Category: Stock Market

Yesterday the ASX roared back to life after a rough few weeks. This included a big gain for three exciting ASX healthcare shares: 

• Tetratherix Ltd (ASX: TTX) rose 10% 
• SDI Ltd (ASX: SDI) gained 7% 
• Saluda Medical Inc (ASX: SLD) climbed 7%. 

These smaller healthcare companies fall within the high risk category of the stock market. 

These kinds of shares can deliver outsized returns when clinical trials succeed, regulatory approvals are secured, or breakthrough technologies gain commercial traction. 

However, these companies also carry significant risk due to limited revenue, funding dependence, and the potential for sharp share price declines if research outcomes or market expectations disappoint.

Let’s see what was prompting the big gains yesterday and if experts are tipping further upside. 

Tetratherix continues to climb 

Tetratherix develops a biostealth fluid matrix for regenerative medicine. The firm offers Tetramatrix as its primary product.

It has been one of the hottest ASX healthcare stocks in 2026, rising 68% since the start of the year. 

The company’s recent quarterly report highlighted progress toward commercialising its Tegenix product via a global agreement with Henry Schein and expanding into precision medicine with its STEPP drug-delivery platform, including a lucrative R&D deal.

This prompted a speculative buy rating from Morgans along with an updated price target of $6.84. 

From yesterday’s closing price of $5.55, this indicates a further 23% upside. 

SDI scheme approved by ASIC

Yesterday, SDI rose over 7% after a key company announcement. 

According to the release, it is being acquired by a Chinese-backed buyer group for A$1.40 cash per share through a court-supervised process called a scheme of arrangement. 

The Supreme Court of New South Wales has approved SDI holding a shareholder vote and sending shareholders the official Scheme Booklet explaining the deal and including an independent expert’s report. 

Shareholders will now review the documents and vote on whether to approve the takeover, which still requires final shareholder and court approval before completion.

At the time of writing, this ASX healthcare stock is trading for roughly $1.34 per share, meaning the offering is 4.5% higher than the current price. 

Saluda Medical shows signs of life 

Saluda Medical shares also jumped 7% yesterday. 

This was positive news for investors, especially given the stock has fallen more than 65% in 2026. 

Saluda Medical is a commercial-stage medical device company commercialising spinal cord stimulation (SCS) therapy. Saluda is currently a single product company, centred around its differentiated SCS product called the ‘Evoke System’. 

It looks like this rise could be a sign of what’s to come. 

Bell Potter recently placed a speculative buy recommendation and $2.00 price target on this ASX healthcare stock. 

This implies 300% upside from current levels. 

The broker is optimistic thanks to its considerable commercial traction. 

The post Are these rocketing ASX healthcare shares a must buy? appeared first on The Motley Fool Australia.

More reading

• Meet the ASX small-cap healthcare company which could triple this year
• Two ASX healthcare shares that could triple in the next year
• Already up 42% this year, Morgans says this ASX healthcare stock can continue to rocket
• This ASX biotech stock could deliver 40%-plus returns Morgans says

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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a strong session and raced higher. The benchmark index rose 1.15% to 8,604.7 points.

Will the market be able to build on this on Wednesday? Here are five things to watch:

ASX 200 to fall

The Australian share market looks set to fall on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 32 points or 0.35% lower. In the United States, the Dow Jones fell 0.65%, the S&P 500 dropped 0.65%, and the Nasdaq tumbled 0.85%.

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued session after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.05% to US$108.59 a barrel and the Brent crude oil price is down 0.6% to US$111.45 a barrel. Traders were selling oil after US-Iran tensions eased slightly.

Catapult results

Catapult Sports Ltd (ASX: CAT) shares will be on watch on Wednesday when the sports technology company releases its full-year results. Bell Potter is expecting a strong result from Catapult this morning. It said: “The one figure where we see some upside risk is management EBITDA where the guidance is growth of approximately 50% which implies a figure of c.US$22.9m and we forecast US$23.0m whereas consensus appears to be only around US$22.4m. The other key metrics we expect to be consistent with the guidance of ACV b/w US133-134m (vs BPe US$133.6m), free cash flow excluding transaction costs b/w US$5-6m (vs BPe US$5.6m) and Rule of 40 >33% (vs BPe 44%/34% including/excluding IMPECT on a constant currency basis).”

