Author: openjargon

One area of the tech sector that has been growing rapidly is cyber security.

Unfortunately, there aren’t many options for Aussie investors, so most end up using the Betashares Global Cybersecurity ETF (ASX: HACK) to access this thematic.

However, Bell Potter believes there is at least one ASX cyber security stock worth buying right now.

Which ASX cyber security stock?

The stock that the broker is recommending to clients is Infotrust Ltd (ASX: ITS).

It is a provider of cyber security solutions and secure managed technology services to both small and medium businesses and enterprise customers in Australia.

Bell Potter highlights that the company provides its products and services across a wide range of sectors. This includes healthcare, utilities, education and government. At the last count, it had over 1,000 customers nationally.

The broker notes that the ASX cyber security stock has announced the appointment of a new CEO and provided an update on its performance. It said:

Infotrust provided an update to the market and the key points were: 1. Paul Timmins is joining as the new CEO and Julian Challingsworth will “transition out following a significant turnaround”; 2. Updated guidance for 2HFY26 is underlying EBITDA of c.$2.3m (vs >$3m previously); and 3. Focus is on growth and cash profitability in FY27.

The change in CEO is a surprise to us but, as highlighted in the release, the company has undergone a significant turnaround and is now entering a new stage as a cyber first technology business. The updated guidance for H2 is a downgrade of >20% and it is unclear what exactly has driven this but it is still a significant improvement on 1HFY26 underlying EBITDA of $0.4m. The focus on profitability in FY27 is probably no different and the earning improvement from 1HFY26 to 2HFY26 still suggests a much better result in FY27 relative to FY26.

Should you invest?

According to the note, Bell Potter has retained its buy rating on the ASX cyber security stock with a trimmed price target of 58 cents (from 62 cents).

Based on its current share price of 43.5 cents, this implies potential upside of 33% for investors over the next 12 months.

Speaking about its buy recommendation, the broker said:

[W]e believe the outlook remains positive and we also support the cyber first strategy. The earnings downgrades have, however, driven a 6% decrease in our TP to $0.58 which has mostly been driven by a reduction in the EV/EBITDA valuation with only a modest decline in the DCF. This TP is >15% premium to the share price so we maintain our BUY recommendation.

We note the company is in a strong cash position post the sale of its Cloud & Communications business so we also see potential earnings upside from more acquisitions in the cyber security space.

The post Broker tips this ASX cyber security stock to rise over 30% appeared first on The Motley Fool Australia.

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• How to build a $20,000 ASX share portfolio with $100 a month
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• 3 ASX ETFs to buy with $10,000 this week

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 BetaShares Global Cybersecurity ETF. 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.

Some S&P/ASX 200 Index (ASX: XJO) shares have fallen heavily over the past year, and I think that has created a more attractive risk/reward setup for patient investors.

The two ASX 200 shares in this article are both down around 40%. That does not make them risk-free, but I think their long-term growth opportunities remain compelling.

Here’s why I think they could be worth a closer look today.

REA Group Ltd (ASX: REA)

REA Group shares are down around 40% from their 52-week high.

That is a big fall for one of the highest-quality digital businesses on the ASX. But I think the underlying investment case remains attractive.

REA owns realestate.com.au, Australia’s dominant property platform. Its strength comes from the network effect between buyers, renters, sellers, agents, developers, advertisers, and lenders.

Property buyers want to search where the most listings are. Agents want to advertise where the most serious buyers are. That creates a powerful loop that can be difficult for competitors to break.

You only need to look at its third-quarter results to see that the platform is still attracting huge audiences. REA reported record Australian audiences in the March quarter, with 12.9 million average monthly visitors and 150 million average monthly visits.

I like REA because it can grow in several ways over time. It can increase the value of property listings through premium products, help agents use more data and insights, deepen its mortgage and financial services opportunity, and improve the consumer experience with better digital tools.

Artificial intelligence could also help REA build better search, richer property insights, smarter agent tools, and more useful experiences for buyers and sellers.

The main risk is valuation. REA shares have rarely been cheap, and the property market can still affect listings and sentiment. But a 40% fall makes the equation more interesting for patient investors.

SiteMinder Ltd (ASX: SDR)

SiteMinder shares have fallen around 40% over the past 12 months.

