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The CSL Limited (ASX: CSL) share price is gaining today. This comes amid conflicting news from the Federal Government regarding the AstraZeneca plc (LSE: AZN) COVID-19 vaccine.

At the time of writing, the CSL share price is $289.62 – 0.42% higher than yesterday’s close.

The AstraZeneca vaccine has been a crown jewel for the biotech company since September, when it announced it was to manufacture the vaccine in Melbourne. The CSL share price has often reacted to news of the vaccine’s use in Australia.

Despite numerous changes to Australia’s use of the AstraZeneca vaccine, CSL is determined to keep manufacturing it in Australia.

Late last night, Prime Minister Scott Morrison announced adults of any age can now request the AstraZeneca vaccine from their general practitioner.

This follows last week’s news that the Federal Government plans to phase out the AstraZeneca vaccine in coming months.

Let’s take a look at the latest news from CSL and of AstraZeneca’s position in the vaccine rollout.

AstraZeneca and the vaccine rollout

In the latest news of the use of the AstraZeneca vaccine in Australia, the Federal Government is implementing a new no fault indemnity scheme for doctors giving COVID-19 vaccines.

This means all Australians able to be vaccinated can request to get the AstraZeneca jab through their general practitioner.

Previously, Australians aged over 60 were the only cohort able to receive the AstraZeneca shot due to its side effects, which include a one-in-200,000 chance of potentially deadly blood clots.

Word from the Prime Minister of flexibility in the age restrictions comes only days after the Federal Government released its vaccine distribution projections. Originally given to states and territories, the projections outlined the government’s plans to phase out the AstraZeneca vaccine.

That document stated that from October, states and physicians wanting additional AstraZeneca vaccines will have to specifically request their availability.

In comments published by The Australian, CSL declared it won’t stop manufacturing the embattled vaccine. It stated it may instead ship those produced in Melbourne overseas, as demand from other countries is thriving.

Chris Larkins, senior vice president of operations for CSL’s vaccine producer Seqirus, was quoted by the publication as saying:

[The previous decision to restrict who can receive the AstraZeneca vaccine] is very much an Australian decision, based on what’s happening in Australia and the lack of any sort of real transmission of Covid, we’ve had governments calling us up from around the world saying ‘we’ll take it’.

Today may be an interesting day for the CSL share price. Major news of Australia’s use of the AstraZeneca vaccine often inspires excitement from the market.

CSL share price snapshot

The CSL share price needs all the good news it can get after battling a tough 2021 on the ASX.

Currently, shares in CSL have gained just 1.5% year to date. However, the CSL share price has fallen 0.1% since this time last year.

The company has a market capitalisation of around $131 billion, with approximately 455 million shares outstanding.

The post CSL (ASX:CSL) share price up as AstraZeneca advice shifts appeared first on The Motley Fool Australia.

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• Temple & Webster share price surges with other ASX COVID winners
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• 3 blue chip ASX 200 shares that brokers rate as buys
• The CSL (ASX:CSL) share price has fallen 7% this week

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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Investors are pushing Australia’s largest ASX-listed shares to disclose climate risks as investment firms are warned of reduced capital.

The push follows what has been described as a ‘coming of age’ for environmental, social, and governance (ESG) investing.

Heating up for ASX shares

Australia’s largest ASX shares may soon be forced to disclose climate risks by the Investor Group on Climate Change (IGCC), Principles for Responsible Investment, and Carbon Disclosure Project. Conjointly, the groups represent more than $2 trillion in assets.

Members of IGCC include the Westpac Banking Corp‘s (ASX: WBC) BT management, and Commonwealth Bank of Australia‘s (ASX: CBA) Colonial.

The groups have launched a plan that would begin with S&P/ASX 300 Index (ASX: XKO) companies. Initially, the plan would be voluntary under an “if not, why not” approach. However, by 2024 the IGCC wants a mandatory system.

