ASX small-cap shares are underperforming in 2026 amid four interest rate rises from the Reserve Bank and one in the US.

The S&P/ASX Small Ords Index (ASX: XSO) has collapsed 18% in the calendar year to date (YTD).

Meanwhile, the S&P/ASX All Ords Index (ASX: XAO) has fallen 2%.

Morgans reckons there are buying opportunities among the small caps today.

Let’s check out three that the broker highlighted in new notes this week.

Atomic Eagle Ltd (ASX: AEU)

Atomic Eagle shares are 35 cents, down 6.7% today and up 46% since listing last November.

Morgans has initiated coverage with a speculative buy call on this ASX small-cap energy share. 

The broker has a 12-month price target of 80 cents.

This indicates a potential 128% upside ahead.

Morgans said: 

AEU offers exposure to Muntanga, a simple, low-capex heap leach uranium project in Zambia, plus a 60% interest in the high-grade Madaouela project in Niger. Buy Muntanga, get Madaouela for free.

AEU trades on just A$2.1/lb EV/resource versus the peer average of A$4.8/lb. In our view, the market is largely valuing Muntanga alone, with Madaouela’s 116.5Mlb U3O8 foreign resource estimate contributing little to the current share price despite its scale, grade and strategic importance.

Near-term catalysts include Madaouela JORC conversion (end-2026), Muntanga North drilling results (Q4 2026) and a Muntanga resource upgrade as AEU works toward its 100Mlb+ target.

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting Group share price is $1.07, down 2.7% today and down 62% over 12 months. 

Morgans has a buy rating on this ASX small-cap consumer discretionary share. 

The broker has a 12-month share price target of $1.62.

This implies a potential 51% upside ahead.

Morgans said: 

BBN has provided a trading update for the first 14 weeks of FY27 which was broadly in line with expectations.

Comparable sales growth has moderated to +2.2% from +4.3% in the first 6 weeks of FY27 driven by the ramp up of temporary store closures in the period.

17 stores have now been refurbished to the Store of the Future format; they continue to deliver strong results, with average sales growth of 20% in the first year after re-opening, which sits within the 15-25% target range.

BBN has reiterated FY27 guidance for pro-forma NPAT of $19-21m, with sales of $585-600m (3-5% LFL sales growth), and 42% gross margin. Capex guidance was also maintained at $33-37m.

BBN is trading on <8x FY27F PE, which we believe undervalues its earnings growth profile over the next few years.

MotorCycle Holdings Ltd (ASX: MTO)

The MotorCycle Holdings share price is $2.89, up 0.4% today and down 11% over 12 months. 

Morgans has a buy recommendation on this ASX small-cap retail share. 

The broker has a 12-month price target of $4.30.

This suggests a potential 48% upside ahead.

Morgans said: 

MTO’s investor day reinforced a business transformed in scale and mix, with wholesale driving earnings in a challenging market, retail and data offering the next leg of improvement, and FY31 targets giving clarity on the growth trajectory ahead.

The group set FY31 targets (A$1.2bn+ revenue, ~6% implied ROS) pointing to ~8% pa sales growth and ~11-15% pa PBT growth over the 5 year period.

We’re encouraged by MTO’s clear strategy ahead. We think the market overlooks MTO’s wholesale business, which has meaningful growth levers across product, categories and partnerships.

We see scope for Retail upside from Harley-Davidson scale, ongoing brand rationalisation and data and systems integration.

Double-digit earnings growth and a net cash balance sheet look compelling on ~7x PE.

The post 3 ASX small-cap shares with 48% to 128% upside ahead: Morgans appeared first on The Motley Fool Australia.

More reading

• Could this ASX uranium developer more than double in value?
• This high-dividend ASX small cap could rise more than 50%: Broker
• Lovisa vs Baby Bunting: Which ASX retailer is the better buy today?

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 recommended Harley-Davidson. The Motley Fool Australia has recommended MotorCycle. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Owning Bank of Queensland Ltd (ASX: BOQ) shares today is expected to translate into a sizeable dividend payment in the coming years following the ASX bank share‘s release of its FY26 result.

The company revealed that statutory net profit after tax (NPAT) soared 88% to $250 million, though cash earnings after tax fell 7% to $358 million.

While commercial lending grew 16%, or $2 billion, home lending declined 8% to $4.6 billion, so there was a net reduction of lending between those two areas. The net interest margin (NIM) improved 6 basis points to 1.70% despite competition.

The bank’s annual cash earnings per share (EPS) was 54.4 cents (down 7%), which is a key figure that shows how easily (or not) it can fund the dividend.

