After a sharp pullback due to artificial intelligence (AI) disruption fears, we are starting to see a rebound in April. Even so, a number of high-quality names are still trading well below their 52-week highs.

Here are three ASX tech stocks I think look like strong buys today.

Xero Ltd (ASX: XRO)

Xero is one of the clearest examples of how AI concerns can sometimes miss the bigger picture.

Rather than being disrupted by AI, the company is positioning itself to benefit from it. In its recent investor briefing, management highlighted that AI could significantly expand its total addressable market, with long-term potential to grow the SaaS opportunity by around 4 times.

What stands out to me is Xero's role as a system of record for small business financial data.

That gives it a powerful foundation in an AI-driven world. Instead of competing with AI tools, it can integrate them directly into its platform to automate workflows, generate insights, and improve decision-making for customers.

We are already seeing early signs of this. More than two million subscribers are using Xero's AI features, with measurable benefits such as time savings and improved productivity.

On top of that, the integration of Melio is opening up a significant US payments opportunity, which could drive stronger revenue growth and improved unit economics over time.

I think this looks like a business leaning into disruption rather than being threatened by it.

Catapult Sports Ltd (ASX: CAT)

Catapult is a very different kind of ASX tech stock, but I think the opportunity is just as compelling.

Its platform is where data, performance analytics, and sport meet. That might sound niche, but the underlying model is highly scalable.

One thing that stood out in its recent analyst day was the focus on recurring software revenue and expanding value per customer.

The company reported ACV growth of around 19% and retention above 95%, which points to strong customer engagement and stickiness.

What I like is the land and expand strategy. Catapult is increasingly selling multiple products to the same teams, which can significantly increase revenue per customer over time. This is important because multi-solution customers generate materially higher value.

Importantly, Catapult argues that AI will enhance its value proposition rather than replace it, because its proprietary data sits at the core of performance analytics. And you can't build meaningful AI insights without high-quality underlying data.

For me, that data advantage is what could underpin its long-term growth.

SiteMinder Ltd (ASX: SDR)

SiteMinder is another business that has faced pressure as investors reassess growth tech.

But stepping back, I think the core story remains intact. The ASX tech stock operates a global hotel distribution and booking platform, connecting accommodation providers with online travel agents and other channels. That network effect is difficult to replicate.

What I find attractive is how that platform can evolve. As hotels increasingly focus on direct bookings, pricing optimisation, and revenue management, SiteMinder is well placed to expand its product suite and monetisation opportunities.

While AI is often framed as a risk, I think it could actually strengthen this model. Better data and smarter tools can improve pricing decisions, occupancy rates, and customer targeting, all of which feed back into the platform.

In other words, the same technology that investors worry about could end up enhancing the value of SiteMinder's ecosystem.

Foolish Takeaway

The recent pullback by ASX tech stocks has been driven in part by uncertainty around AI.

But when I look at Xero, Catapult, and SiteMinder, I see businesses that are adapting to that shift rather than being left behind, and that is why I think they look like strong long-term buys today.

The post Why I think these ASX tech stocks are strong buys appeared first on The Motley Fool Australia.

But price alone does not tell you much about value. What matters more, in my view, is whether the business has a large opportunity ahead of it and a clear path to grow into that opportunity over time.

Here are three ASX shares under $5 that I think have the potential to be much bigger businesses in the years ahead.

DroneShield Ltd (ASX: DRO)

DroneShield operates in a niche that is becoming increasingly important.

Its technology is designed to detect and counter drones, which are now being used across defence, security, and critical infrastructure. That demand backdrop has shifted quickly in recent years, particularly as geopolitical tensions have increased.

What I like most is the scale of the opportunity. Counter-drone technology is still relatively early in its adoption curve, but the use cases are expanding rapidly. Governments, airports, and private operators are all potential customers.

I think the key question is not whether demand exists, but how large it could become.

DroneShield is positioning itself as a specialist provider in this space, and if adoption continues to broaden, the addressable market could grow significantly from here. That does not guarantee success, but it does create the kind of long-term optionality I look for in smaller companies.

Catapult Group International Ltd (ASX: CAT)

Catapult sits at the heart of sport, data, and performance technology.

This ASX share provides analytics and wearable tracking solutions to professional sports teams, helping them optimise performance and reduce injury risk. That might sound niche, but the company is already working with more than 3,000 teams across over 40 sports globally.

What I find interesting is how the growth opportunity is evolving.

According to the company's recent analyst day presentation, the professional team market alone includes more than 20,000 teams, with significant room for further penetration. That gives a sense of the existing total addressable market, before even considering adjacent opportunities.

But it goes further than that. Catapult is increasingly focused on expanding revenue per customer. Its land and expand strategy is built around adding more products and increasing average contract value over time, with a long-term ambition to grow annualised contract value materially.

To me, that combination is important. It is not just about adding more teams. It is about deepening relationships with existing ones, which can be a powerful driver of long-term growth if executed well.

SiteMinder Ltd (ASX: SDR)

SiteMinder is building what it describes as a global platform for hotel commerce.

Its software helps hotels manage bookings, distribution channels, and pricing across a highly fragmented ecosystem. That might not sound exciting at first glance, but the scale of the network is significant.

The platform already connects around 53,000 properties globally and facilitates tens of millions of reservations each year.

What I find compelling is the underlying market opportunity. The ASX share sits at the centre of a global hotel ecosystem, connecting hundreds of systems, apps, and distribution channels. As that ecosystem becomes more complex, particularly with the rise of AI-driven pricing and distribution, the need for a central platform could increase.

