Category: Stock Market

I have viewed Wesfarmers Ltd (ASX: WES) shares as one of the best ASX dividend shares for a long time, both for the appealing passive income as well as the regular profit growth which helps fund larger payouts for investors.

While a lion’s share of the profit is generated by Bunnings and Kmart, all of the business divisions are responsible for their part in helping the business fund its dividend. I’m referring to businesses like Officeworks, Wesfarmers chemicals, energy and fertilisers (WesCEF), and the healthcare segment.

What makes Wesfarmers shares an attractive option for dividends?

Wesfarmers has a number of goals including driving long-term earnings growth, managing working capital effectively, having strong capital expenditure processes, investing for a bigger return than its cost of capital, having financial discipline, maintaining balance sheet strength, improving its returns on invested capital, and growing its dividends over time.

The company has a goal of delivering satisfactory returns to shareholders over time. Wesfarmers states:

With a focus on generating strong cash flows and maintaining balance sheet strength, the group aims to deliver satisfactory returns to shareholders through improving returns on invested capital.

As well as share price appreciation, Wesfarmers seeks to grow dividends over time commensurate with performance in earnings and cash flow. Dependent upon circumstances, capital management decisions may also be taken from time to time where this activity is in shareholders’ interests.

How much passive income could a $5,000 investment generate in FY26?

With those pleasing words about a focus on dividend growth in mind, Wesfarmers is projected to deliver a larger payout in the 2026 financial year compared to FY25.

The forecast on CommSec suggests that the business could pay an annual dividend per share of $2.10 in FY26. At the time of writing, that translates into a grossed-up dividend yield of 3.7%, including franking credits.

If someone were to own $5,000 of Wesfarmers shares, that would translate into grossed-up passive income of around $185, including the bonus of the franking credits.

Different analysts have different projections for the business.

The forecast on CMC Markets suggests the business could deliver an FY26 annual dividend per share of $2.17, which would translate into a grossed-up dividend yield of 3.8%, including franking credits. That would turn into approximately $190 of grossed-up income for FY26.

Obviously, income investors would like to see as big a dividend yield as possible, but the business should also retain some profits to reinvest into opportunities to deliver further profit and dividend growth in the coming years.

I think Kmart (and Anko) is the most likely division to deliver strong profit growth from here for Wesfarmers because of the potential for more Anko products to be sold overseas (in North America and Asia). I’d be very happy to own Wesfarmers shares for the long term.

The post If I invest $5,000 in Wesfarmers shares, how much passive income will I receive in 2026? appeared first on The Motley Fool Australia.

More reading

• 2 Australian dividend giants that belong in any portfolio
• Wesfarmers shares offer one thing no other ASX 100 stock does – can it last?
• How to invest your first $1,000 in the share market the smart way
• Forecast: Here’s what $10,000 invested in Wesfarmers shares could be worth next year
• Broker reveals ratings on 4 ASX 200 sector leaders

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 positions in and has recommended Wesfarmers. 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.

Nextdc Ltd (ASX: NXT) shares traded in the red again on Tuesday afternoon. At the time of writing, the Australian data centre operator’s shares are down 2.93% to $13.74 a piece.

It’s been a volatile year for the high-growth company. The tech stock soared nearly 80% from a multi-year low in April to an annual high of $17.99 in mid-September. The soaring share price came in leaps following solid financial results in April and August. The company also experienced a flurry in contract wins and elevated demand for data-centre capacity.

But since that September peak, tech stocks have come off the boil and face continual headwinds. And the turn in sentiment has forced the Nextdc share price down 23.6% to the time of writing.

For context, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 22.7% over the same period. ASX tech stock losses have come amid building concern about the durability of the surge in AI shares. Meanwhile, following some underwhelming updates from some of the ASX tech majors, analysts are worried that valuations are overstretched. The concern is leading investors to re-evaluation their appetite for exposure in the sector.

What does this mean about the future for NextDC shares?

The good news is, that as a company with a network-rich connectivity ecosystem, NextDC is well-positioned to experience strong growth prospects going forward. 

And it has significant growth plans in the pipeline too. The company is bringing major new facilities coming online across key markets. Each one of these typically ramps up utilisation over several years, which helps to drive a recurring revenue higher without steep costs.

I think the latest tech sector sell-off has been overdone, but it also presents a great buying opportunity to buy high-quality stocks like NextDC at a great price.

