Author: openjargon

This ASX wine stock has been smashed over the past year.

Treasury Wine Estates Ltd (ASX: TWE) shares are now worth less than half of their 52-week high of $8.63. They are down roughly 20% in 2026 and around 50% over the past 12 months.

But after climbing around 6% over the past month, investors may be wondering if the worst is finally over.

A difficult backdrop

There is no denying the last year has been painful for Treasury Wine Estates shareholders.

Back in October, the company withdrew its FY26 earnings guidance and paused its share buyback. Problems in China and the US weighed heavily on the business. The ASX wine stock also reported a large first-half loss after impairments hammered its result.

Weak consumer demand, earnings pressure, and broader challenges across the wine industry all hurt sentiment.

The dividend outlook also deteriorated quickly. In fact, the market currently expects no dividend payout in FY26. That alone could scare away many income investors.

Looking beyond short-term pain

However, it is important to look beyond the short-term pain of the ASX wine stock.

And importantly, the company’s latest operating update gave investors some much-needed positives. In the March quarter, China depletions jumped 40% on a seasonally adjusted basis. ANZ depletions increased 11%. Asia excluding China climbed 14%, while US market depletions improved 9.1%.

Those numbers matter. They suggest demand is starting to recover in several key markets after an extremely difficult period.

The US business also appears to be stabilising. China demand remains strong. At the same time, Treasury Wine Estates is rolling out operational changes designed to improve execution and efficiency.

If that momentum continues, earnings could gradually rebuild from here.

Income recovery on the horizon

And that is where the longer-term income story becomes interesting. According to CommSec consensus estimates, the market expects partially franked dividends of 15 cents per share in FY27 and 24 cents per share in FY28.

At the current price of the ASX wine stock, that implies a potential forward dividend yield of around 3.3% in FY27. That figure climbs to more than 5.3% in FY28 before factoring in franking credits.

This is not an ASX stock you buy for immediate passive income. Instead, investors are backing a recovery story. The bet is that income returns as earnings improve over time.

Capital growth ahead?

There could also be meaningful capital growth if sentiment keeps recovering.

Treasury Wine Estates still owns a premium portfolio of wine brands. Penfolds remains a major earnings driver and one of Australia’s most recognised luxury wine labels.

The ASX wine stock is also restructuring operations, which could help margins improve in the years ahead. Its balance sheet looks more stable too. Recent refinancing activity has strengthened liquidity and given the business more flexibility while it navigates softer conditions.

What next for the ASX wine stock?

According to date on TradingView six out of 17 brokers see the ASX wine stock as a buy or a strong buy. The other 11 analysts rate it a hold and the average 12-month price target is set at $5.24, which points to a 25% upside. The most bullish forecast is $7,90, suggesting a 88% upside at the time of writing.

One broker who is becoming more optimistic on the outlook, is Morgans. It believes the company’s shares are now trading on low earnings multiples, potentially creating an attractive entry point for patient investors.

The team at Morgans recently upgraded Treasury Wine Estates shares to an add rating with a $5.30 price target.

The post Why investors may regret ignoring this ASX wine stock today appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Buy, hold, sell: GrainCorp, Treasury Wine, and Xero shares
• Brokers name 3 ASX shares to buy right now
• Billionaire buying sends this ASX 200 stock higher
• 5 ASX shares with upgraded ratings this week

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

Who couldn’t use $20,000 in passive income a year?

For some investors, that could help smash down the mortgage faster. For others, it might fund Europe trips, long Friday lunches, or provide a means to escape the 9-to-5 grind earlier.

And while generating $20,000 a year in passive income sounds ambitious, it breaks down to roughly $485 a week.

The real question is: how do you actually build an investment portfolio capable of producing that kind of reliable income?

Here is one simple long-term approach.

Start with the target

If a portfolio delivers an average dividend yield of 5%, generating $20,000 annually would require approximately $400,000 invested.

That number can feel intimidating at first glance.

But the important thing is remembering that passive income portfolios are rarely built overnight. They are built steadily through years of investing, compounding, and reinvesting returns.

The first stage is not about income at all. It is about building capital.

Focus on growth first

One of the biggest mistakes investors make early on with building passive income is chasing high dividend yields too soon. In many cases, growth can be far more powerful than income during the wealth-building phase.

