A low share price does not automatically mean a stock is cheap.

A company trading below $5 can still be expensive if the business is weak, the valuation is stretched, or the growth story is fading. 

But I do think this part of the market can contain some interesting opportunities.

The three ASX stocks in this article all trade below $5, which is less than the cost of a cafe latte, and I think they offer quality in different ways. 

They are not low-risk picks, but I would be happy to buy them with a long-term mindset.

Zip Co Ltd (ASX: ZIP)

The first ASX stock under $5 I would buy is Zip.

This is a very different business from the one many investors remember from the buy now, pay later (BNPL) boom. Back then, the market rewarded growth at almost any cost. That period is over.

I think today’s Zip story is more interesting because it is more disciplined.

The company has narrowed its focus, improved profitability, and strengthened its position in the United States. That US business is the part of Zip I find most appealing. It gives the company exposure to a large consumer market where flexible payments can still have a meaningful place, provided credit quality is managed well.

The key attraction for me is that Zip no longer needs investors to believe in a wild, loss-making expansion story. The investment case is now more about whether the company can keep growing revenue, manage bad debts, improve margins, and prove that its model can generate sustainable profits.

That does not remove the risks. Consumer credit can deteriorate quickly if economic conditions weaken. Competition remains intense. Regulation can also affect the sector.

But with Zip trading around $2.23, I think the market may still be underestimating how much the business has changed since the BNPL mania days.

SiteMinder Ltd (ASX: SDR)

Another ASX stock I like below $5 is SiteMinder. Its shares are currently trading around $2.85.

SiteMinder provides technology for hotels, helping them manage bookings, pricing, inventory, distribution channels, and revenue opportunities. That might sound niche, but I think it solves a real problem.

Hotels do not sell rooms through just one channel anymore. They need to manage online travel agents, direct bookings, wholesalers, metasearch, corporate travel, and other distribution partners. Prices can change quickly, and inventory needs to stay accurate across multiple systems.

That complexity creates a need for reliable software.

What I like about SiteMinder is that it sits inside a very practical workflow. Hotels want to fill rooms at the best possible rates while reducing admin and avoiding costly errors. A good platform can help with that every day.

I also think the travel technology opportunity still has room to grow. Many accommodation providers are still modernising their systems, and smaller hotels may need better tools as digital channels become more important.

SiteMinder is not risk-free either. It still needs to keep turning growth into stronger profits, and technology stocks can be volatile when investors become more cautious.

But I think the business has an attractive position in a large, global accommodation market.

Catapult Sports Ltd (ASX: CAT)

The third ASX stock under $5 I would buy is Catapult Sports. Its shares are currently trading around $3.45.

Catapult provides sports technology that teams use to monitor athlete performance, workload, tactics, and preparation. I like this business because its products can become part of the daily routine for professional sporting organisations.

Elite sport is no longer run on instinct alone. Coaches, analysts, medical teams, and performance staff all want better information. They want to know how hard athletes are training, how they are recovering, whether workloads are building too quickly, and how tactical decisions are playing out.

Catapult helps provide that data.

I think the opportunity is bigger than just selling devices. The more useful the platform becomes, the more it can support software revenue, video analysis, team workflows, and deeper customer relationships.

There is also a global angle. Sport is played everywhere, and professional teams are willing to invest in tools that can give them even a small edge.

The challenge is execution. Catapult needs to keep growing efficiently and showing that its technology can translate into a more profitable business over time.

But I think it has a strong niche, a global market, and a product set that can become more valuable as sports organisations become more data-driven.

Foolish Takeaway

I would not buy an ASX stock just because it trades below $5. The share price alone tells investors very little about quality, valuation, or future returns.

What interests me here is that each business has moved beyond the simplest version of its old story. These are not perfect companies, and I would expect volatility. But for patient investors willing to look outside the obvious blue chips, I think this is the kind of area where interesting long-term opportunities can still be found.

The post 3 quality ASX stocks I’d buy under $5 a share appeared first on The Motley Fool Australia.

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• $10,000 invested in Zip shares 12 months ago is now worth…

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

Santos Ltd (ASX: STO) shares ended the week on a multi-year high at the close of the ASX last Friday. But the oil and gas producer’s shares have turned this week, prompting questions about whether sentiment has started shifting.

At the close of the ASX on Tuesday afternoon, the shares are down 0.88% to $7.87 a piece, and they’ve slumped 5% since reaching a four-year high on Friday.

