Tag: Motley Fool

If you’re looking to take advantage of the recent weakness in the tech sector, then you may want to look at the three ASX tech shares listed below.

These shares have all been given buy ratings by the team at Goldman Sachs. Here’s why it rates them highly:

Nitro Software Ltd (ASX: NTO)

The first ASX tech share to look at is Nitro Software. It is aiming to drive digital transformation in organisations around the world with its Nitro Productivity Suite. This provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.

Goldman Sachs initiated coverage on the company this week with a buy rating and $2.95 price target. It commented: “We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro’s current revenue base.”

PointsBet Holdings Ltd (ASX: PBH)

Another tech share that Goldman is a fan of is PointsBet. It is a growing sports wagering operator and iGaming provider. PointsBet offers innovative sports and racing betting products and services via a scalable cloud-based platform. It currently operates in the ANZ and United States markets and has delivered significant growth in both. Positively, it is still only scratching at the surface of its massive opportunity in the lucrative US market.

Goldman Sachs currently has a buy rating and $9.97 price target on the company’s shares. It said: “Reiterate our Buy rating on PBH, with our thesis underpinned by PBH’s leverage to the burgeoning US Sports Betting and Gaming market which we forecast to be a ~US$60 bn TAM opportunity at maturity.”

Xero Limited (ASX: XRO)

A final ASX tech share that Goldman rates highly is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses. Xero has been growing strongly over the last few years and looks well-placed to continue this trend in the years to come. This is thanks to its international expansion, acquisitions, the transition to the cloud, and its app ecosystem. The latter has significant monetisation potential according to Goldman.

The broker has a buy rating and $158.00 price target on Xero’s shares. Its analysts believe the company is well-placed for strong growth. They are forecasting revenue of NZ$1,096 million in FY 2022 before growing to NZ$1,661 million by FY 2024.

The post 3 excellent ASX tech shares Goldman Sachs rates as buys appeared first on The Motley Fool Australia.

More reading

• Why Carnaby Resources, News Corp, Piedmont Lithium, and PointsBet shares are pushing higher
• Land and expand: Why Motley Fool analyst Ryan Newman thinks Xero (ASX:XRO) shares can still touch the clouds
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Boral plummets
• Here’s why the PointsBet (ASX:PBH) share price is charging higher today
• Should you buy ASX shares now or wait just a little bit?

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 Pointsbet Holdings Ltd and Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended Nitro Software Limited and Pointsbet Holdings Ltd. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. At the time of writing, the benchmark index is down 0.2% to 7,066.2 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

Carnaby Resources Ltd (ASX: CNB)

The Carnaby Resources share price has rocketed 41% to $1.92. Investors have been buying the mineral exploration company’s shares after it reported a major copper gold discovery at its Nil Desperandum Prospect in Queensland. According to the release, a reverse circulation drill hole intersected a strong 50 metre down hole zone of copper sulphide mineralisation from 250 metres to bottom of hole. Based on visual estimates, the zone contains up to 30% chalcopyrite.

News Corp (ASX: NWS)

The News Corp share price is up 5.5% to $33.29. Investors have been buying the media giant’s shares following the release of its second quarter and half year update. For the second quarter, News Corp reported a 13% increase in revenue and an 18% lift in EBITDA. This led to a first half operating profit of almost US$1 billion, which is up 30% year on year.

Piedmont Lithium Inc (ASX: PLL)

The Piedmont Lithium share price is up 2.5% to 67 cents. This follows the release of an update on its 2022 lithium development plans. Piedmont revealed that it expects to double its US lithium hydroxide production to 60,000 tonnes per year. All in all, it ultimately plans to produce or have offtake rights to an estimated 500,000 tonnes per year of SC6 production.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price is up 2.5% to $5.04 following an update on its North American operations. That update reveals that its PointsBet Canada business has officially been approved by the Alcohol and Gaming Commission of Ontario as a licensed sportsbook in Ontario. This license will become effective on 4 April 2022. Ontario is home to Canada’s capital, Ottawa, and has a population of over 14.8 million people and a host of professional sports teams.

