Tag: The Motley Fool Australia

The REA Group Ltd (ASX: REA) share price is avoiding the market selloff on Thursday.

In afternoon trade, the ASX 200 stock is up over 1% to $187.09.

This compares favourably to a 0.8% decline by the benchmark ASX 200 index today.

Why is this ASX 200 stock avoiding the market selloff?

Investors have been fighting to get hold of the property listings company’s shares on Thursday after it release its third quarter update.

For the three months ended 31 March, the ASX 200 stock reported a 24% increase in revenue to $334 million and a 30% lift in operating EBITDA to $177 million.

This is a quicker rate of growth than the company delivered in the first half. As a result, financial year to date, revenue is now up 20% to $1,060 million and operating EBITDA is up 24% to $616 million.

Commenting on the quarter, REA Group’s CEO, Owen Wilson, said:

The Australian property market maintained its strong momentum during the quarter with seller confidence and healthy buyer demand driving activity. Australian consumers’ preference for our premium products and our focus on customer value delivered an exceptional result in this strong market.

The ASX 200 stock advised that national listings were up 6% year on year in the third quarter thanks largely to the key Sydney and Melbourne markets. Listings in these markets were up 20% and 18%, respectively, compared to the prior corresponding period.

Market leadership continues

REA Group continues to be the market leader by some distance. It notes that its network of brands holds three of the top four rankings across all Australian property websites.

In addition, 11.2 million people visited realestate.com.au each month on average during the quarter, with 52% exclusively using realestate.com.au.

There were also 130 million average realestate.com.au monthly visits, which is 4.1 times more visits than its nearest competitor each month on average.

Outlook

The ASX 200 stock’s CEO remains positive on the future and has reiterated its target of positive jaws (revenue growing quicker than costs) in FY 2024. Wilson concludes:

REA is well positioned for a strong finish to the financial year. The property market should continue to benefit from the belief that interest rates have reached, or are near the peak, providing buyers and sellers with confidence. We’re excited by our development pipeline and look forward to delivering new products and experiences that will continue to drive growth and further enhance the value of our audience.

Broker reaction

Goldman Sachs was impressed with the update, noting that it came in ahead of expectations. The broker said:

REA delivered a strong 3Q24 update, with Sales/EBITDA +24%/+24% vs. pcp and +3%/+5% vs. GSe.

The post Why is this ASX 200 stock avoiding the market selloff and pushing higher? appeared first on The Motley Fool Australia.

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More reading

• Why 4DMedical, Orica, PSC Insurance, and REA shares are rising today
• REA shares vs. Domain: Here’s Goldman Sachs’ verdict
• How to invest in the future with ASX AI shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and REA Group. The Motley Fool Australia has recommended REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 0.8% to 7,741.2 points.

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

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is down almost 22% to $1.49. Investors have been hitting the sell button today after the baby products retailer released a trading update. That update revealed that the cost of living crisis has been weighing on its performance. So much so, Baby Bunting expects FY 2024 pro forma net profit after tax to be in the range of just $2 million to $4 million. This will be down from FY 2023’s net profit after tax of $14.5 million, which itself was down 51% on FY 2022’s numbers.

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is down almost 4% to $57.75. This has been driven by the release of a trading update from the retailer. JB Hi-Fi’s sales were down across its Australia and The Good Guys businesses during the third quarter. The company advised that it is currently experiencing a “challenging and competitive retail market.”

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down 11% to $11.26. This is despite the online furniture retailer revealing strong sales growth so far during the second half. The company’s sales were up 30% through to 5 May compared to the same period last year. Management has also reiterated its full year EBITDA margin guidance range of 1% to 3%. CEO Mark Coulter said: “We reiterate our EBITDA guidance of 1-3%, targeting the mid-point of the range as we continue to invest in growing our market share and delivering on our key growth pillars. We look forward to updating the market further at the full year result in August.”

Westpac Banking Corp (ASX: WBC)

The Westpac share price is down over 5% to $26.42. There are a couple of reasons for this decline. One is weakness in the banking sector following the release of an update from a big four rival. The other is Westpac’s shares going ex-dividend this morning for its interim and special dividends. Earlier this week, the bank released its half year results and declared a fully franked interim dividend of 75 cents per share (up 7.1%) and a special fully franked 15 cents per share dividend. These dividends will be paid to eligible shareholders on 25 June.

