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There are a handful of S&P/ASX 200 Index (ASX: XJO) shares that could be reliable and offer investors good income.

It’s particularly difficult to find good sources of income at the moment because of how low the official Reserve Bank of Australia (RBA) interest rate is and how high share prices of many businesses have gone.

These two could be worth looking at for income:

Centuria Industrial REIT (ASX: CIP)

This is one of the larger real estate investment trusts (REIT) on the ASX. It has a market capitalisation of almost $2 billion according to the ASX.

It owns a portfolio of quality industrial assets that are located in important city locations throughout Australia, with a strong and diverse tenant base.

Centuria Industrial REIT is currently rated as a buy by a few different brokers, including Morgan Stanley which has a price target of $3.77 on the ASX 200 share.

It’s regularly expanding its portfolio with acquisitions. For example, it recently announced an eight-hectare land acquisition in Dandenong for $26.3 million and has entered into a development management agreement (DMA) to fund six high-quality industrial facilities. Centuria described this as a rare opportunity.

That deal increased its portfolio to 63 assets and a portfolio value (on completion) to $2.7 billion.

In its quarterly update to 31 March 2021, Centuria Industrial REIT said that it saw a $196 million valuation uplift, or 8.3% on a like for like basis from prior book values. At the time, it said that its occupancy rate had increased to 98.8% with a 9.7 year weighted average lease expiry.

The distribution is expected to be 17 cents per unit, which equates to a yield of 4.9%. Management said it’s well positioned to keep delivering secure income and capital growth for investors.

Magellan Financial Group Ltd (ASX: MFG)

Magellan is an ASX 200 share that aims to pay a high dividend to investors.

Its dividend policy is to pay interim and final dividends based on 90% to 95% of the profit of funds management business excluding crystallised performance fees. With the performance fees, it aims to pay 90% to 95% of net crystallised performance fees after tax as a dividend.

The performance fees can be variable, but the core management earnings continue to remain strong and growing, which is what funds the main part of Magellan’s annual dividend.

The FY21 half-year result saw profit before tax and performance fees of the funds management business saw 8% growth to $256.2 million. Diluted earnings per share (EPS) grew 2% to 110.6 cents. This gave the board the room to grow the interim dividend by 5% to 97.1 cents.

The underlying management profit could continue to rise with the total funds under management (FUM) rising by around $5.4 billion to $106 billion at the end of March 2021.

Magellan also has plans to grow its profit with other initiatives such as a retirement product and investments into operating businesses like Barrenjoey, Guzman y Gomez and Finclear.

Morgans rates the ASX 200 share as a buy with a price target of $58.26. The broker expects the fund manager to pay a dividend of $2.06 per share in FY21, amounting to a partially franked dividend yield of 4.4%.

More reading

• Top brokers name 3 ASX shares to sell today
• ASX 200 down 0.35%; NAB half year results, Nearmap crashes on legal threat
• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, ANZ drops, Nearmap jumps
• How this new forecast could put ASX copper shares under pressure

Motley Fool contributor Tristan Harrison owns shares of Magellan Financial Group. 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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It has been a bitterly disappointing day of trade for the Appen Ltd (ASX: APX) share price.

At the time of writing, the artificial intelligence (AI) data services company’s shares are down 21% to $11.67.

This means the Appen share price has now lost over half of its value since the start of the year.

Why is the Appen share price crashing 21% lower?

Investors have been heading to the exits in their droves on Thursday after Appen released a presentation ahead of its appearance at the Macquarie Group Ltd (ASX: MQG) conference.

While there were many positives in the presentation, judging by the Appen share price performance, investors have chosen to focus entirely on the negatives.

What were the negatives?

Comments by Appen’s CEO, Mark Brayan, relating to the uncertainty and impacts of an advertising downturn and regulatory factors on customers’ spending and investment priorities appear to have spooked investors.

Mr Brayan revealed that COVID-19 has led to changes in the behaviour of many of its customers.

He explained: “COVID interrupted many businesses last year and that in turn reduced their digital ad spend for a period. This impacted our major customers’ sources of revenue, and although digital ad spend has bounced back nicely, that experience is driving them to invest in new AI products that are less reliant on advertising.”

In addition to this, the chief executive revealed that data privacy and anti-trust concerns are impacting developments, possibly with unfavourable consequences for Appen.

