The company's shares have been on the slide for much of the year, having fallen from a high of $10.44 at this time last year.

Brokers Macquarie, UBS and Morgan Stanley have had a look at the company's results this week and have come up with a range of scenarios for where they think the shares will go over the next year.

Revenue growth booked

But first to the results. On Monday, Audinate reported revenue of US$21.2 million, up from US$18.9 million for the same period last year.

The company said its gross margin increased from 82.6% from 82.2% reflecting a shift to higher-margin software solutions, but underlying EBITDA was negative to the tune of $2.3 million.

The company said 516 original equipment manufacturers were now using its Dante software suite, and it had also launched its Iris technology which it said, "extends Dante into intelligent camera control and cloud-enabled video production workflows, creating a new recurring-revenue stream and strengthening Audinate's position across video and AV control applications''.

The company's Chief Cxecutive Officer Aidan Williams said it was a solid result.

Audinate delivered a strong first half, returning to revenue growth while maintaining our industry-leading gross margins. We have strengthened our market position with continued design-win momentum, new product introductions and the successful launch of Iris, which extends Dante further into video and cloud-enabled video production workflows.

Analysts diverge on value

UBS, in a note sent to clients this week, said the company was trading at very low multiples and "we would argue that very little is being priced in at current levels''.  

UBS has a price target on the shares of $6.10, reduced from $7.10, but still well above the current level of $3.57.

Morgan Stanely has a price target of $5 on Audinate shares and said the first half result showed an overall recovery in growth.

Meanwhile the analysts at Macquarie were less hopeful about the outlook for the share price, with a target price of just $3.20 and a neutral rating on the stock.

The Macquarie team said investor expectations were now rebased following the share price falls and "we think the cyclical downgrade cycle is over in the underlying … business, with this result muted by Iris costs.''

Audinate was valued at $278.3 million at the close of trade on Monday.

The post Are Audinate shares a buy, sell or hold after this week's results? appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Audinate Group Ltd (ASX: AD8)

The Audinate share price is down 8% to $3.37. This follows the release of the audio-visual networking solutions provider's half-year results. Audinate posted a 12% increase in revenue to US$21.1 million and a 12% lift in gross profit to US$17.4 million. Looking ahead, management is guiding to US-dollar gross profit growth of 13% to 15% over FY 2025. This is expected to be underpinned by strong forward orders secured in the first half. It seems the market was expecting stronger growth than this.

Australian Clinical Labs Ltd (ASX: ACL)

The Australian Clinical Labs share price is down 11% to $2.16. This pathology services provider's shares are under pressure today after it announced the exit of its CEO, Melinda McGrath. The company revealed that McGrath will not be renewing her contract following its conclusion on 30 August 2026. She said: "I would like to take this opportunity to thank our pathologists and scientists for their leadership, and the broader Clinical Labs team for their passionate commitment to the service of our patients and referring medical practitioners. In particular, I would like to recognise the Clinical Labs executive and broader leadership teams, whose drive and innovative approach to the development of the business has been outstanding."

Coronado Global Resources Inc (ASX: CRN)

The Coronado Global share price is down 4.5% to 32.5 cents. This morning, this coal miner released a business update which revealed that sustained weakness in the U.S. High-Vol markets has caused realised pricing at its US-based Logan operation to remain below cash operating costs. As a result, the complex is now operating at a loss. In response, management said: "The Company is taking steps to preserve liquidity and protect shareholder value. Production is being immediately curtailed to cover contractual commitments carried over from 2025, which are expected to be fulfilled by March 2026."

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is down 5% to $4.97. Investors have been selling this wine giant's shares following the release of its half-year results. As many had expected, the Penfolds owner has decided to suspend dividends while it battles through a challenging period. The company's CEO, Sam Fischer, said: "Today's results come at a time when we are already making meaningful progress with the decisive actions required to return TWE to a path of sustainable, profitable growth. Our focus is firmly on the future to strengthen execution and ensure we build a stronger, more resilient business for the long term."

The post Why Audinate, Australian Clinical Labs, Coronado, and Treasury Wine shares are sinking today appeared first on The Motley Fool Australia.

Why add Catapult to your watchlist?

• Leader in a high-growth industry
• Strong results year on year
• Profitability on the horizon

Since listing on the ASX in 2014, Catapult has steadily grown to become a global leader in elite sports performance and analytics. Across the world, sports are dominated by data, from coaching tactics and player health decisions to fan engagement. And Catapult's wearable devices and analytics platform are at the heart of the trend, used by more than 3,200 professional teams globally.

While it is not yet posting a net profit after tax, all signs are pointing in the right direction. Its H1 FY26 update reported an Annualised Contract Value of $175 million (up 19% year on year) and an increased Contribution Margin, now sitting at 51.4%. This, combined with the expectations of continued growth in free cash flow, speak to a disciplined and scalable approach.

For me, Catapult has huge potential. And with recent share price falls, potentially driven by weak sentiment in the broader tech sector and investor impatience, it's one to consider.  

Why add Audinate to your watchlist?

