Author: openjargon

For retirees, investing isn’t about chasing the next high-flying growth stock. It’s about reliability. I believe the ideal ASX dividend stock for retirees should generate consistent cash flow, operate in resilient industries, and have a clear pathway to maintaining or gradually growing distributions over time.

Here are three I consider strong income options right now.

Transurban Group (ASX: TCL)

Transurban is one of my favourite income-focused infrastructure plays.

It owns and operates toll roads across major Australian and North American cities. These are long-life assets with high barriers to entry. Once built, they tend to generate steady traffic volumes supported by population growth and urban congestion.

What I like most is the predictability of cash flow. Many of Transurban’s toll concessions include inflation-linked price increases. That provides a built-in mechanism for revenue growth without needing aggressive expansion.

For retirees, that kind of contractual and regulated income stream is attractive. While distributions can fluctuate with traffic conditions and capital expenditure cycles, I see Transurban as one of the more dependable infrastructure income vehicles on the ASX.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corporation offers something slightly different: defensive consumer exposure.

Lotteries are remarkably resilient. Even during economic downturns, ticket sales tend to hold up well. The business benefits from strong brand recognition, long-term licences, and limited competition.

Cash flow generation is robust and highly visible. Because lottery products are low-ticket discretionary purchases, they don’t tend to be cut from household budgets in the same way larger expenses might be.

For retirees seeking income, I like the combination of recurring revenue, high margins, and a business model that isn’t capital intensive. That supports consistent dividend payments over time.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT focuses on large-format retail centres anchored by non-discretionary tenants such as supermarkets, healthcare providers, and essential service operators.

This matters. Daily needs retail is far more resilient than fashion or luxury retail. Tenants provide goods and services people rely on regularly, which supports rental stability.

The REIT structure also means a high proportion of rental income is distributed to investors. While property trusts are sensitive to interest rates, I believe exposure to essential retail tenants helps underpin earnings stability.

For retirees comfortable with property exposure, HomeCo Daily Needs REIT offers an attractive yield backed by assets tied to everyday spending.

Foolish takeaway

When building an income-focused portfolio in retirement, I prioritise durability over excitement.

Transurban provides infrastructure-backed cash flows. The Lottery Corporation offers defensive consumer earnings. HomeCo Daily Needs REIT delivers property income linked to essential spending.

No dividend is ever guaranteed, but in my view, these three ASX dividend stocks have the kind of underlying businesses that retirees can build income portfolios around.

The post 3 strong ASX dividend stocks for retirees to buy appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend stocks built to pay you year after year
• 3 ASX dividend shares I would buy with $3,000
• Planes, trains and automobiles: Which of these ASX transport stocks has fuel in the tank?
• How to build an ASX share portfolio you can stick with long term
• What is Morgans saying about APA, Bega Cheese, and Transurban shares?

Motley Fool contributor Grace Alvino has positions in Transurban Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended The Lottery Corporation and Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Summerset Group Holdings Ltd (ASX: SNZ) share price is in focus after the company delivered a record underlying profit of NZ$234.2 million for the 2025 full year, up 13% on FY24, while total revenue climbed 13% to NZ$361.8 million.

What did Summerset report?

• Underlying profit after tax of NZ$234.2 million, up 13% on FY24
• IFRS net profit after tax dropped 22% to NZ$259.7 million compared to FY24
• Total revenue of NZ$361.8 million, up 13% year on year
• 1,560 total sales of occupation rights (805 new, 755 resales), up 26%
• 693 new homes delivered—637 in New Zealand, 56 in Australia
• Final dividend of NZ13.2 cents per share (total FY25: NZ24.5 cps)
• Net tangible assets (NTA) per share increased $1.32 to $13.75

What else do investors need to know?

Summerset continued to achieve robust sales results despite a subdued property market in 2025, with its strongest ever year for new sales and ongoing high occupancy rates. The business grew its total assets by 15% to $9.2 billion and maintained strong resident satisfaction at 91% and staff retention at 84%.

The company delivered 56 new homes in Australia and made significant steps in its Australian growth plan, including opening its first village centre at Cranbourne North, Victoria. Care profitability also lifted, with care EBITDA jumping to $18.8 million, mainly through the sale of care rooms under Occupation Right Agreements (ORAs).

What did Summerset management say?

