Tag: Motley Fool

Nearmap Ltd (ASX: NEA) has been listed on the ASX since 2000, more than 20 years now. The Nearmap share price is up more than 7,000% in this time!

The company was founded in Perth in 1998 and provides high resolution aerial imagery technology, city scale 3D datasets and integrated geospacial tools. It captures and publishes imagery covering more than 446,000 square kilometres in Australia.

According to Nearmap, it is expanding its coverage regularly. Australia isn’t the company’s only market either, with services currently provided for New Zealand and North America as well. As of 2020, Nearmap covers 88% of Australia’s population, 68% of the United States population and 72% of the New Zealand population.

About the Nearmap share price

Nearmap had a pretty horrible nine-month period from June 2019 to March 2020. The share price fell a devastating 80%. While most companies had their uptrend wrecked by COVID-19, the Nearmap share price was already falling. The March crash only amplified the ongoing losses. 

The great news is that since the lows in March of around 80 cents, the Nearmap share price has recovered strongly and is currently trading at around $3.00. This represents a rise of more than 280% in six months.

I think this rise in the Nearmap share price illustrates the company’s resilience. However, investors looking for a good deal can be reassured by the fact that Nearmap’s all time high share price was $4.30 and occurred in June 2019, so today’s price still represents a buyers’ discount of almost 30%. 

Recent announcements

On 19 August, Nearmap released its full year FY20 results for investors. This resulted in an initial sell off on the day of release as investors took in some of the more negative financial results. Following this, however, the Nearmap share price jumped more than 35% in four days as investors began to focus on the overall positives.

Some of the key, positive takeaways from the investor presentation included:

• Nearmap AI launched, with capability to provide visualisation and data on more than 80 million properties.
• 54% of annual contract value generated by existing customers accessing more premium content released by Nearmap.
• New content such as roof geometry technology and advanced camera systems continue to receive investment from Nearmap.
• New partnerships with OpenSolar, Cityworks, Teranet and Eagle Technology.
• Business continuity maintained during COVID-19 with no impact to business operations or flight surveys.
• Employees successfully transitioned to remote work without impact to productivity.
• $33.8 million of cash and no debt at the end of FY20.

Foolish takeaway

I believe the Nearmap share price offers the perfect combination of promising growth and a discounted price. The company’s products are proven and commercialised, with revenue, partnerships and expansion underway.

Unlike many other tech companies that have recently listed, Nearmap has a 20-year listed history on the ASX, which provides a lot of transparency for investors.

An important note for investors questioning the difference between Nearmap and Google (NASDAQ: GOOGL) Earth, which seems to display similar images, is that Nearmap offers aerial surveillance, rather than satellite surveillance. This means the level of detail is higher and the distance is closer. Nearmap offers an altogether different product and, as such, is well worth considering as an addition to the portfolio, in my view.

More reading

• New to investing? Here’s how I would make my first $100,000
• Nearmap share price rebounds to gain 32% in August to date
• 4 exciting ASX tech shares surging higher today
• These are the 10 most shorted shares on the ASX
• Are these ASX shares future millionaire makers?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. glennleese 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 Alphabet (A shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia has recommended Alphabet (A shares) and Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is today’s Nearmap share price a buy? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31C33pb

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Apple‘s (NASDAQ: AAPL) gains so far in 2020 have electrified investors. Despite beginning the year with a market valuation of more than $1.2 trillion, the technology giant’s stock has surged 70%, creating fortunes for its shareholders along the way. 

And yet, one analyst believes Apple shares are set to move even higher following its upcoming stock split.

Ives sees as many as 350 million people upgrading to Apple’s upcoming iPhone 12 model – which is expected to include much-awaited fifth-generation (5G) wireless technology – over the next 18 months. The analyst says this iPhone supercycle is a “once in a decade” profit opportunity for Apple – one that many investors are not yet fully appreciating.

Will Apple’s shares continue to surge after its stock split? 

If iPhone 12 sales blow away expectations, as Ives predicts, then Apple’s stock will likely climb to $600 – and potentially even higher – in the year ahead. The iPhone is, of course, Apple’s most important product, and new phone sales tend to also boost sales of apps and services, all of which could help to drive profits sharply higher.

