Category: Stock Market

The Dyno Nobel Ltd (ASX: DNL) share price is heading south in early Monday trade despite the company releasing a significant strategic update.

At the time of writing, shares in the explosives and fertilisers company are down 3.54% to $3.27. This comes even after Dyno Nobel confirmed a major step forward in its plan to simplify the business.

The weakness appears to be more about broader market conditions than company-specific news. The S&P/ASX 200 Index (ASX: XJO) is down about 3.1% in early trading as escalating conflict in the Middle East weighs on global markets.

Let’s take a closer look at what the company announced today.

Dyno Nobel completes fertilisers separation

According to the release, Dyno Nobel has entered into a binding agreement to sell its Phosphate Hill fertiliser business. The asset will be acquired by Australian energy and resources group Mayfair.

The transaction represents the final step in Dyno Nobel’s plan to separate its fertiliser operations and focus on its core explosives business.

Under the terms of the deal, the purchase price for Phosphate Hill is nominal consideration of $1. However, Dyno Nobel could receive up to $100 million in deferred payments depending on future performance conditions.

Mayfair will assume responsibility for the operational and environmental liabilities associated with the asset from completion. The company will also take on the economic risk of running the operation from 1 April 2026.

Dyno Nobel will contribute $125.9 million in funding to support future rehabilitation obligations at the site, reflecting existing provisions already recognised on its balance sheet.

The deal is expected to complete during the third quarter of FY26, subject to regulatory approvals and other conditions.

Explosives business remains strong

While Dyno Nobel is exiting fertilisers, management highlighted that its explosives business continues to perform well.

The company said its explosives division has delivered a solid operating performance so far in FY26. It remains on track to achieve EBIT guidance of $460 million to $500 million for the full year.

Currency headwinds in the Americas are expected to be offset by stable conditions across the Asia Pacific, Europe, and Latin America regions.

Dyno Nobel Chief Executive Officer Mauro Neves said the transaction marks an important milestone for the company.

He commented:

The sale of Phosphate Hill to Mayfair is an important milestone that concludes our separation from the fertilisers business. This transaction delivers the certainty we have been working towards and allows us to fully focus on our future as a global explosives leader.

What next for the Dyno Nobel share price?

Although the share price is falling today, the broader market weakness looks to be playing a key role.

Global markets have been rattled by rising geopolitical tensions in the Middle East, prompting investors to seek safer assets and dragging equities lower.

Even with today’s decline, Dyno Nobel shares have still performed strongly over the longer term. The stock is up roughly 20% over the past 12 months.

With the fertiliser divestment largely resolved, investors will now focus on the performance of the company’s core explosives business.

The post Why this ASX stock is slipping after today’s major announcement 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.

If you are on the lookout for some investment ideas, then read on. That’s because Bell Potter has been busy picking out its best ideas for March from the smaller side of the market.

Listed below are two more ASX shares that the broker has just named as best buys for the month ahead. Here’s what it is saying about them:

Adveritas Ltd (ASX: AV1)

The first ASX share that could be a top buy this month according to Bell Potter is Adveritas.

It is a technology company that is focused on maximising the return on digital advertising spend with its TrafficGuard platform.

Bell Potter notes that it has established a dominant position in the sports betting vertical and is growing its presence in ecommerce. It said:

Adveritas is a technology company that develops software solutions for enterprise customers which help maximise the return on digital ad spend. The key product of the company, TrafficGuard, is a SaaS platform that detects and intercepts fraudulent traffic (e.g. bots) in real time which enables advertisers to reduce wasted ad spend and optimise their budgets.

The market for ad fraud software like TrafficGuard is relatively nascent but is growing rapidly and Adveritas is already a leading global player. The TrafficGuard platform is scaling rapidly, with AV1 having established a dominant position in the online sports betting vertical and a growing presence across adjacent sectors such as eCommerce.

Catapult Sports Ltd (ASX: CAT)

Another ASX share that Bell Potter is bullish on this month is sports technology company Catapult Sports.

