Category: Stock Market

There are a lot of ASX 200 shares out there for investors to choose from.

Let’s now take a look at three popular options and see if analysts rate them as buys, holds, and sells.

Here’s what they are saying about them:

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans was pleased with this travel agent’s acquisition of UK based online cruise agency Iglu. This is due to Iglu operating in a high growth and high margin segment of the travel industry.

In response, the broker has retained its buy rating with an improved price target of $18.38. It said:

In our view, Iglu is a strategically sound acquisition for FLT’s Leisure business unit, given the cruise sector is a high growth and high margin segment within the travel industry. The acquisition multiple was reasonable for an online business and, importantly, is immediately EPS accretive. FLT’s strong balance sheet can comfortably fund this acquisition and its capital management strategy. We have upgraded our forecasts to reflect the acquisition of Iglu. Despite recent share price appreciation, FLT’s fundamentals remain attractive and we retain a Buy recommendation with a new A$18.38 price target.

Suncorp Group Ltd (ASX: SUN)

Over at Ord Minnett, its analysts aren’t feeling overly positive on insurance giant Suncorp due to its softening premium rate growth.

Although the broker sees value in its shares, it isn’t enough to give it a buy rating. Instead, the broker has put a hold rating and $20.50 price target on Suncorp. It said:

Between weather-related volatility and an industry-wide slowdown in premium rate growth, the outlook for Suncorp (and its peers) remains challenging. This leads Ord Minnett to cut its target price on Suncorp to $20.50 from $22.50, and maintain its Hold recommendation despite the apparent value on offer.

Zip Co Ltd (ASX: ZIP)

Finally, Macquarie remains very bullish on this buy now pay later provider. Although it acknowledges that its rapid total transaction value (TTV) growth is leading to higher loss rates, it believes Zip will still achieve its net transaction margin (NTM) guidance.

As a result of this and its rapid growth, the broker has put an outperform (buy) rating and $4.85 price target on its shares. It commented:

Outperform. We forecast Zip to continue to deliver rapid growth supported by increased product adoption, expansion of merchant network, increased customer engagement and digital product innovation. […] We expect ZIP to deliver attractive TTV growth and NTM in the guidance range, with potential upside risk to earnings.

The post Buy, hold, sell: Flight Centre, Suncorp, and Zip shares appeared first on The Motley Fool Australia.

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

It can be sometimes awkward when the market celebrates a change in C-suite leadership, but that’s exactly what seems to be happening at Bapcor Ltd (ASX: BAP).

Bapcor shares surged as much as 12% today after the company announced the resignation of CEO Angus McKay and the appointment of Chris Wilesmith as its new Chief Executive Officer and Managing Director.

Why the optimism?

The market’s strong reaction reflects a clear message from investors: they are ready for a reset.

A new CEO is likely to bring in fresh ideas and could be the catalyst that Bapcor needs to reset its trajectory.

Bapcor shares are down 56% so far in 2025, but investors will be looking at the new CEO’s background with great optimism.

Wilesmith, a seasoned operator in the automotive aftermarket and broader retail sector, brings decades of experience across businesses closely aligned with Bapcor’s core segments. According to the ASX announcement, he has held senior leadership roles at Super Retail Group Ltd (ASX: SUL) owned brand Supercheap Auto, as well as Jaycar Electronics, and Mitre 10 New Zealand. This should give him deep insight into trade, retail, and supply-chain operations across Australia and New Zealand.

The board highlighted his track record in growing businesses within the very categories Bapcor competes in. That relevance appears to have resonated strongly with shareholders, many of whom have been waiting for more stability and clearer execution after a difficult period for the company.

The market’s enthusiasm also reflects a desire for renewed strategic direction. Bapcor has faced operational and profitability challenges in recent years, including multiple earnings downgrades, rising short interest, and ongoing concerns around its turnaround efforts. With customer-facing brands such as Autobarn, Autopro, and Burson, the business remains a meaningful player in the Australian automotive aftermarket, but execution has held it back.

