Author: openjargon

S&P/ASX 200 Index (ASX: XJO) shares are down 0.5% as the ceasefire in the Middle East appears to unravel.

The ongoing global oil supply shortage continues to impact many Western economies, threatening higher inflation and interest rates.

Amid much volatility, ASX 200 shares are now 1.6% lower in 2026.

This week, brokers reduced their ratings and 12-month price targets on several ASX stocks.

Let’s take a look.

REA Group Ltd (ASX: REA)

The REA share price is $147.61, down 1.2% today.

Over the past six months, this ASX 200 communications share has fallen 21%.

UBS downgraded REA shares to a hold rating on Tuesday.

The broker slashed its 12-month price target from $213 to $165.

This implies a potential 11% upside ahead.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is $3.94, down 0.3% today.

This ASX 200 iron ore share has fallen 11% over the past five days.

This was due to a significant ramp-up in production at the giant Simandou mine in Africa.

Fears of oversupply amid weakening demand from China have seen the iron ore price fall 9% in a month.

BMO Capital downgraded Champion Iron shares to a hold rating on Monday.

The broker lowered its 12-month price target from $5.60 to $4.58.

This suggests a potential 16% upside ahead.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is $31.32, down 1.6% today.

Over the past six months, this ASX 200 tech share has risen 13%.

Bell Potter downgraded TechnologyOne shares to a hold rating yesterday.

But the broker increased its price target from $32.35 to $34.25.

This still implies a potential near-10% upside ahead.

The broker said:

Our updated TP of $34.25 is <15% premium to the share price so we downgrade our recommendation to HOLD.

We now see the stock as reasonable value on FY26 and FY27 PE ratios of 66x and 55x respectively.

We do see Technology One as one of if not the best quality large cap SaaS company on the ASX but we note it is already trading at almost double the FY26 and FY27 PE ratios of WiseTech Global Ltd (ASX: WTC) on 35x and 28x.

We also see a lack of catalysts for Technology One in the near term as the company does not tend to announce individual contract wins – though some are posted on the website – and we do not expect any change in the FY26 guidance.

Nickel Industries Ltd (ASX: NIC)

The Nickel Industries share price is 93 cents, down 3.7% today.

Over the past month, this ASX 200 mining share has fallen 16%.

Jefferies downgraded Nickel Industries shares to a hold rating this week.

The broker reduced its 12-month price target from $1.20 to $1.

This indicates possible capital gains of 8% over the next year. 

Megaport Ltd (ASX: MP1)

The Megaport share price is $18.59, up 3% today.

Over the past month, this ASX 200 tech share has ripped 90% higher.

Morgans downgraded Megaport shares from a buy to accumulate rating this week.

The broker was moved to do so largely due to a 90% surge in the share price over the past month.

Morgans also lifted its 12-month target price from $15.50 to $21.

This suggests a potential 13% upside ahead.

The post 5 ASX 200 shares downgraded by the experts this week appeared first on The Motley Fool Australia.

More reading

• 2 ASX tech shares I’d buy that aren’t Xero or WiseTech
• If you invested $10,000 in Megaport shares in April, here’s how much you’d have now
• Megaport launches retail entitlement offer after $827 million capital raise
• Why WiseTech Global shares could rise 90% in a year
• 5 things to watch on the ASX 200 on Thursday

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 Jefferies Financial Group, Megaport, Technology One, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) are two of the most popular ASX tech shares, and for good reason.

But they are not the only technology companies on the Australian share market with strong growth prospects.

I think investors looking beyond the usual large-cap software names have some compelling options. Two ASX tech shares I would consider buying are named in this article.

Megaport Ltd (ASX: MP1)

Megaport is one ASX tech share I think deserves attention.

The company helps businesses connect to cloud providers, data centres, and network services through its software-defined network. In simple terms, it lets customers turn connectivity on and off, scale capacity, and link different digital environments without relying only on older, fixed network arrangements.

I think that is becoming more valuable as companies spread their workloads across multiple clouds, data centres, and regions.

