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The tech sector is a sea of red today but that hasn’t stopped the Bravura Solutions Ltd (ASX: BVS) share price from charging higher.

The financial technology company’s shares ended the day with a gain of 3% to $3.24.

Why is the Bravura share price avoiding the selloff?

The catalyst for the solid performance by the Bravura share price on Thursday appears to have been the release of a positive broker note.

According to a note out of Goldman Sachs this morning, its analysts have retained their buy rating and lifted their price target on the company’s shares to $3.90.

Based on the current Bravura share price, this implies potential upside of 20% over the next 12 months excluding dividends.

Why is Goldman bullish on Bravura?

Goldman Sachs notes that earlier this week Bravura reiterated its FY 2021 guidance for net profit after tax of $32 million to $35 million and second half revenue growth of 10% half on half.

Goldman said: “Given there is less than two months of FY21 to go there is increased likelihood vs the February update that the guidance will be achieved. Brexit and then COVID have disrupted BVS new client wins. The company is now experiencing positive momentum, including increased client engagement in the UK as the economy opens up with the vaccine roll-out.”

Significant medium term opportunity

With the company now recovering from a difficult period, Goldman appears confident it is onwards and upwards from here thanks to its significant market opportunity.

It explained: “The medium term opportunity for BVS looks significant: it is estimated by the company its TAM in the UK is ~GBP1.2bn and in Australia ~A$1.0bn with a current market share of c.10% and c.5% respectively, providing a significant runway for growth. We expect earnings to recover in FY22, driven by new client wins from the strong pipeline with a resumption in UK demand from projects delayed in part by COVID. While we acknowledge that there is still some uncertainty around timing of wins, we think the risks are reducing as the UK re-opens.”

Attractive valuation

Another reason that Goldman Sachs is bullish on the Bravura share price is its valuation, which it feels is undemanding.

Goldman commented: “The valuation for BVS looks undemanding and it is trading at the bottom end of its historical trading range on both a P/E and EV/EBITDA basis; it is currently trading at an FY21/FY22 EV/EBITDA of 14.3x/11.1x. […] Our 12m TP moves up +5% to A$3.90, implying a 24% total return; we reiterate our Buy rating.”

More reading

• 2 dirt cheap ASX shares to buy next week
• These oversold ASX tech shares are ripe for the picking

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 Bravura Solutions Ltd. The Motley Fool Australia has recommended Bravura Solutions 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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Shares in Ioneer Ltd (ASX: INR) have lifted today after the miner released its RIU Resources Round-up conference presentation.

The Ioneer share price is up 5.7%, trading at 37 cents per share at the time of writing, against broader losses this week.

Ioneer is an international mineral exploration company, focused on the Rhyolite Ridge lithium-boron project in Nevada, the United States, which is the subject of today’s report. Geographically, the group has a business presence in Australia and North America.

Ioneer talks lithium at RIU Resources

In today’s presentation, Ioneer made a bullish case about its lithium production capabilities. 

The company told the conference it expected to be “the lowest cost lithium producer in the world with industry-leading margins”, noting that its “strong project economics” were resilient across a wide range of commodity prices. 

Whether or not that comes to fruition in a market increasingly saturated with mainstream attention remains to be seen. It’s perhaps no coincidence that Ioneer was keen to impress its versatility outside of lithium as well, noting its “large resource base with expansion opportunities”.

Ioneer also highlighted the company’s close relationship with the US Government and battery producers, saying it to expected to be one of the first major lithium suppliers in the US due to its location near emerging battery mega factories. The US administration is attempting to lead a global shift towards renewable energy sources and wants to safeguard both its capacity to produce the materials needed and the eventual production of the final technology.

The company said it was “well-positioned” to benefit from an increased focus on supply chain security by the current US administration, noting the “strategic nature” of renewable energy assets.

Australia is attempting to encourage similar ambition through the Government’s recent $1.5 billion advanced manufacturing fund that focusses on processing raw materials domestically.

Ioneer currently produces 22,000 tonnes of lithium hydroxide and 174,400 tonnes of boric acid annually.