Apple’s upcoming stock split could also help to fuel a rise in its share price. Despite the fact that a stock split does not alter the fundamental value of a business, many investors do get excited about the opportunity to buy more shares at a lower price. 

For these reasons, Apple’s stock could approach Ives’ $600 pre-split ($150 post-split) target price much sooner than many investors currently expect.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 2 Advantages of Stock Splits for Apple and Tesla Investors
• Is Apple’s market cap headed to $3 trillion? One analyst thinks so
• Apple shareholders are either correcting a mistake… or making one
• The 1 Warren Buffett quote that tells us how to invest right now
• Apple becomes first company worth US$2 trillion. Here’s what we can learn

Joe Tenebruso 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 Apple. The Motley Fool Australia has recommended Apple. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Apple shares will surge 20% after its stock split, according to this analyst. Is he right? appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from Motley Fool Australia https://ift.tt/32sNfnU

Building a starter portfolio of ASX shares can be an intimidating goal, but a highly worthwhile one nonetheless. Choosing the right shares is part of this intimidation. With the hundreds of options to choose from on the ASX alone, it’s easy to second-guess yourself and the research or ideas you might have come across or found yourself. That’s why I think the 2 ASX shares named below are perfect for such a starter portfolio.

Both are ‘hands-off’ investments that invest in different companies on your behalf, with very little active input required. Here they are:

1) iShares S&P 500 ETF (ASX: IVV)

This index that this exchange-traded fund (ETF) tracks is one of the most popular investments in the world. It’s none other than the S&P 500, which follows 500 of the largest companies in America (and the world). It holds everything from eh FAANG stocks like Apple and Amazon.com to Coca-Cola, Microsoft, Bank of America, Ford and Walmart.

Investing legends ranging from Warren Buffett to the late Jack Bogle have recommended the S&P 500 as a perfect investment for anyone unable or unwilling to get into the weeds of investing. Thus, I think IVV is a great stock for any starter portfolio. You get fantastic diversification, access to some of the best companies in the world and a small stream of dividend income, all in one easy share. Another benefit? IVV charges a minuscule management fee of just 0.04% per annum. That means you can have $10,000 invested in this ETF and pay $4 a year for the privilege.

2) Magellan Global Trust (ASX: MGG)

Magellan Global Trust is another great option to consider for a starter portfolio. This investment isn’t an ETF, but a Listed Investment Trust (LIT). That means it doesn’t track an index but instead has a fund manager investing on your behalf. In this case, the fund manager is the reputable Magellan Financial Group Ltd (ASX: MFG), which has steadily built a reputation as one of the best fund managers on the ASX over the past decade.

MGG focuses mostly on shares outside Australia. It aims to hold between 20 and 40 of the world’s best companies, according to its mandate. As of 31 July, these included Alphabet (owner of Google), Microsoft, Starbucks and Tencent Holdings.

As a way to get access to a high-performing and concentrated portfolio of international shares, I think this LIT is a fantastic choice and one perfect for a starter portfolio today.

More reading

• 3 defensive ASX shares I’d buy for safety
• What is the best ETF for Aussie investors?
• Is iShares S&P 500 ETF the best long-term investment?
• 2 ASX shares to buy for growth and income
• Here’s how much money you can actually make from investing in ASX shares

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Sebastian Bowen owns shares of Alphabet (A shares), Coca-Cola, Starbucks, and Ford. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Alphabet (A shares). The Motley Fool Australia has recommended Alphabet (A shares). We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 2 ASX shares perfect for a starter portfolio appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3loMPYk

The Woolworths Group Ltd (ASX: WOW) share price has been among the best performers on the ASX 50 over the last three months

Since this time in May, the conglomerate’s shares have risen by a solid 15% to $39.97.

Is it too late to invest?

While I have a preference for rival Coles Group Ltd (ASX: COL), I still see Woolworths as a solid addition to a balanced portfolio. Especially for those seeking a source of income in this low interest rate environment.

One broker that is sitting on the fence following its full year results release is Goldman Sachs. This morning the broker retained its neutral rating and lifted its price target to $38.80.

What did Goldman Sachs think of Woolworths’ results?

Goldman Sachs notes that Woolworths’ sales were in line with expectations in FY 2020 and trends remain strong across all its divisions so far in FY 2021.

