Based on current prices and the projections from Morgans, these small-cap companies could rise roughly 60%. 

While ASX small caps come with increased volatility, there can also be increased upside.

Here are two that could be worth monitoring.

Eureka Group Holdings Ltd (ASX: EGH)

Eureka Group Holdings provides rental accommodation for seniors and disability pensioners in safe and well-managed environments.

Year to date, its share price has risen 10.4%.

The company recently released H1 FY26 results.

According to Morgans, the small cap's reaffirmed FY26 guidance will see EBITDA grow 20% to 25% (vs pcp) and underlying EPS grow 7.5% to 10%.

This is a result of a 5% to 7% same-store rent growth and full earnings contributions from the $80m of assets acquired since CY25. 

In EGH we see sector leading earnings growth, Government backed revenues, and attractive valuation (trading at NTA). The return outlook, relative to risk, remains attractive as the secure income stream and valuation discount mitigates some of the risks, whilst the modest market cap means acquisitions can materially improve earnings.

Based on this guidance, the broker maintained its buy recommendation and $0.85 price target.

Yesterday's closing price of $0.53 indicates a 60% upside. 

Betr Entertainment Ltd (ASX: BBT)

The company provides sports and race betting services in Australia. Its main product lines include sports, horse racing, greyhound racing, harness racing, and on-track wagering.

It is aiming to expand its services into the US market as more US states change their legislation to permit legal access to online wagering services.

In 2026, its stock price has risen by approximately 16.6%.

It also reported 1H FY26 results during February. 

Following the results, the team at Morgans said the interim result was impacted by an unusually unfavourable trading period for bookmakers, particularly across racing during the peak Spring Carnival. 

While 2Q26 margins were heavily affected by customer-friendly outcomes, trading has normalised since December, and the business enters 2H26 with improved operating leverage following the completion of its major brand and marketing investment phase. Notwithstanding recent earnings pressure, we believe the company's 2H26 and FY27 guidance is achievable, supported by normalising gross margins, improved promotional efficiency and a more disciplined cost base.

As a result, the broker reduced earnings forecasts across FY26 to 27F. 

It has maintained a buy recommendation and lowered its price target to $0.40. 

Despite lowering its target price, there remains approximately 63% upside based on yesterday's closing price of $0.245. 

The post Two exciting small caps with buy recommendations from Morgans appeared first on The Motley Fool Australia.

What did Betr report?

For the first half of FY26, Betr delivered headline turnover growth of 25%; however, the company reported a normalised EBITDA loss of $13.2 million for the half.

Management attributed the loss to two main factors: exceptionally customer-friendly racing and sports results during peak wagering periods, and front-weighted, one-off investment in brand relaunch, marketing, and technology.

Encouragingly, Betr said trading margins have returned to historical levels since December, with net win margins around 11% across December and January to date.

What else do investors need to know?

The first half was investment-heavy. Betr spent aggressively on brand marketing, premium sports advertising, and the rollout of Sky Racing, which management believes will drive improved operating leverage in the second half.

Customer metrics also improved, with active cash customers rising to more than 163,000, up 5.7% quarter on quarter, and turnover continuing to grow faster than the overall market.

At the end of December, Betr held $41 million in cash, with total available funding of approximately $42.4 million, providing an estimated 4.4 quarters of funding at current cash burn levels.

What's the outlook?

Betr reiterated its earnings guidance, targeting $5 million to $8 million in normalised EBITDA in H2 FY26, followed by $13 million to $19 million in FY27. Management said the major investment programs are now largely complete, allowing marketing intensity and costs to normalise while benefiting from higher scale and improved margins.

The company also recently announced an on-market share buyback of up to 10% of issued capital, signalling board confidence that the shares are trading below intrinsic value.

Foolish Takeaway

Today's share price reaction reflects disappointment with the first-half loss, despite the top-line growth. The second half will be critical in proving that the heavy upfront investment can translate into sustainable earnings.

Betr shares are down 30% over the last 12 months, trailing the S&P/ASX All Ordinaries Index (ASX: XAO).

The post ASX small cap Betr shares slide after H1 loss, confirms 10% share buyback appeared first on The Motley Fool Australia.

The digital wagering operator said in a statement to the ASX that it had experienced strong growth in turnover during the second half, up 24.5%, on an expanded customer base of 163,504 active customers.

Betr's quarterly turnover came in at $444.4 million, up from $357 million, while year to date revenue was up 25.2% to $807.4 million.

M&A still in the wings

The company also said it continued to assess opportunities in terms of merger and acquisition activity, "consistent with our longstanding stated ambition''.

Betr said in its statement to the ASX:

We remain in active discussions with a number of existing and new industry participants regarding consolidation and partnership opportunities and will ensure appropriate disclosure should these discussions progress, in accordance with our continuous disclosure obligations.

Added to this, the company said it would undertake of buyback of up to 10% of its shares on issue.

The company said:

It is the view of the board of betr that the company's shares are trading below their intrinsic value, and thus the proposed buy-back represents an efficient way to reduce the number of shares on issue and enhance long term shareholder returns. Importantly, allocation of the Company's funds towards the Proposed Buyback will not impact the Company's capacity to execute on its M&A strategy. The final size and timing of the Proposed Buy-Back will depend on various factors, including market conditions, Betr's prevailing share price, future capital requirements, and any future unforeseen developments or circumstances.

The company said there was no guarantee that the buyback's 10% upper limit would be fully utilised.

Betr last year sought to take over fellow gambling company PointsBet Holdings Ltd (ASX: PBH), however was unsuccessful.

Set up to succeed

Chair Matthew Tripp said during the company's annual general meeting in November last year that Betr was "in its strongest position to date" with record turnover, a refreshed next-generation wagering brand and a management team which was able to "move fast and execute with discipline and focus".

Mr Tripp said the company was, "very strong in our core wagering business, we have a well-capitalised balance sheet, and there is strong shareholder support for further strategic options''.

Betr shares were 11.1% higher on the buyback news on Wednesday morning, changing hands for 25 cents.

