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There are a number of ASX dividend shares that have dividend yields of more than 4%.

But, just because a business pays a dividend doesn’t automatically make it worth owning for income.

Some brokers have rated businesses with higher yields as buys, such as these two:

Nick Scali Limited (ASX: NCK)

Nick Scali is a large retailer of furniture in Australia. It has a growing network of stores in Australia and New Zealand. At the time of the FY21 result release, it had 61 showrooms across Australia and New Zealand with a long-term target of 85.

The business had a bumper year in FY21, with sales revenue growth of 42.1% and underlying net profit growth of 100% to $84.2 million.

Online was a small, but rapidly growing, contribution to the result. Online written sales orders for FY21 were $18.3 million compared to $3 million in FY20. The earnings before interest and tax (EBIT) contribution from the online channel for FY21 was $8.8 million, compared to $0.6 million in FY20.

Whilst the business recently reported that FY22 first quarter revenue was in line with the FY21 first quarter, October trading has been “buoyant”.

The ASX dividend share also recently completed the acquisition of Plush, which comes with a network of 46 showrooms across Australia. In FY21, Plush generated $160 million of revenue and $27 million of underlying earnings before interest, tax, depreciation and amortisation (EBITDA).

Citi currently rates Nick Scali as a buy, with the Plush purchase being a good deal. The broker thinks Nick Scali will pay a grossed-up dividend yield of 5.1% in FY22 and 6.3% in FY23. It has increased its dividend every year since 2013.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of Australia’s largest electronic and appliance retailers with both its JB Hi-Fi and The Good Guys businesses.

It has also increased its dividend every year since 2013.

FY21 was a bumper year for JB Hi-Fi too, with total sales rising 12.6% to $8.9 billion and net profit after tax (NPAT) rising by 67.4% to $506.1 million. The business focused on its margins over the year and benefited from improvements across the business.

In the ASX dividend share’s recent annual general meeting (AGM) presentation, it said that it is underpinned by five unique competitive advantages: scale, low cost operating model, quality store locations, supplier partnerships and multichannel sales capability.

Looking at the dividend, JB Hi-Fi said the board will continue to regularly review the group’s capital structure with a focus on maximising returns to shareholders and maintaining balance sheet strength and flexibility.

Citi rates JB Hi-Fi as a buy, with a price target of $53. The broker thought the FY22 first quarter was a decent start to the year. JB Hi-Fi Australia sales fell 7.5% in the first three months of FY21, whilst The Good Guys sales were down 5.6%.

The broker thinks households will keep spending on their homes in FY22.

Citi thinks that JB Hi-Fi will pay a grossed-up dividend yield of 6.5% in FY22 and 5.8% in FY23.

The post 2 ASX dividend shares that could be buys with yields above 4% appeared first on The Motley Fool Australia.

More reading

• These were the 5 best performing ASX retail shares in October
• 2 consumer ASX shares looking good now: expert
• Why HT&E, JB Hi-Fi, Reece, and ResMed shares are charging higher
• JB Hi-Fi (ASX:JBH) share price jumps on broker upgrade
• Why Aussie Broadband, BlueBet, Hipages, and JB Hi-Fi shares are rising

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

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With inflation persisting and Reserve Bank stimulus about to fade, it’s more important now than ever to invest in quality ASX shares.

Perhaps the biggest victim out of any rise in the cost of money will be the technology sector, as it has many growth businesses with variable future cash flow.

Fortunately, if you know where to look, there are some ASX tech shares that have rock-solid business models that could withstand worsening macroeconomic conditions.

Medallion Financial Group managing director Michael Wayne named 2 such shares this week:

Cheap ASX tech share perfectly set up for the future

Wayne rates ELMO Software Ltd (ASX: ELO) as a “very high-quality company”.

“They’ve recently had an update to the market, which has been well received and has allayed a lot of the fears out there regarding a pathway to cash-flow positivity,” he told Switzer TV Investing.

“They flagged a 78% increase in their cash receipts.”

Indeed, after losing about 29% since January, the Elmo share price has surged 20% upwards in the past month and closed on Friday at $5.25.

The sticky nature of the business, Wayne forecasts, will push further growth.

“They’re one of these businesses that has very low customer churn rates, the average recurring revenue has been growing very, very quickly over the years,” he said.

“As a customer comes on, they might use one or two of their modules, but over time as they get comfortable… they tend to bolt on more modules as time goes on.”

Elmo shares have a 52-week high of $7.44, reached way back in January.

