Tag: Motley Fool

The Asian economy is huge and billions of people live there. So it stands to reason that businesses that succeed there can tap into the very large addressable market. We can gain access to that through Asian shares.

According to the Asian Development Bank, GDP in the Asian region will expand by 5.2% in 2022 and 5.3% in 2023 on continued recovery in domestic demand and solid exports. Inflation will rise to 3.7% in 2022 and 3.1% in 2023.​

There are two different ways to try to get exposure to the Asian economy on the ASX. We can look at ASX shares that generate some profit from Asia, such as Blackmores Limited (ASX: BKL), A2 Milk Company Ltd (ASX: A2M) or Domino’s Pizza Enterprises Ltd. (ASX: DMP) as just a few examples.

However, we can also indirectly invest in Asian businesses through exchange-traded funds (ETFs) that own Asian shares, like the two outlined below.

Vanguard FTSE Asia Ex-Japan Shares Index (ASX: VAE)

This ETF is provided by Vanguard, one of the world’s largest asset managers that aims to provide investment funds at a cheap cost. The VAE ETF has an annual management fee of 0.40%.

It is invested in around 1,500 Asian shares that are listed in Asia, outside of Japan, Australia and New Zealand.

The following countries are represented in the portfolio: China, Taiwan, India, South Korea, Hong Kong, Singapore, Thailand, Indonesia, Malaysia and the Philippines.

While there are well over a thousand holdings in the ETF, there are some positions that have the biggest allocations because of their relative size: Taiwan Semiconductor Manufacturing, Samsung Electronics, Tencent, Alibaba, Reliance Industries, AIA Group, Meituan, Infosys, China Construction Bank and Hong Kong Exchanges & Clearing.

Has it done well? Looking at the five years of performance to April 2022, the net return was an average of 6% per annum, with 2.6% per annum of that coming from distributions.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The ASIA ETF is a more specialised investment than the VAE ETF.

It’s about the 50 biggest Asian technology shares in Asia, outside of Japan. The tech sector can be a high-performing industry when there is a combination of revenue growth and high profit margins.

Some of the holdings include Tencent, Alibaba, Samsung, Taiwan Semiconductor Manufacturer, Meituan, Infosys, JD.com, Pinduoduo, Netease and SK Hynix.

Betashares says that “due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.”

This ETF costs a bit more, with an annual management fee of 0.67%.

The country allocation is focused on three to four places – China (51.4% of the portfolio), Taiwan (22.2%), South Korea (18.7%) and India (7.2%).

Just like other technology investments, the ASIA ETF has seen declines this year. It’s down by more than 30% in 2022.

In the five years to May 2022, the index that Betashares Asia Technology Tigers ETF tracks has returned an average of 8.5% per annum.

The post Get exposure to Asian shares with these 2 ETFs appeared first on The Motley Fool Australia.

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More reading

• 3 ASX ETFs for investors to buy next week
• 3 top ETFs to today in June
• 3 fantastic ETFs for ASX investors to buy next week
• Why is the Betashares Asia Technology Tigers ETF having such a cracker of a day?
• 2 beaten down ETFs for investors to buy 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 JD.com and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended NetEase. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and JD.com. 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 Lynas Rare Earths Ltd (ASX: LYC) share price is sinking with the market on Tuesday.

In morning trade, the rare earths producer’s shares are down 9% to $7.81.

What’s going on with the Lynas share price?

Investors have been selling down the Lynas share price on Tuesday amid a broad market selloff which has offset the announcement of a major US deal.

According to the release, the company has signed a contract for approximately US$120 million with the U.S. Department of Defense (DoD).

This contract will see Lynas establish a first of its kind commercial Heavy Rare Earths separation facility in the United States.

The release notes that this mutually beneficial contract supports Lynas ambitions of establishing an operating footprint in the United States, including the production of separated heavy rare earth products to complement its light rare earth product suite.

