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

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

Cogstate Ltd (ASX: CGS)

Bell Potter has added Cogstate to its best ideas list in March. It is a healthcare technology company specialising in digital cognitive assessments. These are primarily for biopharma clinical trials across central nervous system indications including Alzheimer's disease, rare diseases, and broader CNS conditions.

The broker believes there are a number of tailwinds that should be supportive of the strong pipeline momentum it reported in the first half. The broker explains:

We add Cogstate (CGS) as a high-quality healthcare service provider in the clinical trials industry. We see several positive thematics likely to maintain the strong pipeline momentum seen in 1H26, including: 1) ongoing industry R&D in Alzheimer's disease where CGS has clear expertise and leadership, 2) continued diversification beyond Alzheimer's into a broader range of indications, and 3) expanded customer access via channel partners such as Medidata.

The stock is trading at ~11x forward EV/EBITDA which looks very undemanding relative to local small cap healthcare peers (>30x avg) and large global peers (~13x avg with lower growth). The company has an impressive NAPT margin of 19% in FY25 and is well poised for leverage off the back of its second-best ever half of new sales in 1H26 which grew revenue backlog up to US$92m.

Praemium Ltd (ASX: PPS)

Another ASX share that Bell Potter is recommending to clients is Praemium. It is a financial technology company that operates an investment platform offering alongside a branded online portfolio administration service. It currently manages over $60 billion in custodial and non-custodial FUA.

Bell Potter believes that Praemium's shares are undervalued, especially compared to its peers. But the broker doesn't expect it to stay that way for long. It explains:

While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~15.9x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

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

Right now, the team at Bell Potter sees significant value on offer with the small-cap ASX share in this article.

Which small-cap ASX share?

The small-cap that Bell Potter is tipping as a buy is Praemium Ltd (ASX: PPS).

It is a growing investment platform and branded online portfolio administration service provider.

The broker notes that following the launch of Spectrum in 2024, the small-cap ASX share integrates heritage managed models with broader investment options for a complete high net worth value proposition.

Bell Potter was pleased with Praemium's performance in the first half of FY 2026 and believes synergies are on the way. It said:

PPS delivered a strong result, consistent with prior aspiration for double digit revenue growth and slight operational leverage. PPS does not provide net inflow guidance but mentioned it expects meaningful flows to follow the recent client onboarding. Things generally sound better with PPS now on track to realise +$3m run-rate EBITDA from OV before incrementing. Levers to achieving this include the final FTE synergies, and ending of the TSA, completed in Feb'25, providing confidence in the target.

Commenting on the result, the broker adds:

Pro-forma revenue of $56.0m was up +5% on pcp against our $55.6m forecast with Platform revenue ex-churn from OV up +10% on pcp. […] EBITDA of $15.2m was up +18% on pcp. PPS continued to exercise measured cost growth around mid-single digits and captured some initial synergies, the net effect of this driving outperformance against our $14.8m forecast. Below EBITDA line, items were broadly in-line with our thinking, where NPAT of $8.7m was up +11% on pcp.

Big potential returns

The broker sees potential for Praemium's shares to rise strongly from current levels. According to the note, it has retained its buy rating and $1.20 price target on its shares.

Based on its current share price of 71 cents, this implies potential upside of approximately 69% for investors over the next 12 months.

Overall, Bell Potter believes that things are looking up for this small-cap and is expecting double-digit revenue growth through to at least 2028. It concludes:

PPS offered little surprises and remains well placed to reinvigorate sales growth while making the operations leaner. Our Buy rating is unchanged and we continue to see an opening to achieve double digit revenue growth, amplified through cost-out measures.

The post Why this small-cap ASX share could rise 69% appeared first on The Motley Fool Australia.

At the time of writing, the investment platform provider's shares are up 15.67% to 77.5 cents. By comparison, the All Ordinaries Index (ASX: XAO) is 0.3% higher.

Despite the sharp move, the stock remains down around 2.5% in 2026 to date.

Here's what the company announced.

Praemium outlines technology restructure

After market close on Monday, Praemium confirmed it will undertake a major organisational restructure focused on its technology division.

The move follows the acquisition of Tecknowledge Group Pty Ltd, known as Technotia Laboratories, last month. Management said the restructure will reshape the cost base and improve the performance and functionality of its technology platform.

As part of the changes, Praemium will reduce duplicate IT development, maintenance and infrastructure roles. The integration of Technotia's capabilities is expected to enhance automation and overall system performance.

The company also confirmed it will close its longstanding software development operations in Armenia by the end of the 2026 financial year.

Management targets significant cost reductions

Praemium expects the restructure to deliver material cost reductions once implemented.

In Australia, headcount is anticipated to fall by around 15%, reducing direct staff salaries by approximately $9 million. In Armenia, further reductions of about 13% of the pre restructure base are expected, lowering direct staff salaries by around $3.5 million.

After including the Technotia team, Praemium expects its overall annual technology salary budget, excluding incentives, to decline by roughly $9 million on a run rate basis. That compares to its position before the acquisition.

Any savings in FY26 will be offset by one off redundancy costs estimated at approximately $3.3 million. Further details on operating cost and capital expenditure impacts are expected when the company reports its half-year results on 23 February 2026.

The company has faced pressure on margins in recent periods as it invested heavily in platform development and growth initiatives. Investors have been watching closely for signs that spending is being brought under tighter control without slowing product improvements.