Wayne has no qualms about the stock price returning to those heights.

“It doesn’t trade on the lofty multiples of many other tech companies, and I think the recent good news could be the impetus to push it back towards that $7, $8 mark — with potential upside from there.”

No one is using less data these days

Network-as-a-service provider Megaport Ltd (ASX: MP1) has already had a great run this year, with its shares pushing almost 39% higher.

“It allows companies to pay-as-they-go in terms of capacity use,” he said.

“When they need a lot of bandwidth or a lot of internet, they can go to Megaport. When they don’t need as much, they can then pull away from that service.”

Wayne recommended his clients buy it back when it was in the low $3s. At Friday’s close, Megaport shares were going for $19.70.

Despite the spectacular rise, he still can’t resist the insatiable demand for its services.

“It’s a very good business, and had a very good update recently as well. They’re now on track to reach that $100 million recurring revenue mark,” said Wayne.

“We’re using more and more data these days and this is one of those businesses that should benefit from that.”

The post 2 quality ASX tech shares ripe for the picking appeared first on The Motley Fool Australia.

More reading

• Megaport (ASX:MP1) share price outperforms All Tech Index by 14% over the past month
• 2 quality ASX shares to research this weekend
• Why ASX 200 tech shares are leading the charge higher today
• 3 exciting ASX growth shares analysts love
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor Tony Yoo owns shares of Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Elmo Software and MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The REA Group Limited (ASX: REA) share price stormed to a record high on Friday following the release of its first quarter update.

The online property listings company’s shares jumped 8% to $180.67 before ending the period at $176.81.

This means the REA share price is now up just under 15% since the start of the year.

Can the REA share price keep rising?

The good news is that one leading broker still sees value in the REA share price at the current level.

According to a note out of Goldman Sachs, its analysts have retained their buy rating and lifted their price target on the company’s shares by 2% to $193.00.

Based on the current REA share price, this implies potential upside of 9.2% for investors over the next 12 months.

What did the broker say?

Goldman was pleased with REA’s “strong” first quarter result. It notes that price increases and stronger than expected depth advertising uptake were highlights during the period.

In response, the broker has lifted its earnings estimates for the company and the target on the REA share price accordingly.

Goldman commented: “The strong REA result was driven by momentum in residential listings (+11%), the impact of July price rises (c.8%), and better than expected benefits from depth uptake and adjacent services (i.e. Audience maximiser). REA broke out full-year core operating cost guidance for high single digits (Excl. India/MOC), with domestic costs offsetting savings from PropertyGuru/99 Group changes, while it signaled a reduction in associate contributions due to Move reinvestment and recent acquisitions.”

“Overall we revise higher our FY22 listing assumptions (+2% vs. -3% prior) but continue to expect declines in 2H22 (+7%/-3% in 1H/2H22 given the Fed election & tough comparable in 4Q21). Combined with higher yield growth & domestic opex assumptions, our FY22-24 core Australia EBITDA is +1% to +5%. When including the higher associate contributions our REA FY22-24 EPS +1% to +4% and our 12m SOTP-based TP increases +2% to A$193,” the broker added.

The post Top broker gives its verdict on the REA (ASX:REA) share price appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why Jumbo, Link, News Corp, and REA shares are storming higher
• ASX 200 (ASX:XJO) midday update: REA and News Corp impress, Link receives takeover offer
• REA Group (ASX:REA) share price on watch after delivering strong Q1 growth
• 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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA 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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On Friday the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive disappointing note. The benchmark index rose 0.4% to 7,456.9 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to have a positive start to the week. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% higher this morning.  This follows a solid end to the week on Wall Street, which saw the Dow Jones rise 0.55%, the S&P 500 climb 0.4%, and the Nasdaq push 0.2% higher.

ANZ goes ex-dividend

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is likely to drop today when it trades ex-dividend for its final dividend for FY 2021. Last month the banking giant declared a fully franked final dividend of 72 cents per share, bringing its full year dividend to 142 cents per share. Eligible shareholders can look forward to receiving this latest dividend on 16 December. Macquarie Group Ltd (ASX: MQG) shares are also trading ex-dividend today.

Oil prices jump

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a strong start to the week after oil prices jumped on Friday night. According to Bloomberg, the WTI crude oil price is up 3.1% to US$81.27 a barrel and the Brent crude oil price has risen 2.7% to US$82.74 a barrel. Oil prices rose after OPEC rejected the U.S. request to boost its output.

