Tag: Stock pick

A stock doesn’t climb more than 120% in a few months without drawing strong investor attention.

Elsight Ltd (ASX: ELS) has been one of those names in 2026, riding a wave tied to defence and autonomous systems.

The shares are down 5.16% to $6.80 in afternoon trade after the company released its Q1 update.

Even so, the recent run still holds up.

The latest numbers add more detail to what has been building across the business.

Here’s what came through.

Revenue keeps pushing higher

Elsight reported another record quarter, with revenue reaching approximately US$11.6 million.

That marks its 5th consecutive quarter of record revenue and a 12-fold increase compared to the same period last year.

Recurring revenue also continues to build. The company generated US$1.3 million from software licences, cloud services, and connectivity subscriptions, representing 11% of total revenue.

Cash flow remained positive, with net cash from operations of US$3.99 million. Cash on hand rose to US$64 million by the end of March.

There were no material cost overruns or operational issues flagged during the quarter.

Defence contracts and pipeline still expanding

A large part of that growth continues to come from defence.

Elsight delivered units tied to a US$21.2 million contract signed in late 2025 and secured further orders, including a US$460,000 contract from a US public safety customer.

The company is also progressing through the final phase of a US Defence Innovation Unit project, while gaining access to SOCOM’s OTA contracting framework.

The latter opens the door to faster procurement pathways with US defence agencies.

Activity across drone and autonomous programs is also picking up. Engagement is increasing across the US Department of Defense Drone Dominance initiatives, as well as with defence contractors and integrators.

The broader backdrop is helping. Defence budgets are rising globally, with a growing focus on autonomous systems, drones, and secure connectivity in contested environments.

And Elsight’s Halo technology sits directly within that area of demand.

New products and commercial expansion underway

Beyond defence, the company is starting to expand its product offering.

Elsight confirmed the soft launch of its GNSS-denied positioning solution, designed for environments where traditional GPS signals are unreliable.

That represents a step toward becoming a multi-product business, rather than relying on a single connectivity platform.

Its stealth initiative is also moving closer to commercialisation. The business unit has advanced to proof of concept stage, with initial customer engagement already underway.

Management expects first paying customers during CY2026, although early revenue contribution is likely to be modest.

Commercial adoption is also improving, supported by regulatory progress around drone operations and beyond visual line of sight use cases.

Foolish Takeaway

Today’s drop doesn’t change much.

Elsight is still delivering rapid revenue growth, building recurring income, and adding to its contract base.

At the same time, exposure to defence and autonomous systems continues to expand, with more programs moving from testing into real deployment.

After a 120% run, short-term weakness is not unusual.

If contract wins convert into revenue and new products gain traction, the current momentum may still not be fully reflected.

The post Drones, defence, and demand: Why this ASX stock is running hot in 2026 appeared first on The Motley Fool Australia.

More reading

• Why Eden Innovation, Elsight, Paladin Energy, and Zip shares are racing higher today
• Looking for another DroneShield? Check out this buy-rated ASX defence stock
• Up 1,800% in a year, this ASX stock just hit another record high

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

DroneShield Ltd (ASX: DRO) shares are trading slightly lower today following the release of its quarterly results.

That looks more like broader market weakness than anything in the result itself. The S&P/ASX 200 Index (ASX: XJO) is down almost 1% at the time of writing.

Having reviewed the counter-drone technology company’s numbers, I see a few clear takeaways. 

DroneShield’s growth is still accelerating

The first thing that stands out is just how strong the growth remains.

DroneShield reported revenue of $74.1 million for the quarter, which is up 121% on the prior corresponding period and represents its second-highest quarter on record.

What I find interesting here is that this result actually came in ahead of its recent trading update, driven by the timing of deliveries late in March.

To me, that points to demand continuing to build rather than slow down after a strong 2025. The company is still winning work and converting that into revenue at a rapid pace.

Cash flow and balance sheet strength are improving

The second takeaway is how much stronger the financial position looks.

Customer cash receipts hit a record $77.4 million for the quarter, up 360% year on year. At the same time, DroneShield delivered its fourth consecutive quarter of positive operating cash flow.

The company also finished the period with around $222 million in cash and no debt.

I think that combination is important. It gives DroneShield the ability to keep investing in technology, expand its footprint, and potentially pursue acquisitions without needing to raise capital.

