbers can also lead to much bigger shareholder payouts in the form of dividends.

So, it’s clear that current, ongoing shareholders would want commodity prices to be higher so that they can boost profit and returns.

Certainly, new investors who buy today can benefit from big dividends while commodity prices are high and cash flow is rolling in.

In Rio Tinto’s FY21 full-year result, it reported that its NPAT rose by 116% to US$21 billion, free cash flow increased 88% to US$17.7 billion, and the total annual dividend was increased by 87% to US$10.40 per share.

But the tricky part for investors is deciding when to buy new shares. Does a lower iron ore price make the Rio Tinto share price more attractive?

My thoughts on the right time to buy Rio Tinto shares

Commodities such as iron ore often work in cycles because of the relationship between supply and demand. Both supply and demand can shift quite a bit during economic cycles.

Sometimes global/Chinese demand for iron ore will reduce and we just don’t know when that will be.

When the iron price falls, the market reduces its profit expectations and then the Rio Tinto share price normally declines. We saw this in 2016 and towards the end of 2021.

Dividends are a good part of the returns, but a 10% decline in the Rio Tinto share price can wipe out the monetary gains of receiving a 10% dividend yield. So, it’s not just about the dividend. I think total returns should be the goal.

I will also point out that some brokers currently rate Rio Tinto as a buy, including Macquarie and Morgan Stanley. The Macquarie price target is $135, implying a possible upside of around 30%, with the broker liking the stronger-than-expected iron ore price which can help profit generation.

It’s impossible to predict when commodity prices and share prices are going to move but I think that when the iron ore price sizeably moves, the Rio Tinto share price is likely to follow it. Since 8 June 2022, the Rio Tinto share price has fallen more than 11%. The share price is now close to the 2022 low.

Foolish takeaway

So, my conclusion is that it’s better to look at Rio Tinto when the share price has fallen significantly along with the iron ore price. I don’t have a crystal ball to know if or when iron ore prices will go below US$100 per tonne or US$90 per tonne, but that’s the sort of level that I’d be looking at the Rio Tinto share price for my own portfolio.

However, I do like that the ASX mining share is exposed to a number of commodities. That means it’s not reliant on just iron ore with assets in aluminium, copper, titanium dioxide, and lithium.

The post The iron ore price has fallen 15% in 2 weeks. So, is the Rio Tinto share price a buy or sell? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 midday update: BHP and Rio Tinto rebound, Westpac rated as a buy
• Rio Tinto share price sinks on iron ore weakness
• Why are ASX 200 iron ore shares getting hammered on Monday?
• The lithium and iron ore ASX shares that I like right now: expert
• Why is the Rio Tinto share price diving 5% on Friday?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. 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 Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is climbing in mid-morning trade.

After losing more than 10% in the past month, the bank’s shares are up 1.87% to $9.25 today.

In contrast, the S&P/ASX 200 Financials (ASX: XFJ) index is down 0.18% to 5,717.7 points.

Let’s take a look at the latest news surrounding the company.

Bendigo Bank renews Australia Post deal

Investors are bidding up the Bendigo Bank share price following the company’s positive update.

According to its media release, Bendigo Bank advised it has signed a new five-year deal with Australia Post for its Bank@Post services.

Under the agreement, Bendigo Bank customers will have access to banking services at more than 3,500 post offices in Australia. This allows individuals and small businesses to conveniently make withdrawals, deposits and balance enquiries free of charge.

The decision to renew the partnership means that both parties have worked together for more than 20 years.

Bendigo Bank estimates that over 120,000 of its customers use Bank@Post’s services each year. In total, there are around 2 million Bendigo and Adelaide Bank customers.

Bendigo Bank CEO and managing director Marnie Baker commented on the deal:

As Australia’s better big bank, we are committed to giving our customers choices about how they do their banking with us, whether that is online, mobile or face-to-face. Extending our partnership with Bank@Post for another five years is a demonstration of that commitment.

The partnership will ensure our customers have access to almost 4000 locations across the nation where they can conduct transactions over the counter – through our combined branch networks – getting us closer to our goal of becoming Australia’s bank of choice.

Bendigo Bank share price summary

Since the start of 2022, the Bendigo Bank share price has recorded relatively flat gains for the period, up 1.65%.

