Tag: Stock pick

The DroneShield Ltd (ASX: DRO) share price is taking a hit today.

Shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company closed on Friday trading for $1.715. In morning trade on Monday, shares are changing hands for $1.680 apiece, down 2%.

For some context, the ASX 200 is up 1.1% at this same time.

As you’re likely aware, the DroneShield share price has come under tremendous pressure since rocketing to a record closing high of $6.50 on 9 October.

Among other issues, investors have been selling amid media speculations that the company’s sales could be impacted by the rise of drones using fibre optic technology.

And, of course, on 13 November, the share price crashed 31.4% following news that CEO Oleg Vornik had sold $49.47 million shares in the company the previous week, with several other directors also offloading sizeable shareholdings.

Today, DroneShield sought to reassure the market with a response to recent media reporting.

DroneShield share price slides on media response

Acknowledging that in recent weeks the company’s level of stakeholder engagement has fallen short of expectations as it’s been focused on engaging with the Australian Securities Exchange, DroneShield chairman Peter James said:

DroneShield is committed to undertaking an independent review of its continuous disclosure and securities trading policies and other areas, as stated in the 20 November 2025 response to the ASX.

That review will be overseen by independent directors, Simone Haslinger & Richard Joffe. It reflects DroneShield’s commitment to transparency and continuous improvement as the company grows.

As for the growth outlook for the DroneShield share price, CEO Oleg Vornik said, “The fundamental business of DroneShield remains strong and unchanged.”

Vornik added:

The company continues to deliver record revenues, expand globally, and invest in technological innovation to meet evolving customer needs. Record revenues in 2025 have been driven by repeat customers, reflecting market confidence in DroneShield’s solutions.

The company noted that Vornik continues to hold a mix of vested and unvested performance options in DroneShield.

What about fibre optic drones?

The DroneShield share price has also faced headwinds amid recent analyst and media speculations that fibre-optic drones are becoming commonplace on battlefields and cannot be taken out by DroneShield’s jamming technology.

In response, the company said it relies on feedback from frontline customers and insights from real-world deployments. DroneShield noted that its solutions are informed by extensive operational experience and customer engagement.

Management said that recent reports implying fibre-optic drones are becoming mainstream “are not consistent with field realities”. They cited a recent interview with a Ukrainian Deputy Prime Minister who described fibre-optic drones as “sluggish” and said these are rarely used due to operational challenges.

Leadership news

On the global leadership front, DroneShield reported that Tom Branstetter, Vice President of Sales and Business Development, who the company said has been a key contributor to the success of its US presence in recent years, has taken on a larger role and will lead the company’s US operations in the interim.

With today’s intraday fall factored in, DroneShield shares are down 74.2% from the 9 October all-time highs.

Taking a step back, shares remain up 121.5% over 12 months.

The post DroneShield share price hit as company strikes back appeared first on The Motley Fool Australia.

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• DroneShield directors’ share sales and contract error: What investors need to know

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

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Due to the strong performance of Berkshire Hathaway‘s stock over many decades and to its leader, the legendary Warren Buffett, investors are always excited to get a glimpse at Berkshire’s recent portfolio moves each quarter. Large funds are required to disclose changes to their portfolio no later than 45 days after the end of each quarter.

Even with Buffett set to step down at the end of the year, Berkshire is one of the strongest companies in the world and has an extraordinary team of investors. In the third quarter, Berkshire sold more of its stake in Apple and piled into another “Magnificent Seven” stock that trades at a fraction of Tesla‘s valuation.

Berkshire continues to offload its largest position

In Q3, Berkshire sold another 15% of its Apple shares, reducing its position to 238.2 million shares, which were valued at $60.6 billion at the end of the quarter. Apple remains Berkshire’s largest equity holding, consuming 21% of Berkshire’s massive $309 billion equities portfolio.

It shouldn’t surprise investors too much to see Berkshire continuing to pare its Apple position. As Buffett said back in 2020 when Berkshire dumped all of its airline stocks during the pandemic, “When we sell something, very often it’s going to be our entire stake: We don’t trim positions. That’s just not the way we approach it any more than if we buy 100% of a business. We’re going to sell it down to 90% or 80%.”

