Tag: Stock pick

The race of AI mega-IPOs has a new entrant.

Anthropic, the San Francisco-based AI company behind the Claude platform, filed confidentially with the SEC on 2 June 2026 at a reported valuation of approximately US$950 billion to US$1 trillion.

That would make it, alongside the SpaceX IPO already in progress, one of the two largest stock market debuts in history.

For Australian investors, Anthropic will not be available on the ASX.

However, two ASX-listed companies are already directly embedded in the infrastructure that Anthropic depends on to power its AI models.

Both stand to benefit materially as Anthropic’s public debut draws global attention and capital to the AI infrastructure theme.

What Anthropic actually does

Anthropic was founded in 2021 by former OpenAI employees, including Dario Amodei and Daniela Amodei.

The company competes directly with OpenAI’s ChatGPT and Google’s Gemini, and its Claude platform holds approximately 5% of the chatbot market, according to eMarketer.

More importantly for the investment case, Anthropic’s annualised revenue reportedly crossed US$44 billion as of May 2026. Furthermore, the company is on track to post its first-ever operating profit in Q2 2026.

As more and more capital flows into AI themes, the infrastructure layer beneath the AI stack tends to be a direct beneficiary.

NextDC Ltd (ASX: NXT)

NextDC is Australia’s largest independent data centre operator.

The company is building a massive $7 billion AI data centre campus in Western Sydney, with OpenAI signed on as its foundational customer.

As Anthropic scales its operations and increases its compute consumption to compete with OpenAI’s growing infrastructure, Australian data centre capacity becomes an increasingly critical resource.

NextDC has been growing at an extraordinary pace to meet that demand.

In the first half of FY 2026, NextDC raised its FY 2026 capital expenditure guidance to between $2.7 billion and $3.0 billion. Contracted utilisation surged 60% to 667MW in the March quarter alone.

The Anthropic IPO adds a further dimension to that thesis: as AI company valuations are revalidated at trillion-dollar levels, the infrastructure enabling those companies becomes even more strategically important and even harder to replicate.

Macquarie Technology Group Ltd (ASX: MAQ)

Macquarie Technology plays a different but equally important role in the Australian AI infrastructure stack.

Where NextDC focuses on hyperscale data centre capacity for large cloud and AI customers, Macquarie Technology specialises in sovereign cloud and cybersecurity infrastructure for Australian government agencies and critical industries.

That is a market where Anthropic’s Claude platform and similar AI systems are being deployed. The strict requirements within these deployments are that data must remain onshore and secure.

Macquarie Technology has now delivered 20 consecutive half years of operating income growth. This track record reflects the growing and non-discretionary nature of its customer base.

The company’s $200 million National Reconstruction Fund investment, announced in March 2026, will fund the IC3 Super West data centre expansion designed specifically for AI workloads requiring the highest levels of security and sovereignty.

Anthropic’s Claude platform is increasingly being adopted by Australian government agencies, financial institutions, and critical infrastructure operators.

Many of these organisations cannot use offshore AI infrastructure for regulatory or security reasons.

This creates a captive market for sovereign cloud providers operating on Australian soil.

Macquarie Technology is positioned to capture that demand. And no overseas hyperscaler can replicate what it offers in terms of data sovereignty and security clearance.

The broader AI IPO wave

The Anthropic IPO is not an isolated event.

SpaceX’s roadshow began this week, targeting a US$2 trillion valuation. OpenAI is expected to file later in 2026 at a similarly extraordinary valuation.

Together, these listings represent the single largest concentration of AI industry capital ever brought to public markets simultaneously.

Investment banks, including JPMorgan, Goldman Sachs, and Morgan Stanley, leading these listings, believe the liquidity impact is manageable. There is an estimated US$8 trillion sitting in US money market funds, providing the base demand for these deals.

As that capital flows into public AI companies, the attention and institutional interest in AI infrastructure plays, including those listed on the ASX, is likely to intensify rather than diminish.