Is there upside ahead?

There is a consensus among analysts that NextDC shares are a great buy right now. 

TradingView data shows that all 14 analysts have a buy or strong buy rating on the shares with a maximum target price of $28.89. That’s a potential upside of a huge 110.34% at the time of writing.

Analysts at Ord Minnett recently revealed that they’ve retained their buy rating on NextDC shares, and raised its target price to $20.59. In a note to investors, the broker said it is pleased to see that NextDC has signed a memorandum of understanding with ChatGPT’s owner OpenAI for its proposed S7 data centre in Eastern Creek, Sydney. This centre will be a hyperscale AI campus and the largest in the southern hemisphere with 650MW capacity.

Morgans is also bullish on the company and upgraded its shares to a buy rating with a $19.00 price target earlier this month. The broker said it sees significant upside potential for investors between now and this time next year.

The team at Macquarie are also big fans of the ASX 200 tech stock. They hold an outperform rating and $20.90 price target on its shares. 

The post NextDC shares drop 23% from their peak: Buying opportunity or sign to sell-up? appeared first on The Motley Fool Australia.

More reading

• Stocks to target for a tech rebound in 2026
• Here are the top 10 ASX 200 shares today
• Leading brokers name 3 ASX shares to buy today
• 2 unstoppable ASX growth shares to buy and hold
• 3 explosive ASX ETFs to buy and hold

Motley Fool contributor Samantha Menzies 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.

Being in your 20s or 30s gives you something invaluable in investing: time.

And when it comes to building wealth, time is the ultimate superpower. It allows small, regular investments to snowball into life-changing sums thanks to decades of compounding.

That’s why younger investors don’t need to obsess over market timing or chase the latest hot stock.

A smarter approach is to build a long-term portfolio that captures global growth, leans into powerful megatrends, and compounds quietly in the background.

For Australians starting their wealth-building journey, the three ASX exchange traded funds (ETFs) named below could be worthy of consideration. Here’s what they offer investors:

Betashares Nasdaq 100 ETF (ASX: NDQ)

If you want long-term compounding, it is hard to go past the Betashares Nasdaq 100 ETF. This fund gives you exposure to the 100 largest non-financial stocks that are listed on the Nasdaq index.

Many of these are shaping the future of technology, AI, cloud computing, and digital commerce. This includes giants such as Apple (NASDAQ: AAPL), Alphabet (NASDAQ: GOOG), and Nvidia (NASDAQ: NVDA). These are businesses with enormous global moats, strong cash generation, and long histories of outperformance.

The Nasdaq has beaten most global markets over the past two decades, and while there will always be volatility, young investors can ride out the bumps and let time work its magic.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

While the US dominates global tech today, Asia is expected to be a major growth engine in the decades ahead. The Betashares Asia Technology Tigers ETF provides investors with exposure to some of the region’s most dynamic technology companies or tigers. This includes WeChat owner Tencent Holdings (SEHK: 700), Temu owner PDD Holdings (NASDAQ: PDD), Taiwan Semiconductor Manufacturing Co. (NYSE: TSM), and search giant Baidu (NASDAQ: BIDU).

These companies operate in fast-expanding industries such as gaming, e-commerce, semiconductors, cloud services, and artificial intelligence. With Asia’s middle class booming and digital adoption rising rapidly, the long-term growth outlook is enormous.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

A third ASX ETF to look at is the BetaShares S&P/ASX Australian Technology ETF. The Australian tech sector may be small compared to the US, but it contains several stocks that have grown into global leaders.

This fund provides exposure to a basket of local innovators, including WiseTech Global Ltd (ASX: WTC), Xero Ltd (ASX: XRO), and Carsales.com Ltd (ASX: CAR). These businesses benefit from recurring revenue, strong customer retention, and global expansion opportunities.

It was recently recommended by analysts at Betashares.

The post The smartest ASX ETFs for investors in their 20s and 30s appeared first on The Motley Fool Australia.

More reading

• Stocks to target for a tech rebound in 2026
• How to build a $100,000 ASX share portfolio starting at zero
• The ultimate ASX ETF portfolio for beginners in 2026
• How to invest your first $1,000 in the share market the smart way
• 5 ASX ETFs for beginner investors in 2026 and beyond

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF, Betashares Capital – Asia Technology Tigers Etf, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, Baidu, BetaShares Nasdaq 100 ETF, Nvidia, Taiwan Semiconductor Manufacturing, Tencent, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet, Apple, CAR Group Ltd, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 HMC Capital. The Motley Fool Australia has recommended HMC Capital and HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

If you invest long enough, you’ll eventually run into an “I wish I had invested in that earlier” situation. They are par for the course. For me, one such missed opportunity is Nvidia (NASDAQ: NVDA), a stock I noticed but glossed over years ago.

