Small-cap specialist Elvest fund beat its benchmark by 150 basis points in February.

Both ASX shares and bonds "sold off sharply" over the month, according to the portfolio managers, which wiped out some of the significant gains from January.

"Sentiment worsened in response to a more hawkish tone set by central banks, including the RBA, suggesting interest rates will remain higher for longer to tame inflation," the Elvest team stated in a memo to clients this week.

Amid the macroeconomic doom and gloom, there were some gems found in reporting season.

"A subset of small caps continue to thrive, and the fund is well positioned to take advantage of any further volatility that may arise in coming months."

The Elvest team revealed three of its ASX shares that affirmed its conviction with impressive market updates:

Revenue up, cash flow up: what more can you ask for

Insurance repairer Johns Lyng Group Ltd (ASX: JLG) is the Elvest fund's third-largest holding, and that faith will continue after a pleasing update.

"Johns Lyng delivered a large revenue and cash flow beat, driven by higher catastrophe (CAT) work resulting from the 2022 flooding events in NSW and VIC," read the Elvest memo.

"Management upgraded FY23 guidance for revenue and EBITDA by 11% and 5.5%, respectively."

Despite all the recent La Nina catastrophe work, the Johns Lyng share price is 21% lower than it was 12 months ago, providing an attractive entry point for investors.

Big second half coming for this software company

Mining software maker RPMGlobal Holdings Ltd (ASX: RUL) presented "a solid first half result", according to the Elvest analysts.

"[RPMGlobal] reiterated FY23 EBITDA guidance of $14.2 million, up 215% on FY22," read the memo.

"RPMGlobal has a large pipeline led by its mobile asset maintenance solution, AMT, which enjoys a dominant market position."

Similar to Johns Lyng, the RPM stock price is about 20% down on a year ago.

The Elvest team claimed that a nice little boost is coming its way for the next financial update.

"As most of RPMGlobal's software is billed after 31 December, cash flow has a strong second half skew."

The tech stock remains Elvest fund's fifth-largest holding.

150% boost in revenue, plus more to come

Helloworld Travel Ltd (ASX: HLO) has broken the hearts of many buy-and-hold investors, with its share price halving over the past five years.

But the travel agent has enjoyed a phenomenal 71% rise so far in 2023.

It's not a surprise for the Elvest team though.

"Helloworld swung into profitability in the first half of FY23 on 150% higher revenues," read the memo.

"There remains significant pent-up demand, especially among older (mortgage-free) travellers, which is Helloworld's primary customer cohort."

The Elvest fund managers noted the company improved its earnings forecast.

"Management upgraded FY23 EBITDA guidance by 25% (at the midpoint), to a range of $28 million to $32 million."

The post 3 small-cap ASX shares flying high after reporting season: Elvest appeared first on The Motley Fool Australia.

With a turbulent world as background, the performance and outlook of ASX companies has never been under more scrutiny than this current reporting season.

Two particular businesses that revealed their cards this week showed such promise in its reporting that some experts reckon they're ripe to buy right now:

Cashing in from 'click and collect'

HomeCo Daily Needs REIT (ASX: HDN) is not a household name among investors by any means, but it does have a $2.6 billion market capitalisation.

The trust is named "daily needs" because it owns commercial real estate to rent out to tenants like large-format retailers, convenience stores and gyms.

Morgans co-head of research Fiona Buchanan was pleased with how it reconfirmed its previous 2023 financial year guidance.

"HomeCo Daily Needs' portfolio remains well positioned with resilient cash flows and continues to be a beneficiary of accelerating click & collect trends," Buchanan said on the Morgans blog.

"+80% of tenants are national and 73% of tenants offer click & collect, reinforcing the importance of assets being able to support 'last mile logistics'."

She noted how the assets are in "strategic locations with strong population growth".

The HomeCo Daily Needs share price has dipped 8.6% over the past 12 months, but like most real estate trusts it pays out a handsome income.

"HomeCo Daily offers investors an attractive yield of +6% underpinned by contracted rental income and has a large development pipeline."

Buchanan's team thus has an add rating on the stock.

Post-pandemic recovery going gangbusters

Helloworld Travel Ltd (ASX: HLO) was a basket case for investors for many years, but it seems to have cleaned up its act.

The travel agency sold off its corporate business last year, and the latest results were the first half-year to report since that transaction.

Morgans senior analyst Belinda Moore liked how its post-pandemic recovery is taking place faster than anticipated.

"Helloworld's 1H23 result beat our forecast," Moore said on the Morgans blog.

"The strength of its EBITDA margin was the key highlight and is already above pre-COVID levels."

She noted how profitability is improving quarter-on-quarter, showing how "travel demand continues to recover in ANZ despite the current macroeconomic uncertainty".

And there is further upside to come.

"Helloworld expects that bookings volumes will continue to increase as airfares normalise in line with the return of airline capacity, tour operators continue to onboard staff to meet demand and confidence levels amongst the travelling public return to pre-COVID levels."

The inbound and wholesale business units have also recovered back to pre-pandemic levels.  

"Helloworld sees further opportunities for these businesses with the China market reopening and expects strong growth into the foreseeable future."

The Morgans team has an add rating for the travel agency, although Moore reminded investors to be patient with this one.

"With a strong balance sheet, Helloworld is well placed to capitalise on the pent-up demand for leisure travel and acquisition opportunities," she said.

"Helloworld is materially undervalued trading on a recovery year (FY25) EV/EBITDA multiple of only 3.1x."

The Helloworld share price is down 1.7% over the past 12 months, and is half of what it was five years ago.

The post Experts name 2 ASX All Ords shares to buy after their excellent results appeared first on The Motley Fool Australia.

All Ordinaries Index (ASX: XAO) share Helloworld Travel Ltd (ASX: HLO) is taking off on Monday.

It comes as the company posts its earnings for the first half, detailing three times more transaction volume than the prior comparable period (pcp).

Right now, the Helloworld share price is 5.39% higher than its previous close, trading at $2.15.

However, it peaked at $2.32 earlier today – marking a 13.7% jump.

All Ords share Helloworld soars on strong earnings

Here are the key takeaways from the company's results:

• $1.2 billion of total transaction volume (TTV) – up 209% on the pcp
• Revenue from continuing operations reached $73 million –  a 151% jump
• $13 million of earnings before interest, tax, depreciation, and amortisation (EBITDA) – up from a near-$8 million loss
• Net profit after tax (NPAT) came to $1.6 million – up from a $15.2 million loss
• 2 cent per share fully franked interim dividend declared

Is travel back, baby? It looks likely considering the huge jump in TTV Helloworld posted for the last half.