The risks worth knowing

Both Nxt DC and Macquarie Technology carry meaningful capital expenditure commitments and are sensitive to interest rate movements given their asset-heavy models.

The Anthropic IPO has not yet been confirmed with a specific date or price. If it is delayed or prices are below expectations, the near-term sentiment benefit for AI infrastructure stocks could be muted.

Furthermore, both stocks have already run significantly in recent years, which limits the margin of safety at current prices.

Foolish Takeaway

Australian investors cannot buy Anthropic directly on the ASX.

But what they can buy is the infrastructure Anthropic depends on to operate.

NextDC and Macquarie Technology are two of the most credible and directly positioned ASX-listed beneficiaries of the AI mega-IPO wave now unfolding.

As trillion-dollar AI valuations are validated in public markets for the first time, the infrastructure enabling those companies becomes not just an investment theme but a critical asset class.

The post The Anthropic IPO could be the next big catalyst for ASX AI infrastructure stocks appeared first on The Motley Fool Australia.

More reading

• Why Macquarie Technology is one of the most interesting AI infrastructure plays on the ASX
• 2 ASX tech shares I think could be worth much more by 2030
• Is NextDC the hottest ASX growth stock right now?
• 3 ASX shares riding the data centre boom that investors keep overlooking
• 2 of the best ASX 200 shares to buy and hold for 10 years

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and JPMorgan Chase. 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 team at Morgans has been busy looking at a number of popular ASX shares this week.

Let’s see if the broker is bullish or bearish on these names. Here’s what it is saying:

ASX Ltd (ASX: ASX)

Morgans was disappointed to see this stock exchange operator provide cost and capital expenditure guidance that was significantly higher than expected.

In light of this, the broker has reduced its earnings estimates beyond FY 2026 and trimmed its valuation accordingly.

This has seen Morgans reaffirm its hold rating with a new price target of $51.50. It said:

ASX released FY27 total cost guidance along with FY28 capex expectations both of which were materially above consensus at the time of release. Whilst the topline shows encouraging growth (+~12.5% FYTD), we anticipate the market to remain cautious given the elevated cost profile as the technology refresh continues.

We lift FY26F EPS ~4% on stronger-than-forecast cash market and Futures/OTC volumes, but lower FY27-FY28F EPS by ~5%, as the updated cost guidance more than offsets the higher revenue base in the outer years. Our DCF/PE-derived PT is lowered to A$51.50 on the above, accompanied by an increase in the house RFR to 4.6%. We maintain our Hold recommendation and note near-term elevated costs will likely remain a headwind.

Endeavour Group Ltd (ASX: EDV)

Another ASX 200 share that Morgans has been looking at is drinks giant Endeavour.

In response to the Dan Murphy’s and BWS owner’s investor day event, Morgans has retained its hold rating on Endeavour’s shares with a reduced price target of $2.80.

While there were positives from the investor day, Morgans highlights that there are execution risks to contend with while trading conditions remain challenging. It commented:

EDV provided a strategic update at its Investor Day with the new management team, led by CEO Jayne Hrdlicka, outlining their plans for growth. As expected, no trading update was provided given the company provided one only a few weeks ago. Management outlined three core growth pillars: 1) grow Retail revenue through repositioning the Dan Murphy’s and BWS offers; 2) improve Hotels performance by stepping up investments in renewals; and 3) reduce costs with $300m in targeted savings by FY29. We make negligible changes to FY26-28F EBIT forecasts; however, underlying NPAT declines by 0-3% due to higher interest expense.

Our target price decreases to $2.80 (from $3.30) reflecting changes to earnings forecasts and a reduction in our FY27F PE multiple to 13x (from 15x). While the Investor Day highlighted a range of revenue and cost opportunities, these require accelerated investment and are expected to keep balance sheet leverage elevated through FY27. Execution remains key, and with the liquor market still challenging, we prefer to wait for delivery before reassessing our view. HOLD retained.

Judo Capital Holdings Ltd (ASX: JDO)

Morgans is more positive on this small business lender.