“Our customers are developing new AI products in response to COVID’s impact on online advertising last year and regulatory pressures such as anti-trust and data privacy. This dictates the data they need for product development and impacts their engineering resource allocations and the volumes and types of data they need from us.”

“As stated before, machine learning is an iterative process, and our customers are switching resources between development projects as they pursue new break-out products. This in turn has impacted a handful of our larger programs,” Mr Brayan said.

However, this isn’t new information. In response to an ASX query this afternoon, Appen reminded the market the messaging in the address today is consistent with what was said with its FY 2020 results.

What about the positives?

You may not believe it when looking at the Appen share price, but there were positives in the address.

The main one being that there have been no systemic changes to demand for relevance data. This is a major positive as the Relevance segment is easily Appen’s most important segment, accounting for upwards of 90% of revenue.

Management also revealed that its industry-leading position has been maintained and pricing remains solid.

Mr Brayan said: “The competitive environment for relevance is unchanged with us and Lionbridge AI the key providers. We don’t see unusual pressure on pricing. Our customers want a good deal and they negotiate well, but they will pay for quality and reliability and our reputation is strong in these areas.”

Nor does the company see any fundamental changes in the way that AI is developed.

“We don’t see meaningful changes in AI development techniques. AI models have and will continue to rely on a range of techniques to operate properly in the real world and hence high-quality labelled training data will continue to be a requirement for AI development. Unsupervised and self-supervised machine learning techniques are complementary to other techniques including supervised learning and using pre-trained models via transfer learning,” the chief executive explained.

Where next for the Appen share price?

The Appen share price is now down 54% since the start of the year. This means its shares are trading at 17x estimated FY 2022 earnings based on a recent Macquarie note.

Though, the broker has yet to respond to this presentation and it isn’t inconceivable that downgrades to estimates will be made.

In light of this, investors may want to keep their eyes peeled for broker updates in the coming days.

More reading

• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking
• ASX 200 down 0.35%; NAB half year results, Nearmap crashes on legal threat
• Why the Appen (ASX:APX) share price is down 6% to a multi-year low
• Why Airtasker, Appen, Downer, & Kogan shares are charging higher
• Why the Appen (ASX:APX) share price is racing 5% higher today

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 Appen Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Maggie Beer Holdings Ltd (ASX: MBH) share price was up as much as 9% today before partially retreating. This comes after the company announced, “strong double-digit growth in FY21” and a new ranging deal with Woolworths Group Ltd (ASX: WOW).

At the time of writing, shares in the food and beverage company are trading for 34.5 cents each – up 4.55%. For comparison, the All Ordinaries Index (ASX: XAO) is currently trading 0.68% lower.

Let’s take a closer look at today’s announcement.

Why the Maggie Beer share price is on the move

Business update

In a statement to the ASX, Maggie Beer Holdings said net sales, compared to last year, are up by double digits. Its “core business and e-commerce” platforms are up a combined 29% in April 2021, compared to the year prior.

Easing COVID-19 restrictions in Victoria have seen sales in its Saint David Dairy range “restored to pre-COVID levels”. Net sales YTD for the products are up 9% on this time last year. Paris Creek Farms sales are up 5% on the previous year.

Maggie Beer says sales for Paris Creek have been impacted by a “realignment” of its private-label business. The company claims this has resulted in reduced sales but greater profits. As well, the company says the product is being ranged more widely in Victoria and South Australia. Maggie Beer Holdings will now conduct a “strategic review” of Paris Creek to “unlock shareholder value.”

Sales in Hampers and Gifts Australia (HGA), which the company acquired in March, are up 96% on April last year. Maggie Beer says it will fully integrate the business into the fold by the end of May.

News of the HGA purchase sent the Maggie Beer share price rocketing 18%.

New product ranging

Also in the statement, Maggie Beer Holdings reported it will “launch [a] new range of Finishing Sauces and Bone Broths in October 2021…” in at least 75% of Woolworths supermarkets. The company hopes the launch of these products will aid in the reduction of seasonal variations in its sales.

Independent stores will also be selling the new products from October.

The new range of products will comprise four different sauces and two bone broths.

Management commentary

Chantale Millard, CEO of Maggie Beer Holdings, said:

We are very pleased with the continued growth in the MBH Group, in particular the strong growth of the Maggie Beer Products business.

