And I think one of the best ways to benefit from this is to identify growing businesses before they become some of the share market's largest companies.

After all, a business worth $2 billion or $3 billion today could potentially become worth $10 billion over the coming decade if it can consistently grow its earnings and successfully expand its operations.

For investors who identify these opportunities early and remain patient, the rewards could be significant.

With that in mind, I decided to look for ASX shares that I believe have a reasonable chance of reaching a $10 billion market capitalisation in the future.

Here are five that caught my attention.

HUB24 Ltd (ASX: HUB)

The first ASX share on my shortlist is HUB24. I think this investment platform provider has an excellent opportunity to become one of Australia's largest financial services technology businesses.

Its platform allows financial advisers to manage their clients' investments and superannuation, providing access to a wide range of investment products and portfolio management tools.

And as more financial advisers move away from traditional platforms towards modern technology, HUB24 has been winning an increasing share of the market.

For example, at the end of September, HUB24 had $168.6 billion in funds under administration, representing an increase of 15% over the previous year. It also attracted $4 billion in net platform inflows during the quarter.

What I like is how additional funds flowing onto its platform can translate into higher recurring revenue without requiring a proportionate increase in operating costs. This creates opportunities for profit margins to improve as the business grows.

And HUB24 isn't standing still. It continues to invest in technology, introduce new services, and expand its relationships with financial advisers. With a current market capitalisation of approximately $5.4 billion, HUB24 would need to become almost twice as valuable to reach $10 billion.

I believe that is achievable over the next decade, especially if it continues increasing its market share and growing earnings at an attractive rate.

But HUB24 isn't the only company I found with a compelling growth opportunity.

Among the remaining four are a business already reaching more than 100 million people worldwide and another that has recently secured almost $1 billion in new contracts.

Both are still valued well below $10 billion, and I believe they represent compelling opportunities for long-term investors.

So, which other ASX shares made my shortlist, and what could take them to that milestone?

Life360 Inc (ASX: 360)

Another ASX share that caught my attention is Life360.

Its family safety platform has become an increasingly important part of everyday life for millions of people, helping them stay connected with family members and keep track of their safety.

But what stands out with Life360 is how much of its potential audience remains untapped financially. At the end of June, the company had approximately 102.4 million monthly active users globally. However, only around 3.2 million family groups were paying for its subscription services.

That provides substantial scope to increase revenue by encouraging more users to subscribe, while also expanding its advertising business. The latter is already growing rapidly, with advertising revenue increasing more than fourfold to US$22 million during the second quarter.

With its market capitalisation sitting at approximately $5 billion, I believe Life360 has a credible opportunity to reach $10 billion if it can keep expanding its user base and improving monetisation.

The challenge will be maintaining user engagement and turning audience growth into sustainable profits, particularly as it increases spending on advertising and international expansion.

Megaport Ltd (ASX: MP1)

Megaport is another ASX share that I believe could become substantially more valuable.

Previously best known for providing on-demand network connections between data centres and cloud platforms, Megaport has expanded into supplying computing infrastructure for artificial intelligence (AI).

Its acquisition of Latitude.sh has opened up opportunities to provide the processing power businesses need to run increasingly sophisticated AI applications.

In September, Megaport announced three additional AI infrastructure contracts worth approximately $979 million. These contracts are expected to generate around $232 million in annual recurring revenue once fully deployed.

Including its earlier agreements, Megaport has announced approximately $2.3 billion in strategic AI infrastructure contracts since April.

That is impressive progress for a company with a current market capitalisation of approximately $3.8 billion.

Management is forecasting FY 2027 revenue of $720 million to $810 million, with substantial growth expected as its new contracts come online. However, delivering these projects requires investment, with planned FY 2027 capital expenditure approaching $1.9 billion.

If it can successfully deliver on its contracts and build a profitable AI infrastructure business alongside its established network operations, I believe Megaport could eventually be worth $10 billion.

Netwealth Group Ltd (ASX: NWL)

Another business that I think has the potential to join the $10 billion club is Netwealth.

Like HUB24, Netwealth operates an investment and superannuation platform used by financial advisers and their clients.

And while the two companies compete for similar customers, I believe the size of Australia's wealth management industry leaves considerable room for both to grow.

Netwealth's latest quarterly update revealed that funds under administration had reached a record $139.2 billion at the end of September. This was an increase of 15.2% over the previous year, demonstrating that the business continues to expand despite some challenging market conditions.

Another encouraging development was its managed accounts business, which attracted record quarterly net inflows of $2.2 billion. Managed accounts allow advisers to manage client portfolios more efficiently and provide Netwealth with an opportunity to generate additional revenue from the funds on its platform.

With a market capitalisation of approximately $4.2 billion, Netwealth would need to more than double in value to reach $10 billion.

I think that is achievable over the longer term if it can maintain strong inflows, expand its services, and translate its growing funds under administration into higher earnings.

Telix Pharmaceuticals Ltd (ASX: TLX)

A final ASX share that I believe deserves a place on this list is Telix Pharmaceuticals.

The biotechnology company has already established a successful commercial business supplying radioactive imaging products that help doctors diagnose cancer.

And I think its potential extends even further. Telix is developing treatments that use targeted radiation to attack cancer cells, potentially allowing it to participate in a much larger market.

The company is also expanding its existing diagnostic portfolio, which continues to deliver strong revenue growth.

In the September quarter, Telix generated US$245 million in revenue, up 19% year on year. Management expects revenue and other income to exceed US$1 billion in FY 2026.

Telix is also pursuing a merger with German radioisotope specialist ITM, which could strengthen its manufacturing capabilities and expand its cancer treatment pipeline.

With the company currently valued at approximately $4.9 billion, reaching $10 billion would require substantial further growth.

But I believe its commercial operations provide an encouraging foundation, while successful clinical trials and regulatory approvals could unlock significant additional value.

It is important to remember that drug development carries considerable risks, and the proposed ITM transaction would also involve issuing substantial new equity. However, if Telix can successfully expand beyond cancer diagnostics into commercial treatments, I believe it has the potential to become one of Australia's leading healthcare companies.

The post I searched for the next $10 billion ASX company. These 5 caught my attention appeared first on The Motley Fool Australia.

Three that have fared well and been given buy ratings are listed below. Here's why the broker is bullish on them:

ARB Corporation Ltd (ASX: ARB)

Morgans was a touch disappointed with this 4×4 parts manufacturer's performance during the first quarter.

However, it remains positive on the future and has retained its buy rating with a $25.90 price target. This implies potential upside of over 50% for investors.

Commenting on ARB, Morgans said:

ARB's 1Q27 update was disappointing: sales -6.1% (1Q26 +3.8%) as Aftermarket and Export weakness (single-digit declines) outweighed strong OEM growth. Positively, PBT grew despite weaker sales amid steady gross margins (FX-driven). While a softer Aftermarket result was largely expected (ARB's core vehicle volumes -16% in 1Q27), Export was a negative surprise, as slower US OEM sales, softer UK vehicle volumes and weak NZ demand offset growth in the US Aftermarket, Africa, Europe and SE Asia. 

