Despite several stints in green territory this morning, the ASX 200 ended up closing in the red by the time trading wrapped up this afternoon, dropping 0.1%. That leaves the index at 8,525.7 points.

This miserly day for Australian investors follows a far more optimistic morning on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) was in fine form, rising by 0.66%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) did even better, gaining a rosy 0.77%.

But time to return to the local markets now and see how today's falls were distributed amongst the different ASX sectors today.

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

Four ASX shares that are not letting that hold them back 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.

Upwards revision

In a statement to the ASX on Thursday, the company said that it had previously forecast that CDC's FY25 EBITDAF would double to about $660 million in FY27.

Infratil now estimates that this figure will increase to $680 million to $720 million "based on the updated outlook for delivery of existing contracted capacity and the expectation for continued strong demand''.

The company also said that FY26 EBITDAF was expected to come in at the lower end of the guidance range of $390 million to $400 million, "reflecting the timing of existing contracted capacity that has been weighted toward the back end of FY26''.

Infrastructure of the future

CDC Chief Executive Officer Greg Boorer said recent geopolitical developments have highlighted Australasia's secure position and competitive differentiation as a strategic location for data centres.

He added:

We attended the largest AI event in the United States last week, and one of the key takeaways is that large-scale intelligence generation will be critical to future economic prosperity. The good news is that Australasia is globally front of mind as a preferred secure option for large-scale intelligence generation. As a result, we're having even more conversations with our strategic customers about their increased capacity needs, and we're continuing to build new intelligence generation capacity as fast as we can to meet that increasing demand.

Infratil said CDC had the largest pipeline of data centre capacity in Australia, with 18 operational sites and another five under construction.

The company added:

An important contributor to CDC's ability to fast track development is the minimal water usage enabled by its closed-loop water cooling system. CDC added almost 200 megawatts of built operating capacity in the December quarter.

Infratil Chief Executive Officer Jason Boyes said data centre demand remained very strong.

He added:

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.

The Infratil earnings update coincided with an investor tour of CDC's Eastern Creek campus, where two additional data centres are nearing operational status.

Infratil shares were 5.2% higher in early trade at $9.72.

The company was valued at $9.23 billion at the close of trade on Wednesday.

The post Which data centre operator just upgraded its earnings outlook? appeared first on The Motley Fool Australia.

What did Infratil report?

• Upgraded FY27 EBITDAF guidance to A$680–$720 million (previously ~A$660 million)
• FY26 EBITDAF expected at lower end of A$390–$400 million, due to timing of contracted capacity
• A$500 million equity raise completed to support accelerated growth at CDC
• Bank debt upsizing to A$2.1 billion expected by March 2026
• Strong pipeline with 18 operational CDC data centres and five under construction

What else do investors need to know?

CDC, Infratil's Australasian data centre business, continues to benefit from robust demand for secure, large-scale data centre infrastructure—especially supporting AI and cloud workloads. Two new data centres at CDC's Eastern Creek campus are nearing operational status, which will significantly boost available capacity.

The business maintains its position as the largest data centre operator in Australasia, with market-leading water efficiency thanks to closed-loop cooling systems. Minimal water use has enabled CDC to add almost 200 megawatts of capacity in the latest quarter, while maintaining environmental credentials.

What did Infratil management say?

Infratil 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.

What's next for Infratil?

Looking ahead, Infratil plans to keep expanding CDC's footprint, meeting ongoing demand for secure data centre capacity across Australia and New Zealand. The higher formal EBITDAF guidance for FY27 reflects management's confidence in CDC's strong contract pipeline and expectations for continued growth in digital infrastructure.

Investment in skills and sustainable technology will remain a priority, alongside developing new sites and supporting the transition to clean energy.

Infratil share price snapshot

Over the past 12 months, Infratil shares have declined 6%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Infratil lifts CDC outlook and FY27 earnings guidance appeared first on The Motley Fool Australia.

By comparison, the S&P/ASX 200 Index (ASX: XJO) rose 6.8% and produced total returns of 10.32%.

ASX financials were the third-best performer among the 11 market sectors last year.

Looking ahead, here are five ASX financial shares that the experts are backing for price growth in 2026.

