Category: Stock Market

Overall, the S&P/ASX 200 Index (ASX: XJO) has had a mediocre year. 

Historically, Australia’s benchmark index has risen roughly 9% per year. 

However, this year, it has risen by approximately 4.7%. 

While it’s certainly not a bad year by historical standards (2018 and 2020 were significantly worse), investors with large exposure to ASX 200 companies will undoubtedly have seen some individual shares in their portfolio fall.

On the flip side, this can create buy-low opportunities. Historically, strong companies and blue-chip stocks may now be a value. 

As the year draws to a close, I have tried to sift through these companies that have had down years.

Earlier this week, I covered other buy-low opportunities.

Here are two more of Australia’s largest companies by market capitalisation that may be value investments heading into the new year. 

Pinnacle Investment Management Group Limited (ASX: PNI)

This ASX 200 stock is an Australian-based multi-affiliate investment management company.

It provides seed funding, distribution services, and infrastructure support to a network of 15 asset managers, or ‘affiliates’, globally. 

In 2025, its share price has fallen more than 26% and 33% since August 7. 

However, there are positive signs. 

Despite the share price falling, the business is growing with a number of new boutiques as well as funds under management (FUM) increasing. 

At 30 June 2025, private markets FUM was $28.7 billion, up from $1.5 billion, or 6% at 30 June 2016. 

Additionally, the company offers an attractive dividend yield. 

Last month, The Motley Fool’s Tristan Harrison also covered the opportunity that dividend shares provide when the share price falls. 

He explained that when a dividend-paying business falls, we can buy it at a lower price, but the dividend yield on offer also increases.

With the business growing steadily and a grossed-up dividend yield of over 4%, I believe there is reason to think the company is a value at its current price. 

Analyst ratings from TradingView suggest that there is upside potential at the current price. 

The one-year price target of $25.32 indicates more than 50% upside for this ASX 200 stock. 

EBOS Group Limited (ASX: EBO)

This ASX 200 stock is the largest pharmaceutical wholesaler and distributor across Australia, New Zealand, and Southeast Asia.

Its share price is down more than 30% year to date. 

This included a 14% crash back in August following the company’s FY25 financial results. 

However, analyst price targets suggest it may have been oversold, providing investors with an opportunity to buy this ASX 200 stock at a value. 

TradingView has a one-year price target of $31.95. 

This indicates an upside of roughly 37% from current levels. 

Additionally, online platform SelfWealth rates the stock as “undervalued” by 38%. 

The post 2 undervalued ASX 200 shares to target appeared first on The Motley Fool Australia.

More reading

• 3 of the best ASX 200 shares to buy right now!
• 1 ASX dividend stock down 28% I’d buy right now
• Macquarie reveals ASX 200 share tips in each market sector for 2026
• 2 great ASX 200 blue-chip shares I’d buy right now
• Here are the top 10 ASX 200 shares today

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

Shares in 4DMedical Ltd (ASX: 4DX) have been nothing short of extraordinary in 2025. What started the year as a relatively unknown small-cap healthcare name has turned into one of the ASX’s standout momentum stories.

At Wednesday’s close, shares in the respiratory imaging technology company finished at $2.83, down 5% amid broader market volatility.

Even after that pullback, the stock is still up close to 500% in 2025.

It’s easy to assume most of the upside is already gone. But a closer look suggests there may still be more left in this growth stock.

What does 4DMedical actually do?

4DMedical operates in medical imaging, using software to turn standard CT scans into highly detailed, four-dimensional images of lung function. Its core XV Technology gives clinicians a clearer picture of how a patient’s lungs are actually working, revealing issues traditional imaging can miss, especially in chronic and complex respiratory conditions.

That matters because many lung diseases are hard to diagnose and monitor using existing tools. Hospitals and clinicians are always looking for better ways to assess, track, and treat conditions like COPD, asthma, and post-COVID complications. 4DMedical’s software is designed specifically to help solve that problem.

Why has the share price exploded?

The recent rally has not been driven by hype alone. Over the past few months, 4DMedical has delivered a steady stream of positive news.