The stock is now 28% higher for the year-to-date and 22% higher than this time last year.

For context, the S&P/ASX 200 Index (ASX: XJO) also fell into the red on Tuesday, down 0.4% at the close of the index. For the year-to-date the index is down 0.8%.

What pushed Santos shares to a four-year peak last week?

Rising oil prices have acted as a strong tailwind for Santos shares last week as conflict between the US and Iran continues to inhibit global oil supply and cause oil prices to become incredibly volatile. 

Trading Economics data shows that the price of WTI crude oil spiked over US$101 per barrel late last week. While that’s lower than the soaring US$110-level seen previously, the increase sparked fears that the oil price was starting to climb higher again.

A few company-specific price drivers, including a rise in production and improved cash flow, have also helped drive Santos shares to its latest peak.

In late-April, Santos posted its March quarter update, where it revealed a 1% increase in production and 3% rise in sales revenue versus the prior quarter. 

Its free cash flow from operations of US$383 million was in line with Q4 2025, and management reaffirmed its full-year 2026 production and cost guidance.

The company confirmed its first oil production from its Pikka phase 1 development on Alaska’s North Slope early last week. The ramp-up is expected to continue over the coming weeks.

Why has the share price come off the boil this week?

There is no price sensitive news out of the oil and gas producer to explain the cooling share price on Tuesday. 

It’s most likely driven by investors taking their gains off the table after a long rally and a cooling oil price. Oil prices plunged by more than 6% on Monday amid rising optimism about a potential US-Iran agreement to end the conflict and reopen the Strait of Hormuz. The price continued heading south on Tuesday.

But it looks like a rebound is imminent…

If analyst forecasts are correct, there is a long way for Santos shares to run over the next 12 months, with a sharp rebound expected soon.

TradingView data shows that the majority of analysts are very bullish on the oil and gas company’s shares. Out of 14, 11 have a buy or strong buy rating. The remaining three rate the stock as a hold.

The average $8.60 target price implies a potential 11% upside at the time of writing. Although some think Santos shares could rebound another 33% to $10.42 a piece.

The post Santos shares cool 5% from four-year high: Have they come off the boil, or is a rebound imminent? appeared first on The Motley Fool Australia.

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• Buying Santos shares? Here’s how the company aims to cut spending and lift production
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• 10 ASX shares given buy ratings this week
• 5 things to watch on the ASX 200 on Friday

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.

Healthcare is one of my favourite long-term investment themes.

The world is ageing, medical technology keeps improving, and patients are demanding better diagnosis, treatment, and care. That does not mean every healthcare share will do well, but I think the sector could produce some excellent long-term winners.

Three ASX 200 healthcare shares I would buy for the future are named in this article.

ResMed Inc (ASX: RMD)

ResMed is one of the ASX 200 healthcare shares I rate most highly.

The company is a global leader in sleep health, with products that help treat sleep apnoea and other respiratory conditions. I like the business model because it combines devices with recurring revenue from masks, accessories, and software.

That recurring element is important. A patient does not just buy a device once and disappear forever. They often need replacement masks, ongoing support, connected data, and better tools to manage therapy.

I also think the long-term market remains underpenetrated. Many people with sleep apnoea remain undiagnosed, and awareness of the condition can still improve.

There has been plenty of debate about GLP-1 weight loss drugs and what they mean for sleep apnoea treatment. I see them as more of an awareness driver than a simple threat. If more patients engage with their health, seek diagnosis, and understand the risks of untreated sleep apnoea, ResMed could still benefit.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix is a higher-risk healthcare growth share, but I think the opportunity is compelling.

The company is focused on radiopharmaceuticals, including cancer imaging and targeted treatment. This is a specialised area of healthcare with the potential to improve how certain cancers are detected and treated.

What I like about Telix is that it is not simply a clinical-stage dream. It already has a commercial base, while still investing in a pipeline that could create future growth.

That combination is attractive, but it also comes with risk. Clinical trials can disappoint, regulatory timelines can change, and healthcare investors can quickly lose patience when expectations are high.

I would not put Telix in the same risk bucket as a mature healthcare leader like ResMed. But for investors comfortable with more volatility, I think Telix offers exposure to one of the more interesting areas of modern cancer care.

If management can keep growing the commercial business and advance the pipeline, the company could look very different in a decade.

Cochlear Ltd (ASX: COH)

Cochlear has had a difficult period, but I still think it deserves attention from long-term investors.

