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The Temple & Webster Group Ltd (ASX: TPW) share price has been a very strong performer over the last six months.

During this time, the online furniture and homewares retailer’s shares have gained an impressive 40%.

Where next for the Temple & Webster share price?

The good news is that one leading broker believes the Temple & Webster share price can keep on rising from here.

According to a note out of Morgan Stanley, its analysts were pleased with the company’s performance in FY 2021 and also the solid start it has made to the new financial year.

In case you missed it, Temple & Webster reported an 85% increase in revenue to $326.3 million and a 141% jump in EBITDA to $20.5 million in FY 2021. It also revealed revenue growth of 49% for the period 1 July to 27 August.

Driving this growth was the accelerating shift from offline to online, a thriving housing market, strong customer growth, and an increase in revenue per active customer.

In response to this update, Morgan Stanley put an overweight rating and $16.00 price target on its shares.

Based on the current Temple & Webster share price of $12.89, this implies potential upside of 24% over the next 12 months.

Why is Morgan Stanley bullish?

Morgan Stanley is bullish on Temple & Webster due to its belief that the company’s strong revenue growth will continue.

This is due partly to the company’s reinvestment program, the structural shift online, and the launch of mobile apps.

All in all, Morgan Stanley believes Temple & Webster is on track to triple its annual revenue to $1 billion in the next four years.

In light of this, the broker sees a lot of value in its shares at the current level and is recommending them as a buy.

The post Can the Temple & Webster (ASX:TPW) share price hit $16? appeared first on The Motley Fool Australia.

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• 3 excellent ASX share ideas for investors this week
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• The Temple & Webster (ASX:TPW) share price is having a bad week but is up 3% today
• 2 leading e-commerce ASX shares that could be buys in September 2021

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 Temple & Webster Group 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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Ethical investing is becoming an increasingly common theme for the modern investor. Increasingly, investors not only want to grow their wealth, but they also want to feel good about where that growth comes from. Climate change, the ongoing COVID-19 pandemic, and the many social justice movements that have gained traction globally over the past 12 months have all made people more aware than ever of the impacts the companies they invest in have on society and the environment.

So, it’s no wonder then that Australian Ethical Investment Limited (ASX: AEF) has seen its price rally 124% so far this year (to $11, as at the time of writing).

What is Australian Ethical?

Australian Ethical is a wealth management company with over $6 billion in funds under management (FUM). The company offers a range of managed funds (catering to various risk appetites), as well as superannuation and pension products.

Managed funds pool together cash from multiple individual investors, and then the fund manager decides on how to invest the money. A fund mandate document normally sets out the terms of the investment, including the fund’s strategy and any performance benchmarks – exceeding the annual return on the S&P/ASX200 Index (ASX: XJO), for example.

While other investment vehicles and exchange-traded funds (ETFs) just screen out companies that fall short of various environmental, social and governmental (ESG) targets, Australian Ethical claims to actively seek out companies that are doing good.

So, what does it invest in?

The managed funds in the Australian Ethical product suite are weighted differently according to their risk level and investment objectives. For example, the Australian Ethical Australian Shares fund, which is high risk and focused on long-term growth, invests heavily in the financial and healthcare sectors. However, one of its top ten holdings is New Zealand-based sustainable energy provider Contact Energy Limited (ASX: CEN), which claims that over 80% of its energy is generated by renewable sources.  

The financials

Australian Ethical makes money by charging fees on its investment products. Operating revenue jumped 18% in FY21 (to $58.7 million), on the back of a 50% increase in FUM. Australian Ethical also earned a one-off $2.9 million performance fee on its Emerging Companies Fund, after it beat its one-year retail benchmark return by a whopping 17.3%.

Commenting on the result, Australian Ethical CEO John McMurdo stated: “The planets are aligning very quickly for Australian Ethical with societal, political and economic tailwinds pointing to a business case for responsible investing that is impossible to ignore.”

He went on to say that the company was “embarking on an aggressive growth strategy that reinforces [Australian Ethical’s] existing market share and expands it where we see the most potential.”

