Not many ASX floats have managed to create much excitement lately.

But FDC Consolidated Holdings Ltd (ASX: FDC) has made a pretty strong first impression.

The construction and fit-out group listed on Thursday at an issue price of $3 per share.

Shortly after hitting the market, FDC shares are currently trading at $3.50 apiece.

That represents a 16.7% first-day jump and makes the new ASX stock pretty hard to miss.

Here’s what investors are buying into.

FDC makes its ASX debut

FDC officially hit the ASX boards at 12:30pm AEST today under the ticker code FDC.

The company raised $400 million through the issue of ordinary shares at $3 each.

UBS Securities Australia and MA Moelis Australia Advisory acted as underwriters and joint lead managers, with Ord Minnett as co-lead manager.

The initial public offering (IPO) involved 133.6 million shares, representing around 41% of the company.

Based on the offer price, FDC was valued at about $969 million before trading began.

Today’s strong debut shows investors are firmly backing the company’s profits, history, and position in the construction market.

What does FDC do?

FDC has been around for 35 years and works across construction, interior fit-out, refurbishment, data centres and building services.

It has offices in Sydney, Adelaide, Brisbane, Canberra, Melbourne and Perth.

The company works on offices, commercial buildings, hospitals, hotels, data centres, schools and other major projects.

Among those, data centres are probably the part investors will be watching most closely, given the amount of money still flowing into digital infrastructure.

Why are investors buying?

At this stage, the first-day jump looks like demand simply outstripping supply.

FDC is forecasting revenue of $1.9 billion in FY27, compared with $1.5 billion in FY25. The company also expects EBIT of about $100.1 million in FY27.

For FY25, FDC reported $1.5 billion in revenue and $112 million in profit before tax.

Those numbers give investors something to work with from day one.

The float included a large sell-down by existing holders, although the Cottle family and staff are still expected to retain a sizeable stake.

Can the strong start continue?

Today’s jump is a nice start, but the real test comes after today’s float.

FDC now needs to show it can keep winning work, manage costs, and turn its project pipeline into steady earnings.

There’s an obvious interest in the business, especially after a quiet run for ASX IPOs.

But once the first-day excitement settles, the market will want to see the numbers hold up.

The post This new ASX IPO has jumped 17% on its first day appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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.

WiseTech Global Ltd (ASX: WTC) shares have slumped further into the red in Thursday lunchtime trade.

At the time of writing, the shares are down around 0.2% to $34.58 a piece, extending yesterday’s losses. On Wednesday afternoon, the ASX tech shares closed around 8% lower.

The shares have recovered around 20% from a five-year low in late-June, but the recovery hasn’t been sustained and is nowhere near enough to recoup losses shed over the past year.

For the year to date, WiseTech shares are still down around 50%, and they’re almost 70% lower than this time last year.

Why are WiseTech shares struggling to rebound?

WiseTech shares have suffered a steep, sustained price decline over the past 12 months. The decrease has mostly been driven by a tech-sector-wide sell-off and an investor rotation to more stable assets amid global volatility earlier this year. 

The company recently faced headwinds following media reports that the Australian Federal Police is investigating founder Richard White over alleged trafficking matters. The matters relate to a former cleaner at WiseTech.

It has been claimed that White exploited a former cleaner’s immigration status and financial position and provided false information on a visa application. 

The company responded and said that the alleged investigation relates to Richard White in a personal capacity. It added that there is no suggestion in this media commentary of an investigation into WiseTech.

But it hasn’t stopped investors rushing to the exits.

The question now is, how low can WiseTech shares go?

Here’s what the experts think.

Broker forecasts for the ASX tech stock this year

WiseTech shares have suffered a continual tumble this year, but if broker forecasts are anything to go by, the end should be in sight.

Market Index shows that the majority of brokers (seven out of eight) have a buy rating on the shares. The average $72.80 target price implies a potential 111% upside over the next 12 months, at the time of writing.

TradingView data also shows potential for a strong upside ahead. Out of 15 analysts, 12 have a buy or strong buy rating on WiseTech shares. Another three have a hold rating. 

Their average target price is a little lower at $65.60, but that still implies a potential 90% upside at the time of writing. In fact, interestingly, the range between the minimum and maximum target price is huge, but they all agree there will be some element of upside ahead.

The more bullish analysts are tipping an enormous 248% upside to a maximum target price of $120.60. Even the minimum $37.89 target price implies a potential 10% upside at the time of writing.

Bell Potter is one broker who is optimistic about the shares. The broker has a buy rating and a $71.75 target price on the shares.

Analysts are clearly very optimistic about the outlook for WiseTech shares. But I think that the latest sell-off shows that investors are still nervous that the company can deliver.

Even so, WiseTech has a strong competitive advantage in the global logistics industry. I think the company’s future hinges primarily on its FY26 results. If the company manages to reach or exceed its upgraded guidance, I think we’ll see a turnaround in investor sentiment.

The post How low could WiseTech shares go? 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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.7% to 8,726.2 points on Thursday.

With a new financial year now underway, perhaps you are looking for some fresh investment ideas.

Morgan Stanley reckons we shouldn’t go near these ASX 200 shares for now.

Here are five stocks with sell ratings from the broker at the start of FY27.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is $18.30, down 0.5% today.

The ASX 200 mining share has risen 13% over 12 months.

Morgan Stanley reiterated its sell rating on Fortescue shares today.

The broker cut its 12-month price target from $18.85 to $17.25.

This implies a potential 5% downside ahead.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $36.09, down 0.4% today.

The ASX 200 bank share has risen 7.1% over the past year.

Morgan Stanley reiterated its sell rating on Westpac shares with a $31.50 target yesterday.

This implies a potential capital decline of 13% ahead.

Deterra Royalties Ltd (ASX: DRR)

The Deterra Royalties share price is $4.39, down 2.1% today.

The ASX 200 materials share has risen 12% over 12 months.

Deterra has a portfolio of 14 royalties and royalty-like offtake assets in seven nations.

It is invested in iron ore, lithium, mineral sands, copper, molybdenum, and gold.

Mining royalties are agreements in which a third party provides financing to a miner in exchange for a portion of future revenues or production.

Morgan Stanley downgraded the stock to a sell rating today.

The broker shaved its 12-month price target from $4.45 to $3.95.

This suggests a potential 10% downside ahead.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is $167.10, down 0.6% today.

CBA shares have dropped 6.6% over the past 12 months.

Morgan Stanley maintained its sell rating on CBA shares with a $125 target this week.

This suggests a potential 25% downside for FY27.

National Australia Bank Ltd (ASX: NAB)

The NAB share price is $38.98, down 1.6% today and down 0.8% over 12 months.

Morgan Stanley kept its sell rating on NAB shares with a $34.50 target this week.

This implies an 11% downside from here.

The post Dump ’em! Morgan Stanley slaps sell ratings on 5 ASX 200 shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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.