It likes the company because of its leadership position in a market that is expected to grow from US$36 billion in 2025 to US$72 billion in 2030. Bell Potter believes this leaves Catapult Sports well-positioned to grow its subscription revenues over the remainder of the decade. It explains:

Catapult Sports is a leading global provider of elite athlete wearing tracking solutions and analytics for athlete tracking. The key target market of Catapult is elite sporting teams and organisations and the acquisition of SBG also now gives the company a presence in motorsports. The pro sports technology market is currently valued at US$36bn in 2025 and is forecast to double to US$72bn by 2030.

We view CAT as a market leader entering a stronger phase of cash generation and operating leverage, with an underpenetrated global customer base and expanding analytics suite providing a long runway for subscription growth and valuation upside.

The post Bell Potter names more of the best ASX shares to buy in March 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. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A portfolio with these 4 ASX ETFs has proven capable of weathering major market crises while still delivering strong long-term returns.

This portfolio spreads investments across thousands of companies worldwide, multiple sectors, and defensive assets while maintaining very low fees.

Many long-term Australian investors use a structure like this with multiple ASX ETFs. Let’s have a closer look.

Vanguard Australian Shares Index ETF (ASX: VAS)

This ASX ETF forms the income backbone of the portfolio.

VAS tracks the S&P/ASX 300 Index (ASX: XKO), giving investors exposure to hundreds of Australia’s largest companies. The ETF is heavily weighted toward financials and resources. They have historically been two of the most resilient sectors in the Australian economy.

Major holdings include blue-chip shares such as Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP), and CSL Ltd (ASX: CSL).

These companies generate enormous cash flows and tend to keep paying dividends even during economic downturns. This income stream, often boosted by franking credits, can be especially valuable when markets become volatile.

With a management fee of around 0.07%, this ASX ETF is also one of the most cost-effective ways to gain broad Australian market exposure.

Suggested allocation: 35%

Vanguard MSCI International Shares ETF (ASX: VGS)

This ASX ETF adds global diversification and long-term growth potential.

VGS holds more than 1,300 companies across developed markets, with strong representation in the United States, Europe, and Japan.

Its largest positions include global technology and consumer giants such as Apple Inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA).

These companies dominate global industries and possess enormous balance sheets and pricing power. Many continued expanding during past crises such as the global financial crisis and the pandemic.

This ASX ETF reduces reliance on the Australian economy while providing exposure to sectors underrepresented on the ASX, particularly global technology and innovation.

Suggested allocation: 35%

VanEck FTSE Global Infrastructure ETF (ASX: IFRA)

This VanEck ASX ETF invests in global infrastructure companies, including utilities, pipelines, transport assets, and communication towers. Infrastructure businesses tend to generate stable and predictable cash flows, which is why they are commonly used as defensive holdings in investment portfolios.

The ASX ETF tracks the FTSE Global Core Infrastructure Index and focuses primarily on utilities, energy infrastructure, and transport assets worldwide. It is currency hedged to the Australian dollar, and the management fee is around 0.20%.

Infrastructure ETFs can work well in a recession-focused portfolio because the services they provide are essential to the functioning of the economy. Revenues are often contracted or regulated. This helps provide greater predictability, and cash flows are generally more stable than those of typical equities.

Suggested allocation: 20%

BetaShares Australian High Interest Cash ETF (ASX: AAA)

The BetaShares Australian High Interest Cash ETF provides the defensive buffer.

Unlike equity ETFs, AAA invests in high-interest bank deposit accounts. This means its value tends to remain stable while generating interest income linked to Australian cash rates.

During severe market sell-offs, this allocation can reduce overall volatility. It also provides liquidity that investors can deploy into equities at lower prices.

Having a small cash allocation can also make it psychologically easier to stay invested during major market downturns.

Suggested allocation: 10%

The post 4 ASX ETFs to ride through recessions and market crashes appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, CSL, and Nvidia and is short shares of Apple. The Motley Fool Australia has recommended Apple, BHP Group, CSL, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Zip Co Ltd (ASX: ZIP) share price has suffered enormous volatility over the last six months, as the chart below shows. But, instead of being fearful, this could be the right time to look at the buy now, pay later business.

When valuations fall this hard, it can be a good idea to think about what might happen when market confidence returns.

While the market didn’t love the recent FY26 half-year result from Zip, there were a number of positives, and some analysts are optimistic about what the business can achieve in the coming years.