Focus shifts to margin outlook

While restructures can create short term disruption, investors appear focused on the longer-term margin implications.

Praemium operates an integrated platform that provides custody and non-custody investment solutions to advisers and wealth managers. In its recent quarterly update, the company reported platform funds under administration of $32.5 billion, up 8% year-on-year.

With the share price under pressure in recent months, today's update indicates management is focusing on cost control and margin stability.

The post This ASX tech stock is rocketing 15% today. Here's why appeared first on The Motley Fool Australia.

Listed below are two that experts are tipping as buys and one that they believe investors should be selling, courtesy of The Bull.

Here's what they are recommending:

4DMedical Ltd (ASX: 4DX)

The team at Ord Minnett thinks that respiratory imaging technology company 4DMedical is a small-cap ASX share to sell now.

However, this isn't due to a lack of quality. The recommendation is based on valuation grounds after a very strong rise over the past 12 months. It explains:

4DX enjoyed a positive start to calendar year 2026 after the company announced UC San Diego Health had adopted its CT:VQ product. Also, the company completed a $150 million institutional placement to primarily accelerate the commercialisation of CT:VQ. The share price has risen from 32 cents on June 2, 2025 to trade at $3.16 on February 5, 2026. In our view, there's a growing disconnect between 4DX's valuation and the uncertainty around near term CT:VQ revenue generation. While we remain positive on 4DX's technology, we pull back to a sell recommendation on valuation grounds.

Legacy Minerals Holdings Ltd (ASX: LGM)

Over at Alto Capital, analysts think this mineral exploration company is a buy.

It notes that the company is due to release its scoping study for Mt Carrington in the coming months, which could be a positive catalyst for its shares. Alto Capital said:

This exploration company focuses on gold, silver and base metals targets in New South Wales, with its flagship Mt Carrington project located in the Lachlan Fold Belt. Recent funding has strengthened the balance sheet and supports ongoing drilling across priority targets. The company is also expected to release a revised scoping study for Mt Carrington in March, providing a key near term catalyst. While early stage exploration carries inherent geological risk, any success at Mt Carrington would be significant given LGM's modest market capitalisation.

Praemium Ltd (ASX: PPS)

This investment platform provider's shares could be a buy according to analysts at Ord Minnett.

It has been pleased with its performance in FY 2026 and believes the trend can continue thanks to its improving outlook. Ord Minnett explains:

PPS provides an investment platform to enable financial advisers to manage client accounts. The company's second quarter update in fiscal year 2026 revealed some encouraging trends, even if progress was uneven across its products. Improving inflows to the Powerwrap platform was a highlight, while Praemium SMA was impacted by a client transition. Overall, net inflows were solid and platform funds under administration of $32.5 billion were up 8 per cent and in line with expectations. We still see an improving outlook for PPS.

The post Experts name 2 small-cap ASX shares to buy and one to sell appeared first on The Motley Fool Australia.

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

29Metals Ltd (ASX: 29M)

The 29Metals share price is down 31% to 42.7 cents. The catalyst for this has been the copper miner undertaking an equity raising. 29Metals revealed that it has raised $119 million from institutional investors at an offer price of 40 cents per new share. This represents a 35.5% discount to its last closing price of 62 cents. 29Metals' CEO, James Palmer, commented: "This equity raising is expected to allow us to maintain our commitments to our strategic growth objectives to accelerate value realisation across the portfolio. Specifically, the ongoing investment in Gossan Valley, progression of a Restart Definitive Feasibility Study at Capricorn Copper and drilling to test priority exploration targets across the portfolio."

Navigator Global Investments Ltd (ASX: NGI)

The Navigator Global Investments share price is down 3.5% to $3.10. This may have been driven by a broker note out of Morgans. According to the note, the broker has downgraded the investment company's shares to an accumulate rating (from buy) but with an improved price target of $3.71.

Praemium Ltd (ASX: PPS)

The Praemium share price is down 6.5% to 78.5 cents. This morning, this investment platform provider released its second quarter update. Praemium revealed a 14% increase in funds under administration to $70.5 billion. This may have been softer than the market was expecting. The company's CEO, Anthony Wamsteker, was pleased with the quarter. He said: "The December quarter continued to see strong inflows into Spectrum. We are pleased that the demand we're seeing reflects the strength of our offering and the opportunity to grow our market share in the HNW segment. Since launch we have achieved $1.4 billion in new business gross inflows."

Xero Ltd (ASX: XRO)

The Xero share price is down 4.5% to $99.43. This has been driven by broad weakness in the tech sector on Wednesday following a poor night of trade on Wall Street's Nasdaq index. It isn't just Xero that is falling today. Almost all tech stocks are being sold down. This has led to the S&P/ASX All Technology Index dropping 2.75% at the time of writing.

The post Why 29Metals, Navigator Global, Praemium, and Xero shares are sinking today appeared first on The Motley Fool Australia.

In fact, if it is on the money with its recommendation, this ASX AI stock could deliver market-beating returns over the next 12 months.

What is the broker saying?

Bell Potter notes that the investment platform provider is leaning into artificial intelligence (AI) with the announcement of the acquisition of Technotia Laboratories for $7.5 million.

Commenting on the deal, the broker said:

We view the acquisition of Technotia Laboratories as value accretive and strategic – it requires low post-synergies incremental EBIT and AI-led product development creates potential upside to the trading multiple – should demand materialise.