CEO Scott Scoullar said:

We’ve continued to achieve despite another year where the business environment and property market has been subdued. Summerset has lifted the value of the company by $1.32 per share to have a Net Tangible Assets (NTA) per share of $13.75, and we are proud to be very focused on growth.

What’s next for Summerset?

Summerset expects to keep building, forecasting 650–700 new homes in New Zealand and 100–150 in Australia for FY26. The company is targeting continued growth in both countries, supported by its large land bank and steady demand, while carefully managing its build rate to match market conditions. Further cost reviews and ongoing sustainability initiatives are also on the cards, with gearing expected to reduce in FY26.

Directors declared a final dividend of NZ13.2 cents per share, with the total FY25 payout unchanged from the previous year. Management remains focused on prudent balance sheet management and delivering long-term cashflow for residents and shareholders.

Summerset share price snapshot

Over the past 12 months, the Summerset shares have declined 20%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Summerset Group reports record FY25 profit and strong sales appeared first on The Motley Fool Australia.

More reading

• PEXA Group posts 1H FY26 earnings
• Vault Minerals: High-grade drilling results drive mine-life upside
• 5 things to watch on the ASX 200 on Friday
• Zimplats Holdings: Profit surges, no dividend for half year
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Sigma Healthcare Ltd (ASX: SIG) shares were bouncing around on Thursday.

The Chemist Warehouse owner’s shares were up as high as $3.20, just short of a 52-week high, before closing down at $2.94.

Should you be taking advantage of the pullback or should you wait for a better entry point? Let’s see what analysts at Bell Potter are saying.

What is the broker saying?

Bell Potter notes that the pharmacy chain operator and distributor delivered a half-year result that was comfortably ahead of expectations. It said:

Key numbers in the SIG half year were comfortably ahead of market consensus and our forecast. Referring to normalised earnings which excludes costs associated with the merger, Revenues $5.1bn (+15% vs pcp i.e. +$250m) and EBITDA $616m (+18.3% vs pcp) are the highlights. GP margin was preserved at 18.3%, hence no dilution from the sale of the high price – lower margin GLP-1 drugs. Earning leverage is obvious with overheads increasing by $32m relative to the much larger increase in revenues and gross profit.

However, that’s not to say there weren’t any negatives. One was a significant increase in working capital. The broker highlights:

The negative in the result was the $195m increase in working capital which constrained net cash from operations to $317m – a relatively poor conversion rate on EBITDA. The WC increase is seasonal across the industry. Disclosure around margins across the multiple businesses making up other revenues remains non-existent.

Should you buy Sigma shares for Chemist Warehouse exposure?

According to the note, the broker is sitting on the fence with this one and has reaffirmed its hold rating and $3.00 price target.

This is broadly in line with where its shares are trading today.

Although it concedes that Sigma delivered an excellent result, it believes its shares are fully valued at present. It also highlights that the escrow period for founders ends in August, which could mean some large share sales from insiders. It concludes:

We regard 1H26 as an excellent result. The earnings leverage is a standout and there is no indication that the gross margin is likely to weaken for the foreseeable future. SIG is only part way through its cost out program, hence good justification for ongoing EPS growth for at least two to three years. The major risk remains the completion of the escrow period for founders in August 2026. TP unchanged. EPS upgraded by 5% and 11% in FY26/27 respectively.

The post Is it too late to buy the shares of Chemist Warehouse owner Sigma? appeared first on The Motley Fool Australia.

More reading

• Why Accent Group, DroneShield, IDP Education, and Sigma shares are jumping today
• Sigma shares jump 7% on results and Chemist Warehouse expansion
• Sigma Healthcare shares: 1H26 profit and sales leap
• 5 ASX 200 blue chip stocks I would buy with $50,000
• Why I’d forget NAB shares and buy these top Aussie stocks

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.

If you are looking for exposure to the mining sector, then Bell Potter has your back.

The broker has just named an ASX mining stock that is “ready to rip” as a buy.

Which ASX mining stock?

Bell Potter is bullish on Nickel Industries Ltd (ASX: NIC) and believes its shares could rise strongly from current levels.

It is a vertically integrated nickel producer with production assets spanning nickel ore mining, nickel pig iron (NPI) production and nickel mixed hydroxide precipitate (MHP) production.

