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

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) continues to be the most shorted ASX share after its short interest remained flat at 15.3%. Short sellers appear to have doubts that the pizza chain operator's turnaround strategy will succeed.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 14.6%, which is up since last week. Unfortunately for short sellers, this radiopharmaceuticals company's shares stormed higher last week after the US FDA accepted its NDA for Pixclara
• Polynovo Ltd (ASX: PNV) has 14% of its shares held short, which is down since last week. This high level of short interest may be due to valuation concerns. The medical device company's shares are trading on high earnings multiples.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.7%, which is down week on week. Unfortunately for short sellers, this quick service restaurant operator's shares rocketed last week after it reported a big improvement in its performance.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 12.5%. This wine giant is struggling due to consumer spending pressures and distributor disruption.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 12%, which is up slightly week on week. Short sellers may believe that travel demand could be impacted by the Middle East conflict.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.7%, which is down since last week. This uranium miner's production outlook beyond 2026 is uncertain and attracting short sellers.
• Nanosonics Ltd (ASX: NAN) has short interest of 11.6%, which is down slightly since last week. This infection prevention technology company's recent performance has been disappointing. Short sellers don't appear confident a change is coming.
• DroneShield Ltd (ASX: DRO) has 11.5% of its shares held short, which is up since last week. Last week, this counter drone technology company announced the sudden exit of its CEO and chair.
• Zip Co Ltd (ASX: ZIP) has entered the top ten with short interest of 11.2%. Later this week, the buy now pay later provider will be releasing its third-quarter update. Short sellers appear to believe it could disappoint.

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

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

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) continues its run as the most shorted ASX share after its short interest rose slightly to 15.3%. It seems that short sellers are betting against the pizza chain operator's turnaround strategy.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 14.3%, which is down slightly since last week. This radiopharmaceuticals company failed to gain FDA approval for a couple of its therapies last year. Short sellers don't appear confident that 2026 will be any better despite a recent resubmission.
• Polynovo Ltd (ASX: PNV) has short interest of 14.2%, which is flat since last week. This may be due to valuation concerns with the medical device company's shares trading on high earnings multiples.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 14.1%, which is up week on week. This quick service restaurant operator's shares have fallen heavily over the past 12 months due to their premium valuation and concerns that its US expansion could be a failure. The US was supposed to be its largest growth opportunity.
• Boss Energy Ltd (ASX: BOE) has short interest of 12.1%, which is up again since last week. There are major concerns over this uranium miner's production outlook beyond 2026.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest fall again to 11.6%. This wine giant is battling consumer spending pressures and distributor disruption. Short sellers appear to believe it will get worse before it gets better.
• Nanosonics Ltd (ASX: NAN) has entered the top ten with short interest of 11.8%. This infection prevention technology company's performance has underwhelmed in recent times. It seems that short sellers aren't confident a change is coming.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 11.8%, which is up week on week again. Short sellers have been loading up on the travel agent's shares since the Middle East conflict. There are concerns it could have a negative impact on travel markets.
• DroneShield Ltd (ASX: DRO) has 11.4% of its shares held short, which is up since last week. Short sellers appear to think this counter drone technology company's shares are overvalued after surging over the past 12 months.
• Lotus Resources Ltd (ASX: LOT) has short interest of 10.2%. This uranium producer is one of a number of stocks in the industry being targeted by short sellers, with several sitting just outside the top ten.

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

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

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) continues to be the most shorted ASX share with short interest of 16%. This is up week on week. Short sellers appear doubtful that the struggling pizza chain operator's turnaround strategy will be a success.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 15.3%, which is up again since last week. This radiopharmaceuticals company has been struggling with FDA approvals. It seems that short sellers don't believe regulators will be approving its therapies any time soon.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise again to 15.1%. This wine giant has been battling very tough trading conditions, with consumers focusing on value rather than its premium wines.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.4%, which is down week on week. This may be due to the burrito seller struggling the United States market, which was supposed to be its largest growth opportunity.
• Polynovo Ltd (ASX: PNV) has short interest of 13.3%, which is up again since last week. This medical device company's shares trade with a premium valuation.
• Nanosonics Ltd (ASX: NAN) has 11.7% of its shares held short, which is up week on week again. This infection prevention company's performance has been underwhelming in FY 2026, with profit before tax falling 3% during the first half.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.2%, which is down since last week. Short sellers continue to close positions in the uranium producer, which was the most shorted ASX share for much of 2025.
• IDP Education Ltd (ASX: IEL) has 10.7% of its shares held short, which is down week on week again. Short sellers have been targeting this student placement and language testing company due to unfavourable changes to visa rules in key markets.
• Lynas Rare Earths Ltd (ASX: LYC) has short interest of 10.5%, which is flat week on week. This is likely due to valuation concerns after the rare earths producer's shares rocketed over the past 12 months.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.3%, which is up week on week. There are concerns that the travel agent won't deliver on its revenue margin targets, especially given how the war in the Middle East could impact travel markets.

