S&P/ASX 200 Index (ASX: XJO) shares are ripping on Monday, up 2% to 8,885.5 points as earnings season continues.

On The Bull today, Jabin Hallihan from Family Financial Solutions reveals his ratings on three of the biggest names on the ASX 200.

One is a buy, one is a hold, and one is a sell.

Let’s take a look.

CSL Ltd (ASX: CSL)

CSL shares are $180.87 apiece, up 0.2% on Monday and down 31% over the past six months.

The CSL share price plunged after the company released its FY25 report last August.

So, it will be interesting to see what happens when CSL releases its next significant earnings report on Wednesday.

Meantime, Hallihan has a buy rating on the ASX 200 healthcare sector’s largest company.

Hallihan says:

The share price has fallen from $271.32 on August 18, 2025 to trade at $181.48 on February 5, 2026.

Our fair value is $295 a share.

Short term earnings noise obscures a high quality plasma franchise with structural demand growth.

In a bull market, valuation normalisation and quality should deliver strong upside moving forward. 

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $86.28, up 1.5% today and down 2.6% over the past six months.

Wesfarmers is the consumer discretionary sector’s largest stock by market capitalisation.

It owns Bunnings, Kmart, Officeworks, Priceline Pharmacy, Soul Pattinson Chemist, and others.

Hallihan rates the ASX 200 retail conglomerate a sell.

… in our view, the stock remains significantly overvalued, with optimism already priced in.

The stock was recently trading on a lofty price/earnings ratio above 32 times, so it’s exposed to a correction on signs of any weakness.

We would be inclined to trim holdings and re-invest the proceeds in stocks offering better value.

Wesfarmers will release its 1H FY26 results next Thursday, 19 February.

Woolworths Group Ltd (ASX: WOW)

Woolworths shares are $31.73 apiece, up 0.9% on Monday and down 0.8% over the past six months.

Hallihan has a hold rating on the ASX 200 consumer staples sector’s largest company.

He comments:

The share price of this supermarket giant is slowly recovering after releasing its first quarter sales results in fiscal year 2026 to the market on October 29, 2025.

While Woolworths acknowledged first quarter sales were below aspirations, group sales of $18.5 billion were up 2.7 per cent on the prior corresponding period. 

Australian food sales were up 2.1 per cent.

Competitive pricing and cost pressures limit near term upside, but scale advantages remain intact.

The company’s defensive characteristics appeal in an economy of higher interest rates. 

Woolworths will reveal its 1H FY26 results on Wednesday, 25 February.

The post Buy, hold, sell: Wesfarmers, Woolworths, CSL shares appeared first on The Motley Fool Australia.

More reading

• Are Woolworths shares a good buy today amid rising interest rates?
• Where I would invest $10,000 in ASX 200 shares in February
• Argo Investments reports record profit and dividend
• Is this the right time to invest in ASX defensive shares?
• Experts name NAB and these ASX 200 shares as sells

Motley Fool contributor Bronwyn Allen 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 and Wesfarmers. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended CSL and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX tech shares have had a rough run. Valuations have reset, sentiment has cooled, and headlines around artificial intelligence (AI) disruption have spooked plenty of investors. But stepping back from the noise, I still see compelling reasons to stay constructive on quality ASX tech shares in 2026.

Valuations have normalised without the businesses breaking

One of the biggest changes over the past year has been valuation, not fundamentals.

Many leading ASX tech shares are now trading 40% to 60% below their highs, despite continuing to grow revenue, expand customer bases, and generate strong cash flow. That disconnect matters.

In prior years, investors were paying for perfection. Today, expectations are far more conservative. For long-term investors, that shift lowers the bar for future returns. A company does not need to surprise massively on growth to deliver a solid outcome. It simply needs to execute.

This is why I’m far more comfortable adding exposure now than when optimism was stretched, and multiples left no room for error.

The best ASX tech shares are deeply embedded

A lot of the fear around tech in 2026 centres on disruption, particularly from AI. I think that risk is being overstated for the highest-quality platforms.

Companies like Xero Ltd (ASX: XRO), WiseTech Global Ltd (ASX: WTC), and REA Group Ltd (ASX: REA) are not just tools. They are infrastructure.

They sit at the centre of workflows, compliance, data, and decision-making. Replacing them would be costly, risky, and operationally painful for customers. That creates strong switching costs and lasting competitive positions.