• Network effect advantage
• Long-term runway for growth
• Transition phase may create opportunity

Audinate is a breakout player in audiovisual networking, with its flagship Dante platform setting new industry benchmarks in audio and video distribution. The digitised platform replaces traditional analogue cabling with fast digital delivery. And it's embedded in devices from over 700 manufacturers globally, giving Audinate a distinct network effect advantage.

2025 was a transitional year for Audinate, leading to an increase in costs and a revenue decline, with the company reporting a 32.2% revenue decrease year on year in FY25.

But for me, there may still be a significantly longer-term opportunity here, particularly at current prices. Given its deep sector penetration, it is well placed to build recurring, high-margin software revenue streams across its existing device ecosystem.

For me, it's one to keep a close eye on.

Why add Electro Optics Systems to your watchlist?

• Defence spending tailwinds
• Strong contract momentum
• Explosive recent growth

EOS is an Australian leader in the design and manufacture of advanced defence and space technology systems.

The company reported losses in FY 2024. However, it has a strong balance sheet, reporting cash holdings of $106.9 million and no borrowings in its Q4 2025 activity report. In addition, it reported strong order book activity, with a deal pipeline of $459 million, representing a 238% increase since 31 December 2024.

In addition, it recently entered into an agreement to acquire European-based defence and technology company MARSS. Once approved, the acquisition will add further weight to its remote weapon systems, with advanced command and control capability.

As global tensions rise and governments look to modernise defence capabilities, EOS is well-positioned to continue its strong growth trajectory. So it's no surprise that the share price is up over 700% in the last 12 months. Whether value remains for investors is yet to be seen. But with Bell Potter upgrading EPS last week, it's definitely one to watch.

The post Buy local: 3 Australian innovations to add to your watch list appeared first on The Motley Fool Australia.

A struggling company can easily be oversold, offering attractive entry points for savvy investors. 

Here are three ASX shares trading close to 52-week lows. 

Computershare Ltd (ASX: CPU)

Computershare closed yesterday at $34.03, while this is slightly ahead of its 52-week low, it is still 20% below its share price last February. 

It is an Australian financial administration company offering global services in corporate trusts, stock transfers, and employee share plans.

On a consumer level, you might be familiar with Computershare's online portal to manage investments such as shares, dividends, and shareholder communications.

The decline in share price likely reflects broader investing headwinds.

However, after a 20% decline, it may be sitting at a relative discount considering its steady execution of FY26 guidance.

While this isn't a stock likely to explode overnight, analysts have an average price target just under $37. 

This indicates an upside of more than 8.6% from current levels. 

Audinate Group Ltd (ASX: AD8)

Audinate Group was one of the many ASX technology shares that endured a tough 2025.

In fact, the Information Technology (ASX: XIJ) index fell more than 20%. 

It was an even worse performance from Audinate Group, which is down 60% from its 52 week highs last February. 

It is an Australian technology company that develops and sells digital audio-visual (AV) networking solutions, primarily through its Dante platform, which is widely used in professional audio and AV systems around the world

Investor sentiment soured on these ASX shares after weaker-than-expected financial performance, lowered growth prospects, and cautious outlooks from analysts. 

However after falling significantly, it could be a buy-low target. 

It now sits below estimates from analysts. 

TradingView has an average price target of $7.54. 

This indicates 70% upside from yesterday's closing price of $4.14. 

Premier Investments Ltd (ASX: PMV)

Premier Investments is an Australian company that owns and operates specialty retail brands, consumer products, and wholesale businesses.

Retail fashion brands that exist under its umbrella include Peter Alexander and Smiggle.

Its share price has fallen more than 46% over the last year as it now sits at a 52 week low. 

Recently, Macquarie reduced its 12-month price target on Premier Investments from $20.80 to $16.20 per share.

This came after a trading update revealed weaker discretionary spending in 1H FY26.

Even taking into account the reduced price target, this price target suggests 20.71% upside.

The post Bargain hunting – these ASX shares are trading near 52-week lows appeared first on The Motley Fool Australia.

Both businesses that I'm covering in this article have international growth intentions and have already grown significantly.

Recent trading has been difficult for both businesses as they worked through challenging conditions in FY25. But, the outlook is now promising, which is why the below ASX shares look like top buys.

Harvey Norman Holdings Ltd (ASX: HVN)

UBS describes Harvey Norman as an integrated franchising, retail and property company. While Harvey Norman is the main banner in Australia, it also has Domayne and Joyce Mayne. It has company-operated retail operations in New Zealand, Singapore, Malaysia, Ireland, Northern Ireland, Slovenia and Croatia.

The Harvey Norman stores sell products like furniture, appliances, computers, phones, flooring and bed products.

The broker rates Harvey Norman shares as a buy, with a price target of $7.75. A price target is where experts believe the share price will be in a year. Therefore, the current UBS price target on Harvey Norman shares implies a possible rise of 4%, plus a forecast dividend yield of around 4%.

