Author: openjargon

There are many strategies and themes that can guide an investor. One area that investors may have considered this year is defensive shares. 

Investors may choose to invest in ASX defensive stocks during periods of global uncertainty because these companies tend to generate more stable earnings and dividends even when economic conditions weaken. 

Why investors are targeting defensive shares in 2026

The current conflict involving Iran has increased concerns about disruptions to global oil supplies, which has pushed energy prices higher and contributed to renewed inflation fears. 

Higher inflation can lead central banks to maintain or increase interest rates, which we have already seen in 2026. 

This can place pressure on growth-oriented sectors such as technology and consumer discretionary stocks. 

In contrast, defensive sectors on the ASX – including utilities, healthcare, consumer staples, and telecommunications – often perform more steadily. 

This is because demand for their products and services remains relatively consistent regardless of economic conditions. 

As geopolitical tensions and rising oil prices continue to create market volatility, many investors view defensive stocks as a safer option for preserving capital and generating reliable income in an uncertain environment.

While these economic conditions seem to point towards a case for defensive options, some well-known defensive shares are receiving mixed views from experts. 

Here’s the latest guidance on three defensive options. 

Suncorp Group Ltd (ASX: SUN)

Suncorp shares are considered defensive because insurance demand tends to remain steady even in weaker economic conditions.

However this hasn’t translated to growth in 2026 for Suncorp shares. 

Its share price is down 2.4% in 2026 compared to a flat performance from the S&P/ASX 200 Index (ASX: XJO). 

Based on recent estimates from brokers, it is hovering around fair value. 

These defensive shares closed last week at $17.37 each, right around Morgan’s recent target of $17.79. 

Woolworths Group Ltd (ASX: WOW)

Woolworths dominant market share in the Australian supermarket landscape has long held it in good stead even during tough economic conditions. 

This has led to an 18% rise in share price year to date for Woolworths shares. 

The team at JP Morgan still sees modest upside in the short term for these defensive shares, recently placing a $37 price target on the company. 

From yesterday’s closing price of $34.75 this indicates an upside of roughly 6%. 

Transurban Group (ASX: TCL)

Transurban is one of the world’s largest toll-road operators, managing and developing urban toll-road networks in Australia and North America. 

The company develops, operates, maintains and finances toll-road networks. 

This places the company firmly in the defensive theme as revenue is supported by long-term transport infrastructure usage.

It has risen a modest 2% in 2026, however much of its value lies in its consistent dividend payments.

Recent price targets from experts are hovering around $16.10, indicating a modest capital growth potential from the current price of $14.49. 

Foolish takeaway

Defensive shares on the ASX may not deliver the same high-growth returns as more cyclical or speculative stocks.

However they can play an important role in preserving capital.

In periods of volatility these stocks tend to be more resilient, meaning they are more likely to hold their value and provide steady dividends even when broader markets decline.

The post Should investors still be thinking defensive in today’s market? appeared first on The Motley Fool Australia.

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• This ASX 200 dividend share could be a quiet winner for the next decade
• Buying Woolworths shares? Here’s the yield you’ll get today

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

The Australian Age Pension is one of the most generous in the world, but I’d rather rely on quality high-yield ASX dividend stocks.

I like the idea of owning businesses that are able to offer a pleasing level of passive income and payout growth over time.

APA Group (ASX: APA) is one of the ASX dividend stocks I’d happily rely on, but not the only one. I think it’s important to have a diversified portfolio when it comes to dividends.

There are a few reasons why APA is an appealing option.

Defensive earnings

If I’m relying on an ASX dividend stock to continue paying passive income across all economic conditions, I’d want to choose a business with resilient earnings, since that’s what funds the passive income.

ASX bank shares and ASX mining shares can see their profits materially drop when an economic cycle or resource cycle goes through a low point, which we’ve seen this decade.

