Tag: Stock pick

Recent market volatility has been very disappointing, but every cloud has a silver lining.

On this occasion, the silver lining is that many ASX growth shares are trading at a deep discount to what investors were willing to pay in 2025.

With that in mind, here are three ASX growth shares that analysts believe are buys with significant upside potential. Let’s see what they are recommending:

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat Leisure could be an ASX growth share to buy according to analysts at Bell Potter.

It is a gaming technology company with a leadership position covering poker machines, real money gaming, and mobile games.

The broker likes Aristocrat due to its belief that “ALL’s leading R&D investment will drive market share gains” over the medium term.

It recently put a buy rating and $80.00 price target on its shares. Based on its current share price, this implies potential upside of approximately 55% for investors.

NextDC Ltd (ASX: NXT)

The team at Morgans sees potential for NextDC shares to rise strongly from current levels.

It is one of the leading data centre-as-a-service providers in the Asia-Pacific region. From these centres, it delivers critical power, security, and connectivity for the global cloud platform, enterprise, and government markets.

Demand has been incredibly strong for capacity in its centres due to the shift to the cloud and the artificial intelligence boom. The good news is that Morgans thinks this trend can continue for some time to come.

The broker has a buy rating with a $19.00 price target. Based on its current share price, this implies potential upside of approximately 50% for investors between now and this time next year.

TechnologyOne Ltd (ASX: TNE)

A third ASX growth share that could deliver big returns for investors after recent market volatility is TechnologyOne.

It is a leader in the enterprise software space, providing mission-critical systems to governments, universities, and corporates.

The company’s shift to a software-as-a-service model has been a huge success, locking in sticky recurring revenue and improving profitability and earnings visibility. It has also underpinned consistently strong revenue and earnings growth, and management believes it can continue. It has stated its ambition of doubling in size every five years, which bodes well for shareholder returns over the remainder of the 2020s.

In the meantime, the team at UBS is positive on the tech stock. It currently has a buy rating and $38.70 price target on its shares. Based on its current share price, this implies potential upside of 75% for investors over the next 12 months.

The post These beaten down ASX growth shares could rise 50% to 75% appeared first on The Motley Fool Australia.

More reading

• 3 quality ASX shares to buy with $10,000
• Why these battered ASX shares deserve a second look
• Top brokers name 3 ASX shares to buy next week
• What the stronger Australian dollar means for your shares
• Brokers name 3 ASX shares to buy today

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

The owners of Zip Co Ltd (ASX: ZIP) shares have seen their investment dive 50% since October 2025, as the chart below shows. This could be a good time to consider the attractiveness of the business and look at interesting projections of dividend payments in the years ahead.

The buy now, pay later (BNPL) business has been caught up in the sell-off of ASX growth shares, which has been particularly painful for businesses in the technology sector.

But, the more a company is beaten up, the bigger the rebound can be if it regains investor confidence.

Let’s take a look at what’s expected of Zip shares when it comes to dividends.

FY26

Broker UBS recently noted some negatives that the business has faced over the last few months, which has caused share price volatile.

First, seven US state attorneys general launched an inquiry into BNPL.

President Trump also suggested there be a 10% interest rate cap on credit cards. But, the broker’s analysts think this could be a positive for BNPL as reduced credit availability could drive consumers to BNPL. However, if BNPL fees are treated as interest, then the effective interest rate would be around 24%. But, UBS’ US team think rate caps are unlikely to be implemented.

UBS said that, assuming rate caps are not implemented, it sees the fundamentals at Zip as “continuing to remain strong, presenting an attractive opportunity in the stock”.

The broker forecasts that Zip’s total transaction value (TTV) may have grown by 34% in the second quarter of 2025, with 46% growth in the US.

Zip’s net bad debt is projected to be 1.63% in the first half of FY26, up from 1.34% in the fourth quarter of FY25.

For the first half of FY26, UBS is projecting that the business could generate cash EBTDA of $128 million, with forecast active customers of 4.77 million in the US and 2.03 million in ANZ.

FY26 as a whole is expected to see $1.38 million of revenue and $118 million of net profit. However, no dividend is expected.

