Tag: Motley Fool

There are a few tech-heavy exchange-traded funds (ETFs) that are delivering very strong returns over the long-term. They could be worth thinking about right now.

Some ETFs are based on a large index of shares – sometimes hundreds or even thousands of names like iShares S&P 500 ETF (ASX: IVV) or Vanguard MSCI Index International Shares ETF (ASX: VGS).

However, the below two ETFs are based on a smaller group of high-performing technology businesses that have been making higher levels of returns for investors. Just remember that past performance is not an indicator or prediction of future performance:

Betashares Nasdaq 100 ETF (ASX: NDQ)

As the name might suggest, this ETF has 100 holdings of businesses that are listed on the NASDAQ – a stock exchange in the US.

There are plenty of the world’s most recognisable names in the portfolio including Apple, Microsoft, Amazon.com, Tesla, Facebook, Alphabet, NVIDIA and PayPal.

This ETF is one of the easiest ways for ASX investors to get a high level of exposure to those big American tech names.

The ‘FAANG’ group of shares – which includes Netflix – have performed strongly over the long-term and managed to get through the COVID-19 period without too much difficulty.

Betashares Nasdaq 100 ETF has been producing strong returns for investors for several years. Since inception in May 2015, the ETF has produced an average net return per annum of 20.7%. Over the last three years the net return per annum has been 24.2%.

But there’s more to this ETF than just the biggest global tech companies. It owns lots of other quality businesses like Adobe, Broadcom, PepsiCo, Texas Instruments, Costco, Qualcomm, Starbucks, Applied Materials, Advanced Micro Devices, Booking Holdings, Micron Technology, Intuitive Surgical, Activision Blizzard and MercadoLibre.

The ETF’s management fees are not too burdensome at 0.48% per annum.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The US isn’t the only place that you can find giant technology businesses with powerful market positions and growing economic strength.

Asia has a rapidly growing tech sector too. Betashares Asia Technology Tigers ETF looks to invest in the 50 largest Asian tech companies outside of Japan.

Betashares explains that:

            Due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.

This investment gives exposure to these businesses which have a weighting of more than 5% in the portfolio: Samsung Electronics, Taiwan Semiconductor Manufacturing, Tencent, Meituan and Alibaba.

Other notable mentions that have a weighting of more than 3% include: JD.com, Pinduoduo, Infosys, Netease, SK Hynix, Baidu and Sea.

This ETF has produced an enormous return over the last year, with a net return of 69.6%. Since inception in September 2018, it has made a net return of 36.5% per annum. These numbers are after the management fee of 0.67% per annum. 

More reading

• Afterpay and Zip were among the most traded ASX shares last week
• How to counter the ASX 200’s Achilles heel
• 3 top ETFs for ASX investors to buy
• 3 five-star ASX shares to buy in March
• 2 top ETFs to buy for growth

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 BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS, iShares Trust – iShares Core S&P 500 ETF, and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Don’t get me wrong, like many Australian investors, I have a massive soft spot for the ASX, but it does seem to largely be at the whim of the US stock market. For example, the S&P/ASX 200 Index (ASX: XJO) trends very similarly to the S&P 500 Index (SP: .INX), most of the time.

Obviously, there will always be domestic happenings that shift the ASX. But generally, you can compare the movements of the ASX 200 to the S&P 500 without much difficulty.

Don’t believe me? Take a look at these graphs depicting year-to-date trading of the ASX 200 – represented here by the iShares Core S&P/ASX 200 ETF (ASX: IOZ) – and the S&P 500 – represented by the iShares S&P 500 (AUD Hedged) ETF (ASX: IHVV).

Side by side, it’s not hard to see the correlation between the two.

So, why does the ASX trend so closely alongside the US stock market? Let’s dive into two potential answers.

Globalisation and the ASX 200

Basically, the ASX 200 doesn’t exist in a vacuum. Plenty of US investors invest in the ASX 200, while plenty of ASX 200 companies invest in the US. Not to mention, many companies on the ASX 200 likely do some element of their business with the US or US-owned companies.

Also, the cultural cross over between the US and Australia is significant. You only have to look at how many iPhones are in the hands of Australians or how many Ugg Boots are on Californian toes to know that as individuals we buy into each other’s cultures.

This has the potential to get complicated but suffice to say, money and investments flow within and between the two nations. 

Foreign investment means the ASX relies on the US stock market

The US is the largest foreign investor in Australia, according to 2019 data from the Department of Foreign Affairs and Trade. Similarly, Australia’s largest foreign investment destination is the US.

Our economies are thus, intertwined in a way that means the US stock market’s movements often affect Australia’s. Alas, while the US is incredibly financially important to Australia, Australia isn’t nearly as important to the US.