The broker commented: “Sales across all divisions were broadly in line with our forecasts. However, the trading update into the 1st 8 weeks of FY21 offered a positive surprise with double digit sales growth in all divisions (excl. NZ supermarkets which was +8.3%), despite cycling through elevated pcp sales from continuity programs.”

Goldman was also pleased to see that the company’s online sales are growing quickly, noting that online sales grew 84.6% overall and 99% in the Food business.

And while its elevated costs have taken a bit of the shine off its strong start to the year, the broker notes that they are reducing.

It said: “The group has however guided that COVID-19 related costs have persisted, though at lower levels than 4Q20 (4Q20 run rate of A$24mn per week to A$13mn pw in 1Q21). This implies ~$160mn over the quarter compared to guidance from COL at c. A$100mn for 1Q21.”

Another positive in FY 2020 was the company’s cash flow, which led to a strong cash conversion ratio of 124.4%. It notes that this was driven by a beneficial working capital position from the ongoing strength in sales. Though, much of this is forecast to unwind over FY 2021.

In light of its strong start to the year, the broker has upgraded its earnings estimates and price target accordingly.

“We revise group EBIT forecasts by +1.8% in FY21 and +0.5% in FY22. NPAT revisions are c. 3.2% on an underlying basis in FY21 and +1% in FY22. Earnings revisions and updating trading multiples have resulted in revisions to our 12m Target Price to A$38.80 (previously A$36.80). We are Neutral on WOW,” it concluded.

Based on Goldman’s estimates, Woolworths’ shares are changing hands at 30x FY 2021 earnings and offer a forward fully franked 2.5% dividend yield.

More reading

• Why Coles is a top ASX dividend share for a post-COVID world
• ASX 200 jumps 0.7%: Afterpay reaches 9.9 million customers, Woolworths strong sales growth
• Woolworths share price on watch following FY 2020 profit decline
• 5 things to watch on the ASX 200 on Thursday
• How to boost your share market gains

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Is the Woolworths share price in the buy zone following its FY 2020 results? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/34F2QTX

US share markets are trading at or near their record high levels. And while still down from its February highs, the S&P/ASX 200 Index (ASX: XJO) has rebounded 34% from its 23 March low.

With growth stocks leading the charge, some investors are beginning to fear their share prices are unsustainably expensive. While others believe the bull market has much further to run.

Making the bearish case

Andrew Clifford is the chief executive of Platinum Asset Management, a $25 billion global equities manager. While he has nothing against investing in growth shares, he believes most are now overpriced.

As quoted by the Australian Financial Review (AFR) Clifford says:

Everyone recognises this speculative element, but there’s huge comfort taken from people from coming back into the FAANGs and Microsoft. I like Microsoft as an example of a company, it’s very hard to see the flaw in it, but the valuations today are substantial…

I suspect very much that the extraordinary valuations we’re seeing in growth stocks are fundamentally a part of what is in every good bull market: there’s a great story, there’s too much money and our own human condition goes to work of over-extrapolating just how good these stories are.

While Clifford is forecasting a big share market pullback, he believes that could be some time off yet, and there could be significant share price upside left. “We may be weeks or months away from an end in this mania, it doesn’t mean that that doesn’t end 20 or 30 per cent higher.”

Short-sellers, take note.

Making the bullish case

Jim Paulsen is the chief investment strategist at Leuthold Group. Speaking to a Leuthold Group webinar yesterday, he announced, “I am bullish.”

Part of his optimism stems from what he called “divot repair”. What he means by that is with the US – along with Australia and most developed nations – mired in coronavirus-induced recession, there are tremendous opportunities ahead for share markets.

Which is not to say he forecasts markets will head higher in a straight line. Paulsen says, (as quoted by the AFR):

Expect corrections. We’re definitely going to get more than one of those and they will be scary when they occur. … (However) Stocks react not to levels, they react to change in activity and there’s huge possibilities to have positive change in economic activity if only because things are so bad right now.

As for continuing impacts from the coronavirus?

“I think we’re much better prepared even if COVID-19 continues well into next year,” Paulsen said.

Foolish takeaway

Governments across the developed world are pouring trillions of stimulus dollars into their economies to offset the drag from coronavirus mitigation measures. Atop that, interest rates are forecast to remain at record lows not just in 2020, but beyond.

