Author: openjargon

Mineral Resources Ltd (ASX: MIN), A2 Milk Co Ltd (ASX: A2M), and Pro Medicus Ltd (ASX: PME) shares are turning heads today.

As we head into the Thursday lunch hour, two of the ASX 200 heavyweights are charging ahead of the 0.2% losses posted by the S&P/ASX 200 Index (ASX: XJO) at this time, while one is trailing that performance.

Here’s what’s grabbing ASX investor interest on Thursday.

Pro Medicus shares leap on AI news

Pro Medicus shares are up 2.5% at the time of writing, swapping hands for $183.40 each.

This outperformance follows an announcement from the ASX 200 health imaging company on how it is expanding its AI-driven cardiology solutions.

In the latest move, Pro Medicus has signed binding heads of agreement with AI and medical technology company Echo IQ Ltd (ASX: EIQ).

The deal would see Pro Medicus take an initial $10 million stake in Echo IQ. A further $10 million investment is contingent on Echo securing US FDA approval for its EchoSolv HF product.

Commenting on the deal that’s helping boost Pro Medicus shares today, CEO Sam Hupert said:

In addition to providing financial backing, we are looking to offer our Visage 7 Cardiology customers the option of Echo IQ’s technology.

This is in line with our AI strategy of offering a curated suite of algorithms that will be a mixture of algorithms created by us, those created in conjunction with our clinical partners and third party algorithms such as Echo-IQ.

A2 Milk shares surge on NZ$300 million special dividend

A2 Milk shares are also catching investor attention today, and outperforming, after the board declared a NZ$300 million fully-franked special dividend.

The welcome passive income boost follows the recent Chinese approval to transition product registrations to A2 Milk-branded infant formula.

And it sees shares in the infant formula company up 4.1% today, trading for $7.13 each.

Breaking that NZ$300 million dividend payout down, it equates to 41.36 New Zealand cents per share (33.90 Aussie cents at current exchange rates).

If you want to bag the special A2 Milk dividend, you’ll need to own shares by market close on 7 July. A2 Milk shares trade ex-dividend on 8 July.

Commenting on the special dividend payout boosting A2 Milk shares today, chair Pip Greenwood, said:

With the necessary China regulatory approvals now in place, the board is pleased to declare a $300 million special dividend. This reflects our commitment to delivering shareholder returns while maintaining disciplined capital management.

Which brings us to…

Mineral Resources shares sink on mine closure

Joining A2 Milk and Pro Medicus shares in grabbing headlines today is lithium miner and diversified resources producer Mineral Resources.

However, Mineral Resources shares are underperforming today, down 2.9% at $63.93 apiece.

This comes amid news that the ASX 200 mining stock is placing its Western Australia-based Lucky Bay Garnet Project into care and maintenance at the end of the month.

Mineral Resource noted:

The mine’s financial performance has been materially impacted by ongoing conflict in the Middle East, a region representing a significant proportion of Lucky Bay’s sales.

Combined with materially higher diesel and shipping costs, a strategic review of Lucky Bay has determined it is in the best interests of the company and its shareholders to cease operations and transition the project into care and maintenance, effective 1 July 2026.

The post Why is everyone talking about Mineral Resources, A2 Milk and Pro Medicus shares on Thursday? appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, EchoIQ, Lendlease, and Qantas shares are racing higher today
• Up 218% in a year, Mineral Resources shares sinking today amid mine closure news
• A deal with Pro Medicus has turned this ASX biotech into a 10-bagger, up more than 30% today
• A2 Milk shares jump amid $300 million special dividend
• Pro Medicus shares jump again as AI deal adds fuel to 40% rally

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 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.

Worley Ltd (ASX: WOR) shares are tumbling on Thursday after the engineering services group released a disappointing update.

At the time of writing, the Worley share price is down a sizeable 9.13% to $11.15. By comparison, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.38% to 8,775 points.

That leaves the ASX industrial stock down around 11% over the past month and 15% lower than this time last year.

The latest update clearly hasn’t landed well with investors, with the company pointing to a larger-than-expected hit to FY26 earnings.

Let’s take a closer look at what was announced.

Worley warns on earnings

According to the release, Worley now expects the adverse impact on FY26 underlying EBITA to be up to $60 million.

Back in April, the company thought the impact would be closer to $30 million to $40 million.

Worley said the extended duration and ongoing impact of the Middle East conflict continue to disrupt the progress of existing projects.

No projects have been cancelled, which is at least some good news. But customers are still pushing back the start of new work and delaying project awards.

