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There are a group of ASX shares that may be options to look at because of their current valuations, according to brokers.

Businesses that are well-liked by multiple brokers could be an opportunity staring investors in the face. But it could also mean that all of those brokers are wrong at the same time.

Multiple analysts have said the below two businesses are ones that could be opportunities:

Credit Corp Group Limited (ASX: CCP)

Credit Corp is a large debt collector that’s operating in both Australia and the USA. It also has a lending division in Australia and New Zealand.

The business is currently rated as a buy by at least three different brokers, including Morgans which has a price target on the business of $33.75.

In FY21, Credit Corp saw a near-record investment outlay driven by the purchased debt ledger (PDL) acquisition from Collection House Limited (ASX: CLH) and a return to lending, despite a COVID-induced temporary reduction in PDL supply.

The ASX share said that FY22 started off well, with a record July contracted purchasing pipeline. The month on month charge-off volumes were also starting to grow.

Overall, the FY21 profit was driven by the US performance. Total revenue fell 1%, but ANZ debt buying profit increased 11% to $54.1 million and US debt buying profit more than doubled to $17.7 million. That helped total profit grow 11% to $88.1 million.

In FY22, Credit Corp is expecting to generate net profit after tax of between $85 million to $95 million, with PDL acquisitions of between $200 million to $240 million.

Based on Morgans’ numbers, the Credit Corp share price is valued at 22x FY22’s estimated earnings.

FINEOS Corp Holdings PLC (ASX: FCL)

FINEOS describes itself as a global company providing software to the employee benefits, life, accident and health industry. It offers clients purpose-built products. One of its offerings is called AdminSuite which takes care of new business, billing, claims, absence and policy administration, which enables “improved operational efficiency, increased effectiveness and excellent customer care.”

It’s currently rated as a buy by at least three brokers, including Citi, which has a price target on the ASX tech share of $5.22. After a recent capital raising, Citi thinks the company is well funded to put some of the capital to work in its current business, as well as trying to find other potential businesses to buy.

In FY21, FINEOS generated €108.3 million of revenue, up 23.3%. It also saw 23% of gross profit growth to €72 million.

In FY22, the ASX share is expecting revenue to be in the range of €125 million to €130 million, with subscription revenue anticipated to grow by around 30%. It’s expecting to be successful with its pipeline of cross-selling and up-selling opportunities with existing clients and new wins.

At the time of the capital raising, FINEOS CEO Michael Kelly said:

Following a strong FY21 result, FINEOS continues to execute on its strategic priorities and invest in further product development and recent acquisition integrations. Our growth expectations for FY22 are underpinned by a pipeline of cross-sell and up-sell opportunities with existing clients in addition to new name opportunities. The equity raising ensures FINEOS has the balance sheet strength and financial flexibility to aggressively pursue those opportunities and accelerate growth.

The post These 2 ASX shares could be good opportunities appeared first on The Motley Fool Australia.

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• Australian Clinical Labs (ASX:ACL) share price on watch following profit upgrade

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 FINEOS Corporation Holdings plc. The Motley Fool Australia has recommended FINEOS Corporation Holdings plc. 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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ASX growth shares may have the potential to deliver good returns over the coming years because of how quickly the underlying business is expanding.

It’s possible that some businesses can be overpriced for the growth that they are expected to create, so investors shouldn’t pay any price for a company.

A few of those possible business ideas could have a lot of growth potential for the long-term and are still priced attractively.

These are two to consider:

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is an ASX e-commerce growth share. It operates a beauty website that sells a broad and diverse portfolio of approximately 10,800 products from 260 brands.

The business generated a lot of growth in FY21, with revenue increasing 48% to $179.3 million, gross profit growing 54% to $59.3 million and earnings before interest, tax, depreciation and amortisation (EBITDA) going up 53% to $7.6 million.

Management point to a number of customer-focused statistics that show the business’ progress. In FY21, it increased its number of active customers by 39% to 818,000. Returning customer growth was 64% year on year. Annual revenue per active customer increased 7% to $219, driven by customer retention and increasing average order value. Adore Beauty also noted it has “best in class” levels of customer satisfaction with a Google Review rating of 4.9 out of 5. These customers are profitable within the first year.

Adore Beauty believes that its continued strong returning customer rates and growth in new customers provides strong momentum to drive continued growth in FY22 and beyond. The ASX growth share said it’s well positioned to capture market share in its large and growing market, whilst benefiting from structural tailwinds.

It’s going to invest heavily in the shorter-term to continue its growth and then benefit from scale benefits in the future. The start of FY22 revenue saw an increase of 26% year on year.