It was pleased with management’s decision to undertake a second capital relief securitisation transaction. Morgans believes it reduces the need for an equity raising.

As a result, the broker has retained its buy rating with a $2.15 price target. It commented:

JDO announced its second capital relief securitisation transaction backed by SME business loans. The transaction is significant as it shows JDO’s ability to again source and its willingness to utilise capital relief securitisations to support its CET1 capital ratio without the need for equity raisings. Target price of $2.15 per share, with strong double digit earnings growth forecast across FY26-28F. BUY retained, with potential TSR at current prices of c.38% (driven entirely by capital growth).

The post Buy, hold, sell: ASX, Endeavour, and Judo Capital shares appeared first on The Motley Fool Australia.

More reading

• This ASX bank stock has rebounded 7% from a 2-year low, and is tipped to climb up to 76% higher
• Leading brokers name 3 ASX shares to buy today
• Why Endeavour Group’s hotel portfolio could be more valuable than the market realises
• Here are the top 10 ASX 200 shares today
• Why are these 3 ASX 200 stocks crashing in this week’s rebounding market?

Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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.

A $5,000 investment can go a long way when spread across a handful of quality ASX dividend shares.

The key is finding businesses with the cash flows, assets, or market positions to support shareholder returns over time.

With that in mind, here are five ASX dividend shares that could be worth a closer look this month.

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent.

It is one of Australia’s leading footwear and lifestyle retailers, with brands and store networks covering sports, streetwear, and casual fashion.

Retail can be a tough place when households are under pressure, but Accent has built a broad portfolio across well-known banners and owned brands. This gives it different ways to reach customers across stores and online.

The company’s earnings can be cyclical, but when trading conditions improve, its cash generation can support attractive dividends.

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend share that could be worth a look is Harvey Norman.

The retailer has been through plenty of consumer cycles before and remains a major player in furniture, electronics, appliances, bedding, and household goods.

What makes Harvey Norman different from many retailers is its property portfolio. This gives the business an extra layer of asset backing and makes the investment case broader than store sales alone.

Consumer spending remains a risk, but its brand, franchise model, and property exposure could continue supporting dividends over time.

Macquarie Group Ltd (ASX: MQG)

A third ASX dividend share for income investors to consider is Macquarie.

Macquarie is not a traditional income stock, but it has a long record of rewarding shareholders while also reinvesting for growth.

Its operations span asset management, commodities, infrastructure, green energy, banking, and markets. That gives the company several ways to generate earnings across different conditions.

The company’s dividends can move with profits, so income may not be perfectly smooth. But Macquarie’s global platform and capital allocation record make it a high-quality option for investors seeking both income and growth.

Rural Funds Group (ASX: RFF)

A fourth ASX dividend share to look at for the $5,000 investment is Rural Funds.

This agricultural property owner leases farmland and related assets to operators across sectors such as cattle, almonds, macadamias, vineyards, and cropping.

That means it is more focused on rental income than directly running farms. This can provide a more predictable income stream than many agricultural businesses.

Overall, Rural Funds offers exposure to real assets and a dividend profile that stands apart from the usual bank and resource names.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend share for income investors to consider is Universal Store.

The youth fashion retailer operates brands including Universal Store, Perfect Stranger, and Thrills. It serves a clearly defined customer base and has been expanding its store network and online presence.

Fashion retail can be volatile, particularly when consumer confidence weakens. But Universal Store has a strong niche, a clean balance sheet, and room to keep growing its footprint.

If it continues executing well, it could provide both dividend income and long-term growth potential.

The post 5 ASX dividend shares to buy with $5,000 this month appeared first on The Motley Fool Australia.

More reading

• Why Catapult Sports, Harvey Norman, Inghams, and Opthea shares are sinking today
• Can you turn $20,000 into $100,000 with ASX shares?
• Why’s the ASX 200 falling today despite another tech rally?
• 2 ASX shares that I rate as buys today for both growth and dividends
• Forget BHP shares! Buy these ASX dividend shares instead for passive income

Motley Fool contributor James Mickleboro has positions in Accent Group and Universal Store. 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 Harvey Norman, Macquarie Group, and Rural Funds Group. The Motley Fool Australia has recommended Accent Group and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Superannuation is a very effective tool to invest in ASX shares for passive income because of the lower tax rate.