The post Buyback news has this ASX All Ords gaming stock looking like a sure bet appeared first on The Motley Fool Australia.

In this article, we reveal analysts' latest opinions on ASX gaming stocks, including sector leader Aristocrat Leisure Ltd (ASX: ALL).

Let's take a look.

ASX gaming stocks: Buy, hold, or sell?

Let's start with the ASX gaming sector leaders.

Aristocrat Leisure Ltd (ASX: ALL)

This Australian poker machine and digital games developer is the largest ASX gaming stock with a market capitalisation of $36 billion.

The Aristocrat share price closed at $58.06 on Tuesday, down 0.6%.

Last month, Aristocrat revealed an 11% increase in revenue to $6,297 million for FY25.

Morgans responded by raising its rating from accumulate to buy and cutting its 12-month price target from $77 to $73.

The broker commented:

Headline numbers were broadly in line with both our and market expectations, though a few soft spots emerged beneath the surface.

Encouragingly, management expects the business to return to its normalised growth range moving forward.

UBS reiterated its buy rating following Aristocrat's results, with a price target of $72.70.

Light & Wonder Inc. CDI (ASX: LNW)

Light & Wonder is a US company and the second-largest ASX gaming stock with a market cap of $12 billion.

The Light & Wonder share price finished the session at $153.27, up 0.3% yesterday.

Morgans has a buy rating on Light & Wonder shares with a price target of $175 following the company's 3Q FY25 results.

The broker said:

LNW delivered record margin expansion across all three segments, with iGaming operating leverage the standout performer, while land-based margins surprised on favourable product mix as Grover scales and premium installed base momentum continues.

UBS reiterated its buy rating on this ASX gaming stock with a much more ambitious price target of $206.

If you prefer small-caps…

Jumbo Interactive Ltd (ASX: JIN)

Australian lottery and online gaming services provider Jumbo Interactive has a market cap of $675 million.

Jumbo Interactive shares closed at $10.76 on Tuesday, up 1%.

Morgans noted substantial M&A activity in October as part of the company's pivot from the business-to-business (b2b)/software-as-a-service (SaaS) segment to the higher-growth business-to-consumer (b2c) market.

Jumbo acquired the UK's Dream Car Giveaways, and bought its first US competition, the Dream Giveaway, in October.

The broker maintained its buy recommendation on Jumbo Interactive shares and lifted its price target from $15.90 to $16.60.

Morgans said:

We view this as disciplined capital allocation: Acquiring proven profitable assets at reasonable multiples with clear operational improvement pathways.

The two B2C acquisitions combined add a base line A$24m in pro-forma EBITDA.

Jarden reiterated its buy rating with a price target of $13.40 to $13.70 on the ASX gaming stock.

Morgan Stanley also has a buy rating but is more optimistic on share price growth with a $16.80 target.

betr Entertainment Ltd (ASX: BBT)

Morgans reckons sports and racing betting group betr Entertainment is a great buy.

The ASX gaming stock touched a 52-week low of 21 cents on Friday, down 25% over the past year.

Yesterday, Betr shares closed at 22 cents, up 4.8%.

Morgans maintained a buy rating on betr shares after the company reported a 27% lift in turnover for 1Q FY26.

The broker said:

Turnover, gross win, and net win margins all exceeded forecasts, supported by improved customer engagement and product mix.

We take encouragement that the recent lift in brand and product investment is now translating into operating momentum.

The balance sheet remains in a strong position, providing flexibility to pursue both organic and inorganic growth opportunities.

The broker has a price target of 43 cents on the ASX gaming stock, suggesting a potential doubling of the share price over the next year.

Betr Entertainment has a market cap of $218 million.

The post ASX gaming stocks: Should you try your luck? appeared first on The Motley Fool Australia.

Experts have called out two ASX All Ords shares that they think are great buys with substantial potential upside ahead.

Let's take a look.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price tumbled to a 52-week low of $17.54 on Friday.

The ASX All Ords financial share has fallen 24% over the past 12 months.

UBS reiterated its buy rating on Suncorp shares last week despite reducing its forecast earnings for the insurer.

The broker made changes to its forecast due to a sharp increase in natural disaster claims in Australia and New Zealand.

As reported on sharecafe, UBS expects that Suncorp will exceed its FY26 catastrophe budget by $580 million.

This has led to a 31% reduction in the broker's forecast FY26 earnings per share (EPS) to 88 cents.

UBS has also reduced its EPS forecast for FY27 by 1% to $1.27 per share.

Potential mitigations may include continued increases in home and car insurance premiums during 2H FY26 and into 1H FY27.

The broker reduced its share price target from $23.15 to $22 following its earnings forecast downgrade.

The lower price target still implies a healthy potential upside of 25% over the next 12 months.

betr Entertainment Ltd (ASX: BBT)

The betr Entertainment share price hit a new 52-week low of 21 cents on Friday, down 25% over the past year.

Morgans maintained a buy rating on this ASX All Ords consumer discretionary share after its 1Q FY26 update.

The sports and racing betting group reported $363 million in turnover for the first quarter, up 27% on the prior corresponding period.

The broker said:

BETR Entertainment (BBT) reported a solid first quarter, delivering results modestly ahead of expectations across key metrics despite unfavourable sporting outcomes in September.

Turnover, gross win, and net win margins all exceeded forecasts, supported by improved customer engagement and product mix.

We take encouragement that the recent lift in brand and product investment is now translating into operating momentum.

The balance sheet remains in a strong position, providing flexibility to pursue both organic and inorganic growth opportunities.

At betr's annual general meeting last week, executive chair Matthew Tripp said:

The Company enters FY26 in its strongest position to date, with the foundations in place to support disciplined, sustainable growth…

Our key trading metrics confirm the new scale of the business with record levels of turnover and sustained growth more than one year on since the BlueBet/betr migration.

Morgans has a price target of 43 cents on betr Entertainment, implying the ASX All Ords share could double over the next year.

The post Experts say buy: 2 ASX All Ords shares at 52-week lows appeared first on The Motley Fool Australia.

