Oil prices have fallen sharply after surging earlier this week as the Middle East war distressed global energy markets.

Just days ago, crude briefly spiked close to US$120 per barrel, triggering fears of a major supply shock.

Now prices are cooling quickly. According to TradingEconomics, West Texas Intermediate (WTI) crude is currently trading around US$83.15 per barrel.

The sudden reversal is also weighing on oil-linked investments, including the Betashares Crude Oil Index Currency Hedged Complex ETF (ASX: OOO).

At the time of writing, the OOO share price is $7.49, down 4.95% for the day.

Let’s take a closer look at what is happening.

Oil prices retreat after Middle East fears ease

The earlier surge in oil prices was driven by rising tensions in the Middle East and fears that global oil supply could be disrupted.

Markets were particularly focused on the Strait of Hormuz, one of the most important shipping routes for global energy.

Around 20% of the world’s oil supply moves through the Strait each day, making it one of the most critical choke points in the global energy system.

Several major Middle East producers, including Saudi Arabia, the UAE, Kuwait, and Iraq, rely heavily on this route to export crude to global markets.

However, traders are now reassessing the immediate risk to supply.

Reports also indicate the International Energy Agency (IEA) is considering a coordinated release of emergency oil reserves. Member nations collectively hold about 1.2 billion barrels in strategic stockpiles, along with roughly 600 million barrels of industry inventories.

If released, these reserves could help offset potential supply disruptions and ease pressure on global energy markets.

Why the Betashares Crude Oil ETF is falling

The pullback in oil prices is also dragging down the Betashares Crude Oil ETF.

The fund gives investors exposure to oil by tracking the S&P GSCI Crude Oil Index, which reflects movements in global crude futures. It also hedges currency exposure between the US dollar and the Australian dollar.

Because of this, the ETF typically moves in line with oil prices.

Crude surged earlier this week during the sharp rally, helping lift the value of the futures contracts tracked by the index. Now that prices have pulled back, the ETF has also come under pressure.

Despite recent volatility, the fund has still delivered strong returns this year, up about 46%.

What could happen next?

Oil markets remain highly sensitive to developments in the Middle East and the potential impact on global supply.

The market is closely monitoring shipping activity through the Strait of Hormuz, as well as any coordinated response from major energy agencies such as the IEA.

Further escalation in the region could quickly push crude prices higher again.

On the other hand, a coordinated release of strategic reserves or easing tensions in the region could lower oil prices.

The post Oil slumps to US$83 per barrel. Here’s what is driving the sharp pullback appeared first on The Motley Fool Australia.

More reading

• Oil tumbles after nearing US$120. Here’s why prices are pulling back
• Oil rockets past US$100 as Iran war escalates. This ASX oil ETF is surging

Motley Fool contributor Aaron Teboneras 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.

The Reserve Bank of Australia (RBA) could be preparing to raise interest rates again as inflation pressures remain stubbornly high.

Several economists and market indicators now suggest a rate hike is becoming increasingly likely. The central bank’s next policy meeting will take place on 16th to 17th March.

If the RBA does move, it would lift the official cash rate from its current level of 3.85%. This would mark another step in the central bank’s effort to bring inflation back within its target range.

Here’s what investors need to know.

Markets are increasingly pricing in a rate hike

Financial markets have rapidly shifted their expectations in recent days.

According to ABC News, the probability of a rate hike at the next RBA meeting has climbed to around 67.5%. That figure has surged following recent comments from RBA deputy governor Andrew Hauser.

Hauser said the Australian economy currently has “limited spare capacity”, suggesting demand in the economy remains strong.

He also noted that inflation pressures could end up higher than the RBA previously expected.

Those comments have prompted investors to rethink the likelihood of near-term monetary tightening.

Some major banks and economic research groups have also changed their forecasts.

Economists at Capital Economics now expect the RBA to deliver a 25-basis point increase in March. Another potential rise in May could push the cash rate towards 4.35%.

UBS has also flagged the possibility of a rate hike arriving sooner than previously expected.

Inflation risks remain a key concern

One of the biggest reasons behind the renewed rate hike expectations is inflation.

