Tag: Stock pick

Saving for their retirement is probably the last thing on your children’s minds when they first start working, but there is a good reason to get them signed up for a superannuation account early.

Most younger teens are not automatically eligible for superannuation payments from their employer, as workers aged under 18 must work more than 30 hours per week to be eligible for super.

This changes once they turn 18, when all workers must be paid 12% super regardless of the number of hours worked.

Government money on the table for super

But just because they don’t get paid super, doesn’t mean there isn’t a great reason to sign your children up for a super account.

This is because, as low-income earners, they will likely be eligible for a super co-contribution from the government if they make an after-tax contribution themselves.

There are some rules, including that, for 2026-27, they must earn less than $49,293 to receive the full $500 government contribution.

There is also the 10% eligible income test, which states that 10% or more of your total income must come from either employment-related activities or carrying out a business.

To be eligible for the full $500 contribution from the government, $1000 in non-concessional (after-tax) contributions must be made.

Compound interest works its magic

And while $500 might not sound like a lot, the impact on your child’s retirement savings could be huge.

Using the government’s Moneysmart website, I have calculated that $500 deposited into a 15-year-old’s account will turn into $10,500 by the age of 60, assuming the initial deposit compounds at 7% per year.

And remember, this is calculated assuming just one year of contributions.

The Australian Taxation Office website says your children do not need to do anything to receive the payment, and can make smaller payments throughout the year.

As they say:

You don’t need to make your personal contributions as a single lump sum – you can make payments throughout the financial year. We use the total amount you have contributed for the year to calculate the co-contribution. Your super fund can tell you how to make personal contributions, and it will need your tax file number before it can accept them.

The minimum contribution that can be made is $20, and the government has a calculator to help people figure out how much they will be paid.

The post How to give your kids a superannuation kickstart, with help from the government appeared first on The Motley Fool Australia.

More reading

• Why this ASX software stock is rocketing 13% today
• This ASX silver mine developer could more than triple in value: Broker
• Could this ASX copper share really rise 400%?
• Mesoblast shares: Q4 earnings top projections
• Australia may sign a nuclear deal with India this week. What does that mean for Boss Energy shares?

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.

Silver Mines Ltd (ASX: SVL) is progressing its Bowdens silver project in the central west region of New South Wales, and expects to release its definitive feasibility study on the project imminently.

The analyst team at Morgans has run the ruler over the project and has come up with a very bullish share price target on Silver Mines shares, which we’ll get to shortly.

First, let’s have a look at why Morgans like the company so much.

Large silver project progressing toward development

Morgans said Silver Mines’ Bowdens project is Australia’s largest undeveloped silver resource and one of the largest globally.

The deposit also remains open beyond the current mining plan, “leaving room for reserve growth, mine life extension and underground potential”.

Morgans notes that direct silver exposure is rare among ASX miners, and in this case, “with silver contributing ~86% of life-of-mine revenue, Bowdens is one of the purest ways to gain leverage to rising silver prices through an advanced Australian development asset”.

The broker has modelled free cash flow of $1.63 billion over the life of the mine, and added, “we expect the upcoming Definitive Feasibility Study (DFS) to further refine the development pathway and potentially unlock additional value through updated pricing assumptions, optimisation initiatives and mine life extensions”.

They added:

We forecast first production in FY30, providing sufficient time for completion of the revised approvals process, project financing and construction. Following multiple engineering studies, metallurgical programmes and optimisation work, we consider Bowdens a technically mature development asset, leaving permitting and financing as the principal remaining milestones.

Shares looking cheap

Morgans has a 40 cent per share price target on Silver Mines, compared to the current price of 12.5 cents per share.

The broker said that the market, “continues to undervalue Bowdens’ combination of scale, technical maturity and leverage to a structurally improving silver market”.

