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The A2 Milk Company Ltd (ASX: A2M) share price was out of form in March.

During the month, the embattled infant formula company’s shares dropped 5.2%.

This compares unfavourably to a 6.4% gain by the ASX 200 index over the period.

What happened to the A2 Milk share price last month?

The A2 Milk share price came under pressure last month for a couple of reasons.

The first was comments out of the company that revealed that its operations have been impacted by the recent flooding in Queensland.

The company told The Australian that “flooded paddocks, severe pasture damage, and rising floodwaters, […] have cut off roads in low-lying areas, restricting access for milk tankers.” It also warned there could be delays collecting milk from farms.

What else?

Also appearing to weigh on the A2 Milk share price was news that smaller rival Bubs Australia Ltd (ASX: BUB) is launching a competing A2-protein based infant formula product.

The new Bubs Supreme formula range will be on the shelf in 500 Coles Group Ltd (ASX: COL) supermarkets from May. This expands the company’s shelf presence in Coles stores, which already includes Bubs easy-digest goat milk formula and Bubs Organic grass-fed cow’s milk formula.

And while this won’t be the first competing product and Bubs’ track record of launching new products is decidedly average, A2 Milk investors appear a little concerned by the move. Particularly given the difficult trading conditions it is already facing in the key China market due to a slowing birth rate and a shift in consumer preference for Chinese infant formula brands.

Is this a buying opportunity?

One broker that is likely to see the A2 Milk share price weakness as a buying opportunity is Bell Potter.

Late last month it retained its buy rating with a trimmed price target of $7.15. This compares to the current A2 MIlk share price of $5.20.

The post What happened to the A2 Milk share price in March? appeared first on The Motley Fool Australia.

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• Could the A2 Milk share price be in for a better month in April?
• What was the highest ever A2 Milk (ASX:A2M) share price?
• Why A2 Milk, Atlas Arteria, Block, and Boral shares are tumbling today
• Why is the A2 Milk (ASX:A2M) share price falling today?
• Broker tips A2 Milk (ASX:A2M) share price to rise 30% from here

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 A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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

What happened

Shares of Tritium DCFC (NASDAQ: DCFC) gained 36.4% in March, according to data from S&P Global Market Intelligence. The electric vehicle (EV) charging company was taken public through a merger with a special purpose acquisition company (SPAC) in January, and its share price has seen big swings in conjunction with market momentum following the combination. 

The S&P 500 index climbed 3.6% last month, and the Nasdaq Composite index rose 3.4% across the stretch. Many companies with growth-dependent or otherwise speculative valuations saw big gains in the period, and companies in the EV and EV-charging spaces tended to be particularly big winners. 

So what

Tritium stock soared in February after the company announced at the White House that it was opening a new manufacturing factory in Tennessee. Following this news, Tritium announced a partnership that will see it providing fast chargers for Wise EV’s new national charging network.

The combination of these announcements prompted Tritium’s share price to skyrocket, but it saw a steep pullback as investors took profits on the gains and bearish momentum for the broader market spurred big valuation pullbacks for companies with forward-looking valuations. With investors becoming more bullish and open to taking on risk in March, money poured back into the company’s stock. 

Now what

Despite the explosive gains last month, Tritium’s share price is still down roughly 38% from the lifetime high that it hit in February. The company now has a market capitalization of roughly $1.3 billion and is valued at approximately 7.7 times this year’s expected sales. 

The fact that Tritium’s EV fast-charging technologies are already seeing real-world adoption is encouraging, and the company’s forward price-to-sales multiple doesn’t look particularly unreasonable given the huge room for long-term growth in the industry. On the other hand, investors should keep in mind that the company is coming fresh off of a SPAC merger, and that means that there’s still relatively limited visibility into the company’s business performance and other financials. Tritium DCFC could have big upside at current prices, but the stock also looks relatively high risk. 

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

The post Why Tritium stock skyrocketed 36% in March appeared first on The Motley Fool Australia.

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• Pendal (ASX:PDL) share price rockets 23% on $2.4b takeover approach
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• AUB Group (ASX:AUB) share price leaps amid acquisition talks
• Why Xero can become ‘one of the big tech companies’: ASX expert
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Keith Noonan 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.

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

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The AUB Group Ltd (ASX: AUB) share price leapt out of the gate in early trade on Monday, amid the company hosing down speculation on an acquisition.

The company’s shares are currently trading at $23, up 2.04%. But earlier, AUB shares were as high as $24.20, a 7.36% gain on yesterday’s closing price.

