Shares in Blackpearl Group Ltd (ASX: BPG) have fallen almost 80% over the past 12 months, but the analyst team at Bell Potter believes they can bounce back strongly.

The broker has just issued a new research note on the company with a speculative buy recommendation, and while they have cut their share price target almost in half, they still expect the company to increase substantially in value.

I’ll get to the specifics of their share price target shortly.

First, let’s look at Blackpearl Group’s most recent trading update issued just this week.

Business model evolving

The company said in a statement to the ASX that it now expects profitability on an EBITDA basis in FY28, after narrowing its quarterly loss by a third to $2.97 million.

The cloud technology company said it had reduced its cost base by about 27% compared with the fourth quarter of FY26, or about $9.4 million on an annualised basis.

During the quarter, the company had also struck a non-binding agreement with “one of the largest data providers in the United States: a private company serving Fortune 500 companies with B2B intent data and demand generation”.

Blackpearl Group added:

The partner works only inside a large enterprise customer profile and does not service SME US businesses. That demand is now referred to Blackpearl, which delivers data and platform as a service to those customers under a revenue share between 20% and 40%, depending on the type of deal. Blackpearl owns the customer relationship. The partner has an identified referral pipeline of 70+ companies, with typical deal sizes of US$10,000 to US$30,000 per month.

Blackpearl said since the partner originates the relationship, there was no upfront customer acquisition cost and payback is immediate.

They added:

Gross margin is high and the incremental cost to serve is low, so revenue from this channel flows largely through to EBITDAF. Onboarding is fast: Blackpearl already holds the underlying data asset, and the Pearl Engine applies its models over it. The partnership validates the Group’s DaaS and PaaS strategy, where Blackpearl’s data intelligence powers other companies’ products and revenue systems. Further distribution agreements are in negotiation.

ASX tech shares looking cheap

Bell Potter said the change in Blackpearl’s revenue model meant the broker had changed how it valued the company, moving from a recurring revenue model to a discounted cash flow model.

This had led to a drop in the share price target from $1.20 to 65 cents, compared to the current share price of 19 cents.

If achieved this would be a 242.1% return.

The post This small-cap ASX tech stock could more than triple in value: Broker appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares have come under more downward pressure today, dragged lower by softer commodity prices and a huge crash in the NextDC Ltd (ASX: NXT) share price.

If I had a spare $5,000, here are four significantly undervalued ASX shares that I’d look to buy.

Elevra Lithium Ltd (ASX: ELV)

Elevra shares are down around 2% at the time of writing, to $3.74. The shares are now down around 53% year to date and roughly 14% lower than a year ago. The lithium shares have been hit by lithium price headwinds over the past few months. Lithium has fallen to around CNY 100,000 per tonne this week, down from around CNY 160,000 in early September, due to softer demand and a spike in supply. But the experts forecast a significant turnaround over the next 12 months. Market Index shows the majority of brokers have a buy rating on the shares, and the $13.05 average target price implies an upside of around 250% at the time of writing.

Deep Yellow Ltd (ASX: DYL)

Deep Yellow shares have climbed around 1% to 74 cents a piece at the time of writing. Today’s increase is great news, but it barely makes a dent in the huge losses incurred this year. The ASX uranium shares have fallen around 11% over the past week, and are now down a huge 62% year to date. Rising bond yields and high interest rates have acted as strong headwinds for Deep Yellow. The company also recently announced it had delayed construction at its Tumas project because current equity market conditions don’t support raising the capital it needs. But the experts are bullish, believing the decline is temporary and that there is strong upside ahead. Market Index data shows that the majority of brokers have a buy rating on Deep Yellow shares. The $2.25 average target price implies a 207% upside, at the time of writing.

NextDC Ltd (ASX: NXT) 

NextDC shares have crashed 41% on Wednesday to just $5.41 following the company’s latest market update. The data centre operator announced this morning that there is a delay in delivering electricity to its M3 Melbourne data centre, which will then delay its ability to deliver and bill customers for contracted capacity. This has forced management to make substantial reductions to its FY27 guidance. Guidance for underlying EBITDA has been revised to between $245 million and $265 million, down from $385 million to $410 million previously. Net revenue guidance has been revised to between $475 million and $500 million, down from $615 million and $640 million. But expert forecasts still remain intact. Market Index shows the majority of brokers have a strong buy rating on the ASX shares. The $19.15 average target price implies a potential 250% upside, at the time of writing.

Siteminder Ltd (ASX: SDR)

Siteminder shares are unchanged at $2.68 at the time of writing on Wednesday. However, the shares are down about 56% year to date. SiteMinder shares were hit by a disappointing FY26 results announcement in mid-August. The company posted a 22% increase in revenue and a 96.5% increase in EBITDA. Its net loss also improved to $11.3 million, down from $24.5 million in FY25. The company also said it expects its adjusted EBITDA margin to keep expanding in FY27 and reach the mid-20% range by FY30. On the surface, the results look good, but investors are concerned about the conservative growth outlook. The experts are less hesitant. Market Index shows the majority of brokers have a strong buy rating on the ASX shares. The $5.40 average target price implies an upside of around 101% at the time of writing.

The post 4 hugely undervalued ASX shares I'd buy with $5,000  appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the things I love about long-term investing is the potential for compounding to turn relatively modest growth into something much more substantial.

And this doesn’t just apply to ASX share prices. It can also apply to dividend income.

For example, if a company increases its dividend by approximately 7.2% annually, its payout will double over 10 years.

