“A+ Scorecard” – Bell Potter just upgraded this ASX materials stock

Develop Global Ltd (ASX: DVP) is an ASX materials stock that has soared over the last year. 

In the past 12 months, it has risen 138%. 

This includes a 22% rise already in 2026. 

It now sits close to its 52 week high. 

When valuations look full like this, it can be difficult for investors to jump in. 

However a new report from Bell Potter suggests the ASX materials stock can keep rising.  

2Q FY26 update

Yesterday, Develop Global released its Quarterly Activities Report- December 2025.

This included positive news regarding the company’s Woodlawn site. 

The Woodlawn copper restart is Develop Global’s recommissioning of its Woodlawn underground copper-zinc mine in NSW, bringing the operation out of care and maintenance and back into production. 

The company said the Woodlawn restart continues to perform strongly, with commissioning and ramp-up on schedule, putting the project on track for steady-state production in the March quarter:

• A record 59,000t processed in the month of December puts Woodlawn on track to reac name-plate capacity rate of 850,000tpa in the March quarter
• Quarterly revenue is up 98.5% to A$39.1 million from 9,472 tonnes of concentrate sales
• Copper and zinc concentrate production increased 36% and 43% respectively compared to the September quarter, predominately driven by higher grade production from the Kate lens. 

Reacting to the report, Bell Potter said: 

Woodlawn revenue was A$39.1m, higher than A$19.7m in the prior quarter and our $24.8m estimate. While processing volumes were broadly consistent with the prior quarter, greater copper and zinc concentrate production (up 36% and 43% on the prior quarter, respectively) implies higher head grade and / or metal recoveries.

Improved outlook for this ASX materials stock

In a report out of Bell Potter yesterday, the broker said the company ended the quarter with cash of $179.9m, drawn debt of $108.5m and equipment financing of $47.0m, for a net cash position of $24.4m (vs $46.0m at the end of the Sep-25 quarter).

This led to EPS changes of: FY26: +4% in FY26; nc in FY27-28.

Achieving steady-state Woodlawn production in the Mar-26 quarter is forecast to drive +92% EPS growth in FY27, with upside should spot commodity prices hold.

The broker highlighted the Mining Services division delivered A$55.5m in revenue in Q2 FY26. This was in line with expectations, driven by record output from its Bellevue Gold Mine contract.

The recently secured A$200m Waihi North tunnelling contract in New Zealand is set to commence in the June 2026 quarter, adding medium-term earnings visibility. 

Based on this guidance, the broker has updated its price target to $6.40 (previously $5.80). 

From yesterday’s closing price, this indicates an upside of approximately 15.7%. 

The post “A+ Scorecard” – Bell Potter just upgraded this ASX materials stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.