Tag: Motley Fool

The Insurance Australia Group Ltd (ASX: IAG) share price has had a rough run over the last couple of weeks, driven by news regarding 2 major legal battles.

The company has released updates on both February’s second business interruption test case and a legal suit brought against it in the Federal Court.

As of Tuesday’s close, the IAG share price is $4.40. That’s 4.55% lower than it was a fortnight ago.

For context, the S&P/ASX 200 Index(ASX: XJO) has gained 2.54% in that time.

Let’s take a closer look at the news that’s been weighing on the insurance giant’s stock lately.

What’s been dragging the IAG share price lower?

Second business interruption test case

The IAG share price has been slipping since it released an update on the second business interruption test case 2 weeks ago.

In that update, the company noted that the 28-day deadline for policyholders to lodge an application to seek leave to appeal the judgment from the Federal Court, handed down on 21 February, had passed.

It stated that some policyholders had appealed for special leave regarding some aspects of the judgement. Additionally, IAG had filed an application for special leave to appeal the finding on JobKeeper payments.

IAG stated that it believes a release from the provision will go ahead. The company said that will probably be recognised over time.

However, it’s not adjusting its $1,222 million net provision for business interruption claims. Though, it said it will adjust its predicted claims costs and provision accordingly as more certainty emerges.

The IAG share price slipped 1.3% on the release of the update.

Plot twist in Greensill drama

Though, the IAG share price was in the green yesterday following a plot twist regarding claims made against it in the Federal Court, reportedly worth nearly $300 million.

The company is battling against claims that it’s liable to payout insurance policies connected with the now-defunct Greensill Capital.

The insurance policies were covered by Bond and Credit Co, of which IAG used to own a 50% stake. It sold the stake to Tokio Marine in 2019.

However, Tokio Marine made headlines yesterday when it announced it believes the policies were fraudulently obtained by companies connected to Greensill’s founder, Lex Greensill.

“In light of those fraudulent misrepresentations and fraudulent breaches of an insured’s duty of disclosure, Tokio Marine has today advised counterparties that these policies and related obligations are void from inception,” the insurer said in a statement.

“Tokio Marine will vigorously defend any claims against it and against BCC relating to any policies purportedly issued to Greensill.”

In response to Tokio Marine’s statement, IAG released a price sensitive announcement to the market yesterday.

It once again maintained it had no net insurance exposure to trade credit policies sold through BCC.

It also said that it’s continuing to work with Tokio Marine to defend claims and litigation asserting otherwise.

IAG share price snapshot

Following its recent tumble, the IAG share price is back into the year to date red.

Right now, it is 1.3% lower than it was at the start of 2022. It has also slumped nearly 9% since this time last year.

The post The IAG share price has dumped 5% in 2 weeks. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Why did the IAG share price underperform the ASX 200 by 11% in March?
• Owns IAG (ASX:IAG) shares? Here’s your outlook for April
• Have IAG shares been a good investment? Here’s what $10,000 invested 4 years ago looks like now
• What’s driving the IAG (ASX:IAG) share price lower on Wednesday?
• ASX 200 (ASX:XJO) midday update: Block and Zip jump, Fisher & Paykel Healthcare sinks

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 owns and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/pioAV8L

The Qantas Airways Limited (ASX: QAN) share price edged higher following an update from the Australian Competition & Commission (ACCC).

At Tuesday’s market close, Qantas shares ended the day up 0.19% to $5.17.

Let’s take a closer look at what was released to the ASX today.

ACCC proposes not to take enforcement action over Qantas acquisition

Before market open, Brisbane-based airliner, Alliance Aviation Services Ltd (ASX: AQZ) released a statement from the ACCC regarding Qantas’ 19.9% acquisition of the company.

Alliance advised that the ACCC wrote a letter stating that it will not take any further enforcement action in relation to the takeover.

Qantas secured the minority stake in Alliance during 2020 for roughly US$45 million.

At the time, alarm bells rang as the competition watchdog signalled its concerns about Qantas’ monopoly in the domestic travel market.

While no action has been taken since the investigation began 3 years ago, this could change.