Ioneer share price snapshot

The Ioneer share price is another ASX lithium share that has gone through the roof over the past 12 months, rising more than 200%. It climbed four times higher between October 2020 and February this year before declining slowly since that point. The Ioneer share price is up 31% year to date.

More reading

• Why the Ioneer (ASX:INR) share price is on watch today

Motley Fool contributor Lucas Radbourne-Pugh 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 TPG Telecom Ltd (ASX: TPG) took a tumble today amid news the company’s chief financial officer Stephen Banfield is heading for the door. By the market’s close, the TPG share price had dropped 5.59% to $5.24.

Banfield’s resignation comes barely a month after TPG founder David Teoh resigned, also sending the company’s share price plummeting 6%. 

CFO resignation

Banfield was appointed CFO of TPG Telecom in August last year, having previously been the CFO of TPG’s wholly-owned subsidiary, TPG Corporation – a position he held for 12 years.

The TPG share price has today followed the same pattern it did on 26 March when David Teoh stood down, a day it hasn’t yet recovered from. Between Teoh resigning in late March and Banfield’s resignation this morning, the TPG share price has dropped by around 18%.

The reason Banfield gave for his resignation was, after 20 years with TPG, he feels it’s time to move on. He said:

It has been a great privilege to work for companies within the TPG group for the past 20 years and I am proud of what TPG has achieved over that time.

I look forward to working with [TPG Telecom CEO Iñaki Berroeta] and my team over the coming months to ensure a smooth transition.

Berroeta thanked Banfield for his service to the company, saying:

It has been a pleasure working with Steve during the merger integration [with Vodafone Hutchison Australia] and I thank Steve for his considerable contribution to the TPG business.

In particular, I thank Steve for his leadership in bringing the finance teams of TPG and VHA together as part of merger integration.

Banfield will remain as TPG’s CFO until November unless a successor is found sooner. TPG stated that a replacement CFO will be announced in due course.

TPG share price snapshot

The news of another upper management resignation comes at a bad time for TPG shares, which are still struggling on the ASX.

Currently, the TPG Telecom share price is down 26% year to date. It’s also down by around 40% since Vodafone and TPG merged, with the new telecommunication company relisting on the ASX in June 2020.

The company has a market capitalisation of around $10.3 billion, with approximately 1.8 billion shares outstanding.

More reading

• Why the Telstra (ASX:TLS) share price could be heading higher from here
• Is the Telstra (ASX:TLS) share price better value than the TPG (ASX:TPG) share price?
• What’s with the Telstra (ASX:TLS) share price and other telcos today?
• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• These were the worst performing ASX 200 shares last week

Motley Fool contributor Brooke Cooper 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 Boom Logistics Limited (ASX: BOL) share price is soaring higher today. This comes after the company announced it has been awarded a new contract.

During late-afternoon trade, the lifting solutions and crane provider’s shares are selling for 15 cents a pop, up 7.1%.

What’s in the deal?

According to the release, Boom advised it has won a new contract at the BHP Group Ltd (ASX: BHP) Olympic Dam. The award will support a major smelter shutdown project that is scheduled to commence in August 2021.

The project will complement Boom’s current maintenance work that has been ongoing since 2012 at the BHP Olympic Dam.

Under the agreement, Boom will supply additional cranes and speciality rigging and engineering services for the shutdown. Equipment is expected to be mobilised from June, with the project running from August to November this year.

The company is forecasting the project to generate revenue of around $15 million which will fall in the FY22 calendar.

Boom CEO and managing director, Tony Spassopoulos commented:

Boom Logistics continues to win new mining maintenance work. We are very proud of our longstanding relationship providing services to BHP Olympic Dam, and pleased to support another major smelter shutdown program.

During the SCM21 shutdown, Boom Logistics will have 40 cranes and approximately 150 crew on site at Olympic Dam. We have an experienced team on site with the priority on safety first and project delivery. Shutdowns are an essential part of mining maintenance, contributing to safe and effective production and productivity improvement.

