Tag: Motley Fool

Do you think you’re a good investor?

You keep up with ASX company news, read up on economic and social trends, and don’t speculate on penny stocks.

Unfortunately, regardless of how much effort you put in, the chances are you’re no better than anyone else.

The dilemma is that, unless you have illegal insider information, everyone has access to the same company and economic data.

It’s the old efficient market hypothesis.

“Anything that is expected is in the [share] price and the only thing that moves a price is the unexpected,” Marcus Today director Marcus Padley said in a memo to clients.

“It is the Catch-22 of investment. You have to know the unknown, because that’s the only thing that moves a share price — the unexpected.”

Study the numbers as much as you want, it’s useless

In the old days, even basic information like company financials had to be purchased and mailed out to investors.

Now with the internet, it is freely available in a multitude of places. Instantly.

Padley said that this means the advantage that value investors supposedly had has evaporated.

“The ‘edge’ that the ‘intelligent investor’ identified…, as their smarty-pants point of difference, has been arbitraged away.

“When the market goes to hell, ‘value’ becomes a useful reference point again — but in a bull market it is so 1950s.”

So what do we do then?

Because of this market efficiency, Padley reckons investors never make money from smart asset allocation or portfolio optimisation.

“It’s almost always a few simple events, fads and trends that moved prices.”

So instead of combing through company financials, Padley suggested the best way to spend the end-of-financial-year is by developing “an opinion” and not “following the crowds”.

The best place to start is the trends that already have momentum.

“It’s probably best you respect the current themes and not bet against them until proved otherwise,” said Padley.

“Continuation of the trend is the most likely outcome in the stock market.”

 Padley suggested the following 4 themes as the “obvious” starters for the new financial year:

• A continuing bull market
• Real estate prices are going up, so ASX housing shares are “low-risk”
• Interest rates won’t rise significantly, so real estate investment trusts, infrastructure and utility shares will do well
• Electric vehicles are coming, so copper and lithium mining shares to rise

Efficient markets can be beaten

The counter-argument to Padley’s view is that markets aren’t completely efficient and that bargains can be found occasionally.

This was the experience of Forager Funds senior analyst Gareth Brown.

“Markets can be surprisingly ignorant from time to time. Especially at the smaller end of the market,” he said on a company blog in March.

Brown took the example of ThinkSmart Limited (LON: TSL), which was a buy now, pay later business in the UK. After Australian giant Afterpay Ltd (ASX: APT) bought out the business, ThinkSmart shares were effectively a stake in the parent.

Yet a huge discrepancy between Afterpay and ThinkSmart shares appeared.

“Here’s what happened over the first 6 months of 2020. Afterpay shares rose 99%. And ThinkSmart shares fell 11%,” said Brown.

“And what about the almost 9 months since 1 July 2020? Afterpay rose a further 73%, ThinkSmart 271%.”

So the market doesn’t always see everything, according to Brown.

“There’s still plenty a diligent investor can do to gain an edge over it. Look hard and think smart.”

The post What truly moves an ASX share price? Knowing the unknown appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• The Zip (ASX:Z1P) share price is down 6%…profit taking, competition or lockdown fears?
• Leading brokers name 3 ASX shares to buy today
• Why Afterpay, Gold Road, Qantas, & Talga shares are sinking
• Afterpay (ASX:APT) share price tumbles nearly 7%

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

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The Kathmandu Holdings Ltd (ASX: KMD) share price could come under pressure this morning.

This follows the release of a trading update by the adventure retailer this morning.

What did Kathmandu announce?

According to the trading update, Kathmandu has been negatively impacted by the recent announcement of additional COVID-19 restrictions in New South Wales.

The release notes that a number of its retail stores have suffered renewed disruption to trading from COVID-19 lockdown restrictions in Australia. At present there are 40 stores currently closed in New South Wales for a minimum of two weeks, and 26 further stores closed in Western Australia for a minimum of 4 days from today. This follows a two-week lockdown in Victoria which impacted 62 stores in early June.

Prior to this, the company had been trading broadly in line with pre-COVID-19 levels.

What will the financial impact be?

