Author: openjargon

Shares in BHP Group Ltd (ASX: BHP) are once again showing investors why the mining heavyweight remains one of the ASX’s most closely watched companies.

After a volatile start to the year, BHP shares have roared higher. The mining business is up 6% over the past five trading days, 28% year to date, and an impressive 55% over the past 12 months. To put it in perspective, the S&P/ASX 200 Index (ASX: XJO) has risen roughly 6% over the same period.

So, what keeps driving the BHP share price higher and is there more to come?

Multiple divisions firing strongly

One major reason for the rising BHP shares is diversification.

Despite ongoing swings in global commodity prices, BHP continues delivering strong operational performance across multiple divisions. Its Western Australian iron ore business recently achieved record production levels, while copper production remains robust and is expected to finish in the upper half of FY26 guidance.

That operational consistency matters. When several business segments are performing well simultaneously, it helps support earnings stability and stronger cash flow generation. BHP is no longer simply an iron ore miner with a collection of smaller assets attached.

Copper major growth driver

Copper is becoming an increasingly important part of the business.

In the first half of FY26, BHP reported that copper accounted for more than half of its underlying earnings for the first time ever. The company is also targeting copper production of between 1.9 million and 2 million tonnes this financial year.

That could prove important for long-term investors in BHP shares because copper demand is closely tied to global electrification trends.

Copper is essential for renewable energy infrastructure, electric vehicles, power grids, data centres and digital infrastructure. As electricity demand rises and technology systems become more complex, many analysts expect copper demand to remain strong for decades.

BHP’s own forecasts point to global copper demand increasing from around 34 million tonnes annually today to more than 50 million tonnes by 2050. The company also believes copper demand from data centres alone could rise six-fold to almost 3 million tonnes annually by 2050.

Strategic asset sales

Importantly, copper is not the only attraction of BHP shares. The company still generates enormous cash flow from iron ore while maintaining exposure to steelmaking coal and future potash production.

That diversification helps support cash flow across commodity cycles and gives management flexibility to continue investing in growth projects.

BHP’s balance sheet strength is another key advantage. The miner has improved its financial position through strategic asset sales and portfolio reshaping, allowing it to maintain significant financial flexibility while continuing to reward shareholders through dividends.

This is not a speculative mining company relying on one commodity boom. BHP remains a global resources powerhouse with operational scale, diversified earnings streams and multiple long-term growth opportunities.

What next for BHP shares?

Still, analyst sentiment remains mixed following the strong rally.

According to TradingView data, 14 of 21 analysts currently rate BHP shares as a hold. Five analysts have buy or strong buy recommendations, while two suggest selling.

The average 12-month price target sits at $54.30, which is roughly 7% below the current BHP share price of $58.33.

The most bullish analyst forecasts imply around 18% upside ahead, while the most bearish suggest the stock could fall another 33%.

For investors, BHP’s growing copper exposure may ultimately become the biggest factor shaping the miner’s long-term future.

The post Up 55% in a year, are BHP shares still a buy today? appeared first on The Motley Fool Australia.

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• Where I’d invest $10,000 into ASX 200 dividend shares right now
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Marc Van Dinther 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.

Shares in FleetPartners Group Ltd (ASX: FPR) have been on the up since the company released its first-half results recently, but the analysts at Macquarie believe there are still two good reasons to buy the stock.

Those reasons are the potential for more capital gains, along with very healthy dividends, now and into the future.

We’ll go into more detail about where Macquarie sees both heading shortly.

Firstly, let’s have a look at what FleetPartners reported last week.

Solid operating result

The vehicle leasing and fleet management company said in its statement to the ASX that its first half statutory net profit for the six months ending March 31 was up 7% on the previous corresponding period to $37.1 million.

The group delivered new business writings of $367 million for the half, down 1%, however the company said momentum was strong towards the end of the half, while the April figures were 27% higher than the monthly average for the first half.

FleetPartners said it had $4.5 million in net cash at the end of the half and no debt maturing until October 2028.

The company said it remained focused on its three main target markets:

In Large Fleets, the Group’s value proposition and go-to-market strategy continue to resonate, underpinned by a customer partnership model that combines deep relationships, market-leading service and specialist expertise. In Small Fleets, our strategy remains centred around omni-channel distribution, with strong success in digital direct channels validating the scale of the addressable opportunity. In Novated, recent strategic initiatives, in conjunction with market demand for BEVs, have supported increased enquiry and order volumes in 2Q26. This has been complemented by the acquisition of Remunerator, which is performing in line with expectations. The Group is focused on increasing employer engagement and eligible employee penetration.