The return we should focus on is the after tax return. Its therefore advantageous that superannuation has a lower tax rate than what it would be for a full-time working Australian with their individual tax rate. For people in retirement, the tax rate in superannuation could be zero.

With that in mind, I think the below two ASX shares are very effective options for $7,500 in superannuation.

Future Generation Global Ltd (ASX: FGG)

I imagine plenty of retirees may not have substantial diversification with their assets. There may be a significant focus on Australian businesses and Australian property.

Considering the ASX only makes up around 2% of the global share market, it could be wise to look at investments that give exposure to some of the other 98%.

I believe Future Generation Global is a good option for both diversification and income.

In terms of the diversification, it’s currently invested in the funds of 16 fund managers who invest in global shares. Across those funds, Future Generation Global has exposure to more than 3,700 shares from around the world. It’s invested in shares from North America, the UK, Europe, Asia, other developed markets and emerging markets.

On the income side of things, it has increased its annual dividend per share each year since 2019, meaning it has given investors several years of consecutive dividend growth.

Excluding the special dividend in 2025, it currently has a grossed-up dividend yield of 6.9%, including franking credits, at the time of writing. I think that’s a solid start for superannuation investors.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the other ASX share I want to highlight, it’s an investment house that has been operating for more than 120 years – it’s one of the oldest businesses on the ASX and it has a great track record of longevity.

The business is invested in a variety of sectors such as industrial property, swimming schools, agriculture, water rights, telecommunications, energy, retail and plenty more. I think it’s great that the business is diversified and has the investment flexibility to alter its portfolio over time towards the best opportunities it can see.

Its portfolio has been deliberately positioned to be defensive and generate resilient cash flow, so it’s able to provide reliable and growing dividends over time. It has actually increased its regular annual dividend every year since 1998, meaning there’s a high likelihood it will increase its payout again with the FY26 result.

The company doesn’t have the biggest dividend yield around, but that’s partly because it has a healthy dividend payout ratio, retaining some of its profit each year to invest in more opportunities.

Its latest two dividend payments equate to a grossed-up dividend yield of 3.6%, including franking credits.

The post How to invest $7,500 for passive income in superannuation? appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $9,000 monthly passive income?
• 2 ASX shares with dividend yields above 8%
• 15 ASX shares going ex-dividend before EOFY
• 3 ASX dividend shares raising dividends like clockwork
• Screaming buys: My top 5 favourite stocks in the world

Motley Fool contributor Tristan Harrison has positions in Future Generation Global and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Commonwealth Bank of Australia (ASX: CBA) share price has been one of the biggest talking points on the ASX.

The banking giant’s shares are currently trading at $164.76. That compares with a 52-week low of $146.97 and a 52-week high of $192.00.

So, after that pullback from its highs, how should investors think about its valuation?

Start with earnings

One simple way to value CBA is to compare its share price with expected earnings.

Consensus estimates have CBA generating earnings per share of $6.54 in FY 2026 and $7.04 in FY 2027. That compares with $6.17 per share in FY 2025.

This means the market is expecting earnings per share to grow by approximately 6% in FY 2026 and then a further 8% in FY 2027. Across the two-year period, that works out to compound annual earnings growth of approximately 7%.

Based on the current share price of $164.76, CBA is trading on approximately 25.2x estimated FY 2026 earnings.

Looking further ahead, the bank is trading on approximately 23.4x estimated FY 2027 earnings.

That is a high multiple for a major bank, particularly one with earnings expected to grow at a mid to high single-digit rate rather than at the pace normally associated with high-growth companies.

How does that compare historically?

This is where the valuation debate becomes more interesting.

Over the past 10 years, CBA’s average annual price-to-earnings ratio has ranged from around 13.5 times to 24.7 times. Across those years, the average comes out at approximately 17.3 times earnings.