I think AI will enhance these platforms over time, rather than make them redundant. In many cases, it strengthens their value proposition by making the data they already control more useful.

Long-term growth drivers are still firmly in place

It’s easy to forget that the structural tailwinds for tech have not disappeared.

Businesses are still digitising operations. Data volumes are still growing. Software penetration is still increasing across industries like accounting, logistics, real estate, travel, and healthcare.

Australian tech shares may operate in niche markets, but many of them serve global customers and address very large total addressable markets. When you combine that with recurring revenue, high margins, and operating leverage, you get businesses that can compound earnings for many years if execution remains solid.

Short-term volatility does not change that equation. In fact, it often creates the best entry points.

Foolish Takeaway

I’m not buying ASX tech shares because I think sentiment will improve next month or because valuations have hit rock bottom.

I’m buying because many of these businesses still have long runways for growth, strong competitive positions, and far more reasonable expectations priced in than they did a few years ago. In 2026, I think patience, selectivity, and a focus on quality will matter more than ever.

The post 3 reasons I would continue to buy ASX tech shares in 2026 appeared first on The Motley Fool Australia.

More reading

• Are Woolworths shares a good buy today amid rising interest rates?
• I would forget ANZ Bank shares and buy these ASX ETFs
• Bell Potter names the best ASX shares to buy in February
• Up 10%: Everything you need to know about the new Car Group dividend
• Buy, hold, sell: Wesfarmers, Woolworths, CSL shares

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

Life360 Inc. (ASX: 360) shares were caught up in last week’s sell-off across software stocks, as investors worried that artificial intelligence could disrupt established platforms.

While this is disappointing, according to Bell Potter, the pullback could be an opportunity rather than a warning sign.

In a broker note this morning, Bell Potter outlined five reasons why it believes Life360 shares stand out as a buy at current levels.

1. Life360 is not traditional software

Bell Potter argues that Life360 should not be viewed as a conventional software company that faces meaningful AI disruption risk. It said:

Life360 is an app rather than software company so faces little risk of AI disruption given the ecosystem it has developed over >15 years.

2. The FY25 result is largely known

Another positive highlighted by Bell Potter is the lack of uncertainty around the upcoming result. The broker explains:

The 2025 result is already largely known following the update provided in late January and showed strong growth in all key metrics.

This includes revenue growth of more than 30% and a sharp improvement in profitability, which reduces the risk of negative surprises when results are released.

3. Consensus forecasts look reasonable

Bell Potter believes expectations for FY26 earnings are achievable and not overly aggressive. Its analysts note:

VA consensus for 2026 adjusted EBITDA is c.US$132m (vs BPe US$130m) and we expect the guidance to be at least equal to this level.

Bell Potter notes that these forecasts already assume higher sales and marketing spend and include the lower-margin Nativo business.

4. User growth could accelerate

User growth remains a key driver of Life360’s long-term value, and Bell Potter sees scope for further upside. The broker explains:

The one outlook statement for 2026 already provided is MAU growth of 20% which implies absolute growth of c.19m.

Bell Potter also highlights that its own forecasts assume a conservative conversion rate from free users to paying subscribers, which leaves room for upside if engagement remains strong.

5. The valuation now looks attractive

Finally, Bell Potter believes the recent sell-off has made Life360 shares look compelling on a valuation basis. It said:

Life360 is now trading on 2026 and 2027 EV/Adjusted EBITDA multiples of c.31x and c.21x which looks value for forecast growth of c.45% in both periods.

Despite trimming its price target to reflect broader weakness in tech stocks, Bell Potter still sees substantial upside.

Should you buy Life360 shares?

Bell Potter has retained its buy rating on Life360 shares with a trimmed price target of $41.50.

Based on its current share price of $25.68, this implies upside of more than 60% over the next 12 months.

While sentiment around ASX software stocks has been volatile, Bell Potter believes Life360’s business model, growth outlook, and valuation make it an attractive buy this week. It concludes:

Key focus at the result next month will be the 2026 guidance which, as mentioned, we expect to be at least consistent with VA consensus. The guidance already provided for MAU growth implies continued strong top line growth but note we only assume a modest increase in the adjusted EBITDA margin from c.18.4% in 2025 to 19.8% in 2026 due to an assumed increase in S&M and also the lower margin of Nativo.