BOQ dividend declared

The board of directors of the ASX bank share decided to declare a FY26 second-half dividend of 20 cents.

At the time of writing, this payout alone translates into a dividend yield of approximately 3% excluding franking credits and 4.2% including franking credits. In other words, it’s a sizeable payout.

The FY26 second-half payout represents a dividend payout ratio of 72.9% of reported second-half cash earnings, excluding notable items.

This upcoming payout is in addition to the FY26 first-half dividend and the special dividend that have already been paid.

When will the passive income be paid?

Before we get to the payment date of the BOQ dividend, we should look at the ex-dividend date.

The ex-dividend date tells investors the cut-off date for eligibility for the dividend payment. Investors need to own shares before the ex-dividend date, so that means they have until the end of trading on the previous trading day to be entitled to the upcoming payment. If the ex-dividend date is a Monday, they’ll need to own shares on Friday to be entitled to the payout.

For the FY26 second-half dividend, the ex-dividend date is Tuesday, 27 October 2026. That’s less than two weeks away!

After that, the payment date is 19 November 2026, so investors only have to wait just over a month until they receive this payout.

Owners of Bank of Queensland shares can also decide to take part in the dividend re-investment plan (DRP), where they receive new BOQ shares rather than dividend cash.

If someone wants to take part in the DRP, they need to elect to do so by 5pm on Thursday, 29 October 2026. DRP allows investors to grow their ownership of the business without paying additional brokerage for that investment.

The post Everything you need to know about the BOQ dividend appeared first on The Motley Fool Australia.

More reading

• Would I buy Bank of Queensland shares after looking at its results?
• Bank of Queensland earnings: FY26 profit up 88% as dividends stay steady
• Here are the top 10 ASX 200 shares today
• Bendigo and Adelaide Bank vs Bank of Queensland: Which is better value?
• 6 ASX shares downgraded by experts this week

Motley Fool contributor Tristan Harrison 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.

S&P/ASX 200 Index (ASX: XJO) shares are 0.06% lower at 8,722.8 points on Thursday.

Brokers have reduced their ratings on numerous ASX 200 shares this week.

Let’s see a sample.

Viva Energy Group Ltd (ASX: VEA)

The Viva Energy Group share price is $3.21, down 0.2% today.

Over the past month, this ASX 200 energy share has risen 5%.

UBS downgraded Viva Energy shares to a hold rating on Tuesday.

The broker increased its 12-month price target from $2.90 to $3.20.

This implies the stock is fully valued already.

South32 Ltd (ASX: S32)

The South32 share price is $4.54, down 4.3% today.

Over the past month, this ASX 200 mining share has fallen 7%.

Morgan Stanley downgraded South32 shares to a hold rating on Monday.

The broker lifted its 12-month price target from $5.10 to $5.20.

This suggests a potential 15% upside ahead.

TechnologyOne Limited (ASX: TNE)

The TechnologyOne share price is $30.53, down 2.2% today.

Over the past month, this ASX 200 tech share has ascended 7%.

RBC Capital downgraded TechnologyOne shares to a hold rating on Monday.

The broker shaved its 12-month price target from $33 to $32.

This implies a potential 5% upside ahead.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is $20.16, down 4.4% on Thursday.

Over the past month, this ASX 200 copper share has edged 2% lower.

Morgan Stanley downgraded Sandfire Resources shares to a sell rating this week.

The broker raised its price target slightly from $20 to $20.35.

This indicates a potential gain of just 1% over the next year. 

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is $1.22, down 1.8% today.

Over the past month, this S&P/ASX 300 Index (ASX: XKO) uranium share has tumbled 18%.

Jefferies downgraded Boss Energy shares to a hold rating this week.

The broker reduced its 12-month price target from $1.85 to $1.70.

This suggests a potential 39% upside ahead.

Sonic Healthcare Ltd (ASX: SHL)

The Sonic Healthcare share price is $18.35, down 0.1% today.

Over the past month, this ASX 200 healthcare share has fallen 5%.

Goldman Sachs downgraded Sonic Healthcare shares to a hold call this week.

The broker slashed its price target from $23.70 to $19.20.

This suggests potential capital growth of 5% over the next year. 

The post 6 ASX shares hit by broker downgrades this week appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I think could still be thriving in 2040
• 5 things to watch on the ASX 200 on Thursday
• Own ASX mining shares? Official forecasts show commodity prices peaking in FY27
• 2 ASX energy players that could return 20% to 30% over the next year
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Goldman Sachs Group and Jefferies Financial Group. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.