A new report from Bell Potter has projected a strong 12 months for ASX 200 stock Graincorp Ltd (ASX: GNC). 

GrainCorp is an agribusiness and processing company with a history spanning more than 100 years. 

The company operates the largest grain storage and logistics network in eastern Australia.

GrainCorp also provides grain marketing services to all major grain-producing regions in Australia as well as to its overseas growers. 

Its share price is down almost 23% over the last year. 

However a new report from Bell Potter suggests it could be a value opportunity for this ASX 200 stock following an update. 

Strong update 

In yesterday’s report, Bell Potter said that GrainCorp’s earnings outlook is improving due to both higher crop volumes and stronger margins. 

The Australian Bureau of Agricultural and Resource Economics (ABARE) has upgraded its 2026-27 east coast winter crop forecast by 2.8mt, or 12%, to 26.6mt, with particularly strong improvements in NSW and Victoria. 

Although this remains below the previous year’s crop, the forecast is around the five-year average.

According to the broker, the company may process less grain from the summer harvest than last year, but it is expected to make more money from each tonne it processes. 

The expected summer crop is falling from 4.6 million tonnes to 3.4 million tonnes, but the profit margin on processing oilseeds is looking much stronger. 

This improvement is partly because crops in the Northern Hemisphere are weaker while Australia’s crop outlook is improving, creating more favourable pricing conditions for the ASX 200 company. 

So, while volumes are down, higher margins could more than make up for it and support stronger profits.

Big price target upgrade 

Based on this guidance, Bell Potter has upgraded its FY27 EBITDA estimate by 15% and raised its target price from $5.90 to $7.15 per share. 

From current levels, this indicates a 14% upside. 

The ABARE crop report is positive and likely to lead to consensus upgrades. However, the margin backdrop at this point, in terms of both grain basis and oilseed crush margins, looks possibly the strongest it has for three years. To us this is key, as consensus FY27e expectations (which this crop estimate underwrites) looks to be carrying forward the margin environment of FY25-26e, which was materially weaker. This implies that there is both volume and margin upside potential within consensus FY27e expectations.

The post This ASX 200 stock just got a big upgrade from Bell Potter appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• This exciting ASX 300 stock has 89% upside: Broker
• Here are the top 10 ASX 200 shares today
• This ASX financials stock just soared 11% on results and is tipped to keep rising
• After crashing 6% on results, what is Bell Potter’s view on Domino’s shares?

Motley Fool contributor Aaron Bell 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 looking for big potential returns and have a high tolerance for risk, then it could be worth hearing what Morgans is saying about the speculative ASX shares named below.

Here’s what the broker is recommending:

EchoIQ Ltd (ASX: EIQ)

Morgans remains positive on this medical technology company following the release of its FY 2026 results and outlook for FY 2027.

In response, the broker has retained its speculative buy rating and $1.85 price target on its shares. Based on its current share price of $1.32, this implies potential upside of 40%. It commented:

The FY26 annual report confirms the numbers already flagged via quarterlies, but the real signal is the FY27 outlook section, which reads as almost entirely execution language now the balance sheet question is solved. 

The market is still waiting on an FDA decision for its Heart Failure (HF) application, which remains the key near-term catalyst and value inflection driver. Despite delays, we maintain a positive view on approval. Speculative Buy retained and A$1.85 p/s target price unchanged.

PeopleIn Ltd (ASX: PPE)

Another ASX share that Morgans is recommending is PeopleIn. 

It rates the workforce solutions company’s shares as a speculative buy with a $1.00 price target. Based on its current share price of 66 cents, this implies potential upside of approximately 50%. It commented:

PPE’s FY26 sees the completion of its portfolio simplification, with two subscale divisions divested (c.35% of the business) and the ongoing operations returned to growth. Group Normalised EBITDA of $19.0m (+1.6% pcp) was in line with MorgansF, while Normalised NPATA of $8.7m (+29.9% pcp) came in c.53% ahead on a lower underlying D&A (excl acquisitions amortisation). 

Debt continues to decline, with capital management centred on dividends/buybacks, along with incremental M&A. Second-half momentum was the feature, with 2H26 Normalised EBITDA up 19.0% on 2H25 and Engineering, Trades and Labour up 122.7%, as the Queensland infrastructure ramp began to convert. We retain our Speculative BUY with a revised A$1.00 target price (70% PER / 30% DCF).

