If you're wanting to invest at the small side of town, then the two small caps listed below could be worth a closer look.

Here's why analysts think these small cap ASX shares could be in the buy zone:

Audinate Group Limited (ASX: AD8)

The first small cap ASX share that analysts rate highly is Audinate.

It is the $650 million digital audio-visual networking technologies provider behind the Dante audio over IP networking solution.

Management notes that Dante is the clear worldwide leader in its category and used extensively in the professional live sound, commercial installation, broadcast, public address, and recording industries. It has gained popularity due to the way it can replace traditional analogue cables by transmitting perfectly synchronised AV signals across large distances to multiple locations at once, using just an ethernet cable.

Macquarie is positive on Audinate and was very impressed with its first-half performance. In response to its results, the broker put an outperform rating and $10.00 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

Another small cap ASX share that analysts rate highly is Readytech.

It is the $380 million provider of mission-critical software-as-a-service (SaaS) solutions for the education, employment services, workforce management, government and justice sectors.

Goldman Sachs is a fan of the company and believes it is well-placed to continue its solid growth in the current environment. This is thanks to its exposure to defensive end-markets. The broker notes that "government software has been a pocket of strength and resilience within TMT (~3/4 of RDY's earnings)."

Goldman has put a buy rating and $4.40 price target on its shares.

The post 2 exciting small cap ASX shares to buy: analysts appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) has started the week in a subdued fashion. In afternoon trade, the benchmark index is down 0.2% to 7,417.3 points.

Four ASX share that are not letting that hold them back are listed below. Here's why they are charging higher:

Audinate Group Ltd (ASX: AD8)

The Audinate share price has jumped 11% to $7.96. Investors have been buying this media networking solutions provider's shares after it delivered a record half year result. Audinate reported a 39.3% increase in revenue to US$20.6 million and a 30% lift in gross profit to US$14.5 million. Management also revealed that its sales backlog remains at record levels.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is up 3.5% to $7.06. This follows the release of the drinks giant's half year update. Endeavour reported a 2.5% increase in sales to $6.5 billion and a 17% jump in profit after tax to $364 million. The latter came in ahead of Goldman Sachs' estimate of $346 million, which itself was ahead of consensus expectations.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is up 5% to $4.96. Investors have been buying this insurance giant's shares after the release of its half year results. IAG reported gross written premium growth of 7.5% to $7.06 billion and a 171% jump in net profit after tax to $468 million.

Vitura Health Ltd (ASX: VIT)

The Vitura Health share price is up 8.5% to 57 cents. This follows the release of the cannabis company's half year results. Vitura, formerly known as Cronos Australia, reported record gross revenue of $57.6 million and a record net profit of $7.7 million. Both were more than double compared to the prior corresponding period.

The post Why Audinate, Endeavour, IAG, and Vitura Health shares are charging higher appeared first on The Motley Fool Australia.

It's been a pretty disappointing start to the trading week for the All Ordinaries Index (ASX: XAO) so far this Monday. At the time of writing, the All Ords has lost 0.14% of its value, putting the index at just over 7,620 points.

But not all All Ords shares are having such a down day today. So let's take a look at three All Ords shares that are making their investors very happy.

3 ASX All Ords shares bucking the market on Monday

Audinate Group Ltd (ASX: AD8)

Audio visual technology share Audinate is our first All Ords stock worth a look today. Audinate shares are tearing it up this Monday. The company is currently enjoying a massive 11.85% rise at present, putting the Audinate share price at $8.02 a share:

This comes after Audinate reported its half-year results for the first half of FY2023 this morning. As we covered this morning, the company reported an impressive 39.3% rise in revenues to US$20.6 million, while gross profits were up 30% to US$14.5 million. Clearly, investors have been delighted by what the company had to say.

HT&E Ltd (ASX: HT1)

Next up, we have All Ords media and advertising share HT&E. Here, There and Everywhere, the company formerly known as APN News and Media, has had no fresh news or earnings out today. But that didn't stop the company's shares from rocketing 10% to $1.32 apiece at one stage this morning. They've now settled 3.75% higher at $1.245 a share:

This could have something to do with speculation that HT&E could be the target of a takeover offer. According to reporting in The Australian, the company's financials have spurred some potential suitors, including some private capital firms, to weigh up their options.

Helios Energy Ltd (ASX: HE8)

Finally today, we have the All Ords oil and gas hopeful Helios Energy. Helios shares are another ASX winner this Monday, with the company up a lucrative 8.59%, to 10.75 cents per share:

Helios hasn't put anything new out today. However, ASX energy shares are collectively surging today, thanks to rising oil prices. As my Fool colleague flagged this morning, WTI crude rose 2.2% last Friday, while Brent crude was up 2.4% to US$86.52 a barrel.

Thanks to these gains in the oil markets, oil shares ranging from All Ordinaries small-cap players like Helios to giants like Woodside Energy Group Ltd (ASX: WDS) are putting on very pleasing performances.

The post 3 ASX All Ordinaries shares going gangbusters on Monday appeared first on The Motley Fool Australia.

In morning trade, the media networking solutions provider's shares are up 13% to $8.10.

This follows the release of the ASX tech share's half year results this morning.

Audinate share price jumps on record half

• Revenue up 39.3% to a record of US$20.6 million (A$30.8 million)
• Gross profit up 30% to US$14.5 million
• Net loss after tax of A$0.4 million
• Positive operating cashflow of A$1.8 million
• Cash and equivalents balance of A$37.9 million
• Sales backlog remains at record levels

What happened during the half?

For the six months ended 31 December, Audinate reported a 39.3% increase in revenue to US$20.6 million and a 30% lift in gross profit to US$14.5 million. This was underpinned by 44.9% growth in sales of chips, cards & modules (CCM) and 22.4% growth in software sales.

The successful launch of its next-generation Brooklyn 3 product was a key driver of its CCM growth during the period. This launch was made in response to sudden and ongoing chip shortages affecting the old Brooklyn 2 module.