Key regulatory approvals in major overseas markets, including Canada, have significantly expanded its addressable customer base. At the same time, the company has announced new commercial agreements and partnerships that validate its technology in real-world clinical settings.

Importantly, these updates have shifted investor perception. 4DMedical is no longer seen purely as an early-stage biotech with promise, but as a business starting to turn its technology into revenue.

Revenue is becoming more visible

Until recently, 4DMedical shares were largely priced on future potential. However, that’s starting to change as revenue becomes more visible.

Software sales are growing, more hospitals are using the product, and interest from overseas customers is increasing. The company isn’t profitable yet, but as a software business, more users should improve the numbers over time.

This has prompted the market to reassess the stock.

What could go wrong and what could go right?

None of this comes without risk. The share price has already moved sharply, volatility is likely to remain high, and expectations are rising. Slower execution or weaker adoption would likely impact the stock.

Even so, the longer-term opportunity is still there. If 4DMedical continues to expand into new markets and sees its technology adopted more widely in clinical settings, today’s valuation could still have room to grow.

The bottom line

4DMedical has been one of the ASX’s stronger performers in 2025.

For investors who understand the risks and are comfortable with volatility, this parabolic ASX stock still looks like one worth keeping firmly on the watchlist, even after its huge run.

The post This ASX stock is going parabolic, and I think it’s still a buy 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.

The Perpetual Ltd (ASX: PPT) share price is under the spotlight today after the company announced an update on its Wealth Management business sale, with exclusivity discussions with Bain Capital extended into early 2026.

What did Perpetual report?

• Continued exclusive sale discussions regarding the Wealth Management division with Bain Capital
• Exclusivity period extended into the first quarter of 2026
• No confirmation yet of a binding agreement or transaction value
• Company promises ongoing disclosure to shareholders

What else do investors need to know?

Perpetual first announced exclusive negotiations with Bain Capital Private Equity on 5 November 2025. Since then, talks have made progress, but the parties have agreed more time is needed to finalise any potential deal.

It’s worth noting there is no certainty that these discussions will result in a sale, binding agreement, or completed transaction. Perpetual says it will keep shareholders and the market updated according to its continuous disclosure obligations.

What’s next for Perpetual?

Perpetual’s immediate focus is to continue progressing the negotiations with Bain Capital regarding the possible Wealth Management division sale. Management will provide further updates should a material deal be reached.

Looking ahead, Perpetual remains committed to its global asset management and corporate trust businesses, while reviewing options for unlocking value for shareholders through strategic initiatives.

Perpetual share price snapshot

Over the past 12 months, Perpetual shares have declined 7%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Perpetual extends exclusivity in Wealth Management sale talks appeared first on The Motley Fool Australia.

More reading

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• Netwealth Group announces $101 million compensation after First Guardian collapse
• 2 ASX 200 shares that could be top buys for growth
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

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

There are a lot of options for investors to choose from in the gold sector.

But which ones could best buys for 2026? Let’s take a look at three that Bell Potter is tipping as buys for next year:

Evolution Mining Ltd (ASX: EVN)

The first ASX gold stock that Bell Potter is bullish on is Evolution Mining. It highlights the miner’s strong management team and track record of delivery as reasons to be positive. The broker said:

We continue to prefer Evolution Mining as our first pick gold producer on the basis of its unhedged exposure to the gold price, strengthening balance sheet, increasing free cash flows (has passed its CAPEX peak) and, in our view, is an unlikely potential acquiror.

We expect the market to pay more attention to its 80ktpa copper production exposure in a tightening copper market, as well as it supporting an increasing dividend stream. A strong management team and track record of delivery to guidance make EVN one of the go-to gold exposures on the ASX – a position we believe is justified.

Bell Potter has a buy rating and $12.35 price target on Evolution Mining’s shares. This is now below its current share price, so investors may want to wait for a better entry point.

Minerals 260 Ltd (ASX: MI6)

Another ASX gold stock that has been given the thumbs up by Bell Potter is Minerals 260.

The broker sees a lot of positives in the gold developer’s Bullabulling Gold Project (BGP) in Western Australia. Especially given its experienced leadership team and significant resource.