APA’s business model is about owning energy assets, including a large gas pipeline network, gas processing and storage facilities, gas-powered energy generation, solar power, wind power, energy storage and electricity transmission.

Energy is always in demand and APA plays a key part in that for Australia’s economy. APA actually transports half of Australia’s gas usage. Additionally, most of its revenue is linked to inflation, so it’s able to act somewhat as a long-term hedge against inflation.

High-yield ASX dividend stock

One of the more appealing aspects of APA is the pleasing level of passive income it provides straight away.

It expects to pay a distribution of 58 cents per security for FY26, which translates into a forward distribution yield of approximately 5.6%, at the time of writing. In my view, that’s competitive with the very best savings accounts right now, with payout growth potential.

Rising payout

APA has an excellent record of consistent distribution growth. For me, this is one of the absolute key reasons I prefer the ASX dividend stock compared to the Age Pension.

The business has increased its annual payout every year since 2024 – more than two decades of continuous passive income growth.

I’m not expecting huge payout growth in the shorter-term, but APA’s steady progression is a real positive for income-focused investors.

How many APA shares would it take to match the Age Pension?

Currently, the maximum Age Pension for a single person is approximately $31,200 annually.

To receive that much from APA, an investor would need 53,794 shares based on the FY26 payout, though I’m expecting the FY27 payout to be a bit larger, so fewer shares would be needed for the next financial year.

I’d suggest having more than just one high-yield ASX dividend stock in a portfolio, but APA would certainly be an effective inclusion, in my opinion.

The post 53,794 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension appeared first on The Motley Fool Australia.

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

ASX dividend stocks are a great way for savvy Australian investors to earn a regular passive income. 

And thanks to sharemarket volatility so far in 2026, several good-quality dividend stocks are now offering shareholders a very attractive dividend yield.

While chasing the highest yield ASX stock isn’t always the best strategy, there are some reliable earners out there. 

The goal should be to find a financially sound dividend-paying business that pays a reliable dividend at a good rate.

Here’s one that has caught my attention recently.

My high-yield ASX dividend stock of choice

IPH Ltd (ASX: IPH) is an international intellectual property (IP) services group. Essentially, the business acts as a holding company for a network of IP firms. Its major subsidiaries include global IP brands AJ Park, Griffith Hack, Pizzeys, Smart & Biggar, and Spruson & Ferguson, as well as IP business Applied Marks.

These subsidiaries protect, commercialise, enforce, and manage clients’ IP rights worldwide. IPH services cover everything from patent filing and trademarks to prosecution, portfolio management, and enforcement. 

The group covers 10 jurisdictions across 25 countries, including Australia, New Zealand, Southeast Asia, and the US, making it the largest IP services provider in the Asia-Pacific region. This means that a significant share of its revenue comes from the Asia-Pacific market.

Not only is the company huge and sprawling, but it also has a long history of generating consistently strong cash flow from its operations. 

IPH posted its first-half FY26 results in mid-February, revealing a 6.5% increase in revenue compared with the prior corresponding period.

Its underlying EBITDA rose 6.6%, and its statutory NPAT climbed 10.5%. IPH also announced a 101% cash conversion. 

The company’s strong financials and robust cash flow mean it is able to position itself as a reliable dividend payer. And one that can gradually increase its dividend payment over time, too.

What dividend yield does it pay its shareholders?

IPH has historically paid two partially or fully franked dividends each year, in March and September. 

Its latest payment, in March this year, was an interim dividend of 19 cents per share, up 11.8% on the prior period. The dividend was 20% franked and represented an 81% payout of cash-adjusted NPAT.

The consensus estimate is that IPH will pay a fully-franked 37.6 cents per share dividend for FY26. Based on the share price of $3.86 at the time of writing, this equates to a dividend yield just under 10%, excluding franking credits. 

It also means that $1,000 invested in IPH shares will buy you 259 shares in the high-yield ASX dividend stock, at the time of writing.

What’s next for the IPH share price?

