Shares in Bubs Australia Ltd (ASX: BUB) are down almost 50% over the past 12 months, but if the brokers are to be believed, the shares are about to make a comeback.

Both Bell Potter and Shaw and Partners have released new research reports on the baby formula company, and each is predicting solid share price gains.

I’ll get to the specifics of their share price targets shortly. First, let’s look at the company’s recent full-year report.

Profits on the rise

Bubs said in its report released this week that full-year revenue had increased 9.2% to $111.9 million, while underlying EBITDA came in at $5.3 million, up from $2.1 million.

Bubs Chief Executive Officer Joe Coote said of the result:

FY26 marked important progress against our growth strategy, delivering revenue growth of 9% and strengthening the foundations for future growth. This was driven by continued momentum in the United States, where revenue increased 24% as we expanded distribution to more than 10,000 stores across targeted retail formats. During the year we rebuilt inventory levels, expanded distribution channels, launched adjacent products, increased brand investment and strengthened our leadership team to support future growth. This progress was achieved despite a challenging operating environment, with changing tariff policies, geopolitical disruption and evolving regulatory requirements increasing supply chain costs and affecting product availability, particularly in the second half.

The company said it expected improved momentum in the first half of FY27, with strong growth expected in the US, growth expected in China supported by expanded distribution and marketing, and continued marketing investment in Australia to accelerate recovery.

The company added:

Gross margin is expected to rebound, with working capital positioned to support the anticipated growth.

Bubs Australia shares looking cheap

Shaw and Partners said the results were largely in line with expectations, and the current year would be driven by growth in the US.

They said:

Our key investment thesis remains centred on the US business, where revenue grew 24% to $65.8 million and distribution expanded to over 10,000 stores, while management expects growth and margin recovery in FY27 as regulatory and tariff headwinds ease and permanent FDA approval progresses. Following the result, we have reduced our DCF valuation from $0.16/s to $0.15/s, reflecting forecast revisions and model roll-forward, but maintained our buy rating given the forecast 74% total shareholder return potential and confidence in the company’s medium-term growth outlook.

Bell Potter has a price target of 13.5 cents on Bubs shares, compared to 8.6 cents currently.

Bubs is valued at $76.9 million.

The post How high do brokers think Bubs Australia shares will go? appeared first on The Motley Fool Australia.

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

DroneShield Ltd (ASX: DRO) shares have had a rough year.

The stock is down almost 50% since the start of 2026, even though the underlying business is still growing strongly.

For patient investors comfortable with plenty of volatility, I think that disconnect is becoming attractive.

Growth is still there

DroneShield’s latest half-year result was a little softer than I had hoped in some areas, particularly given the expectations that had built around the company.

But I do not think the bigger picture has changed.

First-half revenue reached $125.8 million, up 74% on the prior corresponding period. Recurring revenue also grew strongly, although it remains a relatively small part of the overall business.

That tells me demand for DroneShield’s counter-drone technology is still expanding quickly.

The company operates in a market that has become much more important in recent years. Drones are playing a growing role in modern warfare, while governments are also looking for better ways to protect military bases, airports, infrastructure, and other sensitive locations.

I think spending on counter-drone technology could remain elevated for a long time.

I am looking much further ahead

The main reason I would consider buying after the fall is that I think DroneShield could be a considerably larger company in 10 years.

It is still building out manufacturing capacity, expanding internationally, and investing in new hardware and software.

That is important because counter-drone technology will not stand still. Threats will keep changing, so customers will need systems that can be upgraded and improved rather than equipment that quickly becomes outdated.

DroneShield has spent years specialising in this field, and I think that focus gives it a chance to remain relevant as the market develops.

If it keeps winning larger contracts and builds deeper relationships with defence and security customers, today’s business could eventually look quite small.

The share price will probably remain volatile

I would not treat the 50% decline as proof that DroneShield shares are automatically cheap.

DroneShield remains a high-risk growth investment and trades on a very high P/E ratio.

Defence contracts can arrive unevenly, procurement processes can take longer than expected, and competition is increasing as more companies target the counter-drone market.

The company is also investing heavily for future growth, which means results may not progress neatly from one period to the next.

That is why I would keep any position relatively small and only invest money I was prepared to leave in the shares through potentially sharp moves in either direction.

Foolish takeaway

Yes, I think DroneShield shares are worth considering after falling around 50% in 2026.

The latest performance was not perfect, but the company is still delivering strong growth in a market with substantial long-term potential.

For investors willing to ride out the volatility, I think the current weakness could prove to be an opportunity if DroneShield becomes the much larger defence technology business I believe it can be over the next decade.

The post Are DroneShield shares a buy after dropping almost 50% in 2026? 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.

The Dicker Data Ltd (ASX: DDR) share price is in focus today after the company reported a strong H1 FY26, with gross revenue climbing 14.2% to $2,100.9 million and net profit after tax up 54.1% to $60.7 million.

What did Dicker Data report?

• Gross revenue reached $2,100.9 million, up 14.2% versus the prior corresponding period (pcp)
• Gross profit increased 23.0% to $205.6 million, with gross profit margin at 9.8%
• EBITDA rose 37.3% to $103.5 million
• Net operating profit before tax grew 50.1% to $86.4 million
• Net profit after tax jumped 54.1% to $60.7 million
• Recurring gross software sales up 20.7% to $600 million
• FY26 guidance: Gross revenue of $4.3–$4.4 billion and PBT of $162–$165 million

What else do investors need to know?

Australian operations drove much of the growth, with gross revenue up 18.3% to $1,831.5 million and gross profit rising 29.0%. This result helped offset softer trading and lower profit in New Zealand, where gross revenue was down 7.6% amid currency headwinds.

Software and Advanced Solutions were standout performers, growing 18% and 16.9% respectively, thanks to continued demand in cloud, cybersecurity, AI infrastructure and data centre investments. Dicker Data also expanded its vendor portfolio, signing new partners in areas like AI, cybersecurity, and data management to help meet evolving technology needs.

The company also achieved record first-half AI-related sales and bookings, with an invoiced value exceeding $50 million, supporting its position as a key enabler in the IT channel.

What did Dicker Data management say?

Executive Chair and Managing Director Fiona Brown said:

The Company delivered a strong first half result, with gross revenue surpassing $2.1 billion. This performance reflects the continued strength of our operating model, disciplined execution across the business, and the ability of our teams to capture opportunities emerging from major technology refresh cycles, AI infrastructure investment and sustained demand across software and cybersecurity.

What’s next for Dicker Data?

Looking ahead, Dicker Data expects robust demand to continue through the rest of FY26, underpinned by digital transformation, ongoing technology refreshes, and broader adoption of AI solutions. Management expects growth in data centre, software, and AI-related projects to support H2 FY26, though end-point solutions growth may moderate and higher component prices could impact margins in the second half.

The company’s FY26 guidance is for group gross revenue between $4.3 billion and $4.4 billion, and PBT of $162 million to $165 million. Dicker Data says its diversified vendor portfolio and strong industry fundamentals position it well for continued momentum.

Dicker Data share price snapshot

Over the past 12 months, Dicker Data shares have risen 37%, far outpacing the All Ordinaries Index (ASX: XAO).

View Original Announcement

The post Dicker Data delivers record H1 FY26 profit and lifts full-year guidance 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 positions in and has recommended Dicker Data. 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.