Tag: Motley Fool

The Dateline Resources Ltd (ASX: DTR) share price has been an exceptionally strong performer on Thursday.

In morning trade, the mineral exploration company’s shares rocketed as much as 150% higher to a multi-year high of 20.5 cents.

The Dateline Resources share price has since pulled back a touch but remains 71% higher at 14 cents at the time of writing.

Why is the Dateline Resources share price is rocketing higher?

Investors have been bidding the Dateline Resources share price higher following the release of an update on its Colosseum Gold Mine in California, United States.

According to the release, the company has completed a review of US Geological Service (USGS) data in conjunction with the acquisition of the Colosseum Gold Mine.

However, rather than finding gold, the data review highlights coincident potassium and thorium radiometric anomalies on the southern end of the Colosseum mining claims. These anomalies cover an area of ~800m x 500m.

The company notes that the anomalies are of particular interest to the company given their close proximity to the Mountain Pass Rare Earth Mine, which has a similar potassium and thorium anomaly as the Colosseum.

Mountain Pass, which is owned by US$6 billion MP Materials Corp, is the only US producer of light and heavy rare earth elements that are used predominantly in EV batteries and high temperature electric motors.

Dateline Resources’ Managing Director, Stephen Baghdadi, commented: “Our focus is primarily on the gold potential at the Colosseum, however the USGS data provides a compelling case to incorporate rare earth element exploration into the upcoming field program at Colosseum.”

“Fieldwork is required to determine the significance of this thorium and potassium radiometric anomaly. We are along strike ~8km to the north of Mountain Pass Rare Earth mine and have similar geology and radiometric signatures which is very encouraging,” he added.

Following today’s gain, the Dateline Resources share price is now up 180% since the start of the year.

The post Why the Dateline Resources (ASX:DTR) share price is rocketing 150% higher appeared first on The Motley Fool Australia.

More reading

• Here’s why the Actinogen (ASX:ACW) share price is rocketing 13% today
• Down 99%, this ASX share could now be a bargain buy
• Sezzle (ASX:SZL) share price higher on Discover investment & partnership
• Here’s why the Proteomics International (ASX:PIQ) share price is halted
• Here’s why the Creso Pharma (ASX:CPH) share price is surging 15% higher

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.

from The Motley Fool Australia https://ift.tt/36CI2wc

There is an ASX share that’s almost completely wiped out its investors — but one fund manager thinks it could be a bargain buy now.

Collins St Value Fund portfolio manager Michael Goldberg, nominated it as his “out of the box idea” to buy shares in the conglomerate that owns; Donut King, Michel’s Patisserie, Gloria Jean’s Coffees, Brumby’s bakeries and Crust Pizza brands.

The trouble is, Retail Food Group Limited (ASX: RFG) stocks went for in excess of $7.50 in 2015 but now trade at 9 cents. That’s a 98.8% loss for those poor shareholders.

“This is a company that, due to historical factors, has left a bad taste in the mouth of many investors,” Goldberg posted on Livewire.

“Regulatory action being undertaken by the ACCC based on the historical treatment of franchisees and the closure of many shopping centres around the country throughout the COVID-19 pandemic haven’t helped matters either.”

Incredibly, the fund manager sees the share price at around 15 cents within the next 12 to 18 months. That would be a tidy 67% return.

There are 3 reasons for Goldberg’s conviction:

New management improving technology and franchise relations

The 2 biggest problems that pummelled Retail Food’s fortunes are now being reformed by a new executive team, according to Goldberg.

“Culture trumps strategy. For a long time, it was questionable if Retail Food Group were getting either right,” he said.

“But under the relatively new leadership of Peter George, positive, tangible changes have been made.”

The improvements include slimming down the store count from more than 2,500 in 2017 to now 850.

“This is important because the relentless growth pursued by the previous management teams saw far too many franchisees getting burned,” said Goldberg.

“Growth needs to be measured, sustainable and done in a way where all stakeholders get a fair slice of the financial pie.”

The current leadership also recognises the importance of technology to adapt to the modern world, especially during the COVID-19 pandemic.

“A classic example of this is the way in which Gloria Jeans pioneered drive-through coffee purchases at a time when cafes were under forced closure,” said Goldberg. 

“This strategy saw same-store sales actually increase by nearly 20% — offsetting the declining figures from those cafes that weren’t able to serve as many customers as usual due to social distancing requirements.”

