The S&P/ASX 200 Index (ASX: XJO) has had a slow year to date. 

Australia’s benchmark index is up less than 1% in 2026. 

Inflation, global conflict and high interest rates have all weighed on investor sentiment. 

However the slow rate of growth also means there are buy-low opportunities for stocks that have underperformed. 

Here are two ASX shares tipped for strong growth in the next 12 months. 

Magellan Financial Group Ltd (ASX: MFG)

Magellan Financial Group is an Australian-based diversified financial services group. Its heritage business is a funds manager investing in global equities and global listed infrastructure, founded in 2006.

It has risen just 0.7% year to date, but has declined 13% since March. 

The team at Morgans believe it could rise over the next 12 months. 

The broker updated its outlook on these ASX shares following the company’s 4Q26 AUM update.

MFG’s 4Q26 AUM update showed AUM fell ~A$1bn to A$36.7bn, driven by A$2.5bn of net outflows, partially offset by A$1.7bn of positive market movements. Overall, we view this as a softer quarter. 

The A$2.5bn in outflows is a step up from recent trend, running well above the A$0.3bn average outflows of the prior four quarters, and marking the largest quarterly outflow since 3Q23. We make relatively minor downgrades to FY26F/FY27F EPS on reduced AUM assumptions, following higher 4Q26 outflows than we expected. We lower our price target to A$11.26 (from A$11.29).

With the recent pullback in the share price, the broker now sees more upside and has upgraded its recommendation to an accumulate rating (previously a hold). 

From yesterday’s closing price, Morgan’s price target indicates 14% potential upside.

Adairs Ltd (ASX: ADH)

Adairs has also struggled in 2026. 

Adairs is a homewares and home furnishings retailer in Australia and New Zealand. The company has more than 170 stores across a number of formats as well as a growing online platform.

In 2026, its share price has fallen 18%. 

However, the team at Morgans recently updated its outlook on the company and sees rebound potential following recent share price softness. 

ADH provided a FY26 trading update, with Adairs performing ahead of expectations, Mocka largely in line, but ongoing weakness in Focus on Furniture continues to weigh on group earnings. 

Group EBIT is expected to be down ~1.3%. Given the ongoing weakness in Focus on Furniture and the extended remediation time required, the group intends to recognise an impairment charge of $62-28m ($56-60m after tax). This will be excluded from underlying earnings. We have made downward revisions to our earnings in FY26/27/28. 

The broker now has a $1.70 price target and an accumulate recommendation. 

From current levels, this indicates an upside potential of approximately 15%. 

The post 2 struggling ASX shares tipped to rebound up to 15% appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: James Hardie, Adairs, Minerals 260 shares
• 9 ASX 200 shares downgraded by analysts this week
• Are Adairs shares a buy, hold or sell after their trading update?
• This ASX retail stock is falling as a $68 million furniture headache bites
• 5 best ASX 200 financial shares of FY26

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 Adairs. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Space Exploration Technologies Corp (NASDAQ: SPCX) listing on the US tech-heavy Nasdaq exchange was among the most anticipated stock debuts in history, but now that the dust is starting to settle, the question of what the real value of the company’s shares is has arisen.

Investors in SpaceX betting the company can deliver

Part of the difficulty in valuing the company is that of its three divisions, only the connectivity division, which operates the Starlink internet service, is turning a profit at the moment.

While they have large aspirations, the space and AI divisions are still burning cash, even though they are already generating significant revenue.

UBS has run the ruler over the company, and in a note to clients published this week, it sets out a positive investment thesis for SpaceX shares.

Interestingly, the UBS team says that as the company brings its Starship rocket system into service, the total addressable market for the company could increase to US$30 trillion.

UBS added regarding the company:

We view SpaceX as an unparalleled set of assets with a multifaceted return profile and multiple drivers of upside for long term, risk tolerant investors. Starship – the most advanced heavy-lift, re-usable rocket – is the foundational technology that unlocks opportunities in launch, communications and AI compute creating a total addressable market nearing US$30T. Starship would effectively give SpaceX commercial control over access to space for the next decade, and we expect revenues/EBITDA to grow at a ~70%/90% CAGR through ’31 to US$660B/US$512B as opportunities in AI and connectivity scale and rapid reusability drives the launch cost per kilogram to just $200 from $1K currently ($50K for the space shuttle).  

UBS said while it was not factored into their base investment case, the company was “uniquely positioned to exploit off planet business models as they emerge, providing investors a call option as Elon Musk looks to fulfill his vision of making life multiplanetary”.