The pipeline and recurring revenue opportunity continue to build

The third takeaway is the scale of what sits ahead.

DroneShield has a sales pipeline of around $2.2 billion across more than 300 projects, which provides a clear line of sight into future opportunities.

On top of that, its software and SaaS revenue is growing quickly, up more than 200% in the quarter.

There is also a longer-term goal to lift recurring revenue to 30% of total revenue by 2030, which could make the business more predictable over time.

When I put that together, it suggests the company is not just growing, but also evolving into a more balanced model with a mix of hardware and software revenue.

Foolish Takeaway

Overall, this update highlights strong growth, positive cash flow, and a large sales pipeline that all point to a business that is still moving forward.

That is why I think today’s share price weakness is worth looking past and could be a buying opportunity.

The post 3 key takeaways from DroneShield’s latest results appeared first on The Motley Fool Australia.

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• Why Northern Star, DroneShield and BHP shares are making waves on Wednesday
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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

Finding undervalued ASX 200 shares can be a key way to generate impressive investment returns.

The trick is in deciding which shares to invest in.

I’ve had a look at some of the stocks that UBS’ broking house has a buy recommendation on, which might be worth including in your portfolio.

In no particular order, here they are.

Cleanaway Waste Management Ltd (ASX: CWY)

Cleanaway this week hosted an investor day, where it introduced the second phase of its Blueprint 2030 strategy, aimed at generating better returns for shareholders.

The company said it was aiming to expand margins by 260 basis points by optimising its branch network and leveraging the scale of its assets.

It was also looking to accelerate growth through investments in new technology, automation, data, and analytics.

UBS said in its note to clients this week that Cleanaway shares had been weak year to date, “which we see as largely attributable to Cleanaway’s more recent history of inconsistent delivery against cash and earnings expectations, alongside heightened investor caution on Middle East related fuel cost inflation”.

UBS said on the positive side, the company flagged that free cash flow was at an inflection point, “and improvements will be supported by the completion of one-off restructuring costs and catch-up tax, reduced capital intensity (post network investment) and benefits from strategic initiatives”.

UBS has a price target of $3.05 on Cleanaway shares, compared with $2.44 currently.

Lynas Rare Earths Ltd (ASX: LYC)

Lynas reported its quarterly production and sales results this week, and UBS said that, despite a number of positive strategic updates throughout the quarter, the company missed consensus estimates for rare earths production.

UBS said sales revenue of $265 million “disappointed” and led it to downgrade the company’s full-year earnings outlook.

The UBS team added:

Still, we remain positive the thematic and with the view that current operational hurdles will ultimately be overcome and expectation of further earnings growth from heavies and magnets, we remain buy rated.

UBS downgraded its price target for Lynas shares from $23.90 to $23.65, still comfortably higher than the current share price of $19.50.

Challenger Ltd (ASX: CGF)

Challenger also released a third-quarter update this week, in which it revealed that its funds under management had fallen by 10% to $104.5 billion.

Managing Director Nick Hamilton said the company had maintained “strong momentum” though, with sales in annuities performing well.

UBS said the update “revealed continued solid momentum across Life sales including longer-duration/higher margin annuity sales”.

The UBS team said Challenger’s price-to-earnings (P/E) ratio was “undemanding” and “we continue to see compelling value and reiterate our Buy rating”.

UBS increased its price target on Challenger shares by 5 cents to $10.10, compared with the current share price of $8.39.

The post UBS names 3 ASX 200 shares to buy right now appeared first on The Motley Fool Australia.

More reading

• Boom or bust: What’s next for Lynas shares?
• New strategy sparks rebound in this $5bn ASX stock – what’s next?
• Why Artrya, Cleanaway, DroneShield, and Nuix shares are pushing higher today
• Why ANZ, Challenger, Hub24, and Lynas shares are dropping today
• Why is everyone talking about Regis Resources, Lynas and Rio Tinto shares on Tuesday?

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 recommended Lynas Rare Earths Ltd. 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.

Pro Medicus Ltd (ASX: PME) shares are sliding again on Tuesday, adding to a weak start to the year.

The healthcare imaging software stock is down 1.15% to $140.59 in afternoon trade. That leaves it roughly 36% lower in 2026 so far.