Management notes that this product was launched with a higher average selling price (18% increase) and a slightly lower gross margin percentage resulting in an improved average revenue per unit compared to the old Brooklyn module. The good news is that from FY 2024 onwards, the company has a pathway to cost down to improve its gross margin.

Audinate's software revenue grew 22.4% to US$4.7 million. This was thanks to OEM software product sales, including Dante Embedded Platform, IP Core, and Other Software Royalties.

On the bottom line, while the company recorded a small loss after tax of A$0.4 million, this was an improvement from a A$2.1 million loss a year earlier.

And with Audinate recording a 231% improvement in operating cashflow from a small base to $1.8 million, the company finished with a cash and equivalents balance of $37.9 million.

Management commentary

Audinate co-founder and CEO, Aidan Williams, commented:

We are very pleased that Audinate has again been able to deliver record growth in revenue and EBITDA, as well as improved operating cashflow. Our ability to manage chip supplies, the record demand for Dante products and our ability to successfully pass through price increases have offset the effects of supply chain pressures we first flagged two years ago.

Outlook

Audinate continues to have a significant lead over its rivals, which bodes well for the future.

At the end of the period, the total number of Dante-enabled products grew to a record high of 3,688 products. This represents a 12x lead on the next alternate technology.

Thanks to a combination of this leadership position, strong demand for Dante, a buoyant industry outlook, and an improving (but still constrained) chip supply, management believes it is well-placed for the second half and beyond.

Particularly given that it enters the half with a record backlog and a software revenue run-rate to support USD revenue growth in the historical range. The company also expects its fledgling video business to contribute revenue of at least US$3 million in FY 2023.

Mr Williams added:

Our first half results have been excellent in an environment that remains challenging for both Audinate and our customers. I am optimistic about the second half, in particular the prospects of meaningful further traction in video and ongoing revenue growth as supply chain pressures ease.

The post Audinate share price jumps 13% on record half appeared first on The Motley Fool Australia.

An anomaly not often discussed is that professional investors have a different remit to so-called retail investors.

While many retail investors are investing with a long horizon, fund managers are incentivised to make rapid changes to their portfolios because they have to report their performance every month, quarter, and year.

Mum-and-dad investors, therefore, actually have the advantage that they can persist with their investments for the long term. 

If the stock has a bad quarter or even a bad year, the average punter doesn't have to anxiously cut it from their portfolio.

So it can be considered a bit of a gem if a professional investor picks a particular stock as a long-run prospect.

Here is one example from this week:

Invest in an 'unregulated monopoly'

Speaking on a Market Matters Q&A, Shaw and Partners portfolio manager James Gerrish revealed a field trip his team went on.

"We visited this software developer in December hearing from their international technology teams who were out visiting their offices in Surry Hills," he said.

"We believe this is a good company, with good people running it, a great product that has dominance in one area — audio."

The business he's talking about is Audinate Group Ltd (ASX: AD8).

Audinate is the creator of a networking protocol called Dante, which is used to digitally transmit audio data. It is useful for situations like concerts and conferences.

The protocol is fast becoming a standard, with many musical instruments and audio equipment from other manufacturers now selling with it built-in.

Audinate's dominance of that market is such that Medallion Financial Group managing director Michael Wayne once called it a potential "unregulated monopoly".

"You can liken it to Bluetooth, if you like. Except Bluetooth isn't as good a technology and it's owned by a cooperative."

Gerrish's team is also a believer.

"We maintain our bullish stance towards Audinate and see this as a medium to longer-term opportunity within our Emerging Companies Portfolio."

Audinate shares closed Thursday at $7.25, which is more than 28% down from its August peak.

"We believe the stock's good value under $8," said Gerrish.

"Last week's decline was a result of issues from the chip makers, with some chips now in oversupply but some remain hard to get. This has been an ongoing issue for companies like Audinate over recent years."

The post 'Great product, dominance in one area': Expert names unique ASX share to buy appeared first on The Motley Fool Australia.

It's true that a higher interest rate is meant to hurt share prices. As billionaire Ray Dalio once said about interest rates:

It all comes down to interest rates. As an investor, all you're doing is putting up a lump sum payment for a future cash flow.

However, these businesses are the same companies that they were at the start of the year. The main thing that has changed is that investors can now buy them at cheaper prices. So I think that investors are spoiled for choice.

Here are three that could continue to do well, even if the global economy goes through a tough time in the short term.

Xero Limited (ASX: XRO)

Xero is a leading cloud accounting software business. According to the recent Xero FY23 half-year result, it has 3.5 million global subscribers (this was a 16% year-over-year increase).

Despite the growth that Xero continues to achieve, the Xero share price has fallen by around 50% in 2022 to date.

Not only are subscribers growing, but how much it's making from those subscribers is rising too. HY23 average revenue per user (ARPU) increased by 13% to $35.30, which helped annualised monthly recurring revenue (AMRR) rise by 31%.

With a gross profit margin of 87%, the business is experiencing rapid gross profit growth. The business is directing a large part of this to marketing as well as product design and development expenses.

I think we may start to see the underlying profitability of Xero come through in the next couple of years as the percentage of revenue that the ASX tech share spends on growth reduces. Xero's HY23 free cash flow jumped 145% to $15.5 million.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

This is an exchange-traded fund (ETF) focused on video gaming and e-sports businesses around the world.

For people who know a bit about video gaming, some of its biggest holdings may be recognisable: Nvidia, Activision Blizzard, Nintendo, Advanced Micro Devices, Roblox, Tencent, Electronic Arts, Take-Two Interactive Software, and Bandai Namco.

The VanEck Video Gaming and Esports ETF has dropped by around 30% since the start of the year. But I'm not sure that the demand for video games will drop that much. I'd guess younger people will continue to want to spend some of their discretionary income on games and consoles.