Gold price falls

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 1.5% to US$4,488.6 an ounce. Rising bond yields have weighed heavily on the precious metal.

Buy TechnologyOne shares

Bell Potter has named TechnologyOne Ltd (ASX: TNE) shares as a buy with a $32.25 price target following the enterprise software provider’s half-year results. It commented: “With little change in our forecasts there is no change in our TP of $32.25 and we maintain our BUY recommendation. There is perhaps a lack of short term catalysts for the stock but we believe the stock should continue to perform well given it is in our view the best positioned tech stock on the ASX to benefit from rather than be disrupted by AI. We also see very little if any downside risk to the guidance given the high level of SaaS and recurring revenue (c.93% of total revenue in H1), good visibility and strong pipeline.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• ASX 200 charges higher as buyers return after Monday’s sell-off
• Why are Technology One shares crashing 4% today?
• ASX 200 rebounds as Trump calls off Iran strikes amid potential deal
• How did Australian super funds fare in April after steep falls in March?

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

Picking individual winners in the artificial intelligence revolution is a difficult thing to do.

However, there have been success stories.

Nvidia has already surged more than 1,000% in two years.

What’s more, Microsoft, Alphabet, and Meta Platforms have each delivered extraordinary returns as AI spending accelerates.

But Australian investors may be feeling slightly left on the sidelines.

The Betashares Nasdaq 100 ETF (ASX: NDQ) offers a different approach: instead of betting on a single company, it gives Australian investors exposure to 100 of the world’s most powerful technology businesses in a single ASX trade.

What NDQ actually holds

NDQ tracks the Nasdaq 100 Index, which comprises 100 of the largest non-financial companies listed on the Nasdaq exchange.

Its top holdings read like a who’s who of the global technology landscape, including Microsoft, Nvidia, Amazon, Alphabet, Micron, and Broadcom.

These companies are among the most profitable companies ever created.

Each has dominant market positions, enormous cash flows, and the financial firepower to lead the AI buildout for years to come.

Together, the top seven holdings account for the vast majority of AI-related capital expenditure globally.

A Goldman Sachs report projects that Microsoft, Alphabet, Amazon, and Meta would spend nearly US$500 billion on AI infrastructure in 2026

Furthermore, because the index rebalances on an annual basis, NDQ ETF automatically adjusts to reflect the market’s view of which companies deserve the largest weightings.

The performance track record

NDQ’s unit price has more than doubled over the past five years, reflecting the extraordinary earnings growth delivered by its underlying holdings.

Today NDQ trades near all-time highs, up approximately 25% from its 52-week low of $48.11 reached in May 2025.

In addition, the fund pays distributions twice a year, in January and July, providing a modest but growing income stream on top of the capital growth.

All of this comes at a relatively low management fee of 0.48% per annum.

This represents one of the most cost-effective ways for Australian investors to access a globally diversified technology portfolio.

The AI angle is only getting stronger

The case for NDQ is increasingly inseparable from the case for artificial intelligence.

Microsoft’s Azure cloud platform, Amazon’s AWS, and Alphabet’s Google Cloud are the three dominant providers of AI infrastructure globally.

All three sit inside NDQ’s top ten holdings.

Nvidia, the semiconductor company whose GPUs power the vast majority of AI model training and inference workloads worldwide, has become the world’s most valuable company by market capitalisation and remains a core NDQ holding.

Meanwhile, Meta’s AI-powered advertising platform continues to grow revenues at a double-digit pace.

Apple, too, is embedding AI across its entire product ecosystem through Apple Intelligence.

The risks worth knowing

NDQ is not without risks and investors should understand them clearly before buying.

The fund carries meaningful currency risk, as its underlying holdings are priced in US dollars.

This means that a strengthening Australian dollar will reduce investor returns in AUD terms.

Concentration risk is also real, with the top ten holdings accounting for almost 50% of the index weight.

