Category: Stock Market

Some ASX shares are exciting because they are chasing fast growth, new technology, or a major turnaround.

Others are far less exciting.

That is how I would describe Amcor plc (ASX: AMC). It makes packaging. That may not sound like the most thrilling business on the ASX 200, but boring can be useful when it comes with a large dividend yield and defensive demand.

Amcor shares have fallen around 25% over the past 12 months. At the current share price of $53.88, I think income investors may want to take a closer look.

A big dividend yield

According to CommSec, the consensus estimate is for Amcor to pay dividends per share of $3.62 in FY26.

Based on the current share price of $53.88, that would represent a forward dividend yield of approximately 6.7%.

The forecast dividend is then expected to ease to $3.23 per share in FY27 and rise slightly to $3.30 per share in FY28. That would still imply forward yields of around 6% and 6.1%, respectively, based on today’s share price.

Those are large yields in my view.

Of course, estimates can change. Dividends are never guaranteed, and Amcor’s distributions are unfranked, which may reduce the appeal for some Australian income investors compared with fully-franked ASX dividend shares.

But even after allowing for that, I think the forecast income looks attractive.

Defensive packaging demand

The second reason I think Amcor is an interesting ASX 200 dividend share is the nature of its business.

Amcor makes packaging and dispensing products used across areas such as food, beverages, healthcare, nutrition, beauty, wellness, and consumer goods.

That is not a glamorous business, but it is tied to everyday demand.

People still eat, drink, take medicine, buy household products, and use personal care items in weaker economic periods. That does not make Amcor immune to volume pressure, customer changes, input costs, or currency movements. But it does mean the company is exposed to categories that can be more resilient than many discretionary sectors.

The recent quarterly update showed the business facing some challenges, including lower volumes and the impact of the Middle East conflict on cash flow expectations. But it also showed the benefits of scale following the Berry acquisition, with higher adjusted earnings and ongoing synergy delivery.

I do not think investors need to obsess over one quarter. The more important point is that Amcor is a very large global packaging business with customers across essential product categories.

The sell-off may have created value

The third reason is valuation.

A 25% share price fall can be a warning sign. It may signal that investors are worried about debt, integration risks, weaker volumes, or the outlook for cash flow.

Those risks are worth taking seriously, particularly after a large acquisition. Amcor needs to keep delivering on integration benefits while protecting its balance sheet and still funding dividends.

But a lower share price also means the dividend yield has become much more attractive, as I discussed above.

This is where I think the business’ boring nature could actually work in shareholders’ favour. Amcor does not need to become the next market darling to produce a solid return. If it can keep generating cash, deliver merger benefits, and support a healthy dividend, investors buying today could be well rewarded as sentiment slowly improves.

Foolish Takeaway

I would not call Amcor a perfect ASX 200 dividend share. The dividend is unfranked, volumes are not especially strong, and the Berry integration still needs to be handled well.

But I do think it could be a strong buy for investors seeking a big yield from a defensive global business.

The share price fall has made the income case much more appealing. And while packaging may never be exciting, that is not really the point. Sometimes, a boring business with a large dividend yield is exactly the kind of share worth paying attention to.

The post Could this boring ASX 200 dividend share be a strong buy for its big yield? appeared first on The Motley Fool Australia.

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• 3 excellent ASX dividend shares for income investors to buy in May
• Should investors buy low on these ASX shares hitting 52-week lows?
• Why did this broker just lower its price targets on these ASX shares?
• Should you buy Amcor shares for the 7% dividend yield?
• What does Macquarie say Amcor is worth after this week’s quarterly?

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

Appen Ltd (ASX: APX) shares are back in the green on Friday after the artificial intelligence (AI) data company gave investors a closer look at its turnaround.

At the time of writing, the Appen share price is up 8.93% to $1.22.

That move comes after a rough month for shareholders, with the stock down around 25% over the past 4 weeks.

Despite the recent slide, Appen shares are still up about 50% in 2026.

So, what did Appen tell the market today?