The post Why Baby Bunting, JB Hi-Fi, Temple & Webster, and Westpac shares are falling today appeared first on The Motley Fool Australia.

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More reading

• Why are Westpac shares slumping 5% on Thursday?
• This ASX All Ords stock is crashing 20% on a disappointing update
• 2 ASX 300 retail shares tumbling lower on key updates today
• 5 things to watch on the ASX 200 on Thursday
• Want the massive Westpac dividend? Here’s why you need to hurry

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Jb Hi-Fi and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) has run out of steam and is tumbling into the red on Thursday. In afternoon trade, the benchmark index is down 0.9% to 7,732.1 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is up 2% to 57 cents. This follows news that the medical technology company has been notified that it may utilise two existing Category III CPT codes for the reimbursement of CT LVAS technology in the United States. From today, CT LVAS scans conducted in a U.S. hospital outpatient facility for Medicare beneficiaries may be billed to Centers for Medicare & Medicaid Services (CMS) with a reimbursement of US$650.50. CEO and Founder Andreas Fouras said: “I am very excited by this progress in the commercialisation of our technology, and the positive impact this CPT code and associated reimbursement will have upon doctors and their patients.”

Orica Ltd (ASX: ORI)

The Orica share price is up over 1% to $18.50. This follows the release of the commercial explosives company’s half year results. Orica reported a statutory net profit after tax of $337.5 million for the six months. This is almost triple the $122.6 million recorded in the prior corresponding period. Though, it does include $158.4 million of profit from significant items after tax. Management advised that its “core blasting business continued to strengthen this half, supported by strong customer demand as well as increased earnings from high margin premium products and technology.”

PSC Insurance Group Ltd (ASX: PSI)

The PSC Insurance share price is up 5% to $6.02. This follows news that the diversified insurance services provider has accepted a takeover offer. According to the release, PSC Insurance has entered into a binding scheme implementation deed with the Ardonagh Group. This will see the latter acquire all of the issued ordinary shares in PSC Insurance for $6.19 in cash per share. Its chairman said: “We believe this transaction maximises value for PSC shareholders while also providing an excellent platform for growth for PSC employees and clients.”

REA Group Ltd (ASX: REA)

The REA Group share price is up over 1% to $187.09. Investors have been buying the property listings company’s shares following the release of its third quarter update. The realestate.com.au operator reported a 24% increase in revenue to $334 million and a 30% lift in operating EBITDA to $177 million. These growth rates are stronger than what was achieved in the first half of FY 2024. CEO Owen Wilson said: “REA is well positioned for a strong finish to the financial year. The property market should continue to benefit from the belief that interest rates have reached, or are near the peak, providing buyers and sellers with confidence.”

The post Why 4DMedical, Orica, PSC Insurance, and REA shares are rising today appeared first on The Motley Fool Australia.

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More reading

• Under-the-radar ASX All Ords stock soars on confirmed takeover news
• REA shares vs. Domain: Here’s Goldman Sachs’ verdict
• 7 ASX All Ords shares smashing new 52-week highs on Tuesday
• How to invest in the future with ASX AI shares

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PSC Insurance Group and REA Group. The Motley Fool Australia has recommended PSC Insurance Group and REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares are in the red today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $119.74. In early afternoon trade on Thursday, shares are swapping hands for $117.59, down 1.8%.

For some context, the ASX 200 is down 0.9% at this same time.

This comes following the release of CBA’s quarterly update for the three months ending 31 March.

What did the big four bank report?

Among the key financial metrics for the quarter, the bank reported a 1% year on year decrease in operating income. That dip came along with a 2% increase in operating expenses.

Combined, this saw CommBank’s unaudited statutory net profit after tax fall 5% from the prior corresponding quarter to $2.4 billion, which could explain why CBA shares are underperforming today.

From a risk perspective, the bank remains well capitalised with a Common Equity Tier 1 (CET1) ratio of 11.9%. That’s well above the minimal 10.25% ratio required by the Australian Prudential Regulation Authority (APRA).

Why are CBA shares under pressure today?

CBA shares are sliding today despite what Citi called a “positive result” for the quarter, citing the improvement of net interest margins (NIM).

According to Citi analyst Brendan Sproules (quoted by The Australian), “The stabilisation and likely modest improvement in the NIM reflects, in our view, the stabilisation in retail banking, augmented by better channel mix in mortgages.”

