Here are three fresh ratings from the team out of Morgans.

Brambles Ltd (ASX: BXB)

Brambles is the world's largest supplier of reusable wooden pallets and crates used for storing and transporting goods. 

According to Morgans, the company's 1H26 earnings were better than expected, driven by supply chain and productivity improvements. 

The broker also said management has adjusted FY26 revenue growth guidance to between 3-4% (vs 3-5% previously) with underlying EBIT growth guidance maintained at between 8-11%. 

Free cash flow (before dividends) is now expected to be between US$950-$1100m (vs between US$850-950m previously) due mainly to lower pallet purchases. 

Based on this guidance, Morgans adjusted FY26/27/28F underlying EBIT by +2%/+1%/+0%. 

Our target price rises to $27.00 (from $25.70) and we move our rating to ACCUMULATE (from HOLD). Following another solid result, we believe BXB is well positioned to deliver earnings growth through continued conversion of white-wood pallets to pooling and further margin improvement driven by ongoing operational efficiencies, including enhanced use of its digital and data capabilities.

From yesterday's closing price, this target indicates an upside of roughly 10%. 

PWR Holdings Ltd (ASX: PWH)

PWR Holdings is a designer, manufacturer, and supplier of cooling solutions for motorsports and the performance automotive industry.

According to Morgans, the 1H26 result was above expectations, driven by strong growth in Motorsports (new Formula 1 regulations) and Aerospace & Defence (delivery of most of a US government contract).

Our target price increases to $11.15 (from $8.50) due to a roll-forward of our model to FY27 forecasts. We continue to view PWH as a high-quality business, supported by a strong balance sheet, an experienced management team, and access to large addressable markets that offer significant growth potential. With the disruption from relocating to the new Australian manufacturing facility now behind it, we believe PWH is well positioned to embark on its next phase of growth.

Morgans maintained its accumulate rating on these ASX shares. 

From yesterday's closing price of $9.75, there is a potential upside of 14.36%. 

MoneyMe Ltd (ASX: MME)

MoneyMe is a digital consumer credit business. The company touts its technology and AI as offering financial solutions targeted at younger people.

MME's 1H26 was broadly per expectations, achieving gross revenue of ~A$117m, on a gross loan book of ~A$1.75bn. Momentum seen in originations growth (+18% to A$536m) continues to augur well for 2H26, and we expect MME to maintain a balance between profitability and growth as it seeks to benefit from scale. 

Our price target remains unchanged at A$0.21 and we maintain our Speculative Buy recommendation.

From yesterday's closing price of $0.115, Morgans sees an upside potential of 82.6% for these ASX shares. 

The post 3 ASX shares that look cheap according to Morgans appeared first on The Motley Fool Australia.

They're each gaining more than 7% on the back of strong first-half earnings. Let's take a look at what's got the market bidding them sky-high today.

2 ASX All Ords stocks outperforming on earnings releases

Stock in All Ords neuroscience technology company CogState Limited (ASX: CGS) is roaring 12% higher this afternoon to trade at $1.58 following the release of the company's first-half earnings.

The company's latest results were impacted by revenue delays. It posted US$19.5 million of revenue – down 15.6% on that of the prior comparable period (pcp).

That's expected to improve in the second half. Though, its full-year revenue is still forecast to come in 6% to 9% lower than that of financial year 2022 amid slower-than-expected trial enrolments.

Beyond its earnings, CogState also announced a $13 million on-market share buyback to be conducted within the next 12 months.

It's also worth mentioning the CogState share price's recent tumbles. It's dropped 49% over the three sessions prior to today's after a guidance update was released on Thursday.

Joining the All Ords stock in the green is peer MoneyMe Ltd (ASX: MME). Shares in the digital consumer credit business are soaring 7.5% at the time of writing, trading at 21.5 cents.

The financials company posted a 147% jump in net profit after tax (NPAT) for the first half – reaching $9 million. That's the first time it's posted a profit since financial year 2020.

It responded to rising rates, recessionary concerns, and tightening capital markets last half. To do so, it moderated growth, lowered operating costs, managed credit risk, raised capital, and reset its corporate debt funding arrangements.

Meanwhile, its gross revenue lifted 152% to $121 million. It expects that to come in above $220 million for the entirety of financial year 2023.

The post 2 ASX All Ords stocks rocketing over 7% on strong results appeared first on The Motley Fool Australia.

US markets have been even stronger, especially the tech-heavy Nasdaq Composite (NASDAQ: .IXIC), up close to 10% to start 2023.

But the good times could be about to come to a screaming halt, with Morgan Stanley's Michael Wilson warning "the stock market's January rally could end this week".

Wilson says the January rally is "just another bear-market trap" as central banks in the US and here in Australia prepare to hike interest rates yet further as they attempt to tame inflation. 

2) It appears the ASX 200 index didn't get the Morgan Stanley memo, up a solid 0.46% to 7,516 in late morning trade on Tuesday. 

So much for the oncoming economic slowdown here in Australia — the ASX 200 is up almost 8% over the past 12 months. 