Why AI demand is driving the update

At today’s Annual General Meeting (AGM), Appen Chief Executive Ryan Kolln focused heavily on the company’s role in the AI market.

Appen provides data used to build and improve AI models. That includes human-generated data, model evaluation, speech and audio work, computer vision, coding tasks, and reinforcement learning environments.

The company argues that this work is becoming increasingly valuable as AI models move beyond public data and require more specialised inputs.

As AI models become more advanced, they need more than internet data. They also need people to review answers, test outputs, label information, check quality, and build datasets in complex areas.

Appen said it is already winning work in areas such as robotics annotation, coding vulnerability testing, reinforcement learning environments, multilingual audio models, and multimodal evaluation.

After years of pressure on revenue and margins, the question now is whether Appen can turn that AI demand into steadier growth.

China growth helps the result

The FY25 result gave investors a few signs that the business is stabilising.

Appen reported group revenue of $230.8 million for FY25, up 4.5% on FY24 when excluding the impact of Google.

Underlying EBITDA before foreign exchange (FX) impacts came in at $12.2 million, up 251% on the prior year.

Gross margin also improved to 40.3%, helped by a better mix of generative AI projects.

Appen China was a strong part of the result, with FY25 revenue rising 75% to $102.9 million. Underlying EBITDA before FX lifted to $10.6 million, with the business benefiting from new and expanding LLM-related projects.

Appen Global was still weaker over the full year, with revenue down 21% to $127.9 million. However, management pointed to a much stronger fourth quarter, helped by generative AI work and cost savings.

FY26 guidance stays in place

The other key point from today’s update is that Appen has reaffirmed its FY26 guidance.

The company continues to expect revenue of $270 million to $300 million.

It is also targeting an underlying EBITDA margin before FX of around 5% to 10%.

Management said the business continues to see positive signals from LLM-related growth across Appen Global and Appen China.

Furthermore, Appen is also trying to keep costs under control while putting money behind the areas showing revenue growth.

Foolish bottom line

Appen is still a highly volatile stock, but today’s update gives investors a few reasons to stay positive.

The company is now seeing stronger demand from AI customers, China is growing quickly, and underlying EBITDA has improved.

The next test is whether Appen can turn the current AI demand into more consistent revenue growth.

The post This ASX AI stock is surging 9% today after a wild month appeared first on The Motley Fool Australia.

More reading

• These under-the-radar ASX AI shares are starting to turn heads
• Why Appen, Gentrack, Magellan, and Regis Resources shares are falling today
• Why Appen, Catalyst Metals, South32, and Woolworths shares are sinking today
• Why Appen shares just crashed 28% despite a return to growth

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

ASX gold stock Felix Gold Ltd (ASX: FXG) is sliding today.

Felix Gold shares closed yesterday trading for 37 cents. In early morning trade on Friday, shares are swapping hands for 36 cents apiece, down 2.7%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.5% at this same time.

Even with today’s intraday loss factored in, the Felix Gold share price is up a whopping 166.6% since this time last year, smashing the 3.6% 12-month gains delivered by the All Ords.

Here’s what the miner just reported.

ASX gold stock slips despite promising drill results

The Felix Gold share price is slipping after the miner announced the final gold and antimony assay results from its 2025 exploratory drilling campaign at its NW Array prospect.

The prospect is located within the ASX gold stock’s Treasure Creek Project, located in the US state of Alaska.

The latest results from the diamond and reverse circulation (RC) drilling confirmed multiple zones of near-surface gold mineralisation. According to the release, that includes higher-grade gold mineralisation within zones of several orientations, as well as broad, lower-grade mineralisation.

The drilling also intercepted new antimony veining zones.

While I’ll assume you’re familiar with gold, that may not be the case for antimony. The silvery metalloid is often used in batteries and to strengthen other metals, including lead. And, crucially for miners like Felix Gold, the United States currently has no secure domestic antimony supply.

Among the top gold results from one drill hole, the ASX gold stock reported 9.1 metres at 1.92 grams of gold per ton from 3.38 metres and 29.26 metres at 2.16 g/t Au from 13.41 metres.