There is also a clear monetisation opportunity. SiteMinder has outlined a potential 5x uplift in revenue per customer as more products are adopted across its existing base. That suggests a large internal growth runway, even without relying solely on new customer additions.

Foolish takeaway

Shares trading under $5 can sometimes be overlooked, but they can also offer exposure to businesses with meaningful long-term growth potential.

DroneShield is operating in a market that is still emerging but expanding quickly, Catapult has a clear pathway to grow both its customer base and revenue per customer, and SiteMinder is building a global platform with increasing relevance as the hotel industry becomes more complex.

None of these are guaranteed winners, and all come with risks. But for me, they each have something that matters more than their share price. A large opportunity and a strategy to grow into it over time.

The post 3 ASX shares below $5 with huge potential appeared first on The Motley Fool Australia.

Every now and then, though, it's worth casting your eye over stocks which could outperform the market by a significant amount, and deliver outsized returns.

I've had a look at the recent analyst reports and selected three companies that, at least if the analysts are to be believed, are significantly undervalued at current levels.

Catapult Sports Ltd (ASX: CAT)

Catapult is a global leader in providing technology for professional sports teams to monitor, track, and evaluate their players.

The company held an investor day recently and also put out a trading update in March, which indicated that the company expected management EBITDA to grow by about 50% year on year, "as the company's profitability continues to outpace its strong top-line growth''.

The analysts at Canaccord Genuity attended the investor day and said the company was targeting growth to 5,000 teams in the next two to three years, then 7,000 to 10,000 teams in five to six years.

They added:

Management has identified several greenfield opportunities across global Soccer (lower division levels not using any tech) and Basketball (currently about 100-150 teams weighted to US-based collegiate level), with potential expansion into other US college sports (e.g. Athletics, Ice hockey).

Canaccord has a price target of $8 on Catapult shares, compared with $3.22 now.

Clarity Pharmaceuticals Ltd (ASX: CU6)

Clarity has two Phase III clinical trials in the prostate cancer space that will report this year, which could trigger a major rerating of the company's shares, the analysts at Canaccord Genuity say.

The addressable market for the company's drugs would be about $US2.9 billion annually in the US, Canaccord said, providing the potential for major revenue for the company.

They added:

Should 64Cu-SAR-bisPSMA be approved, and subsequently launch in 2H28, by FY35 we see Clarity generating US$860m in sales, representing 29% share. 

Canaccord has a price target of $8.41 on Clarity shares compared with $3.15 currently.

Global Lithium Resources Ltd (ASX: GL1)

Shaw and Partners has just initiated coverage on this company with a buy recommendation and a very bullish share price target.

Global Lithium is developing the Manna Lithium Project in Western Australia, and released a definitive feasibility study on it in December, envisaging a 14.3-year mine life with a payback period of 3.5 years.

Shaw's report on the company said the Manna project was of "world class scale and quality".

They added:

The project is designed for high efficiency, utilising ore sorting to optimize mill feed and reduce waste. This results in an extremely competitive all in sustaining cost of $1,101/t on our numbers, positioning Manna in the lowest quartile of the global lithium cost curve. This low-cost profile ensures the project remains resilient and commercially viable even during periods of lithium price volatility.

Shaw has a price target of $1.50 on Global Lithium shares compared with the current price of 51.5 cents.

The post 3 ASX shares tipped to grow 100% or more in the next 12 months appeared first on The Motley Fool Australia.

That's because the broker has just released its latest top Australian picks from the small-cap side of the market. These are its panel of favoured ASX shares that it believes offer attractive returns over the long term.

Two that make the list in April are named below. Here's why it is bullish on them:

Catapult Sports Ltd (ASX: CAT)

This sports technology company has been named as an ASX share to buy in April by the broker.

It likes Catapult due to its strong position in a market that is expected to double in value to US$72 billion by 2030.

Commenting on its recommendation, Bell Potter said:

Catapult Sports is a leading global provider of elite athlete wearing tracking solutions and analytics for athlete tracking. The key target market of Catapult is elite sporting teams and organisations and the acquisition of SBG also now gives the company a presence in motorsports. The pro sports technology market is currently valued at US$36bn in 2025 and is forecast to double to US$72bn by 2030.

We view CAT as a market leader entering a stronger phase of cash generation and operating leverage, with an underpenetrated global customer base and expanding analytics suite providing a long runway for subscription growth and valuation upside.

Region Re Ltd (ASX: RGN)

Bell Potter has added Region Group to its best ideas list in April. It is a neighbourhood shopping centre landlord which counts the likes of Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW) as major tenants.

The broker believes the company is well-placed for both growth and to pay a generous dividend in the near term. It also highlights its attractive valuation, with the ASX share trading at a discount to its net tangible assets (NTA). Bell Potter explains:

We add Region Group (RGN), Australia's largest landlord of neighbourhood shopping centres – a portfolio of highly resilient income streams heavily weighted to non-discretionary retail tenants (Woolworths and Coles). The business delivered a solid 1H26 result with a pickup in NOI and an upgrade to full year FY26 guidance, which doesn't account for any potential acquisitions, buyback activity, and growth in its funds management platform.

RGN also ranks amongst the most hedged in its peer group, with interest costs largely locked in for the next two years (100% hedged for FY26, 87% hedged in FY27), providing strong earnings visibility and a buffer to rising funding costs. The stock trades at a -9% discount to NTA, 6.0% 1yr forward DPS yield, and is an internally managed REIT with a largely open register in one of the most attractive risk-adjusted sub-sectors of real estate.

The post Bell Potter names the best ASX shares to buy in April appeared first on The Motley Fool Australia.