Recent moves in the Australian Ethical share price

After a brief dip around June and July, the Australian Ethical share price has taken off again. Since the release of the company’s full-year results on 26 August, the Australian Ethical share price has gained almost 16%.

And after those incredibly bullish comments from CEO John McMurdo, the Australian Ethical share price will definitely be one to watch over the coming months.  

The post The Australian Ethical Investment (ASX:AEF) share price is up 124% this year! appeared first on The Motley Fool Australia.

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Motley Fool contributor Rhys Brock owns shares of Australian Ethical Investment Ltd. 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 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 Bank of Queensland Limited (ASX: BOQ) share price has struggled in the last few days.  

After closing yesterday’s trading session at $9.30, shares in the bank have tumbled more than 4% from their highs last Wednesday.

Let’s take a look at what’s been weighing down the Bank of Queensland share price.

Weaker market drags Bank of Queensland share price

The Bank of Queensland hasn’t released any price-sensitive news that could explain the slump in its share price.

As a result, weakness in the bank’s shares can be attributed to several factors

Firstly, general weakness in the broader market over the past few days could explain why the Bank of Queensland share price has struggled.

Concerns over the US economy triggered a broad market sell-off with many investors looking to take profits after a strong gain in 2021.

In addition, shares in the Bank of Queensland could be the victim of weaker sentiment across the banking sector.

This follows several downgrades for notable banks such as Macquarie Group Ltd (ASX: MQG) and National Australia Bank Ltd. (ASX: NAB).

More on the Bank of Queensland share price

Despite struggling over the past few days, shares in Bank of Queensland have had a stellar year thus far.

Since the start of 2021, the bank’s share price has gained more than 24%.

By comparison, the broader S&P/ASX200 Index (ASX: XJO) has only managed to claw 12% for the year.

There have been various catalysts that have helped propel the Bank of Queensland share price higher this year.

The Bank of Queensland has had a strong start to the first-half of FY21.

For the first-half, the bank recorded a 9% increase in cash earnings to $165 million and a 66% lift in statutory net profit after tax to $154 million.

The bank also boosted its interim dividend by 54% to 17 cents per share, fully franked.

In addition, shares in the bank received a boost after announcing its interest to acquire Money Equity (ME) Bank.

Following a capital raise, the Bank of Queensland received approval for the acquisition in early July.

Shares in the bank have also been on the receiving end of some positive broker reports.

Most recently, analysts at JPMorgan rated the Queensland-based bank as the third-best financial share on the market.

The post The Bank of Queensland (ASX:BOQ) share price has fallen 4% since Wednesday. What’s happening? 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 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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The Coles Group Ltd (ASX: COL) share price will be in focus today.  

Investors will be keeping an eye on the supermarket giant amid its latest push to expand into the premium homeware market.

Let’s take a closer look.

Why are investors watching the Coles share price?

Coles is one of the most trusted brands in Australia and plans to grow its market share by expanding into premium homewares.

According to a recent article in The Australian, the supermarket giant has struck a deal with celebrity chef Curtis Stone.

Stone’s high-end cookware, which has been popular on the US Home Shopping Network, is set to be sold exclusively at Coles. The high-quality cookware and utensils will be available to shoppers in an affordable price range.

With this latest deal, Coles looks to expand into the premium homewares sector dominated by Kmart, which is operated by Wesfarmers Ltd (ASX: WES).

Coles is not alone, with rival supermarket giant Woolworths Group Ltd (ASX: WOW) launching a new range of home accessories in August.

More on Coles

Last month, Coles released its full-year report for FY21 which noted a bumper year for the supermarket giant.  

The company’s report was highlighted by a 3.1% increase in sales revenue for the year of $38,562 million.

Other highlights from Coles’ report included;

• Earnings before interest, tax, depreciation, and amortisation (EBITDA) up 5.4% to $3,432 million;
• Net profit after tax up 7.5% to $1,005 million;
• Fully franked final dividend of 28 cents per share. This resulted in a record total dividend of 61 cents per share, up 6.1% from FY20.

Coles cited several initiatives for its surging grocery segment, including the continued roll-out of its ‘Click & Collect’ service.

Outlook on the Coles share price

Since the start of the year, shares in the supermarket behemoth are down more than 6%. By comparison, the S&P/ASX 200 Index (ASX: XJO) has managed to claw 11% higher in 2021.