UBS was impressed by the FY25 result thanks to the core franchising operations, with a strong July 2025 trading update as well as greater confidence in the outlook. This could allow Harvey Norman to trade on a higher price/earnings (P/E) ratio than history.

The broker said the ASX share's July 2025 like-for-like sales growth showed strength in Australian franchisees (with 6.4% growth) and retail growth in New Zealand (with 7.2% growth).

UBS pointed to a number of positives including real wage growth and falling interest rates and inflation for consumers. The broker also said that items like computers, electronics and furniture saw significant sales during the COVID-19 period, but those categories are now entering a multi-year replacement cycle.

Added to that, the broker is expecting Harvey Norman's profit before tax (PBT) margin to rise because of operating leverage. Sales growth could lead to "outsized PBT growth" as sales improve.

Finally, UBS said Harvey Norman is prudently managing costs, which should "amplify the operating leverage tailwind."

The Harvey Norman share price is valued at 19x FY26's estimated earnings.

Audinate Group Ltd (ASX: AD8)

UBS describes Audinate as a dominant provider of professional audio digital networking technologies globally. Its core technology is Dante, which enables digital audio devices to create a network. Its ecosystem is reportedly 11 times larger than peers. The company also has digital video networking solutions and offers additional audio networking software add-ons.

The broker noted that the ASX share's FY25 was challenging, with the revenue and gross profit not 'business as usual'. It was cycling an "over inflated" FY24, there was excess destocking by original equipment manufacturers (OEMs), there was low business confidence (in FY25) and there has been tariff uncertainty.

UBS thinks its estimates for the company's video offering are conservative, yet it believes the market isn't even pricing this in for the long-term.

The broker said about the ASX share:

Longer term, we remain firm believers on audio – every industry contact we've spoken with says Dante is the digital audio "holy grail" and the structural shift from analog to digital will continue. At 10% penetration of the audio opp. – we see plenty of runway. Core video is early days and Iris has no rev, but combining interoperability with control functionality creates an important differentiator to the video offering.

…We recognise that FY26 still has some challenges to work through – but we look to the long term. The current price is factoring in very little to video, assumes minimal recovery to growth vs the market and assumes FY25 is a proper base year (we think it could prove to be a depressed year).

UBS currently has a buy rating on Audinate shares, with a price target of $7.10. That implies a possible rise of 50% over the next year from where the ASX share is today.

The post Brokers rate these 2 top ASX shares as buys in September appeared first on The Motley Fool Australia.

Audinate provides the Dante IP networking solution, which claims to be the worldwide leader and is used extensively in the professional live sound, commercial installation, broadcast, public address and recording industries. Dante technology powers products from hundreds of leading audio and video partners around the world.

The company reported that revenue declined 33% to US$40 million, gross profit dropped 26% to US$44.5 million, underlying operating profit fell A$19.6 million to A$0.7 million, net profit worsened by A$16.6 million to a loss of A$6.4 million and cash flow sank 70% to A$7.5 million.

Audinate revealed it expects its FY26 gross profit to grow by between 13% to 15% year-over-year in US dollar terms. However, FY26 operating costs are expected to soar 25% year-over-year.

We're going to take a look at what Macquarie thinks of the report.

What did analysts make of the ASX tech share's result?

The broker said that medium-term growth has been revised for the company. Macquarie wrote:

After over-earning through Covid, AD8 is rebasing sales and volume expectations to 2-3x the 5Y fwd market growth CAGR. This implies a 7.7% reduction in the 5Y forward gross profit CAGR at the midpoint to 9.75%.

In other words, the company's revenue growth is not expected to be as high in the next few years.

Macquarie acknowledged that the network management and control are attractive market segments, with the business benefiting from the Iris acquisition. But, competitive intensity is higher than in its core audio business.

Key competitor NDI is a first mover in the video segment and has 52% of video networking products, while Dante has just a 2% market share. Macquarie said that OpenAV Cloud includes of a number of Audinate's key customers as signatories, signalling potential headwinds.

Macquarie said there is "limited evidence of video sales growth since the Silex acquisition in 2022."

On the operating expenditure growth to support new product rollouts, it's unclear how much of this reinvestment is for growth or maintenance.

After seeing the result, Macquarie reduced its earnings per share (EPS) forecasts for FY26, FY27, FY28, FY29 by 830%, 567%, 264% and 180%, respectively. In other words, it's not expecting losses for those years. This is because of lower medium-term growth prospects, elevated reinvestment to support Iris and limited upside for Iris (with execution risk and how early-stage it is).

Is the Audinate share price a buy?

Macquarie currently has an underperform rating on the ASX tech share, with a price target of $4.30. That implies where it thinks the Audinate share price will be in 12 months from the time of the investment call.

The broker is implying the Audinate share price could fall 17.5% from where it is. Macquarie summarised its thoughts on the business with the following:            

After two downgrades and with investor expectations still rebasing, there is limited evidence of a near-term recovery. With the majority of revenues non-recurring, at A$293m EV, burning cash and with little evidence of meaningful financial delivery in Video to date, maintain Underperform.

