Tag: Motley Fool

  • Leading broker says the Origin (ASX:ORG) share price is dirt cheap

    Female ASX investor standing with back to camera, reviewing screen of share price charts in front of her

    The Origin Energy Ltd (ASX: ORG) share price was well and truly out of form last week and tumbled notably lower.

    The energy company’s shares were among the worst performers on the S&P/ASX 200 Index (ASX: XJO) with a decline of approximately 10%.

    Why did the Origin share price crash lower?

    Investors were selling Origin’s shares last week after it downgraded its earnings guidance for FY 2021.

    Origin made the downgrade following an adverse and unexpected outcome on a domestic gas contract price review and continued headwinds in energy markets’ operating conditions.

    Management advised that it is now expecting its energy markets division to post a 30% to 35% decline in operating earnings in FY 2021. It also warned that FY 2022 would be equally difficult.

    Is this a buying opportunity?

    One leading broker that believes the weakness in the Origin share price has created a buying opportunity is Goldman Sachs.

    According to a note this morning, the broker has retained its conviction buy rating but trimmed its price target slightly to $6.50.

    Based on the current Origin share price, this implies potential upside of over 50% over the next 12 months.

    What did Goldman say?

    Goldman Sachs thinks that it is worth sticking with Origin and believes FY 2022 will be the bottom for its Energy Markets business.

    It said: “The Energy Market earnings downgrade is partly linked to higher gas costs based on an arbitrated price review of Otway gas offtake contracts with Beach Energy. The price outcome appears to look through current market conditions and applies pricing consistent with ACCC contract pricing from January 2018 to July 2020, logically this should imply a future benefit for Origin’s gas book from 2023, as the next price reset looks back to pricing from Jan 2021 while we expect the gas market to tighten from 2023.”

    “This reinforces our view that FY22 will be the trough year for Energy Markets, with a recovery likely from 2023. The rebound in oil prices over the past 6 months is expected to deliver capital management in FY22 with an improving outlook for Energy Market returns,” its analysts added.

    The broker also notes that the current Origin share price ascribes no value to the Energy Markets business.

    Goldman said: “On current prices, the Energy Markets business looks essentially free, where we value APLNG on stand-alone valuation of ~$5.00/share (based on a blend of ~6x EV/EBITDA and DCF on US$60/bbl LT).”

    It is for this reason the broker has the confidence to keep Origin’s shares on its conviction buy list.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    Motley Fool contributor James Mickleboro 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.

    The post Leading broker says the Origin (ASX:ORG) share price is dirt cheap appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/2QdnTs6

  • Why ASX mining shares are likely to jump this morning

    ASX shares China GDP happy worker does the thumbs up, indicating a rising share price in mining or construction

    The ASX will take a step closer to retesting its record high this morning and ASX mining shares are likely to lead the charge!

    The futures market is pricing around a 0.4% rise in the S&P/ASX 200 Index (Index:^AXJO) this morning.

    You can thank the positive lead from Wall Street for this. But this will be overshadowed by China’s record-breaking gross domestic product (GDP) figure.

    China’s record GDP reading

    The Asian giant reported an eye-watering 18.3% surge in economic growth for the March quarter compared to the same time last year.

    That is the largest GDP figure since China’s National Bureau of Statistics (NBS) published the data in 1993.

    The blistering pace of growth stands in contrast to the first quarter of 2020. That’s when the COVID-19 outbreak caused China’s GDP to collapse by 6.8%. That too set a record of its own, although not in a good way.

    ASX shares best leveraged to China’s growth

    The remarkable turnaround is great news for ASX shares. This is particularly so for our miners who sell their commodities almost exclusively to China.

    Iron ore heavyweights like the BHP Group Ltd (ASX: BHP) share price and Rio Tinto Limited (ASX: RIO) share price are expected to outpace the ASX200.

    Copper producers like the OZ Minerals Limited (ASX: OZL) share price and Sandfire Resources Ltd (ASX: SFR) share price are also likely to join the party.

    ASX oil shares to benefit too

    I won’t be surprised to see ASX energy shares getting a boost too. This includes the Santos Ltd (ASX: STO) share price and Oil Search Ltd (ASX: OSH) share price.

    While ASX oil-exposed shares don’t sell directly to China, crude prices could get some extra support as optimism towards global economic growth increases.

    Black spots in China’s GDP

    But before you get too excited, some experts warn China’s latest quarterly GDP figure is a lot worse than you might believe.

