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The Regional Express Holdings Ltd (ASX: REX) share price is shrugging off the continued sell-off on the ASX today.

This comes after the company announced an increase in services across major regional centres on its network.

At the time of writing, the regional airline operator’s shares are swapping hands at $1.10, up 2.8%.

For context, the All Ordinaries Index (ASX: XAO) is trading at 6,830 points, down 0.74%.

Regional Express expands popular services on its network

The Regional Express share price is on the move today as investors digest the company’s latest update.

According to its announcement, Regional Express advised that 11 regional cities will see up to a 67% increase in weekday return services. This includes popular traveller destinations in New South Wales, Victoria, and South Australia.

In total, nine of the services will run from Sydney to other regional cities within the state. They are: Albury, Broken Hill, Coffs Harbour, Dubbo, Orange, Griffith, Merimbula/Moruya, Port Macquarie, and Wagga Wagga.

In addition, Melbourne will add a service to and from Mildura, and Adelaide will run a return service to Port Lincoln.

These services will start on 4 July and, to promote the offering, the new additional services are on sale.

However, the company noted that from June 27, it will be withdrawing from the Sydney to Cooma route. This is due to the lack of demand for the service which has recorded less than 2,000 passengers in the past year.

Regional Express chair John Sharp touched on the update, saying:

Rex sees strong recovery in these regional centres and is dedicating considerable resources to meet this demand. These improved schedules will see us operating more flights on our regional network than pre-COVID and mark a significant turning point for the airline as we return to profitability.

We are confident that FY23 will see a great improvement in the financial performance of our regional operations since Rex will only operate on densely patronized regional routes where the load factors and yields will be much more favourable.

Regional Express share price snapshot

Over the past 12 months, the Regional Express share price has fallen 10% on the back weakened investor sentiment.

When looking at year-to-date, its shares have continued to tread lower to post a loss of 20%.

Based on today’s price, Regional Express commands a market capitalisation of roughly $121 million.

The post Why is this ASX travel share flying higher today? appeared first on The Motley Fool Australia.

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More reading

• Qantas share price lifts amid ACCC decision

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 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 Bank of Queensland Limited (ASX: BOQ) share price is outperforming on Wednesday.

In morning trade, the regional bank’s shares are up 2% to $6.68.

This compares favourably to a 0.6% decline by the ASX 200 index.

Why is the Bank of Queensland share price rising?

The Bank of Queensland share price was given a boost this morning by news that an insider has been buying the bank’s shares.

According to a change of director’s interest notice, Bank of Queensland’s chairman, Patrick Allaway, has taken advantage of recent market weakness to top up his holding.

The release reveals that Allaway picked up 15,000 shares via an on-market trade on 9 June.

The bank’s chairman paid a total of $104,068.50 for the parcel of shares, which equates to an average price of $6.94 per share.

This almost 4% higher than the current Bank of Queensland share price, which means investors can still buy shares at a lower price to what Allaway paid.

Should you buy Bank of Queensland shares?

One leading broker that sees a lot of value in the Bank of Queensland share price is Goldman Sachs.

It currently has a buy rating and $9.01 price target on the company’s shares. This implies potential upside of almost 35% for investors over the next 12 months.

In addition, the broker is expecting dividend yields of over 6.5% per annum through to FY 2024.

Goldman commented:

Our Buy rating on BOQ is predicated on i) BOQ’s cost performance and its continued delivery of ME Bank synergies, which have been accelerated and increased, ii) continued strong above system volume growth, supplemented by its transition to digital platforms and its associated process improvements, iii) BOQ’s 12-month forward PER (ex-dividend adjusted) is trading at a 30% discount to the sector versus a 15-year average discount of 2%.

The post Why is the Bank of Queensland share price outperforming today? appeared first on The Motley Fool Australia.

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More reading

• Top ASX dividend shares to buy in June 2022
• The Bank of Queensland share price just hit a 52-week low. Time to buy?
• Analysts name 2 top ASX 200 dividend shares to buy right now
• Why did the Bank of Queensland share price fall 7% in May?
• What’s dragging on ASX 200 bank shares like NAB on Thursday?