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

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

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Domino's Pizza Enterprises Ltd (ASX: DMP) is the most shorted ASX share with short interest of 15.6%. It appears that short sellers believe the struggling pizza chain operator's turnaround strategy will not be a success.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 14.8%. This wine giant has been battling very tough trading conditions. Short sellers may not believe a change is coming in the near term.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 14.2%, which is up since last week. This radiopharmaceuticals company has been facing delays with FDA approvals. Short sellers don't appear confident that regulators will be approving its therapies any time soon.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is up week on week. This burrito seller continues to struggle and make a loss in the United States market, which was supposed to be its largest growth opportunity.
• Polynovo Ltd (ASX: PNV) has short interest of 13%, which is up since last week. This medical device company's shares trade on sky-high earnings multiples.
• Nanosonics Ltd (ASX: NAN) has 11.4% of its shares held short, which is up week on week. Last month, this infection prevention company posted a 3% decline in profit before tax during the first half.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.4%, which is down significantly since last week. With the uranium producer's shares down 65% since the start of July on production concerns, some short sellers may be buying back shares to lock in their gains.
• IDP Education Ltd (ASX: IEL) has 10.8% of its shares held short, which is down week on week. This student placement and language testing company has been battling changes to visa rules in key markets.
• Lynas Rare Earths Ltd (ASX: LYC) has short interest of 10.5%, which is up since last week. This may be due to valuation concerns and the rare earths producer's shares rocketed over the past 12 months.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 9.7%, which is down week on week. There are concerns that the travel agent won't deliver on its revenue margin targets.

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

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

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Boss Energy Ltd (ASX: BOE) remains the most shorted ASX share with short interest of 16.1%, which is down since last week. There are concerns over this uranium miner's production outlook.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.6%. Short sellers appear to believe the struggling pizza chain operator's turnaround strategy will fail. Last month, it reported a 2.5% decline in same store sales during the first half.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise to 14.4%. This wine giant has been battling very tough trading conditions. Short sellers may not believe a change is coming in the near term.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.4%, which is down week on week. This burrito seller's shares crashed last month in response to the release of a disappointing half-year result. It continues to make a loss in the United States, which was supposedly its largest growth opportunity.
• Polynovo Ltd (ASX: PNV) has short interest of 12.9%, which is up since last week. This medical device company could have been targeted due to its lofty valuation.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12.4%, which is flat since last week. This radiopharmaceuticals company has been facing delays with FDA approvals.
• IPH Ltd (ASX: IPH) has short interest of 12.3%, which is up week on week. This intellectual property services company has been battling weaker volumes and market share losses.
• IDP Education Ltd (ASX: IEL) has 11.8% of its shares held short, which is up week on week. Changes to visa rules in key markets have weighed on sentiment and this student placement and language testing company's performance.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 10.8%, which is up week on week. There are concerns that the travel agent won't deliver on its revenue margin targets.
• Nanosonics Ltd (ASX: NAN) has entered the top ten with short interest of 10.3%. Last month, this infection prevention company posted a 3% decline in profit before tax during the first half. Short sellers may believe this trend will continue.

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

Investors heavily exited their positions after the company released its 2026 half-year result.

As a result, Nanosonics shares dropped 9.89%. 

It is now trading at a 52-week low, closing yesterday at $3.28. 

What did the company report?

Nanosonics is an Australian healthcare company specialising in infection prevention.

Yesterday, the company reported for FY26 H1: 

• Total revenue of $102.2 million, up 9% on prior corresponding period (pcp)
• Recurring revenue of $75.7 million, up 9% on pcp, and capital revenue of $26.5 million, also up 9% on pcp
• EBIT of $8.4 million, down 3% on pcp.

Commenting on the results, Michael Kavanagh, Chief Executive Officer and President of Nanosonics said: 

The first half marked the successful launch of our next generation trophon technologies including trophon3 and the trophon2 Plus software upgrade package. Customer feedback to date has been highly encouraging particularly in relation to the workflow enhancements and digital capabilities.

However, it seems investors were not as convinced, as Nanosonics shares slumped nearly 10% following the announcement. 

What are experts saying about Nanosonics shares?

With Nanosonics shares trading at a 52-week low, it could appear to be a buy low opportunity. 

However a new report from Bell Potter indicates prospective investors should proceed with caution. 

Following the results yesterday, the broker said the stock is oversold and the current market price represents a reasonable entry point.

With that being said, the broker has a hold recommendation on Nanosonic shares. 

Bell Potter commented that the US business performed strongly, delivering double-digit growth in both capital equipment and consumables.

However, total revenue did not grow compared to the previous half, which is the first time this has happened since the end of COVID.

This slowdown was mainly due to currency headwinds and slower growth in consumable sales. 

Growth in ex US markets is wafer thin, hence all the growth must be generated from the US market which faces currency headwinds and sluggish demand growth in consumables.

Based on this guidance, Bell Potter also lowered its price target to $3.60 (previously $4.10). 

From yesterday's closing price, that indicates approximately 9.8% upside. 

The stock is now trading at near 1 year lows with EV/Rev ~4.1x, which is as low as it has been for some time. Our earnings forecasts for FY26 – FY28 have been impacted by the stronger A$.

Elsewhere, estimates from analysts via TradingView indicate a more optimistic outlook for Nanosonics shares.

Analysts have an average one year price target of $4.54, which indicates approximately 38% upside.

The post What are experts saying about Nanosonics shares after crashing 10% on earnings results? appeared first on The Motley Fool Australia.

These are three stocks I'd be comfortable backing at the moment.

Zip Co Ltd (ASX: ZIP)

Zip Co is an ASX share I think the market has been overly harsh on.