They added:

While permitting remains the dominant risk, we believe this is increasingly offset by a more clearly defined approvals pathway, an advanced stage of project development, and multiple near term catalysts capable of reducing the regulatory discount currently reflected in the share price. Our thesis rests on what we view as an increasingly compelling asymmetry in Bowdens’ risk-reward profile, underpinned by exceptional leverage to a strengthening silver price, a technically mature development plan and a more clearly defined permitting pathway.

They added that their valuation only reflects a portion of the company’s broader options including further open pit cutbacks and potential resource growth.

Silver Mines is currently valued at $277.42 million.

The post This ASX silver mine developer could more than triple in value: Broker appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Netwealth, Silver Mines, and Qantas shares

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.

Shares in Caravel Minerals Ltd (ASX: CVV) have improved more than 39% over the past year, but they’re still trading well off their highs over the period.

But the analyst team at Shaw and Partners has recently initiated coverage on the ASX copper stock and believes shareholders should persist, predicting serious share price upside for the company.

Major copper project in development

So what does Caravel do? The company is currently finalising the definitive feasibility study for its Caravel copper project 150km northeast of Perth.

Shaw and Partners said in its recent research report that Caravel was one of the largest undeveloped copper resources globally.

They added:

The project is a large-scale, low-cost operation that will utilise bulk mining and automation to drive strong unit cost efficiencies, supported by its proximity to Perth, only 150km away. With a Tier-1 resource, progressing permitting and emerging strategic funding interest, Caravel is well positioned to develop a globally significant copper operation leveraged to ongoing structural demand growth from electrification, EVs and AI.

Shaw and Partners said a key advantage for the project was its proximity to established infrastructure which was unusual for projects of this size.

They added:

Located within trucking distance of Perth and connected to existing sealed roads, power infrastructure and skilled labour pools, the project avoids many of the logistical challenges faced by more remote copper developments. This infrastructure access significantly lowers capital intensity and operating risk relative to comparable greenfield projects.

Shaw and Partners said Caravel was progressing funding options while the definitive feasibility study was being finalised, “with the project’s scale and long mine life lending itself to a diversified capital stack”.

They added:

Caravel will pursue a mix of project debt, strategic investment and potential offtake-linked financing, to minimise dilution while providing the balance sheet required for construction. Strong interest from potential strategic partners and lenders, highlighted by the Adani non-binding MoU, reflects growing global demand for secure copper supply. This positioning enables Caravel to assemble a robust funding structure as development decisions approach.

Shaw and Partners said the growing demand for copper supported the reasons to buy ito the stock.

They said rapid growth in renewable energy, the electrification of transport and, “the rising power intensity of AI-driven data centres are expected to drive sustained copper consumption over the short, medium and long-term”.

The project also had significant precious metal and molybdenum by-products, Shaw and Partners said.

The broker has a $1.15 share price target on Caravel shares, which would be a 400% gain from the current share price of 23 cents.

Caravel is valued at $128.5 million.

The post Could this ASX copper share really rise 400%? appeared first on The Motley Fool Australia.

More reading

• This ASX silver mine developer could more than triple in value: Broker
• Mesoblast shares: Q4 earnings top projections
• Australia may sign a nuclear deal with India this week. What does that mean for Boss Energy shares?
• Ingenia Communities Group shares paused pending announcement
• Which is the best buy, Coles shares or Wesfarmers shares?

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.

The Mesoblast Ltd (ASX: MSB) share price is in focus today after the company reported fourth-quarter net revenue of US$36 million, boosting full-year revenue to US$115 million for the period ended 30 June 2026.

What did Mesoblast report?

• Fourth quarter net revenue: US$36 million
• Full-year net revenue: US$115 million
• Ryoncil^® uptake exceeded initial projections
• Strong capital position and funding for operations

What else do investors need to know?

Ryoncil^® is the first mesenchymal stromal cell (MSC) product approved by the US FDA for any indication and remains the only FDA-approved option for children under 12 with steroid-refractory acute graft-versus-host disease (SR-aGvHD). This achievement has positioned Mesoblast as a leading developer of allogeneic cellular medicines targeting severe inflammatory diseases.