Wilesmith will officially step into the role on 14 January 2026, with outgoing CEO Angus McKay assisting through a transitional period. The ASX filing notes that Bapcor’s board thanked McKay for the progress made in simplifying the organisation and stabilising its foundations, but the decision to transition leadership now signals the company’s focus on a new phase centred on recovery and growth.

Bapcor shares Takeaway

Investors appear to view Wilesmith’s appointment as a credible catalyst for that next phase. His combination of automotive experience, operational discipline, and exposure to both supplier and competitor dynamics positions him well to address Bapcor’s challenges while unlocking value in its trade and retail networks.

While the share price pop reflects renewed optimism, the real test will come as Wilesmith begins to shape strategy, rebuild confidence, and demonstrate that Bapcor can return to sustainable earnings growth.

For now, the market has rewarded the company for making what many see as a decisive and much-needed leadership shift.

The post Bapcor shares soar 12% on the appointment of a new CEO appeared first on The Motley Fool Australia.

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• Trading near 12-month lows, are Bapcor shares worth a look?

Motley Fool contributor Kevin Gandiya has no positions in any of the stocks mentioned.  The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. 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 for exposure to the energy sector outside giants like Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS), then read on!

Bell Potter has just named one ASX energy stock that it believes could rise over 60% from current levels.

Which ASX energy stock?

The stock that Bell Potter is recommending to clients is Comet Ridge Ltd (ASX: COI).

It is an energy exploration and development company focused on coal seam and conventional gas projects in eastern Australia.

Bell Potter notes that the company has announced a deal to acquire Santos’ 42.86% interest in the Mahalo Joint Venture coal seam gas project. This takes its ownership to 100%.

Comet Ridge is paying $40 million on financial close and a further $20 million on meeting production milestones.

The broker is positive on the deal and believes it will simplify its structure. It explains:

The transaction will vastly simplify COI’s Mahalo acreage, increasing development optionality and overall project funding capacity. COI previously held ground in the Mahalo JV and 100%-owned positions in adjacent permits; COI will move to owning all of the coal seam gas permits 100%. The acquired Mahalo area is fully permitted, FEED is nearing completion and Jemena is working on pipeline FEED.

Mahalo is expected to initially produce up to 60TJ/day into the east coast gas market with FID targeted for mid-2026. STO viewed the asset as non-core and not a near-term priority; COI will now have control to progress that asset under its own timeline. COI is in discussions with the Northern Australia Infrastructure Facility for debt financing and the simplified structure could now attract a strategic partner and gas prepayments.

Big potential returns

According to the note, the broker has responded to the news by retaining its speculative buy rating and 21 cents price target on its shares.

Based on its current share price of 13 cents, this implies potential upside of 61% for investors over the next 12 months.

Overall, the broker feels that Comet Ridge could be a good option for investors with a high tolerance for risk. It concludes:

Our COI valuation is underpinned by COI’s Mahalo projects; we are yet to apply the acquisition of STO’s Mahalo JV interest. The Mahalo JV was awarded a Petroleum Lease in mid-2020, making it one of the few development-ready gas projects capable of delivering near-term supply.

We are positive on Australian east coast gas markets, with supply shortfalls likely to support higher prices. COI is a gas development company with prospective operations and cash flows only. Our Speculative risk rating recognises this higher level of risk and volatility of returns.

The post Why this under-the-radar ASX energy stock could rise 60%+ appeared first on The Motley Fool Australia.

More reading

• 3 reasons everyone is talking about Santos shares today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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 Austral Ltd (ASX: ASB) share price is edging higher on Thursday despite the scale of today’s announcement.

At the time of writing, the shipbuilder’s shares are swapping hands for $6.10, up 2.69%. In comparison, the S&P/ASX 200 Industrials Index (ASX: XNJ) is down 0.66% due to a broader market sell-off.

A billion-dollar landing craft contract

According to the release, Austral announced it has been awarded a $1.029 billion design and build defence contract through its subsidiary, Austral Defence Australia.

The contract covers the design and construction of 18 Landing Craft Medium (LCM) vessels for the Australian Army under the Commonwealth’s Strategic Shipbuilding Agreement.