The share price has been dragged down alongside the broader sell-off in tech and fintech, even though Zip itself has been doing the hard work operationally. It's no longer loss-making, cash flow has improved materially, and management has been far more disciplined around costs and credit.

What I like most is that Zip is still growing, but now with a much clearer focus on profitability rather than headline user numbers. If sentiment toward growth stocks improves even modestly, I think Zip could re-rate meaningfully from current levels.

Nanosonics Ltd (ASX: NAN)

Nanosonics is a higher-risk ASX share pick, but one I think has genuine upside if execution improves.

The medical device company already has a strong installed base with its trophon products, and that creates a recurring revenue stream through consumables and upgrades. On top of that, the approval of newer products like trophon3 and the CORIS system gives Nanosonics multiple shots at reigniting growth over the next few years.

The share price reflects a lot of scepticism right now. For me, that's exactly why it's interesting. If adoption of these newer platforms plays out as management expects, today's valuation could end up looking overly pessimistic.

Catapult Sports Ltd (ASX: CAT)

Catapult Sports is the kind of niche technology business I think about owning when markets are nervous.

Catapult operates in elite sports performance and analytics, an area that continues to grow as teams become more data-driven. Its software is deeply embedded once adopted, which supports high customer retention and recurring revenue.

The business has also been steadily improving margins and cash generation, which matters far more to me now than rapid top-line growth alone. With the share price well off its highs, I think Catapult offers an appealing mix of long-term relevance and near-term recovery potential.

How I'd think about the split

With $2,000, I'd be comfortable splitting the investment roughly evenly across these three ASX shares. That gives exposure to fintech, healthcare technology, and sports analytics without relying on a single outcome.

All three carry risk, but they're risks I think are already reflected in the share prices. For me, February looks like a reasonable time to start building or adding to positions like these.

The post Where I would invest $2,000 in ASX shares in February appeared first on The Motley Fool Australia.

If I were looking to add a small allocation to higher-risk, higher-reward opportunities heading into February, these are three ASX stocks I would be seriously considering.

Catapult Sports Ltd (ASX: CAT)

Catapult is a leading provider of wearable technology and software platforms that are now embedded across many of the world's top sports teams. This includes Manchester United, Kansas City Chiefs, Cricket Australia, and Golden State Warriors.

The higher-risk element comes from valuation sensitivity and reliance on continued subscription growth. The reward lies in Catapult's operating leverage. As revenue grows, margins have the potential to expand meaningfully, particularly as the company shifts further toward software-led earnings.

If Catapult continues to execute on cost discipline while growing its installed base, I think even modest beats on expectations could have an outsized impact on its share price.

DroneShield Ltd (ASX: DRO)

DroneShield is firmly in the high-risk, high-reward category. Its technology addresses counter-drone detection and defence, a market that has expanded rapidly due to rising geopolitical tensions and the increasing use of unmanned systems.

Revenue visibility can be lumpy, driven by contract timing and government procurement cycles. That uncertainty makes the stock volatile. However, the addressable market continues to grow, and DroneShield's technology is already deployed across multiple defence and security agencies globally.

If order flow continues to scale and convert into repeat customers, I believe the upside could be substantial relative to the company's size.

Nanosonics Ltd (ASX: NAN)

Nanosonics is a different type of higher-risk opportunity. It already has a proven core product in trophon, but the investment case now hinges on successful innovation and commercial execution.

The FDA clearance of trophon3 and the trophon2 Plus upgrade created a meaningful upgrade cycle opportunity across tens of thousands of existing devices globally. Faster cycle times, deeper digital integration, and expanded traceability improve the value proposition for hospitals and clinics, while supporting higher software-driven revenue over time.

More importantly, the De Novo clearance for the CORIS system opens an entirely new market in flexible endoscope reprocessing. This represents a step beyond ultrasound disinfection and, if successfully commercialised, I think it could significantly expand Nanosonics' long-term revenue base. The phased rollout approach highlights the execution risk, but also reflects a disciplined strategy.

If CORIS gains traction through FY26 and beyond, I believe the long-term payoff could be material.

Foolish Takeaway

These are not low-risk, set-and-forget investments. Each comes with execution risk, valuation sensitivity, and the potential for short-term disappointment.

But for investors prepared to tolerate volatility and take a long-term view, I think Catapult, DroneShield, and Nanosonics each offer credible pathways to meaningful upside if their respective strategies play out.

The post My 3 higher-risk, high-reward ASX stock recommendations for February 2026 appeared first on The Motley Fool Australia.

The company, which was also holding its annual general meeting (AGM) on Wednesday, said the buyback would start once it had notified the corporate regulator and "will be conducted in the ordinary course of trading''.

Predictable strong results underpin buyback

Nanosonics Chief Executive Officer Michael Kavanagh said the company's business model was "built on a solid foundation of capital revenue from Trophon device sales and growing recurring revenue from consumables and services''.

He went on to say:

With no debt and a history of predictable cash flows, we've invested decisively in our next growth horizon, developing and launching Trophon3 and Trophon2 Plus, and the development and FDA De Novo approval of the CORIS system. These innovations not only strengthen our leadership in infection prevention but also open significant new opportunities for continued growth.

Mr Kavanagh said the board was confident the company had sufficient cash reserves to fund its business development plans, "including the continued growth of the Trophon business, the controlled market release and broader commercialisation of CORIS, and pursuing selective potential bolt-on acquisitions''.