The company’s manufacturing capabilities continue to deliver industrial-scale, off-the-shelf cellular medicines. Mesoblast also has an extensive intellectual property portfolio, with patents that provide commercial protection through to at least 2044 in key markets.

What’s next for Mesoblast?

Looking ahead, Mesoblast expects continued revenue growth, supported by momentum across major US paediatric centres. The company’s robust capital base and new five-year facility are intended to support further strategic initiatives, including label extensions and new blockbuster product launches.

Mesoblast is advancing its Ryoncil^® therapy for additional inflammatory diseases, such as SR-aGvHD in adults and biologic-resistant inflammatory bowel disease, while its rexlemestrocel-L platform targets heart failure and chronic low back pain.

Mesoblast share price snapshot

Over the past 12 months, Mesoblast shares have risen 27%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Mesoblast shares: Q4 earnings top projections appeared first on The Motley Fool Australia.

More reading

• Ingenia Communities Group shares paused pending announcement
• Why brokers think Zip shares could soar 50% or more in FY27
• NEXTDC boosts funding with $2.3 billion senior debt facility upsize
• ASX 200 shares vs. US stocks in FY26
• 5 things to watch on the ASX 200 on Friday

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.

Boss Energy Ltd (ASX: BOE) shares have had a difficult year.

After a savage 43.8% single-day fall in July 2025 following a production guidance cut at its Honeymoon uranium mine in South Australia, the stock has struggled to recover, sitting approximately 20% lower year to date.

This week, however, a significant catalyst has emerged that the market is watching closely.

There are reports that the Australian Government could sign an agreement with India this week that delivers on a nuclear co-operation plan between the two countries.

If confirmed, the agreement would open the door for Australia to export uranium directly to India. One of the world’s fastest-growing nuclear markets.

Why India could be a big buyer of uranium

India’s nuclear ambition is not speculative.

RBC Capital Markets noted in a recent report that India has committed to growing its nuclear capacity tenfold by 2047. This is one of the most significant long-term demand commitments any country has made to nuclear energy.

India currently generates approximately 3% of its electricity from nuclear power, compared to 70% in France and 19% in the United States.

Reaching its 2047 target would require an extraordinary buildout of reactor capacity over the next two decades and a corresponding, sustained surge in uranium demand.

Australia holds more than one-third of the world’s known uranium reserves, making it the largest reserve holder on the planet.

However, Australia has historically been unable to supply uranium directly to India because the two countries lacked the bilateral safeguards agreement required under Australia’s strict uranium export policy.

That is what the agreement being reported this week would change.

What it means for Boss Energy shares

Boss Energy surged 12.2% in a single session on 3 July after meeting its revised FY26 production guidance of 1.41 million pounds of uranium at its Honeymoon project.

That bounce confirmed the market is still willing to respond positively to strong operational news.

A confirmed nuclear deal with India would be a far more significant catalyst than a production update. This is because it would open a new, large export market for Australian uranium producers at a time when global uranium demand is already strengthening.

Shaw and Partners carries a buy rating on Boss Energy with a price target of $3.15, implying significant upside. These ratings were based on an upgraded uranium price forecast that sees the fuel reaching US$175 per pound in 2027.

The broker described the uranium market backdrop as one where:

Energy security, decarbonisation and AI-driven power demand are converging. Nuclear is no longer a fringe solution. It is becoming central to energy policy.

The risks investors need to understand

Boss Energy is not a risk-free investment, and the India deal has not yet been confirmed.

The Honeymoon project has had a difficult operational history, with production guidance cut twice in FY26 and a new feasibility study still in progress.

A new feasibility study is targeting completion in Q3 calendar year 2026, which will determine the long-term production outlook for the mine.

Until that study is complete, there is uncertainty about what Honeymoon can produce at scale, and at what cost.