Furthermore, the company highlights that the separation facility will give US industry access to domestically produced heavy rare earths which cannot be sourced today and are essential to the development of a robust supply chain for future facing industries. These include electric vehicles, wind turbines, and electronics.

Following a detailed site selection process, the facility is expected to be located within an existing industrial area on the Gulf Coast of the State of Texas. Lynas is aiming for it to be operational in financial year 2025.

Management commentary

Lynas’ CEO and Managing Director, Amanda Lacaze, commented:

The development of a U.S. Heavy Rare Earths separation facility is an important part of our accelerated growth plan and we look forward to not only meeting the rare earth needs of the U.S. Government but also reinvigorating the local Rare Earths market. This includes working to develop the Rare Earths supply chain and value added activities.

The U.S. Government’s selection of Lynas for this strategic contract reflects our proven track record in Rare Earths production. The DoD’s decision to fully fund the construction of the Heavy Rare Earths facility demonstrates the priority that the U.S. Government is placing on ensuring that supply chains for these critical materials are resilient and environmentally responsible, and as importantly, their confidence in Lynas’ ability to execute, including access to quality feedstock and processing expertise.

The post Lynas share price sinks 9% despite major US deal appeared first on The Motley Fool Australia.

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• Why did the Lynas share price dive 8% today?
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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 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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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.

Apple (NASDAQ: AAPL) appeared to catch the market by surprise when it recently announced plans to offer a buy now, pay later (BNPL) offering in its wallet app, another step into the financial services space for the consumer tech giant. Many have long feared that tech giants like Apple could one day become banks and offer traditional financial services because of their superior customer acquisition and tech capabilities. With Apple continuing to walk and talk more like a bank, could the company ever get a banking charter and become one?

The BNPL offering

Customers who use Apple’s wallet app to purchase items will have the option to put no money down and pay off the purchase through multiple installment payments with no extra fees or interest attached. The buy now, pay later payment format has become wildly popular among consumers and also has helped merchants increase sales.

To start, this will be a challenge to others in the BNPL space because of how well integrated the offering is. But Apple is also planning to fund the loans from its own balance sheet and make loan underwriting decisions through its own subsidiary, called Apple Financing. Typically, a lot of consumer tech companies will turn to partner banks to help them set up this kind of infrastructure, which is why this announcement has attracted so much interest.

Apple is still partnering with Mastercard to help it set up its BNPL offering. Mastercard has a white-label product and still communicates with the vendors to make the process possible. Goldman Sachs is the issuer of Apple’s credit card. Apple Financing has also apparently obtained all of the necessary state licenses to issue the BNPL loans.

Getting a bank charter

While it’s very uncommon for a large tech company to outright obtain a bank charter, large payments and tech company Block did manage to obtain an industrial bank charter after a very lengthy process. An industrial bank charter is for a state-chartered bank with insurance from the Federal Deposit Insurance Corp. (FDIC), but it is a bit more limited in nature.

So, while Apple could try to pursue a bank charter, I doubt it would, given how long the process might take and the pushback it might receive from the banking industry and other regulators due to antitrust concerns. With more than 1.8 billion active iPhones, if Apple did ever pursue a charter and get more involved in traditional banking services, there could be concerns over data privacy.

A recent example that comes to mind is Meta Platforms‘ foray into stablecoins, which are digital assets pegged to a commodity or fiat currency. Meta for years sank time and resources into building a U.S. dollar-backed stablecoin called Diem, but kept running into regulatory issues. The company tried partnering with an issuing bank for the token but eventually ended up selling the project. Many surmise that regulatory issues were the primary reason for the sale.

Finally, keep in mind that banking is a very heavily regulated industry, with most banks having three regulators. Even Block, with its industrial charter, is still regulated by the FDIC and the Utah Department of Financial Institutions. And then once a company is a bank, it has to raise and hold regulatory capital, which investors are not always so thrilled about.

