Category: Stock Market

The Magellan Financial Group Ltd (ASX: MFG) share price fell 5.75% to an intraday low of $9.52 on Friday after an investor update.

Magellan said the Share Purchase Plan (SPP) related to its merger with boutique investment bank Barrenjoey was “heavily oversubscribed” and it will issue new shares to the value of its original target of $20 million.

The SPP closed on Wednesday.

The SPP offered existing shareholders the opportunity to buy up to $30,000 worth of new Magellan shares at $8.45 apiece.

Earlier this month, Magellan completed a $130 million institutional capital raise to help fund the merger.

The Lowy family of the Westfield retail empire was among the participants, investing just over $79 million for a 5.1% stake.

Magellan management also offered a clarification today regarding the vesting of employee shares for Barrenjoey executives.

Under the terms of the Merger and pursuant to the Barrenjoey ESS plan rules, the Consideration Shares in respect of each employee will vest in seven equal instalments in six monthly intervals, commencing 8.5 years from the relevant employee’s service commencement year and concluding after 11.5 years. Vesting is subject to continued employment.

As consideration for the merger, Magellan will issue 106,838,520 consideration hares to the shareholders of Barrenjoey upon completion.

Of those shares, 92,626,871 will go to Barrenjoey parties and 14,211,649 will go to an affiliate of Barclays PLC.

All Barrenjoey parties will be subject to escrow or vesting arrangements, with staggered vesting and escrow release dates already set.

In an earlier statement, Magellan said:

These arrangements are designed to ensure continuity of leadership, and alignment with long-term shareholder outcomes with the Barrenjoey Parties to which the restrictions apply only permitted to sell their Consideration Shares after their respective dealing restriction period ends.

The weighted average dealing restricted period is approximately 5.5 years after announcement.

Magellan and Barclays provided seed capital for Barrenjoey when it launched in 2020.

Currently, Magellan owns a 36% stake, and will pay $903 million via the issuance of new shares to buy the rest of the company.

Magellan said it would update the market again next Tuesday.

Magellan share price snapshot

The Magellan share price has jumped 12.8% since the investment manager announced the proposed merger earlier last month.

The Magellan share price is now up 22% over the past year, but down 76% over the past five years.

This week, Macquarie downgraded Magellan shares to a sell rating with a 12-month price target of $8.55.

Earlier this month, after the merger was announced, Morgans upgraded Magellan to a buy and lifted its target from $9.80 to $12.43.

The post Why is the Magellan share price down 6% today? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Bronwyn Allen has positions in Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Barclays Plc. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Health Care Index (ASX: XHJ) shares have crumbled 33% over 12 months, and not just because of CSL Ltd (ASX: CSL).

While CSL’s market capitalisation has halved over two years, several other sector heavyweights have also tumbled to multi-year lows.

In fact, eight of the 10 largest ASX 200 healthcare shares are trading at or close to multi-year or 52-week lows today.

Is this an opportunity to buy the highest quality companies in the ASX 200 healthcare sector on the cheap? Or a reason to steer clear?

Blackwattle Large Cap Quality Fund portfolio managers Joe Koh and Elan Miller comment:

The sector as a whole has faced multiple headwinds, including currency and tariffs for the large multinationals and labour and cost pressures for the domestic players.

With this in mind, let’s look at the state of play for the healthcare sector’s three biggest players, and how the brokers rate them today.

1. CSL Ltd (ASX: CSL)

The CSL share price is $141.22, down 2.2% on Friday.

CSL remains the sector’s largest company by a long shot with a market capitalisation of $70.06 billion.

The blue-chip ASX 200 healthcare share has fallen 18% year to date (YTD) and 44% over the past 12 months.

The CSL share price touched an eight-year low of $133.35 last week.

Disappointing earnings results, a company restructure, and a drop in vaccination rates worldwide are among the concerns for investors.

This week, UBS reiterated its buy rating on CSL shares with a 12-month target of $235.

Meanwhile, Ord Minnett has a hold rating with a $198 target.