Technotia is a business of multi-disciplinary scientists who apply an evidence-based approach to test ideas through computing machinery and intelligence. PPS originally engaged with Technotia to uplift its superannuation offering in 2H24 – so we view the acquisition as carrying high visibility. Other example third party engagements include the delivery of a truss system for Perth Stadium and patented servers with improved compute power

Time to buy this ASX AI stock

According to the note, the broker has responded to the news by retaining its buy rating and $1.05 price target on Praemium's shares.

Based on its current share price of 77 cents, this implies potential upside of over 36% for investors over the next 12 months.

In addition, Bell Potter expects Praemium's shares to provide an attractive 3.2% dividend yield in FY 2026. This boosts the total potential return to approximately 40%.

To put that into context, a $10,000 investment in this ASX AI stock would be worth approximately $14,000 by the end of next year if the broker is on the money with its recommendation.

Commenting on its buy rating, Bell Potter said:

Maintain Buy. PPS has been eying acquisitions after OneVue – and Technotia looks to provide ROIC above the company's WACC, differentiating and applying expertise over the platform. Our hurdle $0.9m NOPAT has vendor contract, technology and employee cost line-item levers, with additional FUA providing potential upside to the accretion.

PPS enters FY26 with an improvement in cash operating expenses as FUA and attaching revenue scale and is set to benefit from an additional +$3m run-rate cost out from 1H26 following the integration of OneVue. We think PPS has extensive growth runway with low single digit market share and is set to benefit from contract win momentum translating into revenue.

The post Why this ASX AI stock could return 40% in 2026 appeared first on The Motley Fool Australia.

Since the start of 2025, the S&P/ASX Small Ordinaries index has risen by a sizeable 17%.

As a comparison, the widely followed All Ordinaries index is only up by 4.9% since the turn of the year.

With that in mind, if you are wanting to gain exposure to the small side of the market, then it could be worth hearing what Bell Potter is saying about the three small cap ASX shares listed below.

Here's why it thinks they are among the best to buy for 2026:

Integral Diagnostics Ltd (ASX: IDX)

This diagnostic imaging company could be a top pick small cap investors according to Bell Potter.

It likes the company due to its merger with Capitol Health, which has boosted its network to 151 clinics. It also sees opportunities to continue its growth through greenfield and brownfield investments, as well as mergers and acquisitions (M&A). It said:

The merger between Integral Diagnostics and Capitol Health results in a diagnostic imaging (DI) company which operates 151 clinics throughout Australia. Its strongest presence will be within Victoria and Queensland (67 & 41 locations respectively) with minor penetration in the other States. The company offers a range of imaging modalities through its clinics with the largest contribution to revenue from CT (31%) followed by US (24%), MRI (13%) and X-Ray / Diagnostic Radiology (11%), and Nuclear Medicine PET (5%). The growth strategy has centred around a combination of greenfield & brownfield investments and M&A opportunities.

Kinatico Ltd (ASX: KYP)

Another small cap ASX share that Bell Potter is bullish on is know your people solutions provider Kinatico.

It sees opportunities for the company to grow strongly through leveraging its large customer base. The broker explains:

Kinatico is a leading provider of "know your people" solutions to organisations in Australia and New Zealand. The company operates two key businesses: its legacy CVCheck brand, which provides employment screening and verification services to over 10,000 repeat corporate customers and its new key focus, a SaaS-based business that delivers real-time workforce compliance management and monitoring. The core strategy is to leverage the large customer base of the legacy CVCheck business to provide a ready-made sales pipeline for its higher growth SaaS compliance solutions.

Praemium Ltd (ASX: PPS)

This investment platform provider is a third small cap ASX share that has been given the thumbs up from Bell Potter.

It has been pleased with the company's performance in recent times and feels that the market is not appreciating this. The broker highlights that at 20x forward earnings, its shares are significantly cheaper than its larger rivals. It said:

While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~20x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

The post 3 of the best Australian small cap shares to buy for 2026 appeared first on The Motley Fool Australia.

While this is disappointing, it could have created a buying opportunity for investors with a high tolerance for risk.

But which small cap ASX shares could be buys? Let's take a look at two that Bell Potter is tipping as its best buys.

Integral Diagnostics Ltd (ASX: IDX)

This medical imaging services provider could be a small cap ASX share to buy according to Bell Potter.

It believes the company is well-placed for growth in the coming years thanks to its recent merger with Capitol Health. The broker said:

The merger between Integral Diagnostics and Capitol Health results in a diagnostic imaging (DI) company which operates 151 clinics throughout Australia. Its strongest presence will be within Victoria and Queensland (67 & 41 locations respectively) with minor penetration in the other States. The company offers a range of imaging modalities through its clinics with the largest contribution to revenue from CT (31%) followed by US (24%), MRI (13%) and X-Ray / Diagnostic Radiology (11%), and Nuclear Medicine PET (5%). The growth strategy has centred around a combination of greenfield & brownfield investments and M&A opportunities.

Bell Potter has a buy rating and $4.00 price target on its shares. This implies potential upside of almost 60% for investors over the next 12 months.

Praemium Ltd (ASX: PPS)

Another small cap ASX share that could be a buy according to the broker is investment platform provider Praemium.

Bell Potter thinks that Praemium's shares are being undervalued by the market, especially when comparing it to its larger peers. It said:

Praemium Ltd (PPS) was formed in 2001 as a financial technology company that operates an investment platform offering alongside a branded online portfolio administration service, supporting financial intermediaries and individual investors in their managing wealth. The integrated technology simplifies portfolio management end-to-end and delivers a complete value proposition. Today, PPS manages +$60bn in custodial and non-custodial FUA.

