James Mickleboro, Author at The Motley Fool Australia

Should you buy Hub24, Northern Star, and Transurban shares?

James Mickleboro — Thu, 22 Oct 2026 23:33:15 +0000

A number of popular ASX shares have released updates this month.

Have these updates been received well by analysts? Let's see what Morgans thinks of three of them.

Hub24 Ltd (ASX: HUB)

Morgans was pleased with this investment platform provider's performance during the first quarter.

It highlights that Hub24 delivered platform net flows that were down quarter on quarter but in line with expectations.

In response to this and recent share price weakness, the broker has upgraded Hub24 shares to a buy rating with an $86.00 price target. It said:

HUB's 1Q27 Platform net flows of A$4.0bn were in line with MorgF/VA consensus (A$3.97bn), -5% qoq (4Q26: A$4.2bn) and -23% yoy (1Q26: A$5.2bn was a 1Q flows record). Platform FUA closed at A$143.7bn (+3% qoq, +18% yoy) and Total FUA at A$168.6bn, both ~1.2% below VA consensus. Discretionary (IDPS) outflows persisted during the quarter, with IDPS gross & net inflows below a strong pcp; however, structural support from resilient Super flows remained evident.

Adjusting for HUB's 1Q27 update, we trim our EPS by 1% in FY27-29F. HUB is now trading on an FY27F P/E of 38x (a ~17% / 1StDev discount to its 5yr average). Whilst cyclical headwinds are weighing on flows momentum in the near term, HUB remains strongly positioned to benefit from broader structural tailwinds. We see the pullback in the share price as an increasingly attractive entry point. We upgrade our recommendation to BUY (from ACCUMULATE), with a PT of A$86.00/sh.

Northern Star Resources Ltd (ASX: NST)

This gold miner also delivered a quarterly update that went down well with Morgans.

However, it isn't enough for a buy rating. Morgans has retained its hold rating and $25.00 price target on Northern Star shares. It said:

A solid start to FY27. Gold sold of 364koz beat MorgansF and consensus, and AISC of A$3,217/oz was 8% below consensus, led by KCGM and Yandal. Pogo was weak. FY27 guidance is unchanged and the KCGM ramp-up remains the key operational watch point. New CEO Suresh Vadnagra's plans for the portfolio are likely a few months away. In the meantime, market focus remains on a potential increase in the Gold Fields offer and KCGM commissioning performance.

Transurban Group (ASX: TCL)

Morgans believes this toll road operator could be negatively impacted by higher fuel costs and interest rates.

As a result, it has put a trim rating and $12.06 price target on its shares. It explains:

Alongside its AGM (where FY27 DPS guidance of 72 cps and Free Cash coverage slightly less than 95% were reaffirmed), TCL released its 1Q27 traffic data. We expect higher fuel costs and interest rates dampened Australian traffic growth (c.1% on pcp ex West Gate Tunnel). Dynamic pricing strength of the US Express Lanes continues to be terrific. Target price of $12.06/s (+3 cps) aligned to our DCF valuation. Potential TSR at current prices is -9% (including c.5.1% cash yield). TRIM into share price strength.

The post Should you buy Hub24, Northern Star, and Transurban shares? appeared first on The Motley Fool Australia.

More reading

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 Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Buy, hold, sell: Sigma, Cliunvel, and NextDC shares

James Mickleboro — Thu, 22 Oct 2026 23:06:58 +0000

There are a lot of options on the Australian share market for investors to choose from.

To help narrow things down, let's see what analysts at Morgans are saying about the three named below.

Are they buys, holds, or sells? Here's what you need to know:

Clinuvel Pharmaceuticals Ltd (ASX: CUV)

Morgans notes that this biopharmaceutical company's Scenesse product is facing a major challenge following the release of top line data from a competitor.

In response, the broker has downgraded Clinuvel's shares to a trim rating with a reduced price target of $7.00. It said:

CUV competitor Disc's oral bitopertin swept its EPP Ph3 and is raising US$350m to launch. Its topline data is stronger than Scenesse's pivotal package on cross-trial comparison. Our main concern of a daily tablet supported by stronger data is the scenario we've long flagged as the biggest threat to CUV's only revenue line.

We now view EPP as a defensive franchise. As a result, we have cut US volume and pricing assumptions. We move to a TRIM rating and reduce our target price to A$7p/s (from A$10 p/s).

NextDC Ltd (ASX: NXT)

Morgans thinks that NextDC shares are looking undervalued following a selloff this week.

While the news about M3 was disappointing, the broker sees an opportunity to buy shares while they are "incredibly cheap".

As a result, Morgans has upgraded NextDC shares to a buy rating with a $7.50 price target. It commented:

NXT have downgraded FY27 EBITDA guidance by ~36% due to M3 power supplier Jemena deferring the increased power supply for M3 due in part to community and stakeholder opposition (aka the Not In My BackYard movement). NXT's share price is below Net Tangible Asset value of ~$7.50 p/share. This pessimism implies concerns around contagion. Management didn't share investor concerns, saying M3 power is now expected to arrive "in FY28" and noting, in the context of debt, they are "in compliance with financial covenants".

In our view NXT is incredibly cheap and its ~30% discount to NTA is unwarranted if these issues are just short term in nature. However, management needs to de-risk these key concerns for equity investors. This could take some time. We set our Target Price at $7.50 which is broadly in line with NTA and below our valuation. We upgrade to a BUY recommendation, from HOLD. Noting the heightening risks relative to normal operating conditions for the business.

Sigma Healthcare Ltd (ASX: SIG)

The broker is feeling positive about Chemist Warehouse owner Sigma Healthcare following its annual general meeting update.

Following the event, the broker has retained its buy rating on Sigma Healthcare's shares with a $3.19 price target. It said:

At its AGM, SIG provided a solid trading update where domestic LFL sales were in line with consensus at ~+10% and international LFL sales at +15.8% were ahead of consensus. The potential selldown by the co-founders (~5% of issued capital, as disclosed in SIG's July ASX announcement) may be keeping a lid on the share price.

However, we see this as an opportunity to add to positions in this quality healthcare/retail name. We have made immaterial changes to our forecasts (<1%). We forecast ~18% EPS CAGR over the next three years. We retain our BUY recommendation with a $3.19 price target.

The post Buy, hold, sell: Sigma, Cliunvel, and NextDC shares appeared first on The Motley Fool Australia.

More reading

Motley Fool contributor James Mickleboro has positions in Nextdc. 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.

5 things to watch on the ASX 200 on Friday

James Mickleboro — Thu, 22 Oct 2026 20:21:39 +0000

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had a poor session and dropped into the red. The benchmark index fell 0.45% to 8,793.2 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for a poor session on Friday following a relatively weak night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 27 points or 0.3% lower this morning. On Wall Street, the Dow Jones was flat but the S&P 500 fell 1.2% and the Nasdaq sank 2.6%.

Oil prices rise

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch today after a strong night for oil prices. According to Bloomberg, the WTI crude oil price is up 2.2% to US$99.31 a barrel and the Brent crude oil price is up 3.9% to US$113.12 a barrel. This follows reports that Donald Trump could be planning further action on Iran.

Buy NextDC shares

Morgans thinks investors should be buying NextDC Ltd (ASX: NXT) shares while they are down in the dumps. The broker has upgraded the data centre operator's shares to a buy rating with a $7.50 price target. It said: "In our view NXT is incredibly cheap and its ~30% discount to NTA is unwarranted if these issues are just short term in nature. However, management needs to de-risk these key concerns for equity investors. This could take some time. We set our Target Price at $7.50 which is broadly in line with NTA and below our valuation. We upgrade to a BUY recommendation, from HOLD. Noting the heightening risks relative to normal operating conditions for the business."

Gold price tumbles

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price tumbled overnight. According to CNBC, the gold futures price is down 2.65% to US$4,040.1 an ounce. Traders were selling gold after the oil rally fuelled inflation worries.

AGMs

A number of annual general meetings are taking place today, which could see the release of trading updates. Among those holding meetings are plumbing parts company Reliance Worldwide Corporation (ASX: RWC), salary packaging company McMillan Shakespeare Ltd (ASX: MMS), and broadband provider Aussie Broadband Ltd (ASX: ABB).