In a note last month, the broker said:

Cost performance has improved significantly as CSL’s business restructuring plans are implemented but revenue growth is still proving hard to come by, and the CEO’s exit adds a degree of difficulty to the biotech’s outlook.

Despite the apparent upside on offer, Ord Minnett will need more evidence of top-line growth and margin expansion before we can become more constructive on CSL.

2. Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is $2.60, down 1% on Friday.

Sigma Healthcare, which owns a network of chemists, has a market capitalisation of $30.24 billion.

This ASX 200 healthcare share has fallen 12% YTD and 11% over the past year.

Sigma shares slid to a 15-month low of $2.58 in earlier trading today.

The stock has gone through a correction after reaching heady levels last year due to the Chemist Warehouse merger.

The Sigma Healthcare share price reached a multi-decade high of $3.28 in June last year.

This week, Ord Minnett upgraded Sigma Healthcare shares to a buy rating but lowered its 12-month target from $3.40 to $3.30.

Jefferies has also upgraded the ASX 200 healthcare share to a buy rating with a $3.05 target.

Morgans downgraded the stock from buy to accumulate after reviewing the company’s 1H FY26 report last month.

The broker said:

SIG posted a solid 1H26, which was in line with consensus.

The highlights included solid CW LFL sales growth (up 15%), revenue growth higher than cost growth by 4.5%, and synergy targets on track.

We move to an ACCUMULATE (was Buy) due to YTD share price strength.

Morgans has a 12-month target of $3.36.

3. ResMed CDI (ASX: RMD)

The ResMed share price is $32.34, down 0.5% today.

The ASX 200 healthcare share has fallen 10% YTD and 9% over the past year.

ResMed, which makes CPAP devices to treat sleep apnoea, has a market cap of $18.66 billion.

ResMed shares fell to a 20-month low of $31.77 per share on Monday.

Last month, Ord Minnett reiterated its buy rating on ResMed shares.

Due to the higher Australian dollar, the broker reduced its AUD price target from $44.56 to $43.70.

Ord Minnett explained:

ResMed is now guiding to an FY26 gross margin of 62–63%, up from 61–63% previously, and we have upgraded our own forecast to 62.4% from 64.1% as we incorporate cheaper input costs and production efficiencies into our numbers.

A mark-to-market adjustment for the stronger Australian dollar currency means our target price in AUD falls to $43.70 from $44.56 despite a rise in our EPS forecasts.‍

We maintain a strongly positive view on ResMed as strong earnings growth boosts its net cash position, which should support higher dividends and more capital management. ‍

On The Bull last week, Nathan Lodge from Securities Vault revealed a hold rating on this ASX 200 healthcare share.

Lodge said:

Structural demand drivers, including ageing populations, increasing diagnosis rates and broader awareness of sleep health, continue to support long term growth.

However, a strong share price recovery following concerns about the impact of weight loss drugs on sleep apnoea treatment appears to leave much of the near-term optimism priced into the stock.

While the company’s fundamentals remain robust, the valuation reflects its market leadership and growth outlook.

Investors may prefer to retain existing positions, while awaiting further earnings expansion, or more attractive entry points.

The ResMed share price was whacked in 2023 due to the rising use of GLP-1 medicines like Ozempic and Mounjaro for obesity.

In March 2024, ResMed released in-house research showing that GLP-1 medicines were actually a tailwind, as they encouraged people to see their doctor about their weight, leading to more diagnoses of sleep apnoea and a 10% increase in CPAP device usage.

The post ASX 200 healthcare shares down 33% in a year as heavyweights hit multi-year lows appeared first on The Motley Fool Australia.

More reading

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• 2 amazing ASX shares to buy for long-term growth
• Here are the top 10 ASX 200 shares today
• Here’s one reason why experts think the CSL share price can rise 65%!

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Jefferies Financial Group, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The BlueScope Steel Ltd (ASX: BSL) share price is edging lower on Friday despite a positive update to the market.