While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~20x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

The broker has a buy rating and $1.05 price target on the small cap. Based on its current share price, this suggests that upside of almost 35% is possible for investors between now and this time next year.

The post 2 ASX small-cap shares to buy right now appeared first on The Motley Fool Australia.

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

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

DroneShield Ltd (ASX: DRO)

This counter drone technology company's shares make the list again in November.

Bell Potter believes DroneShield is well-positioned for growth thanks to the significant increase in defence budgets globally and trends in global warfare.

Commenting on the company, the broker said:

DroneShield is an Australian defence manufacturer specialising in counter drone technology. DRO provides an end-to-end counter-drone solution that integrates proprietary artificial intelligence software with a suite of hardware products utilised to detect, identify and defeat aerial, ground and maritime threats. The company's products are largely in-house technology and include handheld, vehicular and fixed installations. DRO's customers primarily include military and intelligence, as well as law enforcement, critical infrastructure and commercial parties globally.

Bell Potter has a buy rating and $5.30 price target on its shares. This implies potential upside of almost 60% for investors over the next 12 months.

Praemium Ltd (ASX: PPS)

Another ASX share that makes the list in November is Praemium. It is a financial technology company that operates an investment platform offering alongside a branded online portfolio administration service.

The broker feels that its shares are undervalued relative to industry peers at 20x forward earnings. Especially given its positive growth outlook, which is being underpinned by market share gains and funds under administration (FUA) growth. It said:

Today, PPS manages +$60bn in custodial and non-custodial FUA. While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~20x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

Bell Potter currently has a buy rating and $1.05 price target on its shares. Based on its current share price of 87 cents, this suggests that upside of 20% is possible for investors between now and this time next year.

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

But you can't invest in any small cap ASX share, you only want the best.

That said, which are the best small caps to buy? Well, Bell Potter has just named three that it thinks could be among the best to buy now. Here's what it is recommending to clients:

Macmahon Holdings Ltd (ASX: MAH)

Bell Potter thinks that this mining services company could be a small cap ASX share to buy now.

It believes that the company is well-placed to deliver steady growth in the coming years thanks to its significant order book and its acquisition of Decmil. The latter boosts its exposure to the civil and renewable infrastructure sectors. It explains:

Macmahon's (MAH) long-term client relationships are likely to deliver steady growth, underpinned by a $5.4 billion order book and $2.1 billion in secured revenue. The company is positioned for multi-pronged growth with the underground mining division projected to expand by 50% over the next two years, while its international footprint is set to accelerate, leveraging a distinct competitive advantage in Indonesia. The strategic acquisition of Decmil has enhanced its exposure to the high-demand civil and renewable infrastructure sectors, a move already validated by $333 million in new work won.

And despite this positive outlook, it highlights that its shares are trading on low earnings multiples and offer an attractive dividend yield. Bell Potter adds:

Despite these strong fundamentals, Macmahon trades at a discount at just 6.7x FY26 EPS, 1.3x net tangible asset value (of 29cps at FY26), while offering a 4.9% yield. This creates an attractive entry point for investors to capture a re-rating as growth catalysts materialise.

Praemium Ltd (ASX: PPS)

Another small cap ASX share that has been named as a best buy is investment platform provider Praemium.

Bell Potter believes the company is well-placed to grow at a strong rate in the coming years. So, with its shares trading at a deep discount to peers, it thinks now could be the time to buy. It said:

We add Praemium Ltd (PPS) to the small cap panel, seeing a strong runway for the company to scale platform revenue, and grow market share from where it currently sits in the low single digits.

While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~18x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

Universal Store Holdings Ltd (ASX: UNI)

Finally, Bell Potter continues to believe that youth fashion retailer Universal Store could be a small cap ASX share to buy.

It likes the company due to its positive growth outlook, supported by its growing store network, and its attractive valuation. The broker explains:

Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 10% p.a.. Valuation looks attractive, trading on a forward P/E of ~16x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.

The post 3 of the best small cap ASX shares to buy appeared first on The Motley Fool Australia.

Three more of the best ASX shares to buy this month according to the broker are listed below. Here's why it is bullish on these names:

Centuria Capital Group (ASX: CNI)

A new addition to the panel this month is Centuria Capital.

Bell Potter believes the investment manager's shares are being undervalued by the market based on its positive outlook. Commenting on the ASX share, it said:

Centuria Capital Group (CNI) is an investment manager with c.$21b of predominantly real-estate-focused assets under management. CNI manages funds spanning listed, unlisted wholesale and unlisted retail syndicates across all major asset classes. As per their listed funds, CNI's assets under management is primarily in the Office and Industrial markets, however it also operates in Daily Needs & Large Format Retail, as well as alternative subsectors such as Healthcare, Real Estate Credit, and Agriculture. CNI is well positioned to benefit from tailwinds in the Real Estate sector, and we see cyclical upside yet to be priced in.

Praemium Ltd (ASX: PPS)

Another new addition to the panel in October is investment platform provider Praemium.

The broker highlights that despite its strong operational performance, its shares trade at a significant discount to peers. However, it feels this could change once it delivers further market share and funds under administration (FUA) growth. Bell Potter said:

While Praemium has demonstrated commercial momentum, strong growth capacity, and a leading technology offering, its valuation continues to lag key peers. This stock looks very attractive at a 12MF PE of ~18x, and we expect the market to catch on as the company executes on further market share gains and FUA growth.