This is a very different business from REA, but I think the long-term idea is also attractive.

SiteMinder provides hotel commerce technology. Its platform helps hotels manage bookings, distribution channels, room rates, inventory, and revenue opportunities across a fragmented travel ecosystem.

Hotels need to sell rooms across multiple channels at the right price while avoiding mistakes such as overbooking or pricing errors. That becomes more complicated as online travel agents, direct bookings, metasearch, wholesalers, and emerging AI-driven channels all play a role.

SiteMinder sits in the middle of that complexity, and stands to benefit as more channels, more dynamic pricing, and more automation increase the need for reliable software that keeps inventory and pricing synchronised.

That does not make SiteMinder risk-free. The company still needs to keep executing on its strategy and delivering profitable growth.

But after a 40% share price fall, I think the risk-reward balance looks more attractive than it did.

Foolish Takeaway

Investing $1,000 into either of these ASX 200 shares will not suit everyone. REA and SiteMinder are growth-focused businesses, and both can remain volatile if investors become more cautious.

But I think both have strong long-term characteristics. REA has a dominant property platform with multiple ways to increase customer value, while SiteMinder is gaining a growing role in the global hotel technology stack.

A 40% fall does not guarantee a rebound, but it does create a better entry point for investors willing to look past short-term share price pain and focus on what these businesses could become over the next five to 10 years.

The post Down 40%: Investing $1,000 into these ASX 200 shares could be a smart move appeared first on The Motley Fool Australia.

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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 SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. 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 regularly goes through volatility, any share price can go down. But there are a few names that I reckon can deliver market-beating returns, aren’t overpriced and could be less volatile than the wider local or global share market.

I’m going to talk about three of my favourite long-term ideas, each offering a very different investment exposure.

There are three investments I want to tell you about – an exchange-traded fund (ETF), an ASX share and a listed investment company (LIC). I’d call them all ‘unstoppable’ investments and I’d love to invest $3,000 in them.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The MOAT ETF is an excellent long-term investment option because of the types of businesses it invests in.

It invests in high-quality US-listed businesses that are seen by Morningstar as having wide economic moats. In other words, competitive advantages that are so strong and enduring that analysts think they could last for the next 20 years.

If the business is able to stay ahead of competitors for that long, it could generate pleasing profit growth for many years to come.

By only investing in these wide moat businesses, investors have a great chance at experiencing long-term returns. Competitive advantages could include things like cost advantages, network effects, patents and so on.

The MOAT ETF only invests in these great businesses when they’re trading at a good value price. Therefore, it’s a portfolio of great companies at attractive prices.

Over the past ten years, it has returned an average of around 14%.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare is a leading ASX share in the healthcare space because of its Chemist Warehouse business and its wholesale pharmacy distribution.

Healthcare is a strong long-term growth sector with Australia’s ageing and growing long-term population, giving it an earnings tailwind.

With Chemist Warehouse growing total network sales in the double-digits year-over-year, it’s clearly got a very exciting future with both strong like-for-like sales growth at the existing locations and adding more locations in Australia and overseas.

Chemist Warehouse is already in New Zealand, Ireland, Dubai and China, with the company recently announcing it’s entering the UK market too.

As its scale becomes larger, its profit margins can rise thanks to operating leverage.

I think it could become a significantly larger business if it gets its northern-hemisphere expansion right.

L1 Long Short Fund Ltd (ASX: LSF)

This ASX share is a listed investment company (LIC) that invests in both ASX shares and global shares to find the best opportunities.

It looks across different sectors for opportunities, though it doesn’t rely on tech for its investment strategy. It generally looks at businesses with a low price/earnings (P/E) ratio and good earnings growth potential. In other words, businesses that are undervalued.

By investing in undervalued businesses and cyclical names during a weak part in the cycle, the business can deliver great outperformance when the team is right.  

L1 Long Short Fund’s portfolio has returned an average of 16.3% per year over the past five years, which is an excellent level of performance and helps it deliver both capital growth and dividends. Past performance is not a guarantee of future returns, though.

The post 3 unstoppable ASX shares to buy with $3,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund and VanEck Morningstar Wide Moat ETF. 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 VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Guzman Y Gomez (ASX: GYG) has been making headlines after the company announced its decision to exit the US market, while lifting its Australia Segment EBITDA guidance.