At the time of writing, shares are down 0.45% to $26.72. Even so, the stock remains up around 11% in 2026.

The move comes after BlueScope outlined progress in a key strategy aimed at unlocking value from its large surplus land portfolio.

Here’s the key detail.

Progress on surplus land strategy

BlueScope confirmed it is accelerating plans to extract value from around 1,200 hectares of surplus industrial land across New South Wales and Victoria.

More than 60% of this land is already zoned to support development, with access to major infrastructure such as ports, transport, and energy.

The company is pursuing a mix of leases, partnerships, and selective asset sales to generate returns over time.

Management said the program is designed to deliver value beyond its core steelmaking operations.

New deal signed in NSW

In New South Wales, BlueScope has entered a commercial heads of agreement with automotive logistics group, Prixcar.

Prixcar is an Australian automotive logistics company specialising in vehicle storage, processing, and transport. It works with major car manufacturers and dealerships to manage vehicle distribution nationwide.

The deal involves a 10-hectare hardstand car storage facility at West Dapto, supported by an initial 10-year lease.

The site sits within an established industrial area with strong demand for logistics and storage.

Development is expected to be completed by 2029. BlueScope estimates the project will deliver around $40 million in value after costs and incentives.

Victoria project moves forward

In Victoria, the company has launched an expression of interest process for a larger 65-hectare logistics hub.

This site is located next to its Western Port facility and benefits from close proximity to road, rail, and port infrastructure.

BlueScope expects the project to attract interest from logistics and industrial developers, with early signals described as strong.

Value from this initiative is expected to start coming through in the first half of FY27.

Building on earlier milestones

Today’s update follows a series of recent steps to unlock value from its land portfolio.

These include the $76 million sale of a 3.3-hectare residential site at West Dapto, and a long-term ground lease linked to a 100MW battery project in New Zealand. The company has also rezoned around 200 hectares of land at Port Kembla.

Foolish Takeaway

BlueScope is making steady progress in extracting value from its surplus land portfolio.

The NSW and Victorian projects add to a growing pipeline, with further developments expected over the coming years.

While the share price edged lower today, this plan could help the company make more money alongside its steel business.

The post This ASX steel stock is unlocking hidden value. So why is it falling today? appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today

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.

The S&P/ASX 200 Index (ASX: XJO) is having a poor end to the week. In afternoon trade, the benchmark index is down 0.5% to 8,480.5 points.

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

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is up 3% to $6.47. This morning, the respiratory imaging technology company revealed that its CT:VQ product has received CE Mark certification for commercial use in the European Union. The company notes that this allows it to immediately commence commercial engagement with healthcare providers, which sets up a pathway for clinical adoption and collaboration with major European hospital networks. 4DMedical’s CEO and founder, Andreas Fouras, said: “CE Mark certification for CT:VQ is a significant milestone that opens access to one of the world’s largest and most sophisticated healthcare markets. Combined with FDA clearance, 4DMedical now holds regulatory approval to rapidly commercialise CT:VQ across both the U.S. and the EU.”

Clinuvel Pharmaceuticals Ltd (ASX: CUV)

The Clinuvel Pharmaceuticals share price is up 1.5% to $9.93. This has been driven by news that the biopharmaceutical company is showcasing at America’s largest dermatology conference. Clinuvel’s head of North American operations, Dr Linda Teng, said: “Following the success of the 2025 AAD Meeting, our team has refined its approach to ensure maximum engagement with the dermatology community ultimately aimed at helping to treat patients with melanocortin therapies. We know there is great demand from physicians who wish to offer more to their vitiligo patients, while interest in our commercial program for EPP continues to grow as patients seek approved therapy.”

Life360 Inc (ASX: 360)

The Life360 share price is up 1.5% to $19.28. This week, Bell Potter put a buy rating and $37.75 price target on its shares. This is almost double its current share price. Commenting on its expectations for the first quarter, the broker said: “After setting expectations relatively low for Q1, there is some chance of a small beat, perhaps more in the adjusted EBITDA margin rather than MAU growth.”

