Tag: Motley Fool

  • Why is the OncoSil Medical (ASX:OSL) share price surging 18% today?

    Two scientists in a Rhythm Biosciences lab cheer while looking at results on a computer.

    The OncoSil Medical Ltd (ASX: OSL) share price is soaring higher on Friday after the company announced the publication of the PanCO clinical study’s final results.

    The study confirmed the company’s OncoSil device can be safely and successfully used alongside chemotherapy to treat unresectable locally advanced pancreatic cancer.

    At the time of writing, the OncoSil share price is 4.6 cents, 17.95% higher than its previous close.

    Let’s take a closer look at today’s news from the medical device company.

    OncoSil share price leaps higher on study results

    The OncoSil share price is surging on the results of the PanCO clinical study, conducted in Australia, Belgium, and the United Kingdom.

    The company’s OncoSil device delivers beta radiation to cancerous tissue.

    The study found it controlled advanced pancreatic cancer at the 16-week point in 90.5% of patients. On top of that, 31% of the study’s participants achieved a disease control rate of 100%.

    Finally, despite the recruited patients having had their cancers defined as unresectable (unable to be removed completely through surgery) by pancreatic cancer experts, 23.8% had surgery with the intent to cure their cancer after being treated with chemotherapy plus OncoSil.

    The company also notes more patients found their cancer was resectable following the study but chose not to receive surgery.

    The device was also found to not cause adverse events related to radiation.

    The paper resulting from the study has been published in ESMO Open. ESMO Open is the European Society for Medical Oncology’s peer-reviewed open-access journal.

    Speaking on the results of the study fuelling the OncoSil share price, its principal investigator Dr Paul Ross commented:

    The results of this important clinical study provide evidence that OncoSil can address a significant unmet clinical need in patients with unresectable locally advanced pancreatic cancer. The results clearly show an acceptable safety profile and encouraging clinical benefits for patients.

    OncoSil’s CEO and managing director Nigel Lange also commented on the news, saying:

    We are very encouraged by the published results of the PanCO study… We will be sharing this clinical evidence with gastroenterologists, oncologists, and nuclear medicine physicians to make this novel treatment more widely available to patients.

    Despite today’s uptick, the OncoSil share price is still down 61% year to date. Though, it has gained 2.2% over the last 30 days.

    The post Why is the OncoSil Medical (ASX:OSL) share price surging 18% today? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in OncoSil Medical right now?

    Before you consider OncoSil Medical , you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and OncoSil Medical wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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    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 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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  • Brokers name 3 ASX shares to buy today

    A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements

    While a lot of analysts have now finished the holidays, a few are still working hard this week and have updated their recommendations on several ASX shares.

    Listed below are three ASX shares that brokers have named as buys this week:

    Booktopia Group Ltd (ASX: BKG)

    According to a note out of Morgans, its analysts have retained their add rating but slashed their price target on this online book retailer’s shares to $2.78. This follows the release of a trading update which revealed guidance well short of Morgans’ estimates. This has led to the broker taking an axe to its earnings estimates for the coming years. However, it still sees enough value in Booktopia’s shares at the current level to recommend it as a buy. Particularly given its positive long term outlook due to market share gains and distribution centre automation. The Booktopia share price is trading at $1.40 on Friday.

    Charter Hall Social Infrastructure REIT (ASX: CQE)

    A note out of Goldman Sachs reveals that its analysts have retained their conviction buy rating and lifted their price target on this social infrastructure-focused property company’s shares to $4.13. This follows the announcement of two new childcare portfolio acquisitions for $134.3 million and an increase to its distribution guidance for FY 2022 to 17.2 cents per share. Goldman believes the acquisitions solidify its view that the company is positioned for a solid growth outlook given its strong balance sheet with headroom and liquidity to pursue investment opportunities. The Charter Hall Social Infrastructure share price is fetching $4.00 today.

    Siteminder Ltd (ASX: SDR)

    Analysts at UBS have initiated coverage on this hotel commerce platform provider’s shares with a buy rating and $7.45 price target. UBS likes Siteminder due to its significant opportunity in a large and extremely fragmented market. It also notes that a good portion of its addressable market is still using manual processes and could benefit from switching to Siteminder’s platform. The Siteminder share price is trading at $6.91 today.