But which small cap ASX shares could be buys? Let's take a look at three that the team at Morgans is bullish on this month. They are as follows:

Airtasker Ltd (ASX: ART)

This small jobs marketplace provider could be a small cap ASX share to buy according to Morgans.

It was pleased with its performance in FY 2025 and believes that it is well-placed for further growth. Especially given the strong momentum it is experiencing in overseas markets. It said:

Airtasker's (ART) FY25 result was solid overall in our view, having achieved group revenue growth of A$52.6m (+13% on pcp), establishing strong momentum in its offshore marketplaces and achieving its FY25 guidance of being free cash flow positive for the full year.

We make only minor adjustments to our topline estimates across the forecast period (~-1%), however we still assume a 3 year ~15% revenue CAGR. Our DCF/multiples derived price target is unchanged at A$0.55. Buy maintained.

betr Entertainment Ltd (ASX: BBT)

This small cap betting company could be one to buy according to the broker.

It was pleased with its transformative year in FY 2025, which saw turnover rocket and its first profit.

In response, Morgans has boosted its estimates and is expecting another profit in FY 2026. It said:

BETR Entertainment (BBT) delivered a transformative FY25, marking its first full year of profitability underpinned by strong organic growth and seamless integration of acquisitions. Turnover rose 140% yoy to $1.42bn, with Gross Win up 147% to $196.2m and Net Win up 133% to $147.8m. Net Win margins held firm at 10.4% despite the onboarding of lower-margin customers, supported by structural margin gains from consolidating both businesses on the BBT platform.

Normalised EBITDA was $7.2m, a sharp rebound from $0.2m in FY24 and in line with expectations. With the release of results, we lift our underlying EBITDA and NPAT forecasts to $11.2m and $8.8m respectively in FY26. We retain our Buy recommendation, with our 12-month price target increased to $0.43 (from $0.42).

Clearview Wealth Ltd (ASX: CVW)

Finally, this life insurance company has been named as a small cap ASX share to buy by Morgans.

While its profits fell in FY 2025, it was largely in line with what the broker was expecting.

As a result, it continues to see plenty of value on offer with its shares at current levels. It explains:

CVW's FY25 group Underlying NPAT of A$32.3m (-8% on the pcp) was broadly in line with MorgansE (A$31.7m). Overall we saw this as a good result. CVW's recovery from the 1Q25 claims spike continued in 2H25 and FY26 NPAT guidance (at the mid-point) implies ~+40% growth on the pcp. We lower our CVW FY26F/FY27F reported EPS by -1%/-2% driven by slightly more conservative earnings and buyback assumptions. Our earnings changes are offset by a valuation roll-forward, with our price target largely unaltered at A$0.69 (previously A$0.68). With significant upside existing to our current price target (~+40%), we maintain our BUY recommendation.

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

To narrow things down, let's take a look at three that Morgans has just named as buys. They are as follows:

betr Entertainment Ltd (ASX: BBT)

Morgans remains bullish on this sports betting company and sees it as an ASX share to buy.

It has put a buy rating and 42 cents price target on its shares. It explains:

We have updated our model to incorporate BETR Entertainment's (BBT) sizeable minority stake in PointsBet Holdings (PBH) into valuation. This adjustment improves transparency around how the PBH position flows through to equity value. No changes to operating assumptions for the core business are made as part of this event. Our target price increases to $0.42 (from $0.38). We retain a Buy recommendation. BBT is scheduled to release its FY25 result on 28 August.

DigiCo Infrastructure REIT (ASX: DGT)

This data centre operator could be an ASX share to buy according to Morgans.

It has put a buy rating and $4.85 price target on its shares, which is notably higher than its current share price of $2.76.

While disappointed with its FY 2025 results and guidance for the year ahead, the broker remains positive and sees potential for a material lease transaction to unlock value. It explains:

DGT's FY25A result fell short of investors' expectations, providing little in the way of quantitative earnings guidance for FY26, as EBITDA growth remains dependent on the timing of new contract commencements, renewals and remixing of existing capacity. The company does however expect to add an additional 6MW of capacity at SYD1 by Jun-26, which we estimate could see EBITDA increase >20%, once billing.

Investors are demanding tangible evidence of leasing progression, whilst management have been, until now, largely hamstrung by approvals and construction timings. Whilst we appreciate the frustration, we remain of the opinion the asset can lease-up, with a material lease transaction the catalyst to unlock value. On this basis, we retain our BUY rating at $4.85/sh price target.

GemLife Communities Group (ASX: GLF)

A third ASX share that gets the thumbs up from Morgans is GemLife. It is a provider of resort style living for homeowners aged 50 and over.

The broker has initiated coverage on its shares with a buy rating and $5.25 price target.

Morgans believes that the company is well-placed to benefit from growing demand from the downsizer market and insufficient future supply from land lease community (LLC) operators. It said:

With growing demand from the aging 50+ housing downsizer market and insufficient future supply from Land Lease Community (LLC) operators, we believe GLF is positioned to grow earnings as it builds out an extensive portfolio of 9,836 sites across the eastern seaboard. Whilst GLF trades at a price-to-earnings multiple (FY26) discount to its two nearest peers (INA and LIC), we believe GLF can establish itself at the ASX's premium single focus LLC operator.

GLF's free cash flow positive model and capacity to fund growth ambitions from retained earnings, should see the business grow faster than peers, without needing to seek additional capital. As a result, we initiate coverage with a BUY recommendation and a 12-month target price of A$5.25/sh, based on a blended average of PER, SOTP and DCF.

The post Morgans says these top ASX shares are buys appeared first on The Motley Fool Australia.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

betr Entertainment Ltd (ASX: BBT)

According to a note out of Morgans, its analysts have retained their buy rating on this sports betting company's shares with a reduced price target of 38 cents. Morgans was pleased with the company's performance during the fourth quarter. In fact, it notes that Betr outperformed its expectations for both turnover and gross win. In addition, it was pleased to see that Betr's net win margin remained above 10% despite integrating the lower margin TopSport customer base. And with product enhancements underway, Morgans see scope for increased scale and incremental margin expansion heading into the higher-quality racing and sports finals season. The Betr share price is trading at 31 cents on Monday.