Worley noted that recent developments in the region have been positive, including talks around ending the conflict and reopening the Strait of Hormuz.

However, the uncertainty around contract timing still appears to be making investors nervous today.

Currency adds another headwind

In addition to the disappointing update, Worley said the stronger Australian dollar in the second half of FY26 is expected to create another headwind.

Management estimates this will have an impact of about $50 million on FY26 reported underlying EBITA.

That adds another challenge at a time when the company is already dealing with project delays in the Middle East.

For context, Worley reported FY25 underlying EBITA of $823 million.

Full-year result now in focus

The next big test will be Worley’s full-year result on 26 August.

Even after today’s fall, Worley still has a market capitalisation of around $5.9 billion.

That’s not a small business, but the latest update has clearly taken the shine off it.

The result should give the market a better look at how much work has simply been pushed back, and whether margins are being squeezed as well.

Investors will also be watching for any signs that customer activity is starting to improve in the affected regions.

Until then, the stock could remain under close watch. I’d be inclined to sit on the sidelines for now.

The post Worley shares crash 9% as Middle East earnings hit gets worse appeared first on The Motley Fool Australia.

More reading

• Worley flags FY26 earnings hit from Middle East delays and currency impact
• Bell Potter names the best ASX 200 shares to buy in June

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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. At the time of writing, the benchmark index is down 0.35% to 8,776.8 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 4% to $7.12. This follows news that the infant formula company is rewarding shareholders with a NZ$300 million special dividend. The company estimates this will equate to 41.36 New Zealand cents per share (33.9 Australian cents per share). Based on its last close price of $6.85, this represented a dividend yield of just under 5%. A2 Milk’s chair, Pip Greenwood, said: “With the necessary China regulatory approvals now in place, the Board is pleased to declare a $300 million special dividend. This reflects our commitment to delivering shareholder returns while maintaining disciplined capital management.”

EchoIQ Ltd (ASX: EIQ)

The EchoIQ share price is up 33% to $1.65. Investors have been bidding the medical technology company’s shares higher after Pro Medicus Ltd (ASX: PME) made an investment. Pro Medicus’ CEO, Dr Sam Hupert, said: “In addition to providing financial backing, we are looking to offer our Visage 7 Cardiology customers the option of Echo IQ’s technology. This is in line with our AI strategy of offering a curated suite of algorithms that will be a mixture of algorithms created by us, those created in conjunction with our clinical partners and 3rd party algorithms such as Echo-IQ.”

Lendlease Group (ASX: LLC)

The Lendlease share price is up 5% to $3.06. This has been driven by the announcement of a major divestment. Lendlease will divest its remaining 25.1% interest in the Keyton Retirement Living Trust to existing co-investor, Aware Super, for a consideration of $525 million. It advised that net proceeds will be used to reduce group debt. Management notes that this transaction brings the total of announced and completed capital recycling initiatives from the Capital Release Unit (CRU) to $3.4 billion.

Qantas Airways Ltd (ASX: QAN)

The Qantas Airways share price is up 4% to $10.73. This may have been driven by a pullback in oil prices overnight. As fuel is the airline operator’s largest cost, any reduction in oil prices is good news for margins. Qantas shares are now up almost 20% over the past two weeks.

The post Why A2 Milk, EchoIQ, Lendlease, and Qantas shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about Mineral Resources, A2 Milk and Pro Medicus shares on Thursday?
• A deal with Pro Medicus has turned this ASX biotech into a 10-bagger, up more than 30% today
• Lendlease offloads Keyton stake in $525m deal
• A2 Milk shares jump amid $300 million special dividend
• Pro Medicus shares jump again as AI deal adds fuel to 40% rally

Motley Fool contributor James Mickleboro 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.

DroneShield Ltd (ASX: DRO) shares are falling again in Thursday’s trade. 

At the time of writing, the counter-drone technology company’s shares are down around 1% and trading at $2.52 each.

Today’s decrease is just one of many in a long line of consecutive share price falls. 

DroneShield shares are down 24% year to date and 62% from an all-time high recorded in October last year.

What has happened to the share price?

There has been a significant shift in sentiment around DroneShield shares recently.

After a strong start to the year, when governments around the world hiked their defence budgets, and geopolitical volatility worsened, investors seem to have turned their backs on the stock.

There is now some concern that the company’s future growth may not be large enough to justify its share price. 

Even a flurry of contract wins hasn’t been enough to convince investors. 

