The Magellan Financial Group Ltd (ASX: MFG) share price closed Monday's session 5.32% higher. By the market's close, shares in the fund management business were trading at $45.57 after closing Friday's session at $43.27.

By comparison, the S&P/ASX 200 Index (ASX: XJO) edged just 0.12% higher for the day.

Let's take a closer look at what's been happening for Magellan. 

Magellan backed Barrenjoey Capital gets ASX licence

In news that could have helped boost the Magellan share price today, the Sydney Morning Herald (SMH) reported that the ASX has granted Barrenjoey Capital (of which Magellan owns a 40% stake) a licence to be a market participant. This means the investment bank can clear and settle trades in its own name.

Barrenjoey already operates within the corporate finance space and intends to open up its markets arm by the end of FY21, now that it has received the licence.

In addition to the licence granting, SMH also reported that Barrenjoey is lifting top talent from some of its rivals. After picking up Challenger Ltd (ASX: CGF) managing director Brian Bernari as CEO, and UBS executive Guy Fowler as chair, the company is making several more acquisitions.

Three more UBS executives have left the Swiss bank for Barrenjoey. They are banking analyst Jonathan Mott, mining analyst Glyn Lawcock, and gambling and transport analyst Matt Ryan.

As well, BHP Group Ltd (ASX: BHP) chair, Ken Mackenzie, is rumoured to soon be joining Barrenjoey as a senior strategy partner.

What is Barrenjoey Capital?

Launched in 2018, Barrenjoey Capital is the latest investment bank to enter the Australian market. A joint venture between Magellan and Barclays, Barrenjoey provides corporate and strategic advice, equity and debt capital underwritings, cash equities, research, prime brokerage, and fixed income trading.

While Magellan and Barclays are financial backers and own equity in the company, the majority of the company will be owned by its employees.

Magellan's net profit after tax for the six months ending 31 December 2020 was down 2% to $213.1 million. Part of the reason for this was the $6.1 million net loss Magellan incurred from its Barrenjoey investment.

Magellan share price snapshot

During the COVID-19 market crash of March last year, the Magellan share price reached a 52-week low of $30.10. At today's price, it has gained more than 50% since that time. However, Magellan shares are down nearly 31% from their 12-month high of $66.00 achieved in August last year.

Magellan Financial has a market capitalisation of around $7.95 billion.

The post Why the Magellan (ASX:MFG) share price leapt 5% today appeared first on The Motley Fool Australia.

Pointsbet Holdings Ltd (ASX: PBH) shares fell sharply today following news a fellow Sydney bookie is making preparations for an initial public offering (IPO). By the market's close, the Pointsbet share price had slumped 6.27% to $13.75.

Let's take a closer look.

A new horse on the track?

The Pointsbet share price was on a losing streak today after The Australian Financial Review (AFR) reported Randwick Racecourse-based Bookmaker BlueBet is gearing up for an IPO in the first half of 2021. The company's market capitalisation is expected to exceed $150 million. 

AFR further noted that BlueBet is estimated to have "…annual revenues in the hundreds of millions of dollars."

With the support of brokers Ord Minnett and Morgans, BlueBet is preparing for an upcoming roadshow.

In further news weighing down the Pointsbet share price, yesterday the company announced that UBS Group has ceased to be a substantial shareholder as of 26 February 2021. On that day, the trading volume for Pointsbet shares was 2.2 million, compared to its average five-day volume of approximately 1.2 million shares.

Investors sell after first-half results

In its latest earnings report, Pointsbet posted a net loss of $85.6 million for the first half of FY21 (1H21). This compares to a net loss of $32.3 million in 1H20.

Loss per share was 47.6 cents in 1H21 vs 25.9 cents in 1H20.

1H21 revenue from ordinary activities jumped 174% compared to the prior corresponding period (pcp), totalling $75.1 million.

Pointsbet advised that highlights for the 1H21 period included a $353.2 million capital raise completed in September 2020 and being admitted to the S&P/ASX 300 Index (ASX: XKO) on 22 June 2020.

As of 31 December 2020, Pointbet's Australian business had 142,992 active clients and its United States business had 68,094 active clients. This represents increases of 77% and 222%, respectively, compared to the pcp. 

Pointsbet share price snapshot

Pointsbet is an online bookmaker with operations in Australia and New Jersey, USA.

The Pointsbet share price has gained 24.55% over the past six months and a whopping 275% over the past year.

Pointsbet has a market capitalisation of around $2.7 billion and there are presently 183.4 million shares outstanding.

The post Pointsbet (ASX:PBH) share price loses 6%. Here's why appeared first on The Motley Fool Australia.