Positively, new OEM contract wins and early indications of recovering OEM sales support the division's outlook. Despite softer near-term sales, resilient margins should continue to underpin the earnings base, with improving vehicle supply and various network and growth initiatives driving the earnings recovery. BUY maintained, A$25.90ps target price.

Navigator Global Investments Ltd (ASX: NGI)

The broker highlights that this global investment company delivered a mixed quarter.

Nevertheless, it remains positive and has retained its buy rating and $3.04 price target. This suggests that the ASX share could rise around 46% from current levels.

The broker commented:

NGI has released its September 2026 (1Q27) AUM update. We saw this as a bit of a mixed quarter. Group ownership-adjusted AUM rose +9% (or a solid ~+3% excluding Stable Growth), led by the NGI Strategic Portfolio (+9%). 

However, Lighthouse was softer, with net flows slowing to +US$280m (4Q26: +US$690m), being mostly into lower-margin managed accounts, and largely offset by negative performance (-US$240m). We make no changes to our forecasts or our A$3.04 price target. With >20% upside remaining to our PT, we maintain our BUY recommendation.

Netwealth Group Ltd (ASX: NWL)

A third ASX share that has been given the thumbs up from Morgans is investment platform provider Netwealth.

Once again, although Netwealth's quarterly performance fell short of expectations, Morgans still sees plenty of value in its shares. 

As a result, it has retained its buy rating with a $22.90 price target. It said:

NWL's 1Q27 net flows of A$2.6bn were below VA consensus (A$3.5bn), with elevated gross outflows persisting (incl. two institutional client exits totalling A$0.6bn). Group FUA grew +2.5% QoQ to a record A$139.2bn, ~1.3% shy of VA consensus (A$141.0bn), with markets a slight +A$0.8bn tailwind. FY27 net flows guidance was lowered to A$17-19bn, with NWL flagging budget impacts & market volatility as current headwinds to adviser/investor behaviour. 

We trim our FY27-29F NPAT forecasts by -5-6% reflecting a modest miss vs MorgF, and the addition of Paradino into MorgansF. NWL is trading on a FY27 P/E of ~30x (a -35% discount to its 5yr avg). Our BUY rating is retained with a PT of A$22.90/sh.

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

When one analyst thinks a business is a buy, that's interesting. When multiple experts think a stock is a buy, that could be a sign of a clear opportunity.

Of course, buy ratings don't guarantee returns, but I think it's very interesting to consider the ideas. Let's look at two highly rated businesses.

Collins Foods Ltd (ASX: CKF)

Collins Foods is a large KFC franchisee business with operations across both Australia and Europe.

According to Commsec, there are currently seven analysts that rate the business as a buy.

FY26 was a solid performance by the company, with revenue growth of 8.6% to $1.6 billion and underlying net profit growth of 13% to $61.4 million.

The most recent update from the company was very promising and was revealed at the annual general meeting (AGM) at the start of September 2026.

In Australia, for the last four weeks (at the time of the AGM), total sales were up 5% with same-store sales (SSS) growth of 3.1%. The company said it has initiatives to further strengthen its core further, the Kwench (a drink) national rollout was happening for its launch before summer, the late-night trading rollout was close to completion and the breakfast trial started in September.

In Germany, the last four weeks saw total sales growth of 58.8%, amid a 0.1% SSS decline (compared to a 7.2% SSS decline for the first eight weeks of FY27). It benefited from the JJ acquisition from week five. The Bavarian acquisition is delivering higher average store sales than the existing portfolio. The ASX share said it's working to lift performance now and in the longer term. It'll remain disciplined with investments in new restaurants, and a return to SSS growth will help accelerate new-store growth.

In the Netherlands, total sales were up 4.9% over the last four weeks, with SSS up 3.1%, compared to a 7.8% SSS decline in the first eight weeks of FY27.

Overall, the company has clearly driven an improvement in performance, and the fact that it's growing in both Australia and Europe is exciting for its growth runway to deliver returns. I think its global KFC outlet network can keep growing.

Netwealth Group Ltd (ASX: NWL)

The other ASX share I'll mention is Netwealth, a financial technology services company that provides superannuation (including accumulation and retirement income products), investor-directed portfolio services, managed accounts, managed funds, SMSF administration and non-custodial administration and reporting services.

According to Commsec, there are currently 13 buy ratings on the business.

The Netwealth share price has fallen more than 35% in the past six months, so it's significantly cheaper.

It recently reported its FY27 first-quarter update, which showed ongoing growth, though perhaps not as much as the market hoped.

Total funds under administration (FUA) increased by $3.4 billion to $139.2 billion, up 2.5% for the quarter and up 15.2% year-over-year.

It revealed that custodial inflows were $7.8 billion, while FUA net flows were $3.6 billion (excluding pension payments of $0.4 billion and two institutional client outflows totalling $0.6 billion) – broadly consistent with the prior quarter.

The ASX share said that funds under management (FUM) net inflows reached $2.4 billion, including managed account net flows of $2.2 billion. Total FUM rose 24% year-over-year to $36.6 billion.

Netwealth said there were 3,822 net new accounts and 21 financial intermediary relationships were added during the quarter.

Finally, the company noted the launch of individual HINs, Netwealth Private and the acquisition of Paradino.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

And it made me question: Does a share price decline always signal trouble ahead? Or do investors sometimes overlook a company's true value?

I decided to look at the bear case for three ASX shares, and I think the market is getting it wrong.

Here's why.

Netwealth Group Ltd (ASX: NWL)

The bear case

Netwealth posted an impressive FY26 result in August, including a 20.6% increase in total income and an 18% increase in EBITDA. 

But despite a solid result, the share price has continued falling. At the time of writing, the shares have dropped around 27% since the company's results announcement. They're down 37% for the year to date.

The ASX financial shares have been caught up in a broad-based sell-off across the financial sector over the past couple of months, driven by inflation concerns and higher interest rates.

Some investors seem to be disappointed by the company's softer-than-expected platform growth. There are also concerns about margin pressure, and questions about whether its valuation has run too far ahead.

Some more company-specific news hasn't helped confidence either. 

Last week, Netwealth trimmed its full-year funds under administration (FUA) target to $17 billion to $19 billion, down from $18 billion to $20 billion previously. Management said the revision is due to elevated market volatility and extended client decision-making timelines among financial advisers.

Elsewhere, Netwealth announced last month that two of its subsidiaries have been served a class action over its failed First Guardian Master Fund. 

Again, investors are spooked and many appear to be continuing to offload their shares.

But is the share price downturn justified? Is the bear case already priced in?

My view on the ASX shares

I think investors are too focused on the company's near-term figures when they should be focused on longer-term growth.

Yes, Netwealth downgraded its FY27 guidance, but the company has already flagged that there is no structural deterioration in its competitive position. 

It's also worth pointing out that the updated range still sits above market expectations. For example, brokers at UBS expect Netwealth's FUA to come in at around $16.3 billion for FY27. 

Regarding the latest class action news, Netwealth previously paid around $101 million in compensation to affected members and has already addressed the issue with ASIC. The compensation program was completed in January 2026 and Netwealth has confirmed it intends to defend the class action.