The company is a global leader in implantable hearing solutions. Its products can make a major difference to people with severe to profound hearing loss, and I think the long-term need is clear.

Ageing populations should support demand over time. Diagnosis and treatment access can also improve, especially as hearing loss becomes more widely understood as a serious health issue rather than simply an inconvenience.

Cochlear’s near-term outlook has been challenged, and confidence has weakened. But I do not think the long-term healthcare need has gone away.

For patient investors, the question is whether the current pressure is temporary or structural. I lean towards the former, although recovery may take time.

Foolish Takeaway

Healthcare investing often requires patience.

A company can have a strong long-term market and still go through periods where sentiment turns against it. That is why I like looking for businesses with real clinical need behind them, not just a fashionable story.

These three ASX 200 shares carry different risks, but they all have something I want in a healthcare investment: a reason to exist that should still matter many years from now.

The post 3 ASX 200 shares I’d buy for the future of healthcare appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Cochlear, ResMed, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended 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.

As Australian investors approach retirement, their focus may shift from just growth strategies to investments that provide more accessible and stable income.

One simple and effective way to do this is through ASX ETFs. 

For Australians looking to build a straightforward retirement portfolio without spending hours researching individual shares, a two-ETF strategy can be an effective solution. 

One combination that continues to appeal to income-focused investors is pairing: 

• Vanguard Australian Shares High Yield ETF (ASX: VHY)
• Vanguard Msci Index International Shares ETF (ASX: VGS). 

A balanced approach

The Vanguard Australian Shares High Yield ETF provides low-cost exposure to companies listed on the ASX that have higher forecast dividends relative to other ASX-listed companies.

Meanwhile, the Vanguard international shares ETF invests in around 1,300 companies from developed countries, excluding Australia.

The attraction of this approach is balance. 

VHY focuses on higher-yielding Australian companies, giving investors exposure to many of the ASX’s largest dividend payers, including banks, mining giants, and established industrial businesses. 

For retirees, this ASX ETF’s attractive distributions and potential franking credits may help provide a reliable source of passive income.

At the same time, VGS delivers something many Australian portfolios often lack – genuine global diversification.

This ASX ETF provides access to thousands of companies across the United States, Europe, and Asia, including major global leaders in technology, healthcare, and consumer brands.

A portfolio split between the two could offer a practical combination of steady income and long-term growth potential.

Important retirement points

One of the biggest mistakes retirees can make is chasing the highest possible dividend yield. 

While income is important, total returns still matter. A portfolio also needs growth to help combat inflation over a retirement that could last decades.

That is where VGS can play an important role. While it may offer a lower dividend yield than Australian shares, international equities have historically delivered strong long-term capital growth.

Meanwhile, VHY can continue generating regular income from established Australian businesses, with the added bonus of franking credits that may improve after-tax returns for some investors.

Importantly, this strategy also keeps investing simple. Both ASX ETFs are low-cost, diversified, and easy to manage. 

This makes them an attractive “set-and-forget” option for long-term retirement investors.

Foolish takeaway 

The advantage of ASX ETF investing is the instant diversification and set and forget mentality in just a couple of trades. 

By combining broad Australian exposure with global diversification, investors can build a low-maintenance portfolio that balances income today with growth for tomorrow. 

Rather than trying to time the market or pick individual winners, this approach allows investors to stay consistently exposed to high-quality businesses around the world.

The post An easy 2 ASX ETF portfolio to fund retirement  appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in Vanguard Msci Index International Shares ETF. 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 Vanguard Australian Shares High Yield ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The past year’s share price retrace, coupled with a big lift in dividends, has seen Amcor PLC (ASX: AMC) shares join the ASX’s high-yielding club.

There’s not really a club.

But at Tuesday’s closing price of $54.38, the S&P/ASX 200 Index (ASX: XJO) global packaging giant trades on an unfranked dividend yield (partly trailing, partly forecast) of 6.8%.

As you may be aware, unlike many ASX 200 dividend stocks, which make twice-yearly payouts, Amcor pays its dividends on a quarterly basis.

And with its acquisition of United States-based packaging company Berry Global completed last year, the past two quarters have seen Amcor ramp up its passive income payments.

In the first two quarters of 2026, Amcor declared two unfranked dividends, totalling $1.84 a share. If you owned shares at market close yesterday, you can expect to receive the Q2 dividend of 91 cents a share on 17 June. Amcor stock is trading ex-dividend today.