Perhaps it's like the Aussie consumer – we know there are some tough times ahead, especially for those with mortgages but also for renters – but damn it if we're not going to have some fun before reality bites.

The Woolworths Group Ltd (ASX: WOW) share price is up 2.6% to $35.66 on Tuesday, whereupon it trades on 26 times earnings and on a 2.6% fully franked dividend yield. I get the defensive nature of its earnings, but I'd rather take 4% in a savings account than risk my money on Woolworths shares at today's price. 

3) Stock winner of the day

Not many big winners to choose from today despite quarterly updates coming out faster than a Novak Djokovic serve.

The Moneyme Ltd (ASX: MME) share price is up 16% to 32.5 cents after the consumer money lender said it delivered record revenue and a statutory profit in Q2, "beating analyst expectations".

It's a welcome turnaround in the fortunes of the Moneyme share price, given it has fallen 83% in the past 12 months. Consumer lending faces some serious headwinds as the economy weakens, both from lower new loan originations and from higher defaults. As to whether that is already priced into Moneyme shares is anyone's guess, while acknowledging the company is managing to the current macro environment and is committed to driving profitable growth.

4) Stock loser(s) of the day

Unlike the winner's circle, we have plenty of losers to choose from for today's stock flops.

A trading update from former high-flyer BWX Ltd (ASX: BWX) was a shocker, with the owner of Sukin and other beauty and wellness products lowering revenue and profit guidance.

"We are revising our forecast on the basis of our cash-constrained environment having impacted our ability to trade effectively and led to a temporary increase in out of stocks and a need to reduce promotions to conserve cash and protect stock levels."

The BWX share price has fallen 93.5% in the past 12 months. Steer well clear of this fallen knife. 

I've long been mystified by the huge market capitalisation placed on Megaport Ltd (ASX: MP1) given its relatively modest size.

The "global leading provider of Elastic Interconnection services" said total revenue for the Q2 was $37 million, up 10% quarter on quarter, and delivered earnings before interest, tax, depreciation, and amortisation (EBITDA) profit for the quarter. Although revenue is sticky due to low customer churn, Megaport did note the "current economic uncertainty seems to be delaying customer decision making, lengthening sales cycles".

The Megaport share price is down 16% to $6.45 in Tuesday trading, and off 52% over the past 12 months. With a market capitalisation of $1 billion, even after today's fall, investors are being asked to pay a pretty price for a pretty modestly sized company. 

The Pointerra Ltd (ASX:3 DP) share price is on the nose today, down 17% to 19 cents, after the company that "helps customers answer almost any physical asset management question" said program delays by some US customers impacted invoicing in Q2.

The Pointerra share price went parabolic in early 2021, soaring at one stage over 30 times in value as investor enthusiasm went nuts. It's been mostly downhill since February 2021, with the Pointerra share price plunging 77% from those epic highs. 

The rubber now needs to hit the road for Pointerra, with investors no longer valuing the company on hope. With a cash balance of just $2.75 million and the most recent quarter showing operating outflow of almost $1 million, investors better hope the "expected rebound in Q3 and Q4" becomes a reality.

The post ASX 200 jumps higher again, defying predictions the 2023 stock market rally could be about to come to a screaming halt appeared first on The Motley Fool Australia.

Four ASX shares that are climbing more than most today are listed below. Here's why they are racing higher:

Cettire Ltd (ASX: CTT)

The Cettire share price is up 2% to 85.2 cents. This follows the release of a first quarter update that revealed that the online luxury fashion retailer has started FY 2023 strongly. Cettire's gross revenue grew 62% over the prior corresponding period to $84.4 million during the quarter. This was driven by the year over year doubling of its active customers to 287,626 and improvements in repeat customer spending.

Moneyme Ltd (ASX: MME)

The Moneyme share price is up 5.5% to 38.5 cents. Investors have been buying this digital consumer credit company's shares following the release of a first quarter update. Moneyme revealed a 148% increase in gross revenue to $57 million and a 183% increase in gross customer receivables to $1.28 billion.

Piedmont Lithium Inc (ASX: PLL)

The Piedmont Lithium share price is up over 3.5% to 86.5 cents. This follows a strong night of trade for this lithium developer's US listed shares on Wall Street. In addition, a number of battery materials shares are outperforming on Tuesday.

Superloop Ltd (ASX: SLC)

The Superloop share price is up 10% to 70 cents. After the market close on Monday, Superloop announced a mutual preferred network partnership agreement with Uniti Group. The broad-reaching partnership covers various retail, wholesale and network elements with Uniti to be offered through Superloop's branded Consumer, Business and Wholesale segments. The agreement is expected to be immediately accretive to Superloop's EBITDA in FY 2023.

The post Why Cettire, Moneyme, Piedmont Lithium, and Superloop shares are racing higher appeared first on The Motley Fool Australia.

But while the market was feeling worse for wear, some ASX All Ords shares suffered even steeper falls. Let's take a look.