The ACCC said that it will continue to monitor Qantas’s conduct in the industry regarding the acquisition, and action could happen at a later date.

Nonetheless, the news appears to not have bothered investors, with the Qantas share price travelling slightly higher.

On the other hand, the Alliance Aviation share price lifted 1.87% to $3.82 apiece.

Qantas share price snapshot

Since the start of 2022, Qantas shares have travelled on a rollercoaster, posting a gain of around 3%.

However, when looking at a larger time frame such as the last 12 months, its shares are relatively flat.

Qantas commands a market capitalisation of roughly $9.74 billion, making it the 60th largest company on the ASX.

The post What happened to the Qantas share price today? appeared first on The Motley Fool Australia.

More reading

• Why AGL, Alliance Aviation, Woodside, and Xero shares are charging higher
• What is the current dividend yield for Qantas shares?
• ‘Key to our future’: What’s going on with the Qantas share price today?
• Why is the Qantas share price lifting today?
• Finally! 4 travel ASX shares ready to take off: expert

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. owns and has recommended Alliance Aviation Services Ltd. The Motley Fool Australia owns and has recommended Alliance Aviation Services Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/6ThgVqa

The Northern Star Resources Ltd (ASX: NST) share price has surged in the past couple of months.

Since 4 February, Northern Star shares have gained around 23%, making it one of the best performers across the sector. For comparison, fellow miner Newcrest Mining Ltd (ASX: NCM)’s share price increased by 21% across the same time frame.

At the time of writing, Northern Star shares are swapping hands for $10.51, down 1.96%.

What’s happened to the Northern Star share price?

Lately, the acceleration in the price of gold has boosted investor sentiment, likely helping the Northern Star share price.

Traditionally, investors flock to the yellow metal as a safe-haven asset when there is uncertainty in the market.

While the world is slowly moving past COVID-19, the war between Russia and Ukraine has sparked a gold rush.

Earlier this month, the price of gold soared above the US$2,000 barrier but has since fallen a touch under. Currently, gold is fetching US$1,927 an ounce.

Back on 4 February, the precious metal was fetching around US$1,808. This represents an increase of about 7% over the two-month period.

As such, Northern Star shares have risen from $8.54 at the time.

It’s worth noting the price of gold spiked to an all-time high of US$2,072.90 on 7 August 2020. Northern Stars shares closed at $15.89 on the day.

However, you may be wondering why the company’s share price is nowhere near the level it was in 2020, given the price of gold is almost the same.

This is likely due to other macroenvironmental factors such as the United States Federal Reserve’s intent on lifting interest rates this year. The government body noted that inflation accelerated to 6.9%, the highest rate in nearly four decades.

Following along, the Reserve Bank of Australia is being tipped to hike rates twice in 2022.

Rising interest rates drag down the price of precious metals, and investors are apparently mixed for the moment.

What do the brokers think?

A number of brokers believe the Northern Star share price is trading at a bargain price.

Last month, Morgan Stanley slashed its outlook on Northern Star shares by 3% to $12.80 per share. Based on the current share price, this implies a potential upside of 22% for investors.

While the broker reduced its assessment on Northern Star, it still sees value in the gold miner.

On the other hand, UBS raised its outlook on the company’s shares by 11% to $12.00. Its analysts believe Northern Star shares still have some room to bounce higher.

The post Why has the Northern Star (ASX:NST) share price gained 23% in 2 months? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top ASX shares to buy in April 2022
• 5 things to watch on the ASX 200 on Wednesday
• The Northern Star (ASX:NST) dividend is being paid today. Here’s the lowdown
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Aaron Teboneras owns Northern Star Resources Limited. 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/DLZ9xQ4

March was an alright month for the APA Group (ASX: APA) share price despite no price sensitive news being released by the company.

The energy infrastructure company’s stock gained 6.17% last month, ending March trading at $10.67.

That was just a few cents off its 52-week high of $10.88, reached in intraday trade on 31 March.

However, APA’s gains weren’t enough for it to outperform the S&P/ASX 200 Index (ASX: XJO). The index gained 6.39% last month, beating the APA share price’s performance by a measly 0.22%.

