Tag: Motley Fool

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

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

Afterpay Ltd (ASX: APT)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $145.00 price target on this payments company’s shares. The broker notes that rival PayPal has decided to increase its buy now pay later pricing. The payments giant is increasing its rates to 4% from 3.2% for a typical US$100 transaction. This compares to the 3.8% that Afterpay typically charges in the market. It feels this signals that PayPal isn’t competing with Afterpay on pricing, which is a big positive for the company. The Afterpay share price is fetching $122.25 today.

Qantas Airways Limited (ASX: QAN)

Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and lifted their price target on this airline operator’s shares to $7.00. According to the note, the broker believes that Qantas’ shares are undervalued at the current level. Particularly given the ongoing improvement in domestic travel throughout 2021. And while it doesn’t expect its overall capacity to normalise for a little while to come, it is confident the company will be cash flow positive. The Qantas share price is trading at $4.74 today.

ResMed Inc. (ASX: RMD)

Analysts at Macquarie have upgraded this sleep treatment focused medical device company’s shares to an outperform rating with a $34.85 price target. According to the note, the broker believes ResMed has a real opportunity to win market share following the recent recall of the Philips DreamStation CPAP devices. In addition to this, it is a fan of ResMed due to the strength of its balance sheet. It feels this gives it the flexibility to fund its growth or even return funds to shareholders. The ResMed share price is currently fetching $32.45.

The post Top brokers name 3 ASX shares to buy today 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’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Property group Stockland Corporation Ltd (ASX: SGP) announced this morning that it will boost its final dividend by a quarter compared to last year.

Stockland will pay a second half dividend of 13.3 cents a share compared to the 10.6 cents it paid in 2020.

The increase will be welcomed by shareholders, although the payout hasn’t recovered to pre-COVID levels. The commercial and residential property group paid a final distribution of 14.1 cents back in 2019.

Stockland’s dividend sitting at ~5%

Nonetheless, investors can at least look forward to the FY21 full year distribution coming in at 24.6 cents a share.

Based on Stockland’s share price of $4.80 on Tuesday, that gives the group a yield of 5.1%. That’s not a bad return given that interest rates here are still stuck at record lows – at least for the time being.

However, investors should be aware that Stockland doesn’t pay franking credits, so what you see is what you get.

Stockland share price doesn’t react to dividend news

The Stockland share price didn’t jump on the dividend news either. Its shares slipped 0.6% this morning to $4.77.

This is probably because the rebound in distributions is inline with management’s guidance and few would be surprised.

Stockland’s dividend outlook

Having said that, supporters believe that Stockland’s dividend will continue to increase in the following year as the group shakes off the impact of COVID-19.

Investors will get to test their belief when Stockland releases its full year results on 20 August. Management should have more to say about the group’s outlook then.

The Record Date for determining the distribution entitlement is 30 June 2021. The distribution payment will be made on Tuesday 31 August 2021.

The post Stockland (ASX:SGP) unveils biggest dividend in 2 years appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. 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 Sky Network Television Limited (ASX: SKT) share price is gaining this morning following the pay-TV and free-to-air network’s latest partnership with the NRL and New Zealand Rugby League (NZRL). At the time of writing, Sky Network shares are up 3.23%, trading at 16 cents.

Despite earnings before interest, tax, depreciation, and amortisation (EBITDA) increasing in the latest half-year result, the company’s share price has jostled between 15 cents and 17 cents since late February.

Let’s take a look at this morning’s news.

Try time with NRL and NZRL

In an announcement to the market this morning, Sky Network has landed a partnership with Australia’s NRL and New Zealand’s NZRL through to the end of 2027.

The agreement will see Sky continue to provide sports fans with every NRL and State of Origin game. Additionally, all NZRL-run matches involving the Kiwis and the Kiwi Ferns will stream via the company’s service.

A point of difference from previous agreements is the new digital aspect. According to Sky Network, this deal involves a digital partnership with the NRL and NZRL in a bid to deliver content that is convenient for viewers.

