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While the S&P/ASX 200 Index (ASX: XJO) is managing to stay in the green this afternoon, bank shares are certainly not helping it. In fact, 2 out of the big 4 ASX-listed banks are in negative territory in late trading.

The weakness in the financial sector follows reports of a possible additional $700 million in COVID-19 loan impairments.

Let’s have a closer look at the details.

Lagging lockdowns might damage ASX 200 rebound

Rewind a few months back and ASX bank shares were announcing the writeback of credit impairment charges. This was reflecting an improvement in the outlook of possible COVID-19 impacts.

However, since then, a third of Australia entered lockdown for a period and Sydney continues to grapple with a surge in cases.

The latest estimate of economic damage from Greater Sydney’s extended lockdown tips $7 billion, according to AMP Capital’s Chief Economist Shane Oliver. This would be the case if the lockdowns were drawn out for an additional four weeks.

Consequently, Head of Research for Morgan Stanley Richard Wiles is expecting banking constituents of the ASX 200 to be more conservative with releasing provisions. The bank analyst is forecasting the big 4 to book $700 million worth of impairments for the June quarter.

We don’t think the Sydney lockdown will lead to higher individual provision charges in the June quarter, although we expect the banks to take a more conservative approach to provision releases.

The financial hardship inflicted by the recent COVID resurgence has resulted in further government support for NSW. Both the Federal and state governments have joined in offering support for businesses and impacted employees.

Comparing between the ASX big 4 bank shares

According to Morgan Stanley, Westpac Banking Corp (ASX: WBC) could report the largest impairments for the quarter at $200 million. Meanwhile, National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Grp Ltd (ASX: ANZ) are forecast to fare the best, with impairments of $150 million each. Finally, the broker expects the Commonwealth Bank of Australia (ASX: CBA) to report $177 million in impairments.

The ASX 200’s largest bank share will be the first to report, with full-year results slated for August. Comparatively, the other banks will likely deliver quarterly updates ahead of closing out the September quarter.

The post Why are ASX 200 bank shares in focus on Wednesday? appeared first on The Motley Fool Australia.

More reading

• Broker warns that small lenders are set to beat ASX bank shares
• How is the NAB share price reacting to the possible Citi buyout today?
• What to consider before investing in blue-chip ASX shares
• ASX 200 midday update: Afterpay & Zip sink, Orocobre rises on broker upgrade
• Humm (ASX:HUM) share price dips despite deal with Westpac NZ

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. 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 V-shape residential market recovery has sent ASX bank share prices rallying, but Citigroup believes you should be banking on their smaller ASX rivals instead.

This is because ASX big bank shares aren’t as leveraged to the housing market as non-bank financial institutions (NBFIs).

That’s grim news for ASX banks as the sector has outperformed on the housing rebound.

ASX banks’ outperformance is coming back to bite them

The Commonwealth Bank of Australia (ASX: CBA) share price, Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price, National Australia Bank Ltd. (ASX: NAB) share price and Westpac Banking Corp (ASX: WBC) share price have beaten the S&P/ASX 200 Index (Index:^AXJO) over the past year.

Their big rally leaves them more vulnerable to bad news even though their operating environment appears bullish.

Rising house prices are usually a tailwind for the sector. But this time is different as the rebound is driven by record low mortgage rates, noted Citigroup.

Why emerging lenders are better buys than ASX banks

“Despite recent investor fears, lenders have plentiful cheap funding to maintain these record low rates, but housing affordability is set to slow house prices,” said the broker.

“Loan demand is broadening. However, this spells trouble for Major Bank revenue growth, which is expected to be lower than previous cycles.

“NBFIs, fuelled by rising borrower demand and falling funding costs, can drive ~7% revenue growth, to lead the sector.”

In contrast, Citi is forecasting around a 5% increase in revenue for ASX bank shares, which is lower than previous cycles.

ASX NBFIs trading at an unwarranted discount

Despite the superior revenue growth profile for NBFIs, these ASX shares trade at a discount to ASX banks. Citi believes this presents a unique opportunity for investors.

“The NBFIs are expected to be the ultimate beneficiaries of the recent up-cycle in house prices,” said the broker.

“At an average ~12x PE [price-earnings], below the Major Banks (~16x) and Regional Banks (~14x), the NBFIs are not currently reflecting their mortgage revenue growth prospects.”