The post 5 reasons to buy Life360 shares this week appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 tech shares like WiseTech and NextDC going gangbusters on Monday
• 5 things to watch on the ASX 200 on Monday
• Why I’m bullish on these buy-rated ASX shares in February
• 3 ASX shares I’d buy with $10,000 today
• These ASX 200 shares could rise 50% to 80%

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Newmont Corporation (ASX: NEM) recently hit a 12-month high; however, the analyst team over at Barrenjoey believe there’s still plenty of potential and has a bullish share price target on the stock.

Barrenjoey has released a new research report into Newmont, with the catalyst being fellow gold miner Barrick Mining reporting its fourth-quarter results.

This affects Newmont as two gold mines, which Barrick runs, account for about 20% of Newmont’s business, according to the Barrenjoey team.

Apparently, the guidance for these assets for 2026 and beyond was “softer than the market is expecting”, Barrenjoey said, and it has factored in a 2% downgrade to Newmont’s 2026 EBITDA as a result.

They maintain their overweight rating on the stock, however, and said there was room to improve on Newmont’s behalf.

As they said:

Newmont’s business is currently operating below its full potential, with a number of assets running on lower grades, or with investments being made to improve them. Returning the business to its potential should drive production growth from about 5.6 million ounces in 2025 to about 6.0 million ounces by 2028. We think execution on business improvement initiatives could drive earnings growth and a potential multiple re-rating.

Balance sheet in ‘great shape’

The Barrenjoey team said they expected the company to have net cash of more than US$1 billion by the end of 2025, with that figure to be reported soon, and said the balance sheet was in “great shape”.

They also predict the company will increase its dividend, despite Newmont previously saying it preferred share buybacks to return capital to shareholders.

The Barrenjoey team said:

Newmont has consistently guided the market that cash returns were most likely to be driven via buybacks rather than dividends. Despite this we are forecasting a lift in the quarterly dividend to US$0.40 per share. Why? Basically the very strong balance sheet, forecast free cash flow and the fact that there has been a reduction in shares on issue from the buyback. Newmont’s shares on issue of 1,089m is a reduction of about 6% from the time of the Newcrest transaction and so, if dividend per share is not lifted, Newmont would be in practice reducing dividends by 6% in US$ terms.

Barrenjoey is forecasting 2026 production of 5.27 million ounces of gold at an all-in sustaining cost of US$1823 per ounce.

Barrenjoey has a 12-month price target of $215 on Newmont shares, which would be a new 12-month high for the stock, compared with its current price of $163.99.

The post How high could shares in Newmont Corporation go? appeared first on The Motley Fool Australia.

More reading

• UBS raises gold price target to US$6,200 per ounce for this quarter
• 5 things to watch on the ASX 200 on Monday
• Gold price recovers as reasons for buying ‘remain in place, but are also compounding’
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday

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.

If I had $10,000 to put to work in ASX 200 shares this February, I wouldn’t overthink it. I’d focus on a small group of high-quality businesses with strong earnings, clear long-term drivers, and the ability to ride out whatever the market throws at them this year.

This isn’t about finding the next hot stock. It’s about stacking the odds in favour of sensible, long-term returns.

Here’s where my money would go.

CSL Ltd (ASX: CSL)

After a difficult period marked by slower plasma margin recovery, softer albumin demand in China, and weakness in influenza vaccines, expectations around CSL are far more realistic than they were a few years ago. What hasn’t changed is the quality of the business.

CSL remains a global leader in plasma therapies, operating in an oligopolistic market with very high barriers to entry. Demand for immunoglobulins continues to grow structurally, and efficiency initiatives should support margins over time. For a long-term investor, I think the risk-reward looks far more balanced than it did near the top of the cycle.

ResMed Inc (ASX: RMD)

ResMed is another ASX 200 name I’d be very comfortable buying with the $10,000. The medical device company continues to deliver strong revenue growth, improving margins, and expanding cash flow, driven by rising awareness and diagnosis of sleep apnoea globally. Its software and digital health ecosystem also adds a layer of recurring revenue that many other companies lack.

ResMed doesn’t need a perfect economic backdrop to grow. Its products address chronic conditions, which gives earnings a degree of defensiveness alongside genuine long-term growth.