A business might use Amazon Web Services, Microsoft Azure, Google Cloud, private infrastructure, and specialist providers at the same time. That creates a messy connectivity problem. Megaport’s role is to make those connections faster, more flexible, and easier to manage.

The company has also added another chapter to its story through the acquisition of Latitude.sh. That move gives Megaport exposure to compute and storage, not just network connectivity. It also opens the door to more involvement in artificial intelligence (AI) and high-performance workloads, where customers may need fast access to GPUs, CPUs, storage, and reliable network capacity.

I like that because the digital infrastructure market is no longer just about owning the physical data centre. It is also about how customers move data, access compute, and manage workloads across different locations.

Megaport still has execution risk. It needs to prove that the expanded model can produce stronger growth and better returns. But I think the company sits in an important part of the cloud and AI ecosystem that can be easy to overlook.

Catapult Sports Ltd (ASX: CAT)

Catapult Sports is another ASX tech share I would buy.

The company provides performance technology used by elite sporting teams. Its products help teams track athlete workloads, analyse movement, review video, manage training, and make better decisions about performance and preparation.

I think what makes Catapult particularly interesting is that sport is becoming more analytical every year. Coaches are no longer relying only on instinct and experience. They want data that can help them understand fatigue, speed, effort, tactical patterns, injury risk, and player development. The best teams are looking for marginal gains everywhere, and technology is becoming a bigger part of that process.

Catapult is well positioned because its products can become embedded in how teams operate. If a club uses the platform across training, games, coaching, medical staff, and performance analysis, it can become part of the daily workflow. That creates stickiness. It also gives Catapult the chance to sell more solutions to existing customers over time.

I also like the global nature of the opportunity. The business is not limited to one sport or one country. It can serve football codes, basketball, baseball, soccer, rugby, and other professional and college markets.

There are still challenges to watch. Sports teams can be demanding customers, and the company needs to keep innovating to stay ahead. But Catapult has moved beyond being a niche wearable technology idea. I think it is becoming a more complete sports intelligence platform.

Foolish takeaway

Xero and WiseTech may get plenty of attention, but the ASX technology sector has more depth than those two names.

Megaport gives investors exposure to the connectivity layer behind cloud, data centre, and AI workloads, while Catapult gives exposure to the rising use of data and software in professional sport.

If they keep executing successfully, I think they could become much larger businesses over the next decade.

The post 2 ASX tech shares I’d buy that aren’t Xero or WiseTech appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 shares downgraded by the experts this week
• If you invested $10,000 in Megaport shares in April, here’s how much you’d have now
• Megaport launches retail entitlement offer after $827 million capital raise
• Why WiseTech Global shares could rise 90% in a year
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Grace Alvino 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, Amazon, Catapult Sports, Megaport, Microsoft, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Catapult Sports, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet, Amazon, and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It’s pretty hard to find the big dividends that we used to see on the ASX these days. ASX income stock heavyweights like Telstra Group Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA), and Coles Group Ltd (ASX: COL) don’t sport the yields that they once did.

There are still decent yields to be found, of course. But many of these hail from the more volatile end of the market. Miners and energy stocks can pay out big for investors, but they are also highly cyclical and therefore rather unreliable dividend shares.

However, if you are looking for your next ASX income stock, there’s a name that I think merits a look from any dividend-hungry investor today. It is Plato Income Maximiser Ltd (ASX: PL8).

Plato is a listed investment company (LIC), meaning it owns and manages a portfolio of underlying investments on behalf of its shareholders. This portfolio consists of many ASX income stocks. At the latest count, it included all of the shares mentioned above, as well as BHP Group Ltd (ASX: BHP), Qantas Airways Ltd (ASX: QAN), National Australia Bank Ltd (ASX: NAB), Medibank Private Ltd (ASX: MPL), and many more.

An ASX income stock with a lot to show

Plato collects the income these stocks pay out and passes it on to its shareholders through dividend payments. This Plato does monthly, which many income investors will no doubt find incredibly useful.

