Category: Stock Market

If you are hunting for some big returns, EBR Systems Inc (ASX: EBR) shares could be worth considering.

That’s the view of analysts at Bell Potter, who believe this ASX biotech stock could rocket from current levels.

What is this ASX biotech stock?

EBR Systems is a clinical-stage company that has developed a patented Wireless Stimulation Endocardially (WiSE) technology.

This is for the treatment of cardiac rhythm disease and to eliminate the need for cardiac pacing leads when delivering cardiac resynchronisation therapy.

Bell Potter was pleased with the company’s performance in the first quarter. And while its cash burn increased, it notes that this relates to large one-off items, so isn’t concerned. It said:

The headline data had been pre-released which showed that sales doubled qoq, while unit volumes, ASP, hospital contracts signed and physicians trained, all heading in the right direction. All hospital contracts are continuing to be priced at the maximum rate of c.US$63k. Reported gross margins were at a relatively low c.7.8% given the early commercialisation phase, use of old inventory and use of the old manufacturing facility. If current inventory prices were used, the gross margin would have been c.- 25.4%. EBR expect to be in the new facility by the end of 3Q26, from which time gross margins should begin to increase through the combination of new automated machinery to drive efficiency in manufacturing, and scale.

The Adj. EBITDA loss of c.- US$15.1m v c.-US$9.2m pcp reflects the scale up of commercial operations. Operating Cash Outflow of c.-US$20.2m reflected one-off items including bonuses, payroll tax, demo and design units, as well as front loading of leasehold improvements (c.US$2.6m), which will be reimbursed by the landlord in the June quarter. Even allowing for the one-off items, EBR is still hovering at around two quarters of cash / cash equivalents remaining.

Big potential returns

According to the note, in response to the update, Bell Potter has retained its buy rating and $2.00 price target on the ASX biotech stock.

Based on its current share price of 57.5 cents, this implies potential upside of approximately 250% over the next 12 months.

Bell Potter believes it is just its funding question that is holding back its shares. Once resolved, the broker believes its shares could rally. It explains:

No change to earnings / valuation. Given the expectation of a further c.US$15m in revenue over the balance of CY26, we expect 1Q26 to be the peak in operating losses. Once the funding question is resolved, which has been impeding investor sentiment, we would expect the share price to rally.

The post Broker says this ASX biotech stock could rocket 250% 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 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.

Aristocrat Leisure Ltd (ASX: ALL) shares were in fine form on Wednesday.

The gaming technology company’s shares ended the day 13% higher at $51.94 after investors responded positively to its half-year results.

Is it too late to invest? Let’s see what Bell Potter is saying about the ASX 200 stock.

A strong result

Bell Potter was pleased with its performance. Although Aristocrat’s revenue was a touch softer than expected, its profits were ahead of estimates thanks to lower than anticipated corporate costs. It said:

ALL reported flat revenue growth (+6% constant currency (CC)) to $3,028m below BPe of $3,040m and consensus of $3,056m, driven by +5% YoY growth (+12% CC) in Gaming (BPe +4% growth), a -11% YoY decline (-4% CC) in Product Madness (BPe -10%) and a -1% YoY decline (-9% CC) in Interactive (BPe – 14%). EBIT(A) was A$1,117m, up +6% YoY (+14% CC). Normalised NPATA of $794m was up +8% YoY (+1% beat vs. BPe). The gaming ops install base grew by 2.0k units to 77.2k, slightly ahead of BPe and consensus with the Premium growing by a pleasing +2.3k.

The beat to consensus was driven by a $33m better than expected Corporate costs print which masked a weaker than expected result in Product Madness with the broader social slots market declining 11% YoY. Fee per day (FPD) of $53.1/d was down HoH and 1% below BPe, however, the outlook for this metric appears optimistic with earnings call commentary suggesting upward pressure due to higher performing games entering the install base.

The broker was also pleased with the company’s outlook commentary. It adds:

ALL reiterated most outlook comments including NPATA grow over FY26e on a constant currency basis. ALL expects to deliver Gaming ops net adds towards the upper end of its 4-5k target and did not rule out growth higher than this range.

