Pro Medicus Ltd (ASX: PME) shares could be dirt cheap right now.

That’s the view of analysts at Bell Potter, who are urging investors to buy the health imaging technology company’s shares while they are down.

What is the broker saying?

Bell Potter was pleased with news that Northwestern Medicine has renewed with the ASX 200 tech stock for a further five years on improved terms. It said:

Northwestern Medicine has signed a 5 year extension with PME for the Visage Viewer at increased rates and with an increased minimum deal value. Northwestern is one of the largest healthcare providers in the state of Illinois and a leading academic medical centre and remains a highly valuable client. Contract value is upgraded from $22m to $37m over five years.

PME continues to win new business in the United States, last week announcing the signing of a five year $23m deal with University of Maryland Medical System covering Visage 7 Viewer and Visage Workflow – but again no archive (Maryland already has an off premises archive). We understand the incumbent was Carestream (a company owned by Phillips).

Outside this, Bell Potter has trimmed its revenue forecast slightly to reflect a delay in revenues from the major Trinity Health contract and a weaker US dollar. It adds:

FY26 revenue forecast is reduced by a further 3.4% to $261m owing to amendments in the commencement date for exam revenues on major new contract implementations at Trinity Health and U. Colorado. The weaker US$ is also expected to have a material impact on revenues in the current period.

Longer term, the outlook remains strong with PME FY27 exam revenues expected to benefit from full period benefit of implementations in the current half including the two largest cohorts of the Trinity Health contract plus the Big Bang implementation at U. Colorado covering radiology and cardiology.

Time to buy this ASX 200 tech stock?

According to the note, the broker has retained its buy rating on the ASX 200 tech stock with a slightly reduced price target of $226.00 (from $240.00).

Based on its current share price of $132.38, this implies potential upside of 70% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

PME continues to win new work and retains 100% of its existing client base. The stock is trading 60% below it all time high – not all attributable to the re-rating of its software revenues stream i.e. the law of large numbers is catching up, hence harder now for the company to maintain +30% EPS growth. Retain buy, PT amended to $226 following earnings amendments.

The post This dirt cheap ASX 200 tech stock could rise 70% appeared first on The Motley Fool Australia.

More reading

• Still down 40%, are Pro Medicus shares primed to break out?
• 5 things to watch on the ASX 200 on Tuesday
• Why these ASX 200 stocks could be perfect for buy and hold investors
• Why Monash IVF, Pro Medicus, Telix, and Woodside shares are storming higher today
• Why are Pro Medicus shares outperforming the market on Monday?

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

The Qantas Airways Ltd (ASX: QAN) share price is in focus today after the company provided a market update flagging sharply higher jet fuel costs and a shift in capacity, while maintaining a strong balance sheet.

What did Qantas Airways report?

• Jet fuel costs for 2H26 are now estimated at $3.1–3.3 billion, more than double previous expectations.
• Group International RASK (unit revenue) growth for 2H26 is forecast at 4–6%, double prior guidance.
• Group Domestic RASK growth for 2H26 expected at approximately 5%.
• FY26 capital expenditure to be at or below $4.1 billion, the bottom end of guidance.
• Net debt now expected at or above the midpoint, but within Qantas’ target range by 30 June 2026.
• The $300 million interim dividend (19.8 cents per share) will be paid on 15 April 2026; $150 million buyback remains on hold.

What else do investors need to know?

Qantas has implemented a range of measures to mitigate rising fuel costs and the impact of Middle East conflict, including network changes, reduced domestic capacity in the current quarter, and fare increases. The company remains exposed to fluctuating jet refining margins, despite hedging most of its crude oil needs for the half-year.

Demand for international travel, especially to Europe, remains robust. Qantas is redeploying resources from the US and domestic operations to offer additional flights to Paris and Rome. Affected domestic customers are being offered alternative flights or refunds after a 5 percentage point reduction in 4Q26 capacity.

What’s next for Qantas Airways?

Qantas will keep monitoring external conditions and holds flexibility to adjust its response to volatile fuel prices. The company says it is working closely with government and fuel suppliers to ensure fuel availability, while continuing to manage capacity and pricing in response to evolving demand.

The group will provide a formal update on its FY27 outlook once there is more certainty on geopolitical and economic developments impacting its operations.

Qantas Airways share price snapshot

Over the past 12 months, Qantas shares have risen 6%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post Qantas Airways flags higher fuel costs and capacity changes in FY26 update appeared first on The Motley Fool Australia.