The broker Morgan Stanley currently rates Adore Beauty as a buy, with a price target of $6. It believes it can generate strong growth in the coming years.

Temple & Webster Group Ltd (ASX: TPW)

This ASX growth share is another e-commerce business that is rapidly growing and plans for a lot more.

Temple & Webster has over 200,000 products for sale from hundreds from suppliers. It operates with a drop-shipping model where products are sent directly to customers by suppliers, which helps with faster delivery times and reduces the need to hold inventory, allowing for a larger product range. It’s a capital light model. Indeed, the working capital model is negative, with 74% of sales having no inventory risk.

The company also has private label range which is sourced by Temple & Webster from overseas suppliers. Private label sales increased from 19% of sales in FY20 to 26% in FY21. This comes with improved margins.

Management point to the fact that it’s already profitable and it has a large addressable market (worth $16 billion overall, including both online and offline). There is an accelerating rate of online adoption. In FY21, revenue rose 85% to $326.3 million and EBITDA soared 141% to $20.5 million. The balance sheet is debt free and it had $97.5 million of cash at the end of the 2021 financial year.

The ASX growth share is investing in a number of areas to improve the customer experience. For example, it is merging the online and offline experience through augmented reality. This is where Temple & Webster makes it possible to see a product in a shopper’s room. Management believe that removing barriers in the online shopping journey which will drive conversion and customer engagement.

In FY22 to 27 August 2021, revenue increased by 49% year on year. Temple & Webster is going to continue to invest heavily to grow its market position with an eventual goal of becoming the largest retailer for furniture and homewares in its home market.

The post 2 top ASX growth shares that might be worth buying 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. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. 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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The AMP Ltd (ASX: AMP) share price is in a rich vein of form right now. Shares in the Aussie wealth manager have climbed 5.91% higher in the last week to 98.5 cents per share.

That’s still a long way shy of the group’s 52-week high of $1.77 per share, but it’s a start. After all, the financials group recently endured 9 straight trading days without climbing higher.

Things may have turned a corner, in the short term at least, if the last week is anything to go by. So, what’s been driving the embattled wealth group’s valuation higher in recent days?

Why the AMP share price has been climbing

Interestingly, there have been no new announcements from the Aussie wealth manager in recent days. That hasn’t stopped investors snapping up AMP shares just above the group’s 52-week low.

The past week also coincides nicely with the market panic over Evergrande Group. Markets were smashed on Monday last week as investors feared a broad market collapse. However, things have been looking up since then.

The S&P/ASX 200 Index (ASX: XJO) has added 1.9% in the past 5 days and closed at 7,384.2 points on Monday. AMP has been outperforming the broad market index with its almost 6% gains over the same period.

AMP has certainly made progress in recent months. The embattled wealth manager delivered strong investment earnings in the first half of 2021 while the group’s remediation program has now wrapped up.

There was also the 57% jump in net profit after tax to $181 million during the group’s August half-year results with Australian wealth management assets under management climbing 8% to $121 billion.

The AMP board declined to pay an interim dividend and the AMP share price has been languishing in recent weeks. However, shares in the wealth manager are showing signs of positive momentum after climbing higher over the past week.

The post The AMP share price is up 6% in a week, here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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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Investors will be keeping a keen eye on the Australian Clinical Labs Ltd (ASX: ACL) share price today.

The extra attention comes after the company released a promising announcement earlier this morning.

Let’s take a look at why the Australian Clinical Labs share price is under focus.

Profit upgrade powers Australian Clinical Labs share price

Shares in Australian Clinical Labs are poised to fly today after announcing a profit upgrade.

Earlier today, the healthcare company announced an upgrade to its expectations for the first half of  FY22.

Based on trading to date in FY22, Australian Clinical Labs upgraded its total revenue and net profit after tax (NPAT) forecasts.

For the first half of FY22, the company now expects to deliver;

• Total revenue of between $398.1 million and $414.0 million, representing between 29.5% and 34.7% upgrade to prospectus forecast of $307.4 million.
• NPAT of between $63.7 and $70.0 million, representing between 177.9% and 205.6% upgrade to prospectus forecast of $22.9 million.

Australian Clinical Labs noted that the continued strong demand for COVID-19 testing and the resilience of the rest of its business fuelled the upgrade.

The company noted that the new forecasts for the first half reflect continued expansion in its margins.

In addition, Australian Clinical Labs acknowledged that a reduction in COVID-19 testing in October was also assumed in the new forecasts.

More on Australian Clinical Labs

Australian Clinical Labs initially outlined its forecasts earlier this year in its full-year report for FY21.