FY27

Owners of Zip shares are expected to see the net profit of the business climb substantially in the 2027 financial year to $167 million. But, still no dividend is projected.

FY28

Excitingly, the 2028 financial year could be the first year that shareholders see a dividend per share paid out, which would be its first passive income payment. The broker is forecasting that the business could make $220 million of net profit in this year.

UBS forecasts that the BNPL business could deliver an annual dividend per share of 9 cents. At the current Zip share price, that translates into a dividend yield of 3.8% at the current Zip share price. If it were fully franked, the grossed-up dividend yield would be 5.4%, including the franking credits.

FY29

Analysts are expecting the company’s net profit to continue climbing in FY29 to $274 million, which would be pleasing ongoing growth.

However, the company is projected to deliver another dividend of the same level of 9 cents per share, which would translate into the same dividend yields I calculated in FY28.

FY30

The BNPL business could have the best year of this series of projections in FY30, according to UBS’ forecasts.

The broker currently suggests that the business could pay an annual dividend per share of 20 cents. A lot could happen between now and then – UBS is forecasting the business could generate $350 million of net profit in FY30.

At the current Zip share price, that potential payout could be a cash dividend yield of 8.4%, or 12% grossed-up for franking credits.

UBS has a buy rating on the business, with a price target of $5.20, suggesting it could more than double within the next year.

The post Here’s the dividend forecast out to 2030 for Zip shares appeared first on The Motley Fool Australia.

More reading

• Forget this ASX 200 share and buy Telstra and Zip shares: Experts
• ASX 200 financials flew but tech and mining shares faltered last week
• I would invest $50,000 in these ASX 200 shares if I were aiming to beat the market in 2026
• How could I turn $500 a month into $50,000 with ASX shares?
• Forget Zip shares, I’d buy this fintech stock instead

Motley Fool contributor Tristan Harrison 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 Challenger Ltd (ASX: CGF) share price is in focus today after the company confirmed it’s in advanced talks to jointly acquire Pepper Money Ltd (ASX: PPM) alongside the Pepper Group. Challenger emphasised the potential acquisition would provide long-term access to fixed income assets and support its strategic growth plans.

What did Challenger report?

• Challenger confirmed discussions to potentially acquire up to 25% of Pepper Money Limited shares via a scheme of arrangement.
• No intention to raise common equity for the transaction; Challenger cites significant capital flexibility.
• The proposed deal is intended to be accretive to Challenger’s earnings per share if completed.
• Discussions remain incomplete, with no certainty that the transaction will proceed.

What else do investors need to know?

Challenger believes a stake in Pepper Money would give it valuable, ongoing access to fixed income assets. This aligns with Challenger’s strategy of supporting growth and generating strong returns for shareholders.

The company stresses its disciplined approach to capital allocation, reiterating there are no plans for a capital raising to fund the deal. Challenger’s management notes the offer remains subject to ongoing negotiations and market disclosure obligations.

What’s next for Challenger?

Looking ahead, Challenger says it will continue to update the market as talks with Pepper Group and Pepper Money progress. Any agreement reached is likely to be structured so that Challenger holds up to a 25% stake, supporting its earnings and growth strategy, without diluting shareholders.

Long term, Challenger sees strategic investments like this as a way to boost client offerings and enhance returns, but the company remains committed to a careful, measured approach.

Challenger share price snapshot

Over the past 12 months, Challenger shares have risen 46%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post Challenger flags talks on Pepper Money acquisition appeared first on The Motley Fool Australia.

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• 2 ASX 200 shares that could be top buys for growth
• West African Resources delivers major drilling results at Sanbrado
• CAR Group delivers strong H1 FY26 earnings and reaffirms outlook

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 recommended Challenger. 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.

The CAR Group Ltd (ASX: CAR) share price is in focus today after the company announced H1 FY26 results showing reported revenue up 8% to $626 million and net profit after tax rising 16% to $143 million.

What did CAR Group report?

• Reported revenue: $626m, up 8% on prior corresponding period (pcp)
• Reported EBITDA: $324m, up 11%
• Reported NPAT: $143m, up 16%
• EBITDA to operating cash flow conversion: 95%
• Interim dividend: 42.5 cents per share, up 10%, 30% franked
• Proforma results: Revenue up 13% (constant currency), EBITDA up 12%

What else do investors need to know?