Aristocrat shares tipped to rise further

According to the note, Bell Potter has retained its buy rating and $61.00 price target on Aristocrat shares.

Based on its current share price of $51.94, this implies potential upside of more than 17% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

We retain Buy. We expect ALL’s leading R&D investment will drive market share gains. Top 2 game performance observed in both the core sales and premium gaming ops markets leaves us confident that ALL can grow the install base >4.0k per year and grow global shipments. Further, with leverage expected to reach 0.4x despite significant buybacks, ALL has substantial capacity to boost growth inorganically.

The post Up 13%: Why this ASX 200 stock is a buy with even more upside appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares with renewed buy calls from the experts this week
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Why Arafura, Aristocrat, BHP, and Perenti shares are racing higher today
• Aristocrat shares charge higher on strong result and $1b buy-back

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

S&P/ASX 200 Index (ASX: XJO) shares closed 0.46% lower on Wednesday at 8,630.4 points.

Within the 11 market sectors, consumer discretionary shares rose the most, up 2.9% yesterday.

Materials shares also had a strong day after BHP Group Ltd (ASX: BHP) set a new record and resumed the top spot on the ASX 200.

ASX 200 materials shares rose 2%, and BHP shares finished 2.9% higher at $61.52 after resetting their historical high at $62.30.

The financial sector was the laggard, dropping 4%, largely due to Commonwealth Bank of Australia (ASX: CBA) shares diving 10.4%.

Amid this volatility, brokers have indicated continuing confidence in several ASX 200 shares this week.

Let’s take a look at which stocks have attracted reiterated buy ratings.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price closed at $7.60, up 1.9% on Wednesday.

Over the past month, this ASX 200 insurance share has risen 4.8%.

UBS renewed its buy rating on IAG shares on Wednesday.

The broker raised its 12-month price target from $8.55 to $8.80.

The target suggests a possible 16% capital gain ahead. 

National Australia Bank Ltd (ASX: NAB)

The NAB share price finished at $36.86, down 1.5% yesterday.

Over the past month, this ASX 200 bank share has fallen 18%.

UBS renewed its buy rating on NAB shares with a $48.50 target this week.

This implies 31% potential growth ahead. 

CSL Ltd (ASX: CSL)

The CSL share price closed at $98.79, up 0.2% on Wednesday.

This ASX 200 healthcare giant has fallen 28% in a month and 59% over 12 months.

Morgans renewed its buy rating on CSL shares this week.

However, the broker slashed its price target from $241.34 to $147.59.

This still suggests very healthy upside of 49% over the next year.

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price closed the session yesterday at $34.57, down 1.6%.

Over the past month, this ASX 200 bank share has fallen 11%.

Citi renewed its buy rating on ANZ shares on Tuesday.

The broker trimmed its 12-month price target from $40.30 to $40.

The target suggests a possible 16% capital gain ahead. 

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price closed at $125.50, down 0.3% on Wednesday.

This ASX 200 healthcare share has fallen 53% over the past 12 months.

The Pro Medicus share price has been in correction mode after hitting a historical peak of $336 in July 2025.

Canaccord Genuity renewed its buy rating on Pro Medicus shares this week.

The broker lowered its target from $180.82 to $168.62, suggesting a possible 34% upside ahead. 

Aristocrat Leisure Ltd (ASX: ALL)

The Aristocrat share price closed the session yesterday at $51.94, up 13.3%.

This ASX 200 consumer discretionary share has tumbled 12.9% over six months.

Citi renewed its buy rating on Aristocrat shares with a 12-month target of $65 on Wednesday.

This implies a potential 25% upside ahead.

Temple & Webster Ltd (ASX: TPW)

The Temple & Webster share price closed at $4.98, down 6.4% on Wednesday.

The ASX 200 retail share has fallen 29% in a month and hit a 3-year low of $4.54 yesterday.

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

This implies a potential 173% upside ahead.

Nick Scali Ltd (ASX: NCK)

The Nick Scali share price closed the session yesterday at $14.08, down 2.5%.

Over the past month, this ASX 200 furniture retailer has lost 11% of its valuation.

Macquarie renewed its buy rating on Nick Scali shares with a $21.60 target this week.