Now, with Amcor shares down 22% over the past 12 months, and assuming similar dividend payouts in the next two quarters, is the ASX 200 stock a good buy for passive income?

Should you buy Amcor shares for passive income?

Shaw and Partners’ Jed Richards recently ran his slide rule over Amcor shares (courtesy of The Bull).

Commenting on the recent headwinds pressuring the stock, he said, “This packaging giant continues to face pressure from elevated input costs, particularly linked to higher oil and plastic prices, which have impacted margins.”

But, citing the company’s “attractive dividend yield” and ability to pass on rising costs, Richards believes investors should hold onto their Amcor shares. He noted:

Despite this, the company maintains strong global operations and continues to generate stable cash flow. A weaker share price provides an attractive dividend yield for income investors.

Recent updates indicate increased costs have been passed through to customers. Holding is appropriate given its defensive packaging exposure, but upside will likely depend on managing input costs.

What’s the latest from the ASX 200 stock?

Amcor shares closed up 3.9% on 7 May, following the release of the company’s March quarter results (Q3 FY 2026).

The company noted that with its Berry Global takeover completed, it realised acquisition synergies of US$77 million during the quarter.

The March quarter saw Amcor deliver net sales of US$5.91 billion, up 77% year on year. And adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$892 million surged by 87%.

“Third quarter results were in line with expectations and reflect the resilience of our business as we mark the first anniversary of bringing legacy Amcor and Berry together as One Amcor,” Amcor CEO Peter Konieczny said on the day.

The post Should I buy Amcor shares for their ‘attractive’ dividend yield? 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Following a third consecutive interest rate rise this month, people were likely already thinking about investment yields a bit more.

Then came the federal budget, and details of proposed changes to the capital gains tax (CGT).

People already knew the Federal Government was considering CGT changes for property investments to improve housing affordability.

What they didn’t expect was CGT changes on all asset classes, including ASX shares and businesses.

That changes the game, according to some experts.

CGT changes magnify importance of yield

Some experts reckon higher taxes on capital gains will likely amplify the appeal of yield over growth for some investors.

Private wealth and investment advisory firm, Medallion Financial Group, said:

At a high level, the changes tilt the playing field toward yield. If a larger portion of capital gains is taxed away, the after-tax return profile of growth assets; equities, start-ups, and expansionary investments becomes less compelling.

This might enhance the appeal of ASX dividend shares, or exchange-traded funds (ETFs) tracking the S&P/ASX 200 Index (ASX: XJO).

ASX dividend shares deliver a much higher yield than international shares, but they aren’t what they used to be.

Historically, income investors have relied on ASX 200 bank and mining shares to deliver generous dividend yields.

But the average dividend yield for the ASX 200 has fallen below 3.5%.

And this may start looking a little weak to income investors, given risk-free savings deposit rates have now risen above 5.5%.

Savings deposit interest rates

Savings deposit rates are not only attractive now, they’re likely to go even higher given expectations of further rate rises this year.

Some examples in the market today include a 5.75% ongoing but conditional savings rate offered by Westpac Banking Corp (ASX: WBC) to customers aged 18 to 34 via its Westpac Life product.

ING offers a 5.5% ongoing but conditional rate via its Savings Maximiser product.

These are not short-term intro savings rates that last only a few months.

They are ongoing, everyday interest rates that apply as long as you meet certain conditions every month, such as increasing your balance by a certain amount.

Those yields are certainly appealing, but here’s the thing.

If you’re a long-term investor, you are still likely to do better with ASX dividend shares over savings, even if you pay a bit more CGT.

This is because ASX dividend shares offer both capital growth and yield.

Savings accounts just deliver yield (which inflation then eats into as well).

So, remaining invested in assets that also deliver reliable growth over the long term is protective.

The following chart shows the current trailing dividend yields of the top 10 ASX 200 shares by market capitalisation.

As you can see, some stocks have dividend yields above today’s savings deposit rates, while some are below.

And nine out of 10 have delivered solid average annual capital growth over the past five years.

Even if you pay more tax on gains in the future, growth plus yield still looks to be a compelling combination, depending on your goals.

Food for thought.