Moreover, the fund has no exposure to financial companies, which means it misses significant parts of the broader US economy.

Finally, at current valuations, the Nasdaq 100 trades at a premium to its long-run historical average, which limits the margin of safety for investors buying today.

Foolish takeaway

For Australian investors who believe artificial intelligence will reshape the global economy over the next decade but do not want the risk of picking individual winners, NDQ offers an ideal solution.

The ETF is diversified, low cost, liquid, and loaded with the companies best positioned to benefit from the AI megatrend.

The post Why the Betashares Nasdaq 100 ETF could be the best way to capture the AI boom appeared first on The Motley Fool Australia.

More reading

• Why invest in Betashares Nasdaq 100 ETF (NDQ) at an all-time high?
• 5 of the best ASX ETFs to buy and hold in 2026
• How I’d build a simple ASX portfolio with just 3 ETFs
• I love the BetaShares Nasdaq 100 ETF (NDQ). Here’s why I sold it.
• The best way to invest in AI on the ASX

Motley Fool contributor Mark Verhoeven 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 Alphabet, Amazon, Apple, BetaShares Nasdaq 100 ETF, Broadcom, Goldman Sachs Group, Meta Platforms, Micron Technology, Microsoft, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been a rough 2026 for ASX consumer discretionary stock Temple & Webster Group (ASX: TPW). 

The company is an online-only retailer of furniture and homewares. Some of its products include office furniture, lighting, rugs, wall art, and home décor.

Since January, its share price has fallen 64%. 

This includes 30% in the last month alone. 

Why are consumer discretionary shares struggling?

Rising interest rates, inflation and cost of living pressures have weighed heavily on ASX consumer discretionary shares. 

The sector relies on consumers having enough disposable income to spend on non-essential items like furniture and homewares. 

As borrowing costs climbed and household budgets tightened, demand weakened, putting pressure on sales growth and investor sentiment toward companies like

However a new report from Bell Potter suggests this struggling consumer discretionary stock could rebound. 

The broker sees 40% upside for the company following its recent trading update.

What did the company report?

Temple & Webster provided FY26 guidance of $665-675m in revenue (up 11% to 12%) and EBITDA of $20-22m (up 6% to 17%) at their recent trading update.

The revenue was a 6% miss to Bell Potter estimates.

The EBITDA at the mid-point was a 5% miss to its forecast. 

According to Bell Potter, the company has recalibrated growth levers and implemented some new pricing/marketing initiatives in Mar-May.

In FY27, the company expect a clear path to achieving ~$40m EBITDA post these initiatives independent of the revenue growth.

Upside remains 

Bell Potter has reduced its price target on this ASX consumer discretionary stock to $7 (previously $13). 

Despite the reduction, the updated price target from Bell Potter still indicates an upside potential of 41% from yesterday’s closing price. 

While our estimates continue to factor in some downside risk to current company expectations/consensus, we see long term valuation support in a high-quality e-commerce retailer with range, pricing/scale advantages, AI/data capability backed by a strong balance sheet (~$160m cash, BPe) to take up inorganic growth opportunities.

It’s worth noting that Bell Potter isn’t the only broker seeing this ASX consumer discretionary as a buy-low candidate. 

Macquarie renewed its buy rating on Temple & Webster shares recently with a $13.70 target. 

This implies a potential 173% upside.

On the bear side, DP Wealth Advisory named this online furniture retailer’s shares as a sell earlier this week.

It thinks that the higher oil prices and interest rates are likely to weigh on discretionary spending.

The post Bell Potter is tipping a 40% rebound for this ASX consumer discretionary stock appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX shares down 70% that could be cheap buys
• Why experts are selling these 3 ASX shares this week
• Meet the ASX small-cap healthcare company which could triple this year
• 3 ASX shares down over 60% that could be bargain buys

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 Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For income investors tracking the ASX banking calendar, this month is a big one.

Westpac Banking Corp (ASX: WBC) declared its 2026 interim ordinary dividend on 5 May and the ex-dividend date fell earlier this month.

Here is the full picture of what Westpac is paying and what shareholders can expect for the rest of the year.