Furthermore, uranium spot prices remain volatile, and the India deal, even if signed, would take time to translate into actual contracts and physical uranium deliveries.

Foolish Takeaway for Boss Energy shares

Boss Energy shares are down in 2026 on the back of a difficult operational year.

A nuclear co-operation agreement with India, if signed this week, would be the most significant demand-side catalyst the Australian uranium sector has received in years.

Whether that translates into a sustained recovery for Boss Energy depends partly on the Honeymoon feasibility study delivering a credible long-term production case.

Investors should watch both developments closely in the weeks ahead.

The post Australia may sign a nuclear deal with India this week. What does that mean for Boss Energy shares? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• These are the 10 most shorted ASX shares
• Boss Energy shares surging 12% today on big uranium news
• 6 ASX shares upgraded by experts this week
• Why are these 2 ASX uranium stocks shooting higher today?

Motley Fool contributor Mark Verhoeven 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 Ingenia Communities Group (ASX: INA) share price is in focus today after the company’s securities were temporarily paused pending a further announcement.

What did Ingenia Communities Group report?

• Trading in Ingenia securities has been paused by the ASX as of 10 July 2026
• No earnings or financial metrics were released in this announcement
• Pause is pending a further announcement from Ingenia Communities Group
• Investors are awaiting more information to clarify the reason for the trading halt

What else do investors need to know?

Investors should note that a trading pause does not always signal negative news—it can occur for a range of reasons, such as pending news about transactions, capital raisings, or regulatory matters. It’s a standard ASX procedure to ensure orderly trading and fair disclosure for all shareholders.

Ingenia Communities Group has stated a further announcement will follow, at which point the company is expected to provide more detail behind the trading halt.

What’s next for Ingenia Communities Group?

With securities suspended, all eyes will be on Ingenia’s next update. Whether it’s about a material transaction, major development, or other sensitive information, investors should keep an eye on Ingenia’s ASX releases for developments.

Until the next announcement is released, Ingenia’s share price will remain paused on the ASX. The company’s next statement will likely clarify the situation for shareholders.

Ingenia Communities Group share price snapshot

Over the past 12 months, Ingenia shares have declined 16%, trailing the S&P/ASX 200 Index (ASSX: XJO), which has risen 3% over the same period

View Original Announcement

The post Ingenia Communities Group shares paused pending announcement appeared first on The Motley Fool Australia.

More reading

• Mesoblast shares: Q4 earnings top projections
• Why brokers think Zip shares could soar 50% or more in FY27
• NEXTDC boosts funding with $2.3 billion senior debt facility upsize
• ASX 200 shares vs. US stocks in FY26
• 5 things to watch on the ASX 200 on Friday

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.

Coles Group Ltd (ASX: COL) and Wesfarmers Ltd (ASX: WES) are both high-quality ASX shares with strong positions in Australian retail.

They also share one challenge right now: neither looks especially cheap after strong share price performance.

Coles shares are trading around $23.67, close to the upper end of their yearly range of $20.10 to $24.59. Wesfarmers shares are trading around $90.87, compared with a yearly range of $70.80 to $95.18.

Buying either share near its 52-week low would have been a much easier call. At current prices, I think the comparison becomes more about valuation, income, and how much investors are being asked to pay for future growth.

The numbers favour Coles shares

According to CommSec consensus estimates, Coles is expected to generate earnings per share of 90 cents in FY26 and 96.6 cents in FY27.

Based on the current share price, that puts Coles on a price-to-earnings ratio of around 26.3 times FY26 earnings and 24.5 times FY27 earnings.

Wesfarmers is forecast to generate earnings per share of $2.55 in FY26 and $2.74 in FY27.

That puts Wesfarmers on a much higher price-to-earnings ratio of around 35.6 times FY26 earnings and 33.2 times FY27 earnings.

That is a meaningful gap.

I believe Wesfarmers deserves a premium for its track record, culture, and capital allocation. But when forecast earnings growth appears broadly similar over the next couple of years, I think Coles looks more attractive on a valuation basis.