Let’s take a look at what the insurance broker announced today.

What is happening at AUB?

AUB has shut down speculation it will acquire London-based Lloyd’s wholesale insurance broker Tysers.

AUB confirmed it has held talks with Tysers owner Odyssey Investment Partners about the transaction.

This included discussions with the senior management team. However, this has not led to a transaction. AUB said:

Although AUB believes in the strategic rationale of the potential transaction, the discussions have not led to a transaction being agreed on terms acceptable to the parties.

AUB reported underlying net profit after tax (NPAT) soared 17% to $30 million in half-year results in February. The company attributed this growth in underlying NPAT to organic growth and the contribution from acquisitions in Australian broking and agencies.

Prime Value Emerging Opportunities fund manager Richard Ivers has recently added to existing holdings of AUB due to it being a “high quality business” that “became cheaper”.

AUB share price recap

The AUB share price is soaring 18% over the past 12 months, but it has fallen 10.7% this year to date.

In the past month, AUB shares have jumped 5.75%, while they are up 1.6% in the past week.

For perspective, the benchmark S&P/ASX 200 Index has returned about 10% over the past year.

The post AUB Group (ASX:AUB) share price leaps amid acquisition talks appeared first on The Motley Fool Australia.

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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 Austbrokers Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Xero Limited (ASX: XRO) has long been a favourite ASX tech share of many investors. This online accounting software company has spent the past few years recording some impressive moves on the ASX boards. Enough even to invite Xero into the exclusive old WAAAX club of ASX growth shares that couldn’t seem to stop giving investors eye-watering returns a few years ago.

For some context, the Xero share price rose around 700% between April 2017 and April 2021.

But the past year has been more muted. Over the last 12 months. Xero shares have gone backwards by a painful 25%. In 2022 alone, the company has lost more than 30% of its value.

So with this sudden reversal of fortune for Xero, many investors might be wondering if this ASX tech share’s best days are behind it.

Well, one investor who still reckons Xero’s best days lie in front of the company is Raaz Bhuyan of WaveStone Capital. 

ASX expert names Xero as a buy today

Mr Bhuyan recently shared his views on Xero during a Livewire Markets podcast. Here’s why he still likes Xero shares going forward: 

But the only true technology business that we think is good in Australia is Xero… they have been quite successful in expanding overseas, and actually making a meal of it. So if you think about the businesses in Australia and New Zealand, they took on the incumbent, MYOB, and grew a business here, and they’ve gone to the UK and taken on Sage and done quite well.

We think that that’s quite good of Steve Vamos and his team, to have done all of that, and now they’re going into North America. So it feels like if the business is even half as successful in the US, they will do an incredible job. And it’s going to be one of the big tech companies I think, out of Australia…

So that’s a pretty emphatic endorsement of Xero’s future potential from an ASX investing expert.

Xero has indeed been ramping up its international expansion plans. The company’s last earnings report, which was delivered back in November last year, showed revenue growth across all geographic areas. United Kingdom revenues were up 24%, with strong growth coming from Xero’s ‘rest of world’ breakdown, which includes South Africa and Singapore. 

If Mr Bhuyan is right in his assessments, we could well continue to see growing numbers coming out of Xero for a while yet. But, of course, only time will tell. 

At the current Xero share price, this ASX tech share has a market capitalisation of $15.06 billion.  

The post Why Xero can become ‘one of the big tech companies’: ASX expert appeared first on The Motley Fool Australia.

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

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Brokers have lifted the lid on where they think some good dividend payouts are going to come from over the next year or two. Two ASX dividend shares may offer plenty of upside, according to the experts.

Investors may already know about some of the biggest dividend payers on the ASX, such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

However, these two ASX dividend shares are also expected to pay solid and growing dividends.

GQG Partners Inc (ASX: GQG)

GQG Partners is one of the larger fund managers on the ASX. It has a market capitalisation of $4.1 billion, according to the ASX.

The fund manager offers several different potential investment funds such as US shares, global shares, quality dividends, and so on.

Since the start of 2022, the GQG share price has fallen more than 20%. This has had the effect of pushing up the prospective dividend yield.

It’s currently rated as a buy by the broker Morgans with a price target of $2.27. That implies a potential upside of more than 60% over the next year.

The broker thinks that GQG has managed to show ongoing good fund inflows and investment performance, despite the volatility in market conditions.