I think the sell-off has been overdone, and the bear case has already been priced into the current share price.

Life360 Inc (ASX: 360)

The bear case

Life360 shares have been smashed lower by an overall investor rotation away from high growth tech stocks, persistent inflation, interest rate fears, and a deterioration in investor confidence.

The ASX shares have fallen around 33% since the company posted its second-quarter FY26 update, and are down 39% for the year to date, at the time of writing.

It looks like investors have struggled to digest the latest update, which included a 38% increase in revenue and a 53% hike in EBITDA. It also said it expects FY26 revenue growth to accelerate from 33% to 40% year on year.

The result was solid, but it wasn't enough to impress investors, who expected another upward revision in full-year guidance. 

Some claim that the lack of guidance upgrade against a background of strong results suggests the company could be plateauing. 

And there are also questions about whether the company can actually turn its large user base into a sustainable and reliable revenue going forward. 

Again I asked, is the share price downturn justified? And is the bear case already priced in for Life360 shares?

My view on the ASX shares

I think the market is far too pessimistic on Life360 shares, and expectations of a guidance upgrade were overdone.

Life360 has a dominant market position as a global location-services provider. The company recently announced that its monthly active users reached just over 102 million in the second quarter of FY26. That's a 16% year-on-year increase.

The business is based on a subscription model, which means it is able to drive rapid revenue from a recurring income. And it is also expanding into hardware products to create other ways of driving revenue growth, such as Tile and Pet GPS.

The company is clearly pushing forward with growth, and it has a great trajectory ahead. I think the share price decline is the result of fickle sentiment rather than any legitimate long-term concerns.

I think there are plenty of growth opportunities ahead for Life360 and its shares. It looks like the bear case is more focused on pushing an already depressed share price even lower, rather than the company's true value.

NextDC Ltd (ASX: NXT)

The bear case

The ASX shares have fallen around 34% over the past two months, and they're are down 26% for the year to date.

Investors are mostly concerned about the company's heavy capital expenditure, and the risk associated with turning its spending into revenue. 

NextDC is currently executing a huge multi-billion dollar expansion plan, with a focus on scaling AI-ready infrastructure across Sydney, Melbourne, Perth, and Kuala Lumpur. 

For FY26, the company's $3.4 billion capex for the year was $397 million above the top end of its guidance. This reflects land acquisitions and accelerated construction to meet customer delivery dates.

The heavy upfront capital expenditure means the company is reliant on continuous debt or equity funding. 

It also means that the company is affected by high interest rates or tighter credit conditions. These two things can can hike the costs of construction at its data centres.

Investors are understandably wary that the plan comes at a huge risk, and there are questions about whether it can pull it off at the scale it plans.

My view on the ASX shares

NextDC operates data centres in Australia, New Zealand, and Southeast Asia. The company builds and operates secure facilities where businesses can house their servers and IT equipment. 

Development and expansion of its physical centres, cooling, power, security services, and project support come at a high cost. 

But data usage is widely expected to explode, driven by artificial intelligence (AI) workloads, cloud computing, and digital transformation. And that means demand for NextDC's secure, high-quality data centres will also likely experience a huge surge in demand.

In my view, the company is investing well to position itself for when the AI boom happens. And I think investors are underestimating what that could be worth. 

The post I looked at the bear case for these 3 ASX shares, and came to a different conclusion. Here's why appeared first on The Motley Fool Australia.

I've selected three reports on companies which the broker believes will perform particularly well over the next 12 months.

Let's see who they like.

DigiCo Infrastructure REIT (ASX: DGT)

This company is a data centre builder and operator, which has experienced a year of substantial share price swings.

The shares have traded as high as $3.07 and as low as $1.59 over the past 12 months, and are currently changing hands for $2.05.

UBS said recent highlights included DigiCo executing a 15 year contract for 71 megawatts of capacity at its SYD1 data centre with a global technology firm.

That data centre is now fully contracted, UBS said.

The broker said DigiCo's expansion plans are fully funded, with no need to raise capital from equity.

UBS said it was also pleasing to see no change to the company's forecast for underlying earnings this year.

UBS has a price target of $3.60 on DigiCo shares. If achieved, this would be a 76.5% upside.

Champion Iron Ltd (ASX: CIA)

UBS reduced its price target on Champion Iron shares after a weaker than expected September quarter preliminary result, but it still remains well above the current share price.

The broker said that the company's volume recovery was good, however the net realised price for their iron ore was disappointing.

They said that the capture of premium pricing was tracking softer than expected, "driven by a combination of marketing execution, which the company controls to an extent, and elevated freight, which it largely does not, together compressing the net price realised''.

UBS added:

While management had guided premiums to build materially into Q3 to Q4 FY27, the weaker Q2 realisation has prompted us to adopt more conservative short to medium term freight assumptions, which flow through net realisation to drive our FY28/29 earnings cuts.

The broker has a price target of $3.60 on Champion Iron shares compared to $2.35 currently.

This would be a 44.7% increase if achieved.

Netwealth Group Ltd (ASX: NWL)

UBS said custodial net flows were soft for Netwealth, "reflecting ongoing budget related impacts on adviser activity combined with headwinds from higher interest rates''.

The broker said Netwealth offered compelling value at the current share price and was trading at a 43% discount to its five-year average.

UBS has a price target of $22 on Netwealth shares compared to $15.31 currently.

If achieved this would be a return of 43.6%.

The post 3 ASX shares UBS has tipped to increase 44% to 76% appeared first on The Motley Fool Australia.

Looking for a quality bounce after some tough months? Both WiseTech Global Ltd (ASX: WTC) and Netwealth Group Ltd (ASX: NWL) have copped a beating in 2026, catching the eye of contrarian investors hoping for a big comeback. If you're wondering which of these two ASX tech stocks is more likely to double from here, let's break down their businesses, financials, and recent momentum.

The case for WiseTech

WiseTech Global is a leading logistics software provider, well known for its CargoWise One platform. Its clients include top global freight forwarders—think names like Toll and DHL—allowing it to play a central role in streamlining complex global supply chains. Founded in Sydney in 1994, WiseTech now has a major international footprint. While the company profile highlights its reach and innovation, most recently confirmed user or revenue numbers weren't available in the supplied data.

A few things stand out in the numbers:

• Market cap of $11.28 billion makes WiseTech a significant force in the tech sector.
• P/E ratio sits at 43.47, which is substantial, but arguably not strange for a high-growth software business.
• EPS is 0.532, and the dividend yield is a modest 0.66%. All dividends are fully franked, which is handy for tax-conscious Aussie investors.
• Year-to-date (YTD) WiseTech shares are down a hefty 51.3%, so it's fair to say sentiment is gloomy, but steep declines can sometimes mean the sharpest rebounds—if business momentum returns.

The case for Netwealth

Netwealth Group is another Australian tech success story, though its focus is on wealth management platforms and superannuation services. The firm provides cloud-based admin software and managed accounts to advisers, private clients, and institutions, charging SaaS fees largely based on funds under administration.

