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With the S&P/ASX 200 Index (ASX: XJO) still hovering at record highs this results season, investors may have to turn to lesser-known businesses for a bargain on the way up.

Fairmont Equities managing director Michael Gable told his clients that he has an optimistic outlook for Australian shares.

“In the last few days, we have once again seen the US markets come back to the 50-day moving average and bounce off it, which means that the uptrend remains in place for now,” he said.

But Fairmont reported 2 specific smaller-cap ASX shares that it is especially positive on:

Can Genworth deal with a potential break-up of a 50-year relationship?

Genworth Mortgage Insurance Australia Ltd (ASX: GMA) is in the business of providing lenders’ mortgage insurance for home loans.

This ASX share holds a field-leading 31% share of the market, according to Fairmont’s The Dynamic Investor report.

Its results this month exceeded expectations.

“Underlying net profit after tax (NPAT) for the six months to 30 June 2021 (1H21) was ahead of market expectations and underpinned by better-than-expected underwriting profit, which was driven by lower net claims incurred (-51%).”

One current risk spooking potential investors is that its contract with Commonwealth Bank of Australia (ASX: CBA) is up for renewal. 

While Genworth has enjoyed a 50-year relationship with the banking giant, there is no absolute guarantee that would continue.

The stock dropped from around $2.80 in mid-June to $2.26 on Tuesday afternoon.

Gable’s team reckons the current price is worth it even if the CBA deal is lost.

“At current levels, the market appears to be heavily discounting the shares relative to its adjusted NTA [net tangible assets] should the CBA contract be lost, with the price/NTA ratio well below the usual range,” the Fairmont report read.

“On an ‘as is’ basis, the fundamentals are improving. In particular, GMA’s improving profitability, strong reserving (which was increased in 1H21) and strong capital position leaves it well-positioned to deliver strong shareholder returns.”

Genworth shares typically trade between 20% to 40% discount to NTA, according to Fairmont.

“Short interest in GMA has been declining materially since January 2020 and now sits at [approximately] 1%.”

Can Imdex join the big boys?

Imdex Limited (ASX: IMD) is a technology and equipment provider for the mining industry.

“The company has a strong market presence on 70% of mineral drilling projects globally and generated sales in over 100 countries,” reported Fairmont. 

“Imdex directly supports 18 of the top 50 mining companies globally and has long-standing relationships with most of the top drilling clients.”

The company’s financial results this month showed earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin shot up to 28.5%.

Imdex declined to provide future guidance. However, Gable’s team suspects financial year 2022 “appears likely to be another year of strong growth”.

Imdex shares are up more than 34% for the year. However, they have dipped from $2.49 earlier this month to $2.30 as of Tuesday afternoon.

“The shares are currently trading on a 1-year forward P/E multiple of [approximately] 23x, which we do not consider to be demanding in the context of earnings per share growth of 15% over FY21-24 on a CAGR [compound annual growth rate] basis.”

But for those buying in now, the biggest uplift could come from a trigger that is completely unrelated to anything Imdex itself does.

“Inclusion in the S&P/ASX 200 Index is a potential catalyst for the shares.”

The business has a market capitalisation of around $900 million. The smallest company in the ASX 200 is Perseus Mining Limited (ASX: PRU), with a market cap of $1.89 billion.

The post 2 cheap ASX shares now ready to take off appeared first on The Motley Fool Australia.

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• ASX 200 rises, BWP Trust falls, Genworth soars
• Why Argosy Minerals, Genworth, Vulcan, & Zip shares are charging higher
• Genworth (ASX:GMA) share price jumps 7% on half-year earnings
• Why UBS just upgraded these 3 ASX shares to “buy”

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

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The Telstra Corporation Ltd (ASX: TLS) share price has gone up by 30% in the 2021 calendar year to date. Is it still an opportunity, or has the easy money been made?

Before we get to the opinion on Telstra shares, let’s look at the telco’s FY21 result which was filled with interesting information about the prior year.