According to the US’s Bureau of Economic Analysis, while Australia is the US’s largest receiver of foreign investment in the Asia Pacific, we don’t even figure in the list of its top 10 global investment destinations.

This may be the reason the ASX 200 relies much more on the US market than the other way around. While here in Australia, we watch the Dow Jones Industrial Average Index (DJX: .DJI) and the Nasdaq Composite (NASDAQ: .IXIC) like hawks, but arguably we’re just a small island in the ocean to the US market.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises, Brickworks builds, Netwealth sinks
• Why is the Woolworths (ASX:WOW) share price up 5% in a week?
• 2 ASX 200 shares that keep growing their dividends
• Some of the ASX 200 companies that drove Australian exports to record levels

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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More reading

• 2 tech ETFs delivering strong long-term returns
• Why is the ASX 200 (ASX:XJO) so reliant on the US stock market?
• 2 great value ASX growth shares to buy today
• 3 ASX shares this top fund managers thinks are buys
• 2 highly rated ASX dividend shares to buy today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Kate O’Brien owns shares of Apple and Rio Tinto Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Apple. 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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A number of growth shares have come under pressure during recent market volatility and are now trading at significant discounts to their recent highs.

Two examples of this are listed below. Here’s why this could be an opportune time to consider an investment:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX growth share to consider is this pizza chain operator. The Domino’s share price is trading 14% lower than its 52-week high. This is despite Domino’s smashing expectations with its half year results last month.

Those results revealed a 16.5% increase in total global food sales to $1.84 billion and a 32.8% increase in underlying net profit after tax to $96.2 million. This stellar growth was driven by a combination of strong same store sales growth, the opening of 131 new stores, and operating leverage.

Positively, management expects an even stronger performance in the second half. It has also reiterated its long term plan of doubling its store network again over the next decade.

One broker that sees this recent weakness as a buying opportunity is Goldman Sachs. It recently reaffirmed its conviction buy rating and $112.60 price target.

Nearmap Ltd (ASX: NEA)

Another ASX growth share to consider is this aerial imagery technology and location data company. The Nearmap share price is down ~25% from its February high.

Goldman Sachs also appears to see this pullback as a buying opportunity for investors. In response to its half year results release last month, the broker put a buy rating and $2.95 price target on its shares.

While the broker acknowledges that it has been facing some near term headwinds because of COVID-19, it expects momentum to improve through 2021. It expects this to lead to new business wins accelerating from here.

In light of this, Goldman believes Nearmap can grow its revenue by a CAGR of 15% per annum between FY 2020 and FY 2023.

Furthermore, the broker has been crunching the numbers and believes Nearmap has the balance sheet strength to see it through to profitability in FY 2023.

More reading

• 2 exciting ASX growth shares to buy now
• 5 of the best ASX shares to buy next week
• 2 ASX growth shares for smart investors to buy
• 2 ASX 200 shares that keep growing the dividend every year
• 2 top ASX growth shares to buy next week

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 Nearmap Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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Spheria Emerging Companies Ltd (ASX: SEC) has identified a few ASX shares that it believes are opportunities at the moment.

What is Spheria Emerging Companies?

This is a listed investment company (LIC) that is managed by Spheria Asset Management.

It tries to look at the smaller end of the market for opportunities to beat the market.

Spheria Emerging Companies has been successful with that goal. Over the last year the LIC’s net portfolio performance has been a return of 29.8%, outperforming the S&P/ASX Small Ordinaries Accumulation Index’s return of 17.2%. Since inception in November 2017, the net return has been 9.1% per annum – superior to the benchmark return of 7.4% per annum.

The LIC owns a number of interesting ASX shares in its portfolio such as Fletcher Building Limited (ASX: FBU), HT&E Ltd (ASX: HT1), Blackmores Limited (ASX: BKL), Healius Ltd (ASX: HLS), Adbri Ltd (ASX: ABC) and Class Ltd (ASX: CL1).

These are manager’s latest thoughts on some ASX shares it thinks are opportunities:

Seven West Media Ltd (ASX: SWM)

Seven West was the largest contributor to the Spheria Emerging Companies portfolio in February. Spheria said this was thanks to reporting a result that was well ahead of market expectations as television advertising returned to growth during the fourth quarter of the 2020 calendar year. Costs were better that expected and the balance sheet was improved.

A deal about news with Google will also add to revenue and profit. Spheria believes that stronger viewer numbers should help increase revenue and potential news about the divestment of studios and/or towers may also help.