CAR Group’s diversified business model helped drive growth across all key geographies, with double-digit increases in revenue and earnings. In Australia, carsales maintained strong market leadership, benefitting from high-quality user experiences, while newly launched payment products gained traction with over $268 million in vehicle transactions since launch.

Strong results in North America were fuelled by higher demand for premium dealer offerings, and Latin America delivered standout financial results led by webmotors’ expanded leadership and new products. In Asia, Encar grew strongly, launching Guarantee 2.0 and expanding premium services for dealers.

What did CAR Group management say?

Managing Director and CEO William Elliott said:

CAR Group has delivered a strong first half, achieving excellent financial results with double-digit growth across our key financial metrics. This is a great outcome and reflects the strength of the business model and the continued execution of our strategy.

Customer experience is our core focus and I am proud of our teams across the globe who continue to make buying and selling vehicles easier for consumers. Supported by our leading brands and our continued investment in AI, we are well positioned to enhance the vehicle buying and selling journey.

What’s next for CAR Group?

CAR Group reaffirmed its FY26 outlook, expecting proforma revenue growth of 12–14% and EBITDA growth of 10–13% in constant currency. The company anticipates continued strong performance across Australia, North America, Latin America and Asia, with each region poised for further yield and product penetration.

Strategic priorities include expanding AI-driven features, particularly via the new global CG/lab hub in Brazil, and growing consumer payments, premium dealer products, media, finance, and data offerings across all markets.

CAR Group share price snapshot

Over the past 12 months, CAR Group shares have declined 36%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.

View Original Announcement

The post CAR Group delivers strong H1 FY26 earnings and reaffirms outlook appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CAR Group Ltd. 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.

The global stock market and the ASX share market are both experiencing significant volatility, particularly in the technology and wider ‘growth’ segments. It’s at times like this that ASX defensive shares may be viewed as attractive.

Large declines don’t happen without a reason. They are usually sparked because the market thinks the company’s future earnings power is being reduced.

In this case, it seems that many investors believe future earnings may not be as strong as previously expected.

In this case, there are heightened fears that artificial intelligence (AI) may be able to challenge existing business models, particularly ones that utilise technology to deliver their service.

So, in this circumstance, it could be an idea to look at ASX defensive shares.

Why ASX defensive shares could make sense right now

If fast-growing businesses aren’t expected to see as much profit generation, then perhaps it could be a good idea to look at names that could deliver reliable earnings. If profit can grow as expected, then this could help provide support for the share price and perhaps even enable a higher share price if investors are looking for a safe haven.

Additionally, some ASX defensive shares may be viewed as ideas for passive income. The stable earnings can also help provide stable and growing dividends from those sorts of businesses.

Which reliable businesses I’d look at

There are a few different areas of the market that I think could provide investors with underlying earnings stability over the long-term. Of course, there can be no guarantee share prices won’t be volatile in the short-term – that is just what happens with the share market occasionally.

Real estate investment trusts (REITs) are a good sector because of how they can generate resilient defensive rental income and pay distributions to investors. I’d invest in businesses like Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW) and Rural Funds Group (ASX: RFF).

Businesses involved in providing essential services to their customers could be useful ASX defensive share buys. I’m thinking of names like Telstra Group Ltd (ASX: TLS), APA Group (ASX: APA) and Propel Funeral Partners Ltd (ASX: PFP).

Defensive food businesses could be smart buys – we all need to eat. I’m thinking of names like Coles Group Ltd (ASX: COL) and Rivco Australia Ltd (ASX: RIV).

Finally, diversified businesses with defensive cash flow generation could also be smart long-term choices, such as Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) and Wesfarmers Ltd (ASX: WES).

I think most, if not all, of the above businesses are capable of growing their earnings over the long-term, even if AI affects the tech sector.

The post Is this the right time to invest in ASX defensive shares? appeared first on The Motley Fool Australia.

More reading

• Experts name NAB and these ASX 200 shares as sells
• These buy-rated ASX dividend stocks offer 4% to 6% yields
• Forget this ASX 200 share and buy Telstra and Zip shares: Experts
• ASX 200 financials flew but tech and mining shares faltered last week
• How could I turn $500 a month into $50,000 with ASX shares?

Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. 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.

Certain ASX-listed exchange-traded funds (ETFs) could be great buys today because of everything that’s happening in the global share market amid worries about how AI could impact various businesses.

How are we supposed to invest during times like this? Well, it could be a compelling idea to look at businesses that have been heavily sold off, and consider whether the decline has been overdone.

It may also be a smart idea to look at investments that are high-quality and can continue delivering good returns over time.

Betashares Global Quality Leaders ETF (ASX: QLTY)

This portfolio aims to give investors exposure to a portfolio of 150 global stocks.

For a business to be chosen for this portfolio, there are four elements that decide how high-quality it is.

First, there’s the return on equity (ROE) – how much profit it generates compared to how much shareholder money is retained within the business.

Second, the debt-to-capital ratio. Is the balance sheet healthy in terms of how much debt it has?

Third, does it have good cash flow generation ability? It’s important for profit to translate into money hitting the bank account.

Fourth, are earnings stable? If profit doesn’t typically fall, that’s good downside protection and a tailwind for capital gains.

These 150 businesses come from a variety of countries and sectors, giving the business diversification – it’s not just a tech fund.

Returns have been solid over the long-term – it returned an average of 13.8% per year between November 2018 and January 2026.

Global X S&P World Ex Australia GARP ETF (ASX: GARP)

This ASX ETF aims to give investors exposure to a high-quality portfolio of great businesses that are trading at great prices. GARP stands for growth at a reasonable price.

The portfolio has 250 names in it, which come from multiple countries and sectors, so this fund can also provide pleasing diversification.

There are multiple elements that go into deciding which businesses can make it into this portfolio.

For starters, potential businesses need to have a good level of growth. So, the 3-year sales per share and earnings per share (EPS) growth are considered.

They need to be trading at good value, so the ASX ETF looks at the earnings to price ratio, which is another way of evaluating the price/earnings (P/E) ratio.

Finally, the companies must be high-quality. So, the fund looks at the financial leverage (meaning debt levels) and return on equity of the businesses involved.

The GARP ETF has returned an average of 18% since inception in September 2024, so the strategy is working. But, past performance is not a guarantee of future performance. Even so, I’m optimistic about this ASX ETF’s future.

The post I think these 2 ASX ETFs are unmissable buys in this sell-off appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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.

Knowing which ASX 200 shares to avoid can be just as important as knowing which ones to buy for the overall health of a portfolio.

With that in mind, let’s now take a look at three shares experts are telling investors to sell, courtesy of The Bull.

Here’s what they are bearish on this week:

National Australia Bank Ltd (ASX: NAB)

Family Financial Solutions is urging investors to sell NAB shares. It believes the big four bank is “materially overvalued” and thinks investors would be better off redeploying capital elsewhere. It explains:

NAB is Australia’s largest business bank, benefiting from an oligopolistic market structure. Statutory net profit of $6.759 billion in full year 2025 was down 2.9 per cent on the prior corresponding period. A credit impairment charge of $833 million was up from $728 million in the previous year. In our view, the shares are materially overvalued and leave little margin for error. Capital is better redeployed into discounted quality.

Northern Star Resources Ltd (ASX: NST)

Alto Capital believes that this gold giant is an ASX 200 share to sell this week. It believes that the risk-reward is unfavourable for buyers given how much upside is already built into the gold miner’s share price. It explains:

Northern Star’s share price has performed strongly, supported by higher gold prices and improved sentiment towards large market capitalisation producers. However, the company’s most recent production report disappointed, with output and cost guidance undershooting market expectations. While the longer term outlook for gold remains positive, recent operational softness tempers near term confidence. With much of the upside already reflected in the share price, the risk-reward balance favours taking profits at current levels.

Wesfarmers Ltd (ASX: WES)

The team at Family Financial Solutions has also named this conglomerate as an ASX 200 share to sell.

