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The Mineral Resources Limited (ASX: MIN) share price has spent all but 5 of the last 30 days steadily gaining. Right now, it’s 17.24% higher than it was this time last month.

On June 9, the Mineral Resources share price was $48.42. Currently, shares in Mineral Resources are going for $56.77.

Let’s take a look at the latest news from Mineral Resources. 

Quick refresher

Mineral Resources is a lithium and iron ore miner with ambitious plans to boost its production by as much as 350% over the next 5 years.

Its share price has been increasing in correlation with the price of iron ore and the growing demand for lithium.

Additionally, Macquarie has tipped the company to pay fully franked dividends of $3.32 per share in financial year 2021 and then $3.05 per share in financial year 2022.

That would see Mineral Resources with fully franked dividend yields of 6.4% and 5.9% respectively.

The latest news to drive the Mineral Resources share price

The last time the market heard from Mineral Resources was on Tuesday this week.

The company announced its wholly-owned subsidiary, Energy Resources Limited, has secured a drilling rig for the Lockyer Deep 1 well.

The news saw the Mineral Resources share price gain 0.43%. While that doesn’t sound much, for context, that same day the S&P/ASX 200 Index (ASX: XJO) fell 0.59%.

The Lockyer Deep 1 well is a conventional gas exploration well located in the onshore Perth Basin.

The newly secured rig is expected to start drilling later this month.

Energy Resources is part of a joint venture that operates the exploration permit on which the Lockyer Deep 1 well sits.

Energy Resources holds 80% of the permit’s interest, while Norwest Energy NL (ASX: NWE) holds the other 20%.

Mineral Resources share price snapshot

It’s been a good year so far for the Mineral Resources share price, which has gained 47% in 2021. It has also grown a whopping 146% since this time last year.

The company has a market capitalisation of around $10.8 billion, with approximately 188 million shares outstanding.

The post It’s been a big month for the Mineral Resources (ASX:MIN) share price appeared first on The Motley Fool Australia.

More reading

• Why the Mineral Resources (ASX:MIN) share price hit an all-time high today
• 2 highly-rated ASX dividend shares for income investors in July
• Why the Mineral Resources (ASX:MIN) share price is moving higher
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• 2 highly rated ASX mining shares that could be buys

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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Fortunately, in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.

But with so many to choose from, it can be hard to decide which ones to buy. To narrow things down, I have picked out three ASX dividend shares brokers think investors should buy:

Aventus Group (ASX: AVN)

According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on this retail park-focused property company’s shares to $3.26. The broker notes that Aventus’ properties have increased in value and that its funds from operations will be stronger than expected in FY 2021. As for dividends, Morgans is expecting 17.5 cents per share in FY 2021 and then 17.8 cents per share in FY 2022. Based on the latest Aventus share price of $3.14, this will mean yields of 5.6% and 5.7%, respectively.

Baby Bunting Group Ltd (ASX: BBN)

A note out of Citi reveals that its analysts have a buy rating and $6.22 price target on this baby products retailer’s shares. While it suspects that some retailers will have been negatively impacted by recent lockdowns, it feels Baby Bunting will be less affected. This is due to its strong market position and its much lower exposure to discretionary spending. In addition to this, the broker remains positive on its growth outlook thanks to store expansion plans both here and in New Zealand. Citi is forecasting fully franked dividends of 15.3 cents per share this year and 18 cents per share next year. So, with the Baby Bunting share price currently fetching $5.80, this implies yields of 2.6% and 3.1%, respectively.

Magellan Financial Group Ltd (ASX: MFG)

Another note out of Morgans reveals that its analysts have retained their add rating but trimmed their price target on this fund manager’s shares to $58.05. While the broker was a touch disappointed with its fourth quarter fund outflows, it remains positive on Magellan. This is partly due to its reasonable valuation and long term growth potential from new product launches. Morgans expects fully franked dividends of $2.10 per share in FY 2021 and then $2.31 per share in FY 2022. Based on the current Magellan share price of $51.73, this represents yields of 4% and 4.4%, respectively.