Investors must also realize, if they haven’t already, that due to Berkshire’s size, the company cannot enter and exit positions as easily as a retail trader on Robinhood. Its positions are so large that it takes time to build positions to the desired size, and conversely, it takes time to offload positions. Since the start of 2023, Berkshire has now slashed its stake in Apple by 74%, indicating that the large conglomerate is preparing for a full exit.

It’s tough to pinpoint exactly when Berkshire started to sour on the company, but Apple has faced issues this year due to tariffs and what many investors perceive to be a lack of an artificial intelligence (AI) strategy. The stock has recovered from its losses earlier this year and is now performing well. Who knows, perhaps the company’s decision not to invest as much in AI infrastructure may prove prudent, but investors at Berkshire seem to have made up their minds.

Initiating on this cheaper “Magnificent Seven” name

Berkshire’s significant move came from the initiation of a new position in Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL). The company purchased over 17.8 million shares, valued at more than $4.3 billion, at the end of Q3. The position consumes 1.6% of Berkshire’s portfolio.

Alphabet has had an eventful year. Last year, a federal judge ruled that Google deployed monopolistic practices in its search and advertising business that violated antitrust law. The U.S. Department of Justice asked the courts to order Alphabet to divest its Google Chrome business as punishment. Chrome is a key component of Alphabet’s large search business, and investors were concerned this might come to fruition.

Ultimately, though, the courts did not compel Google to do this. Furthermore, the federal judge in its ruling stated that Google could continue the practice of paying companies, such as Apple, tens of billions of dollars to use Google as their default search engine on the Safari browser. Investors hailed the ruling as a win for the company.

Investors have also been concerned about how AI chatbots like ChatGPT may impact Google’s search business but have since been more satisfied with the performance of Google’s overviews and AI Mode, giving them greater confidence in Google’s ability to retain its leading 90% market share of the search market.

Buffett and the team at Berkshire are value investors at their core, meaning they seek to invest in companies trading at a discount to what Berkshire views as their intrinsic value. While many are wary of the red-hot and highly valued AI sector, Alphabet has traded at the bottom of the group in terms of forward price-to-earnings, with a valuation that is a fraction of Tesla’s.

GOOG PE Ratio (Forward) data by YCharts.

It’s easy to see why Berkshire is intrigued with Alphabet. The stock is cheap compared to peers, and the company runs several industry-leading businesses with high growth potential aside from search, including YouTube, WayMo’s autonomous vehicle fleet, Google Cloud, and even its own chip business.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Warren Buffett Is Selling Apple and Piling Into This “Magnificent Seven” Stock Trading at a Fraction of Tesla’s Valuation appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Bram Berkowitz 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 Alphabet, Apple, Berkshire Hathaway, and Tesla. The Motley Fool Australia has recommended Alphabet, Apple, and Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX small-cap stock Australian Ethical Investment Ltd (ASX: AEF) has a compelling outlook, and it could be a great buy right now at $6.11. As the chart below shows, it has dropped by 25% since the August 2025 peak.

This business describes itself as one of Australia’s leading ethical investment managers. It provides investment management products that align with its values and provide long-term, risk-adjusted returns. Its investments are guided by the Australian Ethical Charter, which influences its ethical approach and underpins its culture and vision.

As a business that provides investment funds, its success is heavily linked to its funds under management (FUM). So, recent share market volatility has also led to shareholders being uncertain in the short term. But this makes the ASX small-cap stock seem like a bargain for a few reasons.

Superannuation inflows

Australian Ethical is a provider of superannuation as well as normal investment products.

Aussies regularly contribute to their superannuation, whether that’s through the mandatory employee contribution of 12% of their wage, or other non-mandatory contributions.

Australian Ethical sees positive superannuation contributions each quarter – in the three months to 30 September 2025, it saw $0.12 billion of superannuation net inflows. This helped the FUM grow from $13.94 billion at June 2025 to $14.28 billion at September 2025.