That means CBA is still trading well above its longer-term average multiple, even after falling from its 52-week high.

There are reasons why investors have been willing to pay a premium. CBA has the strongest retail banking franchise in Australia, a leading digital offering, a large deposit base, and a track record of strong profitability.

But valuation is still important. A great business can produce disappointing returns if investors pay too much for it.

What about dividends?

Income investors may also value CBA based on its dividends.

The market expects fully franked dividends of $5.15 per share in FY 2026 and $5.45 per share in FY 2027. That is up from $4.86 per share in FY 2025.

Based on the current share price, this implies forward dividend yields of approximately 3.1% in FY 2026 and 3.3% in FY 2027.

Those dividend yields are useful, especially once franking credits are included. But they are not especially high compared with some other ASX dividend shares or with what CBA itself has offered at lower valuations in the past.

Is the CBA share price good value?

CBA remains a very high-quality bank. Its brand, technology, customer base, and balance sheet strength all help justify a valuation premium.

The question is how much of a premium is reasonable.

At more than 23x FY 2027 earnings, the market is valuing CBA more like a growth stock than a traditional bank. Yet the earnings outlook points to steady growth rather than explosive growth.

There is a reason that investors are willing to pay up. Defensive earnings, strong capital levels, fully franked dividends, and a dominant retail banking franchise are all valuable, particularly in uncertain markets.

But investors still need to ask whether they should value those qualities this highly.

The CBA share price is no longer at its highs, but on traditional earnings measures, it still arguably looks expensive compared with its own history.

For the current valuation to be justified, the bank may need to keep delivering clean earnings growth, defend margins, and avoid a meaningful deterioration in credit quality. That’s easier said than done in the current environment.

The post How to value the CBA share price appeared first on The Motley Fool Australia.

More reading

• How combining superannuation and ASX shares can set you up for retirement better than property
• Why the RBA’s next move could be the most important event for ASX shares in 2026
• Is this ASX financials stock a better buy than CBA shares?
• Should you buy CBA and NAB shares this week?
• Brokers rate these 5 ASX 200 shares as a sell!

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

There is a category of ASX stock that tends to get overlooked: quality consumer businesses that are not retailers, not banks, and not miners.

They do not fit neatly into any of the narratives dominating the market in 2026.

Breville Group Ltd (ASX: BRG) is a perfect example.

The Sydney-based designer and distributor of premium kitchen and home appliances operates across more than 70 countries, generates consistent earnings growth, and has outperformed its global industry peers for the better part of a decade.

Yet Breville shares are down approximately 23% from their peak of $37.11, and barely anyone is talking about them.

This has created an interesting situation for patient investors.

Why Breville keeps outperforming its peers

Breville does not compete on price.

The company rather competes on design, innovation, and the aspirational appeal of its premium brands. These include Breville in Australia and the US and Sage in Europe and the UK.

Breville’s positioning insulates the business from the margin pressure that squeezes lower-end appliance manufacturers when commodity costs rise or consumer budgets tighten.

Macquarie has been tracking the global small appliance industry for years and its data offers clear insight.

Breville has outperformed the industry benchmark by approximately 11% per annum between 2018 and 2024.

Most remarkably, Breville is one of only a handful of global appliance companies whose revenue is currently above pandemic-era peaks, a group that also includes Nespresso and De’Longhi.

Every other major player is still trying to recover to their 2021 revenue levels. Meanwhile, Breville has already blown past them.

The FY2025 result confirmed the momentum

The most recent full-year result delivered further evidence of the outperformance story.

Breville reported FY2025 revenue growth of 10.9% and a 14.6% increase in NPAT, with the global products segment. This segment accounts for the overwhelming majority of revenue, delivering constant currency growth of 13.0% in the December 2024 half.

The coffee segment continues to be the primary growth engine, benefiting from the ongoing premiumisation trend in home coffee preparation that accelerated during the pandemic.

New market development, particularly in Asia and Latin America, is adding a further growth dimension that is still in its early stages.

