Author: openjargon

Atomic Eagle Ltd (ASX: AEU) isn’t one of the better-known names in the ASX uranium sector, and there’s a good reason for that.

The company in its current form only came into being in November last year via a reverse takeover, when GoviEx Uranium was folded into what was then Tombador Iron.

African focus

Atomic Eagle’s flagship project is the Muntanga uranium project in Zambia, which it released a feasibility study for in March.

That study included a maiden ore reserve of 39.6 million pounds of uranium and estimated the project had enough ore reserves to support a 12 year mine life.

It was estimated the mine would cost US$282 million to build and have a payback period of 3.5 years.

The company also said “resource growth will underpin an increased production throughput to significantly enhance the project’s economic outcomes”.

To that end the company announced in April it had started a 30,000m drilling campaign across three priority target areas, designed to increase the mineable resource.

The company said it had multiple rigs working on the program.

Atomic Eagle Chief Executive Officer Phil Hoskins said at the time:

Having already demonstrated the success of our initial exploration program that saw the resource increase by 24% to 58.8Mlbs U3O8 within 3 months of owning the Project, we are excited to commence a 30,000 metre program where we will be testing several high priority exploration targets. Our strategy is to grow the resource to underpin a significantly larger mining operation than that contemplated in the previous feasibility study2. With two rigs drilling and numerous walk-up drill targets, we believe there is great potential to expand upon the existing resource.

Shares looking cheap

Shaw and Partners this month initiated coverage of Atomic Eagle with a buy recommendation.

They point out that the project is in a mining-friendly country.

Zambia has long been one of Africa’s most established mining jurisdictions, underpinned by over a century of commercial copper production, a legal framework rooted in English common law, and a government that has consistently recognised mining as the cornerstone of economic development.

They also note that Atomic Eagle has expansion possibilities, with an option to buy the early-stage Sitwe project in the north east of Zambia.

They added:

Atomic Eagle also has a potential interest in the Madaouela Uranium Project in Niger which had its licence revoked in 2024. We do not include any value for the project in our Atomic Eagle price target of $1.40 per share. However, there is the possibility that Atomic Eagle and the Niger Government reach an agreement with the project returned.

Shaw and Partners’ $1.40 target price is well above the current Atomic Eagle share price of 39 cents.

The company is valued at $152.8 million.

The post This under the radar uranium stock could more than triple Shaw and Partners says appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• ASX 200 rises as inflation surprise leaves investors with one big question
• ASX 200 jumps as April’s inflation print eases RBA interest rate pressures
• Endeavour Group unveils strategy update and $300m cost savings drive

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

The Australian share market is not having one of its better years.

That does not mean there are no strong returns available. It may simply mean investors need to widen the lens.

For many Australian investors, the first step beyond the ASX is usually the United States. That makes sense. The US remains the world’s largest economy and is home to many of the companies most closely linked to artificial intelligence, including Nvidia, Alphabet, and Micron.

The iShares S&P 500 ETF (ASX: IVV) has been one of the simplest ways for ASX investors to get that exposure. The fund seeks to track the performance of the S&P 500 Net Total Return Index in Australian dollars, before fees and expenses.

However, the US is not the only place benefiting from the next wave of global growth.

Closer to our shores, some country-specific ASX ETFs have been racing ahead of both the Australian market and the S&P 500 Index (SP: .INX). Two standout examples are the BetaShares Japan ETF – Currency Hedged (ASX: HJPN) and the iShares MSCI South Korea ETF (ASX: IKO).

The Vanguard Australian Shares Index ETF (ASX: VAS) remains a useful broad exposure to Australian shares. Yet over the past 12 months, HJPN and IKO have shown how powerful it can be to think globally.

Japan is back on the radar

The HJPN ETF has gained more than 53% over the past year.

The fund gives investors exposure to a diversified portfolio of large, globally competitive Japanese companies, while hedging currency exposure back into Australian dollars. BetaShares lists HJPN in the global shares category and notes its Japan focus and currency-hedged structure.