What Westpac is paying

Westpac declared a fully franked interim dividend of 77 cents per share, payable on 26 June 2026.

That payment is 100% franked with Australian franking credits at the company tax rate of 30%, and also carries New Zealand imputation credits of NZD 6 cents per share.

Consequently, for Australian taxpayers in higher tax brackets, the effective after-tax yield rises materially above the headline figure once franking credits are grossed up.

Based on Westpac’s current share price of approximately $36.40, the interim dividend implies an annualised yield of around 4.2% on a fully franked basis.

The grossed-up yield, including the value of franking credits at the 30% tax rate, brings the grossed-up yield to around 6.0%.

That compares favourably with term deposit rates currently on offer from the major banks, making Westpac a competitive option for income-focused investors who also want exposure to potential capital growth over time.

What about the full year?

Looking further ahead, consensus analyst estimates on CommSec point to a full-year FY2026 dividend of 155 cents per share for Westpac, up from 153 cents in FY2025.

That implies a final dividend of approximately 78 cents per share, payable in December 2026, following the release of Westpac’s full-year results in early November.

For retirees in the zero tax bracket, those franking credits translate into additional cash refunds.

What the result showed

The interim dividend reflects a solid first-half result for Westpac.

The bank posted statutory net profit of $3.4 billion for the first half of FY2026, up 3% on the prior corresponding period, alongside total lending and deposit growth of 7% year-on-year.

Management’s long-running cost reduction program continues to gain traction.

The bank’s capital position also remains well above regulatory minimums.

However, it is worth noting that several major brokers including Macquarie and Morgan Stanley carry underperform or sell ratings on Westpac shares, citing valuation concerns and competitive pressure in the mortgage market.

Foolish takeaway

Westpac offers income investors a reliable, fully franked dividend stream backed by one of the most systemically important banks in the country.

For investors focused on tax-effective passive income rather than capital growth, the upcoming June payment and the promise of a similar final dividend in December would be encouraging.

The post Here is what Westpac is paying shareholders in June 2026 appeared first on The Motley Fool Australia.

More reading

• How to build a $150,000 ASX share portfolio from scratch
• Which big four ASX bank stock is the best buy right now?
• Buying Westpac shares? Here’s the yield you’ll get today
• Why is the Macquarie share price falling today?
• What Macquarie’s latest result tells investors about the year ahead

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

DroneShield Ltd (ASX: DRO) shares closed in the red on Tuesday afternoon.

The shares tumbled 6.07% to close at $2.94 each.

The drone operator’s latest share price tumble means DroneShield shares have now crashed 19% over the past month alone. They’re also 12% lower for the year-to-date but 139% higher than this time 12 months ago.

If I invested $5,000 in DroneShield shares 6 months ago, what are they worth today?

Six months ago, the defence technology company’s shares were trading at $1.97 each. It was around this time that the share price bottomed out after crashing 73% in a six-week time period.

Since then, the shares have climbed 49% to the current trading price.

That means, if you bought $5,000 of DroneShield shares six months ago, on the 19th November, it would be worth around $7,450 today.

Meanwhile, a 139% annual increase means that if you invested the same amount in Droneshield shares 12 months ago, you’d have around $11,950 today.

What has happened to Droneshield shares?

Droneshield shares have fluctuated wildly in the first few months of 2026. Over the year-to-date, DroneShield shares have wavered anywhere between the current trading price and a 2026-high of $4.74 back in January. 

You could argue that, as an Australian defence technology company specialising in counter-drone systems and electronic warfare solutions, Droneshield is one of very few ASX shares which have actually benefitted from rising geopolitical volatility.

In a conflict situation, drones are used for everything from surveillance to direct strikes. This creates a huge demand for counter-drone systems like the ones DroneShield specialises in. This is why governments are hiking their spend on defence, with a focus on anti-drone defence systems. 

And demand continued even after the US and Iran conflict cooled. Meanwhile, Droneshield has also announced several new military contracts and orders recently.

But the reality is, the company operates in a fast-moving industry, expectations are high, timing can be uncertain, sentiment can change direction quickly, and therefore its share price can swing wildly.