The post After falling more than 20% after reporting, is this ASX tech share a buy the dip opportunity according to Macquarie? appeared first on The Motley Fool Australia.

The AV company says 2025 was a transitional year, but it still achieved market guidance and included revenue growth in the second half.

The new financial year looks brighter now that inventory rebalancing is in the rear-view mirror.

Audinate plans to use its new acquisition, US-based leader in AI-powered cloud-first camera control company Iris Studios, and has several new product initiatives planned.

The company still expanded gross margins, maintained a strong cash position and launched multiple new software and cloud products. It also managed to chalk up double-digit growth embedded in software revenue.

Audinate believes it's ready for the industry's shift from proprietary hardware to IP-based, software-driven solutions.

It enters the new financial year with its sights set on execution, growth and long-term value creation.

Mixed results prompt dip

Audinate pulled in revenue of US$40 million, down on the previous year (US$60 million), with a gross profit of US$32.9 million (US$44.5 million for 2024). 

Also down was underlying EBITDA, which was A$0.7 million, compared to A$20.3 million the year before. 

Positive operating cash flow was also weakened year-on-year, down from A$25.4 million to A$7.5 million. 

On a positive note, gross margins were up, 82.1%, up from 74.2% last year, due to a product mix shift toward higher-margin software solutions.

Software growth occurred, with embedded software revenue rising 15%, underpinned by sustained demand for Dante solutions.

The company had some design wins during the year. It secured 129 new designs, up 12% from 2024, which gives it a solid pipeline for future revenue growth.

New product initiatives

As the name might suggest, Audinate continued to lead in audio.

Dante audio adoption stayed robust during the financial year. Over the year, there were 14 times more Dante-enabled products on the market than the nearest competitor, up from the still-strong 12-fold increase in 2024.

During the year, Audinate snapped up Iris Studio Inc., which will bolster its video and control capabilities and accelerate strategy execution. 

The company grew its AVIO adaptor range with the first 'Dante AVIOs for Installation' product tailored for the professional AV market.

The year saw the launch of Dante Virtual Sound Card Pro (DVS Pro) with a new subscription model to support software-based workflows.

A major user interface upgrade to Dante Controller also enhanced usability and efficiency. 

Dante Director, Audinate's first SaaS AV system management product, and Dante Device Link, a unified audio, video and control platform strategy, also launched commercially during the year. 

All of these initiatives could see Audinate shares rebound in the near future.

"In a year of transition, we shipped one million Dante devices, established our first cloud-based management platform and completed the strategic acquisition of Iris," Audinate co-founder and CEO Aidan Williams said.

"We have an exciting combination of talent, products and commercial opportunity that will advance our long-term vision to provide the dominant interoperable audio, video and control platform for the AV industry." 

The post What's on the horizon for Audinate shares? appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Audinate Group Ltd (ASX: AD8)

The Audinate share price is down 22% to $4.76. Investors have been selling this audio-visual networking solution provider's shares following the release of another disappointing full year result. Audinate posted a 33% decline in revenue to US$40 million and a 26% decline in gross profit to US$32.9 million. This ultimately led to the company's net profit swinging to a loss of A$6.4 million for the year. One positive is that management is expecting an improved performance in FY 2026 and is guiding to gross profit growth of 13% to 15%.

DigiCo Infrastructure REIT (ASX: DGT)

The DigiCo Infrastructure REIT share price is down 11% to $2.86. This follows the release of the data centre operator's full year results. DigiCo reported FY 2025 annualised underlying EBITDA of $99 million, which is ahead of its prospectus guidance. However, its guidance for FY 2026 was somewhat uncertain and may have spooked investors. It stated: "FY26 EBITDA growth will ultimately be dependent on the timing of new contract commencements, renewals and remixing of existing capacity in the Australian business."

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 3.5% to $3.86. This follows news that the struggling ecommerce company is writing down the goodwill of its Mighty Ape acquisition. It advised that "the decision to write down the goodwill reflects a recognition of the poorer-than-expected trading performance and longer than anticipated recovery from the platform technology challenges following the October 2024 website upgrade. This was compounded by the recent challenging retail environment in New Zealand marked by weak consumer confidence." The value of goodwill associated with the disastrous Mighty Ape acquisition was $46.3 million at 30 June 2024.

New Hope Corporation Ltd (ASX: NHC)

The New Hope share price is down 5.5% to $4.29. Investors have been selling this coal miner's shares following the release of its full year update. New Hope revealed an 18.1% increase in group saleable coal production to 10.7Mt, but an 11% decline in its average realised sales price. This ultimately led to it reporting underlying EBITDA of $765.8 million for FY 2025, which is down from $860 million a year earlier.

The post Why Audinate, DigiCo, Kogan, and New Hope shares are tumbling today appeared first on The Motley Fool Australia.

Meanwhile, the S&P/ASX All Ordinaries Index (ASX: XAO) is 0.1% lower and has lifted 10% over the past year.

ASX small-caps have a market capitalisation ranging from a few hundred million dollars to $2 billion.