Japan has become one of the more interesting markets in the world for long-term investors.

After decades of deflation and lacklustre investor interest, the country is seeing a mix of catalysts emerge. Inflation has normalised, companies are being pushed to improve corporate governance, and more Japanese businesses are focusing on dividends, buybacks, and stronger capital allocation.

That is not just attracting retail ETF money.

Warren Buffett’s Berkshire Hathaway has also increased its exposure to Japanese companies. The appeal appears to be a combination of compelling valuations, strong balance sheets, and more efficient use of capital.

In other words, Japan is not just a short-term trade. It may be a structural reappraisal of an overlooked market.

Korea is riding the AI supply chain

If Japan has been strong, South Korea has been explosive.

The IKO ETF has surged around 200% over the past 12 months, helped by massive gains in Korean semiconductor stocks.

BlackRock says IKO provides exposure to large and mid-sized companies in South Korea and can be used to express a single-country market view.

The key driver has been simple: artificial intelligence needs memory chips.

IKO has heavy exposure to Samsung Electronics and SK Hynix, two global leaders in memory semiconductors. These companies sit deep inside the AI infrastructure buildout, powering data centres, cloud computing, and high-performance computing demand.

This is where the phrase “skate to where the puck is going” matters.

Australian investors can own banks, miners, supermarkets, insurers, and infrastructure companies at home. Many of those businesses are excellent. But the ASX is light on the deepest parts of the AI supply chain.

Korea offers exposure to a very different part of the global economy.

The bigger lesson for ASX investors

The point is not that investors should chase the strongest ETF of the past year.

That can be dangerous. A fund that has surged 50%, 100%, or 200% can easily pull back. Country-specific ETFs can also be more concentrated than broad-market index funds.

However, the bigger lesson is important.

A diversified portfolio does not have to mean owning only the largest companies in Australia. It can mean owning baskets of countries, sectors, and themes that give investors exposure to where global earnings may be heading next.

The ASX remains a sensible starting point. The US remains a powerful global engine.

However, the Japanese and South Korean markets show that the investment world is far bigger than our own backyard — and far broader than the biggest names on Wall Street.

The post These 2 top performing ASX ETFs show why investors should look beyond Australia and the US appeared first on The Motley Fool Australia.

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• Here are the 3 best performing iShares ASX ETFs over the last year
• After surging nearly 200%, is this the best ASX ETF in 2026?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Berkshire Hathaway, BlackRock, Micron Technology, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Berkshire Hathaway, Nvidia, 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.

Here is a question worth asking.

When a hospital buys AI diagnostic software, when a bank deploys a new cybersecurity platform, or when a business installs a new data centre rack, who actually makes that transaction happen?

Not the software company, nor the hyperscaler.

The answer, in Australia and New Zealand, is often Dicker Data Ltd (ASX: DDR).

The Sydney-based technology distributor sits in the middle of the entire AI infrastructure supply chain, connecting more than 10,000 reseller partners with the world’s leading technology vendors.

It is an unglamorous position, but also an extraordinarily promising one.

What happened at the AGM this week

Dicker Data jumped 8% on Wednesday after AGM commentary confirmed the strong FY26 momentum investors had been hoping for.

Unaudited gross revenue for the first four months of FY26 rose 13.4% to $1.27 billion. Net profit before tax jumped 45.5% to $47.3 million.

Management attributed the result to elevated endpoint demand, software growth, and data centre refresh activity across enterprise customers.

CEO and Executive Chair Fiona Brown said those drivers were accelerating rather than slowing, pointing to further growth ahead.

That is a meaningful upgrade to sentiment for a stock that had been down 6% in 2026 before Wednesday’s session.

A new growth vector that many investors have missed

On 21 April 2026, CrowdStrike announced an expansion of its Managed Security Service Provider strategy across Japan and Asia Pacific, naming Dicker Data as a key distributor to onboard and support MSSPs delivering AI-driven Falcon platform security to small and medium-sized businesses.