Despite the strong share price movement recently, Spheria said that the Seven West valuation is on a cheaper valuation multiple compared to its nearest listed peer.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel was another strong performer last month. Spheria pointed to the “respectable” result, low cash burn and increasing market share as reasons to be positive. The acquisition of the US business Travel & Transport was also a factor.

The LIC believes that Corporate Travel Management is positioned to return to good profitability once the western world emerges from travel restrictions due to COVID-19. The ASX share still has many months of liquidity at the current cash burn rate.

Vista Group International Ltd (ASX: VGL)

Vista was another holding that returned over 20% during the month.

Spheria explained that Vista dominates the market for software in the global cinema exhibition, distribution and production markets.

Vista has been hit hard by the COVID-19 pandemic because of the amount of cinemas that have been closed over the past year. However, the ASX share has been able to keep the cash burn to a low level, according to the fund manager. It still has 20 months of liquidity left at the current burn rate, which should improve as vaccines are rolled out in markets like North America, Europe and the UK.

The thinking behind the LIC’s choice of Vista is that it believes it’s well placed to return to strong levels of profitability as the pandemic wanes. At around 2.5x historical revenue, Spheria believes the business is undervalued if it can return to prior levels of earnings.

More reading

• ASX 200 dips, travel shares drop, Pushpay soars
• What’s with the Flight Centre (ASX:FLT) share price today?
• 11 top ASX shares that WAM thinks will make great buys
• Why Corporate Travel Management, Silver Lake, Volpara, & Vulcan are pushing higher
• Why Corp Travel Management, IGO, Limeade, & ResApp are tumbling lower

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Corporate Travel Management Limited. The Motley Fool Australia owns shares of Class Limited and Vista Group Intl. 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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If you’re looking to beat the low interest rates being offered with savings accounts and term deposits, then the share market could be the answer.

Two ASX dividend shares that offer investors attractive yields are listed below. Here’s what you need to know about them:

Super Retail Group Ltd (ASX: SUL)

Super Retail is the company behind retail brands BCF, Macpac, Rebel, and Super Cheap Auto.

Last month it released its half year results and reported a 23% increase in sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million. This was driven by strong like for likes sales, rapid online sales growth, and margin expansion.

This strong form allowed the Super Retail board to declare a fully franked interim dividend of 33 cents per share.

One broker that expects more of the same in the second half is Goldman Sachs. So much so, it is expecting the company to reward shareholders with a special dividend. Goldman is forecasting an 81 cents per share fully franked dividend for FY 2021.

Based on the latest Super Retail share price, this represents a 6.85% yield. The broker has a buy rating and $15.00 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

Another dividend share that Goldman Sachs likes is Telstra. The broker believes that its shares will re-rate higher in the future as it becomes a simpler business following its T22 strategy. It also sees further upside from its plan to split into four separate entities and monetise its assets.

In addition to this, importantly for income investors, the broker believes that Telstra will continue to pay a fully franked 16 cents per share dividend for the foreseeable future.

Based on the latest Telstra share price of $3.33, this will mean a fully franked yield of 4.55% for investors. Goldman Sachs has a buy rating and $4.00 price target on its shares.

More reading

• Why is there no ASX All Ordinaries ETF?
• Why is the Woolworths (ASX:WOW) share price up 5% in a week?
• Could a restructure spell a new era for the Telstra (ASX:TLS) share price?
• 8 ASX 200 shares rated as ‘outperform’ by brokers
• 2 quality ASX dividend shares to buy this month

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited and 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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On Thursday the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose almost 0.2% to 6,790.6 points.

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

ASX 200 expected to rise

The Australian share market looks set to end the week on a positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% higher this morning. This follows a positive night on Wall Street, which in late trade sees the Dow Jones up 0.4%, the S&P 500 up 0.4%, and the Nasdaq trading 0.1% higher.

AMP CEO remains

The AMP Ltd (ASX: AMP) share price will be on watch today after providing an update on its CEO. On Thursday there was speculation that Francesco De Ferrari had handed in his resignation, but this wasn’t the case. AMP commented that it “notes the media reports today and confirms that Francesco De Ferrari remains as Chief Executive Officer of the group.”

Oil prices sink

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) are likely to end the week deep in the red after oil prices sank lower overnight. According to Bloomberg, the WTI crude oil price is down 4.4% to US$58.49 a barrel and the Brent crude oil price has fallen 4% to US$61.82 a barrel. This is despite concerns that the Suez Canal blockage could take weeks to fix.

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) will be on watch after a poor night of trade for the gold price. According to CNBC, the spot gold price is down 0.2% to US$1,729.20 an ounce. A strengthening US dollar weighed on the precious metal and offset lower bond yields.