Top antimony results included 2.53 metres at 4.34% antimony, including 0.50 metres at 20.85% Sb.

What did Felix Gold management say?

Commenting on the assay results that have yet to lift the ASX gold stock today, Felix Gold executive director Joseph Webb said, “These final 2025 gold assays close out a drilling year that has delivered consistently on both sides of the NW Array story.”

As for the critical antimony element, he noted:

Felix Gold is building America’s ‘Antimony Solution’, and the gold sitting alongside that antimony in the same structures and drill holes is a meaningful component of the asset’s strategic value.

Webb added:

The 2025 program has now defined gold mineralisation across the central and southern parts of the prospect, and these results add a substantial near-surface intersection in 25TCDC064 – 29.26 metres at 2.16 g/t gold from 13.4 metres, with a 21-metre central zone grading 2.83 g/t.

By any district benchmark that is a meaningful width and grade combination, and it sits inside a system where antimony mineralisation has already delivered some of the highest grades reported globally.

The post Up 167% in a year, why is this ASX gold stock sinking today? appeared first on The Motley Fool Australia.

More reading

• This ASX AI stock is surging 9% today after a wild month
• How to build a $20,000 ASX share portfolio with $100 a month
• Why are Guzman Y Gomez shares surging more than 15% higher?
• Fletcher Building: Construction division sale now unconditional
• Upgrade alert! Top broker upgrades this small-cap ASX share and predicts 75% upside

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

If you are starting out with investing and want to build a $20,000 ASX share portfolio, I have some good news.

Building a meaningful ASX share portfolio does not require a large starting balance. For many investors, the more realistic path is to start small, invest regularly, and allow compounding to do the heavy lifting over time.

Even $100 a month can make a noticeable difference when it is invested consistently.

The key is patience. A $20,000 portfolio will not happen overnight. But with time, discipline, and sensible diversification, small monthly investments can grow into something far more substantial.

The power of regular investing

Investing $100 a month may not sound like much at first. Over a year, that adds up to $1,200. Over five years, it is $6,000 before any investment returns are included.

The benefit of investing monthly is that it builds a habit. It also means investors are buying through different market conditions. Sometimes prices will be high, sometimes they will be lower. This is known as dollar-cost averaging.

Dollar-cost averaging does not guarantee a profit or protect against losses. But it can remove some of the pressure of trying to pick the perfect moment to invest.

Instead of waiting for the market to look attractive, investors can steadily put money to work in ASX shares or ETFs that suit their goals and risk tolerance.

How long could it take?

Let’s assume an investor puts $100 a month into the ASX and earns an average annual return of 10%.

That return is broadly in line with long-term share market averages, though it is important to remember that it is not guaranteed. Some years will be much stronger, while others could be negative.

Based on that assumption, it would take around 10 years to build a portfolio worth approximately $20,000.

What could investors buy?

One simple approach is to use ASX exchange traded funds (ETFs). These can provide exposure to hundreds or even thousands of stocks in a single investment.

For example, a broad Australian shares ETF could provide exposure to major local companies like BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA), while a global shares ETF could add international diversification.

Growth-focused investors may also consider ETFs that provide exposure to areas such as technology, healthcare, or quality global companies. This could mean funds such as Betashares Global Cybersecurity ETF (ASX: HACK) or VanEck Morningstar Wide Moat AUD ETF (ASX: MOAT).

Individual ASX shares can also play a role, but diversification becomes especially important when starting with smaller monthly amounts. Putting too much money into one company can increase risk if that business disappoints.

The aim is to build a sensible collection of assets that can grow over time.

Staying the course

The biggest challenge may not be finding $100 a month. It may be staying invested when markets fall.

Share markets can be volatile, and there will be periods when portfolio values decline. That is normal. For long-term investors, those periods can also provide opportunities to buy at lower prices.

Foolish takeaway

A $20,000 ASX share portfolio is an achievable goal for investors who start small and stay consistent.

With $100 a month, a long-term mindset, and diversified investments, investors can start building wealth.