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 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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It’s been an ugly time for ASX financial shares like Macquarie Group Ltd (ASX: MQG). But the investment bank could be about to get more than half a billion dollars of buying interest.

Never mind that the buying support is self-generated. The Australian Financial Review reports that Macquarie just started or is about to buy shares to fulfil executive bonuses.

Beggars can’t be choosers. In this market, any support would be welcomed given the battering the sector is taking.

Macquarie share price recovers some lost ground

I am not saying the news is supporting the Macquarie share price, but it’s worth noting it’s up 1.74% to $166.19 at the time of writing. This, however, won’t save it from bear market territory as the Macquarie share price has shed around 21.4% since the start of this calendar year. A bear market is defined as a peak to trough fall of 20% or more.

Macquarie isn’t alone either. The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price and Westpac Banking Corp (ASX: WBC) share price have also fallen more than 20% from their peaks.

The Commonwealth Bank (ASX: CBA) share price and National Australia Bank Ltd. (ASX: NAB) share price have only just managed to escape the bear market.

Why ASX bank shares are out of favour

The sector has been hit by worries of a recession that could be triggered by big interest rate hikes. The faltering residential market is also dragging on sentiment.

Against this gloomy backdrop, speculation that Macquarie could be about to cough up around $570 million to buy its own shares on market will be welcome news to shareholders.

Bonus support for Macquarie’s share price

This annual event is linked to the Macquarie Group Employee Retained Equity Plan (MEREP). Thanks to the bank’s record full-year results for the period ended 31 March, it requires $870 million of its shares to pay for MEREP, according to the AFR.

To meet this target, it can buy shares from employees looking to cash in and buy the balance on-market.

It’s believed the deadline for staff to sell shares to Macquarie passed last week. It’s reported the bank only managed to secure less than $300 million worth of its shares.

How long can the buying support last?

This reportedly leaves more than two-thirds of the MEREP share requirement unfilled. This is prompting Macquarie to purchase its own shares on the ASX. At least management is getting its shares at a reasonably low price.

But don’t get too excited as $570 million doesn’t go very far when it comes to the Macquarie share price. The average daily volume for the shares is just over one million. Depending on the share price, the extra demand for MEREP won’t last more than four days.

The post Why Macquarie shares could be set for a $570m tailwind appeared first on The Motley Fool Australia.

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More reading

• ASX 200 bank shares tumble: Citi says time to buy
• Macquarie shares are beating the other ASX 200 banks again today. What’s going on?
• Why is Macquarie the only ASX 200 bank share in the green today?
• 2 ASX 200 financials shares named as buys
• The Macquarie share price has lost 10% in a month. So what’s the dividend yield now?

Motley Fool contributor Brendon Lau has positions in Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, Macquarie Group Limited, National Australia Bank Limited, and Westpac Banking Corporation. 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 and Westpac Banking Corporation. 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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Volatility on the ASX share market can open up opportunities to buy some good businesses, according to the experts.

Leading broker Morgan Stanley rates some leading S&P/ASX 200 Index (ASX: XJO) shares as buys, with compelling upside.

Many businesses on the ASX have seen their share prices drop in recent days and weeks. While there is much fear in the market about the effects of inflation and interest rates, investors may also be able to find some long-term opportunities.

Brokers can give a helpful hint about which ASX 200 shares could be worth owning at these prices, so let’s look at two of the buy-rated picks.

Goodman Group (ASX: GMG)

Goodman is one of the largest property businesses on the ASX. It has a global portfolio of properties and projects in the industrial real estate sector.

Morgan Stanley currently rates it as a buy ( or ‘overweight’) with a price target of $25.98. That implies a potential rise of more than 40% over the next year. One of the key factors that the broker likes about Goodman is its growing rent, which has been increasing at a pleasing pace over the last several years.

As an example, in the company’s FY22 third-quarter update, Goodman revealed a 12-month rolling like-for-like net property income (NPI) growth of 3.7%. It also had a five-year weighted average lease expiry (WALE), giving the business income visibility.

Another thing that Morgan Stanley likes is the ASX 200 share’s property development pipeline. It said that the concentration of its workbook in desirable locations has allowed it to increase its development work in progress (WIP) to $13.4 billion. Completions for the nine months to 31 March 2022 were $4.7 billion, with $6 billion in total expected for FY22.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is a large pathology healthcare business. It has operations in a number of countries including Australia, the US, and Germany.

