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In morning trade on Monday, the Money3 Corporation Limited (ASX: MNY) share price is racing higher.

At the time of writing, the vehicle-focused consumer finance provider’s shares are up 4$ to $2.85.

Why is the Money3 share price racing higher?

Investors have been buying the company’s shares this morning after it announced a new acquisition and an update to its guidance for FY 2021.

According to the release, the company has entered into an agreement to acquire GMF Australia for $17 million. This will be funded from the company’s cash reserves.

GMF Australia is a subsidiary of General Motors Financial Company and consists of a portfolio of approximately 700 automotive loans for new vehicles.

The transaction is expected to settle in February 2021 and increases the company’s automotive loan book by approximately $23 million.

The release explains that GMF Australia will be absorbed by the company’s Customer Care operation with a minimal increase in ongoing operational expenses.

Money3’s Managing Director, Scott Baldwin, commented: “Money3 continues to leverage its strengths in collections with the acquisition of approximately 700 customers of prime credit quality that purchased a new vehicle through a Holden dealership. It demonstrates the group’s ability to acquire customers either organically or through portfolio acquisitions.”

“There are no staff or complicated transition processes needed for this acquisition as all outstanding commitments will roll into the existing Customer Care team deploying capital immediately with customer repayment patterns aligning nicely with the cash requirements of the business in 2021,” he added.

FY 2021 guidance.

Pleasingly, the company’s strong form continued through to the end of the first half. Combined with recent acquisitions, the company expects its full year result to be stronger than previously forecast.

As a result, management has upgraded its full year guidance for net profit after tax to $36 million. This compares to its previous profit after tax guidance of $34 million and will be a year on year increase of 12.2%.

More reading

• Why the Money3 (ASX:MNY) share price is on watch 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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While blue chip shares such as Ramsay Health Care Limited (ASX: RHC) and Sydney Airport Holdings Pty Ltd (ASX: SYD) have had their growth stifled by the pandemic, not all blue chips have been impacted.

Two blue chip ASX shares which are growing at a strong rate are listed below. Here’s why it may not be too late to buy their shares:

ResMed Inc. (ASX: RMD)

ResMed is a medical device company with a focus on sleep disorders. It has been growing at a strong rate over the last 12 months despite the pandemic.

For example, in FY 2020, ResMed delivered a 15% increase in revenue to US$2,957 million and a 32% jump in net income to US$692.8 million.

Pleasingly, this strong form has continued in FY 2021. During the first quarter, the company reported a 10% increase in revenue to US$751.9 million and a 37% increase in non-GAAP net income to US$185.4 million. This was driven by robust demand for its core sleep treatment products and increased demand for ventilators due to the COVID-19 pandemic.

Also supporting its growth has been its rapidly growing digital health ecosystem, which reached over 12 million cloud connectable medical devices in 2020. This provides ResMed with strong recurring revenues and a material amount of high quality data.

Analysts at Morgans are fans of the company and currently have an add rating and $30.99 price target on its shares.

Sonic Healthcare Limited (ASX: SHL)

Another blue chip growing strongly is Sonic Healthcare. It is a leading medical diagnostics company with operations across the world.

Sonic has been a very impressive performer so far in FY 2021. It recently released its first quarter update and revealed a 29% increase in revenue to $2,144 million and a 71% lift in EBITDA to $580 million. The key driver of its growth has been strong demand for COVID-19 testing services globally. This was supported by a solid performance from the rest of the business during the quarter.

And while this level of growth is expected to moderate in the coming quarters, Sonic has been tipped to deliver a very strong full year result in August by brokers.

One of those is Credit Suisse. It has been pleased with its performance in FY 2021. So much so, it recently put an outperform rating and $39.00 price target on Sonic’s shares.