Silex Systems Ltd (ASX: SLX)

The Silex Systems share price is up 1% to $5.34. This morning, the laser uranium enrichment technology company advised that Global Laser Enrichment (GLE) has received preliminary approval for a major US government funding package. GLE is the exclusive licensee of the Silex uranium enrichment technology. The performance-based incentives package will provide up to US$98.9 million (A$142.6 million) in tax and other economic incentives.

The post Why 4DMedical, Clinuvel, Life360, and Silex shares are pushing higher today appeared first on The Motley Fool Australia.

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• ASX 200 uranium stock lifts off on $143 million US laser news
• 2 ASX 200 shares that now have 60% upside: Analysts
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Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a decline. At the time of writing, the benchmark index is down 0.65% to 8,470.8 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 12.5% to $3.92. This is despite there being no news out of the counter-drone technology company on Friday. However, it is worth noting that DroneShield’s shares have been in fine form in recent weeks. This could mean that some investors are taking profit today. For example, the company’s shares remain up over 8% since this time last month despite today’s decline.

Hub24 Ltd (ASX: HUB)

The Hub24 share price is down almost 4% to $80.27. This appears to have been driven by broad weakness in the tech sector today following a poor night on Wall Street’s NASDAQ index. It isn’t just Hub24 shares that are falling today. The S&P/ASX All Technology Index is down 1.65% at the time of writing.

Syrah Resources Ltd (ASX: SYR)

The Syrah Resources share price is down 16% to 12.2 cents. Investors have been selling the graphite producer’s shares after it completed its fourth equity raising in as many years. Syrah has raised approximately A$44 million (US$30 million) at a fixed price of 10.5 cents per new share. This represents a 27.6% discount to its last close price. The company’s managing director and CEO, Shaun Verner, commented: “Following the Equity Raise and the Strategic Funding Proposals, Syrah will have a robust balance sheet with pro-forma liquidity of ~US$198 million to support ramp up at Balama and Vidalia and provide a pathway to near term sustainable cash flow generation.”

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is down 15% to $3.86. This has also been driven by an equity raising. Weebit Nano advised that it successfully completed a fully underwritten $80 million institutional placement, alongside an additional $7 million placement to investors in Israel. The new shares were issued at $4.05 each, which represents a 10.8% discount to the company’s last closing price. Commenting on the news, Weebit Nano’s CEO, Coby Hanoch, said: “This is a strategic capital raise for Weebit Nano. It significantly strengthens our balance sheet, enabling us to accelerate development and commercial activities to ensure our ReRAM is the clear leader at a time when the industry is moving to adopt ReRAM in next-generation technologies. As the market’s only independent provider of qualified ReRAM, we have the first mover advantage. Still, scaling our R&D activity is essential to continuously improving the technology and solidifying our leadership position for many years to come.”

The post Why DroneShield, Hub24, Syrah, and Weebit Nano shares are sinking today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Hub24 and is short shares of DroneShield. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Life360 Inc (ASX: 360) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) location sharing software developer closed yesterday trading for $18.98. As we head into the Friday lunch hour, shares are swapping hands for $19.47 apiece, up 2.6%.

For some context, the ASX 200 is down 0.6% at this same time.

Despite today’s gains, Life360 shares remain down 6.1% over 12 months, underperforming the 6.4% gains posted by the benchmark index.

And the ASX 200 tech stock is down a steep 64.9% since notching an all-time closing high of $55.44 on 3 October.

Among the headwinds, Life360 stock has gotten swept up in the broader tech stock sell-off, driven by concerns that artificial intelligence (AI) could replace a lot of the services these companies currently offer.

However, following that big retrace, Alphinity Investment Management portfolio manager Stuart Welch believes Life360 could be poised for a material rebound (courtesy of The Australian Financial Review).

Life360 shares well-placed for earnings upgrade

Asked which stock in his fund is the most undervalued by the market, Welch pointed to Life360 shares.

Welch said:

Right now, the stock with the largest upside is Life360, which provides connected safety for families, including real-time location sharing, driving safety insights, and emergency response features.

