Experts are always on the lookout for ASX share opportunities, and after reporting season there are quite a few businesses that are now trading at attractive valuations.
We're going to look at two businesses that are investing to capitalise on major opportunities ahead.
One of them is tapping into big increases of demand for AI, while the other is looking at the UK as an exciting growth avenue.
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Nextdc Ltd (ASX: NXT)
Broker UBS describes Nextdc as Australia's leading data centre as a service business, which has locations in a number of cities including Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Darwin, Tokyo, Kuala Lumpur and Auckland.
The FY26 half-year result saw ongoing progress by the business. Total revenue grew by 13% to $26.3 million and the underlying operating profit (EBITDA) climbed by 9% to $115.3 million. The net loss after tax improved by 8% to $3.3 million.
Impressively, the contracted utilisation – an important measure for a business selling data centre space – saw 137% growth to 416.6MW. Its forward order book of 296.8MW is projected to ramp into billing across the rest of FY26 to FY29, underpinning future growth of revenue and earnings.
UBS has a buy rating on the ASX share with a price target of $22.55, implying a possible rise of 70% over the next 12 months from where it is, at the time of writing.
The broker wrote in a note:
NXT is experiencing the strongest growth chapter in its history. Not only has it just contracted 172MW, but it will activate 157MW in FY27 – more than the 120MW activated in the entirety since the business started in 2012. We estimate contracted EBITDA of c.$718m (materially higher than the $239m we forecast for FY26).
UBS thinks the business has enough financial funding to deliver on its growth prospects, as well as the ability to secure an associated hyperscaler contract.
UBS thinks Nextdc can grow its revenue to $488 million in FY26 and reach $1.3 billion by FY30. The broker is expecting a net loss of $117 million in FY26, which could turn into net profit of $139 million in FY30.
PEXA Group Ltd (ASX: PXA)
Another buy-rated business is PEXA, which operates the "leading digital property settlement platform" in Australia, according to UBS. It handles property transfers and refinancing transactions.
The ASX share's FY26 half-year result was promising. Revenue rose 10% to $215.3 million, operating profit (EBITDA) rose 19% to $85.9 million, underlying net profit (NPATA) climbed 33% to $40.3 million and free cash flow jumped 25% to $40.2 million.
UBS noted that HY26 profit was ahead of expectations, though it seems the business will invest much of that into delivering stronger long-term growth.
The broker points out the "critical UK roll-out should support longer-term value upside". The Natwest remortgage launch is due in April 2026. PEXA is also investing in attracting/onboarding additional lenders and conveyancers.
UBS has a price target of $17.50 on the business, implying a possible rise of 14% over the next year from where it is, at the time of writing.
The broker expects PEXA to generate $50 million of net profit in FY26 and this could grow to $191 million by FY30.