E-sports is an exciting area of growth. VanEck-sourced stats suggest that e-sports revenue has grown by an average of 28% per annum since 2015. Global e-sports audiences are growing and this is helping unlock new revenue such as new potential revenue streams from game publisher fees, media rights, merchandise, ticket sales, and advertising.

Audinate Group Ltd (ASX: AD8)

This ASX tech share provides the Dante system — advanced audio and visual media equipment that helps simplify digital media setup and usage. The company has a strong presence in the professional audio sector and now it's trying to offer a full package with video as well.

Audinate wants to grow in areas such as live venues, broadcasting, corporate board rooms, and university lecture spaces.

According to Audinate sources, the professional AV industry is expected to grow 11% in 2022 and hit a new high-water mark of $263 billion globally. It's estimated the industry will grow by nearly 50% over six years to $351 billion in 2027.

The company has a focus on significant traction in the video field, including revenue of at least US$3 million in FY23.

The recovery from COVID, as live events resume, could be a boost for the Audinate share price in 2023. The Audinate share price is down around 20% since August 2022.

The post Could these be the best ASX tech shares to buy now for 2023? appeared first on The Motley Fool Australia.

Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Medallion Financial managing director Michael Wayne explains the nature of businesses behind the ASX shares he would target right now.

Hottest ASX shares

The Motley Fool: What are the three best stock buys right now?

Michael Wayne: Yeah, it's obviously a difficult one. The companies that we're choosing to focus on, if you were desperate to put money in the market at the moment — which we're not necessarily that keen on doing — but if you're looking to invest at the moment, I think you want to invest in companies with short duration cash flows or short duration earnings.

By that I mean, the companies that are making money and generating good cash flows in the here and the now. As opposed to some of those long-duration growth names, who have great stories but whose value, a lot of the value embedded, is based on future earnings, three, four, five years out.

And we saw that particularly with the likes of, say, your Zip Co Ltd (ASX: ZIP)s, for example, or your Afterpays to some extent. These companies have wonderful stories, enormous amount of growth but a lot of that growth isn't set to convert to cash flow earnings for a number of years to come. Those are the businesses, I think, which are being discarded the quickest and dropping the most harshly — so I think you want to avoid those types of companies.

The three good businesses that we like in the long-term standpoint, which have come back a fair way. 

I'll start with a boring one, if you like, but I think a company like CSL Limited (ASX: CSL), for instance, offers good long-term appeal for a lot of investors. It's a large company but still delivering double-digit revenue and earnings growth. We expect that to continue to deliver over the years to come, particularly as plasma collections ramp up again in the post-COVID world. Also, rising unemployment in the US could actually be a tailwind for someone like CSL because in the US, when you go and you donate blood, you actually get paid for it. But also, they are a US dollar earner so they generate their revenues and a lot of their earnings in US dollars and you convert that back to an Aussie dollar share price, it's a tailwind, particularly when you see the Aussie dollar come back as much as it has.

That's a business that ticks all the boxes when looking at the balance sheet, looking at the revenues, the earnings, the margins, the number of growth opportunities within that business is phenomenal. We're comfortable in picking that up in the long-term horizon. 

Another business reported very well during earnings season is a company called Altium Limited (ASX: ALU) — it's a tech business. They actually provide the technology which is used to produce plastic circuit boards. The growth of their new product, Octopart, was very strong and management's conviction in hitting their FY26 targets has increased significantly because this is a business that has transitioned away from their old fee structure towards a more software-as-a-service, annuity-type fee structure. I think that'll put the company in good stead going forward as well.

Finally, another interesting tech business, a company called Audinate Group Ltd (ASX: AD8). This is a company which has delivered some very good revenue growth numbers. It's not profitable just yet but in time, it's expected that it will turn profitable. They're looking to target $100 million of earnings by 2025, up from about $46 million in revenue today. That's a business with a long-term growth path. Effectively, they have a protocol, which is embedded into numerous electronics goods and products around the world. It allows those pieces of equipment to communicate without the need for cords. Just think about outdoor entertainment, sporting events, concerts, that sort of thing. A lot of the technology is used in those places but basically, 80% or 85% of new electronics hitting the market from brands like Toshiba, Bosch for instance, all embed Audinate's protocol.

I think, in time, they're going to not only continue to outperform their opposition but I think the adoption rate is about 15 times the nearest competitor — it's got a significant competitive advantage there. They're also now looking to diversify away from a pure reliance on the audio-digital space to the visual-digital space and that also will open up an untapped market for them.

MF: I'm an Audinate shareholder myself and, I tell you what, it was in some strife back in May but it's recovered really well since, hasn't it?

MW: Yeah, they were caught with a bit of a negative update towards the beginning of the year. They're one of these businesses who have an enormous order book, so there's enormous demand in place but they were struggling to meet that demand. They were struggling to get supply of certain chips that they required and they were one of the many victims globally that suffered from the freezing up of the microchip market and the delays in shipping, et cetera. 

But a lot of that has now been worked through and the company is starting to really ramp it up and be able to overcome some of those hurdles they were facing earlier in the year.

Fingers crossed it can recover back towards that $10 mark, where it got to briefly a few months ago. I think it's a good long-term play [with] almost an unregulated monopoly in its space.

The post If you must buy now, here are the 3 ASX shares to grab: expert appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) is down another 1.38% today at the time of writing.

I should point out that just because something has fallen in price doesn't automatically mean that it's better value. For example, an ASX share's prospects could have worsened, leading investors to rightly reduce their expectations of the company in the future.

In my opinion, the below three businesses look very interesting at the current levels.

Johns Lyng Ltd (ASX: JLG)

This business describes itself as "Australia's leading integrated building services provider, delivering building, restoration, strata and energy services nationally and internationally. The group's core business is built on its ability to rebuild and restore a variety of properties and contents after damage by insurable events including: impact, weather and fire events."

It has clients that include major insurance companies, insurance brokers, loss adjusters, commercial enterprises, local and state governments, body corporates/owners' corporations, and retail customers.

At the time of writing, the Johns Lyng share price has fallen almost 13% today and it's down 37% in the year to date.