This appointment deepens Dicker Data’s role from hardware distributor to a recurring, higher-margin cybersecurity services platform, capturing a slice of CrowdStrike’s extraordinary momentum.

CrowdStrike itself just reported its best year on record, with its founder and CEO George Kurtz stating:

As enterprises rapidly adopt AI, CrowdStrike is mission-critical infrastructure. The AI revolution is creating a massive growth opportunity, one that our technology, team, and ecosystem are well positioned to continue winning.

Every dollar of that CrowdStrike growth in Asia Pacific now flows partly through Dicker Data’s distribution network.

The macro backdrop is supportive

Gartner projects Australian IT spending to reach $172.3 billion in 2026, up 8.9% year on year.

Every dollar of enterprise AI spending in Australia creates demand for the hardware, software licences, and infrastructure products that Dicker Data distributes.

The Windows 10 end-of-life refresh cycle is also adding a meaningful volume tailwind as businesses replace ageing endpoints with AI-capable hardware.

The valuation and risks

Dicker Data trades on a price-to-earnings (P/E) ratio of approximately 20 times, a material discount to the peer average of 41 times for technology distributors globally.

Jarden carries a buy rating with an $11 price target, while Wilsons Advisory is overweight with an $11.07 target, both implying meaningful upside from the current price of around $9.64.

The stock pays fully-franked quarterly dividends, with a trailing yield of approximately 4.7%, adding an income dimension that is rare among technology stocks.

The main risk is margin pressure.

Dicker Data operates on thin margins of approximately 3.3%, and a shift toward larger, more competitive enterprise deals has squeezed profitability even as revenue has grown.

Any slowdown in enterprise AI spending would hit volumes quickly.

Foolish Takeaway

Dicker Data is an exciting ASX tech stock.

The company sits at the intersection of every AI transaction in Australia and New Zealand and takes a margin on each one.

As Australian enterprise AI spending accelerates toward $172 billion, that position looks increasingly valuable.

At 20 times earnings with a 4.7% fully-franked yield, this ASX tech stock is priced like a mature distributor rather than a beneficiary of one of the biggest technology investment cycles in history.

The post This ASX tech stock could be one of the most overlooked AI infrastructure plays on the market appeared first on The Motley Fool Australia.

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• 3 ASX shares riding the data centre boom that investors keep overlooking
• ASX 200 rises as inflation surprise leaves investors with one big question
• This ASX tech share is rocketing 8% after a big AGM update
• 2 buy-rated ASX dividend shares to buy for 4% to 5% yields
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Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CrowdStrike. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Gartner. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended CrowdStrike. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Yesterday was a good day for Australian investors.

The April CPI print showed headline inflation slowing to 4.2% annually, below the 4.4% consensus forecast.

The ASX 200 rose 0.69%, helped by rate-sensitive ASX financial stocks.

But before investors get too comfortable, there is a more complicated story buried in the data.

The number that actually matters moved the wrong way

The RBA does not set monetary policy based purely on headline CPI.

It focuses on trimmed mean inflation, which strips out the most volatile price movements to reveal underlying price momentum.

Yesterday’s data showed trimmed mean inflation rising to 3.4% annually, its highest reading since late 2024.

The RBA’s target band is 2% to 3%.

Trimmed mean inflation is not just above that band, but actually rising.

The headline undershoot was driven almost entirely by the government’s temporary fuel excise reduction, which pushed automotive fuel prices lower.

That relief unwinds in July, at which point headline CPI will face direct upward pressure.

According to Westpac’s economics team, trimmed mean inflation is forecast to remain above 3% until end-2027, with the cash rate on hold until 2028 when the RBA is expected to begin cutting.

So why did the market rally?

Markets were bracing for something worse.

March CPI came in at 4.6%, and with oil prices having surged above US$105 per barrel in April, many economists feared a worse outcome.

The April print was a relief relative to those fears, even if it was not good news in absolute terms.