That means an investment generating $1,000 in annual dividends today could potentially provide $2,000 in 2036, without the investor having to buy another ASX share.

Of course, achieving that requires a business capable of growing its earnings and cash flows consistently enough to support those increases.

So, I decided to look for ASX shares that I believe could potentially double their dividends over the next decade.

Here are five that caught my attention.

Coles Group Ltd (ASX: COL)

The first ASX share I would consider is Coles. I think the supermarket giant has many of the qualities that make a good long-term dividend investment.

It operates in an industry where demand is relatively dependable, with millions of Australians visiting its stores every week to buy everyday essentials.

But what I like most is the opportunity to improve profitability. Coles has invested heavily in automated distribution centres, technology, and improving its supply chain. These investments are already helping the company become more efficient, and I believe there are further benefits to come.

Its FY 2026 results were encouraging, with underlying net profit increasing by approximately 13%. The company also paid fully franked dividends totalling 78 cents per share for the year.

If that payout doubled by 2036, shareholders would be receiving $1.56 per share annually.

I think this makes Coles a good starting point, but I believe some of the other companies on my shortlist have the potential to deliver even greater dividend growth.

In fact, a couple could be paying substantially more to shareholders by 2036 if their ambitious growth plans deliver.

So, which other ASX shares do I believe could double their dividends over the next decade?

Dicker Data Ltd (ASX: DDR)

Another ASX share I believe could potentially double its dividends by 2036 is Dicker Data.

The company distributes technology products, software, and cloud solutions to thousands of Australian and New Zealand businesses through its reseller network.

I like this business because technology spending is becoming increasingly important to organisations of all sizes. Whether companies are upgrading computers, moving to the cloud, or strengthening cybersecurity, Dicker Data is well positioned to benefit.

And there is evidence that demand remains strong. During the first half of FY 2026, Dicker Data increased its gross revenue by 14.2%, while net profit jumped 54.1%.

The company has also announced plans to acquire Sektor Group, which will give it an established presence in parts of Southeast Asia and expand its range of technology products. I think this could open up additional growth opportunities over the coming decade.

Dicker Data currently pays quarterly dividends of 11.5 cents per share, equivalent to 46 cents annually if maintained. Doubling that annualised amount would mean shareholders receiving 92 cents per share in 2036.

While its relatively high dividend payout ratio means earnings growth will be important, I believe Dicker Data has the potential to deliver it.

REA Group Ltd (ASX: REA)

The next ASX share I would consider is property listings company REA Group. I think this is one of the best businesses on the Australian share market, largely because of the powerful competitive position enjoyed by its realestate.com.au platform.

Its enormous audience makes it an essential advertising destination for real estate agents, which in turn helps attract even more property buyers and sellers.

And that gives REA considerable pricing power. As agents become increasingly dependent on its platform, the company can continue introducing higher-value advertising products and services.

Importantly, REA doesn’t necessarily need property listings to grow substantially to increase its earnings. That was demonstrated in FY 2026, when its Australian residential revenue increased by 12%, despite relatively flat listing volumes.

Its fully franked annual dividend also increased by 20% to $2.97 per share. If REA could sustain average dividend growth of around 7.2%, that payout would reach approximately $5.94 by 2036.

I wouldn’t be expecting 20% growth every year, but given its competitive advantages and opportunities to increase revenue per listing, I think doubling its dividend is achievable.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX share that I believe deserves a place on this list. The enterprise software provider supplies essential systems to councils, universities, government organisations, and businesses.

I like the stickiness of its offering. Once customers have adopted TechnologyOne’s software, switching to another provider can be expensive and disruptive. This helps the company retain customers and generate recurring revenue.

And as its customer base expands, I believe profitability could grow considerably. In fact, TechnologyOne reported annual recurring revenue of $598 million at the end of March 2026, representing an increase of 17%.

But management isn’t resting on its laurels. It is targeting more than $1 billion in annual recurring revenue by FY 2030.

That provides a strong foundation for future earnings and dividend growth, particularly as the company benefits from the economies of scale of its cloud software platform.

WiseTech Global Ltd (ASX: WTC)

A final ASX share I think has a lot of dividend growth potential is WiseTech Global.

The logistics software company is best known for CargoWise, which helps freight forwarders and logistics providers manage complex international supply chains.

I think the long-term opportunity here is significant. Global logistics remains a complicated industry, and companies are increasingly turning to technology to improve efficiency and manage their operations.

CargoWise is deeply embedded in many customers’ businesses, making it difficult to replace and providing WiseTech with recurring revenue.

In FY 2026, WiseTech generated US$410.7 million in free cash flow, an increase of 43%. I believe continued growth in CargoWise and successful integration of its acquisitions could support significantly higher earnings and dividends by 2036.

However, WiseTech arguably carries greater execution and governance risks than some of the other companies on this list.

Its borrowings following the e2open acquisition also mean debt reduction will compete with dividend growth for cash.

Nevertheless, with its relatively low dividend payout ratio and significant growth opportunities, I believe its dividends could potentially more than double over the next decade.

Which would I choose?

All five ASX shares offer different paths to higher dividend income, but I think REA Group and TechnologyOne stand out for their combination of competitive advantages, recurring revenue, and long-term growth potential.

Neither necessarily offers the highest dividend yield today. However, if they can continue growing earnings at attractive rates, I believe their dividends could be substantially larger in 2036.

The post I looked for ASX shares that could double their dividends by 2036. Here's what I found appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in REA Group, Technology One, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended Dicker Data and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.