Yesterday US Federal Reserve chair Jerome Powell even distanced the Fed from its 2% inflation annual target, saying that 2% would be effective over a period of time. Since US inflation has been below 2% for years, that means the Fed is now happy to see higher inflation without hiking rates.

And low rates along with record government stimulus means more money heading into the share market.

Not every company is going to shoot the lights out like ASX 200 darlings Afterpay Ltd (ASX: APT), whose share price is up 203% over the past 12 months, or Mesoblast limited‘s (ASX: MSB) share price gain of 252% over 12 months.

But some might. And I believe the majority will likely deliver significantly more share price returns than Australian investors will find in the cash or bond markets over the next year.

More reading

• Brokers name 3 ASX shares to buy right now
• ASX 200 rises 0.2%, Afterpay reports FY20 result
• Afterpay reckons this 1 number shows its ‘moat’
• Is the Afterpay share price heading to $200, or is this the ASX’s biggest bubble?
• What Prospa’s share price reaction and profit results mean for ASX banks

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Bulls versus bears – two experts face off on where share prices are going appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3gwLbjD

Coles Group Ltd (ASX: COL) has built itself a reputation as a solid ASX dividend share performer since its delisting from Wesfarmers Ltd (ASX: WES) almost two years ago.

Perhaps that’s why in 2020 so far, the Coles share price is up more than 22%, compared with the broader S&P/ASX 200 Index (ASX: XJO) which is down around 9%.

But Coles’ reputation for dividend income has been bolstered in recent weeks, and I think its star is on the rise compared to its arch-rival Woolworths Group Ltd (ASX: WOW).

Why Coles trumps Woolies as an ASX dividend share

Yesterday, Woolworths reported its full-year earnings for the 2020 financial year to the market. Within this report, Woolies told investors that net profits for the year were down 1.6% from FY19’s levels. That prompted Woolies to deliver a total of 94 cents per share in dividends for FY20, down from the $1.02 per share Woolworths paid out in FY19. An annual dividend of 94 cents per share gives Woolworths a trailing dividend yield of 2.35% on current prices.

In contrast, when Coles reported its earnings for FY20 to the market last week, it delivered a profit of $951 million, which was a 7.1% increase n FY19’s profit. That enabled Coles to announce a final dividend of 27.5 cents per share, which was a 14.6% increase on FY19’s final payout and brings Coles’ total dividend for FY20 to 57.5 cents per share. On current prices, that gives Coles a trailing dividend yield of 3.13%.

So we have one supermarket giant with falling profits in FY20 and a declining dividend. We have another with rising profits and a rising dividend. It doesn’t require too much nuance to deem Coles a better ASX dividend share than Woolworths today, in my view.

Is the Coles share price a buy today?

Although it might beat out Woolies as a dividend share, that doesn’t in itself mean the Coles share price is a buy right now. With a yield of 3.13% (or 4.47% grossed-up with Coles’ full franking), Coles is certainly attractive for dividend income in 2020. Most ASX  shares that income investors normally turn to are spending 2020 cutting their shareholder payouts. These include Westpac Banking Corp (ASX: WBC), Transurban Group (ASX: TCL) and Sydney Airport Holdings Pty Ltd (ASX: SYD).

Therefore, I think Coles is a useful share to hold in an income-focused portfolio going forward. I wouldn’t call the Coles share price cheap right now. But I understand the appeal of having a defensive, reliable income share like Coles in one’s portfolio all the same. Thus, I think Coles is a worthwhile buy for any investor who relies on dividend income today. But for those who don’t, I think there are better opportunities elsewhere.

More reading

• Is the Woolworths share price in the buy zone following its FY 2020 results?
• Buy Coles and this quality ASX dividend share for income
• Reinvest your Coles dividends in these top ASX shares
• ASX 200 jumps 0.7%: Afterpay reaches 9.9 million customers, Woolworths strong sales growth
• Woolworths share price on watch following FY 2020 profit decline

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET, Transurban Group, Wesfarmers Limited, and Woolworths Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Coles is a top ASX dividend share for a post-COVID world appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/31AGFN1

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Apple (NASDAQ: AAPL) and Tesla (NASDAQ: TSLA) have a lot in common. Both companies are innovators that have manufactured demand for their revolutionary products, and both have strong brand cachet and a loyal band of devoted followers. They also both come with high share prices, largely because of these things. 

