Tag: Stock pick

The Mirvac Group (ASX: MGR) share price is in focus today after the company posted a 5% boost in first-half operating profit to $248 million and grew earnings per security to 6.3 cents.

What did Mirvac Group report?

• EBIT of $398 million, up 10% from 1H25
• Operating profit after tax of $248 million, up 5% on the prior year
• Statutory profit of $319 million, a significant increase from $1 million in 1H25
• Half-year distribution of 4.7 cents per security, up from 4.5cpss
• Net tangible assets rose to $2.30 per security (from $2.26 at FY25)
• Residential sales surged 38%, with 1,304 lots exchanged and settlements up 22%

What else do investors need to know?

Mirvac continued its momentum in the Living segment, restocking its residential pipeline with around 2,300 new lots and settling 835 lots for the half. The business also secured two new land lease sites and completed strong volumes in both settlements and sales, signalling ongoing demand for quality housing.

On the capital front, Mirvac entered a notable joint venture with Mitsubishi Estate to deliver the Harbourside project in Sydney, raising approximately $1 billion. The company’s $1.7 billion LIV Mirvac Build to Rent Fund also saw recapitalisation, with major investor Australian Retirement Trust acquiring a significant stake.

Mirvac’s commercial portfolio remained resilient, reporting high occupancy (98%) and 4.4% like-for-like net operating income growth. The group’s strong balance sheet featured headline gearing of 25.8% and available liquidity of about $1.1 billion.

What did Mirvac Group management say?

Mirvac’s CEO & Managing Director, Campbell Hanan, said:

We delivered a strong performance across all parts of the business in the first half of FY26, underpinned by the continued execution of our strategy. Positive momentum saw residential sales increase 38 per cent year-on-year, with settlements up 22 per cent and a recovery in gross margins. The significant restocking of our development pipeline is also in line with our focus on Living and Premium-grade Office, and, coupled with a number of key launches and completions in the coming 18 months, provides excellent future earnings visibility.

What’s next for Mirvac Group?

Mirvac has reaffirmed its FY26 guidance, targeting operating earnings of 12.8 to 13.0 cents per security and distributions of 9.5 cents, subject to key assumptions. The business expects continued residential momentum, with targets for 2,000 to 2,300 lot settlements in FY26 and a focus on growing future pipeline projects.

Ongoing investment in high-quality, well-located commercial assets and strategic capital partnerships are anticipated to strengthen the group’s income streams and support earnings growth. Management sees recent margin restoration and robust sales as providing good visibility and near-term confidence.

Mirvac Group share price snapshot

Over the past 12 months, Mirvac Group shares have declined 11%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Mirvac Group posts 5% profit growth, expands pipeline in 1H26 appeared first on The Motley Fool Australia.

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• Iluka Resources posts lower FY25 profit but advances rare earths strategy

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 Iluka Resources Ltd (ASX: ILU) share price is in focus after the miner posted $976 million in full-year mineral sands revenue and declared a final dividend of 3 cents per share fully franked.

What did Iluka Resources report?

• Mineral sands revenue of $976 million, down from $1,129 million in FY24
• Underlying mineral sands EBITDA of $300 million, with a margin of 31%
• Net profit after tax (NPAT) loss of $288 million, impacted by $566 million in impairments and write-downs
• Operating cash flow of $61 million (FY24: $252 million)
• Net debt (excluding non-recourse debt) of $473 million at year-end
• Final dividend of 3 cents per share fully franked; total full year dividend of 5 cents

What else do investors need to know?

The 2025 result reflects challenging conditions in the mineral sands market, with subdued demand and softer pigment industry activity. Iluka responded by suspending production at its Cataby and Synthetic Rutile 2 operations and completing a reset of its cost base.

On the development front, the company commenced mining at the high-grade Balranald site in January 2026 and expects to bring a second rig online shortly. Construction of the Eneabba rare earths refinery continues on budget, with commissioning targeted for 2027. Iluka also adjusted long-term synthetic rutile contracts to guarantee at least $240 million in contracted revenue for 2026.

