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The Xero Limited (ASX: XRO) share price was a poor performer last week.

The cloud accounting platform provider’s shares dropped a disappointing 6% over the period to end at $142.26.

Why did the Xero share price tumble?

Investors were selling down the Xero share price last week after its half year results fell short of expectations.

For the six months ended 30 September, Xero reported a 23% increase in operating revenue to NZ$505.7 million but a 19% decline in EBITDA to NZ$98.1 million.

The former was softer than the market was expecting, which means it’ll need a big second half to reach consensus estimates. Management blamed this partly on COVID-19 lockdowns.

Is this a buying opportunity?

The team at Citi believe investors should be buying the Xero share price dip.

While its analysts acknowledge that the first half result was weaker than expected, it saw enough to upgrade the company’s shares.

According to the note, the broker has upgraded its shares to a buy rating and lifted the price target on them to $160.00.

Based on the current Xero share price, this implies potential upside of 12.5% for investors.

What did Citi say?

Citi commented: “Xero’s core accounting growth in 1H22 was a bit weaker than expected (partly a function of lockdowns) and North American subscriber growth missed our expectations. However, with AMRR growth accelerating to 29% from 17% in FY21 (26% excl. acquisitions), we upgrade to Buy ($160 target price) as we expect solid growth over the medium term as Xero increases penetration of existing markets (~18% penetration excl. North America), enters new markets (e.g. Europe) and increases ARPU. Our Buy call is not dependent on success in the US, with our forecasts assuming 2.2 million subs in North America in FY31e (~7% penetration).”

The post Xero (ASX:XRO) share price sinks: Citi says buy the dip appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Goldman says the Xero (ASX:XRO) share price selloff is a buying opportunity
• 5 things to watch on the ASX 200 on Friday
• Why Liontown, Nearmap, Ramsay, and Xero shares are sinking today
• Why is the Xero (ASX:XRO) share price tumbling 7% if the company is growing revenue?

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 shares of and has recommended Xero. The Motley Fool Australia owns shares of 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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The fund manager Wilson Asset Management (WAM) has recently identified two top small cap ASX shares that it owns in its portfolio that could be ideas.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM).

There’s also one called WAM Microcap Limited (ASX: WMI) which targets small cap ASX shares with a market capitalisation under $300 million at the time of acquisition.

WAM says WAM Microcap targets the most exciting undervalued growth opportunities in the Australian microcap market.

The WAM Microcap portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 25.2% per annum since inception in June 2017, which is superior to the S&P/ASX Small Ordinaries Accumulation Index average return of 12.2%.

These are the two small cap ASX shares that WAM outlined in its most recent monthly update:

Superloop Ltd (ASX: SLC)

WAM described Superloop as a leading telecommunications provider that owns and operates metropolitan fibre networks in Australia, Singapore and Hong Kong, connecting the regions’ key data centres and bandwidth intensive buildings.

During the month of October 2021, it announced the sale of its Hong Kong business and certain Singapore assets for $140 million, a 30% premium to the carrying value of the assets.

The fund manager said that this sale will allow the company to redeploy the proceeds generated from the sale in acquisitions that can add to earnings or capital management initiatives.

Superloop also said that in connection with the sale, it will maintain operations in Singapore and Hong Kong and enter into a 15-year indefeasible right of use on the existing or future expanding networks. This will allow the company to continue to participate in these markets and provide end-to-end connectivity services to Superloop’s INDIGO submarine customers in the region.

Praemium Ltd (ASX: PPS)

Praemium was described as a global leader in the provision of technology platforms for managed accounts, investment administration and financial planning.

The fund manager pointed out that the small cap ASX share services 300,000 investor accounts and manages over $170 billion in funds globally for more than 1,000 financial institutions and intermediaries.

In October, Praemium reported a record inflow of $1.7 billion for the three months ending 30 September 2021. That was 37% higher than the previous quarter. It also achieved record total funds under administration (FUA) of $45.6 billion.

Then, in early November 2021, the fintech company announced that it had received a takeover merger proposal from the financial services and technology business Netwealth Group Ltd (ASX: NWL).

If the takeover goes ahead, Praemium shareholders would be entitled to receive one new Netwealth share for every 11.96 Praemium shares, or receive a cash alternative.