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

More reading

• 2 top ASX dividend shares for income investors
• Top brokers name 3 ASX shares to sell today
• Why Magellan, Origin, Piedmont Lithium, & WiseTech Global are dropping
• ASX 200 rises, Challenger soars, Zip jumps
• Magellan (ASX:MFG) share price is see-sawing 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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT and Baby Bunting. 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 is tracking well this year, having gained 24.5% so far. After starting 2021 trading for $3.01, the Telstra share price is now $3.75.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 9.8% in 2021 to date.

There’s been a number of big news stories out of Telstra this year that appear to have helped the telecommunications giant’s share price climb.

Let’s take a look at what’s been driving the market’s excitement for Telstra this year.

The Telstra share price in 2021

Half year results

Telstra released its half year results on 11 February.

Within them, the company reported a 10.4% drop in revenue. It also declared its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) had fallen 14.2% to $3.3 billion.

However, Telstra shares gained 2.52% on the back of its results, likely due to its refusal to cut its final dividend from the fully franked 8 cents it had handed out in the previous period.

Legal restructure

On March 22, Telstra announced its proposed legal restructure will be completed by December.

As part of its restructure, Telstra will be establishing a new holding company and creating separate subsidiaries.

One subsidiary, InfraCO Fixed will own and operate Telstra’s ducts, fibre, data centres, and exchanges. Another, InfraCo Towers, will own and operate Telstra’s mobile tower assets. While ServeCo will hold Telstra’s radio access network and spectrum assets.

A fourth subsidiary will be named Telstra International and will take ownership and responsibility of – you guessed it – Telstra’s international business.

Following the release of the company’s plan to restructure its assets, the Telstra share price gained 1.25%.  

Sale of InfraCo Towers

Finally, on 30 June, Telstra reported it had sold a 49% stake in InfraCo Towers for $2.8 billion after costs.

The share in InfraCo Towers was purchased by a consortium comprising Future Fund, Commonwealth Superannuation Corporation, and Sunsuper. The sale is expected to be completed in the current financial year.

Telstra plans to return around half of the sale’s proceeds to its shareholders. It also flagged the possibility of a share buy-back.

The news saw Telstra’s shares gain a whopping 4.44% over the course of the day.

Brokers forcasting a bright outlook

Several top brokers have this month weighed in on a bright outlook for Telstra shares.

On the back of the InfraCo sale news, Credit Suisse retained its outperform rating on the telco. The broker has a price target of $4.15 citing its belief that the higher than expected sale price will be accretive to earnings.

Goldman Sachs rates Telstra as a buy with a 12-month price target of $4.20 a share. According to the broker, a move by competitor Vodafone to remove all promotional discounts on its SIM-only plan bodes well for Telstra’s margin.

Telstra share price snapshot

This week, the Telstra share price finally recovered to trade at its pre-COVID-19 level.

It reached its highest closing price since February 2020 on 2 July, when Telstra’s shares finished the day at $3.79.  

Right now, the Telstra share price is 6% higher than it was this time last year.

The post The Telstra (ASX:TLS) share price is now up 24% so far in 2021 appeared first on The Motley Fool Australia.

More reading

• Expert says more ASX shares to follow Sydney Airport (ASX:SYD) takeover trend
• Telstra (ASX:TLS) to repay up to $25 million to customers for slow internet
• Telstra (ASX:TLS) share price hits 52-week high: Can it go higher?
• 2 blue chip ASX dividend shares rated as buys
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high

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 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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Someone forgot to tell the Fortescue Metals Group Limited (ASX: FMG) share price that the commodity supercycle party is still raving in 2021.

Shares in the third biggest ASX iron ore producer is trading little better than breakeven since the start of calendar 2021.

In contrast, the BHP Group Ltd (ASX: BHP) share price rallied 15% while the Rio Tinto Limited (ASX: RIO) share price jumped 11%.

Even the S&P/ASX 200 Index (Index:^AXJO) is faring better. The top 200 benchmark is also sitting on gains of around 11% since January.

Why the Fortescue share price is lagging the pack

There are a few reasons why investors are refusing to dance with the Fortescue share price. One big reason is the belief that the price gap between lower quality iron ore that Fortescue sells and higher quality ore that its bigger rivals produce is set to widen.