Netwealth's investment case leans on these features:

• Market cap is $4.12 billion, much smaller than WiseTech but still firmly mid-cap territory.
• P/E ratio is comparatively high at 68.50 (not unusual for platform businesses with sticky customers, though definitely toward the upper end of ASX valuations).
• EPS is 0.247 and the dividend yield is much higher at 2.48%, with all dividends 100% franked.
• Netwealth shares are down 32.5% YTD—a painful slide, but far less extreme than WiseTech's recent plunge, making the prospective "double from here" a less herculean task if sentiment changes.

Valuation comparison

Let's look at how the key numbers stack up side by side:

A quick note: Netwealth Group's P/E ratio is much higher than WiseTech's, despite having a significantly lower EPS. This usually implies investors expect more future growth from Netwealth or see its earnings as higher quality. But with both companies in different parts of the tech space, direct P/E comparisons need some caveats—platform SaaS versus global logistics have different typical multiples.

Recent share price momentum

Comparing recent share price performance up to 13 October 2026:

• WiseTech Global closed at $33.11 on 13 October 2026, after dropping 2.8% that day. Momentum has been volatile with sharp losses and gains, but the overall trend remains deeply negative for the year.
• Netwealth Group finished at $16.92 on the same date, down 3.0%. Its short-term trading has been choppy too, especially after an 8%+ drop in late September, but the losses haven't been as brutal as WiseTech's over 2026.

Which is the better buy?

If I'm picking which beaten-down stock is more likely to double from today, I'd lean toward WiseTech Global. Here's my reasoning:

• The market has hammered WiseTech far harder in 2026, with shares sinking over 51%. That kind of sell-off can sometimes (not always!) be a set-up for a sharp recovery, especially given the company's global reach, strong customer base, and mission-critical software.
• WiseTech's valuation, while not low, is meaningfully below Netwealth's on a P/E basis (43.5 vs 68.5). They're different kinds of businesses, but I'd rather back a global tech leader with a lower multiple if I'm hunting for a rebound.
• The dividend yield is low on both, but fully franked. Netwealth pays more, but if I'm after a potential double, it's capital growth that matters more, not yield.
• Netwealth hasn't fallen anywhere near as far, so a double from here would require an even bigger surge in optimism and growth. That feels less likely unless the business suddenly accelerates.
• Of course, turnarounds are always risky. There's no guarantee WiseTech will be back in favour soon—sentiment could worsen before it improves.

For those willing to stomach volatility in exchange for the potential of outsized gains, WiseTech looks like the better bet to stage a double from here—though it's not one for the faint-hearted!

The post WiseTech Global vs Netwealth: Which ASX tech stock could double from here? appeared first on The Motley Fool Australia.

Since the start of the year, the S&P/ASX 200 (ASX: XJO) share has lost 40% of its value.

While that is disappointing, Bell Potter thinks it has created an opportunity to buy a high-quality ASX 200 share at an attractive price.

What is the broker saying about this ASX 200 share?

The broker highlights that Netwealth has started the financial year with a softer than expected first quarter, which has led to a guidance cut. It commented:

NWL delivered net inflows of $2.6bn over the first quarter, which missed our $3.2bn expectation and $3.5bn consensus. Adjusting for two institutional client outflows, the run rate slowed from $2.0bn in the first seven weeks to $1.2bn in the last six weeks, triggering a cut to guidance from $18-20bn to $17-19bn. On a straight-line basis, the result takes $1.3bn off the low end vs. a $1bn downgrade, suggesting management expects to catch-up, assuming 2Q-4Q holds at the old levels.

The MS transition has commenced, but the timing meant there were no contributions in 1Q. Tranches are expected to progress over time but this could still be lumpy vs. a gradual recovery. The run rate needs to lift from current levels unless MS is a $7bn prospect. We continue to position under company guidance, however our estimates are broadly unchanged, with EPS changes of -1%/-2%/-2%.

Big potential returns and a good yield

According to the note, the broker has retained its buy rating and $25.00 price target on the ASX 200 share.

Based on its current share price of $15.42, this implies potential upside of 62% for investors over the next 12 months.

In addition, Bell Potter is forecasting fully franked dividends of 52 cents per share in FY 2027 and then 60 cents in FY 2028. This represents dividend yields of 3.4% and 3.9%, respectively.

This means that a total return of over 65% is on the cards for investors between now and this time next year according to the broker.

Commenting on its recommendation, Bell Potter said:

We maintain our Buy. The exit run rate is running well below the guidance needs but six weeks is a short window, and anecdotally September was a difficult month. NWL reiterated its financial guidance on a pre-acquisition basis despite the slowdown. It continues to expect Paradino will contribute an EBITDA loss of -$3m in FY27. The caveat is that subscriber numbers stepped up in the one month post-acquisition. 

We continue to view equities as challenged based on the required return over cash, and the final form and timing of government tax changes remains uncertain. We like the depressed valuation multiple, and strategic investments made, with early runs on the board. Trading on 28x earnings, the multiple stands at a 5-year low and has retraced back to its historical spread over the S&P/ASX 200.

The post This high-quality ASX 200 share could rise 60% appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to jump

The Australian share market looks set for a great session on Friday following a strong night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 93 points or 1.05% higher this morning. On Wall Street, the Dow Jones was up 1.1%, the S&P 500 rose 0.35% and the Nasdaq edged 0.1% higher.

Oil prices mixed

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch today after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 2.65% to US$97.62 a barrel and the Brent crude oil price is down 0.25% to US$105.81 a barrel. This follows reports that Iran is stepping up attacks on tankers in the Strait of Hormuz.

Buy Netwealth shares

The Netwealth Group Ltd (ASX: NWL) share price offers major upside potential according to Bell Potter. This morning, the broker has retained its buy rating and $25.00 price target on the investment platform provider's shares. It commented: "We like the depressed valuation multiple, and strategic investments made, with early runs on the board. Trading on 28x earnings, the multiple stands at a 5-year low and has retraced back to its historical spread over the S&P/ASX 200."

Gold price jumps

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a good finish to the week after the gold price charged higher overnight. According to CNBC, the gold futures price is up 2% to US$4,191.5 an ounce. Traders were buying gold in response to a weaker US dollar and Treasury yields.

Buy Evolution Mining shares

Bell Potter thinks Evolution Mining shares are undervalued at current levels. This morning, the broker has responded to the gold miner's quarterly update by retaining its buy rating with an improved price target of $15.85. It said: "EVN offers fully unhedged gold and copper exposure via a portfolio of high quality, long-life assets in Tier 1 jurisdictions, overseen by a high-quality management team. EVN has delivered on its promise to increase shareholder returns and gold price exposure. Our NPV-based valuation lifts 2%, to $15.85/sh. We retain our Buy recommendation."

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

What did Netwealth report?

• Total FUA increased by $3.4 billion for the quarter to $139.2 billion (up 15.2% year-on-year).
• Custodial inflows were $7.8 billion; net FUA flows totalled $3.6 billion (excluding pension payments and key outflows).
• FUM net flows reached a record $2.4 billion, lifting total FUM to $36.6 billion (up 24.0% year-on-year).
• Managed Account FUM increased 26.0% to $32.4 billion; Managed Funds rose 10.9% to $4.2 billion.
• Netwealth added 3,822 net new accounts (now totalling 186,098) and 21 new financial intermediary relationships (now 4,226).