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

More reading

Motley Fool contributor James Mickleboro has positions in Nextdc and Woodside Energy Group Ltd. 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 Aussie Broadband and McMillan Shakespeare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

3 buy-rated ASX growth shares with big international ambitions

James Mickleboro — Thu, 22 Oct 2026 03:11:16 +0000

If you are looking for ASX growth shares to buy and hold, it could be worth considering the three in this article.

They have long growth runways thanks in part to their big international ambitions.

Here's what you need to know about them:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to consider is Breville. It has transformed itself from an Australian appliance manufacturer into a global premium kitchen appliance business, with a strong position in home coffee machines.

In recent years it has been busy introducing its products to consumers in new markets while encouraging existing customers to upgrade to more sophisticated machines.

This approach has been very successful. For example, in FY 2026, the company delivered record sales of $1.81 billion, with global revenue increasing 9.7% in constant currency terms.

The team at Citi appears confident in its growth outlook. It recently put a buy rating and $40.80 price target on Breville's shares.

Catapult Sports Ltd (ASX: CAT)

Another ASX growth share with global ambitions is Catapult Sports. It has established itself as a major supplier of performance technology to professional sporting teams around the world.

Catapult's products help coaches analyse player performance, manage training workloads, and make better decisions about team selection and tactics.

But Catapult's growth opportunity extends beyond winning additional customers. It is increasingly offering existing customers a wider selection of products, including video analysis, scouting, and athlete monitoring technology.

This strategy appears to be gaining traction. In FY 2026, Catapult increased its annual contract value by 28% to US$133.8 million on a constant currency basis, while management EBITDA jumped 67%.

With its customer relationships strengthening and operating margins improving, Catapult could become considerably more profitable as it grows.

Bell Potter is a big fan. It has a buy rating and $4.65 price target on the company's shares.

SiteMinder Ltd (ASX: SDR)

A final ASX growth share to look at is SiteMinder. It helps hotels manage room availability, pricing, and bookings across online travel platforms.

Its technology is already used by approximately 56,000 hotels worldwide, providing an established customer base for further expansion.

One promising opportunity is helping hotels increase their revenue through smarter pricing and distribution tools. By offering additional services to existing customers, SiteMinder can potentially increase revenue without relying entirely on signing up more hotels.

Its FY 2026 results demonstrated the potential of this approach, with annual recurring revenue growing 24.1% in constant currency and organic terms to $313.7 million. Adjusted EBITDA also nearly doubled to $28.1 million.

If SiteMinder can maintain strong revenue growth while improving profitability, it could have substantial growth ahead.

UBS believes its shares could more than double in value. It has a buy rating and $6.85 price target on them.

The post 3 buy-rated ASX growth shares with big international ambitions appeared first on The Motley Fool Australia.

More reading

Citigroup is an advertising partner of Motley Fool Money. 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 Catapult Sports and SiteMinder. The Motley Fool Australia has positions in and has recommended Catapult Sports and SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Analysts tip these ASX shares to return 20% to 50%

James Mickleboro — Wed, 21 Oct 2026 22:57:06 +0000

If you are looking for big returns, then look no further!

Here are three ASX shares that analysts are tipping as buys with the potential to rise up to 50% over the next 12 months.

Capstone Copper Corp (ASX: CSC)

This copper miner could be a buy according to Morgans.

Although it expects a disappointing quarterly update, the broker remains positive and has retained its buy rating with a trimmed price target of $17.00.

Based on its current share price of $13.88, this implies potential upside of over 20% for investors.

The broker commented:

3Q26 has been flagged as the weakest quarter of FY26 since guidance was released due to heavy planned maintenance. Against consensus, we expect a weaker Mantos Blancos will be offset by a stronger Mantoverde even despite a 15-day tie-in period. CSC has fallen 14% over the past month, against SFR's 7% fall and a 3-10% decline across the global majors.

We think the underperformance reflects investors de-risking ahead of a busy catalyst calendar, and we see the pullback as a buying opportunity ahead of a strong end to CY26. We mark to market 3Q26 copper and lift cost assumptions, leaving EBITDA little changed, and our TP falls to A$17.00 (from A$18.00). BUY maintained.

Judo Capital Holdings Ltd (ASX: JDO)

Another ASX share that could be cheap is small business lender Judo Capital.

In response to its annual general meeting update, Morgans retained its buy rating with a slightly increased price target of $1.44. Based on its current share price of 95 cents, this suggests that upside of over 50% is possible.

Speaking about its recommendation, Morgans said:

At its AGM JDO reiterated FY27 guidance implying 25-31% PBT growth (we target +26%). While still early in FY27, JDO indicated 1Q27 trends were as expected. The balance between asset quality and NIM (risk and return) remains the key watch point. JDO says NIM is tracking to its guidance, arrears increased but remained below its through-the-cycle assumption, and CET1 deteriorated but was at the top end of the target range. Forecast EPS changes are minor.

Target price $1.44/s (+4 cps). BUY maintained. Valuation metrics are compelling at current prices given the strong growth outlook (c.0.6x P:BV, c.5x FY27F EPS, long-term equity IRR of c.19% pa). We back-solve that the share price implies a c.23% probability of zero equity value.

WebBeds Group Limited (ASX: WEB)

A third ASX share that could rise strongly according to analysts is WebBeds (formerly known as Web Travel).

Morgans is feeling positive about the company's outlook ahead of its results release next month. So much so, it has retained its buy rating with an improved price target of $4.50. This implies potential upside of almost 30% for investors.

The broker commented:

Ahead of WEB's 1H27 result on 25 November, we have upgraded our FY27-29 EBITDA forecasts by ~8%. Despite the Middle East conflict and a ~9% FX headwind, WEB's 1H27 guidance beat our expectations, with trading in 2Q27 improving on 1Q27. We forecast earnings growth to accelerate in FY28.

Past economic and geopolitical shocks show travel demand rebounds quickly once a downturn passes, and we expect WEB's earnings to follow. WEB trades on undemanding multiples. We maintain our BUY rating with a new price target of A$4.50 (was A$3.75).

The post Analysts tip these ASX shares to return 20% to 50% appeared first on The Motley Fool Australia.

More reading

Motley Fool contributor James Mickleboro has positions in Web Travel Group Limited. 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.

I searched for the next $10 billion ASX company. These 5 caught my attention

James Mickleboro — Wed, 21 Oct 2026 22:41:18 +0000

One of the things I love about long-term investing is the potential for compounding to turn a relatively modest investment into something much more substantial.

And I think one of the best ways to benefit from this is to identify growing businesses before they become some of the share market's largest companies.

After all, a business worth $2 billion or $3 billion today could potentially become worth $10 billion over the coming decade if it can consistently grow its earnings and successfully expand its operations.

For investors who identify these opportunities early and remain patient, the rewards could be significant.

With that in mind, I decided to look for ASX shares that I believe have a reasonable chance of reaching a $10 billion market capitalisation in the future.

Here are five that caught my attention.

HUB24 Ltd (ASX: HUB)

The first ASX share on my shortlist is HUB24. I think this investment platform provider has an excellent opportunity to become one of Australia's largest financial services technology businesses.

Its platform allows financial advisers to manage their clients' investments and superannuation, providing access to a wide range of investment products and portfolio management tools.

And as more financial advisers move away from traditional platforms towards modern technology, HUB24 has been winning an increasing share of the market.

For example, at the end of September, HUB24 had $168.6 billion in funds under administration, representing an increase of 15% over the previous year. It also attracted $4 billion in net platform inflows during the quarter.

What I like is how additional funds flowing onto its platform can translate into higher recurring revenue without requiring a proportionate increase in operating costs. This creates opportunities for profit margins to improve as the business grows.

And HUB24 isn't standing still. It continues to invest in technology, introduce new services, and expand its relationships with financial advisers. With a current market capitalisation of approximately $5.4 billion, HUB24 would need to become almost twice as valuable to reach $10 billion.

I believe that is achievable over the next decade, especially if it continues increasing its market share and growing earnings at an attractive rate.

