Tag: Stock pick

The Santos Ltd (ASX: STO) share price is in focus today after the energy company reported strong base business performance for the full year 2025, delivering $1.8 billion in free cash flow and declaring a final dividend of US 10.3 cents per share.

What did Santos report?

• Sales revenue of $4.9 billion from 93.5 million barrels of oil equivalent (mmboe) in sales volumes
• Underlying net profit after tax (NPAT) of $898 million
• Free cash flow from operations of $1.8 billion
• EBITDAX of $3.4 billion
• Final dividend of US 10.3 cents per share (total 2025 dividends: US 23.7 cents per share, representing $770 million)
• Unit production costs of $6.78 per boe, the lowest in a decade (excluding Bayu Undan)

What else do investors need to know?

Santos achieved record personal safety performance in 2025 and reached its 2030 emissions reduction target five years early, mainly due to its Moomba carbon capture and storage (CCS) project. The company remains in a solid financial position, with gearing at 21.5% excluding leases and strong liquidity of $4.3 billion.

Operationally, Santos delivered high reliability across its key assets, commenced production at Barossa and Darwin LNG earlier than planned and within budget, and continued disciplined cost control with the best unit production costs in ten years.

What’s next for Santos?

Santos is targeting further growth with the ramp up of Pikka phase 1 expected to deliver first oil by late Q1 2026 and reach full output in Q2. The company has also indicated a head count reduction of around 10% to rightsize the business as major projects become part of the base.

Guidance for 2026 is unchanged, with production and sales volumes expected in the range of 101 to 111 mmboe, unit production costs of $6.95 to $7.45 per boe, and total capital expenditure of approximately $1.95 to $2.15 billion. Santos is also pursuing new growth and decarbonisation opportunities to further strengthen its portfolio.

Santos share price snapshot

Over the past 12 months, Santos shares have declined 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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The post Santos delivers strong 2025 full year results and higher dividends appeared first on The Motley Fool Australia.

More reading

• Fletcher Building shares steady on half-year results and construction exit
• Nickel Industries lifts 2026 quota, driving stronger outlook and margins
• Magellan Financial Group grows dividend as steady 1H26 results land
• Vicinity Centres FY26 earnings: Profit jumps, premium assets drive growth
• TechnologyOne upgrades earnings guidance on AI and SaaS+ momentum

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.

The Vicinity Centres (ASX: VCX) share price is in focus after the company posted a $805.6 million statutory net profit for 1H FY26, up 63.5% from the prior period, with a 4.8% uplift in net tangible assets per security.

What did Vicinity Centres report?

• Statutory net profit after tax: $805.6 million (1H FY25: $492.6m)
• Funds from operations (FFO): $351.0 million, up 2.0%
• Distribution per security: 6.20 cents, up 4.2%
• Comparable net property income (NPI) growth: +3.7%
• Net tangible assets (NTA) per security: $2.52, up 4.8%
• Portfolio occupancy: 99.6%

What else do investors need to know?

Vicinity Centres continued its strategy of shifting towards premium retail assets, with premium assets now making up 66% of the portfolio’s value. Key moves included securing the remaining 75% interest in Brisbane’s Uptown centre for $212 million, funded by divestments of non-strategic assets at a blended premium to book value.

Development plans are progressing, including the successful Stage 1 opening of Chatswood Chase and ongoing projects at Chadstone and Galleria. Strong leasing activity saw portfolio occupancy reach a record 99.6%, and leasing spreads move up to 4.6%, supporting future rent growth.

What’s next for Vicinity Centres?

The group expects full-year FFO and AFFO to be at the top end of its guidance. Management is targeting continued investment in premium assets, with around $400 million allocated to capital expenditure in FY26 and a focus on mixed-use development opportunities. Comparable NPI growth is now expected to be around 3.5%, with development-related rent losses factored into guidance.

Vicinity’s disciplined capital management aims to maintain flexibility for further investment, while its latest acquisitions and developments seek to boost income growth and portfolio value.

Vicinity Centres share price snapshot

Over the past 12 months, Vicinity Centres shares have risen 14%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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The post Vicinity Centres FY26 earnings: Profit jumps, premium assets drive growth appeared first on The Motley Fool Australia.