Has the drone operator finally come off the boil?

The experts are divided, but it looks like sentiment has cooled.

Last month, three analysts had a strong buy rating on the defence stock, according to TradingView data.

But fast forward to today and there is a very different picture. There are now only two broker ratings; one is a strong buy and the other is a hold.

The average target price for DroneShield shares over the next 12 months has been lowered to $4.10, from $4.50. 

But, at the time of writing, that still implies an impressive 40% upside ahead for investors. 

The post $5,000 invested in DroneShield shares 6 months ago is now worth… appeared first on The Motley Fool Australia.

More reading

• Why DroneShield, Lynas, PLS, and TechnologyOne shares are falling today
• Time to get greedy with DroneShield stock?
• Why I think DroneShield and these ASX growth shares could beat the market over 10 years
• These are the 10 most shorted ASX shares
• Why I would buy CBA and DroneShield shares after selloffs this week

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 positions in and has recommended DroneShield. 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.

Australia’s compulsory superannuation system is one of the most powerful wealth creation engines in the world.

With total assets now exceeding $4 trillion and set to grow further as the population ages, the businesses that manage and administer that capital are sitting in an enviable position.

Two ASX-listed companies in particular deserve closer attention.

Hub24 Ltd (ASX: HUB)

There is a revolution underway in Australian wealth management, and Hub24 sits at the centre of it.

The company operates one of Australia’s fastest growing investment and superannuation platforms, providing financial advisers, stockbrokers, and their clients with an integrated portfolio administration and technology ecosystem.

In Q3 FY2026, Hub24 delivered $4.0 billion in platform net inflows despite challenging market conditions.

This brought total funds under administration to $151.7 billion, up 22% year-on-year.

Moreover, Hub24 has ranked first for quarterly and annual net inflows for nine consecutive quarters, consistently capturing the largest market share gains of all platform providers.

The company expanded its adviser network by 272 practitioners during the quarter to reach 5,549 total advisers, up 11% year-on-year, a metric that directly underpins future asset growth.

In the first half of FY2026, underlying NPAT surged 60% to $68.3 million, reflecting the powerful operating leverage that emerges as a platform business scales.

Hub24 has upgraded its FY2027 platform FUA target to $160 billion to $170 billion and is rolling out its myhub AI ecosystem, which integrates advice tools, technology, and the core platform into a single seamless experience for advisers.

Perpetual Ltd (ASX: PPT)

Perpetual takes a different approach to capturing superannuation capital.

Perpetual is one of Australia’s oldest and most respected investment management firms, overseeing $219.2 billion in assets under management as at 31 March 2026 across a range of global equity and fixed income strategies.

The company is currently in the middle of a significant strategic transformation.

Perpetual announced the sale of its Wealth Management division to Bain Capital Private Equity for $500 million upfront, with a potential further $100 million based on business performance.

The transaction aims to simplify the business, substantially reduce net debt, and sharpen the company’s focus on its core asset management operations.

Following the sale, net debt to EBITDA is expected to fall to approximately 0.2 times, leaving Perpetual with a clean balance sheet and significant capacity to return capital to shareholders or reinvest in growth.

Revenue for the first half of FY2026 came in at $697.9 million, and management continues to invest in its global distribution capability as the primary growth lever for the simplified business.

Foolish takeaway

Hub24 and Perpetual both benefit from Australia’s compulsory superannuation tailwind, but in very different ways.

Hub24 captures the shift of advisers from legacy platforms to modern, technology-first alternatives, and rewards patient investors with consistent earnings growth.

Perpetual, meanwhile, is reshaping itself into a leaner, more focused asset manager with a strengthened balance sheet and renewed strategic clarity.

For long-term investors, both deserve serious consideration.

The post Why these 2 ASX superannuation stocks could quietly build serious wealth appeared first on The Motley Fool Australia.

More reading

• Why this struggling ASX tech stock could surprise investors
• 3 ASX shares that could be much bigger in 10 years
• 3 ASX mid-cap stocks that could be tomorrow’s big winners
• 3 high-quality ASX 200 shares for beginners to buy and hold
• 3 amazing ASX growth shares to buy in May with $20,000

Motley Fool contributor Mark Verhoeven 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 Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) bounced back yesterday after a flat few weeks. 