So, what might have driven the S&P/ASX 200 Utilities Index (ASX: XJO) constituent’s stock in March? Let’s take a look.

What boosted APA’s stock last month?

The APA share price performed in line with the broader market in March, as did the ASX 200 utilities sector.

The 3-stock strong sector recorded a gain of 6.69% last month, driven by the Origin Energy Ltd (ASX: ORG) share price’s 9.3% rise.

Though, a small amount of news regarding APA did hit the market in March.

An update on a feasibility study into delivering low-cost hydrogen conducted by a consortium involving APA dropped late last month.

The consortium also includes Pilot Energy Ltd (ASX: PGY) and Warrego Energy Ltd (ASX: WGO).

Pilot Energy told the market that the feasibility study is looking good so far. It’s set to be completed in the coming weeks.

Additionally, 4 of the company’s projects were recently selected to receive a share of $50.3 million under the Morrison Government’s national gas infrastructure plan.

Their selection was announced by Minister for Industry, Energy, and Emissions Reduction, Angus Taylor on 22 March.

The APA projects set to receive a share of the cash are Victoria’s Southwest pipeline expansion project, Queensland’s Project Range project and Surat Hub project, and Australia’s East Coast Gas Grid Expansion Stage 2.

APA share price snapshot

Despite trading relatively in line with the ASX 200 last month, the APA share price has outperformed it year to date.

Right now, the infrastructure company’s stock is 3.3% higher than it was at the start of 2022. Over that same period, the ASX 200 has slipped nearly 0.9%.

The post Here’s what happened to the APA share price in March appeared first on The Motley Fool Australia.

More reading

• 2 defensive ASX dividend shares offering reliable income
• Why did the APA (ASX:APA) share price just ink a new 52-week high?
• The APA (ASX:APA) share price is up $1 in 7 years. Have the dividends been worth it?
• Are analyst upgrades on the way for APA (ASX:APA) shares?
• Here’s why the APA (ASX:APA) share price could be a top dividend share

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 owns and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/0dEAbuK

After a decent start to the day, the Webjet Limited (ASX: WEB) share price is trading lower this afternoon.

At the time of writing, the online travel agent’s shares are down 0.5% to $5.47.

This means the Webjet share price is trading largely flat in 2022.

Where next for the Webjet share price?

According to the team at Goldman Sachs, its analysts believe the Webjet share price could take off from here.

This morning Goldman retained its buy rating and $6.90 price target on the company’s shares. This implies potential upside of 26% for investors over the next 12 months.

What did the broker say?

Webjet remains the broker’s top pick in the sector. Its analysts prefer the company to rival Flight Centre Travel Group Ltd (ASX: FLT), with the latter getting only a neutral rating and $19.50 price target.

In respect to the travel market, the broker believes that pent up demand will offset inflationary pressures. It commented:

“Despite the inflationary macro environment, we believe the outlook for travel remains relatively protected due to pent-up demand for travel as well as strong consumer health from an economic perspective. Domestically in Australia, our expectations are for consumption to remain robust at c. 6.7% CAGR over FY22-24e on a nominal basis with the lifestyle services category (travel, entertainment etc) expected to see the best growth at c. 10.8% CAGR over the same period.”

But the main reason that Goldman is positive on the Webjet share price is the WebBeds business to business (B2B) business. It explained:

“Webbeds is the 2nd largest Bedbanks operator globally with Hotelbeds, the number 1 player, remaining a strong market leader. Management estimates the addressable market for the Bedbanks business to be at c. A$70bn, representing c. 8.8% of the accommodations market.

At the other end of the COVID crisis, while questions remain about the permanent closure of some individual hotels, we believe that the Bedbanks businesses will remain beneficiaries of the recovery due to their broader distribution ability which is a positive in the constrained demand environment.

Separately, we expect the Webbeds business to be more efficient coming out of the pandemic driven by greater efficiencies from streamlining of platforms and ERP and other initiatives which the group expects to deliver c. 20% increase in cost efficiencies.”

The post Why this broker thinks the Webjet share price can fly 26% higher appeared first on The Motley Fool Australia.