Three ASX shares that brokers have named as buys this week are listed below. Here's why their analysts are feeling bullish on them right now:

Aristocrat Leisure Ltd (ASX: ALL)

According to a note out of Macquarie, its analysts have retained their outperform rating and $63.00 price target on this gaming technology company's shares. The broker has been looking at recent US casino gaming data and was pleased to see year on year growth. This is despite operating in a potentially softer consumer backdrop. In light of this, the broker continues to forecast solid growth from Aristocrat over the medium term. So, with its shares de-rating significantly this year and its valuation at a multi-year low, the broker thinks investors should be snapping them up while they are down. The Aristocrat Leisure share price is trading at $46.55 this afternoon.

Catapult Sports Ltd (ASX: CAT)

A note out of Bell Potter reveals that its analysts have retained their buy rating and $4.75 price target on this sports technology company's shares. This follows the release of its investor day event presentation which outlined its medium-term growth targets. Bell Potter highlights that the key target is annual contract value (ACV) of US$200 million+ in two to three years. This in theory will be achieved by reaching 5,000 pro teams (vs ~4,000 now) and ACV per pro team of ~US$40,000 (vs ~US$30,000 now). The broker believes that this is achievable given the increase in solutions it offers due to acquisitions and new product development. Bell Potter is forecasting ACV of US$207 million in FY 2029, which is consistent with Catapult's target. The Catapult share price is fetching $3.50 at the time of writing.

Navigator Global Investments Ltd (ASX: NGI)

Analysts at Morgans have retained their buy rating on this investment company's shares with a trimmed price target of $2.98. According to the note, the broker was pleased with the company's acquisition of Georgian, which is a Toronto-based AI-focused growth equity firm. It thinks the acquisition is a strategic fit and will be earnings accretive. Outside this, it highlights that a recent selloff of Navigator Global shares appears to have been tied to private credit concerns around its key strategic partner Blue Owl. However, Morgans thinks that the company's fundamentals are largely unchanged. The Navigator share price is trading at $2.17 on Wednesday.

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

That's the view of analysts at Bell Potter, who have named it as one of their top picks in the sector.

Which ASX 300 tech stock?

The stock that Bell Potter is recommending to clients is Catapult Sports Ltd (ASX: CAT).

It is a leading global provider of wearable tracking solutions for professional athletes.

Bell Potter notes that its key target market is elite sporting teams and organisations and the acquisition of SBG in 2021 also now gives the company a presence in motorsports.

This is a big market. It highlights that the pro sports technology market is currently valued at US$36 billion and is forecast to double to US$72 billion by 2030.

What is the broker saying?

Bell Potter notes that Catapult released its investor day update this week and was relatively pleased with it. It said:

We have made further adjustments to our Catapult forecasts following the analyst day yesterday. The two key changes are: 1. Increasing our SBP forecasts from US$23.5m to US$26.0m in FY26 and US$30.0m to US$35.0m in FY27 (no change in FY28); and 2. Increasing our D&A forecasts by US$1.0m, US$3.1m and US$3.3m (or 3%, 7% and 7%) in FY26, FY27 and FY28 due to higher amortisation of acquisition intangibles related to IMPECT than we had originally forecast.

The net result is no change in our management EBITDA forecasts, downgrades of 20% and 24% in our statutory EBITDA forecasts in FY26 and FY27 and downgrades in our statutory NPAT forecasts (which are already losses). We note that the downgrades are all non-cash and our cash flow forecasts are little changed.

Positive outlook

Overall, Bell Potter remains very positive on the ASX 300 tech stock's outlook and believes that management's bold growth targets are achievable. It concludes:

The other key take-out from investor day is that the medium-term targets remain on track and the outlook remains positive. The key target is ACV of US$200m+ in "2-3 years" which in theory will be achieved by reaching 5k pro teams (vs c.4k now) and ACV per pro team of c.US$40k (vs c.US$30k now). The key to achieving this ACV target will be the increase in ACV per pro team which will require both an increase in the number of multi-solution teams and the average number of solutions per team.

Both of these look well achievable with Catapult highlighting that c.27% of its pro team customers now taking more than one solution – versus just c.14% in FY23 – and the number of solutions has increased significantly over the past few years from both investment in new products (like Vector Core) and acquisitions (like SBG, Perch and IMPECT). We forecast Catapult to reach ACV of US$200m+ in FY29 – our forecast is US$207m – so our forecasts are consistent with the medium-term target.

In light of this, it has retained its buy rating and $4.75 price target on Catapult's shares. Based on its current share price of $3.44, this implies potential upside of 38% for investors over the next 12 months.

The post Tech rebound: Bell Potter says this ASX 300 stock is a top buy appeared first on The Motley Fool Australia.

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

ASX 200 to jump

The Australian share market looks set for a strong session on Wednesday following a very positive night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 119 points or 1.4% higher. In late trade in the United States, the Dow Jones is up 2.3%, the S&P 500 is up 2.75% and the Nasdaq is 3.7% higher.

Buy Catapult shares

Bell Potter sees a lot of value in Catapult Sports Ltd (ASX: CAT) shares at current levels. This morning, the broker has reaffirmed its buy rating and $4.75 price target on the sports technology company's shares. It said: "The other key take-out from investor day is that the medium-term targets remain on track and the outlook remains positive. The key target is ACV of US$200m+ in "2-3 years" which in theory will be achieved by reaching 5k pro teams (vs c.4k now) and ACV per pro team of c.US$40k (vs c.US$30k now)."

Oil prices mixed

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Wednesday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.85% to US$102.02 a barrel and the Brent crude oil price is up 4.9% to US$118.31 a barrel. While there is optimism that the Iran war could soon end, there is no guarantee that the Strait of Hormuz will reopen.