What else do investors need to know?

Netwealth made further progress on its platform capabilities with the launch of Individual HIN and Netwealth Private, expanding into stockbroking and private wealth markets. The company also announced the acquisition of Paradino, an AI-powered adviser platform designed to boost adviser productivity, which is expected to close by October 2026.

Operational highlights included a major upgrade to the Managed Accounts platform, strengthening scalability and efficiency. Its virtual assistant Nova and the new Research Hub have supported advisers with tens of thousands of enquiries and investment research in the quarter. Regulatory-wise, Netwealth is defending a class action relating to First Guardian investments but says it continues to deliver on its RISE plan.

What did Netwealth management say?

Chief Financial Officer Hayden Stockdale said:

Our record flows and ongoing investment in technology reflect our focus on supporting adviser growth and client outcomes. Our strategic initiatives are well on track.

What's next for Netwealth?

Looking ahead, Netwealth has updated its FY27 guidance (before Paradino) to target FUA net flows of $17–19 billion and maintain a strong EBITDA margin of approximately 47%. The company expects a low capital expenditure year with strong cash reserves and recurring revenue underpinning predictable results.

After finalising the Paradino deal, Netwealth expects a one-off EBITDA loss of around $3 million for the unit in FY27 and plans to invest a further $10 million over two years to accelerate product development. Paradino's financials will be reported separately.

Netwealth share price snapshot

Over the past 12 months, Netwealth shares have declined 52%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 3% over the same period.

View Original Announcement

The post Netwealth reports record FUA and platform growth in September 2026 quarter appeared first on The Motley Fool Australia.

When share markets look uncertain, I like to hunt around for ASX shares which could drive growth going forward. Here are two which stand out today.

Integral Diagnostics Ltd (ASX: IDX)

The Integral Diagnostics share price has fallen around 0.5% on Wednesday afternoon, to $2.11 a piece. The ASX small-cap healthcare shares are now down 8% over the past month alone, and 16% lower for the year to date.

The healthcare business provides diagnostic imaging to general practitioners, medical specialists, and allied health professionals and their patients. It operates over 90 radiology clinics across Australia and New Zealand.

There hasn't been any price-sensitive news out of the company since it posted its FY26 results in August. Integral Diagnostics reported a 25.6% increase in revenue, a 30.3% increase in operating EBITDA, and a 50.1% increase in operating NPAT.

Despite the strong result, the shares have tumbled downwards. It looks like investors may still be taking gains off the table after a strong rally through July and August.

At the same time, ASX healthcare stocks have generally trended downwards over the past month as a result of pressure from the latest Reserve Bank hike, higher inflation, and a sector wide rotation away from healthcare shares into more stable and defensive assets.

And Integral Diagnostics wasn't immune.

Market Index data shows all brokers have a strong buy rating on the shares. And the $3.07 average target price implies an upside of 46%, at the time of writing.

Netwealth Group Ltd (ASX: NWL)

Netwealth Group shares are also down around 1% at the time of writing on Wednesday. They've now reached a 12-year low of $16.82 a piece. The shares have crashed around 33% over the past two months, and they're now down 35% for the year to date.

Netwealth is a financial services and technology company which provides a wide range of products and services to the Australian financial investment industry, including cloud-based investment administration software as a service (SaaS), a retail superannuation fund, and an administration business.

The company posted an impressive FY26 result in August, including a 20.6% increase in total income and a 18% increase in EBITDA. 

Despite the good result, the ASX financial shares were caught up in a board-based sell-off across the financial sector over the past two months, driven by inflation concerns and higher interest rates.

Then, last month, the company announced that two of its subsidiaries have been served a class action over its failed First Guardian Master Fund.

Class action was lodged against Netwealth Investments Limited and Netwealth Superannuation Services Pty Ltd concerning First Guardian investment options. 

Netwealth previously paid around $101 million in compensation to affected members and had already addressed the issue with ASIC. The compensation program was completed in January 2026.

Netwealth has confirmed it intends to defend the class action.

Investors might be wary about the stock, but the experts are still bullish.

Market Index data shows the majority of brokers have a strong buy rating on the shares. And the $27.24 average target price implies an upside of around 62%, at the time of writing.

The post Brokers tip these 2 ASX shares to jump 46% and 62% appeared first on The Motley Fool Australia.

Think about shares such as REA Group Ltd (ASX: REA), Pro Medicus Ltd (ASX: PME), and TechnologyOne Ltd (ASX: TNE). 

They have demonstrated how rewarding it can be when a company keeps growing earnings over many years, delivering average total returns of over 15% per annum over the past 15 years.

For example, a $10,000 investment growing at an average of 15% a year would have become approximately $80,000 over 15 years, without another dollar being invested.

Of course, returns like that are far from guaranteed. But it demonstrates why finding a business capable of growing for decades can be so rewarding.

The biggest challenge is recognising one before most of its growth has happened.

The good news is that I've identified three ASX shares that I believe deserve attention.

Life360 Inc (ASX: 360)

The first is Life360, which has built a family safety platform offering location sharing, driving reports, crash detection, and other services.

What I like about the ASX tech share is the size of the audience it has already built and how much more valuable that audience could become.

At the end of June, the company had 102.4 million monthly active users globally. Around 54 million were in the United States, with another 48.4 million elsewhere.

I see little reason why Life360's international business couldn't eventually become significantly larger than its US operations, particularly as awareness of the platform increases globally.

And because most people use the service for free, there is plenty of room to increase revenue through paid memberships, advertising, and additional services as the audience grows.

There is still a lot of work to do, particularly when it comes to generating more revenue from international users. But if Life360 can keep expanding its audience while converting more users into paying customers, I think it could be a significantly larger and more profitable business in another decade.

However, Life360 isn't the only business that caught my attention.

The next company has recently secured billions of dollars in contracts, potentially transforming its growth outlook. The third has an entirely different opportunity that could allow it to keep growing for many years.

Megaport Ltd (ASX: MP1)

Another ASX share that I think has the potential to become a great compounder is Megaport.

It originally made its name helping businesses connect quickly and easily to cloud providers and data centres.

That is still an attractive market to operate in. As companies use more cloud services and move increasing amounts of data around the world, demand for flexible connectivity should continue growing.

But Megaport's acquisition of Latitude.sh has been a game-changer and opened up a much larger opportunity.

The company can now provide computing capacity alongside its existing networking services, giving it exposure to the enormous investment taking place in artificial intelligence (AI) infrastructure.

And it hasn't taken long for this strategy to start producing results. Since April, Megaport has announced approximately $2.3 billion in strategic AI infrastructure contracts.

Those agreements have already prompted management to upgrade its FY 2027 revenue guidance to between $720 million and $810 million.

That's more than double the $312.2 million it recorded in FY 2026.

It is worth remembering that building and operating AI infrastructure requires substantial investment, with Megaport expecting capital expenditure of approximately $1.8 billion in FY 2027.

It also needs to deliver the projects successfully and generate attractive returns on that investment.