But HUB24 isn't the only company I found with a compelling growth opportunity.

Among the remaining four are a business already reaching more than 100 million people worldwide and another that has recently secured almost $1 billion in new contracts.

Both are still valued well below $10 billion, and I believe they represent compelling opportunities for long-term investors.

So, which other ASX shares made my shortlist, and what could take them to that milestone?

Life360 Inc (ASX: 360)

Another ASX share that caught my attention is Life360.

Its family safety platform has become an increasingly important part of everyday life for millions of people, helping them stay connected with family members and keep track of their safety.

But what stands out with Life360 is how much of its potential audience remains untapped financially. At the end of June, the company had approximately 102.4 million monthly active users globally. However, only around 3.2 million family groups were paying for its subscription services.

That provides substantial scope to increase revenue by encouraging more users to subscribe, while also expanding its advertising business. The latter is already growing rapidly, with advertising revenue increasing more than fourfold to US$22 million during the second quarter.

With its market capitalisation sitting at approximately $5 billion, I believe Life360 has a credible opportunity to reach $10 billion if it can keep expanding its user base and improving monetisation.

The challenge will be maintaining user engagement and turning audience growth into sustainable profits, particularly as it increases spending on advertising and international expansion.

Megaport Ltd (ASX: MP1)

Megaport is another ASX share that I believe could become substantially more valuable.

Previously best known for providing on-demand network connections between data centres and cloud platforms, Megaport has expanded into supplying computing infrastructure for artificial intelligence (AI).

Its acquisition of Latitude.sh has opened up opportunities to provide the processing power businesses need to run increasingly sophisticated AI applications.

In September, Megaport announced three additional AI infrastructure contracts worth approximately $979 million. These contracts are expected to generate around $232 million in annual recurring revenue once fully deployed.

Including its earlier agreements, Megaport has announced approximately $2.3 billion in strategic AI infrastructure contracts since April.

That is impressive progress for a company with a current market capitalisation of approximately $3.8 billion.

Management is forecasting FY 2027 revenue of $720 million to $810 million, with substantial growth expected as its new contracts come online. However, delivering these projects requires investment, with planned FY 2027 capital expenditure approaching $1.9 billion.

If it can successfully deliver on its contracts and build a profitable AI infrastructure business alongside its established network operations, I believe Megaport could eventually be worth $10 billion.

Netwealth Group Ltd (ASX: NWL)

Another business that I think has the potential to join the $10 billion club is Netwealth.

Like HUB24, Netwealth operates an investment and superannuation platform used by financial advisers and their clients.

And while the two companies compete for similar customers, I believe the size of Australia's wealth management industry leaves considerable room for both to grow.

Netwealth's latest quarterly update revealed that funds under administration had reached a record $139.2 billion at the end of September. This was an increase of 15.2% over the previous year, demonstrating that the business continues to expand despite some challenging market conditions.

Another encouraging development was its managed accounts business, which attracted record quarterly net inflows of $2.2 billion. Managed accounts allow advisers to manage client portfolios more efficiently and provide Netwealth with an opportunity to generate additional revenue from the funds on its platform.

With a market capitalisation of approximately $4.2 billion, Netwealth would need to more than double in value to reach $10 billion.

I think that is achievable over the longer term if it can maintain strong inflows, expand its services, and translate its growing funds under administration into higher earnings.

Telix Pharmaceuticals Ltd (ASX: TLX)

A final ASX share that I believe deserves a place on this list is Telix Pharmaceuticals.

The biotechnology company has already established a successful commercial business supplying radioactive imaging products that help doctors diagnose cancer.

And I think its potential extends even further. Telix is developing treatments that use targeted radiation to attack cancer cells, potentially allowing it to participate in a much larger market.

The company is also expanding its existing diagnostic portfolio, which continues to deliver strong revenue growth.

In the September quarter, Telix generated US$245 million in revenue, up 19% year on year. Management expects revenue and other income to exceed US$1 billion in FY 2026.

Telix is also pursuing a merger with German radioisotope specialist ITM, which could strengthen its manufacturing capabilities and expand its cancer treatment pipeline.

With the company currently valued at approximately $4.9 billion, reaching $10 billion would require substantial further growth.

But I believe its commercial operations provide an encouraging foundation, while successful clinical trials and regulatory approvals could unlock significant additional value.

It is important to remember that drug development carries considerable risks, and the proposed ITM transaction would also involve issuing substantial new equity. However, if Telix can successfully expand beyond cancer diagnostics into commercial treatments, I believe it has the potential to become one of Australia's leading healthcare companies.

The post I searched for the next $10 billion ASX company. These 5 caught my attention appeared first on The Motley Fool Australia.

More reading

Motley Fool contributor James Mickleboro has positions in Life360 and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Netwealth Group, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Life360 and Netwealth Group. The Motley Fool Australia has recommended Hub24 and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A leading broker just upgraded these 3 ASX shares

James Mickleboro — Wed, 21 Oct 2026 22:25:07 +0000

The team at Morgans has been busy updating its view on a number of ASX shares this week.

Three that have fared well and received upgraded ratings are listed below. Here's what the leading broker is saying:

Mitchell Services Ltd (ASX: MSV)

Morgans was impressed with this drilling services provider's performance during the first quarter and believes it supports its view that earnings leverage is emerging.

As a result, the broker has upgraded Mitchell Services shares to a speculative buy rating with an improved price target of 80 cents. It commented:

MSV's 1Q27 result reinforces our view that earnings leverage is beginning to emerge. Operating rigs increased to 66 during the quarter and MSV expects a further 10 rigs to commence by 3Q27. With underlying margins remaining strong at 22.9% and utilisation at 85%, we believe this increased operating activity should increasingly translate into earnings growth as drilling markets recover.

Pathway to 80 – MSV has also stated it sees a pathway to having 80 operating rigs by FY27-end. Against an FY26 average operating fleet of ~62 rigs, this represents a significant increase in activity levels and supports our view that earnings leverage will become increasingly evident through FY27. We upgrade our recommendation to SPECULATIVE BUY (previously ACCUMULATE) with an increased price target of A$0.80ps (previously A$0.60ps).

New Hope Corporation Ltd (ASX: NHC)

Another ASX share that has been upgraded by Morgans is coal miner New Hope.

In response to news of a deal to acquire Malabar Resources, the broker has upgraded New Hope shares to an accumulate rating with a $6.30 price target. It explains:

NHC has announced an agreement to acquire the remaining ~74% of privately held Malabar Resources via a scrip scheme of arrangement, bringing the Maxwell Mine fully into the NHC portfolio. NHC is effectively consolidating a tier-one Hunter Valley asset with significant infrastructure already in place, substantial resource optionality, and multiple synergies with its nearby Bengalla mine.

We upgrade our recommendation to ACCUMULATE (previously HOLD) with an increased target price of A$6.30ps (previously A$6.05ps).

PWR Holdings Ltd (ASX: PWH)

Lastly, this automotive cooling products company's shares have been upgraded to an accumulate rating with an improved price target of $12.55.

Morgans made the move following the release of a positive trading update from PWR at its annual general meeting. The broker commented:

PWH provided a positive trading update at its AGM with FY27 guidance upgraded. The upgraded guidance was driven by an increase in Aerospace & Defence (A&D) revenue growth expectations from ~30% to ~50%, largely reflecting a recently secured US$4.6m order. Guidance for the remaining segments (Motorsports, OEM and Aftermarket) was broadly unchanged, with management continuing to target a ~200bp improvement in FY27 NPAT margin to ~12.5%. We increase FY27F revenue by 4% and NPAT by 3% following the upgrade to A&D guidance.

However, we make minimal changes to FY28 and FY29 forecasts as we await further contract wins to provide greater confidence in the medium-term pipeline. Our target price increases to A$12.55 (from A$12.40) following updates to earnings forecasts. With a 12-month forecast TSR of 14%, we upgrade our rating on PWH to ACCUMULATE (from HOLD).

The post A leading broker just upgraded these 3 ASX shares appeared first on The Motley Fool Australia.