5 ASX financial shares with new year buy ratings

Hub24 Ltd (ASX: HUB)

The Hub24 share price rose by 38% to finish 2025 at $96.25 per share.

Bell Potter has a buy rating on Hub24 shares with a price target of $125.

On Thursday, the investment and superannuation platform provider is trading at $95.53 per share, up 2%.

The broker's price target suggests potential gains of 31% in the new year.

Infratil Ltd (ASX: IFT)

The Infratil share price fell 15.8% in 2025 to close at $9.74 on 31 December.

Today, Infratil shares are $9.88 apiece, up 0.5%.

Morgans has just initiated coverage on this ASX financial share with an accumulate rating.

The broker has put a price target of $11.30 on the New Zealand-based investment company.

This suggests a potential 14% upside over the new year ahead.

Morgans said:

Infratil (IFT) is a high quality, concentrated structural growth investor targeting 11-15% pa post fee returns. IFT's investors have enjoyed c.18% pa returns over the last ~30 years.

Assuming delivery of target returns, post fees the Net Asset Value (NAV) should nearly double over the next five years and create substantial value for equity holders.

The share price is currently trading at a 30% discount to NAV.

Generation Development Group Ltd (ASX: GDG)

Retirement and investment solutions provider Generation Development Group was the best performer of the financials sector in 2025.

The Generation Development Group share price rose 66% to finish the year at $5.89.

Macquarie gives Generation Development Group shares an outperform rating with a 12-month price target of $6.70.

Today, the ASX financial share is trading for $5.90, up 0.3%.

The broker's target implies a potential upside of 14% for investors who buy the stock today.

Navigator Global Investments Ltd (ASX: NGI)

Navigator Global Investments shares increased 72% last year to close at $2.96 on 31 December.

Ord Minnett has a buy rating on this ASX small-cap financial share with a price target of $3.50.

Today, the alternative asset manager is trading at $2.98 per share, up 4.9%.

The broker's price target suggests potential gains of 17% in the new year.

Challenger Ltd (ASX: CGF)

Challenger shares also performed strongly last year, rising 57% to finish the year at $9.41 apiece.

Citi has a buy rating on this ASX financial share with a price target of $10.25.

Today, the Challenger share price is $9.39, down 0.2%.

The broker's price target implies a potential upside of 9% for 2026.

The post 5 ASX financial shares to buy in 2026 appeared first on The Motley Fool Australia.

The S&P/ASX 200 Financials (ASX:XFJ) index dropped almost 9% from November 10 to December 1. 

This may have created some buy low opportunities in the sector, and one ASX financials stock that fits the bill is Infratil Ltd (ASX: IFT). 

It is down approximately 12% in 2025, which includes a drop of more than 8% since November 12.

The company is engaged in the ownership of an infrastructure business, which provides services to individuals and communities.

The team at Morgans recently initiated coverage on this financials stock. This included an accumulate rating and a healthy upside following the stock price fall in the past month or two. 

Receives investment grade credit rating

The positive report from Morgans came a day after S&P Global Ratings assigned its 'BBB+' long-term and 'A-2' short-term issuer credit ratings to Infratil on December 22.

According to S&P Global, the outlook on the long-term rating is stable. 

A report from S&P Global said the rating on Infratil reflects its stable funding, underpinned by substantial permanent capital, and its access to committed bank facilities through many funding relationships. 

It did note the company's material single-name concentration risk and the illiquid nature of the asset portfolio partially offset these strengths.

Morgans view on this financials stock

In a note out of the broker last week, Morgans said Infratil is a high quality, concentrated structural growth investor targeting 11-15% per annum post fee returns. 

The broker said investors have enjoyed 18% per annum returns over the last 30 years. 

Assuming delivery of target returns, post fees the Net Asset Value (NAV) should nearly double over the next five years and create substantial value for equity holders. 

Morgans also said the share price is currently trading at a 30% discount to NAV. 

Assuming a return to a more normalised 20% discount would lift the share price by ~10% and from there NAV needs to lift for the share price to lift. 

Both seem likely, in our view. We initiate coverage with an ACCUMULATE rating and $11.30 target price. This report is the first part of a series that reviews IFT's assets in more detail.