Sproules added, “We expect the market to receive the result well from a fundamental perspective, although the valuation still remains very challenging from our perspective.”

Indeed, it’s the often-cited overvaluation of CBA shares relative to its peers that has a number of brokers forecasting price targets well below current levels.

With the bank’s $2.4 billion quarterly profit modestly exceeding consensus expectations, Evans & Partners expects we may see analysts boost their profit forecasts.

“We expect consensus core profit upgrades of ~2 per cent for FY25F and FY26F. Asset quality is deteriorating in similar fashion to that generally seen in other major bank results over the last week,” the broker said (quoted by The Australian Financial Review).

Despite that expectation, Evans & Partners has a ‘sell’ rating on CBA shares with an $80 price target.

UBS also has a ‘sell’ rating on the biggest Australian bank, though with a higher price target of $105 a share.

According to UBS (quoted by the AFR):

Despite a visible deterioration in asset quality metrics, we think the credit impairment charges today suggest some consensus upgrades are likely for 2H 24 cash earnings…

CBA continues to lean on its proprietary distribution channels to defend and drive volume growth in mortgages – a strategy which has so far seen CBA grow at 0.7x system. Defending back-book profitability remains a key imperative for management.

Despite today’s retrace, CBA shares remain up a healthy 21% since this time last year.

The post Why are CBA shares sliding following the bank’s quarterly update? appeared first on The Motley Fool Australia.

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More reading

• CBA share price on watch following $2.4b third quarter profit
• 5 things to watch on the ASX 200 on Thursday
• Are CBA shares a buy or a sell ahead of Thursday’s update?
• After hitting all-time highs in March, why did the CBA share price tumble 5% in April?
• Own CBA shares? Here’s what to look out for with the bank’s Q3 update

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

An under-the-radar ASX All Ords stock is doing more than its share of the heavy lifting today.

On Thursday, the All Ordinaries Index (ASX: XAO) was down 0.8% in early afternoon trade.

But shares in ASX All Ords diversified insurance services company PSC Insurance Group Ltd (ASX: PSI) are heading the other way, up 4.9% to $6.02 apiece.

That sees the PSC Insurance share price up an impressive 36% over the past six months.

Investors are snapping up the stock after long-simmering takeover rumours were confirmed.

ASX All Ords insurer soars on takeover deal

After the market closed yesterday, PSC Insurance reported that it had entered into a binding Scheme Implementation Deed with The Ardonagh Group.

Under the scheme, Ardonagh, one of the world’s leading independent insurance broking groups, will acquire all of PSC’s shares for $6.19 apiece.

That’s still 2.8% above where the ASX All Ords stock is trading at the time of writing.

And it represents an implied equity value of $2.26 billion.

The PSC board unanimously recommended shareholders of the ASX All Ords company vote in favour of the scheme.

The board said it believed merging with Ardonagh was a “complementary fit” for its businesses, calling the proposed acquisition “a transformational step in contributing to the creation of an impactful global broking group”.

Founded in 2017, Ardonagh is now a top 20 global broker with more than 10,000 employees across 30 countries. The company reported 2023 revenue of £1.6 billion (AU$3.0 billion).

What did management say?

Commenting on the proposed takeover sending the ASX All Ords stock sharply higher today, Paul Dwyer, non-executive chairman of PSC Insurance, said:

Today marks an important day in PSC’s history. This transaction recognises the quality and strength of PSC’s people and business that has developed over the last 18 years.

We believe this transaction maximises value for PSC shareholders while also providing an excellent platform for growth for PSC employees and clients.

David Ross, CEO of The Ardonagh Group, added:

The acquisition, which has secured the unanimous recommendation of PSC’s board, is a significant milestone in the global growth of Ardonagh and underlines our strong commitment to the markets we serve.

Ardonagh has been assembled as a bastion of independence and scale, aligning high calibre businesses and management teams around quality advice for clients and entrepreneurial connectivity within the group.

PSC’s journey and values align with our own and its portfolio of highly complementary businesses provides an abundance of opportunity to strengthen our positions in Australia and wholesale and specialty markets.

The takeover deal lifting the ASX All Ords insurer today still requires shareholder and court approval before moving forward.

Stay tuned.

The post Under-the-radar ASX All Ords stock soars on confirmed takeover news appeared first on The Motley Fool Australia.