Minerals 260 is a Perth-based exploration and development company which is advancing its 100%-owned Bullabulling Gold Project (BGP), 65km from Kalgoorlie in WA. With a Resource of 4.5Moz at 1.0g/t Au it is one of the largest undeveloped gold deposits in Australia, sits on granted Mining Leases and is positioned at the heart of Australia’s gold mining industry.

The company is led by a proven team of project developers and operators. The 4.5Moz Resource reinforces the potential for a low cost, open-pit gold mining operation, producing ~200kozpa over a +10-year mine life. There is M&A appeal in a market characterised by well valued gold producers with strong balance sheets and appetites for growth.

Bell Potter has a speculative buy rating and 75 cents price target on its shares.

Ballard Mining Ltd (ASX: BM1)

Finally, Ballard Mining is a third ASX gold stock that Bell Potter is tipping as a best buy.

It likes the company due to its Baldock project, which it believes has significant potential and could make it a takeover target. It said:

We summarise Ballard Mining’s strategy for driving value as one focused on developing the current Baldock project (930koz at 4.1g/t Au) into a standalone operation, whilst simultaneously growing the Resource and Reserve base via targeted exploration. Baldock is covered by a granted mining lease, allowing for expedited development in a rising gold market.

Near-term catalysts include infill drilling and a maiden Ore Reserve estimate to support the first 5-6 years of operations, and a feasibility study (BPe Mid CY26). We believe over time this will lead to a re-rate in value and/ or make BM1 an attractive corporate target.

Bell Potter has a speculative buy rating and $1.05 price target on its shares.

The post Bell Potter names the best ASX gold stocks to buy in 2026 appeared first on The Motley Fool Australia.

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• 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 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.

Building a passive income stream doesn’t require a huge amount of capital to get started.

In fact, a $5,000 investment can be enough to build a diversified foundation of dividend-paying ASX shares that generate income today and have the potential to grow payouts over time.

The key is focusing on businesses with resilient cash flows, established market positions, and a track record of rewarding shareholders.

With that in mind, here are five ASX dividend shares that I think could be worth considering for an income-focused portfolio.

APA Group (ASX: APA)

APA is one of Australia’s leading energy infrastructure companies, owning and operating gas pipelines and energy assets across the country. Its revenues are largely regulated or contracted, which provides strong visibility over future cash flows.

This stability has allowed APA to steadily grow its distributions over time, making it an attractive option for investors seeking long-term income rather than short-term gains. It trades with a trailing 6.2% dividend yield.

BHP Group Ltd (ASX: BHP)

BHP is one of the most popular dividend shares on the ASX, and it is easy to see why. As one of the world’s largest diversified miners, it generates enormous cash flows through its iron ore, copper, and metallurgical coal operations.

While commodity prices can fluctuate, BHP’s low-cost assets and strong balance sheet have enabled it to pay substantial dividends across cycles. For income investors, it offers exposure to global resources with the added benefit of fully franked dividends. It offers a trailing 3.6% dividend yield at present.

Telstra Group Ltd (ASX: TLS)

Telstra remains a favourite among income-focused investors. As Australia’s largest telecommunications provider, it generates steady cash flows from its mobile and network businesses.

The rollout of 5G and ongoing demand for data services has supported Telstra’s earnings base, while management’s focus on cost control and capital discipline has helped stabilise dividends. For a $5,000 portfolio, Telstra could provide dependable income with relatively low volatility.

It currently trades with a trailing dividend yield of approximately 4%.

Transurban Group (ASX: TCL)

Transurban owns and operates toll roads across Australia and North America. These assets generate recurring revenue supported by long-term concessions and inflation-linked toll increases.

For dividend investors, Transurban offers relatively predictable cash flows and the potential for gradual distribution growth over time, particularly as new projects are completed and traffic volumes recover.

It offers a trailing unfranked dividend yield of 4.6%.

Woolworths Group Ltd (ASX: WOW)

Finally, Woolworths is a classic defensive income stock. As Australia’s largest supermarket operator, it benefits from consistent demand for everyday essentials regardless of what is happening in the broader economy.

That stability underpins reliable earnings and steady dividends, which makes Woolworths a popular choice for long-term income investors. At present, it offers a trailing dividend yield of 3.1%.