Despite the subdued performance, the Coles share price has support from various institutions.

Most recently, leading broker Morgans retained its add rating on the company with a $19.80 share price target.

According to analysts, Coles is well placed to benefit from people working from home and consuming more due to COVID-19 lockdowns.

The Coles share price closed yesterday’s session at $17.28.

The post Coles (ASX:COL) share price on watch amid latest push to Kmart market 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 owns shares of and has recommended COLESGROUP DEF SET and Wesfarmers 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 Pushpay Holdings Ltd (ASX: PPH) share price could be one to consider after the tech company released an investor presentation, outlining its strategy.

For readers that haven’t heard of Pushpay before, it’s a donation processing and church management business. It currently has a number of tools for churches including live streaming, giving, bible study, HR software, bookkeeping software, music licensing and so on.

It can also work with non-church organisations like charities or corporates. Pushpay can assist with payments, donations, memberships, branded credit cards, video on demand, event management and more.

There are a few different things that Pushpay pointed to in its presentation as reasons why it has growth potential:

Diversification plans

At the moment, a very large amount of Pushpay’s earnings come from US churches. But Pushpay is looking to explore other avenues for new earnings streams.

It said that education can be another area of focus, such as K-12 and college campus alumni associations. The company shared a list of offerings it could be involved, including: tuition or dues, the parent and teacher curriculum review, student body voting, sports program funding, audio and textbook licensing, sororities and fraternities membership and dues, class attendance, study groups, home school co-ops or networks and tutoring.

Other payment services that Pushpay could offer include currency conversion and cryptocurrency transactions.

Pushpay also noted that it can geographically expand as well. The US is the main profit generator, but management are also thinking about growing in South East Asia, South America and Europe too.

Resi Media

The ASX tech share recently announced the acquisition of Resi Media. The Pushpay share price has risen by 17% since the date of the announcement. This business was bought for a cost of US$150 million.

Pushpay described Resi Media as a high-growth software as a service (SaaS) company specialising in high-quality transmission for web and multisite streaming offering end-to-end solutions to customers.

Resi Media’s products are being used by 70% of the Outreach 100 churches – many of the biggest churches in the US.

The video streaming business also reportedly has customers outside of the faith sector, including in the corporate, education, sports and live event streaming markets.

In FY21, Resi Media had $12.9 million of annual recurring revenue (ARR), with 3,374 customers and net revenue retention of more than 100%. FY21 saw 101% revenue growth compared to FY20.

Catholic sector growth

Pushpay has told investors that it wants to expand in the Catholic sector.

The company says that 23% of the US population considered itself to be Catholic in 2018.

In 2016, 27% of US faith giving was generated from Catholic services, totaling US$30 billion. Pushpay estimates there’s an estimated US$330 million annual revenue opportunity here.

The ASX tech share pointed out there are an estimated 17,000 parishes in the US, which skew more heavily to medium and large churches.

It said that current solutions for the Catholic sector are dated, lack features, are not mobile-friendly and are not cloud-based. The donation business’ research shows that parishes are generally dissatisfied with current tools and ready for a change. It also said that Catholic branded or customised solutions are “clearly preferred” by Catholic parishes.

All of that leads Pushpay to believe there is an opportunity to provide a modern technology solution.

So Pushpay is providing an offering called ParishStaq, alongside its older all-in-one offering called ChurchStaq.

Pushpay share price valuation

The pre-open price of $1.84, its shares are currently valued at 35x FY22’s estimated earnings.

The post 3 compelling reasons why the Pushpay (ASX:PPH) share price could be a buy 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 PUSHPAY FPO NZX. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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IDP Education Ltd (ASX: IEL) shares will be keenly monitored on Tuesday morning after a round of endorsements about their prospects.

Prior to this morning’s open, UBS brokers raised their price target for the international education provider by 13%.

They are now forecasting the IDP share price to hit $36.40. That’s an 11% premium on Monday’s closing price of $32.72.

The stock is already up close to 60% for the year and more than 20% over the past month.