The buy-back is a reflection of that confidence and our commitment to delivering long-term value to shareholders.

Future product release in the wings

Nanosonics' Trophon device is used to sterilise ultrasound probes, and the company's chair, Steve Sargent, told the AGM on Wednesday that there were now more than 37,000 units installed worldwide.

The company is also in the process of commercialising the CORIS device, which is used to sterilise endoscopes.

Mr Sargent said this would be a step forward for the medical sector.

CORIS represents a major leap forward in infection prevention practices in endoscopy, converting a manual cleaning process to an automated and traceable one. It's designed not only to elevate standards of care but also to support clinics, staff, and the environment through a smarter, automated solution.

Mr Sargent said the company had a cash balance of $161.6 million at the end of June, putting it in a strong position to invest in further growth as well as conduct the buyback.

Mr Kavanagh said the company maintained its guidance for the current financial year as released in August when it reported its full-year results.

At the time, Nanosonics said it was expecting revenue to grow by 8% to 12%, up to $215 to $223 million, and gross margin to stay steady at 75% to 77%.

The post Which medical device company has just announced a buyback? appeared first on The Motley Fool Australia.

Recently, I had a look at Wilson Advisory's Invest Now market snapshot, which picked out five of its highest conviction stock picks for investors. You can check that out here.

The Wilsons team said there were some warning signs in the market, such as domestic inflation showing signs of picking up speed and potentially tempering the outlook for further interest rate cuts.

But there are always pockets of value among stock exchange-listed companies, and along with their picks among the big end of town, the Wilsons team have also named four stocks which are worth a look in the small to mid-cap size range.

Investing ideas

So without further ado, these are the companies they're keen on.

Firstly, they have their eye on construction materials, equipment, and service provider Maas Group Holdings Ltd (ASX: MGH), which in August reported full-year revenue of $997.4 million, up 13%, and a net profit of $78.5 million, down 7%.

The Wilsons team is keen on Maas for its exposure to the building sector generally, as they explain:

This core business segment is led by a collection of quarries along the east coast and complemented by downstream capability in concrete and asphalt. Market conditions are attractive, including growing demand through infrastructure spend and residential housing activity, constrained supply on new quarry permitting and rational competitive behaviour.

They also suggest that growth through acquisition might be part of the Maas game plan.

They are also keen on prestige and luxury auto retailer Autosports Group Ltd (ASX: ASG), for "three broad reasons".

Firstly, the industry sector appears to be improving generally, and secondly, there is the potential for further industry consolidation.

Lastly, while the stock has re-rated, its valuation remains attractive, trading at a price to earnings discount to both automotive peers and other interest rate-sensitive consumer names.

Animal nutrition company Ridley Corporation Ltd (ASX: RIC) gets a tick as well, despite its shares trading close to their highs over the past 12 months.

We are attracted to Ridley's effective strategy of reinvesting in asset capacity to support volume growth in the bulk stockfeed business and the premiumisation journey for the packaged and ingredients segment. The recent acquisition of IPF Distribution offers opportunity for significant earnings improvement through cost reductions and network rationalisation, both of which management have successfully executed on within the existing Ridley business units.

And lastly, the Wilsons team also likes the look of Nanosonics Ltd (ASX: NAN), which sells systems for sterilising medical devices and which has had recent wins in the US market.

On the speculative side of things, the Wilsons team suggests Clarity Pharmaceuticals Ltd (ASX: CU6) could be worth a look, but warns that it falls into the high-risk category for investors.

Clarity Pharmaceuticals is a developer of radiopharmaceutical products for the diagnosis, clinical assessment and treatment of cancer. Clarity has staked out a proprietary position around the use of 'theranostic' isotopes of copper. Combined with Clarity's proprietary 'SAR' chemistry platform, these isotopes offer longer half-lives and superior product characteristics compared to conventional isotopes used in radiopharma.

Happy investing!

The post Wilsons Advisory names four small-cap investment ideas and one speccy stock appeared first on The Motley Fool Australia.

And while small cap ASX shares have been outperforming their larger counterparts since the first RBA cut in February, the broker doesn't believe it is too late to act. It said:

Despite recently outpacing larger peers, this trend can continue, supported by rate cut tailwinds, superior earnings growth and relatively cheap valuations.

But which small caps could be buys? Wilsons has picked out two that it is particularly positive on. They are as follows:

Nanosonics Ltd (ASX: NAN)

The first small cap ASX share that could be a buy is infection prevention company Nanosonics.

Wilsons thinks that its shares are good value given its strong growth outlook. It said:

Nanosonics (NAN), a medical device infection solutions company, is well-positioned, supported by the strong performance of its core business, TROPHON, and the upcoming launch of CORIS. Taking a medium-term view, NAN trades on a three-year forward P/E of 36x, offering five year EPS CAGR of 21% and fundamentals of increasing recurring revenues and margin expansion.

In addition, the broker is feeling positive about the aforementioned launch of its new CORIS product. It adds:

With its recent FDA approval, CORIS, the first device cleared for automated cleaning of flexible endoscopes, is set to launch in FY26 and deliver material earnings upside. CORIS has significant potential, sharing TROPHON's strengths but adding three key advantages.

These advantages are its entry into an untapped market as an unrivalled solution, its even higher consumables revenue stream, and expectations for faster adoption.