What Macquarie thinks about Breville shares

Macquarie retained its outperform rating on Breville shares this week with a $37.10 price target.

The broker was pleased with the most recent industry data.

At the current Breville shares price of approximately $26.26, that $37.10 target implies upside of approximately 30%.

Furthermore, Macquarie forecasts Breville’s dividend to grow from 39.1 cents per share in FY2026 to 51.1 cents by FY2028.

This is a 31% increase in the payout over three years, backed by earnings growth the broker describes as highly visible given the company’s long order pipeline and global distribution reach.

The risks worth acknowledging

Breville is not without risk.

Consumer discretionary spending is under pressure from the RBA’s rate hiking cycle, and a sustained deterioration in household budgets could delay appliance upgrade cycles.

The strong Australian dollar reduces the AUD value of overseas earnings when translated back to domestic reporting currency.

Lastly, tariff risk in the United States, where a significant portion of revenue is earned, has not fully resolved despite some moderation in the trade tension environment.

Foolish takeaway

Breville shares have drifted lower while the underlying business has kept outperforming every global benchmark the industry tracks.

Macquarie has done the homework and arrived at a bull case backed by three years of forecast dividend growth.

For investors looking for a quality consumer stock that the market has temporarily lost interest in, Breville shares look like exactly the kind of opportunity that tends to reward patient investors.

The post Breville shares could be the most underrated consumer shares on the ASX right now appeared first on The Motley Fool Australia.

More reading

• Can you turn $20,000 into $100,000 with ASX shares?
• How to get wealthy investing $300 a month into ASX shares
• Leading brokers name 3 ASX shares to buy today
• Why did ASX 200 retail shares lead the market last week?
• 2 strong Australian stocks to buy now with $9,000

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

ASX small-caps can be a high upside allocation for an investor’s portfolio. 

While diversification and long-term principles should still be the fundamental base of a healthy strategy, ASX small-caps can provide increased potential compared to blue-chip stocks.

For investors looking to monitor smaller companies with big potential, brokers have tipped these two options to rise significantly.

Biome Australia Ltd (ASX: BIO)

Biome Australia develops and commercialises clinically backed innovative live biotherapeutics (probiotics), marketing 18 products under the ‘Activated Probiotics’ Brand. 

As is the case with small-caps, it has experienced plenty of volatility recently. 

It was making headlines yesterday after rocketing 20% in a single session after signing a new manufacturing agreement.

In a new report from Bell Potter, the broker has predicted this rise can continue in the next 12 months. 

The broker has a $1.00 price target on this ASX small-cap, indicating a massive 270% upside from current levels. 

In the report, Bell Potter highlighted that Biome Australia has announced an initiative to derisk and diversify its supply chain. The company is doing this by introducing contract manufacturing in its home market of Australia of assembly and packaging of its Activated Probiotics range. 

The initial two-year term with Specialty Probiotics Australia (SPA) is on an exclusive basis. It is subject to limited carve outs and meeting quality and delivery standards.

Conceptually, this is a positive and material development that should enhance operating leverage and BIO’s capacity to plan for growth, which has been impeded to some degree by relying completely on importing finished product. Assuming BIO continues to build its domestic franchise, we can see a path to $100m in Australian sales, with attractive margins.

Imricor Medical Systems Inc (ASX: IMR)

Imricor Medical Systems is a medical device company. It engages in the design, manufacture, and distribution of magnetic resonance imaging (MRI) compatible products for cardiac catheter ablation procedures.

It has also experienced volatility in 2026, but remains up 6% year to date. 

The team at Morgans believes this ASX small-cap could be an upside play. 

There are multiple near-term catalysts approaching which when achieved will see a share price re-rating. IMR is now well funded to deliver on clinical, regulatory, and commercial objectives. We have updated our model and valuation for the capital raise. Our target price is A$2.61 (was $2.63). We maintain our SPECULATIVE BUY recommendation.

From yesterday’s closing price of $1.74, the price target from Morgans indicates a 50% upside for this ASX small-cap. 