FY26

Broker UBS noted that the FY26 half-year result was a “slight miss” compared to estimates, but suggested that the Zip share price decline was “an overreaction, given US growth remains strong and whilst net bad debts had increased, this was not unexpected given Zip is now focusing on customer growth in the region and still within the comfort range of 1.5% to 2%.”

UBS is forecasting that US total transaction value (TTV) could grow by 38% in the second half of FY26. The broker suggests that Zip’s US growth is being driven by two things, which is ongoing growth of buy now, pay later in the US and a focus on predominantly non-discretionary verticals which are more resilient through economic cycles”

The broker estimates that its earnings per share (EPS) could rise at a compound annual growth rate (CAGR) of 30% over the next three years, which UBS thinks is attractive relative to buy now, pay later and banking peers.

Taking all of the above into account, UBS predicts that Zip’s net profit could more than double in the 2026 financial year to $112 million.

FY27

The broker predicts ongoing profit growth in the 2027 financial year for the business, which could see the company deliver net profit of $151 million in FY27.

These ongoing improvements in profit are expected to be driven by strong growth in the US. UBS predicts US TTV growth of 30% in FY27 for Zip.

FY28

Two exciting things could happen for owners of Zip shares in the 2028 financial year.

Firstly, its net profit could rise again in FY28 to $199 million.

Second, the company could start paying a dividend to shareholders, starting with an annual payout of 8 cents per share in FY28.

The broker UBS is expecting the company’s US division to deliver TTV growth of 22% in FY28.

FY29

The 2029 financial year could see the buy now, pay later business deliver even more profit progress.

UBS suggests the business could achieve a net profit of $259 million in FY29.

FY30

Finally, the business could achieve its most profitable year ever in the 2030 financial year.

The start of the 2030s could see the buy now, pay later business deliver net profit of $337 million, meaning profit may triple from the expected amount for the 2026 financial year.

The post Here’s the earnings forecast out to 2030 for Zip shares appeared first on The Motley Fool Australia.

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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 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.

Oil prices have surged as the war between the United States, Israel, and Iran intensifies across the Middle East.

Brent crude and West Texas Intermediate (WTI) crude have both climbed above the US$100 per barrel mark for the first time since 2022, triggering a strong rally across global energy markets.

The move reflects growing fears that the escalating conflict could disrupt oil supplies across one of the world’s most important energy-producing regions.

Here is what is driving the move.

Oil prices surge as conflict threatens global supply

Global oil markets have reacted strongly as the conflict in the Middle East enters its 10th day.

According to Trading Economics, WTI crude oil has jumped about 19% to roughly US$108 per barrel, while Brent crude is up around 17% to US$108 per barrel.

The rise comes as escalating military strikes between Israel and Iran raise concerns about disruptions to oil supplies across the region.

One of the biggest risks to global energy markets is the Strait of Hormuz, a narrow shipping route between Iran and Oman.

Around 20% of the world’s oil supply normally passes through this strategic waterway.

Recent reports suggest tanker traffic through the strait has slowed dramatically amid rising security threats and attacks on shipping vessels.

Some Middle Eastern producers have already begun cutting output or halting shipments, which is tightening supply in global energy markets.

With supply risks rising quickly, oil traders have pushed prices significantly higher.

The OOO share price is rocketing

The sharp move in oil prices is flowing through to the Betashares Crude Oil Index Currency Hedged ETF (ASX: OOO).

The ETF aims to track the performance of the S&P GSCI Crude Oil Index, which reflects movements in global oil prices.

Because the fund is currency hedged, it is designed to track the underlying oil price without the impact of fluctuations in the Australian dollar.

As oil prices have surged in recent days, the ETF has followed.

Over the past week alone, the OOO share price has surged more than 60%, rising to its latest price of $9.50.

Year to date, the ETF is now up close to 85%, reflecting the powerful rally in crude markets.

Trading volumes have also jumped as investors seek quick exposure to rising energy prices.

What happens next for oil prices

Where oil prices go next will largely depend on how the conflict develops.

Analysts say the biggest concern remains the potential for a long-term disruption to energy shipments through the Persian Gulf.

If the Strait of Hormuz remains restricted or damaged, infrastructure reduces production across the region, and global supply could tighten further.

Some analysts have warned that oil could climb well above US$120 per barrel if the conflict escalates and supply disruptions worsen.