The company’s report was headlined by a 4.2% increase in revenue of $674 million.

Other highlights from Australian Clinical Labs for FY21 included;

• Earnings before interest, tax, depreciation and amortisation (EBITDA) came in 11% ahead of forecasts at $270 million and grew 98.4% year on year.
• Net profit after tax (NPAT) of $88.7 million which was 19.2% in front of the prospectus forecast, and 6% ahead of (previously) upgraded guidance. This is also a 659% year on year increase.
• Decreased net debt from $93.3 million to $64.1 million
• Cash EBITDA to operating cash flow conversion of 101.4%, with “pro forma cash flow” of $97.2 million.

Australian Clinical Labs advised that its FY21 non-COVID revenue growth was 6.3% higher than the year prior.

In addition, the company noted that non-COVID sales growth had begun to normalise.

Snapshot of the Australian Clinical Labs share price

Australian Clinical Labs completed its initial public offering (IPO) on the ASX on 14 May 2021.

Since listing, shares in the company have soared more than 36%.

At the time of writing, the Australian Clinical Labs share price is poised to open more the 4% higher after closing yesterday’s session at $4.69.

The post Australian Clinical Labs (ASX:ACL) share price on watch following profit upgrade appeared first on The Motley Fool Australia.

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Motley Fool contributor Nikhil Gangaram 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 Australian Clinical Labs 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 Corporate Travel Management Ltd (ASX: CTD) share price seems an unlikely candidate to hit a new 52-week high this week. Shares in the Aussie travel group closed 3.1% higher on Monday at $24.44 per share after hitting new heights throughout the day.

That’s despite ongoing COVID-19 restrictions across Victoria and New South Wales. So, how can shares in an Aussie travel agency be surging despite widespread lockdowns and an almost complete lack of travel?

What’s happening with the Corporate Travel share price?

The key here is to understand that markets are inherently forward-looking. For instance, the Corporate Travel share price fell 75% in the space of two months in the 2020 bear market.

That’s not to say that Corporate Travel was immediately impacted to that extent. For instance, as limited domestic travel returned in 2020, Corporate Travel shares climbed but not with the same immediacy.

However, investors were pricing in the impacts of COVID-19 on future cash flows. This means that while the two most populous states remain in lockdown, the Corporate Travel share price can still keep climbing.

The big news on Monday was the release of the full opening-up roadmap for New South Wales. Premier Gladys Berejiklian is eyeing 1 December to re-open the state and boost travel.

That’s good news for Corporate Travel and its near-term prospects. The Corporate Travel share price jumped higher as a result and hit a new 52-week high – all while much of Australia remains in strict lockdown.

Corporate Travel wasn’t only the ASX travel share to see strong gains in Monday’s session. Qantas Airways Ltd (ASX: QAN) shares hit a new 52-week high and closed 2.8% higher while Webjet Limited (ASX: WEB) finished the day up 5.2% – just shy of its own annual high.

Investors will be hoping for a strong rebound as Australia looks to re-open for the Christmas/New Year period.

The post How the Corporate Travel (ASX:CTD) share price hit a 52-week high despite COVID-19 appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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 Corporate Travel Management Limited and 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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If you’re looking to add some blue chip ASX 200 shares to your portfolio, you may want to look at the three listed below.

Here’s why these blue chips are highly rated right now:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of in-demand properties. These properties have exposure to key growth markets such as ecommerce and logistics.

Thanks to strong demand and a material development pipeline, Goodman has been tipped to continue its solid growth in the coming years by the team at Citi. So much so, the broker currently has a buy rating and $26.00 price target on the company’s shares.

SEEK Limited (ASX: SEK)

Another blue chip ASX 200 share to look at is this leading job listings company. Thanks to its leadership position in the ANZ market and a rebound in listing volumes, SEEK delivered a strong result in FY 2021. The company reported a 1% increase in revenue to $1,591 million and a 58% jump in net profit after tax excluding significant items to $141 million.

Analysts at Macquarie expect job ad volumes to continue to increase as Australia’s unemployment levels fall and for SEEK to benefit. As a result, the broker has an outperform rating and $37.00 price target on SEEK’s shares.

Sonic Healthcare Limited (ASX: SHL)

A final blue chip ASX 200 share to consider is Sonic. It is one of the world’s leading healthcare providers, with operations in Australasia, Europe and North America. While all of Sonic’s businesses are strong, the standout at the moment is its COVID testing business. This has been generating significant revenue and profits and looks set to continue doing so in the near term even with vaccines rolling out.

It is largely for this reason that the team at Morgans are so positive on Sonic. The broker currently has an add rating and $45.98 price target on the company’s shares.