More reading

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

5 things to watch on the ASX 200 on Thursday

James Mickleboro — Wed, 21 Oct 2026 20:49:50 +0000

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a mildly positive session and pushed higher. The benchmark index rose 0.15% to 8,831.3 points.

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

ASX 200 expected to edge lower

It looks set to be a subdued session for Australian investors despite a good night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 1 point lower this morning. In the United States, the Dow Jones rose 0.7%, the S&P 500 climbed 0.6%, and the Nasdaq jumped 1.05%.

CSL appoints new CEO

CSL Ltd (ASX: CSL) shares will be on watch on Thursday after the biotech giant announced the appointment of its new CEO. Deborah Waterhouse will commence in the role from 1 February 2027. The company notes that the appointment was made following an extensive global search process. It highlights that Ms Waterhouse is a proven commercial leader with more than 25 years' experience managing complex global specialty pharmaceutical companies across the U.S., the UK, Europe, and Australia.

Oil prices mixed

ASX 200 energy shares Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) will be on watch following a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is flat at US$97.82 a barrel and the Brent crude oil price is up 0.9% to US$109.74 a barrel. Traders appear undecided where next for oil prices following Middle East developments.

Accumulate BHP shares

BHP Group Ltd (ASX: BHP) shares could be good value according to analysts at Ord Minnett. In response to the mining giant's quarterly update, the broker has upgraded BHP shares to an accumulate rating (from hold) with a $63.00 price target. Based on its current share price of $58.54, this implies potential upside of approximately 8% for investors. Ord Minnett also expects a dividend yield of around 4.75%.

Gold price rises

It could be a relatively positive session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price rose overnight. According to CNBC, the gold futures price is up 0.25% to US$4,152 an ounce. This saw the gold price recover from a one-week low.

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

More reading

Motley Fool contributor James Mickleboro has positions in CSL and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I looked for ASX shares that could double their dividends by 2036. Here's what I found

James Mickleboro — Wed, 21 Oct 2026 03:39:17 +0000

One of the things I love about long-term investing is the potential for compounding to turn relatively modest growth into something much more substantial.

And this doesn't just apply to ASX share prices. It can also apply to dividend income.

For example, if a company increases its dividend by approximately 7.2% annually, its payout will double over 10 years.

That means an investment generating $1,000 in annual dividends today could potentially provide $2,000 in 2036, without the investor having to buy another ASX share.

Of course, achieving that requires a business capable of growing its earnings and cash flows consistently enough to support those increases.

So, I decided to look for ASX shares that I believe could potentially double their dividends over the next decade.

Here are five that caught my attention.

Coles Group Ltd (ASX: COL)

The first ASX share I would consider is Coles. I think the supermarket giant has many of the qualities that make a good long-term dividend investment.

It operates in an industry where demand is relatively dependable, with millions of Australians visiting its stores every week to buy everyday essentials.

But what I like most is the opportunity to improve profitability. Coles has invested heavily in automated distribution centres, technology, and improving its supply chain. These investments are already helping the company become more efficient, and I believe there are further benefits to come.

Its FY 2026 results were encouraging, with underlying net profit increasing by approximately 13%. The company also paid fully franked dividends totalling 78 cents per share for the year.

If that payout doubled by 2036, shareholders would be receiving $1.56 per share annually.

I think this makes Coles a good starting point, but I believe some of the other companies on my shortlist have the potential to deliver even greater dividend growth.

In fact, a couple could be paying substantially more to shareholders by 2036 if their ambitious growth plans deliver.

So, which other ASX shares do I believe could double their dividends over the next decade?

Dicker Data Ltd (ASX: DDR)

Another ASX share I believe could potentially double its dividends by 2036 is Dicker Data.

The company distributes technology products, software, and cloud solutions to thousands of Australian and New Zealand businesses through its reseller network.

I like this business because technology spending is becoming increasingly important to organisations of all sizes. Whether companies are upgrading computers, moving to the cloud, or strengthening cybersecurity, Dicker Data is well positioned to benefit.

And there is evidence that demand remains strong. During the first half of FY 2026, Dicker Data increased its gross revenue by 14.2%, while net profit jumped 54.1%.

The company has also announced plans to acquire Sektor Group, which will give it an established presence in parts of Southeast Asia and expand its range of technology products. I think this could open up additional growth opportunities over the coming decade.

Dicker Data currently pays quarterly dividends of 11.5 cents per share, equivalent to 46 cents annually if maintained. Doubling that annualised amount would mean shareholders receiving 92 cents per share in 2036.

While its relatively high dividend payout ratio means earnings growth will be important, I believe Dicker Data has the potential to deliver it.

REA Group Ltd (ASX: REA)

The next ASX share I would consider is property listings company REA Group. I think this is one of the best businesses on the Australian share market, largely because of the powerful competitive position enjoyed by its realestate.com.au platform.

Its enormous audience makes it an essential advertising destination for real estate agents, which in turn helps attract even more property buyers and sellers.

And that gives REA considerable pricing power. As agents become increasingly dependent on its platform, the company can continue introducing higher-value advertising products and services.

Importantly, REA doesn't necessarily need property listings to grow substantially to increase its earnings. That was demonstrated in FY 2026, when its Australian residential revenue increased by 12%, despite relatively flat listing volumes.

Its fully franked annual dividend also increased by 20% to $2.97 per share. If REA could sustain average dividend growth of around 7.2%, that payout would reach approximately $5.94 by 2036.

I wouldn't be expecting 20% growth every year, but given its competitive advantages and opportunities to increase revenue per listing, I think doubling its dividend is achievable.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX share that I believe deserves a place on this list. The enterprise software provider supplies essential systems to councils, universities, government organisations, and businesses.

I like the stickiness of its offering. Once customers have adopted TechnologyOne's software, switching to another provider can be expensive and disruptive. This helps the company retain customers and generate recurring revenue.

And as its customer base expands, I believe profitability could grow considerably. In fact, TechnologyOne reported annual recurring revenue of $598 million at the end of March 2026, representing an increase of 17%.

But management isn't resting on its laurels. It is targeting more than $1 billion in annual recurring revenue by FY 2030.

That provides a strong foundation for future earnings and dividend growth, particularly as the company benefits from the economies of scale of its cloud software platform.

WiseTech Global Ltd (ASX: WTC)

A final ASX share I think has a lot of dividend growth potential is WiseTech Global.

The logistics software company is best known for CargoWise, which helps freight forwarders and logistics providers manage complex international supply chains.

I think the long-term opportunity here is significant. Global logistics remains a complicated industry, and companies are increasingly turning to technology to improve efficiency and manage their operations.

CargoWise is deeply embedded in many customers' businesses, making it difficult to replace and providing WiseTech with recurring revenue.

In FY 2026, WiseTech generated US$410.7 million in free cash flow, an increase of 43%. I believe continued growth in CargoWise and successful integration of its acquisitions could support significantly higher earnings and dividends by 2036.

However, WiseTech arguably carries greater execution and governance risks than some of the other companies on this list.

Its borrowings following the e2open acquisition also mean debt reduction will compete with dividend growth for cash.

Nevertheless, with its relatively low dividend payout ratio and significant growth opportunities, I believe its dividends could potentially more than double over the next decade.

Which would I choose?

All five ASX shares offer different paths to higher dividend income, but I think REA Group and TechnologyOne stand out for their combination of competitive advantages, recurring revenue, and long-term growth potential.

Neither necessarily offers the highest dividend yield today. However, if they can continue growing earnings at attractive rates, I believe their dividends could be substantially larger in 2036.

The post I looked for ASX shares that could double their dividends by 2036. Here's what I found appeared first on The Motley Fool Australia.

More reading

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

Morgans names 3 ASX shares to buy now

James Mickleboro — Tue, 20 Oct 2026 23:00:43 +0000

The team at Morgans has been busy running the rule over a number of ASX shares.

Three that have fared well and been given buy ratings are listed below. Here's why the broker is bullish on them:

ARB Corporation Ltd (ASX: ARB)

Morgans was a touch disappointed with this 4×4 parts manufacturer's performance during the first quarter.

However, it remains positive on the future and has retained its buy rating with a $25.90 price target. This implies potential upside of over 50% for investors.