Gold price rises

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could start the week on a positive note after the gold price rose on Friday night. According to CNBC, the spot gold price climbed 1.3% to US$1,816.80 an ounce. The gold price hit a two-month high after dovish central banks comments regarding interest rates.

REA shares named as buys

The REA Group Limited (ASX: REA) share price could be good value according to analysts at Goldman Sachs. In response to a strong first quarter result, the broker has reiterated its buy rating and lifted its price target to $193.00. This compares to the current REA share price of $176.81.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• These were the best performing ASX 200 shares last week
• Could ANZ be the next ASX bank to jump on the crypto bandwagon?
• These were the worst performing ASX 200 shares last week
• Santos (ASX:STO) slips amid CSIRO carbon capture partnership

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 Macquarie Group Limited. The Motley Fool Australia has recommended REA 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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If you’re a growth investor looking for some investment ideas for November, then the shares listed below could be worth considering.

Here’s what you need to know about these growth shares:

Appen Ltd (ASX: APX)

The first ASX growth share to look at is Appen. It is a leading developer of high-quality, human annotated datasets for machine learning and artificial intelligence (AI).

Through its team of over a million skilled contractors, Appen prepares or creates the data for the machine learning models of some of the largest tech companies. These include Amazon, Facebook, and Microsoft.

While COVID-19 has put a dampener on demand, a rebound is expected post-pandemic. So with the Appen share price down significantly from its highs, now could be an opportune time to consider an investment.

The team at Citi appear to believe this is the case. The broker currently has a buy rating and $17.10 price target on its shares. This is notably higher than where the Appen share price currently trades today.

Temple & Webster Group Ltd (ASX: TPW)

Another quality growth share to consider is Temple & Webster. Australia’s leading online furniture and homewares retailer could be a growth share to buy due to its strong long term potential.

In FY 2021, the company reported an 85% increase in revenue to $326.3 million and a 62% year on year increase in customer numbers to 778,000. It then followed this up with a 56% increase in revenue during July 1 to 15 October.

Pleasingly, with online furniture shopping still in its infancy in comparison to other categories and Western markets, Temple & Webster looks well-positioned to grow its revenue materially over the 2020s. Particularly given management’s investment in sales and marketing to cement its leadership position.

The team at Morgan Stanley is very positive on the company’s outlook. The broker currently has an overweight rating and $16.00 price target on its shares.

The post These ASX shares could be quality options for growth investors appeared first on The Motley Fool Australia.

More reading

• 10 top ASX shares to buy in November
• 3 outstanding ASX growth shares to buy now
• Is the Appen (ASX:APX) share price a serious bargain?
• Move over Appen: A new artificial intelligence stock to list on the ASX
• Analysts name 2 excellent ASX growth shares to buy

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 Appen Ltd and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Appen 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 a number of ASX growth shares that may be able to achieve long-term growth.

Businesses that are growing profit might be able to achieve returns for shareholders as well as potentially paying a dividend.

These are two businesses that might be worth watching:

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel Management is one of the largest corporate travel businesses in the world, particularly after its acquisition of Travel & Transport in the US.

It’s currently rated as a buy by the broker Morgans, with a price target of $27.36, which suggests the Corporate Travel Management share price could increase by around 10% over the next 12 months. It was noted that the ASX travel share has already returned to profitability, with more borders opening all the time.

The broker has estimated that Corporate Travel shares are valued at 26x FY23’s estimated earnings.

In the fourth quarter of FY21, the business said that it saw a rapid recovery, led by North American and the EU. In the first half of FY21, it saw total transaction value (TTV) of $403.8 million and an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) loss $15.3 million. The fourth quarter of FY21 saw $821.5 million of TTV and positive underlying EBITDA of $13.6 million.

The ASX growth share recently held its annual general meeting (AGM) and said that its FY22 first half continues to be profitable, with profit across North America, Europe and ANZ. The FY22 first quarter saw underlying EBITDA of $11 million, up from a loss of $7 million a year ago.

Corporate Travel says that its proposition of expert service is more relevant in this COVID recovery environment. It’s continuing to achieve market share gains through “enhanced global reputation in this environment”.

Its largest regions – North America and Europe – continue to recover the fastest and it’s assessing more acquisition opportunities.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is a leading e-commerce business in the beauty and wellness space online, selling many thousands of products.

Whilst the broker Morgan Stanley is expecting growth to slow due to the end of lockdowns, it still rates it as a buy with a price target of $6. It’s expecting good double digit growth of revenue over FY22.