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Wednesday after the gold price stormed higher overnight. According to CNBC, the gold futures price is up 3.4% to US$4,680.7 an ounce. This was driven by optimism that the Iran war could be nearing an end.

AGL update

AGL Energy Limited (ASX: AGL) shares will be on watch today after the energy giant released an update on the Kwinana Gas Power Generation 2 (K2) Project. It is a 220 MW open-cycle, dual-fuel gas turbine power station to be co-located with the existing Kwinana Swift facility in Western Australia. AGL has reached a final investment decision to proceed with the project. AGL's CEO, Damien Nicks, said: "It marks another important milestone in AGL's strategy to develop new firming capacity to support the build out of renewables, and further expands the breadth and capacity of the company's flexible asset portfolio."

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

But when times are tense and share prices are falling, it creates some great buying opportunities for investors to snap up ASX shares for a low price.

Here are three dirt-cheap ASX shares which have caught my eye this week. And they're all tipped to climb another 50% to 90% over the next 12 months.

Myer Holdings Ltd (ASX: MYR)

As a fashion retail stock, Myer shares are heavily impacted by market volatility and concerns about more interest rate rises. Higher cost-of-living also means Australians are tightening their purse strings and spending less. 

The ASX company has already faced profitability and operational issues. Now it is being hit with a double whammy of distribution issues and lower consumer spending.

But Myer reported a solid first-half financial result last week, including a 21.7% increase in underlying net profit and a 32.8% hike in statutory net profit for the six months ending 24th January.

The results imply that the business has its operating costs under control and its strategic initiatives are gaining traction. At just 30 cents a piece, at the time of writing, analysts think the shares are now undervalued and oversold. The ASX shares are tipped to climb 86% to 58 cents at the time of writing.

Catapult Sports Ltd (ASX: CAT)

Catapult is a global sports data and analytics company that provides real-time data to optimise athletes' performance. The tech company reported a 16% revenue uplift in the first half of FY26 and a 19% hike in its annualised contract value (ACV). It also expects more growth through the second half of FY26

Catapult is quickly gaining traction, and its recurring subscriptions means it benefits from customer retention. That translates to a higher and more stable margin. 

The ASX shares have tumbled 28% to $3.08 for the year-to-date. But analysts are tipping a turnaround. They forecast Catapult shares will climb 94% to $5.80 over the next 12 months, at the time of writing.

Ramelius Resources Ltd (ASX: RMS)

The gold explorer and producer's shares have tumbled over 25% since Israel and the US launched strikes on Iran in late-February. 

Concerns about a resurgence of inflation and renewed potential for more interest rate hikes has overshadowed gold's traditional safe-haven status. The price of gold has tumbled from an all-time high on the 1st of March, making the metal even less appealing to investors.

But the ASX gold miner has demonstrated strong production performance and consistent cash generation.

Analysts are bullish about the outlook for the ASX gold miner's shares. They tip a 56% upside to $5.59 a piece, at the time of writing.

The post These 3 dirt-cheap ASX shares are tipped to climb another 50-90% 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:

Catapult Sports Ltd (ASX: CAT)

According to a note out of Bell Potter, its analysts have retained their buy rating on this sports technology company's shares with a trimmed price target of $4.75. This follows the release of a trading update last week which revealed expectations for strong annual contract value (ACV) growth in FY 2026. Catapult is expecting ACV of US$133 million to US$134 million, which Bell Potter notes is ahead of its US$131 million estimate. It believes this is a big positive as it seen as the key leading indicator. Outside this, the broker notes that it has trimmed its valuation to reflect changes in its model to focus on earnings and cash flow. Nevertheless, it still implies significant upside from current levels. The Catapult share price is trading at $2.93 on Monday.

DroneShield Ltd (ASX: DRO)

Another note out of Bell Potter reveals that its analysts have retained their buy rating and $4.80 price target on this counter-drone technology company's shares. The broker has been looking at the counter-drone market and highlights that the war in the Middle East is accelerating demand for this technology. It points out that lessons learned in Ukraine are being repeated. This includes the fact that using up to US$4 million missiles to take down US$35k drones is unsustainable. Bell Potter expects there to be broad adoption of C-UAS technologies alongside advanced hypersonic defence capabilities to improve on this equation. This bodes well for DroneShield given its strong position in the market and high-quality product portfolio. The DroneShield share price is fetching $3.91 at the time of writing.

Xero Ltd (ASX: XRO)

Analysts at Citi have retained their buy rating and $144.80 price target on this cloud accounting platform provider's shares. According to the note, the broker believes that Xero's partnership with AI giant Anthropic is a positive. It highlights that the move aligns with management's strategy of leveraging AI assistants as a distribution and go-to-market channel. While there is a risk that AI assistants could evolve into primary platforms for small businesses, Citi believes that Xero's app ecosystem and go-to-market strength are competitive advantages. The Xero share price is trading at $68.44 this afternoon.

The post Leading brokers name 3 ASX shares to buy today 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:

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is down 10% to $5.63. This may have been driven by profit-taking from some investors following a very strong gain last week. Investors were buying the respiratory imaging technology company's shares after it made a big announcement. 4DMedical revealed that its CT:VQ technology has been deployed at the Mayo Clinic in the United States. The company's managing director and CEO, Andreas Fouras, commented: "Mayo's deployment is uniquely significant. When the world's number one hospital chooses to use your technology, it sends the strongest possible signal to the entire U.S. healthcare market about the clinical value and readiness of CT:VQ."