Commenting on ARB, Morgans said:

ARB's 1Q27 update was disappointing: sales -6.1% (1Q26 +3.8%) as Aftermarket and Export weakness (single-digit declines) outweighed strong OEM growth. Positively, PBT grew despite weaker sales amid steady gross margins (FX-driven). While a softer Aftermarket result was largely expected (ARB's core vehicle volumes -16% in 1Q27), Export was a negative surprise, as slower US OEM sales, softer UK vehicle volumes and weak NZ demand offset growth in the US Aftermarket, Africa, Europe and SE Asia.

Positively, new OEM contract wins and early indications of recovering OEM sales support the division's outlook. Despite softer near-term sales, resilient margins should continue to underpin the earnings base, with improving vehicle supply and various network and growth initiatives driving the earnings recovery. BUY maintained, A$25.90ps target price.

Navigator Global Investments Ltd (ASX: NGI)

The broker highlights that this global investment company delivered a mixed quarter.

Nevertheless, it remains positive and has retained its buy rating and $3.04 price target. This suggests that the ASX share could rise around 46% from current levels.

The broker commented:

NGI has released its September 2026 (1Q27) AUM update. We saw this as a bit of a mixed quarter. Group ownership-adjusted AUM rose +9% (or a solid ~+3% excluding Stable Growth), led by the NGI Strategic Portfolio (+9%).

However, Lighthouse was softer, with net flows slowing to +US$280m (4Q26: +US$690m), being mostly into lower-margin managed accounts, and largely offset by negative performance (-US$240m). We make no changes to our forecasts or our A$3.04 price target. With >20% upside remaining to our PT, we maintain our BUY recommendation.

Netwealth Group Ltd (ASX: NWL)

A third ASX share that has been given the thumbs up from Morgans is investment platform provider Netwealth.

Once again, although Netwealth's quarterly performance fell short of expectations, Morgans still sees plenty of value in its shares.

As a result, it has retained its buy rating with a $22.90 price target. It said:

NWL's 1Q27 net flows of A$2.6bn were below VA consensus (A$3.5bn), with elevated gross outflows persisting (incl. two institutional client exits totalling A$0.6bn). Group FUA grew +2.5% QoQ to a record A$139.2bn, ~1.3% shy of VA consensus (A$141.0bn), with markets a slight +A$0.8bn tailwind. FY27 net flows guidance was lowered to A$17-19bn, with NWL flagging budget impacts & market volatility as current headwinds to adviser/investor behaviour.

We trim our FY27-29F NPAT forecasts by -5-6% reflecting a modest miss vs MorgF, and the addition of Paradino into MorgansF. NWL is trading on a FY27 P/E of ~30x (a -35% discount to its 5yr avg). Our BUY rating is retained with a PT of A$22.90/sh.

The post Morgans names 3 ASX shares to buy now appeared first on The Motley Fool Australia.

More reading

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

Buy, hold, sell: Deep Yellow, PLS, Pro Medicus shares

James Mickleboro — Tue, 20 Oct 2026 22:45:23 +0000

If you are in the market for some new portfolio additions, it could be worth seeing what the team at Morgans is saying about the three ASX shares in this article.

Does the broker rate them as buys, holds, or sells? Let's find out:

Deep Yellow Ltd (ASX: DYL)

Morgans highlights that this uranium developer's final investment decision (FID) for the Tumas project is behind schedule due to uncertain equity market and funding conditions.

Nevertheless, it remains positive and sees an opportunity for investors with a higher tolerance for risk to buy its shares. It has retained its speculative buy rating with a reduced price target of $1.50. Morgans said:

DYL has withdrawn its targeted 4Q26 Final Investment Decision (FID) for Tumas, citing weakness in equity market conditions and a constrained funding backdrop for uranium developers. The FID deferral is not entirely surprising given the weakness in DYL's share price over recent months. In our view, raising equity at current levels would have represented an unattractive funding outcome for existing shareholders.

Importantly, we view this as a delay rather than a change in strategy, with DYL remaining focused on advancing Tumas and positioning the project for a future FID. We maintain our rating of SPECULATIVE BUY with a price target of A$1.50ps (previously A$1.95ps).

PLS Group Ltd (ASX: PLS)

One ASX share that has made an FID this month is lithium miner PLS.

The decision was a touch mixed with higher capital expenditure but also higher steady-state production. As a result, the broker has retained its accumulate rating on PLS shares with a $3.70 price target. It said:

PLS has taken FID on the ~A$1.9bn P2000 expansion, lifting capacity to ~2Mtpa (from ~1.2Mtpa) with first production targeted in 1Q FY30. P2000 capex is ~20% above MorgansF, but steady-state production is higher (+16%) and sustaining + mine development spend lower (-14%). Maintain ACCUMULATE with A$3.70ps target price.

Pro Medicus Ltd (ASX: PME)

Now could be a good time to buy Pro Medicus shares according to Morgans.

In response to a new contract win, the broker has upgraded its shares to a buy rating with a $230.00 price target. It commented:

PME has announced a further seven-year, A$24m full stack cloud contract with Billings Clinic Logan Health, its third new community health system win in FY27 to date (A$72m TCV, A$10.3m new ARR). The FY27 wins are modest individually but consistent in size, term and scope, pointing to a repeatable mid-market playbook that broadens the pipeline beyond large Integrated Delivery Networks.

Near-term focus shifts to RSNA in late November as the likely window for a larger deal, and to execution on a busy 1Q'CY27 go-live schedule underpinning FY28. We upgrade to a BUY (from Accumulate), with no change to our A$230 target price.

The post Buy, hold, sell: Deep Yellow, PLS, Pro Medicus shares appeared first on The Motley Fool Australia.

More reading

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

Why VEU and these ASX ETFs could be top buys

James Mickleboro — Tue, 20 Oct 2026 21:39:25 +0000

I firmly believe that exchange traded funds (ETFs) can be an excellent way to build wealth over the long term.

They allow investors to access opportunities that might otherwise be difficult to reach, while spreading their money across a collection of companies rather than relying on individual shares.

But with so many ETFs available on the ASX, it can be hard to decide which ones to buy.

To narrow things down, here are three funds I think could be worth considering.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX ETF to look at is the Betashares Asia Technology Tigers ETF.

When people think about investing in technology, their attention often turns to Silicon Valley in the United States. But some of the world's most important technology companies are based in Asia.

For example, Taiwan Semiconductor Manufacturing Company (NYSE: TSM), Samsung Electronics, and SK Hynix (NASDAQ: SKHY) play crucial roles in producing the chips and memory that power modern computing.

And with artificial intelligence (AI) driving demand for increasingly sophisticated hardware, these businesses could have significant growth opportunities ahead of them.

The fund also owns major Chinese technology companies, including Tencent and Alibaba (NYSE: BABA), providing exposure to digital services and online commerce.

Of course, technology spending can be cyclical, and Asian markets carry geopolitical risks. Nevertheless, this ETF could be an attractive way to invest in Asia's growing importance to the global technology industry.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF worth considering is the VanEck Morningstar Wide Moat ETF.

This popular fund invests in US businesses that have sustainable competitive advantages, allowing them to defend their profitability against rivals.

These advantages might come from powerful brands, high customer switching costs, or business models that competitors would struggle to replicate.

But even a wonderful company can be a disappointing investment if investors pay too much for its shares. That's why the fund also considers estimates of fair value when selecting its holdings.

Combining business quality with valuation discipline is arguably a sensible approach for investors planning to hold their investments for many years.

Vanguard All-World ex-US Shares Index ETF (ASX: VEU)

A final ETF to consider is the Vanguard FTSE All-World ex-US Shares Index ETF.

US shares have dominated global markets in recent years, but there are plenty of successful companies operating elsewhere.

This fund makes it easy to invest in them. It holds thousands of shares across developed and emerging markets outside the United States, including businesses in Europe, Japan, China, Taiwan, and Australia.

Its holdings range from established financial institutions and consumer businesses to global technology and industrial leaders. This means investors aren't relying entirely on the US market to deliver their international returns.

