Nanosonics Ltd (ASX: NAN) shares have fallen almost 30% over the past year, but according to the team at RBC Capital Markets, they could be primed for a recovery.

The broking house has just released a new research report on the company and has assigned it an outperform rating and a bullish share price target, which I’ll get to shortly.

First, let’s look at the company’s most recent news – its FY26 financial results and the announcement of a share buyback.

Steady year, with core business performing well

Nanosonics’ main revenue-generating business at the moment is its Trophon division, which placed 4230 new units during the year, up 9%.

The company’s revenue was up 3% to $203.9 million, while EBIT was $16 million, down 10%.

If the Trophon division is looked at on a stand-alone basis, its EBIT would be $50.6 million.

The company had no debt and cash on hand of $155.2 million at the end of the year, having completed a $20 million buyback.

Nanosonics also announced a new, $40 million buyback for FY27.

Chief Executive Officer Michael Kavanagh said:

Nanosonics is entering a defining period of growth. FY26 demonstrated the strength of the business we have built: a proven Trophon franchise, disciplined financial execution and in FY27 we will progress the CORIS System from CMR to commercialisation. Trophon remains the economic engine for Nanosonics and an important foundation for future value creation. We delivered 6% revenue growth and 21% EBIT growth in constant currency. We achieved our strongest annual placement volume in three years, record upgrades in North America and expanded the cumulative installed base. We also launched trophon3 and trophon2 Plus, and saw accelerating adoption of these next generation technologies in the second half.

Mr Kavanagh said the CORIS system had the potential to establish a new standard of care in endoscope reprocessing and build a recurring revenue business over time.

He said the company planned to launch CORIS across the UK, Ireland, and Australia in the first half of FY27, with the US launch to follow.

Shares looking cheap, broker says

RBC Capital Markets said in their research note that the current Nanosonics share price “is implying an overly bearish scenario”.

They added:

NAN’s Trophon business improved its profitability with EBIT increasing from $47m in FY25 to $50m in FY26. While we expect Trophon capital sales will be negatively impacted by tariffs in higher freight costs, we expect absolute profitability to continue increasing in FY27 and are forecasting Trophon only EBIT of $54m (+8%). We value the Trophon only business at $3.55/share.

RBC has revised its forecasts to assume CORIS hits breakeven over the horizon period.

Its price target for Nanosonics shares has increased from $3 to $3.75, compared with a share price of $2.88 at the time of writing.

Nanosonics is valued at $836.9 million.

The post This ASX biotech could jump more than 30%, one broker says appeared first on The Motley Fool Australia.

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• Nanosonics posts FY26 revenue growth and prepares to launch CORIS

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

Commonwealth Bank of Australia (ASX: CBA) is typically considered a cyclical stock, but its shares also have strong defensive qualities.

The business is the second-largest company on the S&P/ASX 200 Index (ASX: XJO), with a market capitalisation of $254 billion at the time of writing.

The banking giant has a strong operation performance too. 

In mid-August, CBA posted a 7% increase in cash NPAT and an 8% increase in statutory NPAT. Operating income also increased by 6.2%. CBA said it is the first time it has reported growth at or above system in each of its five core domestic product categories: home lending, business lending, consumer finance, household deposits, and business deposits.

Its large scale and strong operational performance also mean the company can often remain resilient through times of economic volatility, and its cyclical nature also means it can outperform during times of recovery.

And the bonus for shareholders is that this means the bank can pay a regular passive income.

But what exactly does that passive income look like?

Let’s take a look.

Where are CBA shares trading now?

At the time of writing, CBA shares are $151.62 a piece. The bank shares have had a relatively choppy start to the year, driven by interest rate movements and inflation concerns, but after each decline, the shares manage to bounce back. 

For the year to date, they’re down around 6% and roughly 10% lower than 12 months ago at the time of writing.

How many CBA shares can I buy for $10,000?

At the current share price of $151.62, a $10,000 investment will buy around 65 shares.

What dividend does the banking giant pay?

CBA has a long history of paying its shareholders regular fully-franked dividends dating back to 1992. These are typically paid out every six months, in March and September.