Shares to buy over ASX banks

Citi’s two favourite NBFIs are the Liberty Financial Group Ltd (ASX: LFG) share price and Australian Finance Group Ltd (ASX: AFG) share price.

The broker upgraded its FY22 and FY23 cash earnings estimate for both ASX shares by 5% to 8%, each.

This isn’t to say that the outlook for ASX bank lenders is grim. If anything, the Macquarie Group Ltd (ASX: MQG) share price is a standout due to its strong deposit base.

However, Citi pointed out that the Macquarie share price is looking fully valued at current levels.

The post Broker warns that small lenders are set to beat ASX bank shares appeared first on The Motley Fool Australia.

More reading

• How is the NAB share price reacting to the possible Citi buyout today?
• The Orocobre (ASX:ORE) share price hit an all-time high today
• What to consider before investing in blue-chip ASX shares
• ASX 200 midday update: Afterpay & Zip sink, Orocobre rises on broker upgrade
• Humm (ASX:HUM) share price dips despite deal with Westpac NZ

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, Macquarie Group Limited, National Australia Bank Ltd. and Westpac Banking Corporation. 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 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 Splitit Ltd (ASX: SPT) share price isn’t having a great day today. That is unless you compare its falls to those of other ASX BNPL (buy now, pay later) shares such as Afterpay Ltd (ASX: APT) or Zip Co Ltd (ASX: Z1P).

Right now, Splitit shares have fallen 3.6% today to trade at 54 cents.

But that pales when compared with the fact that Afterpay and Zip shares are both currently down by around 10% following news of Apple Inc‘s foray into the BNPL sector. Additionally, Paypal Holdings Inc has released some news that’s likely impacting ASX BNPL shares today.

Yet somehow, the Splitit share price appears to be getting away comparatively unscathed.

Big boys hit the sector

Today, news Apple is creating its own BNPL offering has hit the market.

The tech giant is reportedly teaming up with Goldman Sachs to create the service, which will follow the traditional BNPL format of 4 payments over 8 weeks or several months.

Paypal has also been in the headlines today. As the Australian Financial Review reported, the payment provider has today officially launched its own no-fee BNPL service to Australian customers.

The two renowned companies have shaken up the sector, and most ASX BNPL shares are seeing their values plummet.

So why is the Splitit share price not suffering to quite the same extent as some of its counterparts?

What’s going on with Splitit?

Perhaps, the better-than-expected day for the Splitit share price could have something to do with its previous misfortunes.

Zip and Sezzle Inc (ASX: SZL) shares have gained 33% and 28% respectively year to date, while the Afterpay share price has fallen by around 10%.

On the other hand, the Splitit share price has plunged almost 59% year to date. Perhaps some investors are feeling this particular BNPL share has already been sufficiently sold off.

Additionally, Splitit may be faring somewhat better than its cohort due to its smaller market capitalisation. The company’s $260 million market cap is significantly less than Afterpay, Zip and Sezzle, which are all currently valued in the billions.

Also worth noting, is the fact that Splitit’s business model isn’t a traditional BNPL service. Unlike other BNPL services, which pay for an item up front and charge customers in instalments, Splitit allows its users to pay using their own credit or debit cards.

Splitit holds the remaining balance of a purchase on the card used in the transaction. Therefore, if a customer fails to pay, it simply charges the card.

Splitit share price snapshot

Despite today’s falls not being as bad as they could be, they are still unwelcome news for Splitit shareholders.

The Splitit share price has now fallen more than 66% in 12 months. It has also dropped by around 15% in the last 30 days alone.

The post Why isn’t the Splitit (ASX:SPT) share price tumbling as much as other BNPL shares? appeared first on The Motley Fool Australia.

More reading

• BNPL ASX share prices tumble as PayPal declares no BNPL late fees
• Why the Splitit (ASX:SPT) share price is pushing higher today
• Splitit (ASX:SPT) share price slips despite new partnership
• Splitit (ASX:SPT) share price higher on US update
• These ASX shares just sank to 52-week lows

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. owns shares of and has recommended AFTERPAY T FPO, Apple, PayPal Holdings, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Apple and PayPal Holdings. 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Galaxy Resources Limited (ASX: GXY)

According to a note out of Ord Minnett, its analysts have upgraded this lithium miner’s shares to a buy rating with an improved price target of $4.80. The broker made the move on the belief that lithium prices will be strong in the near term thanks to growing demand and a potential market deficit. In addition to this, the broker sees Galaxy as particularly well-positioned to benefit thanks to its upcoming merger with Orocobre Limited (ASX: ORE). The Galaxy share price is $4.12 this afternoon.