Australia’s headline inflation rate recently sat around 3.8%, which remains above the RBA’s target band of 2% to 3%.

At the same time, the labour market remains tight. The unemployment rate is currently around 4.1%, indicating strong employment conditions across the economy.

Strong economic growth is also adding to inflation concerns. Recent figures showed the Australian economy expanded 2.6% over the past year, the fastest pace in roughly 3 years.

Some economists believe that overseas developments may also put further pressure on inflation.

The recent surge in oil prices linked to tensions in the Middle East has raised concerns that energy costs could push inflation higher in the months ahead.

If that happens, the RBA may feel the need to keep monetary policy tighter for longer.

What this could mean for investors

Higher interest rates can have mixed impacts on the share market, including the S&P/ASX 200 Index (ASX: XJO).

Banks and financial companies sometimes benefit from higher rates because they can earn more income on lending.

However, rate hikes can weigh on sectors that rely heavily on borrowing, including property companies and highly valued growth stocks.

For now, all eyes will be on the RBA’s upcoming policy meeting.

The post Why the RBA could lift interest rates again this month appeared first on The Motley Fool Australia.

More reading

• Oil slumps to US$83 per barrel. Here’s what is driving the sharp pullback
• Macquarie says this major fintech stock can rocket almost 100%
• Why Breville, Forrestania Resources, GQG Partners, and WiseTech shares are falling today
• 3 excellent ASX shares I’d happily hold through the next market cycle
• 3 reasons to buy the big dip on WiseTech shares today

Motley Fool contributor Aaron Teboneras 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.

The analyst team at Macquarie have run the ruler over Zip Co Ltd’s (ASX: ZIP) results and thinks there’s huge upside to be had from the fintech company.

Zip Co shares have been under pressure since the company reported its first half results in mid-February, but it’s fair to say Macquarie analysts think the negativity is overdone.

Underlying metrics looking good

So let’s have a look at what was reported.

Zip Co reported record cash EBTDA of $124.3 million, up 85.6% on the previous corresponding period, and record total transaction volume (TTV) of $8.4 billion, up 34.1%. Active customers also increased by 4.1% to 6.6 million.

Revenue came in at $658.1 million, while net profit from ordinary activities was up 128% at $52.4 million.

Zip managing director Cynthia Scott said regarding the result:

Zip continues to increase profitability at scale, driving cash earnings growth of 85.6% and significant operating margin expansion during the half. Momentum accelerated across both markets, underpinned by continued strategy execution, deeper customer engagement, strong holiday trading and expanded channel partnerships. We continue to execute strongly on our US growth opportunity, with TTV and revenue up 44.2% and 46.4% respectively (in USD), with active customers up 9.7% (407k) year on year. We also expanded our Pay-in-Z offering, giving customers greater flexibility for everyday purchases by making Pay-in-2 available to all customers in February 2026. In ANZ, we delivered a 138.0% year-on-year increase in cash earnings, supported by revenue and Australian receivables returning to growth with continued adoption of Zip Plus.

Ms Scott said bad debts were in line with targets and the company completed its $100 million share buyback during the half.

She added regarding the outlook:

We are well-positioned to continue executing against our FY26 strategic priorities and delivering profitable growth at scale. Following a strong first half, Zip has upgraded its FY26 guidance for operating margin and cash EBTDA as a % of TTV while reconfirming its other target ranges.

Zip Co shares look cheap

Macquarie analysts have had a look at the result and said in a research note to clients that the company was deeply undervalued.

The Macquarie team said they were forecasting improvement for Zip in both the third and fourth quarters of the year.

They added:

Despite the reset in earnings on the back of moderated operating leverage as Zip invests for growth, we expect medium-term growth supported by Zip’s attractive unit economics model.

Macquarie has a price target of $3.35 on Zip Co shares, compared with the current price of $1.69.

If achieved, that would constitute a 98.2% return. Zip Co was valued at $2.14 billion at the close of trade on Tuesday.

The post Macquarie says this major fintech stock can rocket almost 100% appeared first on The Motley Fool Australia.

