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Kogan.com Ltd (ASX: KGN) shares have had a rough run in 2021. A slowdown in sales paired with excess inventory has led to a year fraught with challenges.

For shareholders, this difficult time for the company has meant a depressed Kogan share price. Since the beginning of the year, Kogan shares have fallen nearly 54% in value. For context, the S&P/ASX 200 Index (ASX: XJO) has rallied 10% during this time.

Despite the heavily reduced price, one fund manager prefers Temple & Webster Group Ltd (ASX: TPW) over Kogan.

Let’s delve deeper into why that is.

Why this expert isn’t a huge fan of Kogan shares

The team at EGP Capital shared their perspective on Kogan shares in their fund’s October report. In explaining the positioning of the EGP Concentrated Value fund, chief investment officer (CIO) Tony Hansen compared two ASX-listed e-commerce heavyweights — Kogan and Temple and Webster.

The seasoned fund manager explained how he has witnessed the Kogan business grow revenues year after year. Likewise, profits have seemed to enlarge over the years. However, often more than 100% of the profits have been poured straight back into inventory.

Alternatively, Hansen would prefer cash flows that could be paid to shareholders if no other investment opportunities exist within the business. The overdone reinvestment in inventory can manifest itself in excessive inventory levels, which has been the case for Kogan recently.

Turning to the company’s FY 2020 annual report, Kogan achieved $781 million in annual revenue from a closing inventory of $228 million. As the CIO of EGP Capital points out, this implies 3.4 inventory turns based on booked turnover.

As a result, the Ruslan Kogan-led company was operationally cash flow negative despite increasing sales by $307 million year on year. This has been part of the reason for the recent weakness in Kogan shares. In addition, the true value for inventory efficiency is likely worse considering a portion of the company’s sales are non-inventory items, such as mobile plans, travel insurance, and internet plans.

In comparison, Temple and Webster reported $326 million in annual revenues from a closing inventory of $21.3 million. This equates to 15.3 inventory turns during the period, compared to Kogan’s 3.4. This indicator of higher inventory efficiency resulted in the generation of $24.5 million in positive operating cash flow.

What else?

While the fund suggests a preference for Temple and Webster over Kogan shares, the most preferred e-commerce play in the fund is Mydeal.Com AU Ltd (ASX: MYD). In fact, EGP Capital’s fund holds the smaller e-commerce company as its tenth largest position, holding a 3.3% weighting.

The post Kogan shares or Temple & Webster? This expert has their say appeared first on The Motley Fool Australia.

More reading

• What are Kogan (ASX:KGN) shares really worth? Here’s what Scott Phillips says
• These are the 10 most shorted ASX shares
• Analysts have slapped buy ratings on these 2 growing ASX shares
• Why is the Kogan (ASX:KGN) share price still dropping? Scott Phillips weighs in
• 3 fantastic ASX shares to buy this month

Motley Fool contributor Mitchell Lawler owns shares of Kogan.com Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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There are plenty of bullish investors keeping their eye on the Webjet Limited (ASX: WEB) share price. Particularly, as Australia distances itself from its recent set of pandemic-induced lockdowns and gets closer to fully reopening.

But, with Western Australia not expected to open its borders until February and rising COVID-19 cases in parts of the Northern Hemisphere, are Webjet shares a good buy?

Here’s what Ausbil chair, chief investment officer, and head of equities Paul Xiradis thinks.

At the time of writing, the Webjet share price is $5.63, 1.05% lower than its previous close.

Is the Webjet share price a buy?

Webjet fans rejoice — the person charged with much of Ausbil’s $15.8 billion of funds under management is bullish on the online travel agent’s share price.

Xiradis believes Webjet and its S&P/ASX 200 Index (ASX: XJO) travel peers could be a buying opportunity for financial year 2022.

He has a positive outlook for Webjet’s earnings growth ahead of the reopening of borders. Additionally, Xiradis states he expects Webjet will see its earnings increase as Australia distances itself from the September quarter’s lockdowns.

However, not everyone is as bullish on Webjet’s stock or its upcoming half-year results.

The company continued to make it onto The Motley Fool Australia’s weekly list of the most shorted shares during November. As of yesterday, 9.3% of Webjet’s shares are in short positions.

As Webjet recently shifted its financial year to run from 1 April to 31 March, the company is set to publish its earnings for the first half of financial year 2022 tomorrow. Thus, it stands to reason short-sellers might be expecting bad news.

Right now, the Webjet share price is 10% higher than it was at the start of 2021. However, it has fallen 8% over the last 30 days.