Based on currently announced restrictions, Kathmandu expects to fall short of its sales and earnings expectations in FY 2021. It is now forecasting sales of NZ$930 million and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of NZ$120 million.

Management estimates that the impact of the New South Wales and Victorian lockdowns and associated movement restrictions will be ~NZ$13 million on EBITDA. However, it has warned that uncertainty remains due to the evolving COVID-19 situation in Australia, and this expectation is subject to change.

Kathmandu’s CEO, Michael Daly, commented: “COVID-19 continues to be a disrupting factor, in particular for Australasia during the key trading period for Kathmandu. Excluding these impacts, Kathmandu had a solid start to the winter season, and Rip Curl sales momentum continues. Trading conditions in the Northern Hemisphere for both Rip Curl and Oboz are particularly strong across our online, retail and wholesale channels, as our Group benefits from a diversified mix of channel and geographies.”

The Kathmandu share price is up 25% year to date.

The post Kathmandu (ASX:KMD) share price on watch after COVID lockdowns hit sales appeared first on The Motley Fool Australia.

More reading

• Woolworths (ASX:WOW) share price on watch after broker downgrade
• 2 top ASX dividend shares with attractive yields
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 flat, e-commerce ASX shares soar, Metcash rises
• 2 highly rated international ETFs for ASX investors

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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The Woolworths Group Ltd (ASX: WOW) share price will be one to watch closely on Tuesday.

This follows the release of a broker note out of Goldman Sachs this morning.

What happened?

According to the note, Goldman Sachs believes the Woolworths share price is fully valued now following recent outperformance and its demerger.

As a result, the broker has downgraded the company’s shares to a neutral rating and trimmed the price target on them to $36.80.

Based on the current Woolworths share price of $37.85, this implies potential downside of 2.8% over the next 12 months excluding dividends. And including its forecast 2.3% dividend yield, the total potential return is -0.5%.

What did Goldman Sachs say?

Goldman made the move after updating its valuation to account for the Endeavour Group Ltd (ASX: EDV) demerger that took place last week. The broker also notes that the Woolworths share price has vastly outperformed the market since it rated the retail giant as a buy.

The broker said: “Overall, we revise our underlying NPAT forecasts by -23.8% and -25.7% respectively in FY21 and FY22. We note that we do not include any Buyback within our revised forecasts.”

Based on the broker’s forecasts, this means that the Woolworths share price is trading at an estimated 32x FY 2022 earnings at present. Which Goldman appears to believe limits any potential upside from here.

“Compared to latest close of A$37.85, our revised 12m Target Price of A$36.80 offers a total potential return of -0.5%. While the short-term catalyst of an off-market buyback remains in play, we are taking advantage of the current strength in WOW to downgrade to Neutral. Since we upgraded WOW to a Buy rating on 7 March 2021 the share price has appreciated 14.1% prior to the demerger vs. the market up +8%,” the broker concluded.

The post Woolworths (ASX:WOW) share price on watch after broker downgrade appeared first on The Motley Fool Australia.

More reading

• Why the Woolworths (ASX:WOW) share price is pushing higher today
• Why Atomo, Metcash, Temple & Webster, & Woolworths are pushing higher
• Temple & Webster share price surges with other ASX COVID winners
• ASX 200 down 0.1%: Metcash results, Costa returns, travel shares sink
• ASX 200 Weekly Wrap: Share market breaks 5 week winning streak

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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With low interest rates likely to be here for some time to come, it certainly is a difficult time for income investors.

While this is disappointing, investors need to worry. This is because there are plenty of ASX dividend shares that can help you overcome low rates. Two to look at are listed below:

Coles Group Ltd (ASX: COL)

This supermarket giant could be a dividend share to consider buying. This is thanks to its very positive long term growth outlook, which is being underpinned by its strong market position, defensive qualities, and focus on cutting costs with automation. The latter has seen the company invest heavily in a new distribution centres with Ocado.

One leading broker that is a fan of Coles is Goldman Sachs. It recently put a buy rating and $19.40 price target on its shares. Based on the current Coles share price of $16.93, this implies potential upside of 14.5% over the next 12 months.

