It has been a tough year for ASX financials stock HUB24 Ltd (ASX: HUB).

Year to date, its share price is down over 15%.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has climbed just over 1% in the same period.

However, this ASX financials stock closed last week with a strong 6% gain on Friday, which could be the beginning of a rebound for HUB24 shares.

The team at Bell Potter has retained its buy recommendation on this ASX financials stock and laid out the potential for a big return in the next 12 months.

Here’s what the broker had to say. 

Quarter update

Hub24 is a diversified financial services business. The company’s core platform segment develops and provides an administrative services platform to financial advisers, stockbrokers, accountants, and their clients.

Bell Potter updated its financial model after a strong June quarter for global investment markets.

Since HUB24’s platform fees are linked to the value of client investments, stronger markets increase funds under administration (FUA) and future revenue expectations.

Bell Potter slightly increased its FUA forecasts for FY2026–FY2028 but left earnings per share (EPS) forecasts unchanged.

Strong Recovery in Global Markets

After a weak start earlier in the year, global share markets rebounded strongly and reached new record highs.

The biggest gains came from the US, while Europe also performed well.

Australia’s market rose but lagged behind most major markets, with the ASX 200 gaining 3.5% over the quarter.

What does this mean for this ASX financials stock?

Bell Potter expects HUB24 to report around $4.1 billion of net new client inflows for the quarter, plus $6.3 billion from investment market gains.

Together, these factors should lift total funds under administration. If quarterly inflows are closer to $5 billion, it would signal that growth has returned to its previous pace and could be positive for the share price.

Based on this update, Bell Potter has retained its buy recommendation and $110 price target on this ASX financials stock.

From Friday’s closing price of just over $81, this indicates an upside potential of almost 36%.

Our Buy recommendation is unchanged. While lumpy, the company delivered record net adviser additions and consistent new distribution agreements, providing material growth runway, and guidance is de-risked through mark-to-markets.

The share price has fallen -32% from the November peak, despite earnings upgrades and further positive adjustments still yet to flow through.

 

 

 

The post Why this ASX financials stock is tipped to rebound 35% in the back half of 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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 Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The turnaround has been sharp.

The S&P/ASX 200 Health Care Index (ASX: XHJ) hit a nine-year low on 3 June 2026, having fallen 39% over the prior twelve months.

Since then, the index has risen by 21% in just one month, compared with a 0.7% rise in the broader S&P/ASX 200 (ASX: XJO) index over the same period.

CSL Ltd (ASX: CSL), Cochlear Ltd (ASX: COH), and ResMed Inc (ASX: RMD) are all up.

The question is whether this recovery is real, or whether the sector has simply bounced from deeply oversold levels.

What drove the selloff in the first place

Understanding the recovery requires understanding what caused the fall.

Healthcare was the worst-performing sector of all eleven ASX 200 market sectors in FY26.

The sector was hit by a combination of factors specific to individual companies and broader macro forces.

A stronger Australian dollar eroded the offshore profits of CSL, which generates most of its revenue in the United States. Rising interest rates weighed on the valuations of high-multiple growth stocks across the sector. Earnings downgrades at CSL and Cochlear removed the premium earnings trajectory the sector had traded on for years. And a rotation toward energy and resources stocks pulled capital away from healthcare regardless of individual company fundamentals.

CSL: the most important recovery to watch

CSL is up 32% since 3 June, but remains down close to 50% over the past twelve months.

The FY26 result, due on 19 August 2026, will be the most important test of whether the recovery has earnings support or is simply a valuation rebound.

Management has pointed to improving Behring division revenue in the second half of FY26 as the key catalyst.

Morgans retains a buy rating on CSL with a price target of $147.59. However, the broker acknowledges that a sustained recovery in sentiment may take several quarters to fully materialise as the market waits for proof in the numbers.

ResMed: the most compelling valuation story

ResMed is up 18% since 3 June but remains at its lowest valuation in over a decade.

Morgans has retained its buy rating on ResMed with a price target of $41.72. The broker noted that the stock has de-rated to just 16 times forward earnings despite the market continuing to forecast double-digit earnings per share growth.

Morgans points out that while GLP-1 therapy risks exist, current industry data and operational performance continue to support the long-term investment case.

Q2 FY26 showed ResMed revenue rising 11% to $1.42 billion with net income up 14%, confirming the underlying business is growing strongly despite the macro noise.