Of that, $1 billion came from Aussies –  a 194% increase – and $178 million from New Zealanders – up 359%.

The company's Fijian operations also saw 22.3 times more TTV last half while its transport, logistics, and warehousing posted a 106% jump on revenue amid a return of large entertainment events.

It ended the period with $83.8 million of cash and no debt.

What else happened last half?

Last half was a busy period for the All Ords share.

The company said demand for the services of its network agents has continued to outstrip agent availability. Though, it notes many consultants who left the industry through COVID-19 are now looking to return.  

Finally, Helloworld underwent its first post-pandemic brand campaign last half.

What did management say?

Helloworld chair Garry Hounsell commented on the news driving the All Ords share sky high today, writing:

[TTV growth] reflects the strong demand from the travelling public, domestic and international borders returning to normal, Helloworld's strong product offering, and the incredible efforts of our agency networks to service their customer base.

Booking volumes are expected to continue to increase as prices normalise and capacity returns with airlines and tour operators continuing to on-board further resources to meet demand.

What's next?

The company expects to post full-year underlying EBITDA of between $28 million and $32 million.

It also revealed its TTV came in at $212 million in January – a 290% jump on the same month of last year.

Helloworld share price outperforms the All Ords in 2023

Helloworld's stock has been flying high lately.

The share has gained 62% since the start of 2023 while the All Ords has lifted 6%.

Over the last 12 months, however, the stock has fallen 12% while the index has gained 0.5%.  

The post Guess which ASX All Ords share is rocketing 5% after sales tripled appeared first on The Motley Fool Australia.

Certainly businesses need to know what they're doing to flourish, that much is obvious.

But sometimes external factors can push a company's fortunes into the stratosphere.

It could be that its products and services see a huge rush in demand because of an unexpected event. It might be that the economic forces align just in the sweet spot for the business.

The company happens to be in the right place at the right time.

Is this fair? 

Plenty of otherwise excellent businesses go broke because of unexpected external factors — such as a pandemic. So you have to take the good with the bad.

The Elvest Fund this week mentioned two of its holdings that currently have the opportunity to make much hay while the sun shines:

Travel is going gangbusters

Yes, interest rates have climbed recently at a frightening speed not seen in a generation. Consumers and businesses alike are tightening their belts.

But visit any airport and you realise how much Australians want to travel at the moment, regardless of how worried they are about their mortgage repayments.

Being trapped in lockdowns and closed borders for two years will do that to you.

There are also external drivers stimulating the travel industry too.

China, after persisting with a zero-COVID policy for three years, reversed its stance late last year after rarely seen mass protests flared up among its fed-up population.

While in the short term this could cause tremendous health problems for the world's largest country, it is a major step in rejuvenating its economy back to something close to normal levels.

These are the two stocks to buy

So which are the two ASX travel shares that the Elvest team thinks are perfectly placed to ride these tailwinds?

"The release of considerable pent up demand coupled with the reopening of the Chinese economy pushed travel related businesses Corporate Travel Management Ltd (ASX: CTD) and Helloworld Travel Ltd (ASX: HLO) higher during the month," its memo to clients read.

Indeed Corporate Travel shares are now 12.5% higher than where they started December. The Helloworld share price has climbed an impressive 21.7% over the same period.

Certainly, there are many other players that can similarly take advantage of the above tailwinds in the travel industry.

But the nature of these two businesses set them up for long-term success, read the Elvest memo.

"With leaner operating structures, healthy balance sheets and rapidly recovering demand for travel services, both businesses are well positioned to grow earnings from depressed levels in the years to come."

The post 2 ASX shares in the right place at the right time right now: Elvest appeared first on The Motley Fool Australia.

1) The stock market continues to dance to the tune of interest rates, with the S&P 500 falling 0.7% on Friday night as investors bet on central banks staying "higher for longer" as they continue to battle stubbornly higher inflation.

"We think the markets are too sanguine on rates after the first quarter," said Cliff Hodge, chief investment officer for Cornerstone Wealth on AFR.

The Federal Reserve meets this week, and is widely expected to hike US interest rates by another 50 basis points. Such a move would lift rates to a 4.25% to 4.5% target range, the highest level since 2007. Good news for savers. Bad news for the economy and share market investors, although much of the coming downturn is arguably already priced into many individual stocks.

2) The market will turn higher in anticipation of better economic news, be that lower inflation and/or central banks pivoting to hold or even cut interest rates in the latter half of next year.

I do not profess to having any great insights or opinion as to what may happen and when, other than to say – stating the obvious – we're much closer to the end of this rate hiking cycle than the start.

Writing in its November monthly update, New Zealand based Pie Funds are "fairly optimistic about the outlook for 2023," partly because they believe inflation and interest rates have peaked, but mostly because "after such a terrible year history shows poor-performing periods are usually followed by strong returns if you look out 12 months."

I love the simplicity of the thinking. No macro. No talk of soft landing versus deep recession. And it comes despite Pie Funds saying a widely expected general economic slowdown or recession "will impact corporate profits, on average, anywhere from 10-40%."

"Based on 15 years of managing client money, I know that investors won't start to return to stocks until at least six months after the bottom. So that means investor sentiment will remain cautious until at least April," said Mike Taylor, founder and chief investment officer.

3) One of Pie's holdings is little-known IPD Group Ltd (ASX: IPG), a national distributor and service provider to the Australian electrical market.

It is one of the few recent IPOs that is trading strongly above its float price, the IPD share price having risen from $1.20 to its current $2.93 in the 12 months since it hit the ASX boards.

"IPD Group held its AGM during the month and confirmed that strong double-digit growth has continued into 1H23 while margins have been maintained. IPD Group exemplifies the style of defensive growth business we look for with structural tailwinds in electrification, market share opportunities as they expand their portfolio of ABB products, and high levels of ownership by management," wrote Pie's Australiasian Growth Fund portfolio manager Michael Goltsman. 

4) There have been many COVID winners turned losers, most obviously in the tech sector. 

You can take your pick as the poster child for the huge round trip some of these stocks have endured, and just how much their share prices have fallen over the past 12 months…

Zip Co Ltd (ASX: ZIP) share price down 86%

PointsBet Holdings Ltd (ASX: PBH) share price down 75%

Megaport Ltd (ASX: MP1) share price down 69%

Airtasker Ltd (ASX: ART) share price down 62%

Kogan.com Ltd (ASX: KGN) share price down 61%

The share prices of all those companies got well ahead of itself, not to mention being aided by healthy doses of irrational exuberance from locked-down and bored retail investors.