At the same time, a combination of recent governance and regulatory issues and the cooling of conflict in the Middle East has dragged DroneShield’s shares down further.

The stock climbed higher during the first week of May, but then turned again after the company announced that the Australian Securities and Investments Commission (ASIC) had requested DroneShield to provide reasonable assistance in connection with an investigation under the Corporations Act. The investigation relates to market announcements and share trading in November 2025. 

All this has happened amid a background of signs of easing conflict in the Middle East. While heightened conflict can increase interest in defence technology, particularly counter-drone systems, signs of easing will do the opposite.

So, is it time to buy in the dip or has the market now lost interest in DroneShield shares? 

Here’s what the experts think.

Is it time to invest in DroneShield shares? Or should I look elsewhere?

If analyst forecasts are anything to go by, I wouldn’t jump at buying $5,000 of DroneShield shares just yet.

TradingView data shows that analysts are sharply divided in their outlook for the counter-drone technology stock over the next 12 months, though they mostly agree there will be some upside ahead.

Out of four analysts, two have a strong buy rating, and two have a sell or strong sell rating.

The average $3.41 target price still implies a potential 35% upside at the time of writing. The maximum $4.80 target price implies that DroneShield shares could jump another 91%, while some are even more bearish, tipping the shares to fall around 9% to $2.28.

Canaccord Genuity is one analyst with a more bullish view on the shares. It renewed its buy rating on Droneshield shares earlier this month, with a 12-month price target of $3.75.

The post Should I invest $5,000 in DroneShield shares before the end of June? appeared first on The Motley Fool Australia.

More reading

• Own DroneShield shares? Here’s some news you might have missed
• DroneShield shares lifting off on Monday amid big leadership news
• Here are the 10 most shorted ASX shares
• 8 ASX shares with 30% to 220% upside ahead: Experts
• Own DroneShield shares? Here’s some big news

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 DroneShield. 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.

Industrial conglomerate Tasmea Ltd (ASX: TEA) is forecasting net profit to grow by 70% next financial year on the back of a record order book and the contribution from a number of acquisitions.  

Strong order book driving growth

The company said in a statement to the ASX that it expected underlying EBITA to be $202 to $208 million and underlying net profit to be $128 to $132 million.

Both figures would be a 70% uplift from the expected results for the current financial year.

The company said:

Guidance assumes a full 12 months’ contribution from the Maxim Group acquisition which is now unconditional and is expected to settle on 1 July 2026 and includes 11 months earnings from JPS Group, expected to settle on or around 1 August 2026.

Tasmea said it had consistently delivered compounding earnings growth since its initial public offer, “with a multi-year EBIT and NPAT CAGR of more than 50% from FY24 to forecast FY27″.

The company said there were a number of factors which had contributed to this, including growth in high-quality, recurring revenues “with an increasing number of master service agreements, facilities management agreements and long term contract with now more than 120 on foot following recent acquisitions and organic customer growth”.

There were also increasing synergies across the company’s portfolio, and the company said the underlying growth from the Tasmea base business was forecast to grow organically at 10% to 15%.

Tasmea also said there were:

Strong industry tailwinds across Australia’s key industries including mining and resources, data centres and infrastructure, oil and gas, electrification, power and renewables, waste and water, telecommunications, defence and retail.

The company added:

Tasmea’s contracted order book has reached record levels, providing strong forward earnings visibility and reinforcing the Company’s ability to deliver sustained organic earnings growth. Demand is underpinned by structural tailwinds across the Group’s core markets.

Of the company’s expected revenues, 62% would come from recurring revenues and another 17% from secured contracts. Another 12% was expected to come from tendered business.

Management have skin in the game

Tasmea Managing Director Stephen Young said:

We are proud to be providing FY27 earnings guidance that reflects the continued strength and momentum of our business. These results are only possible thanks to the outstanding efforts of our people across the country. I want to sincerely thank all Tasmea employees for their unwavering commitment to safety and operational excellence — the foundation of everything we do. Tasmea’s Executive Directors, Mark, Jason, Trent and I have together reinvested over $50 million in Tasmea since IPO—reflecting our continued confidence in the Company’s outlook, our strategy, and the strength of the team that’s driving it with our core purpose, to Deliver Value. Always!

Tasmea shares have more than tripled from $3.20 to $9.62 over the past 12 months.

The company is now valued at $2.52 billion.

The post This company’s shares have more than tripled. It’s now predicting 70% earnings growth appeared first on The Motley Fool Australia.