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More reading

• Guess which little ASX mining stock is rocketing 177% on big government news
• Super Retail share price falls 5% on difficult trading update
• This ASX All Ords stock is crashing 20% on a disappointing update
• Bell Potter says this ASX biotech stock could rocket 80%
• 2 ASX 300 retail shares tumbling lower on key updates today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PSC Insurance Group. The Motley Fool Australia has recommended PSC Insurance Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A little-known ASX mining stock is setting the bar high today.

Very high.

The All Ordinaries Index (ASX: XAO) is down 0.5% today. But at the time of writing shares in this ASX mining stock are surging an eye-watering 177.2% to 9.7 cents apiece following major federal government news.

Any guesses?

If you said Alliance Nickel Ltd (ASX: AXN), give yourself a virtual gold star.

Here’s why investors are sending the ASX mining stock rocketing on Thursday.

ASX mining stock explodes on government project award

With nickel prices tumbling in 2023 amid growing cheaper and dirtier nickel supplies out of Indonesia and China, a lot of Aussie nickel miners have come under pressure.

Indeed, as of market open this morning, the Alliance Nickel share price was down 60% over the past 12 months.

But the ASX mining stock is shaking off those losses and a lot more today after reporting that the Australian federal government has granted its NiWest Nickel Cobalt Project, Major Project Status.

Located in Western Australia, NiWest is reported to contain one of Australia’s highest-grade undeveloped nickel laterite mineral resources. The ASX mining stock is targeting production of 90,000 tonnes nickel sulphate and 7,000 tonnes cobalt sulphate per year from the project.

NiWest marks the first Australian nickel project granted Major Project Status since nickel was added to the critical minerals list in February.

The status is awarded to Australian companies and projects the government believes are strategically significant. Among the benefits, these projects can expect to receive additional support with federal and state regulatory approvals for a three-year period.

Alliance Nickel said that it was granted the status for NiWest in recognition of the potential contribution to Australia’s economic growth and critical minerals industry. It said this recognition will help support the rapid advancement of the project. And it noted that this comes at an opportune time “as global demand for IRA compliant battery-grade nickel and cobalt grows”.

Commenting on the government award sending the ASX mining stock flying higher today, Alliance Nickel CEO Paul Kopejtka said:

We are delighted NiWest has been recognised by the Australian Government as a project of national significance. NiWest is the first nickel project to be awarded MPS since nickel was added to the Critical Minerals List earlier this year.

The NiWest Project is now recognised as significant from an industry and economic perspective, and we look forward to working closely with relevant Ministers, Government and industry bodies as we move towards construction.

The post Guess which little ASX mining stock is rocketing 177% on big government news appeared first on The Motley Fool Australia.

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More reading

• Super Retail share price falls 5% on difficult trading update
• This ASX All Ords stock is crashing 20% on a disappointing update
• Bell Potter says this ASX biotech stock could rocket 80%
• 2 ASX 300 retail shares tumbling lower on key updates today
• Are Qantas shares too expensive at over $6?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

The Super Retail Group Ltd (ASX: SUL) share price is down 5% after the retailer announced a trading update for the second half of FY24.

Super Retail was presenting at the Macquarie Australia conference today, which included its sales update and details of the group’s 2024 enterprise agreement.

Sales update

The business reported a few different sales statistics.

For the second half of FY24, like-for-like (LFL) sales growth for weeks 27 to 43 showed:

• Supercheap Auto LFL sales rose 1%
• Rebel LFL sales fell 2%
• BCF LFL sales declined 5%
• Macpac LFL sales increased 3%
• Overall group LFL sales dropped 1%

Super Retail also reported total sales growth for weeks 1 to 43 (FY24 year to date):

• Supercheap Auto sales increased 3%
• Rebels sales fell 2%
• BCF sales grew 5%
• Macpac sales went up 2%
• Total group sales rose 2%

The retailer’s total group sales across March and April were approximately 1% higher than the prior corresponding period.

Supercheap Auto benefited from strong demand in auto maintenance categories, including lubricants, power and car detailing.

Rebel footwear sales improved thanks to the introduction of new and expanded brand ranges (including Hoka and On), though apparel demand remains “subdued”.

BCF’s LFL sales reflected “softer trading in the key Easter period and the cycling of clearance activity” in the prior corresponding period.

Macpac’s sales growth was driven by a “strong performance” in New Zealand as inbound travel boosted sales in key tourist destination stores.