More reading

• 3 blue chip ASX growth shares to buy
• This ASX 200 stock is tipped to lift dividends by 87% this year
• 3 reasons why the Pushpay (ASX:PPH) share price could be a buy
• Fundies reveal 3 top ASX shares to buy for 2021
• 3 ASX growth shares to buy right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care Limited, ResMed Inc., and Sonic Healthcare 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 Tyro Payments Ltd (ASX: TYR) share price is one to watch this morning as the Aussie payments company looks to respond to an activist short-selling report.

Why is the Tyro share price on watch?

According to an article in the Australian Financial Review (AFR), Tyro executives have been working on a response to the allegations.

The Tyro share price plummeted 11.8% lower on Friday after a short-seller released a damaging report. Viceroy Research alleged that 50% of Tyro’s payment terminals were experiencing problems — more than the company had previously announced.

Tyro had previously updated the ASX on the terminal outage in early January. On 13 January, the company said 19% of merchants were “impacted” by the outage first announced on 7 January.

The outage has proven more difficult to fix than Tyro had first hoped. That has seen transaction volumes impacted and updates unable to run for Tyro’s merchants. That’s put the Tyro share price under pressure in recent days.

The Viceroy report was released during trading hours, meaning the company’s shares plummeted before a trading halt was called.

Prior to the payments issue coming to light, shares in the Aussie payments group had been performing well. In fact, the Tyro share price climbed 228.9% from 19 March 2020 to the end of the year.

However, 2021 hasn’t started in a strong fashion for Tyro shareholders. The company’s shares have slumped 31% since the start of the year thanks to the outage issue.

Tyro is far from the first Aussie company to come under fire from short-sellers. Both Seek Ltd (ASX: SEK) and WiseTech Global Ltd (ASX: WTC) have been among those targeted by short-sellers recently.

Foolish takeaway

The Tyro share price is one to watch today as the market waits for the company’s response. The Viceroy Research report sent the company’s shares plummeting on Friday — shareholders will want to see a strong response from the company this week.

More reading

• ASX 200 ends flat on Friday
• Why Advance Nanotek, Polynovo, Resolute, & Tyro shares are dropping lower
• Tyro Payments (ASX:TYR) share price crashes 12% on short seller attack
• Outage issues could weigh on growth for the Tyro (ASX:TYR) share price
• Why BrainChip, Pilbara Minerals, Premier Investments, & Tyro shares are dropping lower

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tyro Payments. 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 Ramsay Health Care Limited (ASX: RHC) share price has been an underperformer over the last 12 months.

However, one leading broker believes its shares could soon be heading notably higher from here.

What happened?

This morning analysts at Goldman Sachs upgraded and added the private hospital operator’s shares to its conviction buy list with an improved price target of $70.00.

This implies potential upside of almost 20% over the next 12 months including the 1.4% dividend yield Goldman is forecasting.

Why is Goldman Sachs positive on Ramsay?

According to the note, Ramsay’s shares are currently changing hands at 8.1x earnings before interest, tax, depreciation and amortisation (EBITDA) for an 8% EBITDA compound annual growth rate (CAGR) (FY21-24E). This is towards the bottom of its five-year range.

And while the broker sees various industry challenges over the long term, for now it believes the improvement in near-term fundamentals has not yet been reflected in either consensus forecasts or current trading multiples.

As a result, it expects improvements in both to drive its outperformance through 2021.

In respect to the near-term, the broker commented: “Contrary to many other hospital groups globally, most of RHC’s core market (Australia, 65% of EBIT) has been operating largely unencumbered since July, and entirely without volume limitations since end-November.”

“Reflecting a material backlog, we estimate current surgery volume growth of +7-9%, approximately double long-term rates (+4%), driving an extended period of elevated utilisation and more favorable cost absorption than seen for many years. Furthermore, in recent months, the industry has seen a strong recovery in the margin-accretive ‘medical specialties’, which had lagged conventional surgery volumes in prior recent quarters, likely contributing to further margin relief,” it added.