Boom highlighted that it has firm shutdown bookings planned in Queensland and Western Australia. Furthermore, the GE Bango wind farm construction and the Snowy 2.0 infrastructure project is projected to run into Q1 FY22.

Boom share price summary

Over the past 12 months, the Boom share price has gained above 60%, however, year-to-date performance has sagged 16%. The company’s shares reached a 52-week high of 19 cents in December 2020, before treading lower.

Based on the current share price, Boom commands a market capitalisation of roughly $64 million, with 427.7 million shares outstanding.

More reading

• Move over Bitcoin! Ethereum prices are rising fast
• Sezzle (ASX:SZL) share price sinks 5%: Time to buy?
• Blue chip ASX 200 shares breaking out into 52-week highs
• CSL (ASX:CSL) share price heads lower on haemophilia B deal
• Venture Minerals (ASX:VMS) share price slides 6% on project updates

Motley Fool contributor Aaron Teboneras 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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Ethereum (CRYPTO: ETH) is not the largest cryptocurrency out there. That honour goes to Bitcoin (CRYPTO: BTC). But, Ethereum is the second largest in terms of market capitalisation. And if the pricing gains of the past month continue, it won’t be too long before it claims the top seat.

The price of Ethererum has skyrocketed in recent weeks. Since 6 April, the cryptocurrency is up 66.88% to US$3,443 a coin today (at the time of writing). By comparison, Bitcoin has lost 0.9% over the same period and is currently trading at US$57,000 a coin.

Over the past 12 months, Bitcoin is up 528%, while Ethereum is up 1,672%.

If you’re not too familiar with Ethereum, it is a cryptocurrency that functions a little differently from Bitcoin, even though the two coins use similar blockchain technology. Whilst Bitcoin was established with a fixed number of coins available for mining, Ethereum has no such limit. Ether tokens can also be used to create contracts between different holders. It’s that which is what has a lot of people excited about its future.

But why now? Why is Ethereum rising so rapidly?

Ethereum pips Bitcoin

Well, Simon Peters from eToro reckons Ethereum is continuing to “price its case”. He points to a recent announcement from the European Investment Bank. The Bank has recently announced the issuance of its first ‘digital’ bonds using blockchain technology. These bonds will be issued using the Ethereum network. He also notes that “the number of DApps (Decentralised Applications) continues to grow on the platform, and there is now growing demand from institutional investors for the Ethereum crypto asset itself”.

Peters also points out that S&P Dow Jones Indices has, for the first time, announced it has launched 3 new ‘crypto asset indexes’. These will track Bitcoin, Ethereum and a combination of both. If these indexes lead to a new range of exchange-traded funds (ETFs) that allow retail investors to invest in cryptocurrencies through them, we might see even more buying pressure in the assets themselves. And it’s not like there’s any shortage of that.

Aussie investors certainly can’t get enough of the crypto arena, as my Fool colleague pointed out yesterday. This sure has been an interesting space to watch, and it looks though that isn’t going to change.

More reading

• It’s not just Bitcoin (CRYPTO:BTC) driving ASX investor interest
• Are Coinbase (NASDAQ:COIN) shares worth a look?
• Warren Buffett hates Bitcoin. Here’s why
• How Tether is fuelling the Bitcoin price rally
• Some takeaways from Warren Buffett’s Berkshire Hathaway meeting

Sebastian Bowen owns shares of Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Bitcoin. 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 Sezzle Inc (ASX: SZL) share price is out of form and sinking lower on Thursday.

In afternoon trade, the buy now pay later (BNPL) provider’s shares are down over 5% to $8.50.

Why is the Sezzle share price sinking today?

The weakness in the Sezzle share price on Thursday appears to have been driven by a broad selloff of tech shares.

It isn’t just Sezzle that is under pressure. Rival BNPL shares Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are also recording sizeable declines of their own today.

This has ultimately led to the S&P/ASX All Technology Index (ASX: XTX) tumbling 2.8% lower today.

Weakness on Wall Street’s tech-focused Nasdaq index and the rotation from growth to value options appear to be responsible for this.