    First off, the 18.3% figure was slightly below the median forecasts by economists polled by Bloomberg, reported the South China Morning Post.

    Further, the March quarter 2021 growth rate is far less impressive when compared to the December quarter. The inflation and seasonally-adjusted GDP number increased 0.6% versus the last quarter.

    That’s well below the 3.2% quarter-on-quarter growth rate achieved in the last quarter of 2020. It seems that China’s growth momentum is actually slowing!

    But bullish ASX investors may not take notice.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    Motley Fool contributor BrenLau owns shares of BHP Billiton Limited, OZ Minerals Limited, Rio Tinto Ltd., Sandfire Resources Ltd and Santos Limited. Connect with me on Twitter @brenlau.

    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.

    The post Why ASX mining shares are likely to jump this morning appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3ghMsih

  • 2 ASX dividend shares with generous yields in 2021

    lady happy with notes of cash on her hand

    Are you looking for income options for your portfolio in April? If you are, then you might want to consider the ASX shares listed below.

    Here’s why they could top options for income investors:

    Accent Group Ltd (ASX: AX1)

    Accent Group is a footwear-focused retail group which owns store brands such as HYPE DC and Platypus. 

    It has been growing its earnings and dividends at a solid rate over the last few years. Pleasingly, this has even continued during the pandemic thanks to the popularity of its brands, its strong market position, and its growing online business.

    One broker that believes the strong form can continue is Bell Potter. It currently has a buy rating and $2.65 price target on the company’s shares.

    The broker is also forecasting dividends of 11.9 cents per share in FY 2021 and 12.2 cents per share in FY 2022. This represents fully franked yields of 5% and 5.1%, respectively, over the next two years.

    Commonwealth Bank of Australia (ASX: CBA)

    Another ASX dividend share to consider is this banking giant. Although the pandemic hit the bank hard, it has come out the other side of it in a strong position.

    In fact, it looks as though the provisions it made for COVID-19 were too large. As a result of its strong capital position, the bank has been tipped to return funds to shareholders in FY 2022.

    In addition to this, with the housing market booming and responsible lending rules eased, Commonwealth Bank’s outlook has improved greatly. This has put it in a position to start growing its dividend again over the coming years.

    At present, UBS currently has a neutral rating and $90.00 price target on its shares. This compares to the current CBA share price of $87.99.

    The broker is also forecasting fully franked dividends of $3.60 per share in FY 2021 and $4.05 per share in FY 2022. This will mean dividend yields of 4.1% and 4.6%, respectively, for income investors over the next two years.

    These Dividend Stocks Could Be Your Next Cash Kings (FREE REPORT)

    Motley Fool Australia’s Dividend experts recently released a brand-new FREE report revealing 3 dividend stocks with JUICY franked dividends that could keep paying you meaty dividends for years to come.

    Our team of investors think these 3 dividend stocks should be a ‘must consider’ for any savvy dividend investor. But more importantly, could potentially make Australian investors a heap of passive income.

    Don’t miss out! Simply click the link below to grab your free copy and discover these 3 high conviction stocks now.

    Returns As of 15th February 2021

    More reading

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

    The post 2 ASX dividend shares with generous yields in 2021 appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3txoOSx

  • 5 things to watch on the ASX 200 on Monday

    Investor sitting in front of multiple screens watching share prices

    On Friday the S&P/ASX 200 Index (ASX: XJO) finished a positive week on a subdued note. The benchmark index rose by a modest 4.9 points to 7,063.5 points.

    Will the market be able to build on this on Monday? Here are five things to watch:

    ASX 200 expected to storm higher

    The Australian share market looks set to start the week on a very positive note. This follows a solid finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the week 35 points or 0.5% higher this morning. On Wall Street on Friday, the Dow Jones rose 0.5%, the S&P 500 climbed 0.35%, and the Nasdaq pushed 0.1% higher. The Dow hit a new record high after posting its fourth straight week of gains.

    Redbubble shares added to ASX 200

    The Redbubble Ltd (ASX: RBL) share price could be given a boost by news that it will soon be added to the ASX 200 index. S&P Dow Jones Indices has announced that it will replace Coca-Cola Amatil Limited (ASX: CCL) on the benchmark index, subject to final court approval of its takeover. S&P Dow Jones Indices intends to make the changes prior to the open of trading on 22 April 2021.

    Oil prices lower

    Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week in the red after oil prices softened. According to Bloomberg, the WTI crude oil price fell 0.5% to US$63.13 a barrel and the Brent crude oil price dropped 0.25% to US$66.77 a barrel. That wasn’t enough to stop both WTI and Brent crude oil recording solid weekly gains. This was driven by optimism over a recovery in demand.