Commenting on his bullish outlook on Life360 shares, Welch added:

We don’t believe that valuation alone drives future share price performance, typically finding that cheaper valuations often reflect the high likelihood of further earnings downgrades. Irrespective of how cheap a stock appears, it often requires analysts upgrading their future earnings forecasts for that stock to realise any apparent valuation upside.

Thankfully for Life360, we are confident of the earnings outlook from here.

What’s the latest from the ASX 200 tech stock?

Life360 reported its fourth quarter and unaudited full calendar year 2025 results on 3 March.

Highlights included a 32% year-on-year increase in revenue to US$489.5 million. And the company achieved a 20% increase in global monthly active users to 95.8 million.

On the bottom line, Life360 reported a gross full-year profit of US$380.8 million, up 36% from 2024.

The ASX 200 tech stock ended the year with US$495.8 million in cash and cash equivalents, up 209% from the prior year.

Commenting on the full-year results, Life360 CEO Lauren Antonoff said:

2025 was a landmark year for Life360. For the first time in company history, we achieved annual net income, reflecting both the fundamental strength of our freemium model and the operating discipline we’ve built over the past several years.

Despite the growth metrics, Life360 shares closed down 17.6% on the day of the results release amid a broader tech stock sell-off.

The post Why this top fundie is tipping Life360 shares for outsized gains appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Duratec Ltd (ASX: DUR) share price is slipping on Friday despite the release of a new contract win before market open.

At the time of writing, shares are down 0.83% to $2.39.

The move comes even as the company continues to outperform the broader market, with Duratec shares up 22% in 2026. By comparison, the S&P/ASX All Ords Index (ASX: XAO) is down 4% since the start of the year.

Here’s what the company announced.

Multi-million PNG contract secured

According to the release, Duratec PNG Limited has been awarded a contract with Lihir Gold Limited. Lihir Gold is a subsidiary of Newmont Corp (ASX: NEM).

The contract relates to operations at the Lihir site in Papua New Guinea.

Part of the scope is linked to Phase 1 of the Lihir Nearshore Soil Barrier project. The initial contract is expected to generate multi-million-dollar revenue over a 12-month period, with a value of around $45 million, subject to scope and performance.

There is also potential for additional scope to be awarded over time, depending on project requirements and approvals.

The work includes integrated services to support well plug and abandonment activities. Mobilisation is expected to begin immediately.

Builds exposure in key growth market

The contract marks another step in Duratec’s expansion in the energy and resources services sector.

The company said the award supports its strategy of working more with existing clients while also expanding into new regions.

The Lihir project shows Duratec can deliver complex work using its own teams alongside established subcontractors.

The contract is on standard commercial terms and is not subject to any material conditions precedent, allowing work to begin without delay.

Why the share price is easing

Despite the positive update, the share price reaction has been limited, suggesting some of the contract momentum may already be reflected.

Duratec shares have rallied strongly this year, rising around 22% in 2026 and more than 40% over the past 12 months.

Against that backdrop, smaller contract wins are less likely to move the share price unless they lead to a clear lift in earnings expectations.

Attention may also be on the contract duration, with the initial term set at 12 months and revenue dependent on scope.

Foolish Takeaway

Duratec’s latest contract supports its position in the energy and resources services space and adds to its exposure in Papua New Guinea.

The roughly $45 million agreement provides near-term revenue visibility, with potential for further work as the project progresses.

However, after a strong run in 2026, the market response has been limited. This suggests investors are looking for larger or longer-duration contracts to drive further share price gains.

The post This ASX contractor just landed a PNG deal. So why is the share price falling? 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.

Unsure where to invest $10,000? I think putting the funds into blue-chip ASX 200 shares could be a smart move.

But which ones?

Three that I rate as buys for smart investors are named below.

Qantas Airways Ltd (ASX: QAN)

Airlines aren’t usually thought of as long-term growth plays, but Qantas is far from typical. I like the way it’s reinvesting earnings into the fleet, which is driving efficiency, lowering maintenance costs, and opening up new long-range routes.