The broker referred to Adore Beauty’s recent FY22 first quarter update.

In the first quarter, Adore Beauty achieved revenue growth of 25% to $63.8 million. Active customers increased to 874,000 – up 24%. The ASX growth share boasted of strong customer retention, with returning customer growth of 63% year on year.

Adore Beauty says that it’s well funded with no debt, providing flexibility to continue growing the business.

Management believe the company is executing strongly on strategic initiatives, by scaling its mobile app, building owned marketing channels and community and expanding its loyalty program.

Adore Beauty CEO Tennealle O’Shannessy said:

We continue to leverage our content strategy to drive brand awareness and discovery, and we are re-investing in the business to accelerate our growth trajectory within a large and growing $11 billion market.

The post 2 top ASX growth shares that might be worth buying appeared first on The Motley Fool Australia.

More reading

• 10 top ASX shares to buy in November
• Why is the Webjet (ASX:WEB) share price underperforming Corporate Travel lately?
• Top ASX shares to buy in November 2021
• 2 leading ASX e-commerce shares that could be buys in November 2021
• 3 explosive ASX tech shares to buy in November

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 recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended Adore Beauty 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target on this banking giant’s shares to $31.00.  This follows the release of full year result that revealed a better than expected cash profit and dividend in FY 2021. One slight disappointment was a contraction in home loan lending. And while the broker suspects that the market may have doubts regarding ANZ’s cost reduction plans, its analysts believe the bank can sustainably meet its target. The ANZ share price ended the week at $28.80.

Macquarie Group Ltd (ASX: MQG)

A note out of Citi reveals that its analysts have upgraded this investment bank’s shares to a buy rating with an improved price target of $226.00. The broker was pleased with Macquarie’s performance during the first half and is expecting more of the same in the second half. This is due partly to Citi’s belief that Macquarie is well-placed to benefit from the current energy crisis. The Macquarie share price was fetching $202.42 at Friday’s close.

Rio Tinto Limited (ASX: RIO)

Analysts at Credit Suisse have retained their outperform rating but trimmed their price target on this mining giant’s shares to $106.00. According to the note, the broker believes the recent weakness in the Rio Tinto share price is a buying opportunity. Credit Suisse feels its current share price implies a much weaker than likely iron ore price. In addition, its analysts believe the outlook for iron ore is more positive beyond 2022. The Rio Tinto share price ended the week at $88.81.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Could ANZ be the next ASX bank to jump on the crypto bandwagon?
• Evergrande latest, plus another Chinese developer just missed a payment
• Why did the Rio Tinto (ASX:RIO) share price go backwards in October?
• Why did the Macquarie (ASX:MQG) share price have such a great month in October?
• Macquarie tips ANZ (ASX:ANZ) share price to hit $29.50. Here’s why

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 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Boral Limited (ASX: BLD)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and cut the price target on this building materials company’s shares to $6.10. This follows the release of a trading update. While the broker notes that Boral isn’t expecting as negative an impact from lockdowns as previously forecast, it still expects the company to report a significant earnings decline during the first half. In light of this, Morgan Stanley isn’t in a rush to change its rating. The Boral share price ended the week at $6.63.

Coles Group Ltd (ASX: COL)

A note out of UBS reveals that its analysts have retained their sell rating and $16.50 price target on this supermarket giant’s shares. While UBS acknowledges that Coles delivered a better than expected first quarter sales update, it isn’t enough for a change of rating. UBS is bearish on Coles due to its belief that the sales outlook in the sector is deteriorating. The Coles share price was fetching $17.80 on Tuesday.

Fortescue Metals Group Limited (ASX: FMG)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $12.50 price target on this mining giant’s shares. This follows the release of Fortescue’s first quarter update. Morgan Stanley notes that the company’s revenue realisation of 73% was short of its expectations. Looking ahead, the broker doesn’t appear to believe that things will get any better and continues to have concerns over the outlook for low grade iron ore prices. The Fortescue share price ended the week at $14.27.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

More reading

• Evergrande latest, plus another Chinese developer just missed a payment
• Christmas is coming, but is the Coles (ASX:COL) share price already overstuffed?
• 2 top ASX 200 shares that might be buys today
• Why did the Fortescue (ASX:FMG) share price have such a lousy month in October?
• Why is the Fortescue (ASX:FMG) share price charging higher today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. 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 might be some really great ASX shares to consider for their growth potential over the long-term.

Some businesses are growing quickly now but have much larger plans for the future.

There are companies tapping into trends whilst others are managing to change industries with technology.