    The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of August 16th 2021

    More reading

    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 SiteMinder Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Booktopia Group Limited. 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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  • Here’s why the AMP (ASX:AMP) share price is racing 6% higher today

    Man in an office celebrates at he crosses a finish line before his colleagues.

    The AMP Ltd (ASX: AMP) share price is on the rise this morning. This comes amid the financial services company announcing a divestment from its private markets business, PrivateMarketsCo.

    At the time of writing, AMP shares are fetching 99.5 cents apiece, up 5.85%. This means its shares have now leaped almost 10% higher in the past week.

    PrivateMarketsCo sells infrastructure debt platform

    Investors are driving up the AMP share price following the company’s latest statement to the ASX today.

    In its release, AMP advised that PrivateMarketsCo entered into a binding agreement to sell its infrastructure debt platform to Ares Holdings LP, a subsidiary of Ares Management Corporation.

    The agreement follows PrivateMarketsCo’s strategic decision to focus on managing equity investments in real estate and infrastructure. In addition, this will simplify the business structure and enable the company to fuel growth from the transaction.

    In total, Ares Holdings will pay PrivateMarketsCo a total cash consideration of $428 million for the infrastructure debt platform.

    An incentivised $150 million of sponsor investments and rights to carried interest in closed infrastructure debt funds is available. This is provided performance hurdles are met by their due date.

    The cash proceeds from the sale will be used to strengthen the capital position of the AMP group.

    Separation of the balance sheet and allocations of surplus capital between AMP Limited and PrivateMarketsCo is continuing as part of the demerger preparations.

    The demerger remains on track to complete late in the first half of 2022.

    Commenting on the news driving the AMP share price, PrivateMarketsCo chief executive Shawn Johnson said:

    This transaction provides strong outcomes for both our Infrastructure Debt clients and our shareholders. Infrastructure Debt will further accelerate its growth as part of Ares’ global alternative investment platform, benefitting the clients who have supported it through its early stages under our ownership.

    PrivateMarketsCo and AMP will realise significant value from the divestment, as well as retaining our valuable sponsor investments and carried interest in the closed Infrastructure Debt funds. This will provide a strong revenue stream in coming years as we demerge PrivateMarketsCo and accelerate the momentum in our business.

    AMP share price snapshot

    Over the last 12 months, the AMP share price has tracked almost 40% lower, with year-to-date down by more than 35%. The company’s shares hit a multi-decade low of 88.5 cents in September 2021, before moving in circles.

    In contrast, the S&P/ASX 200 Financials Index (ASX: XFJ) has gained 18% from this time last year and is up 20% year-to-date. The sector also registered a 52-week high of 6,956.4 points in late October.

    Undoubtedly, AMP shares are lagging behind the Financial Index which has continued to accelerate since March 2020.

    Based on today’s price, AMP commands a market capitalisation of roughly $3.27 billion, with approximately 3.27 billion shares on issue.

    The post Here’s why the AMP (ASX:AMP) share price is racing 6% higher today appeared first on The Motley Fool Australia.

    Should you invest $1,000 in AMP right now?

    Before you consider AMP, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AMP wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

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

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  • Rio Tinto share price gains despite reports $3.3b lithium project to be halted

    A sad Rio Tinto miner holds his head in his hands

    The Rio Tinto Limited (ASX: RIO) share price is in the green this morning despite reports one of its major lithium projects could soon be paused due to community protests.

    The Jadar project, located in Serbia, has been the focus of intense debate within the European country, with protestors hitting the streets to voice concerns about its environmental impact.

    Jadar’s development plans were reportedly suspended by the local government last week. Now, Rio will have to interrupt the project’s momentum to host public dialogue over the mine.

    At the time of writing, the Rio Tinto share price is $100.23, 1.02% higher than its previous close.

    For context, the S&P/ASX 200 Index (ASX: XJO) is also up today, having gained 0.65% in early morning trading.

    A quick note before we start: All quotes have been translated from Serbian.