More reading

• Here’s why the Flight Centre share price is taking off today
• How did the Webjet share price travel in March?
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to buy next week
• Federal budget: Goldman Sachs names 4 ASX shares to buy

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 recommended 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/HLYNOUf

The Bitcoin (CRYPTO: BTC) price is up 1.5% over the past 24 hours, currently trading for US$46,695 (AU$61,611).

Depending on your dateline, Bitcoin will have kicked off April somewhere around US$47,397, though it had some wild swings on the first day of the month.

With the world’s biggest crypto by market cap enjoying a range of tailwinds last month, the Bitcoin price finished March up 20%.

But that’s virtual water under the bridge.

What crypto investors want to know now, of course, is what to expect for the Bitcoin price in April.

Where to next for the Bitcoin price?

Over the past few months, cryptos have moved similarly to risk assets, like high-growth tech shares.

With risk appetite rebounding, the Bitcoin price has done well.

Looking to April and beyond, DeVere Group chief executive Nigel Green says crypto investors should keep a close eye on the key psychological price barrier of US$50,000.

If the Bitcoin price were to “surge through this key price marker, we expect the current bull run would become supercharged as crypto FOMO [fear of missing out] would kick in – as it typically does when Bitcoin prices shoot up,” Green said.

Green said that as prices rebound, it will remind people sitting on the sidelines that cryptos are the “future of money”:

As such, prices are set to skyrocket over the long term – and both institutional and retail investors will not want to miss out on the ‘early advantage’ edge. Watching others make decent returns during a good rally may make you feel obligated to join in and get in on the gains.

“The world is racing towards a digital revolution and as investors increasingly pay attention to this, the long-term trajectory for Bitcoin, surely, has to be upward,” he added.

Still rangebound

While the Bitcoin price has toyed with breaking above its key resistance level, hitting US$48,087 last week, it’s been stuck in the US$30,000 to US$50,000 range since 5 December.

That, according to co-founder of Bitcoin IRA Chris Kline, may not bode well for the Bitcoin price in the shorter term.

According to Kline (quoted by Bloomberg):

There seems to be a range where Bitcoin starts to look like a pong game. There are headwinds across markets, not just in crypto. We’ve got inflation that is not transitory. There’s uncertainty around rate hikes and conversations about a recession. There is a lot of waiting on the sidelines.

Regardless of whether the next big move for the Bitcoin price is up or down, senior portfolio manager at UBS Asset Management Jeremy Zirin sounded a note of caution for crypto investors.

“From an investment standpoint, it should be viewed as something that is highly speculative and should not be a meaningful part of a client portfolio because of its very high levels of volatility and just uncertain utility over time,” he said.

“I see it more as a speculative component of one’s portfolio.”

Indeed, from a speculative perspective, the Bitcoin price is down 32% from its 10 November all-time high of US$68,790, while it’s up 40% from its 24 January low of US$33,184.

Invest with care.

The post What’s the outlook for the Bitcoin price in April? appeared first on The Motley Fool Australia.

More reading

• Why cryptos like Bitcoin are ‘no longer in the fringes’
• Another crypto is buying $13 billion of Bitcoin. Here’s why
• Here’s what moved the Bitcoin price 20% higher in March
• Here’s what ESG investors should know about cryptos like Bitcoin
• Mining Bitcoin is 3.5 times more expensive than digging up gold

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/n2WxsO5

The Commonwealth Bank of Australia (ASX: CBA) share price topped the $100 mark in March but could it retreat lower in April?

CBA shares are currently trading at $104.09 apiece, a 0.36% gain. For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) is up 0.33% at the time of writing.

Let’s take a look at the outlook for the bank.

What might the future hold for CBA?

The CBA share price has surged 10% since market close on 4 March, hitting a monthly high of $107.45 on 23 March.

However, analysts at Macquarie Group Ltd (ASX: MQG) have recently named CBA as a share to sell. Macquarie retained an underperform rating on the company’s shares with a $90 price target. That’s nearly 14% less than the price at the time of writing.

