Ora Banda Mining Ltd (ASX: OBM) recently updated the market about a number of development programs it has on foot, prompting the analysts at Macquarie to take a closer look at the company.

Macquarie this week issued a new research report on Ora Banda, with a bullish price target which we’ll get to shortly.

First, let’s look at what the company announced.

Looking to ramp up production

Ora Banda has an ongoing program called Drive to 300, which is an “aspirational” target for the company to double its gold production to 300,000 ounces per year over a three-year period.

This week the company signed off on three key developments to bring it closer to this aspiration.

The first was giving the go ahead for a new, three million tonne per year processing plant at the company’s Davyhurst mine, at a cost of $375 million.

Those works are planned to start in early FY27, with commissioning scheduled for the third quarter of FY28.

Ora Banda added:

The Company intends that the existing Davyhurst plant will continue to operate during construction of the new plant and may continue to operate subsequently, depending on ore availability and economics.

The second project given the go-ahead was a third underground mine at the company’s Waihi operations at a cost of $90 million, with the portal to be established in the second quarter of FY27, “with focus on fast-tracking development into the high-grade ‘Golden Pole’ lode”.

That project is expected to reach steady state production in the first quarter of FY28.

The company added:

Additionally, accessing Waihi underground provides Ora Banda with the opportunity to establish underground drill platforms, allowing for rapid, cost-effective extensional drilling similar to previous campaigns at Riverina and Sand King.

The company has also replaced its existing $50 million credit facility with a $200 million facility, giving it increased flexibility as it ramps up operations.

Ora Banda’s Managing Director, Luke Creagh, said:

The Drive to 300 is the exciting next phase for Ora Banda, building on earlier success with the achievement of to Drive to 100 and Drive to 150. This doubling of production is currently expected to be capable of being internally funded and has the potential to add material value and position Ora Banda as a long-term sustainable gold business.

Shares looking like good value

The Macquarie team said Ora Banda’s production outlook was higher than their expectations, due to their plan to keep the existing Davyhurst processing plant operating alongside the new one.

They said the company was “in a strong position to fund the new mill and underground using balance sheet and cashflow generation”, with total liquidity on hand of $432 million.

Macquarie said Ora Banda was “an attractive value proposition and the focus now moves to execution and delivery”.

They have a price target of $1.70 for the company, compared to its current price of $1.40.

Ora Banda is valued at $2.71 billion.

The post Macquarie says this mid-tier ASX gold miner can pile on more than 25% appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

New exchange-traded funds (ETFs) seemingly hit the ASX every other month these days. To illustrate, we welcomed a new space-themed ETF to the ASX boards just last week. But it is far less common to see a dividend-focused ETF hit the ASX.

Yet that’s exactly what this week has brought income investors. Yesterday saw the debut of the Plato Global Shares Income Fund – Active ETF (ASX: PGI2).

If that name seems familiar to you, it might be thanks to Plato Income Maximiser Ltd (ASX: PL8). This listed investment company (LIC), which has been around for a few years, is a popular income investment on the ASX. That’s thanks, in no small part, to its habit of paying out monthly dividends.

Unlike the Income Maximiser, PGI2 is an ASX ETF. Let’s dive into how it works.

How does this new ASX dividend ETF work?

Put simply, the Plato Global Shares Income Fund is an active ETF that aims to deliver more income than its benchmark index, the MSCI World ex Australia, Net Returns Unhedged Index.

This ETF has only been on the ASX for a day and a half. However, Plato also offers an unlisted iteration as a managed fund, which has been available for investment since 1 March 2016.

As of 30 April, this fund has returned an average of 10% per annum since that time. 5.7% of that 10% per annum came from dividend income distributions. That’s also the trailing 12-month yield for the fund, as of 30 April anyway. Its more recent performance has clocked in at an average of 19.2% per annum over the past three years, and 13.6% per annum over the past five.

Like its Plato Income Maximiser cousin, the Plato Global Shares Income Fund will also pay out monthly dividend distributions.

Unfortunately, Plato hasn’t yet listed the Global Shares Income Fund’s exact holdings. However, from the data that is available, it can be assumed that US tech stocks, possibly including Apple, Nvidia, Alphabet, and Broadcom, are top holdings. That’s in addition to more traditional payers, including financial stocks, consumer staples companies, and healthcare shares. This dividend ETF also includes a diversified range of European and Asian stocks, although these are less prominent in its largest holdings.