What did Iluka Resources management say?

Managing Director Tom O’Leary said:

2025 saw challenges for mineral sands contrast with strong momentum in rare earths. External developments across both industries have validated Iluka’s approach to our respective businesses, including in relation to diversification, operational and market discipline, capital allocation and balance sheet management.

What’s next for Iluka Resources?

Iluka expects mineral sands costs and capital expenditure to decrease in 2026, following the cost reset and as the Balranald project ramps up. Management says the company is well positioned for a range of industry outcomes thanks to its diversified product mix and significant inventory.

The focus for 2026 and beyond is disciplined delivery at both Balranald and the Eneabba rare earths project. Engineering at Eneabba is now more than 95% complete, with offtake discussions advancing as construction picks up pace.

Iluka Resources share price snapshot

Over the past 12 months, the Iluka Resources share prices have risen 13%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Iluka Resources posts lower FY25 profit but advances rare earths strategy appeared first on The Motley Fool Australia.

More reading

• Suncorp Group posts resilient 1H26 earnings despite higher claims
• National Australia Bank posts strong first quarter FY26 earnings
• Ventia extends NZ$160m Transpower contract: What it means for investors
• Spark New Zealand earnings: profit rebounds, dividend declared
• Mirvac Group posts 5% profit growth, expands pipeline in 1H26

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.

Two ASX 200 stocks that endured a tough day yesterday were Reece Ltd (ASX: REH) and Treasury Wine Estates Ltd (ASX: TWE). 

These companies experienced share price falls of 4.4% and 4.6% respectively. 

For context, the S&P/ASX 200 Index (ASX: XJO) rose 0.24%. 

Lets see what was behind the fall and if now is a good time for investors to scoop them up. 

Treasury Wine Estates

Treasury Wine Estates is among the world’s top five wine producers and owns a portfolio of more than 70 brands including Australian labels such as Penfolds. 

Its share price tumbled 4.6% yesterday following a 5% fall on Monday.

It seems investors are exiting the ASX 200 stock following the release of its half-year results.

The company reported profits that were down substantially from the prior corresponding period.

It reported: 

• Net Sales Revenue (NSR) down 16.0% to $1.3 billion.
• EBITS dropped 39.6% to $236.4 million; EBITS margin shrank to 18.2% from 25.3%.
• NPAT before material items and SGARA was $128.5 million, down 46.3%.
• Statutory NPAT loss of $649.4 million

Perhaps the most disappointing part of the announcement was the suspension of dividends.

Its share price is now down more than 50% over the last year. 

Reece

For those unfamiliar, the company is a supplier of plumbing, bathroom, heating ventilation, and air-conditioning products.

This ASX 200 stock also lost significant ground during Tuesday, falling 4.4%.

However unlike Treasury Wine Estates, there was no price sensitive news out of the company. 

Reece Ltd has endured a tough 12 months, down roughly 36% in that span. 

It is now sitting close to its 52-week low.

Is either ASX 200 stock a buy low candidate?

With both stocks being down significantly in the last 12 months, it could be an opportunity for investors to buy. 

Recent valuations from experts suggest investors should wait for further drops before entering. 

A recent note out of UBS included a share price target of $4.75 for Treasury Wine Estates shares. 

That is right around the current levels. 

Morgans had a recent price target of $5.25 on the ASX 200 stock on the back of disappointing US performance in January. 

This indicates a modest upside after the recent fall, however general sentiment is negative/neutral on Treasury Wine Estates shares. 

It’s unfortunately a similar story for Reece shares. 

Analysts via TradingView have an average one year price target of $13.28 on this ASX 200 stock. 

That’s roughly 4.5% below current levels. 

The post These 2 ASX 200 stocks crashed yesterday – should investors swoop in? appeared first on The Motley Fool Australia.

