Author: openjargon

Pro Medicus Ltd (ASX: PME) shares have performed well this week on the back of two major contract wins, but the shares are still well down on their highs over the past 12 months.

AI boom or bust?

One of the big questions for investors is whether artificial intelligence will be a positive for the company, or will over time eat into its market share as competitors seek to replicate its products on the cheap.

Two brokers have issued research reports this week with bullish share price targets on the company, indicating they don’t think AI will spell downside for the company.

And notably, the company’s Chief Executive Officer, Dr Sam Hupert, directly addressed the issue of the impact of AI in an interview published on the ASX along with the new contract announcements.

Mr Hupert said regarding the company’s share price falls, that the so-called SaaSpocalypse fear “affected the share price of most, if not all, software companies globally, including PME”.

He went on to say that he believed AI would be a big opportunity for the company.

Firstly, AI and healthcare are a strong match, and the fit is particularly compelling in diagnostic imaging. We see substantial scope for AI to be a “second set of eyes” improving both the speed and consistency of radiology reporting, and we believe we are ideally suited to play a meaningful role in that transition. Our platform is optimised for AI-enabled workflows at scale, and we have a growing footprint, with our platform now being used by over 10% of the US market, including some of the most luminary healthcare institutions in the world.

Dr Hupert went on to say that the company believed it had a “very large, defensible moat”.

Our solution is proprietary, built by us from the ground up. We did not use an existing model or tool kit readily available to others, and we certainly didn’t leave a roadmap as to how we did it. Many have tried to replicate our tech stack over the last 17 years, but no one has succeeded, with or without AI. We also operate in arguably one of the most regulated, mission critical industries where the margin for error is zero, close enough is not good enough.

Brokers like the stock

The analyst team at Morgans said they had had several industry and company contact points in recent weeks, which reinforced their view of Pro Medicus as a company executing well, “noting the second-best sales year, large implementations in train, and a structurally strong competitive position”.

They added:

The business has never been better positioned in our view despite the share price performance. Retain strong positive view and target price of $210 per share.

The team at Macquarie has an even more bullish price target of $221 on Pro Medicus shares, saying the recent contract wins have reminded the market of the company’s resilience against AI disruption.

They said:

Recent contract wins and substantial renewals have supported market sentiment on PME following tech-sell down on AI fears. We see the size, variety and increasing upsell to cardiology continuing to support our Outperform rating.

The post How much higher could Pro Medicus shares go? 2 brokers weigh in appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy now
• 3 ASX 200 healthcare shares to buy while they’re on sale
• Why AI is making Pro Medicus shares a once-in-a-generation buy
• Here are the top 10 ASX 200 shares today
• Which tech share is the ‘most defensively positioned software business’ on the ASX?

Motley Fool contributor Cameron England has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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.

It was a happy hump day for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Wednesday.

After recording losses at the start of the week, investors seemed to find their sense of optimism today, with the ASX 200 staying in green territory all session, and closing 0.7% higher. That leaves the index at 8,785.7 points.

This turn of fortunes for Australian investors followed an upbeat night over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) recovered from an early slump to finish 0.45% higher.

Meanwhile, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) only just managed to get over the line, gaining just 0.026%.

But let’s get back to the local markets now and dive a little deeper into what was happening amongst the various ASX sectors this hump day.

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 rallying despite a weaker growth warning
• This beaten-up ASX stock just jumped 5%. Here’s why investors are buying again
• Ingenia Communities affirms strong FY26 outlook and development pipeline
• If I could buy just 1 ASX stock in June, it’d be this cheap ASX 200 share
• Superloop upgrades FY26 earnings guidance and unveils new strategy

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 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 can feel harder to buy an ASX exchange-traded fund (ETF) after it has just hit a record high.

The easier moment is usually when markets are nervous and prices are lower. But I do not think a record high automatically means the opportunity is over.

Two ASX ETFs that reached record highs this week are the iShares Global 100 ETF (ASX: IOO) and the Betashares Global Cybersecurity ETF (ASX: HACK).

I think both remain buys, even if the bargain-buying period has likely passed.

iShares Global 100 ETF

The IOO ETF is one of the simplest ways to invest in some of the world’s biggest listed companies.