The post Why Carnaby Resources, News Corp, Piedmont Lithium, and PointsBet shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX tech shares Goldman Sachs rates as buys
• Read all about it: News Corp (ASX:NWS) share price leaps on record quarter
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Boral plummets
• Boom! Carnaby Resources (ASX:CNB) share price rockets 33% on ‘major discovery’
• Here’s why the PointsBet (ASX:PBH) share price is charging higher today

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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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Key Points

• Flight Centre shares backtrack despite COVID-19 cases beginning to dwindle
• CEO calls for clearer visibility for the return of tourists to Australia
• FY22 half-year results expected to be released on 24 February

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The Flight Centre Travel Group Ltd (ASX: FLT) share price has staged a mini rebound in the past week. This comes as the number of COVID-19 cases around the country begins to finally subside.

At the time of writing, the travel agent’s shares are down by 1.45% to $17.30. Although treading lower today, it’s worth noting that its shares have advanced by more than 11% in the past week.

What did the Flight CEO say?

Following the latest news that the Australian Technical Advisory Group on Immunisation (ATAGI) is looking into re-defining the term “fully vaccinated”, Flight Centre boss, Graham Turner weighed in on the agenda.

Mr Turner said that clearer visibility is needed for the tourism sector.

This comes as Federal Health Minister Greg Hunt advised that being fully vaccinated will most likely require three COVID-19 shots.

“I think having the booster shots is important but I don’t think we can keep changing these definitions all the time, particularly for people who are travelling, particularly international travellers” commented Mr Turner.

” I think we’ve just got to get back to living with the virus and accepting that fully vaccinated with double shots initially and in the long-term perhaps change that.

“I think it’s a real blow if they do this to the tourism industry and the travel industry, of course”.

While Australia is slowly starting to re-open up to the rest of the world, tourists are still barred from entering the country. This also applies to foreign business people who don’t have an exemption or visa.

It’s evident that without the resumption of travel, Flight Centre will be battling to achieve strong financial numbers for FY22.

All eyes will be on Flight Centre’s FY22 half-year results which are expected to be released on 24 February 2022.

Flight Centre share price recap

Up until late August, Flight Centre shares were trading mostly sideways. However, during the company’s full-year results release, its shares skyrocketed almost 60% in just 5 weeks.

Since after hitting a 52-week high of $25.28 in early October, the Flight Centre share price has continued to travel lower.

Based on today’s price, Flight Centre commands a market capitalisation of roughly $3.45 billion.

The post ‘It’s a real blow’: Flight Centre (ASX:FLT) CEO weighs in on government’s latest vax plans appeared first on The Motley Fool Australia.

More reading

• Are ASX travel shares finally emerging from the COVID storm?
• Why has ASX travel share Flight Centre (ASX:FLT) lifted 10% in a week?
• These are the 10 most shorted ASX shares
• Are Virgin Australia shares set to rejoin the ASX soon?
• When will Flight Centre (ASX:FLT) pay a dividend again?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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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Key points

• Analysts really like these two ASX shares, with multiple buy ratings
• Healthco Health is a property business which owns a portfolio of healthcare and social real estate
• Corporate Travel is one of the world-leading business travel businesses

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There are some very compelling ASX shares that many of Australia’s leading analysts rate as a buy right now.

Different businesses look good value at different prices depending on their size and growth outlooks.

However, if many of these brokers all believe that a company is priced attractively then it could be worth considering.

Healthco Healthcare and Wellness Reit (ASX: HCW)

This is a real estate investment trust (REIT) which owns a portfolio of properties across aged care, childcare, government, life sciences and research, and primary care and wellness. The idea is to have a portfolio that is underpinned by attractive megatrends, targeting stable and growing distributions, long-term capital growth and positive overall environmental and social impact.

It’s currently rated as a buy by at least three different brokers, including Macquarie which has a price target of $2.52 on the business – that’s more than 20% higher than today’s level. The broker reckons investors will choose to go to defensive investments in 2022.

The ASX share is expecting to pay a FY22 distribution per unit of 7.4 cents. That translates to a distribution yield of 3.7%.