Experts believe that the discount for iron ore with more impurities will deepen as high demand for the commodity tapers. When the bull market is in full steam, quality is always less of an issue.

Further, China’s refocus on pollution controls is another factor that could pour water on Fortescue’s exports.

The quality rotation

While these risk factors are based on probabilities and speculation, it does highlight why investors are wary of the Fortescue share price. At this point in the cycle, it’s safer to get exposure to the fabled commodity supercycle through higher quality names.

On the other hand, the underperformance of Fortescue could be due to a bout of profit taking. After all, the shares are up over 60% over the past year, which is around twice that of BHP and Rio Tinto.

Whatever the reason, the sagging Fortescue share price have prompted some brokers to comment that it won’t be returning to its January 2021 peak of $25.92.

Fortescue share price could get boosted next month

But not everyone thinks that the shares are down and out. For one, there’s every reason to believe that Fortescue will pay another record dividend when it releases its results next month.

While the iron ore price has come off its high, it’s still trading close to its record. This means the miner will be flushed with more cash than it knows what to do with. That’s always a nice problem to have.

However, whether that’s enough to return the Fortescue share price to record highs is an open question.

Moving targets

Super dividends aside, I believe that a brighter price outlook for lower quality iron ore may be an essential ingredient.

Most commodity analysts are forecasting the iron ore price to come falling back to earth. UBS for one is predicting the price to correct to US$101 a tonne next year and US$85 a tonne in 2023 and US$75 a tonne the year after.

But before one gets too pessimistic, commodity prices are notoriously difficult to predict. Most analysts (including the government) have underestimated the commodity for the past few years.

The post Why the Fortescue (ASX:FMG) share price is getting left behind in 2021 appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 mining shares that could be buys
• 5 things to watch on the ASX 200 on Friday
• Can the ASX 200 hit 8,000 points by the end of the year?
• Here are 3 of the ASX 200’s most heavily traded shares today
• What are leading brokers saying about the Fortescue (ASX:FMG) share price in July 2021?

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Fortescue Metals Group Limited, and Rio Tinto Ltd. 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.

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The Westpac Banking Corp (ASX: WBC) share price rise of 30% in 2021 is better than any of the big four banks.

In fact, the next best big bank, Australia and New Zealand Banking GrpLtd (ASX: ANZ), has a rise that is a full third lower than Westpac’s. As an example, if you had invested $10,000 in ANZ on the first trading day of this year, you would have an extra $2,000 to your name. If you had invested that money in Westpac on the other hand, you’d have an extra $3,000.

If you had invested that money in an exchange traded fund (ETF) that tracked the S&P/ASX 200 Index (ASX: XJO), that $10,000 would be about $11,000 now.

Westpac stays winning

While Westpac’s rise this year has been impressive, it should be noted the company was coming off a low base in 2020. Last year, shares in the bank fell by 20% – largely attributable to the COVID-19 pandemic. Commonwealth Bank of Australia (ASX: CBA) shares, on the other hand, ended 2020 about 2.8% higher.

Analysts though are quite bullish on the Westpac share price. As Motley Fool Australia reported, analyst Morgan Stanley believes shares in the company could reach a level as high as $29.20 – nearly 15% above their current price. The analyst also believes the company could pay a dividend with a yield as high as almost 5%.

The bank has also been in the news recently over allegations of fraud within the business.

The post The Westpac (ASX:WBC) share price is up 30% in 2021 appeared first on The Motley Fool Australia.

More reading

• Why analysts love Westpac (ASX:WBC) and this ASX 200 dividend share
• NAB (ASX:NAB) share price up following prediction of no rate hike until 2024
• Westpac (ASX:WBC) share price in focus after fraud latest
• ASX 200 drops, Myer soars, Ramsay down
• ASX 200 up 0.2%: Westpac asset sale, Ramsay increases Spire offer

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 added another 1% yesterday, taking it to $7.16 a piece. That means the A2 protein dairy product producer’s share price has gained 26% for the last month.

It certainly would be a sight for sore eyes following A2 Milk’s share price ‘misadventure’ over the past year.

What’s been driving the A2 Milk share price higher?