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• Why Reliance, Santana Minerals, Sims, and Treasury Wine shares are falling today
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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 Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

An emerging story this year has been the heavy sell-off of ASX technology shares.

Global risk-off sentiment and a renewed reassessment of the technology sector have weighed heavily on growth-oriented names.

A major driver has been investor concerns about artificial intelligence (AI).

Rather than being a clear catalyst for growth, fears that rapid AI advances could disrupt traditional software business models have prompted revaluation and selling in software and SaaS stocks, with markets questioning future demand and pricing power. 

In fact the S&P/ASX 200 Information Technology Index (ASX: XIJ) is down 43% over the past six months.

Big companies that have been largely sold off in 2026 include: 

• TechnologyOne Ltd (ASX: TNE) is down 22% YTD 
• Xero Ltd (ASX: XRO) is down 30%
• Life360 Inc (ASX: 360) has fallen 28%
• SiteMinder Ltd (ASX: SDR) has dropped by 38.5%. 
• WiseTech Global Ltd (ASX: WTC) is 31% lower YTD. 

What are experts saying?

It’s very reasonable that investors don’t want to tie themselves to a sinking ship. 

But is the technology industry really going down?

Bear markets don’t last forever, and many experts are reinforcing this panic isn’t being driven by sound logic.

Research from J.P. Morgan Private Bank describes this as “broken logic” and says, “the market is selling indiscriminately.”

Analysis from Wilsons Advisory also suggested the doom and gloom around these stocks is overblown. 

Whilst holders of these stocks might need an iron will to endure these difficult times, prospective buyers should be rejoicing in the opportunity. 

It can be challenging to sift through these companies and decide on a case-by-case basis if the outlook is positive, and core business a safe choice.

One strategy to take advantage of this crash is to consider technology exposed ASX ETFs. 

Here are a few to consider. 

Buyers should be aware that these funds could certainly keep falling in the near term before things get better. 

Betashares S&P ASX Australian Technology ETF (ASX: ATEC)

Unsurprisingly, this fund is down roughly 20% year to date. 

It includes exposure to leading ASX-listed companies in a range of tech-related market segments such as information technology, consumer electronics, online retail and medical technology.

Global X Morningstar Global Technology ETF (ASX: TECH)

This fund focuses on global technology companies rather than just ones here in Australia. 

It targets companies positioned to benefit from the increased adoption of technology. 

This including companies whose principal business is in offering computing Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), Infrastructure-as-a-Service (IaaS), and/or cloud and edge computing infrastructure and hardware.

It’s important to mention this might not suit investors who are bearish on the future of SaaS companies due to AI influence.

Global X FANG+ ETF (ASX: FANG)

This ASX ETF is focussed on companies at the leading edge of next-generation technology that includes household names and newcomers.

It only includes 10 underlying holdings that are targeted for global tech/growth potential. 

It is down 16.5% year to date. 

The post 3 ASX ETFs to target if you anticipate a tech turnaround  appeared first on The Motley Fool Australia.

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• Why are ASX 200 tech shares down 43% in six months?

Motley Fool contributor Aaron Bell has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, SiteMinder, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Life360, SiteMinder, WiseTech Global, and Xero. 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.

Two of the best-known ASX retail stocks are JB Hi-Fi Ltd (ASX: JBH) and Harvey Norman Ltd (ASX: HVN).

This sector relies heavily on economic conditions and consumer sentiment. These pressures have kept the sector lower in the past year.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has lost 7.7% in the past 12 months.

Here’s what experts are tipping for the ASX retail stocks. 

JB Hi-Fi Ltd

The group sells consumer electronics, electrical products and white goods through its JB Hi-Fi, JB Hi-Fi Home and The Good Guys brands.

The ASX retail stock has dropped about 12.5% over 12 months and is down 7.6% in 2026, at the time of writing.