In October, it pointed out that it has pro forma gearing of just 11.5%, providing financial capacity for acquisitions. That October update included an announcement regarding $200 million of high-quality healthcare acquisitions, with a weighted average capitalisation rate (WACR) of 5.02% and a weighted average lease expiry (WALE) of 17.3 years.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel is one of the world’s largest business travel businesses.

It’s currently rated as a buy by at least six brokers including Macquarie and Morgans. The Morgans price target is $29, which implies a possible rise of the Corporate Travel share price of around 40% over the next 12 months.

Morgans reckons that travel volumes will return as the impacts and concerns regarding Omicron subside, as it did with previous COVID variants.

Whilst Macquarie recognises that the travel sector is being impacted by COVID, it thinks that Corporate Travel will be among the first to recover because of the ‘essential’ nature of business travel.

On Macquarie’s numbers, the Corporate Travel share price is valued at 21x FY23’s estimated earnings.

The last trading update that the market received was when the ASX share announced the acquisition of Helloworld Travel Ltd’s (ASX: HLO) corporate and entertainment travel business for $175 million on a cash-free and debt-free basis.

As at 30 November 2021, Corporate Travel had maintained positive monthly earnings before interest, tax, depreciation and amortisation (EBITDA) during the second quarter of FY22. However, it did note that momentum was impacted by the Omicron variant.

However, it said that when combined with the Travel & Transport acquisition, it will be a materially larger business after a full travel market recovery, with pro forma combined revenue of $810 million and EBITDA of $265 million.

The post 2 ASX shares that top analysts are loving right now appeared first on The Motley Fool Australia.

More reading

• Are ASX travel shares finally emerging from the COVID storm?
• Top broker says Corporate Travel Management (ASX:CTD) shares can rise 36%
• Leading brokers name 3 ASX shares to buy today
• Why Corporate Travel Management, Goodman, Lendlease, and Uniti shares are rising today
• Leading brokers name 3 ASX shares to buy today

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 Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management 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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Key points

• The Megaport share price has dived 31% since January 4
• Shareholders didn’t respond well to the company’s second-quarter update
• The All Technology Index has also dropped nearly 19% in a month.

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The Megaport Ltd (ASX: MP1) share price has had a horror start to the year, despite surging 30% in 2021.

The technology company’s shares have fallen 31% since market close on 4 January. However, in today’s trading, they are currently up 1.08% to $13.13.

Let’s take a look at what might be impacting the company’s shares.

What’s happening with Megaport?

The Megaport share price has been on a steady decline for most of the month. However, it took one major hit in mid-January.

Megaport is a global leading provider of elastic interconnection services using software-defined networking.

Shares in the company collapsed 16% on 19 January, after the release of its second-quarter update. Investors sold down the share despite the company reporting an 8% increase in second-quarter revenue to $26.6 million.

However, multiple brokers lowered their price targets due to expectations of greater investment spend. The company reported 2 new SD-Wan partners, 2 leading global value-added distributors and launched its partner portal Vantage Hub.

Since then, the Megaport share price has continued to decline 14% despite no price-sensitive news from the company.

For perspective, the S&P ASX All Technology Index (ASX: XTX) fell 9% in the same time period.

ASX technology share Appen Ltd (ASX: APX) has also gravitated nearly 9% since market close on 19 January, while Altium Limited (ASX: ALU) has nosedived nearly 15%.

On 28 January, Megaport held an extraordinary general meeting, however, the company’s share price showed no movement on this day.

Shareholders voted against the granting of options to directors Michael Klayko, Melinda Snowden, and Glo Gordon. This was despite the board recommending that investors vote in favour of the proposal to retain top talent at the company.

Looking ahead, Goldman Sachs recently rated the Megaport share price as a “buy” with a $20 price target. As my Foolish colleague James reported this week, Goldman Sachs predicts Megaport has an “immense” $129 billion market opportunity.

Megaport share price snapshot

The Megaport share price has rocketed a mammoth 253% in the past three years since January 4, 2019.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has returned nearly 26% in the same time period.