The business gave an update today and explained its CEO has sold four million shares to fund his relocation to the US as well as the purchase of a home there, along with tax liabilities. CEO Scott Didier still owns 19% of the business.

The business has reaffirmed its FY23 guidance that it's expecting 'business as usual' (BaU) revenue to rise 27.4% to $930.4 million and that BaU EBITDA could rise by 43.3% to $93 million.

I think this business has plenty of growth potential because of its increasing exposure to weather events such as storms and floods, and because it's growing its presence with its existing and new clients.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is an ASX tech share that I believe has a compelling future. It offers digital donation tools and church management software for church organisations in the US. The business started off by targeting large and medium churches but it's now trying to win over small churches as well.

The ASX share recently announced it has won the US Army Chaplin Corps as a customer. The army will use a tailored Pushpay software and apps solution for its 51 ministries around the world.

I think this business can benefit from the ongoing adoption of digital payments while growing profit margins thanks to operating leverage.

Another thing to keep in mind is that private equity group BGH Capital may still be interested in buying the business, according to reporting by the Australian Financial Review.

Since the beginning of 2022, the Pushpay share price is down almost 40% over the past year, so I think it could be an opportunity at this lower price.

Audinate Group Ltd (ASX: AD8)

The Audinate business offers the Dante IP networking solution, which claims to be a worldwide leader of AV signals. It works by replacing analogue cables and is used extensively in the professional live sound, commercial installation, broadcast, public address, and recording industries.

I think that the Audinate share price looks much cheaper after falling around 7% today and it's down 30% since 5 August 2022.

Investing in worldwide leaders can make a lot of sense, particularly if they're growing quickly. The ASX share's FY22 revenue rose 33.4%. It said it's entering FY23 with a backlog and software revenue run-rate to support revenue growth in US dollar terms in the "historical range".

I'm also excited by the progress it's making with the video side of things. Video revenue is expected to be at least US$3 million in FY23.

The post Share market sell-off: 3 top ASX shares to buy now appeared first on The Motley Fool Australia.

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

Audinate Group Limited (ASX: AD8)

The first small cap ASX share for investors to look at this week is Audinate.

It is the leading digital audio-visual networking technologies provider behind the Dante audio over IP networking solution.

The company highlights that this solution is the worldwide leader and used extensively in the professional live sound, commercial installation, broadcast, public address, and recording industries. Dante can replace traditional analogue cables by transmitting perfectly synchronised AV signals across large distances to multiple locations at once, using just an ethernet cable.

UBS is a big fan of the company. Last month, the broker put a buy rating and $10.20 price target on Audinate's shares. This implies potential upside of over 20% for investors from current levels.

Bigtincan Holdings Ltd (ASX: BTH)

Another small cap ASX share for investors to look at this weekend is Bigtincan.

It is a growing provider of enterprise mobility software to sales and service organisations. This AI-powered sales enablement automation platform is designed to allow sales representatives to more effectively engage with customers.

It appears to work well judging by its growing customer base, which includes the likes of Nike, Guess, Prudential, and Starwood Hotels, and strong annual recurring revenue growth. The latter grew 126% to $120.1 million in FY 2022.

Morgan Stanley remains very positive on the company's outlook and is expect further strong growth in FY 2023. So much so, it currently has an overweight rating and $1.15 price target on its shares. This is more than double its current share price.

The post 2 exciting small cap ASX shares analysts rate highly appeared first on The Motley Fool Australia.

The Audinate Group Ltd (ASX: AD8) share price is dropping in midday trade on Monday amid the company releasing its FY22 results.

The audio-visual networking company's share price is currently $8.79, a 3.72% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.83% today.

Let's take a look at what Audinate reported to the market.

Audinate reports revenue and earnings boost

Highlights of Audinate's FY22 results include:

• Earnings before interest, tax, depreciation, and amortisation (EBITDA) lifted 40.9% on FY21 to $4.3 million
• Net loss after tax increased 29.5% on FY21 to $4.457 million
• Revenue lifted 38.7% on FY21 to $46.3 million
• Gross profit margin of 74.7%, down 2.2% on FY21
• No dividend declared

What else did the company report?

Audinate said the directors consider EBITDA to reflect the "core earnings" of the group. The company said the EBITDA and revenue results were a record for the company.

However, the gross profit margin fell due to higher rare material costs including spot inventories, according to the company.

Operating expenses also jumped 34.9% to $30.3 million while employee costs rose by $6.1 million with 43 more staff being added to the team.

Sales and marketing expenses also lifted $2.6 million on the previous financial year. As COVID-19 restrictions eased, trade shows and business travel increased, the company said.

Meantime, administration and other costs lifted by 28% to $3.8 million. This was largely attributed to the $0.5 million costs related to the company's Silex Insight acquisition.

Also reflected in the result was the loss of government COVID-19 subsidies. In FY21, Audinate received $0.8 million from the government.

However, major revenue drivers, the company's chip cards and modules (CCM) and software segments, experienced growth in FY22. This revenue boost was driven by unit product growth, price increases to preserve margins, and more revenue from the Silex acquisition.

Management comment

Commenting on the results, CEO Aidan Williams said:

We are very pleased that Audinate has been able to deliver compound annual growth (CAGR) in US$ revenue of 28% over the last two years.

During this period the business has experienced COVID related impacts, initially to demand and then to supply chain, but showed resilience, maintained margins, and grew revenue strongly.

What's ahead?

Audinate said the company's headcount of 178 is "the foundation" for doubling revenue in the medium term.

In FY23, Audinate has plans to add 10% more people to its team, with a focus on the Philippines.

Despite record demand, Audinate expects supply chain uncertainty to continue into the first half of FY23.

The company will focus on video and target revenue of US$2 million or more in FY23.

The professional AV industry is forecast to grow 11% to $263 billion in the calendar year 2022, and up to $351 billion by 2027.