Macquarie has concerns that upcoming updates from the banks could disappoint and impact their shares. My Foolish colleague James reported this is due to margin weakness caused by slowing volume growth and competitive pressures.

Meanwhile, Morgan Stanley also recently placed an underweight rating and $92 price target on CBA shares.

Morgan Stanley thinks CBA’s shares are overvalued at the current price. Analysts are concerned any net interest margin boost from rate hikes could be partly offset by increasing funding costs. Intense mortgage competition and modestly higher loan losses could also impact the bank.

CBA announced an interim dividend of $1.75 per share in February. This was 17% more than the FY21 half-year dividend. Statutory net profit after tax soared 26% to $4.741 million in the first half of FY22.

CBA share price recap

The CBA share price has soared 21% in the past year while it is up 3% year to date.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 10% in the past year.

CBA has a market capitalisation of about $177.9 billion.

The post Could the CBA share price be heading back under $100 this month? appeared first on The Motley Fool Australia.

More reading

• ASX 200 banks bounce bank in March. Here are the April forecasts from analysts
• Top brokers name 3 ASX shares to sell next week
• How big will the CBA dividend be in 2022?
• Top brokers name 3 ASX shares to sell today
• Why has the CBA share price outperformed its big four peers in March?

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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/HZUKRPu

The S&P/ASX 200 Index (ASX: XJO) has enjoyed a strong day on Tuesday, although its previous gains have been dented this afternoon. At the time of writing, the ASX 200 is up by a slight 0.16% at just over 7,500 points. 

But let’s dig deeper into these gains and check out the shares topping the ASX 200’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Tuesday

Liontown Resources Limited (ASX: LTR)

The first ASX 200 share up today is battery materials company Liontown Resources. Liontown has had a hefty 11.96 million of its shares change hands as it currently stands. There’s been no major news out of the company itself that might explain this volume. In saying that, Liontown shares have taken a bit of a battering today, which probably provides an alternative explanation. The Liontown share price is currently down by a nasty 5.66% at a flat $2 a share, the probable reason behind today’s high volumes. 

AVZ Minerals Ltd (ASX: AVZ)

Lithium hopeful AVZ is our next ASX 200 share worth taking a look at this Tuesday. So far today, a sizeable 28.65 million AVZ shares have found a new ASX home. Again, it seems we have a large share price movement to thank for this elevated trading volume, considering there has been nothing out from the company itself. The AVZ share price has copped a battering today, currently down by 7.52% at $1.23 a share. Even so, the AVZ share price remains up more than 40% over the past month alone. 

Pilbara Minerals Ltd (ASX: PLS)

We have another ASX 200 lithium stock in Pilbara Minerals to round out our list today. This producer has watched a whopping 28.84 million Pilbara shares trade on the markets so far today. Yet again, it seems a large share price movement is responsible. And yet again, it’s a steep loss. Pilbara is currently down by 3.18% at $3.50 a share. This is Pilbara’s first major down day in close to a month. 

The post Here are the 3 most heavily traded ASX 200 shares on Tuesday appeared first on The Motley Fool Australia.

More reading

• High voltage! Origin (ASX:ORG) share price up 3% to new 52-week high
• Here’s why ASX 200 shares still have ‘a pretty good growth outlook’
• These are the best ASX lithium stocks so far in 2022
• 2 lithium ASX shares to buy in April 2022: experts
• ASX 200 (ASX:XJO) midday update: IGO dealt blow, Block’s data breach, Xero jumps

Motley Fool contributor Sebastian Bowen 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/mRtzuwQ

As for many shares on the S&P/ASX 200 Index (ASX: XJO), the QBE Insurance Group Ltd (ASX: QBE) share price is having a pretty pleasant day of trading thus far. QBE shares are currently up a robust 1.12% at $11.70 after the company closed at $11.57 a share yesterday.

After these gains, QBE shares are now up by more than 16% over just the past month alone. So after this rather eye-catching run, could the QBE share price still be “relatively inexpensive”?

Well, that’s how ASX broker Morgans has just described QBE Insurance Group.

As my Fool colleague James covered this morning, Morgans has just put out its ‘best ideas for April’ list of ASX 200 shares. And QBE Insurance made the cut.