Australia’s benchmark index rose just over 1% during Tuesday’s trading session.

This sparked fresh 52-week highs for several well-known ASX shares. 

Here’s what experts are saying about these companies right now. 

Telstra Group Ltd (ASX: TLS)

Telstra shares rose another 2% yesterday to hit fresh 52-week highs of $5.52 per share. 

It has now climbed 13% year to date, as investors have pushed their chips in on defensive options like Telstra. 

It is considered a defensive stock because telecommunications services are essential, so customers tend to keep paying for mobile and internet plans even during economic downturns. 

Its large market share, recurring revenue, and relatively stable dividend payments also make earnings less volatile compared with more cyclical industries like mining or retail.

Following this recent share price rise, it appears that Telstra shares are close to fully valued. 

Catapult Wealth recently placed a hold recommendation on the company. 

Additionally, 13 analyst forecasts via TradingView indicate the current share price is 5% above fair value. 

QBE Insurance Group Ltd (ASX: QBE)

QBE shares rose 3% yesterday to hit a fresh 52-week high of $24 per share. 

It has now climbed 21% year to date. 

It has been one of the beneficiaries of rising interest rates. 

QBE is Australia’s second-largest international insurer. 

Insurers can benefit from interest rate rises because they invest premiums and earn more when yields rise.

With that being said, it now appears that QBE shares are approaching fair value. 

Macquarie recently downgraded QBE shares to a hold rating with a $25.10 price target. 

This indicates just 4% upside from current levels. 

Superloop Ltd (ASX: SLC)

Superloop is an Australian telecommunications and internet infrastructure company that provides broadband and NBN services, fibre networks and enterprise connectivity. 

Yesterday, its share price climbed 1.4% to hit a new 52 week high of $3.56. 

It has now risen almost 40% year to date. 

The share price rise has been driven by positive growth for the company. 

It recently reported a 21.2% increase in customers and a 23.3% lift in revenue compared to the prior year.

Despite these positive metrics, the company appears close to full valuation right now. 

Nathan Lodge from Securities Vault recently placed a hold rating on this ASX telecommunications share.

Furthermore, eight analyst ratings via TradingView have an average 12 month price target of $3.50 on Superloop shares. 

The post Are Telstra and these ASX shares a buy, hold or sell after hitting new yearly highs? appeared first on The Motley Fool Australia.

More reading

• Bell Potter says this small-cap ASX share could rise 50%
• Why these ASX income stocks could be better than term deposits
• 136,191 shares of this high-yield ASX dividend stock pays an income equal to the Age Pension
• How to generate $20,000 a year in passive income on the ASX
• How to build a passive income stream with ASX shares

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

Some share price falls are deserved.

A company misses expectations, the outlook weakens, or the market starts questioning whether its growth story still holds together.

But I do not think every sell-off should be treated the same way. Sometimes, good businesses fall out of favour and create a better entry point for patient investors.

Two ASX 200 shares I think could be worth a closer look after recent weakness are named in this article.

CSL Ltd (ASX: CSL)

CSL has been one of the biggest disappointments on the ASX over the past year.

The biotechnology giant has lost its premium rating following a series of underwhelming updates, guidance downgrades, and execution concerns.

There is no point pretending this is the same CSL that investors used to pay up for without hesitation. It is not. The company has work to do to rebuild trust and prove that earnings growth can become consistent again.

But I think the market may now be pricing in a very harsh outcome.

CSL still has valuable positions in plasma therapies, vaccines, and specialist medicines. Demand for many of its core products is supported by long-term healthcare needs, and the company still has a global scale that few competitors can match.

That is why I remain interested. I see CSL as more of a recovery story today than the classic compounder it used to be. But at a much lower valuation, I think that recovery potential could be meaningful for investors willing to wait.

The recovery may take time, and sentiment could remain weak for a while yet. But if CSL can stabilise earnings, improve execution, and restore confidence, I think today’s share price could look too cheap in hindsight.