The dividend yield also points to Coles

The income comparison also favours Coles.

CommSec estimates dividends per share of 75.5 cents in FY26 and 82 cents in FY27. That implies forward dividend yields of around 3.2% and 3.5%.

Wesfarmers is forecast to pay dividends per share of $2.16 in FY26 and $2.33 in FY27. That implies forward yields of around 2.4% and 2.6%.

That difference is useful for investors who want income as well as long-term defensive exposure.

Coles also has a fairly simple appeal. Groceries are a repeat purchase. Customers may change habits, trade down, or shop around more carefully, but food and household essentials remain part of everyday spending.

That gives Coles a defensive quality I value in the current environment.

I still like Wesfarmers shares

I would still be happy to buy Wesfarmers shares for the long term.

The company has an excellent record of building strong retail businesses, managing capital carefully, and reinvesting in areas where it sees attractive returns.

I also like the breadth of the group. Wesfarmers gives investors exposure to more than one consumer category, and that flexibility has helped it create value over many years.

The issue today is price.

At more than 33 times FY27 estimated earnings, the share price already reflects a lot of confidence. I can see the case for buying a small amount now and adding more if the valuation becomes more reasonable.

Foolish takeaway

I think Coles shares are the better buy today.

Wesfarmers remains a wonderful long-term business, and I would be happy to own it. But Coles offers the cleaner case right now because it trades on a lower forecast earnings multiple and provides a higher forecast dividend yield.

When two high-quality defensive ASX shares both sit near the top of their yearly ranges, I think valuation has to carry more weight.

At current prices, I would buy Coles first and keep Wesfarmers on my long-term buy list.

The post Which is the best buy, Coles shares or Wesfarmers shares? appeared first on The Motley Fool Australia.

More reading

• How to go from zero to $50,000 with ASX shares
• How much do I need in my superannuation to get $52,000 per year in passive income?
• Wesfarmers shares are closing in on record highs. Buy, hold or sell?
• These ASX shares could generate $10,000 per year in passive income
• 2 ASX blue-chip shares offering big dividend yields

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

Zip Co Ltd (ASX: ZIP) shares have enjoyed an impressive rebound recently, climbing 31% over the past month as investor confidence has returned to the buy now, pay later (BNPL) provider.

Despite that strong run, the stock remains down around 6% year to date. Over the past 12 months, however, Zip shares have gained approximately 2%.

Looking at the bigger picture shows why many investors still see plenty of recovery potential. Zip shares remain about 64% lower than they were five years ago, while the S&P/ASX 200 Index (ASX: XJO) has risen roughly 20% over the same period.

With analysts becoming increasingly optimistic about the company’s earnings outlook heading into FY27, could the recovery still have plenty of room to run?

Strong financial momentum

One of the biggest reasons for the improving sentiment is Zip’s strengthening financial performance.

The fintech company’s results have consistently improved over the past several quarters as management has focused on profitability, disciplined lending, and tighter cost controls.

Its third-quarter FY26 update in April highlighted accelerating momentum across the business. Importantly, management upgraded its FY26 group cash EBITDA guidance to at least $260 million, up from previous guidance of around $248.6 million.

The earnings upgrade demonstrated that Zip is successfully balancing growth with profitability. That’s a key milestone for Zip shares after several challenging years for the BNPL sector.

The US is becoming increasingly important

Another major attraction is Zip’s expanding opportunity in the United States.

The company has been investing heavily in growing both its customer base and product offering in what is now its largest market. The US BNPL market remains significantly underpenetrated compared with Australia and continues to benefit from increasing consumer adoption and merchant demand.

Late last year, Zip expanded its partnership with programmable financial services company Stripe, allowing more merchants to offer Zip’s payment solutions through Stripe’s platform. The partnership provides access to a large network of businesses and could accelerate merchant acquisition over time.