And while it notes that considerable uncertainty persists in Europe, it points out that much of the downside risk is being limited through government support. Furthermore, the broker expects trading conditions in that market to improve once vaccines are rolled out.

In light of this, the broker sees “scope for improved volume and margin dynamics in FY22-23E” across all markets if PPE costs also taper through this period as it expects.

Overall, it feels this makes the Ramsay share price great value at the current level.

More reading

• 5 things to watch on the ASX 200 on Monday
• 2 ASX 50 shares to buy
• Infinite games: 3 ASX shares with long-term visions
• Sonic Healthcare (ASX:SHL) share price gets fresh COVID boost
• 2 ASX blue chip shares tipped as buys for 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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 Pendal Group Ltd (ASX: PDL) share price slipped 3% lower on Friday despite a funds under management (FUM) update from the Aussie investment group.

What did Pendal announce?

Last week, Pendal updated the market with its quarterly FUM update for the period ended 31 December 2020.

The company posted a $5.0 billion increase in FUM — up 5.4% on the prior quarter for a total period-end FUM of $97.4 billion.

The Aussie investment group cited strong markets and investment outperformance as triggering the uplift. However, negative currency impact of $2.7 billion and net outflows of $1.6 billion tempered the absolute $9.3 billion FUM increase.

Despite the update, the Pendal share price remained under pressure and fell 3.0% on Friday. It’s also worth noting the broader market closed broadly flat on Friday after climbing in early trade. The S&P/ASX 200 Index (ASX: XJO) edged marginally higher to close at 6,715.4 points on Friday afternoon.

Pendal Group CEO Emilio Gonzalez said the FUM increase “continues to demonstrate the benefits” of the group’s diversified business model.

The company also provided an update on its full-year J O Hambro Capital Management (JOHCM) performance fees. JOHCM is a boutique investment management business with offices in London, Singapore, New York and Boston specialising in the active equities management. According to Pendal’s website, JOHCM managed assets of $53.1 billion as at 31 December 2019.

Performance fees totalled ~$41.2 million up from ~$0.6 million in the prior corresponding period. Six investment strategies, primarily the Global and International Select stratgies, generated the fees which will contribute $21.4 million to Pendal’s statutory and underlying profit after tax.

JOHCM saw strong flow momentum into US pooled funds with the International Select strategy seeing consistent monthly inflows.

What about other ASX 200 Financials shares?

The Pendal share price slipped lower on Friday despite the FUM increase announcement. The 3.0% share price fall is in contrast to many of Pendal’s ASX 200 Financials peers.

The Westpac Banking Corp (ASX: WBC) share price climbed 1.5% higher to $21.35 while Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares edged 0.2% higher to $24.66.

The Commonwealth Bank of Australia Ltd (ASX: CBA) share price fell 1.1% lower on Friday while the broad market index closed broadly flat.

More reading

• ASX 200 Weekly Wrap: ASX drops despite promises of more US stimulus
• These ASX dividend shares could solve your income needs
• 5 things to watch on the ASX 200 on Monday
• 2 ASX dividend shares with yields over 5% right now
• ASX banks to steal the dividend crown from mining stocks by next year

Motley Fool contributor Ken Hall 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 DEXUS Property Group (ASX: DXS) share price could be on the rise today.

This morning the property company’s shares were upgraded by analysts at Goldman Sachs.

What did Goldman Sachs say?

The broker notes that since June, Dexus has managed to offload $1.7 billion of Office assets and taken advantage of resilient asset pricing in the face of rapidly deteriorating occupier market conditions.

In addition to this, during the period the company has continued to build its Logistics and Healthcare funds under management base, while positioning for any further cyclical deterioration via the formation of an Opportunistic Fund.

Based on this and on a proforma basis, Goldman expects look-through gearing to fall to ~20%. This compares to 26% at the end of June and its target range of 30% to 40%.