Wesfarmers Ltd (ASX: WES)

I see Wesfarmers as a capital allocation story. Bunnings and Kmart generate strong cash flows, which management can reinvest into new growth areas or return to shareholders. Over time, that discipline tends to compound quietly.

It’s not a stock that will double overnight. But as part of a $10,000 portfolio, this ASX 200 share offers stability, optionality, and a history of sensible decision-making.

Goodman Group (ASX: GMG)

Goodman Group gives exposure to a different growth theme altogether. It sits at the heart of logistics, urban infill, and data centre infrastructure. Demand for high-quality industrial space remains strong, and its development pipeline continues to grow alongside global data and e-commerce needs.

While interest rates and valuations can create short-term noise, the long-term demand for the assets that this ASX 200 share builds and owns looks very robust to me.

HUB24 Ltd (ASX: HUB)

HUB24 continues to take market share in the Australian wealth platform space, supported by strong adviser adoption and rising funds under administration. Its platform model provides operating leverage, which means earnings can grow faster than revenue as scale increases.

It’s not the cheapest share on the ASX 200, but high-quality platform businesses rarely are. What matters is execution, and HUB24 has been delivering consistently. This is evident in its recent quarterly update.

Foolish takeaway

If I were investing $10,000 in ASX 200 shares this February, I’d spread it across a mix of global leaders, structural growers, and dependable compounders.

Each of my picks in this article brings something different to the table. But together, they create a portfolio that I think could hold up well in the short term and compound nicely over the long run.

The post Where I would invest $10,000 in ASX 200 shares in February appeared first on The Motley Fool Australia.

More reading

• Argo Investments reports record profit and dividend
• Is this the right time to invest in ASX defensive shares?
• Experts name NAB and these ASX 200 shares as sells
• Earnings preview: How do experts rate these blue-chip ASX stocks reporting this week?
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Grace Alvino has positions in CSL, Hub24, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, Hub24, ResMed, and Wesfarmers. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL, Goodman Group, Hub24, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

ANZ Group Holdings Ltd (ASX: ANZ)

According to a note out of Citi, its analysts have retained their buy rating and $40.00 price target on this banking giant’s shares. With the major banks expected to release updates this month, Citi is feeling relatively confident about ANZ. The broker expects constructive outlook commentary and steady performances to support recent share price strength. Citi has named ANZ as one of its top two picks among the big four banks. The ANZ share price is trading at $37.66 on Monday afternoon.

PLS Group Ltd (ASX: PLS)

A note out of Macquarie reveals that its analysts have upgraded this lithium miner’s shares to an outperform rating with an improved price target of $5.00. This follows a significant upgrade to its lithium price forecasts for 2026. Macquarie is now materially more positive on spodumene and is expecting a price of US$1,800 per tonne this year. This is notably higher than PLS’ unit operating costs per tonne. As a result, it has boosted its earnings per share estimates and valuation accordingly and sees plenty of value on offer here. The PLS share price is fetching $4.13 at the time of writing.

REA Group Ltd (ASX: REA)

Analysts at Morgans have upgraded this property listings company’s shares to a buy rating with a $230.00 price target. According to the note, the realestate.com.au operator’s half-year results were only slightly behind expectations. As a result, it thinks the significant share price weakness was likely driven by a variety of factors, including cost outcomes and a lower volume guidance for the full year. Nevertheless, Morgans feels that the result highlighted the resilience of the franchise in a tougher volume environment. It highlights that REA Group’s strong yield growth (+14%) offset a 6% decline in listings. So, with its shares falling heavily from recent highs and comfortably below the broker’s valuation, Morgans sees now as a good time to buy. The REA Group share price is trading at $168.13 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Are REA Group shares a buy, sell or hold after their recent sell off?
• ASX 200 financials flew but tech and mining shares faltered last week
• Passive income: How much do you need to invest to make $500 per month?
• What the stronger Australian dollar means for your shares
• Why EOS, Lotus Resources, REA, and Web Travel shares are dropping today

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in REA Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

4DMedical Ltd (ASX: 4DX) shares are leaping higher today.

Shares in the respiratory imaging technology company closed on Friday trading for $3.10. In early afternoon trade on Monday, shares are changing hands for $3.34 apiece, up 7.7%.

For some context, the All Ordinaries Index (ASX: XAO) is up 2.0% at this same time.

Today’s outperformance is par for the course for the medical technology stock in recent months.