Adding to the opportunity, Zip is pursuing a dual listing on the Nasdaq. A US listing of Zip shares could improve the company’s visibility among American investors, increase liquidity, and potentially support future expansion initiatives in its largest growth market.

Fierce competition, increased volatility

Of course, investors should remember that Zip operates in a highly competitive industry.

The company faces competition from Klarna, PayPal, Block’s Afterpay business, traditional banks, and credit card providers. Intense competition could weigh on margins or slow customer growth.

As a growth stock, Zip is also sensitive to changes in investor sentiment, interest rates, consumer spending, and employment conditions. That means Zip shares are likely to remain more volatile than many defensive businesses.

What are the experts saying?

According to TradingView data, analysts remain overwhelmingly positive on Zip’s outlook.

Of the 12 analysts covering the company, 11 have either a buy or strong buy recommendation. Their average price target of $4.17 suggests around 36% upside from current levels.

Some analysts are even more bullish, with the highest price target sitting at $5.59 per share, implying potential upside of roughly 82%.

United Capital Partners (UCPS) is also constructive on Zip shares, arguing that the market is underestimating the company’s disciplined cost management and long-term US growth opportunity.

The broker has a 12-month price target of $4.85, which implies potential upside of around 58%. If Zip continues delivering stronger earnings while successfully expanding in the US, that target may not be out of reach.

The post Why brokers think Zip shares could soar 50% or more in FY27 appeared first on The Motley Fool Australia.

More reading

• Mesoblast shares: Q4 earnings top projections
• Ingenia Communities Group shares paused pending announcement
• NEXTDC boosts funding with $2.3 billion senior debt facility upsize
• ASX 200 shares vs. US stocks in FY26
• 5 things to watch on the ASX 200 on Friday

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 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 NEXTDC Ltd (ASX: NXT) share price is in focus after the company announced a major boost to its senior debt facilities, increasing available funding to $8.7 billion to support ongoing data centre expansion and growth.

What did NEXTDC report?

• New senior debt facilities of $2.3 billion secured, upsized from the $1.8 billion announced in May 2026
• Total available senior debt facilities increase from $6.4 billion to $8.7 billion
• Margins on new facilities broadly consistent with existing debt of similar tenor
• Proceeds to support data centre development, recent customer contract wins, and general corporate purposes

What else do investors need to know?

NEXTDC’s upsized debt reflects ongoing strong demand for its services and continued support from a broad syndicate of local and international banks. The funding builds upon recent capital raising initiatives, including a $1.5 billion Entitlement Offer, $1.7 billion Hybrid Securities Offer, and a $750 million Wholesale Notes Offer, further diversifying NEXTDC’s funding sources.

Financial close of the new facilities is expected in mid-July 2026, pending satisfaction of standard conditions. The company’s growing capital base positions it to accelerate growth following a record increase in contracted utilisation earlier this year.

What’s next for NEXTDC?

With expanded funding in place, NEXTDC is well positioned to support capital expenditure linked to recent contract wins and continued rollout of state-of-the-art data centres. The company maintains a strong focus on operational sustainability, leveraging renewable energy and efficiency, supporting further growth in Australia’s digital infrastructure market.

Investors can expect NEXTDC to continue innovating and scaling its platform to meet rising demand for secure, sustainable, and connected cloud and IT infrastructure solutions.

NEXTDC share price snapshot

Over the past 12 months, NEXTDC shares have risen 21%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post NEXTDC boosts funding with $2.3 billion senior debt facility upsize appeared first on The Motley Fool Australia.

More reading

• ASX 200 shares vs. US stocks in FY26
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Is the ASX 200 heading for a third straight fall as oil prices jump?
• Steadfast Group extends exclusivity on $6.00 per share takeover offer

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.

ASX tech shares had a rough FY26.

WiseTech Global Ltd (ASX: WTC) was the worst performer in the entire ASX 200 in FY26, dropping 70% in value.