For investors wanting greater international diversification, this ETF could be an excellent long-term option.

The post Why VEU and these ASX ETFs could be top buys appeared first on The Motley Fool Australia.

More reading

Motley Fool contributor James Mickleboro has positions in Betashares Capital – Asia Technology Tigers Etf and VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Taiwan Semiconductor Manufacturing and Vanguard International Equity Index Funds – Vanguard Ftse All-World ex-US ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 things to watch on the ASX 200 on Wednesday

James Mickleboro — Tue, 20 Oct 2026 20:28:24 +0000

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ended the day in the red. The benchmark index fell 0.3% to 8,816.9 points

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to rebound

The Australian share market is expected to rise on Wednesday following a mixed session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 32 points or 0.35% higher. In the United States, the Dow Jones rose 1% and the S&P 500 climbed 0.3%, but the Nasdaq was down a fraction.

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 2.5% to US$101.09 a barrel and the Brent crude oil price is down 0.5% to US$108.97 a barrel. Traders were selling oil amid optimism over diplomatic progress in the Middle East.

Sigma update

Sigma Healthcare Ltd (ASX: SIG) shares will be on watch on Wednesday when the Chemist Warehouse owner releases a trading update at its annual general meeting. Bell Potter is expecting the company to reveal that it started the financial year strongly. It said: "We expect 1Q27 network LFL network sales growth in the range of 12-13%."

Gold price falls

ASX 200 gold shares including Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price fell overnight. According to CNBC, the gold futures price is down 0.45% to US$4,141.3 an ounce. Traders were selling gold in response to rate hike fears.

Buy Pro Medicus shares

Pro Medicus Ltd (ASX: PME) shares could be a top pick for Aussie investors according to Morgans. It has upgraded the health imaging technology company's shares to a buy rating with a $230.00 price target. It said: "PME has announced a further seven-year, A$24m full stack cloud contract with Billings Clinic Logan Health, its third new community health system win in FY27 to date (A$72m TCV, A$10.3m new ARR). The FY27 wins are modest individually but consistent in size, term and scope, pointing to a repeatable mid-market playbook that broadens the pipeline beyond large Integrated Delivery Networks. Near-term focus shifts to RSNA in late November as the likely window for a larger deal, and to execution on a busy 1Q'CY27 go-live schedule underpinning FY28. We upgrade to a BUY (from Accumulate), with no change to our A$230 target price."

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

More reading

3 ASX shares I'd buy and hold for the next 10 years

James Mickleboro — Mon, 19 Oct 2026 22:52:19 +0000

If I were building an ASX share portfolio for the next 10 years, I would focus on companies with strong competitive advantages and plenty of opportunities to grow.

After all, I believe some of the best investment returns come from owning quality businesses and giving them time to compound their earnings.

With that in mind, here are three ASX shares I would happily buy and hold until 2036.

ResMed Inc. (ASX: RMD)

The first ASX share I would consider is ResMed.

ResMed has spent decades improving the treatment of sleep apnoea, building a business that extends well beyond simply selling medical devices.

Its ongoing investment in product development has made treatment more comfortable and convenient for patients, while its software helps healthcare providers monitor how effectively that treatment is working.

I believe this focus on innovation has been instrumental in establishing ResMed's market-leading position, and there is still considerable room for growth.

After all, an estimated 1 billion people around the world suffer from sleep apnoea, with the vast majority undiagnosed.

With its financial strength, established market position, and commitment to innovation, I think ResMed has an excellent chance of becoming a significantly larger business over the next decade.

TechnologyOne Ltd (ASX: TNE)

Another ASX share I would buy and hold for a decade is TechnologyOne.

The enterprise software provider supplies essential systems to universities, councils, government organisations, and businesses.

Once customers adopt its software, switching to a competitor can be expensive and disruptive, helping TechnologyOne retain customers and generate recurring revenue.

And with organisations continuing to move their operations to the cloud, I believe there is plenty more growth to come.

At the end of March, TechnologyOne reported annual recurring revenue of $598 million. Management is now targeting more than $1 billion by FY 2030.

In light of this, I think TechnologyOne has the potential to continue growing strongly well beyond that target.

Wesfarmers Ltd (ASX: WES)

A final ASX share I would be happy to own for the next decade is Wesfarmers.

One of the reasons I have so much confidence in this company is its ability to adapt to changing consumer habits while continuing to grow its businesses.

Kmart is a good example. It has established itself as a destination for affordable everyday products, which has helped it win customers and grow its market share.

Meanwhile, Bunnings continues to strengthen its position in the home improvement market, with opportunities to grow sales among both DIY customers and professional tradespeople.

And with its healthcare division expanding, Wesfarmers is developing another business that could make a meaningful contribution to earnings in the years ahead.

Overall, I believe Wesfarmers has the financial strength, experience, and growth opportunities to keep delivering for shareholders well beyond 2036.

The post 3 ASX shares I'd buy and hold for the next 10 years appeared first on The Motley Fool Australia.

More reading

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

Guess which ASX 200 share was just hit with a broker downgrade

James Mickleboro — Mon, 19 Oct 2026 22:10:40 +0000

Sigma Healthcare Ltd (ASX: SIG) shares have been on a strong run recently.

Since the middle of September, the Chemist Warehouse owner's shares have outperformed the S&P/ASX 200 index (ASX: XJO) with a gain of around 13%.

However, one leading broker is calling time on the rally on the belief that its shares are about fair value now.

What's happening?

According to a note out of Bell Potter, its analysts are expecting a good update from the company at this month's annual general meeting. This is thanks largely to strong demand for GLP-1s. It said:

SIG will conduct is AGM in Melbourne on 21 October when it is expected to provide a 3 month trading update. LFL network sales growth is the key performance measure. The group reported 14.7% growth for this metric in 1Q FY26 aided by store refurbishments and GLP-1 tailwinds.

In FY27 the bar is raised higher by virtue of the larger revenue base, nevertheless, the global GLP-1 phenomena continues with demand for private prescriptions likely to continue to increase. The downstream benefits will also flow, i.e. GLP-1 customer basket size is on average 40% larger than other customers, being mostly sales of protein and other dietary supplements. We expect 1Q27 network LFL network sales growth in the range of 12-13%.

Looking ahead, Bell Potter believes the launch of new GLP-1s will be supportive of growth for the ASX 200 share. It adds:

The next chapter of the GLP-1 growth is about to commence with the upcoming registration in Australia of the oral formulation of Lilly's blockbuster GLP-1 medication – Mounjaro. The oral formulation (branded Foundayo) is expected to gain TGA approval in late CY26. The drug gained FDA approval in the US in April 202[6] with the US DTC launch in June 2026. June qtr 2026 global revenues reached US$98m.

Elsewhere sales of Mounjaro (being the original injectable formulation) continue to grow rapidly. Lilly's 2Q global sales increased 90% vs pcp to $US9.9bn. The read through to the Australian market is similarly positive where we believe private prescriptions for GLP-1 medications represent at least 44% of total prescriptions sold. All of this is a tailwind for SIG which is a major beneficiary of foot traffic into pharmacies for the purpose of prescription medicines.

In response to recent share price strength, Bell Potter has downgraded Sigma Healthcare's shares to a hold rating (from buy) with an unchanged price target of $3.00.

Based on its current share price of $2.83, this implies modest potential upside of 6% for investors over the next 12 months.

Commenting on the downgrade, Bell Potter said:

The recent flight to safety away from tech is probably responsible for the rally in the SIG market price over recent weeks, nevertheless the stock remains expensive relative to growth outlook. In the absence of a significant upgrade, our recommendation is adjusted to Hold from Buy. PT is unchanged at $3.00.

The post Guess which ASX 200 share was just hit with a broker downgrade appeared first on The Motley Fool Australia.

More reading

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.

3 of the best ASX dividend shares for income investors

James Mickleboro — Mon, 19 Oct 2026 21:38:49 +0000

For investors looking to generate passive income from the share market, there are plenty of opportunities among ASX dividend shares right now.

Here are three shares that income investors may want to consider.