On Monday, the electronics and homewares retailer posted a 7.3% increase in sales to a record $6.1 billion. Net profit was up 7.1% to $305.8 million and the interim dividend was boosted by a massive 23.5% to 210 cents per share.

What’s the verdict on the ASX retail stock? Analysts are split, but some remain firmly bullish.

Macquarie Group is the most optimistic. Analysts argue market concerns are overdone and they see tailwinds ahead, including ongoing tech upgrade cycles.

The broker has a 12-month price target of $106 versus the current share price of $88.94. If delivered, that implies a 19% upside.  

Citi also rates the ASX retail stock a buy but trimmed its target from $110 to $100. The team was “positively surprised” by gross margins at JB Hi-Fi and The Good Guys. Based on history — just one major downgrade in 15 years — Citi sees limited risk of sharp earnings cuts.

Morgans Financial takes a more cautious stance. It rates the retailer a hold and lowered its price target from $95 to $87. Morgans described the latest profit result as ‘solid’. The team acknowledged the company’s market leadership but cut earnings forecasts on softer sales growth assumptions.

Harvey Norman

It’s a very different story for Harvey Norman. The ASX retail stock has surged more than 22% over the past 12 months, ranking among 2025’s top retail performers. Strong FY25 results drove the rally.

Beyond electronics and furniture, Harvey Norman also owns a large property portfolio. This adds stable income and underpinning dividends.

So, what’s next for the ASX retail stock— more upside, or time to lock in gains?

Like rival JB Hi-Fi, Harvey Norman also offers income appeal. It’s forecast to deliver a fully franked dividend yield of 4.5% in FY26.

At Bell Potter, analysts see value in Harvey Norman as an ASX dividend play. They point to its franchise model, which throws off strong cash flow and gives the retailer flexibility in tough conditions.

Bell Potter forecasts fully franked dividends of 30.9 cents in FY26 and 35.3 cents in FY27. At $6.38 a share, that implies yields of 4.85% and 5.5%.

The broker rates the ASX retail stock a buy with an $8.30 price target. That’s on the upper end of TradingView data. Analysts have set the average 12-month price target at $7.30. That points to a potential gain 14.7% and a little over 19% in total returns, including dividends.

The post Which ASX 200 retail stock looks stronger: JB Hi-Fi or Harvey Norman? appeared first on The Motley Fool Australia.

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• Up 23%: Everything you need to know about the massive JB Hi-Fi dividend

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

SRG Global Ltd (ASX: SRG) shares have surged over the past year.

During this time, the ASX share has risen by almost 100%.

The good news is that following the diversified industrial services company’s first-half results and an upgrade to its full-year guidance, Bell Potter believes there is still further upside on offer.

Here’s what the broker is saying.

Solid first half, modest miss

The ASX share reported a 20% increase in underlying group EBITDA for the first half. While this was strong, it was slightly below Bell Potter’s expectations. The broker said:

SRG reported underlying Group EBITDA of $71.0m, up 20% YoY, and 3% below BPe. 1H FY26 financial result: Group EBITDA and EBIT(A) missed our expectations by 3% and 4%, respectively, driven by weaker than forecast E&C revenue and EBITDA margin.

Importantly, excluding the recently acquired TAMS business, the base Maintenance & Industrial (M&I) business continued to perform strongly. Bell Potter notes:

Stripping out TAMS revenue and our expectation of EBITDA from the M&I segment financials, the base M&I business delivered revenue of $470.7m (BPe $463.2m), up 21% YoY, and EBITDA of $64.9m (BPe $64.6m), up 14% YoY.

Guidance upgraded

The key takeaway from the result was the upgrade to the ASX share’s full-year guidance. Bell Potter said:

FY26 guidance: Group EBITDA guidance was upgraded to $164-168m (previously >$163.0m; BPe $163.8m; VA $163.5m). Group EBIT(A) guidance was raised to $126-130m (previously >$125.0m; BPe $125.2m; VA $125.7m).