Companies capable of reinvesting profits at high rates of return can compound shareholder wealth much faster than mature income stocks. For example, businesses like Xero Ltd (ASX: XRO) and Pro Medicus Ltd (ASX: PME) may not offer massive dividend yields today, but both have delivered exceptional long-term capital growth.

Broad market ETFs can also play a major role here. Funds such as Vanguard Australian Shares Index ETF (ASX: VAS) and iShares S&P 500 ETF (ASX: IVV) provide diversification while still giving investors exposure to long-term market growth.

At this stage, the goal is simple: grow the portfolio as large as possible.

Let compounding do the heavy lifting

Time is one of the most powerful investing tools available.

If an investor contributed $1,200 per month and achieved an average annual return of 10% over the long term — not guaranteed, but historically achievable — the portfolio could grow surprisingly quickly.

After 10 years, the portfolio would be worth around $250,000. After 15 years, it could approach $500,000.

Importantly, total contributions over 15 years would only amount to about $216,000, with the remainder coming from investment growth and compounding returns.

That is where the real snowball effect begins.

Transition toward income

Once the portfolio approaches the target size, investors can gradually shift toward more income-focused assets.

That could include dividend shares such as APA Group (ASX: APA), Transurban Group (ASX: TCL), or Telstra Group Ltd (ASX: TLS). Income-focused ETFs such as Vanguard Australian Shares High Yield ETF (ASX: VHY) may also help diversify the income stream.

At an average portfolio yield of 5%, a $400,000 portfolio could generate approximately $20,000 annually in passive income.

And if dividends continue growing over time, that income stream could become even larger.

Foolish takeaway

Passive income is rarely created in one giant leap. It is usually built in stages: first by growing capital, then by converting that capital into reliable income-producing assets.

It takes patience, consistency, and time, but for long-term ASX investors, the rewards can be substantial.

The post How to generate $20,000 a year in passive income on the ASX appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Brazilian Rare Earths, Pro Medicus, Service Stream, and Woodside shares are charging higher
• Pro Medicus shares jump as massive US contract win turns heads
• How much could the Pro Medicus share price rise in the next year?
• 3 Vanguard ETFs for Australian investors to build wealth by 2036

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 positions in and has recommended Transurban Group, Xero, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, Transurban Group, and Xero. The Motley Fool Australia has recommended Pro Medicus, Vanguard Australian Shares High Yield 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.

It has been a volatile year for the S&P/ASX 200 Index (ASX: XJO). Australia’s benchmark index has lagged behind global markets as inflation, interest rates and global conflict have weighed on sentiment. 

After another fall yesterday, the ASX 200 is down roughly 2.5% year to date. 

When the market here on home soil lags, it reinforces the importance of diversification to overseas equities. 

One option investors can target is emerging markets. 

What are emerging markets?

Emerging markets are economies that are in the process of rapid industrialisation, urbanisation, and economic development, but are not yet considered fully developed markets.

Common examples typically include countries such as India, Brazil, Indonesia, and Vietnam, which often offer higher long-term growth potential than developed economies like Australia or the United States. 

Emerging markets can provide diversification and strong returns driven by expanding middle classes and infrastructure investment. However they also carry higher risks, including political instability, currency fluctuations, weaker regulatory systems, and greater market volatility.

In 2026, several emerging markets ASX ETFs have raced ahead of the Australian market. 

iShares MSCI Emerging Markets ETF (ASX: IEM)

This ASX ETF aims to provide investors with the performance of the MSCI Emerging Markets Index, before fees and expenses. The index is designed to measure the equity market performance in global emerging markets.

It has a large weighting towards companies in the tech, financials and consumer discretionary sectors. 

By country, its largest exposure is to Taiwan (24%), China (23%) and South Korea (18%). 

In 2026, this ASX ETF has vastly outperformed the ASX 200, rising 9%. 

VanEck MSCI Multifactor Emerging Markets Equity ETF (ASX: EMKT)

This ASX ETF provides a diversified portfolio of large and mid-cap stocks from emerging markets countries.

At the time of writing, it includes roughly 220 underlying holdings. 

Its largest exposure is to companies based in South Korea (26%), China (25%) and Taiwan Region (23%). 

Approximately one third of the fund is made up of technology shares. 

It has risen an impressive 16% so far this year and 33% over the last 12 months. 