It thinks that the Bunnings and Kmart owner’s shares are trading at a lofty premium and better returns could be achieved elsewhere. It said:

This industrial conglomerate owns high quality businesses, such as Bunnings and Kmart Group. The company is diversified, with other businesses including Officeworks, Wesfarmers Chemicals, Energy and Fertilisers and industrial safety. Diversification is a benefit as it spreads risk. However, in our view, the stock remains significantly overvalued, with optimism already priced in. The stock was recently trading on a lofty price/earnings ratio above 32 times, so it’s exposed to a correction on signs of any weakness. We would be inclined to trim holdings and re-invest the proceeds in stocks offering better value.

The post Experts name NAB and these ASX 200 shares as sells appeared first on The Motley Fool Australia.

More reading

• Is this the right time to invest in ASX defensive shares?
• 5 things to watch on the ASX 200 on Monday
• ASX 200 financials flew but tech and mining shares faltered last week
• How could I turn $500 a month into $50,000 with ASX shares?
• Gold price recovers as reasons for buying ‘remain in place, but are also compounding’

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 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.

I’m always on the lookout for ASX share opportunities that are priced too cheaply for their future prospects. When the entire ASX share market declines amid indiscriminate selling, investors can pick up bargains.

Sell-offs don’t happen for no reason, there’s usually a reason for the fear. Whether that’s because of a pandemic, inflation, AI worries or something else.

Those fears can make investors pause before investing, yet that’s when the best prices are often presented. Who knows how long prices will stay as low as they are? Or the prices could go even lower.

In the last few years, we’ve seen some recoveries happen very quickly, as we saw after the tariff self-off last year and the COVID-19 drop in 2020.

With many share prices still at their lowest point in months or in some cases years, I think this could be a great time to invest.

Why this is a great time to invest in ASX shares

I think that Warren Buffett, who led Berkshire Hathaway to become the huge business it is today, has given some very useful pieces of advice over time on how to consider times like this:

If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period?

Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall.

Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.

There are some ASX tech shares that are now down more than 50% from their peak within the last year or so.

When a business falls 50%, if it were to recover back to that previous level then that would be a rise of 100%. Of course, we shouldn’t necessarily anchor our share price expectations to where it has been at previous levels. It could take a long time to recover.

But, at this lower price, the business doesn’t have the same level of expectations built into the valuation, so it’s a much better time to invest. Companies like Pro Medicus Ltd (ASX: PME), Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC) have fallen heavily. These three companies could be primary candidates to bounce back the most if they regain the confidence of the market.

I think this period is the right time to scan the ASX share market for opportunities. I’m planning to put money to work this week.

The post Why I’m planning to act this week and buy ASX shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Earnings preview: How do experts rate these blue-chip ASX stocks reporting this week?
• A rare buying opportunity in 1 of Australia’s top shares?
• What the stronger Australian dollar means for your shares
• Why are ASX 200 tech shares diving 13% this week?

Motley Fool contributor Tristan Harrison has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Berkshire Hathaway and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you wanting to give your income portfolio an extra boost this month?

If you are, then it could be worth checking out the three ASX dividend stocks in this article.

They have been rated as buys by analysts at Bell Potter and are being tipped to offer attractive dividend yields in the near term. Here’s what you need to know about them:

Centuria Industrial REIT (ASX: CIP)

Bell Potter thinks that Centuria Industrial REIT could be an ASX dividend stock to buy right now

It is a leading industrial property company that owns a portfolio of high-quality industrial assets. These assets are situated in urban infill locations throughout Australia where demand is strong.

Bell Potter believes the company’s assets have positioned it to pay dividends per share of 16.8 cents in FY 2026 and then 17.3 cents in FY 2027. Based on its current share price of $3.15, this would mean dividend yields of 5.3% and 5.5%, respectively.

The broker currently has a buy rating and $3.65 price target on its shares.

Elders Ltd (ASX: ELD)

The team at Bell Potter is also positive on Elders and sees it as an ASX dividend stock to buy now.

Elders is an agribusiness company that provides rural and livestock services, agricultural inputs, and real estate services to Australia’s farming sector.

Bell Potter believes the market is undervaluing the company’s Delta Agribusiness acquisition and highlights that the base business is performing well and has multiple growth drivers.

With respect to income, it is forecasting Elders to pay fully franked dividends of 43 cents per share in FY 2026 and then 45 cents per share in FY 2027. Based on its current share price of $6.80, this would mean dividend yields of 6.3% and 6.6%, respectively.