But if Megaport can demonstrate that its expanding infrastructure business is capable of generating strong and sustainable cash flows, the opportunity could be enormous.

Netwealth Group Ltd (ASX: NWL)

A final ASX share that I think deserves attention is Netwealth.

It operates in a market that most Australians are already familiar with. That is superannuation and investing.

The company provides the technology and administration services used by financial advisers to manage their clients' wealth.

And I think it has an excellent opportunity to keep taking market share from older investment platforms.

One reason is that advisers increasingly want sophisticated systems that make it easier to manage portfolios, produce reports, and offer clients a wide range of investments.

Netwealth has invested heavily in its technology to meet those needs.

Once advisers move their clients onto the platform, those relationships can also be difficult to replace. Switching providers can involve significant work, particularly when large numbers of client accounts are involved.

This gives Netwealth an opportunity to keep growing alongside its existing customers while attracting new advisers.

The company's recent performance shows how well the strategy has been working. At the end of June, Netwealth had $135.7 billion in funds under administration, representing growth of approximately 20% over the previous year.

Management is now targeting net inflows of between $18 billion and $20 billion in FY 2027 and has an ambition to double funds under administration over four years. 

If it can achieve anything close to that, I think earnings could grow very strongly.

There are risks, of course. Weaker financial markets could reduce the value of assets on the platform, while competition remains strong.

Netwealth is also defending a class action relating to First Guardian investment options. I wouldn't dismiss that issue lightly, particularly when trust is so important in financial services.

Nevertheless, I believe Netwealth has a significant opportunity to keep growing as Australians build their retirement savings and advisers seek better technology.

The post I searched for the next great ASX compounder. These shares deserve attention appeared first on The Motley Fool Australia.

Over 12 months, the market is down 4.21%.

The US-Iran war, high oil prices, rising interest rates, and multi-decade-high bond yields are weighing on share price valuations.

However, experts say there are buying opportunities amid today's turbulent trading conditions.

Let's check them out. 

CAR Group Ltd (ASX: CAR)

The CAR share price is $22.02, down 0.23% today and down 43% over 12 months. 

Arthur Garipoli from Dolphin Partners has a buy rating on this ASX consumer discretionary share. 

Garipoli said (courtesy The Bull):

This online automotive platform operator recently posted a solid fiscal year 2026 result.

Reported revenue of $A1.253 billion was up 6 per cent on the prior corresponding period. Reported net profit after tax of $A314 million was up 14 per cent.

The stock has fallen on AI disruption concerns. At recent levels, the stock screens favourably on a risk adjusted returns basis.

The company expects to generate high single digit revenue growth in Australia in fiscal year 2027 and double digit revenue growth in constant currency in North America and Latin America.

Global Lithium Resources Ltd (ASX: GL1)

The Global Lithium Resources share price is $1.01, up 1.51% today and up 181% over 12 months. 

Shaw & Partners has a buy recommendation on this ASX lithium share. 

The broker has a 12-month share price target of $1.75 on Global Lithium Resources shares.

In a new note, Shaw & Partners said: 

Global Lithium Resources Limited (ASX: GL1) has released its Manna-Nova Integration Study, the first quantified assessment of a streamlined development pathway that treats Manna ore at the recently acquired Nova processing plant.

By utilising Nova's existing infrastructure ($7m acquisition) via a 135km haul route, GL1 avoids the $440m greenfield concentrator build proposed in the Dec'25 DFS.

Integrating targeted process additions onto Nova's established brownfield foundation significantly reduces upfront capital requirements, de-risks project delivery, and accelerates the timeline to first cash flow.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is $17.03, down 0.76% today and down 44% over 12 months. 

In a new note, Bell Potter retained its buy call on this ASX financial share. 

However, the broker reduced its 12-month share price target from $30 to $25.

Bell Potter said: 

Maintain Buy. Given interest rates,we have moved our valuation multiple to 2022-23 levels with a class action provision.

Our flow expectations are below FY27 guidance.

NWL has operated in similar environments,with large withdrawals and clients moving off platform.

FY23 flows landed -10% below the guidance and growth was restored in 12mths.

Our $17.9bn matches this experience. So far, we are 6mths into the cycle.

The post 3 ASX shares to buy amid a volatile market: experts appeared first on The Motley Fool Australia.

Let's start the new week with some fresh ratings from the experts (courtesy The Bull). 

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is $17.04, down 1% today and down 44% over 12 months. 

Steven Springford from Catapult Wealth has a buy rating on this ASX financial share. 

Springford said: 

This financial services company operates an investment management platform used by financial advisors in Australia.

The company delivered record total income of $391.1 million in full year 2026, an increase of 20.6 per cent on the prior corresponding period. Platform revenue increased 21 per cent. Record adjusted net profit after tax of $135.4 million was up 16.2 per cent.

The company is expecting even stronger inflows in fiscal year 2027.

Netwealth is well positioned to capture increasing market share. The weaker share price is appealing at these levels.

Develop Global Ltd (ASX: DVP)

The Develop Global share price is $4.40, up 1% today and up 1% over 12 months. 

Arthur Garipoli from Dolphin Partners Financial Services has a hold rating on this copper and zinc miner.

He said: 

DVP projects include Woodlawn, Yitirrti and the Pioneer Dome. Fiscal year 2027 will include a full year of production from the Woodlawn copper-zinc mine in New South Wales and the start of lithium direct shipping ore sales at the Pioneer Dome lithium mine in Western Australia.

The Woodlawn operation is expected to mine between 21,000 and 23,500 tonnes of contained copper equivalent metal in full year 2027, providing a strong cash flow base.

Cash flow will also be supported by first production and sales at the Pioneer Dome in the December quarter. DVP has a history of moving development projects into production amid the company embarking on its next growth stage.

Myer Holdings Ltd (ASX: MYR)

The Myer share price is steady at 19 cents on Monday, and down 62% over 12 months. 

Garipoli has a sell rating on this ASX consumer discretionary share. 

Garipoli explained: 

This department store retailer recently posted a statutory loss after tax of $276.5 million in full year 2026, down 35.3 per cent on an actual basis. A one-off, non-cash, post tax impairment was $279.6 million.

Underlying net profit after tax of $42.5 million was 2.9 per cent lower on an actual basis. Comparable sales grew 0.7 per cent.

No final dividend was declared.

Myer is now relying on the upcoming Christmas period to bolster sales. But challenges persist given a higher interest rate environment and soaring cost of living expenses.

The post Buy, hold, sell: Myer, Develop Global, Netwealth shares appeared first on The Motley Fool Australia.

Three broker buy ratings that you might want to know more about are summarised below. Here's why brokers think these ASX shares are in the buy zone:

Megaport Ltd (ASX: MP1)

According to a note out of Bell Potter, its analysts have initiated coverage on this cloud infrastructure provider's shares with a buy rating and $27.00 price target. Bell Potter believes Megaport is exceptionally well-placed for growth over the coming years thanks to strategic contracts which are being rolled out this year. In fact, the broker believes that underlying EBITDA will grow from $77 million in FY 2026 to $329 million in FY 27 and then $726m in FY 2028. Importantly, it notes that all the capex required for the roll out of the strategic contracts is fully funded. Bell Potter also highlights that Megaport is trading on an FY 2028 EV/EBITDA multiple of around 7x, while the median multiple of the domestic comps is around 15x and international comps is around 11x (based on 2027 forecasts). The Megaport share price ended the week at $22.34.