    Rio Tinto share price maintains positive trajectory

    The managing director of Rio Tinto’s Serbian subsidiary, Vesna Prodanović, has reportedly told the local media outlet, Beta that the company will be stopping works to “acquaint residents with all aspects of our project and answer all questions”.

    Fortunately for investors, the Rio Tinto share price remains on a positive trajectory today and is up 2.87% so far this week.

    However, this delay could be detrimental to the company’s push into lithium. According to Rio Tinto, the Jadar project is one of the world’s largest greenfield lithium projects.

    Rio plans to use the minerals from Jadar to create batteries for electric vehicles and renewable energy storage.

    In a recent investment seminar, Rio Tinto stated it expects the first production of lithium from Jadar to occur in 2026. Though, that’s dependant on receiving final permits and approvals from Serbian stakeholders.

    Prodanović told the publication that, so far, only a memorandum of understanding has been signed for the project.

    Jadar’s target production is up to 58,000 tonnes of battery-grade lithium carbonate, 2.16 million tonnes of boric acid, and 255,000 tonnes of sodium sulphate each year.

    Rio Tinto management commentary

    Discussing the pause at Jadar, Beta quoted Prodanović as saying:

    It is extremely difficult in such an intense anti-mining and negative campaign to have a reasonable debate on any topic.

    Prodanović reportedly told Beta that the company has been buying land for the project since August 2020. It supposedly had to do so to obtain building permits.

    It’s the second time news of Rio Tinto’s lithium push has made headlines this week. On Wednesday, Rio Tinto announced a $1.15 billion acquisition of the Argentinian Rincon lithium project.

    Over the year to date, the Rio Tinto share price has fallen 13%.

    The post Rio Tinto share price gains despite reports $3.3b lithium project to be halted appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Rio Tinto right now?

    Before you consider Rio Tinto, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Rio Tinto wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

    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 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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  • 2 very compelling ASX shares for 2022

    steps to picking asx shares represented by four lightbulbs drawn on chalk board

    There are a certain number of ASX shares that are compelling options for 2022.

    Some businesses are expecting a lot of growth in the coming years and they have growth strategies to do what they can to fulfil that potential.

    Management are focused on initiatives that can drive the businesses higher. Here are two leading opportunities:

    Pushpay Holdings Ltd (ASX: PPH)

    Pushpay is a leading ASX tech share. It is a electronic payment business that facilitates billions of (US) dollars of donations to large and medium US churches.

    The business continues to see improvement in various metrics. In the first half of FY22, total processing volume increased 9% to US$3.5 billion, revenue grew 9% to US$93.5 million, the gross profit margin increased from 68% to 69% and the net profit after tax (NPAT) surged 43% to US$19.1 million.

    Pushpay is working on developing the functionality of its suite of solutions to serve the Catholic segment of the market. It’s expecting the benefits from the Catholic segment to be realised over the course of the following years. It’s targeting acquiring more than 25% of Catholic church management system and donor management system market over the next five years.

    The company continues to look for acquisition opportunities that can improve the business. It has previously bought Church Community Builder and Resi Media, which has improved its church management tools and livestreaming capabilities.

    Over the last two months, the Pushpay share price has fallen more than 25%. According to Commsec, it’s now valued at 24x FY23’s estimated earnings.

    Pinnacle Investment Management Group Ltd (ASX: PNI)

    Pinnacle is an ASX share that makes investments in high-quality investment management businesses and helps them grow.

    For the fund managers, Pinnacle can provide a number of benefits including seeding funds under management (FUM) and working capital, distribution and client services, middle office and fund administration, technology and other infrastructure. Compliance, finance and legal services are also provided.

    All of that is offered so that the investment professionals can focus on the investing, not any of the other back-office tasks.

    It’s investing in a number of fund managers like Hyperion, Plato, Solaris, Spheria, and Firetrail.

    The company continues to expand its portfolio as well as seeing organic growth. It recently invested in the private equity investment manager Five V which provides attractive economics.