More reading

• Cleanaway Waste Management trims FY26 outlook on fuel challenges
• Westpac Banking Corporation: Items impacting first-half 2026 results
• 3 quality ASX shares I’d buy while everyone else is nervous
• 5 things to watch on the ASX 200 on Tuesday
• Insignia Financial shareholders consider $4.80 per share CC Capital takeover

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.

The S&P/ASX 300 Index (ASX: XKO) stock Temple & Webster Group Ltd (ASX: TPW) is one of the most exciting Australian businesses to buy, in my eyes.

It has suffered a huge decline in recent times, dropping by around 70% over the past six months, as the chart below shows.

I can see why some of the decline has occurred for the online furniture and homewares retailer – revenue growth has somewhat slowed, margins have decreased and it’s pursuing growth in New Zealand.

There are three key reasons why I’d invest in the business – let’s look at those.

Great tailwinds

One of the key reasons to like the business is because it is exposed to a strong, supportive tailwind.

Over time, the business is benefiting from ongoing online shopping adoption by households. All the business needs to do is maintain its market share of online shopping to see very pleasing growth for the foreseeable future.

Temple & Webster notes that online penetration for furniture and homewares in Australia and New Zealand trails global peers. In Australia, it’s around 20%, compared to 29% in the UK and 35% in the US.

The ASX 300 stock suggested that Australia and New Zealand lag the UK and US by between five to seven years.

So, online penetration could rise from 20% in Australia right now to 30% over the next several years, which bodes well for Temple & Webster.

Temple & Webster also has a small but growing home improvement segment, where online penetration is only in the region of 5% to 10%.

Strong revenue growth

It’s important to recognise that while the market has severely punished the ASX 300 stock, it continues to grow at a very good pace.

The most recent numbers were the trading update that was released with the FY26 half-year result.

Revenue for the period 1 January 2026 to 9 February 2026 was up 20% year-over-year, driven by both an acceleration of new customers and continued growth of repeat customers.

It also said its focus for the second half is to grow revenue and take market share as fast as it can, while delivering on its stated margin objectives with an operating profit (EBITDA) margin of between 3% to 5%.

The business is aiming for a medium-term goal of at least $1 billion in annual revenue, which will bring scale benefits on its own.

I think the company is on track to reach its $1 billion goal thanks to two growth initiatives.

Firstly, it recently launched in New Zealand, expanding the company’s total addressable market by 10%, and it has enabled the majority of its catalogue for New Zealand customers.

Secondly, home improvement revenue is soaring – in HY26 it grew by 47% to $30 million, with private label penetration increasing to 25% (up from 18% in the first half of FY25). While it’s only a small part of total revenue, that growth rate could help home improvement become an important slice of the pie in the coming years.

The ASX 300 stock could achieve compelling profit margins

In the short-term, the business is sacrificing some margin to continue to deliver growth.

But, in the longer-term, I think its profit margins will increase and the market is underestimating this.

Increasing in size alone will help some margins, particularly as fixed costs become a smaller percentage of revenue. In the long-term, fixed costs are expected by the business to be less than 6% of revenue (it was 10.6% in FY25).

Marketing costs are also expected to reduce to less than 11% of revenue in the long-term, down from 16.3% in FY25.

Ultimately, the business is aiming for an EBITDA margin of more than 15%, up from 3.1% in FY25.

According to the projection on CMC Invest, the business is projected to generate 22.8 cents of earnings per share (EPS) in FY28, which puts the Temple & Webster share price (at the time of writing) at 31x FY28’s estimated earnings.

The post This could be the best ASX 300 stock buy today! appeared first on The Motley Fool Australia.

More reading

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• Why I’d buy dirt-cheap ASX shares now and aim to hold them for a decade

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

ASX materials stocks have shown resilience this year amidst broader market softness. 

The S&P/ASX 200 Materials (ASX: XMJ) index has climbed over 10% in 2026. 

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is up just over 2% year to date, and one such ASX materials stock that has climbed this year is Imdex Ltd (ASX: IMD). 

It is an Australian mining equipment and technology company operating globally.

Its technology includes drilling optimisation products, cloud-connected rock knowledge sensors and data and analytics. These aim to improve the process of identifying and extracting mineral resources.

The Imdex share price has moved largely in line with the broader sector this year, rising 10.7%.