Ridley Corporation Ltd (ASX: RIC)

Another small cap ASX share that Wilsons is bullish on is Ridley Corporation.

It is an integrated animal feed manufacturer serving a mix of species and lifecycles. This includes delivering commercial stock feeds direct to farm gates, packaged feeds for stock and companion animals, and ingredients, including raw materials, additives, supplements and animal meals.

Wilsons also highlights that its shares are attractively priced based on its growth outlook. It explains:

We are attracted to Ridley's (RIC) effective strategy of reinvesting to support volume growth and premiumisation, as well as its highly accretive acquisition of a leading fertiliser distribution business. RIC screens attractively at a forward P/E of 19x while offering three year EPS CAGR of 15%.

In addition, the broker points out that the small cap has a "significant opportunity" with its fertiliser distribution business. It adds:

RIC has a significant opportunity to deliver upside to its recently acquired fertiliser distribution business (IPF). The market has already rewarded RIC for this disciplined acquisition, delivering pre-synergy EPS accretion of 18%+, rising to 25%+ with straightforward cost synergies. What is underappreciated, however, is management's ability to further optimise IPF's operations by applying the same playbook it has been executing in animal nutrients (i.e. targeted reinvestment, efficiency improvements), which has a similar business model, which could lift accretion to well over 30%.

The post Broker names 2 small cap ASX shares to buy appeared first on The Motley Fool Australia.

The broker has named a number of stocks it sees as good buys in the current market, pointing out that many of these companies are under-researched by brokers and operate in higher-growth sectors of the economy.

Compared to the ASX 100, the Small Ords index is far less concentrated and is less tilted towards growth-challenged sectors such as banks and iron ore. While just the banks and iron ore comprise about 38.5% of the ASX 100, these low growth sectors account for just around 1.5% of the Small Ords. While passive flows into banks (and other blue chips e.g. Wesfarmers) have supported the ASX 100's outperformance prior to this year, we believe this will unwind as valuations remain overstretched, particular considering their meagre growth outlooks.

As a result of being covered by fewer analysts, and traded by fewer investors, there was a higher degree of mispricing among smaller stocks, Wilsons says, and it also argues there are more merger and acquisition targets.

The broker also argues that small-cap stocks benefit disproportionately from rate cuts, as they are more exposed to cyclical sectors such as consumer and retail and carry more debt.

While small caps have outperformed since February as investors acknowledge the earnings boost provided by rate cuts, valuations have yet to overrun and still provide an attractive entry point.

Wilsons favours stock feed and fertiliser company Ridley Corporation Limited (ASX: RIC), saying it was reinvesting to support growth, and had made a highly accretive fertiliser acquisition.

RIC screens attractively at a forward price to earnings of 19x while offering three-year earnings per share compound annual growth rate of 15%. Management has been focusing on acquiring, expanding and de bottlenecking stock feed mills, adding incremental capacity. Increasing its scale also lowers the cost per tonne of feed, improving its unit economics and helping defend margins in a competitive market.

Wilsons also likes medical device infection solutions company Nanosonics Limited (ASX: NAN), saying the core TROPHON business is well-positioned and has an upcoming product launch.

Wilsons is predicting compound annual earnings per share growth of 21% for five years for Nanosonics.

With its recent FDA approval, CORIS, the first device cleared for automated cleaning of flexible endoscopes, is set to launch in FY26 and deliver material earnings upside.

Other companies favoured by Wilsons include Maas Group Holdings Limited (ASX: MGH), GemLife Communities Group (ASX: GLF), and Autosports Group Limited (ASX: ASG).

The post It's time to buy these ASX small-cap stocks Wilsons says appeared first on The Motley Fool Australia.

Here's what the broker is saying about these ASX 300 shares:

Nanosonics Ltd (ASX: NAN)

Morgans remains positive on this infection control specialist and sees a lot of value in its shares.

The broker recently put a buy rating and $5.00 price target on them. Based on its current share price of $4.09, this implies potential upside of 22% for investors.

Its analysts believe the ASX 300 share is well-positioned for long term growth thanks to its strong core business and the launch of the new CORIS product. It explains:

We have updated our forecasts following a deeper review of guidance provided and management commentary, particularly around tariff impacts and CORIS commercialisation timing. While near-term earnings are trimmed, these changes are immaterial to the long-term investment thesis, which remains anchored by recurring revenue growth, installed base expansion, and CORIS' medium-term potential. Our valuation and target price moderates to A$5.00 (from A$5.50) and we retain our BUY recommendation.

WiseTech Global Ltd (ASX: WTC)

Another ASX 300 share that could be destined to deliver big returns for investors over the next 12 months is logistics solutions software provider WiseTech Global.

Morgans recently put a buy rating and $127.60 price target on its shares. Based on its current share price of $96.11, this suggests that upside of 33% is possible between now and this time next year.

The broker remains very positive on the company and the recent game-changing acquisition of E2Open. And while it has trimmed its near term growth estimates slightly, this does little to its longer term outlook. It said:

WTC's FY25 result was broadly in line with expectations. While revenue was modestly lower than guidance, this was caught up by a 2H25 margin beat which saw WTC deliver underlying EBITDA growth of +27% (margins of 53%). FY26 EBITDA guidance for US$550-585m (+44-53% vs. FY25 reported EBITDA) was materially lower than consensus due largely to accounting treatment to align WTC/E2Open, however we do not see any fundamental change to the longer-term strategic value proposition associated with the acquisition. We reduce our EBITDA forecasts by -10%/-15% respectively in FY26-FY27F. Following these changes our DCF/EV/EBITDA based price target is revised to A$127.60/sh (from A$132.40/sh) and we retain our BUY rating.