The vessels will be built at Austral’s Henderson shipyard in Western Australia. Construction of the first LCM is expected to commence in 2026, with the final vessel scheduled for delivery in 2032.

Each steel vessel will be capable of transporting loads of up to 80 tonnes, supporting the Army’s amphibious and logistics operations.

Management noted this is the first design and build contract awarded under the Strategic Shipbuilding Agreement, marking a key milestone for the Henderson shipyard.

Why has the share price response been limited?

The answer likely comes down to timing.

While the headline contract value is substantial, revenue will be recognised progressively over several years. As a result, today’s announcement doesn’t materially change any near-term earnings expectations.

For investors looking at the next one or two earnings results, there’s little here to force the market to re-price Austral shares straight away.

Why it still matters

Looking at the bigger picture, this is an important win for Austral.

The contract strengthens its domestic defence footprint and reinforces its role in Australia’s long-term shipbuilding strategy. It also supports the government’s push for continuous naval construction at Henderson.

Furthermore, it reinforces a broader theme playing out across the sector. Defence spending is rising, programs are getting longer, and governments are leaning more heavily on proven local operators. For companies already part of that system, securing one long-term contract can make it easier to secure the next.

Austral already works across US Navy programs and international defence customers. Adding a multi-year Australian Army contract adds visibility and further diversifies the order book.

Foolish bottom line

This isn’t a near-term earnings upgrade, which explains why the Austral share price has barely moved.

Still, locking in a $1 billion defence program out to 2032 deepens Australia’s backlog and improves long-term visibility in the defence sector.

For patient investors, this is the kind of update that quietly strengthens the investment case, even if the market reaction is limited.

The post Austral lands $1 billion defence deal. So why are its shares barely moving? 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 S&P/ASX 200 Index (ASX: XJO) is out of form once again and trading lower. In afternoon trade, the benchmark index is down 0.2% to 8,565.1 points.

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

Bapcor Ltd (ASX: BAP)

The Bapcor share price is up 13% to $2.01. This has been driven by news that the struggling auto parts company has appointed its new CEO. In January, Chris Wilesmith will join as CEO and managing director. Bapcor’s chair, Lachlan Edwards, said: “Chris brings deep and broad automotive aftermarket experience to Bapcor. His previous senior roles in growing businesses in each of Bapcor’s segments will be critical to take our businesses into their next phase of driving growth and performance.”

IDP Education Ltd (ASX: IEL)

The IDP Education share price is up 1.5% to $5.66. This morning, this language testing and student placement company announced a voluntary change in its revenue recognition accounting policy that will see student placement revenue recognised across all jurisdictions at census date. In addition, management reaffirmed its adjusted EBIT guidance for FY 2026. It continues to expect adjusted EBIT in the range of $115 million to $125 million, including the impact of this accounting change.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is up 2.5% to $27.15. This has been driven by news that the investment platform provider has agreed to pay compensation to members of the Netwealth Superannuation Master Fund (Fund) who suffered a loss through the collapse of the First Guardian Master Fund after reaching agreement with ASIC. The total value of the compensation payments is estimated to be $101 million. Netwealth’s CEO, Matt Heine, said: “The agreed outcome allows us to move forward and continue our work in supporting our members, our clients and our business.”

Ora Banda Mining Ltd (ASX: OBM)

The Ora Banda share price is up 5% to $1.47. Investors have been buying this gold miner’s shares following the release of an update on drill results. These results are for the northern corridor, between Sand King and the historically mined Palmerston shallow open pit. High grade results were received, which the company notes is reinforcing the scale and growth potential of this emerging mineralised system. Ora Banda’s managing director, Luke Creagh, said: “The drilling at Sand King continues to validate our view that we are only in the early stages of unlocking what is potentially a large mineralised system.”

The post Why Bapcor, IDP Education, Netwealth, and Ora Banda shares are pushing higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.15% to 8,572.6 points.