Audinate share price snapshot

The Audinate share price has declined 15% in the past year but is holding its own year to date, gaining around 1%.

But in the past month, Audinate shares have climbed about 3%.

For perspective, the benchmark ASX 200 index has lost 6% in the past year.

The post Audinate share price slides despite record revenue and earnings appeared first on The Motley Fool Australia.

With the S&P/ASX 200 Index (ASX: XJO) bouncing back 8.8% over the past 50 days, the hottest question for investors right now is whether we are past the bottom.

However, experts have always warned that trying to time the market is a mug's game. Not even professionals can do it successfully.

It's a different matter for individual ASX shares though.

When you focus on just one stock, one can estimate whether there has been a turnaround after assessing the company's financials, external drivers, and investor behaviour.

Keeping this in mind, Fairmont Equities managing director Michael Gable named three ASX shares this week that he thinks are on the way up:

Rocketing upwards even as the market was tanking in June

Digital audio networking provider Audinate Group Ltd (ASX: AD8) has seen its share price climb a spectacular 73% since its 11 May trough.

This is a great sign for Gable.

"It bottomed in May. The market bottomed in June," he told Switzer TV Investing.

"If you see a stock that's bottomed and heading higher well before the rest of the market… you're better off buying something like this because it's already outperforming the market."

It seems everyone is loving Audinate right now.

According to CMC Markets, all four analysts that cover it rate the stock as a strong buy.

Last week, The Motley Fool reported Morgan Stanley had a buy rating for Audinate with a price target of $9, which has already been met.

The company is due to release its financials on 22 August.

Great result, recovery well underway

After losing 44% for the year until 17 June, REA Group Limited (ASX: REA) shares have since rallied to boost the company's value by a third in just a few weeks.

The stock is sensitive to interest rate fears, not just as a member of the technology sector, but because of its exposure to real estate.

Gable now feels like the turnaround is in place.

"Mid-June, everyone was pricing in silly interest rates. What they're pricing now isn't so silly," he said.

"It's starting to make sense that we should get a bit of a recovery here."

Another positive is that REA shares have shown decent resilience during a tough time for growth shares, according to Gable.

"The good thing is it hasn't dropped as much as some other tech stocks."

Goldman Sachs, The Motley Fool reported, is a fan of REA's financials this week and also rated the stock as a buy.

"Overall we thought the REA result, commentary and cash performance was positive."

'BHP has bottomed out' 

Mining giant BHP Group Ltd (ASX: BHP) is one that the Fairmont team has recently bought into.

The share price has gained about 7.8% since a 17 July trough.

"I think BHP has bottomed out. It's really moving along quite nicely."

The company this week proposed to acquire OZ Minerals Limited (ASX: OZL). Although the offer was promptly declined, Morgans doesn't think that's the end of the story.

"If nothing else, this development should reduce any concern that BHP might have been considering a larger, more transformative acquisition," stated its analysts.

"There has been a consistent fear from some that history would repeat itself and BHP eventually [becomes] attracted to a +$100 billion acquisition/merger at a high point in the cycle. Instead, BHP has remained on-strategy and focused."

The post 3 rising ASX shares to buy that have passed the bottom: expert appeared first on The Motley Fool Australia.

Share prices are always changing and updates are regularly flowing from businesses. This can change whether experts think they are a buy, hold, or sell.

No one can truly know what a share price is going to do next week or next month. But, investors can make a judgement of whether they believe a share price is undervalued or not.

Brokers like to put a 'price target' on a business. That's where the broker thinks the share price will be in 12 months' time.

Audinate Group Ltd (ASX: AD8)

Audinate is a business that offers the Dante IP networking solution. It's described as the worldwide leader and is "used extensively in the professional live sound, commercial installation, broadcast, public address and recording industries". Dante replaces traditional analogue cables by transmitting synchronised AV signals across large distances to multiple locations at once, using just an ethernet cable.

The broker Morgan Stanley currently rates Audinate as a buy, with a price target of $9. It also wants to see the company's full FY22 result.

But it noted the preliminary numbers for FY22 from the ASX share and believes this bodes well for FY23.

Audinate reported that revenue was up 33.4% to US$33.4 million. The gross profit margin was 74.7%. FY22 earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be between A$3.8 million to $4.3 million (up from $3 million in FY21).

Improved chip supplies allowed unmet demand from the FY22 third quarter to be delivered in the FY22 fourth quarter, the company said.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel is one of the world's largest businesses specialising in corporate travel.

The broker Macquarie recently rated the ASX share as 'outperform' with a price target of $20.80. That's a potential upside of around 10%.

Macquarie recognises the sector is recovering from COVID-19 impacts. However, there are also some issues such as more expensive plane tickets and airlines reducing their number of flights.

The broker thinks that the ASX share has a significant number of clients, such as in healthcare and government, that should continue to need the company's services.

Macquarie thinks that Corporate Travel Management's earnings are going to jump in FY23.

Based on the profit estimate for the 2023 financial year, the Corporate Travel share price is valued at 25 times FY23's estimated earnings, according to Macquarie.

The post Brokers just rated these 2 ASX shares as buys for August appeared first on The Motley Fool Australia.

The Audinate Group Ltd (ASX: AD8) share price is surging today after the company reported its preliminary results for FY22.

The technology company's shares are currently up 5.42% at $8.75 apiece. However, they were earlier trading for $9.10, a 9.64% gain. For perspective, the S&P/ASX 200 Index (ASX: XJO) is lifting 0.70% while the S&P/ASX All Technology Index (ASX: XTX) is currently up 2.52%.

So what did the Audinate Group report in these results?

Audinate share price up as revenue jumps 33%

Highlights of the Audinate unaudited results for FY22 include:

• Revenue of US$33.4 million, up 33.4% from US$25 million in prior year
• Australian dollars unaudited revenue of $46.3 million, up 38.7% from FY21
• Predicted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $3.8 million to $4.3 million, up from $3 million in FY21
• Gross profit margin of 74.7%, down from 76% in FY21

What else did Audinate report?