The company has a market capitalisation of about $2 billion based on its current share price.

The post Why has ASX tech share Megaport (ASX:MP1) tumbled 31% in a month? appeared first on The Motley Fool Australia.

More reading

• Why did ASX 200 tech shares get annihilated today?
• 3 buy-rated ASX growth shares
• These were the worst performing ASX 200 shares in January
• 2 exciting ASX growth shares tipped as buys
• What happened to ASX tech shares today?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT 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

The crypto market is certainly getting its fair share of lumps today. However, among the hardest-hit cryptocurrencies right now are those dealing in the metaverse. Top metaverse-themed tokens Axie Infinity (CRYPTO: AXS), The Sandbox (CRYPTO: SAND), and Enjin Coin (CRYPTO: ENJ) are down 5.6%, 4.8%, and 3.9%, respectively, over the past 24 hours, as of 1 p.m. ET.

These losses come as Facebook parent Meta Platforms (NASDAQ: FB) reported earnings today, which missed the mark across the board. Weak guidance and lower active user counts highlighted most investors’ concerns. However, another key highlight of this report was the company’s loss in its metaverse business — of more than $10 billion. 

So what

Corporate adoption of the metaverse has, in many ways, made the otherwise conceptual virtual reality known as the metaverse a more tangible concept for the average investor to understand. However, these massive losses suggest that the expected rates of adoption among metaverse users isn’t matching up to the investment dollars deep-pocketed Meta Platforms is putting up to generate growth.

For investors in these top metaverse-related tokens, that’s being looked at as a negative right now. Sure, many crypto investors may view Meta Platforms as a potential threat in the metaverse (i.e., Meta’s losses could be these cryptos’ gains). However, until Meta’s revenue can catch up to its expenses, it looks like the metaverse argument will be a tough one to sell to investors.

Now what

What does this mean for crypto investors? Perhaps more investment is needed to propel a blockchain-first metaverse forward. The rate at which Axie Infinity, The Sandbox, and Enjin can entice developers to come aboard may become a more important metric for investors to consider.

Additionally, user growth rates matter, and these platforms will need to show impressive numbers to wow investors in the face of massive corporate investment in this space.

Broadly speaking, most cryptocurrencies have followed equities much more closely in recent years, trading in higher correlation than what was seen in pre-pandemic times. For metaverse-linked tokens, Meta Platforms is certainly a benchmark to compare to. Today, that’s not a good thing at all. 

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

The post Meta’s metaverse losses pour cold water on these 3 cryptocurrencies appeared first on The Motley Fool Australia.

More reading

• Meta Platforms’ plummeting stock: Is it a buy?
• Why Meta shares cratered on Thursday
• Why is Twiggy suing Facebook? Hint: It involves cryptocurrency
• Meta (NASDAQ:FB) share price plunges 22%. How might this impact ASX shares?
• 1 green flag and 1 red flag for Meta’s Metaverse dreams

Chris MacDonald has no position in any of the stocks mentioned. 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. 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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Key points

• The Motley Fool Australia analyst Ryan Newman picked Xero shares as a buy
• He told our chief investment officer Scott Phillips about the company’s numerous strengths
• However, Xero shares come with 3 key risks

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The Xero Limited (ASX: XRO) share price has tumbled into the new year – it has fallen a whopping 22% since the final close of 2021 – but this Foolish expert is still betting on the stock.

The Motley Fool Australia analyst Ryan Newman discussed the company, its strengths, and its weaknesses with our chief investment officer, Scott Phillips earlier this week.

The conversation was part of The Motley Fool Australia’s Stock of the Week series, which can be found on our YouTube channel. As always, readers can find coverage of the week’s stock pick here and in podcast form here.

At the time of writing, the Xero share price is $110.36.

Here’s why Newman believes the software-as-a-service (SAAS) company’s future is bright.

Does Xero‘s ‘sales force’ make its shares a buy?

For many ASX market watchers, Xero shares were the gateway to cloud-based software. The company listed back in 2012 when much of the market knew clouds as fluffy and white in the sky.