From where it traded five years ago, Nvidia’s stock is up by around 1,240%, meaning a $1,000 investment then would be worth around $13,400 today. 

NVDA data by YCharts.

An AI must-have

There’s no doubt that Nvidia’s role in the artificial intelligence (AI) ecosystem — as the main supplier of high-end graphics processing units (GPUs) and other key data center hardware and software — has played a huge role in its recent success. In the past five years, its revenue has increased by more than 1,000% (to $57 billion in its last fiscal quarter), and it’s now the world’s most valuable public company.

As the use of AI continues to grow and companies continue to invest in AI infrastructure, Nvidia will undoubtedly be one of the biggest beneficiaries. It won’t always have the level of dominance in the AI accelerator market that it does now, but it has solidified itself as a cornerstone of the industry.

I wouldn’t expect it to repeat its stock performance of the last five years over the next five, but the signs still point to it being a good long-term play. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post If you’d invested $1,000 in Nvidia 5 years ago, here’s how much you’d have today appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• Forget Nvidia? The under the radar AI stock everyone’s suddenly watching
• Better artificial intelligence stock: Palantir Technologies vs. Nvidia
• Prediction: Nvidia stock is going to soar past $300 in 2026
• How to invest your first $1,000 in the share market the smart way
• Prediction: This AI stock will be the most surprising winner of 2026

Stefon Walters 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 Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Picking the right ASX shares to fit a portfolio can be a tricky business. I tend to think that the best stocks are the businesses that we can foresee being around in a hundred years’ time, and that have some kind of moat. This should ensure that investors continue to enjoy a decent return on their capital and grow wealth at a healthy clip. Today, let’s talk about two Australian dividend giants that I think fit this bill nicely.

2 Australian dividend giants that any ASX investor can buy

Telstra Group Ltd (ASX: TLS)

First up is Telstra, the telco we all know and may or may not love. Telstra has been the dominant telecommunications provider in Australia for as long as anyone can remember. Over the years, this dominance has shifted from telephony services to providing mobile and fixed-line internet, with Telstra almost universally acknowledged as possessing the best mobile network in the country. Given the importance of these connections to modern life, both in the personal and professional sense, Telstra’s dominance looks assured for the foreseeable future.

This essential nature offers investors inherent defensiveness as well. Demand for internet and mobile services tends to be resistant to the booms and busts of the economic cycle, as well as inflation. That protects Telstra’s earnings base, and thus, the company’s dividends.

Telstra has always been a dividend giant of the ASX, having funded fat payouts for decades. The telco has increased this dividend annually for the past four years, too. It doled out a total of 16 cents per share in 2021, but managed to pay a total of 19 cents per share in 2025. Today, Telstra offers a dividend yield of above 3.8%, which usually comes with full franking credits attached.

Coles Group Ltd (ASX: COL)

Coles has only been on the ASX in its own right for a few years, having been spun out of Wesfarmers Ltd (ASX: WES) back in 2018. Since then, however, Coles has built out an impressive dividend track record. It has increased its annual payouts every single year since its ASX listing.

2020 saw this dividend giant pay a total of 57.5 cents per share. That annual total rose to 69 cents per share this year.

Like Telstra, Coles offers investors defensiveness in spades. After all, this is a consumer staples company that sells food and household essentials. Those are goods that we all need to buy consistently, regardless of what the economy or inflation is doing. Coles also owns the Liquorland bottle shop chain, which supplements that defensiveness.

Today, Coles shares are trading on a fully franked dividend yield of just under 3.2%.

The post 2 Australian dividend giants that belong in any portfolio appeared first on The Motley Fool Australia.

More reading

• Wesfarmers shares offer one thing no other ASX 100 stock does – can it last?
• Up 24% in a year! The red-hot Telstra share price is smashing BHP, Westpac and Coles
• Here’s the dividend forecast out to 2030 for Coles shares
• 2 ASX blue-chip shares offering big dividend yields
• How to invest your first $1,000 in the share market the smart way

Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group. 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.