Brainchip Holdings Ltd (ASX: BRN)

The Brainchip share price is down 3.5% to 14 cents. Although this semiconductor company announced a licensing agreement today, the market doesn't appear overly impressed given the customer and the terms. BrainChip has entered into a technology licensing deal with Korea-based semiconductor company EDGEAI for its Akida 2 neuromorphic IP. The company will receive unspecified payments as it provides various deliverables, including IP access, engineering support, and integration services, as well as royalties on product sales. The agreement is global and non-exclusive, meaning EDGEAI is not restricted from working with other technology providers. In addition, it can be terminated by the customer without cause on one month's notice.

Catapult Sports Ltd (ASX: CAT)

The Catapult Sports share price is down 14% to $2.92. This follows the release of the sports technology company's analyst day presentation. Catapult revealed bold growth ambitions, targeting a rise in average annual contract value (ACV) per pro team from US$20,000 to between US$100,000 and US$150,000. However, this will depend on successful upselling to existing teams and launching additional products.

Star Entertainment Group Ltd (ASX: SGR)

The Star Entertainment share price is down 2% to 12.25 cents. This morning, this casino and resorts operator revealed that it has entered into a binding commitment letter with funds associated with WhiteHawk Capital Partners. This is in relation to a refinancing of its debt. It notes that the annual interest rate based on the term SOFR plus a margin that is materially consistent with its recent facility agreements.

The post Why 4DMedical, Brainchip, Catapult, and Star Entertainment shares are falling today appeared first on The Motley Fool Australia.

The Catapult share price tumbled 12.9% to $2.97 during early afternoon trade, adding to what has already been a painful period for investors.

The ASX technology stock is now down 28.6% year to date and has plunged roughly 57% over the past six months.

So, what's behind the latest sell-off?

Lifting the bar

The weakness of Catapult shares comes as the sports technology company outlined its strategy to grow average annual contract value (ACV) per professional team — and while the long-term vision is ambitious, it may have raised some near-term concerns.

At its core, Catapult provides performance analytics and wearable tracking technology to professional sports teams. Its solutions help teams monitor athlete performance, reduce injury risk, and gain a competitive edge through data.

Now, management is aiming much higher. The company is targeting a significant increase in average ACV per pro team, lifting it from around US$20,000 today to between US$100,000 and US$150,000 over time. That's a massive jump — and it will rely heavily on upselling, cross-selling, and rolling out new products.

There's a catch: Execution risk

The strategy is built around a "land and expand" model. Catapult plans to win new customers with its core performance and health (P&H) offerings, then deepen those relationships by layering on additional features and solutions. On paper, it's a compelling approach.

Catapult appears focused on boosting the value it delivers to each customer, rather than just chasing new sign-ups. By turning smaller initial contracts into broader, multi-solution partnerships, the company could unlock meaningful revenue growth without needing to dramatically expand its customer base.

Investors may be questioning how quickly and how easily Catapult can scale ACV to those ambitious targets. Upselling existing customers and convincing teams to adopt multiple products isn't guaranteed. It's particularly difficult in a competitive and budget-conscious environment.

Catapult shares snapshot

That uncertainty comes at a time when Catapult shares are already under pressure and near recent lows. When expectations are high and delivery is still ahead, the market can be quick to hit the sell button.

Looking at the bigger picture, the recent decline has been significant. Over the past 12 months, Catapult shares are down 14%, underperforming the S&P/ASX 200 Index (ASX: XJO), which has risen around 5.3% over the same period.

The bottom line? Catapult's long-term growth strategy could be powerful if it works. Right now, investors appear wary about the path to get there.

The post Why are Catapult shares tumbling 13% on Monday? appeared first on The Motley Fool Australia.

What did Catapult Group report?

• The company is targeting a rise in average ACV per pro team from US$20,000 to between US$100,000 and US$150,000.
• Emphasis is on new customer wins ("land with P&H"), and expanding with upsell features and fresh solutions.
• The information presented is for illustration and not a current or forecasted performance statement.
• Share-based payment expenses related to the IMPECT acquisition are scheduled over four years, with expense levels dependent on share price and performance milestones.

What else do investors need to know?

Catapult's future revenue uplift will depend on successful upselling to existing teams and launching additional products. The share-based payment schedule linked to the IMPECT acquisition will vary according to the company's share price and satisfaction of earn-out requirements, so related expenses may fluctuate over the coming years.

While the metrics presented are not audited results or formal forecasts, they do show management's thinking on scaling customer value and growing recurring revenues. Investors should note the absence of current-period financials or forward guidance in this update.

What's next for Catapult Group?

Catapult appears focused on boosting the value it provides to professional sports teams by promoting broader usage of its offerings. The company's strategy revolves around converting initial contracts into higher-value, multi-solution partnerships.

Looking ahead, Catapult investors will likely watch for the release of official financial results, details on the progress of upselling initiatives, and updates on new product launches.

Catapult Group share price snapshot

Over the past 12 months, Catapult Group shares have declined 11%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Catapult Group targets bigger ACV per team appeared first on The Motley Fool Australia.

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

ASX 200 expected to fall again

The Australian share market looks set for a tough start to the week following declines on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 65 points or 0.75% lower. In the United States, the Dow Jones was down 1.7%, the S&P 500 dropped 1.7%, and the Nasdaq tumbled 2.15%.

Oil prices jump

It could be a good start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices jumped on Friday night. According to Bloomberg, the WTI crude oil price was up 5.45% to US$99.64 a barrel and the Brent crude oil price was up 4.2% to US$112.57 a barrel. This was driven by an escalation in the Middle East conflict just when the market was hoping for a peace deal.