But it doesn’t expect it to stop there. With its Gold Tower asset in Brisbane currently being marketed for sale, Goldman expect Dexus’ gearing to decline further. It feels this provides additional scope for share buyback activity and positions its balance sheet to absorb further material asset devaluations.

Asset devaluations.

Goldman Sachs believes the market is pricing in a significant decline in the value of its Office assets.

It commented: “On our estimates, DXS’ current stock price implies a ~21% decline in the value of its Office portfolio vs Jun-20 levels. We continue to expect a peak-to-trough decline of ~30% for Sydney and Melbourne CBD Office assets. However, with valuations (and transactional evidence) to date proving resilient and purchaser demand for Australian Commercial assets holding up, we believe the disconnect between private and public market pricing implicit in DXS’ stock price provides scope for potential M&A activity.”

Upgrade to neutral.

In light of the above, Goldman Sachs has upgraded its rating on Dexus from sell to neutral with a price target of $9.65. This compares to the current Dexus share price of $8.99.

The broker also estimates that Dexus’ shares currently provide investors with a generous FY 2021 dividend yield of 5.6%.

Combined with its price target, this implies a potential total return of almost 13% over the next 12 months.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why Afterpay, DEXUS, Integrated Research, & Regis Healthcare are dropping lower
• ASX 200 down 0.8%: Big four banks and tech shares drag the market lower
• These 4 ASX REITS are about to go ex-dividend

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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Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) which looks at the larger businesses on the ASX.

WAM says WAM Leaders actively invests in the highest quality Australian companies.

The WAM Leaders portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 12.8% per annum since inception in May 2016, which is superior to the S&P/ASX 200 Accumulation Index average return of 8.7%.

These are the two ASX shares that WAM outlined in its most recent monthly update, which were two of the largest contributors of performance for the month:

IGO Ltd (ASX: IGO)

WAM described IGO as a clean metals exploration and mining company producing nickel, copper and gold.

In December, the IGO share price rallied strongly after IGO’s entry into the lithium sector, through a non-controlling stake of a Western Australia lithium mine and lithium hydroxide plant.

The fund manager said that the transaction aligns with the ASX share’s long term strategic plan to support the structural shift into battery storage, with the company noting electric vehicle sales are expected to grow approximately 18% per annum through to 2030. If IGO announces the divestment of its Tropicana gold mind, the fundie expects this will be a further positive catalyst for the share price of IGO.

In FY20 the company generated record underlying free cash flow of $311 million for the year. It also generated record net profit after tax (NPAT) for the year of $155 million, an improvement of 104% over FY19.

The ASX share said in its quarterly report for the period ended 30 September 2020, the Nova operation production increased quarter on quarter for all metals. Cash costs were lower at $2.25 per payable pound of nickel. Tropicana gold production was up 5% on the prior quarter at 107,060 ounces. It also said that commercial production from the Boston Shaker underground mine was declared.

For that quarter, it generated revenue and other income of AU$227 million and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $121 million at a margin of 54%. It also generated cashflow from operations of $110 million and generated free cash flow of AU$84 million for the quarter.

BHP Group Ltd (ASX: BHP)

WAM said that not only is BHP the largest resources company on the ASX, but it’s one of the most diversified, producing iron ore, oil, gas, coal, copper, nickel and uranium.

The fundie said that while the December outperformance was primarily driven by higher by iron ore prices, WAM favours the ASX share for its exposure to oil, nickel and copper in particular.

Over the near term, WAM expects oil prices to be supported by a continued recovery in coronavirus-related demand, with travel and industrial production being two examples.

Over the longer-term, a catch up in capital expenditure should see a significant tightening in supply. The fund manager said it’s constructive on nickel and copper for the same electric vehicle reasons that were said about IGO.