Growing the game

As part of the agreement, Sky Network will work closely with the NRL and NZRL to grow the game of Rugby League in New Zealand.

The focus will be on encouraging the next generation of league watchers and players. This push will span from grassroots to high performance and have an emphasis on the women’s game.

Sky Network Chief Executive Sophie Moloney commented on the partnership:

We love Rugby League and so do many New Zealanders. More than 1.1 million New Zealand fans have tuned into the NRL this year already.

In 2020 League lovers and occasional sport fans alike enjoyed 276 matches across NRL, the Kiwis and Kiwi Ferns, State of Origin, the NSW and QLD Cups and the National Premiership Men’s and Women’s.

Sky Network share price recap

The Sky Network Television share price has been unable to outperform the S&P/ASX 200 Index (ASX: XJO) so far this year.

At the time of writing, the company’s share price is up 3.2% year to date. This compares to the benchmark index’s return of 11.1% over the same period.

Sky remains in the small cap basket with a market capitalisation of $279 million.

The post Sky Network (ASX:SKT) share price flies following NRL partnership appeared first on The Motley Fool Australia.

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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 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.

With the advances in both software and hardware, investors are recognizing that every company is a technology company. Rather than a back office function supporting a few productivity tools, technology has become a differentiator in industries that may seem to have little to do with software and semiconductors.

In the biotech industry, Moderna (NASDAQ: MRNA) recognized this from the start. It was founded in 2010 with an eye on tech-enabled speed as its killer app. The company leveraged the foresight during the pandemic to deliver a COVID vaccine in less than a year. Looking toward the future, management continues to highlight how technology will be the driving force behind its success as a new kind of drug developer.

Set up for success

In its initial 2018 filing to go public, Moderna’s ambition was to become a platform for drug development. That’s different from most biotechs that raise money to tackle a particular disease. The company even built its Norwood, Massachusetts facility in 2018 as a fully integrated, digital facility capable of every process that converts raw materials into finished vials for an administration site. Thanks to manufacturing automation, management estimates 10 million doses per year could be manufactured there. 

Building the company as tech-focused from the start fed the company’s six digital building blocks: cloud, integrated processes, internet of things, automation, analytics, and artificial intelligence (AI). These allow it to bring complex data sets together in easy-to-use interfaces. That helps researchers improve decision making, predict potential hurdles, and quickly scale what they learned.

Leveraging the advantage

If the proof is in the results, Moderna’s speak for themselves. The biotech took only 42 day from sequencing the SARS-C0V-2 genome to shipping a drug for the phase 1 trial. However, the Moderna COVID-19 vaccine isn’t the only drug benefiting from the company’s use of technology. 

For its personalized cancer vaccine (PCV), it is able to take a biopsy, sequence the tumor’s genome, then design, manufacture, and administer the drug all in a few weeks. Since 2018, the speed of this process has come down 40% while the cost has dropped 65%. Similarly, the cost to produce its vaccine for cytomegalovirus has fallen 69% since 2019. 

Yet another application is Moderna’s use of AI. The company is able to predict virus mutations — like those in SARS-CoV-2 — as well as model the behavior of proteins and enzymes. This essentially accelerates the process of evolution so researchers can select appropriate candidates for further development. Again, this streamlines steps and accelerates the process.

A framework for the future

CEO Stephan Bancel wants to see those types of examples in everything Moderna does. Citing pockets of AI expertise surrounded by leaders who have never used it, the company is establishing an AI academy. The goal is to leverage the technology to accelerate learning throughout the entire enterprise. It’s part of the Bancel’s commitment to reinvest profits from the COVID vaccine back into the business. Traditional drugmakers should take note.

In the first quarter of 2021, spending on research and development was up four times what it was in the same period a year ago. The spending on digital, automation, and AI is projected to be $170 million. That’s almost three times what it was last year and more than six times what it was in 2019. Bancel is taking advantage of the COVID windfall to extend the company’s technological advantages into areas like clinical trial operations and adverse event analysis. With $8.2 billion of cash on the balance sheet at the end of March, and agreements for hundreds of millions of doses of its COVID vaccine stretching out years, Moderna has a lot of ammunition.