Nearmap Ltd (ASX: NEA)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $3.20 price target on this aerial imagery technology and location data company’s shares. This follows an update this week from Nearmap which revealed that it expects to outperform its guidance in FY 2021 thanks to a better than expected performance by its North American business. The Nearmap share price is fetching $2.24 on Wednesday.

ResMed Inc. (ASX: RMD)

Analysts at Credit Suisse have retained their outperform rating and lifted their price target on this medical device company’s shares to $37.00. According to the note, the broker believes ResMed has a significant opportunity to increase its market share following Philips’ DreamStation recall. Especially given that Philips will be unable to service new patients while it replaces its current installed base. Credit Suisse estimates that this could boost ResMed’s share of the global CPAP market to 65%. The ResMed share price is trading at $33.50 this afternoon.

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

More reading

• The Orocobre (ASX:ORE) share price hit an all-time high today
• ASX 200 midday update: Afterpay & Zip sink, Orocobre rises on broker upgrade
• Behind the Nearmap share price surge, upgrades for Rio and BHP. Scott Phillips on Nine’s Late News
• Why the Nearmap (ASX:NEA) share price is up 20% in a month
• 2 ASX 200 blue chip shares tipped as buys

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. 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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It’s a sea of red for buy now, pay later (BNPL) ASX share prices on Wednesday.

The largest BNPL ASX companies including Afterpay Ltd (ASX: APT), Zip Co Ltd (ASX: Z1P) and Sezzle Inc (ASX SZL) have seen their share prices tumble 9.59%, 10.77% and 10.03% respectively.

Smaller players such as Openpay Group Ltd (ASX: OPY), Laybuy Holdings Ltd (ASX: LBY) and Splitit Payments Ltd (ASX: SPT) are also struggling, sliding 4.95%, 4.76% and 4.05% respectively.

Headlining the slump in BNPL ASX share prices is news that Apple Inc (NASDAQ: APPL) might be launching a new BNPL service to the market.

However, to add further insult to injury, PayPal Holdings Inc (NASDAQ: PYPL) has revealed that it will not charge late payment fees for its BNPL services.

Another stab at BNPL ASX share prices

PayPal successfully launched its BNPL feature in the United States late last year. It would then reveal plans to roll out in Australia by early June 2021.

The announcement first came about on 9 March when BNPL ASX share prices such as Afterpay’s tumbled 5.29% on the day.

Fast forward to today, PayPal has upped the ante by saying it will not charge late payment fees.

The Australian Financial Review (AFR) quotes PayPal Australia’s head of payments Andrew Toon:

“PayPal research of its online shoppers showed high awareness of buy now, pay later options, but more than 50 per cent said they had not used them… and many of them were put off by late fees and we are genuinely responding to that”.

By comparison, Afterpay automatically charges an initial $10 late fee and a further $7 if the payment remains unpaid 7 days after the due date.

In FY20, Afterpay generated $68.8 million from late fees, or 13.7% of the company’s total income.

PayPal will also undercut Afterpay’s merchant fees, with the AFR reporting PayPal will levy a fee of 2.6% of the cost of goods plus 30 cents, compared to Afterpay’s 3.9% plus 30 cents.

Foolish takeaway

Mounting competition is nothing new to the BNPL sector.

Back in 2016, MasterCard revealed its own BNPL product, MasterCard Installments, which it spruiked as an “innovative way to pay that offers consumers flexible and convenient access to funds when needed”.

In late 2020, JPMorgan made its entrance into the booming BNPL space, giving its credit card customers an option to pay through instalments with no interest.

However, today’s news sees a US$2.4 trillion giant, that is Apple, potentially enter the space — as well as payments behemoth PayPal revealing an edge against ASX BNPL players.

The post BNPL ASX share prices tumble as PayPal declares no BNPL late fees appeared first on The Motley Fool Australia.