According to IGCC’s release, the scheme is a bid to improve the current Task Force on Climate-related Financial Disclosures (TCFD).

Currently, 60 of the top 200 ASX shares are already providing climate-related financial disclosures. Although, a lack of a standardised approach continues to introduce inconsistencies.

In its statement, IGCC said:

Institutional investors have reported that the quality and consistency of these company disclosures is severely lacking, leading to the underpricing of climate risks in the market.

With other major jurisdictions already shifted to mandatory systems, IGCC worries Australian companies and investors could be left beholden to multiple regulatory frameworks. This outcome would likely be detrimental to Australian investors and companies.

Climate mispricing

ASX-listed shares could face extensive climate costs in the future. The issue for fund managers and retail investors is trying to evaluate this on a company-by-company basis.

The cost of climate change to a company may include carbon pricing changes, extreme weather events, or transitory costs. Unfortunately for investors, the quality of this risk assessment differs greatly between companies.

Commenting on this, IGCC policy director Erwin Jackson said:

Companies who disclose will get better access to capital. If an investor looks into a company and they’re just doing tick box exercises, the investor will say you don’t understand this and you’re not prepared. If they see a company doing good disclosure, leaning towards solutions, they say this is a good company to invest in.

Lastly, the plan stipulates that consultation over implementing measures will be held between 2022 and 2023. Following that, legislative measures could be put in place with full compliance required by 2024 to 2025.

The post Investors push Australia’s largest ASX shares to disclose climate risks appeared first on The Motley Fool Australia.

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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 Smartgroup Corporation Ltd (ASX: SIQ) share price is edging higher in early morning trade. This follows an announcement from the salary packaging and novated leasing company that it has renewed a significant contract.

At the time of writing, Smartgroup shares are fetching for $7.24 apiece, up 0.42%.

Smartgroup extends partnership

Investors took the time to digest the company’s release overnight which have pushed its shares slightly higher.

In yesterday’s after market statement, Smartgroup advised it has been successful in securing a contract renewal from the Department of Defence. The continued partnership will see the company provide salary packaging and novated leasing services until June 2026.

The latest win comes after Smartgroup entered into a competitive tender process against other salary packaging and fleeting management companies.

It’s worth noting, the Department of Defence is Smartgroup’s largest single client since first winning the contract in 1999.

Smartgroup CEO, Tim Looi commented on the positive news, saying:

We are delighted that Smartgroup will be able to continue its long-term relationship with Department of Defence. We have strong client relationships across our diversified client base and continue to focus on customer experience as a key driver of those relationships.

In 2020, we renewed or extended all eight top 20 contracts that fell due and we have now renewed or extended the bulk of the top 20 contracts that fell due in 2021.

About the Smartgroup share price

In the last 12 months, Smartgroup shares have risen from the $6 mark to $7.21 as of yesterday’s closing price. This roughly represents an increase of 20% for shareholders. The company’s shares reached a 52-week high of $7.85 in early February ahead of its full-year results. However, once the financial report was released to the ASX, Smartgroup shares tanked to $5.95.

Based on valuation grounds, Smartgroup commands a market capitalisation of about $962 million, with approximately 133 million shares on issue.

The post Why the Smartgroup (ASX:SIQ) share price is edging higher today appeared first on The Motley Fool Australia.

More reading

• Why the BARD1 (ASX:BD1) share price is surging 10% higher
• 5 reasons to invest in dividend-paying stocks in retirement
• Why the AGL (ASX:AGL) share price is down 45% in a year
• How growing dividend shares can supercharge your income
• Why Tesla stock jumped on Monday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended SMARTGROUP DEF SET. 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 BARD1 Life Sciences Ltd (ASX: BD1) share price has been a strong performer on Tuesday morning.

In early trade, the diagnostics company’s shares are up 10% to $2.14.

This means the BARD1 share price is now up over 200% since the start of the year.

Why is the BARD1 share price racing higher?