During the past month, there have been two notable announcements from the company. These may have contributed to the recent rally.

Firstly, on 2 July 2021 A2 Milk announced the appointment of Edith Bailey as Chief Marketing Officer. Edith joins the company after spending 14 years with Danone Nutricia Early Life Nutrition, where she was most recently Consumer Marketing Director.

Prior to her time at Danone, Edith held senior marketing roles with Pepsico, Campbell Arnotts and S.C. Johnson & Son.

Commenting on the appointment, Managing Director and Chief Executive Officer David Bortolussi said:

It is essential that we continue to invest in and strengthen the a2 brand to enable us to return to growth in our core business and to capture new opportunities through innovation and new product development.

Acquisition update

Another snippet of information that might be moving the A2 Milk share price needle is the company’s update on its Mataura Valley Milk acquisition.

According to the release, the New Zealand Overseas Investment Office has given the thumbs up for A2’s proposed acquisition of a 75% interest in the dairy nutrition business. As a result, the transaction is now set to occur with effect from the end of July.

The integration of Mataura is expected to unlock nutritional products manufacturing to A2.

Brokers slap on a buy rating

Finally, investor sentiment may be shifting after a handful of positive perspectives from brokers.

Last week Bell Potter came out with a buy recommendation on the company, adding an A2 Milk share price target of $8.50. In addition to that, Watermark Funds Management chief investment officer Justin Braitling singled out A2 shares as “a strong buy”.

The post The A2 Milk (ASX:A2M) share price has now soared 26% in the last month appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, Challenger soars, Zip jumps
• Why the A2 Milk (ASX:A2M) share price is up more than 3% today
• Leading brokers name 3 ASX shares to sell today
• A2 Milk (ASX:A2M) share price falling despite trademark settlement
• 2 fallen stars of ASX now worth buying: experts

Motley Fool contributor Mitchell Lawler 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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The CSL Limited (ASX: CSL) share price has continued its disappointing run over recent weeks, falling from a June high of $307.57. While no news has been released by the global biotech, investors may have been growing impatient with the company’s performance.

During yesterday’s market close, CSL shares finished the day down 0.72% to $279.14. This means that the company’s share price has plummeted 10% in the space of 3 weeks.

What’s happened in 2021?

It’s been a turbulent year for the CSL share price marred primarily by the company’s reduced plasma collections during the pandemic.

CSL stated in its half year results that lockdowns, social distancing as well as federal government stimulus payments have had a negative impact on donations. This is particularly bad news for the company as it relies on the plasma from blood donors to make life-saving medicines.

Plasma collection costs rose as CSL was forced to offer bigger cash incentives to donors in the United States. Furthermore, new hygiene measures put in place due to COVID-19 also added to the increased overall cost.

While current plasma levels are expected to eventually bounce back, no one knows exactly when. This uncertain environment appears to have weighed down on investor hope, sending the CSL share price in circles over the past 18 months.

Top brokers weigh in on CSL

As reported by my Fool colleague yesterday, several top brokers have mixed feelings about CSL.

Citi and Goldman Sachs share a neutral rating on the biotech giant, citing price targets of $310 and $305, respectively.

Meanwhile, UBS has a buy rating and $330 price target, representing a potential 18.3% upside to the current share price.

More on the CSL share price

Since hitting a 52-week low of $242 in March this year, CSL shares have rebounded strongly, only to fall again. Interestingly, the company’s share price is at the same level the day it released its half-year results for FY21.

On valuation grounds, CSL is the third-largest company listed on the ASX, with a market capitalisation of $127 billion. That puts it just behind Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

The post It’s been a disappointing 2021 so far for the CSL (ASX:CSL) share price appeared first on The Motley Fool Australia.

More reading

• Could it be time to consider buying CSL (ASX:CSL) shares?
• 5 worst-performing ASX 200 healthcare shares of FY21
• How these top ASX biotech shares performed in FY21
• ASX 200 Weekly Wrap: ASX finishes FY21 on a high
• CSL (ASX:CSL) share price up after new AstraZeneca advice

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

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A few weeks ago, one fund manager called Dicker Data Ltd (ASX: DDR) unfashionable… in a nice way.