    As at 31 October 2021, its aggregate affiliate FUM had grown another 1.7% to $89.4 billion, or 6.3% over the four months to 31 October 2021 excluding the $3.9 billion outflow of the Omega passive mandate which only made “very modest” fees. Aggregate retail FUM increased by 13.3% to $23 billion.

    In FY22, it’s expecting growth. The FUM at the last update was more than 30% ahead of FY21’s average FUM.

    Pinnacle has said it’s committed to taking advantage of the “significant” offshore opportunity by evolving into a global multi-affiliate platform.

    It has partnered with Greg Dean, the former principal manager at Cambridge Global Asset Management, to launch its first North American affiliate, based in Toronto, Canada.

    According to Commsec, the Pinnacle share price is valued at 29x FY23’s estimated earnings.

    The post 2 very compelling ASX shares for 2022 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Pinnacle right now?

    Before you consider Pinnacle, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pinnacle wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

    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 PINNACLE FPO and PUSHPAY FPO NZX. The Motley Fool Australia owns and has recommended PINNACLE FPO and PUSHPAY FPO NZX. 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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  • Analysts say these small cap ASX shares could be going places in 2022

    A female executive smiles as she carries out business on her mobile phone.

    If you have a penchant for investing in small cap shares, then you might want to look at the two listed below.

    Here’s why these are highly rated by analysts right now:

    MoneyMe Ltd (ASX: MME)

    The first small cap ASX share to watch is MoneyMe. It is a fintech that uses technology and artificial intelligence to deliver highly automated credit products and customer experiences.

    MoneyMe notes that it originates loans through a diversified mix of credit products and distribution channels to create significant scale and long-term customer advantages. This will soon include the SocietyOne business, which MoneyMe recently signed an agreement to acquire for $132 million.

    In response to the acquisition, Morgans retained its add rating and lifted its price target to $2.57.

    Morgans commented: “The acquisition seems a good strategic fit, in our view, with MME adding significant scale to its already rapidly growing business. From FY24, A$17m in pre-tax cost synergies and greater than A$15m in revenue synergies are expected. We have the transaction as cash EPS accretive post synergies and integration costs from FY24 (~6% – ex Revenue synergies).”

    “Whilst not without integration risk, the deal should allow MME to continue to deliver strong book growth as it penetrates this additional customer base and utilises new distribution/marketing channels,” it added.

    Nitro Software Ltd (ASX: NTO)

    Another small cap ASX share to look at is Nitro Software. It is a global document productivity software company aiming to drive digital transformation in organisations across multiple industries globally.

    Nitro’s core solution is the Nitro Productivity Suite. It provides integrated PDF productivity and eSignature tools to customers through a horizontal, software as a service and desktop-based software suite.

    Bell Potter is very positive on the company, particularly given its recent “game-changing” acquisition of Connective NV for ~US$81 million.

    The broker commented: “The rationale for the acquisition is it will accelerate and enhance Nitro’s eSign, eID (electronic identity) and document workflow capabilities. It will also position Nitro to become the third global player in the enterprise eSign market along with DocuSign and Adobe.”

    Bell Potter currently has a buy rating and $4.50 price target on the company’s shares. This compares favourably to the latest Nitro share price of $2.40.

    The post Analysts say these small cap ASX shares could be going places in 2022 appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of August 16th 2021

    More reading

    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 Nitro Software 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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  • Where are CSL (ASX:CSL) shares headed in 2022?

    The back of a man standing in front of two roads going in different directions.

    It’s been a wild ride for CSL Limited (ASX: CSL) shareholders this year.

    Before the market opened on Friday, the biotechnology stock had only changed 2.4% upwards in all of 2021 to trade at $291.83. 

    But along the way, investors had to hold on for dear life through a 52-week high of $319.78 and a low of $242.

    So where will CSL shares head in 2022?

    Next 3 to 6 months are critical for CSL

    To finish the year, CSL raised $6.3 billion of capital to fund its acquisition of Swiss company Vifor Pharma AG (SWX: VIFN).

    According to Redpoint Investment Management chief Max Cappetta, it was “the single largest primary raising in Australian history” and allowed the takeover to complete at an 8% discount to market price.