The post These ASX 300 shares could rise 20% to 30% 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:

Capricorn Metals Ltd (ASX: CMM)

According to a note out of Bell Potter, its analysts have upgraded this gold miner's shares to a buy rating with a vastly improved price target of $13.10. The broker has been busy adjusting its estimates to reflect the stronger gold price. In addition, Bell Potter notes that the underperformance of Aussie gold stocks has been getting its attention over the last couple of months. It believes there is no reason for this disconnect and expects the trend to reverse in time. All in all, it feels this means there's still a lot of value on the table in the sector. The Capricorn Metals share price is trading at $11.33 on Wednesday.

James Hardie Industries PLC (ASX: JHX)

A note out of Macquarie reveals that its analysts have retained their outperform rating on this building products company's shares with a slightly improved price target of $37.20. Although the broker concedes that James Hardie's weakened balance sheet represents a material risk, it remains constructive on its investment thesis. Macquarie highlights that the stock has corrected materially, and the earnings base is well below mid-cycle. In addition, it believes that monetary policy support could prove a key catalyst, while alignment should improve from here. As a result, the broker thinks investors should snap up its shares while they are down in the dumps. The James Hardie share price is fetching $29.50 at the time of writing.

Nanosonics Ltd (ASX: NAN)

Analysts at Morgans have retained their buy rating on this infection prevention company's shares with a trimmed price target of $5.00. According to the note, the broker has reduced its earnings estimates in the near term to reflect tariff impacts and the timing of the commercialisation of its CORIS product. However, it believes these changes are immaterial to the long term investment thesis, which Morgans notes remains anchored by recurring revenue growth, installed base expansion, and CORIS' medium-term potential. The Nanosonics share price is trading at $3.86 this afternoon.

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

That's because the team at Morgans has recently named a couple of ASX shares as buys with the potential to rise by 30% or more between now and this time next year.

Let's see what the broker is recommending to clients and why it is feeling upbeat on these names this month. Here's what you need to know about them:

Nanosonics Ltd (ASX: NAN)

Morgans thinks that this infection prevention company's shares are being undervalued by the market.

After reviewing its guidance for FY 2026 and taking into account tariff impacts, the broker has retained its buy rating on the ASX share with a trimmed price target of $5.00. Based on its current share price of $3.84, this implies potential upside of 30% for investors over the next 12 months. It commented:

We have updated our forecasts following a deeper review of guidance provided and management commentary, particularly around tariff impacts and CORIS commercialisation timing. While near-term earnings are trimmed, these changes are immaterial to the long-term investment thesis, which remains anchored by recurring revenue growth, installed base expansion, and CORIS' medium-term potential. Our valuation and target price moderates to A$5.00 (from A$5.50) and we retain our BUY recommendation.

Readytech Holdings Ltd (ASX: RDY)

Another ASX share that could offer major upside potential according to Morgans is mission critical software provider Readytech.

Although its performance has underwhelmed this year and its earnings estimates have been trimmed, the broker remains positive on its future.

As a result, it has put a buy rating and $3.00 price target on its shares. Based on its current share price of $2.19, this suggests that a return of 37% is possible between now and this time next year. Morgans commented:

RDY's FY25 result was softer than consensus expectations, however Underlying NPATA of $17.3m was broadly in line with MorgF. FY26/27 guidance was downgraded, and implies a gradual step-up in run-rate as NRR improves (off a challenging FY25) through cloud migration in local government and delivering on its Enterprise wins/pipeline. Whilst we downgrade our EBITDA forecasts by -12.5% in FY26-FY27F reflecting revised guidance, we see the buildup into FY26 as being manageable. Our target price is reduced to $3.00/sh (prev. $3.45/sh), and we retain our BUY rating.

The post Morgans says these ASX shares could rise 30%+ appeared first on The Motley Fool Australia.

Let's now take a look at two that it remains positive on and one that it thinks investors should be avoiding. Here's what it is recommending:

Fortescue Ltd (ASX: FMG)

This iron ore giant may have delivered a "healthy" result in FY 2025, but that wasn't enough for Morgans to stop it from downgrading its shares.

The broker believes that its valuation is stretched and has downgraded its shares to a trim rating with a $19.00 price target. It said:

Healthy FY25 result, although dividend payout now constrained despite strong hematite margins. Iron Bridge contribution still modest and costly, with realisation risk persisting at 84%. Underlying EBITDA beat consensus +2%, while NPAT was -3%. At ~A$19/share, valuation stretched, leaving limited upside without either higher iron ore prices or a pivot in strategy. We downgrade to TRIM.

Nanosonics Ltd (ASX: NAN)

Morgans was pleased with the infection prevention company's FY 2025 results, highlighting that they were stronger than expected.

And with the Trophon business continuing to perform positively and showing signs of operating leverage, the broker sees lots of value on offer with its shares. As a result, it has retained its buy rating and $5.50 price target on them. It said:

FY25 result was a beat to expectations, supported by strong consumables growth and capital sales growth. Key short-term focus remains installed base growth which beat our pass-mark (>2k units), and early signs of upgrade cycle acceleration across the ageing fleet in North America.