Betashares MSCI Emerging Markets Complex ETF (ASX: BEMG)

Another emerging markets fund that has performed strongly in 2026 is this relatively new fund from Betashares. 

It aims to track the performance of the MSCI Emerging Markets Net Total Return Index. 

It provides exposure to more than 1,000 stocks across more than 20 emerging countries in fast-growing regions including Asia, Latin America, Eastern Europe and Africa. 

The fund has risen almost 12% year to date. 

The post These emerging markets ASX ETFs are racing ahead of the ASX in 2026 appeared first on The Motley Fool Australia.

More reading

• 3 ASX ETFs to invest $3,000 into in April and May

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.

It was a horror start to the trading week for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares.

After ending what was a pretty sad week on a sour note last Friday, investors seemed to come back from the weekend with even colder feet. After opening with a significant drop, the ASX 200 ended the trading day with a nasty 1.45% fall. That leaves the index at just 8,505.3 points.

This horrid start to the Australian trading week follows a similarly pessimistic end to the American week on Friday night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) was in a bit of a panic, finishing down 1.07%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared even worse, dropping 1.54%.

But let’s get back to this week and the local markets now, with a deeper dive into what was happening amongst the various ASX sectors today.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why the ASX 200 is sinking to a 7-week low today
• Why Brazilian Rare Earths, Pro Medicus, Service Stream, and Woodside shares are charging higher
• Why are Santos shares jumping higher today?
• Why is everyone talking about Elders, Brambles and New Hope shares on Monday?
• This ASX 200 coal stock is charging higher after a big profit jump

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd and 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.

Knowing which ASX shares to avoid can be just as important as knowing which ones to buy when you are aiming to maximise portfolio returns.

So, with that in mind, let’s see which shares analysts are tipping as sells this week, courtesy of The Bull.

Here’s what they are bearish on:

A2 Milk Company Ltd (ASX: A2M)

The team at Dolphin Partners Financial Services has named this infant formula company’s shares as a sell this week.

The financial services firm highlights that A2 Milk has a tough outlook following weakness in China and a product recall in the United States. As a result, it sees better opportunities elsewhere in the market. It said:

This infant milk formula company recently initiated a voluntary recall of three small batches of product sold in the United States. The company announced the recall was isolated to the US label product. The shares have remained under pressure since April when the company downgraded guidance in full year 2026.

It expects lower infant milk formula sales, mostly related to Chinese labels. The EBITDA percentage margin is forecast to decline from previous guidance of between 15.5 per cent to 16 per cent to between 14 per cent to 14.5 per cent. Other stocks offer more appealing outlooks. The shares have fallen from $9.24 on April 10 to trade at $6.45 on May 13.

Endeavour Group Ltd (ASX: EDV)

Dolphin Partners Financial Services has also named this drinks giant’s shares as a sell this week.

It highlights that the Dan Murphy’s owner is operating in a challenging economic environment and facing increased competition.

In light of this, the financial services firm thinks investors should focus on other ASX shares. It explains:

Endeavour operates liquor outlets, hotels and gaming facilities. While Endeavour is a leader in the liquor retailing space, the business is operating in a challenging economic environment involving fierce competition, continuing margin pressure and macroeconomic shocks. Many analysts have cut forecasts to reflect softer trends.

Increasing fuel costs in response to the Middle East conflict is imposing pricing pressure throughout its supply chain. Increasing cost of living pressures is another challenge. The shares have fallen from $4.04 on March 2 to trade at $3.23 on May 13. Other stocks appeal more in this economic climate of higher interest rates and cash strapped consumers.

Temple & Webster Group Ltd (ASX: TPW)

Over at DP Wealth Advisory, it has named this online furniture retailer’s shares as a sell this week.

It thinks that the higher oil prices and interest rates are likely to weigh on discretionary spending. It said:

TPW is an online furniture and homewares retailer. The share price remains under significant pressure in response to weaker discretionary spending from the oil price shock and rising interest rates in Australia. The stock has also been subjected to short selling by investors betting the shares will fall. Our recommendation is based on a weaker macroeconomic outlook.

At this point, we can’t see any clear and meaningful differentiation between TPW and bricks and mortar retailers or online competitors operating in the same or similar sectors.