AMP announces buyback

The AMP Ltd (ASX: AMP) share price will be on watch after the financial services company announced an on-market share buyback. AMP revealed that it will buy back up to $150 million of ordinary shares. AMP's chief executive, Alexis George, said: "We remain committed to returning surplus capital to shareholders in the absence of a compelling alternative, and prioritising organic growth in our wealth businesses. Today's announcement demonstrates this, with an on-market share buyback the most efficient use of capital at this time."

Gold price rises

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price rose on Friday night. According to CNBC, the gold futures price was up 2.6% to US$4,524.3 an ounce. Traders appear to believe that the precious metal was oversold.

Buy Catapult shares

Bell Potter is feeling bullish on Catapult Sports Ltd (ASX: CAT) shares at current levels. In response to its trading update, the broker has retained its buy rating with a trimmed price target of $4.75 (from $4.85). Based on its current share price, this implies potential upside of almost 40% for investors. It said: "We choose not to make any change to our FY27 or FY28 forecasts at this stage – despite the stronger than expected year end ACV in FY26 – given, firstly, the lack of any other details regarding the FY26 result and, secondly, the strategy session next week which may provide further details. […]  Catapult remains our preferred mid cap exposure in the tech sector."

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

It has been a bumpy year for the global sports data and analytics company, which is down roughly 20% year to date. 

What did the company announce last week?

The company revealed that it expects its annual contract value (ACV) for FY 2026 to be in the range of US$133 million to US$134 million with low churn. 

This represents year-on-year growth around 27% to 28% on a constant currency basis. 

In addition, EBITDA is anticipated to grow by roughly 50% year-on-year, as its profitability continues to outpace its strong top-line growth. 

These results sent Catapult shares racing higher last Thursday.

Interestingly, Catapult shares then retreated more than 6% on Friday. 

Following the results, Bell Potter released updated guidance on the technology stock.

Here's what the broker had to say. 

Good end to the year

According to Bell Potter, Catapult's expected annual contract value is now higher than it previously expected. 

The broker said free cash flow is forecast at $5–6 million, below expectations, but this is due to timing of payments rather than a fundamental issue. 

Bell Potter sees the strong annual contract value (ACV) result as the main positive, showing good business momentum. 

Following the results, Bell Potter only updated its FY26 forecasts for ACV, cash flow, and management EBITDA.

Its forecasts for revenue and statutory EBITDA remain unchanged, as the higher management EBITDA is believed to come from accounting adjustments rather than stronger underlying performance.

No changes have been made to FY27 or FY28 forecasts yet.

We choose not to make any change to our FY27 or FY28 forecasts at this stage – despite the stronger than expected year end ACV in FY26 – given, firstly, the lack of any other details regarding the FY26 result and, secondly, the strategy session next week which may provide further details.

Buy recommendation unchanged from Bell Potter

As a result, Bell Potter has retained its buy recommendation. 

However it did lower its price target slightly to $4.75 (previously $4.85). 

From last week's closing price of $3.41, this indicates a healthy upside potential of 39%. 

The net result is a modest 2% decrease in our TP to $4.75 and we maintain our BUY recommendation. Catapult remains our preferred mid cap exposure in the tech sector.

Bell Potter isn't the only broker with a positive outlook on Catapult shares. 

9 analysts forecasts via TradingView have an average one year price target of $6.11. 

This indicates approximately 79% upside from current levels. 

The post What's Bell Potter's updated view on Catapult shares after its earnings results? appeared first on The Motley Fool Australia.

That doesn't remove the risk. But it does change the opportunity.

Here are three ASX tech stocks I think are looking like bargains at current levels.

Catapult Sport Ltd (ASX: CAT)

Catapult operates in a technology niche that continues to expand. It provides performance analytics and wearable technology to professional sports teams around the world.

What stands out to me is how embedded its products are within elite sport. Teams rely on its data to manage performance, reduce injury risk, and gain a competitive edge. That creates a level of stickiness that is difficult to replicate.

The ASX tech share has also been shifting toward a more recurring revenue model, which is supporting strong growth. In fact, this week, Catapult announced that it expects to report annualised contract value (ACV) growth of 27% to 28% in FY26 to US$133 million to US$134 million.

So, after a significant share price pullback, I think a buying opportunity has opened up for investors.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global has been one of the most heavily sold-off tech shares on the ASX.

Much of that appears to be driven by concerns around AI and how it could impact software platforms. But I think that risk is being misunderstood.

WiseTech is integrating AI into its CargoWise platform, using it to automate workflows and improve efficiency across global logistics. Rather than replacing the business, I believe AI could strengthen its market position.

With a deeply embedded platform, global reach, and strong recurring revenue, I still see this as a high-quality company trading at a far more reasonable price than it was a year ago.

SiteMinder Ltd (ASX: SDR)

Lastly, SiteMinder adds exposure to the global travel and hospitality technology space. Its platform helps hotels manage bookings, distribution channels, and revenue, connecting them to a wide range of online travel agencies.

What I like here is the scale of the opportunity. The accommodation sector is still digitising, and SiteMinder is positioned as a key infrastructure layer within that ecosystem.

As more hotels move toward integrated platforms, the company has the potential to grow both its customer base and revenue per user.

Like many growth stocks, it hasn't been spared from the recent AI sell-off. But that could be an overreaction, especially with management working on an AI agent solution for its platform that leverages the technology and doesn't get replaced by it.

Foolish Takeaway

Sell-offs in tech can be uncomfortable, but they can also create opportunities to buy quality businesses at more attractive prices.

Catapult, WiseTech, and SiteMinder are all operating in growing industries, with business models that have the potential to scale over time.

For patient investors, I think these are the types of ASX tech shares that could be worth buying and holding through the volatility.