Telstra’s FY21 result

When the telco announced its report it said that it had achieved a turning point in its financial performance and that it was building momentum towards growth.

On a reported basis, total income decreased by 11.6% to $23.1 billion. Net profit after tax (NPAT) rose by 3.4% to $1.9 billion.

Looking at underlying earnings before interest, tax, depreciation and amortisation (EBITDA) on a guidance basis, it decreased 9.7% to $6.7 billion. This included an in-year NBN headwind of around $650 million and an estimated $380 million financial impact from COVID. Excluding the in-year NBN headwind, underlying EBTIDA in the year declined by around $70 million.

Management have been focused on delivering T22 for a few years. Telstra has completed or is on track to achieve around 80% of its T22 scorecard metrics.

Costs and improving productivity is one area of focus. Total operating expenses declined by 10.2% for the year. Underlying fixed costs declined by $490 million, or 8.1%. Since FY16, the company has achieved around $2.3 billion of net productivity and remains on track to meet its target of $2.7 billion by the end of FY22. It has reduced net full-time roles by around 8,300 and removed on average more than four management layers.

Another area that may be impacting the Telstra share price is its monetisation strategy.

Sell-down of assets

The separation and sale of its 49% stake of InfraCo Towers is expected to be completed by the end of August. This transaction values Telstra’s InfraCo Towers at $5.9 billion. But the telco also gets to keep control of the business, whilst having partners like the Future Fund and Sunsuper as part of the InfraCo Towers.

The company had previously suggested that it would return about half of the net proceeds.

Telstra has announced an on-market share buy-back of up to $1.35 billion to return some of this capital to shareholders and maximise value.

Is the Telstra share price a buy today?

Plenty of brokers still think so.

For example, Morgans rates Telstra shares as a buy with a price target of $4.34. That implies a potential rise of around 10% over the next 12 months.

The broker noted that the mobile business is producing growth and this may continue for the next 12 months.

There could be more earnings growth to come and the telco industry environment appears to be improving for Telstra.

Telstra is expected by Morgans to pay a fully franked dividend yield of $0.16 per share in both FY22 and FY23. That translates to a grossed-up dividend yield of 5.8%.

The post Is the Telstra (ASX:TLS) share price a buy today? appeared first on The Motley Fool Australia.

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• Here are the 3 top trading ASX 200 shares this Friday

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

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The Insurance Australia Group Ltd (ASX: IAG) share price has moved sideways over the past year. No doubt, COVID-19 has thrown some serious challenges to the insurance giant, impacted by significant one-off corporate expenses.

However, management remains focused on correcting these issues and delivering bottom-line growth.

At Tuesday’s market close, IAG shares finished the day up 1.31% trading at $5.42.

How is the IAG share price tracking in 2021?

In 2021, IAG has posted share price gains of 15%. This comes off the back of its strong surge in August, rising 10% in the past month alone.

Investors were clearly buying the company’s shares ahead of its full-year results, expecting good things to come out of IAG.

IAG chief executive Nick Hawkins commented:

Our fiscal 2021 business performance is sound and reflects the strength of our core insurance business and its market leading brands.

Our Australian and New Zealand direct businesses have generated solid growth, and we’ve enhanced our focus on our intermediated business in Australia to resolve the challenges we’ve seen with some of its portfolios, and to drive greater profitability.

Since then, its share price has levelled around $5.40 after August’s steep rise.

Only time will tell if IAG shares can regain pre-pandemic highs of around the $8 mark.

What if you had invested $1,000 into IAG shares 10 years ago?

If you had invested $1,000 in IAG shares in 2011, you would have bought them for around $3.02 apiece. The purchase would deliver approximately 331 shares without reinvesting the dividends.

Fast-forward to today, the IAG share price last closed at $5.42. This means that those 331 shares would be worth $1,794.02 (331 shares x $5.42).

When looking at percentage terms, this is a 79.4% increase or an average yearly return of 6.02%. In comparison, the S&P/ASX 200 Index (ASX: XJO) has given back the exact same amount over the 10-year period (6.02%).