This is achieved through several rotary kiln electric furnace (RKEF) processing lines across two industrial parks in Indonesia.

What is the broker saying?

Bell Potter was pleased with Nickel Industries’ performance in FY 2025. It notes that its revenue and EBITDA were in line with expectations.

NIC has released its CY25 financial result which was in-line with our revenue and EBITDA forecasts, but below our earnings forecast on higher D&A charges, taxes, financing costs and an impairment. Key metrics from the result included: revenue US$1,649m vs BPe US$1,601m, EBITDA (underlying): US$283m vs BPe US$278m, NPAT (reported, consolidated) US$41m loss vs BPe US$31m profit. No dividend was declared, as expected.

But the main reason that Bell Potter is bullish on this ASX mining stock is its “exceptional nickel price” leverage. The broker believes that its strong margins mean it will benefit greatly when nickel prices move from cyclical lows. It adds:

While technically a miss at the NPAT line, we view the result as a positive one that continues to demonstrate the fundamental strength and profitability of NIC’s vertically integrated business model. Underlying EBITDA of US$283m equates to a 17% EBITDA margin through one of the toughest nickel price cycles in years. Margins have been maintained through a combination of cost control and production growth.

This places NIC in a position of exceptional leverage to the nickel price in the event of its recovery off cyclical lows. The industry has seen the closure or suspension of projects globally, tightening any potential supply response. Recently announced production restrictions by the Indonesian Government have been the catalyst for a rise in the nickel price, which we expect to be a positive price support in CY26.

Big returns could be on the cards

According to the note, the broker has retained its buy rating on the ASX mining stock with an improved price target of $1.45 (from $1.30).

Based on its current share price of $1.01, this implies potential upside of approximately 44% for investors over the next 12 months.

In addition, the broker is forecasting a 4% dividend yield over the period, boosting the total potential return to almost 50%.

Commenting on the investment opportunity here, Bell Potter said:

NIC is one of the world’s largest listed nickel producers and offers exposure across a range of nickel products and markets. It continues to make money through low nickel prices, benefitting from its upstream and downstream operations, diversified risk and margin exposure across an integrated value chain. We retain our Buy recommendation on an increased Target Price of $1.45/sh.

The post Guess which ASX mining stock is ‘ready to rip’ 40% higher appeared first on The Motley Fool Australia.

More reading

• Nickel Industries lifts 2026 quota, driving stronger outlook and margins
• Here are the top 10 ASX 200 shares today
• 5 ASX 200 shares forecast to soar 100% (or more) in 2026
• Nickel Industries cements leadership in ENC, welcomes Sphere as strategic partner
• Nickel Industries December 2025 quarter: Strong HPAL margins, mining rebounds

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.

March is often when the dust settles after reporting season. The headlines fade, brokers update their models, and investors start asking a simpler question: which businesses actually delivered?

After reviewing recent half-year results, there are three ASX 200 names I would be comfortable buying this month. They operate in different sectors, but each showed something in their latest numbers that reinforces my confidence.

Commonwealth Bank of Australia (ASX: CBA)

I’d buy CBA in March because it continues to demonstrate balance.

Yes, margins were slightly lower in the half as home lending competition remained intense. But earnings still grew and pre-provision profit lifted. More importantly to me, credit quality improved. Loan impairment expense declined and home loan arrears fell during the half. That matters.

When a bank can grow earnings while maintaining strong capital, improving credit quality, and increasing its dividend, I see that as confirmation of franchise strength.

CBA’s CET1 ratio remains comfortably above regulatory minimums, and it again increased its interim dividend to $2.35 per share, fully franked. I believe that combination of earnings resilience, capital strength, and shareholder returns supports owning it even after a rally.

I’m not buying it for explosive upside. I’m buying it because it continues to prove it can deliver through different parts of the cycle.

Telstra Group Ltd (ASX: TLS)

Telstra’s result reinforced something I already believed: this is no longer just a defensive telco, it’s a business executing a clear strategy.

Mobiles continued to grow, with higher ARPU and customer momentum driving earnings in that segment. Across the Group, underlying EBITDA lifted and operating expenses fell. That positive operating leverage tells me management is controlling what it can control.

What also stood out was capital management. The interim dividend was increased to 10.5 cents per share, and the on-market buy-back was expanded to up to $1.25 billion. That doesn’t happen unless the board has confidence in cash generation and balance sheet strength.