The broker acknowledges that the midpoint of the upgraded EBITDA guidance implies a heavier weighting to the second half. This is largely due to a greater contribution from TAMS compared to the two months included in the first half.

Should you buy this ASX share?

According to the note, the broker has responded to the half-year result by retaining its buy rating and lifting its price target to $3.15 from $3.00.

Based on its current share price of $2.79, this implies potential upside of 13% for investors over the next 12 months.

In addition, a 2.3% dividend yield is expected, boosting the total potential return beyond 15%.

Commenting on its buy recommendation, Bell Potter said:

Our upgraded Target Price implies a NTM PE(A) of 21.2x (a 17% premium to the Industrials Services peer group). This premium is justified given management’s consistent track record for delivering acquisition accretion, organic business EPS(A) growth, managing execution risk, and sustaining a high proportion of recurring work compared with other companies in the peer group with greater exposure to lumpier, project-based work revenue.

The post Top broker says this ASX share is a buy after guidance upgrade 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 recommended Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Select Harvests Ltd (ASX: SHV) is an ASX consumer staples stock that has endured a tough 12 months. 

Select Harvest shares fell 3.43% yesterday, closing at $3.94 per share. 

Its share price is now down just over 20% year to date. 

However a new report from Bell Potter suggests it could now be priced at an attractive entry point.

The new report from Bell Potter has come after the company’s FY25 AGM.

Response to the AGM 

Select Harvests is an integrated grower, processor and marketer of almonds owning and operating farming and processing assets in Australia. It offers a vertically integrated model with core capabilities in farming, processing and marketing.

Yesterday, Bell Potter adjusted its outlook on this company following the AGM. 

The broker anticipates softer near-term earnings driven mainly by currency and cost assumptions, while maintaining a positive long-term outlook.

It said cost pressures remain in areas such as bees, water and fertiliser, though FY26 water cost assumptions have been slightly reduced given lower year-to-date prices.

Volume forecasts remain unchanged at 29,000 tonnes for FY26, with management noting a fast bloom, successful bee procurement and no major frost damage, while industry forecasts point to a 7% year-on-year increase in Australia’s 2026 crop.

As a result of updated pricing, FX and water assumptions, Bell Potter has reduced EBITDA forecasts by 7% in FY26 and 10% in FY27, with a modest 1% uplift in FY28.

Price target adjustment for this consumer staples stock

According to yesterday’s report, the target price has been lowered to $5.30 per share (from $5.80). 

However Bell Potter retained its buy recommendation, citing supportive global supply dynamics – including a smaller-than-expected Californian crop and weak snowpack – along with attractive valuation metrics (11.4x FY26e EPS, ~30% EPS CAGR FY25–28e) and a roughly 20% discount to market book value.

Bell Potter’s price target of $5.30 indicates a potential upside of 34.5%. 

We also see SHV trading at a ~20% discount to market-BV, with recent orchard transactions supportive of the market value as reported (~$4.97/sh).

Elsewhere, the average analysts rating via TradingView also indicates there is plenty of upside for this consumer staples stock. 

TradingView has an average 12 month price target of $5.42 which indicates an upside of approximately 37.5%. 

The post Bell Potter tips 34% a turnaround for this ASX consumer staples stock appeared first on The Motley Fool Australia.

More reading

• These 2 ASX 200 stocks crashed yesterday – should investors swoop in?
• 3 ASX ETFs to target if you anticipate a tech turnaround 
• Which ASX 200 retail stock looks stronger: JB Hi-Fi or Harvey Norman?
• Top broker says this ASX share is a buy after guidance upgrade
• Is the Westpac share price a buy today? Here’s an expert view

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

It’s a good time to consider whether the Westpac Banking Corp (ASX: WBC) share price is a buy after the ASX bank share recently announced its FY26 first-quarter update for the three months to 31 December 2025.