The post 2 ASX small-caps with 50% and 270% upside according to Brokers appeared first on The Motley Fool Australia.

More reading

• How to value the CBA share price
• Breville shares could be the most underrated consumer shares on the ASX right now
• Why experts think this ASX growth share can rise 63% in a year
• Which defensive shares are outperforming the ASX 200
• 5 things to watch on the ASX 200 on Thursday

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.

The ASX growth share Siteminder Ltd (ASX: SDR) could be one of the most undervalued businesses on the ASX right now. Experts believe the ASX stock could deliver great returns from here.

As the above chart shows, the Siteminder share price has sunk around 50% since October 2025. But, investor fears about AI could be overblown and the company’s ongoing financial success with its hotel software may help justify a resurgence.

Experts predict big returns

According to CMC Invest, the business has a 100% positive backing from analysts who have rated the business within the last three months – all six were a buy.

The average price target on the ASX growth share is $6.35. A price target tells us where analysts think the business will be trading in a year from now. Therefore, at the time of writing, those analysts suggest the Siteminder share price could rise by 63% over the next year.

The most optimistic price target is $7.32, implying a possible rise of around 90%. Even the most pessimistic price target is $5.30, suggesting a rise of 36%, which would very likely be a market-beating return if that happened.

Price targets are not guarantees, of course, but it’s clear that analysts think the business is undervalued, and I believe the company is delivering what it needs to for long-term success.

Strong financial performance

Two of the most important things that an ASX growth share can do is grow its revenue and increase its profit margins. When a business does that, it can lead to a rapidly improving bottom line, which is usually what investors value a business on.

It’s winning in a number of ways, including attracting new hotels, growing its average revenue per user (ARPU), offering its distribution engine to other hospitality software providers, and growing its profit margins.

In the FY26 half-year result, annualised recurring revenue (ARR) grew by 29.7% to $280.3 million thanks to the accelerating contributions from its smart platform modules, alongside its continued strength across the broader business.

It also reported in HY26 that ARPU grew 11.3% to $435 and net property additions were 2,900 (taking the total to 53,000) – its current focus is winning larger hotels.

On the margin side of things, the adjusted group gross margin improved by 98 basis points to 67.8%, while the adjusted operating profit (EBITDA) more than doubled in dollar terms to $12.3 million.

If ARR continues growing at well over 20% per year, I think the ASX growth share can deliver a wonderful performance for investors in the next three years.

According to the forecast on CMC Invest, it’s projected to generate 11.7 cents of earnings per share (EPS) in FY28. That means, at the time of writing, the Siteminder share price is valued at 32x FY28’s estimated earnings. I believe it’s a great time to invest in this business for the long-term.

The post Why experts think this ASX growth share can rise 63% in a year appeared first on The Motley Fool Australia.

More reading

• 2 ASX growth shares to buy now while they’re on sale
• Here are the top 10 ASX 200 shares today
• How to invest in ASX shares during such an uncertain period
• Here are the top 10 ASX 200 shares today
• Why Galan Lithium, Life360, Select Harvests, and Siteminder shares are storming higher

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

It’s been a down year thus far for ASX 200 shares. 

Australia’s benchmark index has experienced volatility in 2026. 

This has been due to several headwinds including inflation, interest rate hikes and global conflict. 

At the time of writing, the S&P/ASX 200 Index (ASX: XJO) is essentially flat for the year to date.

The case for defensive shares

With market volatility continuing to rattle investors in 2026, defensive ASX shares are once again proving their worth. 

Companies operating in essential sectors such as consumer staples, utilities, and telecommunications tend to generate relatively stable earnings regardless of economic conditions. 

This makes them attractive when growth stocks are under pressure. 

While defensive shares may not deliver the market’s biggest gains during bull runs, their ability to preserve capital, maintain reliable cash flows, and often pay consistent dividends can provide valuable stability during uncertain periods. 

For long-term investors, the recent market weakness could present an opportunity to accumulate high-quality defensive businesses at more attractive valuations while positioning a portfolio to better withstand further volatility.