For me, Telstra is attractive in March because it is combining earnings growth, cost discipline, and shareholder returns. It is not dependent on outlandish assumptions. It is executing.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is the one I would buy for quality.

The half-year result showed profit growth of over 9%, supported by strong contributions from Bunnings, Kmart Group, and WesCEF. What I found particularly encouraging was that Bunnings delivered higher sales across all product categories and segments, even in a subdued residential construction environment.

Kmart Group also continued to drive earnings through productivity and value positioning. That reinforces my view that its everyday low-price model has structural strength.

The lithium contribution from WesCEF improved as pricing strengthened later in the half, adding another layer of optionality to the portfolio.

On top of that, the interim dividend was lifted again. For a diversified industrial group navigating cost pressures and uneven consumer demand, that signals confidence.

I like businesses that can grow profit in a mixed environment. Wesfarmers just did.

Foolish takeaway

I’m not recommending these shares for March because they beat expectations. I’m recommending them because their latest results confirmed what I already believed.

CBA remains the highest-quality major bank in Australia, Telstra is delivering earnings growth with disciplined capital management, and Wesfarmers continues to compound value across multiple divisions.

The post Why I’d buy CBA and these ASX 200 shares in March appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 blue chip stocks I would buy with $50,000
• 3 ASX dividend stocks built to pay you year after year
• Is the party over for the CBA share price?
• The easiest way to get rich and retire a millionaire with ASX shares
• Why I would buy ResMed and these quality blue chips now

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many “global” portfolios are really US-heavy.

Even diversified investors often end up with significant exposure to American megacaps. The Magnificent 7 have driven much of the recent market returns, and US companies still dominate broad global indices.

But what if the next wave of AI and growth is broader?

Two themes suggest that the AI opportunity may not be confined to Silicon Valley: India’s structural transformation and Asia’s dominance in the semiconductor supply chain. For investors looking beyond the US, two ASX-listed ETFs offer targeted exposure to those trends.

India’s structural shift

India hasn’t been the standout performer among emerging markets this year. In fact, its equity market has lagged broader emerging indices, reflecting a mix of cautious sentiment and concerns around valuations.

Yet beneath the surface, structural forces are building.

India remains one of the fastest-growing major economies in the world. Its young population, rising middle class and ongoing urbanisation create a long runway for domestic demand. At the same time, the government has been pursuing fiscal discipline while maintaining heavy capital expenditure in infrastructure, energy and manufacturing.

That combination matters. Infrastructure spending in transport, power and digital networks lays the groundwork for productivity gains over the next decade. Meanwhile, policy incentives are aimed at strengthening domestic manufacturing, including electronics and semiconductors.

There is also a clear AI angle emerging.

Global technology giants are committing capital to cloud and data centre expansion in India. What was once seen primarily as an outsourcing hub is increasingly being positioned as a regional AI infrastructure base. As hyperscaler spending flows into data centres, computing capacity and digital services, Indian corporates may benefit both directly and indirectly.

For investors, an India-focused ETF such as the Global X India Nifty 50 ETF (ASX: NDIA) provides exposure to 50 of India’s largest listed companies. These include leaders in financials, energy, IT services and consumer sectors – businesses that stand to gain if India’s domestic growth story continues to strengthen.

It’s not a pure-play AI bet. Instead, it’s a way to access a large, reform-driven economy that could become increasingly central to the global digital buildout.

Asia’s AI supply chain advantage

While the US designs many of the world’s most advanced AI chips, much of the physical manufacturing happens in Asia.

As American tech giants ramp up spending on data centres and AI infrastructure, demand is flowing through the semiconductor supply chain. That includes chip fabrication, advanced memory and specialist components – areas where Asian companies dominate.

Across Asia, several countries sit at the centre of the global technology supply chain.

Taiwan and South Korea are home to some of the world’s most advanced semiconductor fabrication and memory manufacturing capabilities. These businesses produce the chips and components that power data centres, cloud computing and AI workloads. Meanwhile, parts of China and other Southeast Asian economies host major hardware producers, consumer technology leaders and digital platforms that support the broader ecosystem.