The small side of the market has been a great place to be this year.

Since the start of 2025, the S&P/ASX Small Ordinaries index has risen by a sizeable 17%.

As a comparison, the widely followed All Ordinaries index is only up by 4.9% since the turn of the year.

With that in mind, if you are wanting to gain exposure to the small side of the market, then it could be worth hearing what Bell Potter is saying about the three small cap ASX shares listed below.

Here’s why it thinks they are among the best to buy for 2026:

Integral Diagnostics Ltd (ASX: IDX)

This diagnostic imaging company could be a top pick small cap investors according to Bell Potter.

It likes the company due to its merger with Capitol Health, which has boosted its network to 151 clinics. It also sees opportunities to continue its growth through greenfield and brownfield investments, as well as mergers and acquisitions (M&A). It said:

The merger between Integral Diagnostics and Capitol Health results in a diagnostic imaging (DI) company which operates 151 clinics throughout Australia. Its strongest presence will be within Victoria and Queensland (67 & 41 locations respectively) with minor penetration in the other States. The company offers a range of imaging modalities through its clinics with the largest contribution to revenue from CT (31%) followed by US (24%), MRI (13%) and X-Ray / Diagnostic Radiology (11%), and Nuclear Medicine PET (5%). The growth strategy has centred around a combination of greenfield & brownfield investments and M&A opportunities.

Kinatico Ltd (ASX: KYP)

Another small cap ASX share that Bell Potter is bullish on is know your people solutions provider Kinatico.

It sees opportunities for the company to grow strongly through leveraging its large customer base. The broker explains:

Kinatico is a leading provider of “know your people” solutions to organisations in Australia and New Zealand. The company operates two key businesses: its legacy CVCheck brand, which provides employment screening and verification services to over 10,000 repeat corporate customers and its new key focus, a SaaS-based business that delivers real-time workforce compliance management and monitoring. The core strategy is to leverage the large customer base of the legacy CVCheck business to provide a ready-made sales pipeline for its higher growth SaaS compliance solutions.

Praemium Ltd (ASX: PPS)

This investment platform provider is a third small cap ASX share that has been given the thumbs up from Bell Potter.

It has been pleased with the company’s performance in recent times and feels that the market is not appreciating this. The broker highlights that at 20x forward earnings, its shares are significantly cheaper than its larger rivals. It said:

While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~20x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

The post 3 of the best Australian small cap shares to buy for 2026 appeared first on The Motley Fool Australia.

More reading

• Macquarie predicts this ASX All Ords healthcare stock to surge past $1 billion over the next 12 months
• 2 ASX small-cap shares to buy right now

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 Praemium. The Motley Fool Australia has recommended Integral Diagnostics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In the next S&P Dow Jones Indices rebalance on 22 December, six companies will ascend into the S&P/ASX 200 Index (ASX: XJO).

Three are gold mining stocks: Ora Banda Mining Ltd (ASX: OBM), Pantoro Gold Ltd (ASX: PNR), and Resolute Mining Ltd (ASX: RSG).

Also entering the ASX 200 are Canadian uranium miner, Nexgen Energy (Canada) CDI (ASX: NXG), telco share Aussie Broadband Ltd (ASX: ABB), and nuclear technology developer, Silex Systems Ltd (ASX: SLX).

Rebalances are important because they ensure our indices accurately rank Australia’s largest companies by market capitalisation.

Joining the benchmark index is a major win for these companies.

Not only does it give them a bit of prestige and greater standing in the minds of investors, but it also forces passive institutional investment.

You see, many exchange-traded funds (ETFs) and managed funds track the performance of the ASX 200.

So at each rebalance, the fundies have to buy the stocks that join the ASX 200 and sell those that leave so their ETFs function correctly.

This often leads to extra trading activity around the ASX 200 rebalance date, which may affect a company’s share price.

So, how have these about-to-be ASX 200 shares performed in 2025, and should you buy any of them?

Let’s defer to the experts.

Expert ratings on newly-crowned ASX 200 shares

Ora Banda Mining shares

The Ora Banda Mining share price has risen 83% in 2025 to $1.21 at the time of writing.

Macquarie just upgraded its rating on Ora Banda shares from neutral to outperform with a 12-month price target of $1.50.

The broker said:

We still expect gold to trade at historically high levels in the near-term while also being held back by an upturn in global growth and a monetary policy easing cycle that falls short of market expectations.