Navigator Global Investments Ltd (ASX: NGI)

A note out of Morgans reveals that its analysts have retained their buy rating and $3.04 price target on this global investments company's shares. The broker notes that Navigator Global has agreed to sell a stake in Invictus Capital Partners to New York Life Investment Management. It points out that the sale crystallises a premium of up to ~8% to cost on the initial 12.7% stake, while the company keeps its carry and future upside through a residual 8.3% stake. The good news is management believes the retained stake could be worth meaningfully more, on a pro-rata basis, when it is transferred in 2031, helped by the New York Life Investment Management partnership. In Morgans' view, the sale shows the optionality and embedded value in its portfolio. The Navigator Global share price was fetching $2.30 at Friday's close.

Netwealth Group Ltd (ASX: NWL)

Another note out of Bell Potter reveals that its analysts have retained their buy rating on this investment platform provider's shares with a reduced price target of $25.00. The broker has updated its model to reflect equity market movements and commentary on net flow expectations. Bell Potter believes that consensus forecasts are too high. It notes that they imply that net inflows would be run rating at the upper end of the $18 billion to $20 billion guidance range during the final six weeks of the first quarter despite equity markets weakening. Nevertheless, the broker remains positive and sees value in its shares at current levels. As a result, it thinks investors should be buying the dip. The Netwealth share price ended the week at $17.21.

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

The three below are exposed to very different industries, but each has a growth story I think could have plenty further to run.

Here is why they make my October buy list.

NEXTDC Ltd (ASX: NXT)

NEXTDC is my pick for exposure to the rapid growth in digital infrastructure.

The company is benefiting from rising demand for data centre capacity as artificial intelligence (AI), cloud computing, and other digital services require more computing power.

That demand is already showing up in the business. In FY26, net revenue increased 16% and underlying EBITDA rose 15%. More importantly for the years ahead, contracted utilisation more than tripled as customers locked in substantial amounts of future capacity.

That gives NEXTDC a large pipeline of business that should progressively move into revenue as new capacity comes online.

There is still plenty to execute, particularly given the enormous investment required to build data centres. But I think NEXTDC has a much clearer growth runway today than it did a few years ago.

That puts this ASX share firmly on my October buy list.

CSL Ltd (ASX: CSL)

CSL makes the list for a completely different reason.

FY26 was a difficult year, but I think the healthcare giant now has a clearer opportunity to rebuild growth.

Underlying demand for immunoglobulin therapies remains healthy, while CSL has been improving efficiency across its plasma collection network and investing in manufacturing technology designed to increase yields.

Newer products also give the company additional avenues for growth.

For me, the opportunity is not dependent on CSL suddenly returning to the growth rates investors once expected. A steady recovery in margins, improving plasma economics, and continued demand for its therapies could be enough to produce a much healthier earnings trajectory over the next few years.

I think that makes the current recovery story worth buying into.

Netwealth Group Ltd (ASX: NWL)

Netwealth rounds out my three October picks.

The wealth platform provider continues to attract substantial amounts of investor money, which gives the business a growing base from which to generate revenue.

I like the structural story here. Financial advisers and their clients are increasingly using modern investment platforms to manage portfolios, reporting, administration, and other parts of their wealth.

Netwealth has established itself as one of the major beneficiaries of that shift and continues to win new funds onto its platform.

That creates a relatively straightforward growth opportunity. If more advisers and investors choose Netwealth, the amount of money administered through the platform can keep expanding alongside earnings.

For me, that makes Netwealth a quality ASX growth share I would be happy to buy in October and hold for many years.

Foolish takeaway

I am looking beyond what these companies might deliver over the next few months and focusing on the long term.

NEXTDC already has a huge pipeline waiting to be built, CSL has an opportunity to restore momentum, and Netwealth continues taking a larger share of Australia's wealth platform market.

Those are growth stories I think still have plenty of chapters left, which is why all three ASX shares would be on my buy list in October.

The post Top ASX shares to buy in October 2026 appeared first on The Motley Fool Australia.

That's because the broker believes it could deliver a total return of around 50% over the next 12 months.

Which ASX 200 share?

The share that Bell Potter is recommending to clients is Netwealth Group Ltd (ASX: NWL).

It is an investment platform provider used by over 4,000 financial advisers and with over $135 billion in funds under administration (FUA).

Bell Potter has updated its forecasts to reflect weaker equity markets. It said:

We update our model to reflect equity market movements and comment on net flow expectations. Consensus forecasts appear too high, implying the upper end of the $18-20bn guided range is achieved over the last 6 weeks of 1Q. This compares to $14bn run rate over the first 7 weeks. Equity markets have also weakened since the trading update, with September the second worst performing month this year behind March.The local share market declined by -4%. We make no EPS changes, having already factored in the negative mark-to-market impact of the drawdown.

The broker also highlights that it thinks consensus estimates for net inflows is too high and is forecasting inflows of $3.2 billion for the first quarter. It adds:

Guidance stands between $18-20bn. This is subject to sentiment and the economic and regulatory environment. Our 1Q net inflow forecast is $3.2bn vs. $3.5bn consensus. NWL reported $1.4bn of net inflows between 30 June and 21 August with a one-off institutional outflow worth $0.6bn. That equates to a $1.2bn monthly run rate. Our estimate assumes a $1.4bn exit rate vs. $1.7bn consensus. Flows have been running around that range already before MS Wealth contribution.

However, despite this, the broker remains very positive on the ASX 200 share and sees recent share price weakness as a buying opportunity.

Big potential returns

According to the note, the broker has retained its buy rating on the ASX 200 share with a trimmed price target of $25.00 (from $30.00).

Based on the current Netwealth share price of $16.69, this implies potential upside of 50% for investors between now and this time next year.

In addition, the broker is forecasting a fully franked 3.1% dividend yield in FY 2027 (and 3.6% in FY 2028 and 4.1% in FY 2029), which boosts the total 12-month return to over 50%.

Commenting on its buy recommendation, Bell Potter said:

Maintain Buy. Given interest rates, we have moved our valuation multiple to 2022-23 levels with a class action provision. Our flow expectations are below FY27 guidance. NWL has operated in similar environments, with large withdrawals and clients moving off platform. FY23 flows landed -10% below the guidance and growth was restored in 12mths. Our $17.9bn matches this experience. So far, we are 6mths into the cycle.

The post This ASX 200 share is tipped to return over 50% appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set for a better session on Friday following a positive night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 48 points or 0.55% higher this morning. On Wall Street, the Dow Jones was up 0.05%, the S&P 500 rose 0.2%, and the Nasdaq edged 0.05% higher.

Oil prices charge higher

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS)could have a strong finish to the week after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 3% to US$93.13 a barrel and the Brent crude oil price is up 4.6% to US$102.57 a barrel. This follows reports that the US has sent a third aircraft carrier to the Middle East.