More reading

• Fletcher Building shares steady on half-year results and construction exit
• Nickel Industries lifts 2026 quota, driving stronger outlook and margins
• Magellan Financial Group grows dividend as steady 1H26 results land
• Santos delivers strong 2025 full year results and higher dividends
• TechnologyOne upgrades earnings guidance on AI and SaaS+ momentum

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.

The Macquarie Group Ltd (ASX: MQG) share price has been on the move this month as the global investment bank reported its FY26 third-quarter update.

Macquarie’s earnings result is influenced by four different divisions – its banking and financial services (BFS) segment, Macquarie Asset Management (MAM), investment banking (Macquarie Capital) and the commodities and global markets (CGM) segment.

The ASX financial share reported that in the three months to December 2025, MAM’s net profit was up “substantially”, BFS’ net profit rose slightly, CGM’s net profit rose “substantially” and Macquarie Capital’s net profit grew “substantially”.

Is the Macquarie share price attractive?

Ultimately, UBS thinks the answer is yes – it has a buy rating on the business, with a price target of $235.

A price target is where analysts think the share price of a business will be in 12 months from the time of the investment call. Therefore, investors think the business could rise by 7% within a year.

UBS said that the third quarter update appeared “satisfactory overall”, with improved guidance for CGM, where income is now expected to increase rather than remain flat. However, this is partially offset by a “higher-than-anticipated tax rate” for FY26, which suggests an additional tax expense of around $250 million compared to UBS estimates, equating to an impact of around 5.5% on projected cash net profit.

The broker then analysed the commentary on the ASX financial share’s divisions:

Commentary around the divisional performance in 3Q26 reads positively, in our view. Mkts facing businesses’ (MAM & Mac Cap) result was substantially up on pcp [prior corresponding period] (25%+). CGM commentary notes improved performances from Asset Finance and a stronger performance from Commodities compared to a subdued pcp, primarily due to increased contributions from North American Power, Gas and Emissions, and Resources.

Higher opex [operating expenditure] from investments in the CGM platform is continuing. Mac Cap substantially up on asset realisations and private credit portfolio. BFS continues to grow its deposit and lending franchise well above market, albeit Macquarie calling out mkt and portfolio mix continuing to drive NIM lower, likely offset by further operating leverage coming through.

MAM (ex NA [North America] & Europe public mkts business) benefiting from strong performance fees, which is likely to continue.

Expectations for FY26

UBS noted that MAM’s base fees are expected to be “broadly in line”, though net other operating income is expected to be up significantly.

BFS is expected to see ongoing growth in the loan portfolio and deposit profits in FY26.

Macquarie Capital’s transaction activity is expected to be “in-line”. The private credit portfolio and FY26 second-half asset realisations are expected to support investment-related income to be “broadly in line”.

In CGM, commodities income is expected to be up, while volatility may create opportunities, according to UBS.

The Macquarie share price is valued at 18.4x FY26’s estimated earnings, at the time of writing, based on UBS’ forecast of earnings per share (EPS) of $11.85 for the 2026 financial year.

The post Do experts think the Macquarie share price is a buy? 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Golden Horse Minerals Ltd (ASX: GHM) put out a cheeky press release this week, saying they’d started the year “at a gallop” with visible gold in their first exploration hole at the Hopes Hill prospect.

The release caught the eye of the team at Shaw and Partners, who said the find was a “significant breakthrough”.

So what exactly did they report?

Golden Horse said this week that their first diamond drill hole had intersected visible gold at a depth of 200m under the previously-mined Hopes Hill pit, which has previously produced 216,000 ounces of gold at a grade of 2.4 grams per tonne.

The company cautioned that visible gold should not be considered a substitute for laboratory tests.

Other results of note included a 6.6m intersection at a grade of 2.6 grams per tonne from a depth of 379.5m at Hopes Hill Main and 10m at 1.2 grams per tonne from 27m at Hopes Hill North.

The company said it had mobilised a second diamond drill rig and a third reverse circulation rig at the site to expedite the more than 125km drilling program already underway.

Golden Horse Managing Director Nicholas Anderson said it was a great result so far.