MA Financial has a hold rating on this soon-to-be ASX 200 gold share with a $1.22 target.

Pantoro Gold shares

The Pantoro Gold share price has risen 194% to $4.56 in the year to date (YTD).

Tim McCormack from Canaccord Genuity has a buy rating on Pantoro Gold shares with a price target of $7.30.

Morgans maintained a trim rating on the soon-to-be ASX 200 share after its 1Q FY26 update.

The broker lowered its price target from $5.92 to $5.06, commenting:

PNR delivered a softer-than-expected operating result for 1Q, even relative to our already conservative expectations despite record gold prices.

A series of isolated operating issues and underground mine sequencing drove lower head-grade and thus lower ounce production and higher unit costs.

PNR has reiterated its FY26 guidance.

Resolute Mining shares

The Resolute Mining share price has risen 159% to $1.06 per share on Tuesday.

Macquarie gives Resolute Mining shares an outperform rating with a price target of $1.35.

The broker said:

Execution of the Syama expansion project remains key to our outlook for RSG in Mali.

Delivery of the Doropo feasibility study and positive progress towards development is also key longer term.

RSG continues to be exposed to geopolitical risk in Mali due to recent actions by the government.

Canaccord Genuity also has a buy rating on this soon-to-be ASX 200 gold share with a 12-month target of $2.

Nexgen Energy shares

The Nexgen Energy share price has risen 30% in 2025 to $14.03 today.

Shaw & Partners has a buy rating on this soon-to-be ASX 200 energy share with a price target of $17.70.

Petra Capital is also optimistic with a buy rating and a target of $17.14.

Bell Potter gives Nexgen shares a hold rating with a price target of $13.05.

Aussie Broadband shares

The Aussie Broadband share price has risen 43% in the YTD to $5.05 today.

Macquarie recently downgraded Aussie Broadband shares to a neutral rating with a price target of $5.10.

Jarden gives this soon-to-be ASX 200 telco share a buy rating with a target of $5.80.

Canaccord Genuity is also positive on Aussie Broadband shares. It has a buy rating and a target of $6.85.

Silex Systems shares

The Silex Systems share price has risen 66% in 2025 to $8.47 today.

My colleague, Leigh Gant, describes Silex Systems as “one of the most fascinating energy technology stories on the ASX“.

Canaccord Genuity has a buy rating with a target of $9.42 on this soon-to-be ASX 200 industrials share.

Shaw & Partners also has a buy rating with a 12-month price target of $11.20.

The post Broker ratings on 6 ASX shares about to join the ASX 200 appeared first on The Motley Fool Australia.

More reading

• 7 ASX mining shares to buy for Christmas amid upgrades from Macquarie
• Should we be paying more attention to these two rocketing ASX small-cap mining stocks?
• 6 ASX shares including Ora Banda and Aussie Broadband ascend into ASX 200
• Why Firefly Metals, Pantoro Gold, Step One, and Vulcan Energy shares are sinking today
• Why Catapult, Collins Foods, Guzman Y Gomez, and Pantoro shares are falling today

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 Aussie Broadband and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Aussie Broadband and Ma Financial Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This ASX tech stock has seldom been short of drama this year.

The share price of Catapult Sports Ltd (ASX: CAT) was up more than 110% at one point this year, then sliding 23% over the past month before bouncing back at the start of this week with a 3% gain.

At the time of writing, the ASX tech stock changes hand at $4.61 apiece, a loss of 2.2%.

Growing pains

The sharp moves reflect both the promise and growing pains of a company still trying to turn global presence into consistent commercial momentum. However, behind the volatile ASX tech stock is a business that is quietly gaining traction.

This Melbourne-based ASX tech stock is best known for its wearable GPS performance trackers and analytics platforms used by elite teams worldwide. It has been steadily expanding its footprint across the US, Europe, and major leagues, like the NBA, Premier League, and top rugby competitions.

Global penetration

Catapult has reached a level of global market penetration that few Australian firms in the tech sector have achieved. The sports tech company snapped up Perch, a specialist business in strength-training technology, and recently took over Impect GmbH, a German analytics provider focused on elite soccer scouting and analysis.

The acquisitions align well with Catapult’s long-term vision of becoming the global platform of choice for professional sports teams. They strengthen the product portfolio of the ASX tech stock and deepen its data capabilities.