    Gold price rises

    Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a positive start to the week after the gold price pushed higher on Friday night. According to CNBC, the spot gold price rose 0.6% to US$1,777.30 an ounce. The easing of bond yields led to the precious metal having its best week in four months.

    Goldman remains positive on Origin shares

    The Origin Energy Ltd (ASX: ORG) share price could be dirt cheap after its significant decline on Friday. According to a note out of Goldman Sachs, its analysts have retained their conviction buy rating but trimmed their price target slightly to $6.50. This implies potential upside of over 50% from the last Origin share price. Goldman said: “On current prices, the Energy Markets business looks essentially free, where we value APLNG on stand-alone valuation of ~$5.00/share (based on a blend of ~6x EV/EBITDA and DCF on US$60/bbl LT).”

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    Motley Fool contributor James Mickleboro 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.

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

    from The Motley Fool Australia https://ift.tt/3eaOQ7P

  • Why the Redbubble (ASX:RBL) share price could charge higher today

    Image of fund managers on laptops with share price chart overlaid

    The Redbubble Ltd (ASX: RBL) share price will be one to watch on Monday morning.

    This follows the release of an announcement by S&P Dow Jones Indices after the market close on Friday.

    What was announced?

    On Friday, S&P Dow Jones Indices announced that it would be removing beverage giant Coca-Cola Amatil Limited (ASX: CCL) from the benchmark S&P/ASX 200 Index (ASX: XJO).

    This follows news that the independent shareholders of Coca-Cola Amatil have voted in favour of the takeover offer by Coca-Cola European Partners (CCEP).

    That offer sees the European bottler acquire Coca-Cola Amatil all the shares in Coca-Cola Amatil held by independent shareholders (all shareholders other than The Coca-Cola Company) for $13.50 cash per share less the cash amount of the final second half 2020 dividend of 18 cents per share.

    According to the results of the vote, 81.55% of independent shareholders present and voting, in person or by proxy, voted in favour of the scheme resolution.

    This means that pending approval of the Supreme Court of New South Wales on Tuesday, the takeover will essentially be complete.

    Hence why S&P Dow Jones Indices is planning to remove Coca-Cola Amatil’s shares from the benchmark index this week.

    How does this impact Redbubble shares?

    S&P Dow Jones Indices needs another company to replace Coca-Cola Amatil and has picked the ecommerce company.

    According to the release, if everything goes to plan, S&P Dow Jones will remove Coca-Cola Amatil from the ASX 200 and replace it with Redbubble prior to the open of trading on 22 April.

    This could be good news for the Redbubble share price as many fund managers have strict mandates in relation to the shares they can buy.

    One common mandate is that they only buy shares listed on the ASX 200. So, the company’s inclusion on the index brings Redbubble into play for fund managers looking to deploy funds.  

    In addition to this, index-tracking funds will be needing to buy its shares in order to reflect the changes.

    All in all, increased demand from the buy side could be a positive for the Redbubble share price in the coming weeks.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    Motley Fool contributor James Mickleboro 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.

    The post Why the Redbubble (ASX:RBL) share price could charge higher today appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/32mMnSe

  • 2 small cap ASX dividend shares to buy

    man standing with arms crossed in front of giant shadow of body builder representing asx small cap stocks

    If you’re looking for shares that have dividends that could grow at a solid rate over the coming years, you may want to look beyond the banks and blue chip shares to the small end of the market.

    Below are two top small cap shares that could grow their dividends at a strong rate over the coming years. Here’s what you need to know about them:

    Integral Diagnostics Ltd (ASX: IDX)

    The first ASX dividend share to look at is Integral Diagnostics. It is a medical imaging service provider operating from a total of 72 radiology clinics.

    It has been a strong performer so far in FY 2021. For example, during the first half, the company reported a 29.5% increase in revenue to $170.7 million and a 61.1% jump in net profit after tax to $23.2 million.

    Pleasingly, Goldman Sachs believes it is well-placed to continue this positive form. As a result, it has slapped a buy rating and $5.50 price target  on its shares.

    Goldman is forecasting fully franked dividends of 11.4 cents per share and 13.9 cents per share over the next two years. This implies yields of 2.4% and 2.9%, respectively.

    People Infrastructure Ltd (ASX: PPE)

    Another ASX dividend share to consider is People Infrastructure. It is a leading workforce management company which has been experiencing strong demand for its innovative solutions to workforce challenges.