I’m expecting the company to continue seeing superannuation net inflows for the long term, which is positive for its future earnings potential.

Investment returns by the ASX small-cap stock

FUM growth is key for the business because of how it generates management fees for Australian Ethical.

Investment markets are not guaranteed to rise every quarter or every year. But, the fund manager can benefit from increasing FUM thanks to the rise of share markets as profits grow over time.

In the first quarter of FY26, the business reported a $0.28 billion boost to FUM over the three months, thanks to investment returns. If Australian Ethical’s investment team performs adequately, the investment returns could deliver a majority of the FUM growth, so it’s essential.

During FY25, its FUM benefited from $593 million of organic net flows and $1.05 billion from investment performance.

Better valuation with rising earnings

A number of the company’s financial metrics are going in the right direction at a good pace.

In FY25, revenue grew by 19% to $119.4 million, and operating expenses only increased by 14% to $84.5 million, leading to 29% growth of underlying net profit after tax (NPAT) to $23.8 million.

Pleasingly, as this fund manager grows, it doesn’t necessarily need to see expenses grow at the same pace. If FUM rises 15%, it doesn’t need 15% more people or 15% more office space to manage that money. In FY25, the cost-to-income (CTI) ratio improved to 71.4%, compared to 73.7% in FY24.

If the company continues growing its FUM, then its margins could continue rising, helping accelerate its bottom line.

Following its 25% decline, I think the ASX small-cap stock looks much better value.

The post Why I think this ASX small-cap stock is a bargain at $6.11 appeared first on The Motley Fool Australia.

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

Gentrack Group Ltd (ASX: GTK) shares are starting the week with a bang.

In morning trade, the ASX 300 tech stock is up a massive 21% to $8.01.

This follows the release of the utilities and airport software company’s full year results for FY 2025.

ASX 300 tech stock rockets on results day

For the 12 months ended 30 September, Gentrack posted an 8% increase in revenue over the prior corresponding period to NZ$230.2 million. This was in line with its guidance for the financial year.

Recurring revenue jumped 13% to NZ$155.4 million, with both its Airports (Veovo) and Utilities divisions contributing to the uplift.

The company’s Utilities arm saw revenue increase 7% to $193.4 million. This was driven by a 12% rise in recurring revenue from new customer wins and platform upgrades.

The airports division, Veovo, also delivered a strong year, operating across more than 25 countries and 150 airports. Revenue rose 15% to NZ$36.8 million, with underlying revenue growth of 30% excluding hardware sales. Recurring revenue increased 18%, supported by new customer wins in the UK and Middle East and upgrade activity across the Asia–Pacific region.

EBITDA came in at NZ$27.8 million for the 12 months, which represents 18% growth over the prior year. Importantly, the company emphasised that this result was achieved despite expensing all R&D and g2.0 investment costs.

On the bottom line, the ASX 300 tech stock record a statutory net profit after tax of $20.9 million, marking a substantial 119% year-on-year increase. This result included a $2.2 million loss relating to Gentrack’s 10% stake in Amber, as well as $3.2 million in foreign exchange gains from the appreciation of key currencies such as the British pound.

Cash generation remained strong in FY 2025, with year-end cash of $84.8 million. This is up $18.1 million from FY 2024.

However, the board has elected not to pay a dividend, noting that both the Utilities and Veovo businesses operate in high-growth and consolidating markets. It believes that capital is best directed toward expansion.

Outlook

The ASX 300 tech stock’s management team is confident that its growth will continue in FY 2026.

It signalled further momentum ahead, stating that it is “confident that revenue growth will be higher in FY26 than in FY25.” Though, it concedes that it is too early to provide detailed guidance.

Looking further out, Gentrack reiterated its mid-term target of more than 15% compound annual revenue growth and an EBITDA margin of 15%–20%, with all development costs continuing to be expensed.

Despite today’s strong gain, the company’s shares remain down by 30% since the start of the year.