As the market anticipates another interest rate cut today, it's worth remembering that falling rates are a tailwind for ASX small-cap shares.

This is because small caps are usually young companies that are funding their early growth with debt. Many aren't making a profit yet.

So, every rate cut improves their balance sheets significantly.

Young companies are particularly prevalent in the ASX technology sector.

In this article, we reveal three ASX small-cap tech shares that are impressing analysts.

Experts reveal ratings on 3 ASX small-cap shares

Aussie Broadband Ltd (ASX: ABB)

Aussie Broadband is the fifth-largest broadband services provider in Australia.

This ASX small-cap tech share has a market capitalisation of $1.11 billion.

Tony Paterno from Ord Minnett has a buy rating on Aussie Broadband shares.

Paterno explains his rating (courtesy of The Bull):

Aussie Broadband's investor day confirmed near-term earnings momentum has remained positive, and expectations for longer term earnings per share growth above 20 per cent per annum are realistic.

The company added more than 24,000 net connections in the third quarter of fiscal year 2025, up 29 per cent on the prior corresponding period.

The company is well positioned to grow residential market share as the NBN upgrades customer speeds.

Evidence of sustainable top line growth is a major positive catalyst.

The Aussie Broadband share price is steady at $3.88 at the time of writing. The stock is up 10.7% over the past 12 months.

SiteMinder Ltd (ASX: SDR)

SiteMinder is the world's largest open hotel commerce platform.

This ASX small-cap tech share has a market cap of $1.3 billion.

Toby Grimm of Baker Young has a buy rating on Siteminder shares.

Grimm says:

This accommodation services provider has continued to retain customers and deliver revenue growth, highlighting the value of its software products through the macroeconomic cycle.

Fears of a cyclical downturn have seen SDR shares fall from $6.37 on February 25 to trade at $4.435 on July 3.

The stock has arguably been subjected to end of financial year tax loss selling, creating an attractive buying opportunity.

Siteminder shares are down 1.7% to $4.56 today and down 13% over the past 12 months.

Audinate Group Ltd (ASX: AD8)

Audinate is an Australian technology company specialising in professional audio-visual (AV) networking solutions.

This ASX small-cap tech share has a market cap of $543.5 million. It's lost almost 60% of its value over the past 12 months.

Peter Day of Sequoia Wealth Management has placed a hold rating on Audinate shares.

Day says:

AD8 recently announced it had entered into a binding agreement to acquire Iris Studio Inc for a total consideration of up to $US28 million.

In our view, this acquisition broadens AD8's video offering, while accelerating the ability to create an interoperable AV platform, which are two key areas of potential growth.

The Audinate share price is down 0.46% to $6.49 on Tuesday.

The post Tiny tech: 3 ASX small-cap shares with new ratings appeared first on The Motley Fool Australia.

At the time of writing, the ASX 300 tech stock is up 1% to $7.18.

This follows news that the audio-visual networking specialist is making a key strategic acquisition aimed at expanding its reach in the growing video segment.

ASX 300 tech stock higher on big news

According to the release, Audinate has entered into a binding agreement to acquire US-based Iris Studio Inc.

It is a leading developer of AI-powered, cloud-based camera control technology.

According to the release, the deal will see Audinate pay US$20 million upfront, with a further US$8 million payable in a combination of cash and shares over three years. This is contingent on performance milestones and ongoing employment.

The transaction is expected to close in mid-July 2025, pending customary closing conditions. Post completion, Audinate will have a strong balance sheet with net cash of A$78 million.

Why this acquisition?

Audinate is best known for its market-leading Dante networking technology, which enables professional-grade audio to be distributed over standard IP networks. With this acquisition, the ASX 300 tech stock believes it strengthens its video platform capabilities and accelerates its vision for interoperable control and management of audio-visual (AV) devices.

Iris offers a control first video production SaaS platform which is initially targeting remote production use cases. However, management notes that there is significant longer-term opportunities in cloud-based management and control.

The Iris platform is offered as a software subscription and is in the early stages of market launch. Audinate will continue to invest in the platform to support market development and scale-up initiatives.

The ASX 300 tech stock's co-founder and CEO, Aidan Williams, believes the addition of Iris will significantly enhance the company's platform strategy. He said:

The addition of Iris to Dante's ecosystem is a major step forward for the Dante platform. Combining Iris's broad applicability and cutting-edge remote production capabilities with powerful cloud-based management software like Dante Director will provide significant value to AV professionals managing the millions of Dante-enabled devices in the field today.

Commenting on the deal, Iris' co-founder and CEO, Noah Johnson, said:

At Iris, we set out to rethink AV device control – intelligent, intuitive and accessible from anywhere. Partnering with Audinate gives us the scale, reach and deep AV expertise to accelerate our roadmap and bring our vision to the next level.

The post Guess which ASX 300 tech stock is making a 'cutting-edge' US$28m acquisition appeared first on The Motley Fool Australia.