    This led to the company delivering a 3.1% increase in first half revenue to $201 million and a 51.5% increase in normalised net profit to $14.8 million.

    Morgans is positive on the company and currently has an add rating and $4.22 price target on its shares. It is also forecasting fully franked dividends of 13 cents per share in FY 2021 and FY 2022. Based on the latest People Infrastructure share price, this represents attractive 3.1% yields.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    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 People Infrastructure Ltd. The Motley Fool Australia has recommended Integral Diagnostics Ltd and People Infrastructure Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    The post 2 small cap ASX dividend shares to buy appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3snTqVn

  • 2 ASX shares that this leading fund manager thinks are buys

    steps to picking asx shares represented by four growing piles of gold coins

    WAM Active Limited (ASX: WAA) is one of the listed investment companies (LICs) in the Wilson Asset Management (WAM) stable that targets ASX shares.

    It runs a number of different LICs that target different investments. There’s the largest – WAM Capital Limited (ASX: WAM) – which targets undervalued ASX shares. Then there’s WAM Leaders Ltd (ASX: WLE) which looks to buy undervalued ASX blue chips.

    Since inception in January 2008, WAM Active’s portfolio has delivered a gross return of 12.1% per annum before fees, expenses and taxes.

    Its hunting ground target is market mispricing opportunities on the Australian stock exchange.

    In its latest monthly update, WAM Active outlined these two ASX shares as opportunities:

    Reliance Worldwide Corporation Ltd (ASX: RWC)

    WAM explained that the Reliance Worldwide designs, manufactures and supplies water flow and control solutions and products for the plumbing industry, with a focus on repair and renovation.

    The company operates in the Asia Pacific region, the Americas, Europe, the Middle East and Africa.

    WAM Active pointed out that in the FY21 half-year result, the ASX share generated a 13% rise in net sales to $642.4 million. The company also reported a $168.7 million reduction in net debt to $226 million.

    Operating cashflow went up by 17% to $155.6 million and adjusted net profit after tax increased by 56% to $99.3 million. It grew the interim dividend by 33% to 6 cents per share.

    The fund manager acknowledged that the business faced headwinds over the past few years, but it sees a positive outlook in the home renovation and repair markets which can drive the company in its key markets in the US and the UK.

    Airtasker Ltd (ASX: ART)

    Airtasker is an ASX share that recently listed on the ASX. It’s now the leading online marketplace for local services with more than 4.3 million users.

    How does it work? That online marketplace connects customers who require a particular task to be completed with people willing to complete a task for money. Around 950,000 customers have purchased a service on the e-commerce platform since inception in December 2020.

    The ASX share reported that its ‘unique paying customers’ have grown from around 18,000 in FY15 to approximately 367,000 in FY20. Over that same time period, the average task value went from $97 to $159.

    Airtasker managed to raise $83.7 million from investors during its initial public offering (IPO) process at a share price of $0.65. Since then, the Airtasker share price has more than doubled to $1.36 per share. That’s a strong debut for the ASX share.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    The post 2 ASX shares that this leading fund manager thinks are buys appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3mXzIi2

  • 3 growing small cap ASX tech shares to watch

    tech asx shares represented by two hands pointing at array of digital icons

    If you’re a fan of both small caps and tech shares then you’re in luck. Because right now there are a few trading on the ASX market that I think have a lot of potential.

    Three which I feel would be worth keeping a close eye on are listed below. Here’s why I like them:

    Audinate Group Limited (ASX: AD8)

    The first small cap to watch is Audinate. It is a digital audio-visual networking technologies provider best known for its innovative Dante audio over IP networking solution. This solution is used widely across the professional live sound, commercial installation, and recording industries globally. Last month the company revealed that it has now reached an impressive milestone of more than 3,000 different products now incorporating Dante for audio-over-IP connectivity. It advised that research from RH Consulting shows that 3,034 Dante-enabled devices are available from 361 different manufacturers. Furthermore, the data indicates that Dante is the protocol of choice in more than 91% of the networked audio products currently on the market. This bodes well for its future growth in a niche but lucrative market.

    Volpara Health Technologies Ltd (ASX: VHT)

    Another small cap ASX healthcare share to watch is Volpara. It is a healthcare technology company that provides software which leverages artificial intelligence imaging algorithms to help with the early detection of breast cancer. It has been a very strong performer in recent years and has consistently grown its market share in the United States. It appears well-placed for more of the same in the coming years thanks to the quality of its offering and recent acquisitions. Combined with increases in its average revenue per user metric, this should underpin strong revenue growth over the next decade.