This indicates a potential 54% upside ahead.

Metcash Ltd (ASX: MTS)

The Metcash share price closed at $2.97, down 1% on Wednesday.

Over the past six months, this ASX 200 supermarket share has fallen 23%.

UBS renewed its buy rating on Metcash shares with a $3.50 target this week.

This indicates a potential 18% upside ahead.

The post 9 ASX 200 shares with renewed buy calls from the experts this week appeared first on The Motley Fool Australia.

More reading

• Up 13%: Why this ASX 200 stock is a buy with even more upside
• Are these 2 battered ASX healthcare shares too cheap to ignore?
• These ASX retail stocks are near 52-week lows, are they bargain buys?
• 5 things to watch on the ASX 200 on Thursday
• Why Pro Medicus shares could still have their best years ahead

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group, CSL, Nick Scali, Pro Medicus, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Air New Zealand Ltd (ASX: AIZ) shares are in focus today after the airline warned that surging jet fuel prices have created a material external shock for the global aviation industry.

The airline released a market update on Thursday morning, cutting its FY 2026 outlook and outlining a range of actions to protect earnings and preserve liquidity.

While this is an Air New Zealand update, it could have implications for Qantas Airways Ltd (ASX: QAN) shares.

What did Air New Zealand say?

Air New Zealand advised that elevated and volatile global jet fuel prices have had a significant impact on its FY 2026 outlook.

The airline said jet fuel prices were around US$85 to US$90 per barrel before the escalation of conflict in the Middle East. Since then, they have traded between approximately US$160 and US$230 per barrel over the past 10 weeks.

This has created a major cost headwind. Air New Zealand now expects its second-half FY 2026 fuel cost to be approximately NZ$980 million, compared with the NZ$740 million assumption used at its interim result. That implies a NZ$240 million headwind to its expected FY 2026 result, including hedging.

The company said it is around 85% hedged against its second-half FY 2026 Brent crude exposure, but remains exposed to the crack spread, which is the difference between crude oil and refined jet fuel prices. That spread has also been highly volatile.

Capacity, fares, and demand

Air New Zealand has already responded by reducing capacity.

It said it has made three targeted capacity consolidations, cutting overall group capacity by around 3% to 5% across its networks since the conflict began. If fuel prices remain elevated, further capacity updates could be announced in coming weeks.

The airline has also increased fares across its network. However, it noted that fuel cost recovery will take time because earlier bookings need to be flown before newer, higher-priced bookings flow through.

Demand has also started to soften. Booking momentum has moderated in recent weeks, with domestic and trans-Tasman demand weakening. Outbound demand to some long-haul markets has also softened, while Asia inbound and cargo have been more resilient.

The overall impact has been significant. Air New Zealand now expects an FY 2026 loss before tax of between NZ$340 million and NZ$390 million. This assumes an average jet fuel price of approximately US$145 per barrel for the second half.

What does this mean for Qantas shares?

The read-through for Qantas shares is not hard to see.

Fuel is one of the biggest costs for any airline. If jet fuel prices and refining margins remain elevated, Qantas is likely to face the same broad industry pressure as Air New Zealand.

That does not mean Qantas will be hit in exactly the same way. Its route network, hedging position, fare structure, loyalty business, balance sheet, and domestic market position are different. Qantas also has a larger and more diversified business, which could help cushion some of the impact.

But Air New Zealand’s update highlights three risks investors may now be watching closely.

The first is margin pressure. Higher fuel costs can quickly eat into airline earnings if they are not fully recovered through fares.

The second is demand. Air New Zealand’s warning that fare increases need to be managed carefully is relevant for Qantas as well. Push fares too hard, and some passengers may delay or cancel travel.

The third is capacity. If airlines reduce seats to protect profitability, it can support pricing, but it can also limit revenue growth.

For Qantas shareholders, this update is a reminder that airline earnings can change quickly when fuel prices move sharply.

The post Air NZ warns of ‘fuel shock’, what this means for Qantas shares appeared first on The Motley Fool Australia.

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• Should I buy CBA and Qantas shares this month?

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

ASX stocks can be a great source of investment returns to grow our wealth. Some investments could be a great choice for capital growth, while others are compelling for passive income.