The stock is soooooo cheap right now

Mathematically, Retail Food shares are a bargain, according to Goldberg.

The stock was trading at 7 cents when he made his comments.

“Earnings of 1 cent per share can be cheaply bought based on the 7 cent share price (P/E of 7) and look very favourably priced against other broadly comparable companies such as Domino’s Pizza Enterprises Ltd. (ASX: DMP) — 50x, Collins Foods Ltd (ASX: CKF) — 27x and, to an extent, Metcash Limited (ASX: MTS) — 15X.”

The fund manager reckons from here that earnings per share can grow at 15% per annum. There is even the “potential” for an 8% grossed-up dividend yield within the next 12 months.

“An obvious catalyst for a re-rating for the stock if ever there was one!”

It can’t get any worse

After such a horror half-decade, surely any further news can only be good news, argues Goldberg.

“After all, Australian’s love of a good pizza or a doughnut hasn’t changed over the last five years – it’s the investors who need convincing!”

While the current management is defending the company against the regulatory action from the consumer watchdog, it has signalled its intent to reform.

“They have made a genuine commitment to right the wrongs of the past and it is my view that any news will be good news in terms of settlement figures/timing.”

Once the legal proceedings are over, the executive can simply focus on growth, according to Goldberg.

“For some, this may be a difficult story to believe, particularly those who have been on the journey with RFG for some time,” he said.

“But the key ingredient in successful value investing is ‘being comfortable feeling uncomfortable’. After all, to earn what others don’t you have to be prepared to invest where others won’t!”

The post Down 99%, this ASX share could now be a bargain buy appeared first on The Motley Fool Australia.

More reading

• My biggest losers so far

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 recommended Collins Foods Limited and Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3krIvt8

The Sezzle Inc (ASX: SZL) share price is rebounding from yesterday’s huge selloff on Thursday morning.

At the time of writing, the buy now pay later (BNPL) provider’s shares are up a decent 3% to $8.40.

Why is the Sezzle share price sizzling today?

The catalyst for the rise in the Sezzle share price has been the release of a positive announcement this morning relating to Discover Financial Services.

Discover Financial Services is a digital banking and payment services company with one of the most recognised brands in U.S. financial services.

According to the release, Discover Financial Services has agreed to invest US$30 million into Sezzle, based on a per share purchase price of US$6.58 (AUD$8.83). While this represents an 11% premium to the Sezzle share price at the close of play on Wednesday, it is a modest discount to where its shares were trading prior to yesterday’s Apple-related selloff.

The shares will be issued to Discover via Sezzle’s existing placement capacity under Listing Rule 7.1. This means that the issue does not require shareholder approval. These shares are due to be issued early next week.

Expanded partnership

In addition to the investment, the two parties intend to enter into an expanded partnership. This includes plans for a buy now, pay later network solution on the Discover Global Network, as well as a dedicated referral program. This program will introduce Discover credit and debit products to Sezzle’s customer base.

Sezzle’s Executive Chairman and CEO, Charlie Youakim, was very pleased with the development. He commented: “We are excited about our relationship with Discover, as we believe our mission, vision, and values align.”

“Discover’s capabilities via their network and financial products will enhance our own offerings and provide more paths to financially empower our consumers,” he concluded.

Following today’s gain, the Sezzle share price is now up a sizeable 34% since the start of the year.

The post Sezzle (ASX:SZL) share price higher on Discover investment & partnership appeared first on The Motley Fool Australia.

More reading

• The Afterpay share price just had its worst day since February 2021. Here’s why
• ASX 200 rises, Afterpay sinks, Macquarie Telecom soars
• BNPL ASX share prices tumble as PayPal declares no BNPL late fees
• Why ASX BNPL shares like Afterpay, Zip, and Sezzle are sinking
• Why the Zip (ASX:Z1P) share price is down 10% on Wednesday

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.

from The Motley Fool Australia https://ift.tt/3xKBQ19

The Proteomics International Laboratories Ltd (ASX: PIQ) share price won’t be going anywhere today.

Shares in the biotech company were placed in a trading halt late yesterday.

Let’s take a look at why the company’s shares are at a halt and what it means for the Proteomics share price.

Proteomics share price halted on conference abstract

Securities in Proteomics were placed in a trading halt yesterday at the request of the company.

In a news release, the company noted that a trading halt was requested pending the release of the conference abstract.

Proteomics highlighted that the abstract outlines key findings from its second stage collaborative study to target treatment of diabetic kidney disease (DKD).

