Tag: Stock pick

I love owning ASX shares that offer investors a pleasing combination of dividends and capital growth. The combination allows our portfolios to grow in value, while delivering rising cash payments to our bank account.

We don’t necessarily need to look at the biggest businesses for ideas that can deliver good performance – I’d prefer to look at businesses further down the market capitalisation list because they are earlier on with their growth plans than major ASX blue-chip shares.

I believe there’s plenty of growth to come for the following two businesses.

Universal Store Holdings Ltd (ASX: UNI)

It owns a portfolio of premium youth fashion brands, with both retail and wholesale businesses. Universal Store’s main businesses are Universal Store and Perfect Stranger. It also has CTC (trading as THRILLS and Worship brands).

This business currently operates 121 physical stores across Australia as well as online channels.

The company says its strategy is to grow and develop its premium fashion apparel brands and retail formats targeting fashion-focused customers.

It’s still growing revenue at a strong pace – it gave an update that said that retail sales for the first 43 weeks of FY26 showed 14% growth, with Universal Store growth of 11.8%, Perfect Stranger growth of 39.8% and CTC growth of 14.5%.

The company’s mid-point of its FY26 guidance suggests the business could grow sales by 11.5% and operating profit (underlying EBITA) is expected to grow by 15.4%. It’s a great sign for a business when profit is rising faster than sales, as it’s usually the net profit that investors value a business on, rather than its revenue growth.

The ASX share has grown its annual dividend each year since 2021 when it first started paying a dividend. According to the forecast on CMC Invest, it’s projected to pay an annual dividend per share of 41.7 cents in FY26, which translates into a grossed-up dividend yield of 8.8%, including franking credits.  

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral provider in Australia and New Zealand. It operates from 208 locations, including 41 cremation facilities and nine cemeteries.

While morbid, the business is exposed to long-term growth tailwinds because of Australia’s ageing and growing populations.

According to Propel, the number of deaths in Australia is expected to rise by an average of 2.9% per year between 2026 to 2035, and then another 2.4% per year between 2036 and 2045. That’s not the biggest growth rate, but the steady progression could lead to solid compounding over time.

Propel can benefit from both the rising number of funerals, as well as growth of the average revenue per funeral, which is roughly in line with inflation.

Additionally, the business is steadily growing its geographic presence through acquisitions – helping grow its top line and scale.

According to the forecast on CMC Invest, the Propel dividend per share could climb to 16.6 cents by FY28. That translates into a possible grossed-up dividend yield of 6.5%, including franking credits, at the time of writing.

The post 2 ASX shares that I rate as buys today for both growth and dividends appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $3,000 monthly passive income?
• 3 ASX dividend shares yielding 5.5% or more
• 2 top ASX shares to buy and hold for the next decade
• Brokers say these 2 ASX shares are highly undervalued — here’s why I agree
• Bell Potter names the best ASX dividend shares to buy in May

Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners. 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 Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Arguably, no single economic data point moves ASX resource stocks more reliably than China’s manufacturing PMI.

When Chinese factories are firing, steel mills consume more iron ore, copper demand rises, and the big three Australian miners capture the benefit.

This week, China’s PMI data landed, and the picture it painted was more positive than markets had expected.

What the PMI data showed

Two separate measures track Chinese manufacturing activity each month.

The official NBS PMI, which surveys larger state-owned firms, came in at exactly 50.0 in May, down 0.3 points from April but still technically in expansion territory.

The Caixin PMI, which surveys smaller private sector manufacturers and is more closely watched by commodity markets, came in at 51.8, beating the 51.4 consensus forecast.

These figures signal a healthier expansion in the private sector than economists had expected.

Why this matters for BHP, Rio Tinto, and Fortescue

The direct link between Chinese manufacturing activity and ASX resource stock performance is well established.

The iron ore price topped US$111 per tonne earlier in May and is currently trading above US$109 per tonne. This is well above the US$90 to US$100 range that many analysts had forecast for 2026.

BHP Group Ltd (ASX: BHP) shares are at all-time highs, with copper earnings exceeding iron ore contributions for the first time in the company’s history.

Rio Tinto Ltd (ASX: RIO) has also climbed this year as the ASX 200 rallied broadly on US-Iran peace deal optimism.