Top 10 ASX 200 shares: Dividend yields and capital growth

Company	Trailing dividend yield	Gross yield (incl franking)	Average annual capital gain over 5 years
BHP Group Ltd (ASX: BHP)	3.31%	4.73%	8%
Commonwealth Bank of Australia (ASX: CBA)	3.02%	4.31%	12.8%
Westpac Banking Corporation (ASX: WBC)	4.24%	6.06%	7.8%
National Australia Bank Ltd (ASX: NAB)	4.51%	6.45%	8%
ANZ Group Holdings Ltd (ASX: ANZ)	4.7%	6.16%	5%
Macquarie Group Ltd (ASX: MQG)	2.91%	3.35%	10.6%
Wesfarmers Ltd (ASX: WES)	3.38%	4.84%	7.8%
Rio Tinto Ltd (ASX: RIO)	3.24%	4.63%	10.8%
Fortescue Ltd (ASX: FMG)	5.62%	8.02%	-0.3%
Goodman Group (ASX: GMG)	0.97%	0.97%	10.8%

The post How do ASX dividend shares compare to savings deposit rates today? appeared first on The Motley Fool Australia.

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

It was a depressing return to red territory for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Tuesday.

After kicking off the trading week on a positive note yesterday, investors couldn’t keep up the momentum, with the index opening in the red this morning and staying that way all session. By the time the markets closed up shop, the ASX 200 had lost 0.39% and finished up at 8,657.8 points.

The US markets were closed for the Memorial Day public holiday last night, so the small gains we saw ‘Stateside last Friday are still holding.

So, without further ado, it’s now time to take stock of how the various ASX sectors fared amid today’s frosty trading conditions.

Winners and losers

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

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

Artificial intelligence (AI) has created a strange moment for the technology sector.

On one hand, it could unlock enormous productivity gains and new revenue opportunities. On the other, it has raised serious questions about which software businesses are genuinely durable.

If AI can complete more work with fewer human users, then traditional seat-based software models may face pressure.

That is one reason investors have become more selective with technology shares.

But not every ASX tech share is equally exposed. Some companies provide mission-critical systems, operate in specialist markets, or have the data and workflows needed to make AI an advantage rather than a threat.

Two names that stand out are listed below.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is one ASX tech share that looks well placed in an AI-driven world.

The company provides medical imaging software through its Visage platform. Its customers include large hospitals, radiology groups, and healthcare networks, particularly in the United States.

This is not software that sits on the edge of a business. It is used in critical clinical workflows where speed, reliability, and image quality matter. Medical teams need to view, manage, and interpret large volumes of imaging data efficiently.

That gives Pro Medicus a strong position. Healthcare systems are producing more imaging data, not less. AI may help with parts of diagnosis, workflow prioritisation, and productivity, but that still increases the need for powerful platforms that can handle the data and integrate into hospital systems.

In other words, AI could make the imaging ecosystem more demanding, not simpler.

Pro Medicus also benefits from long contracts and high switching costs. Once a major healthcare network adopts its platform, moving away is not a quick or low-risk decision.

The share price often trades on high expectations, so volatility is always possible. But as healthcare becomes more digital and data-intensive, Pro Medicus looks like the type of software business that could become more important over time.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX tech share that could be better positioned than many in the AI shakeout.

The company provides enterprise software to customers such as councils, universities, government agencies, and large organisations. These customers use its systems to manage core functions across finance, payroll, assets, students, property, and other essential workflows.

Essentially, this means TechnologyOne is not selling a lightweight productivity tool that can be easily swapped out. Its software is deeply embedded in complex organisations where reliability, compliance, and accountability matter.

The company also appears to be leaning into AI rather than waiting to be disrupted by it. Its SaaS+ model is designed to take more responsibility for customer outcomes, while its AI products aim to simplify processes and make enterprise data more useful.

That could be important as organisations look for technology partners that can help them do more with less.

The risk for software companies is that AI turns some products into commodities. TechnologyOne’s defence is its sector focus, long customer relationships, and ownership of critical workflows.

Its shares are rarely cheap, and expectations are high. But if AI becomes a tool that strengthens essential enterprise platforms, TechnologyOne could remain one of the ASX’s more resilient technology names.

The post 2 ASX tech shares that could survive the AI shakeout appeared first on The Motley Fool Australia.

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

PEXA Group Ltd (ASX: PXA) shares are having a tough time on Tuesday.

In afternoon trade, the ASX 200 tech share is down 6% to $10.76.

While this is disappointing for shareholders, it could have created a buying opportunity for the rest of us.

That’s the view of analysts at Ord Minnett, which see significant value in the property settlement technology company’s shares.