Investors have been bidding the BARD1 share price higher today following the release of an announcement relating to its BARD1 autoantibody test for the early detection of ovarian cancer.

According to the release, the previously reported study results have been published in the international peer-reviewed journal Genes. This appears to have brought the company onto the radar of a wider group of investors, boosting the BARD1 share price.

The study data published in Genes shows positive results from BARD1’s OC-CA125 and OC-R001 studies in ovarian cancer. These studies were performed at the University of Geneva (UNIGE) under a research agreement.

What is the study?

BARD1 is exploring several approaches for developing an accurate and reliable blood test for earlier detection of ovarian cancer utilising its proprietary BARD1 autoantibody (AAb) and SubB2M technologies.

The BARD1 autoantibody approach in the above studies used a research-stage enzyme-linked immunosorbent assay (ELISA) performed on a research use only (Meso Scale Discover) MSD platform to detect autoantibodies to BARD1 variant proteins.

However, whilst this has shown promising data, the company believes it requires considerable further assay development and technical validation on a commercial assay platform before advancement towards clinical development of a potential commercial test.

What else is happening?

In addition to this, the company advised that is developing a SubB2M-based approach that detects a pan-cancer marker called Neu5Gc. Proof of concept results using a research-stage SPR assay showed outstanding accuracy for detection of ovarian cancer, with 100% sensitivity and specificity across all stages compared to healthy controls.

Furthermore, SubB2M-based ELISA blood tests are currently being developed for monitoring treatment response and recurrence in women previously diagnosed with ovarian cancer. And finally, BARD1 is also looking to undertake further studies to expand indications for use of a SubB2M-based ELISA to a screening test for early detection of ovarian cancer in asymptomatic women.

Overall, a lot of promising developments, which goes some way to explaining the rapid rise in the BARD1 share price this year.

The post Why the BARD1 (ASX:BD1) share price is surging 10% higher appeared first on The Motley Fool Australia.

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

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Once you retire, the way you interact with your money changes. Instead of earning money through work to cover your costs and invest a bit, you rely on your investments to provide the money to cover those costs. That shift in your reality should drive a shift in your investing strategy.

Dividend-paying stocks can play a role in getting you that money, but they are not the solution all by themselves. After all, dividends are not guaranteed payments, and when a company cuts its dividend, its stock price can drop as well. Still, the benefits they provide are often worth the risks, which can provide a compelling case for retirees to own them. With that in mind, here are five reasons to invest in dividend-paying stocks in retirement.

1. They provide cash

The most obvious reason to own dividend-paying stocks in retirement is that they typically pay those dividends in the form of cold, hard cash. You could use that cash to pay your bills, replenish the maturing rungs in your bond ladder, to reinvest for your grandkids’ educations, or for any other purpose you’d like. That’s the beauty of cash — once you have it, you can put it toward any purpose you’d like. It’s the ultimate in financial flexibility.

2. Dividends can grow over time

The strongest dividend payers around not only deliver the cash, but they also seek to increase their payments over time as the companies behind those dividends grow. Businesses with long histories of dividend hikes are published on lists with names like “Dividend Achievers,” “Dividend Champions,”  and “Dividend Aristocrats.”

Especially in an era where rising inflation is putting the purchasing power of each dollar at risk, the potential of an increasing income stream becomes that much more attractive. Companies with a history of both paying and increasing their dividends can be a powerful source of that kind of cash flow. That makes them a powerful potential tool in a retiree’s fight against long-run inflation.

3. Dividends can tell you what management really thinks

Once a company gets a reputation of paying and increasing its dividend, its leadership probably recognizes that its investors expect such raises over time. From the company’s perspective, however, the big challenge with dividends is that the company has to generate that cash in order to pay it to the shareholders.

That means that a company with a fairly well established dividend is not likely to increase that dividend faster than it expects its earnings to grow. It’s a classic case of “put your money where your mouth is”. If a company says great things about its prospects but only offers up a token dividend increase, there’s a good chance that what it does with its dividend tells a clearer story than what it says in its press release.