Will it ever happen?

I find it unlikely that Apple would ever pursue a bank charter due to pushback from regulators, the lengthy application process, and the need to hold regulatory capital. But perhaps after setting up and running some of its banking infrastructure, Apple will get more interested, especially if it sees serious profit potential. But even without getting a charter, the fact that Apple is bringing its loan underwriting under its roof will give the company more data on its consumers’ finances, which could embolden Apple to offer even more financial services in the future.

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

The post Apple Is Starting to Walk and Talk Like a Bank. Could It Ever Become One? appeared first on The Motley Fool Australia.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Bram Berkowitz 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 Apple, Block, Inc., Goldman Sachs, and Mastercard. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Apple and Mastercard. 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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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) remains the most shorted ASX share after its short interest jumped to 17%. Short sellers appear to believe the travel market recovery won’t be smooth sailing, particularly given the rising costs of living which could impact consumer spending.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest edge higher to 13.9%. This betting technology company’s shares may have been targeted due to the lofty multiples they trade on and the company’s ongoing cash burn.
• Nanosonics Ltd (ASX: NAN) has short interest of 12.2%, which is down slightly week on week. Short sellers have been going after this medical device company amid concerns over changes to its sales model in the United States. There are fears that it could be disruptive to sales and lead to higher costs.
• Polynovo Ltd (ASX: PNV) has seen its short interest jump to 11.4%. Not even high levels of insider buying has stopped short sellers from loading up. In addition, this medical device company’s shares will be dumped from the ASX 200 index at the next rebalance.
• Appen Ltd (ASX: APX) has seen its short interest rebound to 9.6%. This artificial intelligence data services company’s soft start to FY 2022 and concerns over disruption in the industry have been weighing on its shares. Appen will also be booted out of the ASX 200 index later this month.
• EML Payments Ltd (ASX: EML) has returned to the top ten with short interest of 8.9%. This payments company’s poor performance during the second half has been weighing on its shares. As has weakness in the tech sector and the derating of growth shares.
• Block Inc (ASX: SQ2) has short interest of 8.9%, which is up slightly week on week. This is largely in line with the short interest levels of its US listed shares. Short sellers will be pleased to see Block’s shares crash on Tuesday amid the market selloff.
• Webjet Limited (ASX: WEB) has short interest of 8.5%, which is down week on week. As with Flight Centre, there are concerns that the travel market’s recovery from the pandemic could be impacted by rising living costs.
• Regis Resources Limited (ASX: RRL) has short interest of 8.5%, which is down slightly week on week. This gold miner has been targeted amid concerns over labour shortages, cost pressures, and lower grades.
• Inghams Group Ltd (ASX: ING) has returned to the top ten with 8.4% of its shares held short. This may have been driven by high input costs and concerns that this could impact margins.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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• What’s impacting the Regis Resources share price lately?
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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 Appen Ltd, Betmakers Technology Group Ltd, Block, Inc., EML Payments, Nanosonics Limited, and POLYNOVO FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., EML Payments, and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and Webjet 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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A Sydney man has pleaded guilty in a Perth court to conspiring to manipulate the price of ASX shares.

Benjamin Heath Cooper of Brighton-Le-Sands made the plea to one charge at the Stirling Gardens Magistrates’ Court in Western Australia.

He now faces up to 10 years’ imprisonment. In 2019 the maximum penalty was increased to 15 years, but Cooper’s offence occurred in 2015.

The conviction was the result of an investigation by the corporate watchdog Australian Securities and Investments Commission.

Cooper, on 16 November 2015, conspired with Quantum Resources Limited director Avrohom Kimelman and one other person to manipulate the company’s shares.

Quantum Resources Limited is now known as Nova Minerals Ltd (ASX: NVA).

Kimelman was convicted last year after pleading guilty.

Cooper’s case was adjourned to a directions hearing at the Supreme Court of Western Australia on 30 August.