The fund manager believes that the proposed merger, if implemented, will create substantial value for Praemium shareholders due to the compelling synergies it will produce.

The post Wilson Asset Management believes these 2 leading small cap ASX shares are a buy appeared first on The Motley Fool Australia.

More reading

• Here’s why Praemium (ASX:PPS) shares are up 10% on Wednesday
• Why AMP, Eclipx, Paradigm, and Praemium shares are surging higher
• Why is the Praemium (ASX:PPS) share price 15% higher on Tuesday?
• Why Goodman, Praemium, Step One, and Telix shares are charging higher
• ASX 200 (ASX:XJO) midday update: Netwealth’s merger proposal, IAG sinks

Motley Fool contributor Tristan Harrison owns shares of WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Netwealth, Praemium Limited, and SUPERLOOP FPO. The Motley Fool Australia owns shares of and has recommended Netwealth. The Motley Fool Australia has recommended Praemium 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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There are a large number of ASX shares to choose from on the Australian share market.

Five that come highly rated are listed below. Here’s why these ASX shares are being tipped as buys:

Bapcor Ltd (ASX: BAP)

The first ASX share to consider is Bapcor. It is the Asia Pacific region’s leading provider of vehicle parts, accessories, equipment, service and solutions. While the name may not be familiar to all, its brands are likely to be. Bapcor is the name behind a number of retail brands including Autobarn, Burson Auto Parts and Midas. It has been tipped for solid growth over the long term thanks largely to its expansion plans.

Citi is bullish on Bapcor and has a buy rating and $8.75 price target on its shares.

Healius Ltd (ASX: HLS)

Another ASX share to look at is Healius. It is one of Australia’s largest pathology and diagnostic imaging providers offering services. Thanks largely to elevated demand for COVID-19 testing, it is poised to deliver another very strong result in FY 2022. For example, during the first quarter, Healius reported a 43.7% increase in group quarterly revenue over the prior corresponding period to $689.9 million.

This went down well with the team at Macquarie. The broker has an outperform rating and $5.65 price target on its shares. It also expects a dividend yield of close to 5% in FY 2022.

Life360 Inc (ASX: 360)

Another share to look at is Life360. With its eponymous Life360 app, the company operates in the digital consumer subscription services market. It has a focus on products and services for digitally native families, where all members of the household are connected by smartphones. A whopping 33.8 million monthly active users are using its app, which is underpinning stellar recurring revenue growth. The company also has significant opportunities to monetise its user base further in the future.

Morgan Stanley is bullish on Life360. Last week it retained its overweight rating and lifted its price target to $14.20.

SEEK Limited (ASX: SEK)

This job listings company could be an ASX share to buy. SEEK was hit hard by the pandemic but bounced back very strongly in FY 2021. It delivered a 1% increase in revenue to $1,591 million and a 58% jump in net profit after tax (excluding significant items) to $141 million. Pleasingly, more of the same is expected in the coming years as the Australian economy recovers from COVID-19.

Macquarie is a fan and has an outperform rating and $37.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX share to look at is this online furniture and homewares retailer. It appears well-placed for growth over the long term thanks to the ongoing structural shift online, which is only really getting start. For example, management estimates that just 7% to 9% of category sales were made online in 2020. This is significantly lower than the US, which has ~25% of category sales online. This bodes well for Temple & Webster given its leadership position online.

Morgan Stanley currently has an overweight rating and $16.00 price target on Temple & Webster’s shares.

The post 5 fantastic ASX shares to buy right now appeared first on The Motley Fool Australia.

More reading

• 3 buy-rated ASX shares with strong growth potential
• 2 buy-rated ASX shares with growing dividends
• Why Chalice Mining, Life360, Kogan, and NAB shares are storming higher
• 2 blue chip ASX 200 shares analysts love
• Why Brainchip, Chalice, Life360, and PointsBet shares are surging higher

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Life360, Inc. and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia has recommended SEEK Limited and 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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The TPG Telecom Ltd (ASX: TPG) share price has fallen around 8% in the last month. Could it be an opportunity that’s calling out to investors to consider?