“Dicker Data is not the high-flying glamorous tech company that continuously burns cash with the future ‘promise’ of one day being profitable,” Totus Capital investment analyst Tim Warner posted on Livewire in May.

“It is quite the opposite… Since listing on the ASX in 2011, revenues have grown circa 7 times to $2 billion, and profits by circa 13 times.”

Warner recommended back then, when the Dicker Data share price was $9.40, to buy the company’s shares.

The stock price had dipped from a perception the company was the beneficiary of a one-off COVID-19 sugar hit. All of a sudden last year, many people had to work from home, and this saw demand for business tech soar.

There was also the perceived headwind of the global computer chip shortage.

“We believe this is creating an opportunity to buy a high quality business at an attractive price.”

When The Motley Fool decided to examine this supposed divergence between share price and business quality, we went straight to the horse’s mouth.

Dicker Data COO: COVID-19 boost will last for YEARS

Vladimir Mitnovetski is the chief operating officer at Dicker Data — the second-in-charge, in other words.

The coronavirus pandemic did have a material impact on Dicker Data’s performance. Revenue jumped 18.2% for the 2020 financial year.

Despite revenue growth slowing to 6.4% for the 2021 financial year, Mitnovetski told The Motley Fool that tech adoption had only just started.

“If they think our industry was a short-term beneficiary [of COVID], that’s not the case,” he said.

“COVID had driven an acceleration of digital transformation… The next 5 years this is going to continue happening.”

The message for holders of Dicker Data shares was clear, according to Mitnovetski.

“For everyone who’s invested in Dicker Data, we’re right in the heart of digital transformation, connecting all the people and companies bringing that technology with all the users,” he said.

“Without being in the middle and connecting those together, this [transformation] would not be happening.”

The worldwide chip shortage was real, Mitnovetski admitted. But relief is on its way.

“We’ve been in [the shortage] now since late last year. So we know how to operate, we know how to plan, and we know how to forecast,” he said.

“Even if we’re not getting enough to fulfil demand in the next 4 to 6 weeks, it’s kind of still getting through in the next 3 to 4 months. I haven’t seen anyone cancelling their orders.”

Expansion plans

Totus Capital’s Warner reminded everyone that Dicker Data was established in 1978, which was even before the first personal computer was in circulation.

So the Sydney company is experienced in dealing with new challenges and products. As such, Mitnovetski wasn’t shy about revealing its current frontiers.

The first challenge is geographic expansion.

“We’re definitely looking at ramping up our New Zealand operations,” he told The Motley Fool.

“We’ve been growing 20%-plus in New Zealand year after year — that’s going to continue happening.”

The other goal is to diversify its technology catalogue.

“We’re also looking at other adjacent industries, like operational technology, electrical market, physical security,” he said.

“All the convergence of industries is giving us a new type of market that we can tap into.”

Expansion would take place organically, but Mitnovetski did not rule out acquisitions.

“Acquisitions are always on our minds. If the opportunity comes along, absolutely.”

The Dicker Data share price was down 0.09% on Thursday, finishing the day at $11.20. That’s 4.7% up on the year.

The post Dicker Data (ASX:DDR) exec: What COVID started, we’ll finish appeared first on The Motley Fool Australia.

More reading

• What’s happening with the Dicker Data share price today?
• Here are the 5 best performing ASX 200 tech shares from FY21

Motley Fool contributor Tony Yoo owns shares of Dicker Data 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 owns shares of and has recommended Dicker Data 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 ZIP Co Ltd (ASX: Z1P) share price is up almost 29% in the past month. But it hasn’t all been smooth sailing. 

Shares in the buy-now-pay-later (BNPL) company started June at around $6.93, before rallying to a high of $9.11 late in the month. Zip shares then took a sharp dive before finding a base at $7.20.

Since then, the Zip share price has bounced more than 20%, including a 13% rally yesterday.

Why did the Zip share price surge yesterday?

The Zip share price surged more than 13% yesterday, hitting an intra-day high of $9.00 before closing at $8.78.

There was no news out of the company that could explain the bullish price action. Instead, investors may have been flocking on the back of speculation that a rival BNPL provider acquired a strategic stake in the company.