It also revealed the group gross profit margin is “in line” with the prior corresponding period. The business has opened 20 stores and closed four in FY24 so far. It expects to open another seven stores before the end of FY24.

2024 enterprise agreement

Super Retail said its 2024 retail and CCC Enterprise Agreement (EA) has been endorsed by its Australian team members and approved by the Fair Work Commission (FWC). The EA covers a three-year term, starting from 14 July 2024.

The new EA will see all wages-paid team members across the group’s Australian retail stores receive higher penalty rates and an increase in base pay rates to the tune of a 5.25% increase in FY25, 3.25% in FY26 and 3.25% in FY27.

The EA applies to the store wages component of the group’s employee expenses (not support office employee expenses) and excludes retail management. Prior to the EA, on 2 July 2023, the group increased retail team member base pay rates by 3%.

Eligible team members will also receive a one-off payment equivalent to 2.75% of their annual base pay, with this to be paid before the end of FY24.

Management comments

Super Retail managing director and CEO Mr Anthony Heraghty said:

Given current challenges around inflation and interest rates, our customers are managing their spending carefully and becoming increasingly value focused.

While store foot traffic and transaction volumes continue to grow, ongoing cost of living pressure is impacting number of items per sale.

Super Retail share price snapshot

Since the start of 2024, the Super Retail share price has dropped 18%.

The post Super Retail share price falls 5% on difficult trading update appeared first on The Motley Fool Australia.

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More reading

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• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Baby Bunting Group Ltd (ASX: BBN) share price is having a very tough time on Thursday.

In morning trade, the ASX All Ords stock was down as much as 20% at one stage.

The baby products retailer’s shares have recovered a touch since then but remain down 17% at the time of writing.

Why is this ASX All Ords stock crashing today?

Investors have been flooding to the exits today after the company released a disappointing trading update.

According to the release, the trend of improving comparable store sales that was seen in the first half has softened over the last two months. Management believes this reflects the ongoing cost-of-living pressures being experienced by new parents with young families.

Baby Bunting advised that through March and April, investments were made in price which fell short of expectations in terms of sales and performance.

This ultimately has led to its gross margin year-to-date easing to 36.9%. This is down from 37.2% during the first half.

On the bottom line, the company’s FY 2024 pro forma net profit after tax is now expected to be in the range of just $2 million to $4 million. This includes a loss of approximately $1.2 million associated with the extended closure and remediation of the Cairns store.

This will be a sizeable decline on FY 2023’s net profit after tax of $14.5 million, which itself was down 51% on FY 2022’s numbers.

Commenting on the underperformance, the ASX All Ords stock’s CEO, Mark Teperson, said:

Baby Bunting remains focused on providing great value to customers. We’re acutely aware that our customers are more sensitive than many other groups to the widespread cost-of-living pressures and are managing their spending carefully.

While we have seen an improving trend in transactions in 2H compared to 1H, this was heavily impacted by a declining average transaction value driven by consumers trading down and ongoing competition in nursery essentials impacting market price.

What’s next?

The company advised that the second half remains a transition period as it builds toward FY 2025.

All stores are now enabled for online fulfilment, which has delivered lower freight costs (due to fewer split orders), better utilisation of inventory, and lower pick costs through April.

In addition, its revised go-to-market promotional strategy is showing positive trends in active customers and transaction volumes.

Teperson concludes:

Our focus on customer experience and simplification of the business continues. We continue to look for opportunities to align the cost profile with the Group’s sales trajectory and future growth plans.

In late June, the ASX All Ords stock plans to provide a further update on FY 2024 trading, its initiatives into FY 2025, and its strategy for the year ahead and beyond.

The post This ASX All Ords stock is crashing 20% on a disappointing update appeared first on The Motley Fool Australia.

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More reading

• Brokers say these ASX dividend stocks are buys
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

Paradigm Biopharmaceuticals Ltd (ASX: PAR) shares could have huge upside potential.

That’s the view of analysts at Bell Potter, which believe the ASX biotech stock could be a great option for investors with a high tolerance for risk.

What is Paradigm Biopharmaceuticals?

Paradigm Biopharmaceuticals is a biotechnology company focused on repurposing Pentosan Polysulfate Sodium (PPS) for the treatment of osteoarthritis (OA) in the knee.