It’s currently rated as a buy (‘overweight’) by Morgan Stanley. The price target is $40, implying a possible rise of around 20%. The broker points to COVID-19 testing as a positive for earnings in FY22.

The company’s COVID-19 testing operations are expected to give FY22 earnings a boost, as they did in FY21. However, the broker is expecting Sonic’s earnings to return to a more normal level in FY23. With that in mind, the Sonic Healthcare share price is valued at 10 times FY22’s estimated earnings and 16 times FY23’s estimated earnings.

The company said within its FY22 half-year result release that it’s expecting a “sustainable level of COVID-19 testing into the future, including routine COVID testing, screening programs, variant testing, whole genome sequencing and antibody tests”.

However, Sonic’s base business revenue is also rising. HY22 base revenue was up 4.3% year on year and up 2.5% compared to HY20 (which was before COVID-19).

A bonus is that Morgan Stanley is expecting the company to keep increasing its dividend over the next couple of years, which matches Sonic’s ‘progressive dividend policy’.

The post Buy these 2 quality ASX 200 shares: broker appeared first on The Motley Fool Australia.

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More reading

• Market selloff: Broker says the Goodman share price now has 65% upside potential
• ‘Attractive, stable’: 2 ASX shares other companies rely on
• Experts name 2 excellent blue chip ASX 200 shares to buy
• Why I think the Sonic Healthcare share price is a buy
• Goldman Sachs rates these ASX shares as buys

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 Sonic Healthcare 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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There are some really compelling ASX growth shares that could be exciting investments for the long term at the current price.

Businesses that are planning long-term growth have the ability to produce attractive compound growth in their profit over the long term.

However, some ASX growth shares have seen a substantial decline in their share price in the last few months.

I like to think about it with a mindset of jumping on good prices while they’re available. That’s why I like these two businesses:

Australian Ethical Investment Limited (ASX: AEF)

Australian Ethical describes itself as Australia’s leading ethical investment manager. It aims to provide investors with investment management products that align with their values and provide competitive returns.

It has an ethical charter that shapes its ethical approach and underpins both its culture and its vision.

A key driver of the business is its funds under management (FUM), which helps the business generate revenue as well as net profit after tax (NPAT). The company is benefiting from consistent superannuation guarantee contributions as well as rollovers from balances from new members that joined.

The ASX growth share is seeing ongoing growth with its customer numbers, which can help the long-term FUM growth. In the FY22 third quarter, customer numbers rose to 79,909, up 4% from 31 December 2021.

Despite all of the volatility, the business reported that at 31 March 2022, its FUM movement for the financial year to date remained positive – it was up 13% since 30 June 2021 to $6.83 billion.

Of the total FUM, $4.42 billion was in superannuation, which may be stickier for Australian Ethical because of the restrictive withdrawal rules of superannuation.

The Australian Ethical share price is down around 65% this year to date.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of my preferred ASX tech shares because of the quality of its client base, its shift to a software as a service (SaaS) model, and its expected growth margins.

The ASX growth share has seen a large shift to its cloud offering. In the FY22 first half, the ASX growth share reported that SaaS annual recurring revenue (ARR) reached $225.1 million, up 44%. It’s expecting SaaS ARR to continue to grow strongly, up more than 40% over the full year.

TechnologyOne says in times like this, customers turn to enterprise resource planning (ERP) software to achieve greater efficiencies in their businesses – they save at least 30% when using its global SaaS ERP.

It boasts that it’s benefiting from improving margins because of the “significant economies of scale” from its solution.

The ASX growth share says it’s on track to deliver total ARR of at least $500 million by FY26. I also think other long-term guidance of the business is very attractive – it’s expecting to grow its profit before tax margin to 35%.

The company is looking to win further growth with its global software solution, increased product adoption by existing customers, new customers, and expansion globally.

The TechnologyOne share price has fallen 19% this year to date.

The post I think these excellent ASX growth shares are buys for 2022 and beyond appeared first on The Motley Fool Australia.