The post 3 bargain ASX tech shares I'd buy right now 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:

Catapult Sports Ltd (ASX: CAT)

The Catapult Sports share price is up 3% to $3.67. This follows the release of a trading update from the sports technology solutions company this morning. Catapult revealed that it expects its annual contract value (ACV) for FY 2026 to be in the range of US$133 million to US$134 million with low churn. This represents reported year-on-year growth of 27% to 28% on a constant currency basis. In addition, EBITDA is expected to grow by approximately 50% year-on-year as its profitability continues to outpace its strong top-line growth. This reflects the accelerating operating leverage in Catapult's business model and the company's continued discipline in managing its fixed and variable cost base.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 5.5% to $4.50. This is despite there being no news out of the counter-drone technology company. However, with the war in the Middle East demonstrating just why its technology is growing in importance, it seems that some investors are betting on DroneShield's strong growth continuing over the medium term.

Infratil Ltd (ASX: IFT)

The Infratil share price is up over 2.5% to $9.49. This morning, this infrastructure investment company upgraded its guidance for FY 2027. Infratil now expects FY 2027 EBITDAF of A$680 million to A$720 million. This is up from its previous guidance of ~A$660 million. For FY 2026, it now expects to achieve the lower end of its A$390 million to A$400 million EBITDAF guidance range. Infratil's CEO, Jason Boyes, commented: "Our focus is on supporting CDC to deliver more capacity to meet the growing demand for data centre space across Australasia. Infratil, along with CDC's other major shareholders, recently provided A$500 million in equity funding to support the acceleration of CDC's construction programme."

Qoria Ltd (ASX: QOR)

The Qoria share price is up 3.5% to 30 cents. This follows the release of an update on the cyber safety company's proposed merger with Aura. Qoria provided an update on Aura's performance for the two months ended 28 February. It revealed that Aura's annual recurring revenue reached US$238 million, which is up 30% year-on-year, with total subscribers up 35% to 1.3 million. In light of this, the Qoria board continues to unanimously recommend the proposed merger.

The post Why Catapult, DroneShield, Infratil, and Qoria shares are charging higher today appeared first on The Motley Fool Australia.

At the time of writing, the ASX tech stock is up 11% to $3.95.

This compares favourably to the ASX 200 index, which is trading largely flat today.

Why is this ASX tech stock surging?

Investors have been fighting to get hold of the sports technology solutions company's shares this morning following the release of a trading update before the market open.

According to the release, Catapult expects its closing annual contract value (ACV) for FY 2026 to be in the range of US$133 million to US$134 million with low churn. This represents reported year-on-year growth of 27% to 28% on a constant currency basis.

The ASX tech stock notes that this includes ACV that is being contributed by the acquisitions of IMPECT and Perch, and is consistent with its track record of strong, durable subscription revenue growth.

However, management revealed that the integration of those acquisitions has placed temporary capacity pressure on Catapult's finance and collections function.

As a result, a portion of second-half receivables that would have ordinarily been collected before 31 March is expected to be received in early FY 2027. This will result in a materially higher closing accounts receivable balance relative to a year earlier.

As a result, the ASX tech stock expects FY 2026 free cash flow (excluding transaction costs) to only be between US$5 million to US$6 million. This is down from US$8.6 million in FY 2025.

Nevertheless, following the successful capital raise and acquisition of IMPECT, Catapult expects to end FY 2026 with a cash balance of approximately US$50 million and no debt.

Strong earnings growth expected in FY 2026

The ASX tech stock advised that it is expecting its FY 2026 management EBITDA, which is a non-IFRS measure of operating profitability, to grow by approximately 50% year-on-year as its profitability continues to outpace its strong top-line growth.

Management highlights that this expected performance reflects the accelerating operating leverage in Catapult's business model and the company's continued discipline in managing its fixed and variable cost base.

In light of Catapult's management EBITDA continuing to expand, the company expects its FY 2026 Rule of 40 metric to improve on the record 33% that it achieved in the first half of the financial year.

The post Which ASX tech stock is surging 11% on strong trading update? appeared first on The Motley Fool Australia.

What did Catapult Sports report?

• FY26 closing ACV expected at US$133–134 million, up 27–28% year-on-year (constant currency)
• Management EBITDA anticipated to rise ~50% year-on-year
• Free Cash Flow (excluding transaction costs) forecast at US$5–6 million
• Cash balance at year-end around US$50 million, with no debt
• Temporary increase in accounts receivable, with some 2H collections to be received early FY27
• Recent acquisitions, IMPECT and Perch, contributed to growth

What else do investors need to know?

The company flagged a higher-than-usual closing accounts receivable balance, mainly driven by timing of collections following the recent acquisitions. Management expects these receivables will be collected early in FY27, and confirmed this was a temporary impact stemming from integrating new businesses.

Catapult's capital raise and acquisitions have strengthened its position, allowing the business to finish the year with a healthy US$50 million cash balance and no debt. Investors can expect the full FY26 results announcement on 20 May 2026.

What's next for Catapult Sports?

Looking ahead, Catapult sees its strong subscription revenue and expanding operating leverage supporting further growth. The company plans to continue integrating its new acquisitions, delivering on cost discipline, and driving innovation in sports technology.

Management's focus will be on optimising performance, collecting outstanding receivables, and leveraging its global footprint across more than 5,000 teams and 100+ countries.

Catapult Sports share price snapshot

Over the past 12 months, Catapult Sports shares have declined 2%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Catapult Sports delivers strong FY26 growth and profitability appeared first on The Motley Fool Australia.

A group of high-quality ASX tech stocks, many of them with global businesses, all falling heavily at the same time.