Megaport shares given buy rating

The Megaport Ltd (ASX: MP1) share price could be heading even higher according to Bell Potter. This morning, the broker has initiated coverage on the cloud infrastructure provider's shares with a buy rating and $27.00 price target. It commented: "We initiate coverage of Megaport with a BUY recommendation and $27.00 target price. […] In our view Megaport looks value trading on an FY28 EV/EBITDA multiple of c.7x when the median multiple of the domestic comps is c.15x (based on FY28 forecasts) and international comps is c.11x (based on 2027 forecasts)."

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a good finish to the week after the gold price rose overnight. According to CNBC, the gold futures price is up 0.5% to US$4,207.6 an ounce. Easing US Treasury yields gave the precious metal a boost.

Buy Netwealth shares

It could be a good time to buy Netwealth Group Ltd (ASX: NWL) shares according to Bell Potter. This morning, the broker has retained its buy rating on the investment platform provider's shares with a trimmed price target of $25.00 (from $30.00). It said: "Given interest rates,we have moved our valuation multiple to 2022-23 levels with a class action provision. Our flow expectations are below FY27 guidance. NWL has operated in similar environments, with large withdrawals and clients moving off platform.FY23 flows landed -10% below the guidance and growth was restored in 12mths. Our $17.9bn matches this experience. So far, we are 6mths into the cycle."

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

I'm going to look at two ASX shares that are very positively rated by experts, with lots of buy calls on the stocks.

When one expert thinks a business is a buy, it could be interesting idea. When there are numerous buy ratings, that could be a clear opportunity.

Netwealth Group Ltd (ASX: NWL)

Netwealth describes itself as a financial services company. It provides a number of services including superannuation (accumulation and retirement income products), investor-directed portfolio services for self-managed super and non-super investments, managed accounts, managed funds, SMSF admin services and non-custodial admin and reporting services.

According to CMC Invest, there have been 12 ratings on the business within the last three months. Nine of those analyst calls were a buy and three were a hold. The average price target of those 12 ratings was $27, implying a possible rise of 43% over the next year, from where it is at the time of writing.

The company continues to win more funds under administration (FUA), grow market share and win more advisors.

The ASX share reported that in FY26, total income grew 20.6% to $391.1 million, operating profit (EBITDA) rose 18% to $192.9 million, and net profit after tax (NPAT) climbed 16.2% to $135.4 million.

Netwealth expects FY27 FUA net inflows of between $18 billion to $20 billion, an increase of between 17% to 30% compared to FY26. It also recently announced the $20 million acquisition of Paradino, a leading AI-enabled advice workflow and automation platform for financial advisors.

Paladin Energy Ltd (ASX: PDN)

The other ASX share I'll highlight is Paladin Energy, a uranium producer with 75% ownership of the Langer Heinrich Mine in Namibia.

It's also progressing development of the Tier-1, high grade and shallow Patterson Lake South project in northern Saskatchewan. The ASX share has a portfolio of exploration assets within the province's highly prospective Athabasca Basin and also at the Michelin project in Newfoundland and Labrador.

On top of that, it owns uranium exploration assets in Queensland and Western Australia.

According to CMC Invest, there have been 13 analyst ratings on the business within the last three months. Ten of those analyst calls were a buy, one was a hold and two were a sell. The average price target of $13.55 suggests a possible annual rise of 33% from where it is at the time of writing.

FY26 was a strong year for the business. Its average realised (sold) price rose 7% to US$70 per pound, revenue grew 71% to US$304 million, gross profit improved $78.3 million to $52.2 million and operating cash flow surged $41.5 million to $37.7 million.

As we can see, its financials are significantly improving and the company is working unlocking further uranium production in the future.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

Netwealth shares have plunged 5.72% to $17.47 in midday trade, after falling as low as $17.22 earlier in the session.

The wealth management stock has now lost more than 20% over the past month and is trading almost 50% below its 52-week high of $33.62.

And today's announcement has given investors another reason to be concerned.

So, what has happened this time?

Netwealth faces class action

The selling follows an ASX announcement confirming that Netwealth is facing a class action over the failed First Guardian Master Fund.

The company revealed that two of its subsidiaries have now been served with a Statement of Claim.

At the centre of the case are First Guardian investment options offered through the Netwealth Superannuation Master Fund.

These were available to adviser-led members from March 2021, before Netwealth stopped accepting new investments in December 2022.

The company says it intends to defend the claim.

According to the release, the allegations cover matters previously addressed through a court-enforceable undertaking with ASIC.

The regulator accepted that undertaking in December 2025 and began Federal Court proceedings over the same issues.

Netwealth also reminded investors that it completed a compensation program in January 2026.

That saw around $101 million paid to affected members, covering the net capital each had invested in First Guardian.

What happened to investors' money?

There was a lot of money tied up in First Guardian before things went wrong.

Between March 2021 and December 2022, 1,303 Netwealth members invested approximately $128.5 million in the fund.

Then, in May 2024, fund operator Falcon Capital froze withdrawals.

By that stage, around 1,080 members still had approximately $100.7 million invested.

The matter eventually ended up in the Federal Court.

In August, the court found that Netwealth's subsidiaries had breached the Corporations Act in how they handled the investments.

They hadn't gathered enough information about First Guardian or made adequate independent checks into the risks involved.

Members also weren't warned that they might struggle to access their money if the fund became illiquid.

ASIC didn't seek a financial penalty, pointing to Netwealth's timely compensation of affected investors.

What's next for Netwealth shares?

Netwealth has already paid around $101 million in compensation, but it still has another legal battle on its hands.

And there's still the question of what this latest case could mean financially.

With shares continuing to fall, investors clearly aren't thrilled about another round of legal proceedings.

Personally, I wouldn't rush in just because the stock has fallen so far.

The post Why are Netwealth shares crashing 6% on Friday? appeared first on The Motley Fool Australia.

What did Netwealth report?

• Class action lodged against Netwealth Investments Limited and Netwealth Superannuation Services Pty Ltd concerning First Guardian investment options
• Netwealth has already paid $101 million in compensation to impacted members
• Original issues were subject to a court-enforceable undertaking with ASIC
• Compensation program was completed in January 2026

What else do investors need to know?

Netwealth has confirmed it intends to defend the class action. The company clarified that the matters underlying the claim had been previously addressed in partnership with ASIC, and compensation was paid by January 2026.

The claim does not relate to current platform features or operations. Netwealth's full range of financial products, services, and technological capabilities remain unaffected, and day-to-day operations are continuing as normal.

What's next for Netwealth?

Netwealth's future focus is on defending the claim while maintaining strong governance and customer trust. The company continues to invest in technology, customer support, and governance to ensure its platform and client services remain industry-leading.

Investors can expect updates on the legal proceedings as they progress. Netwealth remains committed to transparent communication and operating in the best interests of its stakeholders.

Netwealth share price snapshot

Over the past 12 months, Netwealth shares have declined 38%, trailing the S&P/ASX 200 Index (ASX: XJO), which has fallen 1% over the same period.

View Original Announcement

The post Netwealth faces class action after compensation payments appeared first on The Motley Fool Australia.