If AI-related data centre spending continues to rise, a meaningful share of that investment is likely to flow through companies based in these markets. An ETF such as the Betashares Asia Technology Tigers ETF (ASX: ASIA) provides diversified exposure across key technology-heavy markets including Taiwan, South Korea and China. 

Rather than relying on a single company, investors gain access to a broad mix of semiconductor firms, hardware manufacturers and digital platform businesses that are deeply embedded in the region’s innovation engine.

For investors who feel heavily exposed to US tech, this can provide a complementary angle – capturing the “picks and shovels” of AI beyond American borders.

The Foolish takeaway

Every investment theme comes with risks. Emerging markets can be volatile. Currency movements, geopolitical tensions and regulatory shifts can affect returns. And questions remain about the long-term sustainability of AI-related capital expenditure.

However, AI is increasingly a global infrastructure story, not just a US equity story.

India is investing in the foundations of its next growth phase. Asia is manufacturing the hardware that powers the AI revolution.

For investors building long-term portfolios, broadening exposure beyond the US – through targeted ASX ETFs – could mean participating in a much wider slice of the next decade’s growth.

The post If AI isn’t just a US story, these 2 ETFs could benefit appeared first on The Motley Fool Australia.

More reading

• The easy way for Aussies to invest globally on the ASX
• 3 fantastic ASX ETFs that could be much bigger in 2030
• 5 ASX ETFs for new investors to buy and hold
• 3 ASX ETFs that could beat the market in 2026
• The case for emerging markets ASX ETFs strengthens: Expert

Motley Fool contributor Leigh Gant 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 small-cap stocks can come with more volatility than blue-chip companies.

However, these three ASX small-caps have drawn buy recommendations from brokers, along with price targets suggesting they could double in 12 months. 

For investors considering exposure to ASX small-caps, they may appeal.

Medallion Metals Ltd (ASX: MM8)

Medallion Metals is a minerals exploration company based in Perth, Western Australia. To the north, it has the Ravensthorpe Gold Project, comprising mineral rights yielding amounts of high-grade gold and copper. To the south, the Jerdacuttup Project is prospective for base and precious metals.

It has already rocketed 200% higher in the last year. 

Morgans is bullish this ASX small-cap can continue to grow. 

In a recent note out of the broker, Morgans said the company is now fully funded, supported by a US$50m offtake-linked financing facility with commodity trader Trafigura, removing a key development overhang. 

We maintain our SPECULATIVE BUY rating, with a price target of A$0.87ps (previously A$0.61ps).

From yesterday’s closing price of $0.42, this updated price target indicates an upside of approximately 107%. 

Qoria Ltd (ASX: QOR)

Qoria is a leading global provider of cyber safety products and services.

The ASX small-cap released its 1HFY26 result on Thursday. 

In response, the team at Bell Potter downgraded its price target to $0.60. 

However, it maintained its buy recommendation, and projects 100% upside for the stock price based on yesterday’s closing price of $0.30. 

We have reduced the multiple we apply in the EV/Revenue valuation from 6x to 4.5x given the sell-off in the tech sector since we last updated the target price in January.

There is, however, no change in the 9.1% WACC we apply in the DCF. The net result is a 20% reduction in our TP to $0.60 which is still double the share price so we maintain our BUY recommendation.

Trajan Group Holdings Ltd (ASX: TRJ)

Trajan is a developer and manufacturer of analytical science instruments, devices and solutions, focusing on accessing specialist skills and capabilities that improve the analytical workflow of the global life sciences industry. 

The company released its 1H26 result on Thursday. 

Speaking on the results, the team at Bell Potter said: 

TRJ’s 1H26 result was a tale of two discrete quarters. Q1 was impacted by a combination of a slowdown in the Pharma and Food sectors, the US Government funding freeze, and the impact of US tariffs and operational reconfiguration to adjust to the tariff environment. Q2 saw a material recovery due to a pick-up in the Pharma sector and the resumption of US Government funding to the health sector. This resulted in record revenue in Q2 at c.$45.4m and nEBITDA of c.$4.5m.

The broker reduced its price target to $1.050 as a result, and maintained its buy recommendation. 

From yesterday’s closing price of $0.565, this indicates an upside of 85.8% for this ASX small-cap.

The post 3 ASX small-caps that should be on every investor’s radar appeared first on The Motley Fool Australia.

