The Austal Ltd (ASX: ASB) share price is in focus today after announcing it has received a non-binding offer from a Wildcat Resources Ltd (ASX: WC8) led syndicate to buy Austal USA for between US$1.25 and US$1.35 billion. The deal would see Austal’s US operations continue independently under the Austal brand.

What did Austal report?

• Received US$1.25–1.35 billion non-binding offer for Austal USA from Wildcat syndicate
• Offer is subject to four weeks of due diligence
• Proposed transaction on a cash free, debt free basis
• Wildcat intends to retain the Austal brand and US operations as a standalone platform

What else do investors need to know?

Austal’s board and advisers are now considering the proposed transaction. There is no guarantee the deal will proceed to a binding agreement, as it’s subject to further due diligence and other standard conditions.

Austal remains Australia’s largest defence exporter and a key partner to the US and Australian governments. In late 2024, it was named Strategic Shipbuilder by the Commonwealth for major Defence projects in Western Australia. The company’s global reach includes shipyards in Australia, the USA, the Philippines, and Vietnam.

What’s next for Austal?

Investors will be watching for updates after Wildcat’s due diligence period. If the deal progresses, Austal could free up significant capital to reinvest in its defence shipbuilding business or return to shareholders, but there’s no certainty yet.

Austal’s core focus remains defence and commercial shipbuilding. The company’s commitment to local and international defence contracts, including strategic work for both the US and Australia, underpins its outlook regardless of the sale outcome.

Austal share price snapshot

Over the past 12 months, Austal shares have declined 47%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 1% over the same period.

View Original Announcement

The post Austal receives US$1.35bn offer for Austal USA appeared first on The Motley Fool Australia.

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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.

Xero Ltd (ASX: XRO) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider closed yesterday trading for $74.25. In morning trade on Wednesday, shares are changing hands for $73.17 apiece, down 1.5%.

For some context, the ASX 200 is up 0.1% at this same time.

Unfortunately for long-term shareholders, today’s underperformance is all too familiar. With today’s intraday losses, Xero shares are down 54.2% over the past 12 months, compared to the 1.4% one-year gain posted by the benchmark index.

Though a more accurate comparison here would be against the S&P/ASX 200 Information Technology Index (ASX: XIJ), which has crashed 40.9% since this time last year.

As you’re likely aware, ASX tech shares were caught up in a broader global sell-down of the tech sector. That came amid the so-called ‘SaaSpocalypse’, which refers to concerns that AI could potentially replace many of the services that Software as a Service (SaaS) companies like Xero provide.

ASX tech stocks have also come under pressure amid rising interest rates. Growth-oriented shares like Xero tend to be priced with higher future earnings in mind. And as interest rates go up, so too does the present cost of investing in those future earnings.

Which brings us back to our headline question.

With the company’s share price having lost more than half its value over the last year, is the ASX 200 tech stock now a good buy?

Xero shares: Buy, hold, or sell?

Gray Perry Wealth Advisers’ Blake Halligan recently analysed the outlook for the embattled ASX 200 tech stock (courtesy of The Bull).

“Xero remains a leading cloud accounting platform, with a dominant position in Australia and New Zealand,” he said.

Halligan added, “Fiscal year 2026 operating revenue increased 31 per cent, supported by 506,000 net customer additions and the Melio Payments acquisition.”

But amid concerns over the integration costs of that acquisition, Halligan issued a hold recommendation on Xero shares.

He concluded:

Melio should aid in revenue growth, but costs associated with its integration contributed to a 27 per cent fall in net profit after tax and a gross margin decline from 89 per cent to 83.9 per cent.

The profitable ANZ and UK businesses offer growth potential and could assist in a continuing share price recovery.

Commenting on Xero’s completed Melio acquisition following the company’s FY 2026 results release, CEO Sukhinder Singh Cassidy said:

We have powerful momentum across our markets, and delivered strong EBITDA growth while absorbing Melio. This has moved us beyond single-job workflows in the US by integrating Melio to unite accounting and payments on one platform.

The post Down 54% in a year, are Xero shares now a buy, hold, or sell? appeared first on The Motley Fool Australia.

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

The Australian healthcare sector has rebounded well over the August reporting season, with Bell Potter analysts saying it was the key sector winner with about a 20% improvement.

Major improvements in stocks, including CSL Ltd (ASX: CSL), Ramsay Healthcare Ltd (ASX: RHC), and Cochlear Ltd (ASX: COH) bolstered the sector, following weakness earlier in the year.

Where does the broker see good value now?

Bell Potter has selected seven ASX healthcare shares as its key picks going forward, some of which it says could more than double in value.

One of these is Clarity Pharmaceuticals Ltd (ASX: CU6), which Bell Potter said could have some big news shortly.

The broker said:

For companies with significant clinical readouts over the near-term, it’s hard to go past CU6 which is expected to deliver topline data from its two PSMA imaging Phase 3 trials in early CY27. The data from these studies should support a New Drug Application for 64Cu SAR bis PSMA in CY27. Once approved, we expect 64Cu SAR bisPSMA will enter the ~US$3b PSMA imaging market with a highly differentiated label claim to the incumbents.

Bell Potter has a speculative buy rating on the shares with a $6.40 price target.

The broker is also predicting solid share price gains for Mesoblast Ltd (ASX: MSB), which has been preforming well since gaining FDA approval for its drug Ryoncil in late 2024.

Bell Potter said Mesoblast was also progressing a lower back pain drug, with a large potential market.

Its price target for Mesoblast is $4.45.

Other companies which are scaling up in the US are Lumos Diagnostic Holdings Ltd (ASX: LDX) and Aroa Biosurgery Ltd (ASX: ARX).

Bell Potter said regarding these two:

LDX is rapidly scaling its commercial channels ahead of its first flu season in North America, while ARX is driving strong direct growth through Myriad and positioning to capitalise on disruption across the outpatient chronic wound market with Symphony. Both remain well positioned in sizeable US growth opportunities.

Bell Potter has a price target of 25 cents on Lumos and $1.09 on Aroa.

The broker also likes Vitrafy Life Sciences Ltd (ASX: VFY), which it said “has recently emerged with the potential to develop dominant positions across various large cryopreservation markets, but particularly in the blood products segment”.

Bell Potter has a price target of $5.15 on Vitrafy.

The broker said Cogstate Ltd (ASX: CGS) delivered “stellar returns” in FY26, “following significant contract wins across an increasingly diverse range of clinical indications and channel partners”.

It has a price target of $3.70 on Cogstate.

And lastly, Bell Potter is also bullish on Pro Medicus Ltd (ASX: PME), which it said “continues to win ever more business in the US”.

Bell Potter has a price target of $226 on Pro Medicus.

The post 7 ASX healthcare stock picks from Bell Potter appeared first on The Motley Fool Australia.

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