The post 5 top ASX dividend shares I would buy with $5,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has positions in and has recommended Apa Group, Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Netwealth Group Ltd (ASX: NWL) share price attracted attention after the company announced a $101 million compensation package for members impacted by the First Guardian Master Fund collapse, resulting in an expected $71 million hit to net profit after tax in 1H26.

What did Netwealth Group report?

• Agreed to pay $101 million in compensation to impacted Netwealth Superannuation Master Fund members
• One-off extraordinary expense to reduce 1H26 NPAT by approximately $71 million
• Compensation to be paid into affected members’ super accounts by 30 January 2026
• Compensation will be funded through a mixture of cash and debt
• FY26 dividend to be based on underlying earnings, excluding this one-off payment
• Recurring revenue, strong EBITDA margin, and positive cash generation maintained

What else do investors need to know?

Netwealth reached this compensation agreement following discussions with ASIC and has also resolved related proceedings, with ASIC not seeking any court penalties. The company and its trustee have provided enforceable undertakings to ASIC to complete payments as agreed.

Netwealth is also working closely with APRA, agreeing to uplift investment governance processes under the guidance of an independent expert. The company has already implemented several enhancements, such as a new executive role focusing on investment governance and greater transparency in monitoring investment options.

Broader industry and regulatory efforts are ongoing, and Netwealth continues to cooperate with stakeholders to ensure strengthened member protections going forward.

What did Netwealth Group management say?

Chief Executive Officer and Managing Director, Matt Heine, said:

The agreed outcome allows us to move forward and continue our work in supporting our members, our clients and our business. We have been in regular dialogue with impacted members. We know the level of distress the collapse of First Guardian has caused and it was critical to us to provide members with assurance by the end of the year that compensation would be forthcoming. We believe this is the right course of action for Netwealth and impacted members and is in line with our culture and values.

What’s next for Netwealth Group?

Looking ahead, Netwealth has reaffirmed previous FY26 guidance for net flows not materially different from FY25, and expects costs associated with First Guardian and related activities to be immaterial for the year ahead.

The business remains focused on continuous improvements in its governance, investing in people, technology, and compliance frameworks, supporting its long-term vision for a robust and innovative wealth management platform.

Netwealth Group share price snapshot

Over the past 12 months, Netwealth shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO) which have risen 3% over the same period.

View Original Announcement

The post Netwealth Group announces $101 million compensation after First Guardian collapse 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 positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. 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.

Wealth and investment services firm Ord Minnett has provided fresh guidance on two ASX 200 stocks. 

The broker has reinforced its buy ratings on both, while slightly adjusting its price targets. 

Here’s what’s behind the ratings. 

Metcash Ltd (ASX: MTS)

This ASX 200 stock operates in the consumer staples sector.

It is a wholesale distribution and marketing company specialising in food, liquor, and hardware. The company supplies and supports independent retailers in Australia.

According to Ord Minnett, Metcash posted first-half FY26 earnings short of market expectations, driven partly by the earlier recognition of restructuring costs than consensus had forecast. 

The key food business met forecasts, but the hardware and liquor divisions fell short of expectations.

It also noted that as with Endeavour Group Ltd (ASX: EDV) and Coles Group Ltd (ASX: COL), the liquor market continues to struggle, as the industry faces headwinds from changing consumer attitudes to health and cost of living pressures. 

Liquor EBIT fell 8.4% excluding reconstruction costs, and we highlight the risk of greater promotional intensity from rivals as suppliers battle for market share.

Post the result, Ord Minnett cut EPS estimates by 8.0%, 9.2% and 8.3% for FY26, FY27 and FY28, respectively, primarily due to the challenges facing the liquor and hardware operations. 

This leads us to cut our target price on Metcash to $4.00 from $4.60, but we maintain our Buy recommendation on valuation grounds.

Based on the updated price target of $4.00, this indicates an upside of 23.46% for this ASX 200 stock from its current price. 

BlueScope Steel Ltd (ASX: BSL)

The ASX 200 company is an Australian-based steel manufacturer supplying global markets. 