More reading

• Here’s the earnings forecast out to 2030 for Zip shares
• Forget NAB shares, this ASX fintech stock could double in value
• How I’d invest $20,000 in the ASX share market right now
• 3 reasons to buy this oversold ASX growth stock today
• Here are the top 10 ASX 200 shares today

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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decent gain. At the time of writing, the benchmark index is up 0.4% to 8,727.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Breville Group Ltd (ASX: BRG)

The Breville share price is down 2.5% to $28.60. This appears to have been driven by the appliance manufacturer’s shares going ex-dividend this morning for its latest payout. Last month, Breville released its half-year results and declared a fully franked dividend of 19 cents per share. This will be paid to eligible shareholders later this month on 27 March 2026.

Forrestania Resources Ltd (ASX: FRS)

The Forrestania Resources share price is down 3% to 61 cents. This morning, this gold explorer announced a deal to acquire a number of mining tenements within Western Australia’s Eastern Goldfields gold district. The company has agreed to pay $5 million for the package of tenements. Forrestania Resources’ chair, David Geraghty, commented: “This acquisition is aligned with Forrestania’s disciplined strategy of consolidating prospective tenure, with significant tenure now in the FRS Eastern Goldfields Hub. Importantly, the transaction structure aligns consideration with preserving capital which can be assigned to advancing Forrestania’s near term production ambitions across our portfolio of Western Australian gold assets.”

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is down 6% to $1.79. This follows the release of the fund manager’s latest funds under management (FUM) update. GQG Partners reported a 4.3% increase in FUM to US$172.9 billion during the month of February. However, this was entirely driven by investment performance, which offset net outflows of US$3.2 billion. The company’s net outflows were recorded across all strategies, with emerging markets leading the way. It reported net outflows of US$1.3 billion for emerging markets, followed by US$0.9 billion of net outflows from international strategies.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down over 3.5% to $49.18. This appears to have been driven by profit-taking from some investors following a strong rebound in recent weeks. For example, even after today’s weakness, the WiseTech Global share price is up a sizeable 14% since 24 February. However, it remains down heavily since the start of the year.

The post Why Breville, Forrestania Resources, GQG Partners, and WiseTech shares are falling today appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX shares I’d happily hold through the next market cycle
• 3 reasons to buy the big dip on WiseTech shares today
• Why this ASX 200 financials stock is crashing 7.6% today
• GQG Partners lifts FUM to US$172.9bn in February 2026
• 4 ASX tech shares tipped to jump up to 140% higher

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

Share markets rarely move in a straight line.

Over time there are rallies, pullbacks, and the occasional sharp sell-off. Trying to predict exactly when those moments will occur is extremely difficult, which is why I prefer focusing on ASX shares I would be comfortable holding through an entire market cycle.

Companies with strong competitive positions, reliable earnings, and long-term growth opportunities tend to be the ones that can navigate those ups and downs best.

Here are three ASX shares that stand out to me in that regard.

ResMed Inc (ASX: RMD)

Since its founding in 1989, ResMed has built one of the most dominant positions in global sleep healthcare.

The company develops devices and digital platforms for treating sleep apnoea and other respiratory conditions. These treatments address a huge and growing health problem, with millions of people worldwide still undiagnosed.

What makes ResMed particularly interesting is the ecosystem it has built around its products. Its devices generate valuable patient data that feeds into its digital health platforms, creating a connected system used by patients, clinicians, and healthcare providers.

Demand for sleep apnoea treatment continues to grow as awareness increases and populations age. That creates a long runway for the company to keep expanding.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global is an Australian technology company with a strong global presence.

Its CargoWise platform is used by logistics providers to manage complex international supply chains. Once embedded into a customer’s operations, this type of software becomes extremely difficult to replace.

The global logistics industry remains highly fragmented, providing WiseTech with an opportunity to continue expanding its customer base and adding new functionality to its platform.

The company has also been investing heavily in new products and integrations that aim to deepen its role in global trade.

If those initiatives continue to gain traction, WiseTech could remain one of the ASX’s more compelling long-term growth stories.