Yesterday the team at Bell Potter issued updated guidance on this ASX materials stock, indicating the rise could continue. 

Here’s what the broker had to say. 

Exploration market outlook remains robust

Bell Potter noted that spending on exploration by major and intermediate mining companies is expected to rise by about 24% in 2026. 

This is a strong increase, similar to the growth seen in 2021–2022. Importantly, these larger companies usually make up around 80–85% of Imdex’s revenue. 

In 2021 and 2022, their exploration spending grew by 26% and 29%. Subsequently, this helped drive revenue growth of 31% and 21% in those years.

According to Bell Potter, based on this pattern, the current forecast of 21% revenue growth for 2026 looks conservative. 

Imdex is also better positioned now because it offers more products and services after expanding its technology over the past three years.

IMD’s greater share of wallet in this cycle, following the integration of several hardware and digital products acquired and internally developed over the past 3 years, positions the company well in an expanding market.

Buy rating unchanged for this ASX materials stock

Based on this guidance, the team at Bell Potter have reiterated a buy recommendation for Imdex shares. 

Furthermore, the broker has a $4.60 price target, which indicates a 20% upside from yesterday’s closing price of $3.83. 

Additionally, Bell Potter said is is encouraged by the significant expansion in CY26 gold and copper major and intermediate exploration budgets, suggesting robust uptake of IMD drilling products, tools and software in the short-term. 

Together, with greater junior exploration activity, as a record wave of recently raised equity is deployed, IMD is well positioned to deliver strong revenue growth and operating leverage over the next twelve months. Notwithstanding these tailwinds, we express caution regarding first and second order impacts from the Iran war.

The post This ASX materials stock could rise 20% according to this broker appeared first on The Motley Fool Australia.

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

I’ve got my eyes on a couple of ASX-listed exchange-traded funds (ETFs) that I expect to be major positions in my portfolio in the long-term.

There are certain ASX dividend shares and ASX growth shares I’ve invested in that I’m very optimistic about.

But, there are a few ASX ETFs that I believe can help fill some investment exposure gaps that some Aussie portfolios, including mine, may have when aiming for (or during) retirement.

So, let’s dive in.

VanEck Morningstar Wide Moat ETF (ASX:  MOAT)

It’d be understandable for investors to have a lot of exposure to ASX shares and perhaps to an ASX ETF that gives significant allocation to large US shares, such as with the iShares S&P 500 ETF (ASX: IVV) and Vanguard MSCI Index International Shares ETF (ASX: VGS).

But, there are plenty of other high-quality businesses in the US – the home of numerous compelling companies – that are worth owning.

The MOAT ETF typically has around 50 holdings (it currently has 57). They’re all US-listed businesses, though the underlying earnings are more diversified.

There are some great businesses below the tech giant group in size which have very powerful economic moats, which are also called competitive advantages. An economic moat is what helps a business generate revenue/profit and fend off rivals, with examples such as intellectual property, cost advantages and plenty of others.

The MOAT ETF wants to find businesses that have economic moats that are expected to endure for at least 20 years, which means those businesses have a very attractive, long-term future. In turn, this makes the ASX ETF itself a great option to own for the long-term.

Additionally, the ASX ETF only invests in these great businesses when the price is attractive.

In the ten years to March 2026, it had returned an average of 14.7% per year. Past performance is not a guarantee of future returns, but that level of return is powerful to help build towards a great nest egg.

WCM Quality Global Growth Fund (ASX: WCMQ)

The WCMQ ETF is another option that I think plenty of Australians would benefit from owning.

It invests in a portfolio of global shares that have a couple of key features that California-based fund manager WCM believes can help deliver investment (out) performance.

First, the fund wants to find businesses that have strengthening economic moats. It’s the ‘direction’ of the moat that’s more important to the WCM investment team than the size of that moat. A business with improving competitive advantages can become increasingly profitable.

The second element of the investment strategy is to invest in businesses that have a corporate culture that fosters an improvement of the competitive advantages.

The WCMQ ETF has retuned an average of 15.1% per year since inception in August 2018, which is a great level of return, though that’s not guaranteed to continue in the next several years.

One of the advantages of this fund is that it aims to pay a distribution yield of at least 5%, so it’s able to give investors good passive income. I think some investors may be missing an international shares option that pays a good dividend yield.

The post I’m planning to buy loads of these ASX ETFs for my retirement appeared first on The Motley Fool Australia.