Xero provides a cloud-based accounting platform. One of its major strengths is its ‘sales force’ of accountants and bookkeepers.

“[A] really important benefit that Xero brings is obviously between managers of a business – small businesses in particular – those small businesses really want to keep a strong relationship with their bookkeeper or with their accountant,” said Newman. He continued:

Xero actually allows that to happen.

It’s my understanding that most accountants really really love the Xero interface and the Xero product. Many more than what competitors offer … I absolutely think that having that sales force through the accountants and bookkeepers has been a major driver.

Accountants act as an extension of Xero’s marketing arm which saves Xero the marketing dollars.

Additionally, the nature of Xero’s cloud-based product is one of its strengths. Newman noted it allows Xero to sell its software as a reoccurring subscription, creating lower costs for customers and greater revenue for the company.  

Looking to the future, Xero hopes to become a small business portal, says Newman.

What [Xero] want to try and do is help small and medium-sized businesses to perform mission critical tasks like payroll invoicing, expense tracking, bank reconciliation and, I suppose, ultimately to allow them to spend more time in managing their business rather than handling the financials.

That, over time, I believe will allow it to grow its average revenue per user.

Additionally, Newman believes the company can apply price increases without issue using a technique called ‘land and expand’. He said:

Generally, these sorts of businesses are able to push through those pricing increases because, as I said, it’s a mission critical service. Without Xero, what are the businesses going to do?

Most, if not just about every business that uses Xero, I think, will probably just be happy enough to pass over those extra couple of dollars per month, which over time can actually add up to quite a large value add for Xero.

What are the down sides to Xero?

Like any investment, Xero shares come with their own set of risks, of which Newman outlined 3.

Firstly, the company’s expansion into the United States has so far been unsuccessful.

“It was always going to be a tough market to crack but ultimately, I would say that that market is essentially lost,” said Newman. “One of the risks here is that Xero continues to really press and try to eke out as much as they can from it. I think that would be a mistake.”

Innovation is another issue for Xero, as well as most other tech shares. Pushing development to stay ahead of competition takes money and comes with no guarantee of success.

Finally, involuntary customer churn is a risk factor for Xero.

Newman said, “the fact that Xero focuses predominantly on small and medium-sized businesses, some of these businesses are actually more prone to suffering through an economic recession, for instance.”

The post Land and expand: Why Motley Fool analyst Ryan Newman thinks Xero (ASX:XRO) shares can still touch the clouds appeared first on The Motley Fool Australia.

More reading

• Should you buy ASX shares now or wait just a little bit?
• Why did ASX 200 tech shares get annihilated today?
• These 2 ASX 200 shares have tumbled into the buy zone: Expert
• With Afterpay shares no longer listed, is WAAAX officially dead?
• The Xero (ASX:XRO) share price is trailing the ASX 200 by a whopping 18% so far in 2022. What’s next?

Motley Fool analyst Ryan Newman owns Xero. 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. 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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Key points

• Supply chain issues and shipping costs are in focus for ASX retail shares
• Furniture retailer Nick Scali warns the rising cost of shipping could impact profits
• Both major retail indexes are down for the month but recovering this week

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ASX retail shares could face a big issue in the trading period ahead and we’ll likely hear about it this earnings season.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has fallen by 10% in the past month. However, it has climbed 2% this week. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) has fallen 9% over the month and is up 0.66% this week.

Let’s take a look at what could impact ASX retail shares in the trading period ahead.

What could impact ASX retail shares?

Furniture retailer Nick Scali Limited (ASX: NCK) is warning of the impact of rising shipping costs and supply chain delays on profits.

The Nick Scali share price climbed 0.83% yesterday on the back of the company’s first half-year results for 2022. The company announced a 35 cents per share interim dividend. In today’s trade, Nick Scali shares are down slightly by 0.07% to $14.53.

International COVID-19 lockdowns, including in Vietnam, had an impact on the company’s suppliers according to the retailer’s directors’ report.

The report stated:

The group’s supply chain has been severely impacted by the pandemic, with overseas manufacturers operating under government constraints in the supply of raw materials and shipping container ability being significantly impaired.