The tech giants also have something else in common: Both announced stock splits this month that will substantially lower the cost of company shares. Apple’s 4-for-1 split should bring the price down from around the $500 a share mark to closer to $125. Tesla’s 5-for-1 split means you could pay somewhere around $420 per share instead of the $2,100 it’s currently trading at (depending on prices when the splits happen). 

There’s a strong argument to be made that these splits don’t really matter (I know, because I made it). But there are also two big reasons to believe they will actually be a boon to investors. Here’s why. 

1. Increased demand for shares could drive up the price

First things first — a stock split does not change the value of shares of Apple, Tesla, or any other company. Stock splits do not affect how much a share is worth, nor do they affect a company’s market capitalization. When a split occurs, there are simply more shares outstanding, each with a proportionally lower price tag. After all, splitting a $100 stock so you end up with five $20 shares is absolutely no different than taking a $100 bill and splitting it into five $20 bills. 

But stock splits do mean individual shares cost less to buy. Historically, this has been the driving force behind most company decisions to split their stocks. When a stock costs $125 instead of $500, more people can afford to buy a share. This can lead to increased demand, which in turn can drive the stock price up even though the value of the company hasn’t actually changed.

Theoretically, this shouldn’t be an issue anymore because a growing number of investors now have access to fractional shares. These are what they sound like — fractions of a share available to people who don’t have the money to buy full ones. However, while more brokers currently offer fractional shares, not all do. And some that do won’t permit you to place limit orders for them, which makes it harder to buy at your desired price.

A typical investor probably isn’t going to switch brokerages just to gain access to fractional shares, so a split can still make the stock more accessible. Plus, not everyone who is potentially interested in buying a share of Apple or Tesla is even aware of the ability to buy fractional shares. For casual investors who want to buy a few shares, a quick look at an expensive per-share price might deter them before they discover this as an option. That can be an especially big problem with companies like these that are household names. 

As fractional shares become more widely available and more familiar to investors, this benefit of a stock split will become less and less important. But, for now, the fact remains that there likely will be a surge in demand for these stocks when their price per share goes down after the split. 

2. Perceptions matter

When investors pick stocks, they should do their research to assess whether the share price is worth paying. After all, a stock with a high per-share price tag is a bargain if it’s got strong growth potential, while one trading for just a few dollars is overpriced if the company is in trouble and its price per share falls quickly. 

But most investors aren’t 100% rational, and far too many retail investors often judge whether a stock is “expensive” based on the price of a share. In fact, a look at investing service platform Robinhood’s most popular stocks shows that many of the platform’s investors (who are often younger and less experienced) are flocking either to well-known tech stocks or to stocks trading at $10 per share or less. A lot of these companies with sub-$10 share prices aren’t great ones, but inexperienced investors may look upon them as bargains solely because they don’t cost a lot to buy. 

For the many investors seeking out “cheap” offerings, a high share price may deter them from buying a stock trading for hundreds or thousands of dollars — even if they can buy fractional shares for just a few dollars. It just seems expensive, if they confuse price for value. 

And for the many “irrational” investors out there, owning a fractional share often just doesn’t seem as attractive as owning a full share — even though in reality there’s no difference and they’ll make the same potential gains either way. In other words, the fact that people could afford to buy only a 0.25 share of, say, Apple, may be enough to convince them not to buy in at all, whereas they’d be happy to pay $125 for one full share. 

Of course, no one wants to think of themselves as an irrational investor. But the fact is, a great many people’s subconscious biases do shape their financial decisions all the time — sometimes to their detriment. Companies know this and are aware that, by lowering their share price, they’ll look like a better option to investors, even if absolutely nothing has changed. 

So, do Apple’s and Tesla’s stock splits matter?

While I stand by my position that Apple’s and Tesla’s splits shouldn’t matter to investors, they very well might.

The fact that Apple’s and Tesla’s stock prices have both gone up since the announcements of their splits shows they still have an effect, at least in the short term. Of course, if fractional share trading catches on, investors in the future may not see quite the bump in share price that Apple and Tesla owners are currently enjoying. 