Analysts are mostly bullish about the outlook for the ASX dividend stock over the next 12 months.

According to TradingView data, the majority (5 out of 7) have a buy or strong buy rating on the stock.

The average $4.79 target price implies a 24% upside at the time of writing. Meanwhile, the $6 maximum target price implies a potential 55% price surge for the shares over the next 12 months. 

The post $1,000 buys 259 shares in this high-yield ASX dividend stock 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When a company agrees to a takeover at a fixed price, you might expect its shares to trade at exactly that price.

In practice, they almost never do.

Qube Holdings Ltd (ASX: QUB) is a textbook example of this phenomenon right now.

Macquarie Asset Management has made a binding offer of $5.20 per share for Qube, valuing Australia’s largest integrated logistics provider at approximately $11.7 billion.

Yet today, Qube shares trade at approximately $5.02, a discount of around 3.5% to the offer price.

That gap is the price investors pay for the uncertainty that surrounds any takeover before it formally completes.

What is merger arbitrage?

The strategy of buying shares in a takeover target below the offer price and waiting to receive the full consideration at completion is known as merger arbitrage.

It is a well-established investment approach used by professional fund managers and sophisticated investors around the world.

The return profile is asymmetric.

If the deal completes as planned, investors who bought Qube at $5.02 today will receive $5.20 per share, delivering a return of approximately 3.5%.

If the deal collapses for any reason, the share price will likely fall sharply back toward its pre-offer level of $4.07, delivering a loss of approximately 19% from today’s price.

That asymmetry is the reason the discount exists.

The market is pricing in a small but material probability that the deal does not proceed.

Why does the discount exist?

Several factors explain why Qube trades below the $5.20 offer price despite the board’s unanimous recommendation and the deal being fully funded with no financing condition.

The first is regulatory risk.

The deal requires approval from the Australian Competition and Consumer Commission, the Supreme Court of New South Wales, and the Foreign Investment Review Board.

While none of these approvals is expected to be a major hurdle given Macquarie’s long track record of completing similar transactions, the process takes time and carries a non-zero risk of complication.

The second is shareholder vote risk.

Qube’s shareholders must vote to approve the scheme at a meeting expected around June 2026.

The deal requires approval from 75% of votes cast, excluding UniSuper, which is rolling its stake into the new structure.

While the board’s unanimous recommendation makes approval highly likely, it is not guaranteed.

The third is the time value of money.

Even if the deal completes exactly as planned by December 2026, investors tying up capital for six to seven months at a 3.5% return are earning a modest annualised return.

The shareholder vote is expected in June 2026, which annualises the 3.5% gain to approximately 10%.

This is a more attractive number, though investors should note that annualised figures assume a clean and timely completion.

The franking credit kicker

One detail that makes the Qube situation particularly interesting for Australian investors is the dividend component.

Qube is permitted to pay up to $0.40 per share in dividends before and immediately after the deal closes, which will be deducted from the $5.20 cash consideration.

The first instalment, a regular fully-franked interim dividend of $0.0535 per share, was already paid on 9 April 2026 and has been deducted from the offer price accordingly.

The more interesting component is a potential special fully-franked dividend that Qube’s board intends to declare following scheme effectiveness, a structure made possible by a special ASX waiver granted on 22 April 2026.

For eligible Australian taxpayers who can utilise franking credits in full, those credits are worth approximately $0.17 per share for every $0.40 in dividends paid, effectively pushing the total economic return above the headline $5.20 figure.

Furthermore, if the deal extends past December 2026, Macquarie has agreed to pay a ticking fee of two cents per share per month, compensating investors for any delay and ensuring the annualised return does not deteriorate if the timeline slips.

The risks worth knowing

Merger arbitrage is not risk-free, and investors should approach it with clear eyes.

The biggest risk in the Qube situation is not regulatory or shareholder approval but rather a material adverse change to the business.