Electro Optic Systems Holdings Ltd (ASX: EOS)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this defence and space company's shares with an improved price target of $3.75. Bell Potter was pleased with its second quarter update, highlighting that operating cash flow was particularly strong following the finalisation of a major contract. Looking ahead, the broker anticipates material contract awards in the second half of 2025. This includes the potential award of the HELW contract, which it thinks would be important for EOS. This is not just in terms of value but strategic significance. In light of this, the broker has boosted the multiple it uses in its EV/EBITDA valuation to 30x to reflect the significance of the HELW contract as key a driver of long-term growth. The EOS share price is fetching $2.94 at the time of writing.

ResMed Inc. (ASX: RMD)

Analysts at Citi have retained their buy rating on this sleep disorder treatment company's shares with an improved price target of $49.00. According to the note, ResMed delivered a full year result a touch ahead of expectations in FY 2025. This was driven by a combination of stronger than expected revenue and gross margins. And with management guiding to higher margins in FY 2026, the broker is feeling about its outlook over the next 12 months and suspects that it could outperform the market's expectations. The ResMed share price is trading at $42.98 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

Here's why the broker is feeling positive on these names:

Airtasker Ltd (ASX: ART)

This small jobs platform provider could be an ASX share to buy according to the broker.

It was impressed with its performance in the fourth quarter and its achievement of positive free cash flow. It commented:

Airtasker's (ART) 4Q25 update was highlighted by strong momentum in both its core domestic platform and the newer marketplaces (UK/US). Indeed, the business achieved ~21% revenue growth in the quarter (+13% for the full year), whilst also meeting its guidance of being FCF positive for FY25.

The UK marketplace achieved TTM GMV of A$15m (~+75% on pcp), a key call-out of the update. We update our forecasts to factor in the recent trading update and post a ~6% reduction in our topline estimates for FY26/27 still assume a robust ~15% 3-year revenue CAGR. Our price target is unchanged given a valuation roll-forward and improved longer-term monetisation rate assumptions.

Morgans has a buy rating and 55 cents price target on its shares.

betr Entertainment Ltd (ASX: BBT)

Another small cap that gets the thumbs up from Morgans is sports betting company Betr.

Morgans highlights that the ASX share outperformed its expectations in FY 2025 with a strong result. The highlight was its strong net win margin. It explains:

BETR Entertainment (BBT) delivered a strong finish to the year, comfortably exceeding our expectations on both turnover and gross win. Notably, BBT maintained a net win margin above 10%, despite integrating the traditionally lower-margin TopSport customer base.

With product enhancements underway, we see scope for increased scale and incremental margin expansion heading into the higher-quality racing and sports finals season. We now forecast underlying NPAT of -$4.7m in FY25 and +$2.3m in FY26, reflecting slightly softer top-line growth and higher D&A linked to the amortisation of acquired intangibles (customer list).

Morgans has a buy rating and 38 cents price target on its shares.

Flight Centre Travel Group Ltd (ASX: FLT)

Finally, travel agent giant Flight Centre could be an ASX share to buy according to Morgans.

This is despite the company delivering a disappointing update last week which revealed a downgrade to its guidance.

Morgans thinks it is worth sticking with the company and believes a sharp rebound could happen when trading conditions improve. It said:

FLT has revised its FY25 NPBT guidance by a further 5-12% following a difficult 4Q25 (its key trading period). Given the 1H26 is likely to remain challenging and it will take time for FLT's internal business improvement initiatives to result in material P&L benefits, we have also made large revisions to our FY26 forecasts.

We forecast solid earnings growth to resume from the 2H26. We are buyers of FLT during this period of short-term uncertainty and share price weakness because when operating conditions ultimately improve, both its earnings and share price leverage to the upside will be material.

Morgans has a buy rating and $15.35 price target on its shares.

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

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Betr Entertainment Ltd (ASX: BBT)

The Betr Entertainment share price is down 7% to 27 cents. This follows yet another update on its attempt to acquire Pointsbet Holdings Ltd (ASX: PBH). Unfortunately for Betr, PointsBet shareholders have voted in favour of the competing proposal from MIXI Australia. It stated: "At the Scheme Meeting of Pointsbet Holdings Limited (Company) held today, the resolution to approve the Scheme (as set out in the Notice of Meeting) was carried by the requisite majorities of PointsBet shareholders."

Develop Global Ltd (ASX: DVP)

The Develop Global share price is down 5.5% to $4.53. This morning, this copper and zinc miner announced that it received firm commitments for an institutional placement to raise approximately $180 million at an issue price of $4.50 per new share. The company notes that the placement was strongly supported by existing institutional shareholders and new high quality Australian and international institutional investors. Managing Director Bill Beament said: "There is a global race on to secure offtake of these crucial metals, particularly from tier-one locations, and we are in the box seat to take full advantage of this opportunity. We are very confident that we can extend the mine life at our Woodlawn and Sulphur Springs projects, which will create substantial value for shareholders."

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down almost 3% to $19.25. This follows a pullback in the gold price overnight after safe haven demand dipped. This was driven by news that Israel and Iran have agreed to a ceasefire. It isn't just Northern Star shares that are falling today. A large number of gold miners are falling, which has led to the S&P/ASX All Ords Gold index dropping by 2.1% at the time of writing.

Paragon Care Ltd (ASX: PGC)

The Paragon Care share price is down over 8% to 36.2 cents. This morning, this healthcare wholesaler, distributor, and manufacturer announced the exit of its CEO and managing director, David Collins. The company notes that following recent acquisitions, "it has become apparent it is the right time to have an orderly transition." Paragon Care has already found its new leader. It will be promoting Carmen Riley to the top job, effective 1 July. Carmen Riley has been chief operating officer since the merger with Clifford Hallam Healthcare.

The post Why Betr, Develop Global, Northern Star, and Paragon Care shares are dropping today appeared first on The Motley Fool Australia.