MoneyMe Ltd (ASX: MME)

MoneyMe took out the unfortunate title of the All Ords' worst performer in September. Its share price was nearly cut in half, tumbling by 47.8% to 46 cents.

This was triggered by a $20 million capital raising, which was priced at a 28% discount to the last traded MoneyMe share price at the time. The company intends to use this money for growth, supporting debt facilities and transaction costs.

MoneyMe announced this capital raising alongside its FY22 results, which saw revenue jump 148% to $143 million, aided by a mix of organic and acquisitive growth. 

However, the company continues to burn through cash. While its net loss after tax blew out from $8 million in the prior year to $50 million in FY22. 

Hastings Technology Metals Ltd (ASX: HAS)

Similarly, ASX All Ords share Hastings Technology also came under pressure in September on the back of a capital raising. Hastings shares suffered a steep 36.6% fall across the month to finish at $3.46.

The company announced a $110 million two-tranche placement at an offer price of $4.40 per share. This represented a 19% discount to the last traded Hastings share price of $5.41.

Subject to shareholder approval, this will result in roughly 25 million new shares being issued, nearly one-quarter of the company's existing share count.

Proceeds from the cap raise will be used to advance the development of Yangibana, a rare earths project located in the Gascoyne region of Western Australia.

PointsBet Holdings Ltd (ASX: PBH)

Fresh off being kicked out of the ASX 200, the PointsBet share price drudged up a 35.9% loss in September. to close out the month at $1.86.

It appears investors weren't impressed with the company's FY22 results. Revenue jumped by 52% to $296 million but operating expenses went through the roof, causing PointsBet's net loss to balloon by 43% to $268 million.

PointsBet shares continue to be among the most shorted on the ASX.

Link Administration Holdings Ltd (ASX: LNK)

The Link share price was also battered and bruised last month after the $2.5 billion takeover with Dye & Durham finally collapsed.

Link shares tumbled 33.5% across the month to finish at $2.86, a long way from the takeover offer price of $4.81.

After several twists and turns over many months, the deal failed to satisfy three conditions necessary for court approval. The most significant relates to the Woodford Matters and associated approval from the United Kingdom Financial Conduct Authority.

Link adjourned the second court hearing multiple times but in the end, time ran out. With the outstanding conditions not satisfied, the court dismissed the proceedings and ultimately, the deal fell through.

New Century Resources Ltd (ASX: NCZ)

Finally, ASX All Ords share New Century's woes continued in September as its shares crumbled by 33.1% to $1.07.

For those unfamiliar, New Century describes itself as a mining, tailings management, and economic rehabilitation company. It's focused on sustainably producing metal from resource assets while rehabilitating legacy impacts on the environment. 

Investors didn't appear pleased with New Century's FY22 results. Revenue leapt by 47% to $408 million. But fair value adjustments and higher production costs led to the company's net loss more than doubling to $28 million.

The post These were the 5 worst-performing ASX All Ords shares in September appeared first on The Motley Fool Australia.

Aside from this, the company also posted its FY22 full-year results before the open today as well.

The MoneyMe share price is resting at 69 cents, down more than 68% this year to date.

Why is the MoneyMe share price halted?

The company notes it requested the trading halt of its securities for a planned equity raise.

It is undertaking a fully underwritten placement to raise $20 million. To do this, it will issue 40 million new fully-paid ordinary shares.

MoneyMe will issue the placement shares at a fixed price of 50 cents apiece, representing a 28.1% discount to the last close price on Monday – just before the halt.

Specifically, it hopes to raise approximately $17.84 million through the issue of approximately 35.7 million shares in an unconditional offer.

Then, it wants to raise the additional $2.16 million through a conditional placement that will require shareholder approval.

"The proceeds from the equity raising will be utilised for equity subordination requirements in MoneyMe's warehouse facilities to support continued loan book growth, and payment of associated upfront commissions to brokers," the company said.

"In its normal course of business, MoneyMe will continue to explore opportunities to expand new and existing debt capital facilities to support its balance sheet and loan receivables growth," it added.

The MoneyMe share price is expected to remain in a trading halt until Thursday, whilst the equity raise is being completed.

MoneyMe shares remain down more than 66% in the past 12 months of trade.

The post MoneyMe share price halted amid results and cap raise appeared first on The Motley Fool Australia.

Negative sentiment about the economic outlook was a key factor weighing down the index.

Here are the five worst-performing ASX shares of the month, according to Capital IQ figures.

• BWX Ltd (ASX: BWX) down 51.5%
• MoneyMe Ltd (ASX: MME) down 51.3%
• Sezzle Inc (ASX: SZL) down 50%
• Incannex Healthcare Ltd (ASX: IHL) down 47.5%
• Humm Group Ltd (ASX: HUM) down 47.4%

What worried ASX investors in June?

People are starting to notice an increase in the prices of groceries and other day-to-day essentials, particularly electricity, that they simply can't avoid.

Inflation is no longer something people read or hear about in the news, it's actually in their face and affecting their weekly budgets.

On top of that, home loan interest bills have increased by 0.75% after the Reserve Bank of Australia increased the official cash rate by 0.25% in May and 0.5% in June.