It gives investors exposure to 100 large global businesses. These are not obscure companies hoping to become relevant one day. Many are already dominant in their industries, with huge customer bases, strong brands, global reach, and deep financial resources.

I like that because large winners can keep winning for a long time.

A business that already has scale can often afford to invest heavily in technology, product development, logistics, marketing, acquisitions, and new markets. That can help defend its position and create more growth over time.

The IOO ETF also gives investors exposure to companies that are difficult to replicate through Australian shares alone. That could include global technology giants, healthcare leaders, consumer brands, payments businesses, and other multinational compounders.

A record high does mean investors are no longer buying at the same attractive levels they might have seen during a weaker market. But I think the better question is whether the companies inside the fund can keep growing earnings over the next decade.

I think many of them can.

There will still be market pullbacks, and the IOO ETF could fall if global shares weaken. But for investors wanting exposure to world-class businesses in one ASX trade, I think it remains a strong option.

Betashares Global Cybersecurity ETF

The HACK ETF has also pushed to record highs.

I think this is one of the more interesting thematic ETFs on the ASX because cybersecurity is becoming a core business need.

Companies, governments, hospitals, banks, schools, infrastructure operators, and individuals all face growing digital threats. As more activity moves online, the cost of weak security can become enormous.

That creates a long-term demand driver for cybersecurity spending.

What I like about the HACK ETF is that it gives investors exposure to a basket of global companies working across different parts of the cybersecurity market. This can include network security, cloud protection, identity management, threat detection, endpoint security, and other tools that organisations need to protect data and systems.

Cybersecurity is not a discretionary trend in the same way as some other themes. Many organisations have little choice but to keep investing, because the risks of falling behind are too high.

That does not mean the HACK ETF will rise smoothly. The holdings can be growth-oriented, and valuations can become stretched when investors get excited about the theme.

But I think the long-term direction is clear. The world is becoming more digital, and that means security spending is likely to remain important.

Foolish Takeaway

Record highs can make investors hesitate, and I understand why.

Nobody wants to buy just before a pullback. But waiting for the perfect entry point can also mean missing years of compounding from strong businesses and powerful themes.

The IOO ETF gives exposure to global leaders that can keep reinvesting at scale, while the HACK ETF gives exposure to a cybersecurity market that I think will remain essential for years.

Neither looks like a bargain after hitting record highs. But I do not think long-term investors should need a bargain price to buy a quality ETF. If the underlying opportunity is still strong, I think both could have more to come.

The post These ASX ETFs just hit record highs, is there more to come? appeared first on The Motley Fool Australia.

More reading

• Why NDQ and these ASX ETFs could be buys in June
• 3 incredible ASX ETFs for Australian investors in June
• 3 exciting ASX ETFs to buy and hold for 10 years
• Broker tips this ASX cyber security stock to rise over 30%
• 2 top ASX shares to buy and hold for the next decade

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 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.

The S&P/ASX 200 Index (ASX: XJO) is pushing higher on Wednesday, despite fresh data showing Australia’s economy is losing steam.

At the time of writing, the ASX 200 is up 0.59% to 8,775 points.

The move leaves the benchmark index close to its intraday high of 8,779.8 points and within reach of its recent highs. But under the surface, the session is still mixed, with a smaller group of large stocks doing most of the work.

So why are investors still buying?

Investors look past the softer GDP numbers

The latest national accounts data showed Australia’s economy grew 0.3% in the March quarter.

Annual GDP growth slowed to 2.5%, slightly below economist expectations.

The ABS said growth was held back by subdued household and government consumption, weaker mining production, and a drag from net trade.

Business investment, especially data centre machinery and equipment, was one of the main positive contributors.

The softer growth number has not been enough to knock the ASX 200 lower. Instead, investors appear to be treating it as another sign that interest rates may not need to move higher from here.

Reuters reported that markets showed little reaction to the data, with swap markets pricing only a small chance of another rate hike next month.

Resources are doing the heavy lifting

The stronger session is being led by the S&P/ASX 200 Resources Index (ASX: XJR), rather than a broad lift across the whole market.