Technology can refer to a broad range of areas in society, but I think what most tech companies have in common is that they often have very strong gross profit margins. This means they can demonstrate strong operating leverage, where the various profit lines can grow faster than revenue as the business grows.

Some ASX tech shares are trading at high valuations following a significant rally over the last couple of months. But, there are a few names that still appear to have very appealing valuations to me.

Audinate Group Ltd (ASX: AD8)

This business claims to be one of the leaders in the AV (audio visual) industry. Audinate says its Dante IP networking solution is the worldwide leader, and it's used extensively in the professional live sound, commercial installation, broadcast, public address, and recording industries.

Dante's appeal is that it replaces traditional analogue cables by transmitting synchronised AV signals across large distances to multiple locations at once using just an ethernet cable. Dante technology powers products available from hundreds of leading audio and video partners around the world.

The ASX tech share has suffered from customer inventory overstocking, which is expected to affect the business at least until the end of FY25. I think that's why the Audinate share price is down by more than 50% in the past 12 months.

But there are some positive signs. In the FY25 first half, software revenue rose by 13% to $8.3 million. The strength of this helped the company's gross profit margin improve to 82.2%, up from 71.5% in the FY24 first half.

The company's FY25 second quarter gross profit exceeded the FY25 first quarter. The ASX tech share expects a return to normal order patterns and growth by FY26. If that happens, I think market confidence could improve regarding the business.

Siteminder Ltd (ASX: SDR)

This ASX tech share provides Siteminder software, which claims to be the world's leading hotel distribution and revenue platform, and Little Hotelier, a hotel management software for small accommodation providers. Impressively, it helps generate 125 million reservations worth over A$80 billion in revenue annually for hotel customers.

The business continues to grow at a rapid speed, though the market is worried that the global economy uncertainty could slow growth. It's down more than 25% since February 2025. Even so, the FY25 half-year result saw the company's annualised recurring revenue (ARR) surge 18.4% to $216.2 million.

Due to the software nature of the business, its margins are increasing. In HY25, the underlying gross margin increased by 118 basis points to 1.18% compared to 66.9% in the second half of FY24. This helped the underlying operating profit (EBITDA) increase by $6.5 million, and underlying free cash flow rose by $8.1 million.

The business is targeting 30% organic annual revenue growth in the medium term, which I think would make Siteminder a very appealing ASX tech share. It's currently trying to increase its client base with larger hotels.

The post Here's why I think these ASX tech shares are buys in June appeared first on The Motley Fool Australia.

The ASX share market and global stock market have come roaring back after the US tariff volatility. But some businesses are still trading far below their 52-week lows. I think they could be opportunities because the longer term looks compelling after the decline.

Something isn't necessarily a buy just because it has fallen, but I believe the two businesses below are compelling ASX shares.

Propel Funeral Partners Ltd (ASX: PFP)

Propel describes itself as the second-largest private provider of death care services in Australia and New Zealand. It currently operates from 202 locations, including 40 cremation facilities and nine cemeteries.

As the chart below shows, the Propel share price has dropped 23% since September 2024.

That decline has occurred despite the funeral provider reporting strong financial progress in its results.

In the first six months of FY25, the company reported revenue rising by 12% to $115.2 million. This was helped by an 8.6% rise in funeral volumes and 2.6% organic growth of Propel's average revenue per funeral to $6,727.

The operating net profit after tax (NPAT) increased by 21.1% to $12.2 million. I think this showed the strength of its operating leverage, where the business can deliver higher profit margins, enabling the bottom line to rise much faster than revenue. I think that's an important factor making it a compelling ASX share.

In January 2025, revenue rose by more than 10%, and the long-term outlook for growth looks promising.

Death volumes are expected to increase by an average of 2.8% per annum from 2025 to 2035 and then rise by an average of 2.4% per year between 2036 to 2045, which is an ultra-long-term tailwind.

Audinate Ltd (ASX: AD8)

Audinate is a business focused on AV (audio visual). Its Dante IP networking solution is the worldwide leader and is reportedly used extensively in the professional live sound, commercial installation, broadcast, public address, and recording industries.

The company's recent financial performance has supposedly been impacted by its manufacturing customers working through accumulated inventory balances, leading to a dampening in short-term demand for its hardware chips, cards and module (CCM) products.

As the chart below shows, the Audinate share price is down 57% in the last 12 months.

Audinate expects those trading conditions to persist in FY25, but it expects a return to more typical order patterns in FY26 as inventory levels normalise.

The company's software revenue is helping plug a bit of the gap. Growth has also been supported by existing customers transitioning from hardware CCM products to embedded software Dante solutions.

Pleasingly, the software revenue has a much higher gross profit margin. So, while the HY25 revenue fell 38% to US$18.9 million, the gross profit only declined 29% to US$15.5 million following a rise in the gross profit margin to 82.2% (up from 71.5%).

The business noted that the FY25 second quarter's gross profit exceeded the first quarter, with a moderate strengthening expected in the second half. A return to growth would be promising, in my view.

Assuming hardware sales do improve in FY26, the Audinate share price could be materially undervalued. Otherwise, the ongoing success of the software segment would still make this a compelling ASX share, though the recovery could take longer.