The post Sydney man faces 10 years’ jail for manipulating ASX shares appeared first on The Motley Fool Australia.

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• Can the Altium share price regain its previous highs in 2022?
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Motley Fool contributor Tony Yoo 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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Like many other tech shares, the Altium Limited (ASX: ALU) share price has had a shocker of a run so far in 2022.

After reaching an all-time high of $45.30 on 30 December, the electronic design software company’s shares closed Friday’s session at $27.08. That represents a fall of more than 40% in the space of under six months.

While shares in the former market darling are down for now, let’s take a look at whether a recovery is on the horizon.

Can the Altium share price recover lost ground?

Despite the company reporting a strong performance in its half-year results in February, the Altium share price has tanked. A 35% drop across the S&P/ASX All Technology Index (ASX: XTX) so far this year is taking a major toll.

A perfect storm of rising inflation as well as a global semiconductor chip shortage and general economic slowdown is sending tech investors fleeing.

And with Wall Street officially entering bear market territory overnight Aussie time, this week looks set to deliver more bad news for investors.

A number of economists are forecasting a recession in the United States within the early part of 2023.

The US consumer price index report released on Friday showed that inflation jumped 8.6% last month, more than the 8.3% forecast. This is the highest monthly inflation jump in the US in 41 years.

Inflation is continuing to be a key driver of share markets globally as investors brace for more rate hikes from the US Federal Reserve.

It’s worth noting that Altium’s revenue base is predominately derived from the United States, followed by Europe and then China.

The company does, however, remain debt-free and has a net cash balance of US$195 million (as of 31 December).

What do the brokers think?

A number of brokers weighed in on the Altium share price following the release of the company’s half-year financial scorecard.

According to ANZ Share Investing, Jefferies cut its price target by 4.5% to $42.61 apiece for Altium shares. Based on the current share price, this still implies an upside of approximately of 57%.

In addition, Bell Potter has a ‘buy’ rating and a $41.25 price target. This reflects a potential increase of around 52% from where Altium shares last traded.

Altium share price snapshot

A rollercoaster 2022 has led the Altium share price to register a loss of 40% for the period.

The company’s shares hit a 52-week low of $24.97 last month, and have struggled to regain much ground since.

On valuation grounds, Altium presides a market capitalisation of roughly $3.56 billion.

The post Can the Altium share price regain its previous highs in 2022? appeared first on The Motley Fool Australia.

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• Experts name 3 ASX growth shares to buy next week
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Motley Fool contributor Aaron Teboneras has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. 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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What a turbulent 2022 it has been for the Mineral Resources Limited (ASX: MIN) share price.

After reaching an all-time high of $66.88 in January, the ASX mining share fell by about 35% to hit $43.72 in February.

In the following months, they climbed again to finish at $56.81 at Friday’s market close.

Overall in 2022, the Mineral Resources share price is up by 1.45%.

What’s the outlook for Mineral Resources?

The Mineral Resources share price has travelled predominately sideways since the second week of April. There’s been no news from the company since early May.

A catalyst for movement in the Mineral Resources share price this year could be rebounding iron ore prices. But the lithium sector is facing bearish sentiment.

Goldman Sachs recently released a report forecasting a severe drop in the price of lithium after it hit record highs.

This led to a number of popular ASX lithium shares erasing their meteoric gains captured in 2022.

Nonetheless, the improvement in iron ore prices but downward pressure on lithium prices has caught the eye of one broker.

As such, Credit Suisse analysts retained an outperform rating along with a price target of $73 for Mineral Resources shares. This implies an upside of close to 30% based on the last closing price.

The broker clearly believes that the market overreacted to Goldman Sachs’ news and this presents a buying opportunity.

With that in mind, Mineral Resources could be poised to shoot higher in the second half of 2022.

The company has a large exposure to iron ore and lithium assets along with a pipeline of key growth projects.