Tribeca Investment Partners portfolio manager Jun Bei Liu told The Motley Fool’s Ask A Fund Manager on Tuesday morning that IDP Education has plenty more growth to come.

“It has gone up a lot but, in terms of its earnings, it has yet to return,” she said. 

“In the next 12 months, we do expect meaningful returns for this company, as its earnings grow higher and its multiple continues to expand.”

Why the ducks are all lined up for IDP shares

Liu revealed that IDP shares are among the 5 biggest positions her fund holds currently.

Australian universities, as one of the big beneficiaries of IDP’s services, previously held more than 40% ownership of the company.

But when COVID-19 difficulties hit the tertiary sector, Liu’s team bought up big.

“They sold down some parts of their stake and then we took advantage of it,” she said.

“We have always liked this company. It’s a very high-quality company exposed to global student placements.”

Liu reminded investors IDP doesn’t just do business bringing in foreign students into Australia.

“The amazing thing about this company is that it’s not just students coming to Australia. It’s going global,” she said. 

“It has huge exposure across the UK, Canada, and many other countries. Essentially just leveraged to that global movement from students wanting to be educated in some of the top universities.”

Of course, IDP’s short-term numbers have taken a massive hit due to restrictions on international travel. But Liu has faith that IDP is a strong post-pandemic recovery story.

“Once we have all the vaccinations or vaccination passports, these students will return.”

Based on the current IDP share price, the company commands a market capitalisation of around $9.1 billion.

The post Why IDP Education (ASX:IEL) shares are on watch Tuesday appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Idp Education Pty 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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The Flight Centre Travel Group Ltd (ASX: FLT) share price has been flying higher over the past month. Investors appear optimistic about a speedy recovery in the travel industry as Australia accelerates its vaccine rollout.

At Monday’s market close, the travel agent’s shares ended the day at $18.05. It’s worth noting that the company’s shares reached a 5-month high of $18.67 last week, before some slight profit-taking.

What’s fuelling the travel agent’s shares?

There are a few catalysts as to why the Flight Centre share price has been travelling upwards in recent times.

In late August, the company released its full-year results, highlighting month-on-month sales revenue growth despite lockdowns and heavy restrictions. In particular, the corporate sector in the United States gained momentum as trading conditions generally improved.

Flight Centre noted some countries, including the United States, Canada and the United Kingdom, are poised for strong returns in FY22. Coupled with its leaner and more efficient cost base model, the company expects this to provide solid profits over the long term.

Following its annual scorecard, a number of brokers weighed in on the Flight Centre share price with a positive outlook.

Swiss investment firm, UBS raised its view for Flight Centre shares by 7.1% to $17.25 apiece. Macquarie and JPMorgan also revised their ratings, increasing the price target by 6.5% to $16.50, and 12% to $14.00, respectively.

Early this month, Flight Centre revealed its expansion plans for Japan via a joint venture with NSF Engagement Corporation.

Flight Centre’s leading FCM travel management business will enter the fourth-largest corporate travel market from January 2022.

Management stated it intends on winning new local, regional and multi-national accounts, while also enhancing existing services in Japan.

Flight Centre share price summary

Since this time last year, the Flight Centre share price has been on a rollercoaster ride, gaining 45%. In 2021, the company’s shares are up 15%.

On valuation grounds, Flight Centre commands a market capitalisation of roughly $3.6 billion, with approximately 199.5 million shares on issue.

The post Why the Flight Centre (ASX:FLT) share price is up 20% in a month appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. 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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The Westpac Banking Corp (ASX: WBC) share price will be one to watch on Tuesday.

This follows the release of an update on a proposed asset sale this morning.

What did Westpac announce?

According to the release, Westpac has revealed that its plan to divest its Pacific businesses has been dealt a blow.

Late last year, the bank announced the sale of its Pacific businesses to Kina Securities Limited (ASX: KSL) for up to $420 million. This was part of its strategy to simplify its operations and focus on banking in Australia and New Zealand.

At the time, it warned that the sale was subject to regulatory approvals in both Fiji and Papua New Guinea.