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

Betr Entertainment Ltd (ASX: BBT)

The Betr share price is up 3.5% to 29.5 cents. This follows news that the sports betting company is not giving up on its takeover approach for Pointsbet Holdings Ltd (ASX: PBH). Betr revealed that it plans to make an off-market, all-scrip takeover offer for all shares in PointsBet not already held. The offer will be 3.81 Betr shares for every 1 PointsBet share on issue. Betr's chair, Matt Tripp, commented: "This is a compelling opportunity to consolidate value in the Australian wagering sector. Our offer provides PointsBet shareholders with flexibility—either cash for immediate liquidity or the ability to participate in the long-term upside of the combined entity. We're offering real value, execution certainty, and the leadership experience needed to deliver."

Centuria Capital Group (ASX: CNI)

The Centuria Capital share price is up almost 2% to $1.74. This morning, analysts at UBS took their sell rating off this property company's shares and have upgraded them to a neutral rating with an improved price target of $1.81. UBS is feeling positive about the property sector due to falling interest rates and rising rents.

GR Engineering Services Ltd (ASX: GNG)

The GR Engineering Services share price is up almost 6% to $3.25. This morning, this engineering services company announced a new contract win. It has been awarded an engineering, procurement and construction (EPC) contract by AIC Mines Ltd (ASX: AIM) for the expansion of the existing Eloise copper processing facility in northern Queensland. Managing director, Tony Patrizi, said: "GR Engineering is pleased to have been selected by AIC Mines for the delivery of the Eloise Copper Expansion Project. GR Engineering has a strong track record of successful project delivery in Australia in the base and precious metals sector, including in northern Queensland. We look forward to working with the AIC Mines team on the Project as it expands its existing processing facility."

Mach7 Technologies Ltd (ASX: M7T)

The Mach7 share price is up 3% to 34 cents. This follows news that it has signed a five-year licence agreement amendment for a total contract value (TCV) of A$5 million. The medical technology company has signed the contract with a longstanding key customer, which is an unnamed large US-based radiology marketplace. Mach7 CEO Mike Lampron said: "The agreement highlights our focus on building lasting relationships with our customers and the importance of our 'land and expand' strategy. It also demonstrates the strength of our value proposition and the significant ROI that our diverse product offering delivers to our customers."

The post Why Betr, Centuria Capital, GR Engineering, and Mach7 shares are pushing higher appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Betr Entertainment Ltd (ASX: BBT)

The Betr Entertainment share price is down 3.5% to 28 cents. This sports betting company's shares have been sold off this week after rival Pointsbet Holdings Ltd (ASX: PBH) rejected its takeover offer and pushed ahead with one from MIXI Australia. Betr continues to believe that its offer is superior. This morning, it stated: "The betr Board, which has an unparallelled track record in delivering shareholder value through successfully-integrated acquisitions, strongly believes that the betr Proposal remains clearly superior to the MIXI Proposal. The betr Proposal will deliver $1.33 in value to PointsBet shareholders who elect and receive consideration in line with the funding mix – compared to the $1.20 offered by MIXI."

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price is down 2.5% to $4.76. The catalyst for this appears to have been a broker note out of UBS this morning. According to the note, the broker has downgraded the gold miner's shares to a sell rating (from neutral) with a $4.75 price target. While the broker believes that Regis Resources will achieve the upper end of its guidance range this year, it isn't enough to maintain a more positive rating. Its analysts feel that its shares are fully valued following recent share price gains.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down 13% to 33 cents. This morning, St Barbara downgraded its FY 2025 gold production guidance to between 50,000 and 52,000 ounces. This follows heavy rainfall at the company's Simberi operations in Papua New Guinea. Management revealed that more than 100mm of rain fell during June, including 60mm in just three days. St Barbara's CEO, Andrew Strelein, stated: "This rainfall event has disrupted access to higher grade feed from Pigibo Central at a critical time for achievement of guidance. The missed benches are however anticipated to be mined in July."

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is down 1% to $25.70. This may have been driven by a combination of profit taking from some investors following a strong gain in recent sessions and a pullback in oil prices overnight. The latter reflects optimism that Israel and Iran will soon agree to a ceasefire.

The post Why Betr, Regis Resources, St Barbara, and Woodside shares are falling today appeared first on The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) sports betting company entered a trading halt just before market open on Tuesday. The company requested the pause in trading pending an update on the proposed takeover of PointsBet by Japanese entertainment company, MIXI Inc (TYO: 2121), via its wholly owned subsidiary, MIXI Australia.

The ASX All Ords stock closed on Monday trading for $1.085, prior to yesterday's trading halt.

With the stock back in action today following the release of that takeover update, the PointsBet share price surged to $1.205 in earlier trade, up 11.1%. After some likely profit taking, shares are currently changing hands for $1.19 apiece, up 9.7%.

Here's what's spurring ASX investor interest today.

PointsBet share price leaps on sweetened proposal

As you may be aware, PointsBet finds itself with not just one, but two suitors who've expressed an interest in acquiring all of its shares. That acquisition interest has helped drive a 44% increase in the PointsBet share price since 25 February.

MIXI was first on the scene, offering to pay $1.06 per share in cash in February. A proposal that management initially accepted.

But on 6 March, Betr Entertainment Ltd (ASX: BBT) threw a spanner into the works. Betr, PointsBet's largest shareholder, offered to acquire all of the PointsBet shares via a scheme of arrangement. The scheme valued PointsBet stock at $1.28 per share.

But the bidding war was far from done.

On 29 April, Betr improved and amended its offer, with a potential value of $1.33 per PointsBet share, via a combination of Betr shares and cash.

Which brings us back to today's announcement sending the PointsBet share price soaring.

Investors are reacting positively to news that the ASX All Ords gambling stock has received an improved proposal from MIXI.

Management said that PointsBet has now entered into a deed of variation with MIXI Australia to vary the original scheme from 25 February. MIXI's new takeover offer ups the ante by 13.2%, from $1.06 per share to $1.20 a share.

The proposal is not subject to financing.