Price target upside 

This ASX financials stock closed trading pre-christmas at $10 per share. 

Based on the target price of $11.30, this indicates an upside of 13%. 

Elsewhere, TradingView has a one year price target of $11.61 which indicates roughly 16% upside. 

Online brokerage platform Selfwealth lists this financials stock as undervalued by 17%. 

The post Morgans just initiated coverage on this financials stock tipping strong upside appeared first on The Motley Fool Australia.

What did Infratil report?

• S&P Global Ratings assigned an inaugural BBB+ investment grade credit rating to Infratil Limited
• The outlook for the rating is stable
• Rating reflects stable funding supported by substantial permanent capital
• Strong track record of investment performance cited by ratings agency
• New rating is a key milestone in Infratil's funding and growth strategy

What else do investors need to know?

Infratil says the investment grade rating is expected to broaden its funding options, improve borrowing terms, and reduce future financing costs. The company's track record over nearly three decades was highlighted as a foundation for the new rating.

The credit rating specifically applies to Infratil as an issuer, and not to its Infrastructure Bonds, which continue to be quoted on the NZX.

What did Infratil management say?

Andrew Carroll, Chief Financial Officer:

It is pleasing that the strength, quality and resilience of Infratil's business and track record has been recognised with a strong investment grade rating. Securing an investment-grade credit rating is a key milestone in Infratil's strategy to broaden funding options, enhance borrowing terms and reduce financing costs. After nearly three decades of strong funding support, Infratil's scale and this rating positions us to access new debt markets and strengthens our capacity for future growth.

What's next for Infratil?

With the investment grade rating in hand, Infratil aims to access new debt markets and further strengthen its funding base. Management believes this enhanced flexibility will help support future expansion and keep financing costs competitive.

The company is expected to continue focusing on its long-term strategy, supported by the ongoing stability and resilience that contributed to the improved credit profile.

Infratil share price snapshot

Over the last 12 months, Infratil shares have declined 15%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Infratil gets investment grade credit rating in funding milestone appeared first on The Motley Fool Australia.

REITs can have various property types in their portfolios, or they might specialise in just one type. 

For example, some focus on commercial real estate, such as offices, hospitals, shopping centres, warehouses, and hotels. 

Others specialise in residential property investment, such as aged care villages and apartment buildings.

Each week, broker Bell Potter provides analysis on the sector, including target prices and recommendations. 

Right now, it appears the broker sees upside after a down month. 

Here is how the broker is viewing the sector right now. 

Underperforming over the last month 

In this week's report, the broker noted that REITs performed well until a stronger-than-expected employment print (unemployment down to 4.3% vs. 4.5% prior and 4.4% consensus) drove the sector down against the broader S&P/ASX 200 Index (ASX: XJO).

Bell Potter said overall, the sector has underperformed over the last month but could be poised for a bounce back.

On this sentiment, we still think the sector is well positioned (return of earnings growth, strong balance sheets, increased cap trans activity and potential for debt-funded accretive acquisitions) and worth bearing in mind 3mth BBSW is only marginally above where it started FY26 (c.3.6%).

The broker highlighted that Infratil Ltd (ASX: IFT) delivered its 1H26 result, reaffirming full-year guidance, but lost ground given prior strong consensus views. 

Other companies that fell last week included:

• Goodman Group (ASX: GMG) down 3%
• HMC Capital (ASX: HMC) lost 4% 
• DigiCo Infrastructure REIT (ASX: DGT) fell 7%

Buy, hold, and sell from Bell Potter

The report from Bell Potter also included target prices and recommendations.

REITs with buy recommendations include:

• Centuria Capital Group (ASX: CNI)
• Goodman Group (ASX: GMG)
• Dexus Convenience Retail REIT (ASX: DXC)
• GDI Property Group (ASX: GDI)
• Healthco Healthcare And Wellness Reit (ASX: HCW)
• Dexus Industria REIT (ASX: DXI)

Of this group, the team at Bell Potter sees the biggest upside for Healthco Healthcare and Wellness Reit (ASX: HCW) and Goodman Group (ASX: GMG). 