On a $1 million home loan, that's an extra $7,500 in interest payments per year or $625 per month.

So, investors are likely worried about how the companies they are invested in might be affected by these things. Some might also be wondering if they want to have their spare cash invested at the moment.

Why these ASX shares tanked

These ASX shares had a rockier month than most.

The companies released the following news to the ASX in June:

• BWX Limited announced a capital raising at a significant share price discount
• MoneyMe shares drifted downwards all month despite the company releasing no price-sensitive news except a media response denying it had tested a capital raising proposal with investors. But its share price skyrocketed today on news about its funding platform
• Sezzle did not release any price-sensitive news in June, however, its share price likely fell due to concerns about increasing inflation and competition and the threat of more regulation in the buy now, pay later (BNPL) space
• Incannex announced positive results in its phase 2 sleep apnoea trial in early June but the share price trundled lower for the rest of the month
• Humm shares fell due to the agreed termination of the company's $250 million BNPL deal with Latitude and the resignation of the majority of the board.

The post 5 worst ASX All Ordinaries shares in June appeared first on The Motley Fool Australia.

3 All Ords shares gaining more than 20% today

MoneyMe Ltd (ASX: MME)

The MoneyMe share price is launching higher on Friday, gaining nearly 25% to trade at 71 cents.

The consumer credit business announced it has completed its inaugural term securitisation of personal loan customer receivables this morning.

On top of that, the company increased the capacity of its Autopay warehouse from $300 million to $450 million last month.  

The two events, along with existing arrangements, have increased its external securitisation funding facilities to $1.65 billion, with $388 million of undrawn capacity.

Praemium Ltd (ASX: PPS)

Fellow All Ords constituent Preamium is also seeing its share price rocket higher on Friday. The wealth management-focused tech company's stock is lifting 20.43% right now to trade at 56 cents.

Its gain follows news the company has successfully divested its international businesses and will now focus on its domestic leg.

The company sold its operations in the United Kingdom, Dubai, Hong Kong, and Jersey for 35 million British pounds sterling.

"This successful divestment will allow Praemium to focus on the enormous opportunity that the Australian wealth market offers," Praemium CEO Anthony Wamsteker said.

The company plans to return approximately $50 million to shareholders through a special dividend and on-market buy-back following the sale.

Atomos Ltd (ASX: AMS)

Finally, ASX All Ords tech share Atomos is taking off on Friday. Right now, its stock is swapping hands for 24 cents apiece, a 26.32% improvement on its previous close.

Interestingly, no news has been released by the company since the end of May.

However, it did finish yesterday's session at an all-time low of 19 cents.

The post These 3 ASX All Ords shares are delivering double-digit gains on Friday appeared first on The Motley Fool Australia.

At the time of writing, shares in the provider of retail consumer finance are tracking 28% higher at 73 cents apiece.

MoneyMe shares are catching bids today following a company announcement regarding its funding platform.

What did MoneyMe announce?

The MoneyMe share price is soaring after the company advised it completed its inaugural term securitisation of personal loan customer receivables on 30 June. This has concurrently increased its undrawn securitisation funding capacity.

Securitisation is a process of collecting receivables (mortgages, auto loans, credit card receivables etc) into a large pool, and then packaging these into an investment product to be sold to investors.

Investors then receive the cash flows from these loans as a distribution, while lenders are happy to remove the liability off the balance sheet. As an asset class, they are called asset-backed securities, or mortgage-backed securities.

The MoneyMe transaction was made up of a $200 million term securitisation and a private placement with three Australian investors. It earned a triple-A rating for its senior tranche from Moody's ratings.

The securitised loans also free up $200 million of funding capacity in MoneyMe's warehouses, it says.

As a result, MoneyMe increased external securitisation funding facilities to $1.65 billion, while undrawn capacity increased to $388 million.

The transactions have also helped to reduce the group's securitisation cost of "funds drawn margin to circa 3.1%".

Speaking on the update fuelling the MoneyMe share price today, CEO Clayton Howes said he was pleased to see the "consistent step changes being made in [the company's] securitisation funding program".

Our inaugural term securitisation is incredibly exciting, with Moody's Aaa (sf) rating a testament to our track record of consistent credit performance and underwriting standards.

We remain focussed on executing our strategy: profitable growth, innovation, maintaining the quality of our loan book, and efficiency and accuracy in credit decisioning thanks to our proprietary lending technology platform.

In the last 12 months, the MoneyMe share price has collapsed by around 68%.

The post What's propelling the MoneyMe share price 28% higher today? appeared first on The Motley Fool Australia.

Here's why analysts have named them as buys:

Airtasker Ltd (ASX: ART)

The first small cap ASX share to consider is this online marketplace for local services. It has been growing at a rapid rate in recent years and has been tipped to continue this trend in the future by the team at Morgans. This is due to the broker's belief that the company has a very attractive business model and a significant market opportunity that is in the early stages of ecommerce adoption. Morgans has an add rating and $1.27 price target on the company's shares.