Woolworths Group Ltd (ASX: WOW)

Not every long-term investment needs to be a high-growth technology company.

Woolworths is a good example of a business that benefits from steady demand and a strong competitive position. As Australia’s largest supermarket operator, it sells products that households need regardless of the economic environment.

Its scale and supply chain advantages make it difficult for competitors to replicate its operational efficiency.

While Woolworths may not deliver explosive growth, its stability, cash flow, and ability to generate reliable earnings have made it a core holding for many long-term investors.

Foolish takeaway

Markets will always experience periods of volatility, but high-quality businesses often prove resilient over time.

ResMed, WiseTech Global, and Woolworths operate in very different industries, yet each has built a strong position in its respective market. Companies with those kinds of advantages can often continue to grow and generate returns even as the broader market moves through different cycles.

The post 3 excellent ASX shares I’d happily hold through the next market cycle appeared first on The Motley Fool Australia.

More reading

• Why Breville, Forrestania Resources, GQG Partners, and WiseTech shares are falling today
• 3 reasons to buy the big dip on WiseTech shares today
• Four ASX healthcare stocks which are looking cheap
• 4 ASX tech shares tipped to jump up to 140% higher
• How to turn $20,000 into lifelong passive income with ASX 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 ResMed and WiseTech Global. The Motley Fool Australia has positions in and has recommended ResMed, WiseTech Global, and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

WiseTech Global Ltd (ASX: WTC) shares are taking a tumble today.

Shares in the S&P/ASX 200 Index (ASX: XJO) logistics software solutions company closed trading yesterday for $51.08. As we eye the Wednesday lunch hour, shares are changing hands for $49.05 apiece, down 4.0%.

For some context, the ASX 200 is up 0.8% at this same time.

With today’s intraday losses factored in, WiseTech shares are now down a sharp 43% since this time last year.

But looking to the year ahead, Red Leaf Securities’ John Athanasiou expects far better performance from the ASX 200 tech stock (courtesy of The Bull).

Here’s why.

Should you buy WiseTech shares today?

“WTC develops and provides software solutions to the global logistics industry,” said Athanasiou, who has a buy rating on the stock.

The first reason he’s bullish on the ASX 200 tech stock is the potential for AI to significantly reduce the company’s labour costs and increase overall productivity.

According to Athanasiou:

Artificial intelligence (AI) continues to be embedded across its software, which is likely to cut 2,000 jobs in fiscal years 2026 and 2027. AI enhances productivity across CargoWise logistics datasets and global integrations.

The second reason you might want to buy the dip on WiseTech shares is the strong earnings and revenue growth the company achieved in H1 FY 2026.

“First half revenue in fiscal year 2026 exceeded expectations. Synergies from e2open were delivered 18 months early, and customer retention remains about 99%,” Athanasiou said.

As for the third reason WiseTech shares could be set to outperform, Athanasiou concluded:

With dominant network effects across more than 190 countries, improving cost discipline and scalable growth opportunities, WiseTech offers a structurally de-risked path to margin expansion.

What’s the latest from the ASX 200 tech stock?

WiseTech reported its half-year results on 25 February.

As for that expectation beating revenue Athanasiou mentioned above, the company reported revenue of US$672 million, up 76% year on year. That figure includes the five-month revenue contributions from US supply-chain software company e2open, which WiseTech acquired in August. Half-year revenue was up 7% organically.

On the earnings front, reported earnings before interest, taxes, depreciation and amortisation (EBITDA) was up 31% from H1 FY 2025 to US$252.1 million. Organic EBITDA was up 7% to US$208.4 million.

“We continue on our deliberate AI transformation journey,” WiseTech CEO Zubin Appoo said.

Appoo added:

AI is strengthening our advantage, enabling significantly more automation and value for our customers, embedding our products more deeply into their daily operations, and unlocking levels of efficiency gains across WiseTech that were previously out of reach.

WiseTech shares closed up 11.1% on the day of the results release.

The post 3 reasons to buy the big dip on WiseTech shares today appeared first on The Motley Fool Australia.