More reading

• How to turn $20,000 into $100,000 with ASX ETFs
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Motley Fool contributor Tristan Harrison has positions in VanEck Morningstar Wide Moat ETF and Wcm Quality Global Growth Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Cleanaway Waste Management Ltd (ASX: CWY) share price is in focus today after the company updated investors about its FY26 earnings outlook, revealing an expected $20 million hit to EBIT due to the ongoing conflict in the Middle East and elevated fuel costs.

What did Cleanaway Waste Management report?

• Estimated FY26 EBIT now forecast between $460 million and $480 million (previously $480 million to $500 million)
• Approximately $20 million adverse EBIT impact from higher fuel, supplier and logistics costs, and lower Middle East activity
• Contractual cost pass-through mechanisms helping recover a substantial portion of higher fuel costs
• No reported fuel supply issues across operations despite market volatility
• Cleanaway’s pricing structures allow staged cost recovery, with most contracts adjusting by 1 July 2026

What else do investors need to know?

Cleanaway has a long-term strategic partnership in place with a major fuel supplier, ensuring steady access to competitively priced fuel throughout this period of disruption. Cost pass-through mechanisms, such as customer contracts with fuel levies and indexed repricing, support the company in offsetting input cost volatility.

While higher fuel costs are being felt, Cleanaway says most of this impact is timing-related rather than long-term margin pressure. Recovery of elevated fuel costs should occur as contracts are repriced and fuel markets stabilise, though there may be further uncertainty in Middle East project activity.

What’s next for Cleanaway Waste Management?

Looking ahead, Cleanaway will keep monitoring fuel markets and trading conditions, particularly any further impacts from the Middle East conflict. Management expects most contracts to reflect fuel price increases by the start of FY27, which should help recover the bulk of the current cost challenges.

The business intends to maintain its focus on operational efficiency, using levers like fleet optimisation and procurement actions to help navigate volatility. Strategic relationships and contractual protections are expected to support resilient long-term performance.

Cleanaway Waste Management share price snapshot

Over the past 12 months, the Cleanaway Waste Management share price has declined 10%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post Cleanaway Waste Management trims FY26 outlook on fuel challenges appeared first on The Motley Fool Australia.

More reading

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• Insignia Financial shareholders consider $4.80 per share CC Capital takeover
• 2 ASX 200 blue-chip shares worth owning in April 2026

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.

The Westpac Banking Corporation (ASX: WBC) share price is in focus after the banking giant provided an update on items impacting its first-half 2026 results.

What did Westpac Banking Corporation report?

• Lending grew by 4% and deposit growth reached 3% during the half.
• Core net interest margin (NIM), excluding timing impact of rate rises, held steady in the second quarter of FY26.
• Ongoing productivity initiatives reduced expenses by 2%.
• Asset quality strengthened, and the CET1 capital ratio improved in 2Q26.
• Credit impairment charge was 10 basis points of average gross loans.
• Reported net profit after tax was reduced by $75 million due to transaction costs on the RAMS mortgage portfolio sale.

What else do investors need to know?

Westpac is navigating global uncertainty, with recent geopolitical tensions and energy market disruptions adding pressure. The bank noted that higher inflation and interest rates are expected to lead to a tougher environment for some customers.

Foreign currency movements—especially the 6% decline in the average New Zealand dollar exchange rate—had an impact on both revenue and costs. Westpac also increased provisions by adding a portfolio overlay for energy-intensive sectors, reflecting its cautious approach.

The sale of the RAMS mortgage portfolio is progressing, with completion expected in the second half of 2026. This transaction saw RAMS moved from the Consumer segment to Group Businesses in Westpac’s financial reporting.

What’s next for Westpac Banking Corporation?

Looking ahead, Westpac plans to focus on supporting customers during a period of ongoing economic and geopolitical change. The bank is also continuing to execute its productivity and efficiency drive while progressing its strategic portfolio reshaping, including the RAMS sale.

Westpac expects the challenging environment to persist but remains committed to maintaining strong asset quality and disciplined capital management through the upcoming half.

Westpac Banking Corporation share price snapshot

Over the past 12 months, Westpac shares have risen 40%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post Westpac Banking Corporation: Items impacting first-half 2026 results appeared first on The Motley Fool Australia.