More reading

• A $75 million deal has this ASX 200 stock smashing a record high today
• 3 ASX small-cap shares to buy: Morgans
• This special dividend could deliver a windfall gain, and it’s not too late to buy in
• Tasmea share price rockets as it enters data centre race
• Could this surging ASX small cap still be hiding in plain sight?

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.

Mineral Resources Ltd (ASX: MIN) shares are sinking today.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium miner and diversified resources producer closed yesterday trading for $65.86. In late morning trade on Thursday, shares are changing hands for $64.04 apiece, down 2.8%.

For some context, the ASX 200 is down 0.5% at this same time, while the S&P/ASX 200 Resource Index (ASX: XJR) is down 1.9%.

Despite today’s retrace, the Mineral Resources share price remains up an impressive 217.5% over the last 12 months, smashing the 2.5% one-year gains posted by the benchmark index.

Now, here’s what investors are mulling over today.

Mineral Resources shares slip amid closure update

In an update this morning deemed non-price sensitive to Mineral Resources shares, the miner reported that it is preparing to mothball its Western Australia-based Lucky Bay Garnet Project at the end of June.

The ASX 200 miner acquired Lucky Bay in September 2025 following an Asset and Share Sale Agreement with the administrators of Resource Development Group.

Today, management reported that fallout from the Middle East conflict has driven up costs, leading to their decision to shutter operations.

Mineral Resources stated:

The mine’s financial performance has been materially impacted by ongoing conflict in the Middle East, a region representing a significant proportion of Lucky Bay’s sales.

Combined with materially higher diesel and shipping costs, a strategic review of Lucky Bay has determined it is in the best interests of the company and its shareholders to cease operations and transition the project into care and maintenance, effective 1 July 2026.

The closure will affect some 110 employees. The miner said they will be offered redeployment opportunities at other work sites where possible.

As for the financial impact on Mineral Resource shares, management said they will assess all future options for Lucky Bay. That includes a potential divestment of the garnet mine.

Mineral Resources expects to book a non-cash impairment on the written down value of Lucky Bay of approximately $40 million for FY 2026.

What else has been happening with the ASX 200 mining stock?

Among the tailwinds sending Mineral Resources shares soaring this past year is the rocketing lithium price.

On 18 May, this led the company to report that it was restarting operations at its Bald Hill lithium mine. The Western Australian lithium mine was placed in care and maintenance in November 2024 amid tumbling lithium prices at the time.

Commenting on the decision to restart Bald Hill, Mineral Resources managing director Chris Ellison said:

With strong and sustained demand for spodumene concentrate driving a significant recovery in prices, the time is right to restart operations at Bald Hill…

Once production resumes at Bald Hill, MinRes will be the only company globally operating three hard rock lithium mines, each with their own spodumene concentrate facilities.

The post Up 218% in a year, Mineral Resources shares sinking today amid mine closure news appeared first on The Motley Fool Australia.

More reading

• These ASX mining stocks soared 185%+, then tumbled. What now?
• Mineral Resources shares slide as CEO uncertainty weighs in
• How these 3 ASX 200 mining stocks have more than tripled investors’ money in a year
• 6 ASX 200 shares with fresh buy ratings this week
• Up 200%: Can Mineral Resources shares keep rising?

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.

I’m sure most income investors dream of finding an ASX share with a big dividend yield and even bigger upside.

Well, Bell Potter thinks it has identified one this week.

Which ASX share?

This morning, Bell Potter has initiated coverage on Cash Converters International Ltd (ASX: CCV).

It provides unsecured lending and second-hand retail services in Australia, New Zealand, the United Kingdom, and other international markets.

At the last count, it was operating through a network of 197 corporate owned stores and 459 franchised stores.

Bell Potter is feeling positive on the company’s global growth outlook and highlights its better-quality loan book as a reason to be bullish. It said:

CCV has embarked on an aggressive acquisition strategy, having bought back 120 franchises since FY21 across ANZ and the UK, with the company now controlling ~30% of the global Cash Converters branded store network. Each acquisition is accretive to the group, and we expect ~17 new store additions in the near-to-medium term (UK weighted) to add ~$5.3m in EBITDA pre-operational improvements, and a pipeline of 176 further global acquisitions identified, with management flagging Europe as the next expansion region.

The introduction of the new line-of-credit Cashies loan is progressively reshaping CCV’s loan book towards stronger credit quality customers, resulting in lower bad debt expense and improving Net Interest Margin’s (NIM), with the run-down loan book to be completed over the next 24-36 months.