MoneyMe Ltd (ASX: MME)

Another small cap ASX share that is rated as a buy is MoneyMe. It is a financial technology company that leverages artificial intelligence to deliver highly automated credit products and customer experiences. It has also been growing at a solid rate in recent years and appears well-placed for more of the same in the future. Particularly given its recent acquisition of the SocietyOne business for $132 million. Morgans is positive on the company's future, noting that its diverse product suite now combined with the complementary customer base of SocietyOne has the potential to drive further top line growth. The broker has an add rating and $2.60 price target on its shares.

PlaySide Studios Limited (ASX: PLY)

A final small cap ASX share that could be a buy is PlaySide Studios. It is Australia's largest publicly listed video game developer. The company provides titles in a range of categories, including self-published games based on original intellectual property and games developed in collaboration with studios. The latter includes studios such as Disney, Pixar, Warner Bros, and Nickelodeon. PlaySide has also been dabbling, with big success, with NFTs and announced material work for hire deals with a number of games publishing giants. This went down well with the team at Canaccord Genuity, which has put a buy rating and $1.30 price target on its shares.

The post Brokers name 3 exciting small cap ASX shares to buy appeared first on The Motley Fool Australia.

Here's why they could be worth getting better acquainted with:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap to watch is Bigtincan. It is a provider of enterprise mobility software that helps sales and service teams increase their sales win rates, reduce expenditures, and improve customer satisfaction through improved mobile worker productivity.  It has a number of blue chip clients such as Australia and New Zealand Banking Group (ASX: ANZ) and sports giant Nike. Morgan Stanley is a fan of Bigtincan. It has an overweight rating and $2.10 price target on its shares.

MoneyMe Ltd (ASX: MME)

Another small cap ASX share to watch is MoneyMe. It is a fintech that uses technology and artificial intelligence to deliver highly automated credit products and customer experiences. MoneyMe notes that it originates loans through a diversified mix of credit products and distribution channels to create significant scale and long-term customer advantages. This includes through the SocietyOne business, which MoneyMe recently acquired for $132 million. Morgans is positive on the company's future. It has an add rating and $2.35 price target on its shares.

Serko Ltd (ASX: SKO)

A final small cap to watch is Serko. It is an online travel booking and expense management provider with a number of quality solutions which have significant market opportunities. It also has a game-changing deal with travel booking giant Booking.com which is beginning to take shape now COVID headwinds are easing. Last week, Citi initiated coverage on Serko with a buy rating and $5.75 price target.

The post 3 small cap ASX shares brokers rate as buys appeared first on The Motley Fool Australia.

Three broker buy ratings that you might want to know more about are summarised below. Here's why brokers think these ASX shares are in the buy zone:

BHP Group Ltd (ASX: BHP)

According to a note out of Macquarie, its analysts have retained their outperform rating and lifted their price target on this mining giant's shares to $61.00. Macquarie has been looking over the petroleum demerger and notes that the value of the transaction has increased materially since first being announced. Outside this, the broker highlights that iron ore and coal prices have been booming, which bodes well for its earnings in FY 2022. The BHP share price is trading at $46.30 on Friday.

Liontown Resources Limited (ASX: LTR)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and $2.50 price target on this lithium developer's shares. Macquarie remains very positive on lithium and highlights that Liontown will soon be making a final investment decision on its Kathleen Valley in Western Australia. Before then, the broker suspects the company will add to its existing offtake agreements with Tesla and LGES. The Liontown share price is fetching $1.64 today.

Moneyme Ltd (ASX: MME)

Analysts at Morgans have retained their add rating but trimmed their price target on this lender's shares to $2.35. This follows the completion of its acquisition of Society One. In addition, the broker has factored in the company's recent results, though it has lowered its valuation to reflect reduced earnings estimates from higher than expected impairment expenses. The MoneyMe share price is trading at $1.48 today.

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

Here's why these are highly rated by analysts right now:

MoneyMe Ltd (ASX: MME)

The first small cap ASX share to watch is MoneyMe. It is a fintech that uses technology and artificial intelligence to deliver highly automated credit products and customer experiences.

The company notes that it originates through a diversified mix of credit products and distribution channels to create significant scale and long-term customer advantages. This will soon include the SocietyOne business, which the company is acquiring for $132 million.

Morgans is positive on the company and believes it has strong long term growth potential.

The broker commented: "In our view, MME continues to deliver strong organic book growth and believe its new, innovative product suite, targeting niche under-serviced markets has the potential to further drive top-line growth. Add maintained."

Morgans has an add rating and $2.50 price target on the company's shares.

Nitro Software Ltd (ASX: NTO)

Another small cap ASX share to look at is Nitro Software. It is a global document productivity software company aiming to drive digital transformation in organisations across multiple industries globally.

Nitro's core solution, the Nitro Productivity Suite, provides integrated PDF productivity and eSignature tools to customers through a horizontal, software as a service and desktop-based software suite.

Goldman Sachs is positive on Nitro and believes the market is underestimating its growth potential as a challenger in a US$34 billion total addressable market across PDF, e-signing and workflows.