Fortescue Ltd (ASX: FMG), however, has been the outlier, lagging both peers in 2026 despite the supportive commodity price environment.

The three miners are not equal in this environment

BHP and Rio Tinto are both benefiting from the PMI tailwind, but through different channels.

BHP’s growing copper exposure means it captures the manufacturing upswing through two commodity channels simultaneously: iron ore for steel production and copper for industrial and electrification demand.

Rio Tinto benefits from its diversified portfolio spanning iron ore, copper, aluminium, and lithium. All of these commodities tend to perform well when Chinese industrial activity is expanding.

Fortescue remains the most China-leveraged of the three, with a product mix skewed to lower-grade ore, which is more sensitive to Chinese steel mill profitability.

In a world where Chinese mills face pressure and environmental standards are tightening, higher-grade ore becomes more valuable, creating a relative disadvantage for Fortescue compared with its peers.

That dynamic explains why Fortescue has lagged BHP and Rio Tinto in 2026, even as iron ore prices have held up well.

What the CMRG tells us

Beyond the PMI, investors in BHP, Rio Tinto, and Fortescue should also be watching the China Mysteel Raw Materials and General Index, which tracks steel mill restocking demand on a weekly basis.

The CMRG has been rising for three consecutive weeks, signalling that Chinese steel mills are actively rebuilding inventory, a precursor to increased iron ore orders.

That trend, combined with today’s stronger-than-expected Caixin PMI, provides the most constructive short-term backdrop for ASX resource stocks in several months.

Foolish Takeaway

China’s manufacturing PMI can reverse quickly if geopolitical conditions deteriorate or if Beijing’s fiscal stimulus disappoints.

However, two consecutive months of above-consensus Caixin readings, rising CMRG inventory data, and a copper price that reacted immediately to today’s release all point in the same direction.

For investors already holding BHP, Rio Tinto, or Fortescue, today’s data is encouraging.

For those yet to invest, it is a timely reminder that the China growth story is far from over.

The post China’s PMI data beat forecasts. Investors should be looking at these ASX resource stocks appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in Rio Tinto shares 12 months ago is now worth…
• Forget BHP shares! Buy these ASX dividend shares instead for passive income
• 3 ASX dividend shares to block out the noise and lock in a yield as high as 11%
• 5 things to watch on the ASX 200 on Tuesday
• Why BHP shares just got a big buy call

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

Job ads rose 1.8% month-on-month in May 2026, according to ANZ-Indeed data.

This follows a 3.7% decline over the prior two months and rising 2% year on year.

That is not a dramatic number on its own.

But in the context of a labour market that has been softening since mid-2022, it represents a potential inflection point.

Senior economist Callam Pickering noted that Victoria and New South Wales recorded the strongest growth for the month, and that Queensland and Western Australia have been the two best performers over the past year.

Three ASX shares in particular stand to benefit from an improving jobs market, each through a different mechanism.

Seek Ltd (ASX: SEK)

The most direct beneficiary of rising job ads is Seek.

Australia’s dominant online employment marketplace earns revenue primarily from employers paying to advertise job vacancies.

When ad volumes fall, Seek’s revenue growth slows. When they rise, the trend goes in the other direction.

Seek shares are down approximately 47% year to date in 2026, battered by the prolonged decline in ad volumes since mid-2022.

Despite those volume headwinds, Seek’s first-half FY 2026 result demonstrated resilience.

Revenue grew 21% to a record $765 million, driven by AI-enabled product innovations that boosted pricing and yield even as raw volumes softened.

Seek’s placement share in the Australian recruitment market stands at 4.9 times its nearest competitor, a dominance that gives the company significant pricing power regardless of short-term volume fluctuations.

Today’s data, combined with a second consecutive month of trend improvement per SEEK’s own May employment report, is the first tangible evidence that the ad volume trough may be approaching.

Citi carries a buy rating on Seek with a price target of $26.

This would imply significant upside from current levels. Citi describes the stock as meaningfully undervalued given its dominant market position.

Xero Ltd (ASX: XRO)

Xero benefits from a rising labour market through a less obvious but equally important channel.

When Australian businesses hire more staff, they need payroll software to manage those employees.

Xero is the payroll and accounting platform of choice for the vast majority of Australian small businesses.