That is a significant shift for a stock that has historically traded at a premium. It also raises questions about how the market is now pricing the business.

With attention now turning to whether the sell-off has gone too far, the key question is what happens from here.

A high-quality business, but priced for growth

Pro Medicus operates in a niche corner of healthcare technology, supplying imaging software to hospitals and diagnostic providers.

Its Visage platform allows clinicians to process and interpret medical images quickly, which has helped it build a strong position in large hospital networks, particularly in the United States.

The business model is built around long-term contracts, high margins, and deep integration into hospital systems. Once installed, switching costs are high, which supports recurring revenue and strong visibility over future earnings.

That structure has underpinned years of consistent growth. Its interim results showed revenue and earnings continuing to rise, supported by a growing base of contracted work.

More recently, contract momentum has remained strong. Pro Medicus has secured roughly $100 million in wins and renewals since February, often at higher pricing, with cardiology-related upsell starting to gain traction.

Why the share price has pulled back

The weakness in the share price has been driven more by sentiment than operations.

High-growth healthcare and tech stocks have faced a broad de-rating, and Pro Medicus has not been immune. With a price-to-earnings (P/E) ratio still sitting above 60, the stock remains sensitive to changes in market expectations.

That has been reflected in broker updates.

Morgans recently retained its ‘buy’ rating but reduced its price target to $210. The broker noted it has updated its model to reflect more achievable growth assumptions, staging implementation revenue more conservatively and marking foreign exchange to spot.

Even with those changes, it said the business itself remains strong, and long-term demand is still there.

Bell Potter has taken a similar view. It maintained a positive stance while trimming its target price to $226, still implying material upside from current levels.

What investors are watching now

At current levels, the focus is on delivery.

Pro Medicus continues to win new contracts and expand within existing customers, which is central to its growth outlook. The pace of those wins, and how quickly they convert into revenue, will be closely watched.

At the same time, valuation remains a key factor. Even after the recent fall, the stock still trades at a premium to most of the ASX.

That leaves less room for disappointment if growth slows.

Foolish takeaway

Pro Medicus remains a high-quality business with strong margins and recurring revenue.

The share price fall appears tied more to valuation than any clear change in the business.

And broker support is still there, even with lower price targets.

The recent pullback could be an opportunity for long-term investors if the company continues to grow as expected.

The post Are Pro Medicus shares a buy right now? appeared first on The Motley Fool Australia.

More reading

• Are ASX healthcare shares the next to rally?
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• Want to double your money in 2026? This is what I’d buy
• Leading brokers name 3 ASX shares to buy today
• How much could a $10,000 investment in these undervalued ASX 200 shares be worth in a year?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares are tumbling again today as investors continue selling up their interest in the Australian biotech company.

At the time of writing, the shares are down 4.6% to $130.70 a piece.

Today’s decline means the shares are now down 24% for the year to date and 45% lower than a year ago.

Analysts have widely considered the biotech company’s shares oversold and undervalued for some time now, and they’re tipping a significant upside ahead.

TradingView data shows that 12 out of 18 analysts have a buy or strong buy rating on the shares. Another six have a hold rating.

The average target price is $200.35, which implies a potential 53% upside at the time of writing. 

But others are even more bullish and expect the shares could jump 104% to $267.79 in the next 12 months.  

Here’s why CSL shares could surpass $265

There are a few reasons why CSL shares are tipped to fly higher this year. From easing headwinds to robust demand, CSL could write a great growth story in 2026.

CSL has posted some uninspiring financial results over the past 18 months. It also heavily downgraded its FY26 revenue and growth profit guidance in late 2025. The biotech giant lowered its FY26 NPATA growth forecast to 4% to 7% (down from 7% to 10% previously), citing falling US vaccine demand and pricing pressures.

The company has announced a surprise restructure and a shock CEO exit over the past year, spooking investors and sending the company’s share price south. 

But it looks like many of these headwinds are now easing, and the downward pressure on CSL shares could quickly rebound.

At the core of CSL’s business is its plasma-derived medicine division. This includes immunoglobulins, albumin, and clotting factors. 

The company’s blood plasma division dominates the market for rare blood disorders and immunoglobulin products. 

Global demand for plasma therapies is strong and growing, too. There is recurring demand and limited competition, which makes CSL well-placed to carve out a significant portion of the market.