The Domino's Pizza Enterprises Ltd (ASX: DMP) share price slipped 4% following its annual general meeting update last Thursday. Big brokers have largely raised their share price targets despite retaining neutral to sell ratings. Here's the run down. 

FY21 trading update

The trading update highlights an 8.4% increase in group same store sales growth in the first 17 weeks of FY21.

Group CEO and managing director, Don Meij said that sales growth across the group was "now more normalised than at the initial peaks, in all regions above our medium term outlook". Mr Meij pointed to Germany and Japan as outperforming regions given local coronavirus conditions and the assertive actions of management. 

During this period, the business also recorded 74 new store openings, a record for this time of the year, and reflecting the high level of appetite in its franchised and corporate business to meet customer demand. 

Despite short-term uncertainty and challenges, the business remains confident in its medium-long term outlook. Domino's 3-5 year outlook targets annual same store sales growth between 3-6% and annual organic new store additions of between 7-9%. Given its ongoing strong performance, the company expects to see a record number of new stores open in FY21. 

Cautious broker updates for the Domino's share price 

Big brokers updated their Domino's share price targets last Friday with a largely neutral to negative tone. Domino's trades at a price-to-earnings (P/E) ratio of almost 50. This compares to similar food businesses such as Collins Food Ltd (ASX: CKF) that trades at half that valuation.

Macquarie Group Ltd (ASX: MQG) raised its Domino's share price target from $77.30 to $84.30 and retains a neutral rating. It notes that first quarter sales were ahead of expectations. However, new store openings was a disappointment but not surprising given the state of the pandemic outside Australia. 

UBS Group AG (NYSE: UBS) also raised its Domino's share price target from $70.00 to $72.00 and retains a sell rating. Sales during the first quarter were in-line with expectations but it expects lower sales growth to reflect the ongoing impact of the pandemic in other regions. The price target increase was given to reflect its performance so far. 

Credit Suisse Group AG (NYSE: CS) was the only broker to lower its Domino's share price target from $61.32 to $58.71 with an underperform rating. After reviewing the first quarter trading update, it notes slowing sales growth and expects the pandemic to continue to impact the business ex-Australia. 

The post Why brokers are neutral on the Domino's (ASX:DMP) share price appeared first on The Motley Fool Australia.

The Afterpay Ltd (ASX: APT) share price has been a standout performer among buy now, pay later (BNPL) shares. Afterpay's competitors such as Zip Co Ltd (ASX: Z1P), Splitit Ltd (ASX: SPT), Sezzle Inc (ASX: SZL), Laybuy Holdings Ltd (ASX: LBY) and Openpay Group Ltd (ASX: OPY) are all well below their record all-time highs, while Afterpay may go up even higher. 

The company's upbeat quarterly update saw a series of positive broker updates come about for the Afterpay share price target. However, given Afterpay's ballooning $28 billion valuation on $519.2 million revenue and a loss of $22.9 million in FY20, the general concensus is cautious. These broker upgrades are still below the current Afterpay share price of $99.04.

Cautious updates to the Afterpay share price 

UBS Group AG (NYSE: UBS) has been the least optimistic broker for its Afterpay share price target. The broker has maintained a price target within the $20 range throughout Afterpay's run to $100. Yesterday, the broker nudged its price target from $28.50 to $30.00 and retains a sell rating. Despite continuing improvement in transaction values and customer growth, the broker still sees this market leader as overvalued. 

Goldman Sachs Group Inc (NYSE: GS) raised its Afterpay share price target from $93.45 to $94.40 and retains a neutral rating. It reacted positively to Afterpay's first quarter trading update and notes robust customer growth in the United States and improving margins. However, the broker remains cautious about increasing competition. Afterpay's current share price is ahead of its target so it retains a neutral rating. 

What investors can look forward to

While the Afterpay quarterly update was positive and highlighted its strong growth trajectory, it also shed light on its global expansion and demographic tailwinds. 

In August, Afterpay launched its product in Canada, with a number of large retailers now live, integrating or signed. In its FY20 results, Afterpay outlined its plan to enter the rest of Europe via the acquisition of Pagantis. This acquisition is progressing well and is on track for completion by the end of the 2020 calendar year, pending regulatory approval by the Bank of Spain.

This will provide Afterpay a licence to operate in Spain, France, Italy and Portugal as well as pending licence passport applications in Germany and Poland. The company has completed a cross-functional, 100-day integration plan to launch as soon as possible, post completion. 

Plans to expand into Asia are also progressing well with the established base in Singapore to drive the development of the Southeast Asia market. Its acquisition of local BNPL 'Empatkali' in Indonesia is also under way.

The post Afterpay (ASX:APT) share price still higher than these big broker targets appeared first on The Motley Fool Australia.