Mineral Resources share price snapshot

Regardless of the volatile swings, Minerals Resources shares are up 15% since this time last year.

By comparison, the S&P/ASX 300 Metals & Mining (ASX: XMM) index is 3% higher over the same time frame.

Based on valuation grounds, Mineral Resources commands a market capitalisation of roughly $10.75 billion.

The post Can the Mineral Resources share price crack new, all-time highs in 2022? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Goldman Sachs. 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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There are many brokers who believe the Corporate Travel Management Ltd (ASX: CTD) share price is attractive, rating the ASX travel share as a buy.

The ASX travel sector has been through a lot of disruption since the onset of the COVID-19 pandemic. However, some of those impacts are starting to lift.

While the share price of Corporate Travel Management has recovered quite a lot of its lost ground over the past two years, some experts believe the company is an opportunity for investors.

When a broker says buy, that doesn’t automatically mean a share is going to do well over the next 12 months. But it’s interesting when so many brokers simultaneously think a particular ASX share is good value.

The latest news from this ASX travel share

Company updates can have a sizeable impact on ASX travel shares, particularly in this COVID-19 era.

Last month, Corporate Travel Management gave an update regarding its recovery. It said that revenue is expected to surpass the 2019 calendar year levels in the fourth quarter of FY22, which is the quarter we’re in now.

The company said it expects to be more than 75% larger at full recovery for the travel sector, partly due to “transformational acquisitions” during the pandemic. The company also said it’s targeting $265 million in earnings before interest, tax, depreciation, and amortisation (EBITDA) when at 100% recovery.

The business boasted that it’s recovering faster than the wider corporate travel sector in its largest regions. It said it’s seeing “strong” market share gains in all regions. It notes that, for clients, a value proposition, global scale, and financial strength are all “highly relevant” in the COVID-19 recovery period.

Corporate Travel Management said that it has been making underlying EBITDA profits since March 2021. It has zero debt and management believes it has sufficient cash to support a full recovery.

In terms of the outlook, Corporate Travel said it’s expecting strong revenue and EBITDA momentum into FY23. It experienced a record in March and was expecting new records in April and May.

Broker ratings on the Corporate Travel Management share price

Multiple brokers think this ASX travel share is a buy. All of them have price targets above the current Corporate Travel Management share price, which finished Friday’s session at $20.68.

A price target is basically where an analyst thinks the share price will be in 12 months.

Macquarie rates it as a buy with a price target of $25.80. That implies a potential upside of about 25%. It’s expecting a quicker recovery for the ASX travel share than others in the sector due to the makeup of its client base.

Ord Minnett is another broker that’s positive on the business with a price target of $25.86, also about a 25% rise.

UBS is expecting a bigger rise in the Corporate Travel Management share price. Its price target is $28.20. That implies a possible uplift of more than 35% over the next year. UBS thinks there could be potential for further acquisitions.

Morgan Stanley is even more positive about the business, with a price target of $30. That suggests a possible rise of about 45%. The broker is optimistic about the impending travel sector recovery and its impact on the business.

Of the above brokers, it’s Macquarie and Morgan Stanley that have the highest expectations for the company’s profitability. They put the current Corporate Travel Management share price at 23x FY23’s estimated earnings.

The post Board for take-off: Brokers rate the Corporate Travel Management share price a buy appeared first on The Motley Fool Australia.

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• Best ASX shares to buy in June 2022
• Down 15% in a month, is the Corporate Travel share price a bargain?
• Are investors missing out on these ASX share opportunities?

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 Corporate Travel Management Limited and 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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If you’re looking to take advantage of the recent market weakness, then you may want to check out the two blue chips listed below.

Here’s why these blue chip ASX 200 shares are highly rated right now:

CSL Limited (ASX: CSL)

The first blue chip ASX 200 share to look at is CSL. It is a leading biotechnology with a portfolio of life-saving and lucrative therapies.