As The Motley Fool’s Laura Stewart reported last week, Guzman y Gomez decided to exit the US market after its business there failed to meet key financial performance targets, despite solid work by the local team. 

According to GYG, the Board remains confident in the strength and future opportunity of its Australian business, supported by a robust pipeline of new sites.

GYG shares rocket on US withdrawal news

The market reacted positively to this decision last week, as GYG shares jumped by more than 20%. 

This marked a strong rebound after GYG shares had slumped in 2026. 

Prior to last week’s news, the share price had fallen 25% this year. 

As Kevin Gandiya reported on Sunday, investors likely saw this decision as a positive one due to the competitive US market. 

The disciplined decision may have prevented a much larger destruction of shareholder value down the track.

Brokers adjust their view on GYG shares

It’s clear from last week’s market reaction that investors saw the decision as a positive one. 

It seems brokers view it the same way. 

Following the US exit, the team at Bell Potter issued updated guidance on GYG shares. 

The broker said that although the Q3FY26 results outlined comparable sales momentum, progress in brand awareness, and operational execution, since then geopolitical events have significantly impacted consumer sentiment, likely exacerbating losses expected in the US. 

The company expects a one-off P&L impact of US$30-40m in FY26, including a cash component to be no greater than US$15m. The company has chosen to instead concentrate on its core Australian market, providing FY26 Australia segment (include Singapore and Japan) underlying EBITDA guidance of ~$85m (vs. BPe $85.7m, +29% YoY growth). 

They also reaffirmed 32 net new restaurant openings in Australia, with the long-term 1,000 restaurant target unchanged, supported by a near-term 108 restaurant pipeline.

Target price increases

Based on this guidance, Bell Potter has increased its price target to $24.50 (previously $22.10). 

The broker said higher EBITDA forecasts lifted its cash flow assumptions and increased the valuation. 

We welcome the US exit as a previous overhang removed on the stock and see the switch to focusing on the core Australia opportunity as more beneficial to shareholders. We are confident in the medium term Australia opportunity, backed by a pipeline of 108 restaurants, as well as the successful master franchising operation in Singapore and Japan.

Based on last week’s closing price of $19.81, the updated price target indicates nearly 24% upside for GYG shares. 

The post What is Bell Potter’s view on GYG shares after its US exit? 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 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 Beach Energy Ltd (ASX: BPT) share price is in focus today after the company announced the sale of its 60% operated interest in VIC/L35, including the Artisan gas discovery, for $70 million in upfront cash and an estimated $140 million in future royalties.

What did Beach Energy report?

• Sold 60% operated interest in VIC/L35 (Artisan gas discovery) for $70 million upfront
• Production royalty of $3.75/GJ nominal, equating to about $140 million over the life of the field
• Total implied transaction value of approximately $130 million after tax (~$3.50/GJ 2C Contingent Resources)
• Over $500 million in capital released for redeployment into higher-return opportunities
• La Bella 2 development well will not proceed

What else do investors need to know?

The transaction with Amplitude Energy and O.G. Otway enables Beach Energy to monetise the Artisan discovery, while keeping future economic exposure through royalty payments. Completion of the deal is expected in the first quarter of FY27, pending regulatory approval.

Importantly for shareholders, not proceeding with the La Bella 2 drilling frees up more than $500 million in capital that can now be directed to opportunities offering higher returns and lower development costs. Beach retains optionality for further developments in the Otway Basin, including nearshore backfill and offshore prospects, and may consider third-party gas tolling.

What did Beach Energy management say?

Beach Managing Director and CEO Brett Woods said:

This transaction demonstrates Beach’s capital discipline, monetising Artisan while preserving exposure to future development through the production royalty. It is also a positive outcome for Otway participants and domestic customers, with the gas still expected to be developed into the East Coast market through the Athena Gas Plant. Importantly, the optimisation of our Otway Basin portfolio unlocks more than $500 million of capital previously planned for FY26 to FY29 and enables us to redeploy that capital into opportunities with stronger returns and lower development cost. We continue to see compelling Otway backfill options through low-cost nearshore prospects and longer-dated offshore opportunities of scale, supporting our strategy to be a low-cost, high-margin producer.