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More reading

• Top ASX dividend shares to buy in June 2022
• Experts name 3 ASX growth shares to buy next week
• 2 beaten down ASX tech shares that analysts rate as buys
• 3 ASX shares to buy now (and one bonus): fund manager
• Analysts name 2 high quality ASX blue chip shares to buy right now

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 positions in and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. and TechnologyOne 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

Forget “crypto winter,” it’s an all-out cryptocurrency apocalypse in the market right now. Top tokens Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Solana (CRYPTO: SOL) hit their lowest levels this year. For Bitcoin and Ethereum, these were lows not seen since late 2020/early 2021. Late last night, Bitcoin, Ethereum, and Solana traded as low as $20,951, $1,095, and $26.06, respectively. 

As of 11:30 a.m. ET, Solana has bounced 10% over the past 24 hours, with Ethereum eking out a small gain of 0.7%. That said, Bitcoin is currently in the red, dropping another 2.6% over the past 24 hours, though still well above yesterday’s lows.

These incredible moves lower among top tokens many view as stores of value appear to be driven by three key factors.

The first is a deteriorating macro environment for risk assets. The Federal Reserve is set to hike interest rates again tomorrow. And following a rather dismal CPI print earlier this week, it’s now widely expected that this hike will be of the 75-basis-point variety (only 50 bps, or 0.5%, was previously priced in).

Secondly, potential systemic fallout from crypto lender Celsius (CRYPTO: CEL) continues to reverberate across the sector. On Sunday, Celsius announced it was freezing withdrawals, signaling that liquidity and solvency may be an issue for this lender, which could have broad impacts on the crypto market. Adding to this intriguing story were rumors that Celsius CEO Alex Mashinsky had been arrested by the FBI.

Finally, Binance, the world’s largest crypto exchange by volume, also announced yesterday that the exchange was freezing some Bitcoin withdrawals. This was blamed on a “stuck transaction” which caused a backlog on the network’s back end. While this problem appears to be resolved, questions are now permeating the sector around just how stable the crypto ecosystem is to price shocks.

So what

There’s a lot of news to take in right now. In many ways, this week has been one of the most eventful for crypto investors in some time. Indeed, while many investors would hope for some semblance of normalcy to take over at some point, it appears negative catalysts continue to find a way to float to the top in 2022.

There’s not much investors can do about the macro environment. Liquidity is going to be pulled from the system from some time, and this will have its effect on the crypto market for sure.

However, it’s the potential systemic risks relating to crypto lenders and exchanges that’s now worrying investors. We all saw what happened when Terra‘s (CRYPTO: LUNA) stablecoin ecosystem imploded. If lower crypto prices mean stablecoins, crypto exchanges, and lending platforms won’t work, that doesn’t make for a bullish long-term case for this sector.

Now what

To be fair, the crypto market hasn’t gone through a true “stress test” via a recession yet. And while we can debate whether we’re already in a recession, or if a recession will even materialize, it’s clear that this environment is perhaps the most unstable the crypto market has seen since its inception. 

Accordingly, 2022 is shaping up to be a volatile year for investors. While I’d like to be able to call a bottom for these top tokens, until there’s some signs of capitulation in the markets, it’s unclear we’re close to the end of the selling. I’m buckling in for what could be a very bumpy ride right now. 

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

The post 3 reasons Bitcoin, Ethereum and Solana just hit their lowest levels this year appeared first on The Motley Fool Australia.

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More reading

• Can the upcoming merge save the Ethereum price from further destruction?
• The Ethereum price just plummeted 17%. What’s going on?
• Why is the Bitcoin price crashing 16% today?
• Could cryptos be facing an upcoming wave of institutional selling?
• What crypto winter? It’s always sunny with Solana

Chris MacDonald has positions in Ethereum and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Ethereum, and Solana. 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 Rio Tinto Limited (ASX: RIO) share price is edging lower on Wednesday morning.

At the time of writing, the mining giant’s shares are down 0.3% to $110.72.

Why is the Rio Tinto share price falling?

Investors have been selling down the Rio Tinto share price today following a poor night of trade for the company’s NYSE listed shares and weaker commodity prices.

This has offset some positive news out of the mining giant this morning relating to its iron ore operations.