The deal contains a standard material adverse change clause, meaning Macquarie could walk away if Qube’s business deteriorates significantly before completion.

Qube has already flagged a $10 to $20 million EBITA impact from Middle East conflict disruptions and a further $3 to $5 million from weather events in its most recent trading update, though management maintained its expectation of full-year earnings growth.

Whether those impacts rise to the level of a material adverse change is a judgement call, but on current evidence, they appear well within normal business variation.

Foolish Takeaway

Qube Holdings trading at a 3.5% discount to its takeover price is not an oversight by the market.

It reflects real, if modest, uncertainty about whether a deal that looks highly likely to proceed will actually do so on the expected timeline.

For investors who understand merger arbitrage and are comfortable with the asymmetric risk profile, the current gap between Qube’s share price and the $5.20 offer price could represent an interesting low-risk return opportunity, particularly when the franking credit kicker and ticking fee protections are factored in.

For those who are not, simply understanding why the discount exists is a valuable lesson in how financial markets price risk.

The post Qube Holdings is trading below its takeover price. Here is what investors need to know appeared first on The Motley Fool Australia.

More reading

• 53,794 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension
• $1,000 buys 259 shares in this high-yield ASX dividend stock
• Goodman Group reports $87.1 billion portfolio value as data centre demand grows
• Greatland Resources secures Havieron approvals, eyes next steps
• The SpaceX IPO is coming. Here are 2 ways investors could benefit from the space boom

Motley Fool contributor Mark Verhoeven 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.

The Goodman Group (ASX: GMG) share price is in focus after the company reported a total portfolio value of $87.1 billion and work in progress across development projects of $14.5 billion as at 31 March 2026.

What did Goodman Group report?

• Total portfolio value: $87.1 billion
• Development work in progress (WIP): $14.5 billion
• Annual like-for-like net property income growth: 4.1% (6.1% excluding Greater China)
• Portfolio occupancy: 95.7% (97% excluding Greater China)
• Yield on cost for current WIP: 8.0%
• 3.3 million square metres leased over the past 12 months, generating $491 million in annual rental income

What else do investors need to know?

Goodman is positioned at the centre of the global digital economy, with a development pipeline focused on infrastructure-scale industrial properties and data centres in major cities worldwide. AI adoption is driving increased demand for data centres in metropolitan locations, but supply remains constrained by energy availability and grid capacity.

The company’s global power bank for data centres now totals 6.4 gigawatts, with 3.6GW secured and further expansion underway. The majority of current developments (73% of WIP) are dedicated to data centre assets, responding to strong customer demand across multiple regions and with a focus on flexibility and urban locations.

What’s next for Goodman Group?

Goodman expects its work in progress to reach roughly $18 billion by June 2026, with ongoing focus on securing power and advancing its capital partnerships. The board has approved a target of 9% operating earnings per security (EPS) growth for FY26, and management reports the group is on track to deliver at least this level.

Looking ahead, Goodman plans to redeploy capital into large-scale sites to capture the growth in AI, automation, and urban logistics. Securing additional power and progressing customer commitments in the data centre segment remain a strategic priority.

Goodman Group share price snapshot

Over the past 12 months, Goodman Group shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Goodman Group reports $87.1 billion portfolio value as data centre demand grows 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 Goodman Group. The Motley Fool Australia has recommended Goodman 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.

The Greatland Resources Ltd (ASX: GGP) share price is in focus after the company secured both primary environmental approvals for its Havieron gold-copper project, positioning itself for a Final Investment Decision in the June 2026 quarter.

What did Greatland Resources report?

• State primary environmental approval received from the Western Australian Minister for the Environment
• Commonwealth primary environmental approval granted on 24 April 2026
• Final Investment Decision on the Havieron project targeted for the June 2026 quarter
• Tendering has commenced for key project packages and early works
• The Havieron project is expected to deliver around 270,000 ounces of gold per year at low costs

What else do investors need to know?