While it may appear that either investment would deliver the same returns, IAG has paid dividends to its shareholders.

Are IAG shares a buy?

A number of brokers have rated the company with comparable price points since the release of its full-year results on 11 August.

Citi raised its 12-month price target by 2.7% to $5.75 for IAG shares. Following suit, Morgans changed its rating, adding 5.2% to $5.65. And lastly, JPMorgan lifted its outlook by 5.9% to $5.35.

IAG presides a market capitalisation of roughly $13.3 billion, with more than 2.4 billion shares on its books.

The post If you invested $1,000 in IAG (ASX:IAG) shares a decade ago, here’s what it would be worth now appeared first on The Motley Fool Australia.

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• 10 ASX shares we’re overweight in right now: fund
• How does the IAG (ASX:IAG) earnings result compare to Suncorp?
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• How does the IAG (ASX:IAG) dividend compare to its sector?
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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 Insurance Australia 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 Qantas Airways Ltd (ASX: QAN) share price is relatively flat since the beginning of 2021. The airline operator continues to battle COVID-19 which has severely affected its operations and the wider travel market.

At Tuesday’s market close, Qantas shares finished the day up 5.48% to $4.62.

What happened to Qantas shares last earnings season?

When Qantas reported its half-year scorecard for FY21, its shares tanked 6% within a matter of days. This was short-lived however, with the company’s share price rebounding to touch a 52-week high of $5.79 the following month.

Looking back at the results, Qantas delivered revenue of $2.33 billion, a mammoth 75% drop compared to the prior corresponding period. The stark fall came predominately from Victoria’s extended lockdown and nationwide border closures.

However, the company achieved underlying earnings, before, interest, tax, depreciation and amortisation (EBITDA) of $86 million. Management noted that this reflected the fundamental resilience of Qantas’ portfolio.

Nonetheless, the group posted an underlying loss before tax of $1.03 billion. This compares to a net profit before tax of $771 million in H1 FY20.

Qantas Group CEO Alan Joyce commented at the time:

These figures are stark but not surprising.

Despite the huge challenges, these results show the group’s underlying strength.

Our priorities remain the safety of everyone who travels with us, getting as many of our people back to work as possible and generating positive cash flow to repair our balance sheet.

Is the Qantas share price a buy?

A recent report released by Goldman Sachs slapped a buy rating on Qantas shares, indicating a 12-month price target of $6.38.

While this represents an upside of 38% based on the current Qantas share price, the broker noted some downside risks. They included rising competition, poor passenger volumes, higher fuel prices, loss of cost benefits, delayed border openings, and slower demand recovery.

Qantas has a market capitalisation of roughly $8.7 billion, with more than 1.8 billion shares on its registry.

The post The Qantas (ASX:QAN) share price fell 6% last time the company reported 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 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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There are a lot of growth shares for investors to choose from on the Australian share market.

To narrow things down, I have picked out three ASX growth shares that are highly rated. Here’s what you need to know about them:

Appen Ltd (ASX: APX)

The first ASX growth share to look at is Appen. Its vast team of crowd sourced experts prepare the data that goes into artificial intelligence (AI) and machine learning models. Appen does this for some of the biggest tech companies in the world such as Google and Facebook. And while demand has softened during the pandemic, it is expected to rebound once the crisis passes. Especially given how spending on AI is forecast to grow materially over the next decade.

The team at Citi remain positive on Appen. Even though they expect the company to fall short of expectations during the first half of FY 2021, they are holding firm with their buy rating and $18.80 price target.

ELMO Software Ltd (ASX: ELO)

Another ASX growth share to look at is ELMO. It is a HR and payroll platform provider that has been growing at a rapid rate over the last few years and even during the pandemic. Its popular software platform allows businesses to simplify and streamline a wide range of tasks. Demand has been strong, leading to strong recurring revenue growth. This was certainly the case in FY 2021, with its annualised recurring revenue (ARR) jumping 52.1% to $83.8 million. More strong growth is expected in FY 2022, with management providing ARR guidance of $105 million to $111 million

Earlier this month analysts at Morgan Stanley retained their overweight rating and $7.80 price target.

