Siteminder Ltd (ASX: SDR) shares have gone through a tough run, falling more than 50% since October 2025, as the chart below shows. I think the ASX share is now heavily undervalued for its long-term future and is one of Australia’s top shares.  

Siteminder provides software to help hotels around the world run their operations, analyse demand and room rates, and advertise their rooms.

It’s understandable investors are uncertain about what could happen next with the possibility of AI competition. At this price, I think the business’ ongoing rapid growth will help spur strong shareholder returns.

Strong revenue growth

One of the biggest drivers in deciding the returns of a business is how much revenue growth they can produce.

Revenue growth is the start of a financial flowchart that ends with the net profit.

In the FY26 half-year result, Siteminder reported total revenue growth of 25.5% to $131.1 million.

Subscription revenue grew 17.7% to $78.1 million thanks to property growth and average revenue per user (ARPU) expansion. It added 2,900 properties during the FY26 first-half, taking its total properties to 53,000 – it continues to target larger hotel properties.

On the transaction revenue growth side of things – which includes its new initiative smart platform contributions – the company saw revenue reach $53 million, up 39.1%.

It’s good to see there are various elements helping the business grow, which I think is a key sign for it being one of Australia’s top shares.

Big ambitions

One of the main factors that ultimately decides how big the returns can be is how large the company can become compared to what it is today. How much can the company grow its revenue? What is its total addressable market? What growth rate can it maintain?

Siteminder thinks it could grow its ARPU by five times if its existing customer base fully adopts its smart platform. The ASX share believes that AI can increase “pricing dynamism and distribution complexity”. Siteminder thinks it can capture a greater share of the market over time.

As its smart platform scales, management believe it positions Siteminder to accelerate towards its annual 30% revenue growth in the medium-term. I think any business growing revenue at that speed is worthwhile considering.

Rising profit margins

One of the most appealing things about a software business is how much operating leverage they have. In other words, they can deliver rising profit margins as they grow larger, allowing their net profit to soar. That’s a great sign of it being one of Australia’s top shares.

Time will tell how high the company’s profit margins can go, but the signs looked positive in the FY26 first half. The adjusted group gross profit margin improved 98 basis points to 67.8%, while the adjusted operating profit (EBITDA) more than doubled to $12.3 million and the adjusted net loss more than halved to $3.9 million.

Pleasingly, the adjusted free cash flow was positive, reaching $2.7 million compared to a $0.6 million loss in the first half of FY25.

In the coming years, I expect Siteminder’s net profit and cash flow to soar, which should hopefully justify a higher Siteminder share price.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in SiteMinder. 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.

CSL Ltd (ASX: CSL) shares closed in the red again on Wednesday afternoon. The shares ended the day down around 3% at $117.94 a piece.

The shares started rebounding in late-June and early-July but after peaking at $125.53 last week, the selloff resumed. 

The latest slide means the ASX biotech shares are now down around 31% over the year-to-date, and 55% lower than trading levels this time last year.

Why are investors selling off their CSL shares again?

There hasn’t been any price sensitive news out of CSL recently, but there has been a clear shift in sentiment towards a more cautious outlook.

It’s likely that the latest share price softening is the result of investors taking their gains off the table after the latest rally.

It looks like many investors are now looking forward to the company’s FY26 results announcement due next month. And are eager to see if there is any sign that management has improved operations since its latest disappointing update.

In May, CSL announced FY26 revenue guidance of around US$15.2 billion and NPAT of around US$3.1 billion. Both of these figures came in below market expectations.

The company also flagged expectations of another US$5 billion of non-cash impairments across FY26 and FY27.

My view on CSL‘s future

I think there is a lot of potential for CSL going forward. The business operates in a high-growth biotech market and its blood plasma division dominates the market for rare blood disorders and immunoglobulin products. 

Global demand for plasma therapies is expanding quickly, too. There is recurring demand for pharmaceutical therapies and limited competition, which means CSL can easily carve out a significant portion of the market.

I think that once CSL is able to turn around its financials, investor confidence will quickly follow. As for the immediate outlook, the share price increase over the remainder of 2026 will hinge on the company’s FY26 results, and whether the final figures meet or exceed expectations.