What’s next for Beach Energy?

Beach Energy expects to complete the transaction in Q1 FY27, assuming required approvals are met. The company plans to redeploy released capital into growth prospects that offer higher returns and aim to bolster its position as a low-cost, high-margin gas producer.

Looking forward, Beach Energy remains focused on optimising its asset portfolio through strategic development and continues to evaluate Otway Basin opportunities, including low-cost nearshore projects and potential third-party partnerships.

Beach Energy share price snapshot

Over the past 12 month, Beach Energy shares have declined 14%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Beach Energy sells Otway Basin stake, redeploys $500 million capital 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.

Today, the direction of the US dollar is arguably the single most important macro variable for Australian resource investors, and the news could not be better.

The US dollar index has fallen more than 6% since January 2026, reflecting growing concerns about US fiscal sustainability, trade policy uncertainty, and the Federal Reserve’s cautious approach to interest rate normalisation.

For BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Ltd (ASX: FMG), a weaker US dollar is a powerful earnings tailwind, and it is blowing firmly in their favour right now.

Why the US dollar matters so much

The mechanism is straightforward but powerful.

Global commodities including iron ore, copper, and aluminium are priced in US dollars on international markets.

When the US dollar weakens, those commodities become cheaper for buyers using other currencies, which tends to stimulate demand and push prices higher.

The US dollar index has fallen more than 8% since January 2026, reaching its lowest level since 2022, as concerns about US fiscal sustainability and trade policy uncertainty have accelerated the decline.

The impact on commodity prices has been immediate and significant.

Copper has risen to trade above US$13,000 per tonne on the London Metal Exchange, a level not seen in recent history.

Iron ore has recovered above US$100 per tonne, supported by fresh buying from Chinese steel mills amid depleting steel inventories.

While a weaker US dollar also tends to strengthen the Australian dollar, partially offsetting the AUD earnings benefit for local miners, the net effect has historically been positive when commodity demand remains robust.

Current demand conditions across copper, iron ore, and lithium are among the strongest in years.

BHP

BHP is arguably the best-positioned of the three to benefit from the current environment, given its growing exposure to copper, the commodity most directly tied to the electrification and AI infrastructure megatrends driving demand.

The weaker US dollar has amplified the price gains in copper that were already being driven by structural demand from AI data centres, EV production, and grid infrastructure.

BHP reported a 31% increase in its average realised copper price to US$5.47 per pound in its March quarter update, a direct reflection of both the commodity price rally and the currency tailwind.

UBS recently reiterated a hold rating on BHP with a price target of $52, noting the company’s fundamental quality while acknowledging near-term iron ore price headwinds.

Rio Tinto

Rio Tinto benefits from the weak US dollar through its diversified commodity exposure spanning iron ore, copper, aluminium, and lithium, all of which are priced in US dollars on global markets.

The company’s share price has risen as the combination of a weaker dollar, Chinese stimulus expectations, and rising copper prices drove a broad-based re-rating of the diversified mining sector.

Furthermore, Rio’s $6.7 billion acquisition of Arcadium Lithium, completed in early 2026, adds a further USD-priced commodity to its portfolio at precisely the moment the lithium price is recovering.

Lithium prices have risen enormously year to date in 2026, and with the majority of that revenue denominated in US dollars, a weaker greenback amplifies the AUD earnings contribution from Rio’s rapidly growing lithium business.

Rio maintains a 60% payout ratio dividend policy, meaning higher earnings from commodity tailwinds flow through directly and predictably to shareholder distributions.

Fortescue

Fortescue offers the most leveraged and concentrated play on the weak US dollar theme among the three, given its near-total dependence on iron ore revenues.

Iron ore remains priced in US dollars, and every one dollar decline in the US dollar index tends to support higher iron ore prices as Chinese steel mills, who buy in yuan, face lower effective costs.

Fortescue shares have risen in the past year, reflecting both the iron ore price recovery and growing investor appreciation for its green energy ambitions under the Fortescue Energy division.

The company maintains a dividend payout policy of 50% to 80% of net profit after tax, with dividends paid fully franked twice per year.

This means that the current commodity and currency tailwinds should flow through to shareholder distributions when Fortescue reports its full-year results in August 2026.