FleetPartners announced a $20 million share buyback on March 26, with just $900,000 worth of shares repurchased to date.

It also declared a fully-franked interim dividend of 11.9 cents per share payable on June 1, which represented a grossed-up yield of 13% at the time of publication.

On the outlook, the company said market conditions were challenging, and it expected “marginal growth” in new business writings.

Shares looking cheap

The analyst team at Macquarie ran the ruler over the FleetPartners result, and they liked what they saw.

They said the company was trading at an “undemanding multiple”, and they have a price target of $3.41 on the company’s shares compared with $2.87 currently.

On the dividend front, Macquarie is forecasting a dividend yield of 8.3% this financial year, followed by 8% and 7.5% the following years.

FleetPartners is valued at $601.5 million.

The post Macquarie has flagged this big ASX dividend payer to increase in value too appeared first on The Motley Fool Australia.

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• FleetPartners shares surge 6% on half-year results

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The GQG Partners Inc (ASX: GQG) share price is in focus after the company reported funds under management (FUM) rose to US$166.9 billion as at 30 April 2026, up from US$162.5 billion at the start of the month, driven by solid investment performance even as net flows remained negative.

What did GQG Partners report?

• Funds under management (FUM) increased to US$166.9 billion at 30 April 2026 from US$162.5 billion at 31 March 2026
• April net outflows totalled US$1.4 billion across all strategies
• April investment performance contributed a positive US$5.7 billion
• Year-to-date net outflows of US$9.9 billion offset by US$13.0 billion of investment performance
• Strongest April FUM growth in International and Emerging strategies

What else do investors need to know?

GQG Partners’ FUM ended higher despite consistent net outflows, reflecting a strong month for investment markets and performance across the firm’s strategies. The slight decrease in US strategy FUM was more than offset by gains in International and Emerging strategies.

The company noted that all reported figures are in US dollars and unaudited. Its Private Capital Solutions activity is not included in these totals. Investors can expect the next FUM updates on 10 June, 13 July, and 12 August 2026.

What’s next for GQG Partners?

Looking ahead, GQG Partners will continue to provide monthly FUM updates, with the next announcement planned for 10 June. Management remains focused on navigating net flow challenges while building on recent positive investment performance.

The company continues to diversify its global and emerging markets strategies, seeking to maintain and grow FUM despite ongoing outflows.

GQG Partners share price snapshot

Over the past 12 months, GQG Partners shares have declined 37%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post GQG Partners reports growth in funds under management for April 2026 appeared first on The Motley Fool Australia.

More reading

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• Life360 Q1 2026 earnings: revenue climbs, advertising growth stands out
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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 recommended Gqg Partners. 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 Pro Medicus Ltd (ASX: PME) share price has been one of the worst performers of the S&P/ASX 200 Index (ASX: XJO) within the last year. Massive underperformance could lead to an impressive recovery if one of two things happens.

As the above chart shows, it’s down around 50% in the last 12 months and it has fallen 60% from mid-July 2025, at the time of writing.

I think the company is still one of Australia’s highest-quality businesses. But, it hasn’t been treated as such, seemingly due to worries about what impact AI may have on the software industry in the coming years.

Pro Medicus is now a lot cheaper on a price/earnings (P/E) ratio basis. I think the Pro Medicus share price could rise significantly if either: the market becomes less worried about AI or the company’s improving financials can excite the market – its P/E ratio doesn’t need to rise for it to deliver good returns over the next few years.

We can’t know how the market will treat software businesses in the future, but profit growth looks very promising for the business.

Continues to win contracts

Last year, the company commanded a high valuation (and share price), partly due to market expectations that the business would continue winning significant contracts from important customers.

I don’t have a crystal ball to know how future potential contracts will go. However, the future still looks very bright, in my opinion, with the company announcing two contracts since the start of April 2026.

One was a new 5-year, A$23 million contract with the University of Maryland Medical System.

The other was a A$37 million contract renewal with Northwestern Medicine. This was negotiated with increased minimums and an increased fee per transaction – those are great positives because they suggest future organic revenue growth from its existing client base.

Pro Medicus is now being priced for significantly less success. But, its software is still just as excellent as it was before, so if it continues to win new contracts then it will drive earnings higher.