Yesterday, PGI2 units floated at about $10.75 each. This ASX dividend ETF is currently hovering around that level, trading at $10.76 at the time of writing. Let’s see how it fares from here.

The post A new monthly ASX dividend ETF just hit the ASX appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Alphabet, Apple, and Plato Income Maximiser. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, Broadcom, and Nvidia. The Motley Fool Australia has recommended Alphabet, Apple, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Electro Optic Systems Holdings Ltd (ASX: EOS) shares have returned from their trading halt and are sinking into the red.

At the time of writing, the defence and space company’s shares are down 10% to $7.95.

Why are EOS shares sinking today?

The company’s shares are under pressure today after it announced the successful completion of its $150 million fully underwritten institutional placement.

According to the release, the company is issuing approximately 18.8 million new EOS shares to eligible institutional investors at a price of $8.00 per new share. This represents a 9.3% discount to where its shares last traded.

The company advised that the institutional placement was well supported by existing and new institutional investors.

In addition, EOS revealed that it has received a commitment from Generation 5 Holding, which is a related entity of Calidus, a major provider of defence equipment, technology, and services based in Abu Dhabi, United Arab Emirates.

Alongside another institutional investor focused on the defence sector, Generation 5 Holding will subscribe for a total of $40 million of new EOS shares.

Share purchase plan

EOS won’t be stopping there. It will now push on with its share purchase plan, which aims to raise a further $25 million from retail shareholders.

However, it notes that it reserves the right to accept applications in excess of the $25 million.

This will be undertaken at the same price as the institutional offer ($8.00 per new share).

Why is it raising funds?

Management advised that the proceeds, along with its loan facility from Washington H. Soul Pattinson and Co Ltd (ASX: SOL), will be used to fund the acquisition of MARSS and increase balance sheet flexibility.

Commenting on its plans, EOS said:

Proceeds from the Institutional Placement, Strategic Placement and the Company’s proposed SPP (together, the “Capital Raising”), together with the secured term loan facility provided by Washington H. Soul Pattinson (as previously announced on 12 January 2026), will be used to fund the upfront consideration of the MARSS acquisition, and increase balance sheet flexibility to pursue growth opportunities and execute on strategic initiatives. Following completion of the acquisition, Institutional Placement and Strategic Placement, EOS is expected to have a pro-forma net cash balance of approximately A$235m.

The post Why are EOS shares sinking 10% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 300 Index (ASX: XKO) is down 0.8% in late morning trade today, but this ASX 300 stock is bucking that selling trend and pushing higher.

The outperforming stock in question is employee services and fleet solutions provider Smartgroup Corporation Ltd (ASX: SIQ).

Smartgroup shares closed yesterday trading for $11.45. At the time of writing, shares are changing hands for $11.51 apiece, up 0.5%.

Today’s outperformance is par for the course for Smartgroup shares of late. Shares are now up 49.5% in 12 months, racing ahead of the 2.4% one-year gains posted by the benchmark index.

Atop those strong capital gains, the ASX 300 stock also trades on a fully-franked 4.6% trailing dividend yield.

Now, here’s why Smartgroup shares look to be gaining in today’s sinking market.

ASX 300 stock jumps on $20 million share buyback

Investors are bidding up Smartgroup shares today after the company announced it was launching a $20 million share buyback of up to $20 million.

The ASX 300 stock is engaging in the buyback after agreeing to sell the majority of its self‑funded fleet portfolio. That decision followed Smartgroup’s fleet-funding partnership with Volkswagen Financial Services Australia in 2025.

The company noted:

The board has determined that returning this excess capital to shareholders via an on‑market share buy‑back is an efficient use of capital and is consistent with Smartgroup’s disciplined capital management framework.

The buyback announcement coincided with Smartgroup’s annual general meeting (AGM), held today in Sydney.

What did management say at the Smartgroup AGM?

“2025 was a year of disciplined execution and continued strategic momentum for Smartgroup,” chairman John Prendiville said.

“Amid evolving market dynamics, the Group delivered strong financial performance, deepened customer relationships, and accelerated progress on its strategic roadmap,” he added.

Taking a look at the ASX 300 stock’s performance over the past 12 years, since its initial listing, Prendiville said:

Since listing in 2014, Smartgroup has delivered strong and consistent returns for shareholders through both capital growth and fully franked dividends.