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The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Being able to buy exciting, quality companies at significantly cheaper prices is very appealing. Investing at lower valuations can make a big difference to the overall returns.

For example, if a business' share price was $10 and rose to $20 in five years, that'd be a strong return of 100% over five years.

If, in the first few months of that company's growth journey, it dropped 20% to $8 and someone invested at that point and it still reached $20, that'd be a rise of 150% from $8 to $20. In other words, it'd be an extra 50% return than buying at $10.

That's why sell-offs can be so appealing to buy great businesses. I'm not expecting the below two ASX 300 shares to double in five years, but I do believe they're now (very) underrated opportunities.

Brickworks Ltd (ASX: BKW)

The Brickworks share price is down 9% from 10 March 2025 and down 22% from 18 March 2024, as the chart below shows.

I'd suggest the 12-month decline has largely been triggered by weak building product demand in Australia and the US amid elevated interest rates. The company's outlook in the US has also been clouded by the growing tariff war between the US and Canada, Mexico, China, and the EU.

In my view, Brickworks' building product earnings are usually cyclical, so it's good to be opportunistic at weak points in the cycle.

The business has significant asset backing through its ownership of half of an industrial property trust, which is benefiting from additional warehouse completions and growing e-commerce demand. It also owns around a quarter of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which is delivering long-term dividend and capital growth for Brickworks.

I think this ASX 300 share is significantly undervalued and can handily beat the ASX 300 over the next three years.

Audinate Ltd (ASX: AD8)

The Audinate share price has fallen over 30% since 18 February 2025, and in the last year, it has declined 70%, as the chart below shows.

This audio-visual-focused company provides the Dante IP networking solution, which it claims to be the worldwide leader in. It is used extensively in the professional live sound, commercial installation, broadcast, public address, and recording industries. It replaces analogue cables with just an ethernet cable.

Audinate said that its FY25 first-half result was impacted by excess inventory in the original equipment manufacturer (OEM) channel, which saw operating profit (EBITDA) fall by $9 million to $1 million, with revenue dropping 38% to US$18.9 million.

However, there are some positives I'll point to besides the lower valuation. For starters, the business is expecting a return to more typical order patterns in FY26 as inventory levels normalise.

It also saw the gross profit margin improve by 10.7 percentage points to 82.2%, thanks to a product mix shift towards higher-margin software-based implementations.

Audinate believes its outlook remains strong, supported by an installed base of over 6 million Dante devices, which is growing by more than 1 million each year.

The ASX 300 share is aiming for broader Dante audio adoption with an increasing range of products. It wants to accelerate Dante video with a growing acceptance and integration of its video solutions. Finally, the company wants to establish a software ecosystem for AV professionals.

The post 2 ASX 300 shares I rate as great buys today appeared first on The Motley Fool Australia.

This latest update reveals that there will be no less than seven shares kicked out of the benchmark ASX 200 index later this month.

Let's now take a look at which shares are being removed and then what will be replacing them.

Saying goodbye to the ASX 200

There are seven ASX 200 shares that will be leaving the benchmark index when it rebalances on 24 March.

The first one is Audinate Group Ltd (ASX: AD8). Tough trading conditions have weighed heavily on this audio technology company's performance over the past 12 months. This has led to a 67% share price decline, cutting its market capitalisation to $625 million.

KFC restaurant operator Collins Foods Ltd (ASX: CKF) is another ASX 200 share getting the boot. Its shares are down 17% since this time last year, reducing its market capitalisation to $1 billion.

Charter Hall Social Infrastructure REIT (ASX: CQE) isn't trading too far away from a 52-week high. However, the social infrastructure focused property company's market capitalisation of just over $1 billion isn't enough to keep it in the benchmark index.

Coal miner Coronado Global Resources Inc (ASX: CRN) has sunk 60% over the past 12 months, pulling its market capitalisation down to $855 million.

Also being ejected from the ASX 200 are the shares of Johns Lyng Group Limited (ASX: JLG). This insurance building and restoration services company was sold off last month after disappointing with its half year results. Its shares are down 57% over the past 12 months, reducing its market capitalisation to $790 million.

Finally, travel and transport company Kelsian Group Ltd (ASX: KLS) and embattled casino operator Star Entertainment Group Ltd (ASX: SGR) complete the list after sinking approximately 47% and 80%, respectively, since this time last year.

The bad news for these ASX 200 shares is that selling pressure could now increase. That's because index funds that track the index will be forced to sell their shares. In addition, fund managers that have strict investment mandates may have to sell if they aren't permitted to invest outside the benchmark index.

Shares saying hello to the ASX shares

Replacing them in the ASX 200 are copper miner Capstone Copper Corp (ASX: CSC), data centre companies Digico Infrastructure REIT (ASX: DGT) and Macquarie Technology Group Ltd (ASX: MAQ), mining technology company Imdex Ltd (ASX: IMD), investigative analytics and intelligence software provider Nuix Ltd (ASX: NXL), gold miner Spartan Resources Ltd (ASX: SPR), and online furniture and homewares retailer Temple & Webster Group Ltd (ASX: TPW).