ResMed Inc. (ASX: RMD)

A final ASX growth share to look at is ResMed. It is a medical device company with a focus on the sleep treatment market. Thanks to its industry-leading products, wide distribution, and successful acquisitions, ResMed has been growing at a solid rate for over a decade. Pleasingly, this positive form looks set to continue over the long term. This is thanks to its significant market opportunity and the growing prevalence of sleep disorders.

Morgans is a big fan of ResMed. Earlier this month the broker put an add rating and $41.34 price target on its shares. It believes the company is well-placed to benefit from market share gains following a rival device recall.

The post 3 ASX growth shares that analysts love appeared first on The Motley Fool Australia.

More reading

• Top broker names Appen (ASX:APX) share price as a buy
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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 Appen Ltd and Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended Appen Ltd and Elmo Software. The Motley Fool Australia has recommended ResMed Inc. 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 Redbubble Ltd (ASX: RBL) share price may be worth considering after the e-commerce company released its FY21 result.

That’s what the analysts at broker Morgans think anyway. Redbubble is back as a buy rated business with a price target of $4.83.

What was in Redbubble’s result?

Redbubble reported that it grew marketplace revenue by 58% to $553 million. Gross profit increased by 66% to $223 million. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 930% to $53 million. Net profit after tax (NPAT) was $31 million, up from a loss of $9 million.

The e-commerce business generated $55 million of operating cashflow, an increase from $47 million in FY20.  

Why might the Redbubble share price be a buy?

There are a few different factors to consider with Redbubble.

Scalable business model

Morgans says that it is a believer in Redbubble’s potential earnings and growth with its platform.

Redbubble operates an e-commerce model where artists are paid for their designs that are printed on various products like clothing, stationery, bags, phone cases and so on. Customers can buy products at Redbubble.com or TeePublic.com with these cool or interesting designs on them.

E-commerce business models can have a lot of operating leverage. Once the digital (and physical) infrastructure has been built, it can lead to rising margins as the business processes more volume and gets bigger.

This scalable model hasn’t helped things as Redbubble goes through a slowdown of demand. But if it grows revenue then Redbubble benefits. However, Morgans thinks it will be difficult for Redbubble to beat the prior corresponding months of sales in FY21 over the next few months. The broker thinks there could still be short-term potential weakness for the Redbubble share price.

Large addressable market

Redbubble believes that it’s uniquely positioned to be a significant winner in a market that’s worth around US$300 billion in core geographies. That’s expected to rise to $400 billion by 2024.

The ASX share points to several trends where it can benefit.

Structural shifts to e-commerce are expected to endure, according to the company.

There is increasing consumer demand for unique and meaningful products.

Redbubble also points to a growing creator economy which enables a scalable and dynamic source of unique designs.

The company believes it can reach marketplace revenue of $1.25 billion in the 2024 calendar year. That compares to $553 million of marketplace revenue in FY21.

Investing to capture the opportunity

Redbubble plans to invest in various parts of the business to try to capture more market share of that large opportunity.

It wants to invest in artist activation and engagement, meaning recruitment and account management. Redbubble also wants to improve the artist experience to optimise content.

Redbubble will also invest in user acquisition and transaction optimisation with improved digital experiences, marketing and geographic expansion.

Another target area will be customer understanding, loyalty and brand building.

Finally, Redbubble wants to invest in its product range and third party fulfilment network. This will help it realise fulfilment scale efficiencies.

Current Redbubble share price valuation

Redbubble shares may rise around 20% over the next 12 months, if Morgans is right.

Despite Redbubble’s expectation of heavy investing, the e-commerce business is predicted by the broker to generate $0.19 of earnings per share (EPS) in FY23. That translates to Redbubble shares currently being at 21x FY23’s estimated earnings.