4. You can use dividends as a check on the company’s financial health

One particularly useful part of a company’s dividend is that you can compare it to other financial measures to help you get a sense of that company’s overall financial health. For instance, a company’s payout ratio will tell you how much of its earnings it pays out with that dividend. If that measure is too high, you might have reason to believe the dividend may be at risk in the future.

You can also look at a company’s dividend in the context of the total it pays out between dividend and interest payments. That measure can help you get a handle on what other financial obligations the company has to pay. Interest payments are always a higher priority than dividend payments. As a result, a company whose dividend looks tiny compared to its interest obligation may be at a somewhat elevated risk of a dividend cut.

That’s especially true if interest rates rise in response to higher inflation. After all, if a company is forced to roll its debt to higher rate bonds as those debts mature, then its interest expense will go up. That means less of its cash flow will be available for dividends.

5. Companies’ dividends don’t depend on the stock market’s mood

On any given day, a stock’s price might finish higher or lower than it did the day before. Particularly during market crashes, even strong companies’ shares can drop. Unlike its market price, however, a company’s dividend is based on its operating strength, not Wall Street’s day-to-day whims.

That makes dividends a potentially powerful way of accessing cash even during down markets. After all, you don’t have to sell your stock to get the cash from that dividend. During a down market, that can be a particularly powerful way to get hold of money to pay your bills or to reinvest in great companies at bargain prices.

Just remember that a dividend can get cut if the company’s operations suffer. So keep your eye on the fundamental and financial health of the businesses you own. Let those fundamentals determine whether it’s time to buy more, hold on to what you’ve got, or get ready to sell and look for better opportunities.

Especially in retirement, cash is King

Once you retire and start relying on your portfolio to cover your costs, you become all that much more aware of how important it is to have cash available when you need it. Dividends can play a key role in generating that cash, and the five reasons above show why.

The best time to start getting your portfolio retirement ready is before you’re ready to call it quits. That way, you’re able to retire on your terms, and not just if the market happens to be cooperating. So get started now, and bring the retirement you’re hoping for that much closer to reality.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 5 reasons to invest in dividend-paying stocks in retirement appeared first on The Motley Fool Australia.

More reading

• Why the BARD1 (ASX:BD1) share price is surging 10% higher
• Why the AGL (ASX:AGL) share price is down 45% in a year
• How growing dividend shares can supercharge your income
• Why Tesla stock jumped on Monday
• Why Afterpay (ASX:APT) and this ASX share could be top growth options

Chuck Saletta 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The AGL Energy Limited (ASX: AGL) share price has been one of the biggest losers on the S&P/ASX 200 Index (ASX: XJO) over the past year. The country’s largest electricity provider has provided a number of concerning updates.

At yesterday’s market close, AGL shares finished the day trading 0.44% lower at $8.99.

Let’s take a look at what’s been impacting the AGL share price.

What are AGL’s concerns?

Investor sentiment has been overall weak this year, although AGL shares have lifted 10% during the past 4 weeks of trading.

The company has struggled with the current conditions of the national electricity market as well as unstable electricity prices.

In its half-year results released in February, AGL noted a sharp decline in wholesale prices for electricity and renewable energy certificates weighed down its financial performance. This is in addition to lower gross margins in wholesale gas and costs to support the business’ response to COVID-19.

Furthermore, the soon-to-close Liddell coal-fired power station impacted the company’s bottom line. AGL plans to transform the site with a hydro and solar energy facility following Liddell’s ceased operations in 2023.

The shock exit of its CEO and failed trademark court case against environmental group Greenpeace also hasn’t helped AGL’s woes.

In response to the challenging 12 months, the company proposed to split into two separate energy businesses. The first, New AGL, will focus on delivering electricity, gas, internet, and mobile services to Australian households, emerging as a zero-carbon electricity supplier. And the other business, PrimeCo, will be centred on becoming Australia’s largest electricity generator.