Resolute rated as a buy

The Resolute Mining Limited (ASX: RSG) share price crashed lower on Thursday after announcing that the Ghanaian government has terminated the mining license of its Bibiani operation. Goldman Sachs believes this is a buying opportunity for investors and has retained its buy rating and $1.30 price target. It commented: “In our view, the current share price [47 cents] implies no value is being ascribed to any asset apart from Syama Sulphides, which we conservatively model at Reserves only. We retain our Buy rating.”

More reading

• ASX 200 rises, Brickworks builds, Netwealth sinks
• Why is the Woolworths (ASX:WOW) share price up 5% in a week?
• 2 ASX 200 shares that keep growing their dividends
• Some of the ASX 200 companies that drove Australian exports to record levels
• Top brokers name 3 ASX shares to sell today

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.

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There are a number of companies in the tech sector that are growing at a strong rate currently

Two that you might want to get better acquainted with are listed below. Here’s what you need to know about them:

ELMO Software Ltd (ASX: ELO)

The first ASX tech share to look at is ELMO. It provides a cloud-based human resources and payroll software platform that streamlines a number of important business processes such as employee administration, remuneration, and payroll.

ELMO has been a strong performer once again in FY 2021. Last month it released its half year results and revealed a 42.8% increase in annualised recurring revenue (ARR) to a record $74.2 million. This was driven by a combination of organic growth and the benefits of acquisitions.

Morgan Stanley is positive on the company’s growth prospects. It currently has an overweight rating and $9.70 price target on its shares. This compares to the latest ELMO share price of $5.12.

Megaport Ltd (ASX: MP1)

Another ASX tech share to look at is Megaport. It is a provider of elastic interconnection services across data centres globally.

Megaport has been benefiting greatly from the shift to the cloud over the last few years. Pleasingly, this has continued in FY 2021 with the company recently reporting Monthly Recurring Revenue (MRR) growth of 37% to $6.3 million at the end of the first half. If you annualise this, it works out to be revenue of $75.6 million, which is already 30% higher than FY 2020’s revenue of $58 million.

Goldman Sachs is a fan of the company and recently put a buy rating and $15.00 price target on its shares. The broker believes Megaport is well placed for growth thanks to increasing demand for public cloud infrastructure and the broadening of its product suite.

More reading

• 2 rapidly growing mid cap ASX shares to buy
• ELMO (ASX:ELO)’s disappointing Supreme Court decision revealed
• 2 small cap ASX shares you need to know about
• ASX quarterly rebalance: HUB24 joins ASX 200, Brainchip into ASX 300
• ASX 200 rises, Afterpay sinks, Vocus jumps

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 Elmo Software and MEGAPORT FPO. The Motley Fool Australia has recommended Elmo Software and MEGAPORT 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 Fortescue Metals Group Limited (ASX: FMG) share price is down around 20% over the last month. What do brokers make of the value that the miner offers investors?

How has the Fortescue share price been going recently?

It has been a volatile period over the last few months for the large iron ore miner. At the start of December 2020 it was priced at $18.23. A few weeks later it had climbed 42% to $25.92 on 7 January 2021.

However, it has steadily sunk 25% since then.

Why has the Fortescue share price been falling?

Like any commodity-based business, Fortescue’s prospects are heavily linked to the movement of the iron ore price.

The iron ore price has been falling recently, it can’t be expected to stay strong forever.

There have been concerns that there has been a call by Chinese authorities to reduce emissions in Tangshan which would involve a slow down of steel production.

However, the Fortescue share price is still a lot higher than recent years and so is the iron ore price. This was reported by Fortescue itself in its half-year result when it said that the realised price was up 42% year on year to US$114 per dry metric tonne.

There wasn’t much change in the amount of iron ore sold by Fortescue – it went up 3% to 90.2 million tonnes.

The increase in the iron ore price led to Fortescue growing revenue by 44% to US$9.3 billion, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) growing by 57% to US$6.6 billion and net profit after tax (NPAT) rising by 66% to $4.08 billion.

A shift in focus for the company

Investors have also been taking in the news that Fortescue is going to be focusing on decarbonising its operations and pursuing green energy projects.

Fortescue has said it’s going to leverage its successful track record of identifying, assessing and developing large-scale resource and infrastructure opportunities, It’s going to bring its capabilities to adopting innovative technology to ensure Fortescue is at the forefront of this emerging industry.

Fortescue Future Industries (FFI) has been established, it’s identifying renewable energy and green hydrogen projects both in Australia and globally.

The miner has committed to investing 10% of its net profit each year into renewable energy growth through FFI.