    “On paper, the merits of the transaction are for an immediate uplift in EPS [earnings per share] for the group, however, there are some uncertainties related to patent litigation at Vifor,” he told The Motley Fool.

    “This acquisition presents a new and valuable growth opportunity for a company which has prided itself on exemplary global growth over the past two decades.”

    Currently, Cappetta’s team estimates that the CSL share price is at a “slight premium” to what they think is fair value.

    “The next 3 to 6 months will be critical for the company to show that this acquisition will deliver the growth that the company needs to reaffirm its long-term share price performance,” he said.

    “All eyes will be on the management discussion at their mid-year result in February.”

    ‘Pipeline of lucrative products under development’

    Analysts at Citi are perhaps more bullish on CSL’s share price.

    Last week they slapped a “buy” rating on the stock with a price target of $340, which is a 16.5% upside to the current level.

    As well as the Vifor acquisition giving the business additional capability in kidney disease and iron deficiency treatments, CSL’s plasma collection operations should pick up as the US moves past COVID-19 restrictions.

    “But it doesn’t stop there,” reported The Motley Fool’s James Mickleboro.

    “Thanks to its ~US$1 billion spend on R&D annually, CSL has a pipeline of lucrative products under development to drive its future growth.”

    The post Where are CSL (ASX:CSL) shares headed in 2022? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in CSL right now?

    Before you consider CSL, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSL wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

    Motley Fool contributor Tony Yoo owns CSL Ltd. 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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  • These ASX healthcare shares could be excellent buy and hold options

    disembodied hands in pink surgical gloves making heart shape

    The healthcare sector has been a great place to invest over the last decade. And while COVID-19 has certainly thrown a spanner into the works recently, the long-term outlook for the sector remains very positive.

    With that in mind, listed below are two ASX healthcare shares that could be great options for patient investors:

    Nanosonics Ltd (ASX: NAN)

    The first ASX healthcare share to look at is Nanosonics. It is the infection control specialist behind the industry-leading trophon EPR disinfection system for ultrasound probes. This system has been growing its footprint at a strong rate over the last few years, generating solid unit and consumables sales.

    The company is also working on a number of new products. One is Nanosonics Coris, which aims to transform the cleaning of flexible endoscopes. This is highly important given that more healthcare-associated outbreaks have been linked to contaminated endoscopes than any other medical device. And given how there are over 60 million flexible endoscopy procedures being undertaken across the United States and the five largest European markets each year, the company has a significant addressable market once Coris launches in 2023.

    Morgans is positive on Nanosonics. It currently has an add rating and $6.97 price target on its shares.

    Ramsay Health Care Limited (ASX: RHC)

    Another ASX healthcare share to look at is Ramsay Health Care. It is one of the world’s leading private healthcare companies, providing services to over 8 million patients each year through a network of facilities across 10 countries and over 500 locations.

    Trading conditions have been tough for Ramsay over the last 18 months and its performance in FY 2022 is likely to suffer because of this. However, once the pandemic passes, the company looks well-placed to return to strong growth. Particularly given the pent-up demand for healthcare services and the recently announced acquisition of Elysium Healthcare.

    Goldman Sachs believes the strong potential for improvement in near-term fundamentals is still not reflected in current trading multiples. In light of this, it sees a lot of value in the Ramsay share price at current levels.

    The broker recently reiterated its buy rating and $74.00 price target on the company’s shares.

    The post These ASX healthcare shares could be excellent buy and hold options appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of August 16th 2021

    More reading

    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 Nanosonics Limited. The Motley Fool Australia owns and has recommended Nanosonics Limited. The Motley Fool Australia has recommended Ramsay Health Care 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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  • Is the Bega (ASX:BGA) share price a buy after crashing 10%?

    Young woman using computer laptop with hand on chin thinking about question, pensive expression.

    The Bega Cheese Ltd (ASX: BGA) share price was a very poor performer on Thursday.

    The diversified food company’s shares finished the 10% lower at $5.04.

    This was an improvement on the 52-week low of $4.84 it hit during intraday trade.

    Why did the Bega share price sink?

    Investors were selling down the Bega share price yesterday following the release of a trading update.