The post 3 reasons why the Redbubble (ASX:RBL) 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. 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 A2 Milk Company Ltd (ASX: A2M) share price has slid 43% since the start of 2021.

After opening the year at $11.65, its shares have since dropped to swap hands for $6.64 apiece.

Unsurprisingly, the milk and milk-based products producer’s shares have performed significantly worse than the broader market.

In 2021, the S&P/ASX 200 Index (ASX: XJO) has gained 12.2%, while the All Ordinaries Index (ASX: XAO) has increased by 11.7%.

Let’s take a look at what’s been impacting the A2 Milk share price through 2021.

What’s driving the A2 Milk share price down?

While the A2 Milk share price has been sliding, the company has remained relatively quiet. In fact, the market hasn’t heard any news from it since May.  

However, A2 Milk’s most recent announcement highlighted the company’s struggles against the COVID-19 pandemic.

In May, A2 Milk reported it was changing tack on how it’s addressing the fall of the daigou network and cross-border e-commerce channels that it once relied on. It also downgraded its guidance for financial year 2021 for the fourth time.

The A2 Milk share price crashed 13% on the back of the new plan. Unfortunately, the market seemingly hasn’t changed its view on the company since.

Perhaps it was because A2 Milk was restating the same message it had been for many months prior. Without an international reseller network and Chinese demand for its infant formula products, the company’s revenue had slowed significantly.

In May, A2 Milk downgraded its financial year 2021 guidance. It stated it expected to report revenue of between $1.15 billion and $1.2 billion (converted from New Zealand Dollars at the exchange rate of the time of writing).

For comparison, the company reported $1.65 billion in revenue for the 2019 financial year (once again, converted from New Zealand Dollars).

Whether A2 Milk’s guidance came to fruition will be answered tomorrow. The company is expected to report its results for financial year 2021 on Thursday.

All eyes will be on the A2 Milk share price to see if the company’s outlook for financial year 2022 is more optimistic.

The post Here’s why the A2 Milk (ASX:A2M) share price is down 42% so far in 2021 appeared first on The Motley Fool Australia.

More reading

• Here’s what has been moving the A2 Milk (ASX:A2M) share price in August 2021
• Here’s why the A2 Milk (ASX:A2M) share price is up 11% this week
• A2 Milk (ASX:A2M) share price lifts amid trademark stoush
• Why the A2 Milk (ASX:A2M) share price has underperformed the ASX 200 in the last year
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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 Tuesday the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index ended the day up 0.2% at 7,503 points.

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

ASX 200 futures pointing higher

The Australian share market is expected to continue its positive run on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.25% higher this morning. This follows a decent night of trade on Wall Street, which saw the Dow Jones rise 0.1%, the S&P 500 climb 0.15%, and the Nasdaq push 0.5% higher.

Afterpay and Zip full year results

The Afterpay Ltd (ASX: APT) share price and the Zip Co Ltd (ASX: Z1P) share price will be on watch today when the two buy now pay later (BNPL) providers hand in their full year results. While both companies have pre-released much of their numbers, there will still be a lot to look out for. This includes their losses for the year and their expansion plans for FY 2022.

Oil prices rise gain

It could be a good day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices rose again. According to Bloomberg, the WTI crude oil price is up 3.1% to US$67.68 a barrel and the Brent crude oil price is up 3.5% to US$71.20 a barrel. Oil prices pushed higher in response to U.S. regulators issuing their first full approval for a COVID-19 vaccine.

WiseTech Global full year results

The WiseTech Global Ltd (ASX: WTC) share price could be on the move today when it releases its full year results. In February, the logistics solutions platform provider provided guidance for full year revenue of $470 million to $510 million and EBITDA of $165 million to $190 million. This represents year on year growth of 9% to 19% and 30% to 50%, respectively.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could have a subdued day on Wednesday after the gold price edged lower. According to CNBC, the spot gold price is down slightly to US$1,806.1 an ounce. Traders appear undecided whether a spike in COVID cases globally will delay the Federal Reserve’s tapering plans.