Here are two that are growing quickly with even more compelling potential::

Australian Ethical Investment Limited (ASX: AEF)

The Australian Ethical share price has nearly doubled in just four months.

This business aims to provide investment products to investors that match their ethics.

It continues to experience a high level of demand. In the first quarter of FY22 alone, it saw net inflows of $290 million. This helped the funds under management (FUM) grow 7.7% over the three months.

FY21 saw the underlying net profit after tax (UPAT) rise by 19% to $11.1 million, with FUM going up 50% to $6.07 billion.

However, the ASX share believes with its market positioning and investment for growth, if it executes well it thinks it can grow its business by three to five times over the next few years.

Australian Ethical continues to launch new products and funds that can attract more funds. It has launched its high conviction fund, as well as its high growth fund. The business is now working on launching a high conviction exchange-traded fund (ETF).

It’s investing in multiple areas including upgrading its technology platform, expanding its adviser-facing team and exploring different customer channels.

The company is focused on the ultra-long-term, with an eye not just on the next five years but to 2030, 2040 and beyond.

Airtasker Ltd (ASX: ART)

Airtasker is now an international marketplace business that links people who want to work with people that need work doing.

The ASX share is setting the scene for growth in the UK and US. It’s already growing rapidly in the UK – in the first quarter of FY22 it saw UK gross marketplace volume (GMV) increase by more than 100%, though this was from a low number.

In the US, expansion and the Zaarly integration is “progressing well”, with city-level markets launching in Dallas, Kanas City and Miami.

Despite the lockdowns, Airtasker was able to grow its overall GMV by 6.2% year on year to $35 million. Since the easing of restrictions in Sydney and Melbourne, it experienced a “sharp” bounce back with the latest weekly GMV of $3.6 million, which was $185 million on an annualised run rate basis. The business noted it’s heading into its strongest southern hemisphere seasonal growth period.

Airtasker has one of the highest gross profit margins on the ASX, with a margin of 93%. This could be very helpful for future profit growth.

The ASX share said with its FY21 result that with positive operating cashflow ($5.5 million compared to the prospectus forecast of $0.1 million) and a “strong” cash balance, it’s well positioned to invest in international expansion.

By the end of FY22, the business is targeting an annualised run rate of international GMV to be between $8 million to $10 million. That compares to around $3 million in FY21.

Airtasker believes that it has an enormous global opportunity, with more than $600 billion of a global total addressable market for existing local service industries in Australia, the US and the UK. Australia reportedly represents a $52 billion opportunity.

The post 2 great ASX shares to think about appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Top ASX shares to buy in November 2021
• Why is the Airtasker (ASX:ART) share price falling on Friday?
• The Australian Ethical (ASX:AEF) share price just hit a new all-time high
• Here’s why the Airtasker (ASX:ART) share price could be a buy

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 shares of and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has recommended Australian Ethical Investment 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 CSL Limited (ASX: CSL) share price was on form again last week.

The biotherapeutics giant’s shares outperformed the market and rose 3% to end the period at $314.48.

This is the highest level the CSL share price has closed at in 2021.

Is the CSL share price on a roll?

The CSL share price certainly appears to be on a roll. This latest gain means its shares are now up 10% since this time last month. They are also up an impressive 30% since hitting a 52-week low of $242.00 in March.

The good news is that one leading broker still believes the company’s shares could rise a touch further from here.

A recent note out of Morgans reveals that its analysts have an add rating and $324.40 price target on its shares.

Why is the broker positive on CSL?

While Morgans acknowledges that FY 2022 will not be an easy year and CSL is likely to report a decline in its earnings, the broker believes the headwinds the company is facing are short term and not structural.

It commented: “FY22 guidance is targeting cc NPAT between US$2,150-2,250bn (-9% to -5%) on revenue growth between 2-5%, with management flagging a “transitional year”, core plasma products “robust”, but margins contracting on increased costs, and Seqirus strength ongoing.”

“Our FY22-24 earnings forecasts decrease up to 6.3%, mainly on lowered GM (350bp) and increased operating expenditures across the Behring division,” it added.

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

The post The CSL (ASX:CSL) share price is now well above $300. Is it on a roll? appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated blue chip ASX shares to boost your portfolio
• What happened to the CSL (ASX:CSL) share price in October?
• Own biotech shares? These were the best performers during October
• CSL (ASX:CSL) share price lifts 2% amid US border patrol battle
• Own CSL shares? Here’s how the company actually makes money

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 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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