Indeed, 4DMedical shares are now up an eye-popping 542.3% since this time last year.

That’s enough to turn a $10,000 investment into $64,231. In one year.

Of course, those juicy gains have already been delivered.

Which brings us back to our headline question.

Should you buy 4DMedical shares today?

Ord Minnett’s Tony Paterno recently ran his slide rule over the ASX medical tech stock (courtesy of The Bull).

“4DX is a respiratory imaging technology company,” Paterno said.

He noted:

4DX enjoyed a positive start to calendar year 2026 after the company announced UC San Diego Health had adopted its CT:VQ product. Also, the company completed a $150 million institutional placement to primarily accelerate the commercialisation of CT:VQ.

CT:VQ, if you’re unfamiliar, is the company’s CAT scan-based ventilation-perfusion software.

But with 4DMedical shares having rocketed higher over the past six months, Paterno issued a sell recommendation on the stock.

According to Paterno:

The share price has risen from 32 cents on June 2, 2025 to trade at $3.16 on February 5, 2026. In our view, there’s a growing disconnect between 4DX’s valuation and the uncertainty around near-term CT:VQ revenue generation.

While we remain positive on 4DX’s technology, we pull back to a sell recommendation on valuation grounds.

What’s been happening with the ASX healthcare share?

The company released its December quarterly results on 30 January, highlighting that the three-month period saw CT:VQ move beyond regulatory approval and into full commercial execution.

4DMedical shares closed down 7.6% on the day, despite the company noting that CT:VQ is being used at a growing number of US health centres. Those include Stanford, the Cleveland Clinic, UC San Diego Health, the University of Miami, and the University of Chicago Medicine.

The company also reported that UChicago Medicine was also going to deploy CT:VQ.

4DMedical CEO and founder Andreas Fouras said:

University of Chicago Medicine is one of the nation’s most respected AMCs and a pioneer in medical innovation. Their expansion of our partnership to include CT:VQ represents powerful validation of both the clinical value our technology delivers and the strength of our commercialisation approach.

4DMedical reported a pro forma cash balance of $206 million as at 31 December.

The post Up 542% in a year, is it too late to buy 4DMedical shares today? appeared first on The Motley Fool Australia.

More reading

• Two booming ASX healthcare stocks investors should be buying the dip on
• These were the 10 most traded Australian shares last week
• Why this incredible ASX tech stock could be ‘set to conquer’
• Why 4DMedical, DroneShield, New Hope, and Zip shares are pushing higher today
• 4DMedical shares jump again today. Here’s what investors liked

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 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.

Investors in ASX software shares have had a rough time recently, with several well-known names sliding sharply over the past week. 

While all trading higher on Monday, shares in WiseTech Global (ASX: WTC), Xero Ltd (ASX: XRO), and Technology One Ltd (ASX: TNE) have all come under pressure recently, prompting many investors to ask the same question: what exactly is going on?

The short answer is that weakness in local software share prices has mirrored a broader global pullback in software stocks, driven less by company-specific fundamentals and more by a sudden shift in sentiment towards the sector.

A global software sell-off

Last week saw a sharp decline across global software names, particularly in the US, where many high-growth SaaS stocks fell heavily over a matter of days. 

The sell-off was sparked by renewed concerns about AI-driven disruption, following the release of new AI tools that highlighted how quickly generative AI can be embedded into existing workflows.

That development reignited a key fear for investors: that AI could compress software margins faster than expected, weaken customer lock-in, or reduce the need for certain standalone software products altogether. 

While these concerns are far from new, the pace of recent AI progress acted as a catalyst for a broad re-rating of the sector.

Importantly, this was not an earnings-led sell-off. There were no widespread profit warnings or sudden deteriorations in revenue growth. 

Instead, it was a classic risk-off move, one that disproportionately impacts stocks trading on higher multiples, where expectations are doing much of the heavy lifting.

ASX software shares were caught in the downdraft.

WiseTech Global: sentiment meets governance risk

WiseTech Global has been among the weakest performers. 

While the company continues to report strong long-term demand for its logistics platform, its share price fell sharply amid the broader tech sell-off.

Unlike some peers, WiseTech enters this period with company-specific overhangs.

Ongoing investor sensitivity around governance, board dynamics, and leadership structure has left the stock more vulnerable when sentiment turns. 