This potential return gets even better when you factor in the fully franked dividends of 62 cents per share in FY 2021 and then 67 cents per share in FY 2022 that Goldman is forecasting. These dividends currently represent yields of 3.7% and 3.9%, respectively, over the next two years.

National Storage REIT (ASX: NSR)

Another dividend share to look at is National Storage. It is one of the largest self-storage operators in the ANZ region with a network of over 200 centres. And while this is a large network, management doesn’t plan to stop at that.

The company continues to see room to expand its network in the future via its development projects and growth through acquisition strategy. In fact, the company recently raised $325 million to strengthen its balance sheet and replenish its investment capacity.

This is expected to underpin solid income and distribution growth over the next decade, especially given the booming housing market. Traditionally a thriving housing market leads to growing demand for its services as people move homes or downsize.

Analysts at Ord Minnett currently have an accumulate and $2.20 price target on the company’s shares. The broker is also forecasting dividends of 8.2 cents per share in FY 2021 and then 8.6 cents per share in FY 2022. Based on the latest National Storage share price of $2.04, this will mean yields of 4% and 4.2%, respectively.

The post 2 top ASX dividend shares with attractive yields appeared first on The Motley Fool Australia.

More reading

• Temple & Webster share price surges with other ASX COVID winners
• ASX 200 Weekly Wrap: Share market breaks 5 week winning streak
• 2 growing ASX dividend shares for income investors
• Why the Coles (ASX:COL) share price is pushing higher today
• Here are 3 ASX shares going ex-dividend next week

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 owns shares of and has recommended COLESGROUP 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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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in a subdued manner. The benchmark index finished the day a fraction lower at 7,307.3 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to edge lower this morning. According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.2% lower. This follows a mixed night of trade on Wall Street, which saw the Dow Jones fall 0.45%, the S&P 500 rise 0.2%, and the Nasdaq storm 1% higher.

Oil prices tumble

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could be under pressure today after oil prices tumbled lower. According to Bloomberg, the WTI crude oil price is down 1.7% to US$72.83 a barrel and the Brent crude oil price has fallen 2% to US$74.69 a barrel. Oil prices slipped from three-year highs ahead of OPEC talks.

Tech shares could rise

Tech shares such as Afterpay Ltd (ASX: APT) and Altium Limited (ASX: ALU) could be on the rise today. This follows a very strong night of trade on the Nasdaq index, which saw the tech-heavy index jump to a record high. As the local tech sector tends to follow its lead, this bodes well for today’s session. Facebook helped drive the Nasdaq higher after the social media giant reached a trillion-dollar market cap for the first time.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged higher. According to CNBC, the spot gold price is up 0.1% to US$1,779.50 an ounce. Growing COVID-19 fears supported the safe haven asset.

Woolworths downgraded

The Woolworths Group Ltd (ASX: WOW) share price could be fully valued according to analysts at Goldman Sachs. This morning the broker downgraded the retail giant to a neutral rating with a reduced price target of $36.80. Goldman made the move after updating its valuation to account for the Endeavour demerger.

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

More reading

• ASX 200 flat, e-commerce ASX shares soar, Metcash rises
• Oil hits 3-year high! How are ASX energy shares reacting?
• Here are 3 of the most actively traded ASX 200 shares today
• The Zip (ASX:Z1P) share price is down 6%…profit taking, competition or lockdown fears?
• Warning: One thing could plunge ASX shares into crisis

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 Altium. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Altium. 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 S&P/ASX 200 Index (ASX: XJO) was essentially flat today, ending the day at 7,307 points.

Here are some of the highlights from the ASX today:

Metcash Limited (ASX: MTS)

Metcash reported its FY21 result to the market, with Mitre 10 and Home Timber and Hardware performing strongly.

The ASX 200 share said that its group revenue increased by 9.9% to $14.3 billion.

Metcash generated underlying earnings before interest and tax (EBIT) of $401.4 million, up 19.9%.