The broker sees roughly 37% to 40% upside from current levels. 

The broker has hold recommendations on: 

• HMC Capital (ASX: HMC)
• DigiCo Infrastructure REIT (ASX: DGT)
• Homeco Daily Needs REIT (ASX: HDN)  

Bell Potter has a sell recommendation on Centuria Office REIT (ASX: COF). 

Looking ahead, the broker said feedback from corporates and leading CRE private credit providers points towards potential for margin compression across the sector. 

The post What is Bell Potter's view on REITs? appeared first on The Motley Fool Australia.

The share price decline likely reflects investor caution around tightening earnings guidance and higher capital expenditure forecasts.

What did Infratil report?

Infratil reported proportionate operational EBITDAF of NZ$514 million, up 7% on the prior year, driven by stronger earnings contributions from CDC Data Centres and Longroad Energy in the United States.

Net parent surplus came in at NZ$606 million, a major turnaround from last year's NZ$247 million loss, thanks to revaluation gains at CDC and the sale of its stake in Manawa Energy.

The group's total asset value climbed to NZ$19 billion, up NZ$735 million from March, supported by portfolio revaluations and selective acquisitions.

However, management slightly narrowed full-year guidance for group EBITDAF to NZ$960– NZ$1,000 million, reflecting the impact of recent divestments and adjustments to capital spending.

What did management say?

CEO Jason Boyes said the results demonstrate the company's ability to grow through "the noise of market and regulatory challenges," adding that Infratil's focus now is on simplifying the portfolio and recycling capital into higher-growth assets.

During the half, Infratil:

• Announced the sale of Fortysouth and legacy property assets for $250 million, part of its $1 billion divestment target.
• Increased its holding in Contact Energy Ltd (ASX: CEN) to 14.3% following the Manawa sale.
• Confirmed plans to invest an additional A$250 million in CDC to accelerate capacity expansion in Australia

These moves underline the company's capital discipline but also raise near-term spending needs — a factor that may have unsettled investors today.

Steady dividend

Infratil declared an interim dividend of 7.25 cents per share, matching last year's payout, with a 2% discount on its dividend reinvestment plan. Management guided to a modest 2% increase in the final dividend later this year

At the current share price, this equates to a dividend yield of about 2%, which is relatively modest and perhaps another reason why income investors are sitting on the sidelines.

The bottom line

Infratil's half-year results show a business performing well operationally, with its renewable and digital assets continuing to deliver growth. But with a narrowing outlook, rising capital expenditure, and a rich valuation after a strong year, the market reaction suggests investors are pausing for breath.

For long-term investors, Infratil's diversified exposure to data centres, renewables, and critical infrastructure remains a powerful theme, even if the market's enthusiasm cooled today.

The post Why did Infratil shares fall 7% on Thursday? appeared first on The Motley Fool Australia.

What did Infratil report?

• Acquisition of TECT Holdings' 4.92% stake in Contact Energy for $437.7 million ($8.95 per share)
• Funding split evenly between existing debt and issuance of new Infratil shares ($12.43 per share, 17,605,277 shares)
• Infratil's total holding in Contact Energy to increase from 9.4% to 14.3%
• Follows July sale of Manawa Energy stake for NZ$186 million in cash and Contact shares
• New shares issued to be escrowed until 22 October 2026

What else do investors need to know?

The transaction will see TECT Holdings, formerly Tauranga Energy Consumer Trust, become a shareholder in Infratil as part of the payment consideration. This approach allows Infratil to maintain funding flexibility for future growth without significantly increasing balance sheet leverage.

Infratil's increased investment in Contact comes after the merger of Contact and Manawa Energy, where Infratil exchanged its Manawa stake for cash and shares in Contact. The group says it continues to focus on acquiring and supporting quality infrastructure assets in robust market environments.

What did Infratil management say?

Commenting on the news, Chief Executive Jason Boyes said:

Increasing our investment in Contact is a win-win. Part-funding with new shares preserves flexibility for future growth, while increasing ownership of a strong cashflow-generating business. We know the sector well and look forward to supporting Contact's leadership going forward.

What's next for Infratil?