The post Why experts are selling these 3 ASX shares this week appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Brambles, Elders, and Tuas shares are sinking today
• 3 ASX shares down over 60% that could be bargain buys
• Synlait Milk CEO resigns – the latest in a line of executive departures
• 9 ASX 200 shares with renewed buy calls from the experts this week
• These ASX retail stocks are near 52-week lows, are they bargain buys?

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

If you are on the lookout for some new portfolio additions, then it could be worth hearing what analysts at Morgans are saying about the ASX shares named below, courtesy of The Bull.

Are they bullish, bearish, or something in between? Let’s find out.

ResMed Inc. (ASX: RMD)

Morgans has given its verdict on this sleep treatment company this week.

The broker has concerns that the ASX share could be negatively impacted by cost pressure arising from the conflict in the Middle East.

As a result, it has put a hold rating on ResMed shares. It said:

This global company develops, makes, distributes and markets medical devices for diagnosing, treating and managing respiratory conditions, including sleep disordered breathing. RMD management recently flagged emerging cost pressures from Middle East tensions. It was a response to higher fuel prices and early signs of component inflation.

However, RMD’s fundamentals remain sound, with consistent execution, strong cash generation and structural growth tailwinds from expanding diagnosis and supplies. In our view, investors should continue holding the stock.

Sigma Healthcare Ltd (ASX: SIG)

The team at Morgans thinks that Sigma Healthcare shares could be a buy.

It was pleased with its plan to expand into the UK market and believes it could support quicker than expected growth in its store network. It explains:

Sigma Healthcare is a wholesale distributer of pharmaceutical goods and medicines. Following the merger with Chemist Warehouse to create a leading healthcare franchisor, Sigma recently announced it had signed a memorandum of understanding with Greenlight Healthcare that will launch the Chemist Warehouse brand in the UK market. Sigma will acquire a 75 per cent interest in a number of stores.

Chemist Warehouse has averaged opening 33 new stores per annum over the past five years, but this international expansion could expedite growth. SIG is a first class operator that’s likely to continue its impressive growth track record into the future.

TechnologyOne Ltd (ASX: TNE)

Morgans thinks that TechnologyOne shares are expensive at current levels.

As a result, the broker has put a sell rating on the enterprise software provider’s shares this week.

Commenting on TechnologyOne, the broker said:

TNE is one of Australia’s largest enterprise software-as-a-service companies. TNE provides enterprise resource planning software to thousands of corporations, government departments and statutory authorities. While TNE enjoys strong market positions in Australia and New Zealand, the stock was recently trading on a lofty price-earnings ratio above 65 times, indicating it may be overvalued if growth falters.

The company is exposed to higher interest rates and its subsequent implications regarding valuations of technology companies. Some uncertainty exists about the long term impact of artificial intelligence on companies in the broader technology sector.

The post Buy, hold, sell: ResMed, Sigma, and TechnologyOne shares appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Sell alert! Why this expert is calling time on Technology One shares
• 5 things to watch on the ASX 200 on Monday
• What is Bell Potter’s updated view on TechnologyOne shares?
• 3 high-quality ASX 200 shares for beginners to buy and hold

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

The S&P/ASX 200 Index (ASX: XJO) is under pressure again on Monday, with investors taking risk off the table after another jump in oil prices.

At the time of writing, the ASX 200 is down 1.42% to 8,508 points.

The move has pushed the benchmark index to its lowest level in around 7 weeks.

The ASX 200 is now down 2.7% over the past week and 4.9% over the past month.

So, what has investors selling today?

Oil keeps the pressure on

Brent crude futures have pushed above US$111 a barrel as investors watch the risk of further escalation in the Middle East.

Reuters reported that oil and bond yields rose as global markets reacted to fresh inflation concerns and ongoing geopolitical tension.

Investors were already nervous after Wall Street ended lower on Friday as concerns over rising prices and higher bond yields weighed on sentiment.

The Dow Jones Industrial Average Index (DJX: .DJI) fell 1.1%, the S&P 500 Index (SP: .INX) lost 1.2%, and the Nasdaq Composite Index (NASDAQ: .IXIC) dropped 1.5% as Treasury yields moved higher.

That has left local investors with little reason to take on more risk today.

Most ASX 200 shares are falling

The weakness is spreading across most of the market.