It’s likely that many eyes will be on it again today to see how Australia’s most recent lockdowns affected the company’s business.

The post Are Webjet (ASX:WEB) shares still worth buying with travel opening up? appeared first on The Motley Fool Australia.

More reading

• Here’s why the Webjet (ASX:WEB) share price is having a lousy start to the week
• Here’s why ASX 200 travel shares are getting hammered today
• ASX 200 (ASX:XJO) midday update: Lithium miners jump, Flight Centre tumbles
• These are the 10 most shorted ASX shares
• Why all eyes will be on the Webjet (ASX:WEB) share price next week

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 recommended Webjet 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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Thankfully for investors, the Australian share market is home to a good number of high quality blue chip shares to choose from.

Two blue chip ASX 200 shares that could be worth considering as additions to your portfolio right now are listed below. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

The first blue chip ASX 200 share to look at is BHP. The Big Australian is one of the world’s largest miners and owns a diverse portfolio of world class, low cost operations across the globe. Thanks to favourable prices for many of the commodities it produces, BHP appears well-placed to generate significant free cash flow again in FY 2022. This is despite the recent pullback in iron ore prices. This could make the recent weakness in the BHP share price a buying opportunity for investors.

The team at Macquarie certainly believe this to be the case. The broker currently has an outperform rating and $52.00 price target on the miner’s shares. Macquarie also expects BHP’s free cash flow generation to be strong enough to support a 10% dividend yield in FY 2022 at the current share price.

National Australia Bank Ltd (ASX: NAB)

Another blue chip ASX 200 share that is rated highly is NAB. While the banking sector has fallen out of favour with investors following the recent bout of results releases, many analysts are remaining positive on NAB. This is due to the progress of its cost management initiatives and its strong position in business/commercial banking.

Goldman Sachs is one of the more bullish brokers. It believes that NAB’s cost management initiatives (which it notes are further progressed relative to peers) have freed up investment spend to be more directed towards customer experience. In addition, the broker likes NAB due to its position as the largest business bank. This is due to Goldman’s belief that retail-focused banks will struggle with aggressive competition for mortgages.

All in all, NAB is the broker’s top pick among the big four banks and has a conviction buy rating and $31.15 price target on its shares.

The post Analysts name 2 ASX 200 blue chip shares to buy now appeared first on The Motley Fool Australia.

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• Why this mining analyst is upbeat on the iron ore price forecast
• These are the 10 most shorted ASX shares
• Fortescue’s push to axe diesel subsidies could cost ASX miners billions

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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The Northern Star Resources Ltd (ASX: NST) share price is tumbling lower this morning on news the company will be undertaking an acquisition.

Northern Star has agreed to buy Newmont Corporation‘s power business for US$95 million by acquiring its holding company.

At the time of writing, the Northern Star share price is $9.86, 1.99% lower than its previous closing price.

Let’s take a closer look at the latest news from the gold producer.

Northern Star’s new acquisition

The market is bidding the Northern Star share price down after the company announced it was purchasing GMK Investments Pty Ltd, the owner of the Newmont power business.

GMK also owns NP Kalgoorlie Pty Ltd which, in turn, has a 50% holding in Goldfields Power Pty Ltd.

To complete the circle, Goldfields Power owns the Parkeston Power Station.

The Parkeston Power Station primarily supplies electricity to Northern Star’s 50%-owned Kalgoorlie Consolidated Gold Mines (KCGM). KSGM is the operator of Kalgoorlie’s Super Pit.

Northern Star purchased its share of KCGM from Newmont Corporation for US$800 million in 2019. As part of the 2019 acquisition, Northern Star paid US$25 million for the option to purchase the Newmont power business.

That US$25 million will come off the top of the acquisition price, leaving Northern Star with a US$70 million bill for its newly announced purchase.

Northern Star managing director Stuart Tonkin said the acquisition will give the company more control of its power supply. He also stated:

The purchase means our Kalgoorlie power supply will now form part of our studies into ways to meet our commitment to becoming carbon-neutral.

According to Northern Star, the acquisition will bring plenty of other synergies and value. One such synergy will see cheaper power costs for KCGM.

Northern Star share price snapshot

The Northern Star share price is 22% lower than it was at the start of 2021. However, it has gained almost 4% since this time last month.

The post Northern Star (ASX:NST) share price slumps despite acquisition news appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
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• Why is the Northern Star (ASX:NST) share price sinking 3% today?
• 5 things to watch on the ASX 200 on Monday
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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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The Telstra Corporation Ltd (ASX: TLS) share price has returned to form in 2021.

Since the start of the year, the telco giant’s shares have risen 35% to $4.08.