BHP Group Ltd (ASX: BHP) shares are up more than 2% to $64.91, while Rio Tinto Ltd (ASX: RIO) shares are also trading more than 2% higher at $195.84.

Sandfire Resources Ltd (ASX: SFR) shares have risen as much as 3.2% to $20.64.

The buying comes as copper futures trade near record highs, after a strong run earlier in the week. That has given investors another reason to move back into the big miners, even as the domestic economy shows signs of slowing.

Gold miners are also stronger. Northern Star Resources Ltd (ASX: NST) shares are up around 6.2% to $22.34, extending yesterday’s 13.6% rally.

Uranium names are adding to the move, with Paladin Energy Ltd (ASX: PDN) shares gaining 10.2% to $11.69, Deep Yellow Ltd (ASX: DYL) shares lifting 7.1% to $1.62, and Boss Energy Ltd (ASX: BOE) shares climbing 7.5% to $1.38.

Not every ASX 200 stock is joining in

Another key takeaway is that today’s gain isn’t being shared evenly across the market.

Earlier in the session, only 77 of the ASX 200’s 200 stocks were trading in positive territory. That tells us the index is moving higher, but the buying is still concentrated in a smaller group of large resource and energy names.

Commonwealth Bank of Australia (ASX: CBA) shares are up 0.4% to $166.36, which is helping support the benchmark. But several other large names are moving the other way.

CSL Ltd (ASX: CSL) shares are down around 1.2% to $91.46, while the S&P/ASX 200 Information Technology Index (ASX: XIJ) is also under pressure.

Xero Ltd (ASX: XRO) shares are down 3.8% to $83.70, and WiseTech Global Ltd (ASX: WTC) shares are 2.5% lower at $41.15.

The post Why the ASX 200 is rallying despite a weaker growth warning appeared first on The Motley Fool Australia.

More reading

• Ingenia Communities affirms strong FY26 outlook and development pipeline
• If I could buy just 1 ASX stock in June, it’d be this cheap ASX 200 share
• Superloop upgrades FY26 earnings guidance and unveils new strategy
• Megaport secures 4 new AI contracts, announces capital raise
• 5 things to watch on the ASX 200 on Wednesday

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

CSL Ltd (ASX: CSL) shares had another shocking month in May.

The biotechnology giant’s shares ended April at $124.37. But by the close of play in May, they had sunk to $97.12.

That means CSL shares lost approximately 22% of their value across the month. So, what happened?

Guidance downgrade spooks investors

The main catalyst for the selloff was CSL’s update on 11 May.

The company revealed the findings of interim CEO Gordon Naylor’s 90-day review and announced a downgrade to its FY 2026 outlook.

CSL now expects revenue of around US$15.2 billion and NPATA of around US$3.1 billion, excluding restructuring costs and impairments, on a constant currency basis.

Management said its growth initiatives are working, but the financial benefits will take longer than previously expected to materialise. Naylor commented:

Our growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialise. As a result, we have now revised down our 2026 financial year guidance. CSL’s culture and people continue to be first class, the industry is stable and growing and the company has evident strengths in plasma collections and influenza vaccines. I am confident that the company can be returned to profitable growth and my work is to position the business and the next CEO for success.

That was not the message investors wanted to hear after a difficult period for the company.

There were several pressure points behind the downgrade. In U.S. immunoglobulin, demand is still growing at mid to high single digits, but revenue is being affected by the normalisation of channel inventory. CSL expects this to have an impact of approximately US$300 million.

Albumin in China is also weighing on the outlook. While CSL said its market share has expanded and volumes have stabilised, market value has declined, leading to an expected revenue impact of approximately US$200 million.

Other factors, including the Middle East conflict, revised HEMGENIX growth, and competition in iron, are expected to have a combined impact of approximately US$150 million.

Impairments add to the pressure

The downgrade was not the only issue weighing on the share price.

CSL also advised that it expects to recognise approximately US$5 billion of additional non-cash, pre-tax impairments across FY 2026 and FY 2027.

These impairments relate to CSL Vifor intangible assets, including the product portfolio, as well as under-utilised property, plant and equipment.

For investors, this was another reminder that some past investment assumptions have not played out as hoped. CSL also acknowledged that the Vifor acquisition has underperformed expectations and that invested capital has grown faster than earnings.