Commenting on the improved deal sending the PointsBet share price soaring today, management noted:

The improved proposal implies an enterprise value of $402 million, an increase in value to PointsBet shareholders of $49 million. It also represents an implied EV/EBITDA multiple of 28.7 to 36.6 based on PointsBet's FY25 EBITDA guidance range.

If shareholders fail to support the current offer (with Betr indicating it is likely to vote no with its shareholdings), MIXI said it would consider proceeding with the acquisition via an off-market takeover bid with a 50.1% minimum acceptance condition.

MIXI said it would then still offer $1.20 a share in cash.

The post PointsBet share price surges 11% on improved takeover offer 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:

Betr Entertainment Ltd (ASX: BBT)

The Betr Entertainment share price is down 4% to 34 cents. This morning, Pointsbet Holdings Ltd (ASX: PBH) revealed that it has received a new takeover offer from MIXI today. It has increased its cash consideration from $1.06 per share to $1.20 per share. Betr is hoping to acquire Pointsbet in a deal valued at $1.28 per share. However, the Pointsbet board continues to unanimously recommend MIXI's offer. The market may feel that MIXI is now in the driving seat.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is down 2% to $9.30. This follows a pullback in the gold price overnight. It isn't just Evolution Mining that is falling today. A number of gold miners are under pressure on Wednesday, which has led to the S&P/ASX All Ordinaries Gold index falling 0.7% today.

NIB Holdings Limited (ASX: NHF)

The NIB Holdings share price is down almost 2% to $6.84. This may have been driven by profit taking from some investors following a strong gain since the start of the year. For example, despite today's decline, the private health insurer's shares are up 24% since the end of 2024. On Tuesday, the team at Morgan Stanley put an equal-weight (hold) rating on its shares with a price target of $6.85. This is largely in line with where its shares are trading today.

West African Resources Ltd (ASX: WAF)

The West African Resources share price is down 2.5% to $2.76. This morning, this gold miner released an update on its operations in Burkina Faso. According to the release, the company will be handing over an additional 5% stake in its operating projects to the Government of Burkina Faso in response to its new mining code. This will see the government's free-carried equity interest increase from 10% to 15% for its three operating projects. The West African Resources' executive chairman, Richard Hyde, commented: "WAF has agreed to align the Burkina Faso Government's equity ownership of its mining projects with the 2024 mining code, being a 5% increase in the State's free carried equity interest from 10% to 15%."

The post Why Betr, Evolution, NIB, and West African Resources shares are falling today appeared first on The Motley Fool Australia.

An ASX lodgement published at 9:59 am reveals PointsBet management is preparing a 'material update' on the proposed takeover by Japanese entertainment company, MIXI Inc (TYO: 2121), via its wholly owned subsidiary MIXI Australia Pty Ltd.

PointsBet will remain in a trading halt until the company makes an announcement or until the start of trading on Thursday.

PointsBet shares closed at $1.09 yesterday.

Let's recap.

PointsBet share price halted

Two companies are currently engaged in a bidding war for the corporate bookmaker.

MIXI proposed a 100% takeover via a scheme of arrangement in February, offering $1.06 per share, which PointsBet accepted.

At the time, the offer represented a 27.7% premium to PointsBet's closing share price of 83 cents on 25 February.

The deal was a cash offer, with investors set to relinquish their shares in exchange for consideration.

Then the company's biggest shareholder, Betr Entertainment Ltd (ASX: BBT) (formerly BlueBet), offered an alternative.

On 6 March, Betr offered to acquire 100% of PointsBet shares by way of a scheme of arrangement with an illustrative value to PointsBet shareholders of $1.28 per share.

Betr said its offer was superior to MIXI's proposal because it gave shareholders the opportunity to remain invested in a newly expanded Australian-owned wagering operator and benefit from more than $40 million in cost synergies and significant growth potential.

Betr's proposal offered shareholders a 'mix and match' structure allowing them to choose to take all cash, all scrip, or a combination.

On 29 April, Betr upped the ante with a revised proposal involving a "de-risked funding structure" with an implied equity value of $360 million, comprised of $260 million cash and $100 million in Betr scrip.

Betr said the revised proposal delivered a potential value outcome of $1.33 per share for PointsBet investors.

According to Betr:

Given the significant synergy prize in excess of $40 million annually and the opportunity to participate via betr scrip, the Proposal delivers a potential value outcome of $1.33 per share for PointsBet shareholders.

PointsBet said it would assess the proposal whilst remaining committed to the MIXI deal for the time being.

Unsurprisingly, Betr warned it intended to vote against the MIXI deal, arguing that its offer gave PointsBet investors superior value through greater scale, synergy opportunities, and a more compelling growth strategy.

PointsBet has since released the Scheme Booklet on the MIXI deal and set a shareholder vote for next Thursday, 12 June.

On 12 May, PointsBet announced it had determined that the Betr deal was worth exploring further via a mutual due diligence period.

PointsBet commented:

The PointsBet Board, with the assistance of external advisers, has considered the Proposal and determined that it could reasonably be expected to lead to a 'Superior Proposal', relative to the proposed scheme of arrangement between the Company and MIXI Australia Pty Ltd, a wholly-owned subsidiary of MIXI, Inc (the "MIXI Scheme").

Pointsbet therefore proposes that a form of mutual due diligence be undertaken by Pointsbet and Betr.

As is customary, this due diligence will be phased. PointsBet's initial focus will be on the value of synergies and Betr scrip, as the implied value of the Proposal for shareholders is heavily dependent on these two elements given that the Proposal contemplates a 57% cash / 43% scrip funding mix.

We haven't heard any news on the takeover since then.

Today, PointsBet investors are wondering if the impending update does, indeed, involve a superior offer from MIXI.

We'll have to wait and see.

The post PointsBet share price frozen amid takeover update appeared first on The Motley Fool Australia.

The stock in question is PointsBet Holdings Ltd (ASX: PBH), which has previously accepted a $1.06 per share takeover offer from MIXI.

However, that offer now pales in comparison to one that has been tabled by its largest shareholder, Betr Entertainment Ltd (ASX: BBT), which itself only merged with BlueBet less than 12 months ago. It also completed the acquisition of TopSport earlier this month.