More reading

• Cleanaway Waste Management trims FY26 outlook on fuel challenges
• 3 quality ASX shares I’d buy while everyone else is nervous
• 5 things to watch on the ASX 200 on Tuesday
• Insignia Financial shareholders consider $4.80 per share CC Capital takeover
• Here’s the dividend forecast out to 2028 for Westpac shares

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.

Some ASX shares demand attention. They move around, react to headlines, and can make you feel like you need to constantly check what is happening.

Others are different. They are the kind of businesses I would feel comfortable owning without needing to follow every update, because the underlying direction is clear and the long-term drivers are still in place.

Here are three ASX shares I think fit that description.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is not the type of company that tends to dominate headlines. But I think that is part of what makes it appealing over a long period.

It provides enterprise software to government agencies, universities, and large organisations. These are not customers that switch systems lightly. Once the software is embedded, it often becomes part of day-to-day operations.

What I like most is the nature of those relationships. They tend to be long-term, recurring, and built around essential functions like finance, payroll, and administration. That creates a level of revenue visibility that can support steady growth over time.

The shift to a software-as-a-service model has also strengthened that position.

Instead of one-off licence sales, the business now generates more predictable income, which can compound as new customers are added and existing ones expand their usage.

For me, it is a business that does not need to reinvent itself every few years to keep growing.

Goodman Group (ASX: GMG)

Goodman Group is often described as a property company, but I think that label misses part of the story.

What it is really doing is developing and managing the infrastructure that supports the modern economy.

That includes logistics facilities, but increasingly it also includes data centres and digital infrastructure. These are assets that sit behind trends like ecommerce, cloud computing, and artificial intelligence.

What I find interesting is how the business evolves alongside those trends. It is not just collecting rent. It is identifying where demand is going and positioning itself early, whether that is through land acquisition, development, or partnerships.

That adaptability is important for a long-term holding. It means the ASX share is not tied to a single theme. Instead, it can shift its focus as the world changes, while still operating within its core area of expertise.

Macquarie Group Ltd (ASX: MQG)

Macquarie is probably the most complex of the three, but I think it is also one of the most flexible.

It operates across asset management, infrastructure, energy, and financial services, with a global footprint.

At first glance, that can seem difficult to follow. But over time, I think that breadth becomes an advantage. Different parts of the business perform at different times. When one area slows, another may be benefiting from changing market conditions. That diversification can help smooth performance across cycles.

What stands out to me is the company’s ability to adapt. Macquarie has a long history of moving into new areas of opportunity, whether that is infrastructure, renewable energy, or commodities. It tends to position itself where capital and demand are growing.

For a long-term investor, that kind of evolution can be valuable.

Foolish takeaway

Buying shares for 10 years is about choosing businesses that can remain relevant without constant oversight.

I think these ASX shares tick that box. TechnologyOne benefits from long-term customer relationships and recurring revenue, Goodman Group is building infrastructure tied to how the economy is evolving, and Macquarie brings diversification and the ability to adapt across different environments.

The post The ASX shares I’d buy and forget about for 10 years 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 Goodman Group, Macquarie Group, and Technology One. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Goodman Group and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech stocks have been under serious pressure. Once high-flying growth names have been dragged back to earth, with many now hovering near 52-week lows.

Two standout examples are Megaport Ltd (ASX: MP1) and Seek Ltd (ASX: SEK).

Over the past six months, Megaport shares have plunged 53%, while Seek has dropped 47%. Both have been caught in the same broad tech sell-off that has hit valuations across the sector.

So, is this the bottom or just another leg down?

Let’s take a closer look.

Megaport: beaten down, but not broken?

This ASX tech stock has had a brutal run. But underneath the share price weakness, its core business continues to tap into a powerful long-term trend: the growth of cloud computing and data infrastructure.

Megaport provides network-as-a-service solutions, allowing businesses to connect to cloud providers quickly and efficiently. As demand for data, Artificial Intelligence, and cloud services accelerates, that positioning becomes increasingly valuable.

And there’s a new tailwind emerging. According to Citi, demand for GPU rentals is surging, a trend that could significantly benefit Megaport’s Latitude business. As companies race to access AI computing power, infrastructure providers like Megaport could sit right in the middle of that demand spike.

Citi clearly sees value here. The broker has retained its buy rating and a $14.65 price target, implying potential upside of 114% from current levels.

That’s a bold call, but not without risk. The ASX tech stock is still a high-growth tech company, which means execution matters. Any slowdown in customer growth or margins could quickly derail sentiment. And in the current market, investors are less forgiving of misses.