Westpac reported that it generated $1.9 billion of statutory net profit, which was 5% higher than the FY25 second half average. Excluding notable items, the underlying net profit was $1.9 billion, representing 6% growth.

Let’s take a look at what broker UBS thought of the result and whether the ASX bank share is appealing.

UBS view on the result

The broker noted that the FY26 first-quarter result was not as well-received as peers in the ASX bank share space, despite cash net profit being 6.8% ahead of expectations.

UBS highlighted that revenue growth was underpinned by stronger lending, despite the net interest margin (NIM) declining by 1 basis point (0.01%) quarter over quarter.

The broker said that the ASX bank share’s common equity tier 1 (CET1) was 12.31%, a reduction of 22 basis points (0.22%) compared to the second half of FY25, but this is expected to lift organically in the second quarter of FY26, as well as there being a boost (22 basis points) from the RAMS sale, giving Westpac capital flexibility.

UBS said costs were the standout, down 5% compared to the second half of FY25 (excluding notable items). Management are pursuing productivity savings of more than $500 million in FY26, with some of that driving UBS to increase its earnings per share (EPS) expectations for Westpac.

The broker noted that the bank’s tilt towards business and institutional is continuing, with the overall company showing “strong momentum”. Gross loans and advances (GLA) grew by around 10%, driven by institutional lending, and deposits increasing by 6.7% on an annualised basis.

UBS also said that the broader sector is improving, supported by credit growth, particularly in wholesale lending and stable asset quality

Based on the quarterly update, UBS increased the FY26 EPS estimate by 2.4%, grew the FY27 EPS estimate by 2% and decreased the FY28 EPS estimate by 1.3%.

Is the Westpac share price a buy?

UBS has a neutral rating on the ASX bank share, with a price target of $40. A price target is where analysts think the share price will go over the next 12 months. Therefore, UBS is suggesting that Westpac could slightly fall over the next year.

The broker forecasts that the business could deliver $2.15 of EPS in FY26, which translates into the ASX bank share trading at 19x FY26’s estimated earnings, meaning that it’s trading at a much higher earnings multiple than it has historically, according to UBS.

The post Is the Westpac share price a buy today? Here’s an expert view appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Northern Star, Temple & Webster, and Westpac shares
• Here’s an ASX 200 share that I think could beat Westpac in 2026
• Westpac shares hit new record high on Q1 update
• Westpac posts $1.9bn profit in 1Q26 as digital push and lending gains continue
• What’s going on with ASX bank stocks this week?

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.

If you’re willing to be patient, Bell Potter thinks the ASX dividend stock in this article could be worth considering.

That’s because the broker believes that after a period of no dividends, this stock could be positioned to provide a dividend yield of 9% in 2027 and then 10% in 2028.

Which ASX dividend stock?

The stock that Bell Potter is tipping as a buy is Healthco Healthcare and Wellness REIT (ASX: HCW).

It is an externally-managed REIT under parent HMC Capital Ltd (ASX: HMC), which manages around $1.4 billion of healthcare assets. This includes investment in hospitals, aged care, childcare, government, life sciences, and primary care & wellness property assets.

Among its tenant base is a combination of large-scale operators including Healthscope (HSO) and Acurio, as well as the Australian Government, which is the third biggest tenant by gross income.

What is the broker saying?

Its shares have come under significant pressure over the past 12 months due to its exposure to the struggling HSO business.

Commenting on recent developments, the broker said:

All 11 HSO hospitals continue to operate as normal, with 100% of all rent due having been paid, and state-by-state executable lease agreements with alternate operators remains in place as per prior. Incrementally though, HCW now expects upon new leases being struck the terms would include face rents to remain unchanged and incentives would indicatively result in a 10-15% near-term reduction to asset values.

The HSO receiver-led process remains the key determinant in potential pathways head, particularly in regards to UHF equity investment and HCW distribution’s recommencing (BPe 1QFY27).