More reading

• Why ASX BNPL shares like Afterpay, Zip, and Sezzle are sinking
• What to consider before investing in blue-chip ASX shares
• Why Afterpay, PointsBet, Webjet, & Zip shares are sinking
• ASX 200 midday update: Afterpay & Zip sink, Orocobre rises on broker upgrade
• Why the Zip (ASX:Z1P) share price is down 10% on Wednesday

Motley Fool contributor Kerry Sun 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, Apple, PayPal Holdings, and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Apple and PayPal Holdings. 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 Macquarie Telecom Group Ltd (ASX: MAQ) share price broke its all-time high for the fifth successive day after announcing a new data centre and reaffirming its earnings guidance for the last financial year.

At the time of writing, shares in the telco are trading at their high of $61.79 – up 12.33%.

Let’s take a closer look at today’s news.

Why the Macquarie Telecom share price is flying

In a statement to the ASX, Macquarie Telecom confirmed its earnings before interest, taxes, depreciation, and amortisation (EBITDA) for FY21 will be between $72 million and $75 million. This was previously announced and is an increase of up to 15% on FY20.

Investors are clearly loving the news, judging by the jump in the Macquarie Telecom share price.

Only yesterday, Motley Fool Australia reported on Macquarie Telecom breaking its previous all-time high. Yesterday, it was growing 3x faster than Telstra Corporation Limited (ASX: TLS) – today it’s growing 4.5x faster.

In other news possibly affecting the Macquarie Telecom share price, its subsidiary – Macquarie Data Centres – has lodged a State Significant Development Application to build a new data centre at the Macquarie Park Data Centre Campus. The new data centre will be called “IC3 Super West” and will be the largest data centre on the campus.

IC3 Super West will also house the “Sovereign Cyber Security Centre of Excellence” with support from Investment NSW.

In its most recent half-year results, data centres compromised 25.5% of all revenue but grew at less than half the rate of overall revenue.

CEO of Macquarie Telecom Group David Tudehope says the new centre will be good for the whole country, not just the company.

“This global-scale data centre campus will attract new investment into Australia from multinationals looking to expand in the Asia Pacific region.”

Macquarie Telecom share price snapshot

Over the past 12 months, the Macquarie Telecom share price has increased 35%. Just in the last month, shares in the company have increased by 17% and are up 15% year-to-date.

Macquarie Telecom has a market capitalisation of approximately $1.2 billion.

The post Macquarie Telecom (ASX:MAQ) rockets 12% to new all-time high appeared first on The Motley Fool Australia.

More reading

• This ASX telco grew 3 times faster than the Telstra (ASX:TLS) share price
• Is your money safe in Telstra (ASX:TLS) shares right now?
• Why Telstra (ASX:TLS) and this dividend share could be buys
• ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat
• 2 high yield ASX dividend shares that could be buys

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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We had some big news from National Australia Bank Ltd. (ASX: NAB). As my Fool colleague covered earlier today, the ASX big four bank yesterday confirmed speculation that it is looking at acquiring the Australian arm of the banking giant Citigroup.

NAB said that it “confirms it is in discussions with Citigroup about the potential acquisition of its Australian Consumer business”. At the time of writing, the markets seem a little nonplussed. The NAB share price is currently down 0.15% to $26.20.

But NAB is clearly interested in Citigroup’s Australian assets. Why? Well, the bank stated that “NAB regularly assesses opportunities to acquire businesses that support its growth strategy in core banking markets.”

So who is Citigroup? And what would it bring to NAB’s table?

NAB nabs Citigroup?

Citigroup is a US bank, headquartered in New York City. It’s listed on the US markets under Citigroup Inc (NYSE: C). It currently has a market capitalisation of US$141.32 billion ($189.44 billion). In contrast, NAB’s market capitalisation is currently $86.33 billion. Citi currently offers all of the mainstream banking products you would expect in Australia, such as credit cards, loans, mortgages, foreign currency accounts, term deposits, and of course, bank accounts.

It’s these assets that NAB would presumably acquire if these “discussions” bear fruit.

So what would Citi’s Australian assets do for NAB?

Well, according to a report in the Australian Financial Review (AFR) today, the benefits would be threefold:

[NAB] reckons Citi’s consumer business can help grow its retail book, it likes the look of Citi’s expertise in unsecured lending and it would fit with CEO Ross McEwan’s simple and digital strategy.