In 2020, the company’s technology advantage shone bright. As it invests more to accelerate automation and AI, the gap between its scientific productivity and traditional drug developers is set to expand. From the beginning, Stephan Bancel seemed to know what Moderna’s secret weapon would be, and now he’s reloading.

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

The post Is this the secret ingredient that could make Moderna shareholders rich? appeared first on The Motley Fool Australia.

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Jason Hawthorne has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. 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 De Grey Mining Limited (ASX: DEG) share price is pushing higher on Wednesday.

In early trade, the gold explorer’s shares are up 5% to $1.34.

Why is the De Grey share price is pushing higher?

The catalyst for the rise in the De Grey share price today has been the release of an update on its Mallina Gold Project in Western Australia.

According to the release, the measured and indicated mineral resources across the Mallina Gold Project comprise 3.8M ounces at 1.4g per tonne of gold. This is being underpinned largely by the Hemi deposit, which contributes 2.8M ounces at 1.3g per tonne of gold.

Management believes these mineral resources provide a strong platform for a scoping study targeted for completion in the September quarter 2021. It also notes that there is clear potential for the maiden Hemi and Global Mallina Gold Project mineral resources to grow along strike and at depth. Particularly given that substantial drilling programs have continued at Hemi since the mineral resource assay cut-off date of 17 May 2021.

Management commentary

Comments by De Grey’s Technical Director, Andy Beckwith, appear to have given De Grey’s shares a lift as well.

He said: “Hemi is an exceptional new Western Australian gold discovery which is redefining the gold potential of the Pilbara and has changed the future for De Grey and our shareholders. De Grey’s exploration team has taken Hemi from discovery to a Tier 1 scale 6.8Moz gold deposit in a short timeframe.”

“RC and diamond drilling commenced only 15 months ago and further extensions are expected at each deposit as drilling continues. Twelve drill rigs are currently focused on expanding Hemi as well as testing numerous targets within our large 100% owned, 150km long land package. I have no doubt we will be drilling and finding additional resources for many years to come,” Mr Beckwith added.

Following today’s gain, the De Grey share price has now doubled in value since this time last year.

The post Up 5%: The De Grey (ASX:DEG) share price is now up 100% in 12 months 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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Shares in Santos Ltd (ASX: STO) have been flourishing this year, with most of the company’s 2021 gains appearing in the last 30 days. At the time of writing, the Santos share price is trading at $7.34, down 1.87%.

Interestingly, while the Santos share price has been gaining, the oil and gas producer has been quiet on the news front. It hasn’t released any price-sensitive news to the ASX since late April.

So, what’s been driving Santos shares upwards? Let’s take a look.

The month that’s been for Santos

The last 30 days haven’t exactly been a smooth ride for Santos but the price of crude oil has been hitting multi-year highs.

Last week, Santos’ managing director Kevin Gallagher told the annual oil and gas industry (APPEA) conference that investors and lenders alike were abandoning western oil and gas industries.

Gallagher also told the conference that decarbonisation strategies, like carbon capture and storage, sequestration, and using natural gas to produce hydrogen, were critical for Australia’s fossil fuel industries. He said:

Without decarbonisation… the window of opportunity for developing our oil and gas resources is rapidly closing…

Something [all oil and gas industry participants] can all agree on is that a net-zero future is critical for our industry.

However, despite Gallagher’s warning, the Santos share price has been soaring alongside energy commodity prices.

Just yesterday, the Santos share price rocketed 2.75% while oil hit its highest price since 2018.

The Brent crude oil price has gained 12.3% over the last 30 days.

Today, a barrel of oil is worth $74.72, 0.4% less than it was yesterday.

Natural gas futures have also increased 11.4% since this time last month.

Santos share price snapshot

It goes without saying that the Santos share price has been performing well lately.