Greatland Resources’ recent approvals mark a major milestone, allowing progress toward development and operation of the Havieron underground mining project. The company is moving ahead with tenders and preparations for critical infrastructure, including boxcut tunnel installation and underground works.

The Havieron project, together with the adjacent Telfer mine, is set to underpin a significant gold-copper mining hub in Western Australia’s Paterson Province. The company says Havieron has an initial mine life of 17 years, supporting long-term operational plans.

What’s next for Greatland Resources?

With environmental approvals in place, Greatland’s attention turns to finalising its investment decision in the current quarter and advancing early development works at Havieron. The focus will be on progressing construction and underground development to bring the project into steady-state production.

Over the long term, Greatland aims to leverage Havieron’s strong resource base and its integration with Telfer, supporting a multi-decade mining operation in the region.

Greatland Resources share price snapshot

Over the past 12 months, Greatland Resources shares have risen 91%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Greatland Resources secures Havieron approvals, eyes next steps 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 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. 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.

The space economy is having a moment. 

SpaceX, Elon Musk’s rocket and satellite company, is targeting a Nasdaq debut around 12 June 2026 under the ticker SPCX, aiming for a valuation of between US$1.7 trillion and US$2 trillion.

This would make it the largest stock market debut in history. 

The announcement has sent a wave of excitement through the global space sector, with investors scrambling to find ways to gain exposure before and after the listing. 

For Australian investors, one ASX-listed company and another newly launched ETF offer the most direct and interesting connection to the space boom.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems is primarily known as an ASX defence stock, and for good reason: the company has risen more than 430% over the past twelve months.

This is on the back of a record contract pipeline in counter-drone and directed energy systems. 

However, many investors overlook that EOS also operates a dedicated Space Systems division, providing laser tracking and communications technology to satellite operators worldwide. 

The EOS Space Systems division is one of only a handful of companies globally that can track, communicate with, and manage satellites using advanced electro-optic laser systems, a capability that becomes increasingly valuable as the number of satellites in low Earth orbit grows exponentially. 

SpaceX’s Starlink constellation alone now has more than 10,300 satellites in orbit, with plans to deploy tens of thousands more.

Every satellite launched creates demand for the kind of precision tracking and communications infrastructure that EOS provides. 

Earlier in 2026, EOS was appointed to the Australian Space Agency’s advisory council, a signal of the company’s growing relevance in Australia’s nascent space sector. 

Most recently, EOS launched a $175 million capital raising to fund the acquisition of MARSS, a European command-and-control and AI software business that will significantly expand its integrated counter-drone and space systems capability. 

At its AGM, EOS chair Garry Hounsell confirmed the company’s turnaround phase is now complete and that 60% to 80% of its $726 million order book is expected to convert to revenue in 2026 and 2027.

Betashares Space Industry ETF (ASX: RCKT)

For Australian investors who want exposure to the global space economy without opening an international brokerage account, the Betashares Space Industry ETF offers a timely solution. 

The fund only debuted on the ASX on 12 May 2026, making it one of the newest and most thematically specific ETFs available to Australian investors. 

RCKT holds 28 underlying space companies globally, with its two largest positions being Rocket Lab at 13.1% and AST SpaceMobile at 10.2%, giving investors concentrated exposure to the two most talked-about listed alternatives to SpaceX. 

Other holdings span satellite operators, launch providers, and space infrastructure businesses across the United States, Europe, and Asia. 

The fund listed at $14 per unit and is already attracting significant interest as the SpaceX IPO draws attention to the broader space economy. 

For investors who believe the space sector is entering a sustained period of commercial growth but do not want to pick individual winners, RCKT provides a diversified and low-friction way to participate in the theme on the ASX.

Foolish Takeaway

The SpaceX IPO will not transform space investing overnight, but it will draw significant attention and capital into the sector in the months ahead. 

EOS offers ASX investors a rare domestic play on the space economy.