That has added to concerns about returns, capital allocation, and how long it may take for CSL to rebuild investor confidence.

Can CSL recover?

Despite the heavy selling, management has not given up on the long-term story.

The company said it is making progress on portfolio and commercial execution, operational simplification, and its transformation program.

It also highlighted strengths in plasma collection and influenza vaccines, as well as early signs of improvement in end-patient demand and momentum across recent product launches.

But the market’s response in May was clear. Investors wanted stronger earnings momentum, not another reset.

CSL remains a global healthcare leader with valuable assets and a long history of innovation. But after such a brutal month, the company may need to show tangible progress before its shares can regain the market’s trust.

The post Why did CSL shares crash 22% in May? appeared first on The Motley Fool Australia.

More reading

• Are CSL and ResMed shares buys at 52-week lows?
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• Top 10 ASX shares bought and sold by investors in May
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• Down 60%: 3 oversold ASX 200 shares to buy in June

Motley Fool contributor James Mickleboro has positions in CSL. 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. At the time of writing, the benchmark index is up 0.6% to 8,778.3 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Catapult Sports Ltd (ASX: CAT)

The Catapult Sports share price is down 6.5% to $3.69. This is despite there being no news out of the sports technology company today. However, it is worth highlighting that Catapult’s shares have been in fine form since the release of its results last month. This could have led to some investors taking a bit of profit off the table today.

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price is down 4% to $4.31. This may have been driven by the release of a broker note out of Macquarie Group Ltd (ASX: MQG) on Wednesday. According to the note, the broker has downgraded Harvey Norman’s shares to a neutral rating (from outperform) with a heavily reduced price target of $4.50 (from $6.60). Macquarie made the move on concerns that retailers could struggle in the current economic environment.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down 5% to $1.96. Investors have been selling this poultry producer’s shares after it was also downgraded by analysts at Macquarie. According to the note, the broker has downgraded its shares to an underperform rating (from neutral) with a $1.80 price target. Once again, this was due to concerns around consumer spending in the tough economic environment.

Opthea Ltd (ASX: OPT)

The Opthea share price is down 97% to 1.8 cents. This biotechnology company’s shares have been smashed after returning from a suspension that lasted over a year. Opthea is shifting its focus from retinal diseases due to a clinical trial failure and is relaunching with a new strategy focused on OPT-302 as a potential treatment for lymphangioleiomyomatosis (LAM). LAM is a rare, chronic lung disease that primarily affects women. The company believes OPT-302 could have a role because the disease is associated with elevated VEGF-C and VEGF-D signalling, which OPT-302 is designed to inhibit. Opthea’s executive chair, Dr Jeremy Levin, said: “Opthea is relaunching with a focused strategy centered on OPT-302 and a clear objective: to evaluate a differentiated, mechanism-driven therapeutic opportunity in LAM while leveraging the Company’s substantial existing development, manufacturing and clinical infrastructure.”

The post Why Catapult Sports, Harvey Norman, Inghams, and Opthea shares are sinking today 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 Catapult Sports and Macquarie Group. The Motley Fool Australia has positions in and has recommended Catapult Sports, Harvey Norman, and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A2 Milk Co Ltd (ASX: A2M) and National Australia Bank Ltd (ASX: NAB) shares have underperformed the S&P/ASX 200 Index (ASX: XJO) both year to date and over the past 12 months.

In early afternoon trade on Wednesday, NAB shares are up 0.1%, changing hands for $37.05 apiece.

This sees shares in the ASX 200 bank stock down 3% over the past 12 months and down 12.6% in 2026. Somewhat mitigating the pain from those capital losses, NAB stock trades on a 4.6% fully-franked trailing dividend yield.

It’s been an even tougher slog for A2 Milk stockholders.

At time of writing, shares in the ASX 200 infant milk formula company are down 0.5%, trading for $5.46 each.

This puts the A2 Milk share price down 31% in a year and down a sharp 40.6% in 2026. And A2 Milk shares’ 3.1% fully-franked trailing dividend yield won’t have done much to ease those losses.

To put this performance in some perspective, the ASX 200 has gained 3.7% over the past year and is up 0.6% in 2026.