Finally, I’ll also note that I like the move to expand into cardiology because it gives the company another growth avenue for the long-term, though I’m not expecting a lot from that endeavour at this stage.

Incredible profit margins

I expect the company’s revenue to continue growing for the foreseeable future. It has an incredibly high operating profit margin, which I believe will translate into the bottom line continuing its excellent progress, justifying a higher Pro Medicus share price.

In the FY26 half-year result, Pro Medicus reported an underlying operating profit (EBIT) margin of 72.6%, which is one of the highest on the ASX. That implies more than 70% of new revenue is turning into usable operating profit.

Therefore, I think it’s very likely that the business can continue delivering earnings growth, making the current valuation seem reasonable.

Better Pro Medicus share price valuation

According to the projections on Commsec, at the time of writing, the Pro Medicus share price is valued at 91x FY26’s estimated earnings, 71x FY27’s estimated earnings and 60x FY28’s estimated earnings. Its net profit is forecast to rise by 50% between FY26 and FY28.

It’s still not traditionally ‘cheap’, but I think its incredible financial power may now be underestimated by the market and this could be a compelling opportunity to buy and hold for the long-term.

The post Pro Medicus shares have fallen 60% – is this a once-in-a-decade opportunity to buy? appeared first on The Motley Fool Australia.

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

The Life360 Inc (ASX: 360) share price is in focus today after the company reported total Q1 2026 revenue up 38% year-over-year to a record US$143.1 million, with advertising revenue surging 329% to US$19.7 million.

What did Life360 report?

• Total revenue up 38% to US$143.1 million
• Subscription revenue up 32% to US$108.2 million
• Advertising revenue up 329% to US$19.7 million
• Adjusted EBITDA of US$17.1 million, up 7% vs Q1 2025
• Net income of US$2.8 million (including US$11.7 million tax benefit), EPS US$0.03
• March annualised monthly revenue hit US$517.9 million, up 32%

What else do investors need to know?

Life360 crossed three million Paying Circles in the quarter, with 201,000 net additions—its strongest quarter ever for subscriber growth. Monthly active users (MAU) reached 97.8 million, a 17% increase, though this was below expectations due to technical issues. Management identified and addressed problems affecting Android registrations, particularly on lower-end devices, and expects MAU growth to recover by Q3.

The Nativo acquisition boosted advertising capabilities, adding hundreds of advertisers and expanding Life360’s ad reach to more than 20,000 apps and sites. The first quarter of full Nativo integration saw Life360 advertising revenue separated in reports for the first time.

What’s next for Life360?

Life360 has raised its full-year 2026 revenue guidance to US$650–685 million and adjusted EBITDA to US$130–140 million. The company expects MAU growth to return to its planned path by Q3, especially as Android user challenges subside and new international growth initiatives roll out in Germany, Mexico, and Brazil.

Management flagged that advertising revenue and gross margins are likely to be back-half weighted as platform integration completes and new campaigns ramp up. Life360 plans further AI-driven product innovation, international expansion, and added features designed to boost engagement and subscription conversion.

Life360 share price snapshot

Over the past 12 months, Life360 shares have declined 16%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Life360 Q1 2026 earnings: revenue climbs, advertising growth stands out appeared first on The Motley Fool Australia.

More reading

• Up 55% in a year, are BHP shares still a buy today?
• GQG Partners reports growth in funds under management for April 2026
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• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

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 Life360. The Motley Fool Australia has positions in and has recommended Life360. 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.

Exchange traded funds (ETFs) are growing in popularity and it isn’t hard to see why.

They provide a simple way to invest, eliminating the need to choose individual shares.

But which ASX ETFs could be worth considering in 2026? Let’s take a look at five funds that are highly rated for a reason. They are as follows:

iShares S&P 500 ETF (ASX: IVV)

The first ASX ETF to consider is the iShares S&P 500 ETF.

With a single investment, this fund provides access to a large slice of the US share market, which remains home to many of the world’s strongest companies.

Among its 500 holdings are names such as Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and McDonald’s (NYSE: MCD).

For investors wanting US exposure through the ASX, this fund remains one of the cleanest ways to do it.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ASX ETF worth looking at is the Vanguard MSCI Index International Shares ETF.

It provides exposure to developed markets outside Australia, including the United States, Europe, Japan, and other major economies.