Right now, however, energy markets remain extremely sensitive to developments in the Middle East.

And that means the OOO share price could remain volatile as investors react to new updates from the conflict.

The post Oil rockets past US$100 as Iran war escalates. This ASX oil ETF is surging 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.

There are plenty of ASX shares out there for investors to choose from.

To narrow things down, let’s see what analysts are saying about three popular shares, courtesy of The Bull. Here’s what they are recommending:

Commonwealth Bank of Australia (ASX: CBA)

The team at Red Leaf Securities has been looking at the shares of banking giant CBA.

While the equity specialist acknowledges that CBA is Australia’s highest quality bank, its credit quality is strong, and its half-year results were ahead of expectations, it believes its shares are fully valued. As a result, it has put a hold rating on them. It explains:

CBA remains the highest quality bank, supported by scale, technology leadership and a dominant retail franchise. Credit quality is stable, arrears are contained and capital levels are strong. Recent half year results in fiscal year 2026 beat expectations, which the market welcomed. However, much of this quality is already reflected in its premium valuation.

With loan growth moderating and net interest margins normalising, earnings growth is likely to be steady as opposed to spectacular. The dividend supports total returns, making it a reliable core holding. Upside is limited at current prices. However, existing investors should maintain exposure, while new capital may find better growth or valuation opportunities elsewhere.

Nextdc Ltd (ASX: NXT)

Over at EnviroInvest, its analysts are positive on this data centre operator and have named it as a buy this week.

The investment company believes structural demand and execution momentum are reasons to buy. It said:

NextDC develops and operates data centres across Australia. Net revenue of $189.2 million in the first half of fiscal year 2026 rose 13 per cent on the prior corresponding period. Underlying EBITDA of $9.9 million was up 9 per cent. NXT sources renewable energy for its facilities and designs highly efficient cooling systems, reducing carbon intensity per megawatt. Digital infrastructure is energy intensive, but efficient operators are poised to benefit. Structural demand and execution momentum, in our view, support further upside.

WiseTech Global Ltd (ASX: WTC)

Finally, Red Leaf Securities has named WiseTech shares as a buy this week.

It highlights that the tech stock has a structurally de-risked path to margin expansion. It explains:

WTC develops and provides software solutions to the global logistics industry. Artificial intelligence (AI) continues to be embedded across its software, which is likely to cut 2000 jobs in fiscal years 2026 and 2027. AI enhances productivity across CargoWise logistics datasets and global integrations. First half revenue in fiscal year 2026 exceeded expectations. Synergies from e2open were delivered 18 months early and customer retention remains about 99 per cent. With dominant network effects across more than 190 countries, improving cost discipline and scalable growth opportunities, WiseTech offers a structurally de-risked path to margin expansion.

The post Buy, hold, sell: NextDC, WiseTech Global, and CBA shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc and WiseTech Global. 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.

Pro Medicus Ltd (ASX: PME) shares are trading lower on Monday morning.

At the time of writing, the health imaging technology company’s shares are down almost 1% to $131.67.

Why are Pro Medicus shares falling?

Investors have been selling the company’s shares today after broad market weakness offset the announcement of two major contract renewals in the United States.

If the ASX 200 index was not being sold-off today and down 3.2% at the time of writing, Pro Medicus shares would likely be charging higher.

According to the release, the company’s wholly owned US subsidiary, Visage Imaging, has signed two five-year contract renewals with a combined minimum value of $40 million.

Pro Medicus revealed that the largest of the deals is a $31 million renewal with MedStar Health, which is one of the largest healthcare systems in the Maryland and Washington, D.C. metropolitan region.

Under the agreement, MedStar will continue using the full suite of Visage 7 modules, including the Visage 7 Viewer, Open Archive, and Worklist products. The renewal will also add the company’s Visage 7 Cardiology imaging module.

In addition, Pro Medicus has secured a $9 million five-year renewal with Zwanger-Pesiri, which is a large private outpatient radiology provider based on Long Island in the United States.

The release reveals that both agreements are transaction-based contracts and, importantly, were negotiated at higher per-transaction fees. This means the total value could increase depending on usage volumes.