The post 3 blue chip ASX 200 shares to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of SEEK Limited. 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 SEEK Limited and Sonic Healthcare 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 PointsBet Holdings Ltd (ASX: PBH) share price has been a positive performer in recent trading sessions.

So much so, since this time last week, the sports betting company’s shares have risen 10%.

Why is the PointsBet share price rising?

There appears to have been a couple of catalysts for the recent rise in the PointsBet share price.

One was M&A activity in the industry and the other was a bullish broker note out of Goldman Sachs.

In respect to the former, last week DraftKings made a US$20 billion offer to acquire UK based online betting company Entain. It is the company behind a range of brands including BetMGM, bwin, and Ladbrokes.

The multiples involved in the transaction appear to help justify the premium the PointsBet share price trades at.

What about the broker note?

Also giving the PointsBet share price a lift was a broker note out of Goldman Sachs.

That note reveals that the broker has a buy rating and $14.75 price target on the company’s shares.

Based on the current PointsBet share price of $10.18, this implies potential upside of 45% over the next 12 months.

Why is Goldman bullish?

Goldman believes PointsBet’s shares aren’t fully reflecting a potentially transformational 12 to 18 months ahead.

The broker explained: “We continue to see it as well-placed domestically noting it saw a record monthly performance in July 2021, the spring racing carnival and AFL/NRL grand finals should drive 1Q, and recent app DL data suggesting its share domestically continues to outpace its market share. Beyond this, the US remains the key attraction in our investment case, and we are of the view that there are asymmetric risks ahead, with the current share price not fully reflecting what we expect to be a transformational 12-18months ahead for the company as they aim to triple their operational footprint by CY22.”

Overall, this could make it worth considering the growing sports betting company even after its strong recent gains.

The post Why the PointsBet (ASX:PBH) share price has jumped 10% in a week appeared first on The Motley Fool Australia.

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

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Infrastructure ASX shares could be a compelling place to find businesses with potentially reliable cashflows and consistent distributions.

Some investments have exposure to long-term tailwinds like energy transition or population growth.

The below two ideas could be ones to consider as leading ASX infrastructure shares:

Magellan Infrastructure Fund (Currency Hedged) (ASX: MICH)

This is a fund that aims to deliver the stable returns offered by the infrastructure asset class, while protecting returns from currency movements.

It has a global portfolio of 20 to 40 infrastructure stocks. Some of the names in the portfolio include Transurban Group (ASX: TCL), Atmos Energy, Excel Energy, Crown Castle, Eversource Energy, Aena, American Tower, Enbridge, Vinci and Sempra Energy.

Looking at the portfolio by the sector exposure, there isn’t a large allocation to any particular segment. At the end of July 2021, these were the following weightings: airports (8%), communications (10%), roll roads (14%), rail (8%), energy infrastructure (7%), gas utilities (7%), transmission and distribution (17%), integrated power (18%) and water utilities (7%). The rest of the portfolio is a 4% cash holding.

The infrastructure ASX share defines infrastructure as monopoly-like assets that face reliable demand and enjoy predictable cashflows.

This investment pays out a distribution semi-annually. Over the last three years, Magellan Infrastructure Fund’s total returns have outperformed the global infrastructure benchmark by an average of 2.4% per annum, after fees.

It comes with an annual management fee of 1.05% per year.

APA Group (ASX: APA)

APA is a large energy infrastructure ASX share. Its key asset is a large, national gas pipeline that spans more than 15,000km. It supplies half of Australia’s natural gas usage.

But it has other assets as well, including gas storage facilities, gas processing plants, gas energy generation and renewable energy (wind, solar and batteries).

The business is always on the lookout for opportunities to invest into more assets which aim to increase its overall cashflow generation. It’s the annual cashflow generation that funds the payment of the distribution to shareholders.

It has a ‘growth pipeline’ of $1.3 billion over the next three years. The business is expecting to pay a distribution of 53 cents per security in FY22, which currently translates to a distribution yield of 7.3% at the current share price.

It’s currently in a takeover battle to try to buy Ausnet Services Ltd (ASX: AST). AusNet is one of the largest electricity network operators in Australia, with $11.2 billion of a regulated and contracted asset base, as well as $1.9 billion of annual revenue. It services over 1.5 million customers and has 60,850km of transmission and distribution lines across Victoria, as well as 12,400km of gas networks.

APA is attracted to a few different things about Ausnet. APA likes the predictable earnings and cashflows that it offers, with 94% of FY21 earnings before interest, tax, depreciation and amortisation (EBITDA) coming from regulated businesses. The infrastructure ASX share also points to an attractive organic growth pipeline, with $2.2 billion of total Victorian regulated capital investment to 2027.

