Xero Ltd (ASX: XRO) shares have skipped further into the red in Tuesday morning trade.

At the time of writing, the shares are down around another 2% to $68.58 a piece. At one point this morning, the shares were changing hands as low as $68.48 each. 

This morning’s losses extend yesterday’s 4.3% decline. 

It’s been a long line of share price declines for the ASX tech company over the past year. Since spiking to an all-time high of $193.77 a piece in June 2025, the shares have shed a huge 64% of their value.

They’re now down around 38% for the year to date and 59% lower than this time a year ago.

What happened to Xero shares?

Xero shares have faced several major headwinds over the past 12 months. 

The continually falling share price is mostly the result of a sector-wide sell-off of technology stocks. This followed rising concerns that AI could disrupt traditional software models. 

In late 2025 and early 2026, many investors were spooked by the idea that smarter, cheaper tools could reduce the need for subscription platforms like Xero. Sentiment for tech shares, including Xero, quickly turned south. 

At the same time, a sharp increase in the value of some ASX tech shares in 2025, including Xero, also sparked concerns that tech companies were overvalued and overdue for a price correction. 

The good news is that despite the continued stock sell-off, there is still enormous potential for Xero and its shares over the next 12 months.

Xero benefits from an incredibly sticky subscription base and high customer retention rates, which means its revenue is relatively stable. 

As a relatively small market player, it also has a lot of growth potential. Xero is working to expand its presence in the UK and the US. It is also focused on expanding its product suite, including payroll and workflow automation offerings. 

What do brokers tip for the ASX tech stock next?

Market Index data shows that the majority of brokers are very bullish on Xero shares and have a buy rating on the stock. The average target price of $145.69 implies an impressive 112% upside at the time of writing.

TradingView data shows something very similar. The majority of analysts have a strong buy rating on Xero shares. They have a slightly lower $130.12 average target price, but that still implies a potential 85% upside ahead.

Some are even more optimistic and forecast the shares to rocket another 237% to a maximum target price of $237.38.

Last month, Morgans upgraded the stock from hold to add and assigned a $215 price target. The broker cited improving sales momentum and disciplined cost management. 

The post Here’s what brokers tip for Xero shares over the next 12 months 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Steadfast Group Ltd (ASX: SDF) share price is back in the spotlight today, as the company announces a major update on a potential takeover bid, with a non-binding indicative proposal by a consortium now including global investor KKR alongside Amwins and Dragoneer. The offer stands at $6.00 per share in cash.

What did Steadfast Group report?

• Receipt of an updated non-binding, indicative proposal from a consortium now including KKR
• Indicative offer price: $6.00 per share in cash, less any dividends or distributions after 5 June 2026
• No change to the transaction timetable or process as a result of KKR’s involvement
• Current exclusivity and process deed remains in place with Amwins, Dragoneer, and now KKR
• There is no certainty a binding agreement will be reached

What else do investors need to know?

Amwins and Dragoneer confirmed that KKR’s addition to the consortium as co-lead investment partner will not affect the current timetable or process. The participation of KKR is not a condition for Amwins and Dragoneer to enter a binding deal with Steadfast.

Steadfast’s board reminds shareholders that there is no guarantee this proposal will progress to a binding agreement. No action is required by shareholders at this stage, and further updates will be provided as appropriate.

What’s next for Steadfast Group?

Steadfast will continue engagement with the consortium under the current process deed, maintaining strict confidentiality and assessing the proposal thoroughly. The board will update the market as soon as there are any material developments.

For now, the company remains focused on supporting its expansive broker and agency networks across Australia, New Zealand, Singapore, and the USA, and delivering long-term value for shareholders while talks progress.

Steadfast Group share price snapshot

Over the past 12 months, Steadfast shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Steadfast Group takeover bid update: KKR joins consortium appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 Steadfast Group. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Commonwealth Bank of Australia (ASX: CBA) shares can divide investors.

Some see the bank as too expensive. Others see it as one of the highest-quality businesses on the ASX.

I understand both views.

But for long-term investors, I still think CBA shares are worth buying.

Why CBA keeps attracting investors

CBA has built a very strong position in Australian banking.

That does not just come from size. It comes from customer relationships, trust, deposits, digital tools, and a brand that millions of Australians interact with regularly.

Banking can look simple from the outside. Customers borrow, save, spend, and invest. But the best banks become deeply embedded in those financial decisions.

That is where I think CBA stands apart from Westpac Banking Corp (ASX: WBC) and the rest of the big four.

The bank has invested heavily in technology, digital banking, fraud prevention, payments, and customer experience. Those areas can help improve retention, reduce friction, and support better decision-making.

I also think CBA’s deposit franchise is a major advantage. A strong deposit base can be valuable when funding costs, interest rates, and competition shift.

The valuation challenge

The main issue with CBA shares is valuation.

Investors usually have to pay a premium for the bank, and that can limit future returns if earnings growth slows or sentiment changes.

There are also normal banking risks to watch, including mortgage competition, bad debts, regulation, and pressure on margins.

CBA is a high-quality bank, but it is still a bank. Its profits are tied to the health of households, businesses, property markets, and the wider economy.

That means investors need to be sensible with their expectations.

I would be more excited about buying during a market pullback. But I do not think long-term investors need to wait for a perfect entry point before starting a position.

Why I would still buy

My view is that CBA shares remain a buy because quality can compound for a long time.

The bank has one of the strongest retail franchises in the country. It has a leading digital position. It has scale. It has a trusted brand. And it has the financial strength to keep investing through different cycles.

Those advantages are hard to build quickly.

I also like that CBA can provide a source of dividends. For investors who want a core ASX blue-chip holding with a side of income, its shares remain attractive.

Foolish Takeaway

CBA shares are rarely the cheapest bank shares on the market.

I think the bank’s premium reflects a stronger franchise, better digital capabilities, and a level of customer trust that is hard to replicate.

There will be times when the valuation feels stretched, but for patient investors looking beyond the next year or two, I think CBA shares remain a high-quality ASX buy.

The post Are CBA shares still worth buying for the long term? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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.