Only time will tell if the AGL share price can return to its previous high as trends shift towards more environmentally friendly options.

What do the brokers say?

Two recent broker updates came in late May and early June, following the company’s 2021 Macquarie conference on 4 May.

Swiss investment firm UBS cut its 12-month price target for AGL by 25% to $7.60. JPMorgan followed suit to also lower its rating by 20% to $8.80. This implies a downside from both brokers on the current AGL share price of $8.99.

AGL share price summary

Since COVID-19 hit Australia’s economy, AGL shares have taken a dive from $21.00 to losing more than half their value. The company’s share price reached a multi-decade low of $7.97 in mid-May before rebounding slightly.

AGL has a market capitalisation of roughly $5.6 billion, with more than 623 million shares on its registry.

The post Why the AGL (ASX:AGL) share price is down 45% in a year appeared first on The Motley Fool Australia.

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

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While buying shares with big dividend yields might seem like the best way to generate a passive income, it can sometimes pay to be patient.

For example, very few investors would look at Altium Limited (ASX: ALU) as a dividend share. After all, at present it offers a yield of just 1.4%. However, if you had bought Altium shares five years ago when its shares were trading at $6.48, you would feel very differently.

Over the last 12 months, the electronic design software provider has paid its shareholders dividends totalling 38 cents per share. This means that investors that snapped up shares in 2016 are now receiving a yield on cost of almost 6%.

And with Altium confident it will more than double its revenue over the next five years, it is conceivable that it will also more than double its dividend during this time. This would mean that those longer term investors would be earning a yield on cost of ~12% at that point.

Overall, I feel this demonstrates why companies with growing dividends can be worth considering. And with that in mind, here is a dividend share which is also growing its dividends at a solid rate:

Bapcor Ltd (ASX: BAP)

Bapcor is the Asia Pacific’s leading provider of vehicle parts, accessories, equipment, service and solutions. It is also the name behind a number of retail brands such as Autobarn, Burson Auto Parts and Midas. Thanks to its strong market position and its expansion plans, Bapcor is being tipped for long term growth.

For example, Citi is expecting Bapcor to grow its fully franked dividend to 19 cents per share in FY 2021 and then 22 cents per share in FY 2022.

Based on the current Bapcor share price of $8.40, this will mean yields of 2.3% and 2.6%, respectively. Citi has a buy rating and $9.50 price target on the company’s shares.

The post How growing dividend shares can supercharge your income appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium. The Motley Fool Australia owns shares of and has recommended Altium and Bapcor. 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Tesla (NASDAQ: TSLA) jumped on Monday. The electric car maker’s shares rose as much as 3.4%. The stock was up 2.6% as of 11:10 a.m. EDT.

The growth stock‘s gain oddly follows an announcement of a voluntary recall of nearly 300,000 vehicles in China. Interestingly, a close look at the recall shows a reason why investors may be cheering the move.

So what

China’s vehicle safety organization, State Administration for Market Regulation (SAMR), announced over the weekend that Tesla was voluntarily recalling over 285,000 vehicles in the country. An issue with Tesla’s driver-assist system in its Model 3 and Y vehicles in the market reportedly meant that the technology could be accidentally turned on or off under particular circumstances.

Though it’s considered a recall, drivers won’t need to take their cars to a service station. The fix has been deployed as a remote software update. It could be argued that the rapid fix via a software update puts the spotlight on the company’s software prowess. This could impress not only investors, but also Chinese consumers.

Now what

The stock’s sharp gain on Monday adds to its recent momentum. Shares are up more than 20% since June 3. However, the stock is still down substantially from an all-time high of just over $900.

Investors will get insight into Tesla’s recent performance when the company reports second-quarter results next month. The report is usually released at some point in the second half of July.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Tesla stock jumped on Monday appeared first on The Motley Fool Australia.