Underpinning this large increase in revenue was better than expected chip supplies in late quarter four. This led to a "strong" finish to the financial year.

Due to a boost in chip supplies, unmet demand from the third quarter was delivered in the fourth quarter of FY22.

Further, the company was able to deliver some of Q1 FY23 demand earlier than expected. The higher variation in the US dollar compared to the Australian dollar also helped boost revenue in Australian dollar terms.

Audinate said gross profit margin was in line with expectations, despite spot inventory cost pressures.

Commenting on the results boosting the Audinate share price today, co-founder and CEO Aidan Williams said: "It is particularly satisfying to have delivered very strong revenue growth, despite a challenging operating environment over the last 12 months."

What's ahead?

Audinate said it expects supply chain disruption and economic uncertainty to continue in FY23.

Commenting on the future outlook, Williams said:

We continue to operate on a cautious and prudent footing.

We look forward to providing a full run-down of the FY22 results and expectations for the year ahead when we release our financial results at the end of August.

Audinate will deliver its full FY22 results on 22 August.

Audinate share price snapshot

The Audinate share price has fallen just over 1% in the year to date, while it has lost around 7% in the past 12 months.

For perspective, the benchmark ASX 200 has shed nearly 7% in the past year.

Audinate has a market capitalisation of about $3.8 billion based on the current share price.

The post Audinate share price soars 5% as revenue thrives appeared first on The Motley Fool Australia.

As we near the end of the financial year, many investors are watching the ASX All Ords with apprehension.

The All Ordinaries Index (ASX: XAO) has been on a downward trend in June, shedding nearly 625 points (down 8.4%) so far this month. But amidst all the carnage, some insiders are buying up ASX All Ord shares at a discount.

This could be a promising indicator, considering these are the people that should know the business best. If insiders are comfortable accumulating shares, maybe there's a disconnect between the share price and the underlying business.

Seeing value in these ASX All Ord shares

Audinate Group Ltd (ASX: AD8)

The first ASX All Ords share in our list is Australian digital audio technology company, Audinate. It appears the market is not hearing the positive aspects of the business. In FY21, the Dante software maker eclipsed its pre-COVID-19 revenue, reaching $33.4 million. Although, the company's latest FY22 update suggests revenue growth may not be high, with forecasts of above $30 million.

However, Audinate chair David Krall decided to buy $134,600 worth of Audinate shares on 1 June 2022. The purchase takes the board members holding to 500,000 shares worth a total of $3.29 million at the time of writing.

Polynovo Ltd (ASX: PNV)

There is plenty going on for this dermal regeneration medical company. Despite Polynovo achieving 40% revenue growth in the last 12 months and turning profitable, this ASX All Ord share is one of the most heavily shorted companies on the market. In addition, the next quarterly rebalance will see Polynovo booted from the S&P/ASX 200 Index (ASX: XJO).

Yet, Polynovo chair David Williams has continued to relentlessly buy shares in the medical device company. On 6 and 7 June, Williams added a further $284,123 worth of shares to his name. This takes his total purchases above $5.1 million since the beginning of May this year.

Dicker Data Ltd (ASX: DDR)

In its recent first-quarter FY22 update, Dicker Data posted impressive increases in its revenue and net earnings. Though, the market has not changed its sentiment on the technology distribution company, with shares down nearly 22% year-to-date.

Clearly, chief operating officer Vladimir Mitnovetski sees the current share price of this ASX All Ords share as an opportunity. On 7 June, the executive director acquired 2,500 shares in the company for $29,500.

Notably, the company is currently offering a dividend yield of 4% based on its current share price.

The post Buying the dip: 3 ASX All Ord shares insiders are loading up on appeared first on The Motley Fool Australia.

It's getting closer to the end of the 2022 financial year. Experts are considering whether some previous ASX share market darlings are compelling investments after all of the volatility this year.

Lower share prices mean that investors can now buy slices of businesses for a cheaper price.

While current uncertainty is weighing on the market, with things like supply chain difficulties and the flow-on effects of the Russian invasion of Ukraine, experts have identified some businesses that look like opportunities.

Audinate Group Ltd (ASX: AD8)

Audinate is one of the ASX shares that is well-liked by brokers. Broker UBS rates the business as a buy, with a price target of $9.85. That implies a possible rise of more than 35% over the next year.

The business developed Dante, an IP (internet protocol) networking solution that replaces traditional analogue cables with a single ethernet cable. It's used by sectors like professional live sound, commercial installation, broadcast, public address, and recording industries.

The business has seen its share price crumble in 2022, dropping by around 20%.

However, the company's recent trading update spoke of positive signs.

At the end of April 2022 it reported that demand for Dante products remained strong. So much so, it expects sales orders to be fulfilled throughout the rest of FY22 and FY23. The total backlog of sales orders has increased. And the company's ability to fulfil orders is improving due to an increase in the supply of key chips.

Audinate recently said that trading conditions experienced in March and April (mentioned above) had continued in May. The ASX share was expecting revenue for FY22 to exceed US$30 million. However, it continues to manage a challenging supply chain environment.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle is a business that invests in funds management businesses. It helps them grow by allowing the fund manager to focus on the investing side of things.

The ASX share provides services like seed funds under management (FUM) and working capital, distribution and client services, compliance, finance, legal, technology and other business infrastructure.

The Pinnacle share price has dropped by over 50% since the start of 2022. Brokers believe this valuation represents good value for investors, including UBS with a price target of $12.65. That suggests a possible rise of more than 60%.

The broker thinks that despite the challenges facing the investment industry, the business looks attractive over the long term.

Its latest quarterly update for the three months to 31 March 2022 showed FUM of $91.4 billion. That's an increase of 2.2% from $89.4 billion.

The ASX share is looking to add new asset classes and investment strategies to its portfolio, diversifying sources of revenue and helping further growth.