Broker thoughts on the Fortescue share price

There are varying thoughts on Fortescue. The broker Macquarie Group Ltd (ASX: MQG) has a price target of $25.50, which suggests potential upside of around 30%.

However, there’s then Morgan Stanley which thinks the Tangshan issues will start to cause a decline for the iron ore price. As a miner with a lower grade of iron, Fortescue could be hurt more by this. Morgan Stanley’s price target is $17.45.

In FY22, Morgan Stanley thinks that Fortescue could pay a dividend of $1.58 per share, amounting to a grossed-up dividend yield for next financial year of 11.6%.

However, Macquarie has a more positive outlook for the FY22 dividend and earnings. Macquarie believes the Fortescue share price is valued at 8x FY22’s estimated earnings with a FY22 grossed-up dividend yield of 14%.

More reading

• Where to reinvest your Fortescue (ASX:FMG) dividends
• The ANZ (ASX:ANZ) share price is Macquarie’s top big four bank pick
• Macquarie sees near-term pain for the Afterpay (ASX:APT) share price
• 5 things to watch on the ASX 200 on Wednesday
• 8 ASX 200 shares rated as ‘outperform’ by brokers

Motley Fool contributor Tristan Harrison owns shares of Fortescue Metals Group Limited. 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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Big brokers have run the ruler on new announcements and notable share price movements. Here are the ASX 200 shares that have been upgraded to a buy or buy equivalent rating on Thursday. 

4 bullish ASX 200 shares 

Bapcor Ltd (ASX: BAP) 

Bapcor announced its plans to expand into Asia by acquiring 25% of the issued equity of Tye Soon. Tye Soon is an independent automotive parts distributor in South East and North East Asia, distributing a wide range of parts and aftermarket parts. Bapcor will invest approximately SGD$12.5 million for the 25% stake and work together to maximise opportunities in the Asia and Australasia region. 

Citi believes the acquisition will provide Bapcor with a base to grow its Asian business and address the gaps in its specialist wholesale portfolio. The broker eyes South Korea and Malaysia (43% of Tye Soon’s revenue) as key rollout opportunities for Bapcor in Asia. 

Citi retained a buy rating with a $9.35 target price, representing an upside of approximately 26%.

Brickworks Limited (ASX: BKW) 

The Brickworks share price is on the rise today after announcing its half-year results. At the time of writing, Brickworks shares were trading for $19.80, up 4.7%.

The building products company reported a 4% decline in revenue to $432 million. Earnings before interest and tax (EBIT) fell 6% to $127 million. 

These results were better than expected from Citi’s point of view and were boosted by revaluations and sales of property. Excluding property, the operational performance came in below expectations, driven by a weaker Australian building products segment. 

The broker retained a buy rating with the belief that its outlook is improving. Its target price of $22.70 represents an upside of approximately 20% at today’s prices. 

Graincorp Ltd (ASX: GNC) 

Graincorp upgraded its earnings on Wednesday on the back of new operating initiative and completion of its international expansion. This is expected to increase its ‘through-the-cycle’ earnings which refers to a notional year of average East Coast Australia grain production and average tonnes handled by GrainCorp.

Credit Suisse believes the market has underrated the cost reductions that Graincorp has made over the years. The broker also increased its medium-term forecasts, in-line with the company’s new earnings before taxes, depreciation, and amortisation EBITDA guidance. 

The broker upgraded Graincorp shares to outperform with a $5.59 target price. With the Graincorp share price pushing another 2.6% higher today to $5.13, the target price represents an upside just shy of 10%. 

Polynovo Ltd (ASX: PNV) 

The Polynovo share price is making a strong recovery this month after losing more than 30% in value between late December 2020 and mid January 2021. 

The company missed earnings expectations when it updated the market back in January. The update reported a 31% increase in sales vs. the commentary from Polynovo managing director that revenue would double again in FY21. 

Macquarie Group Ltd (ASX: MQG) believe Polynovo could get back on track with its entry into sizeable markets such as chronic wounds and hernia to support growth in the medium to long term. 

The broker upgraded Polynovo shares from neutral to outperform with a $3.20 target price. The Polynovo share price has surged more than 20% this month to $3.02 at the time of writing. The target price represents an upside of 5.40%. 

More reading

• The PolyNovo (ASX:PNV) share price jumps 5% with its latest news
• ASX 200 rises, Brickworks builds, Netwealth sinks
• 2 ASX 200 shares that keep growing their dividends
• Some of the ASX 200 companies that drove Australian exports to record levels
• Why Brickworks, McPherson’s, MedAdvisor, & Premier Investments are storming higher

Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of POLYNOVO FPO. The Motley Fool Australia owns shares of and has recommended Bapcor and Brickworks. 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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