Speaking of which, in July, the banking giant revealed that the Papua New Guinea’s Independent Consumer and Competition Commission (ICCC) released a draft determination relating to the sale. That draft determination indicated that the ICCC was proposing to deny authorisation to Kina Securities for the proposed acquisition of Westpac’s stake in Westpac Bank PNG.

Unfortunately for Westpac and Kina Securities, the ICCC has now released its final determination and no changes have been made. The Commission has denied authorisation for the sale.

Westpac has acknowledged the ICCC’s determination. It has advised that it will continue to operate the businesses as normal while it reviews the impact on the sale.

Is the Westpac share price in the buy zone?

One leading broker that sees value in the Westpac share price is Citi. Late last month the broker put a buy rating and $30.00 price target on its shares.

Based on the current Westpac share price of $25.64, this means potential upside of 17% over the next 12 months.

Citi appears positive on Westpac’s cost cutting plans and expects this to help offset top line headwinds.

The post Westpac (ASX:WBC) share price on watch after asset sale blocked appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 Xero Limited (ASX: XRO) share price has been out of form in 2021.

Since the start of the year, the cloud accounting and business platform provider’s shares have gained only 1%.

This compares unfavourably to the S&P/ASX 200 Index (ASX: XJO) and its 11% gain this year.

Is the Xero share price good value?

The good news is that one leading broker expects the Xero share price performance to improve.

According to a recent note out of Goldman Sachs, the broker has a buy rating and $165.00 price target on the company’s shares.

Based on the current Xero share price, this implies potential upside of 10% over the next 12 months.

What did the broker say?

Goldman Sachs is positive on the Xero share price due to its belief that the company is well-placed for strong revenue growth over the coming years.

In fact, the broker expects its revenue to double over the next few years thanks to subscriber growth and the monetisation of its user base.

Goldman commented: “We expect XRO revenue to double across FY21-24E (+26% CAGR), driven by: (1) ARPU growth from the recently announced price rises (benefiting FY22/23E) and the introduction of this app store fee (benefiting FY23/24E); (2) Subscriber growth, given accelerating subscriber growth across all geographies in 2H21, and strong recent traction from its Enterprise strategy (i.e. recently signed a Global partnership with DFK, the 7th largest Global Accounting Association, to complement agreements with BDO/RSM); and (3) M&A, with the Planday acquisition to contribute +3% growth in FY22E.”

But Goldman doesn’t necessarily expect its revenue growth to stop there. The broker is forecasting revenue of NZ$3,699 million and EBITDA of NZ$1,263 million in FY 2030. This compares to its revenue estimate of NZ$1,129 million and EBITDA estimate of NZ$209 million for FY 2022.

Overall, if the company delivers on its estimates, the broker appears to believe the Xero share price will generate strong returns for investors. This could make it a top long term option for investors.

The post Is the Xero (ASX:XRO) share price heading to $165? 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 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 Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price has been a strong performer in 2021.

Since the start of the year, the banking giant’s shares are up 20% to $27.62.

This is close to double the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Can the ANZ share price keep climbing?

The good news is that one leading broker believes there is still a lot more upside for the ANZ share price over the next 12 months.

According to a recent note out of Morgans, its analysts have an add rating and $34.50 price target on the company’s shares.

Based on the current ANZ share price, this means potential upside of 25% over the next 12 months before dividends.

And if you include the $1.65 per share fully franked dividend the broker is forecasting in FY 2022, this potential return stretches to almost 31%.

Why is Morgans bullish?

The note reveals that Morgans is bullish on the ANZ share price due to its attractive valuation and the bank’s cost reduction plans.

Combined with a big improvement in the quality of its loan book, the broker believes this makes ANZ the best option among the major banks right now.

It commented: “We believe ANZ is the most compelling of the major banks on a valuation basis. We expect ANZ to continue to focus on absolute cost reduction over the medium term. ANZ has de-risked its loan book over recent years – particularly its institutional loan book – such that the quality of its loan book has improved. While ANZ’s Australian home loan book has been growing below system over recent months, we expect a disciplined margin performance from ANZ.”

All in all, the ANZ share price may be smashing the market this year, but Morgans doesn’t believe it is too late to invest.

The post This analyst sees 25% upside for the ANZ (ASX:ANZ) share price 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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