These products are generating billions in sales each year but but management isn’t settling for that. Each year, the company invests in the region of 10% to 11% of its sales back into research and development activities. This ensures that CSL has a pipeline of products under development with the potential to save lives and underpin growing revenue.

CSL is also aiming to acquire Vifor Pharma in the coming months. This will bolster its portfolio and development pipeline with key renal therapies.

Analysts at Citi are confident in the company’s outlook. Particularly given the “continued improvement in plasma collection and strong underlying demand.” Citi has a buy rating and $335.00 price target on CSL’s shares.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 blue chip share that could be a top option for investors after the selloff is Wesfarmers. Even before today’s probable decline, this conglomerate has seen its shares fall 27% in 2022.

That team at Morgans is likely to see this as a buying opportunity. Its analysts recently retained their add rating with a price target of $58.40.

Morgans is a fan of the company’s portfolio of businesses. These include retailers such as Bunnings, Kmart, and Priceline Pharmacy, and a collection of chemicals businesses. Combined with its strong management team and equally strong balance sheet, the broker sees Wesfarmers as a great long term pick.

It commented: “We continue to see WES as a long-term, core portfolio holding with a strong mix of businesses, highly regarded management team and a healthy balance sheet.”

The post Should you buy these top blue chip ASX 200 shares after the market selloff? appeared first on The Motley Fool Australia.

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More reading

• Should income investors buy Wesfarmers shares for the dividends?
• How much further could the Wesfarmers share price fall? Here’s what the experts reckon
• Experts name 2 ASX dividend shares for income investors to buy now
• Why is the CSL share price defying today’s sell-off?
• The Wesfarmers share price is trading at 2-year lows. Time to plough in?

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 CSL Ltd. The Motley Fool Australia has positions in and has recommended Wesfarmers 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 Immutep Ltd (ASX: IMM) share price has gyrated in recent months, having slumped from a 52-week high of 71 cents back in November to close Friday’s session at 37 cents.

Investors pushed the stock to 52-week lows by April this year, when it then found buyers at the 30.5 cents mark, and it has been on an upward ascent since.

As seen below, the Immutep share price has gained around 7% in the past month, despite the period of volatility leading up to this point.

What tailwinds are there for the Immutep share price in June?

The Immutep share price came out of May in a healthy position, having strengthened throughout the month. Investors pushed the stock around 24% higher in May following two updates regarding the company’s lead drug candidate, efti.

Study readouts are key in the growth narrative of biotech stocks like Immutep. For the company, news around its etfi compound has been paramount for its share price appreciation.

Most recently, Immutep advised of another phase 2 trial update regarding the use of etfi as a combination therapy with the drug Keytruda (pembrolizumab).

The trial, called TACTI-002, “met its primary objective for 1st line non-small cell lung cancer (NSCLC) patients in a PD-L1 all-comer Phase II clinical trial conducted in collaboration with MSD”, the company said.

[The] “combination of efti plus pembrolizumab shows favourable anti-tumour activity…[dosages] were safe and well tolerated, with a safety profile that is consistent with that observed in previously reported studies,” it added.

Speaking on the results, Immutep CEO Marc Voigt said:

We are delighted that patient outcomes are improved with the combination of efti plus pembrolizumab across different patient groups. The data is encouraging for patients, as there is an unmet medical need particularly for those with NSCLC with no or low PD-L1 expression.

Immutep was also on the radar of Pengana High Conviction portfolio manager James McDonald when he spoke to The Motley Fool’s Tony Yoo last month.

McDonald said there was “very substantial upside” to be had in the Immutep share price should the company be able to successfully tap into its US$50 billion addressable market.

In the last 12 months, the Immutep share price has tumbled by more than 43% and is also down around 24% this year to date.

The post What’s driving the Immutep share price in June? appeared first on The Motley Fool Australia.

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More reading

• Why has the Immutep share price rocketed 24% in a month?

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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