The post Why is this ASX 300 tech stock rocketing 21% today? 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 positions in and has recommended Gentrack Group. The Motley Fool Australia has positions in and has recommended Gentrack Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Accent Group Ltd (ASX: AX1) shares tumbled more than 15% last Friday following the company’s trading update.

Accent Group is a footwear and clothing retailer, wholesaler, and distributor.

It owns and operates over 800 retail stores across Australia and New Zealand, and has exclusive distribution rights for an extensive portfolio of original and international brands.

The company has now seen its share price fall more than 50% year to date, including last week’s selloff. 

Accent Group shares closed last week trading at $1.02 each. 

The Motley Fool’s James Mickleboro reported last Friday that the company expects its first-half earnings before interest and tax (EBIT) to be in the range of $55 million to $60 million. 

This is down sharply from $80.7 million in the first half of FY 2025.

Looking ahead, management is guiding to full-year EBIT in the range of $85 million to $95 million. This will be down from $110.2 million in FY 2025.

Following the fall, Morgans provided fresh analysis on the footwear retailer, which included a hold recommendation and a reduced target price. 

Here’s what the broker had to say. 

Weak sales trading update

Morgans said in Friday’s note that the company provided a weak sales trading update for the first 20 weeks of FY26. The company pointed to persistent and challenging retail trading conditions, as well as continued heavy promotional activity, which is impacting margins. 

As a result, Accent Group significantly downgraded its FY26 guidance, now expecting EBIT of between $85m and $95m, representing a 14% to 23% year-over-year decline (compared to the previous guidance of high single-digit growth). 

We have lowered our earnings forecasts in line with the bottom end of updated guidance range. We have lowered our EBIT by 27% and 24% in FY26/27 respectively.

Accent Group share price target reduced

Based on this guidance, Morgans has moved its recommendation to a hold, citing ongoing challenging trading conditions and earnings volatility. 

The broker now has a $1.10 price target (previously $1.65) on Accent Group shares. 

From Friday’s closing price of $1.02, this indicates a modest upside of 7.8%. 

The post What’s Morgans’ view on Accent Group shares after Friday’s sell off? appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While some ASX ETFs track international stocks and indexes, there are many that solely include Australian holdings. 

Despite last week’s broad sell-off, there remain many ASX-focused ETFs that have brought big returns this year.

As the calendar year nears its end, let’s look at the sectors or strategies that have paid off in 2025. 

VanEck Australian Resources ETF (ASX: MVR)

Australian resources have returned to form in 2025. 

MVR gives investors exposure to a diversified portfolio of ASX-listed resources companies. 

At the time of writing, the ASX ETF has 31 underlying holdings.

This includes blue-chip companies like BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Woodside Petroleum Ltd (ASX: WDS). 

This fund’s exposure to gold shares has also influenced its strong performance. 

Since the start of the year, it has risen 28.5%. 

BetaShares Australian Small Companies Select Fund (ASX: SMLL)

This ASX ETF offers a portfolio of ASX-listed companies that are generally within the 91-350 largest by free float market capitalisation. 

SMLL’s index uses screens that aim to identify companies with positive earnings and a strong ability to service debt. 

Relative valuation metrics, price momentum, and liquidity are also evaluated as part of the selection process.

At the time of writing, it comprises 66 holdings, with no individual company accounting for more than 5.1%. 

Its largest exposure by sector is to: 

• Materials (27.2%)
• Consumer discretionary (25.1%)
• Industrials (12.7%)

This ASX ETF is up 25.6% year to date. 

VanEck Vectors Australian Property ETF (ASX: MVA)

Real estate stocks and REITs have broadly performed well this year as the Australian property market has continued to grow. 

Exposure to these kinds of holdings can be a foot in the door for investors looking for exposure to the sector, without having the cash to buy physical brick-and-mortar properties. 

The MVA ETF gives investors exposure to a diversified portfolio of Australian REITs.

MVA holds a minimum of 10 Australian REITs, with a maximum weighting of 10% for each REIT.  

At the time of writing, the fund has 13 holdings, with exposure ranging from 3%-10%. 

The fund has risen 15% year to date. 

It also offers a 4% yield.