The probability of a June rate hike has now receded to near zero, and that removal of near-term tightening risk was enough to send rate-sensitive stocks sharply higher.

What it means for Commonwealth Bank

For Commonwealth Bank of Australia (ASX: CBA), the inflation picture cuts both ways.

Higher rates for longer support net interest margins, which is good for earnings.

But elevated rates also increase the risk of mortgage stress across CBA’s enormous home loan book.

CBA declared a fully franked interim dividend of $2.35 per share for the first half of FY2026, up 4.4% year-on-year, backed by a 5% lift in statutory net profit to $5.41 billion.

That result was delivered in a high-rate environment, underscoring CBA’s ability to generate strong earnings even when conditions are tight.

The stock trades at approximately 27 times forward earnings, a premium that reflects its quality but leaves little room for disappointment if credit conditions deteriorate.

What it means for Mirvac

For Mirvac Group (ASX: MGR), the implications are more direct.

Property trusts are acutely sensitive to interest rates because higher rates increase borrowing costs and compress asset valuations simultaneously.

The removal of a June hike from market pricing was the primary driver of yesterday’s rally in rate-sensitive ASX financial stocks, and Mirvac was a clear beneficiary.

However, with trimmed mean inflation moving higher and the fuel excise unwind arriving in July, the path to rate cuts remains distant.

If Westpac’s forecast of a late 2027 return to target proves correct, Mirvac and its REIT peers face another eighteen months of elevated rates before meaningful relief arrives.

The good news is that Mirvac is not simply waiting for rates to fall.

Residential sales lifted 38% year on year in the first half of FY2026, and the federal budget’s new-build negative gearing exemption adds a further demand tailwind for its development pipeline.

Foolish takeaway

Yesterday’s inflation news was better than feared, without being great.

The headline number was flattered by a temporary fuel excise cut that disappears in July, and the trimmed mean measure the RBA actually watches moved higher.

For investors in ASX financial stocks like CBA and Mirvac, the removal of a near-term rate hike is welcome news.

But the path to rate cuts remains long, and the inflation fight is far from won.

The post Investors are celebrating yesterday’s inflation news. Here’s how it might impact ASX financial stocks appeared first on The Motley Fool Australia.

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• This ASX bank ETF has a 5.2% dividend yield right now
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• CBA shares rebound 7%: Is the banking giant a buy, sell or hold?

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

Here is a fact that would have seemed extraordinary just five years ago.

In the first half of FY 2026, copper earnings at BHP Group Ltd (ASX: BHP) exceeded iron ore contributions for the first time in the company’s history.

Copper now accounts for more than 50% of group earnings.

BHP is no longer primarily an iron ore company.

And that matters enormously for how investors should think about its valuation.

The share price run has been remarkable

BHP shares are up 34% year to date and 58% over the past twelve months.

This has pushed the share’s market cap above $300 billion.

Resultantly, BHP has reclaimed its position as Australia’s largest listed company from Commonwealth Bank.

The run has been driven by copper, which has surged approximately 43% over twelve months to US$13,588 per tonne.

That already exceeds Goldman Sachs’ ambitious 2026 target of US$11,200 per tonne.

Why copper demand is not slowing down

Electric vehicles require significantly more copper per unit than petrol cars.

AI data centres demand up to 50,000 tonnes of copper each for wiring, cooling, and grounding.

Grid infrastructure upgrades globally require enormous new copper investment.

These long-term tailwinds compound year after year, and new copper mines take 15 to 20 years to develop.

Supply simply cannot respond quickly enough to meet what the market needs.

BHP plans to grow copper-equivalent production at 3% to 4% per year through 2035, adding to one of the world’s most valuable copper portfolios at exactly the right moment.

The company also committed more than US$550 million to expand its Olympic Dam copper mine in October 2025, reinforcing that commitment with capital.

Morgan Stanley is still bullish on BHP shares

After a 56% run, the question investors are asking is obvious: Has the easy money been made?