TPG is one of the largest telecommunication businesses in Australia after the merger between the old TPG and Vodafone Australia. It now operates a number of brands including Vodafone, TPG, iiNet, Internode, Lebara, AAPT and Felix.

Since listing in July 2020, the business has seen its share price decline by more than a quarter.

What do analysts think of the TPG share price?

Some analysts are pretty confident on the TPG share price.

UBS currently rates TPG as a buy, with a price target of $7.60, suggesting that the shares could rise around 20% over the next 12 months if it’s right.

The broker believes that earnings can grow in FY22 and that it could also do something with its towers.

Readers may remember that a few months ago, Telstra Corporation Ltd (ASX: TLS) announced it was selling a 49% stake of its towers business for $2.8 billion. Telstra’s towers business is the largest mobile tower infrastructure provider in Australia with approximately 8,200 towers.

Telstra sold its towers stake to a consortium comprising the Future Fund, the Commonwealth Superannuation Corporation and Sunsuper.

Morgan Stanley also thinks that the TPG share price is a buy, with a price target of $9.50. That suggests a large increase of TPG shares – an upside of approximately 50%. The broker thinks that the merger between the businesses will help over the longer-term terms.

FY21 half-year result

The TPG financial year is the 12 months to December 2021, so the latest report that investors have seen is for the six months to 30 June 2021.

TPG said that it had made strong progress on the integration and strategic priorities and that it was ahead of its 2021 5G coverage target. It’s aiming to reach 85% 5G population coverage in ten of Australia’s largest cities and regions by the end of the year, supporting growth in mobile and home wireless.

The telco’s total fixed broadband subscriber base increased to 2.2 million in the half-year. It launched 5G home wireless and tripled its 4G home wireless customer base.

TPG’s merger synergy program is on track, with $38 million of cost synergies delivered in six months.

In terms of the financial numbers, its reported revenue was $2.63 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) generated was $886 million and net profit after tax (NPAT) came to $76 million.

Management did acknowledge that it is undertaking a strategic review of its tower assets. It operates a mobile network of 5,800 rooftops and towers and owns the passive infrastructure of around 1,200 of those sites – the majority of those are in metro areas and have a high average tenancy ratio.

TPG share price valuation

Morgan Stanley has the more optimistic estimate for earnings. TPG is valued at 34x FY21’s estimated earnings and 27x FY22’s estimated earnings.

UBS thinks that TPG is going to pay a grossed-up dividend yield of 4% in FY22, suggesting a growing dividend.

The post Is the TPG (ASX:TPG) share price an opportunity calling? appeared first on The Motley Fool Australia.

More reading

• Why is the Washington H. Soul Pattinson (ASX:SOL) share price struggling in November?
• How Aussie Broadband (ASX:ABB) is just smashing it right now

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 owns shares of and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom 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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A poor start to the week ultimately led to the S&P/ASX 200 Index (ASX: XJO) recording a small decline last week. The benchmark index lost 0.2% of its value over the five days to end the period at 7,443 points.

Fortunately, not all shares dropped with the market. Here’s why these were the best performers on the ASX 200 last week:

Gold Road Resources Ltd (ASX: GOR)

The Gold Road share price was the best performer on the ASX 200 last week with a 16.7% gain. Investors were buying gold miners following a rise in the gold price in response to hawkish comments out of the US Federal Reserve. For the same reason, the shares of fellow gold miners Evolution Mining Ltd (ASX: EVN), St Barbara Ltd (ASX: SBM), Resolute Mining Limited (ASX: RSG), and Regis Resources Limited (ASX: RRL) recorded gains of over 11% last week.

Fortescue Metals Group Limited (ASX: FMG)

The Fortescue share price was the next best performing (non-gold miner) share with a 10.4% gain. Investors were buying Fortescue after the iron ore price rebounded. This appears to have been driven by favourable policies in China which analysts feel could put a floor on prices. In addition, news that its Fortescue Future Industries business has signed a jet fuel deal gave its shares a boost.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price was on form and jumped 10.3% last week. This could have been driven partly by news that the Greenland Government had passed legislation that essentially blocked Greenland Minerals Ltd (ASX: GGG) from developing a rare earths project. Management has previously stated its belief that the Kvanefjeld rare earth project has the potential to become the most significant western world producer of rare earths.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price wasn’t far behind with a gain of 9.6% over the five days. As with Fortescue, investors were buying Champion’s shares after iron ore prices rebounded. In addition, investors may believe its shares are in the bargain bin after recent declines. Macquarie certainly appears to believe that is the case. It has an outperform rating and $7.40 price target on Champion’s shares.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Brokers think the tanking Ansell (ASX:ANN) share price will rebound
• Here are the top 10 ASX shares today
• Why are ASX 200 resources shares booming again on Friday?
• Why has the Lynas (ASX:LYC) share price just hit a 9-year high?