Every new employee added to an Australian small business payroll is a potential trigger for an existing Xero customer to upgrade their subscription tier or add payroll module functionality.

That dynamic makes Xero’s revenue growth positively correlated with Australian employment activity in a way that few investors fully appreciate.

Xero shares are down 56% over the past twelve months, battered by a combination of sector-wide software selling and concerns about Melio acquisition costs.

Nevertheless, the underlying business continues to deliver.

In FY 2026, Xero reported operating revenue of $2.75 billion, up 31% on FY 2025, with adjusted EBITDA growing 18% to $757.4 million.

The board also authorised a $550 million share buyback for FY 2027, a clear signal of management confidence in the business at current prices.

For patient investors, the combination of a recovering labour market, a dominant small business platform, and a buyback-supported share price makes Xero one of the more interesting beaten-down technology stocks on the ASX today.

Peoplein Ltd (ASX: PPE)

For investors prepared to accept higher risk in exchange for a more direct earnings link to the jobs market, Peoplein offers the most leveraged exposure of the three.

Formerly known as People Infrastructure, Peoplein is an ASX-listed workforce solutions company operating across healthcare and community, professional services, and industrial and specialist services.

The company directly places contract workers with clients, meaning its revenue rises and falls with employment activity.

Hospitality, education and training, and nursing were among the sectors contributing the most to job advertisement growth in May. Peoplein operates directly across these three verticals, with its 26 brands across Australia and New Zealand.

Foolish Takeaway

It may be too early to say whether improving job ads data signals a full labour market recovery.

Despite the uptick in May, figures remained 2% below the recent February peak, and ANZ economist Madeline Dunk expects the economy to slow over the coming months, with the unemployment rate gradually rising.

However, for Seek, Xero, and Peoplein, even a stabilisation in labour market conditions removes a meaningful headwind that has weighed on each business throughout 2026.

This week’s data is the first positive macro signal these three ASX shares have received in some time.

The post Job ads rose for the first time in three months. Here is why that is good news for these ASX shares appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares highly recommended to buy: Experts
• Here are the top 10 ASX 200 shares today
• 3 ASX tech shares I’d buy as they rebound from the AI selloff
• Are these 2 oversold ASX shares too cheap to ignore in June?
• Is it time to get greedy with Xero shares?

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

The TPG Telecom Ltd (ASX: TPG) share price is in focus after the company provided a first half 2026 trading update at its Investor Day, highlighting continued growth in mobile service revenue and a strong operating free cash flow outlook.

What did TPG Telecom report?

• FY25 pro forma EBITDA: $1,637 million; FY26 guidance: $1,665m–$1,735m
• FY25 capex (additions basis): $771 million; FY26 guidance: approx. $750 million
• Operating free cash flow (FY25): $1,137 million
• Return on invested capital (FY25): 5.42%
• Dividend per share (FY25): 18 cents; intention to increase as profits grow
• Mobile service revenue growth in FY25: +4.2%

What else do investors need to know?

TPG Telecom continues its transition to a leaner, mobile‑first business, following the merger with Vodafone and peak network investment. The company is delivering solid subscriber growth, especially across its digital‑first and value segments, with around 70,000–80,000 new mobile subscribers forecast for the first half of FY26, led by strong demand for digital brands and MVNOs.

Cost control remains a priority, with TPG targeting $100 million in operating cost savings by FY29. Capex is forecast to decline as major investment projects wind down, with further reductions anticipated from FY27. Management reiterated its intention to maintain an investment grade credit rating while funding future spectrum renewals from strong cash flow and borrowing headroom.

What’s next for TPG Telecom?

Looking ahead, TPG Telecom expects EBITDA growth to outpace revenue growth, supported by ongoing cost reductions and a greater customer shift toward digital-first brands. The business is well positioned to benefit from its simplified brand portfolio and improved network capabilities, targeting further market share gains in both consumer and business mobile.

Dividend growth is expected to continue in line with sustainable profit and cash flow growth. The company is also keeping a close eye on regulatory and technological changes, particularly spectrum renewal costs from 2028, and is leveraging digital and artificial intelligence to enhance customer experience and operating efficiency.