Reality has hit, and hit hard, due to slowing or declining growth, excessive valuations and a market no longer willing to fund losses ad-infinitum. 

One sector riding a genuine post-COVID boom is travel, with demand and prices riding high. The Qantas Airways Limited (ASX: QAN) share price is flying high, up 160% from its March 2020 low as continued strength in travel demand has resulted in profit upgrades.

So you'd expect the Flight Centre Travel Group Ltd (ASX: FLT) share price to also be riding high… except it's down more than a third in the past 14 months. Fellow travel agents Corporate Travel Management Ltd (ASX: CTD) and Helloworld Travel Ltd (ASX: HLO) are also on the nose, their share prices down 45% and 50% over a similar period.

Dragging them lower appears to be lower profit margins as airlines, most notably Qantas, announced during the pandemic they would cut commissions paid to travel agents. 

Adding to sector woes are the prospect of a coming economic slowdown, something that traditionally sees consumers cut discretionary spending on luxury items like travel, and less corporate travel as companies cut costs and continue to use Zoom and Teams for their meetings.

In a trading update in late October, Corporate Travel said FY23 is expected to "remain choppy" but is expecting a "full recovery" in FY24, and underlying EBITDA of $265 million. Compared to today's market capitalisation of around $2 billion, that looks neither cheap nor expensive, but about right, especially given much can change over the next two years.

The post Why this one top fund manager is optimistic about 2023, and one little-known IPO that has hit it out of the park appeared first on The Motley Fool Australia.

1) After the euphoria of early last week – with the S&P/ASX 200 Index (ASX: XJO) jumping 3.75% higher on Tuesday followed by another 1.74% on Wednesday – it's hard to find any green shoots, especially after Friday's hotter than expected US payroll numbers, which sent shares sharply slower and bond yields sharply higher.

• "Fears are rising that the global financial system will seize up."
• "JPMorgan CEO Jamie Dimon Expects US Recession in Six to Nine Months"
• "Cathie Wood Warns of 'Serious Losses' in Automobile Debt"
• "Australian Consumer Sentiment 'Deeply Pessimistic,' Westpac Says"
• "A global bond sell-off is gathering pace…"

Even Treasurer Jim Chalmers joined in the chorus, as quoted in The Age…

"It's increasingly becoming the expectation of the global economic community that we could be facing what would be the third substantial global economic downturn in the past decade and a half…"

This inflation shock – and ensuing financial and economic damage – has got some way to run.

On the brightside…

a) We're closer to the end than the beginning, and a lot of the damage to share portfolios has already been done.

b) Stock markets turn before the economy. 

c) Unlike post the COVID Crash, where stock markets roared higher in the blink of an eye, this time you have time on your side… time to research, time to steadily deploy capital, time to wait for AGM updates.

2) Despite all that doom and gloom, despite stocks on Wall Street falling for a fourth day in a row, and despite US futures turning down, in late afternoon trading, the ASX 200 index is flat on the day, a modest gain in the BHP Group Ltd (ASX: BHP) share price saving the day.

Australia is expected to dodge recession, saved once again by high commodity prices. That might save investors in commodity stocks, but does nothing to help those outside that narrow band of companies. For us, the pain goes on.

3) Helloworld Travel Ltd (ASX: HLO) today reaffirmed its FY23 guidance after reporting a "strong first quarter," with all three months of the quarter delivering positive EBITDA.

The year on year comparisons  – total transaction volume was up 352% on the same period last year – are virtually meaningless because last year's trade was severely restricted by the pandemic. 

As ever, it's the outlook statements that provide most value, with Helloworld – stating the obvious – saying travel is improving, adding "despite the economic downturn, travel continues to be regarded as a non-discretionary component of the family budget."

The market reacted with a collective yawn, with the Helloworld share price virtually unchanged on Tuesday, trading at around $2, some way off its pre-pandemic highs of over $6.

The dream of the locked down share traders post March 2020 was a v-shaped recovery in travel stocks like Helloworld and Webjet Limited (ASX: WEB). Yes, like just about every other stock, they jumped nicely off the COVID bottom, but both the Helloworld and Webjet share prices are essentially flat over the last 16 months. 

It remains a long road ahead, with the COVID headwinds now replaced by an upcoming economic downturn. At 13 times forecast EBITDA, Helloworld shares hardly look cheap. 

4) Speaking of economic downturn, although I'd suggest many households haven't directly yet felt the impact of the RBA's interest rate rises, they know there's pain ahead.

JP Morgan CEO Jamie Dimon took it one step further, quoted on Bloomberg as saying he expects "serious" headwinds are likely to push the US and global economies into recession by the middle of next year. Excerpt:

Dimon said the S&P 500 "may have a ways to go" in its decline, and that "it could be another easy 20%." The index is down almost 25% this year. "The next 20% will be much more painful than the first," he told CNBC. "Rates going up another 100 basis points are a lot more painful than the first 100 because people aren't used to it."

Ouch. Dimon's no perma-bear, and as the head of one of Wall Street's biggest and most highly respected investment banks, has seen how such violent moves in markets can lead to something cracking.

"The likely place you're going to see more of a crack and maybe a little bit more of a panic is in credit markets, and it might be ETFs, it might be a country, it might be something you don't suspect."

5) We've already seen some cracks, with the ill-fated inflationary UK budget seeing government bonds (aka gilts) spike higher, resulting in some forced selling by pension funds.

Such unexpected behaviour in what is supposed to be a stable and safe bond market has already had reverberations as far as Australia, with funds managed by both Magellan Financial Group (ASX: MFG) and GQG Partners Inc (ASX: GQG) being hit with redemptions from UK domiciled institutional clients. 

The Magellan share price continues to trade around 9-year lows as it struggles with a brutal cocktail of poor performance, a falling stock market, management changes, a loss of a major institutional mandate, client redemptions, and now this UK panic, the latter being completely outside its control.

Magellan shares currently trade at $10.25 giving the company a market capitalisation of around $1.9 billion. Measures on how far the once mighty Magellan has fallen can be seen from today's valuation metrics based on its last reported results, for the year ended June 30th 2022.

• 2.1 times net tangible assets
• $963 million cash, financial assets and investments
• 4.4 times net operating cash flow, 4.8 times earnings
• Fully franked dividend yield of 17.5%
• No debt

Loathe as I am to consider investing in a business that's clearly struggling at the moment, I've put it on my radar. Should Jamie Dimon's "more of a crack" come to pass, Magellan shares could easily trade at not much more than book value. It wouldn't be the only bargain, but it would probably be one of the higher quality stocks on sale.