But that's exactly what we're seeing right now.

Driven by concerns around interest rates, valuation resets, and, more recently, artificial intelligence (AI) disruption, a number of well-known names have been pushed 35% to 60% below their highs.

That doesn't automatically make them buys. But it does make them worth a closer look.

Here are five I think stand out.

Xero Ltd (ASX: XRO)

Xero has gone from market darling to market concern in a relatively short period of time. But I still see a global accounting platform with strong positioning among small and medium-sized businesses.

It continues to grow its subscriber base and expand internationally, particularly in markets like the UK and North America.

The key for me is that accounting software is deeply embedded in operations. Once a business is using Xero, switching is difficult.

The share price may be down significantly, but the long-term growth opportunity still looks intact.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is a very different kind of tech company. It operates in medical imaging software, supplying hospitals and healthcare providers with high-performance diagnostic tools.

What stands out is its reputation and track record. The company has consistently won large contracts, particularly in the United States.

Healthcare isn't a short-term trend. Demand for imaging and diagnostics continues to grow, supported by ageing populations and increasing healthcare needs.

After a sharp share price decline, I see an opportunity to buy a high-quality business with strong long-term potential at a better price.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is one of the quieter success stories on the ASX. It provides enterprise software to government agencies, universities, and large organisations, with a strong focus on recurring revenue.

What I like here is the consistency. The company has steadily grown its earnings over time while transitioning customers to its cloud platform.

That creates visibility and predictability, which is valuable in any environment.

It may not attract the same attention as some other tech names, but I think its reliability is part of what makes it appealing.

Life360 Inc. (ASX: 360)

Life360 brings a different type of growth exposure. Its app connects families through location sharing and safety features, and it has been building a large global user base.

The business is now focused on monetisation, converting users into paying subscribers, and expanding its product offering.

There's still execution risk here, particularly with recent acquisitions, but I think the opportunity is significant if it continues to scale successfully.

With the share price down heavily, the market appears to be questioning that path, which is where I think potential upside can emerge.

Catapult Sports Ltd (ASX: CAT)

Catapult sits at the heart of sports and technology. It provides performance analytics and wearable technology to professional sports teams around the world.

What I find interesting is its niche positioning. It has built strong relationships across elite sports leagues like the NBA, EPL, and NFL, which gives it a level of defensibility.

The business has been moving toward a recurring revenue model, which could improve stability over time.

Like many ASX tech stocks, it hasn't been spared from the recent sell-off, but the long-term opportunity in sports analytics remains.

Foolish Takeaway

When markets turn against a sector, everything tends to fall together.

Right now, ASX tech looks to be in that phase, with Xero, Pro Medicus, TechnologyOne, Life360, and Catapult shares all being hit hard despite their long-term growth potential.

There's no guarantee of a quick rebound. But for patient investors, I think this could be one of those once-in-a-decade periods where high-quality stocks are available at far more reasonable prices.

The post This could be a once-in-a-decade opportunity to buy cheap ASX tech stocks appeared first on The Motley Fool Australia.

In fact, ASX small-cap shares outperformed the larger companies by almost 2.5 times in 2025. 

The S&P/ASX All Ords Index (ASX: XAO) delivered total returns (capital growth plus dividends) of 10.56% last year.

This index contains the 500 largest ASX listed companies, and accounts for roughly 84% of Australia's equity market. 

Meanwhile, the S&P/ASX Small Ords Index (ASX: XSO), which tracks companies ranked 101 to 300 by market cap, delivered a total return of 24.96%.

However, it appears the pendulum has now swung the other way in 2026. 

Since the start of the year, the Small Ords Index has dropped approximately 12%. 

This fall is significantly further than the All Ords Index which is down roughly 3% in the same period. 

Why are they struggling in 2026?

A small-cap stock typically has a market capitalisation ranging from a few hundred million to $2 billion.

Subsequently, these companies are much more sensitive to interest rates than bigger companies.

One reason for this is that these stocks rely more on debt and external funding. 

Additionally, many are not yet profitable, which means valuations depend heavily on future growth.

In 2026, Australia has seen elevated inflation, causing the RBA to deliver two interest rate hikes.

It seems markets are now repricing for tighter financial conditions, causing smaller companies to be hit disproportionately. 

In essence, the Small Ords Index isn't falling because "small caps are broken" – it's falling because:

• Macro conditions are flipping against them
• Liquidity is tightening
• Risk appetite dropped suddenly.

Is there any upside?

With many small-caps falling throughout the start of 2026, investors might be considering swooping in on what could appear to be a relative value. 

Some notable ASX small-caps that have fallen include: 

• Web Travel Group Ltd (ASX: WEB)
• Catapult Sports Ltd (ASX: CAT)
• Elders Ltd (ASX: ELD). 

These companies have drawn some positive outlooks from brokers, however it's important to consider that in the short term, returns could be minimal, if these economic conditions persist.

Alternatively, if investors are aiming for a more broad, diversified entry into the small-cap market, there are several ASX ETFs to consider: 

• iShares S&P/ASX Small Ordinaries ETF (ASX: ISO) – designed to track the performance of small-capitalisation Australian equities included in the S&P/ASX 300 index, but not in the S&P/ASX 100 index.
• Vanguard MSCI Australian Small Companies Index ETF (ASX: VSO) – Tracks the MSCI Australian Shares Small Cap Index. 
• VanEck Vectors Small Companies Masters ETF (ASX: MVS) – offers exposure to a diversified portfolio of roughly 61 ASX-listed small companies. 

The post What's happened to ASX small-caps in 2026? appeared first on The Motley Fool Australia.