TPG Telecom share price snapshot

Over the past 12 months, TPG Telecom shares have declined 23%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post TPG Telecom posts mobile growth and strong free cash flow in 2026 update appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Worried about capital gains tax and ASX shares? Here’s why you shouldn’t be
• IperionX gains U.S. Army validation as titanium fasteners outperform steel
• Lendlease reports $250m MSG North sale and FY26 loss

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 Australian share market is home to a number of ASX shares with exposure to artificial intelligence (AI).

One of those is probably flying under the radar for most investors but could be well worth getting better acquainted with.

Which ASX AI share?

The ASX AI share that could be worth a look according to the team at Bell Potter is Artrya (ASX: AYA).

It is a Perth-based medical technology company using AI powered image-analysis software to improve the detection and management of coronary artery disease (CAD).

CAD is driven by soft plaque that builds up silently in the arteries and can rupture without warning, causing a fatal heart attack.

Bell Potter highlights that this condition affects around 126 million globally each year.

Artrya’s cloud-based software, Salix, uses proprietary AI algorithms to interpret data from coronary computed tomography angiography (CCTA) scans, to deliver results in a single point-of-care solution.

Bell Potter has been reviewing industry trends and believes they are favourable for the ASX AI share. It said:

The investment thesis for AYA inherently relies on the rise of using the Coronary Computed Tomography Angiography (CCTA) to evaluate coronary artery disease (CAD), and the associated AI powered image analysis software. We review the trends in modalities used to evaluate CCTA and show that CCTA is in strong growth mode with increasing modality market share.

The structural shift which occurred in 2021 due to guideline changes has turbo charged CCTA adoption, becoming the fastest growing image modality in cardiology with 4-year CAGR of c.30%, and modality share at >10%, heading toward c.30% by 2030.

The broker also highlights its belief that hospital economics will drive adoption. It adds:

Payer mix is critical to hospital economics, and with commercial payers typically c.35% of the hospital reimbursement profile, the cost of competing image analysis providers becomes pivotal. We illustrate the relatively favourable economics of a typical hospital using AYA v a leading competitor based on our channel checks.

AYA’s revenue sharing arrangement model could result in a c.US$1.4m turnaround in a hospital that performs c.5,000 scans pa. This is in addition to the clear operational efficiencies that Salix’s near-real time outputs can deliver across, volume, clinician productivity, labour efficiency and lower re-admissions and penalty rates.

Should you invest?

According to the note, the broker has retained its buy rating and $6.10 price target on the ASX AI share.

Based on its current share price of $4.79, this implies potential upside of 27% for investors over the next 12 months.

Commenting on its investment thesis, it said:

The recognition of CCTA image analysis by CMS and Physicians to efficiently and effectively detect and diagnose CAD is a huge growth driver for image analysis providers. CCTA utilisation is surging and this provides a strong foundation for AYA’s superior product features to capture material market share over our forecast horizon.

The post Why this ASX AI share could be a top buy in June appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Which exciting ASX AI stock is a buy according to a leading broker?
• 2 exciting ASX shares to buy with big growth potential!

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.

Some of my favourite ASX shares to own are ones that are compounding in scale at a fast pace. When revenue is increasing rapidly, that’s almost certainly going to come with scale benefits as time goes on.

We’re going to look at two of the most highly rated businesses on the ASX right now. It’s interesting when one analyst likes a business, but its an even better sign when numerous experts think a business is a buy. Of course, forecasts are not guaranteed.

For me, I like how both of the businesses are among the leaders in the local market, with successful overseas expansion that could suggest a significant growth runway in the long-term.

Xero Ltd (ASX: XRO)

Xero is one of the leading ASX tech shares with its accounting, business analysis and taxation reporting software.

The company has carved out a significant market share in New Zealand and Australia. It’s also growing in places like the UK, South Africa, Singapore, the US and so on. It has an extremely loyal subscriber base, which gives the company the confidence to hike its subscription price.

A rising average revenue per user (ARPU) helps a number of metrics including annualised monthly recurring revenue (AMRR), the total lifetime value (LTV) of subscribers and obviously operating revenue.

In the FY26 result, Xero reported that its total number of customers rose 11% to 4.9 million, ARPU grew 23% to $55.44, AMRR grew 37% to $3.27 billion and LTV increased by 17% to $21 billion. Operating revenue increased by 31% to $2.75 billion.