Here are three examples of defensive shares that have held steady in 2026 and outperformed the ASX 200. 

Woolworths Group Ltd (ASX: WOW)

Woolworths shares are a popular defensive option amongst investors. 

As one of Australia’s supermarket giants, it sells essential products that consumers continue to buy regardless of economic conditions. 

This resilience helps support relatively stable revenue and cash flow, making Woolworths a popular choice for investors seeking stability during periods of market volatility.

This has been on full display this year, as Woolworths shares have risen almost 20% year to date. 

Telstra Group Ltd (ASX: TLS)

Telstra is often viewed as a defensive stock because it provides essential telecommunications services that households and businesses rely on regardless of economic conditions. 

Its recurring revenue from mobile, internet, and infrastructure services helps support relatively stable cash flows even during periods of market volatility.

So far in 2026, it has been able to shake some of the broader market sell-offs and rise just over 5%. 

It also provides some volatility relief through its historically high dividend yield, which can also provide passive income during down periods of capital growth. 

Transurban Group (ASX: TCL)

Finally, Transurban Group is considered defensive because it operates toll roads that generate predictable, usage-based revenue from essential commuter and freight traffic. 

Its long-term concession agreements and inflation-linked pricing features further enhance the stability and visibility of its cash flows through economic cycles.

The company has seen its share price rise 6% so far year to date, outperforming the broader ASX 200. 

The post Which defensive shares are outperforming the ASX 200 appeared first on The Motley Fool Australia.

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• Australia’s minimum wage just rose 4.75%. Here is what it means for ASX consumer stocks
• Are Woolworths shares a good buy for passive income?
• Why’s the ASX 200 falling today despite another tech rally?

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

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a positive session and raced higher. The benchmark index rose 0.7% to 8,785.7 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to tumble

It looks set to be a poor session for Australian investors on Thursday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 65 points or 0.75% lower this morning. In the United States, the Dow Jones was down 1.2%, the S&P 500 fell 0.75%, and the Nasdaq dropped 0.9%.

Megaport shares on watch

Megaport Ltd (ASX: MP1) shares will be on watch today if they return from their trading halt. The network solutions company is currently undertaking a capital raising after announcing four new artificial intelligence (AI) infrastructure contracts with a combined total contract value of approximately $458.9 million. Megaport’s CEO, Michael Reid, said: “AI inference is becoming a global infrastructure challenge, not simply a GPU problem. As AI adoption accelerates, organisations need seamless access to GPUs, CPUs, storage, and the connectivity that powers them. Megaport is built to deliver it all.”

Oil prices rise

It could be a good day for ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.7% to US$96.31 a barrel and the Brent crude oil price is up 2.1% to US$98.00 a barrel. An escalation in US-Iran tensions sent oil prices charging higher last night.

Buy SRG shares

The SRG Global Ltd (ASX: SRG) share price has more than doubled in value over the past 12 months. Despite this, Bell Potter believes the diversified industrial services company’s shares are good value. In response to a contracts update, the broker has retained its buy rating with an improved price target of $4.25 (from $3.15). It said: “Management have demonstrated a strong track-record of operational execution, delivered accretive acquisitions (Diona and TAMS in recent years) and guidance outperformance. We see upside to consensus earnings forecasts from forthcoming guidance upgrades and accretive acquisitions. With FCF expanding over FY26-28, we anticipate SRG will be well capitalised to self-fund acquisitions.”

Gold price drops

It looks likely to be a tough session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price dropped overnight. According to CNBC, the gold futures price is down 1.15% to US$4,467.4 an ounce. Higher oil prices have fuelled inflation and rate hike fears.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why the ASX 200 is rallying despite a weaker growth warning
• Why Acrow, Ampol, Medallion Metals, and Northern Star shares are racing higher
• Why is everyone talking about Megaport, Ampol and Northern Star shares on Wednesday?
• 2 major ASX gold companies which can go much higher according to brokers

Motley Fool contributor James Mickleboro has positions in Megaport and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.