For income-focused investors, that combination of a recovering iron ore price and a weaker US dollar amplifying AUD earnings is an attractive backdrop.

Foolish Takeaway

A weaker US dollar is not a guaranteed tailwind for Australian miners.

If it is accompanied by slowing global growth or Chinese demand weakness, the commodity price benefit can be offset quickly.

However, in the current environment, where structural demand from AI infrastructure and electrification underpins copper, where lithium is recovering, and where iron ore supply constraints remain intact, the weak US dollar looks more like a meaningful earnings amplifier than a warning sign.

For long-term investors in BHP, Rio, and Fortescue, the currency backdrop in 2026 is about as favourable as it gets.

The post Why a weak US dollar could be the best thing that happens to ASX resource stocks in 2026 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Guzman Y Gomez Ltd (ASX: GYG) shares jumped significantly on Friday after the company announced it was shuttering its US operations, but at least one broker thinks there’s still more value to be had.

Prescient analysis

RBC Capital Markets issued a research note to its clients on Thursday – a day before the GYG announcement – which actually considered what would happen if the company decided to exit the US.

The market reaction to GYG’s announcement indicates that RBC’s theory was on the money.

RBC said in a follow up note on Friday:

On the US exit, we published a US exit scenario yesterday (relating to FY28) where we highlighted +15% upside potential to FY28 NPAT. The potential impact to FY27 from the exit on an underlying basis (ignoring exit costs) on our base case assumptions could be a +20% increase to FY27E NPAT, and could raise our NPAT CAGR FY25 – FY30 from 45.4% to 47.7%. We view the exit as a positive.

RBC said they believed the US business had “very low” prospects of success, “and the losses of the business were weighing down the earnings of the group so the sooner exit than anticipated is positive”.

Astoundingly RBC did not believe the US operations would break even until FY37.

Long growth runway

On a brighter note, they believe the Australian operations have plenty of upside, while they are sceptical about the company’s goal of 1,000 restaurants over time.

They said in their original research note:

Our data science team (RBC Elements) performed a proprietary white space analysis to identify a potential 1,339 additional restaurants in Australia today. We apply sector knowledge and stricter cutoffs to population density, and see a ~550-650 additional restaurant opportunity, which should grow alongside population growth over time. We still do not believe prospectus forecasts for AU restaurants (1,000+) will be achieved by 2045, however consensus (VA: 969) now sits below this target and discounted cash flows are less sensitive to outer-year store count forecasts.

GYG also said on Friday that its operations in Singapore and Japan were performing well.

The company said:

In Singapore and Japan, our master franchise partners continue to deliver strong sales growth and healthy unit economics. Both markets are planning new restaurant openings in the next 12 months, with Singapore opening its 24th restaurant earlier this week. 

RBC said while there were no detailed numbers on these operations, the sentiment was positive.

RBC has a price target of $22 on GYG shares, which delivers some slight upside to the company’s current share price of $19.81.

The post How much higher could Guzman Y Gomez shares go? appeared first on The Motley Fool Australia.

More reading

• What is Bell Potter’s view on GYG shares after its US exit?
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• Why Guzman Y Gomez leaving the US might actually be bullish
• Here are the top 10 ASX 200 shares today

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

The CSL Ltd (ASX: CSL) share price has suffered heavily within the last two years. As the below chart shows, the ASX biotech share giant has now dropped by around two-thirds since August 2024.

It has been the worst-performing ASX blue-chip by far in that period and it just keeps falling.

The business may become oversold if it keeps declining, creating a rebound opportunity for contrarian investors.

Have we already reached that oversold level? I don’t have a crystal ball to refer to, but we can look at what analysts think of the CSL share price and whether it’s undervalued.

CSL share price target

A price target tells investors where an analyst thinks the share price will be in 12 months after the investment rating. Of course, price targets are just analyst estimates, not guarantees of where they think the ASX biotech share will be in a year from now.

According to CMC Invest, of 11 recent expert ratings on the business, four of them are buy ratings and seven of them are hold ratings, with no sell ratings.

The average price target of those 11 analysts is $140.84 – that suggests a possible rise of 41% over the next year, which I’m sure would be a market-beating return if that came true.

The most optimistic price target is $194.90, implying a possible doubling from where it is over the next year.