The abstract will be jointly presented by Janssen Research and Proteomics at the Australasian Diabetes Congress in mid-August.

Proteomics noted that the trading halt will remain until either a new announcement or until the commencement of trading on Friday, 16 July.

The Proteomics share price was last trading at 99.5 cents before entering a trading halt.

Snapshot of the Proteomics share price

Proteomics is a medical technology company that operates in predictive diagnostics and bioanalytical services. The company specialises in the area of proteomics which relates to the structure and function of proteins.

Proteomics’ business model revolves around the commercialisation of its flagship PromarkerD product. PromarkerD functions by using a blood test to detect early onset of DKD in patients with type 2 diabetes. According to Proteomics, early detection is key in reducing the need for expensive treatment at later stages of the disease.

In previous clinical trials, it was reported that PromarkerD had 86% accuracy in predicting the number of patients that would develop CKD.

Proteomics also uses its Promarker technology platform to create a pipeline of novel diagnostic tests. The company recently received ISO 13485 certification which provides the foundation for manufacturing requirements.

The Proteomics share price has performed strongly in 2021, trading more than 26% higher since the start of the year. On a 52-week timeline, the Proteomics share price is more than 112% higher.

The post Here’s why the Proteomics International (ASX:PIQ) share price is halted appeared first on The Motley Fool Australia.

More reading

• Here’s why the Creso Pharma (ASX:CPH) share price is surging 15% higher
• Here’s why the OceanaGold (ASX:OGC) share price is gaining today
• Canva valuation beats out Afterpay (ASX:APT), what’s next?
• 2 leading ASX 20 shares rated as buys
• Westpac (ASX:WBC) share price falls on broker downgrade

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 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.

from The Motley Fool Australia https://ift.tt/3yTHyxK

The Creso Pharma Ltd (ASX: CPH) share price has been a very strong performer on Thursday.

In early trade, the cannabis and psychedelics company’s shares are up 15% to 15 cents.

Why is the Creso share price surging higher?

Investors have been bidding the Creso Pharma share price higher this morning following the release of an update on an acquisition.

According to the release, the company has completed the acquisition of Canadian psychedelics company Halucenex Life Sciences following a period of due diligence.

Management believes the acquisition marks an important milestone, as it provides direct access to the emerging psychedelic-assisted psychotherapy (PAP) sector. It also notes that it unlocks a number of near term opportunities and access to additional lucrative market verticals.

Management highlights that there has been a growing body of evidence demonstrating that psychedelic medicines are safe and non-addictive when used in medical settings. In a number of clinical trials completed in recent years, psychedelic-assisted psychotherapy has produced some significant, long-lasting clinical outcomes for individuals living with mental health conditions.

It feels there is potential for psychedelic-assisted therapy to be commercialised as a safe and effective treatment which provides a solution to the growing global mental health crisis.

Management commentary

Creso’s Non-executive Chairman, Adam Blumenthal, was very pleased with the news.

He said: “Completing the acquisition of Halucenex is a major milestone for Creso Pharma and we will now pursue a number of near term value creation strategies through the subsidiary and in preparation of the proposed merger with Red Light Holland.”

“This acquisition has allowed Creso Pharma to emerge as a best-in-class provider of cannabis, cannabinoids and alternative psychedelics solutions to meet a large and unmet demand to improve mental health and wellbeing.”

Despite this strong gain, the Creso Pharma share price is still down 16% since this time last month. Concerns over the aforementioned proposed merger with Red Light Holland have been weighing heavily on the Creso Pharma share price.

The post Here’s why the Creso Pharma (ASX:CPH) share price is surging 15% higher appeared first on The Motley Fool Australia.

More reading

• Blazing it? How the top ASX cannabis shares performed in FY21
• Why the Creso Pharma (ASX:CPH) share price is zooming higher
• Why Coles, Creso Pharma, Ramelius, & Whitehaven Coal are tumbling lower
• Creso Pharma (ASX:CPH) share price sinks on Red Light Holland merger plans

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.

from The Motley Fool Australia https://ift.tt/3klxtWC

The OceanaGold Corp (ASX: OGC) share price is gaining this morning after the company announced its Didipio Mine’s Financial or Technical Assistance Agreement (FTAA) has been renewed for another 25-year period. OceanaGold also released an operations update.

Shares in OceanaGold are currently trading for $2.52 – 2.44% more than at market’s close yesterday.

Let’s take a look at today’s news from the gold mining company.