    Whispir Ltd (ASX: WSP)

    A final small cap share to watch is Whispir. It is a software-as-a-service communications workflow platform provider which has a lot of potential. It provides an industry-leading software platform that allows governments and organisations to deliver actionable two-way interactions at scale using automated multi-channel communication workflows. It counts a number of blue chips as customers. This includes AGL Energy Limited (ASX: AGL), AIA Group, BP, ING, KPMG, and Takata. Management estimates that it has a total addressable market of US4.7 billion in the United States alone.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    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 recommends VOLPARA FPO NZ and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AUDINATEGL FPO. The Motley Fool Australia has recommended AUDINATEGL FPO, VOLPARA FPO NZ, and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    The post 3 growing small cap ASX tech shares to watch appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/32lKZPE

  • 2 exciting mid cap ASX shares with long runways for growth

    A young boy sits on his dad's shoulders while both flex their musicles, indicating ASX share price growth

    If small caps are a little too risky for your liking, then maybe mid cap ASX shares would be more suitable. These are often well-established companies that still have significant runways for growth ahead of them.

    With that in mind, I have picked out two mid cap ASX shares that are rated highly. Here’s what you need to know about them:

    Jumbo Interactive (ASX: JIN)

    The first mid cap ASX share to consider buying is Jumbo. It is an online lottery ticket seller best-known as the operator of the Oz Lotteries website.

    It has been benefiting greatly from the shift to online gambling in the Australian market and looks well placed to capitalise on the same trend internationally. This is thanks to its Powered by Jumbo Software as a Service (SaaS) offering.

    Last year the company estimated that the Powered by Jumbo business has a US$303 billion global total addressable market, with just ~7% of this market online at present.

    Morgans currently has an add rating and $14.78 price target on its shares. This compares to the latest Jumbo share price of $13.96.

    Nearmap Ltd (ASX: NEA)

    Another mid cap ASX share to consider buying is Nearmap. It is a leading aerial imagery technology and location data company which gives businesses instant access to high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools.

    This platform means that users can undertake site visits from the comfort of their home or workplace. This provides significant time and cost savings for users.

    While Nearmap’s growth has been a bit up and down in recent years, management appears confident that it is heading in the right direction again. It is targeting annualised contract value (ACV) growth of 20% to 40% per annum over the long term, with underlying churn of less than 10%.

    Goldman is confident in its growth trajectory and has put a buy rating and $2.75 price target on its shares. In addition to this, the broker feel that the capital raisings are likely to be over and that Nearmap has the balance sheet strength to see it through to profitability in FY 2023. The Nearmap share price ended the week at $2.21.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    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 recommends Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Jumbo Interactive 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.

    The post 2 exciting mid cap ASX shares with long runways for growth appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/3amnKJF

  • Top brokers name 3 ASX shares to buy next week

    finger pressing red button on keyboard labelled Buy

    Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

    Here’s why brokers think investors ought to buy them next week:

    Bank of Queensland Limited (ASX: BOQ)

    According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on this regional bank’s shares to $10.50. This follows the release of Bank of Queensland’s half year results last week. The broker was pleased with the result and has upgraded its earnings estimates to reflect a number of positive trends. In addition, thanks to the improving economy, it suspects that the bank could reverse some of its provisioning in the second half and FY 2022. The Bank of Queensland share price ended the week at $8.91.

    Flight Centre Travel Group Ltd (ASX: FLT)

    A note out of Macquarie reveals that its analysts have retained their outperform rating and $20.00 price target on this airline operator’s shares. This follows an update last week by Qantas which revealed that it has upgraded its capacity plans. According to the note, the broker appears confident that the worst is now behind the travel market. It also believes that structural business improvements made during COVID-19 will lead to higher profitability. The Qantas share price was fetching $5.18 on Friday.

    Transurban Group (ASX: TCL)

    Analysts at Ord Minnett have retained their buy rating and $16.00 price target on this toll road operator’s shares. This follows the release of its traffic update for the March quarter. According to the note, the broker was pleased with its update and the improving trends it is reporting. Looking ahead, the broker believes the medium term outlook is positive and expects this to support increasing distributions. Ord Minnett has forecast distributions of 37 cents per share and 58 cents per share over the next two years. The Transurban share price finished the week at $13.88.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    *Returns as of February 15th 2021

    More reading

    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

    from The Motley Fool Australia https://ift.tt/2OZ2Etx