Commentary around CORIS launch remains positive and potentially conservative, with phased commercial rollout expected now in FY27 followed by broader adoption in FY28. Timing hinges on FDA 510(k) approvals which we have seen recent evidence of backlog and delays to approvals. However, we view CORIS timing arbitrary over the life-cycle of the device and particularly so with the Trophon business humming along and showing strong operating leverage. No change to positive view or valuation. Target price of A$5.50 remains.

Tyro Payments Ltd (ASX: TYR)

Another ASX share that gets the seal of approval following its results release is payments company Tyro.

While its results were slightly softer than expected, it still believes it was a "solid" outcome. Particularly given its margin improvements.

As a result, the broker has retained its buy rating with an improved price target of $1.67. It said:

TYR's FY25 result was slightly below consensus expectations (-1%-2%) at revenue (A$486m) and EBITDA (A$61.5m), but more in line at NPAT (A$17.6m).  We saw this as a solid result overall, with continuing EBITDA margin improvement arguably the key positive highlight.

We lift our normalised PBT forecasts by +15%/+5% over the next two years, mainly on higher EBITDA margin assumptions. We note our EPS forecasts are +15%/-26% over the same timeframe, with our FY27 forecast impacted by TYR beginning to pay tax (which is slightly earlier than we thought). Our price target rises to A$1.67 (from A$1.55). With ~40% upside to our price target (A$1.67), we maintain a BUY rating.

The post Forget Fortescue and buy these ASX shares appeared first on The Motley Fool Australia.

The $1.4 billion life sciences company on Monday reported full-year revenue of $198.6 million, up 14% in constant currency terms, with the installed base of its Trophon ultrasound technology increasing 6% to 37,000 devices.

There was also 20% growth in consumables and services revenue to $146.1 million.

Chief Executive Officer, Michael Kavanagh, said FY25 was a year in which the company "continued to lay the foundations for our next growth horizon".

"With a large cumulative installed base of 37,000 units, up 6% year on year, we are seeing this foundation translate into significant recurring revenue growth," he said.

"Total revenue for the year reached $196.8 million, a 17% increase, driven by a 9% rise in capital revenue to $52.5 million and 20 per cent growth in recurring revenue to $146.1 million.

"This performance underscores the growing value of our recurring revenue business, which is fuelled by installed base and product expansion."

Nanosonics' net profit after tax came in at $20.7 million, up 59%.

New product rollout imminent

Mr Kavanagh said the year was also notable for the development of the next generation of Trophon, "which supports our market leadership in ultrasound probe reprocessing", and the clearance by the United States Food and Drug Administration of its CORIS endoscope system.

"The CORIS system is designed to deliver a new standard of care for the cleaning of flexible endoscopes by addressing recognised issues associated with current manual processes," he said.

"With over 60 million flexible endoscope procedures conducted annually across the top seven key markets alone, CORIS represents a substantial opportunity for the organisation.

"While we remain mindful of broader macroeconomic uncertainties, we are confident in our ability to continue our leadership and growth in ultrasound probe reprocessing with our latest generation Trophon and the expansion of our portfolio and revenue streams with the full commercialisation of CORIS in time."

Analyst bullish on Nanosonics

Analysts at Wilsons Advisory maintained their overweight rating on the stock following the result, with a price target of $6.39, compared with the $4.50 the stock was changing hands for on Wednesday.

"This FY25 result and the accompanying FY26 guidance boiled down to a 'Trophon flex' from Nanosonics," Wilsons said.

"Having upgraded that business through the course of FY25, we assess Trophon is targeting another 13% standalone EBIT growth with margin expansion in FY26."

Nanosonics said it expected a $4m direct impact from United States tariffs, however there were various strategies it would be using to mitigate the impact on net profit, including "reasonable price adjustments over time".

The company issued FY26 guidance of $215 million to $223 million in revenue, up 8% to 12% over FY25.

The post This healthcare stock could deliver a 40% return 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:

Australian Clinical Labs Ltd (ASX: ACL)

The Australian Clinical Labs share price is up 9% to $2.73. Investors have been buying this pathology services provider's shares following the release of its full year results. It posted a 6.4% increase in total revenue to $741.3 million and 7.7% lift in underlying net profit after tax to $34 million. Australian Clinical Labs CEO Melinda McGrath said: "Despite a challenging external environment, which saw slower market growth in the second half of FY 2025, the second half performance delivered our earnings guidance."

Coles Group Ltd (ASX: COL)

The Coles Group share price is up over 8% to $22.49. This follows the release of the supermarket giant's FY 2025 results. Coles reported a 3.6% increase in group sales to $44,352 million and an 10.7% jump in normalised underlying EBITDA to $4,052 million. Management also revealed that FY 2026 has started strongly with supermarkets sales revenue increasing by 4.9% (7.0% ex-tobacco) during the first eight weeks. This is being "supported by continued strength in volumes as we continue to invest in customer value and experience."