The airline delivered 9 new aircraft during the first half and is accelerating deliveries, with 30 more expected over the next 18 months.

That matters because capital-intensive industries like airlines often separate winners from average operators through asset quality and operational flexibility. Qantas’ newer aircraft are cheaper to run and allow it to compete more effectively domestically and internationally.

The company also operates in a relatively rational market. Alongside Virgin Australia Holdings Ltd (ASX: VGN), Qantas benefits from a duopoly that supports healthier margins than in oversaturated global markets.

Domestic operations delivered $1.05 billion in underlying EBIT in the first half, up 14%, while its Loyalty division contributed $286 million, up 12%. Combined with the strong-performing Jetstar business, these give Qantas a strong foundation for sustainable profits.

Recent share price weakness has been influenced by surging oil prices, which are now around US$100 per barrel amid conflict in the Middle East. But I see this pullback as an opportunity rather than a red flag.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is my quality pick. It’s a diversified industrial group with solid operations across Bunnings, Kmart, WesCEF, and other subsidiaries. Its half-year results last month showed profit growth of over 9%, supported by strong sales and productivity improvements.

Bunnings continues to perform well despite subdued residential construction, and Kmart’s everyday low-price model gives it a structural advantage. Meanwhile, WesCEF’s lithium contribution is increasingly relevant as energy markets shift toward electrification.

I like businesses that can grow profit across different economic conditions, and Wesfarmers does exactly that.

For a $10,000 investment, it offers a combination of stability, quality, and optionality that complements more cyclical or high-growth investments.

ResMed Inc (ASX: RMD)

ResMed is a standout ASX 200 blue-chip share in healthcare. The medical device company addresses obstructive sleep apnoea, a condition affecting over a billion people globally, yet remains underpenetrated in many regions. That structural tailwind is enormous and long term.

Financially, ResMed is strong. Revenue for the December quarter hit US$1.4 billion, up 11% year on year, with gross margins expanding to 61.8%, and operating income up 18%.

The balance sheet is healthy, with US$715 million in net cash, providing flexibility for R&D, acquisitions, dividends, and buybacks.

What sets ResMed apart for me is its ecosystem approach. It’s not just a device maker, it’s a connected health platform. With tens of millions of patients linked to its cloud systems, ResMed benefits from data-driven network effects and switching costs.

Furthermore, innovation continues with new product rollouts and AI-enabled features like Smart Comfort, further strengthening the company’s competitive moat.

Foolish Takeaway

With $10,000 to invest, I’d spread it across these three ASX 200 blue-chip shares to balance quality, growth, and structural advantages. 

Qantas offers cyclical exposure with a strong domestic franchise and long-term fleet upgrades. Wesfarmers provides stability, dividends, and optionality across diverse industrial businesses. ResMed gives exposure to a high-margin, underpenetrated global healthcare opportunity with structural tailwinds.

The post I think smart investors should buy these ASX 200 blue-chip shares with $10,000 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 ResMed and Wesfarmers. The Motley Fool Australia has positions in and has recommended ResMed. 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.

If you have a high tolerance for risk, then it could be worth checking out the small-cap ASX share in this article.

That’s because if the team at Bell Potter is on the money with its recommendation, it could deliver explosive returns over the next 12 months.

Which small-cap ASX share?

The small cap that Bell Potter is recommending to clients is Bubs Australia Ltd (ASX: BUB).

It is an early-stage fast-moving consumer goods (FMCG) company with exposure to growing demand for premium foreign sourced infant formula (IMF) products in China and the United States.

Bell Potter notes that Bubs recently held its investor day event and was pleased with what it heard. It explains:

In a short span of time BUB has secured 1.3% share of the US IMF market, with a 9% share in the premium natural segment (a category that grew +44% YoY in 2025). Increasing access to product is a key driver of growth with store exposures grown +27% in 1H26 to 5,558 and an expansion to 8,891 targeted by end FY26. The USFDA approval process for permanent market access is ongoing.