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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Are you looking for dividend shares to buy next week? If you are, then you may want to look at the two listed below.

Here’s why these ASX dividend shares could be in the buy zone:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The first dividend share to look at is this banking giant. It recently released its full year results and reported a 72% jump in statutory profit after tax to $6,162 million and a 65% increase in cash earnings from continuing operations to $6,198 million.

This result was underpinned by a significant reduction in provisions compared to the prior corresponding period, tightly managed expenses, and profit growth in the Australian Retail and Commercial segments.

And while this level of growth is clearly not sustainable, analysts at Morgans are still expecting solid dividend growth in the coming years.

The broker is forecasting a 147 cents per share dividend in FY 2022 and a 164 cents per share dividend in FY 2023. Based on the current ANZ share price of $28.26, this will mean yields of 5.2% and 5.8%, respectively, for investors.

Morgans has an add rating and $31.00 price target on the bank’s shares.

BHP Group Ltd (ASX: BHP)

Another ASX dividend share to look at is this mining giant.

The well-documented weakness in iron ore prices has been weighing heavily on BHP’s shares in recent months. While this is disappointing for shareholders, it could be a buying opportunity for the rest of us. Particularly given strong prices of many other commodities that BHP mines.

Macquarie remains very bullish on BHP despite the iron ore price weakness. In fact, last week the broker retained its outperform rating and $52.00 price target on the Big Australian’s shares.

It still believes BHP’s shares are trading on a 19% free cash flow yield at current levels despite the iron ore price pullback. Macquarie expects this to underpin fully franked dividends of $3.76 per share in FY 2022 and $2.81 per share in FY 2023. Based on the current BHP share price of $37.70, this will mean yields of 10% and 7.5%, respectively.

The post Analysts name 2 ASX dividend shares with big fully franked yields to buy appeared first on The Motley Fool Australia.

More reading

• ANZ (ASX:ANZ) board member says banks will lose income if they don’t adapt to crypto
• Why are ASX 200 resources shares booming again on Friday?
• ASX 200 (ASX:XJO) midday update: BHP & Fortescue rise, Zip completes acquisition
• BHP (ASX:BHP) will reap US$1.35 billion from its coal asset sales. Where might the cash go?
• Fortescue (ASX:FMG) share price surges 9% to shrug off falling iron ore price

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 coming week might be a big one for the AMP Ltd (ASX: AMP) share price. The company is reportedly struggling to keep a hold of its $7 billion office fund as investors band together to vote AMP Capital out of its management position.

According to reporting by The Australian, a group of investors against AMP Capital’s management of the AMP Capital Wholesale Office Fund (AWOF) could be made up of half the fund’s register.

As The Motley Fool Australia recently reported, an independent committee is expected to table its recommendations for the fund’s management next week.

If AMP Capital loses control of AWOF, it might find itself in a weak position ahead of its demerger from AMP.

As of Friday’s close, the AMP share price is $1.17, 2.18% higher than it ended Thursday’s session. That’s also 0.8% lower than it was this time last week.

Let’s take a closer look at the battle that might soon be heating up.

The AMP share price could soon be in focus

Market watchers might want to keep their eyes peeled for news on AMP Capital next week.

AWOF’s investors are reportedly demanding that control of the fund be shifted to an entity with stronger governance, more alignment with investors’ interests, and a quality management platform.

The Australian reports that it understands local superannuation funds are leading the push against AMP Capital’s management. They might have convinced around half of the fund’s investors to vote against AMP Capital.

AMP Capital needs to receive support from 75% of the fund’s register to keep its seat at the head of AWOF’s table.

However, The Australian also reports that some investors claim most of the voting parties are still undecided.