Why is the Telstra share price on form in 2021?

Investors have been bidding the Telstra share price higher this year due to the company’s increasing positive outlook, which is being underpinned by its T22 and newly announced T25 strategy.

In September, Telstra’s CEO, Andy Penn, noted that the T22 was based on transforming the company, whereas T25 will be about driving growth.

Mr Penn: “T22 has been one of the largest, fastest and most ambitious transformations of a telco globally and today we are a vastly different company. This means we are poised for growth as our society and economy increasingly digitises and we all work, study, transact and get our entertainment online. These fundamental shifts, together with T25, will underpin our future growth and shareholder value.”

Telstra is now aiming for sustained growth and value by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share (EPS) compound annual growth rates between FY 2021 and FY 2025.

Dividend optimism

In light of the above, a number of analysts believe that Telstra could be on the cusp of increasing its dividend for the first time in almost a decade.

Telstra last increased its dividend in 2015 but the team at Goldman Sachs believe there’s potential for an increase in FY 2024.

Goldman commented: “We note that High-teens EPS growth aspirations suggest upside risk to 16c DPS by FY24E, in-line with expectations.”

The broker has pencilled in an 18 cents per share fully franked dividend in FY 2024 and then a 19 cents per share fully franked dividend in FY 2025. Based on the current Telstra share price, this will mean yields of 4.4% and 4.65%, respectively.

Goldman currently has a buy rating and $4.40 price target on Telstra’s shares.

The post Is the Telstra (ASX:TLS) dividend heading up for the first time in almost 10 years? 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 owns shares of and has recommended Telstra Corporation 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 Volpara Health Technologies Ltd (ASX: VHT) share price is in the green in early trade today, up 2.9% to $1.06.

Investors are pushing up Volpara Health shares after the medical technology software as a service (SaaS) player released its half-year accounts before the open.

It was a record year for the provider of breast imaging analytics, winning new business and growing recurring revenue while doing so.

Here’s a closer look at Volpara’s result for the 6 months ended 30 September 2021.

Volpara share price climbs on positive result

• Annual recurring revenue (ARR) increased by over US$1.8 million to US$20.4 million;
• Accounting revenues grew by NZ$2.9 million to NZ$12.3 million;
• The net loss for HY22 was NZ$8.5 million, an improvement of 4% from NZ$8.9 million in the prior period; and
• Full-year guidance of NZ$25–26 million retained.

What happened this half for Volpara?

The company posted its “best-ever” half-year result in terms of new business won. ARR increased by more than US$1.8 million to US$20.4 million, a gain of almost 10% from the end of FY21.

This came with a corresponding increase in accounting revenues of NZ$2.9 million to NZ$12.3 million, up 30% from $9.5 million for the first half last year.

Cash receipts delivered record growth for the company this half, increasing by more than 40% to NZ$13.5 million (or 48% in constant currency).

Volpara’s SaaS segment gained more steam this quarter too, with cash receipts from subscriptions growing approximately 50% to NZ$13.1 million. On this result, receipts from capital sales decreased approximately 55% to NZ$500,000 compared with NZ$1.1 million in the prior period.

Aside from this, the company made an initial investment into RevealDx, a lung artificial intelligence (AI) company based in Seattle. It further signed a collaboration agreement with Riverain Technologies, also US-based, each to expand Volpara’s lung market penetration.

The release also notes that Volpara’s software reached the milestone of featuring in 200 peer-reviewed articles. According to the company, this “clearly sets [it] apart from the competition. It demonstrates Volpara’s commitment to providing the most clinically validated breast density software available and the continual investment in research and development of core IP”.

The net loss for the half was NZ$8.5 million, an improvement of 4% from NZ$8.9 million in the prior period. Similarly, normalised earnings before interest, taxes, depreciation, and amortisation (EBITDA) improved 4% from NZ$6.6 million to NZ$6.4 million.

The update seems to have pleased investors today. The Volpara share price also climbed when the company released its quarterly update back in October.

What’s the outlook for Volpara?

Volpara noted it is focused on delivering full-year guidance of NZ$25–26 million. It is also continuing to build out key strategic initiatives.

This includes “Analytics in Action”, a client-centred service exclusively for customers of Volpara Analytics. It is designed to help breast imaging facilities “develop a culture of continuous performance improvement and recognise technologists that meet quality benchmarks”.

It is also focused on building out its data platform of more than 49 million x-ray images and expanding its electronic health record (EHR) sales channel.

What is management saying?