If APA is successful with the bid, it would change APA’s EBITDA generation. APA generated 89% of EBITDA from gas in FY21. The new split would be 58% from gas, 20% from electricity distribution, 13% from electricity transmission and 9% from power generation, contracted electricity and others.

In summary, APA likes the potential AusNet investment for its potential to unlock long-term growth opportunities in the Australian energy transition.

The post 2 leading infrastructure ASX shares to consider 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 APA Group. The Motley Fool Australia has recommended Magellan Infrastructure Fund. 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 low interest rates still at ultra low levels, it remains a difficult period for income investors.

The good news is there are plenty of ASX dividend shares that can help you overcome low rates. Two to look at are listed below:

Mineral Resources Limited (ASX: MIN)

If you don’t mind investing in the resources sector, then Mineral Resources could be a dividend share to look at.

Mineral Resources gives investors exposure to iron ore and lithium through its operations in the Pilbara and Goldfields regions of Western Australia.

The team at Citi are very positive on the company and appear to believe the recent pullback in its share price is a buying opportunity. Earlier this month the broker upgraded its shares to a buy rating with a $65.00 price target.

In addition, the broker is forecasting a $3.37 per share fully franked dividend in FY 2022. Based on the latest Mineral Resources share price of $47.64, this will mean a very attractive 7% yield.

Super Retail Group Ltd (ASX: SUL)

A second ASX dividend share to consider is Super Retail. It is the retail conglomerate behind four leading store brands – BCF, Macpac, Rebel, and Super Cheap Auto.

These businesses were all on form in FY 2021, underpinning strong sales growth and even stronger profit growth. For the 12 months ended 30 June, Super Retail reported a 22% increase in sales to $3.45 billion and a 107% jump in normalised net profit after tax to $306.8 million.

And while the company is unlikely to top this in FY 2022 as tailwinds ease, that doesn’t mean Super Retail won’t be in a position to reward its shareholders with generous dividends.

According to analysts at Credit Suisse, they expect a fully franked dividend of 53 cents per share in FY 2022. Based on the current Super Retail share price of $12.20, this will mean a 4.3% dividend yield.

Credit Suisse has an outperform rating and $14.41 price target on the company’s shares.

The post 2 buy-rated ASX dividend shares for income investors today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of and has recommended Super Retail 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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The Origin Energy Ltd (ASX: ORG) share price will be one to watch on Tuesday.

This follows the release of a positive announcement on its UK investment.

Why is the Origin share price on watch?

The Origin share price will be on watch after it revealed that the value of its investment in fast-growing UK energy retailer and emerging technology business Octopus Energy has increased materially.

According to the release, Octopus Energy has received a 211 million pounds investment from leading sustainable investor Generation Investment Management (GIM) for a 7% stake.

This investment values Octopus at approximately 3 billion pounds or $5.5 billion. As a comparison, last year Origin agreed to invest a total of $507 million for a 20% stake in the company. This valued Octopus at approximately $2.55 billion.

The release explains that in order to maintain its 20% stake, the company has agreed to invest a further 38 million pounds or $70 million.

Furthermore, GIM will have an option to double its stake in Octopus under the same terms prior to 30 June 2022. Origin will have an option to invest to maintain its 20% if GIM exercises its option.

What is Octopus?

Octopus is an energy retailer with approximately 5.3 million customer accounts and a technology and software provider licensing its proprietary platform, Kraken, to a growing list of leading energy retailers around the world.

It is also a renewable asset manager with more than 3.4 billion pounds of assets under management.

The release notes that Octopus is also increasingly focused on developing future energy products and services. This includes the decarbonisation of heat, smart meters, and electric vehicle leasing and charging.

Management commentary

Origin’s CEO, Frank Calabria, said: “Since our investment in May 2020, Octopus has emerged as a global leader in energy retailing and technology, achieving significant growth in its home market and expanding into several international markets. It has also continued licencing its Kraken technology platform to leading energy retailers around the world with a target of 100 million customer accounts on Kraken by 2027.”

“In the competitive and fast-changing energy sector, a technology-enabled retail business that delivers superior customer experience at low cost will be core to Origin’s continued success. The strategic partnership with Octopus will help Origin achieve these objectives and strengthen our retail leadership, as we migrate our retail customers to Kraken by the end of 2022 and replicate its low cost, high service operating model, delivering an expected $100-150 million of cash benefits from FY2024,” he added.

The Origin share price is down 7% in 2021.

The post Origin (ASX:ORG) share price on watch after Octopus investment update 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 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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