According to an article in the Australian Financial Review, Swedish backed BNPL provider Klarna reportedly took a 4% stake in Zip to consolidate its market share. Klarna is part-owned by the Commonwealth Bank of Australia (ASX: CBA).

Neither Zip nor Klarna responded to the speculation.

Strength in the ASX tech sector

Despite not releasing any price sensitive news within the past 2 months, Zip shares have experienced some volatile movements.

Given the lack of news, overall strength in the tech sector and the company’s growth in the second half of FY21 could explain the share price movements.

In the third quarter of FY21, Zip saw record group quarterly revenue of $114.4 million, which was an increase of 80% year on year. Quarterly transaction volume also increased 114% to $1.6 billion.

Zip highlighted its US division, with transaction volume in the region growing 234% to $762 million.

The Zip share price was also on the receiving end of negative broker coverage in late June. According to a note from analysts at Citi, Afterpay Ltd‘s (ASX: APT) expansion in the US market could put pressure on Zip’s US-based QuadPay business.

Despite the volatility, the Zip share price is still trading around 60% higher since the start of the year.

The post It’s been a big month for the Zip (ASX:Z1P) share price appeared first on The Motley Fool Australia.

More reading

• Here are 3 of the ASX 200’s most heavily traded shares today
• Why Alkane, Audinate, Megaport, & Zip shares are rising today
• ASX 200 midday update: Zip rockets, AMP asset sale
• Why the Zip (ASX:Z1P) share price is rocketing 15% higher today
• 5 things to watch on the ASX 200 on Thursday

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. owns shares of and has recommended AFTERPAY T FPO and ZIPCOLTD 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.

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While readers are likely to be acquainted with tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO), the two listed below might be lesser known.

Here’s why these ASX shares could be future tech stars:

Life360 Inc (ASX: 360)

The first ASX tech share to look at is Life360. It operates a platform for busy families, noting that it brings them closer together by helping them better know, communicate with, and protect the people they care about most.

Its core offering is the eponymous Life360 mobile app. It is a market leading app for families with features that range from communications to driving safety and location sharing.

Its app is currently used by 28 million monthly active users globally. This is driving strong recurring revenue growth, with management expecting annualised monthly revenue to reach the high end of its guidance of US$110 million to US$120 million in 2021. This represents a 34% year on year increase.

Life360 has also just strengthened its offering with the acquisition of Jiobit for US$37 million. The addition of the wearable location device provider is very supportive of its growth strategy and opens up cross-selling opportunities.

Morgan Stanley is very positive on the company’s prospects. The broker currently has an outperform rating and $8.60 price target on its shares. It sees plenty of opportunities for the company to further monetise its huge user base.

Nitro Software Ltd (ASX: NTO)

Another ASX tech share that could have a bright future ahead of it is Nitro Software.

Nitro is a global document productivity software company driving digital transformation in organisations across multiple industries around the world. Its core solution is the Nitro Productivity Suite, which provides integrated PDF productivity, eSignature, and business intelligence tools to customers. This is through a horizontal, SaaS, and desktop-based software suite.

Management notes that its software solution is highly scalable. It serves everyone from large multinational enterprises and government agencies to small businesses and individual users. At the last count, Nitro had sold over 2.6 million licences and had 11,700 business customers across 154 countries. This includes over 68% of the Fortune 500 and three of the Fortune 10.

Demand has been growing strongly for its offering, leading to Nitro reporting a 64% increase in annualised recurring revenue (ARR) to $27.7 million in FY 2020. Pleasingly, more of the same is expected in FY 2021, with management guiding to ARR in the range of $39 million to $42 million. This will mean year on year growth of 41% to 51.6%. While this is a large number, it is still well short of its total addressable market which is estimated to be $28 billion.

Morgan Stanley is also positive on Nitro. It currently has an overweight rating and $3.70 price target on the company’s shares.

The post 2 very exciting ASX tech shares you need to know appeared first on The Motley Fool Australia.

More reading

• 3 ASX tech shares for the post-COVID world
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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 and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Life360, Inc. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Xero. The Motley Fool Australia has recommended Nitro Software 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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