And looking ahead, Catapult Wealth’s Dylan Evans expects both ASX 200 stocks could continue to struggle (courtesy of The Bull).

Here’s why.

Should I sell NAB shares today?

“The bank’s first half result in fiscal year 2026 was underwhelming, in our view,” Evans said.

And he pointed to recent changes announced in the Federal budget, coupled with households pressured by rising interest rates, that could throw up new headwinds for the bank.

Summarising his sell recommendation in NAB shares, Evans concluded:

Investment loans account for about a third of residential lending. Proposed changes to negative gearing and capital gains tax are likely to reduce loan and property price growth, in our view.

Given higher interest rates and affordability pressures, NAB may struggle to deliver the growth needed to support current expectations.

A2 Milk shares could remain under pressure

Atop recommending exiting NAB shares, Evans also issued a sell recommendation on A2 Milk shares.

“This infant milk formula company recently initiated a voluntary recall of three small batches of contaminated product sold only in the United States,” he said.

“While the recall didn’t impact the key Chinese market, it poses a reputational risk in a country and segment that is sensitive to brand reputation,” he noted.

Then there’s the company’s recent issues in securing the needed supplies to meet demand.

Evans concluded:

A recent trading update revealed supply chain disruptions are constraining product availability despite strong underlying demand. The shares have remained under pressure since April when the company downgraded guidance in full year 2026.

The post Sell alert! Why this expert is calling time on A2 Milk and NAB shares appeared first on The Motley Fool Australia.

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. At the time of writing, the benchmark index is up 0.6% to 8,777.8 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are charging higher:

Acrow Ltd (ASX: ACF)

The Acrow share price is up 9.5% to 97 cents. This morning, this smart integrated construction systems provider announced that the Industrial Access division’s revenues will exceed $200 million for FY 2026. It notes that this represents a significant milestone in the division’s growth and profitability. The company’s CEO, Steven Boland, said: “Our strategy to build a substantial Industrial Access division to complement our market leading Construction Services division, is delivering strong results. The recurring nature of earnings from this division, combined with its growth trajectory, has delivered at a time when activity in our Construction Services division has softened, ensuring that the Company continues to prosper.”

Ampol Ltd (ASX: ALD)

The Ampol share price is up 2% to $34.53. This has been driven by news that the Australian Competition and Consumer Commission (ACCC) has approved its acquisition of EG Australia. As part of the deal, Ampol has agreed to sell 41 sites to Metro Petroleum. Ampol’s CEO, Matt Halliday, said: “This transaction is a major step in delivering Ampol’s strategy by strengthening our retail network and enhancing our segmented customer offer. The performance of our existing U-GO sites also gives us greater confidence in delivering the expected synergies from the transaction and creating value for Ampol shareholders.”

Medallion Metals Ltd (ASX: MM8)

The Medallion Metals share price is up 11% to 45 cents. This morning, this gold explorer announced more exceptional high-grade gold results from the Lounge Lizard deposit at the Forrestania Gold Project (FGP). The company’s managing director, Paul Bennett, commented: “This latest phase of validation continues to strengthen our understanding of the Lounge Lizard mineralised system and the continuity of high-grade mineralisation beneath the historical open pit.”

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is up 5% to $22.10. Investors have been buying this gold miner’s shares after it announced its latest mineral resource and ore reserve estimate. Northern Star revealed that its group mineral resources have increased to 88.9 million ounces. This represents an increase of 18.2 million ounces, or 26%, after mining depletion. A key driver of this increase was the first inclusion of the Hemi Project following Northern Star’s acquisition of De Grey Mining.

The post Why Acrow, Ampol, Medallion Metals, and Northern Star shares are racing higher 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX bank stocks have come under pressure over the past month as concerns about the Federal Budget’s property tax changes, higher interest rates, and ongoing global volatility continue to spook investors.

Analysts are mostly bearish about the outlook for ASX bank stocks over the next 12 months, with some tipping much more downside ahead.

But there are a couple of exceptions. And one of those is Judo Capital Holdings Ltd (ASX: JDO).

What’s the latest out of Judo Bank shares?

Judo Bank shares have fallen around 2% in Wednesday lunchtime trade. At the time of writing, the ASX bank stock is trading at $1.42 a piece.