The post How to build a $20,000 ASX share portfolio with $100 a month appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended BHP Group and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Guzman Y Gomez Ltd (ASX: GYG) shares are charging higher on Friday after the company announced it would exit the US market.

The fast food operator said in a statement to the ASX that it would cease trading its restaurants in Chicago immediately.

Not up to scratch

The company said that while genuine progress had been made in the US market, the operations were not hitting the required benchmarks.

The company said:

GYG has been consistent and transparent about the thresholds the business needed to meet to prove concept in the US. Notwithstanding the progress made by the team on brand and guest experience, the financial performance of the US business has not been acceptable and is not meeting targeted hurdles.

The decision to exit the US market will cost the company US$30 to US$40 million.

GYG Co-Chief Executive Officer Steven Marks said:

I have always been confident in the differentiation of our food and guest experience, however this was not translating to an improvement in sales momentum. Having spent the last 3 months in the US, I realised this was going to take significantly more time and capital than we had expected. In assessing the trajectory of the current network, the Board and I have concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital.

The company said it was the board’s view that the Australian business was in a solid position, with strong growth, “world class unit economics and a significant network growth opportunity”.

The company added:

The quantity and quality of sites in the real estate pipeline continues to grow and GYG remains on track to open 32 restaurants this financial year. In an update to its full year guidance, GYG expects to deliver Australia Segment underlying EBITDA of approximately $85 million in FY26, representing 29% growth on the prior year.

Future still looks bright

Mr Marks said the company had a long runway ahead of it as it sought to hit its long-term target of 1,000 restaurants and underlying EBITDA as a percentage of network sales of 10%.

The company said the decision to exit the US did not mean the company had lost faith in its international ambitions.

The company said:

The decision to exit the US does not alter the Board’s conviction in the global appeal of the GYG brand, or in the long-term opportunity to expand into new geographies in a disciplined and deliberate manner. The performance of GYG’s master franchise markets reinforces the Board’s confidence. In Singapore and Japan, our master franchise partners continue to deliver strong sales growth and healthy unit economics. Both markets are planning new restaurant openings in the next 12 months, with Singapore opening its 24th restaurant earlier this week.  

Guzman Y Gomez shares were 15.4% higher in early trade at $20.86. The company is valued at $1.83 billion.

The post Why are Guzman Y Gomez shares surging more than 15% higher? appeared first on The Motley Fool Australia.

More reading

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• Which 3 ASX fast food operators are going cheap at current levels according to Morgans?
• These are the 10 most shorted ASX shares

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 Fletcher Building Ltd (ASX: FBU) share price is in focus today as the company announces all conditions have been met for the sale of its Construction Division, now set to complete on 29 May 2026. The transaction price increased to approximately $334 million after new contract signings.

What did Fletcher Building report?

• Sale of Construction Division to VINCI Construction is now unconditional
• Completion of transaction scheduled for 29 May 2026
• Purchase price increased from $315.6 million to around $334 million
• Revised price depends on working capital and net debt adjustments

What else do investors need to know?

The sale price rose as Higgins Contractors signed new Integrated Delivery Contracts covering East Waikato, Bay of Plenty, and Hawkes Bay regions. These additional contracts represent ongoing positive performance in the Construction Division prior to the sale.

Fletcher Building will continue to update shareholders as the transaction progresses towards completion. The divestment is aligned with Fletcher Building’s broader strategy to streamline its business and focus on its core strengths.

What’s next for Fletcher Building?

With the sale now unconditional, Fletcher Building will focus on finalising adjustments for working capital and net debt as part of settlement with VINCI Construction. The transaction’s completion on 29 May 2026 will allow Fletcher Building to redeploy capital and sharpen its business focus across its remaining operations.

Investors may look for further updates regarding use of proceeds and any new strategic initiatives following the divestment.

Fletcher Building share price snapshot

Over the past 12 months, Fletcher Building shares have declined 19%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Fletcher Building: Construction division sale now unconditional appeared first on The Motley Fool Australia.

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• Tuas terminates M1 acquisition
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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 the team at Bell Potter has just put a buy rating on its shares. Let’s find out why it has turned bullish.