What offer is being made for this ASX All Ords stock?

According to the release, Betr has submitted a new all-in proposal to acquire 100% of PointsBet at $1.33 per share. This values the company at $360 million and is a sizeable premium to the offer from rival suitor MIXI.

The deal includes $260 million in cash and $100 million in Betr scrip, giving PointsBet shareholders a chance to maintain exposure to the combined business.

The release notes that Betr already owns a 19.9% stake in PointsBet after acquiring shares from two of its largest holders. It has also confirmed it will vote against the MIXI proposal, arguing that its own offer delivers superior value through greater scale, deeper synergy opportunities, and a more compelling growth strategy.

For example, Betr expects to unlock more than $40 million in annual cost savings by consolidating brands, platforms, and operations. It is also confident in its ability to migrate PointsBet's customer base, pointing to its recent integration of TopSport and Betr clients.

To fund the offer, Betr has lined up $120 million in financing from National Australia Bank Ltd (ASX: NAB), a proposed sale of PointsBet Canada, and a fully underwritten $130 million equity raise. It is also offering to complete due diligence within three weeks to fast-track the deal.

Commenting on the offer, Betr's chair, Matthew Tripp, said:

Our Offer represents a clearly superior proposal for PointsBet shareholders to realise significant value. We have fully addressed the concerns raised by PointsBet in its Letter to Shareholders on 3 April 2025, including enhancing our funding certainty, synergy realisation, and due diligence timing.

Our proposal is supported by materially enhanced funding security, and as the largest shareholder in PointsBet, we now intend to vote our holding against the current MIXI proposal, reducing its likelihood of success. I am confident PointsBet shareholders will recognise the benefits of our proposal as we work towards again becoming leaders in the Australian wagering market.

The post Guess which ASX All Ords stock just received a new takeover offer appeared first on The Motley Fool Australia.

One of the ASX shares is taking a tumble on the news, while the other is soaring higher on Thursday. For some context, the All Ordinaries Index (ASX: XAO) is up 0.4% in afternoon trade.

Here's what's happening.

ASX share leaps 9% on growth outlook

The first ASX gambling share grabbing headline news today is BetMakers Technology Group Ltd (ASX: BET).

Shares in the betting technology company are up 9.1% at the time of writing, changing hands for 12 cents each.

This follows the release of BetMakers' half-year results for the six months to 31 December (H1 FY 2025).

The ASX share reported revenue for the six months of $41.4 million, down 5.5% from the prior half, and a gross margin of 60%.

While adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at a loss of $1.3 million, BetMakers noted this was an improvement on H1 FY 2024.

Investors look to be bidding up the BetMakers share price on a solid growth outlook. The company expects its EBITDA and operating cash flow trajectory to continue to improve in the second half of FY 2025. And it forecasts revenue growth for FY 2026.

BetMakers executive chair Matt Davey said:

Our new and upgraded technology suite is having a dual effect: it positions BetMakers at the forefront of global wagering, while delivering further efficiency gains, a combination that we expect to drive further improvements in the second half of FY25.

Which brings us to…

Gambling stock taking a tumble

Taking a tumble today is ASX gambling share BlueBet Holdings Ltd (ASX: BBT).

BlueBet shares were down a steep 9.9% in earlier trade today. But after some likely bargain hunting, shares have rebounded to 36 cents apiece at the time of writing, down 2.7%.

This follows on two pieces of big news.

First, BlueBet reported its H1 FY 2025 results today as well.

Highlights included a 116% year on year increase in turnover to $645 million. BlueBet achieved a gross win for the half of $91.3 million, up 128%, with the gross win margin increasing by 0.8% to 14.2%.

The net win margin increased by 0.1% from H1 FY 2024 to 10.4%. The ASX share saw its net win soar 120% to $67.4 million.

Commenting on the results, BlueBet CEO Andrew Menz said:

Our momentum has continued into the second half with our base business and the acquisition of TopSport presenting an attractive opportunity to accelerate our scale and to again deploy our repeatable integration and customer migration playbook.

So why is the ASX gambling share falling today?

With BlueBet reporting strong half-year results, why is the ASX share under selling pressure today?

Well, it may be related to the company's recent bid to acquire Pointsbet Holdings Ltd (ASX: PBH).

At the results release today, Menz said:

Our strategic consolidation of the Australian wagering market continues with our recent compelling offer for PointsBet, which is materially superior to the proposal recommended by the PointsBet board.

However, in another news release today, PointsBet rejected that offer, valued at between $1.02 and $1.09 per Pointsbet share, noting it did not appear to be superior to the prior takeover offer from MIXI.

PointsBet stated:

The PointsBet board considered the proposal and with the input of advice from the company's financial and legal advisers, the board determined that the proposal could not reasonably be expected to lead to a superior proposal to that announced earlier today from MIXI.

The post 2 ASX gambling shares making big moves on big news today appeared first on The Motley Fool Australia.

Four ASX shares that haven't let that stop them from rising today are listed below. Here's why they are climbing:

Bapcor Ltd (ASX: BAP)

The Bapcor share price is up 15% to $5.15. Investors have been buying this auto parts retailer's shares following the release of its half year results. Although its results were not amazing on paper, investors appear pleased with its cost reduction plans. Bapcor CEO Angus McKay said: "We expect to deliver cost savings towards the top end of our $20-30M target range in FY25 which will be second half weighted. We have been highly disciplined in how we manage working capital and our strong cash conversion has meant we were able to pay down debt, while investing to grow our Trade network and make significant strategic improvements in IT."

Light & Wonder Inc (ASX: LNW)

The Light & Wonder share price is up 7% to $169.21. This follows the release of the gaming company's FY 2024 results. Light & Wonder reported a 10% increase in revenue to a record of $3.2 billion and a 110% jump in net income to $336 million. CEO Matt Wilson, said: "We ended a strong 2024 with continued double-digit revenue and earnings growth for the year. The Gaming machine sales share gains in North America and Australia this year are a testament to our R&D investment, commercial strategy and robust product roadmap. Furthermore, we have also realigned studio needs, adding more talent and expanding existing studios." The company is guiding to low double-digit income growth in the first quarter of FY 2025.