More reading

• Why Breville, Forrestania Resources, GQG Partners, and WiseTech shares are falling today
• 3 excellent ASX shares I’d happily hold through the next market cycle
• 4 ASX tech shares tipped to jump up to 140% higher
• How to turn $20,000 into lifelong passive income with ASX shares
• 3 ASX tech stocks that brokers rate as buys

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

The S&P/ASX 200 Index (ASX: XJO) is having a decent session on Wednesday. In afternoon trade, the benchmark index is up 0.35% to 8,725.1 points.

Four ASX shares rising more than most today are listed below. Here’s why they are pushing higher:

Brazilian Rare Earths Ltd (ASX: BRE)

The Brazilian Rare Earths share price is up 7% to $5.53. This morning, this rare earths developer announced new exploration results at the Sulista Project in Brazil. The company revealed that its latest exploration campaign has delivered excellent results across multiple targets, materially expanding the Sulista mineralised footprint and reinforcing Sulista East as the anchor deposit within a rapidly growing district-scale rare earth development opportunity. Brazilian Rare Earths’ CEO and managing director, Bernardo da Veiga, commented: “Together, these results strengthen the basis for our near-term scoping study and support our hub-and-spoke development strategy across the Rocha da Rocha Province.”

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is up over 12% to $19.95. After the market close on Tuesday, this rare earths giant announced a revised long-term supply agreement with JARE, extending to 2038 and establishing a firm offtake for 5,000 tonnes of NdPr per year at a US$110/kg price floor. Lynas’ CEO and managing director, Amanda Lacaze, said: “We are delighted that the revised 12-year availability and supply agreement with JARE will support both Japanese industry and the continued growth and development of Lynas. This new agreement will ensure continued reliable supply of rare earth products that are strategically important to Japanese industry and its global market, and at the same time, the implementation of fair market pricing will reduce price volatility for Lynas and enable continued growth and investment in our operations.”

Macquarie Technology Group Ltd (ASX: MAQ)

The Macquarie Technology share price is up 5% to $65.95. This morning, Macquarie Technology revealed that it has secured a $200 million hybrid investment from the government-backed National Reconstruction Fund Corporation. It notes that this funding will support the company’s development of sovereign cyber security and cloud services for critical industries and government.

Ora Banda Mining Ltd (ASX: OBM)

The Ora Banda Mining share price is up 18% to $1.38. This has been driven by the release of an update on the miner’s Round Dam gold deposit in Western Australia. Management revealed that its new mineral resource is 25.6Mt at 1.6g/t for 1.330 million ounces. This is up materially from 125,000 ounces previously. Ora Banda’s managing director, Luke Creagh, said: “We are incredibly excited by the potential of Round Dam to become a substantial mining operation, as the company continues to advance its study work into the construction of a standalone ~3mtpa processing facility at Davyhurst.”

The post Why Brazilian Rare Earths, Lynas, Macquarie Technology, and Ora Banda shares are pushing higher today appeared first on The Motley Fool Australia.

More reading

• Why the Lynas share price is roaring 14% today
• Guess which ASX 200 gold stock is rocketing 14% today on ‘fantastic results’
• Macquarie Technology Group secures $200m NRFC investment for digital infrastructure
• Lynas Rare Earths inks 12-year supply deal with Japanese industry
• Australia’s next great ASX mining boom: Are we already in it?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.

GQG Partners Inc (ASX: GQG) shares have sunk 7.59% in morning trade on Wednesday. At the time of writing, the ASX 200 financials stock is changing hands at $1.765 a piece. 

Today’s dip means the share price is now 16.35% lower than this time last year and 0.3% higher for the year-to-date.

For context, the S&P/ASX 200 index (ASX: XJO) is up 0.55% this morning, and the S&P/ASX 200 Financials index (ASX:XFJ) is up 1.04%.

Why is this ASX 200 financials stock crashing?

GQG Partners posted its latest funds under management (FUM) update ahead of the ASX open this morning. The fund manager reported a total FUM of US$172.9 billion for February, up from US$165.7 billion in January thanks to strong investment performance. 