It is also great to see Hampers & Gifts Australia continuing to demonstrate excellent growth over FY20, including over the sharp uplift in sales experienced by the e-commerce industry in April 2020 from the Covid-19 pandemic lockdown. With the recent successful completion of the capital raise to purchase HGA and the launch of the two new products lines for Maggie Beer Products later this year, we are expecting our strong growth to continue into FY22 and beyond, as the MBH Group cements its position as the premium food and beverage brand in the entertaining and e-commerce space.

Maggie Beer share price snapshot

Over the last 12 months, the Maggie Beer share price has increased by 163.8%. It is, however, down by around 30% since the beginning of this year.

Given its current valuation, Maggie Beer Holdings has a market capitalisation of approximately $97 million.

More reading

• Is this the space-aged future of Australian agriculture?
• Is the Afterpay (ASX:APT) share price a buy at $100?
• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking
• Rhythm (ASX:RHY) share price surges 10% on ColoSTAT results
• Is the Redbubble (ASX:RBL) share price an obvious buy?

Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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 impact of climate change on Australian agriculture could lessen in the future but the industry faces mass digital disruption.

That’s the forecast from AgriFutures’ Future Forces report, which considers what challenges Australia’s agriculture sector might face over the next 10 years.

In one scenario, the food sector may have to tackle viral disinformation campaigns and increasing digitalisation.

In another, farmers in the future might look to vertical farming, regenerative agriculture and renewable energies to mitigate the challenges climate change places on agriculture in Australia.

So, what might investors in ASX agriculture shares have to look forward to in the future? Let’s take a look.

What does the future of Australian agriculture look like?

Technological advances

The AgriFutures report examined multiple scenarios that could be a possible future for Australia’s agricultural industry.

One is that climate change will reach a peak and Australian agriculture will be forced to adapt or leave.

Vertical farming, automation, renewable energy, and carbon sequestration all come into play in this idea.

With such adaptation, comes a diversification of farmers’ income streams. Farmers might turn to the sale of excess renewable energy and carbon credits to fund their livelihoods.

The report also discussed the possibility of automated fishing operations.

 These could involve satellites with microchips planted into fish to track catches. They could also enable consumers to purchase wild fish before or during the catch, skipping the middleman entirely.

Both scenarios will see major disruptions to the Australian agriculture scene.

As such, we might begin to see some interesting announcements come from ASX-listed agriculture companies in the near future.

Digital interconnectedness

The report also discusses the likely power of disinformation in the future of Australian agriculture.

As brands become more active on social media, digital hit campaigns on companies could be the new norm.

Consumers might soon be able to trace their food from paddock to plate, right back to the genetic lines of their hamburgers.

While this sounds like exciting stuff, the report talks of the possibility of consumers investing in misinformation. Such misinformation could – for instance – claim that certain genetic lines of cattle are better for Australian’s diets and lifestyles.

This misinformation could mean ASX-listed agriculture and food companies need heavy media and marketing teams to tackle disinformation created by consumers and market competitors.

Further, future consumers may be able to play a more active role in the making of food. An example could be the potential to order products to be custom grown or produced.

More reading

• Is the Afterpay (ASX:APT) share price a buy at $100?
• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking
• Rhythm (ASX:RHY) share price surges 10% on ColoSTAT results
• Is the Redbubble (ASX:RBL) share price an obvious buy?
• Top brokers name 3 ASX shares to sell today

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 Afterpay Ltd (ASX: APT) share price is having an absolute clanger today. Afterpay shares are down a nasty 7.52% at the time of writing to below $100 a share at $98.87. That’s after it opened at $105.10 this morning.

That’s the lowest levels Afterpay has traded at since early December last year, when the buy now, pay later (BNPL) pioneer soared past $100 for the first time. It’s been a rough couple of months for Afterpay too. Back in February, the company hit a new record high of $160.05 a share after shooting more than 33% from the start of the year to 10 February. But it’s been down, down for the company ever since. In fact, on today’s pricing, Afterpay is now close to 40% off of those highs. And down more than 16% year to date. In saying that, Afterpay is still up around 150% over the past 12 months, so longer-term investors don’t have too much to complain about. Incidentally, Afterapy’s rival Zip Co Ltd (AX: Z1P) is also feeling that pain today, with a share price drop of 4.97% to $7.27.

So why is Afterpay getting hammered? The Fool covered some of the possible reasons earlier today. These include the company’s recent third-quarter trading update As well as the recent performance of the US-listed BNPL company, Affirm Holdings Inc (NASDAQ: AFRM). The Affirm share price was sold off last night (our time), losing more than 7% of its value.