Universal Store Holdings Ltd (ASX: UNI)

Finally, youth fashion retailer Universal Store could be an ASX share to buy in October according to Bell Potter.

The broker thinks that its shares are good value. Especially given its potential for double-digit earnings growth in the coming years. It explains:

Universal Store Holdings is a leading youth focused apparel, footwear and accessories retailer in Australia. UNI will continue to increase store numbers over the next few years, supporting earnings growth of 10% p.a.. Valuation looks attractive, trading on a forward P/E of ~16x. UNI is a quality small cap (ROE ~26%) that is executing on its rollout strategy.

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

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Commonwealth Bank of Australia (ASX: CBA)

The Commonwealth Bank of Australia share price is down over 2% to $173.77. Investors have been selling CBA and the rest of the banks this week. It seems that the great rotation out of the big four banks is gathering pace. This appears to be benefiting the big miners and healthcare giant CSL Ltd (ASX: CSL), which are all up strongly on Tuesday.

Inghams Group Ltd (ASX: ING)

The Inghams share price is down over 1.5% to $3.51. The catalyst for this appears to have been a broker note out of Macquarie this morning. According to the note, the broker has downgraded this poultry producer's shares to a neutral rating with a $3.70 price target. It believes its shares have now priced in a potential increase in consumer spending driven by expected rate cuts by the Reserve Bank of Australia.

Praemium Ltd (ASX: PPS)

The Praemium share price is down 9% to 70.7 cents. This follows the release of a fourth quarter update from the investment platform provider this morning. Praemium revealed total funds under administration (FUA) of $64.3 billion. While this is up 12% year on year, this growth rate pales in comparison to those of its ASX listed rivals. Commenting on its performance, Praemium's CEO, Anthony Wamsteker, said: "The June quarter was noteworthy for continuing strong inflows to our recently launched IDPS solution – Spectrum. We are pleased with the sales pipeline and ongoing interest in this product. Spectrum has closed the product gap which we believe was preventing us from achieving the full potential of our high quality technology offering."

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is down almost 16% to 13.5 cents. This morning, this energy producer revealed that Carnarvon Energy Ltd (ASX: CVN) is making a strategic investment. The release reveals that Carnarvon Energy will be issued up to $89 million of fully paid ordinary shares in Strike at an issue price of $0.12 per new share. This is a sizeable discount to its last close price and will give it a shareholding of up to 19.9%.

The post Why CBA, Inghams, Praemium, and Strike Energy shares are tumbling today appeared first on The Motley Fool Australia.

The company, currently valued at $944 million, or $14.11 per share, buys debt from issuers and helps customers service the liabilities.

It's an interesting business model, one that's got analysts at Macquarie talking.

The broker released a note on the company this week, using the quarterly results of comparable companies, Praemium Ltd (ASX: PPS) and US-listed Encore Capital Group Inc (NASDAQ: ECPG) as a "read through" for Credit Corp's American business.

Let's dive in.

Looking outside the big 4 banks? Credit Corp is here

Macquarie posted a note to clients this week covering a suite of financial stocks outside of the big 4 banks, Credit Corp being one of them.

It used Praemium and Encore's quarterly numbers to get a potential read on what investors might expect from Credit Corp's earnings in the US – an interesting method, to say the least.

Before proceeding, let's take a step back and get to know the company in question.

Credit Corp earns its crust by acquiring what is known as purchased debt ledgers (PDLs).

These are essentially portfolios of overdue or defaulted debts that companies buy from lenders, such as banks or finance companies.

So, how does it work?

When a borrower fails to repay their loan or credit card, the original lender often sells this 'bad debt' to a specialist buyer (like Credit Corp) at a discounted price.

This buyer then takes on the job of collecting the money owed. And in the process, hopes to make a profit. It is a fairly niche domain, outside the realms of the big 4 banks.

As for Macquarie's note, it says that Praemium's PDL purchase volumes were down 5% in the first quarter. Meanwhile, Encore saw an uptick in its volumes.

It says the recipe of "higher lending and growth in the [credit card] charge-off rate continues to drive robust portfolio supply in the US". This, even as Praemium's pricing estimates have "stabilised".

This is important because "the outlook for Credit Corp is increasingly weighted to US PDL and consumer lending performance in Australia".

It rates the company a hold with a $16.27 price target, which represents a 15% upside at the time of writing.

Does this appeal to investors?

The big 4 banks have yet to report their annual numbers. Still, Credit Corp posted a market update earlier this month, where it updated its guidance on net lending for the year.

It now projects $60 to $70 million in net lending for the year, up from $45 to $55 million previously. It continues to project $90 to $100 million in net profit for the year.

Macquarie maintained its FY25 earnings guidance for the company and made no changes despite the company upgrade.

No change to forecasts. Credit Corp updated FY25 guidance at the Macquarie conference with: 1) UNPAT $90-100m (unchanged); 2) PDL purchasing $200m-250m (unchanged); and 3) Net lending upgraded to $60-70m (from $45-$55m).

According to the broker, catalysts for the future might include a recovery in Australian PDL volumes and growth in PDL volumes in the US.

According to Commsec, the stock is also rated a buy based on the consensus of analyst estimates, with a consensus price target of $19.97 apiece, per TradingView.