Management commentary

Pro Medicus’ CEO, Dr Sam Hupert, was pleased with the news and highlighted the significance of the MedStar renewal, noting that it was the company’s first fully cloud-deployed customer. He said:

The Medstar renewal is notable in that MedStar was our first fully cloud deployed customer and has grown considerably since their initial go live. Renewing this contract, and adding the Cardiology product, confirms our belief that we have the preeminent and most scalable enterprise imaging solution, that is fully cloud native.

Dr Hupert also commented on the Zwanger-Pesiri renewal, noting the long-standing relationship between the companies. He adds:

We are very pleased to have played such a key role in Zwanger Pesiri’s growth over the past 10 years. Zwanger-Pesiri have now renewed for a third contract term, re-iterating our belief that our solution provides the best return on investment of any system in the market from both a financial and clinical perspective.

With new contract renewals secured at higher transaction pricing and additional product adoption from existing customers, investors appear pleased with the latest update.

The post Pro Medicus shares fall after market selloff overshadows $40 million contract news appeared first on The Motley Fool Australia.

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

Last week was a rollercoaster for the S&P/ASX 200 Index (ASX: XJO).

Australia’s benchmark index swung heavily throughout the week, ultimately finishing 2.95% lower on Friday’s close than Monday’s open. 

Three ASX shares in particular that bounced around were: 

• Light & Wonder Inc (ASX: LNW)
• Domino’s Pizza Enterprises Ltd (ASX: DMP)
• 4DMedical Ltd (ASX: 4DX)

When stocks crash and recover on a daily basis, it can be difficult for investors to pinpoint true value. 

Here’s what experts are saying about these ASX shares. 

Light & Wonder

Light & Wonder shares crashed more than 7% at the start of last week. They then recovered by Thursday, before falling again on Friday. 

All in all, they finished the week down 1.35%. 

It’s been a rough start to the year for the game developer, down 28% since the middle of January. 

Holders of this ASX 200 stock will be pleased to know that analysts have a positive outlook, meaning there is the possibility of a larger recovery. 

Last week, Morgans had a buy rating and $195 price target on the company. 

Unlike other sectors, the broker thinks AI disruption will strengthen its competitive edge. 

From Friday’s closing price of $129.97, the Morgans price target indicates an upside of 50%. 

Elsewhere, Bell Potter is tipping even more upside for the ASX 200 stock. 

The broker has a $220 price target on Light and Wonder shares. 

Domino’s Pizza Enterprises

It was also a turbulent week for Domino’s shares. 

The ASX 200 stock initially dropped 12% before recovering significantly. 

It finished the week 3.74% lower than Monday’s open. 

This is a snapshot of what Domino’s shareholders have endured over the last year. 

The share price is ultimately down 29% for the last 12 months. 

Outlook is mixed amongst experts moving forward. 

Morgans currently has a buy rating and $25 price target on Domino’s shares. 

Meanwhile, Morgan Stanley has a sell rating on Domino’s Pizza shares with a target of just $15.20.

The ASX 200 company closed last week in between these targets at $19.07. 

4DMedical

This ASX stock was another up-and-down company last week. 

It endured heavy rises and falls but finished the week more than 13% above Monday’s open. 

The medical technology company is up an astounding 1000% in the last year. 

Following such a run, there are now questions on valuation vs revenue. 

Meanwhile, Bell Potter is optimistic that the growth can continue. 

The broker set a $4.50 price target and issued a buy recommendation.  

That indicates an upside of roughly 4% from last week’s close. 

The post What to make of these volatile ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Light & Wonder Inc. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Market sell-offs are never comfortable, but they are a normal part of investing.

The share market moves in cycles, and even strong companies can see their share prices fall sharply when sentiment turns negative. While it can feel unsettling in the moment, those periods often create some of the best long-term buying opportunities.

If the ASX share market were to crash, my approach wouldn’t be to panic or rush for the exit. Instead, I’d be looking for high-quality businesses whose long-term outlook remains intact but whose share prices have been dragged down with the broader market.

Here are three types of investments I’d be paying close attention to.

High-quality compounders

One of the first places I’d look during a market crash is high-quality ASX growth shares that have strong long-term track records.

Businesses like Pro Medicus Ltd (ASX: PME) and Xero Ltd (ASX: XRO) have built global platforms and operate in industries with long growth runways. These are the kinds of companies that can grow earnings for many years, but their share prices can still fall heavily during broad market sell-offs.