Commenting on the news likely driving the Volpara share price today, its directorship said:

While clearly indicating an incredibly busy commercial HY, we also recognise that a focus for many of our employees and investors is impact. With coverage now of over 13.4M US women with at least one of our products, it is clear we are helping many women get safer, more comfortable, and more accurate breast cancer screenings. Results from studies like the DENSE trial show that such screenings lead to significant increases in the numbers of cancers caught early.

Volpara share price snapshot

Volpara is trading deep in the red over the past 12 months and has lost almost 24% in that time.

This year the Volpara share price is down around 28%, and is down almost 18% for the month.

The post Best-ever result: Volpara Health (ASX:VHT) share price jumps on half-year update appeared first on The Motley Fool Australia.

More reading

• Have money to invest? Here are 2 ASX shares that could be potential buys
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• Volpara (ASX:VHT) share price pushes higher on record quarterly update

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended VOLPARA FPO NZ. 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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An Australian smartphone app is offering a return of 4.01% per annum paid out daily for users who buy the TrueAUD (CRYPTO: TAUD) cryptocurrency.

The Finder app claims more than 12,000 Australians are currently on the waiting list for its Finder Earn scheme, which launched this week for 1,000 users.

The feature is described as “a cryptocurrency-based loan” given from the user to Finder, which pays out 4.01% as compensation.

TrueAUD is a ‘stablecoin’ that’s theoretically pegged 1-to-1 to the Australian dollar.

“Based on the Finder Earn model, if you were to transfer the maximum initial balance of 10,000 TAUD to your Finder Earn wallet, you would make more than 400 TAUD in a year on your capital,” stated Finder.

A very competitive return

The 4.01% return per year is pretty attractive in the current near-zero interest rate environment.

With the Reserve Bank’s cash rate languishing at a historic low, even the best bank term deposits barely bring back 0.5% per annum.

While there are ASX shares that provide a dividend yield of 4% or more, there is no knowing whether your initial capital will grow or shrink.

Finder editor-in-chief Angus Kidman reckoned Finder Earn is an Australian-first.

“The financial world as we know it is changing and we are giving Aussies a chance to participate in this new ecosystem,” he said.

“Finder Earn is an exciting way of getting a more attractive yet stable return on your capital.”

Is TrueAUD truly true?

Even though TrueAUD is theoretically pegged to the real Australia dollar, buying and selling still depends on supply and demand. For example, on Tuesday morning, CoinGecko was showing that one TrueAUD was worth $1.24.

But the Finder app is guaranteeing instant fee-free liquidation, which is another massive advantage over locking money into a term deposit.

“You can withdraw your capital from your Finder Earn account at any time with no fees,” said Kidman.

“Our mission is to help people make better financial decisions. Understanding crypto is not easy and we are trying to demystify it.”

TrueAUD was created by a company named Trusttoken, which also makes stablecoins TrueUSD (CRYPTO: TUSD) and TruePound (CRYPTO: TGBP).

According to Trusttoken, TrueAUD currently has a market capitalisation of $30,917,724.

The post Aussie app promises 4%pa return on AUD ‘stablecoin’ cryptocurrency appeared first on The Motley Fool Australia.

More reading

• Why the Bapcor (ASX:BAP) share price is crashing 10% lower on Tuesday
• TechnologyOne (ASX:TNE) share price on watch following strong SaaS growth in FY21
• 2 ASX 200 tech shares Citi rates as buys
• Is the Fortescue (ASX:FMG) share price dirt cheap or overvalued?
• 2 ASX 200 shares that could be top buys for growth

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

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The Bapcor Ltd (ASX: BAP) share price is under pressure on Tuesday morning and trading notably lower.

At the time of writing, the auto parts retailer’s shares are down a disappointing 10% to $7.42.

Why is the Bapcor share price tumbling lower?

Investors have been selling down the Bapcor share price on Tuesday following the release of a surprise announcement.

According to the release, Chief Executive Officer and Managing Director, Darryl Abotomey, is stepping down after a decade leading the company. Mr Abotomey intends to retire on 28 February 2022, but will remain available to the company until 30 June 2022 to assist with an orderly transition.

The outgoing CEO commented: “It has been a privilege to lead the Bapcor business over the last decade and see the company’s transformation over that time.”

“With a strong operating and financial position, it feels like an appropriate time in the company’s journey to step back and retire. I have appreciated and thank Bapcor’s passionate team members, franchisees, suppliers and shareholders for their support over the past ten years,” he added.

What now?

The release advises that an extensive global search process has commenced to appoint a permanent CEO. However, if a permanent CEO has not been appointed by 28 February, Bapcor’s Non-Executive Director, Mark Powell, will assume the role of Acting CEO.