Initiated with a buy rating

According to the note, the broker has initiated coverage on the ASX share with a buy rating and 34 cents price target.

Based on its current share price of 30 cents, this implies potential upside of 13% for investors over the next 12 months.

In addition, Bell Potter is forecasting fully franked dividends of 2 cents per share in FY 2026 and through to FY 2028. This equates to dividend yields of approximately 6.7%.

Commenting on its buy recommendation, the broker said:

We view CCV’s scale, global brand recognition and acquisition pipeline as competitive advantages that position its retail business to capitalise on growing demand for second-hand goods, supported by cost-of-living pressures and increasing consumer appreciation of the circular economy.

In consumer lending, we view the wind-down of legacy, lower-quality loan books as prudent, as it shifts portfolio exposure towards higher-quality borrowers with lower loss profiles and stronger margins, particularly as improved loan book quality supports a reduction in funding costs.

The post Top broker just put a buy rating on this ASX share with 6.7% yield appeared first on The Motley Fool Australia.

More reading

• Up 218% in a year, Mineral Resources shares sinking today amid mine closure news
• A deal with Pro Medicus has turned this ASX biotech into a 10-bagger, up more than 30% today
• Guess which small-cap ASX tech share could rise 60%
• Lendlease offloads Keyton stake in $525m deal
• Up 129% in a year, guess which ASX All Ords gold stock just reported a big resource increase

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 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.

Shares in Echo IQ Ltd (ASX: EIQ) shot up more than 50% to record highs in early trade after the company announced a strategic investment from and a US commercial partnership with major imaging technology company Pro Medicus Ltd (ASX: PME).

Shares hitting new highs

Echo IQ shares hit a high of $1.87, up 50.8%, before settling back to be changing hands for $1.72, up 38.7% by mid-morning. The shares have increased from lows of 16.5 cents over the past 12 months.

The company said in a statement to the ASX that Pro Medicus had agreed to invest an initial $10 million in the company through a subscription for secured convertible notes, with the right to subscribe for a further $10 million once Echo IQ had its EchoSolv HF product cleared by the US Food and Drug Administration.

EchoSolv HF is an AI-powered heart failure detection software.

Pro Medicus has also agreed to become a reseller for EchoSolv, “providing potential access to an extensive network of leading US health systems, academic medical centres and enterprise healthcare customers”.

Echo IQ said regarding the deal:

The proposed partnership represents a significant strategic milestone for Echo IQ. Beyond the proposed investment, the arrangement has the potential to provide exceptional validation for Echo IQ and access to a leading healthcare technology platform with an extensive US based customer network, supporting the Company’s strategy to accelerate adoption of its AI-powered cardiac diagnostic solutions across the US. Pro Medicus is widely regarded as one of Australia’s most successful healthcare technology companies and a global leader in enterprise medical imaging software. Through its Visage platform, Pro Medicus provides mission critical imaging solutions to many of the largest health systems, academic medical centres and integrated delivery networks throughout the US.

Access to markets a key element of the deal

Echo IQ Chief Executive Officer Dustin Haines added:

The execution of this binding Heads of Agreement with Pro Medicus represents a transformational milestone for Echo IQ and a significant validation of both our technology and long-term commercial strategy, while also providing exceptional financial flexibility to accelerate our commercialisation activities in the US. Importantly, this proposed partnership extends far beyond the investment itself. Through Pro Medicus, we have the opportunity to leverage an established healthcare platform, trusted customer relationships and a highly experienced commercial organisation with deep penetration into the US healthcare market. We believe this creates a compelling pathway to accelerate awareness, adoption and commercialisation of EchoSolv across a broad range of healthcare providers.

RBC Capital Markets said in a note to clients that the deal was also positive for Pro Medicus, as “the deal delivers both an economic interest and a product that deepens its cardiology value proposition through the embedding of an AI diagnostic capability directly onto Visage”.

Pro Medicus shares were 1.6% higher at $181.95. RBC has a price target of $195 on the shares.

The post A deal with Pro Medicus has turned this ASX biotech into a 10-bagger, up more than 30% today appeared first on The Motley Fool Australia.

More reading

• Pro Medicus shares jump again as AI deal adds fuel to 40% rally
• Pro Medicus signs Echo IQ deal to boost AI cardiology offering
• 2 ASX 200 shares I’d buy for powerful growth
• 3 buy-rated ASX tech shares with bright futures
• US chip stocks were smashed overnight. So why are ASX tech shares rising?

Motley Fool contributor Cameron England 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.