James Hardie Industries plc (ASX: JHX)

James Hardie Industries is another quality ASX 200 share that has been under pressure.

The building products giant is heavily exposed to the North American housing market, where higher interest rates and weaker renovation activity have weighed on sentiment.

That cycle has been uncomfortable. When housing activity slows, demand for exterior building products can soften, and earnings expectations can come under pressure.

But I do not think the long-term case has disappeared. James Hardie still has a strong position in fibre cement building materials, particularly in the United States. Its products are used in repair, renovation, and new construction, giving the company exposure to a large market that should recover over time.

I also like the fact that this is not a business starting from scratch. James Hardie has spent years building brand recognition, distribution, manufacturing scale, and customer relationships. Those advantages do not disappear just because the housing cycle is difficult.

In my view, the current weakness could be creating an opportunity to buy a high-quality building products company while expectations are low.

If interest rates eventually ease, renovation activity improves, and housing confidence returns, James Hardie could be well placed to benefit.

Foolish Takeaway

CSL and James Hardie shares are not obvious easy wins today.

Both businesses are dealing with real challenges, and neither may recover quickly. But I think the market may be too focused on the current disappointment and not focused enough on what these companies could look like in three to five years.

For patient investors, I think both ASX 200 shares could be too cheap to ignore.

The post 2 ASX 200 shares that could be too cheap to ignore appeared first on The Motley Fool Australia.

More reading

• 4 ASX All Ords shares tipped to rise 60% to 75%
• Should I invest $10,000 in CSL shares before the end of May?
• Why is the ASX 200 starting at a 7-week low today?
• Buy, hold, sell: James Hardie, NextDC, and WiseTech shares
• CSL shares crash, but is a comeback looming?

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

Brambles Ltd (ASX: BXB) shares have had a shocker of a week so far, plumbing new 12-month lows after the company significantly downgraded its outlook for the full year.

The question is, does that mean the shares are now going cheap, or is there more pain to come?

I’ve canvassed the views of three major brokers, and all believe there’s some upside in the share price from where Brambles shares are now, but they differ widely in their outlook.

I’ll get to their specific share price targets shortly. Firstly, let’s recap Brambles’ big announcement this week.

Major cost pressures

One of the main features of the announcement was that Brambles was having to spend more on repairing its pallets to bring them up to standard for customers who were increasingly automating their processes.

Brambles said it was progressively increasing its repair quality to meet this demand, which had contributed to creating a bottleneck.

The company said:

During April 2026, this focus on quality consistency has coincided with short-term repair capacity constraints in parts of Brambles’ US subcontractor service centre network which Brambles expects to be resolved by the end of 1H27. These short-term repair capacity constraints have been driven by subcontractor turnover, labour availability challenges and the additional time required to repair pallets consistently to a higher standard. At the same time as repair capacity tightened, Brambles experienced higher than anticipated customer demand.

Brambles said there was a “material” cost increase over the short term. The company said it was also buying another two million pallets in the fourth quarter, with more purchases expected early in FY27.

As a result of these various elements, Brambles downgraded its sales revenue growth forecast to 2% to 3%, down from 3% to 4%, and downgraded its underlying profit growth forecast to 3% to 5%, down from 8% to 11%.

Shares appear oversold

The team at Macquarie have run the ruler over the changes at Brambles and has reduced their price target on the shares from $23.35 to $18.60.

Macquarie said:

A need to invest incrementally in customer outcomes has been a concern for us. Resolving this issue presents ongoing earnings risks, especially if full mitigation requires price adjustment. We think multiples will remain pressured.

The team at Morgans came up with a similar share price target of $18.70.

They said the trading update was disappointing, while noting that Brambles’ US$400 million share buyback, also announced this week, would give the share price some support.

Morgan Stanley was an outlier among the brokers with a price target of $28 on Brambles shares.

They noted that cost headwinds should ease by the end of the first half of FY27, “though further demand spikes and subcontractor exits remain key risks”.

Brambles is valued at $23.74 billion.

The post After this week’s sell-down, is it time to buy Brambles shares? appeared first on The Motley Fool Australia.

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