Whether this offers more appeal than the big 4 banks at this time, we will have to see. The stock trades at nearly 19x earnings, ahead of the likes of ANZ Group Holdings Ltd (ASX: ANZ) at 13x.

Credit Corp is down 12% in the past year.

The post Want a financial stock outside the big 4 banks? Macquarie tips 15% upside for this small cap financial appeared first on The Motley Fool Australia.

That's because it has just been named as a buy and tipped to rise very strongly from current levels.

Which small cap ASX stock?

The stock in focus is Praemium Ltd (ASX: PPS). It is a financial technology company that operates an investment platform that supports financial intermediaries and individual investors in managing wealth.

According to a note out of Bell Potter, its analysts believe that the market is underappreciating the small cap ASX stock and underestimating its growth potential. Its analysts said:

PPS' platform revenue is augmented by asset appreciation and regular contributions, supporting growth in the absence of client wins. However, the share price has lagged peer multiples while demonstrating good investment and improved cost growth for its size.

We believe consensus expectations for FUA growth appear conservative based on PPS' current market share of 2.5%. There remains a significant opportunity for PPS to extend its presence, particularly as four legacy providers (who have exited financial advice) continue to hold 55.5% combined share.

In addition, the broker has been pleased with the divestment of its international business and highlights that it is now well-placed to grow its FUA profitably. It adds:

PPS has continued to accelerate its technology offering while indicating higher cash EBITDA, supported by the divestment of its loss-making international business and, more recently, repricing initiatives with lower underlying expense growth (excluding OneVue). Adviser related attrition is also nearing completion, leaving PPS to invest, compete and drive profitably FUA growth. We believe a revaluation of the stock could support an equity value of over $450m.

Big returns

The note reveals that Bell Potter has initiated coverage on the small cap ASX stock with a buy rating and $1.00 price target.

Based on its current share price of 69.5 cents, this implies potential upside of 44% for investors over the next 12 months.

Commenting on its initiation, the broker said:

We initiate coverage at a time of elevated valuations, with PPS strategically positioned to grow its platform market share, chiefly driven by rollout of the next-generation IDPS platform, loyal customer base and leading technology. These aspects also favour PPS as a potential takeover candidate to that end.

We are encouraged by its proven track record in growing managed account FUA and expect a similar outcome for Spectrum as PPS gains broader appeal behind niche. Additionally, PPS is progressing with the integration of OneVue, expected to produce mid-teens EPS accretion once operations and technology are consolidated, likely from FY26e.

The post Bell Potter says this small cap ASX stock can rocket 40%+ appeared first on The Motley Fool Australia.

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

Domino's Pizza Enterprises Ltd (ASX: DMP)

The Domino's Pizza share price is down 11% to $28.59. Investors have been selling the pizza chain operator's shares following the release of its half year results. Domino's reported a 2.9% decline in network sales to $2.08 billion and a 6.7% reduction in EBIT to $100.6 million. Despite this profit decline, the company maintained its dividend at 55.5 cents per share.

Johns Lyng Group Ltd (ASX: JLG)

The Johns Lyng share price is down 32% to $2.57. The catalyst for this has been the release of the insurance building and restoration services company's half year results. Johns Lyng reported a 6.1% decline in revenue to $573.1 million and a 15.2% decline in normalised EBITDA to $54.2 million. Management blamed this on "a challenging operating environment with benign weather conditions across Australia resulting in a reduced volume of insurance claims and CAT-related work." In light of this poor first half, the company has downgraded its FY 2025 guidance. It is guiding to revenue of $1.167 billion and EBITDA of $126.5 million. It was previously guiding to revenue of $1.228 billion and EBITDA of $132.5 million.

Polynovo Ltd (ASX: PNV)

The Polynovo share price is down 16% to $1.50. This medical device company's shares have fallen heavily this week following the release of its half year results. Polynovo reported a 28.1% increase in sales to a record of $54.1 million and a 23.9% increase in net profit after tax to $3.3 million. However, causing some alarm bells to ring was its $12.5 million operating cash outflow for the half. In addition, no guidance was provided for the full year.

Praemium Ltd (ASX: PPS)

The Praemium share price is down 11% to 77.5 cents. This morning, this investment platform provider released its half year results and revealed a 32% increase in revenue to $52.3 million and a 45% jump in net profit after tax to $5.8 million. Though, it also recorded an operating cash outflow of $5.2 million for the half. In other news, the company revealed that its CFO has resigned and will be leaving at the end of next week.

The post Why Domino's, Johns Lyng, Polynovo, and Praemium shares are dropping today appeared first on The Motley Fool Australia.

Shares in the wealth management company are currently swapping hands at 76 cents apiece, down nearly 13% on the day as investors digest the update.

Let's see what the company posted.

ASX All Ords tech stock slides on mixed H1 numbers

Praemium had a mixed period in the half but saw growth from top to bottom lines. Here are the key points from the release:

• Revenue of $52.3 million, a 32% year over year increase.
• Another $6 million of additional revenue was booked from the OneVue acquisition
• Pre-tax earnings increased by 43% year over year to $12.9 million
• Platform funds under administration (FUA) grew by 29% to $62.1 billion
• Net profit pulled to $5.8 million, a 45% growth from last year
• Declared a dividend of 1 cent per share, payable on March 21

What else happened in H1 FY25?

According to management, the ASX All Ords tech stock had an "outstanding continuation of momentum" in the first half.

Revenues were up by a third compared to the first half last year, leading to a 43% jump in pre-tax earnings to around $13 million.