The post Which Aussie-focused ASX ETFs have performed the best in 2025 appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As we head into December, many investors are likely to be wondering where to put fresh capital.

With global growth wobbling and sentiment moving around daily, sometimes the smartest move is also the simplest: stick with high-quality exchange traded funds (ETFs) that provide diversification, resilience, and long-term growth potential.

But which funds?

Listed below are five ASX ETFs that could be worthy of a spot in your portfolio next month:

BetaShares Australian Quality ETF (ASX: AQLT)

The BetaShares Australian Quality ETF focuses on some of Australia’s strongest, most efficient shares. These are the ones that consistently generate high returns on equity, boast solid balance sheets, and demonstrate enduring competitive advantages. Its portfolio features names such as CSL Ltd (ASX: CSL), Woolworths Group Ltd (ASX: WOW), Wesfarmers Ltd (ASX: WES), and Cochlear Ltd (ASX: COH). These businesses tend to hold up better during volatile periods and compound steadily over time. This fund was recently recommended by analysts at Betashares.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Spending on digital protection is rising every year as cyberattacks become more frequent and more sophisticated. The BetaShares Global Cybersecurity ETF provides investors with exposure to world-leading cybersecurity firms, including CrowdStrike (NASDAQ: CRWD), Palo Alto Networks (NASDAQ: PANW), and Fortinet (NASDAQ: FTNT). These are businesses at the heart of critical technologies such as cloud security, AI-driven detection, and network protection. For investors seeking structural growth themes, this fund is arguably one of the most compelling ETFs on the ASX.

iShares S&P 500 ETF (ASX: IVV)

The iShares S&P 500 ETF is a big favourite among long-term investors for a reason. It provides instant access to the 500 largest stocks in the United States, including global leaders such as Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), and Meta Platforms (NASDAQ: META). The S&P 500 index has compounded wealth at a strong average rate for decades despite wars, recessions, inflation cycles, and market shocks. For investors who want a simple, reliable engine for long-term growth, this fund is hard to beat.

Betashares Global Robotics & Artificial Intelligence ETF (ASX: RBTZ)

The Betashares Global Robotics & Artificial Intelligence ETF provides access to automation, AI, machine learning, and next-generation robotics. These are industries that are expected to expand rapidly through the 2030s. The fund holds major innovators including Nvidia (NASDAQ: NVDA), ABB (SWX: ABBN), and Fanuc (TYO: 6954). These companies sit at the centre of one of the most powerful megatrends of the decade. This fund was also recommended recently by analysts at Betashares.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Finally, the Vanguard MSCI Index International Shares ETF provides broad global diversification across more than 1,200 leading stocks across developed markets outside Australia. Its portfolio includes global giants such as Nestlé (SWX: NESN), Eli Lilly (NYSE: LLY), and Toyota (TYO: 7203). With Australia representing only a tiny slice of global equities, this fund helps investors tap into a far wider range of industries and economies, reducing portfolio risk while enhancing long-term return potential.

The post 5 excellent ASX ETFs to buy in December appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL, Cochlear, and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Abb, Apple, BetaShares Global Cybersecurity ETF, CSL, Cochlear, CrowdStrike, Fortinet, Meta Platforms, Nvidia, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Fanuc, Nestlé, and Palo Alto Networks. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended Apple, CSL, Cochlear, CrowdStrike, Meta Platforms, Nvidia, Vanguard Msci Index International Shares ETF, Wesfarmers, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX mining share Mineral Resources Ltd (ASX: MIN) has delivered incredible performance. It has risen 45% in the past year, significantly outperforming the ASX share market. In the past 12 months, the S&P/ASX 200 Index (ASX: XJO) is virtually flat.

Mineral Resources is involved in multiple areas of the mining industry, including mining services, lithium mining, and iron ore mining.

After going through significant volatility over the last two years, the company’s valuation is now recovering strongly, as the chart below shows.

With the Mineral Resources share price on a good trajectory, it’s good to ask whether it can continue climbing.

Is this a good time to invest in Mineral Resources shares?