In a market environment where investors are already nervous about valuation and disruption risk, any additional uncertainty tends to be punished quickly.

As a result, WiseTech’s decline appears less about a sudden change in its operational outlook and more about the market demanding a higher risk premium.

Xero: valuation pressure despite operational progress

Xero’s shares also came under significant pressure, extending a pullback that has been building over recent weeks. 

The accounting software giant has continued to grow revenues and subscribers, and management has recently outlined progress in areas such as payments and AI-enabled features.

However, Xero remains a high-multiple stock with meaningful exposure to small-business conditions and execution risk in overseas markets, particularly the US. 

In a risk-off environment, that combination can be enough to drive selling, even when underlying performance remains solid.

In short, Xero’s recent share price weakness appears to reflect valuation compression rather than a clear deterioration in its long-term growth story.

Technology One: even quality isn’t immune

Technology One is often viewed as one of the more defensive ASX software names, given its focus on sticky government and education customers. 

Despite that, its shares also fell sharply during the broader software rout.

Part of the pressure reflects the stock’s premium valuation, which leaves little room for disappointment. 

Past sensitivity around margins and guidance has also meant investors are quick to reduce exposure when sentiment turns against the sector.

Technology One’s experience highlights an important point for investors: during sector-wide sell-offs, even high-quality businesses can see meaningful short-term share price declines.

What investors should take from this

For now, the recent weakness in WiseTech Global, Xero, and Technology One appears to be driven more by global sentiment and a valuation re-rating than by any sudden collapse in fundamentals.

That does not mean risks have disappeared. 

AI disruption, competitive pressure, execution risk, and governance all remain relevant, and the market is clearly less willing to overlook them at current prices.

For long-term investors, the key will be to separate noise from substance.

In the meantime, volatility in ASX software shares looks set to remain the norm rather than a mere blip.

The post What is happening to these ASX software shares? appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 tech shares like WiseTech and NextDC going gangbusters on Monday
• Why now could be the time to buy WiseTech shares
• These beaten down ASX growth shares could rise 50% to 75%
• Why I’m planning to act this week and buy ASX shares
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Mark Verhoeven has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Top broker UBS has increased its forecast for the gold price from US$5,000 per ounce to US$6,200 per ounce for 1Q FY26.

Today, the gold price is US$5,010 per ounce, up 0.8%. Therefore, the UBS forecast implies a near 25% potential upside from here.

In a new note, strategists Wayne Gordon from UBS Singapore and Giovanni Staunovo from UBS Switzerland said they expected the gold price to reach US$6,200 per ounce in the March quarter, and remain at about that level in the June and September quarters.

They forecast a pullback in the December quarter, after the US midterm elections in November, to about US$5,900 per ounce.

UBS explains its upgraded gold price forecast

Gordon and Staunovo explained why the forecast had changed:

This adjustment reflects our view that demand will be higher than previously expected, driven by higher investment activity rather than higher central bank purchases.

In terms of demand for physical gold, the strategists referenced data from the World Gold Council showing that total demand in 2025, including over-the-counter (OTC) transactions, exceeded 5,000 metric tonnes for the first time, mainly due to robust investment activity.

They said:

ETF holdings rose by 801 metric tons, bar and coin purchases reached a 12-year high of nearly 1,375 metric tons, and central banks acquired 863 metric tons.

The central bank purchases were slightly below expectations for the year and the record amounts of the previous years, but they’re still strong in a historical context.

Jewelry volumes declined, as anticipated, due to elevated prices, but sales were higher than we projected.

As we reported last year, jewellery sales are also going the other way, with some Aussies cashing in their rings, necklaces, and other items.

Record inflows into gold ETFs

The analysts’ expectations of higher investment activity in 2026 are borne out in the latest monthly inflow data for gold ETFs.

The World Gold Council reports a record net monthly inflow of US$19 billion (A$27.3 billion) into gold ETFs in January.

ASX gold ETFs attracted US$202 million in net inflows last month.

There is now a record US$669 billion in assets under management via gold ETFs, and US$8.6 billion of that is in ASX gold ETFs.

Gordon and Staunovo said:

We now expect continued strong central bank buying, higher ETF inflows, and more bar and coin purchases, driven by lower US real rates, ongoing global economic concerns, and uncertainty surrounding US domestic policy, especially related to the midterm elections and increased fiscal stress.