The company combines a world-class defence contract pipeline with laser tracking and satellite communications technology that becomes more valuable as the number of objects in orbit grows. 

RCKT, meanwhile, gives investors a simple, diversified way to back the entire global space economy through a single ASX trade, with Rocket Lab and AST SpaceMobile doing the heavy lifting within the fund. 

Both carry meaningful risk, and the space sector is not for investors who cannot stomach volatility. 

But for those with a long-term horizon and conviction in the space economy theme, both deserve serious attention. 

The post The SpaceX IPO is coming. Here are 2 ways investors could benefit from the space boom appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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 AST SpaceMobile, Electro Optic Systems, and Rocket Lab. The Motley Fool Australia has recommended Rocket Lab. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX share market is a wonderful hunting ground to find investments that could deliver great long-term returns.

No-one knows what share prices are going to do, but analysts can estimate (with a price target) whether an investment is undervalued or not, based on its earnings multiple, its expected profit growth and its balance sheet.

We’re going to look at two names that experts believe could rise more than 50% based on the price targets.

Zip Co Ltd (ASX: ZIP)

Zip is a sizeable buy now, pay later business. It operates two core markets – Australia and New Zealand (ANZ) and the US. The ASX share says that it offers access to point-of-sale credit and digital payment services.

The business also says that it provides “fair, flexible and transparent payment options, helping customers to take control of their financial future and helping merchants to grow their businesses.”

According to CMC Invest, there have been five recent analyst ratings on the ASX share, with all of those being a buy. That’s unanimous positivity for the company.

A price target is where analysts think the share price will be in 12 months from the time of their rating.

The average price target on Zip shares of those five analysts is $3.38. At the time of writing, that implies a possible rise of 53%.

Even the lowest price target of $2.60 suggests a solid double-digit return within the next year of 18%.

The company’s key growth market of the US continues to grow strongly. In April 2026, its US total transaction value (TTV) grew by 40% in US dollar terms. Zip is expecting FY26 US TTV to grow by more than 40%. If it can maintain or grow its profit margins as it scales, it’s seemingly on track for a positive future.  

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of homewares, furniture and home improvement products.

The business sells hundreds of thousands of products across a variety of categories, with most of those items shipped directly by suppliers, which helps keep the business model capital-light and allows it to sell a wider range of products.

According to CMC Invest, there have been ten recent ratings on the ASX share, with six of those being a buy, three being a hold, and one being a sell.

The average price target on Temple & Webster is $8.32. At the time of writing, that implies a possible rise of 65% over the next year.

But, not every analyst is optimistic. The lowest price target is $4, which implies it could decline a further 20% from where it is at the time of writing.

The latest update from the business was released earlier this month which showed the business expects to grow FY26 revenue by between 11% to 12% to between $665 million to $675 million.

Temple & Webster expects its operating profit (EBITDA) to approximately double in FY27 as it invests in its private label and exclusive products, better and faster delivery options, and potential acquisitions in areas such as home improvement, business-to-business (B2B) and international.

The post 2 ASX shares tipped to grow 50% in the next 12 months appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a tough period for owners of Adore Beauty Group Ltd (ASX: ABY) shares.

Over the past six months, the small-cap ASX share has lost over 70% of its value.

Is there a rebound coming? Let’s see what Bell Potter is saying about the beaten down beauty retailer.

What is the broker saying?

Bell Potter notes that the small-cap ASX share has released a trading update which has fallen short of expectations. It said:

Adore Beauty released a trading update for the first 47 weeks of FY26, with sales growth of $193.4m +7.4% YoY (vs. BPe $203.9m on a 47-week run-rate basis). For 2HFY26 the company expects the gross margin to be resilient and land at 34.5% (vs. BPe 34.7%), as they chose to reduce promotional intensity as part of their previously outlined strategy.