According to the release, Rio Tinto has delivered its first ore from the Gudai-Darri iron ore mine in the Pilbara, Western Australia. This is the company’s first greenfield mine in the region to come online in over a decade.

The first autonomous AutoHaul trains loaded with ore from Gudai-Darri’s process plant have travelled the new 166-kilometre rail line that connects to Rio Tinto’s existing rail and port infrastructure.

Management advised that production from the mine will continue to ramp up through the remainder of this year and is expected to reach full capacity during 2023. At which point, it will have an expected life of more than 40 years and an annual capacity of 43 million tonnes.

The release notes that Gudai-Darri will help underpin future production of the company’s flagship Pilbara Blend product. Rio Tinto’s Pilbara Blend products are the world’s most recognised brand of iron ore and are known for their high-grade quality and consistency. These products make up approximately 70% of the company’s iron ore product portfolio at present.

‘A new standard’

Rio Tinto’s Iron Ore chief executive, Simon Trott, commented “The commissioning of Gudai-Darri represents the successful delivery of our first greenfield mine in over a decade, helping to support increased output of Pilbara Blend, our flagship product. It sets a new standard for Rio Tinto mine developments through its deployment of technology and innovation to enhance productivity and improve safety.”

The post Rio Tinto share price lower despite Gudai-Darri update appeared first on The Motley Fool Australia.

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More reading

• Why is the Rio Tinto share price tumbling 6% today?
• 2 ASX dividend shares to buy this month: experts
• 5 things to watch on the ASX 200 on Tuesday
• Rio Tinto share price lifts amid ‘important’ renewable energy step
• 5 things to watch on the ASX 200 on Thursday

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 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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The Syrah Resources Ltd (ASX: SYR) share price is edging higher at last on Wednesday.

In morning trade, the graphite producer’s shares are up slightly to $1.25.

Though, they remain down a sizeable 26% since this time last month.

Why is the Syrah share price falling this month?

There have been a number of catalysts for the weakness in the Syrah share price in recent weeks.

These include the broad market weakness, concerns over an insurgent attack on a nearby mine in Mali, and the sell down of a large shareholder.

In respect to the latter, Copper Strike Limited (ASX: CSE) recently decided to cash in almost a third of its Syrah shares.

According to the release, the mineral exploration company sold 2,642,866 shares (or 28.91% of its holding) in Syrah for an average of approximately $1.75 per share. This resulted in gross proceeds of approximately $4.6 million.

This certainly was great timing. Based on the current Syrah share price, those shares are now worth just under $3.3 million. That’s ~$1.3 million less than what Copper Strike received from its sale.

Though, Copper Strike stressed that it believes “the share price of Syrah continues to have considerable long-term potential upside given the accelerating worldwide uptake of electric vehicles and battery storage.”

So, why is it selling?

Copper Strike revealed its reasoning for the sizeable sale. It explained:

The Company considered it appropriate to reduce some of the Company’s exposure in Syrah given current global market volatility, macro-economic conditions, recent interest rate policy changes in Australia, and the future outlook on global markets by various commentators.

At the same time, Copper Strike is continuing its current strategy in actively seeking project acquisition opportunities, and the Board notes that the proceeds from the partial sale of the Syrah investment is a form of non-dilutive funding that will assist the Company in having the required capital to progress any potential project acquisition opportunities, and also provide funding for general working capital purposes.

The post ‘Considerable long-term potential upside’: So why is this key investor selling down Syrah shares? appeared first on The Motley Fool Australia.

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More reading

• Why Appen, Cleanaway, Syrah, and Westpac shares are dropping
• Why is the Syrah share price crashing 14% today?
• Mineral Monday: What you need to know about vanadium and which ASX shares are cashing in on it
• 2 sold-off ASX shares essential for electric cars

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 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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The National Australia Bank Ltd (ASX: NAB) share price has come under pressure this month following a market selloff.

Since the start of June, the banking giant’s shares have tumbled 14%.

While this decline is disappointing, it has made its dividend yield even more attractive for income investors.

In light of this, let’s take a look to see what analysts are expecting from NAB’s dividends in the coming years.

Where are NAB’s dividends heading?

According to a note out of Goldman Sachs, its analysts are expecting consistent dividend growth from NAB through to FY 2024.