Readytech Holdings Ltd (ASX: RDY)

Finally, although this mission-critical software provider’s results were a touch short of expectations, Morgans remains positive.

In response, the broker has retained its speculative buy rating with a $2.25 price target. Based on its current share price of $1.54, this implies potential upside of approximately 45%. Morgans commented:

RDY’s FY26 result came in towards the lower end of its revised FY26 guidance range, with revenue of $125m & EBITDA of $34.8m -1%/-4% lower than MorgF respectively, with contract implementation timing and customer churn across RDY’s legacy portfolio key headwinds during the period. 

Lower planned investment into FY27 and an improved cost base stemming from the group’s FY26 efficiency program should see the pathway back towards improved growth and margins as achievable, underpinning FY27 guidance of revenue of ~$128-132m (+2.4-5.6% YoY) & cash EBITDA margins of 15-17%. We trim EBITDA forecasts by -3-4% in FY27-FY29F, with our SPEC BUY retained.

The post Morgans says these speculative ASX shares could rise 40% to 50% appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares with fresh buy ratings and big upside from Morgans
• 2 ASX shares tipped by brokers to return 49% to 68%

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

Sonic Healthcare Ltd (ASX: SHL) shares were stationary at $19.54 during Tuesday trading, but the ASX healthcare share has had a rough run. Sonic is down 11% over the past month, 14% year to date and 18% over the past 12 months.

That weakness could be catching the attention of passive income investors. But can this healthcare giant also deliver meaningful earnings growth?

Growth remains a key attraction

Sonic Healthcare is the largest private medical laboratory and pathology services operator in Australia, the United Kingdom, Germany and Switzerland. It is also a major provider of diagnostic imaging in Australia and the country’s largest medical centre operator.

The company’s FY26 result was impressive despite ongoing economic uncertainty. Revenue rose 13% to $10.9 billion, underlying EBITDA climbed 11% to $1.9 billion, while underlying earnings per share (EPS) increased 14% to $1.256.

There are reasons to believe demand can continue growing. Sonic operates in markets with ageing and growing populations, potentially supporting long-term demand for pathology, diagnostics and medical services.

Acquisitions provide another avenue for growth. The $10 billion ASX healthcare share has focused on expanding its European operations, with acquisitions helping increase its scale and potentially improve profit margins.

For investors, sustained profit growth is particularly important because earnings ultimately fund dividends.

A compelling dividend history

There aren’t many ASX companies with a dividend track record quite like Sonic Healthcare’s.

The ASX healthcare share has paid dividends since 1994 and has increased its payout almost every year since then. The only exceptions were 2011 and 2012, when Sonic maintained its dividend.

In FY26, Sonic continued its progressive dividend policy, increasing the payout by 1 cent per share to $1.08. Based on the current share price, that represents a dividend yield of approximately 5.4% before franking credits, or around 7% including franking credits.

That’s an attractive income proposition if Sonic can continue growing earnings and supporting its progressive dividend policy.

What do brokers think?

Sonic isn’t universally viewed as a buy. TradingView data shows 10 of 18 brokers rate the ASX healthcare share a hold, while four rate it a buy or strong buy and four have a sell or strong sell recommendation.

The average 12-month price target is $22.11, implying potential upside of roughly 13% from the current share price.

Bell Potter is more bullish. The broker maintained its buy rating after reviewing Sonic’s FY26 results, although it reduced its 12-month price target from $28.75 to $27.50.

Even after that downgrade, the target implies potential upside of around 40%.

Is Sonic Healthcare a buy?

At roughly 16 times earnings, Sonic Healthcare doesn’t appear excessively valued given its defensive operations, impressive dividend history and potential for long-term earnings growth.

The combination of a 7% fully franked-equivalent yield and potential earnings growth makes Sonic an ASX healthcare share income-focused investors may want to consider.

The post Could this 7%-yielding ASX healthcare share be a growth winner? appeared first on The Motley Fool Australia.

More reading

• Why this ASX healthcare share is a retiree’s dream for FY27
• Why I think these boring ASX shares could build serious wealth
• 37 ASX shares going ex-dividend next week
• How much superannuation is needed to target a $50,000 annual passive income?
• 3 top Australian shares to buy for passive income

Motley Fool contributor Marc Van Dinther 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 Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.