In the latest monthly funds under management (FUM) update, the ASX dividend share said that over February 2022, its FUM had fallen from US$91.3 billion to US$89.8 billion. Despite all of the market volatility, it still experienced US$1.6 billion of FUM inflow over the month.

Morgans thinks that GQG has a forecast dividend yield of 7.25% in FY23.

Bapcor Ltd (ASX: BAP)

Bapcor is a large auto-parts business. It claims to be the leading player in Australasia.

It operates various brands, including Autobarn, Autopro, Midas, ABS, Shock Shop, Battery Town, Burson Auto Parts, AAD, Bearing Wholesalers, Baxters, MTQ, BNT, Truckline and WANO.

The company is looking to expand its store network both domestically and abroad. In FY21, it had around 1,100 locations. Over the next five years it wants to grow that number to more than 1,500. The company is also investing in refurbishing its store network as well.

The ASX dividend share wants to increase the market share of its own-brand products, which typically come with higher margins. Bapcor is also working on supply chain initiatives that can help it become more efficient and profitable.

Bapcor Asia has two parts. It has a small but growing network of Bursons in Thailand, currently eight stores and is looking to add more. It opened its first store outside of Bangkok in October. Thailand sales were 85% higher in the second quarter of FY22 compared to the first, as lockdown measures eased.

The company also owns 25% of Singapore-listed Tye Soon. That’s an auto parts business with around 60 locations across Southeast Asia and Northeast Asia, notably in South Korea and Malaysia.

Bapcor has grown its dividend every year since FY15. The FY22 interim dividend was increased by 11.1% to 10 cents per share.

UBS thinks that the Bapcor share price is a buy, with a price target of $8.10. That implies a potential upside of around 30%. The broker doesn’t think that high petrol prices will impact the business much.

UBS has pencilled in a grossed-up dividend yield of 4.8% from Bapcor in FY23.

The post Brokers: 2 ASX dividend shares expected to pay juicy yields appeared first on The Motley Fool Australia.

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

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The JB Hi-Fi Limited (ASX: JBH) share price is up 0.4% amid news that the ASX retail share is reportedly thinking about trying to buy the smaller competitor Jaycar.

JB Hi-Fi is one of the largest retailers in Australia. It operates JB Hi-Fi Australia and The Good Guys, as well as JB Hi-Fi New Zealand.

But the company is thinking about expanding more by aiming for Jaycar, according to reporting by The Australian.

What is Jaycar?

Jaycar has over 110 stores across Australia and New Zealand, with around 1,000 staff.

It sells a wide array of products across tools and test equipment, sound and video, cables and connectors, components and electromechanical, power and batteries, hobbies and gadgets, security and surveillance, computing and communication, science and learning, outdoors and automotive.

Its mission is to provide a wide selection of quality electronic products at an affordable price.

The company also sells products online in both the UK and the US.

The founder and managing director of the company, Gary Johnston, passed away last year.

How close is JB Hi-Fi to buying Jaycar?

According to The Australian, there is an auction process for Jaycar, with the auction set to ‘ramp up’ in May. So, at this stage, JB Hi-Fi is planning to join the race for Jaycar.

The sale of the electronics retailer is being facilitated by Barrenjoey. The information memorandum is expected to be sent to the market in May.

It reportedly generates $60 million of earnings before interest, tax, depreciation and amortisation (EBITDA).

The newspaper reported that investors think that JB Hi-Fi (and Super Retail Group Ltd (ASX: SUL) want to find places to put to work the profit they have made over COVID-19.

But JB Hi-Fi isn’t the only one that’s reportedly interested in buying Jaycar. There are private equity groups that may be in the running like Quadrant and BGH Capital, according to The Australian.

What would this mean for JB Hi-Fi?

Time will tell whether JB Hi-Fi is a serious bidder in the auction process, and then whether it can be successful against the other bidders.

The Australian reported that Jaycar generates $60 million of EBITDA.

In the recent FY22 half-year result, JB Hi-Fi made $420.5 million of earnings before interest and tax (EBIT) (which was down 9.1%).

The company recently announced a capital return of up to $250 million through a share buyback, which management hope will support the JB Hi-Fi share price.

Recent sales

On 24 March 2022, the company announced a sales update to keep investors up to date.

In the FY22 third quarter to date, JB Hi-Fi Australia sales were up 11.3%, JB Hi-Fi New Zealand sales were up 2.9% and The Good Guys sales had grown by 5.7%.