So, now the more important question: Are Afterpay shares a buy today?

Are Afterpay shares a buy at $100?

Well as my Fool colleague James Mickleboro reported last week, broker Bell Potter is extremely bullish on Afterpay, with a price target of $168.50 a share. That implies a future potential upside of almost 70%.

However, not everyone is that bullish. As we covered last month, a broker from the US, Bernstein, recently initiated coverage on Afterpay with a price target of just $40 a share. Bernstein thinks Afterpay will keep growing, only its margins won’t. It sees significant margin compression for Afterpay over time in the face of fierce competition.

However, as we reported then, broker Jeffries has a far higher price target of $157.38 per share for Afterpay. Whilst Citi has it at $128.30.

So some brokers think Aftepray is a buy at $100 a share today, others don’t. Who said consensus was overrated?

More reading

• Why the Afterpay (ASX:APT) share price is sliding 5%
• One MASSIVE thing about Tesla and Afterpay that people forget
• Afterpay (ASX:APT) share price tumbles despite investor presentation
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower
• ASX 200 tech shares under pressure after Nasdaq selloff

Sebastian Bowen 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 owns shares of 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 S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. In afternoon trade, the benchmark index is down 0.5% to 7,062.2 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

Adore Beauty Group Ltd (ASX: ABY)

The Adore Beauty share price is down 15.5% to $3.86 following the release of a trading update. The online beauty retailer’s update revealed that it expects to report revenue growth of 43% to 47% in FY 2021. While this is strong growth, it is lower than the market was expecting.

Appen Ltd (ASX: APX)

The Appen share price has crashed 18.5% to $12.00. This follows the release of a presentation this morning which provided colour on current trading conditions. While management spoke positively about its position in the industry, it also revealed that its customers are changing the ways in which they develop projects. This has resulted in changing data volumes on a handful of large projects, impacting Appen’s revenue.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price has continued its slide and is down a further 6% to $14.34. Investors have been selling the travel agent’s shares since the release of a trading update earlier this week. That update revealed that Flight Centre expects to record a second half loss in line with the one it reported in the first half (~$250 million). This was materially greater than many analysts were expecting.

Nearmap Ltd (ASX: NEA)

The Nearmap share price has crashed 24% lower to $1.80. Investors have been heading to the exits after Nearmap was hit with legal proceedings. The company advised that rival Eagle View alleges patent infringement in relation to its roof estimation technology. Nearmap’s CEO and Managing Director, Dr Rob Newman, said: “Nearmap has always taken the subject of intellectual property rights and patent protections seriously and believes the allegations are without merit. We will vigorously defend against the complaint. The business remains unaffected by the complaint.”

More reading

• Top brokers name 3 ASX shares to sell today
• ASX 200 down 0.35%; NAB half year results, Nearmap crashes on legal threat
• Nearmap (ASX:NEA) share price dives 16% on legal proceedings
• Why the Appen (ASX:APX) share price is down 6% to a multi-year low
• Adore Beauty (ASX:ABY) share price plunges 10% on quarterly update

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 Appen Ltd and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Adore Beauty Group Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Nearmap 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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The Rhythm Biosciences Ltd (ASX: RHY) share price is a strong mover today following the release of its ColoSTAT results.

Rhythm’s ColoSTAT is an experimental test-kit that is being trialled as a low-cost, easy-to-use blood test to detect colorectal cancer.

At the time of writing, the medical device company’s shares are trading for 96 cents, up 10.9%.

What’s driving the Rhythm share price higher?

Investors are fighting to get a hold of Rhythm shares after digesting the company’s encouraging announcement.

In a statement to the ASX, Rhythm advised that ongoing enhancements to its ColoSTAT technology have yielded further potential improvements. The company explained that when adding in known lifestyle related factors (LRF), the device increases in accuracy for cancer detection.

A number of LRF have been linked to colorectal cancer such as diet, weight, exercise, smoking and type 2 diabetes.

Previously, Rhythm achieved positive results from its Study 6 findings in mid-March. It stated that ColoSTAT prototype test-kit demonstrated an accuracy of 84% sensitivity at 95% specificity. This showed that the company’s proprietary device surpassed the current market standard faecal tests.

However, with the latest performance improvements by adding a patient’s LRF, colorectal cancer detection has increased sensitivity levels to 88%. The specificity remains the same at 95%.