Which small-cap ASX share?

The share that Bell Potter has turned bullish on is Doctor Care Anywhere Group PLC (ASX: DOC).

It is a UK-based telehealth company aiming to provide high quality, timely, and efficient primary and secondary care to patients, whilst reducing the overall cost of providing clinical services.

Bell Potter notes that it currently provides approximately 60,000 telephone/video consults per month. The vast majority of these are provided to the families of policy holders of a large private health insurance group operating in the UK.

The broker highlights that the small-cap ASX share has just announced an acquisition in the UK market, which it has described as a “pivotal moment” for the company. It said:

The acquisition of MedicSpot in the United Kingdom marks a pivotal moment in the company’s evolution. It broadens the business from a single-client service provider driving +90% of revenues to a more diversified platform with the capability to serve the broader market for corporate healthcare which we believe has distinct advantages over competitors focussed on direct-to-consumer (D2C).

MedicSpot is a healthcare and wellness platform currently targeting the direct-to-consumer market in the UK. The major assets include the website (medicspot.co.uk) and the estimated 2,500 customers ordering GLP-1 weight loss products each month, generating the estimated £5.3m in annual revenue. DOC also inherited a headcount of just 11 persons who continue to operate the business.

The broker points out that this deal fixes a shortcoming in its offering which bodes well for future tenders. It explains:

Weight management programs are key to virtually every new tender in this market and this element has been a shortcoming for DOC to this point. The combination of the weight loss program with the existing offering for GP, musculoskeletal and mental health services is absolutely unique in the UK with no competitor offering this combination from a single platform.

Big potential returns

According to the note, Bell Potter has upgraded the small-cap ASX share to a buy rating (from hold) with an improved price target of 24 cents (from 20 cents).

Based on its current share price of 13.7 cents, this implies potential upside of 75% for investors over the next 12 months.

Commenting on the upgrade, Bell Potter said:

We believe the acquisition of MedicSpot for just £850K represents deep value. The business is close to breakeven at EBITDA while providing DOC with immediate access to the D2C wellness market which the company will rapidly adapt to the large corporate market. Following the acquisition we upgrade our recommendation from Hold to Buy. PT amended to $0.24 from $0.20.

The post Upgrade alert! Top broker upgrades this small-cap ASX share and predicts 75% upside appeared first on The Motley Fool Australia.

More reading

• Fletcher Building: Construction division sale now unconditional
• Monadelphous wins $120m in new contracts across mining and renewables
• This mid-cap ASX tech share could be 30% higher in 12 months
• Tuas terminates M1 acquisition
• Guzman y Gomez exits US market, boosts Australia growth outlook

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 Doctor Care Anywhere Group Plc. 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 Monadelphous Group Ltd (ASX: MND) share price is in focus today after the engineering company announced it has secured approximately $120 million in new construction and maintenance contracts across the resources and renewable energy sectors.

What did Monadelphous Group report?

• New contracts valued at around $120 million in total
• Five-year panel contract for crane and lifting services with Rio Tinto in the Pilbara
• Three-year contract extension for multidisciplinary sustaining capital services for Rio Tinto
• Battery energy storage system (BESS) construction contract at Fortescue’s Cloudbreak mine
• Three-year structural and mechanical maintenance panel appointment with Port Waratah Coal Services in Newcastle

What else do investors need to know?

Monadelphous continues to expand its presence in both resources and renewables, picking up its third BESS project for Fortescue. This positions the company to benefit from the growing demand for decarbonisation solutions across mining operations.

The latest round of contract wins includes both new work and extensions to existing relationships, particularly with major clients Rio Tinto and Fortescue. These partnerships highlight Monadelphous’ standing as a trusted services provider in critical Australian sectors.

What’s next for Monadelphous Group?

Works under the new contracts are expected to be completed progressively, with the Cloudbreak BESS project scheduled for completion in the second half of FY26. Monadelphous will likely continue focussing on securing sustainable project work in renewables and resources to drive long-term growth.