This makes it broader than a single-country ETF. It gives investors access to thousands of companies across multiple regions and industries, helping reduce reliance on the Australian market.

Its holdings include Apple (NASDAQ: AAPL), NVIDIA (NASDAQ: NVDA), and Nestle (SWX: NESN).

Betashares Nasdaq 100 ETF (ASX: NDQ)

A third ASX ETF to consider buying is the Betashares Nasdaq 100 ETF.

This fund is more concentrated than broad global funds. It gives investors exposure to many of the companies shaping digital consumption, artificial intelligence, cloud computing, software, and online services.

Its holdings include Alphabet (NASDAQ: GOOG), Tesla (NASDAQ: TSLA), and Broadcom (NASDAQ: AVGO).

The fund can be more volatile than broader ETFs because of its technology-heavy profile. However, it also provides exposure to some of the strongest growth businesses in the world.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF to look at is the popular VanEck Morningstar Wide Moat ETF.

It takes a more selective approach to the US market. It focuses on companies that have sustainable competitive advantages, while also considering valuation.

Its holdings include companies such as Nike (NYSE: NKE), Airbnb (NASDAQ: ABNB), and Amazon (NASDAQ: AMZN).

For investors who want exposure to quality US companies without simply tracking the broader market, the VanEck Morningstar Wide Moat ETF could be worth a closer look.

Betashares Global Cybersecurity ETF (ASX: HACK)

A final ASX ETF that stands out is the Betashares Global Cybersecurity ETF.

Cybersecurity has become a core spending priority for businesses and governments. As more data, payments, systems, and customer interactions move online, the need to protect digital infrastructure keeps growing.

This fund provides exposure to global companies involved in cybersecurity software, hardware, and services. Its holdings include Palo Alto Networks (NASDAQ: PANW), CrowdStrike (NASDAQ: CRWD), and Cisco Systems (NASDAQ: CSCO).

This is a more targeted ETF, so it may not suit every investor. But for those wanting exposure to a long-term technology theme, it could be worth considering.

The post 5 of the best ASX ETFs to buy and hold in 2026 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Nike, and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Airbnb, Alphabet, Amazon, Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, Broadcom, Cisco Systems, CrowdStrike, Microsoft, Nike, Nvidia, Tesla, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nestlé and Palo Alto Networks and has recommended the following options: long January 2028 $320 calls on McDonald’s and short January 2028 $340 calls on McDonald’s. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Airbnb, Alphabet, Amazon, Apple, CrowdStrike, Microsoft, Nike, Nvidia, VanEck Morningstar Wide Moat ETF, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When it comes to long-term investing in ASX shares, I’m not sure there is an option better than Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). I’m all about investing for the long-term, which is why I’ve invested heavily in it and it’s my largest holding.

This business is an investment conglomerate that has been listed for 120 years – it’s one of the oldest companies in Australia.

I haven’t held it for an extremely long time yet, but I’m planning to do so for a few different reasons. It ticks my objective boxes and I want to outline why it’s a wonderful choice to own.

Effective diversification

A vast majority of Australian investors would benefit from having diversification in their portfolios.

If we were to look at where household wealth is invested, I wouldn’t be surprised if a large proportion was invested in residential property, ASX bank shares and ASX mining shares. That exposure may be direct or indirect.

So, I think it could be a smart move to invest in assets that give exposure to other sectors and can provide the same or better returns. I don’t want to be diversified for the sake of it if its detrimental to my returns.

Instead, I want to own investments that I believe can produce strong returns, with a different set of risks.

Soul Patts is invested across a wide array of industries that management believes can provide good returns and defensive cash flow.

It’s invested in areas like energy, communication services, consumer discretionary, credit, materials, financials, industrial property, agriculture, water rights, swimming schools and plenty more.

I think it’s this defensive diversification that has helped the business outperform the ASX share market during declines.

Capital growth

One of the main reasons why I think the ASX share is such a compelling investment, and why I want to own it for the long-term, is because of how its portfolio develops over time.

Soul Patts makes long-term investments and those assets have a good likelihood of growing in value over time because of natural business growth. This helps drive the underlying value of Soul Patts up over time as well.

Additionally, Soul Patts regularly makes additional investments into expanding its portfolio and unlocking further growth.

Between the first half of FY23 and the first half of FY26, its net asset value (NAV) has returned an average of 11.1% per year (adjusted for dividends).