With the very first hole drilled at Hopes Hill for 2026, we are thrilled to report that we have intercepted visible gold in 26HHDD001 which is a testament to our belief in the potential of this mineralised system. Whilst following geological best practice, we took the additional steps of comprehensively assaying around the visible gold to ensure we gain a detailed understanding of the gold deportment. Of the 156 re-assays, over half graded above 5.0 grams per tonne of gold with multiple +10 grams per tonne assays to 63.3 grams per tonne highlighting the upside we see at Hopes Hill. What is particularly exciting is this high-grade mineralisation is located within the footwall package, which was previously thought to have hosted lower grade mineralisation. We backed ourselves and swung the rig onto a new hole to test our geological model, and to intersect visible gold in a rock unit outside the conventional ‘mine geology corridor’ is a fantastic outcome for the company.

Shares are looking cheap

Shaw and Partners, in a research note sent to clients this week, said the visible gold was significant as it occurred in an area previously discounted as a primary gold target.

The broker has a $1.50 price target on Golden Horse shares, compared with the current price of 69 cents. The stock has increased from lows of 21 cents over the past year.

Golden Horse Minerals was valued at $185.7 million at the close of trade on Tuesday.

The post This gold explorer has more than tripled, but could double again one broker says appeared first on The Motley Fool Australia.

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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 TechnologyOne Ltd (ASX: TNE) share price is in focus today after Australia’s largest ERP SaaS company lifted its FY26 profit guidance by 5 percentage points, targeting 18% to 20% profit before tax (PBT) growth and 16% to 18% annual recurring revenue (ARR) growth, fuelled by strong demand for its AI-powered SaaS+ offering.

What did TechnologyOne report?

• Upgraded FY26 PBT growth guidance to 18%–20%, up from the previous 13%–17% range
• ARR growth guidance lifted to 16%–18%
• Significant investment of $8–$9 million in AI Showcase events for H1 FY26
• First-half FY26 PBT growth expected in the high single digits due to phasing of investments
• Retirement of Non-executive Director Clifford Rosenberg after 7 years of service

What else do investors need to know?

TechnologyOne credited its upgraded outlook to the successful momentum of its SaaS+ products and forthcoming AI-driven innovations. The company said customer demand remains strong in Australia, New Zealand, and the UK, giving management confidence to aim for the top end of its new guidance range.

A key focus this half has been strategic investment in AI product launches, expected to provide future commercial opportunities but resulting in a slower first-half profit growth. Management stated that growth will be back-weighted, with a strong second half anticipated.

What did TechnologyOne management say?

Ed Chung, CEO and Managing Director, said:

SaaS+ and our products turbocharged through AI are our not so secret weapons, giving us the confidence to increase PBT growth to 18% to 20%, upgraded from our prior range of 13% to 17%, as well as guiding to ARR growth of 16% to 18%. We are targeting the top end of the guidance range for both PBT and ARR.

What’s next for TechnologyOne?

Looking ahead, TechnologyOne expects to maintain its disciplined growth rhythm as it continues transitioning from a SaaS business to its next-generation SaaS+ model. Management says recent investments in AI and international expansion are setting up the business for sustained profit and revenue growth.

Investors can expect more updates on product launches and new customer wins in FY26, as the company looks to capitalise on rising demand for cloud-based ERP solutions.

TechnologyOne share price snapshot

Over the past 12 months, TechnologyOne shares have declined 33%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post TechnologyOne upgrades earnings guidance on AI and SaaS+ momentum appeared first on The Motley Fool Australia.

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• SGH Ltd confirms $32.35 per share BlueScope bid
• The Lottery Corporation posts steady earnings and dividend for 1H26
• Dexus posts $348.5m half-year profit as property values lift
• Telix Pharmaceuticals files European application for brain cancer imaging
• Netwealth earnings: 24% revenue jump and record inflows

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 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. 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.

These 2 ASX healthcare shares have had an ordinary start to 2026.

Telix Pharmaceuticals Ltd (ASX: TLX) and Neuren Pharmaceuticals Ltd (ASX: NEU) shares have lost 21% and 31% respectively this year so far.

However, both ASX healthcare shares offer exposure to innovative healthcare solutions with meaningful growth runways. Brokers tip explosive upside for the ASX biotech shares. Let’s find out why.

Telix Pharmaceuticals Ltd (ASX:TLX)

The price of this ASX healthcare share has delivered standout gains over the past 12 months, peaking at $31.97 almost a year ago. Since then, Telix has dropped 67% in value to $8.84 at the time of writing.