Recent reports indicate that the blood plasma derivatives market was valued at $52.16 billion in 2025. By 2033, it is expected to explode to $104.30 billion.

Not only is demand for its productions booming, CSL is also entering a key investment phase, which could help boost its financials. I’d expect investor confidence will follow suit.

Why hasn’t CSL already started gaining momentum?

It’s a good question, and one that is two-fold.

CSL was once widely viewed as one of the most dependable growth companies on the ASX. But over the past few years, it has experienced a notable slowdown in earnings growth, and investors have lost confidence in its pipeline and expansion plans.

At the same time, the Australian sharemarket has seen a broad market rotation away from healthcare-related stocks in 2026, in favour of defensive assets.

Ultimately, it looks like CSL’s growth trajectory is on the right path. And as soon as investors regain some confidence and jump on board, the share price could quickly be on its way to surpass the $265 mark in 2026.

The post Prediction: CSL shares could surpass $265 in 2026 appeared first on The Motley Fool Australia.

More reading

• Are ASX healthcare shares the next to rally?
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• How much could a $10,000 investment in these undervalued ASX 200 shares be worth in a year?
• How to build a Warren Buffett-inspired ASX share portfolio

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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.

Woolworths Group Ltd (ASX: WOW) shares are marching higher.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $37.82. In early afternoon trade on Wednesday, shares are changing hands for $38.17 apiece, up 0.9%.

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

Today’s outperformance is par for the course in 2026. Woolworths shares are now up 29.8% year to date, charging ahead of the 1.7% gains posted by the benchmark index this calendar year.

Atop those welcome capital gains, Woolworths is also popular with passive income investors for the stock’s reliable, twice yearly dividend payments. Woolworths currently trades on a 2.4% fully franked trailing dividend yield.

Which brings us back to our headline question.

Should you buy Woolworths shares for passive income?

Red Leaf Securities’ John Athanasiou recently analysed the outlook for the Aussie supermarket giant (courtesy of The Bull).

“Australia’s largest supermarket operator offers stable defensive earnings and a strong balance sheet,” he said.

As for the passive income on offer, Athanasiou added, “It benefits from everyday demand and a dominant position in grocery retail supporting steady cash flows and dividends.”

But he isn’t ready to pull the buy trigger just now.

Explaining his hold recommendation on Woolworths shares, Athanasiou concluded:

However, margin pressure from cost inflation and competitive discounting limits growth prospects. While same store sales growth remains moderate, the company’s resilience in consumer staples provides a solid foundation.

WOW is a reliable long-term holding, but lacks significant upside catalysts in the absence of operational improvements or digital expansion initiatives.

What’s the latest from the ASX 200 supermarket?

Woolworths reported its half year results (H1 FY 2026) on 25 February.

Highlights for the six months to 4 January (before significant items) included a 3.4% year-on-year increase in sales to $37.14 billion. And earnings before interest and tax (EBIT) of $1.66 billion increased by 14.4%.

On the bottom line, Woolworths reported a half year net profit after tax (NPAT) of $859 million, up 16.4% from H1 FY 2025.

That saw management up the fully franked interim dividend payout by 15.4% to 45 cents a share.

“We are making progress on the strategy we outlined in August and have invested in value, our fresh offer, On Demand convenience and in-store execution,” Woolies CEO Amanda Bardwell said.

Woolworths shares closed up 13.0% on the day of the results release.

The post Should you buy Woolworths shares for the ‘steady dividends’? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Big share price falls tend to get attention.

What matters more to me is whether the business behind the share is still moving forward. If it is, a lower price can make things a lot more interesting.

Here are three ASX shares down at least 30% from their highs that I would be looking at now.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster has been sold off heavily, even though the business is still growing.

In the first half of FY26, revenue increased 20%, which shows the underlying momentum is still there.

But what stands out most to me is the size of the opportunity. The company is targeting a market worth more than $40 billion, with online adoption still catching up to global peers.

It is also continuing to take market share and expand into areas like home improvement, trade, and New Zealand.

The share price is down, but the growth opportunity is still there. If the company keeps executing, I think it has plenty of upside from here.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre is down more than 30% from its highs, which feels out of step with how the business is tracking.

The travel company recently reported record total transaction value and delivered profit growth, even in what it described as a challenging environment.