The broker rates QBE shares as an add, complete with a 12-month share price target of $13.50 a share. If that came to pass, it would represent an upside of 15.4% on the company’s current share price. That would be around 19% factoring in this company’s dividend (assuming payout consistency over the next year, of course).

Is the QBE share price cheap right now?

So why does Morgans like QBE shares right now? Here’s some of what the broker said:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall, trading on approximately 14x FY22F PE.

It’s that “approximately 14x FY22F PE” number that Morgans is using to call QBE “relatively inexpensive”. It means that on today’s share pricing, the company is trading on a price-to-earnings (P/E) ratio of approximately 14 times its full-year earnings for the 2022 financial year. A P/E ratio is an imperfect metric that can be used to assess how the market is pricing a company compared to its peers. Since every company reports its profits in the same currency, we can look at how the market values each business compared to its profits.

Morgans is asserting that QBE is “relatively inexpensive” because many other ASX shares have P/E ratios above that right now. For example, another ASX 200 insurance company, Suncorp Group Ltd (ASX: SUN), currently has a P/E ratio of 15.97. Commonwealth Bank of Australia (ASX: CBA) is trading with a ratio of 19.88. Thus, we can say that these companies are more expensive on a P/E basis compared to QBE.

So Morgan’s assessment will no doubt be welcomed by shareholders today.

At the current QBE share price, this ASX 200 insurance share has a market capitalisation of $17.12 billion.

The post The QBE share price has gained 16% in a month. Is it still a ‘relatively inexpensive’ ASX 200 share? appeared first on The Motley Fool Australia.

More reading

• Broker names 3 of the best ASX 200 shares to buy in April
• Broker names 2 ASX 200 shares to buy with almost 20% upside
• Lucky 13? The QBE Insurance share price is now up 13% in 2 weeks
• Why ‘now is the time’ to buy QBE (ASX:QBE) shares: fundie
• 2 ASX shares to buy now, no matter what else happens this year: experts

Motley Fool contributor Sebastian Bowen 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 Bruce Jackson.

from The Motley Fool Australia https://ift.tt/DVWY9Gl

The Appen Ltd (ASX: APX) share price is currently up by 4%.

Looking at the S&P/ASX 200 Index (ASX: XJO), many of the leading performers today are tech names.

For example, the Block Inc (ASX: SQ2) share price is up 6.7%, the Xero Limited (ASX: XRO) share price is up 4.2%, the Altium Limited (ASX: ALU) share price is up 4.2% and the WiseTech Global Ltd (ASX: WTC) share price is up 3.4%.

While the Appen share price is currently up by 4% today and 6% over the last month, it is still down significantly in 2022. In the calendar year to date, Appen shares currently register a decline of 36%.

Can the Appen share price keep going higher?

Brokers are mixed on whether the business is an opportunity or not.

Macquarie still thinks there is more downside to come, with a price target of just $5.70. That implies a decline of another 20% from where it is today. The broker wasn’t impressed by the FY21 result, which didn’t hit forecasts. The broker thinks that the company won’t be able to rise much.

However, Citi has a different view. It rates the company as a buy, with an Appen share price target of $9.15. Like Macquarie, it also noted that the lack of short-term guidance doesn’t inspire confidence.

In the recent FY21 result, Appen said that revenue rose 8% to $447.3 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) only grew by 3% to $77.7 million. Underlying net profit after tax (NPAT) was down 10.4% to $40.6 million.

By FY26, the company wants to at least double FY21’s revenue, improve the customer mix with one-third of revenue from non-global customers and achieve an EBITDA margin target of 20%.

The post Tech recovery? Appen share price jumps 4% higher appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares during the first quarter
• Why is the Appen (ASX:APX) share price surging 6% higher today?
• 3 ASX growth shares down more than 50% in a year
• Is the Appen (ASX:APX) share price on the comeback trail?
• How have ASX artificial intelligence shares been performing lately?

Motley Fool contributor Tristan Harrison owns Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium, Appen Ltd, Block, Inc., WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/oBvA6N7