The ASX share’s net profit decreased in FY26, but I think it will rise rapidly for the foreseeable future now that the Melio acquisition has been concluded and integrated.

According to CMC Invest, there have been nine different analyst ratings on the business in the last three months, with eight of them being a buy. The average price target of those nine ratings is $126.57, which at the time of writing suggests a possible rise of close to 70% in the next year.

Guzman Y Gomez (ASX: GYG)

GYG is a Mexican food business, which has proven a big hit in Australia to date. It already has well over 200 locations in Australia and it’s aiming for over 1,000 locations within the next 20 years.

On top of that, the business has a presence in both Singapore and Japan. It now has 24 restaurants in Singapore and it had five locations in Japan at the end of the FY26 third quarter.

The FY26 third-quarter showcased its excellent growth rate, with network sales growth of around 20% in Australia and growth of 15% in Asia.

It recently took the decision to end its growth efforts in the US because of the expected cost of reaching good profitability for that market. But, this should help the company’s bottom line for the foreseeable future.

The ASX share expects the Australia and Asia division to generate $85 million of underlying operating profit (EBITDA), representing 29% growth year over year.

According to the forecast on CMC Invest, GYG could generate 64.2 cents of earnings per share (EPS) in FY28 putting it at just over 30x FY28’s estimated earnings.

On CMC Invest, there have been 10 analyst ratings on the business within the last three months, with eight of those being a buy. The average price target of those 10 ratings is $24.33, suggesting a possible rise of 23% over the next year.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

More reading

• Job ads rose for the first time in three months. Here is why that is good news for these ASX shares
• Why Guzman y Gomez shares could shoot 30% higher after exiting the US market
• Here are the top 10 ASX 200 shares today
• 3 ASX tech shares I’d buy as they rebound from the AI selloff
• Here are the 10 most shorted ASX shares

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

The Rio Tinto Ltd (ASX: RIO) share price has gone through plenty of volatility in the past few years, as the chart below shows.

But, it’s clear to see that the business has been on a great run over the last 12 months.

It’s normal for ASX mining shares to go through significant valuation changes because of how much commodity prices can shift in a few months, depending on what’s happening with supply and demand, as well as the overall global economy.

Let’s consider how much the ASX mining share has jumped and what has supported that.

Huge gain for the Rio Tinto share price

At the time of writing, over the last year, the Rio Tinto share price has risen 65%. That’s an extremely strong performance considering the S&P/ASX 200 Index (ASX: XJO) has only risen 3.5% in the last year. Thanks to that gain, a $10,000 investment a year ago is now worth approximately $16,500.

Rio Tinto shares have outperformed both Fortescue Ltd (ASX: FMG) shares and BHP Group Ltd (ASX: BHP) in the past year, as they have only increased 45% and 63%, respectively.

It’s rare for an ASX blue-chip share to go up that much in such a short period of time. Why has Rio Tinto do so well? I’d put it down to the strength of the resource prices, as well as the impressive production growth of iron ore and copper.

Commodity price and production performance

In the first quarter of 2026 it reported global iron ore production of 82.8mt, which was growth of 12% year-over-year and copper production grew 9% to 229kt. Alumina production increased by 6% to 2mt.

Another positive from the ASX mining share’s quarterly update was that it’s starting to produce lithium – it reported 12.7kt of lithium carbon equivalent (LCE). Lithium could become an increasingly important element of the business if it’s able to capitalise on its lithium project plans and the lithium price remains as supportive as it is now for profit margins.

Rio Tinto noted how commodity prices changed, comparing the average of the 2026 first quarter to the average of the fourth quarter of 2025. The iron ore price was slightly higher, the copper price was 16% higher, the aluminium price was 13% higher and the lithium carbonate price was 84% higher.

When you put all of the above together, it’s easy to see why investors are more exited about the ASX mining share now than a few months ago or a year ago.

But, after such a big rise of the Rio Tinto share price, there may be cheaper opportunities out there.

The post $10,000 invested in Rio Tinto shares 12 months ago is now worth… appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Top 10 ASX shares bought and sold by investors in May
• Buying Rio Tinto, BHP or Fortescue shares? Here’s why CMRG matters
• How do ASX dividend shares compare to savings deposit rates today?
• Why a weak US dollar could be the best thing that happens to ASX resource stocks in 2026

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

It has been a tough year for the ASX healthcare stock in this article.