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Daniel Sparks 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 Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Luckily for growth investors, there are a lot of quality companies out there that are growing at a rapid rate.

Two top options for growth investors to get better acquainted with are listed below. Here’s what you need to know about them:

Afterpay Ltd (ASX: APT)

Afterpay is a buy now pay later (BNPL) focused payments company. While it may not officially have been the first BNPL provider, it is the company that popularised the payment method, becoming a verb in the process.

Pleasingly, with credit card usage declining rapidly among younger demographics, BNPL looks likely to be here to stay. This bodes well for Afterpay and its sprawling operations, which cover the ANZ, North American, UK, and European regions. The company also has its eyes on the Asian market and is testing the waters there.

But Afterpay isn’t settling for that. It will soon launch the Afterpay Money app, which extends beyond BNPL and into saving and cash flow tools. There’s even speculation it could eventually offer home loans to its millions of active customers. And given the amount of valuable consumer data it is generating, the options are endless for the company.

Analysts at Ord Minnett are very positive on its outlook and are forecasting strong growth over the coming years. As a result, the broker recently put a buy rating and $150.00 price target on the company’s shares.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another option for investors is actually an ETF filled to the brim with growth shares.

The VanEck Vectors Video Gaming and eSports ETF gives investors exposure to a portfolio of the largest companies involved in video game development, hardware, and esports. This means you’ll be buying a slice of companies such as Activision Blizzard, AMD, Electronic Arts, Nvidia, Roblox, Take-Two, and Tencent.

In respect to Nvidia, it sparked the growth of the PC gaming market in 1999 by redefining modern computer graphics and revolutionising parallel computing. Since then, its GPU deep learning ignited modern artificial intelligence, which is the next era of computing. It also creates technology that helps mine cryptocurrencies. This means investors can gain indirect exposure to the crypto boom through this ETF.

VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports. Furthermore, it highlights that the fund gives investors the opportunity to diversify their portfolio by providing tech options outside the popular FAANG stocks.

The post Why Afterpay (ASX:APT) and this ASX share could be top growth options appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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 Nanosonics Ltd (ASX: NAN) share price was out of form on Monday despite announcing a new product launch.

The infection prevention company’s shares fell over 2% to $5.84.

What did Nanosonics announce?

After years of promising new product launches, Nanosonics has announced a new product called AuditPro.

AuditPro is a digital platform that has been designed to improve traceability, reporting, and compliance of infection prevention measures for medical devices.

The first application will focus on a solution for the ultrasound market, with potential for the new product to be coupled with every ultrasound console at point of care. This complements its industry leading Trophon EPR disinfection system for ultrasound probes.

Management notes that the product will generate new revenue streams associated with a mobile scanning device and subscription-based software that provides real time access for customers to necessary infection prevention compliance data.

Does this make the Nanosonics share price good value?

Analysts at Goldman Sachs have been looking over the new product and have given their verdict.

Goldman said: “Whilst we do not expect the direct revenue streams to be material in the initial year(s), we expect an indirect benefit from the potential to drive adoption of trophon2 (including upgrades from trophon EPR since AuditPro will only be compatible with the newer platform). As a device which actively encourages HLD utilisation, it may also be effective at improving the demand for consumables.”

And while this is positive, it isn’t enough for a change of rating just yet. Goldman continues to believe that the Nanosonics share price is fully valued at the current level.

In light of this, the broker has retained its neutral rating and $5.30 price target. This compares to the latest Nanosonics share price of $5.84.

Though, it has hinted that it will reconsider its recommendation when further R&D updates are released.

Goldman explained: “Management stated that further R&D updates will be provided throughout FY22E (we will look for further colour at the FY21 earnings announcement in mid-August). We expect updates/views on these new products to be a large focus of the market over the coming quarters.”

The post Top broker gives its verdict on the Nanosonics (ASX:NAN) share price appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics 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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