More reading

• 2 exciting ASX shares to buy to take advantage of this huge theme rising at 15% per year
• Why Appen, Imricor, Qoria, and Xero shares are storming higher today
• ASX tech stock rockets 50% on Aura takeover deal

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 is fair to say that DroneShield Ltd (ASX: DRO) shares have been a great investment over the past 12 months.

But with its shares up around 350% during this time, the upside from here could be more limited than a year ago.

But don’t worry because there’s another ASX drone stock that could generate big returns between now and this time next year, according to Bell Potter.

Which ASX stock?

The stock that the broker is bullish on is Elsight Ltd (ASX: ELS).

It is a supplier of communication modules to drone OEMs. Bell Potter notes that the ASX stock offers advanced communication components for unmanned (aerial, ground and sea) systems through its flagship product, the Halo platform, which aggregates all available communication paths into one resilient, encrypted pipe for beyond visual line of sight (BVLOS) control, video and telemetry.

What is the broker saying?

Bell Potter highlights that Elsight delivered a full-year result that was a touch softer than expected. This was driven by higher than expected costs. It explains:

ELS (pre) reported revenue growth to $22.8m. Gross margin came in at 76.5% (BPe 76.3%). Opex of $9.6m was higher than BPe of $8.7m driven by stronger than expected share-based payments. Underlying EBIT was $7.5m (12% miss vs. BPe). ELS reported statutory NPAT of $7.5m which included favourable tax loss carry forwards offset partially by a $1.8m negative FX movement. Adjusting for these items, Underlying NPAT was $6.1m, $0.7m lower than BPe.

However, the broker remains positive and has still upgraded its earnings estimates for the coming years. It also believes that a further upgrade could be due in time. Bell Potter explains:

We have revised EBIT +22%/+11%/+1% over CY26/27/28e, reflecting a higher Hardware revenue growth rate in CY26e partially offset by higher opex assumptions. We have raised revenue on reduced conservatism with regard to the likelihood of repeat orders from the European drone defence OEM, ELS’ key customer in CY25.

If the current pace of orders from this customer continues then our revenue forecast will likely be upgraded further. In turn, we acknowledge the level of customer concentration embedded in our forecasts and as a result have raised WACC to 12.0% (prev. 9.8%), to account for the inherent risks of customer concentration.

Big potential returns

According to the note, Bell Potter has retained its buy rating on the ASX stock with an improved price target of $5.80 (from $5.50).

Based on its current share price of $4.51, this implies potential upside of almost 30% for investors over the next 12 months.

The broker concludes:

We believe ELS has developed a market leading product that is fully leveraged to the emerging use of unmanned systems in both a defence and commercial context. In CY26e, we expect ELS to be a beneficiary of downstream demand from global defence departments, supporting our 115% hardware sales revenue growth estimate.

The post Forget DroneShield shares, this ASX drone stock could rocket 30% appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Accent Group, DroneShield, IDP Education, and Sigma shares are jumping today
• Why are Droneshield shares flying 8% higher today?
• DroneShield wins $21.7m in western military contracts
• Here are the top 10 ASX 200 shares today

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 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.

ASX healthcare stock Saluda Medical Inc (ASX: SLD) has endured a rough 12 months. 

So far in 2026, its share price is down 24%. 

However it appears the tide could be turning after the company posted its H1FY26 result yesterday. 

The stock price soared 9.6% higher following the release. 

Here’s what the company reported. 

H1 FY26 Results

Saluda Medical Inc is a commercial-stage medical device company focused on developing treatments for chronic neurological conditions using its novel neuromodulation platform. 

It is currently a single-product company, centred around its differentiated SCS product called the ‘Evoke System‘. 

Yesterday the ASX healthcare stock reported: 

• International revenue of US$11.0 million (+27% vs pcp)
• Acceleration in global revenue growth (+ 17% vs prior corresponding period (pcp) to US$39.4 million), driven by increase in US trained sales reps and active physicians
• US implanted patient growth of 17% vs pcp, driven by an increase in active implanting physicians. 

Commenting on the release, Saluda’s Chief Executive Officer, Barry Regan, said: 

We are pleased with the momentum within the first six months of FY26. We saw continued growth in the active implanting physician base and remain confident in our ability to build the size and quality of our sales force as planned heading into the new calendar year. 