Over the past 12 months, the company’s shares have lost 60% of their value.

Unfortunately, one leading broker doesn’t believe this is a buying opportunity and is urging investors to keep their powder dry for the time being.

Which ASX healthcare stock?

Bell Potter has turned lukewarm on Paragon Care Ltd (ASX: PGC) shares this week. It is a leading distributor of pharmaceutical medicines, consumables and capital products.

The broker highlights that the company has effectively downgraded its earnings guidance for FY 2026 due to higher costs stemming from the Middle East conflict. It said:

The company now expects FY26 revenues of $3.7bn and EBITDA in the range of $95m – $100m inclusive of the 3 month contribution from Haju Medical. The previous guidance (which excluded the estimated $2m (3 months) earnings contribution from Haju) was $97m – $107m.

We estimated the bottom end of the earlier guidance range has been downgraded by ~$4m. Not surprisingly the downgrade is the result of increased costs in logistics and supplier price increases associated with the inflationary impact of the Gulf conflict. The revenue guidance of $3.7bn is at the top end of the prior range ($3.6 – $3.7bn).

Another disappointment is the potential settlement for money owed by Infinity Group. Instead of a substantial portion of the $49 million owed, it now looks likely to be in the range of $11.7 million to $15.8 million. It adds:

Separately, administrators of the Infinity Group have advised a preliminary Estimated Outcome Analysis would result in a settlement to PGC in the range of $11.7m to $15.8m. The company had previously provided for the entire $49m, however, the Directors had expected to recover a substantial portion of this amount.

The estimated settlement follows submission of offers for various pharmacies within the group, most of which continue to trade. The settlement also requires agreement from all secured lenders of which PGC is one and is before Personal Guarantees from certain Directors of the Infinity Group.

Downgrade to hold

According to the note, Bell Potter has downgraded the ASX healthcare stock to a hold rating (from buy) with a heavily reduced price target of 17 cents (from 29 cents).

This is only a fraction higher than where its shares currently trade.

Commenting on the downgrade, the broker said:

2H26 has been a difficult period for the company in spite of the completion of two earnings accretive acquisitions in the period. We estimate across the board inflationary pressures in the core Australian business have ripped up to $4m in earnings out with little to no means to pass on these costs to customers in the short term. Consequently, it appears 2H26 EBITDA may be $4m – $5m below 1H26 before the earnings impact of acquisitions. FY26/27/28 EPS are reduced by 10%, 18% and 3%. Price target is reduced from $0.29 to $0.17.

The post Top broker just downgraded which ASX healthcare stock? appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in Rio Tinto shares 12 months ago is now worth…
• Bell Potter is bullish on this ASX tech share and tipping 20% upside
• 2 ASX growth shares to buy now while they’re on sale
• Why NDQ and these ASX ETFs could be buys in June
• Forget BHP shares! Buy these ASX dividend shares instead for passive income

Are you hunting for investment opportunities at the small end of the market?

If you are, then it could be worth hearing what Bell Potter has to say about the small-cap ASX tech share in this article.

Which small-cap ASX tech share?

Bell Potter has been running the rule over IkeGPS Group Ltd (ASX: IKE) shares this week.

It is a technology company that delivers a platform for the collection, measurement, analysis, and engineering data management of power pole infrastructure and associated networks. The company has a primary focus on the North American market.

The broker highlights that the small-cap ASX share has released its FY 2026 results and revealed financials that were largely in line with its forecasts. It said:

IKE’s FY26 was partially pre-reported at revenue and gross margin, which saw 33% growth in YoY subscription revenues to $19.2m and Group revenue growth of 6% to $26.6m, with transactions remaining challenged. EBITDA was mostly in-line with expectations at -$5.0m (BPe: -$4.5m) and net loss was also broadly as expected at – $7.5m (BPe: -$7.7m), which more than halved YoY. IKE finished the period with cash and equivalents of $32.8m following an in-period equity raise and an operating cash outflow of -$3.3m for the year.

Another positive is that the broker believes the company is well-placed to become profitable at the EBITDA line in FY 2027. It adds:

IKE reiterated commentary around FY27 guidance for similar subscription growth compared to FY26, which implies around $25.5m (exit run rate for the period was $20.7m). Subscription gross margin of 94% looks to support EBITDA/operating cash flow breakeven, noting IKE achieved positive EBITDA in March, while transaction headwinds look to continue through the early stages of FY27.