There are a few things I like here. Corporate travel continues to scale, the leisure business has regained momentum, and the company is expanding into new areas and revenue streams. It has also been investing in AI and technology to improve productivity and customer experience.

Recent acquisitions, including Iglu and Scott Dunn, are adding to that growth and helping broaden the business.

The share price is down, but the business is still growing, which I think makes the valuation more appealing.

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat has also pulled back more than 30%, despite continuing to deliver solid results.

The business operates across gaming machines, mobile games, and online real money gaming, which gives it multiple ways to grow.

It has been gaining market share in key regions, supported by a strong pipeline of new games and ongoing investment in content and technology.

There is also a clear focus on expanding its digital and online segments, which could become more important over time.

With a strong balance sheet and continued investment in growth, I think this is a business that still has a lot going for it.

Foolish takeaway

A share price falling 30% or more can change how an investment looks.

Temple & Webster, Flight Centre, and Aristocrat are all still moving forward in different ways despite their pullbacks.

That is why I think they are worth a closer look right now.

The post Down 30%! 3 ASX shares I’d buy now appeared first on The Motley Fool Australia.

More reading

• Where I’d invest $5,000 in ASX blue-chip shares
• Down 50% in the past year, are these ASX 200 shares too cheap to ignore?
• 4 ASX shares tipped to fly 100% to 125% higher
• Buy, hold, sell: Aristocrat, Lovisa, Bendigo Bank shares
• 3 ASX 300 shares to buy and hold for the next decade

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Flight Centre Travel Group and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is having a poor session on Wednesday. In afternoon trade, the benchmark index is down 1% to 8,862.6 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Bank of Queensland Ltd (ASX: BOQ)

The Bank of Queensland share price is down 8.5% to $6.65. This follows the release of the regional bank’s half-year results. Bank of Queensland posted a 4% decline in cash earnings to $176 million and a 20% decline in statutory net profit after tax to $136 million. This reflects higher expenses and increased loan impairment charges, which offset income growth. Its statutory result also includes a $31 million loss on classification of the equipment finance portfolio.

Cochlear Ltd (ASX: COH)

The Cochlear share price is down 40% to $99.67. Investors have been selling this hearing solutions company’s shares following the release of a disappointing trading update. Cochlear has downgraded its FY 2026 underlying net profit guidance range to $290 million to $330 million. Previously it was guiding to underlying net profit of $435 million to $460 million. Management advised that softer trading in developed markets is being driven by hospital capacity constraints and a decline in referrals from the hearing aid channel.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 3% to $22.96. This gold miner’s shares are falling today following the release of its third-quarter update. Northern Star reported gold sales of 381,000 ounces for the quarter at an all-in sustaining cost (AISC) of A$2,709 per ounce. The latter is up strongly on the prior corresponding period when it recorded an AISC of A$2,246 per ounce.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is down 5% to $12.96. This morning, this uranium producer released its quarterly update and revealed a 5% increase in uranium production to 1.29Mlb. This was achieved with a cost of production of US$40.3 per pound and an average realised price of US$68.3 per pound. Looking ahead, management has lifted its FY 2026 Langer Heinrich Mine production guidance to 4.5Mlb to 4.8Mlb. Previously it was guiding to 4.0Mlb to 4.4Mlb. It seems that broad market weakness is overshadowing this news.

The post Why Bank of Queensland, Cochlear, Northern Star, and Paladin Energy shares are falling today appeared first on The Motley Fool Australia.

More reading

• Why Northern Star, DroneShield and BHP shares are making waves on Wednesday
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• Why are Northern Star shares sinking today?
• Why are Cochlear shares down 36% today?

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

Life360 Inc (ASX: 360) shares are tumbling today.

Shares in the S&P/ASX 200 Index (ASX: XJO) location sharing software developer closed yesterday trading for $22.29. During the Wednesday lunch hour, shares are changing hands for $21.72 apiece, down 2.6%.

For some context, the ASX 200 is down 1% at this same time.

While Life360 shares remain up 12.2% since this time last year, the stock has come under heavy selling pressure since hitting an all-time closing high of $55.44 on 3 October.

As you may be aware, part of that selling has been driven by broader investor jitters that artificial intelligence, or AI, could replace a lot of the services that companies like Life360 currently offer.

You may have heard this referred to as the SaaSpocalypse.