The latest decline means the shares have now fallen around 9% since late-last week. But they’re still 7% higher than a two-year low of $1.32 recorded two weeks ago today.

For the year-to-date, Judo Bank shares are down around 21% and around 4% lower than this time 12 months ago.

What do analysts tip next?

Analysts are very optimistic about the outlook for Judo Bank shares over the next 12 months.

TradingView data shows that 12 out of 13 analysts have a buy or strong buy rating on the ASX bank stock. 

The average $2.13 target price implies a potential 50% upside at the time of writing. 

Meanwhile, some are even more bullish and have forecast the shares to increase another 76% to $2.50 by this time next year.  

Why are the experts so bullish on the ASX bank stock?

Judo Bank works differently to other ASX bank stocks. The bank has a niche focus in the small and medium enterprises (SME) market, an area which is typically underserved by major banks. 

The business provides tailored financial services and lending starting at $250,000 to SMEs with annual turnovers of up to $100 million. It also offers personal term deposit products and home loans.

It also tends to earn higher margins on business loans versus the major banks. For example, for the first half of FY26, Judo reported a net interest margin (NIM) on its business loans of 3.03%, and this is projected to increase to 3.15% in the second half of the financial year. Meanwhile, major lender National Australia Bank, reported a NIM of 1.8% in the same period.

Analysts also like the fact that the ASX bank had a strong start to FY26. In early May, Judo Bank reported strong Q3 lending growth and robust deposit franchise performance. The ASX bank stock also reaffirmed FY26 guidance of $180-$190 million. 

The team at Morgans has a buy rating on the SME lender’s shares and said it is positive that Judo Bank will deliver strong earnings growth between FY26 and FY28. The broker said its sees recent share price weakness as a buying opportunity for investors. 

The post This ASX bank stock has rebounded 7% from a 2-year low, and is tipped to climb up to 76% higher appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Ampol Ltd (ASX: ALD) shares are back in the green on Wednesday, with investors responding positively to its latest announcement.

The Ampol share price is up 2.28% to $34.57 at the time of writing.

It continues a strong stretch for the fuel and convenience retailer, with the stock now up around 8% in 2026 and 36% over the past year.

Today’s move comes after Ampol received the approval it needed to push ahead with a major acquisition.

Let’s take a closer look at the release.

What was announced?

In a statement to the ASX, Ampol said the ACCC has approved its $1.1 billion acquisition of EG Australia, although the deal comes with conditions.

Under the agreement, Ampol will sell 41 sites to Metro Petroleum. The ACCC has also approved Dib Group, trading as Metro Petroleum, as the buyer of those sites.

The decision follows a longer competition review after the regulator raised concerns earlier this year.

Back in January, the ACCC said the deal could reduce competition in several petrol and diesel markets. It had identified 115 EG sites where local competition concerns could arise.

Ampol had first offered to sell 19 sites, but the final package is now much larger.

The regulator has accepted the sale of 41 sites as a remedy, allowing the transaction to move ahead.

Ampol said it expects the acquisition to complete on 30 June 2026.

Why investors are buying

The buying today looks partly driven by relief, with Ampol now closer to completing a deal that has been under review for months.

EG Australia is a major fuel and convenience retailer, with around 500 sites nationwide. Ampol said the acquisition will lift its owned-sites footprint to more than 1,000 locations.

The deal also gives Ampol a bigger base in convenience retail, which has become a larger part of its growth plan.

Management has previously pointed to the rollout of Foodary, U-GO, and Everyday Rewards as part of the wider strategy.

Ampol is also targeting $65 million to $80 million in synergies from the deal.

Those savings are expected to come from overhead reductions, U-GO conversion benefits, and a larger operating network.

The company said the acquisition is expected to add to earnings per share (EPS) and free cash flow per share once fully integrated.

Foolish takeaway

The ACCC approval removes a major overhang for Ampol after months of waiting.

The deal still requires site sales and integration work, but investors now have more certainty it will proceed.

The next test is whether the larger retail network can deliver the earnings and cash flow benefits Ampol is targeting.

The post Ampol shares jump as $1.1 billion deal clears a major hurdle 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.