The ASX income stock has doled out 12 dividends over the past year, each worth 0.55 cents per share. At the current Plato share price of $1.39 (at the time of writing), this ASX income stock has a trailing dividend yield of 4.75%.

Many income-focused investments have a tendency to sacrifice overall returns for a higher upfront yield. But this is not a trap Plato falls into, at least yet. As of 30 April, Plato has delivered an overall return (share price growth plus dividends) worth 9.9% per annum since its inception in 2017. That’s slightly above the 9.8% that the broader market has delivered over the same period.

Fortunately, Plato’s dividends tend to come with full-franking credits attached too. This combination of monthly dividends, a relatively large starting yield, and those full-franking credits makes Plato a formidable ASX income stock. As such, I think it’s well worthy of consideration for anyone searching for yield today.

The post This ASX income stock has a 4.75% yield and pays out monthly appeared first on The Motley Fool Australia.

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• Is now the time to turn to high yield dividend shares?

Motley Fool contributor Sebastian Bowen has positions in Plato Income Maximiser. 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 Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Core Lithium Ltd (ASX: CXO) has announced it will spin out certain assets into a new gold-focused company called Axiant Resources.

New public offer on the way

The company said in a statement to the ASX that the new company would hold exploration assets in the Northern Territory and South Australia, and a new public offer of shares would be launched to fund the company.

Core said further:

A prospectus for the issue of Shares to fund working capital and acquisition costs for the Assets is expected to be lodged with ASIC next month. Axiant is targeting a listing in July or August 2026, subject to market conditions and the satisfaction of ASX listing requirements.  

Core Lithium’s Chair Greg English will retire from his role, and take up the chair role at the new company.

The company said regarding Mr English:

His tenure marks a highly successful 16 year term at Core as Chair, overseeing early exploration initiatives and in 2021, the commencement of open pit mining and ore processing at Core’s Finniss project. More recently, he has supported Core’s recent re-start study for the recommencement of open-pit mining and the development of underground mining of the BP33 deposit at Finniss, and the completion of a $307m funding package, announced on 18 March 2026. Under Greg’s leadership, Core has grown from a micro-cap South Australian based exploration company into Australia’s newest Lithium producer with the recommencement of mining announced on 20 May 2026.

Current non-Executive Director Malcolm McComas will take over as the Chair of Core Lithium.

Mr English said he was proud to leave the company in a strong position.

He added:

The new team, the assets and the outstanding growth opportunity reflects improved commodity prices for spodumene, and also the strength of our new financial partners. So, after many years of rewarding challenges, I have decided to step down.

Stockpile driving cash flow

Core Lithium earlier this week announced the second sale of lithium fines from its Finniss mine, following an initial sale in April.

The company said total revenue from lithium sales this year was about $28.5 million.

The company added:

The transaction represents the second sale from the Finniss lithium fines stockpile, following Core’s April 2026 announcement of an initial 20kt sale to Glencore. The sale represents a further step in Core’s strategy to monetise existing stockpiled material and generate cash flow while mining, processing and development activities at Finniss progress.

The company said it continued to explore pathways to sell its remaining stockpile of 30,000 tonnes of fines.

Core Lithium shares were 1% lower at 23.75 cents on Thursday, but are up 161% over a year.

The post What’s Core Lithium’s big news today? appeared first on The Motley Fool Australia.

More reading

• Guess the ASX lithium stock racing higher on big news
• Up 250% in a year, Core Lithium shares surging again today on big Finniss news
• Experts rate these 2 ASX mining shares as compelling buys
• Why CBA, Core Lithium and Fortescue shares are making waves on Wednesday
• Core Lithium shares jump again after a major Finniss milestone

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.

Alcoa Corporation (ASX: AAI) shares are under pressure on Thursday as investors react to the company’s latest update.

At the time of writing, the Alcoa share price is down a sizeable 7.86% to $94.39.

That adds to a difficult week for the stock. Alcoa shares are now down almost 20% over the past 5 trading days.

But zoom out, and the stock is still sitting on a huge 12-month gain. Alcoa remains up 114% over the past year, so today’s fall is testing investor confidence after a very strong run.