The post ASX 200 flat despite top investment banker warning stocks could 'easy' fall another 20% appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) fell in September, but how did ASX travel shares perform in comparison?

Travel shares on the ASX include Qantas Airways Limited (ASX: QAN), Webjet Limited (ASX: WEB) and Flight Centre Travel Group Ltd (ASX: FLT). More ASX travel shares with a market cap over $100 million include Regional Express Holdings Ltd (ASX: REX), Corporate Travel Management Ltd (ASX: CTD) and Helloworld Travel Ltd (ASX: HLO)

Let's take a look at how these travel companies performed in September.

Travel shares fall

ASX travel shares struggled in September. Flight Centre shares slumped 20.56% between market close on 31 August and 30 September. The Qantas share price lost 5.64% in the same timeframe, while Webjet shares fell 13.77%. Meanwhile, the Regional Express share price shed 5.71%, Corporate Travel Management lost 13.71% and Helloworld Travel dropped 8.25%.

For perspective, the benchmark ASX 200 index shed 7% in September.

Travel shares appeared to struggle amid interest rate hikes, recession fears, industry weakness, and travel chaos.

United States travel shares also fell in September. For example, Delta Air Lines Inc (NYSE: DAL) shares lost nearly 10%, while American Airlines Group Inc (NASDAQ: AAL) and United Airlines Holdings Inc (NASDAQ: UAL) shares both descended 7%.

However, Qantas did release some positive news on its performance in September. The company's on-time performance improved in the first two weeks of the month. Flight delays, cancellations and mishandled bag rates all dropped.

Qantas' annual report also shed light on the salary of CEO Alan Joyce. Joyce received a $2.3 million base salary and other benefits in the 2022 financial year, 15% more than FY21.

Flight Centre shares continued to be the most shorted share on the ASX in September. This was despite Goldman Sachs tipping upside for the Flight Centre share price. Goldman Sachs placed a neutral rating and $19.60 price target on the company's shares.

Webjet shares fell despite a broker upgrade. Webjet also provided a strategy update to the market in September. The company noted international flight bookings had improved in 2023. Webjet is planning to increase use of social media and video platforms, reduce paid search advertising and retain marketing spend at 1.5% of time to value (TTV).

The post Did ASX travel shares do well in September? appeared first on The Motley Fool Australia.

Investors are always told to hold for the long run, but sometimes even many years of patience doesn't pay off.

Some businesses are just duds. Or management and staff might be working very hard but for some reason market sentiment is against the stock.

After keeping a close eye on reporting season, Morgans analyst Andrew Tang reckons he's found a couple of long-term losers that are rejuvenated and ready to take off.

That will come as relief for long-time shareholders, or present a ripe buying opportunity for new investors:

Huzzah, this company is finally profitable!

It has been an arduous march for Helloworld Travel Ltd (ASX: HLO) shares.

Even the most patient of shareholders must have gone well grey by now, with the travel agency stock losing 56% over the past 5 years.

Ouch.

But Tang feels like that's all about to change.

"Helloworld's FY22 result beat expectations with the group returning to modest (EBITDA) profitability in the fourth quarter," he said in a Morgans' Best Calls To Action memo.

"Cashflow and the balance sheet were also stronger than expected."

There was something of a catalyst earlier this year when Helloworld sold off its corporate travel division to Corporate Travel Management Ltd (ASX: CTD) in a $175 million deal.

Tang believes this has now made Helloworld shares an absolute bargain.

"Backing out its investment in the corporate travel division from its enterprise value, Helloworld is materially undervalued, trading on a recovery year EV/EBITDA multiple of only 2.9 times."

Management is so optimistic about the future that despite the years of capital loss, a dividend was paid out this time round.

"In a sign of confidence, Helloworld has rewarded shareholders with a 10 cents per share final dividend," said Tang.

"It also provided FY23 guidance which was well above consensus."

'Improving operating leverage' makes for a great 2023

Another atrocious long-term performer is payments terminal provider Tyro Payments Ltd (ASX: TYR).

Growth share fans ploughed into the stock when it listed on the ASX in December 2019 after an initial public offer price of $2.75.

The fintech stock rode as high as $4.38 during those early months, but has disappointed in the three years since.

In fact, currently Tyro shares are down almost 74% from those post-float highs.

Tang noted that in its latest results Tyro's net profit was below consensus, but earnings and financial year 2023 guidance landed above expectations.

"Our key result takeaway was the market had been waiting for TYR to give evidence of improving operating leverage, with FY23 EBITDA guidance of $23 million to $29 million (FY21 $10.5 million) particularly meeting that criteria."

The Morgans team therefore has lifted its earnings forecast for the company by more than 10%, and rates Tyro as a buy.

The post 2 heart-breaking ASX shares finally turning it around: Morgans appeared first on The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) is in the green so far today. At the time of writing, it's 0.52% higher at 7,231 points.

Earnings season has been a busy one with plenty of mixed results. Here are three ASX All Ordinaries standouts that are lifting on their earnings today.

Helloworld Travel Ltd (ASX: HLO)

Shares of Helloworld are up 5.67% to $2.05 apiece at the time of writing.

Investors have rallied the share price higher following a robust set of FY22 results that saw the company return to operational profitability.

This translated to a full-year EBITDA loss from continuing operations of $10.6 million compared to $24.5 million in FY21.

Despite this, the momentum towards the back end of FY22 gave Helloworld confidence in providing FY23 guidance.

It expects a FY23 EBITDA profit of $22-$26 million.

Helloworld shares are up 20% in the past 12 months of trade.

Wisr Ltd (ASX: WZR)

Shares of Wisr were on the move in early trade and have since levelled back to trade in-line with yesterday's closing price.

The non-bank lending company delivered a 118% year-on-year gain in operating revenue with total new loan originations increasing 67% to $611 million.

This saw loan book growth of 103% for the 12 months to $780 million.

As a result, cash EBITDA saw an improvement of 30% to a loss of $7 million, ahead of last year's loss of $10 million.

Zooming out, Wisr shares are down 74% in the past 12 months.

Alcidion Group Ltd (ASX: ALC)

Shares of Alcidion are also cruising along in afternoon trade today, currently up 3.33% to 15.5 cents apiece.

Following its FY22 results, the company that specialises in digital software for healthcare providers has caught a bid as investors evaluate the company's growth trends.

Full year revenue was up 33% year on year to $34 million with total contract value (TCV) of $57.7 million.

This momentum sees Alcidion enter FY23 with more than $28 million in contracted revenue, an 87% gain on the same time last year.