Rhythm noted it will seek to continue to develop and test on a larger number of samples in the near future.

Rhythm CEO, Glenn Gilbert welcomed the result by reaffirming the company’s ColoSTAT reputation, saying:

We have shown that ColoSTAT is already superior in detecting colorectal cancer when compared to the current market standard faecal test.

The capability to broaden the effectiveness of our core cancer detection technology, via a simple addition of commonly measured data, is extremely exciting in the context of our objective to reduce the social and economic burden of colorectal cancer globally.

The Rhythm share price has accelerated over the past year to more than 1,100%. However, year-to-date performance is sitting close to just above 10%.

More reading

• Why Adore Beauty, Appen, Flight Centre, & Nearmap shares are sinking
• Is the Redbubble (ASX:RBL) share price an obvious buy?
• Top brokers name 3 ASX shares to sell today
• Mach7 (ASX:M7T) share price edges higher after positive update
• Laybuy (ASX:LBY) share price slides despite ‘record Mania sales’

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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The Redbubble Ltd (ASX: RBL) share price has fallen another 5% today.

Redbubble shares have actually dropped by 43% over the last three months. It has actually seen a bit more of a drop if you go back further – it’s down 46% since 25 January 2021.

Redbubble is a business that owns two websites, Redbubble and TeePublic, where artists can sell designs that are then printed onto blank products by third parties. Some of those products include apparel, stationery, housewares, bags, wall art and so on.

What caused the Redbubble share price selloff?

Redbubble recently gave its trading update for the third quarter of FY21.

The numbers that Redbubble revealed showed a lot of growth. Marketplace revenue – which is total revenue less money paid to artists – increased by 54% to $103.4 million. Gross profit grew slightly quicker, by 55% to $39.8 million. That saw the gross profit margin improve from 38.3% to 38.4%.

Operating expenses only went up 3%. This helped earnings before interest, tax, depreciation and amortisation (EBITDA) increase by $8.5 million, going from a loss of $6.3 million to a profit of $2.2 million. Earnings before interest and tax (EBIT) grew 91% to a loss of $0.9 million.

Redbubble is a seasonal business, so it helped investors get a clearer picture of performance by including its performance for the nine months to March 2021. Marketplace revenue was up 85% to $456 million. Gross profit was up 100% to $184 million. EBIT wen up $53 million to $41 million. Operating cashflow was up $48 million to $54 million.

It was the new strategy that caught investor attention negatively.

The new strategy

Management are confident about the long-term future of Redbubble, with a boast that no other platform in the world combines the breadth of artist-generated designs with their availability on a wide range of made-on-demand consumer products.

Redbubble also pointed to a huge addressable consumer good market. E-commerce spending for the current range of products sold on Redbubble Group marketplaces was estimated at over $300 billion in its core geographies and $700 billion globally. This is predicted to grow to more than $1 trillion by 2024. Within these markets, 35% to 40% of customers are already seeking a product that is unique and meaningful.

Management said it’s uniquely positioned with this growing market segment.

Redbubble sees a tremendous opportunity to grow and scale the business.

It has decided to drive revenue growth first and foremost. Its medium-term goal is to reach gross transaction value of more than $1.5 billion, with revenue paid to artists of $250 million, leading to marketplace revenue of $1.25 billion per annum.

That will mean that the EBITDA margin is expected to be in the mid single digits during this growth phase. Despite all of the growth investing, it’s going to maintain positive EBITDA.

Once it reaches $1.25 billion of marketplace revenue, around 2024, Redbubble believes that it will have a gross profit margin of between 40% to 42% and an EBITDA margin of between 10% to 15%.

Is the Redbubble share price a buy?

Broker Morgans recently downgraded its rating on Redbubble from buy to hold, with a price target of $4.88. That was because of the short-term profitability hit. However, the broker is still attractive to the long-term growth prospects.

Redbubble is now facing a hard time to generate strong growth from last year when there was strong online sales as well as a lot of mask sales. The broker thinks the ASX share can improve customer repeat buying.

The broker also noted that Redbubble is suggesting higher revenue growth over the next few years than what Morgans was expecting.

More reading

• ASX 200 tech shares under pressure after Nasdaq selloff
• What to do with Redbubble (ASX:RBL) shares: fundie
• Why the Redbubble (ASX:RBL) share price sank 18% lower in April
• Is there still upside to the JB Hi-Fi (ASX:JBH) share price?
• Could the Resmed (ASX:RMD) share price face a similar selloff to Kogan?