Bell Potter believes that the global market for a safe, effective treatment that provides superior patient outcomes compared to the standard of care is a “multiple blockbuster.”

In fact, it has suggested that market estimates of US$10 billion in annual revenues are likely conservative.

The good news is that the company’s recently completed phase II study produced some highly encouraging results, which are worthy of further clinical trials.

What is the broker saying about this ASX biotech stock?

Bell Potter notes that the coming weeks will be pivotal for this ASX biotech stock. This is because it is expecting to receive feedback from the US FDA in relation to its pathway for its treatment. It said:

PAR has a major short term catalyst within weeks being FDA feedback from its recent meeting to discuss the pathway for iPPS. A key discussion point was the design of the proposed phase 3 and confirmatory study for iPPS in osteoarthritis (OA) including the minimal effective dose (2mg twice weekly for 6 weeks). Recent studies in lower doses proved ineffective in the management of pain, hence there is no alternative to this optimal dose. Other than efficacy, the key considerations are toxicity and safety.

The data from several hundred patients treated in various clinical studies, the Special Access Scheme in Australia and non-clinical studies has shown iPPS at the optimal dose to be exceptionally safe with no serious adverse events. Accordingly, we are confident the FDA will approve the minimal effective dose and the proposed trial design.

In light of the above, this morning the broker has reaffirmed its speculative buy rating on the company’s shares with a 47 cents price target. Based on its current share price, this implies over 80% upside for investors over the next 12 months.

Though, it is worth remembering that Bell Potter’s speculative rating means this is a high risk play. So, investors with a low or normal risk tolerance may want to stay well clear of the ASX biotech stock and focus on more appropriate investment options.

The post Bell Potter says this ASX biotech stock could rocket 80% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Scott Phillips.

Two leading S&P/ASX 300 Index (ASX: XKO) retail shares released some key updates this morning.

Namely consumer electronic goods retailer JB Hi-Fi Ltd (ASX: JBH) and online furniture and homewares retailer Temple & Webster Group Ltd (ASX: TPW).

Here’s what they announced.

ASX 300 retail share slides on results

The Temple & Webster share price is down 3.0% to $12.24 after the ASX 300 retail share released a trading update ahead of its presentation at the Macquarie Conference.

Still, shares remain up a whopping 93% over the past six months.

Shares are sliding despite Temple & Webster reporting that the first half-year sales were strong, with sales from 1 January to 5 May up 30% compared to the prior corresponding period. The company said sales growth is being driven by both repeat and first-time customers.

And Temple & Webster is harnessing artificial intelligence to drive growth and improve customer experience.

“Our suite of internal AI solutions are delivering, in aggregate, conversion rate increases of over 10% and are now handling ~40% of all customer interactions,” the company stated.

The ASX 300 retail share also reaffirmed its full-year earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance range.

“We reiterate our EBITDA guidance of 1-3%, targeting the mid-point of the range as we continue to invest in growing our market share and delivering on our key growth pillars,” CEO, Mark Coulter, said.

“While the overall furniture and homewares market is down 4% HTD [1 January to 5 May] due to cost-of-living pressures, our strong growth highlights the significant market share gains we are making,” Coulter added.

As for the balance sheet, the ASX 300 retail share is holding more than $100 million in cash with no debt.

Temple & Webster reports its full-year results in August.

JB Hi-Fi share price dives on slowing growth

The JB Hi-Fi share price is also under selling pressure this morning, down 5.5% to $56.65 after the electronics retailer released a sales update for the period from 1 January to 31 March (Q3 FY 2024).

The JB Hi-Fi share price remains up 22% over the past six months.

The ASX 300 retail share reported a 0.3% year on year decline in same-store sales growth for its JB Hi-Fi Australia business. The JB Hi-Fi New Zealand business, on the other hand, enjoyed a 2.9% increase. Comparable sales growth at The Good Guys dipped 0.8% from the prior corresponding period.

For the first three quarters of FY 2024, JB Hi-Fi sales growth in both Australia and New Zealand was flat. Sales growth at The Good Guy sales declined by 7.3%.

Commenting on the results pressuring the ASX 300 retail share today, CEO Terry Smart said, “We are pleased with our Q3 FY24 sales results. Our trusted value-based offerings and high levels of customer service continue to resonate with our customers.”

The post 2 ASX 300 retail shares tumbling lower on key updates today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Jb Hi-Fi and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.