More reading

• ASX 200 Weekly Wrap: ASX drops despite promises of more US stimulus
• ASX banks to steal the dividend crown from mining stocks by next year
• 4 ASX shares that helped this fund outperform in December
• Why Afterpay, BHP, Objective, & Pro Medicus shares are charging higher
• 3 blue chip ASX dividend shares with big yields

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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Welcome back to the first Foolish Weekly Wrap of 2021! The S&P/ASX 200 Index (ASX: XJO) had a muted week last week, dropping 0.6% despite a raft of positive developments for ASX shares.

The leading story was the late-week announcement of another massive stimulus package over in the United States. President-elect Joe Biden made the announcement on Friday morning (our time) and told Americans that his plan ‘doesn’t come cheap’ but is necessary to help the US economy transition to a post-COVID, vaccinated future.

The US$1.9 trillion plan involves another round of US$1,400 stimulus cheques as well as funding injections for vaccine rollout efforts, among other provisions.

The markets reacted positively to the announcement on Friday, but tempered their enthusiasm somewhat soon after. That was sparked by doubts surfacing over the Democrats’ ability to shepherd the entire package through Congress with its razor-thin majorities in both Houses.

ASX miners and drillers pile on the gains

Even so, the stimulus announcement was catnip for ASX resources shares in particular. BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG) all spiked on Friday on the news, before drifting slightly lower throughout the day.

ASX energy shares also felt the love from the stimulus announcement. Like the miners above, Woodside Petroleum Limited (ASX: WPL), Oil Search Ltd (ASX: OSH) and the energy sector also saw a healthy spike in Friday’s early trade.

But perhaps the week’s biggest winner was Afterpay Ltd (ASX: APT), although for different reasons entirely. Afterpay spent the second trading week of 2021 once again reaching new record highs. The buy now, pay later (BNPL) pioneer hit a new high watermark on Friday of $135.54 a share after shooting more than 10% higher over the trading day. It’s only mid-January, yet Afterpay shares are already up 11.9% year to date!

The catalyst for this move appears to be another round of bullish broker upgrades, as well as the successful IPO of Affirm Holdings Inc (NASDAQ: AFRM). Affirm is a US-listed BNPL company, which rocketed from its IPO price of US$49 a share to US$117 by the end of the week. As my Fool colleague Lina Lim pointed out, Affirm is roughly valued at the same market capitalisation as Afterpay on this move. Investors are clearly interpreting this move as a bullish display of the investor capital available to BNPL companies in the States.

Back home, Afterpay is now valued higher than Telstra Corporation Ltd (ASX: TLS) on the ASX.

How did the markets end the week?

Since the ASX 200 Index started the week at 6,757.9 points and ended up at 6,715.4 points, the benchmark saw a 0.63% decline for the week. Monday kicked things off with a 0.8% decline, which was followed on Tuesday with another 0.1% lopped off. Wednesday saw this partially reversed with a 0.1% gain. Then Thursday turned things around with a 0.4% gain, which was backed up with a tiny 0.002% bump on Friday.

Meanwhile, the All Ordinaries Index (ASX: XAO) also had a week in the red, starting at 7,021.2 points and finishing up at 6,986.8 points in a 0.4% drop.

Which ASX 200 shares were the biggest winners and losers?

Everyone’s favourite page is back with our salacious look at the week’s winners and losers. So put the kettle on and fetch the biscuits while we, as always, start with the worst-performing ASX 200 shares of the week:

More reading

• These ASX dividend shares could solve your income needs
• 5 things to watch on the ASX 200 on Monday
• 2 ASX dividend shares with yields over 5% right now
• Buy these ASX dividend shares if the RBA cuts rates again
• 3 great ASX tech shares to buy

Sebastian Bowen owns shares of National Australia Bank Limited, Newcrest Mining Limited, and Telstra Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Altium and Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and POLYNOVO FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO, COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. The Motley Fool Australia has recommended Pro Medicus 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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It certainly is getting very hard to earn a passive income from traditional interest-bearing financial products like savings accounts and term deposits. 