When that happens, the underlying businesses don’t suddenly lose their competitive advantages. What changes is the price investors are asked to pay for them.

If a crash pushed these types of companies to more attractive valuations, I would see that as a chance to build a position in businesses I already admire.

Market leaders with durable earnings

I would also look for dominant companies with resilient earnings and strong balance sheets.

Businesses like Wesfarmers Ltd (ASX: WES) and Woolworths Group Ltd (ASX: WOW) have established leadership positions in their industries and generate significant cash flow through economic cycles.

Retail spending may fluctuate, but these companies operate essential businesses with strong brands and extensive distribution networks.

During market downturns, even these kinds of blue-chip companies can be sold off alongside everything else. That can create opportunities to buy reliable, long-established businesses at prices that may not normally be available.

Broad ETFs

Finally, I would likely look to add to broad market exchange-traded funds (ETFs).

Funds such as the iShares S&P 500 ETF (ASX: IVV) or the Vanguard MSCI Index International Shares ETF (ASX: VGS) provide exposure to large numbers of companies across different sectors and regions.

Buying diversified ETFs during periods of market weakness can be a straightforward way to increase exposure to the market without needing to pick individual winners.

Over long periods of time, markets have historically recovered from downturns and gone on to reach new highs. Adding to diversified funds during those weaker periods can help investors benefit from that recovery.

Foolish Takeaway

If the ASX share market crashes, my focus wouldn’t be on trying to predict how far prices might fall.

Instead, I’d be looking for opportunities to buy strong businesses and diversified ETFs at more attractive prices. Market downturns can be uncomfortable in the short term, but they can also provide the chance to build a portfolio of high-quality investments for the long run.

The post What I’d buy if the ASX share market crashes appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers, Xero, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Woolworths Group and Xero. The Motley Fool Australia has recommended Pro Medicus, Vanguard Msci Index International Shares ETF, Wesfarmers, 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.

Now could be the time to pounce on the ASX biotech stock in this article according to analysts at Bell Potter.

That’s because it believes the speculative stock could generate very big returns over the next 12 months if everything goes to plan.

Which ASX biotech stock?

The stock in question is Anteris Technologies Global Corp (ASX: AVR).

It is developing the DurAVR device, a class III medical device in the class of transcatheter aortic heart valves used for the treatment of severe aortic stenosis.

Bell Potter notes that the condition affects ~12 million people globally with an estimated ~150,000 procedures completed each year via the minimally invasive TAVR (transarterial valve replacement) procedure.

What is the broker saying?

Bell Potter notes that the ASX biotech stock is making a lot of progress towards getting its DurAVR product approved. It said:

Anteris continues to make excellent progress towards approval of the DurAVR by virtue of the recent opening of the Investigative Device Exemption (IDE) in the US followed by the US$320m capital raise to fund the pivotal study.

Any suggestion that DurAVR is not a serious a threat to the market leaders in the TAVR space should now be extinguished. The opening of an IDE is a seriously impressive achievement for any company, let alone AVR with no significant history at the FDA and no previous product approval. Secondly, the $90m placement (included in the $320m) to Medtronic (MDT) provides it with an effective right of last refusal on future M&A. It also amounts to a validation of the multiple features with the DurAVR technology which make it an appealing alternative to both the Edwards Life Science SAPIEN or the Medtronic’s Evolut and CoreValve TAVR devices. AVR represents Special Value for MDT, which is now well positioned for a potential acquisition.

Big potential returns

According to the release, the broker has retained its speculative buy rating with an improved price target of $13.00 (from $10.00).

Based on its current share price of $8.76, this implies potential upside of 48% for investors over the next 12 months.

Commenting on its recommendation, the broker said:

The opening on the IDE and completion of the funding round substantially de-risk the pathway to approval and subsequent revenue stream. The key risk now remains the not insignificant task of successful completion of the phase 3 trial. Being a medical device of a mechanical nature, the certainty of outcome from the trial is far higher than for a drug as evidenced by data from the ongoing clinical program. As the path to revenue is substantially de-risked, our valuation is increased from A$10 to A$13 and we maintain our Buy (Speculative) rating.

The post Broker says this exciting ASX biotech stock could rise almost 50% 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.