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

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is down 28% to $1.13. This follows the eagerly anticipated release of the uranium producer’s Honeymoon project review. Short sellers have been betting heavily against the company on the belief that the review would disappoint and they were spot on. The company revealed that the Honeymoon review has indicated an expected material and significant deviation from the assumptions underpinning its 2021 Enhanced Feasibility Study (EFS). Boss Energy’s managing director, Matthew Dusci, is hopeful that there is still a way forward. He said: “Although Boss acknowledges this disappointing outcome, the Honeymoon Review and delineation drilling programs have enabled the identification of a potential pathway forward through a new wide-spaced wellfield design. While additional work is necessary to finalise a New Feasibility Study, this development presents an opportunity for Boss to potentially lower operating costs, optimise production profiles, and extend mine life compared to the current wellfield design.”

Paragon Care Ltd (ASX: PGC)

The Paragon Care share price is down 13.5% to 22.5 cents. This follows news that receivers and administrators have been appointed to 54 pharmacies in the Infinity Retail Pharmacy Group after it failed to repay its Wesfarmers Ltd (ASX: WES) debt. It also owes Paragon Care $47 million.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down a further 3.5% to $4.81. Investors have been selling the struggling wine giant’s shares this week after it revealed that trading conditions have worsened and its performance is below expectations. The company’s new CEO, Sam Fischer, said: “We are currently experiencing category weakness in the US and China, two of our key growth markets, which will impact our business performance in the near-term. Maintaining the strength of our brands and the health of their respective sales channels is of critical importance to our Management team and our Board as we navigate through the current environment.”

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is down 3% to $22.76. This has been driven by news that Woodside’s CEO, Meg O’Neill, has resigned after accepting the role of CEO of BP Plc (LSE: BP). Woodside has appointed Liz Westcott as acting CEO, effective today. Commenting on the news, Woodside’s chair, Richard Goyder, said: “Meg leaves Woodside in a strong position, having led the company through the merger with BHP Petroleum, final investment decision on the Scarborough Energy Project, startup of the Sangomar Project, final investment decision for the Louisiana LNG Project, the Beaumont New Ammonia acquisition, introduction of a number of high quality partners in those projects and continued high performance across Woodside’s global operations portfolio.”

The post Why Boss Energy, Paragon Care, Treasury Wine, and Woodside shares are falling today appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Treasury Wine Estates and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BP. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. 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 Qube Holdings Ltd (ASX: QUB) share price is in focus after the company confirmed it has sold its 202-hectare Beveridge property in Victoria, booking about $100 million in pre-tax profit, to be recognised in FY26.

What did Qube Holdings report?

• Sold its interest in a 202-hectare Beveridge (Victoria) land parcel
• Received cash proceeds of approximately $111 million
• Expects a pre-tax profit of around $100 million, to be reflected in FY26
• Profit is classified as non-underlying due to its one-off nature

What else do investors need to know?

The Beveridge land sits within the Beveridge Intermodal Precinct, which is currently being developed by National Intermodal Corporation, a government business enterprise. The buyer, C Capital, is an Asia-Pacific asset manager.

Qube had previously flagged it was reviewing options for its interest in the site. The company highlighted that this sale allows value realisation without the additional capital expenditure that development would have required.

What did Qube Holdings management say?

Qube’s Managing Director, Paul Digney, said:

We are very pleased that Qube has been able to realise significant value from this long-term development asset without needing to undertake the capital expenditure that would otherwise be required to progress the development.

While the sale of our interest means Qube will not be an investor in the development of the Precinct, it does not preclude Qube from being a user in the future and we continue to support the expansion of Australia’s freight infrastructure to support economic growth, reduce road congestion and contribute to the task of reducing emissions in the transport sector.

What’s next for Qube Holdings?

Qube expects the profit from the Beveridge sale will be recognised in its FY26 accounts, strengthening its balance sheet. The company remains committed to the freight and logistics sector, with ongoing support for Australia’s intermodal infrastructure growth.

While Qube steps back from direct investment in the Beveridge Intermodal Precinct, it may participate as a user in the future. Management emphasised continued focus on core assets and prudent capital allocation.

Qube Holdings share price snapshot

Over the past 12 months, Qube Holdings shares have risen 18%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement.