Morgan Stanley does not think so.

The broker carries an overweight recommendation on BHP shares with a price target of $67.50, implying further upside from current levels.

The bull case rests on copper demand outpacing supply for the foreseeable future, iron ore generating the cash flow to fund growth, and the Jansen potash project adding a third major earnings pillar that most analysts have not yet fully priced in.

But what about the risks?

BHP is a commodity company and commodity prices can fall as fast as they rise.

After a 58% gain, the margin of safety is narrower than it was twelve months ago.

A slowdown in Chinese industrial demand remains the key risk to watch.

Investors buying today are paying for a future that still needs to unfold.

Foolish Takeaway

BHP shares are not cheap.

But the company is in the middle of an identity shift, from iron ore giant to copper-led global miner.

That shift is being driven by forces that are measured in decades, not quarters.

For patient investors who can hold through commodity volatility, BHP shares look like they could continue compounding over the long term.

The post Why BHP shares hitting a fresh all-time high could be just the beginning appeared first on The Motley Fool Australia.

More reading

• BHP shares near 52-week high, but China just made things more complicated
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• Is now a good time to buy and hold BHP shares?
• Why a weak US dollar could be the best thing that happens to ASX resource stocks in 2026

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

Yesterday, three ASX shares soared between 7% and 13% higher on positive news. 

For comparison, the S&P/ASX 200 Index (ASX: XJO) rose roughly 0.7%. 

Let’s see what was behind the massive jump and what experts are anticipating moving forward. 

Vista Group International Ltd (ASX: VGL)

Vista Group engages in the sale, support, and associated development of software for the film industry.

Yesterday, its share price shot almost 13% higher on the back of a key announcement.

Vista Group announced that Cinemex has signed a five-year agreement to move its Mexico cinema operations back onto Vista’s software platform. 

The rollout will begin during 2026 and follows the successful transition of Cinemex’s US cinemas to Vista’s systems in 2025. Cinemex is the second-largest cinema operator in Mexico, with more than 2,800 screens across 289 locations.

Speaking on the deal, Vista Group CEO, Stuart Dickinson, said: 

We are delighted to welcome Cinemex back to Vista Group and to empower their team with our market leading solutions, including Vista Cloud’s Digital Empowerment capability.

Following the 13% share price rise, investors may be wondering if there is any more upside for these ASX shares. 

Recent estimates from brokers indicate there is. 

Shaw and Partners recently placed a price target of $3.70 on Vista Group shares. 

That indicates a further 72% upside. 

Austal Ltd (ASX: ASB)

Austal shares soared nearly 8% higher yesterday, rebounding after a tough start to 2026. 

It is an Australian-based shipbuilder that specialises in the design, construction, and support of defence and commercial vessels globally.

It seems investors have woken up to the value in the company after it tumbled more than 30% year to date despite strong contract momentum. 

This ASX defence stock appears to be well positioned to benefit from rising global defence spending, and appears to have plenty more upside. 

It closed yesterday at $4.25 per share, significantly below its yearly high of over $8 per share. 

Broker targets have been placed around $6.94 for this ASX defence stock, indicating a further upside of 63%. 

Megaport Ltd (ASX: MP1)

Megaport shares gained nearly 9% yesterday. It seems investors and brokers have been looking at the software-defined network (SDN) service provider with renewed optimism. 

Catalysts for the rise could be the major contract wins from the company’s newly acquired Latitude.sh business. 

Following yesterday’s gain, Megaport shares closed at $14.98. 

Unfortunately, it appears much of the upside is now priced in for these ASX shares. 

Ord Minnett recently placed a price target of $14.50 on the company, while Morgans has a price target of $15.50. 

The post These ASX shares shot higher this week – can they keep rising? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Megaport and Vista Group International. 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 numbers are staggering.

Amazon Web Services will invest $20 billion in Australian data centres by 2029.

Microsoft went further, committing $25 billion to Australian AI and cloud infrastructure.