Underlying profit after tax went up 27.1% to $252.7 million. The wholesaler and hardware business announced statutory profit after tax of $239 million (up from a loss of $56.8 million in the prior year). It generated $475.5 million of operating cashflow.

The board increased its FY21 total dividend by 40% to 17.5 cents per share, whilst also announcing an off-market share buyback of up to approximately $175 million.

Metcash also increased its total ownership in Total Tools from 70% to 85% for an acquisition cost of $59.4 million.

The CEO of Metcash, Jeff Adams, said:

It has been a standout year for Metcash, with record sales underpinning significant earnings growth and record operating cashflow.

All pillars performed strongly, and the group has successfully navigated significant challenges and uncertainty associated with COVID, while continuing to implement our MFuture growth initiatives.

Bapcor Ltd (ASX: BAP)

The Bapcor share price went up around 0.7% today after revealing its goals. It told investors about the medium-term growth targets for its networks.

Bapcor was going to reveal these new targets at its investor day a few days ago, but that had to be postponed due to COVID restrictions.

Physical store targets have increased in all segments. It outlined its supply chain and technology strategy. The Asian strategy has been expanded with the addition of Tye Soon. Bapcor also expanded on its environmental, social and governance commitment. Finally, its own brand targets were also increased in all segments.

With Australian trade, it currently has 200 stores and it wants to reach 260. Bapcor is going to open between 10 to 12 new stores per annum to reach this goal.

Looking at Australian retail, it has a target of 200 stores, where it currently has 133. Bapcor is planning to add approximately 12 new Autobarn stores per annum.

In Asia, the ASX 200 share is aiming to have more than 60 Thailand stores, where it currently has six. This results in a target of $100 million revenue in Thailand. The total Asian revenue goal is $500 million. It currently has $4 million of revenue from Thailand and $200 million with Tye Soon, an Asian-listed business that Bapcor recently bought a quarter of.

E-commerce ASX shares

Lockdowns and restrictions were enacted in different states and territories across Australia over the last few days.

E-commerce ASX shares had a green day today as many of them saw their strongest day for a while.

The Kogan.com Ltd (ASX: KGN) share price went up 6.6%, the Redbubble Ltd (ASX: RBL) share price increased by 8.2%, the Cettire Ltd (ASX: CTT) share price rose 14%, the Temple & Webster Group Ltd (ASX: TPW) share price climbed 10.2% and the Adore Beauty Group Ltd (ASX: ABY) share price went up 2.5%.

The post ASX 200 flat, e-commerce ASX shares soar, Metcash rises appeared first on The Motley Fool Australia.

More reading

• Oil hits 3-year high! How are ASX energy shares reacting?
• Here are 3 of the most actively traded ASX 200 shares today
• 2 beaten down ASX 200 shares that could be buys
• These are the 10 most shorted shares on the ASX
• Warning: One thing could plunge ASX shares into crisis

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Cettire Limited, Kogan.com ltd, and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended Bapcor and Kogan.com ltd. The Motley Fool Australia has recommended Cettire Limited and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Exchange traded funds (ETFs) continue to grow in popularity with investors and it isn’t hard to see why. Never has it been so easy for investors to gain access to groups of shares from all corners of the world.

But given how many ETFs there are to choose from, it can be hard to decide which ones to add to a portfolio. To narrow things down, I have picked out two highly rated and popular ETFs to get better acquainted with. They are as follows:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF aims to track the performance of the NASDAQ-100 Index before fees and expenses. This index comprises 100 of the largest non-financial companies listed on the NASDAQ market, and includes many companies that are at the forefront of the new economy.

BetaShares notes that this area of the market is underrepresented on the Australian share market. As a result, the ETF may benefit local investors that often have a large allocation to financials and mining companies and little exposure to technology.

Among the companies you’ll be buying a slice of are global giants such as Amazon, Apple, Facebook, Microsoft and Tesla. And given their positive long term growth prospects, this bodes well for the BetaShares NASDAQ 100 ETF’s performance over the coming years.

Over the last five years the ETF has generated a return of 23.6% per annum for investors.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to 1,507 of the world’s largest listed companies from major developed countries.