The report also flags that NAB is set to pay roughly $2 billion to acquire Citi’s Australian assets. But what exactly are these assets? Well, the report reckons Citi has around $11.5 billion worth of “total residents loans and finance leases in Australia”. This includes around $6.6 billion in mortgages and property loans, and another $3.6 billion in credit card loans. All areas that NAB already has extensive experience in.

So it looks as if these assets will ‘bolt on’ to NAB’s existing asset books fairly easily.

Is the NAB share price a buy right now?

One broker who is liking what they are seeing with NAB right now is investment bank Goldman Sachs. Goldman currently has a ‘buy’ rating on NAB shares, with a 12-month share price target of $29.97 a share. That implies a potential upside of 14.5%, not including dividend returns.

Although this recommendation doesn’t yet take this latest piece of news into account, Goldman is still bullish on the ASX bank due to anticipated growth in mortgage credit over the rest of the year.

The post How is the NAB share price reacting to the possible Citi buyout today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Afterpay & Zip sink, Orocobre rises on broker upgrade
• NAB (ASX:NAB) share price on watch after confirming Citi acquisition interest
• 5 things to watch on the ASX 200 on Wednesday
• Top brokers name 2 ASX dividend shares to buy today
• Why the NAB (ASX: NAB) share price has jumped today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Weebit Nano Ltd (ASX: WBT) share price is flying more than 11% higher today.

Investors are jumping for shares in the memory technology company after it released an announcement earlier today.

Let’s take a look at what Weebit announced and why investors are getting excited.  

Weebit share price jumps on module completion

Earlier today, Weebit announced that it has completed the design of its embedded ReRAM module.  

In addition, the company also completed verification stages and taped out (released to manufacturing) a test-chip integrating the module.

Weebit highlighted the integrated test-chip will be used as the final platform for testing and qualification. Following testing, the company expects customer production to be the next step.

Weebit’s CEO Coby Hanoch noted;

“We implemented the module in an intelligent way, developing unique patent-pending analog and digital smart circuitry that significantly enhances the array’s technical parameters including speed, retention, and endurance.”.

Weebit’s management noted the milestone development will allow the company to demonstrate a functioning ReRam product to consumers.

The company’s new memory module will provide a foundation for Weebit’s future ReRAM compiler. Weebit expects to have its first silicon of the embedded ReRAM module by the end of this year. Full qualification of the module is expected by mid-2022.

Snapshot of the Weebit share price

Weebit develops next-generation memory technology for the global semiconductor industry. The company’s flagship ReRam technology is based on silicon oxide which allows semiconductor memory elements to be cheaper, faster and more energy-efficient.

Weebit says the company’s ReRam is 1000 times faster and uses 1000 times less power than current flash memory. The technology has been designed to provide memory solutions for computers, laptops and smartphones.

At the time of writing. the Weebit share price is trading roughly 9.5% higher at around $1.96. Shares in the tech company were charging more than 11% higher earlier after hitting an intra-day high of $2.00.

Overall, the Weebit share price has been all over the place in 2021. Including today’s price action, the Weebit share price remains 21% lower for the year-to-date.

Shares in Weebit have been sold off after they bolted to an all-time high of $4.27 earlier this year. Investors began dumping shares in Weebit following weak financial results and accusations of market manipulation.

The post Here’s why the Weebit (ASX:WBT) share price is flying 11% higher today appeared first on The Motley Fool Australia.

More reading

• Here are the 5 best performing ASX tech shares from FY21
• Why has the Weebit (ASX:WBT) share price jumped 9% today?
• Why the Weebit Nano (ASX:WBT) share price is rocketing 15%

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.

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The Tesserent Ltd (ASX: TNT) share price has rallied strongly in the last month, surging 40% to a five-month high of 30 cents.

Tesserent provides full service cyber security solutions with a focus on government, critical infrastructure, and financial services markets.

Despite Tesserent shares making a comeback in the new financial year, the company has not released any market sensitive news since its third quarter update on 29 April.

While the company might be quiet in terms of news, there is plenty going on in the cyber security space.

Let’s take a look at other factors that might be driving the Tesserent share price.