There’s only so much we can earn from our day job. After that, other forms of income are needed to boost the amount of money coming through the door.

When I think about which investment asset classes don’t take much of our time as the portfolio grows in size, and can provide good passive income, I believe ASX stocks are the best option.

Great passive income

Online share brokerage has made it incredibly easy to invest in ASX-listed investments.

Once someone has invested in an ASX share, they don’t need to do anything to run it or make decisions about whether to fix something or pay for a new item. The company’s management does that for shareholders. We can just let the investment do its thing.

Assuming we’ve chosen an investment that pays passive income, the dividends will roll into the bank account with zero effort on our part.

Another great positive to ASX stocks for passive income is the dividend yields on offer.

Term deposits are offering a (temporary?) high interest rate right now, but there’s no organic growth. Certain ASX dividend stocks can provide a better dividend yield than a term deposit rate and/or very good dividend growth.

A river of dividends

If creating passive income is the goal, I’d suggest investing in businesses that have a track record of growing the payout for investors, while also having a pleasing dividend yield to start with. As time goes by, the river flow of payments will become stronger.

That’s why I’m attracted to names like Washington H. Soul Pattinson and Co Ltd (ASX: SOL), L1 Long Short Fund Ltd (ASX: LSF), Wesfarmers Ltd (ASX: WES), Telstra Group Ltd (ASX: TLS), Future Generation Australia Ltd (ASX: FGX), Future Generation Global Ltd (ASX: FGG) and Hearts and Minds Investments Ltd (ASX: HM1).

If someone invests $1,000 in an ASX dividend stock, such as L1 Long Short Fund, with a grossed-up 5% dividend yield (including franking credits), it would unlock $50 of annual income.

Imagine it then hikes the dividend by 10% in the following year. That’s $55 of annual passive income.

Then another 10% increase would make it $60.50 of income.

And so on.

No dividend growth is guaranteed of course, but some businesses are more likely to deliver good dividend growth than others.

Imagine investing $1,000 multiple times. That would create hundreds of dollars of income that an Australian could use to boost their financial picture.

I know this is an effective method because I’m already utilising it and benefiting from it.

My household is getting the benefit of annual dividends that can now, after plenty of years of saving and investing, be measured in thousands rather than hundreds of dollars. Plus, they’re delivering a pleasing mixture of long-term dividend growth and capital growth – exactly what I’m after!

The post Create a river of dividends for passive income alongside work earnings with ASX stocks appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Future Generation Global, Hearts And Minds Investments, L1 Long Short Fund, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group and Washington H. Soul Pattinson and Company Limited. 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.

Sleep health giant Resmed Inc (ASX: RMD) rarely makes headlines, but the numbers it keeps delivering are hard to ignore.

Investors love companies that never seem to be the most exciting in the room, yet year after year they keep getting bigger, more profitable, and more entrenched in their markets.

Resmed is one of those companies.

A business built on a massive, underserved market

Sleep apnea affects an estimated one billion people worldwide, yet the vast majority remain undiagnosed.

Resmed sits at the centre of the global effort to change that, manufacturing CPAP devices, masks, and cloud-connected software platforms that help patients manage their condition from home.

The company holds a dominant position in a market with extraordinarily high switching costs: once a patient finds a device and mask combination that works, they rarely change.

This generates a reliable and recurring revenue stream for years, providing a significant competitive advantage.

The numbers back up the story

Resmed delivered another strong quarterly update in early 2026, with revenue growing 11% year-on-year to US$1.29 billion. Operating income also increased 22%.

Device sales continue to accelerate as competitor Philips works through ongoing product recall issues.

Resmed will be looking to take advantage of this situation to further entrench its market position.

The company’s software and services segment, which includes its cloud-connected patient management platforms, now generates over US$200 million per quarter and continues to grow at a double-digit rate.

Resmed carries a strong balance sheet with modest debt and generates consistent free cash flow, which it returns to shareholders through a growing dividend.

The AI angle the market is underappreciating

One of the most compelling aspects of the Resmed story is the role artificial intelligence now plays across its platform.