JB Hi-Fi said that it continues to see heightened customer demand and strong sales growth. This sales growth, combined with disciplined cost control and an elevated gross profit margin, helped operating leverage across the group, according to management.

The post JB Hi-Fi (ASX:JBH) share price up amid acquisition rumours appeared first on The Motley Fool Australia.

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

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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.

Electric-car maker Tesla (NASDAQ: TSLA) reported first-quarter deliveries on Saturday. While the record deliveries were far higher than they were a year ago, they were short of analysts’ average estimate for the quarter.

On one hand, Tesla’s first-quarter deliveries are an impressive achievement given the global supply chain challenges. On the other hand, however, the fact that they were worse than expectations provide more confirmation to investors that the auto industry is struggling to recover from chip shortages and other parts and logistical issues that have been plaguing it. 

Tesla’s first-quarter deliveries: The raw numbers

Tesla delivered approximately 310,000 vehicles in Q1. This record quarterly figure is up from about 309,000 in the fourth quarter of 2021 but represents a staggering year-over-year growth rate of 68%. The figure also notably puts Tesla’s trailing-12-month deliveries at a figure above one million (about 1,061,000) — for the first time. This is up from trailing-12-month deliveries of approximately 596,000 just one year ago.

The deliveries in the quarter consisted of 295,324 Model 3 and Y vehicles combined and 14,724 total Model S and X vehicles. Model 3 and Y deliveries were down slightly sequentially while Model S and X deliveries were up 25% over the same time frame. The sharp sequential increase in Model S and X deliveries reflects Tesla’s ongoing ramp-up of production of these vehicles following an overhaul to their design in early 2021 that required updates to the electric-car maker’s production line. 

Analysts, on average, were expecting Tesla to deliver about 317,000 vehicles during the period. The underperformance likely took some investors by surprise because the sequential growth was the slowest Tesla has seen in years.

There’s hope for a strong second half

While the quarter’s deliveries may have missed analysts’ estimates, there’s still good reason to expect sequential growth to reaccelerate later this year, particularly in the back half of 2022. The company said in its fourth-quarter update that it expected production levels to increase at its existing factories and that it would bring production online at new factories in 2022. Indeed, production has already started at the company’s factory in Germany. And Tesla could be just months away from the start of production at its new factory in Texas.

But things could get worse before they get better. Tesla’s factory in China is currently on a production pause because of COVID-19 restrictions. Furthermore, it takes time to ramp up production at new factories. So any impact from Tesla’s factory in Berlin in Q2 could be very small. 

Despite supply shortages and a production pause in China, Tesla’s full-year guidance for 50% growth this year may be conservative enough for the company to still easily surpass this range, especially if some supply constraints are alleviated in the second half of the year — just as production potentially ramps up to meaningful levels at new factories. 

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

The post Should investors worry about Tesla’s Q1 deliveries miss? appeared first on The Motley Fool Australia.

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Daniel Sparks has no position in any of the stocks mentioned. His clients may own shares of the companies mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The Iluka Resources Limited (ASX: ILU) share price is starting the week in a positive fashion.

In early trade, the mineral sands and rare earths producer’s shares were up 8.5% to a new record high of $12.50.

The Iluka share price has pulled back a touch but still remains up 6% to $12.20.

Why is the Iluka share price shooting higher?

Investors have been bidding the Iluka share price higher today after the company made a final investment decision on phase three of the Eneabba Rare Earths Refinery.

As you might have guessed from the share price reaction, the company has decided to go ahead with the construction of the refinery. This follows the completion of a feasibility study, which demonstrates solid economics and significant potential for growth.

Also supporting the decision was the government’s agreement to a risk sharing arrangement, which includes a non-recourse loan under the Australian Government’s $2 billion Critical Minerals Facility.

What is phase 3?

According to the release, phase 3 will deliver a fully integrated refinery for the production of separated rare earth oxides at Eneabba, Western Australia.

The release notes that following completion, the refinery will be capable of processing rare earth feedstocks sourced from both Iluka’s portfolio and from a range of potential third party concentrate suppliers.

Iluka’s refinery will produce high value rare earth oxides neodymium, praseodymium, dysprosium and terbium. Management notes that these are critical inputs across a range of industries and technologies, including electric vehicles, sustainable energy, advanced electronics, medical and defence applications.

Management commentary

Iluka’s managing director and CEO, Tom O’Leary, spoke very positively about the plans. He said:

“Eneabba Phase 3 represents a defining opportunity for Iluka and an order of magnitude evolution for value addition to Australia’s rare earth resources.