It commented: "Nitro is down ~50% since November with the market currently pricing in long-term growth and margin assumptions that understate Nitro's potential, in our view. We are positive on Nitro's structural growth opportunity, reflected in our DCF scenario analysis implying an attractive asymmetric risk/reward skew."

Goldman Sachs has a buy rating and $2.95 price target on its shares.

The post 2 small cap ASX shares getting analysts excited appeared first on The Motley Fool Australia.

Here's why these are highly rated by analysts right now:

MoneyMe Ltd (ASX: MME)

The first small cap ASX share to watch is MoneyMe. It is a fintech that uses technology and artificial intelligence to deliver highly automated credit products and customer experiences.

MoneyMe notes that it originates loans through a diversified mix of credit products and distribution channels to create significant scale and long-term customer advantages. This will soon include the SocietyOne business, which MoneyMe recently signed an agreement to acquire for $132 million.

In response to the acquisition, Morgans retained its add rating and lifted its price target to $2.57.

Morgans commented: "The acquisition seems a good strategic fit, in our view, with MME adding significant scale to its already rapidly growing business. From FY24, A$17m in pre-tax cost synergies and greater than A$15m in revenue synergies are expected. We have the transaction as cash EPS accretive post synergies and integration costs from FY24 (~6% – ex Revenue synergies)."

"Whilst not without integration risk, the deal should allow MME to continue to deliver strong book growth as it penetrates this additional customer base and utilises new distribution/marketing channels," it added.

Nitro Software Ltd (ASX: NTO)

Another small cap ASX share to look at is Nitro Software. It is a global document productivity software company aiming to drive digital transformation in organisations across multiple industries globally.

Nitro's core solution is the Nitro Productivity Suite. It provides integrated PDF productivity and eSignature tools to customers through a horizontal, software as a service and desktop-based software suite.

Bell Potter is very positive on the company, particularly given its recent "game-changing" acquisition of Connective NV for ~US$81 million.

The broker commented: "The rationale for the acquisition is it will accelerate and enhance Nitro's eSign, eID (electronic identity) and document workflow capabilities. It will also position Nitro to become the third global player in the enterprise eSign market along with DocuSign and Adobe."

Bell Potter currently has a buy rating and $4.50 price target on the company's shares. This compares favourably to the latest Nitro share price of $2.40.

The post Analysts say these small cap ASX shares could be going places in 2022 appeared first on The Motley Fool Australia.

The fintech company says the move will bolster Moneyme's Autopay platform for motor vehicle finance.

At market close, the Moneyme share price finished at $1.96 a share, up 11.05% on the day. 

Moneyme's response to company growth

According to today's announcement, Moneyme's new funding model will inject an additional $200 million into the company's "high growth Autopay product".

The partnership will secure funds at less than 3% above the BBSW (bank bill swap rate), used as a short-term benchmark rate.

Moneyme says the new facility will allow it to cut its lending costs.

It will also pave the way for the company to gain further traction in the heated motor vehicle lending market.

Morgan Stanley will be the senior funder of the new Moneyme facility with Revolution Asset Management the Mezzanine funder.

Moneyme managing director and CEO Clayton Howes said:

The new Autopay warehouse will further reduce our funding costs, and combined with our variable rate credit products we are well placed to counter upward pressure to the cash rate.

This warehouse is significant for Autopay's growth in 2022 as we expect market demand for Autopay to increase further with major long term players exiting the market.

It's clear the company is looking to capitalise on the departure of several traditional lenders in the auto finance sector, including Westpac Banking Corp (ASX: WBC) which sold its vehicle dealer finance and novated leasing business in June.

In other news from Moneyme today, the company also announced a further 10% increase to the funding capacity of its Horizon 2020 Trust (HW20) Major Bank, bringing it to $467 million.

It comes after the announcement of a boost to its Horizon 2020 warehouse facility capacity in June.

Just last week, Moneyme announced the acquisition of digital finance provider SocietyOne for $132 million.

Moneyme share price snapshot

The Moneyme share price has seen a positive six months, leaping 75% in the six weeks from 10 May to 2 July.

It seems this was spurred by a positive trading update in mid-June. The company's share price has remained in the elevated range ever since.

At its current share price, the company has a market capitalisation of over $335 million with 171 million shares on issue.

The post Why has the Moneyme (ASX:MME) share price jumped 11% today? appeared first on The Motley Fool Australia.

The upward spike comes following a company announcement that MoneyMe is set to acquire SocietyOne "to boost revenue, customer and profit growth".

It purchased the company on an implied acquisition price of $132 million, based on MoneyMe's 16 December 2021 closing share price, and assuming that the consideration is 100% MoneyMe shares.

The company says the transaction delivers a "powerful combination of two of the leading innovators in the consumer lending market and will harness SocietyOne's strong brand recognition as a pioneer in disruptive personal lending".

Both businesses have synergies that align with MoneyMe's s proprietary technology platform, Horizon, the release notes.