International and Global strategies led the growth. Its International FUM increased by US$4.0 billion and Global grew by US$2.0 billion throughout the month, after accounting for flows and performance. The reported figures are unaudited and based on current estimates. The FUM data does not include activity from GQG Private Capital Solutions.

The ASX 200 financial stock also noted a net outflow of US$3.2 billion for the month. This is down from a net outflow of US$4.2 billion in January but higher than the US$2.1 billion net outflow reported in December.

GQG confirmed that its next FUM updates are scheduled for the 13th of April, 12th of May, and 10th of June 2026. Management remains focused on delivering strong long-term returns for clients and managing net flows during challenging market conditions.

If GQG Partners’ FUM is rising, why are investors selling up?

In short, investors are likely concerned about the company’s net outflows. While the total FUM increased during February, GQG continues to face consecutive months of net outflows. Throughout 2025, the fund manager saw a total of US$3.9 billion leave its funds. That outflow figure has already been overtaken in the first two months of 2026. 

As a fund manager, QGQ Partners’ revenue is heavily dependent on how much money its clients invest and investors are likely concerned that continued outflows may mean the company’s earnings could begin to fall.

What do analysts think of the financials stock?

The company posted strong FY25 earnings results in mid-February, which helped bump the share price higher late-last month. 

The numbers themselves were solid. Revenue and net income both rose year on year, while operating margins expanded to 77%. Funds under management ended the year at US$163.9 billion, up 7.1%, despite US$3.9 billion in net outflows. GQG Partner’s net outflows were US$20.2 billion in 2024.

The company is well diversified across strategies and geographies, with exposure across international, emerging markets, global, and US equities. 

Analysts are mostly neutral on the outlook for GQG Partners’ shares over the next 12 months. TradingView data shows that six out of 10 analysts have a hold rating on the ASX financials stock, and another four have a buy or strong buy rating.

The average target price is $1.965, which implies a 9.96% upside at the time of writing. 

The post Why this ASX 200 financials stock is crashing 7.6% today appeared first on The Motley Fool Australia.

More reading

• GQG Partners lifts FUM to US$172.9bn in February 2026
• 5 ASX dividend shares to buy for income in 2026
• This 200 ASX financials stock just got an upgrade from Morgans following earnings results
• Here are the top 10 ASX 200 shares today
• Why AMP, GQG, NextDC, and Origin Energy shares are racing higher today

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 recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telix Pharmaceuticals Ltd (ASX: TLX) had some big news this week, releasing results showing that its potential prostate cancer drug, TLX-591, was safe to use.

It’s a significant milestone for the company, which has an established revenue-generating business but is also shooting for a potentially large market with this new compound.

Unsurprisingly, then, brokers have noticed the results and have bullish price targets for the company, well above the current share price of $11.11, which we’ll get to later.

Safety sign off

Firstly, what was released this week?

Telix said that Part 1 of the ProstACT Global Phase 3 study, “has achieved its primary objectives, demonstrating an acceptable safety and tolerability profile with no new safety signals observed”.

The key findings included that there were no adverse drug interactions and that “hematologic events” were in line with expectations and were “transient and manageable”.

Telix Chief Medical Officer David Cade said the results “build on prior findings and highlight the potential for TLX591-Tx in combination with contemporary standard of care, to become a new first-line option for patients facing this aggressive disease”.

Telix shares looking cheap

The team at Jarden said this week’s news was positive.

As they said:

Telix appears to have taken another step forward in its pursuit of becoming a true “thera-nostic” company, which would allow them to diagnose, monitor and treat prostate cancer.

The Jarden team noted there were several hoops to jump through to get TLX591 into the next phase of testing and eventually commercialisation.

Telix are now preparing a package to submit to the Food and Drug Administration (FDA). The recruitment process for Part 2 has already begun outside of the US but they require a green light from the FDA (based on Part 1 safety and dosimetry data) to obtain an investigational new drug amendment to include US patients. If successful, Telix expect the recruitment process to ramp up quicker than Part 1. Ultimately, a commercial approval will also be highly predicated on TLX591 demonstrating strong efficacy on top of a favourable safety profile and dosimetry.

The Jarden team have a $21 price target on Telix shares.