Looking ahead, Infratil plans to remain an active investor in the Australasian infrastructure sector, with an emphasis on energy assets. By utilising both debt and equity to fund this transaction, management is signalling its intent to pursue further growth opportunities while maintaining prudent capital management.

The company also notes that the new shares issued under this deal will be subject to voluntary escrow restrictions until October 2026, reinforcing a disciplined and long-term approach.

Infratil share price snapshot

Infratil shares have declined 2% over the past year, trailing the S&P/ASX 200 Index (ASX: XJO) which has increased around 9% over the same period.

View Original Announcement

The post Infratil lifts Contact Energy stake with $437m share-funded deal appeared first on The Motley Fool Australia.

The company's shares were trading 6.6% higher by mid-afternoon on Thursday to be changing hands at $11.11.

Infratil told the ASX in an announcement that data centre company CDC, in which it owns a 49.76% stake, was about to announce it had won a new contract involving US chip manufacturing behemoth Nvidia Corp (NASDAQ: NVDA) and Firmus Technologies.

As the company explained:

The first stage of the new partnership is underpinned by approximately 40MW of CDC data centre capacity to deliver innovative AI factory capability. This will be located at a CDC site in Melbourne and is expected to start being delivered by April 2026.

Infratil Chief Executive Officer Jason Boyes said it was a significant milestone for CDC, which was experiencing a surge in demand for its "future-proof" data centre campuses.

It is great to match CDC's homegrown capability in delivering world-leading data centres with the expertise of another Australian hi-tech innovator bringing AI capability to the market. Neocloud providers offer customers a new option for accessing AI factory computing capability. This is an emerging customer segment for CDC and underscores the rapid diversification of data centre demand more generally.

Infratil said it would provide more details on CDC's progress at its half-year results announcement on November 13.

CDC also announced a new 100MW data centre contract in late September, with Mr Boyes saying at the time that the company was on track to double its FY25 earnings by FY27.

Diversified portfolio

Infratil owns a portfolio of investments as well as CDC, in areas such as energy, financial services, and medical imaging.

The company has a target of divesting approximately $1 billion worth of its investments, which will be reinvested in growth drivers such as CDC. In September, the company announced a strategic review of its Australian medical imaging business, Qscan, in which it owns a 57% shareholding. That stake was last valued at NZ$460 million ($407.2 million).

The company, during its recent investor day held in Sydney in September, stated that it aimed to achieve returns of 11% to 15% over a rolling 10-year period.

The company also announced the sale of its 50% stake in RetireAustralia for NZ$328 million ($290.3 million) in August.

Infratil was valued at $10.2 billion as at the close of trade on Wednesday.

The post Which ASX 200 data centre company's shares are surging on Nvidia contract news? appeared first on The Motley Fool Australia.

During the Monday lunch hour, the ASX 200 is down 0.6% amid investor concerns about the escalating trade tensions between the United States and China.

The Infratil share price is down a steeper 1.6% at this same time.

Shares in the New Zealand-based infrastructure investment company, which trades on both the ASX and the New Zealand stock exchange (NZX), are currently swapping hands for $10.64 apiece.

That sees the ASX 200 stock down 3.8% since this time last year and gives it a market cap of $10.4 billion. Longer term, Infratil shares are up 115.0% over five years. Infratil stock also trades on a 1.5% unfranked trailing dividend yield.

And looking to the year ahead, EnviroInvest's Elio D'Amato sees tailwinds building to help Infratil shares outperform (courtesy of The Bull).

Should you buy this ASX 200 stock today?

"Infratil continues to deliver via its infrastructure investments in renewables, digital platforms and critical services located around the world," said D'Amto, who has a buy recommendation on the ASX 200 stock.

"A recent disclosure included a renewables valuation workshop that it presented to investors and analysts in September," he added.

Citing the first reason Infratil shares are a buy, D'Amato said, "It benefits from momentum in the clean energy sector, with markets materially re-rating infrastructure exposed to low carbon assets."

Then there's the company's growth and modest passive income payments.

"It's profitable, growing and pays a small dividend yield," D'Amato noted.

As for the third reason he's bullish on the ASX 200 stock, D'Amato said, "Infratil's balance sheet and scale give it options to back future transitions."