Whilst the Group’s suppliers have recently reinstated normal lead times, shipping costs and the availability of containers remains uncertain, and therefore supply chain delays may persist for the remainder of the financial year.

Will shipping costs and supply issues also affect other retailers? We’ll likely find out this earnings season, with other big-name retailers due to report soon. They include JB Hi-Fi Limited (ASX: JBH), Kogan.com Ltd (ASX: KGN), City Chic Collective Ltd (ASX: CCX), and Adairs Ltd (ASX: ADH).

Other ASX retail shares include Australian Pharmaceutical Industries Ltd (ASX: API) and Wesfarmers Ltd (ASX: WES). There’s also Harvey Norman Holdings Limited (ASX: HVN), Coles Group Ltd (ASX: COL), and Woolworths Group Ltd (ASX: WOW). Many of these companies will be announcing their earnings results soon.

Commenting on the outlook, Nick Scali stated that shipping costs could impact profits in the second half of FY22:

Whilst the group continues to expect revenue to increase materially during the second half, the costs of shipping could well impact profitability during the period.

In recent times, retail outlet supplies have also been impacted due to worker shortages amid the Omicron outbreak.

The post Could this be the biggest issue faced by ASX retail shares heading into earnings season? appeared first on The Motley Fool Australia.

More reading

• Do any ASX lithium shares pay dividends?
• Morgans names 4 more of the best ASX shares to buy in February
• 2 buy-rated ASX dividend shares with attractive fully franked yields
• Are these 2 ASX tech shares good buys in February?
• Nick Scali (ASX:NCK) share price jumps on first-half revenue increase

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO and Kogan.com ltd. The Motley Fool Australia owns and has recommended ADAIRS FPO, COLESGROUP DEF SET, Harvey Norman Holdings Ltd., Kogan.com ltd, and Wesfarmers 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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The Motley Fool’s Scott Phillips discusses the ASX tech slump, big gains for Nufarm Ltd (ASX: NUF), and the latest on the Sydney Airport (ASX: SYD) takeover.

The post Tech stocks crash, while Nufarm soars. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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• Why did ASX 200 tech shares get annihilated today?
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• Now departing: Farewell, Sydney Airport (ASX:SYD) shares
• Tech train wreck: WiseTech (ASX:WTC) share price tumbles 8%
• Why Amcor, Boral, Nufarm, and Westpac shares are rising today

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. and WiseTech Global. The Motley Fool Australia owns and has recommended WiseTech Global. 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 CSL Limited (ASX: CSL) share price is on course to end the week in the red.

In afternoon trade, the biotherapeutics giant’s shares are down 0.5% to $255.80.

This means the CSL share price is down over 13% in 2022 and 20% from its 52-week high of $319.78.

Why is the CSL share price falling today?

The weakness in the CSL share price on Friday appears to have been driven by a mixed result from one of its rivals, Takeda.

While the Japanese biotech giant reported strong immunoglobulin sales for the third quarter, it also revealed a sizeable reduction in plasma collections.

Concerns about plasma collection headwinds and the impact they could have on CSL’s margins have been weighing on sentiment during the pandemic. Based on Takeda’s update, it appears as though these headwinds have yet to ease.

Can its shares get back above $300 in 2022?

Until the aforementioned plasma collection headwinds ease, the CSL share price is likely to remain out of favour with investors.

Though, when these headwinds do finally ease and investor sentiment improves, a number of brokers believe its shares could be trading at materially higher levels and well beyond the $300 mark.

For example, both Citi and Morgans have the equivalent of buy ratings on its shares with price targets of $340.00 and $334.70, respectively. These price targets imply potential upside of 30%+ over the next 12 months.

In respect to Morgans, it feels FY 2022 is a transitional year but remains very positive on the long term.

The broker commented: “We view CSL as a core holding and best positioned among its peers to meet growing patient demand, but the near term remains challenged, with timing uncertainty around a full recovery in plasma collections and increasing costs.”

The post Can the CSL (ASX:CSL) share price crack the $300 mark in 2022? 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 CSL Ltd. 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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