Pinnacle said that it's prepared for, and seeking, further expansion opportunities. It's committed to taking advantage of the "significant" offshore opportunity to evolve into a global multi-affiliate by exporting its model.

According to UBS, the Pinnacle share price is valued at 19x FY22's estimated earnings.

The post Are these 2 compelling ASX shares buys in June 2022? appeared first on The Motley Fool Australia.

ASX tech shares are deep in the red today but the Audinate Group Ltd (ASX: AD8) is a notable exception.

Shares in the audio/video networking group are rallying 1.85% during late afternoon trade to a three-month high of $7.17, having earlier gone as high as $7.28.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is tumbling 1.4% as other ASX tech names lead the loss. The WiseTech Global Ltd (ASX: WTC) share price is down 4.94%, the Block Inc (ASX: SQ2) share price is sinking 2.85% and Altium Limited (ASX: ALU) shares are falling 2.4%.

Audinate share price jumps as ASX tech shares tumble

The interest rate hike by the Reserve Bank of Australia may be weighing on investor sentiment. But the Audinate share price is bucking the trend as Morgan Stanley reacted to the company's trading update yesterday.

The market was a little unsure what to make of the company's guidance that FY22 revenue would exceed US$30 million as its shares bounced between gains and losses on Monday.

But there's little doubt in Morgan Stanley's mind that Audinate is a buy as the broker reiterated its "overweight" call on the shares.

Record quarterly sales

Morgan Stanley noted that at US$30 million, Q4 FY22 sales would have jumped 26% to US$8.7 million. That far exceeds consensus forecast of $7.2 million for the quarter and would mark a new record for Audinate.

The previous quarterly sales peak was Q1 FY22 when sales increased 14.5% to US$7.6 million.

The broker added:

We noted 3Q22 gave confidence that AD8's revenue had troughed on improving supply and product mix, but we underestimated extent of 4Q rebound. Today's guidance should also alleviate any investor concerns on demand – industry demand remains elevated, in part driven by a rebound in live [performances and events].

Drivers behind the sales rebound

One of the factors that drove the better-than-expected recovery in Q4 sales is Audinate's success in aggregating customer demand and lobbying chip manufacturers for supply. This allowed the company to ramp up production of its equipment from March onwards.

Audinate was also making headway in switching customers to its software solutions from its hardware offering. This not only overcomes the global chip supply crunch but will help group margins.

The launch of new products to replace existing hardware is the third factor that contributed to the rebound in sales.

What are Audinate shares worth?

Further, the company's strong balance sheet should also help support the shares. It has enough cash for more than four years, according to Morgan Stanley.

The broker's 12-month price target on the Audinate share price is $10.50 a share.  

The post Why is Audinate outperforming other ASX tech shares today? appeared first on The Motley Fool Australia.

The Audinate Group Ltd (ASX: AD8) share price is see-sawing today, as the company releases its latest trading update forecasting a jump in revenue.

The audio visual networking company is expecting FY22 revenue to exceed US$30 million versus the US$25 million from the previous year.

Investors appear torn by the news with the Audinate share price flip-flopping between gains and losses. It's currently up 0.43% at $7.03, after bouncing from red to green and back every 30 minutes throughout trade on Monday. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has shed 0.4%.

Muted response from the Audinate share price

Management noted that trading conditions in March and April have continued through May. The company had been hit by chip shortages in the first two months of calendar 2022, which crimped sales.

But Audinate managed to build up its inventory of chips used in its Brooklyn and Broadway products in March.

This resulted in strong ongoing grading conditions in April. Although, gross margins could be negatively impacted by the additional purchase of the chips.

The company said in its ASX announcement:

We continue to actively manage a challenging supply chain environment. Audinate will use the upcoming InfoComm tradeshow 1 in Las Vegas from 8th-10th June 2022 to brief our manufacturing customers and end-users on the actions we have been taking to manage and mitigate chip shortages.

High growth hurdle

The Audinate share price could be facing pressure as some investors may have been hoping for more than a 20% plus increase in revenue. After all, the ASX tech company is in a high-growth sector.

But management hasn't quite stated how much above US$30 million sales could hit. Also, the weaker Australian dollar could help as well, with the exchange rate around 4% better than at last year's results.

Can the Audinate share price overcome supply chain headwinds?

Audinate has also implemented strategies to overcome the global chip shortage challenge. It's lobbying its strategic chip making partners to increase allocation of chips for its products. These partners include Xilinx, NXP and SkyWorks (formally Silicon Labs).

The company has also announced the new generation of products to replace its existing offering. This includes Brooklyn 3, which replaces Brooklyn 2; and Fremont 3, the replacement for the Dante AV Fremont module.

Lastly, Audinate is focusing on ramping sales of its software solutions, such as Dante Embedded Platform and Dante IP Core.

The Audinate share price has not been spared from the recent tech sell-off despite its dominant position in its industry. Audinate shares have lost close to 10% over the past year, while the ASX 200 has shed less than 1%.

The post Audinate share price stumbles on trading update appeared first on The Motley Fool Australia.

The Audinate Group Ltd (ASX: AD8) share price is climbing today following the company's release of its trading update.

At the time of writing, the media networking solutions provider's shares are swapping hands at $6.17, up 9.40%.

What did Audinate announce?

Investors appear pleased with the company's latest performance, driving up the Audinate share price this morning.

According to its release, Audinate reported robust growth for the March quarter, achieving unaudited revenues of US$6.5 million. While the result reflected a 7.1% decrease over the prior corresponding period (Q3 FY21), management noted it had successfully navigated around the tight chip supply.

As such, supplies of a key chip used in Brooklyn and Broadway products were replenished in March, leading to strong trading conditions in April.

Gross margin stood at 75.8%, although spot inventory purchases are yet to fully flow through to the cost of goods sold.

Audinate stated that while chip supplies continue to be constrained, it has been building its inventory of key chips. Since the end of last year, the company's raw materials inventory balance has increased by $3.7 million.