In addition to improving visibility on subscription revenues, IKE anticipates its current product pipeline now has the potential to generate more revenue than any product IKE has launched to date, though this not anticipated to be material until FY28 onwards.

Should you invest?

According to the note, Bell Potter has retained its buy rating and $1.21 price target on the small-cap ASX share.

Based on its current share price of $1.01, this implies potential upside of 20% for investors over the next 12 months.

Speaking about its buy thesis, the broker said:

We maintain our Buy recommendation. IKE is funded to continue development of its product suite in line with its customer council and to continue to embed itself within tier-1 utilities/communications firms during tailwinds in electrification, grid hardening, and communications capacity investment accelerated by AI/data centre infrastructure and severe weather events.

The post Bell Potter is bullish on this ASX tech share and tipping 20% upside appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in Rio Tinto shares 12 months ago is now worth…
• Top broker just downgraded which ASX healthcare stock?
• 2 ASX growth shares to buy now while they’re on sale
• Why NDQ and these ASX ETFs could be buys in June
• Forget BHP shares! Buy these ASX dividend shares instead for passive income

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

There are numerous potential buys on the ASX, but I want to talk about two particular names that could be the best two ASX growth shares to buy, in my opinion.

Both of the stocks I’ll highlight have built an impressive market share in their sector and are still growing rapidly.

I believe they could be two of the best-performing S&P/ASX 300 Index (ASX: XKO) shares over the next three years.

Siteminder Ltd (ASX: SDR)

Siteminder says it’s the world’s leading hotel distribution and revenue platform with its Siteminder software. It also offers Little Hotelier, an all-in-one hotel management software offering.

The business generates 135 million reservations worth over A$85 billion in revenue for its hotel customers each year.

It’s growing rapidly – in the FY26 half-year result, annualised recurring revenue (ARR) increased 29.7% to $280.3 million. It benefited from accelerating contributions from the smart platform alongside continued strength across the broader business. Not many businesses are growing that quickly at the moment.

The ASX growth share is winning new hotels and growing its revenue per hotel. HY26 net property additions were 2,900, taking total properties to 53,000 – it’s putting a greater focus on winning larger hotels. HY26 average revenue per user (ARPU) rose 11.3% to $435, with growth driven by smart platform initiatives and rising product adoption.

The nature of being a software business means it has significant operating leverage, which is helping increase its gross profit margin, the operating profit (EBITDA) margin and net profit (loss) margin.

The ASX growth share has also launched ‘Siteminder Powered‘, allowing certain hospitality technology companies to integrate Siteminder’s distribution engine in their own platforms. The first partner is Mews and this will include the smart platform products of channels plus, demand plus and dynamic revenue plus.

Existing joint customers of Siteminder and Mews are expected to transition to the integrated experience.

At the time of writing, it’s down more than 50% since October 2025, so it looks great value to me.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is the leading pure play online retailer of homewares and furniture in Australia, which puts it in a very pleasing to benefit from a strong tailwind.

E-commerce adoption is steadily increasing in the western world. The level of e-commerce adoption in homewares and furniture in Australia has reached around 20%, but in the UK it’s around 30% and in the US it’s approximately 35%. To me, that suggests Australia could climb towards 30% in the coming years.

The company sells hundreds of thousands of products, though most of them are shipped directly by suppliers – this enables the ASX growth share to be capital-light and generate lots of cash flow.

I’m expecting its profit margins to rise in the coming years as its growing scale helps with various benefits, as well as plenty of AI usage in different parts of operations.

I’ve also got my eye on the home improvement segment, which is small but growing at a much faster pace than the core business – in five years, I hope this division will be a material contributor to the overall company.

It has fallen more than 75% in the past year, so it’s so much better value.

But, these aren’t the only two opportunities out there.

The post 2 ASX growth shares to buy now while they’re on sale appeared first on The Motley Fool Australia.

More reading

• 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 Temple & Webster, Web Travel and Guzman Y Gomez shares could have even further to fall
• Why Galan Lithium, Life360, Select Harvests, and Siteminder shares are storming higher

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