The company’s shares reached a 52-week low of $8.43 in December 2021 before almost reaching that feat again this month.

Bendigo Bank commands a market capitalisation of approximately $5.2 billion.

The post What’s boosting the Bendigo Bank share price today? appeared first on The Motley Fool Australia.

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More reading

• ASX 200 bank shares languish on Thursday despite market lift
• Bendigo Bank share price slides 7% as ASX banking basket unwinds on Wednesday
• Can the Bendigo Bank share price surge in 2022 despite its ‘last in town position’?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo and Adelaide Bank Limited. 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 Washington H. Soul Pattinson and Co Ltd (ASX: SOL) share price keeps drifting lower and I think this makes the S&P/ASX 200 Index (ASX: XJO) share even more attractive.

While bear markets are not fun in the moment, I believe that they present long-term buying opportunities.

I have been buying Soul Pattinson shares recently for my own portfolio. If the share price were to drop any further then I believe it’d be an even better long-term idea.

At the current Soul Pattinson share price, I think the investment house represents good long-term value for the following reasons:

New Hope Corporation Limited (ASX: NHC)

New Hope is one of the larger positions in the investment conglomerate’s portfolio. This business is one of the largest coal miners in Australia.

Coal may not exactly be the most popular commodity due to environmental issues, but coal prices are near record levels, as New Hope points out. The ASX coal mining share noted the thermal coal price rise came after the Russian invasion of Ukraine, raising concerns around global energy security.

The broker Macquarie thinks New Hope is going to pay a grossed-up dividend yield of 31% in FY22 and 25% in FY23.

Soul Pattinson will be a significant beneficiary of this cash flow and this could help shore up any short-term profit weakness from some of its other portfolio investments.

Sell-off is creating opportunities to buy

Soul Pattinson already owns a portfolio of assets and investments across different industries including telecommunications, resources, building products, property, financial services, swimming schools, luxury retirement living, and more.

Hopefully, that diversified portfolio can do well over the long term.

However, the Soul Pattinson investment team has the freedom to adjust the portfolio and make new investments as opportunities are identified.

Over the long term, I think it’s times like this that can be useful for Soul Pattinson because it can take advantage of the lower asset prices.

Growing dividend yield

I think that one of the most attractive features about the business is its dividend.

There aren’t many ASX dividend shares that have increased the dividend every year for more than a decade.

Soul Pattinson has grown its dividend every year for shareholders for more than two decades, going back to 2000.

The company has been able to grow its dividend because its underlying investments have, as a group, been growing the dividends payable to Soul Pattinson. The investment conglomerate pays out most of its annual regular cash flow as a dividend but keeps some of it to re-invest into more opportunities.

However, as the Soul Pattinson share price falls, this also has the benefit of increasing the potential dividend yield for investors in new shares.

At the current valuation, Soul Pattinson has a grossed-up dividend yield of 4.1%.

The post 3 reasons why I think the Soul Pattinson share price is an excellent buy right now appeared first on The Motley Fool Australia.

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More reading

• Why is the Fisher & Paykel share price heading south today?
• 5 things to watch on the ASX 200 on Wednesday
• How does the Macquarie dividend stack up against the ASX big four banks?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• How to start investing in stocks: This ASX 200 share is where I’d begin

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. 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.

What happened 

Shares of Tesla (NASDAQ: TSLA) spiked Tuesday after CEO Elon Musk clarified some comments he made earlier this month about upcoming layoffs at the electric vehicle company. 

The EV stock was up by 9.35% by the session’s close.

So what 

Earlier this month, Reuters reported that Tesla would lay off 10% of its salaried employees, citing an email written by Musk to employees. In the email, Musk said that he had a “super bad feeling” about the economy. He also made it clear that those planned cuts did not include workers directly involved in building Tesla’s products.

But on Tuesday, Musk further clarified his comments in an interview with Bloomberg, saying that while Tesla will reduce its salaried staff by 10% over the next three months or so, it will also continue to hire hourly workers. Musk said the combination of layoffs and hiring will result in just a 3.5% net reduction of Tesla’s workforce.

Musk said that reduction would not be “not super material” and predicted that in a year, the company will have more total employees than it has now.