The company recently held its annual general meeting (AGM), which gives investors the chance to hear from management and decide if they like the company’s plans.

Broker UBS said that the AGM provided confidence in the strategy and capital allocation framework.

UBS noted that the business now has a $1 billion liquidity buffer, which has increased from $400 million. The business will have at least $400 million of cash at all times to protect the company from commodity price volatility while enabling capacity for countercyclical opportunities.

The broker pointed out that the company’s debt leverage target has been revised to a net debt metric, rather than a gross debt measure previously, aligning with industry standards and not punishing the business for holding cash, especially considering the liquidity buffer. The ratio is now 2x net debt to EBITDA.

Mineral Resources has also tweaked its dividend policy for owners of Mineral Resources shares. The dividend payout ratio will be up to 50% of underlying net profit after tax (NPAT), though dividends will only be paid if liquidity and leverage thresholds are met, or if there is a clear line of sight to meeting them within 12 to 18 months.

UBS forecasts that net debt leverage will be comfortably less than 2 times by December 2026. The broker wonders whether dividends could resume in the 2026 results.

UBS also notes that with Mineral Resources’ growth capital, it must satisfy a threshold of a 20% return on invested capital (ROIC) after tax.

The broker is confident the ASX mining share will continue to implement the external governance reviews’ reforms.

Investment rating on the ASX mining share

UBS has a neutral rating on Mineral Resources shares, with a price target of $52.60. That’s where the broker thinks the share price will be in 12 months from now. Therefore, the broker is suggesting the Mineral Resources share price could rise by more than 7%.

At this stage, the broker is not forecasting that a dividend will be paid in FY26.  

The post Mineral Resources shares: After a year of outperformance (up 45%), is it still 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 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 tech stock Catapult Group International (ASX: CAT) has rarely delivered a dull moment for investors. The share price of the sports-technology group has been as unpredictable as the sports it helps measure.

Catapult’s share price was up more than 110% at one point this year, then sliding 35% over the past month before bouncing back at the end of last week, finishing with a 4.4% gain at $4.51.

Expansion in elite leagues

The sharp moves reflect both the promise and growing pains of a company still trying to turn global adoption into consistent commercial momentum. This Melbourne-based ASX tech stock is best known for its wearable GPS performance trackers and analytics platforms used by elite teams worldwide.

Behind the volatile share is a business that is quietly gaining traction. It has been steadily expanding its footprint across the US, Europe, and major professional leagues, including the NBA, Premier League, and top rugby competitions. Catapult has reached a level of global market penetration that few Australian firms in the tech sector have achieved.

In its latest half-year results update Catapult reported annualised contract value of US$115.8 million, a 19% lift compared to the year before. The average contract value per team also continues to rise, and the company reports that customers now typically stay with Catapult for nearly 8 years.  

Soccer scouting and analysis

Catapult is also expanding strategically. The sports tech company snapped up Perch, a specialist business in strength-training technology, and last month took over Impect GmbH, a German analytics provider focused on elite soccer scouting and analysis.

The acquisitions align well with Catapult’s long-term vision of becoming the global platform of choice for professional sports teams. They strengthen the product portfolio of the ASX tech stock and deepen its data capabilities. These are key advantages as top sports teams continue to invest more in performance tracking and match intelligence.

Prior expansion mishaps

The market wasn’t too impressed, especially not with the acquisition of the German company Impect. Investors clearly balked at the dilution from the capital raise and the hefty price tag, especially with prior expansion mishaps still fresh in their minds.

Analysts are cautiously optimistic. Most see the ASX tech stock as a genuine global contender, underpinned by sticky recurring revenue, high-profile clients and growing demand for data-driven performance tools.

However, they warn that execution risks remain. Catapult must translate scale into profitability more consistently and continue to sharpen its cost base. Brokers also closely watch the integration of acquisitions like Impect.

What is the upside?

The dominant broker view is ‘buy’, with an average target price of $7.97. Bell Potter recently retained its buy rating on the ASX 200 tech stock, but reduced the price target to $6.50, from $7.50. Based on its current share price, this implies potential upside of approximately 44% for investors between now and this time next year.