The S&P/ASX 200 Industrials Index (ASX: XNJ) and the S&P/ASX 200 Materials Index (ASX: XMJ) are among the main drags, down 4.22% and 2.89%, respectively.

On the other hand, the S&P/ASX 200 Energy Index (ASX: XEJ) is one of the few areas finding support from the oil rally, up 1.94%.

A big part of the industrials weakness is coming from Brambles Ltd (ASX: BXB).

The Brambles share price is down 19.23% to $17.85 at the time of writing after the pallet pooling giant cut its FY26 profit guidance.

The downgrade has made Brambles one of the day’s biggest ASX 200 fallers, which is not helping an index already under pressure.

Foolish Takeaway

Today’s ASX 200 fall is being driven by a mix of global concerns and local weakness.

Higher oil prices are keeping inflation worries alive, while Brambles has given investors another reason to sell after cutting its profit guidance.

The weakness also looks broad, with most sectors in the red and materials stocks weighing heavily on the index.

Investors appear to be showing caution rather than buying the dip, especially with no clear sign yet of where the selling might settle.

With the ASX 200 continuing to drift lower and US futures pointing lower, the market could be set for another difficult start tomorrow.

The post Why the ASX 200 is sinking to a 7-week low today appeared first on The Motley Fool Australia.

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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.

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are outlined below. Here’s why they are bullish on them:

Electro Optic Systems Holdings Ltd (ASX: EOS)

According to a note out of Ord Minnett, its analysts have retained their speculative buy rating on this defence and space company’s shares with an improved price target of $14.00. The broker was pleased with a recent update from the company relating to its proposed acquisition of MARSS Group. Ord Minnett is positive on the deal, highlighting that the MARSS NiDAR system has a track record of defeating multiple Shahed drone attacks recently in the Middle East. Outside this, it was pleased to see that MARSS’ order book is substantial, which boosts the total combined unconditional order book to over $726 million. In light of this, Ord Minnett has boosted its earnings estimates for the near term and its valuation accordingly. The EOS share price is trading at $8.82.

Regis Resources Ltd (ASX: RRL)

A note out of Macquarie reveals that its analysts have retained their outperform rating and $9.50 price target on this gold miner’s shares. The broker has been looking at the company’s plan to merge with Vault Minerals Ltd (ASX: VAU). Macquarie sees positives in the deal, noting that it has the potential to become the second-largest Australian gold miner with significant production capacity. And while it concedes that there will be no operational synergies, it points out that there will be tax benefits and a potentially lower cost of capital. The Regis Resources share price is fetching $6.38 at the time of writing.

TechnologyOne Ltd (ASX: TNE)

Analysts at Bell Potter have retained their buy rating on this enterprise technology provider’s shares with an improved price target of $32.25. According to the note, the broker is feeling positive ahead of this week’s half-year results release. It expects TechnologyOne’s profit before tax growth to be consistent with its guidance. Bell Potter is forecasting 9% growth to $89.4 million, while the consensus estimate is for growth of 8% to $88.4 million. It also expects 17% growth in annual recurring revenue (ARR) to around $600 million. However, it suspects that there could be a positive surprise with its ARR, which could be a potential catalyst for its share price. The TechnologyOne share price is trading at $28.46 on Monday afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• EOS shares halted after huge run as $175 million raising lands
• Sell alert! Why this expert is calling time on Technology One shares
• 5 things to watch on the ASX 200 on Monday
• What is Bell Potter’s updated view on TechnologyOne shares?
• Why EOS, Megaport, Racura, and Xero shares are racing higher today

Motley Fool contributor James Mickleboro has positions in Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems, Macquarie Group, and Technology One. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Shaw and Partners has been keeping a close watch on the small cap and emerging side of the market recently, and has come up with plenty of ideas around companies they see as good value.

Today I’ve selected two in the technology field, albeit very different companies, to see what the analyst team at Shaw and Partners are saying.

Let’s have a look.

Smart Parking Ltd (ASX: SPZ)

This company does as the name suggests – it supplies parking monitoring and management systems and now has offices in the UK, Denmark, Germany, Australia, New Zealand, and the US.

The company only entered the US in March of last year, after it acquired Peak Parking for $56.9 million.

The company said in its most recent half-year report that it had added 53 new automatic number plate recognition sites globally during the half year, while revenue jumped from $32 million to $62.8 million.