These companies could now experience an increase in demand for their shares as index funds buy in and they become available to fund managers with the aforementioned investment mandates.

The post 7 shares kicked out of the ASX 200 index (and 7 new additions) appeared first on The Motley Fool Australia.

"Over the February reporting season, it was not the companies that delivered quality results that have proven most interesting, but companies that were languishing due to a combination of factors such as cyclical weakness, interest rate pressures or specific stock overhangs," Jun Bei Liu, founder and lead portfolio manager at Ten Cap, said (courtesy of The Australian Financial Review).

Liu pointed to JB Hi-Fi Ltd (ASX: JBH) and Pinnacle Investment Management Group Ltd (ASX: PNI) as two companies that got sold off despite posting "outstanding" earnings results.

As for those ASX 200 stocks that investors rewarded despite weak results, she noted, "Meanwhile, companies reporting weaker results have seen sharp price gains."

Companies like fast food pizza retailer Domino's Pizza Enterprises Ltd (ASX: DMP) and media networking solutions provider Audinate Group Ltd (ASX: AD8).

Two ASX 200 stocks that rocketed on shaky results

On 7 February, Domino's released a trading update ahead of its official half-year results announcement, which was reported on 25 February.

Domino's shares surged on the day, despite the trading update revealing that first-half sales were down 2.9% year on year, with same-store sales were down 0.6%. In a move to slash costs, the company also said it plans to shutter 172 stores in Japan.

Commenting on the market's reaction to the news, Liu said:

Domino's Pizza Enterprises announced significant store closures, rising debt, and ongoing trading challenges. It continues to struggle with franchisee profitability, an essential element for organic growth.

Despite this, its share price jumped 20% on the day, seemingly on relief that the numbers weren't worse and that it would be a beneficiary of improving macro conditions.

Turning to Audinate Group, the ASX 200 stock reported its decidedly underwhelming half-year results on 17 February. A day that saw the Audinate share price surge 26.5% by market close.

Liu said the market response to Audinate's results was "a real head-scratcher".

"The company reported a year-on-year sales decline of over 50%, downgraded guidance, and continues to burn millions in cash," she said.

Liu added:

Analysts barely expect it to break even in the next 12 months, yet it still trades at a revenue multiple above nine times earnings – comparable to high-quality businesses such as Fisher & Paykel Healthcare Corp Ltd (ASX: FPH).

So, why are investors rewarding these ASX 200 tech stocks following such weak results?

According to Liu:

We are simply seeing the first signs that stocks previously off limits are now back in favour as confidence in an economic recovery, however shallow, and falling interest rates, however moderate, becomes the focal point.

The post These 2 ASX 200 stocks surged higher despite weak earnings results appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back today are listed below. Here's why they are rising:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 19% to $7.08. Investors have been buying the infant formula company's shares following the release of its half year results. A2 Milk delivered a result largely in line with expectations and announced its first ever dividend. That will see the company pay a fully franked dividend of 8.5 NZ cents per share. Looking ahead, management has upgraded both its revenue and EBITDA margin guidance. It now expects revenue growth of low to mid double-digit growth (from mid to high single-digit growth) with an EBITDA margin slightly up year on year (from being broadly in line).

Audinate Group Ltd (ASX: AD8)

The Audinate share price is up 31% to $9.92. This morning, this audio-visual media networking solution provider released its half year results. While the result was very poor on paper, investors appear to believe that the worst could be behind it now. Audinate reported a 38% decline in revenue and a 91% decline in EBITDA. This reflects the overstocking of inventory among original equipment manufacturers (OEMs). Management expects trading conditions to normalise in FY 2026.

BlueScope Steel Limited (ASX: BSL)

The BlueScope share price is up 11% to $24.75. This has been driven by the release of the steel producer's half year results. Although the company posted a sizeable profit decline for the half, it is guiding to a much better second half. BlueScope reported a 57% decline in underlying EBIT to $309 million for the first half but expects underlying EBIT to be in the range of $360 million to $430 million for the next six months. Management advised that this reflects an improvement in the spread outlook in the US, stronger domestic volumes in Australia, and the benefits from the group-wide cost and productivity program.

Chalice Mining Ltd (ASX: CHN)

The Chalice Mining share price is up 30% to $1.56. Investors have been buying the mineral exploration company's shares following the release of a promising update from the Gonneville project. Management advised that exceptional testwork results demonstrate that two saleable, smelter-grade flotation concentrates can be produced across the entire Gonneville sulphide resource. CEO, Alex Dorsch, said: "The ability to produce a saleable nickel concentrate across the grade spectrum of the entire Gonneville Resource is a major breakthrough and fundamentally simplifies the world-class Gonneville Project. This is the step change we have been hoping for over the last two years."

The post Why A2 Milk, Audinate, BlueScope, and Chalice Mining shares are rocketing today appeared first on The Motley Fool Australia.