Could the gold price break US$7,000?

The strategists said the gold price could go as high as US$7,200 per ounce under the right circumstances.

However, it could also go the other way.

… we now project an upside scenario target of USD 7,200/oz and a downside scenario of USD 4,600/oz (this is close to a one standard deviation move).

A hawkish pivot by the Federal Reserve could heighten risks to the downside, while a steep escalation in geopolitical tensions could bring us closer to the upside scenario.

Gold continues to be rated as Attractive, and we maintain a long position in our global asset allocation.

We also recommend using options strategies for investors seeking to manage downside price risks.

ASX gold shares today

ASX gold shares are higher on Monday, with the S&P/ASX All Ords Gold Index (ASX: XGD) up 4.6% at the time of writing.

The Northern Star Resources Ltd (ASX: NST) share price is up 2.78% to $27.52.

The Evolution Mining Ltd (ASX: EVN) share price is 3.66% higher at $14.87.

Newmont Corporation CDI (ASX: NEM) shares are up 6.3% to $164.56.

The Genesis Minerals Ltd (ASX: GMD) share price is up 3.2% to $6.86.

Perseus Mining Ltd (ASX: PRU) shares are 5.1% higher at $5.61.

The post UBS raises gold price target to US$6,200 per ounce for this quarter appeared first on The Motley Fool Australia.

More reading

• How high could shares in Newmont Corporation go?
• Four mining stocks to watch ahead of reporting season
• Experts name NAB and these ASX 200 shares as sells
• 5 things to watch on the ASX 200 on Monday
• Gold price recovers as reasons for buying ‘remain in place, but are also compounding’

Motley Fool contributor Bronwyn Allen 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.

News Corporation (ASX: NWS) shares hit a new 12-month low last week after the company reported its first-half results, despite its numbers beating expectations for revenue and earnings.

So why did the stock go down, you might ask?

That is likely explained by the fact that the company owns a 61% stake in REA Group Ltd (ASX: REA), whose shares plummeted on Friday, despite what were once again reasonable results.

So given that News Corp shares are trading near their 12-month lows – they’ve recovered very slightly today – it’s worth having a look at whether they now represent good value.

Brokers like what they see

We’ve had a look at new broker reports from both UBS and Macquarie Group, and both say the shares are trading at a discount at the moment.

Starting with Macquarie, the team there have a price target of $44.40 on Macquarie shares, and factoring in the company’s modest dividend yield, they’re expecting a total shareholder return of 16.4% over 12 months.

The Macquarie team said the News Corp result last week beat expectations across revenue, EBITDA, and net profit, while profitability had continued to improve.

In the company’s US real estate business, they noted that Move, which operates Realtor.com, was “generating modestly break-even EBITDA, and with an improving backdrop, we are becoming more constructive on the earnings recovery”.

They added that the Dow Jones division posted its highest quarterly revenue growth in nearly three years, which also came in above expectations.

However, they noted:

News Corp’s valuation is reliant on REA (61% stake) and its share price has dropped 34% in the past six-months, broadly tracking the de-rating in global peers given AI uncertainties.

The Macquarie team also said the company’s news media division had headwinds with ad trends, “likely to continue to be difficult”.

Over at UBS, they were more bullish on News Corp shares, with a price target of $65.50 and a buy recommendation.

While they said AI displacement concerns “remain a key overhang” for the media sector, “we remain comforted by News’ extension of its Bloomberg partnership to incorporate AI licenses and achieving a range of enterprise deals within its Dow Jones segment”.

They added:

We believe News looks best placed across our media coverage to benefit from gradual content monetisation and AI developments with exposure to proprietary data from Dow Jones, defensive moat from REA and existing large language model (LLM) partnerships as proof cases. We see scope for a re-rate in the stock as more partnerships potentially come to the table in the short to medium term, as LLMs and AI platforms continue to demand reliable data and content for model training.

News Corp shares were 1.2% higher at $38.77 on Monday.

The post This News Corp share price target might surprise you appeared first on The Motley Fool Australia.

More reading

• News Corp shares plunge to a fresh 12-month low on earnings results
• News Corp reports robust Q2 FY26 earnings growth
• Here are the top 10 ASX 200 shares today
• Brokers rate these 3 ASX shares as buys in January
• Which ASX media share to buy: News Corp, Nine or REA Group?

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