Alicidion shares are down more than 55% for the year to date.

The post 3 ASX All Ords shares lifting on full-year results appeared first on The Motley Fool Australia.

What did the broker say about travel shares?

While Morgans acknowledges that the travel market recovery is taking longer than expected and has reduced its earnings estimates to reflect this, it believes a lot of value has emerged and investors should act before a potential rerating happens.

The broker commented:

Despite travel demand recovering strongly, in recent months the travel sector globally has derated due to concerns about a weak macro outlook. We think share price weakness represents a buying opportunity and see the quarterly reporting season in the US and Europe during July and then the Australian reporting season in August as a catalyst for a rerating.

Which shares is the broker recommending?

Morgans' number one pick in the sector at the moment is Corporate Travel Management Ltd (ASX: CTD). It has an add rating and $25.85 price target on the corporate travel specialist's shares. This compares to the latest Corporate Travel Management share price of $19.67.

In second place is online travel agent Webjet Limited (ASX: WEB). It has an add rating and $6.55 price target on its shares. This compares to the current Webjet share price of $5.50.

Another ASX travel share that the broker is positive on is Helloworld Travel Ltd (ASX: HLO). It has an add rating and $2.72 price target on its shares. This is notably higher than the current Helloworld share price of $1.67.

But what about Flight Centre Travel Group Ltd (ASX: FLT)? Unfortunately, the broker only has a neutral rating and $19.60 price target on its shares. It is expecting Flight Centre's earnings to come in below consensus estimates in FY 2023 due to "limited ANZ international airline capacity, China's strict travel restrictions and the need to rehire and train staff."

The post Top broker names the ASX travel shares to buy before it's too late appeared first on The Motley Fool Australia.

Bullish updates from travel-related ASX shares are putting the wind beneath the wings of the Webjet Limited (ASX: WEB) share price today.

The Webjet share price is up 1.16 at the time of writing, to $6.10, while the S&P/ASX 200 Index (ASX: XJO) is diving 1.24%.

A trading update from Qantas Airways Limited (ASX: QAN) is exciting Webjet shareholders. The airline reported a significant rebound in free cash flow. That's thanks to strong demand for travel following the easing of international border restrictions.

Webjet share price riding higher on Qantas' jetstream

The pickup in sales prompted Qantas to forecast a return to profitability. The airline still expects underlying earnings before interest and tax for FY22 to be in the red. However, underlying earnings before interest, tax, depreciation and amortisation (EBITDA) is tilled to come in at between $450 million and $550 million.

The improved cash position plus the return of the travel bug was enough to convince Qantas to purchase 12 Airbus A350s. The acquisition is part of its Project Sunrise program. The new aircraft will enable Qantas to offer direct flights to Europe and the United States from any city in Australia.

"The board's decision to approve what is the largest aircraft order in Australian aviation is a clear vote of confidence in the future of the Qantas Group," said Qantas CEO Alan Joyce.

"The phasing of this order means it can be funded within our debt range and through earnings, while still leaving room for shareholder returns in line with our financial framework."

More good news for the Webjet share price

What's good for the goose is good for the gander. Investors are betting that the pent-up demand for international travel will be a tailwind for the Webjet share price too.

Better still, Qantas isn't the only one in the sector that provided an upbeat assessment for the industry.

The Helloworld Travel Ltd (ASX: HLO) share price is also taking off today after the company released its quarterly update.

Earnings jump as travel rebounds

The travel agent said that total transaction value (TTV) in the recent quarter jumped 60% over the same time last year. TTV for the quarter ending 31 March 2022 was $419 million.

Revenue also increased by 52% to $22.8 million. While EBITDA loss narrowed to $1.9 million from $4 million over the period.

"International travel has resumed, and confidence is returning as travelers book with longer lead times and higher average spend," said Helloworld in its ASX statement.

"Based on retail, wholesale and inbound booking intakes across the first three months of 2022 we expect a rapid improvement in revenues across the coming months."

Clear skies ahead

But there was another big move signalling that international travel is about to make a big comeback. Regional Express Holdings Ltd (ASX: REX) announced its intention to partner with Delta Air Lines.

The airlines are aiming to sign a deal that would allow reciprocal ticketing and baggage services. The Rex and Delta connectivity is due to commence in the third quarter of 2022.

There are high hopes that all the good news will translate to further gains for Webjet. The Webjet share price has jumped over 20% over the past year.

The post Why is the Webjet share price beating the ASX 200 today? appeared first on The Motley Fool Australia.

Many Australians have finally retaken to the skies in 2022 — and these ASX travel shares are lapping up the nation's enthusiasm.

Australia's international borders fully reopened in February, with the country welcoming back international tourists for the first time since March 2020.

And, during the Easter break, airports Australia-wide reportedly saw their highest levels of demand from holidaymakers in two years.

So, which ASX travel shares are taking advantage of 2022's positive momentum? Let's take a look.

This year's top-performing ASX travel shares

A quick note: This list only considers ASX travel stocks with market capitalisations of more than $50 million.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price has bested its ASX travel peers over 2022 so far, gaining 21% year to date.

That's despite the only news from the company in that time – its half-year earnings – sending its share price 10% lower.

Additionally, short-sellers are likely irritated by recent gains in Flight Centre's stock.

The company remains one of the ASX's most shorted shares, with an 18.01% short interest as of The Motley Fool Australia's latest short-selling update.

At the time of writing, the Flight Centre share price is $21.39, 0.99% higher than its previous close.

Webjet Limited (ASX: WEB)

Again, much to the disappointment of short-sellers, another of the ASX's most shorted shares has come in as one of the top-performing travel stocks of 2022 so far.

The Webjet share price has gained around 13.93% this year, despite having a short interest of 8.8% at last count.

It's currently trading at $5.87, 0.34% higher than its previous close.

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel Management share price is also performing well in 2022. It's come in as the third-best ASX travel stock of this year so far.

The company's stock has gained 13.73% year to date, having been boosted 7.5% higher on its half-year results.

Additionally, the company completed a major acquisition earlier this month.

It's now home to what was previously Helloworld Travel Ltd (ASX: HLO)'s corporate and entertainment travel businesses.

Right now, Corporate Travel Management's stock is trading at $24.89, 0.12% higher than it was at the end of Thursday's session.

Helloworld Travel (ASX: HLO)

The Helloworld Travel share price has lifted 7.97% since the start of 2022.

In that time, the company has released its half-year results, handed over its corporate and entertainment travel legs, and welcomed the planned return of international cruising.

In a recent presentation, the company noted it expects the reintroduction of international cruising, which made up more than a third of its pre-pandemic business, and the return to more normal travel patterns will help boost its bottom line.