Over this period, we have returned approximately $649 million to shareholders in fully franked dividends, while our market capitalisation has grown from approximately $160 million at listing to around $1.5 billion as at 15 May 2026.

Prendiville then handed over the podium to Smartgroup CEO Scott Wharton.

Drilling into the past few years of revenue, earnings, and profit growth, Wharton said:

Over the 2023 to 2025 period, revenue has grown by 31%, driven by continued investment in digital capabilities to enhance our customer proposition, alongside strengthened account‑management and business development capabilities.

Over the same period, EBITDA increased by 35%, reflecting the scalability of our operating model. NPATA increased by 27%, demonstrating our ability to deliver profitable growth while continuing to invest to support long‑term value creation.

The post Guess which ASX 300 stock is outperforming today on $20 million buyback news appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Smartgroup. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) are two of the biggest mining shares on the ASX.

Both are high-quality businesses. Both have world-class assets. Both can generate huge cash flows when commodity markets are favourable.

I would be happy to own either in a long-term portfolio.

But if I had to choose just one today, I would pick BHP shares.

The case for Rio Tinto shares

Rio Tinto remains one of the strongest resources companies in the world.

Its Pilbara iron ore operations are among the best mining assets on the planet. They are large, low cost, and capable of producing enormous cash flow when iron ore prices are supportive.

That makes Rio Tinto a serious dividend stock when the cycle is working in its favour.

I also like the fact that Rio Tinto has been trying to broaden its future growth profile. The company has exposure to aluminium, copper, and lithium, as well as iron ore. That gives it more than one way to benefit from long-term demand for materials used in infrastructure, electrification, and energy transition.

For income investors, Rio Tinto can be very appealing. When profits are strong, the dividends can be significant.

The issue is that I think Rio still feels more exposed to the iron ore cycle than BHP. Iron ore can be an outstanding commodity when demand is strong, but it can also be unforgiving when prices fall or China’s property and infrastructure activity disappoint.

That does not make Rio a bad buy. I just think BHP has a slightly stronger mix for the next decade.

Why I prefer BHP shares

BHP also has a world-class iron ore business. That gives it the same kind of cash flow engine that investors want from a major miner.

But I think BHP’s copper exposure gives it the edge.

Copper is one of the commodities I am most positive on over the next decade. It is needed for electricity networks, renewable energy, electric vehicles, data centres, industrial activity, and broader electrification.

I also think copper supply will struggle to keep up with demand.

New mines can take years to approve and build. Existing mines face declining grades, rising costs, and political risk in some regions. That creates a very attractive setup for large producers with existing copper assets.

This is where BHP looks especially strong to me.

If copper prices remain elevated over the long term, BHP could be one of the best-placed miners on the ASX to benefit. Its scale, balance sheet, and asset base give it options that many smaller miners simply do not have.

The potash option

BHP also has another long-term growth lever in potash.

Its Jansen project gives the company exposure to fertiliser demand and global food production. This will not transform earnings overnight, but I like the strategic direction.

Potash is different from iron ore and copper, which adds another layer to BHP’s commodity mix. Over time, it could make the business more diversified and less reliant on one or two major earnings drivers.

That is important when thinking in five-year or 10-year terms.

Foolish takeaway

I think both BHP and Rio Tinto are ASX mining shares worth buying.

Rio Tinto offers a powerful iron ore franchise, attractive dividends, and useful exposure to commodities beyond iron ore.

But BHP wins for me.

Its iron ore business remains excellent, its copper exposure looks very valuable, and its potash expansion adds another long-term growth option.

The post BHP shares vs Rio Tinto shares: Which miner looks better? appeared first on The Motley Fool Australia.

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• How many Rio Tinto shares do I need to buy for $10,000 a year in passive income?

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A new fintech investment has not been enough to stop the selling in Flight Centre Travel Group Ltd (ASX: FLT) shares today.

The travel stock is down 3.31% to $9.65 at the time of writing, leaving shareholders with more pain after a difficult few weeks.

Flight Centre shares have now lost around 18% over the past month and 36% since the start of 2026.

So, what is Flight Centre buying into?

What Flight Centre is buying

According to the release, Flight Centre made a US$5 million investment in Blockskye, a Boston-based corporate travel payments technology company.