What is the broker saying about this ASX 200 tech share?

Ord Minnett has been pleased with the company’s performance in FY 2026, highlighting that a recent trading update revealed ongoing momentum in Australian property transaction volumes. It said:

Pexa Group reiterated its FY26 guidance in a strong March-quarter trading update that highlighted ongoing momentum in Australian property transaction volumes. Domestic volumes are tracking well ahead of internal expectations, with total transactions up 7.3% year on year (YoY). This compares with prior assumptions for a modest decline in second-half volumes, and marks a robust start to the second half of FY26. ‍

The strength was evident across key transaction categories, including transfers, refinances and other transactions, all recording solid year-on-year growth. National market penetration remained stable at around 90%, consistent with recent periods. Operationally, the Australian business continues to perform well, supporting confidence around earnings delivery in the near term.

However, the broker does concede that there are emerging risks that investors need to be aware of. It adds:

That said, there are emerging risks to fourth-quarter activity, including consecutive interest rate increases, softer auction clearance rates and the potential for tax reform affecting investment properties.

Big potential returns

According to the note, the broker has a buy rating and $20.00 price target on its shares.

Based on its current share price, this implies potential upside of approximately 85% for investors over the next 12 months.

Commenting on its buy recommendation, Ord Minnett said:

The UK business showed mixed trends, although currency movements provided a short-term tailwind by reducing losses in the segment. Remortgage instruction volumes were strong as borrowers moved to lock in fixed rates ahead of anticipated interest rate rises, although some market share softness was evident. Importantly, many of these instructions are expected to convert to completions in the first quarter of FY27, providing some forward earnings support.

Despite these positives, the review of integrated property accounting service prices by the NSW Independent Pricing and Regulatory Tribunal (IPART) remains a key near-term overhang for investors, with a final report not due until September. Resolution of the pricing review is likely to be the catalyst required to unlock investor confidence in Pexa’s prospects and valuation upside. We maintain our Buy recommendation and target price of $20.00.

The post Ord Minnett says this ASX 200 tech share could rise 85% 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 PEXA Group. The Motley Fool Australia has positions in and has recommended PEXA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Boab Metals Ltd (ASX: BML) today announced it had entered into a contract with GR Engineering Services Ltd (ASX: GNG) for the engineering, procurement and construction at its Sorby Hills silver-lead project in the Kimberley region of Western Australia.

Working towards production

It’s the latest in a long line of milestones the ASX mining company has been ticking off at the project, where it expects to start commercial concentrate production in the second half of 2027.

Boab signed a deal with Sandfire Resources Ltd (ASX: SFR) back in April 2025 to buy the DeGrussa Processing plant, with the deal subject to a number of conditions, including Boab making a final investment decision and gaining regulatory approval for the Sorby Hills mine.

Boab said this week:

On 18 May the Company announced that all conditions precedent to the acquisition had been satisfied and the transaction completed on Friday 22 May 2026. Located in the Meekatharra region of Western Australia, the world-class DeGrussa Copper Mine was built and operated by Sandfire as their flagship project between 2011-2024. The DeGrussa Processing Plant includes a primary crusher, ore storage bin, ball mill, SAG mill, flotation circuit, concentrate and tailings thickeners and an extensive list of new spares all fit-for-purpose for the proposed Sorby Hills process plant flowsheet and sized to achieve the targeted 100ktpa concentrate production rate.

Boab said early engineering works and the ordering of long lead time items had now started for the Sorby project, and “construction teams will be mobilised to the respective sites in the coming weeks”.

Shares looking cheap

Shaw and Partners released a new research note this week on Boab Metals, stating that they had visited the project.

They added:

The early site works are complete, with a key piece of enabling infrastructure, the site-access road, in place. The site camp is under construction and the ground works for the process plant and non-process infrastructure is underway. Early mining activities at the B pit have also commenced where the cover is being removed and used for on-site construction materials. A key take-away from our site visit was the strong support Boab and the Sorby Hills Project are receiving from the local community. Sorby Hills will replace Argyle Diamonds as a key employer in the region.

Shaw said the economics of the project were materially enhanced at the spot silver price compared to the price used in the assumptions used by the company.

Shaw and Partners has a price target of $1.70 on Boab Metals shares, compared with 40 cents currently.

Boab Metals was added to the All Ordinaries Index at its March 23 rebalance.

The post Looking to 4x your money? Shaw and Partners has tipped this miner for big things 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 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.