The Helloworld share price is currently trading 1.11% higher at $2.73.

Qantas Airways Limited (ASX: QAN)

Finally, the iconic kangaroo has come in as the fifth best performing ASX travel share of 2022 so far.

The Qantas share price has gained 7.78% this year despite plenty of hiccups.

The airline pushed through COVID-19 outbreaks that saw it cut capacity in January, before its stock nose-dived 5% on its half-year earnings.

Right now, Qantas' shares are trading for $5.41 apiece, 0.73% lower than its previous close.

The post Here are the 5 best performing ASX travel shares of 2022 so far appeared first on The Motley Fool Australia.

ASX travel shares descended today on a tough day for the market.

The Flight Centre Travel Group Ltd (ASX: FLT) slid 2.74%,  Webjet Limited (ASX: WEB)  gravitated 2.86%, and Qantas Airways Limited (ASX: QAN) descended 1.96%.

Meanwhile, the Helloworld Travel Ltd (ASX: HLO) share price fell 2.40%, while Corporate Travel Management Ltd (ASX: CTD) dropped 2.54%.

Let's take a look at why these travel companies had such a shocking day.

Travel chaos predicted

ASX travel shares followed the pattern of their US counterparts. The American Airlines Group Inc (NASDAQ: AAL) fell 2.58%, United Airlines Holdings Inc (NASDAQ: UAL) descended 3.67%, and Delta Air Lines Inc (NYSE: DAL) dropped 3.69% in Wednesday's trade in the US. US airlines fell amid rate rise fears.

News from the White House that the USA has no plans to scrap COVID-19 testing requirements may also have weighed on travel shares. In a video shared on Twitter by The Post Millennial, Whitehouse COVID-19 advisor Jeff Zients said: "There are no plans to change the international travel requirements at this point."

ASX travel shares Flight Centre, Webjet and Qantas all have a presence in the USA market.

Travel chaos in the lead up to Easter may also be concerning travel shareholders. Hundreds of international flights are being cancelled due to COVID-19 travel shortages, CBS News reported. Australian passengers were recently warned to arrive at the airport at least two hours early for domestic flights amid airline staff shortages, the Daily Mail reported.

Rising oil prices may also be impacting ASX travel shares. International benchmark Brent crude oil is up 1.45% to US$102.57 per barrel at the time of writing, Trading Economics data shows. Fuel is a major cost for airlines, and the oil price impacts the cost of fuel.

ASX travel share recap

In the past year, Qantas shares have fallen 7.41%, Webjet shares have fallen 2.86%, while Flight Centre shares have leapt 4.96%.

Helloworld Travel shares have soared 10.41%, while Corporate Travel shares have exploded 22.35%.

In contrast, the S&P/ASX 200 Index has returned more than 7% in the past year.

The post What went so wrong for ASX travel shares today? appeared first on The Motley Fool Australia.

The Corporate Travel Management Ltd (ASX: CTD) share price is in the red today despite the company completing a major acquisition.

The business-focused travel agency has officially taken on Helloworld Travel Ltd (ASX: HLO)'s corporate and entertainment travel businesses.

At the time of writing, the Corporate Travel share price is $23.62, 0.55% lower than its previous close.

The broader market is also struggling today. Right now, the S&P/ASX 200 Index (ASX: XJO) and the All Ordinaries Index (ASX: XAO) have both slipped 0.12%.

Let's take a closer look at today's news from the ASX 200 travel giant.

Corporate Travel share price slides on acquisition update

Shares in Corporate Travel are slumping on Friday after the company announced it had completed a $175 million acquisition.

In mid-December, Corporate Travel agreed to purchase Helloworld's corporate and entertainment businesses, undergoing a capital raise to pay for them.

The company will now work to integrate former Helloworld brands including QBT, TravelEdge, APX, Atlas Travel, AOT Hotels, and Show Group into its offerings.

After adding those brands to its portfolio, Corporate Travel will service more than a quarter of the ASX 200.

The acquisition has also expanded its service and technology offerings in the government and education sectors.

The company paid $100 million in cash and approximately 3.57 million new shares for Helloworld's corporate and entertainment legs.

The cash was raised via an institutional placement and share purchase plan conducted over December and January.

Today's seemingly good news hasn't boosted the Corporate Travel share price, but at least it's not alone in the red.

It's joined by the share prices of fellow ASX 200 travel stocks Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB). They're currently down 1.32% and 1.96% respectively.

Meanwhile, the Helloworld share price is trading 0.84% higher than its previous close.

Today's dip sees the Corporate Travel share price almost 3% higher than at the start of 2022. That's compared to the ASX 200's 1.2% slip over that same time frame.

The post Why is the Corporate Travel (ASX:CTD) share price slipping today? appeared first on The Motley Fool Australia.

And that's on a day that's seen the S&P/ASX 200 Index (ASX: XJO) charge 1% higher by lunchtime.

The Qantas Airways Limited (ASX: QAN) share price, however, has gained 3 times more, currently up just over 3%.

Fellow ASX travel share Webjet Limited (ASX: WEB) is also outperforming, up 2.2%, while the Flight Centre Travel Group Ltd (ASX: FLT) share price has gained 1.3% at this same time.

Among the smaller ASX travel shares, Helloworld Travel Ltd (ASX: HLO) has gained 3.5% so far in intraday trading.

Why are ASX travel shares taking off today?

There look to be a number of factors helping buoy ASX travel shares today.

First, momentum is building across the world to remove travel restrictions put in place 2 long years ago to mitigate the impacts of COVID-19.

New Zealand, a very popular destination for Aussies (and vice versa), announced that commencing 13 April, vaccinated arrivals from Australia will be able to enter without having to isolate. New Zealand intends to open its doors to a long list of other nations in early May.

On the far side of the world, the United Kingdom – another popular 2-way travel route from down under – is also helping boost travel sentiment. The UK is set to scrap its last COVID travel restrictions this week. Arrivals will no longer need to be tested.

What's happening down under? 

Australia is taking its own big steps in ending pandemic border restrictions, helping lift investor sentiment for ASX travel shares. Among the most recent moves, the Aussie government is ending its ban on international cruise ship arrivals as of 17 April.

Commenting on the end of the cruise ship embargo, Helloworld CEO, Andrew Burnes said:

This has been a long time coming and agents and their clients across Australia are both relieved and thrilled that this ban is finally coming to an end. The lifting of this ban will make a material difference to the sales of our agents and of Helloworld's leisure travel divisions, both retail and wholesale.