The news driving the OceanaGold share price

Didipio Mine

The OceanaGold share price looks like it’s in for a good day after the company announced the Philippine Government has renewed the Didipio Mine’s Financial or Technical Assistance Agreement (FTAA) for another 25 years.

Didipio is a gold and copper mine. Work at the mine is currently halted as the company prepares to rehire and train its workforce.

Some of the FTAA’s renewed terms include:

• OceanaGold must invest an additional 1.5% of the mine’s revenue into community development.

• The company must list at least 10% of OceanaGold Philippines Inc’s ordinary shares on the Philippine Stock Exchange within the next 3 years. OceanaGold Philippines is a subsidiary of the company.

• Additionally, OceanaGold Philippines must offer at least 25% of the gold it produces to the Philippine Central Bank for a fair market price.

The OceanaGold share price might be one to watch in the near term, as the company plans to announce more details on the Didipio Mine’s production resumption in due time.  

It hopes to restart its milling operations soon, using the 19 million tonnes of ore it has stockpiled.

Once work at the mine begins, OceanaGold predicts it will reach full capacity within 12 months. The mine’s expected to produce around 10,000 ounces of gold and 1,000 tonnes of copper each month at first quartile.

Commentary from management

OceanaGold’s president and CEO Michael Holmes said of the news:

We are pleased to confirm the renewal of the Didipio Mine’s FTAA and thank the Philippine Government for their endorsement… We look forward to commencing restart activities and continuing to work in partnership with our regulators, communities, employees, and all stakeholders to contribute to the Philippines’ post-COVID-19 economic recovery.

Operational update

Also likely affecting the OceanaGold share price is news the company expects all its operational mines to reach their 2021 production guidance.

OceanaGold’s US operation, Haile, is on track to hit its 2021 production guidance of 150,000 to 170,000 ounces of gold.

However, the mine’s production costs have increased and it’s yet to meet the company’s expectations. As a result, OceanaGold is conducting a review of the operation.

News the company’s New Zealand-based operations are tracking in line with their 2021 production guidance could also be boosting the OceanaGold share price.

The Waihi Gold Mine’s production guidance was between 35,000 and 45,000 ounces of gold.

Macreas Gold Mine’s guidance was 155,000 to 165,000 ounces of gold.

OceanaGold share price snapshot

It has been a rough year so far for the OceanaGold share price. It’s currently 5.9% lower year to date. It has also fallen 23% since this time last year.

The company has a market capitalisation of around $1.7 billion, with approximately 704 million shares outstanding.

The post Here’s why the OceanaGold (ASX:OGC) share price is gaining today appeared first on The Motley Fool Australia.

More reading

• Canva valuation beats out Afterpay (ASX:APT), what’s next?
• 2 leading ASX 20 shares rated as buys
• Westpac (ASX:WBC) share price falls on broker downgrade
• These ASX shares are the latest buy ideas from top brokers
• Woodside (ASX:WPL) share price lower on Q2 update

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

from The Motley Fool Australia https://ift.tt/3B7iwNy

It seems like only a few months ago that Canva was raising capital and fetching a US15 billion ($20 billion) valuation, and that would be because it was. Now the graphic design platform is back at it again with an eye-watering valuation.

According to reports, the company is tapping investors for US$71 million in its latest funding round.

Canva valuation would put it in ASX 20

There is no doubt Canva’s valuation rise is nothing short of meteoric. Towards the end of 2019, the company commanded a valuation of US$3.2 billion. Since then, multiple funding rounds have seen its valuation jump to US$6 billion last year, and US$15 billion a few months ago.

In April, the company raised US$71 million in funding from big-name institutional investors such as T. Rowe Price, Blackbird Ventures, and Dragoneer. At this stage, the participants of Canva’s latest funding round are not known.

If the rumours are correct, the company’s latest funding round would value the company at US$30 billion ($40 billion). That would put Canva within the top 20 companies in the S&P/ASX 200 Index (ASX: XJO).

Specifically, it would be placed in fifteenth – right after commercial property operator Goodman Group (ASX: GMG) and above fellow Aussie tech darling, Afterpay Ltd (ASX: APT).

However, unlike the abovementioned companies, Canva is not listed on the ASX. Surprisingly, there has been little to indicate the co-founders’ (Melanie Perkins and Cliff Obrecht) plan on taking it public anytime soon.