Vanguard notes that the ETF offers low-cost access to a broadly diversified range of securities that allows investors to participate in the long-term growth potential of international economies outside Australia. The fund manager believes this makes it suitable for buy and hold investors seeking long-term capital growth, some income, and international diversification.

Among the companies included in the fund are giant such as Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

The Vanguard MSCI Index International Shares ETF has generated a total return of almost 14% per annum over the last five years.

The post 2 highly rated international ETFs for ASX investors appeared first on The Motley Fool Australia.

More reading

• These ASX ETFs give investors access to global tech giants
• A2 Milk and Zip were among the most traded ASX shares last week
• 2 exciting ASX tech shares that could be buys
• 3 ASX ETFs that could give investors easy exposure to the US markets
• 3 high quality ETFs for ASX investors

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares 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 S&P/ASX 200 Index (ASX: XJO) is having a fairly subdued start to the trading week this week. The ASX 200 has closed pretty much flat today, down 0.01% to 7,307 points.

One sector that didn’t really branch out for the index’s performance is ASX energy. That’s despite a big development in the crude oil price today.

According to a report in the Australian Financial Review (AFR) today, crude oil is sitting at a 3-year high. The two crude benchmarks relevant to ASX energy shares are both at their highest levels since October 2018 today.

Brent crude is sitting comfortably at US$76.18 a barrel at the time of writing. Meanwhile, West Texas Intermediate (WTI) crude is at US$74.05 a barrel.

According to the report, it is a rebounding demand for global travel that is pushing crude higher. A guessing game over what the market-setting Organisation of Petroleum Exporting Counties (OPEC) will do next is also fuelling demand. Daniel Hynes, the senior commodity strategist at ANZ, told the AFR the following:

So far [OPEC] has been able to negate the impact of travel restrictions on demand by coordinating a supply response that has kept the market from being flooded with excess cargo… It has reached a point, however, where its cautious approach could ultimately hurt the market…

The market is looking extremely tight over the next couple of quarters… We expect [OPEC+] will try to balance the market’s need for more supply against the fragile nature of the recovery in demand.

So with crude prices at a 3-year high, how are ASX energy shares faring today?

Black gold no longer for ASX energy shares?

Well, not that well, as we touched on earlier. The ASX’s largest oil company, Woodside Petroleum Ltd (ASX: WPL) was flat today at $22.53 a share. Although Woodside has recovered substantially (up 40% or so) from the lows we saw last year, it still remains more than 30% lower than the pricing we were seeing just prior to the onset of COVID-19 last year.

It’s a remarkably similar story with the ASX’s other pure oil shares such as Oil Search Ltd (ASX: OSH) and Santos Ltd (ASX: STO).

Why? Well, Hynes reckons it could be the level of risk that investors are seeing with the current oil market. Noting that crude oil consumption remains well below pre-pandemic levels, and 8% below 2019 levels, Hynes reckons that the fact that international borders remain all but closed is at play here:

[Oil demand could] struggle to rise further if the new delta variant of the coronavirus takes hold in major regions and forces officials to hold onto some restrictions.

Hynes is also looking to the potential of Iranian oil re-entering the global market following a potential loosening of sanctions. It looks like it will be yet another interesting year for oil in 2021.

The post Oil hits 3-year high! How are ASX energy shares reacting? appeared first on The Motley Fool Australia.

More reading

• Here are 3 of the most actively traded ASX 200 shares today
• Warning: One thing could plunge ASX shares into crisis
• Here’s why the Freelancer (ASX:FLN) share price is surging 7% today
• The ASX shares most impacted by Australia’s job squeeze
• Temple & Webster share price surges with other ASX COVID winners

Motley Fool contributor Sebastian Bowen 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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Microsoft Corporation (NASDAQ: MSFT) has been the target of a cyberattack less than a week after eclipsing a $2 trillion market capitalisation.

On Friday, the US-based tech giant disclosed it had suffered a breach at the hand of hackers. Let’s take a look at the details.

Microsoft breach links with SolarWinds cyberattack

In a post to its security response center, Microsoft divulged that it was tracking new cyberattacks conducted by Russian hacking group Nobelium.