Motley Fool contributor Tristan Harrison 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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On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why these brokers are bearish on them:

Flight Centre Travel Group Ltd (ASX: FLT)

According to a note out of Morgan Stanley, its analysts have retained their underweight rating and cut the price target on this travel agent’s shares to $16.00. This follows the release of a trading update earlier this week. The broker was disappointed with the update and management’s admission that it will be making a second half loss in the region of $250 million. This is significantly more than the broker was expecting. The Flight Centre share price has fallen heavily since the release and is now trading below this price target at $14.33.

Magellan Financial Group Ltd (ASX: MFG)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target on this fund manager’s shares to $47.97. According to the note, Goldman was pleased with Magellan’s stronger than expected performance during March and April. This means its funds are tracking ahead of its estimates, leading to an upgrade to earnings forecasts. However, it feels its shares are fully valued at the current level. It also has concerns over further risks to revenues in the near term. The Magellan share price is trading at $47.84 today.

Ramsay Health Care Limited (ASX: RHC)

Another note out of Morgan Stanley reveals that its analysts have retained their underweight rating but lifted their price target on this private hospital operator’s shares to $62.00. According to the note, Ramsay underperformed the broker’s expectations during the third quarter. In light of this and significant uncertainty in the industry, its analysts aren’t in a rush to change their recommendation and have held firm with the underweight rating. The Ramsay share price is fetching $63.40 this afternoon.

More reading

• ASX 200 rises, ANZ drops, Nearmap jumps
• ASX healthcare shares could be next to be hit by the digital disruption
• Why Afterpay, ANZ, Domino’s, & Flight Centre shares are tumbling lower
• ASX 200 jumps 0.7%: ANZ half year results, Nearmap jumps
• Is the Flight Centre (ASX:FLT) share price a buy after its Q3 update?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Ramsay Health Care 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 Mach7 Technologies Ltd (ASX: M7T) share price is starting to rise today after announcing a contract win.

During the early afternoon trade, the enterprise imaging platform provider’s shares are up 0.43% to $1.16 apiece.

Another win for Mach7

Investors seem to be warming on Mach7 shares after the company’s latest positive update to the ASX.

According to its release, Mach7 advised it has signed a statement of work with the University of Vermont Medical Centre (UVM).

Based in the northern New York region, UVM is a not-for-profit academic teaching hospital providing tertiary-level inpatient and outpatient services. The medical centre caters to over 1 million people over 144 patient care sites across Vermont and New York locations.

The Software-as-a-Service (SaaS) deal will see Mach7 licence its eUnity diagnostic viewing technology to UVM for a 5-year subscription period.

Previously, UVM purchased the licence to the Mach7 Enterprise Imaging Platform (EIP) in 2017. Since that time, the EIP has become a central part of UVM’s imaging ecosystem.

The EIP allows images to be securely shared across private and public healthcare providers. This relates to the receiving, transfer, storage, and viewing from authorised users.

Mach7 highlighted that it was selected because of its existing relationship with UVM, as well as meeting its requirements.

The subscription purchase to eUnity over the life of the contract is valued at $730,000. A potential upside is on the table should minimum annual imaging procedure volumes be exceeded.

Notably, this brings Mach7’s total year-to-date sales up to $25 million, which is 92% above FY20’s performance. Only 12% of its 130 customers are using both its data management platform and eUnity viewing solution. This gives the company an opportunity to hone in on multi-solution customers with crossing-sales incentives.

Management commentary

Mach7 CEO and managing director, Mike Lampron hailed the expanded relationship, saying:

The potent combination of Mach7’s enterprise data management solution and eUnity will suit UVM’s data management, workflow and enterprise diagnostic viewing needs now and adapt as their needs evolve.

This is another great example of how the Mach7 enterprise data management solution and the eUnity enterprise diagnostic viewer (recently acquired from Client Outlook) can provide large healthcare providers with a fully integrated, end-to-end, enterprise image management solution.

Mach7 share price review

In the past year, investors have ridden Mach7 shares on an upward trajectory to post a gain of around 110%. During February 2021, the March 7 share price reached a multi-year high of $1.59, before profit-taking swooped in.

Based on today’s price, Mach7 has a market capitalisation of roughly $268 million, with approximately 235 million shares on issue.

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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 and recommends MACH7 FPO. The Motley Fool Australia has recommended MACH7 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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