Cochlear: the longest road back

Cochlear is up 31% since 3 June but remains the most deeply impaired of the three. Cochlear shares are still down approximately 52% year to date and 58% over twelve months.

The majority of brokers covering the stock still carry a hold rating, with the consensus price target of $137.10 implying only modest further upside at current levels.

Bell Potter’s Christopher Watt said that while near-term trading challenges persist, the long-term opportunity remains compelling. The broker added that until there is clearer evidence that volumes are stabilising, a more balanced stance is appropriate.

Is the recovery sustainable for ASX healthcare shares?

The honest answer is that the recovery has largely been driven by sector rotation rather than a genuine improvement in underlying fundamentals.

That matters because sector rotation can reverse just as quickly as it appears.

The August reporting season will be the real test.

CSL’s FY26 numbers, due 19 August, will either confirm that the Behring margin recovery is tracking as management described or force another round of earnings estimate cuts.

For investors who believe the long-term investment cases for CSL, ResMed, and Cochlear are intact, the current entry points, even after a 21% sector rally, look more attractive than anything available in the past five years.

For investors looking for a quick trade, the easy part of the recovery may already be done.

Foolish takeaway for ASX healthcare shares

ASX healthcare shares surged 21% in a month from a nine-year low.

CSL, ResMed, and Cochlear have all participated meaningfully in that recovery.

Whether the rally continues depends on the August reporting season delivering the earnings support that sector rotation alone cannot provide indefinitely.

The post ASX healthcare shares have jumped 21% since June. Can the recovery continue? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Objective Corp, ResMed, and South32 shares

Motley Fool contributor Mark Verhoeven 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, Cochlear, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL and Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares Echo IQ Ltd (ASX: EIQ) and Sunrise Energy Metals Ltd (ASX: SRL) have enjoyed big returns in 2026.

These ASX shares have risen by over 500% and 125% respectively since the start of the year. 

This huge rise is difficult to ignore for growth investors, and experts have provided updated commentary on these soaring stocks. 

Here is what brokers are saying. 

Volatility expected for Echo IQ

A new report from Bell Potter has included updated guidance on Echo IQ shares. 

It is an ASX-listed medical technology company utilising proprietary, AI-driven software (the EchoSolv platform) to analyse echocardiographic data to aid clinicians in diagnosing serious conditions like aortic stenosis (AS) and left ventricular dysfunction more accurately.

Its share price has stormed higher in 2026 on the back of key US deals and AI development.

A note out of Bell Potter indicates it could experience some volatility moving forward. 

Looking on the positive side, the broker said Echo IQ is making good progress by developing new products and securing long-term funding.

A major positive was partnering with Pro Medicus Ltd (ASX: PME), which gives credibility to its EchoSolv platform.

However, winning new hospital and radiology customers in the US will take time – likely years, not months.

Price target increased 

Bell Potter has increased its price target to $1.75 per share (from $1.65).

The higher valuation reflects the stronger financial position after the capital raise.

However, the broker expects the share price to remain volatile because:

• Revenue growth is expected to be modest over the next two years.
• The company will continue to spend significant cash.
• The share price will likely move based on announcements of new customer wins.

The broker now has a speculative hold recommendation, and based on the updated price target, sees limited share price upside in the next 12 months. 

Last week, these ASX shares closed trading at $1.65. 

Sunrise Metals could keep rising 

Sunrise Metals shares have also rocketed higher in 2026. 

The company is focused on the development and application of ion-exchange technology for extracting valuable metals in the mining industry and for purifying and recycling wastewater.

Positive development updates have helped swing momentum to the positive side for these ASX materials shares. 

According to analyst views via TradingView, this could continue. 

These ASX shares closed last week trading at $17.75 per share. 

The average analyst forecast indicates Sunrise Metals shares could hit $20.00 per share in the next 12 months. 

From last week’s closing price, this indicates a further 12% upside. 

 

 

The post What are experts saying about these red hot ASX shares? appeared first on The Motley Fool Australia.

More reading

• Healthcare shares lead the ASX 200 again as sector rotation gathers pace
• 10 of the best ASX shares to buy in FY 2027
• Up more than 550% in a year, why is this ASX biotech charging even higher?
• Buy, hold, sell: Collins Foods, Karoon Energy, and Pro Medicus shares
• Top 3 ASX healthcare stocks to buy today

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