Blockskye has developed BMAX, a blockchain-powered payment and expense settlement platform.

The company says the platform helps reduce reliance on traditional payment methods, including credit cards.

It also supports automated reconciliation and better reporting for travel programs.

The aim is to make corporate travel payments easier to manage, with fewer manual steps and better visibility over spending.

Flight Centre Corporate CEO Chris Galanty said the investment gives the group access to emerging payment technology. He noted it could help solve challenges around corporate cards and expense management.

Once embedded in Flight Centre’s technology suite, the platform could lift efficiency, reduce costs, and improve transparency for corporate clients.

Targeting bigger US customers

Alongside the investment, Flight Centre also plans to work with Blockskye and KAYAK for Business on a new partnership targeting the US enterprise corporate travel market.

KAYAK is a travel search platform that lets users compare flights, hotels, car hire, and other travel options across different providers.

The planned offering will combine Flight Centre’s global service infrastructure and supplier network with KAYAK for Business’ booking experience.

Blockskye will provide the payments platform, including automated reconciliation and enhanced real-time financial visibility.

Flight Centre said Blockskye already has an established US customer base. This includes Fortune 100 companies and a number of top 10 enterprise-level travel customers.

Foolish Takeaway

Flight Centre’s Blockskye investment looks like a sensible move in corporate travel, especially if it helps cut payment friction and improve client reporting.

However, investors are not rushing back into the stock today.

A US$5 million investment is not huge in the context of Flight Centre’s broader business. The market may also want to see how quickly this technology can be integrated and whether it makes a visible difference to earnings.

The weaker reaction also needs to be seen against a difficult recent backdrop.

After a 35% fall in 2026, investors may want evidence that new technology investments can help turn momentum around.

The post Down 36% in 2026, Flight Centre shares slip again on new fintech update appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A decade is a long time in the share market.

Plenty will change between now and 2036. Interest rates will move, economic cycles will turn, and investors will fall in and out of love with different sectors.

That is why I think it makes sense to focus on S&P/ASX 200 Index (ASX: XJO) shares with strong positions, useful products, and room to keep growing.

Three that I would be happy to buy and hold for the next decade are named in this article.

REA Group Ltd (ASX: REA)

REA Group is one of the most powerful digital businesses on the ASX.

Its main asset, realestate.com.au, sits at the centre of Australia’s property search market. That gives the company a valuable position in a market that attracts huge attention from buyers, renters, sellers, agents, and advertisers.

I think the strength of REA is that property search is highly concentrated.

When Australians want to see what is for sale or rent, they often start with the largest platforms. Agents then want to list where the audience is. That creates a loop that helps protect REA’s market position.

Over the next decade, I think REA can keep growing by doing more for agents, consumers, and advertisers. Listings are only part of the opportunity. Data, premium marketing, property insights, finance leads, and digital tools could all help the business become more valuable.

The share price will still move with the property cycle, but I think the platform itself is exactly the kind of asset I would want to own until 2036.

Goodman Group (ASX: GMG)

Goodman Group is another ASX 200 share I think could be much bigger in 10 years.

The company owns, develops, and manages industrial property around the world. Its assets are used for logistics, warehousing, e-commerce, supply chains, and, increasingly, data centres.

I like Goodman because it is tied to the physical side of several major trends.

Online shopping needs fulfilment space. Businesses want more efficient supply chains. Data centres need well-located sites with power access. These are not short-term fads. They are structural changes in how goods move and how digital infrastructure is built.

Goodman has also shown a willingness to recycle capital and focus on higher-value opportunities. That discipline is important in property, where excessive debt or poor development decisions can quickly erode returns.

The valuation can look expensive, and interest rates will remain a factor. But I think Goodman’s asset base, development pipeline, and data centre opportunity make it one of the more attractive long-term growth stories on the ASX.

Xero Ltd (ASX: XRO)

Xero gives investors exposure to the digital backbone of small businesses.

The company started with cloud accounting, but its opportunity is broader than that. Small businesses need help with invoices, payments, payroll, tax, cash flow, reporting, and decision-making. Xero can bring more of those tools into one platform.

That is powerful because small business owners are usually time-poor. Software that saves time, reduces admin, and gives clearer financial information can become very hard to replace.

I also like Xero’s global opportunity. Australia and New Zealand are strong markets, but the UK and US could provide meaningful growth over the next decade if management executes well.