The company processes over 23 billion nights of sleep data, giving it a proprietary data moat that competitors cannot replicate.

Resmed uses this data to improve patient adherence, reduce hospital readmissions, and identify patients at risk of deterioration before they reach the emergency department.

This positions Resmed not only as a device manufacturer, but as a healthcare technology platform, and the market has not yet fully priced in that distinction.

Foolish Takeaway

So why are Resmed shares lagging?

The latest earnings came in as softer than expected, reflecting high expectations baked into the share price.

Investors also worry about the acquisition costs related to the VirtuOx acqusition.

But investors may also see Resmed as a business that is growing revenue and earnings at a steady double-digit pace while deepening its competitive moat.

For Fools who value compounding returns over excitement, Resmed deserves serious consideration.

The post Why are Resmed shares lagging if the business keeps compounding? appeared first on The Motley Fool Australia.

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

Some ASX healthcare shares are going through a brutal period as competition, weaker demand and broader market pressures hammer investor confidence.

CSL Ltd (ASX: CSL) has dominated headlines recently for all the wrong reasons, but other ASX healthcare shares are also suffering heavy losses.

Shares in Cochlear Ltd (ASX: COH) are down roughly 63% over the past 12 months, while Telix Pharmaceuticals Ltd (ASX: TLX) has fallen around 44%.

So, have these ASX healthcare shares become too cheap to ignore?

Cochlear

Cochlear’s collapse accelerated after a disappointing trading update released on 22 April.

The ASX healthcare share plunged from around $168 to near $90 within days. That’s an extraordinary 46% wipeout for a blue-chip healthcare company.

Although the share price has since stabilised somewhat, the damage remains severe. The company, which controls roughly 50% of the global cochlear implant market, sharply downgraded FY26 underlying net profit guidance to between $290 million and $330 million. That was a major cut from its previous guidance range of $435 million to $460 million.

Management blamed weaker hearing implant demand across developed markets, slower referrals, postponed surgeries and disruptions in the Middle East that caused cancelled orders and delivery delays.

For a company long viewed as one of the ASX’s most reliable healthcare performers, the downgrade badly rattled investor confidence.

Still, the long-term investment case may not be broken. Cochlear remains the global leader in implantable hearing technology and continues reinvesting heavily into research and development, allocating around 13% of revenue toward innovation.

The company also benefits from ageing populations and a growing pool of patients with hearing loss worldwide. That suggests current weakness may prove more cyclical than structural.

Analyst opinion remains sharply divided. Jarden currently has a $169 price target on the ASX healthcare share, implying upside of almost 70%.

However, Macquarie recently slashed its target from $239 to $115, while Morgans maintains a hold rating and a $107.17 target.

Telix Pharmaceuticals

Telix shares have also experienced wild volatility. The ASX healthcare stock is down around 8% over the past month, remains up roughly 30% year to date, but has still slumped approximately 43% over 12 months.

Unlike many biotech companies, Telix already generates commercial revenue. Its lead product, Illuccix, is producing growing sales in the US market and provides a genuine commercial foundation for the business.

Telix operates in the rapidly expanding radiopharmaceuticals sector, developing imaging and therapeutic products for cancer treatment.

The company also has a growing development pipeline targeting kidney cancer, brain cancer and other oncology opportunities.

That helps explain the extreme share price swings. Positive announcements often trigger sharp rallies, while broader biotech weakness or slower news flow can spark aggressive pullbacks.

Despite the volatility, analysts remain overwhelmingly bullish on the ASX healthcare share. According to TradingView data, all 16 brokers covering Telix shares currently rate the ASX healthcare stock as either a buy or strong buy.

The average price target sits at $24.22, implying roughly 65% upside from current levels. The most bullish analyst target stands near $31. That points to a potential upside of approximately 110% if Telix continues delivering operational growth.

The post Are these 2 battered ASX healthcare shares too cheap to ignore? appeared first on The Motley Fool Australia.

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• Is CSL now an ASX dividend stock to buy?
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• 2 big-name ASX 200 shares at 52-week lows that I’d buy and hold

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 CSL, Cochlear, and Telix Pharmaceuticals. The Motley Fool Australia has recommended CSL, Cochlear, and Telix Pharmaceuticals. 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 brutal period for ASX retail stocks.