Is this a buying opportunity?

One broker that appears to see a lot of value in the Sezzle share price is Ord Minnett.

Earlier this week, the broker responded very positively to Sezzle’s recent first quarter update.

According to the note, the broker has retained its buy rating and lifted its price target on the company’s shares to $11.90.

Based on the current Sezzle share price, this implies potential upside of 40% over the next 12 months.

What did the broker say?

Ord Minnett was impressed with Sezzle’s first quarter update, noting that it delivered underlying merchant sales (UMS) growth ahead of its expectations.

In addition to this, the company’s repeat usage metric of 90.7% was better than its analysts were forecasting.

Another reason the broker is positive on the company is its valuation. It notes that the Sezzle share price is attractively priced in comparison to rival Afterpay. It also sees positives in the company’s pursuit of a US IPO and listing.

All in all, Ord Minnett appears to believe that it could be worth taking a closer look at Sezzle’s shares following the recent weakness. Particularly if you’re looking for exposure to the rapidly growing BNPL market.

More reading

• Why the Afterpay (ASX:APT) share price is sliding 5%
• ASX 200 tech shares under pressure after Nasdaq selloff
• Why Dubber, Mesoblast, PointsBet, & Sezzle shares are storming higher
• Sezzle (ASX:SZL) share price shoots higher on Q1 update and US listing plans
• ASX 200 rises, Woolworths falls, Fortescue was flat

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 ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Sezzle 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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The S&P/ASX 200 Index (ASX: XJO) is closing in on its pre-COVID record high of 7,160, currently sitting at 7,055.10.

These 3 blue chip ASX 200 shares have followed suit, recently breaking above pre-COVID highs and, in some cases, eyeing multi-year highs. Let’s take a look.

ASX 200 shares breaking out into 52-week highs 

Commonwealth Bank of Australia (ASX: CBA)

The Commonwealth Bank share price climbed 2.5% on Wednesday to $92.72, a 6-year high for the ASX 200 heavyweight, and has topped that again today, currently swapping hands for $92.76 a share.

While there has been no price-sensitive news out of the bank recently, its big four stablemate Australia and New Zealand Banking Grp Ltd (ASX: ANZ) recently released a positive set of half-year results. ANZ pointed to a number of factors for its strong earnings that also impact the broader banking sector, including an improving economic outlook.

The surging Australian property market has been as a key driver for the CBA share price in recent months. With the property market showing no signs of slowing down, evidenced by CoreLogic’s monthly indices, there’s the possibility that Commonwealth Bank could continue to benefit from increased lending activity. 

Commonwealth Bank is expected to report its March quarter trading update later next week. 

South 32 Ltd (ASX: S32) 

The South32 share price has just managed to tip over its pre-COVID highs of $2.94. The diversified mining company has experienced a strong uplift across its commodities, including alumina, aluminum, coal, manganese, nickel, silver, lead and zinc. South32 shares are up another 1.80% at the time of writing to $3.01.  

After releasing its March quarter production update, big brokers including UBS, Credit Suisse, Morgan Stanley, Ord Minnett, Macquarie and Citi were all buy-rated on South32 shares with an average target price of $3.26.  

Telstra Corporation Ltd (ASX: TLS) 

The Telstra share price has been on a bullish run since its lows of $2.70 in November 2020. There are several drivers behind the resurgence of Telstra shares, including the return of market-leading dividends, with its board reaffirming a 16 cents per share dividend for 2021 back in October last year. 

Telstra previously announced its intentions on a new proposed legal restructure by December this year. As part of the plan, the company will establish a new holding company and separate subsidiaries – InfraCo Fixed, InfraCo Towers, ServeCo and Telstra International. The restructure is generally viewed as a potential near-term catalyst that could unlock significant value for Telstra shareholders. 

Telstra shares closed at a 52-week high on Wednesday at $3.55. They’ve since dropped back in today’s trade, currently siting at $3.48 per share.