The group were successful in installing malicious software on a computer used by a Microsoft customer support employee. Nobelium proceeded to steal sensitive information which would be used to target Microsoft customers.

Accordingly, Microsoft responded by securing and removing access to the compromised device. Afterwards, the company noted its customer service agents have access to minimal personal information as part of its ‘Zero Trust’ approach to customer information.

Reportedly three customers were affected by the compromised data. All customers that were compromised or targeted were being contracted by the company.

Furthermore, the cyberattack on Microsoft was part of a larger attack targeting 36 countries. This activity predominately targeted IT companies and government organisations.

Cyberattack déjà vu

The hacking group involved in this breach was also responsible for the SolarWinds Corp (NYSE: SWI) attack in December 2020.

That breach was one of the largest in recent history, impacting 18,000 users including the U.S. Treasury, Department of Commerce, and Homeland Security.

“These attacks appear to be a continuation of a multiple efforts by Nobelium to target government agencies involved in foreign policy as part of intelligence gathering efforts,” said Microsoft.

Investing in combatting cyberattacks

Companies and governments are investing billions to fend off the rapidly growing occurrence of cyberattacks. With it becoming an increasing problem, the amount of funding funnelling into the sector is unprecedented.

So, if you are looking for ways to try and capitalise, there are options out there. One ASX-listed example is the Betashares Global Cybersecurity ETF (ASX: HACK). The exchange-traded fund (ETF) is invested in 40 of the world’s biggest and most innovative companies in the space.

Moreover, the top 5 holdings in the ETF currently consist of Crowdstrike Holdings Inc (NASDAQ: CRWD), Zscaler Inc (NASDAQ: ZS), Okta Inc (NASDAQ: OKTA), Accenture PLC (NYSE: ACN), and Cisco Systems Inc (NASDAQ: CSCO).

The HACK ETF climbed 0.42% higher to $9.52 per share in today’s session. Meanwhile, over the past 12 months, the fund has delivered a 17.8% return.

The post Microsoft (NASDAQ:MSFT) customers compromised in a cyberattack appeared first on The Motley Fool Australia.

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• 2 ASX shares that could be worth looking at this weekend
• Microsoft (NASDAQ:MSFT) share price lifts company into $2 trillion club
• These ASX ETFs give investors access to global tech giants
• 2 exciting ETFs for ASX growth investors
• Will Microsoft’s Xbox game lineup match Sony’s PlayStation dominance?

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There are a lot of growth shares out there for investors to choose from. To narrow things down, I have picked out two that analysts love.

Here’s why analysts rate these growth shares highly:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. Over the past 80 years, Breville has become an iconic Australian brand, developing high quality and innovative products for kitchens around the world.

The good news is that the leading appliance manufacturer’s growth is not expected to end any time soon. This is thanks to strong demand, favourable industry tailwinds, its international expansion, and its ongoing R&D investment.

One leading broker that is confident that Breville’s strong growth can continue for some time to come is UBS. It is forecasting double-digit sales growth through to at least FY 2023.

In light of this, the broker rates its shares as a buy and has put a $35.70 price target on them.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is Australia’s largest enterprise software company. It provides a global software as a service (SaaS) ERP solution that transforms business and makes life simple for its customers. Management notes that its integrated enterprise SaaS solution is available on any device, anywhere and anytime and is incredibly easy to use. A testament to this is that over 1,200 leading corporations, government agencies, local councils and universities are powered by its software.

This has underpinned strong recurring revenue growth and is expected to continue doing so over the remainder of the 2020s. So much so, management is targeting annualised recurring revenue (ARR) of over $500 million by FY 2026. This is over double its current base ARR of $233 million.

Morgans is very positive on the company and recently put an add rating and $10.00 price target on its shares. It believes TechnologyOne can achieve its aspirational ARR target by FY 2026 based on existing legacy customer migration and new additions.

The post Here’s why analysts love these ASX growth shares appeared first on The Motley Fool Australia.

More reading

• 4 top ASX 200 shares analysts rate highly
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• 2 quality ASX 200 tech shares that might be buys

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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