Pointsbet Holdings Ltd (ASX: PBH)

The Pointsbet share price is up 31% to $1.09. Investors have been fighting to get hold of this sports betting company's shares after it accepted a takeover offer from Japan-based consumer technology company, MIXI. Pointsbet has agreed to a deal of $1.06 per share, which values it at $353 million. But the story may not end there. Bluebet Holdings Ltd (ASX: BBT) revealed that it also wants to acquire Pointsbet, which has sparked hopes that a bidding war could break out.

Worley Ltd (ASX: WOR)

The Worley share price is up almost 11% to $15.51. This has been driven by the release of the engineering company's half year results. Worley reported a 6.8% increase in revenue to $5.99 billion and a 14.9% increase in underlying NPATA to $216 million. Looking ahead, the company is targeting low double-digit EBITA growth in FY 2025.

The post Why Bapcor, Light & Wonder, Pointsbet shares are racing higher today appeared first on The Motley Fool Australia.

That's because they have been named as buys and tipped to generate big returns in 2025. Here's what analysts are saying about them:

Bluebet Holdings Ltd (ASX: BBT)

The first small cap ASX stock that could deliver big returns for investors is sports betting company Bluebet.

Morgans is very positive on Bluebet after it posted "another strong quarterly result." It also highlights that "the company achieved an EBITDA positive half earlier than expected, driven by accelerated synergy gains and solid trading performance."

The broker expects more of the same and anticipates a strong result later this month. It said:

Encouragingly, BBT reports that 2Q25 trading momentum has carried into 3Q25. We expect a statutory benefit in 1H25 following the US exit, though some costs from the wind-down will offset this. The company reaffirmed its confidence in achieving over 10% market share through both organic and inorganic growth. BBT will release its interim result on 27 February 2025. We have taken our forecast FY25 EBITDA up from $4.2m to $4.9m.

Morgans has put an add rating and 43 cents price target on its shares. This implies potential upside of 15% for investors from current levels.

Bubs Australia Ltd (ASX: BUB)

The team at Ord Minnett think that this infant formula company could be an ASX small cap stock to buy now.

The broker highlights that after getting rid of its previous wealth-destroying management team, Bubs now looks well-managed and positioned for a successful turnaround. It said:

‍After eight years, several false starts including a costly one into China, a sacked founder, a failed board spill, and a staggering $316 million in equity injections, is it safe to mention the name Bubs in investment circles? We are of the view that it is.

For any investor that has previously written-off the company, we believe it is time to revisit Bubs get exposure to what we forecast to be an outstanding 2025 turnaround story. Bubs is currently displaying all of the essential ingredients for a successful turnaround, i.e. anew and competent management team that has had enough time to steady the ship, a good product with sufficient gross profit (GP) margins, and a multi-year double-digit growth profile.

Ord Minnett recently initiated coverage on Bubs with a buy rating and 20 cents price target. This suggests that upside of over 70% is possible for investors over the next 12 months.

Readytech Holdings Ltd (ASX: RDY)

Finally, Morgans also rates this software provider as an ASX small cap stock to buy right now.

Its analysts think that Readytech's shares are too cheap considering its strong earnings growth outlook. The broker said:

RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years. Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.

Morgans has an add rating and $3.74 price target on its shares. This implies potential upside of 18% for investors.

The post These small cap ASX stocks could rise 15% to 70% appeared first on The Motley Fool Australia.

That's because these two small cap ASX shares have recently been named as buys and tipped to rise strongly from current levels.

Here's what brokers are saying about these shares:

Bluebet Holdings Ltd (ASX: BBT)

The first small cap ASX share that could be a buy is BlueBet. That's the view of analysts at Morgans, which are bullish on the sports betting company.

Morgans was happy with BlueBet's recent annual general meeting update. It notes that management continues to expect to achieve positive EBITDA during the first half of FY 2025. It also highlights that the company is performing well ahead of the prior corresponding period. It explains:

BlueBet Holdings (BBT) delivered an AGM address yesterday where it indicated that the business remains on track to achieve monthly EBITDA profitability before the end of 1H25. November trading month-to-date is materially ahead of prior year and encouragingly, BBT says it is well positioned to be normalised EBITDA-positive for FY25 (MorgansF: $4.1m).

Business momentum has been driven by a strong Spring Racing Carnival period, which looks to have been supportive to all bookies given many of the favourites fell well short of the mark. While disclosure was limited, BBT indicated that it achieved a net win margin of 15.8% across the four days at Flemington. As a result, we've bumped our 2Q25 net win margin to 10.2%.

Morgans has retained its add rating with an improved price target of 35 cents.

Based on its current share price of 31 cents, this implies potential upside of 13% for investors from current levels.

Fenix Resources Ltd (ASX: FEX)

Another small cap ASX share that could deliver big returns for investors is Fenix Resources.

Bell Potter is a fan of the small cap mining and development company. So much so, it named it as a top pick for 2025. It commented:

Fenix Resources is unlocking stranded mining assets across the Mid-West region of Western Australia, through three wholly owned business pillars: (1) iron ore mining; (2) bulk commodity haulage (Newhaul Road Logistics); and (3) port services (Newhaul Port Logistics). The company's internal iron ore production is growing to 4Mtpa through its Iron Ridge (100% FEX, operating), Beebyn-W11 (10Mt Right to Mine agreement, in development), and Shine (100% FEX, operating) mining operations.

FEX's logistics streams provision bulk commodity haulage and port services for in- house and third-party customers. The group controls the largest storage and throughput position at the strategic and fast growing Geraldton Port. Its portfolio of low- capital mining assets and integrated logistics networks should continue to underpin robust cash flows, funding growth expenditure requirements and shareholder returns. Buy, Price Target $0.41

Bell Potter has put a buy rating and 41 price target on its shares. Based on its current share price of 26 cents, this implies potential upside of almost 60%.

The post Analysts say these small cap ASX shares can deliver big returns appeared first on The Motley Fool Australia.