Connecting the dots, he concluded, "We see clear upside, so it merits investors considering a buy."

What's the latest from Infratil?

Atop its exposure to the clean energy sector, Infratil has also been investing heavily in data centres, giving it exposure to the booming growth in artificial intelligence (AI).

On 24 September, the ASX 200 stock announced that its data centre business, CDC, had secured around 100 megawatts (MW) of new contracted capacity. Infratil shares closed up 1.1% on the day and gained another 1.2% the following trading day.

Commenting on the positive growth outlook on the day, Infratil CEO Jason Boyes said:

This announcement provides high visibility that CDC remains on track to double FY25 earnings by FY27. With other contracts signed since May, approximately 95% of forecast lease revenues are now under contract, and we remain confident in contracting the remaining capacity.

The post 3 reasons to buy this $10 billion ASX 200 stock today appeared first on The Motley Fool Australia.

US President Donald Trump announced plans to impose a 100% tariff on semiconductor imports earlier this year, which would have a direct impact on global data centre supply chains.

The news sent data centre share prices tumbling, and it's taken six months to see any type of recovery.

But now it looks like sparks of hope have ignited for the market and its outlook, as Macquarie Group Ltd (ASX: MQG) places an outperform rating on three ASX data centre stocks.

Infratil Ltd (ASX: IFT)

Infratil has majority ownership of CDC Data Centres, a leading Australasian data centre provider, which recently announced that it has secured about 100MW of new contracted capacity. Infratril is dual listed on the ASX and the NZX.

At the time of writing, Infratil shares are 2.56% higher and changing hands for $11.20 a piece. Over the past 12 months, Infratil's shares have climbed 1.08%. On the NZX, the stock is up 2.43% to NZ$12.67.

In a recent note to investors, Macquarie confirmed its outperform rating on the stock and raised its target price to NZ$13.26, up from NZ$12.91 just last week. 

That represents a potential 4.7% upside for investors over the next 12 months.

Nextdc Ltd (ASX: NXT)

The broker is also positive on Nextdc shares. Nextdc is a data centre provider that builds and operates a nationwide network of high-quality, certified data centres in Australia and is expanding internationally. 

At the time of writing, Nextdc shares are 0.89% higher and trading at $16.94 per share. Over the year, the share price is 3.97% lower.

Macquarie has an outperform rating on the shares, and a target price of ​​$20.90, down from $22.30 in August. Despite the target price cut, this still represents a potential 23.4% upside over the next 12 months.

DigiCo Infrastructure REIT (ASX: DGT)

DigiCo is a data centre REIT and developer operating across Australia and North America. 

At the time of writing, DigiCo's share price has jumped 13.92% higher and is trading at $3.11 a piece. Over the year, the share price is 37.8% lower.

Macquarie also has an outperform rating on DigiCo shares, and a target price of $3.90. This represents a potential 25.4% upside for investors.

What does Macquarie have to say about the data centre shares?

Macquarie has a high conviction in the Stargate Global deal and/or government data centre contracted capacity, which is expected to represent around 200-750MW of market demand. 

"A clear hurdle in Australia is IP law, which was a key focus of the Interim Report. Ultimately, Australia is the only AUK/US treaty member without direct contracting with OpenAI," the broker said.

Macquarie also notes that Asian Hyperscalers have returned. Industry conversations flag Bytedance and Tencent have returned to the Australian market for leased capacity. 

The broker added:

Higher density is driving lower unit capex requirements for larger operators. If industry EBITDA per MW holds at ~A$1.5-2.0m per MW, this can drive return expansion. Industry feedback suggests pricing on front book capacity remains higher than the market initially feared. Over time, we think AI capacity is commodity capacity, but in the near-term and with long-term contracts, returns are looking healthy. At the same time, large contracts are driving strong earnings growth relative to history.

The post Macquarie places outperform rating on these 3 ASX data centre stocks appeared first on The Motley Fool Australia.

The broker has released a report on the data centre sector. It says that while 2025 was a big year for the local market, the appetite for new data centres remains strong.