Over the last 25 years, Soul Patts has delivered an average total shareholder return (TSR) of 12.9%.

I expect the Soul Patts share price can rise in the coming years as its portfolio of businesses continues to grow profit, helping increase my wealth.

Dividend growth

One of the best reasons I like this ASX share is that the business gives great dividend income. I like owning Soul Patts shares in my portfolio so that I can benefit from the wealth effect of the steadily growing dividend.

Soul Patts has increased its regular annual dividend every year since 1998, which is the longest record on the ASX.

Dividend growth is not guaranteed, but I have a high level of confidence that it can increase its annual payout for the foreseeable future because of the growing business investments it has made.

Its latest announced dividend was the FY26 interim payout, which was hiked by 9.1% to 48 cents per share.

With a current grossed-up dividend yield of 3.5%, including franking credits. I think that’s a solid starting dividend yield from the ASX share. If the business ever became cheaper, I’d be even more motivated to buy more of the ASX share.

The post 3 compelling reasons why this is my biggest ASX share holding appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In a market that celebrates the next big lithium discovery or AI-adjacent tech play, there is something quite refreshing about a company that simply raises its dividend every single year.

Yes, every single year, for the last 20 years!

That company is APA Group (ASX: APA), and if it isn’t already sitting in your income portfolio, it’s one I’d consider.

Twenty years and counting

APA Group owns and operates the vast network of pipelines that transport natural gas from where it’s produced to where Australians actually use it, accounting for around half of the country’s domestic gas supply. 

Throughout many global economic crises over the past years, from the GFC to COVID and through every bit of market turbulence in between, APA has increased its dividend distributions.

The forward distribution yield currently sits at around 5.75%, and for Australian investors, the franking credits push that grossed-up return considerably higher.

This consistency is extraordinarily rare, but also demonstrates how defensive APA’s cash flows are.

Natural gas is something that is required by Australian industry and consumers year-round, regardless of prevailing economic conditions. 

The bull case for APA

APA has benefited over the last few months from the increase in global natural gas prices. 

But beyond this, APA also benefits from a unique regulatory structure. 

The Australian Energy Regulator sets the revenue APA can earn from its pipelines, guaranteeing a fair return on capital regardless of economic conditions. 

Investors can therefore consider APA a government-sanctioned monopoly. 

For defensively minded investors, this structure is quite reassuring.

The numbers stack up

The most recent half-year results were quite impressive. 

EBITDA grew 7.6% to $1.09 billion, and margins expanded to 77.3%.

This is the sort of growth and margin expansion APA needs to continue increasing its dividend. 

An additional advantage is that this provides APA with significant Free Cash Flow, which it can either reinvest in future revenue-generating capital expenditures or distribute to shareholders.

On top of this, APA holds around 70% of Australia’s gas transportation market share, serving 1.5 million connections.

This dominant market position protects APA from threats from new market entrants or other disruptive events.

The foolish takeaway

APA is more than just a yield play; its underlying business is performing strongly, and APA benefits from some unique competitive advantages. 

APA is also investing in its future, with a $3 billion renewable energy hub in Newman and hydrogen pipeline testing already underway. 

Twenty years of unbroken dividend growth, regulated cash flows, and a network nobody can replicate: sometimes even a boring business can make a great investment!

The post This overlooked ASX stock has raised its dividend 20 years in a row 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 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 biotech stock Mesoblast Ltd (ASX: MSB) has pulled back sharply in 2026, but some investors may see the weakness as a potential buying opportunity.

After climbing above $3 in early January, the ASX biotech stock has largely trended lower and is now down around 27% year to date at the time of writing.

Biotech shares are often volatile, and Mesoblast is no exception. But despite the recent sell-off, several factors suggest the company could still have substantial upside ahead.

Here are three reasons why this ASX biotech stock may be worth a closer look.

Ryoncil could drive cash flow growth

One of the biggest positives for Mesoblast is the growing commercial opportunity surrounding Ryoncil. The company believes sales from the therapy alone could eventually support earnings generation and cash flow positive operations, which would mark a major milestone for the biotech business.

That is significant because many biotechnology companies remain heavily reliant on external funding for years before becoming commercially sustainable.

If Mesoblast can successfully scale Ryoncil sales, investor confidence in the company’s long-term financial position could improve substantially. For a speculative ASX biotech stock, the prospect of sustainable cash flow generation is a major advantage.