More reading

• ANZ Bank (ASX:ANZ) share price hit by broker downgrade post results
• Is the ANZ (ASX:ANZ) share price a buy following its half year results?
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, ANZ drops, Nearmap jumps
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The CSL Limited (ASX: CSL) share price is slightly lower today despite announcing plans to buy rights for novel late-stage gene therapy candidate.

In late afternoon trade, the global biotech’s shares are swapping hands for $276.06, down 0.5%.

What did CSL announce?

Investors appear unfazed by the company’s latest release, sending its shares in negative territory.

According to its release, CSL announced it will push forward with its commercialisation and license agreement with Uniqure NV (NASDAQ: QURE).

Founded in 1998, uniQure is a late-stage gene therapy company that is developing etranacogene dezaparvovec (AMT-061) to treat haemophilia B.

The deal, announced last June will give CSL rights to commercialise and sell AMT-061 if approved.

CSL stated that this could be one of the first gene therapies to provide potentially long-term benefits to patients with haemophilia B.

One dose of AMT-061 has shown to increase Factor IX (FIX) plasma levels to a degree that reduces or eliminates the tendency for bleeding for many years. FIX is the blood-clotting protein lacking in people with haemophilia B.

Should AMT-061’s trial be successful, appropriate candidate haemophilia B patients will be able to have a one-time treatment to restore FIX activity to functional levels capable of eliminating the need for frequent and ongoing replacement therapies.

What’s in the deal?

Under the terms of the deal, uniQure will receive an upfront cash payment of US$450 million next week. This will be followed by regulatory and commercial sales milestone payments and royalties.

CSL stated that uniQure will conclude its Phase 3 HOPE-B trial and commence manufacturing for an initial commercial supply. In turn, CSL Behring will look after regulatory submissions and commercialisation.

CSL CEO and managing director, Paul Perreault commented:

We are continuing to build on our legacy of delivering lifesaving innovations in haematology with today’s news. This agreement enables us to take forward a gene therapy that, if approved, has the potential to transform the lives of haemophilia B patients.

Etranacogene dezaparvovec has the potential to be the first-ever gene therapy approved for haemophilia B and help CSL Behring deliver on our ongoing commitment to improving the lives of those living with haemophilia B.

How has the CSL share price performed lately?

Since early March, CSL shares have begun their accent to levels achieved in mid-January. Year-to-date performance is marginally lower at around 2%, however, it seems the worst is behind the company. Just yesterday, CSL released its presentation for the upcoming Macquarie Group Ltd (ASX: MQG) conference, citing an update on plasma collections.

CSL has a market capitalisation of around $126 billion, with approximately 455.1 million shares on issue.

More reading

• Top brokers name 3 ASX shares to buy today
• Is the CSL (ASX:CSL) share price in the buy zone after its update?
• 2 fantastic ASX 50 shares rated as buys
• Why the CSL (ASX:CSL) share price is seesawing over the past month
• Pssst, I’m a value investor who makes money from growth shares: fundie

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

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Venture Minerals Limited (ASX: VMS) shares are sliding lower today after the company released its presentation from the Sydney Resources Roundup conference. At the time of writing, the Venture Minerals share price is trading 6% lower at 11.75 cents.

In earlier trade, the company’s shares were actually up by 8% before giving back those gains and then some.

As its name suggests, Venture Minerals is focused on the exploration and development of mineral resources. It’s currently exploring in Western Australia for copper- lead-zinc at the Thor Prospect, nickel-copper at the Odin Prospect, and gold-nickel-copper-cobalt at the Caesar Project, among others.

Presentation highlights

The Venture Minerals share price is in the red today after the company outlined its current progress on multiple projects. Its Riley iron ore processing plant has now been built on schedule and within budget. The first shipment of ore out of the plant is expected in the second quarter of this year. The company is hoping the quick turnaround will allow it to capitalise on record-high iron ore prices.

Venture Minerals has also commenced an electromagnetic survey program on what it calls a ‘Julimar lookalike’ drilling target at its South West nickel and copper project.

Meanwhile, drilling has confirmed up to 7% zinc deposits from the company’s first assays at the Orcus prospect and, at Golden Grove North, follow-up drilling has commenced.