Currently, the company’s shares are 14% higher than they were at the start of the year. They have also gained 35% since this time last year.

The energy giant has a market capitalisation of around $15 billion, with approximately 2 billion shares outstanding.

The post The Santos (ASX:STO) share price has gained 9% in a month appeared first on The Motley Fool Australia.

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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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The Actinogen Medical Ltd (ASX: ACW) share price has been a strong performer on Wednesday morning.

At the time of writing, the shares of the biotechnology company developing an innovative treatment for cognitive impairment are up 17% to 17 cents.

This means the Actinogen share price is now up an incredible 750% since the start of the year.

Why is the Actinogen share price charging higher?

Investors have been bidding the Actinogen share price higher today after it provided an update on its dealings with the US Food and Drug Administration (FDA).

According to the release, the company has received written supportive US FDA advice in response to its Pre-Investigational New Drug Application (Pre-IND) submission for its fragile X syndrome (FXS) program. FXS is an inherited genetic disease passed down from parents to children that causes intellectual and developmental disabilities.

Actinogen sought a Pre-IND meeting with the FDA to discuss its lead molecule, Xanamem, and the FXS clinical program. Today’s release reveals that the advice received indicates that the data package and trial design proposed for the IND submission would be sufficient, subject to final review of all supportive documentation submitted. As a result, the company plans to file the full IND submission during the third quarter of 2021.

In addition, Actinogen advised that the two parties are also in agreement on the proposed Phase II adolescent patient population to be studied. The Phase II XanaFX study will be a randomised, placebo-controlled, double-blind, 12-week trial investigating the safety and efficacy of Xanamem in male adolescents who suffer from FXS.

The study will be conducted in Australia and is expected to commence in the fourth quarter of this year.

Actinogen’s CEO and MD, Dr Steven Gourlay, commented: “The FDA’s positive Pre-IND advice for FXS marks a significant milestone in the clinical development of our second disease program. It provides greater confidence that we will obtain support from the FDA for the investigation of Xanamem in this disease that has a high unmet medical need for effective therapies.”

“There are no currently approved therapies for FXS. The Company is advancing the planning for its Phase II XanaFX trial which is expected to commence by the end of the year. Actinogen is now positioned to progress its clinical programs with multiple Phase II trials and is well funded to advance the development pipeline,” he concluded.

The post Why the Actinogen (ASX:ACW) share price is rocketing 17% 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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Shares in Novonix Ltd (ASX: NVX) are shooting up in early trade today after the company announced it has expanded its anode materials business in Chattanooga, Tennessee.

At the time of writing, the Novonix share price is up 5%, trading at $2.25.

What did Novonix announce?

In today’s statement, Novonix advised it will fulfil its contractual obligations in purchasing a major new plant. Novonix has plans to retrofit the building, formerly held by Alstom, to become its second facility in Chattanooga.

Once renovations are completed, the plant will produce up to 8,000 tonnes per annum of anode materials. Together with its existing operations at the first plant, Novonix will have total capacity of 10,000 tonnes per year.

The company’s new facility will come online by the 2023 calendar year.

Novonix CEO, Chris Burns commented:

We are excited to be announcing this next phase of expansion of our anode materials business in Tennessee.

Chattanooga has been a great location for our operations over the past four years, and we look forward to growing the company in the expanding south-east hub of electric vehicle battery manufacturing.

Novonix also advised that it was progressing with agreements made with Sanyo Electric and Samsung SDI. Both partnerships aim to develop high-purity lithium hydroxide and produce lithium-ion batteries for electric vehicles.

Novonix highlighted that it was well-positioned to meet the growing needs of the battery supply chain in North America. This phase of growth will support the integration of anode materials in lithium-ion battery packs for over 100,000 electric vehicles.

About the Novonix share price

At the start of 2021, Novonix shares accelerated to a record high of $4.23 on the back of positive investor sentiment. The company’s share price has risen 75% in the past 6 months, and is up almost 120% since this time last year.