In part, this was driven by "platform margins", which increased by three basis points to 0.28%, thanks to the repricing of its separately managed account (SMA).

It also left the first-half with net assets of $108 million after returning $7.5 million of cash to shareholders via dividends and buybacks.

Meanwhile, FUA increased by around 30% year over year, including $4.2 billion from its recent OneVue acquisition.

Speaking of that transaction, Praemium has now booked expenses of around $6.5 million associated with OneVue so far in FY25.

This included $1.6 million in one-time costs and an "increase in employee expenses, technology and marketing costs" to launch its Spectrum service. This may or may not impact the ASX All Ords tech stock.

What did management say?

Despite today's market reaction, CEO Anthony Wamsteker remained positive.

This is an outstanding continuation of the momentum built through the 2024 financial year. We have greatly improved our organic growth, repriced our core SMA to reflect its top tier market position, rebounded from the impact of adviser exits, launched a market leading IDPS with Spectrum, restructured operations offshore and returned earnings to shareholders.

I look forward to the added value to come from fully integrating our OneVue acquisition, repricing our market dominant non-custodial Scope solutions and gaining further growth from Spectrum.

As always, I recognise that these important benefits to shareholders are the product of incredible work from our people, the choices our advisers and their clients make and the privilege it is to serve to them. I thank all our key stakeholders for their contributions and the remarkable results they have helped produce.

What's next?

Management didn't provide formal guidance but did go over "Strategy" in the investor presentation.

The aim is to increase market share in core markets such as high-net-worth individuals, self-managed super funds, and "advised retail clients".

It also wants to "further develop…leadership position in alternative assets" and "target greater scale to allow both ongoing investment in the development of technology and a gradual increase in profit margin".

ASX All Ords tech stock snapshot

Praemium is under pressure today as investors unload shares in the ASX All Ords tech stock following its first-half numbers.

Zooming out, the stock is up more than 85% in the past twelve months.

The post ASX All Ords tech stock slides 13% on H1 FY25 numbers appeared first on The Motley Fool Australia.

How strong?

Well, this time last year, you could have bought shares in the All Ordinaries Index (ASX: XAO) investment platform provider for 39 cents. Today, those same shares are changing hands for 83 cents apiece.

That sees the ASX small-cap stock up a blistering 112.8% in a year.

For some context, the All Ords has gained 11.6% over this same period.

And Praemium shares also trade on a 1.2% fully franked trailing dividend yield.

Yet despite the past year's outperformance, the fund managers at Forager still see a lot of untapped value in the stock.

ASX small-cap stock back on the growth path

Praemium counts as the Forager Australian Shares Fund's fourth biggest holding.

In Forager's January update, the fund managers noted that a few of the fund's investments provided quarterly updates late in January.

"The first of these was wealth management platform Praemium (PPS). The smallest of the three listed platform providers, alongside HUB24 Ltd (ASX: HUB) and Netwealth Group Ltd (ASX: NWL)," Forager said.

As for the longer-term performance of the ASX small-cap stock, the fund managers said:

Praemium has not had a clean run over the last few years. A cost-driven earnings downgrade in late 2023, paired with advisor departures from one of its key clients, caused investors to largely dismiss the business.

But the past six months have seen key improvements. Higher pricing and cost control led to better earnings in the second half of the 2024 financial year. In the last quarter, fund net flows were the highest in two years.

And even after the 113% 12-month increase in the Praemium share price, Forager noted the ASX small-cap stock continues to trade at a steep discount to its larger rivals.

"Still trading at less than half of the earnings multiple of the industry leaders, Praemium's high-quality and growing earnings base should continue to attract investor interest," the fund managers said.

What did Praemium report for the December quarter?

The ASX small-cap stock announced its 2Q FY 2025 results on 23 January.

Highlights included a 29% year on year increase in total funds under administration (FUA) of $62.1 billion, marking a record high. And platform FUA increased by 32% to $30.2 billion.

Praemium also reported that its next generation IDPS Spectrum achieved quarterly gross and net inflows of $69 million. Almost all of those inflows came in December.

Commenting on the strong quarter, Praemium CEO Anthony Wamsteker said:

The December quarter was noteworthy for the very well received launch of Spectrum, our next generation IDPS where we have a strong pipeline, and further improvement across most growth metrics from the previous quarter.

The ASX small-cap stock closed up 11.8% on the day it reported.

The post The ASX small-cap stock trading at 'half of the earnings multiple of industry leaders' 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:

Coronado Global Resources Inc (ASX: CRN)

The Coronado Global share price is up 6% to 75.2 cents. Investors have been buying the coal miner's shares following the release of its quarterly update. Coronado Global reported fourth quarter revenue of $558 million, bringing its full year revenue to $2,508 million. This led to the miner finishing the period with a strong cash balance of $340 million and available liquidity $468 million. Another positive was that its fourth quarter average mining costs per tonne sold was down 17% quarter on quarter to $97.30. Management notes that this is "a reflection of success delivered from the productivity improvement and cost reduction program at the Curragh Complex."