Overall 2025 was a massive year for the local data centre market, with record leasing in Melbourne in particular. This is despite one of the major market customers (Microsoft) being far less active than they have been in the last two years. There is large anticipation of them returning to the leasing market in 2025-26, which likely sets 2026 as another record year building on 2025, which built on 2024.

E&P Capital said it had been bullish on the local data centre market for more than a decade, "and our conviction in this view is as strong as ever".

Stocks to surge higher

Many of the local data centre companies, such as AirTrunk, are unlisted; however, among the ASX-listed companies covered in the report, E&P Capital is predicting solid share price gains.

Its favoured pick from a valuation perspective is Macquarie Technology Group Ltd (ASX: MAQ), which E&P analysts have assigned a valuation of $112 against the current share price of $64.48.

If that level were attained, it would represent a gain of 73.7%.

The broker is also bullish on NextDC Ltd (ASX: NXT) shares, which are trading around the same levels they were a year ago, after being sold down to as low as $9.40 during the past 12 months.

E&P has a price target of $28.66 on NextDC shares, 64.1% higher than the current price of $17.47.

It is also positive on the $1.5 billion Digico Infrastructure REIT (ASX: DGT), which it has valued at $3.61, 31.7% higher than the current price of $2.74.

Least favoured was Infratil Ltd (ASX: IFT), which E&P analysts have valued at $12.19, 9.9% higher than the current share price of $11.09.

We would regard the conclusions of this report as generally bullish for all companies, with continually large growth rates and emerging deeper supply constraints.

E&P analysts say the Melbourne data centre market is expected to remain particularly hot, and will "take off in a way that will not correlate to the local population, with AWS having set up a machine learning hub in the city in 2025 that has led to an order of magnitude change in their activities".

The post Another record year for data centre companies could deliver more than 70% share price gains this broker says appeared first on The Motley Fool Australia.

Over the past 5 years, it has risen 144% at the time of writing.

That's more than triple the S&P/ASX 200 Index (ASX: XJO), which has risen 47% over the same timeframe. 

But, is the ASX 200 company a good buy today? Let's find out

Major news announced

Infratil is a New Zealand-based infrastructure business in the renewable electricity, data centre/telecommunications services, airport, and diagnostic imaging sectors.

According to the company, it targets high-return, long-term investments. The company is externally managed by Morrison.

Yesterday, Infratil announced that its data centre business, CDC, had secured about 100MW of new contracted capacity, with 95% of forecast lease revenues now under contract, highlighting strong demand.

Infratil CEO Jason Boyes said the news provides high visibility that CDC remains on track to double FY25 earnings by FY27. Along with other contracts signed since May, around 95% of forecast lease revenues are now under contract.

Riding the AI wave

When investors think of artificial intelligence (AI)-related companies, it is often US-listed companies that come to mind. 

For example, the likes of Magnificent Seven companies, Nvidia, Microsoft, or Meta Platforms.

However, this ASX 200 stock is a clear beneficiary of ongoing demand from cloud and artificial intelligence customers.

Is the ASX 200 stock a buy?

ASX investors that remain bullish on the future of artificial intelligence and want exposure outside US companies might be interested in Intrafil shares.

While Intrafil has increased significantly over the past five years, it is down 2% for the year to date. Investors may wonder whether this is an attractive entry point.

Following this announcement, in a 24 September research note, Macquarie Group Ltd (ASX: MQG) affirmed its outperform rating.

The broker also increased its price target 4% from NZD$12.47 to NZD$12.91. This upgrade was partly attributed to "guided densification at CDC's MP campus and yesterday's announced increase in contracted FY27 capacity (from 85% to 95%)."

Macquarie cited the following catalysts that could send the stock even higher:

 1) CDC HFY26 result and FY27 guidance update; 2) [monthly] newsletter updates, 3) S&P 200 index post inclusion impact, 4) continued non-core asset sale pricing, and 5) Longroad IV progression post BBBA.

The post Up nearly 150% in 5 years with plans to double data centre profits by FY27, does this ASX 200 stock have further to run? appeared first on The Motley Fool Australia.

What did Infratil report?

• CDC secured approximately 100MW of new contracted capacity.
• About 95% of forecast lease revenues are now under contract following recent deals.
• CDC remains on track to double FY25 earnings by FY27.
• Strong customer demand driven by cloud and AI workloads.