Net profit increased from $3.9 million to $4.3 million.

Shaw and Partners said in their recent note to clients that “a strong buying opportunity seems to have emerged in SPZ as the March quarter trading update paints a picture of solid performance notwithstanding a share price drop of over 40% since February”.

The analyst team said the US represented a large potential market for the company, which it was just breaking into.

They added:

The roll-out of SPZ’s low-cost, user-friendly, accurate parking technology into the relatively untapped parking segment of unmanaged, small surface lots (attached to retailers, hotels, fast food chains, and high-density transportation hubs etc) could add significant value. SPZ is confident in its ability to launch the service and has now hired a sales team.

Shaw and Partners has a price target of $1.55 on Smart Parking shares compared with 83.5 cents currently.

Atturra Ltd (ASX: ATA)

This company presented at the Shaw and Partners TechRise conference recently and Chief Executive Officer Stephen Kowal gave a “confident update” according to the Shaw analyst team.

Shaw and Partners said:

Management implicitly reaffirmed FY26 guidance and agreed the business is returning to growth in 2H, with accelerating demand across data, security and AI-readiness work offsetting weakness elsewhere and supporting confidence into FY27/FY28. Margins are expected to benefit from restructuring and automation-led managed services efficiencies, while improving cross-sell traction and stronger momentum across IP products (ACP and Scholarian) are incrementally strengthening the medium-term outlook.

Shaw and Partners has a price target on Atturra shares of $1.15 compared with 45 cents currently. Atturra is valued at $171 million.

The post Shaw and Partners says these two ASX small-cap companies could have some serious upside appeared first on The Motley Fool Australia.

More reading

• Why the ASX 200 is sinking to a 7-week low today
• Leading brokers name 3 ASX shares to buy today
• Why Brazilian Rare Earths, Pro Medicus, Service Stream, and Woodside shares are charging higher
• Why A2 Milk, Brambles, Elders, and Tuas shares are sinking today
• Which ASX rare earths company is spinning out a new aluminium company?

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 recommended Atturra. 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 start the week with a disappointing decline. At the time of writing, the benchmark index is down 1.35% to 8,515.9 points.

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

Brazilian Rare Earths Ltd (ASX: BRE)

The Brazilian Rare Earths share price is up 6% to $5.68. Investors have been buying the rare earths developer’s shares after it announced the spin-off of its aluminium business. Brazilian Rare Earths plans to demerge its Amargosa bauxite and gallium project into a new company through an initial public offering worth up to $50 million. It said: “The proposed demerger affords Amargosa the focus and flexibility it needs to be progressed rapidly, and reflects a disciplined portfolio strategy that separates two large-scale, strategically important mineral platforms with different development pathways.”

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is up 2.5% to $125.35. This morning, the health imaging technology company announced a seven-year, A$90 million contract with Boston-based Beth Israel Lahey Health. The contract will see the company’s cloud-based Visage 7 Enterprise Imaging Platform implemented throughout Beth Israel Lahey Health providing a unified diagnostic imaging platform. Pro Medicus’ CEO, Dr Sam Hupert, said: “Our pipeline remains strong and spans all market segments. This deal is for our ‘full stack’ comprising all three core Visage products, namely viewer, workflow and archive, a trend we see continuing.”

Service Stream Ltd (ASX: SSM)

The Service Stream share price is up 1.5% to $2.17. This has been driven by the release of an announcement from the essential network services provider. Service Stream has secured new agreements worth $455 million across two major customers. This includes a new nine-year contract with Yarra Valley Water under its Maintenance Services Delivery Partners program. The company’s managing director, Leigh Mackender, said: “Service Stream is delighted to be selected as a delivery partner for this long-term program. We look forward to working closely with Yarra Valley Water and supporting the maintenance of its critical infrastructure across Melbourne.”

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is up 3% to $32.16. Investors have been buying the energy giant’s shares following a strong rise in oil prices on Friday night. Traders were bidding oil prices higher after Donald Trump suggested that he was losing patience with Iran in relation to peace talks. This has sparked fears of an escalation in the conflict.

The post Why Brazilian Rare Earths, Pro Medicus, Service Stream, and Woodside shares are charging higher appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Pro Medicus and Woodside Energy Group Ltd. 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.