Growth in numbers

The sky-high valuations are being backed by the company’s rapid growth metrics. For instance, monthly active users were said to have doubled in April to 55 million.

Looking at the platform’s web traffic, total visits have increased ~29% from 194.5 million in January 2021 to 251 million in June 2021. Those figures exhibit a continuation of growth at scale.

The post Canva valuation beats out Afterpay (ASX:APT), what’s next? appeared first on The Motley Fool Australia.

More reading

• The Afterpay share price just had its worst day since February 2021. Here’s why
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, Afterpay sinks, Macquarie Telecom soars
• BNPL ASX share prices tumble as PayPal declares no BNPL late fees
• Why ASX BNPL shares like Afterpay, Zip, and Sezzle are sinking

Motley Fool contributor Mitchell Lawler owns shares of AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3xIE0OK

Some of the S&P/ASX 20 Index (ASX: XTL) shares are rated as buys by leading analysts and they may be able to produce returns.

Businesses in the ASX 20 are some of the largest in the country. Some of those companies include ones like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

But analysts really like these ASX shares from the ASX 20:

Goodman Group (ASX: GMG)

Goodman Group is a property business with operations throughout Australia, New Zealand, Asia, Europe, the United Kingdom, North America and Brazil. It’s the largest industrial property group on the ASX and one of the world’s largest listed specialist investment managers of industrial property and business globally. Goodman has an integrated strategy of owning, developing and managing property.

It’s currently rated as a buy by the broker Morgan Stanley with a price target of $23.

Goodman is a very large business. At 31 March 2021, it had $52.9 billion of total assets under management. It experienced 3.3% like for like net property income (NPI) growth in managed partnerships. The occupancy rate across the partnerships was 98%.

The ASX 20 share is working on a pipeline of big projects. At 31 March 2021, it had $9.6 billion of development work in progress.

The property business is expected to changing client and customer demand. It says:

Changing consumption trends across the physical and digital spaces are fundamentally impacting demand. In response, Goodman is developing new space particularly through multi-storey and higher intensity buildings within our urban locations.

Goodman is expecting to generate double digit operating profit growth in FY21. Operating profit is expected to be $1.2 billion, representing earnings per share (EPS) growth of 12% on FY20.  

Xero Limited (ASX: XRO)

Xero is one of the world’s largest software accounting businesses. Its offering is through the cloud, which means that users have great flexibility in how and where they access their numbers and business. The ASX 20 share also has numerous efficient and useful automated tools to save time for accountants and business owners.

It’s currently rated as a buy by Morgan Stanley.

The ASX 20 share has been growing at a fast pace for a number of years. It has grown beyond Australia and New Zealand. Xero now has a global subscriber base of more than 2.7 million. The UK is a particularly large revenue base for Xero, with more than 720,000 subscribers. North America has more than 285,000 subscribers. There are more than 175,000 subscribers across the rest of the world, in places such as South Africa and Singapore.

Xero has a very high gross profit margin of 86%. That means that 86% of new revenue can fall to the next profit line.

The company is seeing the benefits of long-term subscribers who love its services and productivity. In FY21, Xero’s 20% subscriber growth contributed to a 17% increase in annualised monthly recurring revenue (AMRR) to $963.6 million. Xero explained that growing awareness among small businesses of the benefit of digital tools and cloud technologies contributed to lower churn and a 38% increase in total lifetime value to $7.65 billion.

The post 2 leading ASX 20 shares rated as buys appeared first on The Motley Fool Australia.

More reading

• 2 excellent ASX shares that could be buy and hold options
• 2 ASX 200 blue chip shares tipped as buys
• Ansarda (ASX:AND) share price surges on record quarter
• How did the S&P/ASX All Technologies Index (XTX) perform in FY21?
• Are the 10 highest paid ASX 200 CEOs worth their paypackets?

from The Motley Fool Australia https://ift.tt/3irKZWb

The Westpac Banking Corp (ASX: WBC) share price is under a spot of pressure on Thursday morning.

In morning trade, the banking giant’s shares are down 0.5% to $25.15.

Why is the Westpac share price edging lower?

The weakness in the Westpac share price today appears to have been driven by a broker note out of Bell Potter this morning.

According to the note, the broker has downgraded Westpac shares to a hold rating with an improved price target of $26.50.

Based on the latest Westpac share price, this price target implies upside of 5.3% excluding dividends.

Including the fully franked 4.4% dividend yield the broker is forecasting, the total potential return stretches to almost 10%.

What did the broker say?