The post Qube Holdings books $100m profit after selling Beveridge property appeared first on The Motley Fool Australia.

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

Santos Ltd (ASX: STO) shares are trading in the green in early afternoon trade on Thursday. At the time of writing, the shares are 1.49% higher for the day at $6.13 a piece.

Today’s uptick is a welcome reprieve for shareholders. Santos shares have fallen 7.5% over the past two weeks, and the stock has now dropped 24% below its three-year high of $8.06 in late August. The shares are currently trading 4.59% below levels this time last year.

What has happened to Santos shares?

Santos shares fell sharply following the company’s half-year results in late August. The downturn was also driven by the collapse of a potential takeover proposal by an ADNOC-led group. 

The group dropped the takeover bid in mid-August after the process raised concerns about governance and regulatory issues.

Dwindling oil prices have also played their part in the Santos share price decline over the past few months.

Santos shares have been in the spotlight this week, again, thanks to falling oil prices. WTI crude oil prices fell earlier in the week following supply concerns, dragging down the independent oil and gas producer’s share price with it.

Overnight on Tuesday, Brent crude oil was trading at near five-year lows, down 2.7% to US$58.92 per barrel. At the time, West Texas Intermediate (WTI) oil was also trading at its lowest levels since February 2021, at around US$55.27 per barrel.

There have been a few positive developments for the company this week, though. Santos announced yesterday that it has accelerated the final repayment under the PNG LNG project finance facility, bringing the facility to a close. Santos made its final $363 million payment six months ahead of the June 2026 repayment deadline.

The company also reported that it has executed a conditional sale and purchase agreement to divest its 42.86% operated interest in the Mahalo Joint Venture to Comet Ridge Ltd (ASX: COI).

What do analysts expect from Santos in 2026?

Analysts are mostly bullish about the projection for Santos shares over the next 12 months. Data shows 9 out of 16 analysts have a buy or strong buy rating on the oil and gas producer’s shares. 

The average target price is $7.34, implying a potential 20.15% return at the time of writing. Although some are significantly more optimistic and think the share price could climb to $8.82 next year. That represents an impressive 44.49% upside from the current trading price.

UBS is one of the brokers that rates the Santos share price as a buy, with a price target of $8.10. The broker said it thinks the company could generate US$1.5 billion of net profit in FY26 and US$1.7 billion in FY28.

The post Santos shares drop 24% from their peak. Is there any upside left? appeared first on The Motley Fool Australia.

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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.

When I’m looking for ASX dividend stocks to buy and hold for passive income, I like to pick companies that will (hopefully) let me sleep well at night. Investing can be stressful at times, and it certainly helps if we can be assured, as much as practically possible, that those dividend paychecks will be arriving in the proverbial mailbox, rain or shine.

Of course, no ASX dividend stock offers absolute income security. You’ll have to invest in a term deposit for that. But even so, there are a few ASX dividend stocks out there that I think offer the next best thing: a reliable source of income that, barring some unexpected black swan event, can be counted on to regularly deposit cash in your brokerage account.

Here are three of those top picks.

Three stress-free ASX dividend stocks to buy for reliable passive income today

Coles Group Ltd (ASX: COL)

First up, we have ASX 200 passive income star Coles. Coles, despite the longevity of the company itself, has only been on the ASX in its own right since late 2018. Since that time, though, the company has built up an impressive track record of dividend payments, delivering an annual dividend increase each year.

Coles is a mature and established consumer staples stock. Given it sells food and household essentials at low prices, Coles is a highly defensive stock and thus, in my view at least, a reliable source of passive income. Its dividends typically come fully franked too, as an added bonus.

iShares Global Consumer Staples ETF (ASX: IXI)

Continuing on the consumer staples train, next up we have this exchange-traded fund (ETF). The iShares Global Consumer Staples ETF is a fund that holds the world’s leading consumer staples shares. These shares range from Walmart, Coca-Cola Co, and Nestle to Procter & Gamble, Clorox, and British American Tobacco. Coincidentally, you’ll also find Coles, as well as its arch-rival Woolworths Group Ltd (ASX: WOW), in this ETF’s portfolio.