Spun out of BHP Billiton in 2002, BlueScope produces a range of steel products, systems, and technologies and is one of the world’s leading producers of painted and coated steel products.

Ord Minnett said the company recently hosted an investor day, where the company showcased its new electric arc furnace (EAF). 

It seems Ord Minnett has a positive view on this development. 

Ord Minnett views the EAF project as positive, with a boost at the earnings before interest and tax (EBIT) line of $80 million annually targeted for the New Zealand division. Against the $160 million investment from BlueScope, this looks to be an optimal use of funds if the targets can be achieved.

Post the investor day, it left FY26 EPS forecast unchanged. 

However, Ord Minnett raised FY27 and FY28 estimates by 2.4% to incorporate increased earnings from the New Zealand assets.

Our target price on BlueScope increases to $27.50 from $27.00, and we maintain Buy recommendation.

The updated price target of $27.50 indicates an upside of 13.36% from yesterday’s closing price. 

The post Two ASX 200 stocks with buy recommendations from Ord Minnett appeared first on The Motley Fool Australia.

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

ASX dividend shares that offer defensive and reliable earnings could be a smart call at a time when the outlook is uncertain in relation to inflation, AI outcomes and so on.

If an ASX dividend share can provide investors with a pleasing and rising payout, as well as long-term earnings growth, then it could generate pleasing total shareholder returns.

At the current valuations, I think the two names below can outperform the S&P/ASX 200 Index (ASX: XJO) over the medium term.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare has an impressive market share in the pathology sector with a presence in countries like Australia, Germany, the US, the UK, Switzerland and other markets.

It provides a very valuable service to the population of those countries, which I’d describe as very defensive because there’s a certain level of demand each year – everyone gets sick sometimes.

Sonic Healthcare is investing in technology to help provide the next level of pathology services, with AI potentially assisting the company to be more efficient (in terms of costs) and also deliver a better outcome for patients.

Not only is the company naturally benefiting from ageing and growing populations, but it also occasionally makes acquisitions to boost its scale and geographic exposure.

The ASX dividend share has increased its payout in most years over the past three decades and the company’s leadership wants to continue the progressive dividend policy.

Excluding franking credits, its FY25 payout translates into a dividend yield of around 4.75%. I think the FY26 payout will be larger and the business looks a lot cheaper after falling close to 20% over the past year.

Charter Hall Long WALE REIT (ASX: CLW)

Commercial rental properties can provide investors with defensive operating earnings thanks to the resilient tenants that are utilising those buildings.

One of the most pleasing things about this real estate investment trust (REIT) is that it has a long weighted average lease expiry (WALE) of around nine years – the tenants are signed on to pay rental income for the long-term.

Not only is the rental income reliable, but it’s also growing, with the contracts having annual rental income growth linked to inflation or they have fixed increases.

The portfolio of properties is diversified across a number of sectors including hotels, service stations, industrial and logistics, office, data centres and social infrastructure. This helps protect against sector risk and allows the business to search for the best opportunities.

Charter Hall Long WALE REIT expects to hike its FY26 payout to 25.5 cents per security, translating into a forward distribution yield of 6.25%. The ASX dividend share has dropped 12% since September, shown above, providing a sizeable boost to the yield on offer and making the valuation more appealing.

The post These 2 ASX dividend shares are great buys right now 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 recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking to bolster your portfolio with some growing ASX 200 shares, then it could be worth taking a look at the two in this article.

That’s because analysts rate them as top buys and are expecting them to generate big returns for investors over the next 12 months.

Here’s what they are recommending to clients:

ResMed Inc. (ASX: RMD)

The first ASX 200 growth share that could be a strong buy is ResMed. It is a world leader in sleep apnoea treatment and respiratory care, serving a patient base that continues to grow as awareness improves and diagnosis rates increase.

More than one billion people globally are estimated to suffer from sleep apnoea, yet the vast majority remain undiagnosed. As testing becomes easier and healthcare systems catch up, that number represents a massive multi-decade growth runway for ResMed.

The company’s device ecosystem, software solutions, and cloud-connected monitoring tools create high switching costs and drive recurring revenue. This has seen ResMed continue to expand its margins, improve operating leverage, and grow its earnings at a solid rate.