Commenting on Mr Abotomey’s departure, Bapcor’s Chair, Margie Haseltine, said: “On behalf of the Board and the Bapcor team we thank Darryl for his outstanding commitment and wish him well for the future.”

The Board also took this opportunity to advise that there is no change to the previously issued financial guidance for FY 2022. This is for a profit result at least in line with FY 2021’s record result.

The post Why the Bapcor (ASX:BAP) share price is crashing 10% lower on Tuesday appeared first on The Motley Fool Australia.

More reading

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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 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 TechnologyOne Ltd (ASX: TNE) share price will be on watch this morning.

This follows the release of the enterprise software company’s full year results.

TechnologyOne share price on watch after reporting strong growth

• Total revenue up 4% to $312 million
• Total annual recurring revenue (ARR) up 16% to $257.5 million
• Software-as-a-Service (SaaS) ARR up 43% to $192.3 million
• Profit before tax up 19% to $97.8 million
• Expenses down 1% to $214.2 million
• Cash flow generation up 12% to $63.9 million
• Total dividends increased 8% to 13.91 cents per share

What happened in FY 2021?

For the 12 months ended 30 September, TechnologyOne delivered a 43% increase in SaaS ARR to $192.3 million and a 19% lift in profit before tax to $97.8 million. The latter was at the top end of its guidance and underpinned by the continuing fast growth of its Global SaaS ERP solution.

The SaaS ERP solution continues to grow in popularity and is supporting strong recurring revenue growth. Pleasingly, with the company recently announcing the end of its On-Premise business by October 2024, this side of the business is expected to continue its growth in the years to come. So much so, management continues to target $500 million in ARR by FY 2026. This is almost double its current ARR.

Management commentary

TechnologyOne spoke very positively about its SaaS business and its outlook.

It said: “Our SaaS business continues to grow quickly. The quality of this revenue stream is exceptionally high, given its recurring contractual nature, combined with our very low churn rate of ~1%. Combined with our announcement of the end of our On-Premise business, this is driving our Annual Recurring Revenue growth.”

“Our Total ARR is $257.5m, up 16%. We are on track to hit our target of $500m+ ARR by FY26. Given the current ARR is $257.5m, this is an additional $242.5m of annual recurring revenue in the next 5 years. Our ARR stands at 90% of Total Revenue which means the majority of our revenue is locked-in at the start of the financial year. This positions us well to achieve strong continuing growth in the new year,” it added.

No real guidance has been provided for FY 2022, other than management’s expectations that revenue will grow by 15%+ per annum in the next few years. Management also expects its strong profit growth to continue in 2022.

The TechnologyOne share price is up 57% in 2021.

The post TechnologyOne (ASX:TNE) share price on watch following strong SaaS growth in FY21 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 3 ASX 200 shares cruising past 52-week highs today
• Why this top broker is bullish on the TechnologyOne (ASX:TNE) share price
• This ASX 200 tech share just hit another all-time high, its fourth this month
• 3 great ASX tech shares that might be good buys

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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If you’re not sure which ASX shares to buy, then the two listed below could be worth considering.

These ASX 200 tech shares have been tipped as buys by the analysts at Citi. Here’s what they are saying about them:

Appen Ltd (ASX: APX)

The first ASX 200 tech share that Citi rates highly is Appen. It is an artificial intelligence data services company preparing the data that goes into the artificial intelligence and machine learning models of some of the biggest tech companies in the world such as Google and Facebook. While a reduction in investment from tech giants in these activities at the height of the pandemic weighed on demand for Appen’s services, the tide does now appear to be turning. Particularly given a recent update from rival Telus, which Citi highlights as pointing to improving trends for artificial intelligence data projects.

Citi currently has a buy rating and $17.10 price target on Appen’s shares. This compares to the latest Appen share price of $11.80.

NEXTDC Ltd (ASX: NXT)

Another ASX 200 tech share that Citi is a fan of is NEXTDC. It is one of the Asia-Pacific region’s leading data centre operators. NEXTDC has been growing at a consistently strong rate for years thanks to the structural shift to the cloud. This has led to increasing demand for capacity in its growing network of world class data centres across Australia. More of the same is expected in FY 2022, with the company guiding to operating earnings growth of 19% to 22% year on year. Citi appears confident this solid form with continue beyond FY 2022 thanks to accelerating cloud adoption and digitisation.

The broker currently has a buy rating and $15.40 price target on the company’s shares. This compares to the latest NEXTDC share price of $12.47.

The post 2 ASX 200 tech shares Citi rates as buys appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen 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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