Like Coles, these stocks sell goods that customers tend to buy regardless of the economic weather. Most are also mature dividend payers with resilient business models. In my eyes, that makes IXI a top pick for stable passive income paycheques, with some added international diversity thrown in.

Telstra Group Ltd (ASX: TLS)

Last but not least, at least from a passive income standpoint, is the ASX telco Telstra. Telstra is an ASX veteran, having been listed in the Australian markets for almost three decades. Over that time, it has become one of the most popular dividend stocks on the ASX, and for good reason. Telstra also has an impressive dividend history. Investors haven’t faced a dividend cut since 2018, when the NBN rollout forced the company to restructure its business model.

But those days are long gone. Telstra held its dividends steady over the pandemic and increased them every year since 2022. Given that the demand for internet and mobile connectivity is such a fundamental necessity in our modern world, the leading provider of these services in Australia is a great long-term bet for passive income in my view. Like Coles, Telstra’s dividends tend to come fully franked too.

The post Top picks: 3 ASX dividend stocks for stress-free passive income appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Coca-Cola and Procter & Gamble. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended British American Tobacco P.l.c. and Nestlé and has recommended the following options: long January 2026 $40 calls on British American Tobacco and short January 2026 $40 puts on British American Tobacco. The Motley Fool Australia has positions in and has recommended Telstra Group, Woolworths Group, and iShares International Equity ETFs – iShares Global Consumer Staples ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Rocketboots Ltd (ASX: ROC) are exploding higher today on the back of a transformational contract win.

At the time of writing, the tech company‘s shares are trading at 34.5 cents, up 81.5%. At one point, they reached 39.5 cents, which is a record high for the company.

For a small-cap stock that had largely been flying under the radar, today’s announcement has thrust Rocketboots firmly into the spotlight.

Let’s take a dive into what exactly the company announced.

A significant breakthrough for Rocketboots

According to the release, Rocketboots revealed it has signed a global, multi-year contract with a tier-one multinational retailer to deploy its AI-powered loss-prevention software across the retailer’s store network.

The deal is expected to deliver approximately $9.1 million in annual recurring revenue (ARR), more than 10 times Rocketboots’ current ARR base.

The contract runs for five years with automatic one-year extensions, providing long-term revenue visibility. The initial deployment will cover approximately 40% of the retailer’s global store network, with agreed-upon pricing in place to expand across the remaining footprint over time.

The solution is also fully cloud-based, allowing Rocketboots to deploy and support the platform remotely at scale.

Why is the market excited?

This deal does more than just add revenue, and it helps explain why investors are suddenly getting excited about Rocketboots.

Management described the agreement as both a commercial and a strategic validation of its AI technology. The contract was won through a competitive tender against global software providers, with Rocketboots coming out on top.

It also gives Rocketboots a strong enterprise reference with one of the world’s largest retailers, which could support future sales efforts.

The remaining qualified sales pipeline is now more than 10 times the value of this contract, suggesting there could still be plenty of upside if execution continues.

A big opportunity ahead

Rocketboots is benefiting from two strong trends in retail: the growing use of AI to tackle theft and a sharper focus on in-store labour efficiency.

As retail shrinkage rises and self-checkout becomes standard, retailers are increasingly turning to scalable AI solutions. Rocketboots’ software aims to reduce theft without slowing customers down, while also helping stores operate more efficiently.

Even after landing this contract, it represents less than 10% of the company’s advanced sales pipeline. That leaves quite a bit of room for further deals to convert.

What comes next?

Rocketboots is currently working through the technical integration process with the customer’s technology partners. Initial production deployments are expected to begin in late Q1 CY26, followed by a phased rollout. The company is also finalising the terms of a separate activation contract linked to the deployment of the solution.

For investors comfortable with small-cap risk, this deal marks a clear shift from promise to execution. I think this could be one to watch from here.

The post Rocketboots rockets 80% on blockbuster global deal. Is this ASX small cap just getting started? 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.