Consumer confidence has slumped toward historic lows as higher interest rates and cost-of-living pressures squeeze household spending. Unsurprisingly, retail share prices have taken a heavy hit.

Shares in Temple & Webster Group Ltd (ASX: TPW) fell another 6% on Wednesday to $4.98 after briefly touching a fresh 52-week low of $4.54 earlier in the session. Meanwhile, Lovisa Holdings Ltd (ASX: LOV) dropped 1.3% for the day and continues hovering near yearly lows.

Zooming out, the damage looks even more severe. Temple & Webster shares are down around 64% year to date, while Lovisa has fallen approximately 27%.

So, are these ASX retail stocks becoming bargain buys?

Temple & Webster: runway for expansion

Investors aggressively sold Temple & Webster shares on Wednesday after the online furniture retailer released FY26 guidance that appears to have disappointed the market.

The company expects FY26 revenue between $665 million and $675 million, representing growth of roughly 11% to 12% compared to the prior corresponding period. EBITDA guidance sits between $20 million and $22 million, implying growth of around 6% to 17%.

While those figures still point to expansion, investors likely hoped for stronger earnings momentum given the company’s historical growth profile.

The broader retail environment also remains difficult. Consumer spending continues facing pressure from elevated interest rates, while housing activity has remained uneven across Australia. At the same time, investors have become far less willing to pay premium valuations for online retail growth businesses.

Still, Temple & Webster may retain a compelling long-term opportunity. Furniture, homewares and home improvement remain enormous retail categories, and the company still controls only a relatively small share of the overall market. That leaves significant runway for future expansion if spending continues shifting online over time.

Importantly, after collapsing roughly 82% from its all-time-high, a large amount of bad news may already be reflected in the share price.

For patient long-term investors, the ASX retail stock could become increasingly interesting at these lower levels.

Lovisa Holdings: global fast-fashion footprint

Lovisa tells a different but equally volatile retail story. The $2.5 billion ASX retail stock has built a global fast-fashion jewellery empire through rapid product turnover and quick responses to changing consumer trends. Its ability to adapt quickly has been one of the company’s greatest strengths.

But the bigger attraction remains international expansion. Lovisa has aggressively rolled out stores across Europe, the US and Asia, creating a substantial long-term growth runway if execution remains strong. That global footprint continues separating Lovisa from many smaller domestic retail competitors.

However, investors have become increasingly cautious. Cost inflation, weaker consumer spending and concerns around profit margins have all weighed heavily on sentiment. Retail businesses remain highly sensitive to economic conditions, and Lovisa is not immune to those pressures.

Still, if consumer confidence eventually improves and global store expansion continues delivering results, the recent weakness in Lovisa shares may start looking far more attractive in hindsight.

According to TradingView 8 out of 15 the analysts covering the ASX retail stock rate it a buy or strong buy. The average 12-month price target is set at roughly $30, which points to a 38% upside.

The post These ASX retail stocks are near 52-week lows, are they bargain buys? appeared first on The Motley Fool Australia.

More reading

• Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking today
• Why did this ASX 300 stock just crash 15% to a 52-week low?
• Temple & Webster posts record April profit and FY26 upgrade
• How much is needed in superannuation to target a $5,000 monthly passive income?
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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 Lovisa and Temple & Webster Group. The Motley Fool Australia has recommended Lovisa and Temple & Webster 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 seeking some new additions to an income portfolio, then it could be worth considering the ASX dividend stock in this article.

That’s because not only could it be destined to rise materially, but it is being tipped to provide investors with above-average dividend yields according to Bell Potter.

Which ASX dividend stock?

The stock that Bell Potter is bullish on is Universal Store Holdings Ltd (ASX: UNI).

It is the youth fashion retailer behind the eponymous Universal Store brand, as well as the Thrills and Perfect Stranger brands.