Bell Potter increased its price target on the Westpac share price to reflect upgrades to the broker’s earnings estimates. These estimates were increased largely due to a large jump in impairment benefits.

The broker explained: “The revisions are due to slightly higher NIE (although offset by a 3bp fall in NIM to around 2.06% between 1H21 and 2H21), higher other income (+22%/+28% over the respective years mainly from higher fees), higher operating expenses (the main one being in FY21 at +9% to $11.9bn largely due to one-off costs, and tapering down to 4% in the coming years), a large jump in impairment benefits to $255m as the recovery continues (and then down to charges again as the recovery ceases) and resulting income tax expense using 30% income tax rate.”

However, despite this and the increase to its earnings estimates, the potential return on offer isn’t enough for Bell Potter to recommend Westpac shares as a buy anymore.

“While the valuation is increased by $4.00 to $26.50 (previously $22.50), we have opted for a Hold rating at present (being a TSR of only 8.2%). WBC’s outlook will be reassessed following finalisation of CET1 capital rules,” it concluded.

The post Westpac (ASX:WBC) share price falls on broker downgrade appeared first on The Motley Fool Australia.

More reading

• CBA (ASX:CBA) share price outperformed Westpac over the past 3 months
• ASX 200 rises, Afterpay sinks, Macquarie Telecom soars
• Why are ASX 200 bank shares in focus on Wednesday?
• Broker warns that small lenders are set to beat ASX bank shares
• Humm (ASX:HUM) share price dips despite deal with Westpac NZ

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.

from The Motley Fool Australia https://ift.tt/3B5vSd9

New COVID-19 Delta cases across the country are clouding the ASX bull market, but this could be an opportunity to pick up the latest buy ideas from leading brokers.

The S&P/ASX 200 Index (Index:^AXJO) started the trading day with a 0.1% dip as investors weigh up the latest infections in Victoria and South Australia.

But as with other outbreak scares, any sell-down in the market has given investors a chance to buy the dip.

Good pickings for value investors

Those hunting for such opportunities may want to put the Nufarm Ltd (ASX: NUF) share price on their watchlist.

The seed and crop protection supplier just got upgraded to “buy” from “hold” by Bell Potter.

“Since reporting a stronger than expected 1H21 result, but cautious guidance, the share price of NUF has retraced ~20% from its high,” said the broker.

“However, in general, crop condition have [sic] remained favourable.”

ASX shares upgraded to “buy” on appealing valuation

There are no areas of concern in Nufarm’s key market in Europe. Australia is also looking positive with good soil moisture supporting forecasts that our winter crops will be the best in 20 years.

Meanwhile, the Australian dollar is poised to give the Nufarm share price an extra boost.

“80-85% of FY20-21e crop protection earnings are generated in currencies other than the AUD,” said Bell Potter.

“Since reporting 1H21 the AUD has weakened against the majority of NUF’s functional currencies (USD, EUR & GBP).”

The broker’s 12-month price target on the Nufarm share price is $5.30 a share.

Latest ASX shares to buy in the tech space

Meanwhile, the Nextdc Ltd (ASX: NXT) share price could also find favour. Wilsons initiated coverage on the datacentre operator with an “overweight” recommendation and $15.10 a share price target.

That leaves the NextDC share price with a near 30% upside!

The broker lists a few reasons why its bullish on the shares. The first is accelerating demand, which is helped by COVID-19.

Reasons to buy the NextDC share price

There’s also the belief that NextDC’s second-generation assets will contribute strongly to revenue growth from FY21 onwards.

The scale of the group’s new generation datacentres is also larger than existing facilities. That could mean improved profitability along with revenue.

Just as importantly, Wilsons noted management’s impressive track record.

“Over the past decade, NXT has created a solid track record of consistently meeting or beating its original or upgraded guidance in Australia, which is in the top 10 fastest growing digital infrastructure markets globally,” added the broker.

The post These ASX shares are the latest buy ideas from top brokers appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are 3 of the most heavily traded ASX 200 shares today
• ASX 200 rises, Afterpay sinks, Macquarie Telecom soars
• Broker warns that small lenders are set to beat ASX bank shares
• ASX 200 midday update: Afterpay & Zip sink, Orocobre rises on broker upgrade

Motley Fool contributor Brendon Lau owns shares of Nufarm Limited. Connect with me on Twitter @brenlau.

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.

from The Motley Fool Australia https://ift.tt/3hB44Wt