Now could be a good time to buy the small-cap ASX tech share in this article.

That’s the view of analysts at Bell Potter, who are tipping big returns from its shares for investors over the next 12 months.

Which small-cap ASX tech share?

Bell Potter is positive on WRKR Ltd (ASX: WRK). It is a regulation technology company for Australian employers across the employee lifecycle, with a core focus on managing superannuation compliance events.

While the broker has revised its estimates to reflect a slight slowdown, it remains very positive on the future. It said:

While iconic businesses are moving fast, the mid-market is seen to slow things down, extending beyond the July deadline. We revise FY27 revenue and include a cautious scenario, based on the lower end of the guidance range ($30-35m in exit rate ARR). There are a few good moving parts like: 1) $5m in float-based income, 2) $10m of different ARR attached to PaidRight (on track to do $4m), 3) another $5m opportunity tied to the small business clearing house, and 4) $2m from electronic service addresses.

However, we see fewer pathways to an immediate positive surprise, with the commercial terms between WRK and MUFG nearing renegotiation. A second look at AustralianSuper and its grassroots have resulted in changes. Our FY27 revenue is reduced from $36m to $32m from counterparty risk. At worst, we expect a three-month delay. The ATO should have a low tolerance for those showing little attempt to meet their obligations.

Big potential returns

According to the note, Bell Potter has retained its speculative buy rating on the small-cap ASX tech share with a trimmed price target of 15 cents.

Based on its current share price of 9.2 cents, this implies potential upside of 63% for investors with a high tolerance for risk over the next 12 months.

Commenting on its investment thesis, Bell Potter said:

Our Buy (Spec.) rating is unchanged. We risk up ahead of the quarterly update. While we expect strong early metrics from the platform, the outlook now reads less positive on closer look. WRK has mapped out $12m of insurance and detailed the next $10m expansion phase, which could grow into a similar sized standalone. Either this gains pace, Rest and AustralianSuper benefit in isolation, or new MUFG clients are signed.

The post Guess which small-cap ASX tech share could rise 60% appeared first on The Motley Fool Australia.

More reading

• Up 218% in a year, Mineral Resources shares sinking today amid mine closure news
• Top broker just put a buy rating on this ASX share with 6.7% yield
• A deal with Pro Medicus has turned this ASX biotech into a 10-bagger, up more than 30% today
• Lendlease offloads Keyton stake in $525m deal
• Up 129% in a year, guess which ASX All Ords gold stock just reported a big resource increase

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 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 Lendlease Group (ASX: LLC)share price is in focus today after the company announced it will sell its 25.1% interest in the Keyton Retirement Living Trust to Aware Super for $525 million, with proceeds going towards reducing group debt. This key deal is part of Lendlease’s ongoing capital recycling initiative, which now totals $3.4 billion in announced and completed transactions.

What did Lendlease report?

• Sale of 25.1% interest in Keyton Retirement Living Trust for $525 million
• Transaction proceeds to be used to pay down group debt
• Deal aligns with HY26 book value
• Brings total announced/completed capital recycling to $3.4 billion from the Capital Release Unit
• Completion subject to regulatory approvals, targeted for 1H FY27

What else do investors need to know?

The sale to Aware Super is expected to complete in the first half of FY27, once conditions precedent—including regulatory approvals—are met. Today’s news follows a series of asset sales under Lendlease’s Capital Release Unit, with more than $3.4 billion in transactions either announced or completed since May 2024.

Management says further key transactions are in the pipeline for FY26 and early FY27, reflecting the company’s focus on recycling capital and strengthening its balance sheet. Outcomes for the rest of the Capital Release Unit portfolio will depend on market conditions and transaction timing.

What’s next for Lendlease?

Lendlease continues to pursue capital recycling as a way to realise value and support future growth. Management remains focused on balancing speed and execution with maximising value from its portfolio.

With several transactions still to be completed and others underway, investors can expect ongoing updates as Lendlease streamlines its business and manages debt levels in a challenging market environment.

Lendlease share price snapshot

Over the past 12 months, Lendlease shares have declined 44%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.

View Original Announcement

The post Lendlease offloads Keyton stake in $525m deal appeared first on The Motley Fool Australia.

More reading

• Lendlease Group shares paused pending further announcement
• Corporate Travel Management updates investors on delayed FY25 results and UK remediation
• Worley flags FY26 earnings hit from Middle East delays and currency impact
• Pro Medicus signs Echo IQ deal to boost AI cardiology offering
• Ventia Services appoints new CEO in leadership succession

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.