Their decision will be between AMP Capital, GPT Group (ASX: GPT), or Mirvac Group (ASX: MGR).

GPT reportedly plans to merge the fund with its own wholesale office fund if it wins AWOF’s reins. Mirvac’s expected to run the fund as a pooled vehicle if it gains control.

Right now, the AMP share price is 24% lower than it was at the start of 2021. However, it has gained 3% over the last 30 days.

The post Why AMP (ASX:AMP) shares might be in the spotlight next week appeared first on The Motley Fool Australia.

More reading

• Can AMP (ASX:AMP) maintain control of its $7 billion office fund?
• How to get more women trading ASX shares for a living
• AMP (ASX:AMP) share price climbs despite ratings downgrade
• So far, so good for the AMP (ASX:AMP) share price in November. Here’s why
• Here are the top 10 ASX shares today

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 S&P/ASX 200 Index (ASX: XJO) fought hard on Friday but it wasn’t enough. The benchmark index lost 0.2% of its value over the five days to end the period at 7,443 points.

While a number of shares dropped with the market, some fell more than most. Here’s why these were the worst performers on the ASX 200 last week:

Nearmap Ltd (ASX: NEA)

The Nearmap share price was the worst performer on the ASX 200 last week with a 19% decline. This followed the release of the aerial imagery technology and location data company’s guidance for FY 2022 ahead of its annual general meeting. Nearmap advised that it expects annual contract value (ACV) of between $150 million and $160 million on a constant currency basis in FY 2022. This is up from $128.2 million in FY 2021 and represents growth of 17% to 24.8%. The market may have been expecting stronger growth.

Polynovo Ltd (ASX: PNV)

The PolyNovo share price was a poor performer and tumbled 14% over the period. The medical device company’s shares were sold off amid the surprise resignation of its Managing Director, Paul Brennan. According to the release, Mr Brennan’s interactions with senior staff and his management style led to increasing differences between him and the Board.

Eagers Automotive Ltd (ASX: APE)

The Eagers Automotive share price wasn’t far behind with an 11% decline. This was despite there being no news out of the auto retailer. However, with new car sales being impacted by chip shortages and lockdowns, some investors may be concerned that Eagers Automotive’s could be underperforming expectations.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price was out of form and sank 9.4% over the period. Investors were selling the biopharmaceutical company’s shares in response to a recent broker note out of Jefferies. According to the note, the broker has downgraded the company’s shares to a hold rating. Jefferies has a few concerns over the launch of a new product competing with Clinuvel’s Scenesse therapy in the treatment of EPP.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• Brokers think the tanking Ansell (ASX:ANN) share price will rebound
• Here are the top 10 ASX shares today
• Why Greenland Minerals, Liontown, Nearmap, and Pushpay shares are tumbling lower
• ASX 200 (ASX:XJO) midday update: BHP & Fortescue rise, Zip completes acquisition
• 5 things to watch on the ASX 200 on Friday

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 shares of and has recommended Nearmap Ltd. and POLYNOVO FPO. The Motley Fool Australia owns shares of and has recommended Nearmap 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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Shares in Flight Centre Travel Group Ltd (ASX: FLT) are worth holding onto, according to the travel company’s boss.

Graham ‘Skroo’ Turner recently told the Australian Financial Review‘s How I Made It the company would likely take 3 years to get back to pre-pandemic business levels. However, Turner isn’t looking to sell any time soon.

As of Friday’s close, the Flight Centre share price is trading at $20.47, 0.99% higher than it was at the end of Thursday’s session. That brings its gains for the week to 2.45%.

Let’s take a closer look at why the company’s boss is keeping his stake.

Flight Centre CEO holds shares for growth

Insider ownership is generally a good sign that management has confidence in a business, but Turner is going a step further. He said he was now holding his Flight Centre shares for growth.  

According to podcast host Julie-Anne Sprague, in August 2018 when the Flight Centre share price was at a record high, Turner’s stake in the company was worth around $900 million.

Then, in 2020, Flight Centre underwent a $700 million capital raise to ward off the effects of the pandemic.

As a result, its outstanding shares nearly doubled. Thus, Turner’s stake in the company fell to around 8% right as its share price was tumbling.