Commenting on its buy recommendation, Bell Potter said:

We continue to see strong double digit growth in the core business and believe this will be augmented by the cross-sell opportunity from the IMPECT acquisition as well as potential expansion into other sports.

The post Is this ASX tech stock ready to be the next global success story? appeared first on The Motley Fool Australia.

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

Not every promising business on the ASX sits inside the top 50 or receives daily media attention. Sometimes, value emerges in places where fewer eyes are looking. Tuas Ltd (ASX: TUA), the Singapore-based telecommunications provider spun out of the TPG–Vodafone merger in 2020, is one of those under-discussed names quietly growing into something far more substantial than when it first listed.

While the share price has performed well over the past 5 years, the business has little fanfare amongst the broader S&P/ASX 300 Index (ASX: XKO). 

Yet beneath the surface, Tuas has been executing a clear plan: compete on value, scale efficiently, and steadily push deeper into Singapore’s tightly contested telecom market.

What Tuas actually does

Tuas operates a mobile network in Singapore under a founder-led structure, guided by David Teoh — the same entrepreneur who transformed TPG from a small reseller into a major Australian telco. That track record is important. Execution, discipline and cost control have long been hallmarks of Teoh-led businesses.

The company’s Singapore offering has been simple: provide competitive mobile plans with strong network performance at attractive price points. In a market dominated by Singtel, StarHub and M1, Tuas has carved out a niche by focusing on value-driven customers and running a lean operational model.

Growth has remained solid

Across its most recent financial periods, Tuas has continued to deliver meaningful top-line growth, including a strong uplift in FY25 and its first full-year profit. Subscriber numbers have climbed consistently as Singaporean consumers respond to lower-cost “value” offerings in a market known for high mobile adoption.

For a relatively small ASX-listed telco operating in a different jurisdiction, this consistent performance places Tuas among the more intriguing growth stories in the ASX 300.

The M1 acquisition: a strategic opportunity — but far from certain

In August, Tuas announced a proposal to acquire M1, Singapore’s third-largest mobile operator. On paper, joining forces with M1 would dramatically expand Tuas’ scale and give it the capability to offer a full suite of mobile and broadband services. It would also bring the third- and fourth-largest Singapore operators together to compete more effectively with Singtel and StarHub.

However, new information shows the deal faces significant obstacles.

M1 is currently locked in a dispute with its biggest customer, Liberty Wireless — the company behind Circles.Life. Liberty Wireless has requested Singapore’s regulator to permit renegotiation or termination of its long-term wholesale contract with M1 as a condition for approving Tuas’ takeover.

This is far from a minor issue. Circles.Life may contribute 50%–60% of M1’s earnings and up to 80% of net profit, meaning any change to the agreement could materially reduce M1’s value.

The matter is already before the High Court of Singapore, and regulators are reviewing broader competition implications. A merged Tuas–M1 entity could control an estimated 77% of the wholesale mobile market and around 38% of the postpaid retail market, levels that will attract careful scrutiny.

What happens if the deal does proceed?

If approved — and there are meaningful “ifs” attached — Tuas would be operating at a far larger scale. The combination may allow it to offer more products, potentially improve its competitive position and spread fixed costs over a broader customer base.

There may also be opportunities to streamline overlapping operations or reduce duplicated expenses. However, with the regulator’s decision pending and M1’s largest customer seeking to change its commercial arrangement, it is too early to confidently predict the shape or size of any benefits.

Foolish takeaway

Tuas remains one of the more interesting businesses in the ASX 300 — a founder-led, growing company competing effectively in a sophisticated market. But its proposed acquisition of M1 now carries significant uncertainty that investors should be aware of.

For long-term investors exploring lesser-known ASX companies with potential, Tuas offers both promise and complexity. The underlying business continues to expand, yet the M1 decision could influence its next phase in a meaningful way.

The post Is this ASX 300 telco a hidden gem for value focused investors? appeared first on The Motley Fool Australia.

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Motley Fool contributor Leigh Gant 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.