In May, it handed over its status as the ASX’s largest technology company by market capitalisation to Xero Ltd (ASX: XRO). Xero has itself fallen significantly from its all-time high of $196.52.

Both need a turnaround.

But the path back for these ASX tech shares looks very different for each.

WiseTech: The turnaround is a governance story more than a business story

The crucial thing to understand about WiseTech’s collapse is what did not cause it.

The CargoWise platform remains used by 23 of the world’s top 25 global freight forwarders. Switching costs are so high that customer retention has remained strong throughout the governance turmoil.

Importantly, WiseTech has maintained its FY26 guidance, expecting revenue of US$1.39 billion to US$1.44 billion with EBITDA margins of 40% to 41%.

The business has not broken. What has broken is investor trust in the governance around the business. This has been driven by a series of allegations against founder Richard White, including an AFP investigation into alleged trafficking matters.

Since then, a new Chair has been appointed, which is the first concrete governance action since the Richard White allegations escalated.

For a sustained WiseTech turnaround, the market needs three things: resolution of the legal matters, clear separation between founder influence and board independence, and an FY26 full-year result in August that confirms guidance has been met.

Bell Potter carries a buy rating with a $71.75 price target, noting that, depending on the August result, FY27 forecasts could prove conservative.

JP Morgan, however, downgraded WiseTech to hold with a $40 target following the governance concerns. This serves to illustrate how divided the broker community is on the timing of the recovery.

The business case for WiseTech is not in dispute. The governance case is.

Xero: The turnaround is about valuation and execution for this ASX tech share

Xero’s challenge is different.

There are no governance concerns, no AFP investigations, and no allegations against management.

The FY 2026 result delivered 31% revenue growth to $2.75 billion, with the US business surging 240% on the back of the Melio acquisition.

The reason Xero shares have fallen from their peak is almost entirely about valuation.

At its high, Xero traded at well over 100 times earnings, a multiple that assumed many years of rapid, uninterrupted growth.

As interest rates rose and growth investors rotated into value and resources, the multiple compressed dramatically, even as the underlying business kept delivering.

The turnaround for Xero is therefore simpler but not necessarily faster in practice.

It requires the market to reaccept a premium valuation for a high-growth SaaS business, which in turn requires interest rates to fall, earnings growth to accelerate, and the US expansion to keep demonstrating that FY26’s 240% revenue growth was not a one-off.

On the broker level, Goldman Sachs carries a buy rating on Xero with a $205 price target, implying significant upside at current levels.

Perhaps encouragingly, the company has authorised a NZ$550 million buyback for FY27, a direct signal of management’s confidence in the share price at current levels.

The common thread for these ASX tech shares

Despite their different problems, both stocks share one thing: the market has sold them down in a way that disconnects the share price from the operational reality of each business.

Another article on the Motley Fool AU noted recently that

WiseTech is grappling with rebuilding investor confidence after governance-related uncertainty, while Xero is navigating a broader reassessment of software valuations. In both cases, the recent rally may reflect a shift in sentiment rather than a full reversal of trend.

A turnaround for WiseTech requires governance resolution. A turnaround for Xero requires the market to re-price a business that has kept growing, even as the share price has not.

Both are possible in FY27, but neither is guaranteed.

Foolish Takeaway

WiseTech and Xero are two very different ASX tech shares wearing the same label.

WiseTech needs to fix its governance before the share price can sustainably recover, regardless of how good the CargoWise business actually is. Xero needs the macro environment and its own US execution to align before the market will restore the premium valuation the business arguably deserves.

Patient investors in both stocks are betting that FY27 delivers on those conditions.

It is a reasonable bet, but not a certain one.

The post Two ASX tech shares hinge on rebuilding trust and growth. Here’s how they can turn around appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares I’d buy and hold for life
• How low could WiseTech shares go?
• Why the WiseTech share price is sinking 7% today
• 2 ASX shares tipped to grow 50% or more in the next 12 months
• These ASX tech shares crashed hard. Could they double from here?

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