Shares in Iress Ltd (ASX: IRE) have been heavily sold off this week following the company’s results announcement, begging the question, are they now looking cheap?

The analyst team at Morgans certainly think so, with a buy recommendation on the shares and a share price target which has some serious upside.

We’ll get to that shortly. First, let’s look at what Iress announced.

Solid results but weaker than expected

The financial data company said on Monday that it had delivered a “solid” result, with improved earnings quality driven by disciplined execution.

Net profit came in at $32 million for the first half, up 85% on the same period in the previous year, while underlying net profit was up 18.4% to $38.8 million.

For the continuing business, revenue increased 2.5% on a constant currency basis to $250 million.

Iress declared a first-half dividend of 14 cents, up 27.3%.

The company’s Managing Director Andrew Russell said of the result:

Execution has shifted from simplifying the business to investing in product evolution and sustainable growth. We are evolving our products, accelerating engineering capability and increasing delivery velocity through our partnership with Thoughtworks and the disciplined adoption of AI. While revenue growth is expected to remain measured in the near term, we are confident in our strategy and in delivering our FY26 Cash EBITDA margin exit run-rate target of 25%. Our focus is on building a higher quality software business with better products, stronger customer relationships and disciplined capital allocation to create sustainable long-term value.

For the full year, the company is expecting to grow underlying profit by 15% to 21%.

Shares in this ASX technology company looking cheap

The Morgans team said the result was softer than expected, “with slower revenue momentum along with currency headwinds the main drivers”.

The broker added:

IRE has executed on stabilising the business over recent years. Further efficiency plans are now underway; however, improving the customer proposition and new product initiatives are required to drive organic revenue growth. We view IRE’s earnings base as more defendable and free cash flow as largely improving. Corporate appeal adds to the investment case.

Morgans said that Iress had delivered on annualised cost savings of $31.5 million ahead of schedule, and was targeting another $6 to $9 million in savings in the second half.

Morgans reduced its price target for Iress from $10.35 to $9.65. This is still 44.4% higher than the current share price of $6.68.

The broker expects Iress to pay a full-year dividend yield of 4% this year, rising to 4.7% by 2028.

Iress is valued at $1.31 billion.

The post After a steep fall on results, this ASX technology stock could be 40% undervalued appeared first on The Motley Fool Australia.

More reading

• Iress half-year earnings: Higher profits, bigger dividend, AI push
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today

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 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 flat at 9,072 points as earnings season continues on Tuesday.

The benchmark index is experiencing a strong start to the new financial year.

Just seven weeks into FY27, and the ASX 200 is already up 3.3%.

That compares to a 2.8% rise over the whole of FY26 (total return, including dividends, of 7%).

Two of the drivers are the healthcare and technology sectors, which are recovering from extended slumps.

Healthcare shares are up 17% so far in FY27, while tech is up 8%.

An increasing number of Australians are turning to ASX exchange-traded funds (ETFs) to make investing easier.

ASX ETFs provide exposure to a basket of stocks, thereby enabling great diversification in a single trade.

They’re also an easy way to gain exposure to international shares via our local exchange.

In today’s rising market, Andrew Wielandt from DP Wealth Advisory has recommended two ETFs to buy.

On The Bull this week, Wielandt explains his recommendations.

Betashares Global Royalties ETF (ASX: ROYL)

The ROYL ETF is $13.89, up 0.3% on Tuesday and up 15% over 12 months.

Wielandt explained his buy rating:

ROYL is a diverse exchange traded fund operating across a number of countries, including the United States, Canada, Brazil and Denmark.

It holds about 40 companies, with investments including ARM Holdings PLC, Texas Pacific Land Corporation and Wheaton Precious Metals at August 11, 2026.

ROYL focuses on companies earning royalty and intellectual property income.

What appeals is relatively steady returns compared to other cyclical investments.

The company posted a return of 15.59 per cent after fees in the past 12 months to July 31, 2026.

Munro Climate Change Leaders Fund Active ETF (ASX: MCCL)

The MCCL ETF is $18.14, up 0.9% today and up 7% over 12 months.

Wielandt discusses his buy recommendation:

This exchange traded fund holds a concentrated portfolio of companies aiming to benefit from decarbonisation during the next decade.

The ETF holds between 15 and 25 positions involved in clean energy, clean transport and energy efficiency.

The fund posted a return of 16.9 per cent for the 12 months to July 31, 2026.

However, given its highly concentrated nature, it’s important to note that returns can be volatile.

In our view, MCCL can also be considered an investment in the future and can be part of a balanced portfolio.

I hold MCCL in my self-managed super fund (SMSF).

Best ASX ETFs of FY26

Check out the 6 best ETFs holding ASX shares of FY26 here.

You can also review the 6 best international ETFs of FY26 here.

The post 2 ASX ETFs to buy as the market gathers strength: expert 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 positions in and has recommended Arm Holdings. 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 up 0.4% to 9,105.1 points on Tuesday.

As earnings season continues, top broker Morgans has issued some new ratings on ASX 200 shares.

Let’s check them out.

Aristocrat Leisure Ltd (ASX: ALL)

The Aristocrat Leisure share price is $63.30, down 1.9% today and down 10.3% over 12 months. 

Morgans has downgraded this ASX 200 consumer discretionary share from buy to accumulate.

The broker said: 

We attended the Australasian Gaming Expo (AGE) in Sydney last week, which serves as the key annual showcase for the region’s major slot machine manufacturers.

Alongside meetings with other suppliers and operators, we attended a Q&A session with ALL management and took a guided tour of its product.

Land-based momentum looks solid to us. ALL continues to push new titles onto its existing cabinets while laying the groundwork for the next wave of hardware and the content that comes with it.

Despite the stock trading on c.23x forward PER with a c.2% yield, we continue to see upside potential given the strong momentum entering peak season.

However, following recent share price strength, we revise our rating to Accumulate with a 12-month target price of A$70.00 (prev. A$67.00).

Telstra Group Ltd (ASX: TLS)

The Telstra share price is $4.74, down 1.5% today and down 4% over 12 months. 

Telstra shares fell 5.2% after the telco released its full-year FY26 results last Thursday.

Morgans has a hold rating on this ASX 200 telecommunications share. 

The broker said: 

TLS’s FY26 result and FY27 guidance were largely as expected, with FY26 itself coming in at the middle-to-top end of guidance.

This largely in-line result wasn’t enough for the marginal buyer and TLS shares ended the day down 3%.

We lift FY27/28 EPS by ~4%. Our target price is reduced to $5 as we remove our previously applied premium to valuation.

Hold recommendation retained.

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price is $37.45, down 1.1% today and up 15% over 12 months. 

ANZ shares rose 4.5% after the bank released its 3Q FY26 update last Thursday.

Morgans maintained its trim rating on this ASX 200 bank share. 

The broker said: 

Underlying earnings growth, delivery of cost decline and low bad debts were a feature of the trading update, with lifting momentum behind revenue growth.

Forecast changes are immaterial. 12-month target price reset to $33.53/s.

TRIM retained, with potential TSR at current prices of c.-9% (including 4.4% yield).

The post Buy, hold, sell: Aristocrat, Telstra, ANZ shares appeared first on The Motley Fool Australia.

More reading

• How much do I need in my superannuation to earn $50,000 per year in passive income?
• How much could the Telstra share price rise in the next year?
• These ASX 200 shares could generate $10,000 per year in passive income
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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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.