Kelsian Group Ltd (ASX: KLS)

The Kelsian Group share price is up 15% to $4.64. This has been driven by the travel and transport company's full year results. The Sealink owner revealed a 9.5% increase in revenue to $2,208.9 million and a 7.4% lift in underlying EBITDA to $285 million. Looking ahead, management expects FY 2026 underlying EBITDA to be between $297 million and $310 million. This represents growth of 4.2% to 8.8%. Kelsian CEO, Graeme Legh, said: "We have a clearly defined capital management strategy, a clear plan for the potential divestment of our Tourism Portfolio, and a disciplined growth focus. Supported by a strengthened balance sheet, I am confident in our ability to deliver sustainable long term shareholder value."

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is up 12% to $4.62. This morning, this infection prevention company released its FY 2025 results and posted a 17% increase in total revenue to $198.6 million and a 72% jump in profit before tax to $22.3 million. Nanosonics CEO, Michael Kavanagh, said: "FY25 reflects a strong financial performance and a year in which we continued to lay the foundations for our next growth horizon. Our business model continues to demonstrate its strength and scalability. With a large cumulative installed base of 37,000 units, up 6% year-on-year, we are seeing this foundation translate into significant recurring revenue growth."

The post Why Australian Clinical Labs, Coles, Kelsian, and Nanosonics shares are racing higher today appeared first on The Motley Fool Australia.

Shares in the Aussie infection prevention company closed yesterday trading for $3.89. In morning trade on Wednesday, shares jumped to $4.35 apiece, up 11.8%. After some likely profit-taking, at the time of writing, Nanosonics shares are trading for $4.02 apiece, up 3.3%.

For some context, the ASX 300 is up 0.5% at this same time.

Here's why the ASX 300 stock is grabbing investor attention today.

ASX 300 stock lifts off on FDA news

The big news out today involves Nanosonics' trophon technology, which provides high-level disinfection against a broad range of potentially harmful organisms in clinical environments.

In an announcement this morning, Nanosonics reported that it had received clearance from the US Food and Drug Administration (FDA) for its latest trophon innovation. This now enables the ASX 300 stock to commercially launch trophon3 and trophon2 Plus in the world's top economy.

Trophon2 is a software upgrade package for existing trophon2 users, allowing them to access the new features available with trophon3. Noting that there are approximately 20,000 trophon2 devices globally, management said the new package represents a significant software upgrade opportunity.

According to the release, trophon3 delivers a range of new benefits while maintaining "the highest standard in clinical efficacy" for patient safety.

The company said:

Fully programmable and adaptable, trophon3 can be customised to suit a range of customer workflows enhancing efficiency while delivering consistent, reliable disinfection in a safe, effective, and environmentally friendly way.

It's also more than 40% faster than previous generations, with expanded digital integration capabilities and what the company says is the widest traceability capabilities in the ultrasound reprocessing market.

And trophon3 could help lift the ASX 300 stock longer term.

Management said they expect trophon3 to support continued growth in the company's installed base in both the hospital and private physician market segments. It's also expected to drive a significant upgrade opportunity for approximately 10,000 original trophon EPR devices.

What did management say?

Commenting on the FDA approval sending the ASX 300 stock soaring today, Nanosonics CEO Michael Kavanagh said:

The FDA clearance and USA launch of trophon3 and trophon2 Plus mark important milestones for Nanosonics. These innovations set a new benchmark in automated high-level disinfection and unlock significant growth opportunity through both new installed base and upgrades.

With today's intraday boost factored in, the Nanosonics share price is up 38% in 2025.

The post Guess which ASX 300 stock just jumped 12% on FDA approval 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:

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price is up 3.5% to 95.7 cents. Investors have been buying this gold miner's shares following the release of its quarterly update. The company revealed that it had a strong finish to the year and exits FY 2025 with record production rates.It advised: "Gold production for the June 2025 quarter was 38,941oz, following a record 287k tonnes processed at 4.5 g/t and 94.4% recovery. During the month of June 2025, recoveries were ~95% following modifications implemented as part of the plant upgrade during the quarter."

Cobram Estate Olives Ltd (ASX: CBO)

The Cobram Estate Olives share price is up almost 12% to $2.40. Investors have been buying the olive oil company's shares following the release of a business update. According to the release, the company has completed its 2025 Australian olive harvest. This has seen it mill over 80,000 tons of olives, which has resulted in total olive oil production of 14.2 million litres. This is up from 10.1 million litres in 2024. In addition, the company released its full year results forecast. It expects underlying EBITDA of $115 million for FY 2025. This is up 72% from $66.7 million in FY 2024.

Hub24 Ltd (ASX: HUB)

The Hub24 share price is up almost 3.5% to $94.90. This appears to have been driven by the release of a broker note out of UBS this morning. According to the note, the broker has upgraded Hub24's shares to a buy rating (from neutral) with an improved price target of $105.00 (from $74.00). The broker is positive on the outlook for specialty investment platforms and has a preference for Hub24 due to its strong adviser growth.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is up 4% to $4.00. This morning, this infection prevention company announced the launch of two new products. The first is the new trophon3 product, which delivers a range of new customer benefits while maintaining the highest standard in clinical efficacy for patient safety. The other product is trophon2 Plus. It is a new software upgrade package that makes all the key new trophon3 features available to existing trophon2 users for upgrade. Nanosonics' CEO and President, Michael Kavanagh, said: "trophon3 and trophon2 Plus set a new benchmark in automated high-level disinfection for ultrasound transducers, upholding the trophon technology's market leadership position."

The post Why Bellevue Gold, Cobram, Hub24, and Nanosonics shares are pushing higher appeared first on The Motley Fool Australia.