“Rare earths are among the key building blocks of an electrified economy and our final investment decision for Phase 3 will see Eneabba become a strategic hub for the downstream processing of Australia’s rare earth resources. The refinery has been designed specifically to have the capacity to be globally material, the capability to process both Iluka’s feedstocks and those held by third parties, and to have minimal environmental impact, including as a result of being located entirely on a brownfields site.

“Beyond the production of rare earth oxides, the refinery also provides a foundation for undertaking potential further steps along the value chain in future, such as rare earth metallisation. Iluka has already had strong and positive engagement with potential rare earths customers.”

The post Iluka (ASX:ILU) share price jumps 8% to record high on major rare earths news appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

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Experts are always on the lookout for ASX shares that offer investors a lot of potential upside.

When several brokers simultaneously like a business, that may suggest that there’s an opportunity. Or all of those experts could be wrong at the same time.

With that in mind, here are two potential opportunities:

Universal Store Holdings Ltd (ASX: UNI)

Universal Store is an ASX retail share. It’s a specialty retailer of youth casual apparel with 73 stores across Australia. It also has an online store.

The Universal Store share price has fallen heavily over the last six months.

The company suffered in the first half of FY22 as many of its stores in NSW and Victoria were closed because of COVID-19 restrictions. It lost about a quarter of its potential trading days. Despite that, it still managed to generate $108.3 million of sales and $13.5 million of statutory net profit after tax (NPAT).

It opened nine new stores late in the first half and expects to open up to three new stores in the “next six months”. It has a long-term target of at least 100 stores across Australia and New Zealand.

It’s currently rated as a buy by at least three brokers, including UBS. The broker has a price target on the business of $7.75. UBS thinks that it has a good longer-term outlook with an attractive ability to open more stores.

On UBS’s numbers, the Universal Store share price is valued at around 15x FY23’s estimated earnings.

City Chic Collective Ltd (ASX: CCX)

City Chic is another ASX retail share that is highly rated by several brokers. It currently has at least five buy ratings.

The business sells plus-size clothing, accessories, and footwear to women.

Morgan Stanley thinks that the company looks cheap after the steep fall of the City Chic share price since the start of the year.

The broker thinks that investors may start liking the company again if second-half trading impresses or if it makes another acquisition.

City Chic has made a number of acquisitions to increase its scale over the last few years. It has bought Avenue in the US, Evans in the UK, and Navabi in the EU.

The first half of FY22 saw a lot of top-line growth, with sales rising by 49.8% to $178.3 million. In the first eight weeks of the second half of FY22, the company said that it had delivered strong online sales growth. The UK and EU markets showed signs of recovery.

Based on Morgan Stanley’s numbers, the City Chic share price is valued at 21x FY23’s estimated earnings.

The post Buy these ASX shares with significant upside: experts appeared first on The Motley Fool Australia.

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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 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.

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The Zip Co Ltd (ASX: Z1P) share price continued its disappointing run during the month of March.

The buy now pay later (BNPL) provider’s shares dropped a further 13.4% during the period.

This meant that Zip share’s had lost approximately two-thirds of its value during the first quarter of 2022, which made it the worst performer on the illustrious ASX 200 index.

Why did the Zip share price sink during March?

Investors continued to sell down Zip’s shares last month after the BNPL provider announced an all-scrip deal to acquire rival Sezzle Inc (ASX: SZL) and a capital raising to support the growth of the two businesses.

In respect to the latter, at the start of the month Zip successfully completed its fully underwritten $148.7 million institutional placement. These funds were raised at $1.90 per new share, which was a 14% discount to the Zip share price at the time.

The company was then aiming to raise a further $50 million from retail shareholders through a share purchase plan. Though, it remains unclear how much Zip will raise from this part of the capital raising after the pullback by Zip’s shares made the share purchase plan less attractive to shareholders.

What else?

Also weighing heavily on the Zip share price last month was a broker note out of UBS.

The broker responded to Zip’s capital raising and the acquisition of Sezzle by downgrading the company’s shares to a sell rating and slashing its price target to $1.00.

With the company’s shares currently trading at $1.47, this suggests that the Zip share price could still fall a further 32% from current levels.

Though, it is worth noting that not everyone is bearish. Morgans believes the acquisition of Sezzle makes ‘strategic sense’ and put an add rating and $3.94 price target on its shares. This is more than double where its shares trade at now.

The post Why did the Zip share price get smashed in March? appeared first on The Motley Fool Australia.

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

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