The collaboration is set to bring distribution capabilities spanning across direct digital, direct traditional, broker, agent and dealer, as well as delivering improved data and funding opportunities, MoneyMey says.

What is SocietyOne?

MoneyMe notes that SocietyOne is a pioneer and leading brand in disruptive consumer lending. For instance, it has a "strong net promotor scores (NPS) of +69 and a Product Review score of 4.7 out of 5.0", boasts a $392 million pro forma loan book, as well as pro forma unaudited revenue of $50 million in FY21.

The company has 25,000 active loan customers and 147,000 customers engaged in SocietyOne's "credit score wellness product".

MoneyMey also says that SocietyOne is backed by a "high quality shareholder base" that includes Seven West Media, Australian Capital Equity, News Corporation, Reinventure, Consolidated Press Holdings and G&C
Mutual Bank.

Why the collab?

MoneyMe had several justifications for its "strategic rationale" for the transaction. These include factors such as a 72% increase in MoneyMe pro forma loan book size to $934 million and pre-tax cost synergies of $17 million per annum.

It also views revenue synergies from SocietyOne's customer base, by reducing SocietyOne customer experience time to fund down from 1-2 days to around 1-2 hours with its Horizon platform.

The deal also unlocks new distribution opportunities, by expanding broker channels, accelerating financial wellness channels, whilst leveraging SocietyOne's credit score product with an approximate 147,000 customer base.

Aside from this, MoneyMe intends to leverage the "power" of combined data. For instance, there is over $2 billion of combined customer origination data in the collaboration, "enabling increased revenue and improved credit risk management through advancements in credit underwriting, artificial intelligence (AIDEN), marketing and customer behaviour analysis".

With respect to financials, the company sees an 86% increase in its FY21 combined pro forma revenue and $146 million in annualised revenue. This represents a 63% increase for MoneyMe on a standalone basis.

Management commentary

Speaking on the announcement, Clayton Howes, MoneyMe's Managing Director and CEO said:

The SocietyOne acquisition combines two of the most widely recognised consumer credit disruptors to deliver immediate scale advantages and incremental revenue opportunities. The strategic value is immense for both businesses, and we are incredibly excited. The opportunity to accelerate growth and cost efficiencies are quickly realised by combining the strengths of both brands and migrating SocietyOne operations onto MoneyMe's high-tech Horizon Technology Platform. The SocietyOne brand will continue to thrive and will benefit from access to MoneyMe's diversified product set and ability to deliver leading customer experiences.

Howes added:

There are many new innovations we will expand on, including the SocietyOne credit score product which will be brought to the MoneyMe customer base and the Banking-as-a-Service partnership with Westpac that we will continue to explore.

The post MoneyMe (ASX:MME) share price spikes on $132 million acquisition news appeared first on The Motley Fool Australia.

At the market close, the MoneyMe share price was down 8.54%, trading at $1.82.

MoneyMe is a digital consumer credit business that uses technology to help people manage their personal finances.

What did MoneyMe announce?

In today's release, MoneyMe reported record originations of $170 million for the first two months of the second quarter (Q2 FY22). In the same time period, contracted future revenue increased to $158 million.

The company also reported better than expected take-up of its Autopay product.

Total gross customer receivables, which means sales made on credit for which payment has not been received, increased to $542 million. The company also noted that Autopay credit sales hit $111 million.

In addition, MoneyMe advised it has settled a $50 million drawdown announced in September through a partnership with Pacific Equity Partners.

Despite this, the MoneyMe share price fell sharply this morning and stayed down in what has been a bumpy day of trading across the broader ASX market.

For some perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) spent much of the day struggling in the red, before heading north to finish the day up 0.05% at 7245.1 points. Meanwhile, the S&P/ASX 200 Financials Index (ASX: XFJ) was down 0.03% at the close.

Management commentary

Commenting on the trading update, MoneyMe managing director Clayton Howes said:

I am delighted with MoneyMe's accelerated growth, with the group achieving record originations and record revenues while maintaining strong credit performance.

We see this as a signal that our dynamic product, brand and service experience is paying off.

Moneyme share price snapshot

Despite today's disappointing outcome, the MoneyMe share price has lifted 28.17% over the past 12 months. The yearly high is $2.48, while the 52-week low is $1.30.

Based on its current share price, MoneyMe has a market capitalisation of roughly $312 million.

The post Moneyme (ASX:MME) share price slides 9% despite record trading update appeared first on The Motley Fool Australia.

At the time of writing, shares in the consumer credit business are trading for $2.09 – up 10%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.28% higher.

The positive price movement comes as the company releases its trading update for the first quarter of FY22.

Let's take a closer look at today's announcement.

What did MoneyMe announce?

The MoneyMe share price may be rocketing today due to the following results:

• $1 billion in customer receivable originations since 2013.
• Originations of $173 million in the quarter – up 283% on the prior corresponding period (pcp) and 7.45% over the previous quarter.
• Gross customer receivables of $452 million – up 227% on the pcp and 26.7% on the prior quarter.
• Record revenue of $23 million – up 92% on the pcp and 21% on Q4 of FY21.