What else do investors need to know?

CDC's ability to contract significant new capacity points to ongoing demand from cloud and artificial intelligence customers. The data centre operator's technological advantage and experience are key factors behind its ongoing success.

Recent contract wins mean nearly all of CDC's forecast lease revenues are now locked in, offering investors strong visibility of future earnings. Infratil reaffirmed its confidence in securing the remainder of its upcoming capacity.

What did Infratil management say?

Infratil CEO Jason Boyes said:

This announcement provides high visibility that CDC remains on track to double FY25 earnings by FY27. With other contracts signed since May, approximately 95% of forecast lease revenues are now under contract, and we remain confident in contracting the remaining capacity.

What's next for Infratil?

Infratil expects CDC to remain at the forefront of the Australasian data centre sector, with a strong pipeline for further growth. The company is focused on meeting the increasing demand for large-scale, future-proof campuses, especially those tailored to the rising needs in artificial intelligence.

Management's outlook remains positive as CDC continues to attract new customers and secure long-term contracts, positioning Infratil for robust earnings growth over the next few years.

Infratil share price snapshot

Intrafil shares have fallen around 1% over the past 12 months, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen approximately 8%.

View Original Announcement

The post Up 143% in 5 years, ASX 200 company secures major new data centre contracts appeared first on The Motley Fool Australia.

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

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

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

But, according to the analysts at Macquarie Group Ltd (ASX: MQG), that underperformance is likely to turn to outperformance in the months ahead.

Both companies have a strong connection to semiconductors, data centres, and the ongoing artificial intelligence (AI) revolution.

Yet both are lagging the recovery in the global semiconductor sector.

The ASX All Ords tech stocks in questions are New Zealand based infrastructure investment company Infratil Ltd (ASX: IFT) and data centre operator and developer NextDC Ltd (ASX: NXT).

In afternoon trade on Monday, NextDC shares are down 1.5% at $14.02. That sees the NextDC share price down 6.7% year to date.

Shares in Infratil, which trades on both the ASX and New Zealand stock exchange, are down 0.4% on the ASX today, trading for $10.55 apiece. That puts the Infratil share price down 7.0% in 2025.

Now, here's why Macquarie forecasts a rebound ahead for both AI related stocks.

Why these ASX All Ords tech stocks could leap higher into 2026

The analysts at Macquarie noted that both NextDC shares and Infratil shares have lagged the recovery in Global Semiconductors off the March lows.

They point out that, "NXT is -22% relative to the PHLX Semi Index, IFT is -18%" despite a strong positive historical correlation of Australian data centres with the PHLX Semi Index.

Citing demand for new data centre capacity in Australia and New Zealand, the broker said, "We see scope for NXT & IFT multiple expansion," adding that both ASX All Ords tech stocks are "trading below +1 standard deviation to the median in the AI era".

Commenting on the rally in semiconductors, Macquarie said:

Nvidia Corporation (NASDAQ: NVDA) produces a specialised China AI chip, the H20, which complied with old US export restrictions. New US export restrictions came into effect in April, ceasing H20 chip sales to China (driving US$2.6b of lost 1Q26 revenue for NVIDIA).

Despite this lost revenue and a US$4.5b inventory write-off, NVIDIA 1Q26 H20 revenues were US$4.6b. These restrictions were recently relaxed with media speculation that this is part of a US-Sino rare earths deal and is restarting H20 sales.

Although ANZ Data Centres have no exposure to China, NXT & IFT are yet to recover despite a strong demand environment and Google & Oracle's increased leasing activity in Australia.

Connecting the dots, Macquarie expects both ASX All Ords tech stocks to deliver positive gains in the year ahead.

The broker has an outperform rating on Infratil, with a 12-month price target (for its New Zealand listing) of NZ$12.32. That's 6.6% above current levels.

Macquarie expects significantly more gains from NextDC shares, with an outperform rating and a 12-month price target of AU$22.10 a share. That represent a potential upside of 57.6% from current levels.

The post Why Macquarie forecasts a big rebound for these 2 quality ASX All Ords tech stocks appeared first on The Motley Fool Australia.