Telix develops radiopharmaceuticals for cancer diagnosis and treatment, blending biotech innovation with specialised manufacturing and global distribution.

What sets Telix apart is its shift from development-stage hopeful to commercial operator. As approvals turn into broader clinical use, revenue can ramp quickly, without rebuilding the platform each time.

Growth now hinges on adoption and market penetration, not economic cycles. That brings volatility. But it also gives investors exposure to a healthcare niche where innovation can flow straight through to earnings.

Investors have been drawn to the company’s accelerating revenue from its prostate cancer imaging product Illuccix. Recent financial results showed strong revenue growth and improving profitability.

However, the risks are real. Biotech companies remain vulnerable to regulatory hurdles, trial delays, and shifting investor sentiment. The ASX healthcare also continues to invest heavily in research and development. This means earnings can fluctuate as it balances growth with cost discipline.

Most brokers have a positive recommendation on the ASX healthcare share. Citi just reiterated its buy rating on Telix with a price target of $34. This suggests a massive 285% upside.

TD Cowen also has a buy rating but lowered its price target from $25 to $20, which still points to a possible gain of 126%.

Neuren Pharmaceuticals Ltd (ASX: NEU)

Neuren’s path has been more uneven. After reaching significant highs in 2024, the $2 billion ASX healthcare share retreated sharply. Since reaching a 52-week high of $22.99 in October, it has lost 44% to $12.80 at the time of writing.

Despite this, the company has continued to generate royalty income from DAYBUE, its approved therapy for Rett syndrome. Growing royalties provide a meaningful revenue base and help distinguish Neuren from earlier-stage biotech peers that rely purely on trial outcomes.

Looking ahead, much of Neuren’s investment case rests on its broader pipeline, particularly the development of NNZ-2591 for multiple rare neurological disorders. Phase 3 trial progress and further regulatory engagement could act as powerful share price catalysts if results are positive.

Yet the risks are equally clear. Biotech valuations can swing dramatically on clinical updates, and pipeline programs remain inherently uncertain. Neuren’s share price volatility over the past year is a reminder that even companies with approved products are not immune from market re-rating.

Most brokers see the ASX biotech stock as a strong buy. They have set a 12-month price target of $23.74, which points to a 85.5% plus.

Analysts at Bell Potter see significant value in this ASX healthcare share at current levels. Last week, the broker reaffirmed its buy rating with a $22.00 price target. This implies potential upside of 71% for investors over the next 12 months.

The post These 2 ASX healthcare shares could jump well over 80% appeared first on The Motley Fool Australia.

More reading

• Are these ASX shares too cheap to pass up?
• Telix Pharmaceuticals files European application for brain cancer imaging
• 8 ASX All Ords shares just upgraded to strong buy status
• These are the 10 most shorted ASX shares
• 13 ASX 200 shares hit multi-year lows as the market takes a breather

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

The SGH Ltd (ASX: SGH) share price is in focus after the company and Steel Dynamics Inc. confirmed a best and final $32.35 per share offer to acquire BlueScope Steel Ltd (ASX: BSL) valuing BlueScope at $15 billion in cash. The proposal represents a 47% premium to BlueScope’s prior adjusted closing price and a 56% premium to its 52-week average.

What did SGH report?

• Revised non-binding indicative offer of A$32.35 per BlueScope share (total equity value: A$15 billion)
• Offer is 14% above their previous adjusted proposal and 47% above BlueScope’s adjusted prior closing share price
• Full cash consideration for BlueScope shareholders
• SGH intends to retain BlueScope’s Australia and Rest of World operations; Steel Dynamics to acquire North American assets
• Offer subject to regulatory, shareholder, and due diligence conditions

What else do investors need to know?

SGH and Steel Dynamics describe the offer as their best and final proposal unless a superior competing bid emerges for all or a significant portion of BlueScope Steel. The transaction would see BlueScope split, with SGH keeping Australian and global businesses, while Steel Dynamics acquires BlueScope’s North American operations.

Regulatory approvals, due diligence, and formal documentation are still outstanding, but both companies state they are confident about satisfying all required conditions. The revised proposal fits SGH’s capital allocation strategy and supports its plan to further develop BlueScope’s operations outside North America.

What’s next for SGH?

