Although the market has struggled a touch this week, it hasn't stopped a number of popular shares from racing to new highs.
Two that have done this are listed below. Is it too late to buy them?
The MNF Group Ltd (ASX: MNF) share price reached an all-time high of $6.95 on Friday, bringing its 12-month return to over 48%. Although this has left its shares trading at a lofty 38x trailing earnings, I think the online voice communications provider is capable of growing its earnings at a strong enough rate to justify this premium. In fact, at its November annual general meeting management forecast profit growth of 24% for the current financial year.
This level of growth appears to have impressed analysts at Morgan Stanley. According to a note out of the investment bank this week, the broker placed a $7.70 price target on its shares. This implies further upside of over 16% for its shares over the next 12 months. Morgan Stanley is of the opinion that this strong profit growth can continue until at least 2020.
The Rio Tinto Limited (ASX: RIO) share price climbed to a nine-year high of $81.12 today. This rise has been driven largely by improving copper and iron ore prices thanks to bullish global economic growth forecasts. Overnight the 62% fines iron ore price rose to US$79.08 per tonne, its highest level in almost five months.
Despite the mining giant's shares climbing almost 30% over the last 12 months, I still see a lot of value in them. Perhaps not as much value as I see in fellow iron ore producer Fortescue Metals Group Limited (ASX: FMG), but enough to warrant an investment today. Especially considering its shares provide a trailing fully franked 3.7% dividend.