Bell Potter has been pleased with the company’s performance this year in a difficult economic environment. It said:

Universal Store Holdings (UNI) provided a trading update for the first 43 weeks of FY26: group retail sales of +14% on pcp broadly in line with BPe, like-for-like (LFL) sales on pcp of +8.5% and +12.9% for key banners, Universal Store (US) and Perfect Stranger (PS) respectively. The improved growth rate from the last update at UNI’s key banner, US (+8.1% at end of Apr vs +7.1% at mid-Feb) was supported by some benefit in comps in the pcp through Apr.

FY26 guidance of revenue at $368-375m (+11.5% at mid-point) and EBITA of $61.5-64.5m was provided, in line with Consensus implying gross margins remaining in line. FY26 new store openings were also tracking to the previous guidance of 11-17 across the three banners.

Major upside and big income

According to the note, the broker has a buy rating and $9.30 price target on the ASX dividend stock.

Based on its current share price of $6.46, this implies potential upside of 44% for investors over the next 12 months.

As for income, Bell Potter is forecasting fully franked dividends of 36.9 cents per share in FY 2026, 39.3 cents per share in FY 2027, and then 44.6 cents per share in FY 2028.

This equates to fully franked dividend yields of 5.7%, 6.1%, and 6.9%, respectively.

Commenting on its buy recommendation, Bell Potter said:

At 13x FY27e P/E (BPe), we see an entry opportunity to a high-quality retailer as we remain optimistic on UNI’s performance in 4Q26 given supportive comps and look forward to FY27e in delivering continued execution driven market share expansion across retail banners.

In line with selective consumption trends across the broader sector, we retain our views of the youth customer prioritising ontrend streetwear and expect UNI to benefit with their leading position. Maintain BUY.

The post Why this could be one of the best ASX dividend stocks to buy now appeared first on The Motley Fool Australia.

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

BWP Trust (ASX: BWP) shares closed on Wednesday trading for $3.77 apiece.

This sees shares in the S&P/ASX 200 Index (ASX: XJO) real estate investment trust (REIT) – whose major tenants include Bunnings – up 3.9% over the past 12 months.

That’s roughly in line with the 4.4% one-year gains posted by the ASX 200.

Though we shouldn’t forget the 19.1 cents a share in unfranked dividends BWP paid to eligible stockholders over this period.

The ASX 200 REIT currently trades on a 5.1% unfranked trailing dividend yield.

And looking ahead, Sanlam Private Wealth’s Remo Greco believes BWP shares represent an appealing investment in today’s uncertain times (courtesy of The Bull).

Should you buy BWP shares today?

“BWP is a real estate investment trust,” Greco said. “It’s the biggest owner of Bunnings Warehouse sites in Australia, with a portfolio of 66 stores.”

As for the first reason you might want to buy BWP shares, Greco said:

The group’s income profile is characterised by high occupancy, long lease terms and strong tenant quality. Long-dated leases provide income visibility and steady rental growth.

Then there’s the passive income on offer.

“BWP presents as a defensive property investment entering a more proactive phase and recently trading on an annual yield of almost 5%,” Greco noted.

And summing up the third reason he has a buy recommendation on the ASX 200 stock, Greco concluded, “BWP appeals to investors in uncertain times as it offers low tenant risk and reliable cash flow.”

What’s the latest from the ASX 200 REIT?

Last Thursday, 7 May, BWP announced it had successfully raised $122 million via an Institutional Entitlement Offer, issuing new BWP shares for $3.77 each.

Wesfarmers Ltd (ASX: WES) reportedly took up its full $53 million entitlement.

The fully underwritten offer forms part of the company’s total $228 million capital raising goal.

BWP’s retail entitlement offer aims to raise another $106 million. That opened for eligible retail investors on 12 May and is scheduled to close on 22 May.

As for the company’s recent financial results, for the six months to 31 December (H1 FY 2026) the ASX 200 REIT reported revenue of $103.6 million, up 3.0% year-on-year.

And on the bottom line, BWP’s statutory profit after fair value adjustments and tax was up 41.2% from H1 FY 2025 to $221.8 million.

This saw management boost the interim dividend by 4.3% to 9.6 cents a share.

BWP expects to make full year FY 2026 dividend payments of 19.41 cents a share, up 4.1% from the passive income it paid out in FY 2025.

The post 3 compelling reasons to buy BWP shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.