Artificial intelligence could also make the platform more useful. Accounting and finance involve repetitive tasks, data entry, reconciliation, and reporting. If Xero can automate more of that work, the product should become even more valuable to customers.

Foolish Takeaway

I think REA Group, Goodman, and Xero have the right ingredients for a 10-year holding period.

They are already strong businesses, but their best years may not be behind them.

REA can keep building around property search, Goodman can benefit from logistics and data infrastructure demand, and Xero can become more central to how small businesses manage their finances.

There will be weaker periods along the way. But if I were building a portfolio for 2036, these are three ASX 200 shares I would be very happy to own.

The post 3 amazing ASX 200 shares I’d buy and forget about until 2036 appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) stock Dalrymple Bay Infrastructure Ltd (ASX: DBI) is marching higher today.

Shares in the infrastructure company – which owns the Dalrymple Bay Coal Terminal (DBCT) in Queensland – closed yesterday trading for $5.33. In morning trade on Wednesday, shares are swapping hands for $5.52 apiece, up 3.6%.

This sees the company commanding a market cap of $2.7 billion, and once more outperforming the benchmark index.

Indeed, at time of writing, the ASX 200 is down 0.6%, taking its one-year gains down to 2.5%.

Over this same time, Dalrymple Bay shares have gained 34.6%. And that’s not including dividends. Unlike many dividend shares, the ASX 200 stock makes quarterly payments. It currently trades on a partly franked 4.5% trailing dividend yield.

Here’s what’s catching investor interest today.

ASX 200 stock jumps on passive income boost

Investors are bidding up Dalrymple Bay shares after the company announced a first-quarter (Q1 FY 2026) dividend of 6.75 cents per share. That’s up 14.4% from the Q1 2025 payout.

The ASX 200 stock also looks to be getting a boost after management increased dividend guidance for FY 2026/27 by 8.5%. The company now expects to pay out 28.62 cents a share in dividends for the full year.

The increased payout is supported by an 8.1% increase in Dalrymple’s forecast Terminal Infrastructure Charge to around $4.02 per tonne.

And passive income investors will have been pleased at the company’s reaffirmation of its annual dividend growth target of 3% to 7% “for the foreseeable future”.

Dalrymple Bay Annual General Meeting

The ASX 200 stock is also hosting its Annual General Meeting (AGM) today.

“With a low-risk business model and predictable cashflows, DBI is well positioned to deliver growing distributions and sustainable long-term value”, Dalrymple Bay chairman David Hamill noted.

Taking a look back at the company’s achievements in FY 2025, Dalrymple Bay CEO Michael Riches noted that the company managed to grow revenue, profits, and dividends “whilst maintaining a safe workplace”.

Digging into the numbers, Riches said:

EBITDA [earnings before interest, taxes, depreciation and amortisation] rose 5.2% year-on-year to $294.3 million and our funds from operations, or FFO, increased 10.6% to $173.3 million…

We continued to invest back into the growth of our business, with committed capital projects at 31 December 2025 of approximately $429.6 million…

The strong financial performance resulted in a distribution of 24.625 cents per security being returned to securityholders during FY-25, an 11.9% increase on the prior year.

The post Why this $2.7 billion ASX 200 stock is charging higher in Wednesday’s sinking market appeared first on The Motley Fool Australia.

More reading

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• Buy, hold, sell: Civmec, LGI, Dalrymple Bay Infrastructure shares
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• Highlights from Dalrymple Bay Infrastructure’s latest investor presentation

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are hunting some new portfolio additions, then it could be worth listening to Morgans.

That’s because its analysts have just named three ASX shares as buys. Here’s what you need to know about them:

ALS Ltd (ASX: ALQ)

Morgans is feeling bullish on this testing services company following its FY 2026 results release.

In response to the result, the broker has reiterated its buy rating with a $27.20 price target. It commented:

Our forecast changes are negligible, and we still view risk to our forecasts as skewed firmly to the upside, absent a material supply disruption scenario. We forecast Commodities revenue growth of +25%, while our raisings data points to geochemistry volumes up +35-45% during 1H, corroborated by the sample flows chart which already shows volumes tracking +25-30% in April. The stock is now trading on just 23x FY27 PE as it enters a bullish commodities cycle with a gold-plated balance sheet (leverage 1.5x). Reiterate BUY.