Do brokers still rate the biotech shares as a buy?

A few months ago, brokers were incredibly optimistic about the outlook for CSL shares, with the majority forecasting significant upside.

But now there has been a turnaround in expectations

Market Index data shows that the majority of brokers have now downgraded their rating on CSL to a hold. But the $131.15 average target price implies a potential 11% upside at the time of writing.

TradingView data also shows some analyst sentiment shifts. Out of 18 analysts, 10 now have a hold stance on the biotech company’s shares, and another eight have a hold or strong hold rating.

The average target price is a little higher at $138.88, which implies a potential 18% upside at the time of writing. 

The more bullish of the bunch think CSL shares could climb 68% to $197.85 over the next 12 months. Whereas more bearish brokers think there is potential for the shares to fall another 12% to $103.58 a piece, at the time of writing.

The post Down 55% in a year: Do brokers still rate CSL shares as a buy? 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 CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Passive income is one of the most rewarding things about investing. Getting money paid into my bank account year after year sounds great to me.

There are a wide range of investments available on the ASX such as ASX blue-chip shares. But, the biggest businesses aren’t necessarily the best names to buy with how large they already are and the limited earnings growth prospects.

Banking is becoming increasingly competitive, while resource prices are unpredictable at the best of times. In my view, the two passive income ideas below are better options than names like Commonwealth Bank of Australia (ASX: CBA), and could be used to generate $200 per month (or more)

APA Group (ASX: APA)

If I’m investing for passive income, I’d want to choose names I’m confident will continue paying dividends, even in difficult times.

APA is one of the largest energy businesses in Australia. With its key asset being national gas pipelines that span the country for tens of thousands of kilometres. It transports approximately half of the nation’s gas usage, so APA is an essential business for Australia.

It also owns a number of other important assets including gas processing, gas storage, gas power stations, electricity transmission, solar farms and wind sales.

The business regularly expands its asset portfolio.

For example, last week it announced that the Australian Energy Regulator (AER) had approved APA’s $213 million expansion of the South West Pipeline in Victoria to help meet projected peak day gas shortfalls from 2029, which will allow for more Victorian gas from the Otway Basin and Lochard’s Iona underground gas storage facility.

The business has a $3 billion organic growth pipeline, which gives it significant optionality to increase earnings and cash flow in the coming years. Plus, most of its revenue is climbing because it’s linked to inflation.

Why is it such a good passive income idea? It has increased its distribution every year for the past 20 years, which is an incredibly consistent and reliable record.

I expect the business could pay a distribution of at least 59 cents per security in 2027, which translates into a distribution yield of 5.75%.

WCM Quality Global Growth Fund (ASX: WCMQ)

The other ASX share I want to highlight is this exchange-traded fund (ETF) which focuses on investing in a portfolio of between 20 to 40 high-quality global stocks.

The fund’s goal is to outperform the global share market, which (as of June 2026) it has done over the past three months, three years, five years and since the ETF’s start in August 2018.

It looks for stocks with improving economic moats and corporate cultures that strengthen their competitive advantages. In my view, it’s a very effective investment strategy, and it’s likely to continue delivering strong returns over time, with very little reliance on the ‘Magnificent Seven’ for those returns.

In terms of the passive income, it targets a minimum annualised cash yield of at least 5% per annum. Net returns that are stronger than 5% can help up push up the value of the fund and support larger payouts in the future.

$200 of monthly passive income

The average dividend yield of these two stocks is 5.4%. Therefore, to generate $2,400 of annual passive income ($200 per month), it would take $44,444 spread across these two ideas.

But, these aren’t the only ASX shares I’d choose for passive income because I’d want to have a diversified portfolio.

The post 2 passive income ideas I’d use to generate $200 a month in 2027 appeared first on The Motley Fool Australia.

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• How much do I need in superannuation to receive $5000 per month in passive income?
• How I would turn $200,000 into an ASX retirement income portfolio
• How to build an ASX dividend portfolio that keeps paying you for decades
• How to make $50,000 of passive income from ASX shares like CBA
• How I would build an ASX portfolio with just 3 investments

Motley Fool contributor Tristan Harrison has positions in Wcm Quality Global Growth Fund. 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 positions in and has recommended Apa Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.