When asked if he regretted not selling some of his holdings when the Flight Centre share price hit its pre-pandemic high, Turner stated:

It’s never a good time, particularly as CEO and as a founder, to sell. The main thing is that you have the business at heart…

The other founders… and I tended to keep our shares generally because we think it’s a good long term investment. The fact is, considering the capitalisation of the company at the moment isn’t too far off $5 billion, which considering we’re still losing money, is rather extraordinary.

To return the business to its pre-pandemic profit line might take around 3 years, according to Turner. However, when COVID-19 first halted international travel, he hadn’t expected it to be that long.

Turner said prior to COVID-19, the biggest negative impact an outside influence had had on the business slowed profits for a just few months:

COVID is nothing like that…when this happened and international travel stopped out of Australia… [we] immediately had to hibernate our costs.

Our costs were around $230 million a month and we had to get that down to about $70 million a month, which is basically what we are now.

The post Flight Centre (ASX:FLT) shares a ‘good long term investment’, says CEO appeared first on The Motley Fool Australia.

More reading

• Flight Centre (ASX:FLT) share price dips as WA government plays hardball on borders
• Leading brokers name 3 ASX shares to sell today
• The Flight Centre (ASX:FLT) share price is still trading 40% below pre-COVID highs. So, what now?
• These are the 10 most shorted ASX shares
• Here’s why travel shares led the ASX 200 on Monday

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 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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A board member within the Australia and New Zealand Banking Group Ltd (ASX: ANZ) business said that banks need to adapt to cryptocurrency or will lose income and could miss out.

What was the ANZ warning?

ANZ’s New Zealand chairman John Key recently said that both retail and central banks need to take the opportunities presented by cryptocurrencies or risk being left behind.

At an event hosted by the think tank NZ Initiative he said he believes that cryptocurrencies can make the overall payments system more efficient:

I can’t tell you where Amazon and Facebook and these guys are going to end up, but what I can tell you is they could easily become part of a very globally integrated system – not only just for purchasing goods and services, but within the payments for that.

There’s a lot of money there and a huge amount of volume and I just think over time that space is going to change dramatically and banks are going to have to adapt. If they don’t adapt, their income streams are going to fall.

An unstoppable trend?

Mr Key thinks that the economic shift to cyber finance and digital currency is going to keep going, with or without the big current players.

This could have important ramifications for all of Australia’s large, listed financial institutions, not just ANZ, including Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), Macquarie Group Ltd (ASX: MQG), Bank of Queensland Limited (ASX: BOQ), Bendigo and Adelaide Bank Ltd (ASX: BEN) and Suncorp Group Ltd (ASX: SUN).

Andrew Cornell, the managing editor of ANZ’s bluenotes – a digital newsroom and blog – noted:

There’s no doubt the rules of battle will be determined by regulation and national jurisdictions but that will be to restrain illegal activity, money laundering and tax avoidance while maintaining power for national governments.

Within those constraints, regulators, supervisors and the market recognise the opportunity new technologies are bringing for new products and services and greater efficiency with existing ones.

Mr Cornell also points out that central banks, regulators and other stakeholders are now taking a greater interest in cryptocurrency and digital currency.

Reportedly, the global banking regulator, the Bank of International Settlements (BIS) has said that issuing central bank digital currencies (CBDCs) could improve the payment system, though there are still things to consider regarding the macroeconomic implications and the co-ordination of cross-border payments.

Australia’s Reserve Bank of Australia (RBA) said in its most recent annual report that it “has updated it strategic priorities for payments policy and will focus on the shift to digital payments, research CBDCs and other innovations, and understand the impact of new tech and players while identifying and resolving any competition and efficiency issues associated with new technologies and new players in the payments system.”

Impact on ANZ?

ANZ is one of the biggest financial institutions in Australia (and New Zealand). It will be interesting to see what part it plays in the shift to digital currency.

In ANZ’s FY21 result, it generated $6.2 billion of continuing operations cash profit after tax.

Net interest profit makes up a large portion of the business. But there is also the potential for the bank to gain exposure, or lose out, to cryptocurrency and digital currency.

The post ANZ (ASX:ANZ) board member says banks will lose income if they don’t adapt to crypto appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and 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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