Elders Ltd (ASX: ELD)

This agribusiness company’s results were short of expectations due to its systems modernisation.

Nevertheless, given significant share price weakness, the broker has retained its buy rating with a reduced price target of $7.90. It said:

While ELD’s 1H26 result was up strongly on the pcp, it missed consensus estimates due to materially higher Corporate Services costs associated with Systems Modernisation. Outlook comments were relatively optimistic despite the BOM’s dry outlook. We have revised our forecasts for higher costs and the divestment of Killara. After material weakness, we maintain a BUY recommendation. A significant rerating requires delivering consensus estimates and deleveraging.

Qualitas Ltd (ASX: QAL)

Morgans has responded positively to a recent update from this alternative real estate investment manager.

This has seen the broker upgrade the ASX share to a buy rating with an improved price target of $3.50.

Commenting on its buy recommendation, Morgans said:

Following QAL’s recent 3QFY26 update, the announced changes to residential real estate investment in the Federal Budget and the sale of a further interest in the comparable Metrics Credit, we have upgraded QAL to a BUY with a $3.50/sh price target. Our valuation and recommendation change was driven almost entirely by a reduction to our discretionary valuation discount (+75 cps), reflecting our lower perceived risk as a) the company reiterates that FUM commitments continue to increase and b) FUM deployments set new records.

The post 3 ASX shares Morgans rates as buys this week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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• Why Elders, New Hope, Pro Medicus, and Tuas shares are storming higher today
• Buy this ASX 200 stock for a 21% return: Broker
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Webjet Group Ltd (ASX: WJL) shares are being smashed on Wednesday after investors were hit with another difficult update.

At the time of writing, the Webjet share price is down 15.31% to 41.5 cents.

This adds to what has already been a brutal year for shareholders. The ASX travel stock is now down 28% over the past month and 52% since the start of the year.

The fall comes after Webjet updated investors on its commercial arrangements with Virgin Australia Holdings Ltd (ASX: VGN).

It also released its FY26 results, which showed a business still dealing with softer trading conditions, higher investment, and pressure on margins.

Virgin revenue hit

The main issue today is Webjet’s update on its agreement with Virgin Australia.

Webjet said its Webjet Marketing subsidiary has been receiving commission payments from Virgin Australia Airlines and Virgin Australia International Airlines.

These payments relate to the sale of Virgin flights and ancillaries, along with specified performance targets.

Virgin has now told Webjet it will substantially reduce its commission streams and commercial arrangements from 1 July 2026.

Webjet said the change would have had a financial impact of around $3 million on FY26 revenue if it had applied from the start of the year.

While the amount isn’t huge, investors are unlikely to welcome another revenue hit when the business is already facing a tougher FY27.

Webjet is already dealing with softer demand in parts of its online travel agency business, higher airfare pressure, and weak consumer confidence.

Losing revenue from a major airline partner would add another headwind going into FY27.

Profit falls despite higher revenue

Webjet’s FY26 result had some positives, but investors appear to be focused on the weaker parts.

Revenue rose 1% to $136.4 million, while statutory net profit after tax (NPAT) increased 85% to $3.7 million.

However, underlying EBITDA fell 20% to $28.1 million, and underlying NPAT dropped 24% to $13.6 million.

Bookings fell 7% to 1.4 million, while total transaction value declined 3% to $1.46 billion.

The Webjet OTA business remained the biggest earnings contributor, with EBITDA of $38.7 million. But even there, bookings were down 9%, and EBITDA fell 18%.

The Cars and Motorhomes division held up better, lifting EBITDA to $4.3 million from $1.6 million.

Webjet also declared a final fully-franked dividend of 2 cents per share.

This takes FY26 dividends to 4 cents per share, which was above 100% of underlying NPAT.

A tough year ahead

Webjet said FY27 trading is expected to be materially affected by lower airline commissions, RBA surcharging regulation changes, and lower variable revenue items.

It also said operating conditions remain fluid and challenging, with geopolitical conflict, inflationary pressure, and low consumer sentiment weighing on demand.

Management pointed to cost control, automation, AI, capital discipline, and balance sheet strength as key priorities.

The balance sheet is still in decent shape, with $93.9 million in net cash and no borrowings at 31 March.

The post Webjet shares crash 15% as Virgin Australia blow hits outlook appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.