Fortunately, the Australian share market still has plenty of dividend shares offering yields that could solve your income needs. Two to look closely at are listed below:

BWP Trust (ASX: BWP)

The first dividend share to look at is commercial property company BWP Trust. It is the largest owner of Bunnings Warehouse sites across Australia.

Given the quality of the Bunnings business and its strong performance during the pandemic, BWP has been a solid performer over the last 12 months. In fact, it even saw the value of its properties increase at the height of the crisis. This led to the company reporting an impressive 24.4% increase in full year profit to $210.6 million in FY 2020.

This strong form also allowed the BWP board to increase its distribution to 18.29 cents per unit. Based on the current BWP share price, this represents a trailing 4.3% yield for investors. Management advised that a similar dividend is expected in FY 2021.

Westpac Banking Corp (ASX: WBC)

The banking sector didn’t fare anywhere near as well as BWP in FY 2020. A spike in loan deferrals and billions of dollars worth of provisions weighed heavily on investor sentiment and sent bank shares down to multi-year lows. It also forced the banks to cut or suspend their dividends, much to the dismay of shareholders.

The good news is that the worst now appears to be over and the banks have come out of the crisis in a much better shape than expected. And while their shares have rallied hard because of this, it doesn’t appear to be too late to invest for income thanks to APRA’s decision to scrap its dividend restrictions.

Last week analysts at Morgan Stanley put an outperform rating and $22.50 price target on Westpac’s shares. The broker is also forecasting an 86 cents per share dividend in FY 2021 and then a $1.08 per share dividend in FY 2022. This represents 4% and 5% dividend yields, respectively, over the next two years. 

More reading

• ASX banks to steal the dividend crown from mining stocks by next year
• This broker calls ANZ (ASX:ANZ) shares as the preferred bank pick
• ASX 200 up 0.4%: Afterpay hits record high, bank shares rise, Resolute disappoints
• Westpac (ASX:WBC) share price climbs higher as investors eye dividends
• Here’s why ASX bank shares might juice up their dividends in 2021

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. 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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If you have room in your portfolio for a growth share or two, then you might want to take a look at the ones listed below.

Both have been named as buys and tipped to deliver strong growth over the coming years. Here’s what you need to know:

Nanosonics Ltd (ASX: NAN)

With the COVID-19 crisis highlighting the importance of infection control, Nanosonics looks well-placed for the future. At present the company is a bit of a one-trick pony with its hugely popular and industry-leading trophon EPR disinfection system for ultrasound probes.

However, it is aiming to launch several new products in the near future which have similar addressable markets. Given the favourable tailwinds supporting infection prevention, these products could take its growth up a level if management finally releases them after several delays.

One broker that thinks investors should be patient with Nanosonics is UBS. The broker believes the company is a high-quality and structural growth story and expects it to benefit from post-COVID infection prevention tailwinds. UBS has a buy rating and $7.20 price target on the company’s shares.

Zip Co Ltd (ASX: Z1P)

Another growth share to look at is Zip. It is a leading buy now pay later provider with operations across several key markets such as Australia, the United Kingdom, and the United States.

Zip has been growing its transaction value and customer numbers at a very strong rate over the last few years. This has been driven by the growing popularity of the buy now pay later payment method with consumers and merchants, the decline in credit card usage, and its international expansion.

The company has also launched a few complementary products which have been tipped to support its growth in the future. These include Zip Business and its Tap & Zip product.

Analysts at Morgans are very positive on its outlook. Following its capital raising last month, the broker put an add rating and $8.89 price target on its shares. This compares to the current Zip share price of $5.61.

More reading

• What’s in store for the ASX tech sector in 2021?
• ASX 200 rises 0.4%
• Could this be why Afterpay (ASX:APT) and other BNPL shares are soaring today?
• Afterpay and Creso Pharma were among the most traded shares on the ASX last week
• 5 things to watch on the ASX 200 on Tuesday

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 Nanosonics Limited and ZIPCOLTD FPO. The Motley Fool Australia has recommended Nanosonics 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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