However, the lowest price target for the business is $99.95. That price target implies the business may be trading at the same valuation as it is now in a year.

Let’s quickly remind ourselves what the latest update was from the business.

More disappointing news

Earlier in May, the business changed its guidance for FY26 revenue to be around $15.2 billion and underlying net profit (NPATA) to be around $3.1 billion.

It outlined three areas that have had a combined impact of $650 million on revenue, including $500 million from US immunoglobulin and albumin in China.

CSL also said it expects to recognise approximately $5 billion of pre-tax impairments across FY26 and FY27, on top of what was already announced in the FY26 half-year result. Those new impairments include CSL Vifor intangible assets including the product portfolio. The impairments also include under-utilised property, plant and equipment.

In other words, despite all the bad news, the business has experienced further downgrades in confidence, which doesn’t bode well for the foreseeable future.

However, in terms of the CSL share price, the average analyst now thinks the business has been oversold. We’ll see if the market agrees, as time goes on.

There could be better ASX share opportunities out there with less uncertainty.

The post Here are the latest growth forecasts for the CSL share price appeared first on The Motley Fool Australia.

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• I’d listen to Warren Buffett and load up on cheap ASX shares
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• Here’s a 9% ASX dividend stock to consider for a monthly passive income
• 3 ASX 200 shares I’d buy before the market wakes up

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

Bell Potter has been busy running the rule over a recent update from a popular ASX stock.

The good news is that the broker was pleased with the update and has boosted its valuation to reflect this.

Which ASX stock?

The stock that has found itself in the good books with Bell Potter is IPD Group Ltd (ASX: IPG).

It is a leading Australian distributor of electrical equipment and industrial digital technologies, operating nine distribution centres and servicing over 4,200+ customers nationally.

Bell Potter notes that the ASX stock supplies products used in buildings, infrastructure, and process sectors that help to reduce energy use or reliance on the transmission network.

The broker highlights that IPD Group released a guidance update last week. It said:

FY26 underlying EBITDA is forecast to be $54.5-55.3m (BPe $55.2m; consensus $55.6m) and underlying EBIT is expected to be $46.3-47.1m (BPe $47.5m; consensus $47.5m). Growth at the midpoint of these ranges is 18% and 19%, respectively. Excluding earnings contribution from the recently acquired Platinum Cables business (completed 31 December 2025), underlying EBITDA and EBIT is estimated to be within the range of $50.5-51.3m and $42.7-43.5m, respectively, representing 10% growth at the midpoint for both metrics.

One key driver of growth has been its work in the data centre market. Bell Potter adds:

Data Centre revenue growth continues to trend strongly in 2H FY26, up 25% on the PcP (BPe 20%). Meanwhile, Group revenue is anticipated to expand in FY26 (BPe 16% with Platinum Cables and 10% organic; vs 9% growth in 1H FY26). Strong growth is noted across the core IPD business and Ex Engineering, as well as a record result from CMI, with sales to exceed pre-IPD acquisition levels.

The good news is that the data centre market remains strong and further strong growth is expected in FY 2027. It adds:

R3M Commercial construction building approval values have maintained a strong double digit YoY growth trend since Oct’25, with Mar’26 building approval values growing 18% YoY. Our proxy for Data Centre building approval values is demonstrating a significant step-up since Nov’25; the R3M hit a record in Feb’26, expanding 263% YoY. In Mar’26, values were up 121% YoY.

Should you invest?

In response to the update, Bell Potter has retained its buy rating on the ASX stock with an improved price target of $6.20 (from $5.30).

Based on its current share price of $5.32, this implies potential upside of 16.5% for investors over the next 12 months.

It also expects a 2.7% dividend yield over the period, boosting the total potential return beyond 19%.

Commenting on its buy recommendation, Bell Potter said:

We have applied a lower ERP in our WACC given heightened sentiment for companies leveraged to data centre and electrification investment thematics. We see IPG as a key beneficiary to rising investments levels in the data centre sector.

The post Bell Potter just upgraded its valuation of this ASX stock appeared first on The Motley Fool Australia.

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

Australia set an ambitious target: build 1.2 million new homes by July 2029.

But the latest forecasts from Master Builders Australia reveal the country is drifting further from that goal, not closer.