If approved, the acquisition would reshape SGH’s business, positioning it as the owner of BlueScope’s domestic and global segments, while Steel Dynamics would expand into North America. Both SGH and Steel Dynamics remain engaged in discussions and are committed to progressing due diligence, legal documentation, and regulatory processes.

The companies have stated that further updates will be provided to the market as developments arise, and there remains no certainty the offer will result in a completed transaction.

SGH share price snapshot

Over the past 12 months, SGH shares have declined 13%, trailing the S&P/ASX 200 Index (ASX XJO) which has risen 6% over the same period.

View Original Announcement

The post SGH Ltd confirms $32.35 per share BlueScope bid appeared first on The Motley Fool Australia.

More reading

• TechnologyOne upgrades earnings guidance on AI and SaaS+ momentum
• The Lottery Corporation posts steady earnings and dividend for 1H26
• Dexus posts $348.5m half-year profit as property values lift
• Telix Pharmaceuticals files European application for brain cancer imaging
• Netwealth earnings: 24% revenue jump and record inflows

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.

The Lottery Corporation Ltd (ASX: TLC) share price is in focus today after the company revealed a resilient half-year result for the six months ended 31 December 2025, with group revenue up 2% to $1.82 billion and an 8.0 cent per share fully franked interim dividend declared.

What did The Lottery Corporation report?

• Revenue rose 2% year on year to $1.82 billion.
• Net Profit After Tax (NPAT) slipped 1.4% to $173.3 million.
• Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was $367.0 million, down 0.7% from 1H25.
• Operating expenses increased modestly by 2.9% to $146.0 million.
• The interim dividend was 8.0 cents per share (fully franked), matching last year, representing a payout ratio of 103% of NPAT.
• Net debt stood at $2.24 billion, with leverage at 3.0x EBITDA.

What else do investors need to know?

Despite the least favourable period for jackpot outcomes since its demerger, with an estimated $400 million negative turnover impact, The Lottery Corporation delivered a resilient financial performance. Keno revenues continued to grow, up 7% against the prior corresponding period, with a notable return to digital growth after new spend limits were introduced last year.

Digital sales continue to rise, making up 41.2% of total Lotteries turnover, up 80 basis points. The Saturday lotto game change was successfully executed, retaining 103% of the price increase, and active game management helped offset weaker jackpot outcomes.

What’s next for The Lottery Corporation?

Looking ahead, the company plans to review its brand architecture and explore new product opportunities while investing in Keno and digital transformation. Strategic technology upgrades, portfolio enhancements, and a focus on local market growth are all expected to support ongoing sustainable shareholder returns.

In FY27, more game changes are planned, including enhancements to Set for Life, subject to regulatory approvals. The Lottery Corporation’s strong balance sheet provides flexibility for organic expansion as it evolves as a digital entertainment business.

The Lottery Corporation share price snapshot

Over the past 12 months, The Lottery Corporation shares have risen 5%, slightly trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post The Lottery Corporation posts steady earnings and dividend for 1H26 appeared first on The Motley Fool Australia.

More reading

• TechnologyOne upgrades earnings guidance on AI and SaaS+ momentum
• SGH Ltd confirms $32.35 per share BlueScope bid
• Dexus posts $348.5m half-year profit as property values lift
• Telix Pharmaceuticals files European application for brain cancer imaging
• Netwealth earnings: 24% revenue jump and record inflows

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 positions in and has recommended The Lottery Corporation. The Motley Fool Australia has recommended The Lottery Corporation. 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.

Here at The Motley Fool, we are constantly sifting through the noise to find ASX shares that could be undervalued. 

Of course, not every down-and-out company is a value.

But here are three ASX shares that might have fallen too far to ignore. 

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix is a commercial-stage biopharmaceutical company focused on the ongoing development of diagnostic and therapeutic (‘theranostic’) products using targeted radiation.

This ASX healthcare stock has fallen 22% year to date and more than 67% in the last 12 months. 

Yesterday, its share price closed at $8.84. 

However, it was just upgraded to a strong buy rating from analysts via the CommSec platform, which could indicate that it is now below fair value. 

This includes a buy rating from Citi with a $34 price target and a buy rating and $20 price target from TD Cowen. 

Bell Potter sits in the middle with a price target of $23.

From yesterday’s closing price, this indicates an upside between 126% and 284%. 