This is the largest single corporate technology investment in the Australia’s history.

Yet three ASX-listed companies sitting directly in the path of that investment remain surprisingly under-owned by retail investors.

Goodman Group (ASX: GMG)

The data centre story starts with land, power, and location.

Goodman Group controls all three.

The industrial property giant has transformed itself from a logistics warehouse owner into one of the most important data centre developer in the Asia-Pacific region.

Data centres now make up 73% of Goodman’s development pipeline.

This is on track to reach $18 billion by June 2026, up from $14.5 billion at 31 March.

The company has assembled a power bank of 6.4 gigawatts across its global network, a resource that has become extraordinarily difficult to replicate as power access emerges as the key constraint on data centre expansion worldwide.

Morgans this week retained its buy rating on Goodman with a $36 price target, highlighting that its work in progress is expected to be ahead of consensus forecasts at the end of June.

Crucially, Morgans noted that management believes industry data centre capital expenditure requirements likely exceed global capital market funding capacity.

This view points to a sustained period of pricing power for those who already hold secured power, sites, and locked-in capital partners.

Goodman is positioned beautifully here.

NextDC Ltd (ASX: NXT)

If Goodman builds the shells, NextDC Ltd operates what goes inside them.

The company is Australia’s largest independent data centre operator, providing colocation, cloud connectivity, and managed services to enterprises, cloud providers, and government agencies across 14 facilities nationally.

In the first half of FY2026, NextDC reported net revenue growth of 13% to $189.2 million, with contracted utilisation surging 137% to 416.6MW and a forward order book of 296.8MW expected to convert into revenue through to FY2029.

Management guides billing utilisation to grow 2.7 times by FY2027 and 3.4 times by FY2028, underpinned by its existing forward order book of contracted but not yet billed capacity.

NextDC has raised its FY2026 capital expenditure guidance to between $2.7 billion and $3.0 billion, up from $2.4 billion previously.

Contracted utilisation surged 60% to 667MW in the March 2026 quarter alone, driven by massive wins at its S4 Sydney development

A compounded annual growth rate in operating earnings of more than 40% is expected between FY2025 and FY2028 as that contracted capacity converts to revenue.

Dicker Data Ltd (ASX: DDR)

The third name in this list is the least obvious but arguably the most interesting from a valuation standpoint.

Dicker Data is Australia’s largest technology distributor, connecting more than 10,000 reseller partners with leading technology vendors across hardware, software, cybersecurity, and AI infrastructure.

Every data centre that gets built creates demand for the racks, servers, networking equipment, and software licences that Dicker Data distributes.

For the first four months of FY2026, Dicker Data reported gross revenue growth of 13.4% to $1.27 billion and a 45.5% jump in net profit before tax to $47.3 million.

This was driven by elevated data centre refresh and AI infrastructure demand.

Despite that momentum, Dicker Data trades on approximately 20 times earnings.

This is a steep discount to the global technology distribution peer average of 41 times.

As a result, the company pays a fully franked quarterly dividend yielding approximately 4.7%.

Jarden carries a buy rating with an $11.00 price target, implying good upside from current levels.

The risks

None of these three ASX shares are risk-free.

Goodman and NextDC both carry significant capital expenditure commitments and are sensitive to interest rate movements given their asset-heavy models.

Dicker Data operates on thin margins and is exposed to any slowdown in enterprise technology spending.

All three have already run hard in recent years, which limits the margin of safety at current prices.

Foolish takeaway

The data centre boom is happening right now, with $25 billion of committed investment flowing into Australian digital infrastructure over the next five years.

Goodman owns the land and the power, NextDC operates the facilities, and Dicker Data distributes the technology that fills them. For investors who believe AI-driven data centre investment will keep accelerating, all three of these ASX shares deserve serious attention.

The post 3 ASX shares riding the data centre boom that investors keep overlooking appeared first on The Motley Fool Australia.