Government cyber security tailwinds

Tesserent might be riding the Australian Government’s commitment to boost cybersecurity capabilities.

Back in August 2020, Prime Minister Scott Morrison announced a $1.67 billion investment over the next decade to protect Australia’s digital economy.

On Tuesday, Minister for Home Affairs Karen Andrews released a discussion paper consulting on cyber security reforms.

According to the release, “reforms under consideration include stronger cyber security standards for the digital economy, more transparent information about cyber security, and stronger legal remedies for consumers.”

“This process will build on the measures the Government is already delivering to help businesses improve their cyber security, including the $8.3 million Cyber Security Connect and Protect Program to uplift the cyber security of small and medium businesses and $70.3 million Cyber Security Skills Partnership Innovation Fund to grow Australia’s cyber security workforce.”

In addition, the consultation comes after a report from the Australian Institute of Criminology flagging the total economic impact of cybercrime on the Australian economy at $3.5 billion.

Tesserent hits turnover milestone

Last month Tesserent advised that it will “comfortably” exceed its prior ambition to achieve an annualised turnover run rate of $150 million.

The company upgraded its annualised turnover guidance to $180 million.

The upbeat news was delivered on 22 June. That day its shares surged 26% from 20.5 cents to 26 cents.

Tesserent share price still playing catch up

The Tesserent share price is still down around 15% year to date, despite upbeat announcements such as the company’s third quarter update and annualised turnover run rate upgrade.

However, looking at its performance over the last 12 months, the cyber security company has seen its valuation surge nearly 269%.

The post Why the Tesserent (ASX:TNT) share price has leapt 40% in a month appeared first on The Motley Fool Australia.

More reading

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• Boral (ASX:BLD) share price falls as Seven’s hold nears 50%
• The Orocobre (ASX:ORE) share price hit an all-time high today
• Why the Infinity Lithium (ASX:INF) share price is skyrocketing 17% today
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Motley Fool contributor Kerry Sun 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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Shares in Boral Limited (ASX: BLD) are in the red today as Seven Group Holdings Ltd (ASX: SVW) gets closer to owning half of Boral’s shares. Right now, the Boral share price is 0.54% lower than its previous close, with shares in the company swapping hands for $7.36.

At the same time, the Seven Group share price is flying higher. It’s currently $22.82 – 3.35% more than yesterday’s close.

The investment group’s takeover bid for Boral is set to close at 7 pm tomorrow. However, it’s starting to look like it will be extended once more.

Additionally, Boral finished its on-market share buy-back this morning, which may be affecting its share price as its shares won’t be further concentrated.  

Let’s take a look.

The latest news on Seven Group’s takeover bid

Today, ASX announced that Seven Group now owns 48.41% of all outstanding shares in Boral.

Thus far, Seven Group has managed to convince the owners of more than 534 million Boral shares to part ways with their holdings in the construction supplies company.

If Seven Group manages to get a hold of 1.59% more of Boral’s shares, its takeover bid will be extended again.

Seven Group’s holding in Boral has increased by around 4% every day this week.

The takeover was previously extended after Seven Group upped the amount it was willing to pay for Boral shares to $7.30 apiece, and $7.40 apiece if it acquired more than 35% of those available.

Originally, it had offered $6.50 per share, a nil premium on the Boral share price’s previous close.

Boral is still pleading with its shareholders to reject Seven Group’s bid. Though, its efforts don’t seem to be having the desired effect.

Boral share price snapshot

Despite today’s dip, the Boral share price has been performing well lately.

It’s gained 47.9% year to date. It is also 96.6% higher than it was this time last year.

Seven Group share price overview

2021 hasn’t been so good to the Seven Group share price.

It’s fallen 5% this year so far. However, it’s gained 34.6% over the last 12 months.

The post [TO BE CHECKED] Boral (ASX:BLD) share price falls as Seven’s hold nears 50% appeared first on The Motley Fool Australia.

More reading

• The Boral (ASX:BLD) share price is up 9% in a month. What’s next?
• These 3 ASX 200 shares were big movers this Monday
• Boral (ASX:BLD) share price slips as Seven Group’s stake surpasses 40%
• Here are 3 of the most traded ASX 200 shares today
• Boral (ASX: BLD) share price lifts as Seven gets increased stake

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.

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