In FY 2021, NAB rewarded its shareholders with a fully franked $1.27 per share dividend. Goldman expects this to be increased to $1.50 per share in FY 2022. Based on the current NAB share price of $26.87, this implies a 5.6% dividend yield.

The broker is then forecasting a 15 cents per share increase to a fully franked $1.65 in FY 2023. This will mean an attractive yield of 6.15%.

Finally, in FY 2024, the broker is expecting NAB’s dividend to increase to $1.72 per share. This equates to a fully franked 6.4% yield.

Are its shares in the buy zone?

The good news for investors is that as well as predicting some juicy yields, Goldman sees plenty of upside for the NAB share price from current levels.

The note reveals that its analysts currently have a conviction buy rating and $34.17 price target on the bank’s shares. This suggests that there is potential upside of 27% for investors.

All in all, according to Goldman Sachs, the total potential return on offer with NAB’s shares over the next 12 months is a sizeable ~33%.

The post Here’s the NAB dividend forecast through to 2024 appeared first on The Motley Fool Australia.

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More reading

• ASX 200 bank shares tumble: Citi says time to buy
• Top brokers name 3 ASX shares to buy next week
• The NAB share price is down 10% this week: Macquarie says it’s a buy
• Why are ASX 200 bank shares rebounding on Friday?
• What exactly is going on with ASX 200 bank shares and the RBA rate rise?

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 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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The large falls being seen across the ASX share market could be opening up some big opportunities for some of these businesses to rebound, according to experts.

It’s important to note that just because something has fallen doesn’t mean it’s definitely going to go back up to the price it was at before the fall. There’s also no telling when investors will regain optimistic sentiment about the ASX share market.

However, experts come up with price targets – that’s where they think the share price will be in 12 months.

With that in mind, here are two ASX shares that are rated as buys with a possible upside of more than 100% if brokers’ price targets end up being accurate.

Step One Clothing Ltd (ASX: STP)

Step One describes itself as a direct-to-consumer online retailer of innerwear. The ASX share says it offers a range of “quality, organically grown and certified, sustainable and ethically manufactured innerwear that suits a broad range of body types”. It operates in Australia, the US, and the UK.

While there is the ongoing market focus on inflation and interest rates, the company recently gave a trading update which included a reduction of guidance because of “difficult trading conditions”. The Step One share price plunged after this announcement.

Revenue is now expected to grow by between 15% to 20%, down from guidance of 21% to 25% growth. Projected pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between $7 million to $8 million, down from $15 million.

The company pointed to lower growth than expected in the USA and UK, though Australia continued to produce a “strong contribution margin”, underpinning revenue growth. Profitability is being hurt by higher marketing costs, as well as higher factory and logistics costs.

The broker Morgans thinks that Step One is a buy, with a price target of $0.60. This suggests an upside of around 160%.

However, the broker acknowledged the difficulties the ASX share revealed in its trading update. But, Morgans is optimistic Step One will keep generating cash flow and making a profit during this period.

The company says it will keep focusing on growth by expanding its product lines and trying to grow its USA and UK businesses.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of homewares and furniture.

It’s currently rated as a buy by the broker Credit Suisse, with a price target of $9.59. That implies a possible rise of around 170%.

The broker noted the trading update that the business released in early May 2022. Temple & Webster said revenue for the period 1 January 2022 to 30 April 2022 was up 23% year on year and up 116% over two years.

The business is investing in various areas of its operations to improve the company. These include data, personalisation, augmented reality, artificial intelligence, and logistics, as well as its private label offering. Management said the business is also open to making acquisitions.

At the current time, Temple & Webster is investing in a new website called ‘The Build’ which sells home improvement products.

Credit Suisse also thinks the company can grow its market share over time with its investments.

The post Experts think these 2 ASX shares have more than 100% upside after the plunge appeared first on The Motley Fool Australia.

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More reading

• Waiting to start investing in ASX shares? Today could be a brilliant time to do it
• Analysts are tipping these ASX growth shares as buys
• Why did the Temple & Webster share price plunge 10% today?
• Do experts think the Temple & Webster share price is a massive opportunity?
• Expert reveals what to do with 4 ASX shares in trouble

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 positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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