Investors were apparently happy to hear that the company isn’t reducing its overall headcount as much as originally expected.

Now what 

Despite Tesla’s share price pop Tuesday, the stock is down 31% year to date. And while it’s good to see the EV stock make gains, investors may want to prepare for more share price swings ahead as investors process high inflation, Federal Reserve interest rate hikes, and a market that is nervous about a potential slowdown in the economy. 

That doesn’t mean Tesla isn’t still a good long-term investment, it just means that shareholders could still experience more volatility in the near term. 

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

The post Why Tesla stock soared today appeared first on The Motley Fool Australia.

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More reading

• Should you really buy stocks now or wait a while longer?
• Down 45%, here’s 1 reason to buy Tesla’s dip and 2 reasons to stay away
• Why Tesla stock sold off 7% today
• Why Tesla stock jumped 5% today
• Why Tesla shares were rising today

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

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

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The Cleanaway Waste Management Ltd (ASX: CWY) share price has started lower on Wednesday, currently 3% down at $2.60.

The company today released an update in relation to its New Chum inert landfill in Ipswich, Queensland.

In wider market moves, the S&P/ASX 200 Index (ASX: XJO) has lifted 43 basis points from the open to 6,551.5.

What did Cleanaway announce?

The company provided an update on the New Chum site following damage caused by the flood
events this year.

As a quick recap, the company said:

In February 2022, a significant rain event resulted in inundation of a new cell that was under construction at New Chum. Shortly thereafter the site was closed and related remediation activities commenced, including tankering water offsite for treatment and disposal. Towards the end of May 2022 more rain events added to the body of water, further impacting remediation.

As a result, Cleanaway says the site is likely to remain closed throughout FY23 due to the extensive work required.

The company also provided a clear update on its expected costs for the remediation. It may recover some costs through insurance – but this won’t appear in FY22 financial statements.

In FY22, $30-$40 million of costs are expected to be incurred relating to rectification and remediation at New Chum. These include $11 million of costs expected to be incurred through to 30 June 2022 with the balance relating to a rectification provision to cover further works to be undertaken in FY23.

A further $6 million of net costs will be incurred in FY22 relating to property damage and rectification
and remediation at other sites because of the floods.

The company also mentioned it was awaiting the outcome of a Queensland Planning and Environment Court (2021) decision regarding the “application for a height rise extension”.

Cleanaway share price snapshot

In the last 12 months, the Cleanaway share price has fallen 4.76%, and nearly 17% this year to date.

The post Cleanaway share price slides amid revised costs from flood damages appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for some options in the mid cap space? If you are, you might want to check out the ones listed below.

Here’s why analysts at Goldman Sachs think these ASX mid cap shares could be in the buy zone right now:

 Hipages Group Holdings Ltd (ASX: HPG)

The first mid cap ASX share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider.

The Hipages platform connects tradies with residential and commercial consumers, and also allows them to communicate and run general admin duties.

Goldman Sachs is positive on the company and sees it as a great long term option for investors. In response to recent share price weakness, it commented:

The fundamentals of this business remain very strong, and we see a number of drivers transforming this marketplace into an essential ecosystem for tradies over the long term.

Goldman Sachs has a buy rating and $2.50 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

Another mid cap share that Goldman likes is Readytech.

It owns a portfolio of enterprise software businesses across several market verticals. This includes higher education, HR/payroll, work pathways and local government.

Goldman notes that the company’s competitive position is underpinned by its focus on market niches that are under-served by both large and small enterprise software competitors. It expects this to support strong growth over the medium term.

In our view, RDY will continue to grow mid-teens organically while making accretive acquisitions (such as IT Vision), with profitability underpinned by solid software metrics including low churn at ~3% and high LTV/CAC.

The broker also highlights the company’s defensive qualities, which could be important if Australia falls into a recession.

RDY serves defensive end markets (e.g. higher education, local government) and has high recurring revenue (>85%) which should protect the company’s earnings profile in an economic downturn.

Goldman has a buy rating and $4.60 price target on Readytech’s shares.

The post Goldman Sachs names 2 mid cap ASX shares to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hipages Group Holdings Ltd. and Readytech Holdings Ltd. The Motley Fool Australia has positions in and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings Ltd. 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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