Last month, as part of its FY26 results announcement, the bank declared a $2.70-per-share fully-franked final dividend and a fully-franked full-year dividend of $5.05, up 20 cents. This is payable to shareholders on the 29th of September. That translates to a yield of around 3.3%.

Forecasts suggest the bank will pay its shareholders closer to $5.45 per share in FY27, and $5.30 per share in FY28.

At the time of writing, this translates to a forward dividend yield of roughly 3.6% for FY27. For FY28, the forward dividend yield is around 3.5%.

So, what passive income can I earn off a $10,000 investment?

I’ve crunched the numbers, using the estimated dividend payout figures above, to work out roughly how much passive income investors can expect from a $10,000 investment in CBA shares in FY27 and even beyond.

If the banking giant pays the expected $5.45 per-share dividend in FY27, your 65 shares would generate around $354.25 in passive income.

Assuming CBA then pays the forecasted $5.30 dividend in FY28, those 65 shares would generate around $344.40 in passive income for the year.

The post  If I invest $10,000 in CBA shares, how much passive income will I receive in FY27? appeared first on The Motley Fool Australia.

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• ASX 200 drops again as selling continues
• Down 12%: Are CBA shares a buy, sell or hold now?
• Westpac, ANZ, NAB or CBA shares? Which ASX bank stock should I buy for $5,000 a year in passive income?
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?

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 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 you are lucky enough to have $2,500 to invest this month, but you’re not a fan of stock picking, then don’t worry.

That’s because exchange traded funds (ETFs) can make the job much simpler by allowing you to buy groups of shares in one fell swoop.

With that in mind, let’s look at three ASX ETFs that could be worth getting better acquainted with right now. Here’s what you need to know about them:

Betashares Australian Quality ETF (ASX: AQLT)

The first ASX ETF to look at is the Betashares Australian Quality ETF.

Instead of just buying only the biggest Australian stocks, the Betashares Australian Quality ETF invests in Australian shares that score highly on measures of quality.

That means it favours businesses with characteristics such as strong profitability, healthy balance sheets, and more reliable earnings. This includes CSL Ltd (ASX: CSL), Telstra Group Ltd (ASX: TLS), and Commonwealth Bank of Australia (ASX: CBA).

For investors who want Australian shares but would prefer a tilt towards stronger businesses, this ETF could be a good option.

VanEck MSCI International Quality ETF (ASX: QUAL)

Another ASX ETF to consider is the VanEck MSCI International Quality ETF.

It applies a similar idea internationally. It invests in stocks from developed markets that demonstrate strong profitability, low financial leverage, and relatively stable earnings.

This provides Australian investors with access to leading businesses from overseas while applying a quality filter before they make it into the portfolio.

I like that approach for long-term investing. Great businesses often have the financial strength to keep investing through difficult periods, take opportunities when competitors are struggling, and continue growing over many years.

The VanEck MSCI International Quality ETF also gives investors exposure to industries and companies that are difficult to access through the Australian market alone.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

A final ASX ETF to look at is the Betashares Asia Technology Tigers ETF.

This is the more growth-focused option of the three.

The fund invests in major Asian technology companies across areas such as semiconductors, ecommerce, online platforms, gaming, hardware, and other digital businesses.

Asia is home to some of the world’s most important technology companies, as well as enormous consumer markets that are continuing to adopt digital services.

This gives the Betashares Asia Technology Tigers ETF exposure to both the infrastructure behind modern technology and the companies serving consumers across the region.

It can be volatile, particularly when sentiment towards Asian markets changes. But for investors with a long-term view, the growth opportunity across Asian technology remains significant.

The post Where to invest $2,500 in ASX ETFs now appeared first on The Motley Fool Australia.

More reading

• 5 ASX ETFs to buy and hold forever
• 3 very exciting ASX ETFs for investors to watch
• Why I’d buy these Betashares ETFs in September
• Why these ASX ETFs could be strong long-term picks
• 3 fantastic ASX ETFs for Aussie investors in September

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf and CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.