The Federal Government has indicated the final decision on opening ports rests with each State Government and we look forward to that occurring as soon as possible.

Lower energy prices good news for ASX travel shares

Atop the lifting of COVID travel restrictions, another big factor that's helping boost ASX travel shares is a retreat in crude oil prices.

With jet fuel counting amongst the biggest single costs for airlines, today's US$101 per barrel Brent crude is a lot more palatable than the US$129 per barrel that Brent crude was trading for on 8 March.

The post Why are ASX travel shares taking off today? appeared first on The Motley Fool Australia.

Here's what is happening on the ASX 200 today:

Corporate Travel Management's acquisition boost

The Corporate Travel Management Ltd (ASX: CTD) share price is pushing higher today after receiving a boost from the ACCC. The competition regulator has approved the corporate travel specialist's proposed $175 million acquisition of the ANZ-based corporate and entertainment travel businesses of Helloworld Travel Ltd (ASX: HLO). The ACCC doesn't expect the deal to lessen competition.

IGO shares storm higher

The IGO Ltd (ASX: IGO) share price is storming higher today following another strong night for commodity prices. For example, according to CommSec, the nickel price rose 3.6% to US$26,489 per tonne overnight. In other news, this morning joint venture partner Impact Minerals Limited (ASX: IPT) revealed that a significant electromagnetic (EM) conductor has been identified in the extensive ground EM survey at the Broken Hill project in NSW.

Zip shares downgraded

The Zip Co Ltd (ASX: Z1P) share price is falling again on Thursday after being downgraded by the team at UBS. According to the note, the broker has downgraded the buy now pay later provider's shares to a sell rating and taken a hammer to its price target. The latter is now just $1.00, which is down 81% from UBS' previous price target of $5.20.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Pointsbet Holdings Ltd (ASX: PBH) share price with a 14% gain on no news. This sports betting company's shares have been very volatile this week. The worst performer on the ASX 200 has been the Monadelphous Group Limited (ASX: MND) share price with a 4% decline. Some of this is due to its shares trading ex-dividend this morning.

The post ASX 200 (ASX:XJO) midday update: Corp Travel Management's ACCC boost, Zip downgraded appeared first on The Motley Fool Australia.

In morning trade, the Corporate Travel Management Ltd (ASX: CTD) share price is pushing higher.

At the time of writing, the corporate travel specialist's shares are up 2% to $22.35.

Why is the Corporate Travel Management share price rising?

Investors have been bidding up the Corporate Travel Management share price today after its proposed $175 million acquisition of the ANZ-based corporate and entertainment travel businesses of Helloworld Travel Ltd (ASX: HLO) was given a major boost.

According to the release, the Australian Competition and Consumer Commission (ACCC) has stated that it will not oppose the acquisition.

ACCC Chair, Rod Sims, said:

The ACCC reviewed the proposed acquisition as it combined two of the largest corporate travel management companies in Australia. However, we found that it was unlikely to result in a substantial lessening of competition.

Large travel management customers told us that there are a range of competitors that would be capable of servicing their needs, including Flight Centre Travel Group Ltd (ASX: FLT) and Amex GBT.

The ACCC believes that these providers will continue to compete strongly with Corporate Travel Management after the acquisition. Furthermore, it also feels that other large overseas-based travel management companies could expand in Australia. Examples include BCD Travel and CWT (Carlson Wagonlit Travel) and newer companies such as TripActions.

What now?

Gaining ACCC approval is a major positive for the deal and brings completion a big step closer.

Corporate Travel Management notes that completion of the acquisition is subject to the satisfaction of the remaining conditions. Both parties are continuing to work effectively together to satisfy these remaining conditions.

If all goes to plan, completion of the acquisition is expected to occur on 31 March.

The travel agent's recently released half-year results revealed a doubling of revenue as COVID-19 restrictions continue to ease.

Western Australia's border reopened to interstate and overseas travellers today.

The post Corporate Travel Management (ASX:CTD) share price higher on ACCC Helloworld update appeared first on The Motley Fool Australia.

The Helloworld Travel Ltd (ASX: HLO) share price closed the day in the red on Monday after the company released its interim report and financial results for the half year ended 31 December 2021.

Helloworld shares finished the day 4% down at $2.44 apiece as investors responded poorly to the company's earnings results on Monday.

Helloworld share price tanks amid earnings growth

Key takeouts from the company's earnings results included:

• Half year statutory loss after tax fell to $14 million compared to $15.1 million in 1H21
• Travel-related revenue grew $12.5 million on the prior corresponding period (pcp), operating costs declined, and short-term net operating cash outflows remained tightly managed
• Total transaction value (TTV) grew 60.4% on the pcp contributing to a 45.2% increase in travel-related revenues
• Margins remained steady at 6%
• Non-corporate and entertainment travel TTV grew 86.6% on pcp
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) loss of $5.2 million, down 10.8% or $0.6 million on the pcp
• Net loss before tax was $19.6 million, a decline of $1.9 million on the pcp of $21.5 million
• As at 31 December 2021, the group held cash balances of $87.6 million
• Subsequent to period-end, $7.5 million in previously paid company tax was received
• External borrowings at 31 December totalled $70.8 million after repayment of $10 million in December 2021

What else happened this half for Helloworld?

During the period Helloworld agreed to sell (subject to conditions) the corporate and entertainment travel businesses in Australia and New Zealand to Corporate Travel Management Ltd (ASX: CTD), for an enterprise value of A$175 million.

The company also notes its retail agency networks in Australia and New Zealand "remain steadfastly resilient with a strong presence to capture expected growth in travel demand in 2022 and beyond".

On the back of strong forward bookings, that have continued to climb, significant leisure bookings are now held for travel through until the end of 2023, Helloworld said.

The group expects demand for inbound travel arrivals heading to Australia, New Zealand, and Fiji to gradually normalise in 2022.

"If travel demand continues to grow on its current trajectory, [the company] should achieve a breakeven position or slightly better in the June quarter of FY22 and return to modest profitability throughout FY23," it said.

Aside from that, travel-related revenue grew $12.5 million year on year whereas operating costs declined. In addition, TTV grew over 60% on the previous year, "contributing to a 45.2% increase in travel-related revenues".

"With current liquidity levels and cash burn, HLO has sufficient liquidity to maintain operations and continue to benefit from the recovery of the travel and tourism market and to see that through to full recovery," Helloworld remarked.

Management commentary

In his address, Helloworld chief executive Andrew Burnes said:

Over the last two years, we have reviewed all parts of our business to ensure we are providing all critical services to our agency, corporate and direct customers while keeping costs to a sustainable level.