Insignia Financial Ltd (ASX: IFL)

The Insignia Financial share price is up almost 2% to $4.51. This morning, the financial services provider revealed that Bain Capital has improved its non-binding takeover offer for the company. It is now offering $4.60 per share, which is in line with what CC Capital has tabled. Insignia Financial has offered to provide Bain Capital with a limited period of access to certain non-public information on a non-exclusive basis.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is up 2% to $29.98. This follows the release of the investment platform provider's quarterly update. Netwealth revealed record quarterly funds under administration (FUA) net inflows of $4.5 billion. This was an increase of 69.8% on the prior corresponding period. It also beats the previous record quarterly inflows of $4 billion achieved in the September 2024 quarter. In light of this, its FUA was $101.6 billion at the end of December. This is an increase of $23.6 billion or 30.2% for the year.

Praemium Ltd (ASX: PPS)

The Praemium share price is up 11.5% to 84.75 cents. Investors have also been buying this investment platform provider's shares following the release of its quarterly update. Praemium reported total FUA of $62.1 billion at the end of December. This represents a 29% increase year on year. Praemium CEO Anthony Wamsteker said: "The December quarter was noteworthy for the very well received launch of Spectrum, our next generation IDPS where we have a strong pipeline, and further improvement across most growth metrics from the previous quarter."

The post Why Coronado, Insignia, Netwealth, and Praemium shares are pushing higher today appeared first on The Motley Fool Australia.

This was the fifth week out of the past six that tech stocks have fared better than all other market sectors.

The S&P/ASX 200 Index (ASX: XJO) lost 0.23% last week to close at 8,420.9 points on Friday. The benchmark index reset its all-time high once again on Tuesday at 8,514.5 points.

Only five of the 11 market sectors finished the week in the green.

Let's recap.

ASX tech shares led the market last week

Several of the larger ASX tech shares by market capitalisation enjoyed solid gains over the week.

The share price of the sector's biggest player, WiseTech Global Ltd (ASX: WTC) rose by 2.56% to end the week at $131.37 per share.

The Xero Ltd (ASX: XRO) share price finished 1.68% higher at $178.04.

TechnologyOne Ltd (ASX: TNE) shares rose by 3.41% to close Friday's session at $31.54.

Life360 Inc (ASX: 360) shares continued their seemingly unstoppable trajectory, rising 3.88% to $26.21.

Shares in electronics solutions provider Codan Ltd (ASX: CDA) rose 3.04% to $16.25.

The Nuix Ltd (ASX: NXL) share price swished 5.05% higher to close at $6.66 on Friday.

Some of the most impressive gains last week were seen among the small-cap ASX tech shares.

Bravura Solutions Ltd (ASX: BVS) shares skyrocketed 39.4% to $2.21 apiece.

This followed the wealth management software company upgrading its FY25 revenue and earnings guidance on Wednesday. The company also said it would resume paying dividends in 2025.

Another strong performer was Praemium Ltd (ASX: PPS), which provides administration software and financial planning tools to the wealth management industry.

The Praemium share price rocketed 9.09% to 78 cents, despite no news from the company last week.

The Weebit Nano Ltd (ASX: WBT) share price lifted 5.15% to $2.86 despite no news from the memory and semiconductor technology company.

Technology is on track to be the best-performing market sector of 2024.

As we reported last week, some ASX tech stocks are even outperforming the US Magnificent Seven on share price growth.

However, many brokers think some of the ASX tech shares with the highest price gains of 2024 are still in the buy zone. You can check them out here.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Here's how the ASX 200 market sectors stacked up last week 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:

Hotel Property Investments Ltd (ASX: HPI)

The Hotel Property Investments share price is up almost 3% to $3.60. This is despite the hotel property company once again reiterating that it thinks investors should reject a $3.785 per share takeover offer from Charter Hall Retail REIT (ASX: CQR) and Hostplus. It said: "This document contains the HPI Board's formal response to the Revised Offer, including our unanimous recommendation that you reject the Revised Offer and take no action in relation to any correspondence from Charter Hall Retail REIT and Hostplus."

Meteoric Resources NL (ASX: MEI)

The Meteoric Resources share price is up 5% to 10.5 cents. This morning, this rare earths explorer released an update on its Caldeira Rare Earth Ionic Clay Project. According to the release, the financial metrics of the project have improved with the inclusion of the high-grade Figueira resources into the scoping study's 20-year mine plan. In addition, it notes that rare earth element (REE) spot prices have been adjusted to include the current pricing (NdPr US$60/kg). This has resulted in a 14% increase in its pre-tax net present value to US$1,403 million and a 6% lift in pre-tax IRR to 40.4%. Management estimates that this means it now has a pre-tax payback of 2.2 years.

NRW Holdings Limited (ASX: NWH)

The NRW Holdings share price is up 1% to $3.78. Investors have been buying this mining services company's shares after it announced a major contract win. According to the release, its wholly owned subsidiary, Golding Contractors, has signed a mining services agreement (MSA) with Stanmore SMC at the South Walker Creek Mine (SWC) in Central Queensland. The MSA has a total value of approximately $1.6 billion over a five-year term. It commences in January 2026.

Praemium Ltd (ASX: PPS)

The Praemium share price is up 7% to 63.5 cents. This investment platform provider's shares are lifting off today after it released a quarterly update. Praemium revealed that its total Australian funds under administration (FUA) increased 33% to a record of $59.4 billion. Its Platform FUA also rose strongly and were up 30% to $29 billion during the three months. Praemium's CEO, Anthony Wamsteker, commented: "We are well placed for further growth with the launch of Spectrum, our next generation IDPS. Every service, and virtually every growth metric has improved from the previous quarter."

The post Why Hotel Properties, Meteoric, NRW, and Praemium shares are charging higher appeared first on The Motley Fool Australia.