The team at Morgan Stanley believe there are a number of reasons Telix shares are looking cheap.

As they said:

While acknowledging previous delays in commercialisation for several candidates, we see the current share price as implying limited value to late-stage Precision Medicine candidates/indication expansion and no value to the Therapeutics portfolio. As such, we see the risk-reward outlook as favourable at current levels.

Morgan Stanley said the base business alone, including the approved products Illuccix and Gozelliz, as well as risk-weighted contributions from other compounds, was worth $15.50 per share, while on an unrisked basis, assuming compounds in Telix’s pipeline were approved, this jumped to $19.20 per share.

Overall, Morgan Stanley has a $24.60 price target for Telix shares.

Telix was also named this week by Wilsons Advisory as one of a number of healthcare stocks that are looking cheap.

The post This drug developer could have huge upside brokers say appeared first on The Motley Fool Australia.

More reading

• Four ASX healthcare stocks which are looking cheap
• Here are the top 10 ASX 200 shares today
• Why Life360, St George Mining, Telix, and Westgold shares are charging higher today
• Telix shares jump 14% on big news
• Telix Pharmaceuticals reports positive TLX591-Tx Phase 3 results

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

Xero Ltd (ASX: XRO) shares have plummeted nearly 60% from an all-time high in June last year. 

While the shares have climbed 13.54% since hitting a three-year low in mid-February, they are still down 27.31% year-to-date and are trading lower again (2.56% lower) on Wednesday morning.

The company announced a lower-than-expected FY25 result in May last year, followed by news of its US$2.5 billion acquisition of US-based Melio in July, which spooked investors.

Its FY26 interim results in November saw a net operating result a little behind expectations, but its EBITDA was ahead, and investors reacted cautiously.

The cloud-based accounting software company was caught up in the sector-wide tech sell-off and AI-related nervousness late last year (and into early 2026). This, combined with investor worry about the company’s Melio acquisition, and potentially overvalued share price, saw many sell up. 

Going forward, analysts are incredibly bullish on the outlook for Xero shares, with some tipping the tech stock to double, or more, over the next 12 months.

While it looks like that sort of share price growth is doable, thanks to the company’s ‘sticky’ subscriber base and global expansion plans, there is a very long way for Xero to go before it returns to mid-2025 levels.

Here’s another ASX tech stock that I think has fantastic prospects for strong growth this year. And analysts are tipping upsides as strong as those for Xero.

I’d buy SiteMinder shares instead

SiteMinder Ltd (ASX: SDR) provides an e-commerce platform for hotels and other accommodation businesses. The company touts its product as helping hotels to sell, market, manage, and grow their businesses from one platform. It offers integrations with hotel property management systems and third parties such as online travel agencies, tour operators, and global travel distributors. 

The company posted strong half-year FY26 growth last month, including a 25.5% revenue increase, and its EBITDA doubled. SiteMinder said that it is targeting continued strong growth in annual recurring revenue through the second half of FY26, underpinned by further Smart Platform adoption. Management expects ongoing improvements in its financials across the board. In the medium term, SiteMinder is aiming for a rapid 30% revenue growth.

At a current share price of $3.37, at the time of writing, it looks like a rare buying opportunity for a stock well-positioned for great growth this year. Surprisingly, the Siteminder share price has declined by more than 52% over the past six months. But structural tailwinds could easily cause a sharp turnaround. 

What do analysts think of SiteMinder shares?

Analysts are very bullish about the outlook for SiteMinder shares. TradingView data shows that 14 out of 16 analysts have a buy or strong buy rating on the ASX tech stock. 

The maximum target price is $8.30. That implies that the share price could rocket 148.5% higher over the next 12 months. That’s more than double the value!

The post Forget Xero shares, this ASX tech stock is tipped to double in value appeared first on The Motley Fool Australia.

More reading

• These cheap ASX growth shares could rise 60% to 100%
• Down 50%, is it time to jump into Xero shares?
• 4 reasons to buy the redound in Xero shares today
• After the ASX 200’s latest slide, I spy bargain shares!
• 3 ASX tech stocks that brokers rate as buys

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