Based on valuation metrics, Novonix commands a market capitalisation of around $865 million, with approximately 404 million shares on issue.

The post Why the Novonix (ASX:NVX) share price is surging 5% today 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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The Althea Group Holdings Ltd (ASX: AGH) share price has been a positive performer on Wednesday.

In early trade, the cannabis company’s shares are up 4.5% to 33.5 cents.

Why is the Althea share price on a high today?

Investors have been buying Althea’s shares this morning after it announced its expansion into a new market.

According to the release, the company has completed its first shipment of Althea medicinal cannabis products to its local partner in South Africa. Althea’s exclusive distributor in the country, Africann, is a licensed cannabis wholesaler specialising in the import and distribution of medicinal cannabis products.

Management believes this first shipment of Althea products is a major achievement for the company and expects it to provide Althea with an early mover advantage in the emerging South African medicinal cannabis industry. This market is estimated to be worth approximately US$667 million by 2023.

Althea’s CEO, Joshua Fegan, believes that this latest development supports its ambition to become the world’s leading supplier of cannabis-based medicines.

He said: “We are excited to have exported our initial shipment of Althea products for South Africa. This development once again reflects our ambition and progress in becoming the world’s leading supplier of cannabis-based medicines.”

“The Althea brand continues to build trust and enduring loyalty with Healthcare Professionals and patients all over the globe, with South Africa the latest country able to experience our unrivalled market access program,” Mr Fegan concluded.

Investors will no doubt be hoping that today’s development is the catalyst to getting the Althea share price heading in the right direction again.

After all, even after today’s gain, the Althea share price is down by 24% since the start of the year. This is similar to the declines being recorded by fellow cannabis shares such as Cann Group Ltd (ASX: CAN) and Creso Pharma Ltd (ASX: CPH) in 2021.

The post Here’s why the Althea (ASX:AGH) share price is racing higher today 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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Investors looking for growth options might want to look at the shares listed below.

Here’s why a leading broker is tipping them as buys right now:

Hipages Group Holdings Ltd (ASX: HPG)

Hipages is a leading Australian-based online platform and software as a service (SaaS) provider. The company’s platform connects tradies with residential and commercial consumers, providing job leads from homeowners and organisations looking for qualified professionals.

The company also offers tradies its Call of Service job management software, which improves their productivity by streamlining their workflow and taking away the stress of doing admin.

Last week, analysts at Goldman Sachs retained their buy rating and lifted their price target to $3.40. The broker has been impressed with its form in recent months, which is supporting its bullish sentiment.

It commented: “Momentum is being maintained on the consumer side of the marketplace with monthly website visits up +21% YoY. The combined effect of tradie and consumer growth is an increase in the number of jobs posted per tradie rising over the forecast period from c.36 in FY20 to c.53 by FY23E. Growth in this metric is a key indicator of marketplace balance and demonstrates the value tradies are deriving from the platform. This is a key driver of our forecast 11% CAGR in ARPU.”

Xero Limited (ASX: XRO)

Another ASX growth share to look at is Xero. It is a leading cloud-based full-service business and accounting solution provider which has been growing at a rapid rate in recent years.

This continued in FY 2021 despite the pandemic’s impact on small businesses across the world. For example, in May the company released its full year results and revealed an 18% increase in revenue to NZ$848.8 million.

This was driven by a 20% increase in subscribers to 2.74 million. This comprises ANZ subscribers of 1.56 million and international subscribers of 1.18 million. And while this may be a large number, it is only a fraction of a cloud accounting subscriber total addressable market estimated at 45 million. This gives it a long runway for growth in the future.

Goldman Sachs is also very positive on Xero’s future. Thanks to its international expansion, the ongoing shift to the cloud, and the monetisation of its app ecosystem, it believes the company could have a multi-decade runway for growth. The broker has a buy rating and $153.00 price target on its shares.

The post 2 ASX growth shares this leading broker loves 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 Hipages Group Holdings Ltd. and Xero. The Motley Fool Australia owns shares of and has recommended Xero. 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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