The broker said the Starship rocket system was five times larger than SpaceX’s Falcon 9 reusable rocket, which would dramatically improve the cost of getting into orbit.

Starship would then feed into the Starlink business, UBS said, enabling the deployment of next-generation satellites, “super-charging the business with 10x the capacity per satellite at about 1/10th the cost”.

UBS also noted that the company’s AI division already had contracts with Anthropic and Alphabet, “while inexpensive access to space opens up the market for orbital compute”.

Massive new markets await

UBS added:

Longer term, we believe the company could exploit other opportunities created by its control of cheap access to space including travel, cargo, orbital manufacturing and access to the lunar (and eventually, Martian) surface. While difficult to quantify, we believe these opportunities will come into focus over the next several years and become a key driver of the shares despite their lack of reference in our 5-year model.

UBS has a price target of US$210 on SpaceX shares.

The post How high will SpaceX shares go according to UBS? appeared first on The Motley Fool Australia.

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• ASX 200 drops as soaring oil prices rattle global markets
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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 positions in and has recommended Alphabet. The Motley Fool Australia has recommended Alphabet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It was a wild, volatile, but positive start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Monday. After opening in the red this morning, investors quickly turned things around with a run of buying. But that didn’t last long either, with the index spending most of the day in red territory.

However, the ASX 200 staged a late comeback and only just managed to finish in the green, gaining 0.028% for the day and finishing at 8,808.5 points.

This shaky start to the trading week for the Australian markets came after a happy finish to the American trading week on Friday night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) fared decently, rising 0.29%.

In a rare event, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) also gained 0.29%.

But let’s return to this week and the local markets to see how the various ASX sectors performed this session.

Winners and losers

At the front of today’s red sectors were tech stocks. The S&P/ASX 200 Information Technology Index (ASX: XIJ) was hit hard, plunging 2.48%.

Gold stocks were also hit hard, with the All Ordinaries Gold Index (ASX: XGD) cratering 1.89%.

Utilities shares were unpopular, too. The S&P/ASX 200 Utilities Index (ASX: XUJ) saw its value tank 1.63% today.

Consumer staples stocks were no safe haven either, as you can see by the S&P/ASX 200 Consumer Staples Index (ASX: XSJ)’s 0.91% slump.

Mining shares didn’t hold water. The S&P/ASX 200 Materials Index (ASX: XMJ) sank 0.65% this Monday.

Nor did healthcare stocks, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) dropping 0.61%.

Industrial stocks were our final losers today. The S&P/ASX 200 Industrials Index (ASX: XNJ) slid 0.17% down.

Let’s turn to the winners now. Leading the push higher were communications stocks, evidenced by the S&P/ASX 200 Communication Services Index (ASX: XTJ)’s 0.89% surge.

Consumer discretionary shares proved popular as well. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) jumped 0.86% today.

We could say something similar for financial stocks, with the S&P/ASX 200 Financials Index (ASX: XFJ) advancing 0.67%.

Energy shares also ran relatively hot. The S&P/ASX 200 Energy Index (ASX: XEJ) put on an additional 0.66% this Monday.

Finally, real estate investment trusts (REITs) only just got over the line, illustrated by the S&P/ASX 200 A-REIT Index (ASX: XPJ)’s 0.04% inch higher.

Top 10 ASX 200 shares countdown

Biotech company Mesoblast Ltd (ASX: MSB) was the best share on the index. Mesoblast stock leapt 4.91% higher this Monday to close at $2.35. This was potentially a reaction to a bullish broker note, which we covered this morning.

Here’s the rest of today’s best: 

ASX-listed company	Share price	Price change
Mesoblast Ltd (ASX: MSB)	$2.35	4.91%
Ampol Ltd (ASX: ALD)	$36.75	4.17%
Genesis Minerals Ltd (ASX: GMD)	$5.88	3.70%
Viva Energy Group Ltd (ASX: VEA)	$2.33	3.56%
Sigma Healthcare Ltd (ASX: SIG)	$2.92	3.55%
ARB Corporation Ltd (ASX: ARB)	$18.03	2.85%
Karoon Energy Ltd (ASX: KAR)	$1.45	2.12%
Insurance Australia Group Ltd (ASX: IAG)	$8.35	1.95%
Wesfarmers Ltd (ASX: WES)	$91.32	1.81%
Telstra Group Ltd (ASX: TLS)	$4.98	1.63%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended ARB Corporation and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.