More reading

• This ASX tech stock could be one of the most overlooked AI infrastructure plays on the market
• 2 of the best ASX 200 shares to buy and hold for 10 years
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• Top brokers name 3 ASX shares to buy now
• This ASX tech share is rocketing 8% after a big AGM update

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Goodman Group, and Microsoft. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Amazon, Goodman Group, and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

GenusPlus Group Ltd (ASX: GNP) shares have been incredible performers over the past 12 months.

During this time, the ASX stock has risen by a whopping 200%.

But if you thought it was too late to invest, think again!

That’s because Bell Potter believes there’s still plenty more upside for its shares from here.

What is this ASX stock?

GenusPlus Group is an Australian infrastructure services provider specialising in the end-to-end design, construction, and maintenance of electrical transmission networks, substations, battery energy storage systems, and telecommunications infrastructure.

It has just announced a binding agreement to acquire MPC Kinetic (MPK), which is an Australian infrastructure and energy services provider. It primarily operates in the onshore gas, water, and renewable energy sectors.

Bell Potter is positive on the deal and highlights its attractive transaction metrics. It said:

Assuming MPK achieves its maximum earn-out hurdle, GNP will purchase MPK for 5.7x FY27 EBIT (vs Industrial Services peer group average of 13.1x and GNP’s pre-acquisition multiple of 17.7x). GNP’s pro forma leverage is expected to be 0.39x EBITDA (assuming total consideration settled). FY26 EPS(A) accretion is forecast to be 45-53% based on the earn-out limits.

It also highlights that the transaction gives the ASX stock exposure to the attractive Australian domestic gas and LNG markets. It adds:

Strategic rationale: 1) Diversifies GNP’s end-market exposures; 2) provides entry into the attractive Australian domestic gas and LNG markets, which are anticipated to be short supply in the long-term; and 3) MPK’s Civil Balance of Plant (CBOP) services are complementary to GNP’s Electrical Balance of Plant (EBOP) capabilities, enabling GNP to deliver a holistic service offering in the renewable energy sector.

Buy rating

According to the note, the broker has responded to the news by retaining its buy rating on the ASX stock with an improved price target of $12.00 (from $10.50).

Based on its current share price of $10.10, this implies potential upside of approximately 19% over the next 12 months.

And while dividends are expected to be paid over the period, the forecast dividend yield is only a modest 0.6%.

Overall, Bell Potter is a fan of the transaction to acquire MPK and sees upside risk to consensus estimates. It concludes:

The MPK acquisition is strategically compelling. GNP is well positioned to capitalise on rising spend in the onshore gas, renewable energy and water infrastructure sectors. GNP’s NTM PE of 19.2x is undemanding. We continue to see further upside to consensus earnings expectations driven by potential contract awards for large transmission developments and further accretive acquisitions.

The post Up 200%! Is it too late to buy this ASX stock? Bell Potter says it isn’t 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 GenusPlus Group. The Motley Fool Australia has recommended GenusPlus Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you hunting big returns? If you are, then it could be worth considering the ASX share in this article.

That’s because if Bell Potter is on the money with its recommendation, it could rise by 180% over the next 12 months.

Which ASX share?

The share that Bell Potter is recommending to clients is Trajan Group Holdings Ltd (ASX: TRJ).

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

Bell Potter notes that the ASX share has released a trading update this month, which reveals that earnings are forecast to be lower than originally expected due to currency headwinds. It said:

Due to the strengthening AUD against the USD (c.7%) and EUR (c.8%) since 1H26, TRJ has advised that revenue and nEBITDA are likely to be impacted by c.$4m and c.$2m respectively. Operating conditions seem to be tracking in line with expectations set out at 1H26 result, but translation effects are likely to impact the FY26 result.

The vast majority of TRJ’s sales are generated outside Australia, but COGS are c.50% domiciled outside Australia, which means there is not a natural hedge in TRJ’s operational structure. This gap has been narrowing over several years, but translation effects can still be material to earnings.