Cedar Woods Properties Ltd (ASX: CWP)

The first ASX dividend share that could be worth considering is Cedar Woods Properties. This property developer has a growing portfolio of residential communities, townhouses, and apartments across Australia.

The company appears well positioned to benefit from Australia's ongoing housing shortage and growing population, which could support demand for its developments. And with Cedar Woods reporting record presales of $830 million at the end of FY 2026, it has excellent visibility over future earnings.

Bell Potter is positive on the company and has a buy rating and $9.80 price target on its shares. As for income, it is forecasting fully franked dividends of 44 cents per share in FY 2027 and 47 cents in FY 2028. Based on its current share price of $5.90, this would mean dividend yields of approximately 7.5% and 8%, respectively.

Eagers Automotive Ltd (ASX: APE)

Another ASX dividend share that could appeal to income investors is Eagers Automotive.

It is Australia's largest automotive retailer, operating an extensive network of dealerships selling new and used vehicles, alongside servicing, parts, and finance products.

Its scale and diversified operations provide opportunities to improve efficiency and support long-term earnings growth.

Eagers is also expanding internationally, with its recent investment in Canada's automotive retail market providing another potential growth opportunity.

Bell Potter is bullish on Eagers Automotive and has a buy rating and $27.50 price target on its shares.

With respect to income, the broker estimates that it will pay dividends of 76 cents per share in FY 2026 and 82 cents in FY 2027. Based on its current share price of $18.08, this would mean dividend yields of 4.2% and 4.5%, respectively.

Rural Funds Group (ASX: RFF)

A final ASX dividend share worth considering is Rural Funds Group.

This agricultural property company owns a diversified portfolio of farmland across Australia, including cattle properties, vineyards, and orchards.

Rather than relying on agricultural production, Rural Funds generates the majority of its income by leasing its properties to farming businesses. These long-term leases provide relatively predictable rental income, which helps support regular dividends to investors.

Bell Potter currently has a buy rating and $2.55 price target on Rural Funds units.

As for income, the broker expects annual dividends of 11.7 cents per unit in FY 2027, FY 2028, and FY 2029. Based on its current share price of $1.92, this represents dividend yields of approximately 6.1% for each of those years.

The post 3 of the best ASX dividend shares for income investors appeared first on The Motley Fool Australia.

More reading

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 positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Cedar Woods Properties and Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

5 things to watch on the ASX 200 on Tuesday

James Mickleboro — Mon, 19 Oct 2026 20:26:10 +0000

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week in a positive fashion. The benchmark index rose 0.45% to 8,845.7 points.

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

ASX 200 expected to sink

The Australian share market looks set for a tough session on Tuesday following a mixed start to the week in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 77 points or 0.85% lower. On Wall Street, the Dow Jones fell 0.1%, but the S&P 500 rose 0.4% and the Nasdaq jumped 1.1%.

Sell New Hope shares

Bell Potter thinks New Hope Corporation Ltd (ASX: NHC) shares are overvalued. This morning, the broker has retained its sell rating on the coal miner's shares with an improved price target of $5.30. It said: "We maintain a Sell recommendation. Our $5.30/sh TP already incorporates a 15% premium to our sum-of-the-parts valuation, reflecting NHC's leverage to global energy security themes amplified by recent geopolitical tensions. We expect energy markets will normalise over the near-term. While the Malabar acquisition will materially strengthen NHC's long-term production outlook, Maxwell's longwall ramp-up to 5Mtpa saleable production brings elevated operational complexity over the medium-term."

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch following a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 2.25% to US$103.69 a barrel and the Brent crude oil price is down 0.45% to US$109.39 a barrel. Overnight there were more reports of Houthi attacks on Saudi infrastructure.

Sigma Healthcare shares downgraded

Sigma Healthcare Ltd (ASX: SIG) shares will be on watch on Tuesday after being hit with a broker downgrade. According to a note out of Bell Potter, it has downgraded the Chemist Warehouse owner's shares to a hold rating (from buy) with a steady price target of $3.00. It said: "The recent flight to safety away from tech is probably responsible for the rally in the SIG market price over recent weeks, nevertheless the stock remains expensive relative to growth outlook. In the absence of a significant upgrade, our recommendation is adjusted to Hold from Buy. PT is unchanged at $3.00."

Gold price falls

ASX 200 gold shares including Genesis Minerals Ltd (ASX: GMD) and Capricorn Metals Ltd (ASX: CMM) could have a subdued session on Tuesday after the gold price dropped overnight. According to CNBC, the gold futures price is down 0.5% to US$4,159.8 an ounce. Higher US Treasury yields weighed on the precious metal.

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

More reading

Buy, hold, sell: Mesoblast, PLS, and SEEK shares

James Mickleboro — Sun, 18 Oct 2026 21:47:22 +0000

If you are in the market for some new portfolio additions, it could be worth seeing what the team at Bell Potter is saying about the three ASX shares in this article.

Does the broker rate them as buys, holds, or sells? Let's find out:

Mesoblast Ltd (ASX: MSB)

Bell Potter notes that this biotechnology company released its quarterly update and revealed Ryoncil sales of US$28 million, which was well short of its forecast of US$40 million.

However, it points out that revenues were adversely impacted by low patient numbers across the summer months, with the low point in August.

As a result, the broker remains positive and has retained its buy rating on Mesoblast shares with a slightly trimmed price target of $4.40. It said:

The miss on September quarter revenues requires a downgrade to the forecast for FY27 Ryoncil revenues. The forecast is lowered by 18% ($243m to $203m) with the NPAT reduced by a similar quantum to $26.7m. The FY28 revenue forecast is reduced by 7%, however, there are no changes to the long-term outlook. Price target is reduced to $4.40.

PLS Group Ltd (ASX: PLS)

Bell Potter has also been looking at lithium giant PLS Group. It highlights that the company has announced plans to double Pilgangoora nameplate spodumene concentrate capacity to 2Mtpa.

A feasibility study outlined development capex of $1.9 billion, with an incremental net present value (8% discount rate) of $2.7 billion.

In response, the broker has retained its buy rating on PLS shares with a trimmed price target of $4.10. It said:

While P2000 introduces medium-term execution risk, completion will meaningfully strengthen PLS' long-term position as a large, low-cost hard-rock lithium producer. The company retains offtake optionality with ~50% of FY30 expected SC production of 2Mtpa uncontracted. Colina development studies are progressing, providing additional organic growth optionality in markets with strong underlying demand fundamentals from EV adoption and BESS deployment.

Seek Ltd (ASX: SEK)

The broker isn't quite as positive on this job listings company's shares.

However, it was pleased to see that Seek's job ad volume index slowed its annual rate of decline to -3.5% in September (Aug -5.3%). It also printed a third consecutive non-negative month on month number.

In response to the news, the broker has retained its hold rating on Seek shares with an improved price target of $13.60. It said:

We await a positive shift in sentiment or further visibility on jobs volumes recovery; potential near term Growth Fund monetisation remains an asymmetric upside risk, though the current interest rate backdrop may also be an additional headwind in seeking a desired exit price for nominated assets.

SEK appears to be improving operations to sustainably target 10% yield growth on top of strong cost controls, however, despite trading at deep value ex. Growth Fund, macro-based headwinds suggest difficult sentiment near-term for the stock. Maintain Hold.

The post Buy, hold, sell: Mesoblast, PLS, and SEEK shares appeared first on The Motley Fool Australia.

More reading

Experts name 3 top ASX shares to buy this week

James Mickleboro — Sun, 18 Oct 2026 21:31:46 +0000

If you are looking for new additions to your portfolio, then it could be worth listening to what analysts are saying about the top ASX shares named below, courtesy of The Bull.

Here's what they are recommending this week:

Ramelius Resources Ltd (ASX: RMS)

The team at Fairmont Equities thinks this gold miner could be an ASX share to buy this week.

It likes Ramelius Resources due to its belief that gold stocks will rally higher due to strong gold prices. It said:

Gold prices appear to have bottomed after trading much higher in early 2026. The share prices of various gold mining stocks have held up well, and this sign of strength is bullish. I'm expecting gold mining stock prices to rally higher from here as they follow potentially higher gold prices.