As part of this review we identified the opportunity to consider divesting our corporate division and on 15 December 2021, HLO announced it had entered into a binding agreement to sell its corporate and entertainment travel businesses in Australia and New Zealand to Corporate Travel Management for an enterprise value of A$175 million. We believe this transaction is at a compelling valuation to maximise HLO shareholder value and will allow HLO to focus on operations which, pre COVID-19, represented 80% of our TTV. Subject to certain conditions being met, completion is expected to occur during the third quarter of FY22.

What's next for Helloworld?

The company gave an overview of its company expectations for the coming periods. In the near term, Helloworld notes that "pent up demand for travel is extremely strong and when the impacts of the COVID-19 pandemic on travel finally subside, we anticipate travel will ramp up rapidly, with significant growth in the next 24 months".

If that were the case then demand for travel services from both retail leisure agents and corporate travel management companies will also soar "in a world where professional and personalised travel advice and management will be critical to travellers' sense of security and comfort".

Helloworld says it will continue to incur cash losses of approximately $1–$1.5 million per month for the next three months, based on its current expectations.

According to the company, it has a sufficient cash runway to last "beyond the end of calendar 2022 on current liquidity levels and cash burn rate".

Subject to satisfaction of the conditions and transaction completion, HLO will receive A$100 million in cash and CTM shares of A$75 million (escrowed 12 months from completion) towards the end of the March 2022 quarter. The cash consideration received will be used to repay debt, provide additional liquidity, capital management and to support growth opportunities in HLO's retail and leisure travel businesses as activity rebounds following COVID-19 disruption.

Helloworld share price snapshot

In the last 12 months, the Helloworld share price has climbed 8%. However, it is down around 3% this year to date. In the past month, it has gained 9%.

The post 'Losses minimised' but Helloworld (ASX:HLO) shares can't hide from the havoc appeared first on The Motley Fool Australia.

ASX travel shares gained altitude today amid a global travel recovery.

The Flight Centre Travel Group Ltd (ASX: FLT) soared 5.79%, Webjet Limited (ASX: WEB) gained 4.83%, and Qantas Airways Ltd (ASX: QAN) climbed 2.68%.

Let's take a look at what lifted the travel sector today.

ASX travel shares rise

ASX travel shares took off but they were not the only travel stocks taking flight. In the US, on Tuesday, American Airlines Group surged 8%, United Airlines Holdings jumped 7.56% and Delta Air Lines Inc finished 6% ahead.

And airlines weren't the only companies in on the party. Cruise operators Royal Caribbean gained 4%, Carnival Corporation Corp jumped 6.65%, and Norwegian Cruise Line Holdings surged 6.92%.

Speculation that Russian president Vladimir Putin may still be prepared to hold back on war with Ukraine may have helped these shares, as my Foolish colleague in the US reported.

In Australia, the Corporate Travel Management Ltd (ASX: CTD) share price also surged 7.65% while Helloworld Travel Ltd (ASX: HLO) finished the day up 7.08%.

Corporate Travel's gain came on the back of its half-yearly results today which showed its revenue more than doubled in H1 FY22. The company also reported its revenue in North America is higher than it was pre-COVID-19.

Meanwhile, news that WA Premier Mark McGowan may be lifting WA's border lockdown could also be good news for ASX travel shares.

WA Premier Mark McGowan reportedly said a new reopening date could be on the way, according to 7 News. McGowan said:

We are reviewing (restrictions) as we speak. The reality is, though, that we are getting the third-dose vaccination rate up, the eastern states appear to be coming off their peak, which is a good thing.

Meanwhile, the Canadian government eased its COVID-19 rules for travellers arriving in the country on Tuesday. Fully vaccinated travellers will no longer require a PCR test on arrival in Canada. France also relaxed its travel rules on 12 February.

This is all good news for ASX travel shares.

The post Why are ASX travel shares taking flight today? appeared first on The Motley Fool Australia.

Key points

• Analysts really like these two ASX shares, with multiple buy ratings
• Healthco Health is a property business which owns a portfolio of healthcare and social real estate
• Corporate Travel is one of the world-leading business travel businesses

There are some very compelling ASX shares that many of Australia's leading analysts rate as a buy right now.

Different businesses look good value at different prices depending on their size and growth outlooks.

However, if many of these brokers all believe that a company is priced attractively then it could be worth considering.

Healthco Healthcare and Wellness Reit (ASX: HCW)

This is a real estate investment trust (REIT) which owns a portfolio of properties across aged care, childcare, government, life sciences and research, and primary care and wellness. The idea is to have a portfolio that is underpinned by attractive megatrends, targeting stable and growing distributions, long-term capital growth and positive overall environmental and social impact.

It's currently rated as a buy by at least three different brokers, including Macquarie which has a price target of $2.52 on the business – that's more than 20% higher than today's level. The broker reckons investors will choose to go to defensive investments in 2022.

The ASX share is expecting to pay a FY22 distribution per unit of 7.4 cents. That translates to a distribution yield of 3.7%.

In October, it pointed out that it has pro forma gearing of just 11.5%, providing financial capacity for acquisitions. That October update included an announcement regarding $200 million of high-quality healthcare acquisitions, with a weighted average capitalisation rate (WACR) of 5.02% and a weighted average lease expiry (WALE) of 17.3 years.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel is one of the world's largest business travel businesses.

It's currently rated as a buy by at least six brokers including Macquarie and Morgans. The Morgans price target is $29, which implies a possible rise of the Corporate Travel share price of around 40% over the next 12 months.

Morgans reckons that travel volumes will return as the impacts and concerns regarding Omicron subside, as it did with previous COVID variants.

Whilst Macquarie recognises that the travel sector is being impacted by COVID, it thinks that Corporate Travel will be among the first to recover because of the 'essential' nature of business travel.

On Macquarie's numbers, the Corporate Travel share price is valued at 21x FY23's estimated earnings.

The last trading update that the market received was when the ASX share announced the acquisition of Helloworld Travel Ltd's (ASX: HLO) corporate and entertainment travel business for $175 million on a cash-free and debt-free basis.

As at 30 November 2021, Corporate Travel had maintained positive monthly earnings before interest, tax, depreciation and amortisation (EBITDA) during the second quarter of FY22. However, it did note that momentum was impacted by the Omicron variant.

However, it said that when combined with the Travel & Transport acquisition, it will be a materially larger business after a full travel market recovery, with pro forma combined revenue of $810 million and EBITDA of $265 million.

The post 2 ASX shares that top analysts are loving right now appeared first on The Motley Fool Australia.