The low light was that EBITDA is expected to land at ~$4.0m for FY26 (vs. BPe $7.2m), representing a ~2.0% margin (versus previous guidance of b/w 3-4% for FY26e), driven primarily by a sales slowdown paired with an increased fixed cost base from their aggressive store rollout (from 0-20 stores in ~24 months).

Looking ahead, the broker believes the company can deliver on its FY 2027 guidance. This is due to cost savings from its new distribution centre. It said:

The company also provided FY27 guidance, expected revenue growth of at least 10% and underlying EBITDA of b/w $9-13m. We are confident the company lands within the lower end of the guidance, namely due to cost savings of 1) $2.0m from the new NDC efficiencies (from 1Q27), and 2) $2.5m in savings from a head office restructure.

Should you buy the dip?

Unfortunately, Bell Potter believes the Adore Beauty share price weakness isn’t a buying opportunity just yet.

In response to its trading update, the broker has downgraded the small-cap ASX share to a hold rating (from buy) and slashed its price target to 39 cents (from $1.00). This compares to its last close price of 34 cents.

Commenting on the downgrade and valuation crunch, the broker said:

We have adjusted the key assumption we use in our relative valuation, lowering our FY27 EBIT multiple from 12.5x to 10.0x, off the back of a reduction in the median peer group multiple. We move our valuation weighting to 70% relative and 30% DCF, reflecting comparable retail businesses in a more challenging consumer environment, and to reflect current market sentiment on the sector.

We view the DCF as contingent on a macro recovery and execution of an as-yet unproven growth strategy. As a result, we lower our target price by ~60% to $0.39. Given this implies less than 15% upside to the current share price, we downgrade our recommendation to HOLD.

The post Down 70% in six months: What is Bell Potter saying about this ASX share? appeared first on The Motley Fool Australia.

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• Why are Adore Beauty shares charging higher today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group. 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.

When one analyst is positive about an ASX share, that’s interesting. When multiple experts rate a business as a buy, it could be a great time to invest (if they’re right).

Share prices are always changing, so the available opportunities can change month to month. When we look across the ASX share market, the following two businesses are among the most widely backed.

Integral Diagnostics Ltd (ASX: IDX)

Integral Diagnostics describes itself as a leading provider of medical imaging services across Australia and New Zealand.

According to the Commsec collation of analyst opinions, there are currently 12 buy ratings on the business, with just one hold and one sell.

We should also look at the price target of the business, which tells us what analysts think the share price will do over the next 12 months. A price target is just an estimate though, not a guarantee of what’s going to happen.

According to CMC Invest, of three analyst price targets issued within the last three months, the average price target is $3.19. That implies a possible rise of 53% over the next year, if the analysts are right.

The company’s latest result saw plenty of growth following the merger with Capitol Health, with enhanced operational scale and a broader network, combined with synergies.

The company reported organic revenue growth of 7.4% from all sources in Australia. Total revenue grew 55.6%, operating profit (EBITDA) rose 75.6% and operating net profit grew 154.6% to $22.3 million. Operating earnings per share (EPS) rose by 66.2% to 5.9 cents.

This growth enabled the ASX share to hike its interim dividend per share by 32% to 3.3 cents.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX share with significant backing by expert analysts. The global enterprise resource planning (ERP) software business currently has 13 buy ratings on the business, according to CommSec.

It has clients across a range of industries including businesses, local councils, government organisations and universities.

According to CMC Invest, of eight recent ratings by analysts within the last three months, the average price target is $31.81. That implies a possible rise of around 6% within the next year.

The business expects to grow its profit at a significant pace during the 2026 financial year.

It expects to grow its FY26 annual recurring revenue (ARR) by between 16% to 18%, while its profit growth is expected to be between 18% to 20%.

If profit keeps growing in the high-teens year after year then it’s on track for a very pleasing future, in my opinion (and according to broker analysts too).

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One. The Motley Fool Australia has recommended Integral Diagnostics and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.