RMS is an Australian gold producer with no debt and strong free cash flow. It pays a fully franked dividend and has been buying back shares. RMS is highly leveraged to an increasing gold price and the company's outlook is bright.

Sigma Healthcare Ltd (ASX: SIG)

Over at Baker Young, it has named Chemist Warehouse owner Sigma Healthcare as an ASX share to buy.

Baker Young sees an opportunity for investors after recent share price weakness. It explains:

Sigma Healthcare is a wholesale distributer of pharmaceutical goods and medicines. Sigma merged with pharmaceutical retail giant Chemist Warehouse in 2025. The company's share price has retreated to appealing entry levels at October 15. Its competitive position remains unrivalled, in our view. Structural health trends should continue to support organic growth.

Although some competition is likely, the GLP-1 weight loss drug rollout should boost treatment sales. The Chemist Warehouse branded store network is forecast to generate double digit, like-for-like sales growth in full year 2027.

Xero Ltd (ASX: XRO)

Baker Young is also feeling positive about cloud accounting platform provider Xero and thinks it could be an ASX share to buy now.

It sees the material decline in the Xero share price as a buying opportunity for investors. Especially given its view that small to medium sized businesses will continue to use accounting and payment software rather than using AI to develop their own systems. It explains:

Xero is an accounting software provider. Concerns about future growth rates due to perceived competitive threats from AI tools remain. But we believe the material decline in XRO's share price amid the company continuing to deliver operational performance inline or above market guidance has created a compelling value opportunity.

We believe small to medium sized firms handling critical financial information will continue using trusted third party suppliers rather than develop their own systems. XRO's strong growth rates justify higher than average multiples, in our view. We're comfortable building positions for longer term investors around current levels.

The post Experts name 3 top ASX shares to buy this week appeared first on The Motley Fool Australia.

More reading

Motley Fool contributor James Mickleboro has positions in Xero. 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.

These are the 10 most shorted ASX shares

James Mickleboro — Sun, 18 Oct 2026 20:48:47 +0000

Once a week, I like to look at ASIC's short position report to find out which ASX shares are being targeted by short sellers.

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

DroneShield Ltd (ASX: DRO) remains the most shorted ASX share after its short interest jumped from 14.5% to 16.2%. Short sellers may still be concerned about the ASIC investigation into the company's previous market disclosures and share trading, as well as its ability to deliver on growth expectations.
Lotus Resources Ltd (ASX: LOT) has seen its short interest rise to 15.6%. With the company working to increase production at its Kayelekera uranium mine, short sellers may be questioning whether it can achieve its production targets without further cost pressures.
Boss Energy Ltd (ASX: BOE) has short interest of 15.1%, up from 13.1% last week. This could reflect doubts about the company's revised development plans for its Honeymoon uranium operation, particularly whether it can deliver the production and cost improvements outlined in its latest feasibility study.
Zip Co Ltd (ASX: ZIP) has moved up the table with 12.9% of its shares held short, compared to 12.6% last week. Short sellers may be concerned about the sustainability of its US growth and the potential for higher funding costs and customer defaults to weigh on profitability due to higher rates.
PLS Group Ltd (ASX: PLS) has short interest of 12.9%, up slightly since last week. With lithium prices weakening recently and forecasts pointing to a potential supply surplus in 2027, short sellers may be betting that the company's earnings will be less than expected.
IperionX Ltd (ASX: IPX) has seen its short interest increase to 12.9%. Although the company is making progress with its titanium production technology, short sellers may remain sceptical about how quickly it can scale up manufacturing and generate meaningful profits.
Domino's Pizza Enterprises Ltd (ASX: DMP) has 12.1% of its shares held short, up from 11.7% last week. The company recently announced another leadership change in Australia and New Zealand, and short sellers may be questioning whether its restructuring efforts can deliver a sustained recovery in sales and earnings.
Paladin Energy Ltd (ASX: PDN) has short interest of 11.8%, compared to 11.5% last week. Its Langer Heinrich mine recently reported quarterly uranium production below market expectations, potentially adding to concerns about production reliability and recovery rates.
Lynas Rare Earths Ltd (ASX: LYC) has seen its short interest rise to 11.8%. Short sellers may be concerned about the financial and operational risks associated with the proposed acquisition of Meteoric Resources and the development of its Caldeira rare earths project in Brazil.
WiseTech Global Ltd (ASX: WTC) has entered the top ten with short interest of 11%. Short sellers may be questioning whether the logistics software company can deliver the expected benefits from its major e2open acquisition and AI-driven restructuring, particularly given the significant changes taking place across the business.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

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

James Mickleboro, Author at The Motley Fool Australia

Should you buy Hub24, Northern Star, and Transurban shares?

Hub24 Ltd (ASX: HUB)

Northern Star Resources Ltd (ASX: NST)

Transurban Group (ASX: TCL)

Wondering where to invest $1,000 right now?

Buy, hold, sell: Sigma, Cliunvel, and NextDC shares

Clinuvel Pharmaceuticals Ltd (ASX: CUV)

NextDC Ltd (ASX: NXT)

Sigma Healthcare Ltd (ASX: SIG)

Wondering where to invest $1,000 right now?

5 things to watch on the ASX 200 on Friday

ASX 200 expected to fall

Oil prices rise

Buy NextDC shares

Gold price tumbles

AGMs

Wondering where to invest $1,000 right now?

3 buy-rated ASX growth shares with big international ambitions

Breville Group Ltd (ASX: BRG)

Catapult Sports Ltd (ASX: CAT)

SiteMinder Ltd (ASX: SDR)

Wondering where to invest $1,000 right now?

Analysts tip these ASX shares to return 20% to 50%

Capstone Copper Corp (ASX: CSC)

Judo Capital Holdings Ltd (ASX: JDO)

WebBeds Group Limited (ASX: WEB)

Wondering where to invest $1,000 right now?

I searched for the next $10 billion ASX company. These 5 caught my attention

HUB24 Ltd (ASX: HUB)

Life360 Inc (ASX: 360)

Megaport Ltd (ASX: MP1)

Netwealth Group Ltd (ASX: NWL)

Telix Pharmaceuticals Ltd (ASX: TLX)

Wondering where to invest $1,000 right now?

A leading broker just upgraded these 3 ASX shares

Mitchell Services Ltd (ASX: MSV)

New Hope Corporation Ltd (ASX: NHC)

PWR Holdings Ltd (ASX: PWH)

Wondering where to invest $1,000 right now?

5 things to watch on the ASX 200 on Thursday

ASX 200 expected to edge lower

CSL appoints new CEO

Oil prices mixed

Accumulate BHP shares

Gold price rises

Wondering where to invest $1,000 right now?

I looked for ASX shares that could double their dividends by 2036. Here's what I found

Coles Group Ltd (ASX: COL)

Dicker Data Ltd (ASX: DDR)

REA Group Ltd (ASX: REA)

TechnologyOne Ltd (ASX: TNE)

WiseTech Global Ltd (ASX: WTC)

Which would I choose?

Wondering where to invest $1,000 right now?

Morgans names 3 ASX shares to buy now

ARB Corporation Ltd (ASX: ARB)

Navigator Global Investments Ltd (ASX: NGI)

Netwealth Group Ltd (ASX: NWL)

Wondering where to invest $1,000 right now?

Buy, hold, sell: Deep Yellow, PLS, Pro Medicus shares

Deep Yellow Ltd (ASX: DYL)

PLS Group Ltd (ASX: PLS)

Pro Medicus Ltd (ASX: PME)

Wondering where to invest $1,000 right now?

Why VEU and these ASX ETFs could be top buys

Betashares Asia Technology Tigers ETF (ASX: ASIA)

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

Vanguard All-World ex-US Shares Index ETF (ASX: VEU)

Wondering where to invest $1,000 right now?

5 things to watch on the ASX 200 on Wednesday

ASX 200 to rebound

Oil prices fall

Sigma update

Gold price falls

Buy Pro Medicus shares

Wondering where to invest $1,000 right now?

3 ASX shares I'd buy and hold for the next 10 years

ResMed Inc. (ASX: RMD)

TechnologyOne Ltd (ASX: TNE)