So, what has spooked the market today?

Earnings hit from WA plant issues

According to The Australian, Alcoa has flagged “expected sequential impacts” to second quarter earnings, largely due to ongoing problems at its Pinjarra facility in Western Australia.

The company expects alumina segment performance to be unfavourable by about US$60 million. This includes about US$30 million of higher production costs at the Pinjarra refinery following disruption caused by Cyclone Narelle.

In addition, Alcoa is facing about US$20 million of higher energy costs, mainly from fuel oil and diesel linked to the Middle East conflict.

Lower price and volume impacts from bauxite offtake agreements are expected to add another US$10 million hit.

On top of that, third-party shipments are expected to be 120,000 tonnes lower in the second quarter because of the issues at Pinjarra.

Altogether, that adds about US$45 million to the earnings headwind compared with Alcoa’s previous outlook.

Aluminium price pulls back

The timing of the update isn’t helping either, with aluminium prices also easing after hitting a multi-year high.

According to Trading Economics, aluminium futures in the UK recently fell below US$3,500 per tonne, their lowest level in a month.

The price was around US$3,475.50 per tonne, down 1.43%. That leaves aluminium down about 2.9% over the past month, but up almost 40% since this time last year.

The pullback has been linked to demand concerns, higher US interest rates, and rising oil prices as tensions in the Middle East escalated.

Has the rally gone too far?

After a 114% gain in 12 months, expectations were already high.

Today’s update does not change the fact Alcoa is still a major aluminium producer. But it does make the recent rally harder to justify.

Higher costs, lower shipments, and a softer aluminium price are not what investors want to see after such a big share price run.

This may leave some investors waiting for a better update before getting more confident on the stock.

The post Why this ASX 200 stock is crashing after doubling in a year appeared first on The Motley Fool Australia.

More reading

• Canaccord Genuity has just added these two ASX 200 shares to its best ideas list
• Here are the top 10 ASX 200 shares today
• These ASX stocks have hit the ground running in June – can they keep rising?
• Here are the top 10 ASX 200 shares today
• Why are Alcoa shares among the top ASX 200 performers today?

Motley Fool contributor Aaron Teboneras 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 Materials Index (ASX: XMJ) shares — dominated by Australian miners — are 10% higher in 2026.

This compares to a 1.6% decline for the benchmark S&P/ASX 200 Index (ASX: XJO) in the calendar year to date (YTD).

The ASX 200 materials sector rose by 32% last year, largely due to soaring share prices for mining companies. 

This year, ASX mining shares have fluctuated due to a metals sell-off in late January and today’s continuing global oil shock.

The long-term picture is that Australia is in the midst of a new mining boom powered by a new commodities super cycle.

If you’re looking for investment opportunities, here are 2 ASX mining shares recommended by experts this week.

Maronan Metals Ltd (ASX: MMA)

The Maronan Metals share price is 37 cents, up 2.8% today and down 15% YTD.

The company is developing the Maronan silver-lead and copper-gold deposit in the Cloncurry region of northwest Queensland.

The mine is one of Australia’s largest undeveloped silver-lead-copper and gold deposits.

On The Bull this week, Tony Locantro from Alto Capital has a speculative buy rating on this ASX mining share. 

Locantro explains: 

The company recently secured about $22 million in strategic funding, strengthening its balance sheet and supporting an expanded drilling program. A second drill rig has now been deployed to accelerate resource growth and improve confidence in the starter zone.

The recent separation from Red Metal Ltd (ASX: RDM) has also simplified the investment case and increased market visibility.

While development stage projects carry funding and execution risk, the combination of a high quality resource, strong financial backing and upcoming catalysts support a speculative buy recommendation.

Deterra Royalties Ltd (ASX: DRR)

The Deterra Royalties share price is $4.35, down 0.1% today and up 5.2% YTD. 

Deterra has a portfolio of 14 royalties and royalty-like offtake assets in 7 countries.

It is invested in iron ore, lithium, mineral sands, copper, molybdenum, and gold.