Still, if AI-driven demand continues to build, Megaport could be one of the quieter beneficiaries.

Seek: a digital leader facing near-term headwinds

Seek tells a slightly different story. Unlike many tech names, this ASX tech stock is already a well-established, profitable business with a dominant position in online job classifieds across Australia and key international markets.

That market leadership gives it strong pricing power and a highly scalable platform. When hiring activity is strong, Seek tends to perform exceptionally well.

But that’s also where the risk lies. Seek is closely tied to economic conditions. If hiring slows — particularly in key markets — revenue growth can come under pressure. And right now, there are signs of exactly that.

Citi recently flagged near-term headwinds but still believes the ASX tech stock is undervalued. The broker has a $26 price target, suggesting around 77% upside from current levels.

The broader analyst community agrees. According to TradingView data, most brokers rate Seek as a buy or strong buy. The most bullish forecasts go even further, with price targets as high as $28.40, nearly double where the stock trades today.

Foolish Takeaway

Both Megaport and Seek have been hit hard by the tech sell-off. But neither story is broken.

Megaport offers exposure to the fast-growing world of cloud and AI infrastructure. Seek provides a dominant, cash-generating platform tied to employment cycles.

Both ASX tech stocks come with risks and face near-term uncertainty. But if sentiment turns and growth expectations stabilise these beaten-down tech stocks could have significant upside from here.

The question for investors is simple: are you willing to ride out the volatility to capture it?

The post Down 50%, but could these top ASX tech stocks double from here? appeared first on The Motley Fool Australia.

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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 Megaport. 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.

DroneShield Ltd (ASX: DRO) shares have never really been for the faint-hearted.

They tend to move quickly, both up and down, which means sentiment can shift just as fast as the underlying story.

And after a sharp pullback over the past six months, is this a good time to invest, or is it better to wait?

For me, I think the answer leans toward yes.

Leadership change doesn’t change the story

One of the biggest developments recently has been the change in leadership.

Founder and long-time CEO Oleg Vornik has stepped down, with Angus Bean stepping into the role after years leading the company’s technology and product development.

At the same time, the company is also transitioning at the board level, with a new chairman set to take over.

I think this is a meaningful moment. Leadership changes like this can create uncertainty in the short term. Investors often prefer stability, particularly in a high-growth company.

But it can also mark the beginning of the next phase.

Bean has been deeply involved in building the company’s core technology, which suggests continuity in strategy. And with new leadership at the board level, there is also a focus on governance and scaling the business further.

Strong momentum beneath the surface

Beyond leadership, the underlying business appears to be moving in the right direction.

The company recently reported strong growth in revenue and record customer cash receipts, alongside a growing base of committed revenue early in the financial year.

That is important. DroneShield has often been seen as a company with strong potential but uneven financial performance. Signs of more consistent growth could help change that perception over time.

The broader opportunity also remains significant.

The counter-drone market is still developing, with demand coming from military, government, and civilian use cases. The company is targeting a large global opportunity and has built a sizeable pipeline of potential contracts to support future growth.

For me, that reinforces the long-term story.

But it is not without risk

At the same time, I do not think this is a straightforward investment.

Revenue can still be lumpy, depending on the timing of contracts. That can lead to periods where growth looks very strong, followed by quieter stretches.

There is also execution risk. A new CEO, even one promoted internally, still needs to prove they can lead the business through its next phase.

And more broadly, companies in emerging industries tend to be more sensitive to shifts in sentiment.

That is something investors need to be comfortable with.

So, is now a good time?

I think it depends on how you are approaching the investment. If you are looking for stability and predictability, DroneShield may not be the right fit.

But if you are comfortable with volatility and focused on long-term growth, I think the current environment could present an opportunity.

The company has strong momentum, a large addressable market, and is entering a new phase of leadership.

For me, that combination is enough to justify taking a position, even if the path forward is unlikely to be smooth.

Foolish takeaway

DroneShield shares are not a low-risk investment, and I do not think they should be treated like one.

But the long-term opportunity in counter-drone technology remains compelling, and recent developments suggest the business continues to build momentum.

For investors willing to accept volatility, I think now could be a reasonable time to start or add to a position, with a long-term mindset.

The post Is now a good time to invest $5,000 into DroneShield shares? appeared first on The Motley Fool Australia.

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