The most recent industry forecasts show the expected shortfall has now grown to 180,200 homes, up from a 160,000 gap projected just months earlier.

In 2024-25 alone, 180,500 homes were started, almost 60,000 short of the Accord’s annual target of 240,000.

Chief Economist Shane Garrett put it plainly:

Australians are crying out for more housing, but demand is being left unrealised. Projects are stalled by rising costs, low productivity and long build times. Without rapid reform, the activity needed to deliver 1.2 million homes will not materialise.

For investors, that shortfall may be a tailwind for ASX-listed companies that develop, build, and supply the Australian housing market.

Here’s 3 ASX shares that could benefit.

James Hardie Industries plc (ASX: JHX)

James Hardie Industries is the world’s leading producer of fibre cement building products and supplies a significant portion of the cladding, siding, and external building materials used in Australian residential construction.

The company has had a difficult year, with shares down sharply after organic net sales declined 2% for FY2026 as North American housing demand remained subdued and channel inventory normalisation weighed on volumes.

However, the FY2026 full-year result also contained reasons for optimism.

James Hardie reported net sales of US$4.84 billion for FY2026, up 25% year-on-year, supported by the contribution from the transformative AZEK acquisition, which added a Deck, Rail and Accessories division generating US$795.2 million in revenue and US$224.8 million in EBITDA.

Adjusted EBITDA for the full year reached US$1.27 billion, exceeding internal guidance, and management is targeting 4% to 8% pro forma adjusted EBITDA growth in FY2027.

As Australia’s housing construction target creates years of sustained demand for new building materials, James Hardie’s fibre cement products and its growing Deck, Rail and Accessories portfolio position it well to benefit from any recovery in residential construction volumes.

Stockland Corporation Ltd (ASX: SGP)

Stockland is one of Australia’s largest residential land and housing developers.

The stock is arguably the most direct ASX play on the government’s housing construction agenda.

The company operates one of the largest masterplanned community portfolios in the country, with developments in growth corridors across Sydney, Melbourne, Brisbane, and Perth that are specifically designed to deliver the affordable, family-oriented housing that the government’s 1.2 million home target prioritises.

In Q3 FY2026, Stockland reported a 43% year-on-year lift in Masterplanned Communities sales and a 162% surge in Land Lease Community sales, underscoring the extraordinary demand the business is currently capturing.

The company is targeting 7,500 to 8,500 lot settlements in Masterplanned Communities and 700 to 800 homes in Land Lease Communities in FY2026, each with operating margins in the low 20% range.

Stockland is maintaining FY2026 guidance of 36.0 to 37.0 cents funds from operations per security and a distribution of 25.2 cents.

Furthermore, the company has partnered with EdgeConneX to develop data centres on its industrial land, adding a high-value new use case for its extensive land bank that complements its residential development pipeline.

In addition, the federal budget’s negative gearing exemption for new builds creates a direct demand catalyst for Stockland’s masterplanned community product.

This is because investors seeking tax-effective property exposure will increasingly favour newly built homes over established properties.

Mirvac Group (ASX: MGR)

Mirvac rounds out the trio as a diversified property developer with a growing residential pipeline and Australia’s most advanced build-to-rent platform.

The company stands to benefit from both the structural housing shortage and the federal budget’s new-build exemption to negative gearing changes.

These two together create a powerful demand tailwind for developers of new residential product.

In the first half of FY2026, Mirvac posted a 38% year-on-year lift in residential sales, with settlements up 22% and gross margins recovering from recent lows.

The company restocked its development pipeline with approximately 2,300 new lots during the half, ensuring it has the land supply to meet expected demand growth over the next three to five years.

Foolish takeaway

Australia’s housing shortfall is not a short-term problem.

The combination of population growth, a structural undersupply of new dwellings, and a government policy environment that now actively incentivises new construction creates a multi-year tailwind for ASX-listed housing developers and building materials companies.

James Hardie, Stockland, and Mirvac each offer different risk and return profiles within the same theme.

Together they represent three ways to position a portfolio for what could be one of the most enduring investment tailwinds on the ASX over the rest of this decade.

The post Australia is 180,000 homes short of its 2029 target. Here’s 3 ASX shares that could benefit 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 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.