Mining royalties are agreements in which a third party provides financing to a miner in exchange for a portion of future revenues or production.

One of Deterra’s royalty assets is Mining Area C (MAC) in the Pilbara, owned by BHP Group Ltd (ASX: BHP).

Investing in Deterra Royalties is an alternative to directly buying ASX mining shares.

Damien Nguyen from Morgans recommends buying Deterra Royalties shares.

Here’s why:

DRR’s royalty structure provides highly leveraged, low cost exposure to iron ore volumes with no operational risk, capital expenditure, or direct commodity price hedging.

As production ramps up further at Mining Area C (MAC) and BHP Group continues to invest in expanding capacity, Deterra’s royalty stream is set to grow over the medium term.

The balance sheet is conservatively managed, and the company has a strong track record of returning capital to shareholders through fully franked dividends.

The market appears to be discounting near term iron ore price softness more heavily than the long term volume growth story warrants.

We see the recent share price as an attractive entry point.

The post 2 ASX mining shares to buy: experts appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 shares downgraded by the experts this week
• 2 ASX tech shares I’d buy that aren’t Xero or WiseTech
• This ASX income stock has a 4.75% yield and pays out monthly
• What’s Core Lithium’s big news today?
• Why this ASX 200 stock is crashing after doubling in a year

Motley Fool contributor Bronwyn Allen has positions in BHP Group. 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Sigma Healthcare Ltd (ASX: SIG) shares have tumbled further into the red in Thursday’s lunchtime trade.

At the time of writing, the ASX healthcare company’s shares are down around 2% to $2.72 a piece.

The shares have now fallen just over 7% since Tuesday, shedding gains made over the past couple of months.

Sigma Healthcare shares are down around 8% year to date. They’re now roughly 14% below their trading level this time last year.

Why are Sigma Healthcare shares in the spotlight?

There isn’t any company-specific price-sensitive news out of Sigma Healthcare this week to explain the share price slump.

It looks like investors are selling off their shares on the back of news that the Chemist Warehouse owner is in preliminary talks to buy the major UK health, beauty, and pharmacy retail chain, Boots.

Yesterday, there were reports that the company has entered into preliminary talks to buy the UK’s largest independent pharmaceutical chain as part of its plan to move overseas.

According to reports in the Financial Times, Boots owner Sycamore Partners has been approached by several different retailers to take control of the business.

Sigma is understood to be among the interested partners. Along with Canada’s supermarket chain Loblaws and pharmacy retailer Shoppers Drug Mart.

In a note to the ASX, the company responded to media speculation. It also confirmed it is in preliminary talks with Boots. It said:

Sigma Healthcare Limited (Sigma) refers to the recent media speculation regarding the sale process of The Boots Group (Boots). Sigma continuously reviews opportunities that would create value for shareholders and has engaged in preliminary discussions in relation to the sale process. There is no certainty that any transaction will eventuate.

Clearly, investors aren’t thrilled with the media speculation. The share price closed over 5% lower for the day after the announcement, and investors have continued selling today.

Why are investors concerned?

It isn’t entirely clear. But I’d speculate that the sell-off doesn’t necessarily mean investors aren’t happy about a potential acquisition. It’s more likely that investors are concerned about potential execution risk, deal size, and timing.

Boots is currently valued at around AU$14 billion.

Keeping in mind that Sigma Healthcare completed its merger with Chemist Warehouse in early 2025. The combined business controls nearly 1,000 stores and has a valuation exceeding $30 billion. 

Generally, investors expect businesses to fully integrate after a major acquisition before considering another major transaction. 

What’s the outlook for Sigma Healthcare shares?

According to Market Index data, brokers remain bullish on the outlook for the shares over the next 12 months.

Data updated today, 11th of June, shows the majority (six out of seven) have a buy rating on the stock. They tip a potential 20% upside to an average target price of $3.26, at the time of writing.

The post Why are Sigma Healthcare shares in the spotlight this week? appeared first on The Motley Fool Australia.