Multiple growth opportunities remain

Mesoblast’s pipeline also extends well beyond a single product. The company says new product approvals are now well advanced in areas including heart failure and chronic lower back pain. Both markets represent potentially enormous long-term commercial opportunities.

If future regulatory approvals are achieved, Mesoblast could significantly expand revenue streams over the coming years.

Investors are increasingly focusing on the broader pipeline potential rather than viewing the company as dependent on one treatment outcome. Importantly, expanding revenues and commercial diversification may also help reduce risk over time.

For investors comfortable with biotech volatility, the company’s pipeline could provide considerable upside leverage.

Broker optimism is growing

Analyst sentiment toward Mesoblast has also become increasingly positive despite recent share price weakness. TradingView data shows that all seven analysts covering the ASX biotech stock rate it a strong buy, with an average 12-month price target of $4.12, which suggests 105% upside.

Bell Potter last week reaffirmed its speculative buy rating on the ASX biotech stock with a $4.50 price target. That target suggests potential upside of more than 120% from current trading levels. The broker’s bullish stance reflects growing confidence in Mesoblast’s commercial outlook and product pipeline progress.

If investor sentiment toward healthcare and biotech shares improves more broadly, Mesoblast could benefit strongly from renewed market enthusiasm.

Risks remain

Of course, investing in ASX biotech stocks still carries elevated risks.

Mesoblast remains exposed to regulatory uncertainty, clinical trial outcomes and commercial execution challenges. Funding requirements and share price volatility also remain important considerations for investors.

A weaker-than-expected product rollout or regulatory setback could significantly impact sentiment.

Still, after a sharp 2026 decline, some investors may believe the risk-reward profile is becoming increasingly attractive.

With commercial revenues building, multiple approval pathways advancing and broker confidence strengthening, Mesoblast could be one ASX biotech stock worth watching closely.

The post 3 reasons why this ASX biotech stock could double in value appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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.

ASX industrials stock Mayfield Group Holdings Ltd (ASX: MYG) raced 300% higher during 2025. 

For comparison, the S&P/ASX 200 Industrials Index (ASX: XNJ) rose 9% during that same span. 

Mayfield Group is a national supplier of electrical equipment, including switchboards, control modules, kiosk substations, and transportable switchrooms. 

The company also delivers whole-of-life services for communications infrastructure integrated with power and energy storage solutions.

Why is this industrials stock booming?

In the last 12 months, it has benefited from major investment in Australia’s electricity infrastructure. 

The country is upgrading transmission lines, expanding renewable energy projects, electrifying industries, and building more data centres, all of which increase demand for Mayfield’s electrical and engineered solutions. 

Rising defence spending has also created additional demand for secure energy systems.

At the same time, the company has strengthened its own performance by expanding its order book, improving operations, increasing profit margins, and maintaining a strong balance sheet. 

However, in 2026, it has come back down to earth slightly, falling 12% year to date. 

A new report from Bell Potter suggests this recent dip could be an attractive entry point for investors. 

Here’s what the broker had to say. 

Expanding to record levels

Bell Potter said this ASX industrials stock has secured $52m in new purchase orders to date in 2H FY26 across the Data Centre, Renewable Energy, Infrastructure, Power Generation, and Mining sectors. 

Notable purchase orders included:

• $15.7m order for the supply of switchboards to a major data centre development (largest single order to date)
• $10.2m order for custom-built protection and control panels for a major renewable energy zone project
• $2.0m SMEC order from an international customer (first international contract award since acquisition)

MYG’s current WIH stands at $151m (record), positioning the company for strong revenue growth in FY27 (BPe +23.0%, including SMEC contribution).

MYG’s coverage is ~80% of our CY26 revenue forecast (consistent with PcP). If MYG maintains its current order win-rate, we see potential upside to our FY27 revenue estimate.

Buy rating unchanged 

Bell Potter has retained its buy recommendation on this ASX industrials stock. 

It has also maintained its price target of $3.40. 

At roughly $2.80 per share at the time of writing, this indicates an upside potential of 21%.

MYG’s outlook is underpinned by structural tailwinds in Mining, Renewable Energy, Data Centre, Defence and Water infrastructure markets. MYG is adequately.

MYG is well positioned to achieve our FY27 revenue expectation of $205m (+23% growth) given its WIH expansion to record levels ($151m – 6 May 2026)

The post This red hot ASX industrials stock has 21% upside according to Bell Potter appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Mayfield Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.