Block Inc (ASX: XYZ)

Block is a global company best known for providing payment-acquiring and related services to businesses.

Its share price is down almost 28% year to date and 46.8% over the last 12 months. 

Yesterday it closed at $70.47. 

Despite the fall, it did post some impressive profit results last year.

It has been dealing with headwinds like rising interest rates, sour buy now, pay later sentiment, and regulatory struggles. 

But with these ASX shares now close to 52-week lows, it could be simply too cheap to pass up. 

Recent analyst estimates include positive ratings and an average target price of $164.67. 

That indicates an upside of 133.6% for these battered ASX shares. 

Guzman y Gomez Ltd (ASX: GYG)

Guzman y Gomez is a Mexican-inspired quick-service restaurant operator and franchisor, mostly operating in Australia.

After a positive debut on the ASX back in mid-2024, it’s been a steady fall for these ASX shares. 

GYG shares are now down almost 55% in the last year, closing yesterday at $19.50. 

Despite the fall, sentiment for these ASX shares has started to turn, with experts seeing long-term value in the company. 

Earnings last year were positive; however, an important date to watch for prospective investors will be Friday, February 20, when the company releases H1 FY26 results.

Late last month, Morgans placed a buy rating and $32.30 price target on GYG shares thanks to optimism around new products. 

This indicates an upside of more than 65%. 

The post Are these ASX shares too cheap to pass up? appeared first on The Motley Fool Australia.

More reading

• These 2 ASX healthcare shares could jump well over 80%
• Telix Pharmaceuticals files European application for brain cancer imaging
• 8 ASX All Ords shares just upgraded to strong buy status
• These are the 10 most shorted ASX shares
• 13 ASX 200 shares hit multi-year lows as the market takes a breather

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block and Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Dexus (ASX: DXS) share price is in focus as the property group delivered a half-year statutory net profit after tax of $348.5 million, up sharply from $10.3 million a year ago, and declared an interim distribution of 19.3 cents per security.

What did Dexus report?

• Statutory net profit after tax of $348.5 million (HY25: $10.3 million), driven by property valuation gains
• Adjusted funds from operations (AFFO) of $253.3 million, or 23.6 cents per security
• Distribution of $207.6 million, or 19.3 cents per security (payout ratio of 82%)
• Portfolio valuation uplift of 1.0% overall, with office+0.7% and industrial +1.6%
• Office leasing volumes nearly doubled to 95,300sqm; industrial like-for-like income up 8.7%
• Gearing at 33.9%, within target range; $2.5 billion in cash and undrawn facilities

What else do investors need to know?

Dexus’s property portfolio occupancy remained healthy, with office at 92.2% and industrial at 97.0%. Incentives are tracking below market levels, and strong leasing at key developments, such as Waterfront Brisbane (now 71% pre-leased), is supporting income growth.

The group advanced its $11.5 billion real estate development pipeline, with progress on flagship projects Atlassian Central and Waterfront Brisbane. Funds management continues to grow, now overseeing $36.2 billion in third-party capital, with flagship funds outperforming their benchmarks and new funds raising over $950 million in fresh equity.

Sustainability remained front and centre, with Dexus receiving high global ESG rankings, maintaining net zero emissions across Scope 1 and 2, and boosting solar generation across its managed assets.

What did Dexus management say?

CEO and Managing Director Ross Du Vernet said:

Underlying real asset markets are past the point of inflection and continue to improve, supported by positive business confidence, constrained supply pipelines, stabilisation in asset prices and improvement in transaction volumes, notwithstanding the evolving interest rate environment. Positively, this was the second consecutive six-month period of property portfolio valuation uplifts.

What’s next for Dexus?

Dexus reaffirmed guidance for full-year AFFO of 44.5–45.5 cents per security and distributions of 37.0 cents per security, barring unforeseen events. Management signalled ongoing asset divestments and a $2 billion divestment target, with an on-market buyback of up to 10% of Dexus securities being activated to address the discount to underlying asset value.

The company expects lower trading profits in FY27 but remains focused on capital discipline and unlocking value through asset sales, development completions, and growing its funds management platform as market conditions improve.

Dexus share price snapshot

Over the pat 12 months, Dexus shares have declined 19%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

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The post Dexus posts $348.5m half-year profit as property values lift appeared first on The Motley Fool Australia.

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