According to Venture Minerals, the trench results at Kulin also have confirmed a “significant gold system” but the company is still awaiting results from its maiden drill program. Judging by today’s Venture Minerals share price action, it seems some investors have decided not to wait around for these results. 

Renewable aspirations

In today’s presentation, there was also some news on the renewable energy front. Venture Minerals reported it has advanced its Mount Lindsay tin and tungsten project, which “provides near-term exposure” to electric vehicle (EV) market demand for rare earth metal and the critical minerals markets. Tungsten is considered a critical mineral by the Australian Government.

According to the company’s presentation, “EV and critical minerals demand drives re-assessment of the high-grade tin and tungsten resource base at Mount Lindsay.”

Venture also added that it is “uniquely positioned with Mount Lindsay being one of the largest undeveloped tin projects in the world, containing in excess of 80,000 tonnes of tin metal. Mount Lindsay also hosts, within the same mineralised body, a globally significant tungsten resource containing 3.2 million metric tonne units of tungsten.”

Venture Minerals share price snapshot

Despite today’s falls, the Venture Minerals share price has boomed in the past month, gaining more than 95%. It’s also up by 135% year to date and 488% over the past year. Based on the current valuation, the company has market capitalisation of $157 million.

More reading

• Chalice Mining (ASX:CHM) share price surges to new record high

Motley Fool contributor Lucas Radbourne-Pugh 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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Tech, mining and the big four banks typically dominate the spotlight for most traded ASX 200 shares. 

But amongst the S&P/ASX 200 Index (ASX: XJO), there’s an overlooked sector that has been quietly outperforming the broader market. 

Say hello to insurance. 

Brokers think insurers can outperform the ASX 200 

Back in March, brokers delivered a flurry of buy recommendations towards insurers. This was on the basis that the insurance market was moving through a “hard cycle”, where premiums increase and the capacity for most types of insurance decreases.

Multiple insurers, including Insurance Australia Group Ltd (ASX: IAG) and Suncorp Group Ltd (ASX: SUN), were upgraded with the view that premiums will increase, driving higher margins and revenues. 

A number of insurers continue to meet with bullish broker notes, including: 

AUB Group Ltd (ASX: AUB)

AUB is the largest equity-based insurance network in Australia and New Zealand. Macquarie comments that the company’s March quarter results were strong with improvements in both revenue and margins. The broker highlighted the 5.9% increase in premium rates, which were at the top of the company’s estimates and well ahead of Macquarie forecasts. 

An outperform rating was retained, with the target price increasing from $20.40 to $23.13. AUB shares are up more than 30% year-to-date into record territory. Its shares are currently fetching $20.63. 

Steadfast Group Ltd (ASX: SDF)

Steadfast is also a major general insurance broker network and the largest group of insurance underwriting agencies in Australia. The company recently upgraded its FY21 guidance, increasing FY21 underlying NPAT to $127 million – $132 million from its previous guidance of $120 million – $127 million. 

Macquarie observes that stronger operating conditions have driven the guidance upgrade. The broker retained an outperform rating while edging its target price higher from $4.60 to $4.70. Steadfast shares have had a relatively quiet year-to-date performance, up a steady 4%. Its shares are currently trading at $4.17. 

QBE Insurance Group Ltd (ASX: QBE)

UBS observes that QBE’s first-quarter performance shows an average premium increase of 8.9%, slightly lower than 2020 figures but within the broker’s expectations.

Despite a slower increase in premiums, the broker observes that volume growth appears ahead of expectations. A buy rating was retained with an increase in target price from $10.25 to $11.50.

It’s been a volatile 12 months for the QBE share price, with its shares losing 50% in value during the initial COVID-19 sell-off. From a year-to-date perspective, its shares have pushed 30% higher to $10.81 but are still another 40% from pre-COVID highs. 

More reading

• 7 ASX 200 shares with emission reduction strategies
• QBE Insurance (ASX:QBE) set to face AGM shareholder revolt
• Brokers pick these ASX 200 shares to outperform the market

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Steadfast 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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