Dividend forecast

Bell Potter doesn’t believe there will be any dividends in FY 2026. However, it is expecting them to recommence in FY 2027 with a dividend of 6.3 cents per share. The broker then expects a dividend of 7.5 cents per share in FY 2028.

Based on its current share price of 70 cents, this would mean dividend yields of 9% and 10.7%, respectively, over the two years.

In addition, the broker sees plenty of upside for this ASX dividend stock from current levels. It has a buy rating and 95 cents price target. This suggests that its shares could rise by 36% between now and this time next year.

Commenting on its buy recommendation, the broker said:

No change to our Buy rating. HCW trades at a material -50% discount to NTA which is the widest in our sector coverage, notwithstanding +26bp cap rate expansion at the result (c.+40bps for HSO-tenant assets) and additional detail on potential asset devaluations which implies a higher valuation than the current share price implied.

The post Guess which ASX stock could pay a 9% dividend yield in 2027 appeared first on The Motley Fool Australia.

More reading

• HealthCo Healthcare shares spike 6% following H1 FY26 results
• Why Bougainville Copper, Brainchip, Challenger, and HMC Capital shares are falling today
• 1 ASX dividend stock down 64% I’d buy right now
• Why Brambles, HMC Capital, ResMed, and Rio Tinto shares are rising today

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 HMC Capital. The Motley Fool Australia has recommended HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Growth shares haven’t had an easy run of late. Higher interest rates, concerns about valuations, and fears around AI disruption have all weighed heavily on this side of the market.

But history shows that sharp selloffs can set the stage for powerful rebounds once sentiment stabilises.

If confidence returns to growth in 2026, these three ASX shares could be well placed to bounce back strongly according to analysts.

NextDC Ltd (ASX: NXT)

The first ASX growth share that could rebound strongly is NextDC. It operates critical data centre infrastructure supporting cloud providers, enterprises, and government agencies. Demand for data storage and processing continues to rise, particularly with the expansion of AI workloads.

Yet like many ASX growth shares, NextDC has experienced volatility amid broader market weakness.

If investor appetite for infrastructure-backed growth returns in 2026, NextDC’s long-term expansion pipeline and exposure to digital infrastructure could support a meaningful rebound.

Macquarie currently has an outperform rating and $22.30 price target on its shares. Based on its current share price of $13.90, this implies potential upside of 60% for investors.

WiseTech Global Ltd (ASX: WTC)

Another ASX growth share that could rebound hard is WiseTech Global.

WiseTech’s CargoWise platform sits at the core of global freight and logistics operations. It is deeply embedded in customers’ workflows, with high switching costs and recurring subscription revenue.

Its share price has been pressured by broader tech sector weakness and AI disruption concerns. However, this type of software is very complex and would be very hard for AI to disrupt.

If investors begin to refocus on structural earnings growth rather than short-term macro noise, WiseTech could see sentiment recover quickly.

Bell Potter currently has a buy rating and $87.50 price target on WiseTech’s shares. Based on its current share price of $47.34, this suggests upside of 85% is possible between now and this time next year.

Xero Ltd (ASX: XRO)

A final ASX growth share with rebound potential is Xero.

Xero has been caught up in concerns that artificial intelligence could lower barriers to entry in accounting software. While that risk can’t be dismissed, the company’s platform remains deeply integrated into the operations of small and medium-sized businesses.

Subscriber growth, international expansion, and ecosystem development continue to underpin the long-term story.

After a significant pullback from previous highs, expectations have been reset. If Xero delivers steady execution, even modest positive surprises could drive a sharp share price recovery.

UBS has a buy rating and $174.00 price target on Xero’s shares. Based on its current share price of $78.50, this implies potential upside of 120% for investors over the next 12 months.

The post 3 ASX growth shares that could rebound hard in 2026 appeared first on The Motley Fool Australia.

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