Robust contracts, fear of dilution

Beneath the share price turbulence, the fundamentals of the ASX tech stock remain robust. In its latest half-year results update Catapult reported annualised contract value of US$115.8 million, a 19% lift compared to the year before.

The average value per contract per team also continues to rise, and the company reports that customers now typically stay with Catapult for nearly 8 years.  

Despite healthy underlying metrics, the recent equity raising and acquisition have stoked fear of dilution and integration risk. Some investors remain cautious because the pay-off from such acquisitions, especially in software-heavy, high-growth companies, can take time to materialize.

The broader tech sell-off also dampened sentiment toward high-growth, speculative names like Catapult. This prompted some investors to cash their profits.

Bullish outlook

Analysts seem overwhelmingly bullish on the ASX tech stock. They forecast an average 12-month target of $6.96, which suggests a 51% upside at the current share price.

Bell Potter likes Catapult Sports because of its strong recurring revenue, the acquisitions of Perch and Impect, and the attractive valuation.

The broker highlighted:

Importantly, CAT is now consistently generating positive EBITDA and FCF, marking a clear shift in the maturity of the business and supporting greater operating leverage as subscription revenue scales. Following a recent share price pullback, the stock screens more attractively relative to its growth outlook, and we see scope for a re-rate as management sustains cash generation and continues to capitalise on the significant under penetration of wearables and analytics across elite sport.

The post Can this ASX tech stock rise again after last month’s 22% tumble? appeared first on The Motley Fool Australia.

More reading

• Bell Potter names more of the best ASX 200 shares to buy in December
• These ASX 200 shares could rise 30% to 40% in 2026
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Catapult, Step One, WiseTech Global shares
• Why Catapult, Collins Foods, Guzman Y Gomez, and Pantoro shares are falling today

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

The BHP Group Ltd (ASX: BHP) share price is currently flat this afternoon, despite the mining giant unveiling a major new infrastructure agreement tied to its Western Australia Iron Ore (WAIO) operations.

At the time of writing, the BHP share price is down 0.12% to $44.41. Meanwhile, the broader S&P/ASX 200 Index (ASX: XJO) has also slightly fallen into negative territory, down 0.20%.

Let’s take a look at what was announced.

A closer look at the agreement

According to the release, BHP entered into a binding deal with Global Infrastructure Partners (GIP), an investment group owned by BlackRock. The latter is the world’s largest asset manager that handles more than $12.5 trillion in assets.

The partnership centres around BHP’s inland power network that supports its WAIO operations in the Pilbara region of Western Australia.

Under the arrangement, a new trust will be set up, with BHP owning and controlling 51% and GIP holding the remaining 49%.

GIP will contribute US$2 billion for its stake, while BHP will pay a tariff based on its use of WAIO’s inland power network over the next 25 years.

BHP will continue to run WAIO and maintain full control of the inland power infrastructure. Management noted that the deal does not affect any existing joint venture agreements or its commitments to the Western Australian government.

WAIO will keep operating as normal, with its long-term goal of increasing iron ore production to 305 million tonnes per year.

What will BHP do with the cash?

Management noted that the proceeds of the agreement will be evaluated and deployed according to BHP’s capital allocation framework. In essence, this will free up capital while still allowing BHP to continue running its operations.

Completion is expected before the end of FY26; however, it is subject to the usual regulatory approvals, such as the Foreign Investment Review Board (FIRB).

What BHP’s executives said

BHP CEO Mike Henry highlighted that the deal gives BHP access to capital while maintaining operational and strategic control. He said:

This arrangement enables BHP to access capital and maintain operational and strategic control of a critical part of WAIO’s infrastructure.

While BHP CFO Vandita Pant added that the move is a strong example of disciplined portfolio management, strengthening the balance sheet and supporting long-term shareholder value.

Brief summary on GIP

Global Infrastructure Partners (GIP) is one of the world’s largest infrastructure investors, with approximately US$189 billion in assets under management. Its investments span energy, transport, water, and digital infrastructure.

What this could mean for the BHP share price

Although the deal has no immediate impact on iron ore production, it does release capital, strengthen BHP’s growth pipeline, and reduce funding pressure during a period of rising project costs across the mining sector.

I think this is a smart move that gives BHP a bit more financial breathing room while still keeping control of how it runs and grows the business.

The post BHP signs US$2 billion deal: Here’s the key takeaway 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 recommended BlackRock. 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.