With ageing populations, rising obesity rates, and increased global focus on respiratory care, ResMed is well placed to remain a dominant global medical technology company for many decades.

The team at Macquarie is bullish on this name. It recently put an outperform rating and $49.20 price target on its shares. This implies potential upside of 30% for investors over the next 12 months.

Web Travel Group Ltd (ASX: WEB)

Web Travel could be another ASX 200 growth share to buy. Following the spin-off of its online travel business into a separate listing, the company’s focus is now on WebBeds.

It is a platform that connects hotels and other travel service suppliers to a distribution network of travel buyers all over the world.

Travel demand continues to normalise globally, and wholesale accommodation platforms are benefiting from strong cross-border migration, rising mobility, and the shift toward digital booking ecosystems.

WebBeds’ business model offers high scalability and attractive operating leverage. And after a mixed few years, the company’s simplified structure, improving market conditions, and clearer strategic direction have positioned it well for a meaningful rebound.

Many analysts believe earnings could accelerate from here. One of those is Ord Minnett, which recently put a buy rating and $7.00 price target on the company’s shares. Based on its current share price, this implies potential upside of over 40% for investors from current levels.

The post Analysts say these ASX 200 shares could rise 30% to 40% appeared first on The Motley Fool Australia.

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

Broker Bell Potter released new reports yesterday initiating coverage on two ASX small-cap stocks. 

Small-cap stocks may appeal to investors as they can have significant growth potential compared to more established, blue-chip shares.

However it’s important to understand they can have significant volatility, as many of these small companies can be pre-profit, relying on funding, clinical trials etc. 

With that being said, here are two that have buy recommendations from the team at Bell Potter. 

Saluda Medical (ASX: SLD)

Saluda Medical is a commercial-stage medical device company commercialising spinal cord stimulation (SCS) therapy globally.

According to yesterday’s report, Saluda Medical is currently a single-product company, centred around its differentiated SCS product called the ‘Evoke System’. 

The company has been commercialising the Evoke System for ~3 years in the US, and ~5 years in Europe and Australia, for the treatment of patients with chronic pain of the trunk and/or limbs.

Bell Potter has initiated coverage on this small-cap stock with a buy recommendation (speculative) for several key reasons: 

• Saluda’s patented closed-loop system delivers more consistent and durable pain relief than conventional devices. In its Phase 3 trial, no patients had devices removed due to lack of efficacy over three years.
• IPO funds will expand the US sales force to >150 reps by FY26, supporting broader geographic coverage, deeper physician adoption, and a paddle lead launch in FY27 targeting neurosurgeons.
• US revenue exceeded US$50m in under three years (~2% of the US$2.2b SCS market). Bell Potter forecasts revenue approaching US$290m by FY29, with US market share rising to ~9%.
• It has an attractive valuation trading at ~1.7x FY26 EV/Revenue (3.0x P/S), a discount to peers (~5x). Successful execution and EBITDA breakeven by FY29 could support meaningful re-rating.

Based on this guidance, Bell Potter has a price target of $2.80 on this ASX small-cap stock. 

That indicates an upside of more than 88% from yesterday’s closing price of $1.485. 

American Rare Earths Ltd (ASX: ARR)

American Rare Earths is an Australian exploration company targeting the discovery and development of strategic technology mineral resources in the USA and Australia.

The team at Bell Potter have initiated a buy recommendation (speculative) on this ASX small-cap stock. 

In yesterday’s report, the broker said the company is uniquely positioned to capitalise on the US’ Strategic focus to reduce reliance on a China dominated rare earth supply chain. 

The Cowboy State Mine offers a long-term solution within the US to decouple from external sources of rare earths, particularly heavy rare earths DyTb.

Essentially, Cowboy State Mine could help the US secure domestic supply of dysprosium and terbium, reducing reliance on China for these critical minerals.

Bell Potter initiated its coverage with a price target of $0.65. 

This indicates an upside of more than 94% from yesterday’s closing price of $0.335.

The post Top broker just initiated coverage on two ASX small-cap stocks with a buy recommendation appeared first on The Motley Fool Australia.

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