It also notes that cost saving initiatives are in progress, including a reduction in its headcount, and a new enterprise resource planning (ERP) platform is being implemented. It adds:

TRJ noted headcount reductions are in progress, achieving c.$0.8m in cost savings in 2H26. Rationalisation of the global footprint is also in progress, particularly in reducing ongoing facility costs in the Connecticut operation. A new ERP program is being implemented in 2H26 to aid in supply chain management and improve efficiency. In this transition phase there is a risk that the timing of CE shipments could be impacted that could affect revenue recognition in 2H26. This is not included in the revenue adjustment advised to the market.

Should you invest?

Despite the disappointing update, Bell Potter remains positive and sees significant value in its shares. This is even after taking an axe to its valuation.

According to the note, the broker has retained its buy rating with a reduced price target of 75 cents (from $1.05). Based on its current share price of 26.5 cents, this implies potential upside of 180% for investors over the next 12 months.

However, the broker has warned that it may take a material improvement in its margins to drive its shares meaningfully higher. It concludes:

Our Target Price has reduced by c.27%. The Target Price reflects a 50 / 50 blend of a DCF valuation and EV/EBITDA multiple. A number of downgrades to estimates over time has instigated an increase in our DCF assumptions with the WACC increased 100bp to 13.5% and the EV / EBITDA multiple reduced from 10x to 7x. We don’t see a change in investor sentiment until TRJ can materially turnaround its margins.

The post Leading broker says this ASX share could rise 180% 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.

Eagers Automotive Ltd (ASX: APE) shares have been on form over the past 12 months.

During this time, the ASX 200 share has risen by a sizeable 33%.

As a comparison, the S&P/ASX 200 Index (ASX: XJO) is up 3.8% over the same period.

Can the auto retailer’s shares continue to rise? Let’s see if Bell Potter rates the company as a buy, hold, or sell.

What is the broker saying?

Bell Potter notes that the company has held its annual general meeting this week and provided a trading update.

The broker was relatively pleased with what the ASX 200 share reported. It said:

Eagers held its AGM today and as usual provided a four month trading update to the end of April. The key points were: 1. Turnover is up c.5% on pcp; 2. Order intake is at record levels and orders taken in the first four months have exceeded deliveries by 29%; and 3. The independent used car businesses of easyauto123 and Carlins have had a record start to the year with PBT up 40% on pcp.

The company also provided an outlook for 1H2026 and said it expects underlying operating PBT for the core business (i.e. Australia and New Zealand) to be “in line with, or slightly ahead of” 1H2025. On top of this there will be two months contribution from CanadaOne Auto and this will result in “a record first half at a consolidated level”. Eagers then also said the outlook for 2H2026 is positive with an expected uplift in deliveries, supported by improved Toyota supply. The second half will also benefit from a full six month contribution from CanadaOne and positions the company “for a record year in 2026”.

The broker has reduced its earnings estimates slightly, due to “a 1-2% reduction in our revenue forecasts and also a modest decrease in our margin assumptions.”

Should you buy this ASX 200 share?

According to the note, the broker has responded to the update by retaining its buy rating on Eagers Automotive shares with a trimmed price target of $28.75.

Based on its current share price of $22.76, this implies potential upside of 26% for investors over the next 12 months.

In addition, a 3.5% dividend yield is expected over the period, boosting the total potential return to almost 30%.

Commenting on its recommendation, Bell Potter said:

There are no changes in the key assumptions we apply in each of the valuations used to determine our target price – 22.5x and 7.5x multiples in the PE ratio and EV/EBITDA and an 8.7% WACC in the DCF. The net result is a 2% decrease in our target price to $28.75 which has been driven by the earnings downgrades. This is still >15% premium to the share price so we maintain our BUY recommendation. Focus now perhaps shifts to vehicle deliveries in May and June – May should be out late next week – given these are two of the biggest months of the year and, as Eagers said, the company generates 20-25% of full year profit in these two months.

The post Does Bell Potter rate this ASX 200 share as a buy, hold, or sell? 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 recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.