DroneShield Ltd (ASX: DRO) shares are going through a difficult period.

The counter-drone technology company has fallen to a fresh 52-week low of around $1.59, leaving the share price a long way below its previous high of $6.70.

For investors prepared to accept a high level of risk, I think the lower price is becoming increasingly interesting.

The business is still growing

The share price performance looks ugly, but I think it is important to separate that from what is happening inside the business.

DroneShield continues to convert growing global demand for counter-drone technology into revenue.

Its latest trading update showed FY26 committed revenue had reached $251 million, putting it inside management’s existing revenue outlook of $250 million to $270 million. The company also reported $46 million of committed revenue for FY27 and beyond.

For me, that is encouraging because it shows the opportunity is moving beyond conversations and potential contracts. Customers are placing orders.

DroneShield also secured the first order for its recently released RfRecon product, which will be deployed to an existing Western European military customer before the end of 2026. The initial order is not financially material, but it does provide early validation for another product in the company’s expanding range.

Why the opportunity still interests me

The long-term driver behind DroneShield has not disappeared just because the shares have fallen.

Drones are becoming a larger part of modern warfare, border security, and threats to critical infrastructure.

That creates demand for systems capable of detecting, tracking, and defeating them.

DroneShield already sells into military, government, law enforcement, and critical infrastructure markets around the world.

I also like that the company is investing to expand internationally rather than relying entirely on Australia.

If counter-drone spending continues increasing and DroneShield can establish itself as a meaningful supplier across several major defence markets, today’s business could look very different in five or 10 years.

But this is still a high-risk investment

This is the part I would not understate. DroneShield remains one of the highest-risk ASX shares I would consider buying.

Revenue can be lumpy because defence orders do not arrive evenly. The company is still scaling quickly, and investors need to see that larger revenue translates into sustainable profits over time.

Competition could also intensify as governments commit more money to counter-drone systems and larger defence companies pursue the same opportunity.

Then there is the share price itself. A fall from $6.70 to $1.59 shows how violently market expectations can change. I would not assume that reaching a 52-week low means the shares cannot fall further.

For that reason, I would only consider DroneShield as a relatively small position within a diversified portfolio.

Foolish takeaway

At $1.59, I think DroneShield shares are a buy for investors with a high tolerance for risk.

The valuation is much less demanding than it was near the highs, while committed revenue continues to move in the right direction.

There is still plenty for the company to prove, particularly around profitability and execution.

But for patient investors willing to accept substantial volatility, I think the long-term counter-drone opportunity makes the current share price worth considering.

The post Are DroneShield shares a buy at their 52-week low? 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. 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.

Telstra Group Ltd (ASX: TLS) shares have had a volatile run through the first nine months of 2026. 

The ASX telco’s shares flew to a 10-year high of $5.55 a piece in mid-May, but then they crashed around 18% to an annual low in late-August. Since then, the shares have rebounded again.

At the time of writing, Telstra shares are trading at $4.86 a piece. That’s around a 5% increase from last month’s low and around 1% lower for the year to date.

Going forward, it looks like there could be a lot more upside ahead for the shares. TradingView data shows that the majority of analysts have a buy/strong buy rating on the stock, and some tip an upside of up to 13% to a maximum $5.50 target price.

It’s not all about share price gains and losses, though. Telstra has plenty more to offer its shareholders.

Telstra shares are a great buy for passive income

Telstra, as a business, is classically defensive. As a provider of internet access and mobile connectivity, the telco benefits from a stable income.

Phone and internet connectivity are considered essential services, which means their offerings are in high demand regardless of where we are in the economic cycle, inflation rates, or the cost of living.

And that means the company is able to perform steadily over the long term, rather than being subject to market fluctuations, cyclical growth, or shifting investor sentiment.

This is great news for investors who want to hedge against potential volatility elsewhere in the index.

Just last month, the company announced its FY26 results, including a 4% year-on-year increase in EBITDA to $8.3 billion and a 4.9% increase in underlying NPAT to $2.5 billion.

Going forward, Telstra expects to continue growing its underlying EBITDA and has posted guidance of between $8.5 billion and $8.8 billion in FY27.

It’s this consistent performance, combined with Telstra’s defensive nature, that enables the company to pay its shareholders a reliable, consistent passive income stream.

Not only that, its dividend payout ratio is close to 100% of company earnings, which unlocks a great dividend yield.

What passive income does the telco pay its shareholders?

Telstra traditionally makes two fully-franked dividend payments to shareholders every year, payable in March and September. 

The telco paid its shareholders a 10.5-cent dividend in March, 90.48% franked, and a final 9.5-cent, fully-franked dividend this month. That totals 21 cents for FY26.

Based on the latest forecasts, the telco is also expected to pay a total dividend of 21 cents per share in FY27.

Based on the current share price, that translates to a dividend yield of around 4.4% for FY26 and FY27.

The post Are Telstra shares a good buy for passive income? appeared first on The Motley Fool Australia.

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

S&P/ASX 200 Index (ASX: XJO) shares are 0.5% lower at 8,706.8 points on Tuesday.

With earnings season over, brokers have updated their ratings and 12-month price targets on scores of ASX 200 shares.

Here are three with strong upside potential.

Life360 Inc (ASX: 360)

The Life360 share price is $20.88, up 6.9% today.

Over the past month, this ASX 200 tech share has fallen 15%.

Bell Potter renewed its buy rating on Life360 shares but shaved its price target down from $35 to $34.

This suggests a potential 62% upside ahead.

Analyst Chris Savage said:

The 2Q2026 key metrics of MAU growth, paying circle growth and adjusted EBITDA were all ahead of our forecasts…

The 2026 guidance for MAU growth, consolidated revenue and adjusted EBITDA were all unchanged…

We retain our BUY recommendation and note we expect the buyback to be more active this quarter after only modestly commencing last quarter.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is $167, up 1% today and down 43% over 12 months. 

Pro Medicus shares began rebounding in February, ahead of the broader sector, but it’s been a topsy-turvy recovery.

The ASX 200 healthcare share almost doubled in value between late February and early July, then fell on profit-taking.

The Pro Medicus share price is up 5% since the broader sector pivoted on 3 June.

Morgans has an accumulate rating with a 12-month target of $230 on Pro Medicus shares.

This implies a potential 38% upside ahead.

The broker said: 

FY26 confirms PME is executing at an even higher level than the market gave it credit for.

EBIT margin of 74.9% and constant currency EBIT growth of 30.6% both beat expectations comfortably, with the FX-driven softness in headline revenue a currency story, not a demand or execution one.

Momentum remains broad-based, implementations are ahead of schedule, renewals are a clean sweep, and the pipeline is opening up in new segments rather than just deepening in existing ones.

Looking ahead, FY27 is shaping as a genuine standout year.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is $3.66, down 2.5% today.

Over the past month, this ASX 200 gold share has fallen 0.4%.

Morgans has a buy rating on Ramelius Resources shares with a $4.74 target.

This implies a potential 30% upside ahead.

The broker said:

RMS is expected to release FY27 guidance and an updated outlook to FY30 in Sep-26, following execution of the EPC contract for the Mt Magnet mill expansion, providing greater clarity on project costs and timing. 

The post 3 ASX 200 shares tipped by experts to jump 30% to 62% appeared first on The Motley Fool Australia.

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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 Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360. 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.