Supply of Ultimo chips continues to be modest, constraining the number of units shipped but not significantly impacting FY22 revenue.

Furthermore, Audinate advised demand for Dante products remains strong with sales orders to be fulfilled throughout FY22 and FY23.

Its total backlog of sales orders has increased with the addition of video product orders acquired from Silex.

Management pointed out that its ability to fulfil orders has improved due to improved supply of key chips. However, manufacturing risks associated with an uncertain COVID-19 situation in mainland China remain.

Audinate CEO, Aidan Williams commented:

We have navigated what was expected to be the weakest quarter of FY22 and whilst some supply chain risks remain, we are making good progress in filling demand for Dante by replenishing our inventory of chips.

I am also thrilled to have achieved two major product milestones with the release of IFE and our first video software – both are strategically important achievements for the ongoing growth of Audinate.

Audinate share price snapshot

Over the past 12 months, the Audinate share price has lost more than 70%.

When looking at year to date, the company's shares have fared worse, down 36%.

Based on today's price, Audinate presides a market capitalisation of around $434.78 million.

The post Here's why the Audinate share price is rebounding 9% today appeared first on The Motley Fool Australia.

The S&P/ASX All Ordinaries Index (ASX: XAO) is in the red today, down 0.64% to 7,738 points at the time of writing.

The ASX All Ords may be wobbling after the release of official notes from the US Federal Reserve's latest meeting. The notes indicated that bigger interest rate hikes than usual — possibly 0.5% at a time — might be required to curb inflation once the Ukraine-Russia conflict eases, according to reporting by abc.net.au.

Among the drags on the All Ords index today are these three ASX small-cap shares, which have all touched new 52-week low prices.

Accent Group Ltd (ASX: AX1)

The first ASX All Ords faller we're looking at today is fashion footwear retailer Accent. It's trading down 5.35% to $1.56 at the time of writing — its lowest level in a year. This is a long way down from the 52-week high of $3.08 reached in April 2021.

ASX investors haven't heard any news from Accent since 22 February when it released its half-year results. The company said it was "severely impacted" by COVID-19 disruptions with a 72% fall in net profit after tax (NPAT). As my Fool colleague Tristan reported yesterday, UBS rates Accent a buy with a share price target of $2.50.

Cettire Ltd (ASX: CTT)

Next is online luxury goods retailer Cettire, which is currently down 7.42% at $1.06 — a new 52-week low. This ASX All Ords share is now down 78% on its 52-week high of $4.81 reached in mid-November. That was around the time the company announced a direct brand partnership with Staff International and reported strong trading momentum.

Audinate Group Ltd (ASX: AD8)

Lastly, we look at Audinate, which crashed to a new 52-week low of $6.13 in earlier trading. That's a 4% decline on yesterday's closing price of $6.39. It has since rebounded to its current price of $6.22 at the time of writing.

The last lot of price-sensitive news from Audinate came on 14 February when it released its 1H22 results. The audio-visual networking provider delivered strong revenue growth and said it was navigating supply chain issues well. Broker James Gerrish of Shaw and Partners responded the following day by slapping a $12 price target on this ASX All Ords small-cap. He's still keen on the stock today, as my Fool colleague Tony reported.

ASX All Ords recap

The All Ordinaries index is down 2.4% year to date but up 7.8% over the past 12 months.

The post Opportunity knocking? 3 ASX All Ords shares trading at 52-week lows today appeared first on The Motley Fool Australia.

The volatility this year may scare novice investors, but experienced folk know there are plenty of opportunities.

After the earlier market plunge amid inflation panic and a war in Ukraine that's still in progress, the S&P/ASX 200 Index (ASX: XJO) has recovered most of its losses and could even set new records this month.

"Over the last 10 years the average gain for April, usually the second strongest month of the year, is +2.7%, which would take us to a new milestone high," said Market Matters portfolio manager James Gerrish.

"[That's] Market Matters' call since the start of 2022, with the 'fun' just about to start in earnest."

Gerrish told his newsletter subscribers that it's currently an "exciting time" for active investors.

"We fully expect to rotate between cyclical and defensive stocks, growth and value sectors and high and low cash levels, to name a few, through the remainder of the year."

One rotation candidate is the technology sector, which has been brutally sold off the past few months. With valuations now dirt cheap, there could be some upside.

Excellent risk-reward

In response to reader questions, there were a couple of tech ASX shares that Gerrish found value in:

• Audinate Group Ltd (ASX: AD8)
• NextDC Ltd (ASX: NXT)

Data centre operator NextDC, according to Gerrish, looks like a one-way bet.

"We actually think NextDC looks great from a risk-reward perspective with stops below $11, less than 8% downside with significant upside."

The NextDC share price closed Wednesday at $11.81.

The team at Citi is also bullish on the stock, rating it as a "buy" with a price target of $14.55.

According to CMC Markets, 12 out of 17 analysts rate NextDC as a "buy". Eleven of them even label it as a "strong buy".

Meanwhile, audio tech provider Audinate has seen its shares plummet almost 40% since mid-December as it struggles with supply constraints.

"We haven't had an update from the company since [February] around chip supply," Gerrish said.

"The stock has continued to drift lower with chip supplies likely to be weighing on investors confidence along with the stock being associated with the out-of-favour growth sector."

He was asked how Audinate shares might perform in a climate of increasing inflation.

"A rising inflation environment has been a headwind for virtually all growth stocks and this is likely to continue until inflation and bond yields reach a new period of equilibrium.

"We believe this can happen shortly on a short-term basis."

Four out of five analysts surveyed on CMC Markets rate the stock as a "strong buy".

Medallion Financial managing director Michael Wayne has been a long-time fan of the company, and has kept his faith through the stock price plunge.

"The fact that it's basically a monopoly in that space at the moment, growing many multiple times the nearest competitor, we think it's worth persisting."

Audinate shares finished Wednesday at $6.32.

The post 2 ASX tech shares that are cheap enough to buy now appeared first on The Motley Fool Australia.