The Motley Fool owns shares of and recommends Apple and Tesla. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Tesla stock split: Should you buy now or wait?
• Is Apple’s market cap headed to $3 trillion? One analyst thinks so
• Apple shareholders are either correcting a mistake… or making one
• The 1 Warren Buffett quote that tells us how to invest right now
• Analyst says Tesla best-case scenario could see share price spike 70% to $3,500

Christy Bieber 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 Apple and Tesla. The Motley Fool Australia has recommended Apple. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 2 Advantages of Stock Splits for Apple and Tesla Investors appeared first on Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from Motley Fool Australia https://ift.tt/2EGPhIY

Australia’s top brokers have been busy adjusting their estimates and recommendations again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Afterpay Ltd (ASX: APT)

According to a note out of Ord Minnett, its analysts have retained their buy rating and lifted the price target on this payments company’s shares to $105.00. The broker was pleased with Afterpay’s full year results and particularly its better than expected gross losses. It also notes that the company is expanding into Europe and testing the waters in Asia. Though, acknowledges that these are unlikely to be making meaningful contributions to its revenue until FY 2022 I agree with Ord Minnett and would buy and hold Afterpay shares for the long term.

Appen Ltd (ASX: APX)

Analysts at UBS have retained their buy rating and increased the price target on this artificial intelligence services company’s shares to $44.00 following its half year results. According to the note, Appen delivered a result that was largely in line with its estimates. It also notes that the company has reaffirmed its guidance for FY 2020 despite COVID-19 headwinds. And while this implies a sizeable skew towards the second half, UBS appears confident it will achieve this. It also remains confident in its long term prospects. I think UBS is spot on and the recent Appen share price weakness is a buying opportunity.

Zip Co Ltd (ASX: Z1P)

A note out of Morgans reveals that its analysts have retained their add rating and lifted the price target on this buy now pay later provider’s shares to $10.28. According to the note, Morgans was pleased with Zip’s stronger than expected financial performance in FY 2020 and appears confident its strong growth can continue. Especially given the impending QuadPay acquisition and the launch of Zip Business with eBay Australia. The broker expects the latter’s product mix to have positive impacts on its revenue yield. As a result, it has upgraded its earnings estimates for the near term. I would have to agree with Morgans as well. I think Zip shares could be great buy and hold options.

More reading

• The Appen share price is down 9% today. Here’s why
• ASX shares are on track for new record highs. Here’s why…
• ASX 200 down 0.9%: Costa impresses, Harvey Norman profits grow, Appen downgraded
• Why a2 Milk, Appen, Huon, & Newcrest shares are tumbling lower
• 2 top ASX tech shares to buy and hold beyond 2025

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO and Appen Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Brokers name 3 ASX shares to buy right now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2EDTUUb

Mining giant Rio Tinto Limited (ASX: RIO) has been panned for its inadequate response to its destruction of Juukan Gorge in Western Australia.

The $36 billion company legally blew up the site in May despite protests from archaeologists and Indigenous groups due to its cultural and historical significance.

Rio Tinto earlier this week concluded in an internal review that the action was a mistake, but refused to blame any single person or decision.

“We will implement important new measures and governance to ensure we do not repeat what happened at Juukan Gorge and we will continue to rebuild our trust with the Puutu Kunti Kurrama and Pinikura people,” said Rio Chair, Simon Thompson.

But several major investors have now criticised this response.

HESTA, a $52 billion superannuation fund, was so incensed that it drew up a “statement on working with Indigenous communities” and sent it to 14 Australian mining companies.

HESTA Chief Executive, Debby Blakey, said there was much investor disappointment at the Juukan Gorge saga.

“Not only was priceless heritage destroyed and the costs borne by shareholders as a result, but we had believed this risk to be well managed in our portfolio,” she said. “This has prompted us to renew our focus on ensuring fair and sustainable outcomes for Indigenous communities and companies,” she added.