Our team continues to be focused on execution and driving the organisation in line with our growth strategy. Our first half performance gave us the confidence to previously increase our FY26 revenue guidance. 

Additionally, we expect to improve on our other key FY26 financial metrics of gross margin, adjusted EBITDA, and cash used in operations. 

Buy recommendation for this ASX healthcare stock

Following the result, the team at Bell Potter reiterated its buy recommendation on the ASX healthcare stock. 

In a report yesterday, the broker said the stock is trading at undemanding multiples of <1x EV/Revenue and ~1.5x Price/Revenue based on its FY27 forecast, with expected growth of +25% in 2H26, mostly driven by the US. 

Management have so far demonstrated strong execution slightly ahead of the plans laid out at the time of the IPO.

Bell Potter has a 12 month price target of $2.70 on this ASX healthcare stock. 

From yesterday’s closing price of $1.085, this indicates a potential upside of 148.8%. 

Bell Potter isn’t the only broker with a positive outlook.

Earlier this month, Morgans put a speculative buy rating and $3.07 price target on its shares.

That indicates a potential upside of 182%. 

The post Is this ASX healthcare stock a buy, hold or sell after jumping 10% on earnings results? appeared first on The Motley Fool Australia.

More reading

• Morgans names 3 exciting small cap ASX stocks to buy now
• Is this ASX healthcare stock a buy after yesterday’s 5% drop?

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

The WiseTech Global Ltd (ASX: WTC) share price soared in response to the release of its FY26 first-half result. Experts think the ASX tech share can rise a lot more from where it is right now.

The logistics software provider reported that its revenue grew 76% to US$672 million thanks to the e2open acquisition, the operating profit (EBITDA) grew 31% to US$252.1 million underlying net profit rose 2% to US$114.5 million and statutory net profit fell 36%.

Profitability declined because of costs relating to acquiring e2open, but the business announced a plan that could lead to a headcount reduction of up to 50%, or around 2,000 roles, which could reduce costs.

Let’s take a look at what experts from UBS thought of the report.

Ongoing strong revenue growth

After WiseTech’s recent commercial model change, UBS thinks there are four key drivers for the business that could deliver a compound annual growth rate (CAGR) of 18% over the next three years.

First, UBS is expecting 4% volume growth from a mixture of new and existing customers.

Second, the broker is assuming price growth of 6%.

Third, UBS forecasts a 4% CargoWise value pack (CVP) uplift on the remaining 5% large freight forwarders (FF), representing 30% of CargoWise’s revenue.

Fourth, it expects a container transport optimisation (CTO) contribution of 4%.

The broker thinks that CTO could be the “key swing factor” because of the large total addressable market, which could be somewhere between $4 billion to $20 billion.

UBS highlighted that WiseTech noted the complexity and newness of the CTO product, which is “likely to take time to drive broader adoption, with the company focused on their implementation with ACFS in Aus as proof of concept.”

Thoughts on the job cuts

UBS noted that WiseTech’s job cuts are largely being driven by AI efficiencies.

But, the company had more than tripled its workforce over the last three years as it had retained a large number of tech-related employees from acquisitions, particularly Blume and Envase, amid the competition for tech talent over the last few years.

UBS said it’s conservatively assuming around $200 million of underlying cost reductions by FY27.

Is the WiseTech share price a buy?

The broker certainly thinks the ASX tech share is a buy, with a price target of $89. That implies a possible rise of approximately 80% over the next 12 months, if UBS is right.

UBS wrote:

We viewed WTC’s 1H26 results positively and reiterate Buy: i) WTC highlighted its AI moat being data, integrations with key ecosystem partners, and agentic AI workflows; ii) commercial model change driving price uplift into 2H26.

WTC also signed 2 new large FF rollouts on CVP, and current conversations with large contracted FF to move to CVP appears positive. We continue to remain positive on the growth outlook for WTC and its defensiveness against AI disruption but we see incremental risks on a lower ramp of CTO over medium term.

The post Why this expert thinks the WiseTech share price can rise 80% in the next 12 months appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Flight Centre, WiseTech, and Woolworths shares
• Why WiseTech Global shares could rise a further 70%
• What are the experts saying about Domino’s Pizza, Wisetech, and Woolworths shares?
• Why ASX tech shares still deserve a place in your portfolio in 2026
• 5 things to watch on the ASX 200 on Thursday

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