More reading

• Why Evolution Mining, REA Group, Sigma Healthcare, and TechnologyOne shares are tumbling today
• 3 high-quality Australian shares I’d buy with $10,000
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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 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.

Westpac Banking Corp (ASX: WBC) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $35.41. As we eye the Thursday lunch hour, shares are changing hands for $34.94 apiece, down 1.3%.

National Australia Bank Ltd (ASX: NAB) shares are taking a hit as well. The NAB share price closed yesterday at $36.33. At the time of writing, shares are trading for $35.93 each, down 1.1%.

For some context, the ASX 200 is down 0.3% at this same time amid a broader global stock market retreat following renewed military strikes in the Middle East.

Unfortunately, today’s underperformance for these big four banks has been par for the course in 2026, with both ASX 200 bank stocks materially trailing the 1.2% year-to-date losses posted by the benchmark index.

Indeed, Westpac shares have slumped 10.3% this calendar year. Losses that will only be marginally eased by the fully-franked 77 cent per share dividend the bank will pay eligible stockholders on 26 June.

Westpac stock traded ex-dividend on 8 May, so investors selling today, who held the stock at market close on 7 May, will receive that passive income payout.

NAB shares have had an even tougher run this year, down 15.2% since 2 January.

NAB will pay out its 85-cent per share fully-franked interim dividend on 2 July. NAB shares traded ex-dividend on 7 May, so that payout will go to investors who held the stock at market close on 6 May.

And looking ahead, MPC Markets’ Mark Gardner forecasts that both ASX 200 bank stocks are likely to face more headwinds over the coming months (courtesy of The Bull).

Here’s why.

Time to exit Westpac shares?

“Westpac has a strong retail franchise, but the valuation appears stretched,” Gardner said. “Consensus targets imply downside from current levels.”

Summarising his sell recommendation on Westpac shares, he concluded:

The bank has made progress on simplifying its operations and cutting costs, but, in our view, earnings growth is still expected to lag the broader Australian market. The bank is up against competitive pressures and the risk of softer credit conditions. Investors may want to consider taking a profit at these levels.

Should I sell NAB shares today?

Alongside his bearish outlook for Westpac shares, Gardner also issued a sell recommendation for NAB shares.

“NAB remains a quality banking franchise, but the near-term earnings outlook is under pressure,” he said.

Gardner noted the attractive passive income on offer from NAB shares, but pointed to some concerning issues from its H1 FY 2026 results.

According to Gardner:

The bank’s first half net profit in fiscal year 2026 missed analyst expectations, with bad debt provisions and one-off charges weighing on the result. The dividend remains attractive, but valuation support looks less convincing if earnings momentum continues to soften.

Explaining his sell recommendation for NAB shares, he concluded:

In our view, the bank faces the challenges of margin pressure, higher credit risk and slower profit growth. We prefer to reduce exposure and direct capital towards stronger growth opportunities elsewhere.

The post Sell alert! Why this expert is calling time on NAB and Westpac shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

There are a decent number of options in the tech sector for investors to choose from.

But one ASX tech stock flying under the radar that could be worth getting acquainted with has been named in this article.

Let’s see why Bell Potter thinks it could be a buy this week.

Which ASX tech stock?

The tech stock that is being tipped as a buy is Cogstate Ltd (ASX: CGS).

It is a healthcare technology company focused on optimising brain health assessments, predominantly for clinical trials of novel medicines.

Bell Potter notes that the company mostly generates revenue from providing services to biopharma customers conducting clinical trials in central nervous system (CNS) indications. This includes Alzheimer’s disease.

It notes that the company held an investor webinar this week, which provided insights into the business and its Orexin opportunity. It said:

As expected, there was minimal new financial data, but rather the presentation focused on qualitative aspects regarding recent tailwinds from (1) channel partnerships with Medidata and others, (2) increased use of CGS’s central rating capabilities, and (3) newer indications such as narcolepsy and psychiatry where CGS has been winning more work recently. These three inter-related aspects have been driving contract sales growth and diversification over the last ~12 months (refer to our latest Q3 update for more detail).