Targeting entry into Vietnam, Canada and Mexico, markets with a combined value of A$3.4Bn and growing at an aggregated forecast rate of ~10% p.a. Replicating some of the success seen in Australia and the US (share of 5.1% and 1.3%, respectively) implies a reasonable level of upside if successful.

Bell Potter was also pleased to see that the small-cap ASX stock has reaffirmed its guidance for FY 2026. This will see revenue of $120 million to $125 million, which is up from $104.5 million in FY 2025.

Big potential returns

According to the note, the broker has retained its speculative buy rating and 18 cents price target on the small-cap ASX stock.

Based on its current share price of 11 cents, this implies potential upside of 64% for investors over the next 12 months.

Bell Potter is bullish on the company due to its belief that FY 2026 will be a transformational year. It explains:

FY26e is a transformational year for BUB, with reported EBITDA projected at $4-6m despite incurring $5m in air freight and tariff related expenses, some of which will dissipate in FY27e. In the near term a +59% expansion in ranging points in the US and market realignment of China IMF channels towards English label formats should support a stronger 2H26e sales outcome.

With the US the primary growth engine of the business, gaining permanent access, is likely to prove a de-risking event from a value standpoint. In the interim, recent quarterly reporting saw BUB continue to materially outperform its US IMF peer group in growth (up +32% YoY in 2Q26 in USD terms vs. sector peer weighted revenue growth of -7% YoY).

The post This small-cap ASX share could rise 60% 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.

Light & Wonder Inc (ASX: LNW) shares have been out of favour recently, retracing sharply from levels higher than $180 in January to just $123.94 now.

The analysts at Macquarie have taken a look at the gaming company’s business and believe there’s some serious share price upside to be had. We’ll get to what their exact price target on the shares is later.

But firstly, why the cause for optimism?

Profit to grow

Macquarie is predicting calendar-year net profit of US$638 million for Light & Wonder, with the broader broker consensus estimate at US$640 million.

This compares with the company’s CY25 full-year result of US$567 million, which was itself an 18% rise from the previous year, on revenues of US$ 3,314 million, up 4%.

Light & Wonder Chief Executive Officer Matt Wilson said regarding the 2025 result:

We closed out 2025 with another strong quarter, delivering double-digit year-over-year growth in both revenue and cash flows. We also achieved several important milestones, including the successful acquisition and integration of Grover, accelerating our expansion in the Charitable Gaming market, and our transition to a sole primary listing on the ASX. We also continued to invest in our studios, which is paying dividends as our franchises drive strong game performance across the portfolio. Gaming momentum remained robust, with more than 700 North American Gaming operations units(6) added sequentially and over 12,300 units shipped globally during the quarter, while iGaming delivered another quarterly revenue and AEBITDA records. Looking ahead, we will remain focused on investing in product innovation and talent to strengthen our recurring revenue model(5), build on this momentum, and enhance our global competitive position as we progress toward our 2028 financial targets.

Shares looking cheap

The Macquarie team said they expected Light & Wonder to deliver improved quarter-to-quarter earnings growth in 2026, giving overall earnings growth a skew towards the second half of the year.

They added:

Revenues have 2H drivers, and with costs, there are some one-offs within 1H including legal and Grover’s Indiana entry, whilst tariff impacts will annualise in 3Q26. Importantly, the backdrop is mostly robust with US casino revenue trends and North America iGaming showing growth, but with Social Casino there are headwinds, meaning that SciPlay needs to win market share to grow.

Macquarie said Light & Wonder was Macquarie’s top pick in the Australian gaming sector, as it was well-positioned to win market share and had a “wide moat from disruption”.

Macquarie has a price target of $205 on Light & Wonder shares, compared with the current share price of $123.94. If achieved, this would represent a return of 65.4%.

Light & Wonder was valued at $10 billion at the close of trade on Thursday.

The post How high does Macquarie think this gaming stock will go? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Light & Wonder Inc and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.