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

More reading

• Leading brokers name 3 ASX shares to sell today
• ASX 200 rises, Kogan sinks, Ansell slumps
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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 AFTERPAY T FPO, WiseTech Global, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Are you looking for blue chip ASX 200 shares to add to your portfolio? If you are, the two ASX shares listed below could be worth a closer look.

Here’s what analysts think of these shares:

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 world class portfolio comprising warehouses, large scale logistics facilities, and business and office parks.

These properties are in demand and count some of biggest companies in the world as tenants. This led to Goodman reporting a 98.1% occupancy rate at the end of FY 2021. This ultimately underpinned a solid 15% increase in operating profit to $1.22 billion for the 12 months.

Positively, more of the same is expected in the future. Thanks to strong customer demand in its markets, which is translating into high occupancy, rental growth, and strong investment returns, management is guiding to 10% growth in operating earnings per share in FY 2022.

Goodman’s FY 2021 result went down well with analysts at Citi. In response, the broker retained its buy rating and $26.00 price target on the company’s shares. This compares to the latest Goodman share price of $22.99.

REA Group Limited (ASX: REA)

Another blue chip ASX 200 share to consider is REA. This property listings company has been a strong performer in recent years despite battling a housing market downturn and the COVID-19 pandemic. This demonstrates the resilience of REA’s business model and its exceptionally strong position in the ANZ market.

Pleasingly, its strong business model was on display for all to see in FY 2021. REA delivered a 13% increase in revenue to $928 million and a 19% jump in earnings before interest, tax, depreciation and amortisation (EBITDA) to $565 million. The latter was ahead of expectations.

Positively, with the housing market rebounding strongly, REA’s outlook is looking increasingly positive. This should be boosted by price increases, new revenue streams, acquisitions, and its excellent cost control.

Goldman Sachs is very positive on the company. It has a buy rating and $190.00 price target on its shares. This compares to the latest REA share price of $154.38.

The post 2 excellent blue chip ASX 200 shares named as buys appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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 have room for a growth share or two in your portfolio, you might want to consider the shares listed below.

Here’s what you need to know about them:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. The appliance manufacturer has been growing at a solid rate in recent years thanks to strong demand and its international expansion.

This positive form continued in FY 2021, with Breville delivering one of the stronger full year results this month. For example, for the 12 months ended 30 June, Breville reported a 24.7% increase in revenue to $1,187.7 million and a 39.6% jump in EBIT to $136.6 million. The latter was ahead of its upgraded guidance.

This result was supported by favourable tailwinds brought about by COVID-19 such as more cooking and working at home, which underpinned an increase in demand for whitegoods such as cooking equipment and coffee machines.

UBS was pleased with its result and in response retained its buy rating and $35.70 price target. It likes the company due to its attractive long term growth potential.

PointsBet Holdings Ltd (ASX: PBH)

Another ASX growth share to look at is PointsBet. It is a leading sports betting company with operations in both the ANZ and US markets.

It recently released its fourth quarter update and revealed that it achieved full year turnover of $3,781.4 million in FY 2021. This was up an impressive 228% on FY 2020’s turnover.

Management advised that this was driven by a 117% annual increase in Australian active clients to 196,585 and a 661% increase in US active clients to 159,321.

Goldman Sachs is very positive on the company and has a buy rating and $14.90 price target on its shares.

Its analysts note that PointsBet has a strong position in the US and a huge market opportunity ahead of it. It expects the US sports betting market to grow at a compound annual growth rate of 40% out to 2033. It estimates that it will be worth US$39 billion a year at that point.

The post 2 rapidly growing ASX shares rated as buys appeared first on The Motley Fool Australia.

More reading

• Why Zip (ASX:Z1P) and these growth shares could be buys
• Top brokers name 3 ASX shares to buy next week
• 2 fantastic ASX growth shares named as buys this week
• PointsBet (ASX:PBH) share price falls despite US NFL news
• Top brokers name 3 ASX shares to buy 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. 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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