    Although the company revealed that it expects to deliver strong operating earnings growth in FY 2022, it was still well short of the market’s expectations.

    Bega has provided guidance for normalised EBITDA in the range of $195 million to $215 million. This represents a year on year increase of 37% to 51%. However, Goldman Sachs was expecting $227 million and the Bloomberg consensus estimate stood at $222 million.

    Is this a buying opportunity?

    Despite the sharp pullback in the Bega share price yesterday, the team at Goldman Sachs aren’t in a rush to invest.

    This morning the broker reiterated its neutral rating and cut its price target by 13% to $5.65.

    It notes that Bega’s “earnings have been impacted by a decline in milk supply and pressure on margins, caused by continued strong competition for milk amongst processors.”

    In light of this, Goldman has revised its earnings estimates meaningfully lower for the coming years.

    It explained: “The key drivers of our revisions are: slightly lower milk intake volumes; and lower processing margins due to elevated procurement costs. We had previously expected global dairy commodity prices to offset elevated Australian farm gate milk prices. However, it has become apparent that continued strong demand from processors and retailers, combined with a decline in supply, has created a margin squeeze for BGA.”

    Overall, the broker doesn’t see enough value in the Bega share price at the current level for a more positive rating and stays neutral.

    The post Is the Bega (ASX:BGA) share price a buy after crashing 10%? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bega right now?

    Before you consider Bega, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bega wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

    More reading

    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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  • Could 2022 be a good year for the BHP (ASX:BHP) share price?

    A fortune teller looks into a crystal ball in an office surrounded by business people.

    It has been a mixed year for the BHP Group Ltd (ASX: BHP) share price. In 2021 to date, BHP shares have dropped by 4% to around $41.

    However, BHP shares have fallen as low as approximately $35 and gone as high as $54 this year. Considering how big BHP is, that is a large valuation change over one year. Indeed, both the high and the low were felt in the second half of the year.

    But what could happen to the BHP share price in 2022?

    Brokers are somewhat mixed on the business’ prospects over the next year.

    For example, analysts at UBS currently rate the business as ‘neutral’. However, the UBS price target of $37 is actually 10% lower than where it is today, suggesting a sizeable decline over the next 12 months.

    UBS has noted the plan by BHP to unify its Australian and UK companies under the Australian business. The cost to do this is lower than it used to be and it will simplify the structure of the business, making it easier to do transactions such as the divestment of its oil business to Woodside Petroleum Limited (ASX: WPL).

    The broker thinks that divesting the oil business is a good move because of the possibility of a future de-rating because of environmental concerns.

    But at the positive end of various broker opinions, Macquarie Group Ltd (ASX: MQG) thinks that it is a buy. Macquarie’s price target on the resources giant is $52, which is 26% higher.

    Based on Macquarie’s earnings projections, the BHP share price is valued at 9x FY22’s estimated earnings and 13x FY23’s estimated earnings.

    Macquarie thinks that steel demand is rising again in China over the last several weeks whilst inventory of steel drops.

    Macquarie notes that BHP’s profit is reliant on commodity prices.

    What is the resources outlook?

    Macquarie has already mentioned that things are looking a bit better for iron ore, in the shorter-term at least. However, some brokers like UBS have said that they expect the iron ore price to settle lower over the next couple of years.

    BHP itself said in August that it was anticipating a continuation of strong end-use demand conditions in China for steel and ongoing recovery in the rest of the world over the course of FY22. Iron ore has been a substantial influence for the BHP share price over the last year.

    Copper prices have been strong and the short-term outlook for demand was “constructive”. In the longer-term, BHP said that both demand and supply factors indicate that copper is an attractive avenue for future growth.

    BHP is also expecting nickel prices will benefit substantially from the global electrification mega-trend.

    Potash prices are rising from both “favourable farm economics” and constrained supply. Over the longer-term, management expect that potash will benefit from the trends of rising population, changing diets and the need for sustainable intensification of agriculture.

    The post Could 2022 be a good year for the BHP (ASX:BHP) share price? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in BHP right now?

    Before you consider BHP, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP wasn’t one of them.

    The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of August 16th 2021

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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 Macquarie 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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