But rather than run for the hills, Bell Potter Securities’ Christopher Watt said the past months’ sell-down now sees the ASX 200 tech stock offering “an attractive risk-reward profile” (courtesy of The Bull).

Here’s why.

Should you buy Life360 shares today?

“This information technology company provides a mobile networking safety app for families,” Watt said.

Commenting on the first reason he’s bullish on Life360 shares, he noted, “The company offers a compelling growth story driven by its unique position at the intersection of safety, connectivity and subscription-based monetisation.”

As for the second reason he has a buy recommendation on the ASX 200 tech stock, Watt said:

With accelerating premium subscriber growth alongside improving unit economics, the company continues to benefit from strong engagement and pricing power.

The integration of hardware and software ecosystems provide options for further monetisation, while operating leverage is beginning to emerge.

Then there’s the SaaSpocalypse-fuelled sell-off.

According to Watt:

Given strong top line momentum, expanding margins and the recent sell-off in line with the broader technology sector, Life360 presents an attractive risk-reward profile, particularly at current levels.

Is AI a threat to this ASX 200 tech share?

It’s impossible to gauge just how far and how fast artificial intelligence systems will advance over the next few years, and as such, their potential impact on service-oriented tech stocks.

However, Life360 CEO Lauren Antonoff believes that AI should help, rather than hinder, Life360 shares going forward.

Speaking after the company’s full 2025 calendar year results release on 3 March, Antonoff said:

We are deep into the transition to become an AI-first company. Organisation-wide active AI adoption has grown to over 95%, accelerating our execution and expanding what’s possible for families on our platform.

We see AI as an opportunity to accelerate our path and deepen our moat.

The post 3 reasons to buy Life360 shares today appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares tipped to rise 20% or more
• Experts name 3 ASX 200 tech shares to buy now
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates
• Which ASX 200 tech stock has Bell Potter just downgraded?
• Is the ASX 200 tech wreck over amid a 6% rise in shares today?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Perpetual Ltd (ASX: PPT) shares didn’t hold their early gains on Wednesday.

The stock opened higher and briefly touched $16.68 before drifting lower through the session. At the time of writing, the global asset manager’s shares are down 1.21% to $16.40.

That pullback comes despite a solid run this year. The share price is still up around 12% in 2026.

Today’s move follows the release of its third-quarter FY26 update, which showed mixed conditions across the business.

Asset management flows remain under pressure

The main pressure point came from asset management.

Total assets under management (AUM) fell 3.6% over the March quarter to $219.2 billion. The decline was driven by a mix of outflows, weaker markets, and currency movements.

Net outflows were $2.8 billion for the quarter. That is a step down from the prior period but still shows clients pulling capital in parts of the business.

However, results varied across the business.

Barrow Hanley saw the largest outflows, particularly across global and US strategies. J O Hambro Capital Management also recorded declines, linked to both withdrawals and market moves.

But there were some offsets. Pendal posted modest growth in AUM, supported by positive market performance and selective inflows.

Across the group, investment performance remained mixed, with some strategies holding up better than others.

Corporate Trust holds steady

Corporate Trust delivered a more stable result.

Funds under administration rose to $1.32 trillion, up 0.3% over the quarter. Growth came from debt market services, particularly structured finance and securitisation activity.

Managed Funds Services also expanded, supported by new client mandates and continued inflows into existing products.

These areas tend to be less sensitive to market swings, which is reflected in the above numbers.

Wealth business edges lower ahead of sale

Wealth management continues to move in a different direction.

Funds under administration declined 4% to $21.1 billion, driven largely by negative market movements. Net flows were broadly flat.

This segment is in the process of being sold to Bain Capital, with completion expected later this calendar year, subject to conditions.

Perpetual also reaffirmed its cost guidance.

The company expects total expense growth of around 1% to 2% for FY26. That signals a relatively stable cost base despite the shifting revenue backdrop.

Foolish Takeaway

On the surface, not much has changed.

Asset management is still under pressure from outflows and performance swings. Corporate Trust is holding up with steadier growth.

That contrast is what is sitting under the share price.

The early move higher faded once the detail came through, which suggests the market is still weighing up which side of the business is more important.

Until that becomes clearer, the stock may struggle to build momentum.

The post Perpetual shares slip after update. But there’s more going on beneath the surface appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.