Bell Potter has a buy rating and $9.45 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

A third and final ASX dividend stock that analysts are tipping as a buy for income investors is Universal Store.

It is a growing youth fashion retailer behind the Universal Store, Thrills, and Perfect Stranger brands.

Bell Potter highlights that Universal Store has been performing well in a difficult consumer environment. The good news is that it believes this positive performance can continue thanks to its store rollouts and private label expansion.

The broker expects this to support fully franked dividends of 37.3 cents per share in FY 2026 and 41.4 cents per share in FY 2027. Based on its current share price of $8.61, this equates to dividend yields of 4.3% and 4.8%, respectively.

Bell Potter currently has a buy rating and $10.50 price target on its shares.

The post These buy-rated ASX dividend stocks offer 4% to 6% yields appeared first on The Motley Fool Australia.

More reading

• Is this the right time to invest in ASX defensive shares?
• Why Beach Energy, Elders, Maas, and Neuren shares are dropping today
• Guess which ASX 200 stock is falling on CEO news
• Elders appoints René Dedoncker as next CEO in planned succession
• Why these ASX dividend shares could be top picks for income investors in February

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 Elders and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Lotus Resources Ltd (ASX: LOT) shares were under pressure last week.

The ASX uranium stock tumbled into the red after completing a capital raising.

Is this a buying opportunity for investors looking for exposure to the chemical element? Let’s see what analysts at Bell Potter are saying about the miner.

What is the broker saying?

Bell Potter notes that Lotus Resources’ capital raising was necessary to strengthen its balance sheet after a tough period. It believes the ASX uranium stock is now covered for the next nine months of operation. The broker explains:

LOT announced it had intended to raise A$76m via an institutional placement, and a further $5m via a SPP to support the ongoing ramp up of the Kayelekera uranium project. Production in 2Q of 70klbs U3O8 (drummed) was impacted by sulphuric acid availability (shortages) and logistical issues (transportation). LOT spent A$39m in capital over the quarter, finishing with A$56m in cash.

With the cash-flow conversion being further drawn out on delays to qualification testing from convertors (Orano, Cameco and Converdyn), cash was going to be tight heading into the end of CY26. The top up should see them through the next ~9 months of operations, barring any further disruptions.

While Bell Potter acknowledges that Lotus Resources is not quite out of the woods, it sees light at the end of the tunnel. It said:

Acid and power: The two key considerations targeted under the restart as being critical to lowering operating costs at Kayelekera. The acid plant should commence commissioning in the current quarter, which will reduce the overall dependence on imported sulphuric acid. The grid connection is scheduled for 4QCY26, which should also lower operating costs, which accounted for ~18% of Opex when Kayelekera previously operated.

Our current estimate of operating cash burn is ~A$16m pq going to A$37m pq at full capacity, meaning the business has ~$12m of operating expense runway. Capital projects remaining in the pipeline include the TSF lift and grid connection. With qualification for the three convertors coming to a protracted end, LOT will look for first shipments in June, with ~6 shipments commencing per quarter on a steady state basis. This should see cash receipts pick up in Sept-Dec, depending on the destination of the sale. LOT have contracted 1Mlbs for CY26, and we estimate production of 1.4Mlbs over the same period, as such, LOT has limited earnings leverage to the recent move in spot uranium prices.

Should you buy this ASX uranium stocks?

According to the note, the broker has retained its speculative buy rating with a trimmed price target of $3.70 (from $4.00).

Based on its current share price of $2.08, this implies potential upside of almost 80% over the next 12 months.

Though, given its speculative rating, this investment would only be suitable for investors with a high tolerance for risk.

Commenting on its recommendation, Bell Potter said:

We make adjustments to our valuation, which includes adjusting for the recent 11.5:1 consolidation, and the increase in shares on issue assuming completion of the capital raise. Adjustments to timing and volume of sales (and cash receipts) have also been made. LOT are going through the ramp-up of Kayelekera, as such, financial performance is likely to be volatile and difficult to predict.

The post Why this ASX uranium stock could rocket almost 80% appeared first on The Motley Fool Australia.

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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 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.