The company’s strategy emphasises building strong relationships with key clients while targeting opportunities in infrastructure and decarbonisation, both in Australia and overseas.

Monadelphous Group share price snapshot

Over the past 12 months, Monadelphous Group shares have risen 69%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Monadelphous wins $120m in new contracts across mining and renewables appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The tech sector has been under a lot of pressure this year.

While this is disappointing, it could have created a buying opportunity for patient investors.

One example is the mid-cap ASX tech share in this article, which Bell Potter is recommending to clients.

Which mid-cap ASX tech share?

The tech share that Bell Potter is bullish on is Energy One Ltd (ASX: EOL).

It is a global provider of software products, outsourced operations, and advisory services for wholesale energy, environmental, and carbon trading markets.

Bell Potter notes that its solutions support energy participants across Europe, the UK, and the Asia-Pacific region, offering end-to-end capabilities for managing their entire wholesale energy portfolios.

The broker highlights that the ASX tech share has released its first trading update under its new CEO.

While the update was not especially positive, with annual recurring revenue (ARR) growth below expectations, Bell Potter notes that this is due to the timing of project commencements. It said:

EOL has provided its first market and business update under new CEO Ben Tranier, who took over in March 2026. The company flagged FY26 ARR growth will be approximately 13%, below its previous projections of 15-20%. This is due to timing of project commencements, primarily two large multinational industrial customers combining for an ARR value of ~$1m, which will fall into FY27.

EOL also confirmed the acceleration of a share-based payment expense of $0.8m for FY26. Further oneoff M&A related costs are also expected in FY26 as EOL pursues potential acquisition opportunities within their core markets (AUS & EUR). On an underlying basis, EOL expect their metrics to be in-line with consensus (VA Underlying EBITDA $21.3m; Underlying NPAT $9.6m).

Time to buy

According to the note, Bell Potter has retained its buy rating on the mid-cap ASX tech share with a trimmed price target of $17.10 (from $18.00).

Based on its current share price of $12.85, this implies potential upside of 33% for investors over the next 12 months.

Bell Potter is very positive on the software company and believes that artificial intelligence (AI) disruption concerns are unwarranted. It said:

We believe AI displacement concerns are unwarranted with EOL as they serve a deeply regulated and sticky industry with mission-critical solutions. Tailwinds remain regarding growing complexity in energy markets, surging European trading volumes and increasing distributed energy resources. These trends reinforce the strength of EOL’s positioning as a one-stop-shop provider of software and services, rather than a collection of individual tools. We remain attracted to the company’s strong growth profile, expanding margins and impressive SaaS metrics.

The post This mid-cap ASX tech share could be 30% higher in 12 months appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday

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 Energy One. 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 Tuas Ltd (ASX: TUA) share price is in focus after the company announced the termination of its agreement to acquire M1 Limited, with key conditions precedent not met by the long-stop date.

What did Tuas report?

• Termination of Sale and Purchase Agreement for M1 Limited acquisition
• Agreement conditions not fulfilled by the extended long-stop date of 21 May 2026
• No new financial metrics reported in this announcement
• Simba Telecom (subsidiary) continues current Singapore operations

What else do investors need to know?

The Sale and Purchase Agreement dating from August 2025 between Tuas, its Simba Telecom subsidiary and Keppel entities has now ended. With several conditions precedent unfulfilled by 21 May 2026, all parties have been released from their obligations.

In parallel, Simba Telecom remains engaged in a regulatory investigation by Singapore’s Infocomm Media Development Authority into potential breaches of the Telecommunications Act and licence conditions. Tuas has committed to keeping shareholders updated on progress in this matter.

What’s next for Tuas?

Tuas says Simba will continue to focus on its core telecom business in Singapore, offering competitive and innovative mobile plans. The company has signalled ongoing cooperation with regulators and plans to keep the market informed regarding further developments.

The failed M1 acquisition could see Tuas reassessing its growth strategies and exploring other opportunities in the regional telecommunications space.

Tuas share price snapshot

Over the past year, Tuas shares have declined 59%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Tuas terminates M1 acquisition appeared first on The Motley Fool Australia.

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