What did management say?

MoneyMe's Managing Director and CEO Clayton Howes said:

I am delighted to announce that MoneyMe has passed the $1bn origination milestone. This reflects our consistent focus over time to invest in and develop the digital capabilities of our Horizon technology platform, an unrelenting focus on the Generation Now customer and our persistent innovation.

What's affecting the MoneyMe share price?

Looking deeper into the numbers, MoneyMe says its personal loans and freestyle divisions continue to drive the majority of growth in the business – both being quite resilient during lockdown.

Autopay, MoneyMe's consumer car financing facility, achieved "significant growth despite the challenges of car buyers during lockdown".

The MoneyMe share price may also be rising due to its "strong" performing credit and book quality metrics. Net charge-offs were 5.4% down on the pcp and COVID-19 deferrals were low at 0.2% of customer receivables.

MoneyMe share price snapshot

Over the past 12 months, the MoneyMe share price has increased 36.4%. Year-to-date, shares in the company have appreciated 42.9%.

The 52-week high is $2.48 and the 52-week low is $1.29.

MoneyMe has a market capitalisation of approximately $358 million.

The post Why the MoneyMe (ASX:MME) share price is rocketing 10% this Monday appeared first on The Motley Fool Australia.

The credit provider has secured $50 million through a new strategic funding partnership with Pacific Equity Partners.

At the time of writing, the MoneyMe share price is $2.13, 2.9% higher than at Friday's close.

Let's take a closer look at today's news from MoneyMe.

MoneyMe's new funding partnership

The MoneyMe share price is in the green after the company announced it has entered a funding partnership with Pacific Equity Partners.

Pacific Equity Partners is an Australian investment firm with around $7.1 billion of funds under management.

Under the partnership, MoneyMe has gained an initial $50 million funding commitment.

The funding will be allocated through a 4-year secured hybrid funding instrument and documented under a syndicated facility agreement.

The cash injection will go towards growing MoneyMe's product suite and its new Autopay car loan product.

MoneyMe will also use the funds to develop and deliver new products. The new products will build from its successful ListReady, Autopay, MoneyMe+, and Freestyle products.

Some of the cash will also be used to repay its $22 million secured note facility.

MoneyMe also plans to expand its securitisation warehouse program, which maintains a cost of funds of less than 5%.

Commentary from management

MoneyMe's managing director and CEO, Clayton Howes, commented on the news driving the company's share price today:

MoneyMe's high growth trajectory from its personal loan and Freestyle products has accelerated with the recent launch of products in the larger [business-to-business-to-customer] markets including Autopay and MoneyMe+ which are unlocking significant incremental growth pathways for the Group. The partnership with PEP is instrumental to securing the very large opportunity in front of us.

Pacific Equity Partners' managing director, Jake Haines, also commented on the partnership:

We see MoneyMe as a leading platform within the consumer lending space with great people, technology and products and a relentless drive to provide excellent service and innovative solutions to its customers.

MoneyMe share price snapshot

Today's gain has added to MoneyMe's strong recent performance on the ASX.

Right now, the lender's share price is 44% higher than it was at the start of 2021. It has also gained 38% since this time last year.

The post MoneyMe (ASX:MME) share price gains 3% on new funding agreement appeared first on The Motley Fool Australia.

Below, we take a look at the digital consumer credit company's trading update that appears to be driving ASX investor interest.

What trading update did MoneyMe announce?

MoneyMe's share price is leaping today after the company reported record originations of $112 million for July and August, the first 2 months of the new financial year (Q1 FY22).

The technology-oriented credit company achieved this in a period that's seen much of Australia in lockdown.

It said originations increased 307% compared to the prior corresponding period (pcp) of July and August 2020. And they were up 7% on the $105 million of originations in April and May of this year.

The MoneyMe share price could also be getting a boost today with its report of an increase in the credit quality in its loan book. The average Equifax score in its loan portfolio stands at 675, up from 650 as at 30 June.

Additionally, the company said it's reached $25 million in Autopay originations to date, with Autopay ramping up to $18 million in July and August from $6 million in Q4FY21 when it was launched.

The company's partnership with EasyCars has given it access to hundreds of dealerships with direct to dealer auto-finance integration.

Commenting on the trading update, MoneyMe's CEO Clayton Howes said:

We are incredibly pleased to see the strong originations growth and increasing credit quality in the business, especially in the current environment. It is a testament to our product diversification strategy and huge growth opportunity that exists.

The rapid growth in Autopay is exciting, and the new partnership with EasyCars will further accelerate our penetration into the auto-finance market by making Autopay more accessible to dealers.

MoneyMe share price snapshot

The MoneyMe share price is up an impressive 54% year-to-date. That compares to a gain of 12% for the All Ordinaries Index (ASX: XAO) so far in 2021.

Over the past month, MoneyMe's share price is up 3%, while the All Ords has slipped into the red.

The post Why the MoneyMe (ASX:MME) share price is leaping 6% today appeared first on The Motley Fool Australia.