The other 13 resources and energy companies that received HESTA’s statement were:

• BHP Group Ltd (ASX: BHP)
• Fortescue Metals Group Limited (ASX: FMG)
• Newcrest Mining Limited (ASX: NCM)
• Santos Ltd (ASX: STO)
• Saracen Mineral Holdings Limited (ASX: SAR)
• Woodside Petroleum Limited (ASX: WPL)
• Origin Energy Ltd (ASX: ORG)
• Alumina Limited (ASX: AWC)
• Northern Star Resources Ltd (ASX: NST)
• South32 Ltd (ASX: S32)
• Evolution Mining Ltd (ASX: EVN)
• Mineral Resources Limited (ASX: MIN)
• Cooper Energy Ltd (ASX: COE)

Price of destruction is $7 million 

Priceless as the site might have been, Rio Tinto did shave 4 million British pounds ($7.2 million) off the bonuses of three top executives.

This ‘valuation’ of the site’s destruction has angered some investors.

“Remuneration appears to be the only sanction applied to executives. This raises the question – does the company feel that £4 million is the right price for the destruction of cultural heritage?” said Australian Council of Superannuation Investors Chief Executive, Louise Davidson. “The company should explain why greater accountability was not applied in light of this disaster, ” she added.

Davidson, whose organisation represents investors that own an average of 10% of every S&P/ASX 200 Index (ASX: XJO) company, said a third party should have conducted the review.

“The destruction of the caves resulted in a devastating cultural loss… It is of significant concern to investors because it puts at risk Rio Tinto’s relationship with key stakeholders and its social licence to operate,” she said. “An independent and transparent review would have given investors greater confidence that accountability applied was appropriate and proportionate,” Davidson added. 

Blakey said Rio Tinto’s behaviour was a “wake-up call for all investors”.

“It has caused us to review how we are assessing company performance,” she commented.

“Investors expect companies to think strategically about future opportunities and risks that may impact their businesses. Likewise, they should also be thinking about how changing societal expectations may impact their decisions around heritage and community engagement,” she went on to say.

More reading

• ‘Ethical’ share investors sell too quickly after bad news
• Why the IGO share price is outperforming the ASX 200 today
• What are dividend shares and how do you find them?
• ASX 200 Weekly Wrap: Blue chips, earnings drag ASX lower
• After the stellar COVID-19 rebound, can ASX share prices keep rising?

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Rio Tinto roasted for limp response after blowing up archaeological site appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3hCFphM

The Buddy Technologies Ltd (ASX: BUD) share price is flying more than 33% higher today. The bullish price action follows an announcement that the company released earlier.

What did Buddy announce?

Earlier today Buddy Technologies announced the launch of a new antibacterial light product. The company informed the market that its world-first smart light, LIFX Clean, has successfully passed efficacy and safety testing.

LIFX Clean is a fully functional white and colour lighting that uses germicidal antibacterial light to disinfect surfaces and surrounding air. The company noted that LIFX Clean is an extension of its multi-patented LIFX A19/A60 1200 lumen smart light platform. According to Buddy, this LIFX Clean is designed to emit visible light at a germicidal wavelength of 405 nano metres.

Buddy said the LIFX Clean product had passed efficacy testing conducted by the Department of Chemisty at Australia’s Swinburne University of Technology. In addition, the company noted that LIFX Clean was in the queue to be tested for efficacy against COVID-19.

Buddy’s management highlighted the innovative nature in developing LIFX Clean and said it expected the product to meet enormous demand. The company said LIFX Clean was developed and ready for market launch as an antibacterial product in Australia, New Zealand, Europe and the EU. However, the company noted that the US market was subject to different regulatory requirements.

What does Buddy Technologies do?

Buddy Technologies is an Australian-based company that operates in both commercial and consumer sectors. The company’s commercial business focuses on helping customers leverage digital technologies for energy monitoring and reporting.

Buddy’s consumer business trades under the LIFX brand and is a provider of smart lighting solutions. The company has a wide portfolio of Wi-Fi enabled lights that are used in nearly 1 million homes and sold in more than 100 countries.

Should you invest?

At the time of writing, the Buddy share price is trading more than 33% higher at 9.2 cents for the day. The company’s shares have been sold down slightly after hitting an intra-day high of 9.3 cents earlier. Overall, the Buddy share price has performed strongly for 2020 and is up more than 158% for the year.

More reading

• Buddy share price leaps 18% following letter to shareholders
• Buddy share price soars 19% on record orders
• Why the Buddy Technologies share price more than doubled in a week

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post The Buddy share price is up 33% higher today. Here’s why appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2EF0iKH