Regarding point #3, we have reviewed the clinical-stage drug development landscape in narcolepsy and other orexin-related conditions. We conclude the orexin market reflects at least a ~US$30-40m contract opportunity for CGS over the coming ~3-4 years, for which CGS is very well placed to continue being a leading provider for endpoint management and trial monitoring solutions. Additionally, CGS continues to benefit from partners such as Medidata who are bringing in more contract opportunities, i.e. more ‘shots on goal’. These partners are clearly starting to convert into additional wins for CGS (e.g. 62% of sales contracts in 2Q FY26 were driven by these partners).

In light of this, the broker remains very positive on the ASX tech stock and is recommending it to clients.

How much upside does Bell Potter see?

According to the note, Bell Potter has retained its buy rating and $3.20 price target on Cogstate’s shares.

Based on its current share price of $2.75, this implies potential upside of 16% for investors over the next 12 months.

While its shares trade on multiples that are in line with peers, Bell Potter believes it has a stronger growth outlook. It commented:

BUY recommendation and $3.20 PT remains unchanged. CGS is trading on ~13.5x EV/EBITDA based on our FY27e, which is in line with the global CRO peer avg, however CGS has a far more attractive growth outlook than these peers.

The post Bell Potter is recommending this ASX tech stock as a buy appeared first on The Motley Fool Australia.

More reading

• Why are Sigma Healthcare shares in the spotlight this week?
• Sell alert! Why this expert is calling time on NAB and Westpac shares
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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 positions in and has recommended Cogstate. The Motley Fool Australia has positions in and has recommended Cogstate. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Pro Medicus Ltd (ASX: PME) shares are climbing higher on Thursday.

At the time of writing, the shares are up slightly by about 1% and are changing hands at $162.82 each. Today’s increase means the shares are now nearly 23% higher so far in June.

The rebound is good news for investors after a huge sell-off over the past year. Pro Medicus shares are still 51% below their all-time peak recorded in July last year and are also down 27% year to date.

The company was just one of many ASX healthcare shares that were caught up in a severe sector-wide downturn in early 2026. The healthcare sector came under significant pressure due to macroeconomic factors, a weaker US dollar, rising inflation, higher cost of living, and regulatory uncertainty.

Why are Pro Medicus shares rebounding this month?

Pro Medicus shares have rebounded strongly since the health imaging technology company announced three new contract wins and renewals in June alone.

Earlier this month, Pro Medicus revealed that its wholly owned US subsidiary, Visage Imaging, had signed a five-year, A$28 million contract renewal with Allegheny Health Network (AHN) and a new A$16 million, seven-year contract with TidalHealth.

Later the same week, the company confirmed that Visage Imaging has signed a five-year A$16 million contract renewal, including the additions of Visage 7 Workflow and Visage 7 Cardiology Imaging, with The Ohio State University Wexner Medical Center (OSUWMC). 

This latest renewal brings the total renewals for the financial year to A$141 million. The total of new contracts comes to around A$280 million for FY26. 

Is it time to buy?

According to experts, it’s time to get greedy while Pro Medicus shares are cheap.

Market Index data shows the majority of brokers have a buy rating on the stock, and they tip a 20% upside to an average target price of $193.92. 

The data is similar on TradingView. Out of 15 analysts, 12 have a buy or strong buy rating, and two have a hold rating on Pro Medicus shares. The average $189.47 target price implies a 17% upside at the time of writing. The maximum $245 target price implies the shares could climb another 51% over the next 12 months.

Macquarie is one broker with a buy rating on the ASX healthcare company, with a $221 target. The broker said recent contract wins have supported market sentiment following the tech sell-off due to AI fears. The team said they think the business size, variety, and increasing upsell to cardiology support the high target price. 

The analyst team at Morgans is also positive about Pro Medicus shares. The broker said the company is executing well and is in a structurally strong competitive position. Morgans has a buy rating and $210 target price on the shares.  

The post Is it time to get greedy with Pro Medicus shares? 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 Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Macquarie Group and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.