Thanks to its record of delivering business growth over the long-term, I’m calling L1 Group Ltd (ASX: L1G) one of Australia’s top shares.

Since the L1 Group share price has fallen 16% since 26 August 2026, it could be a good time to consider buying.

L1 Group is a fund manager offering several strategies that investors use, including a long-short strategy, a global long-short strategy, a gold strategy, international share strategies, and a UK residential fund.

I think this is a great time to invest in one of Australia’s top shares for the following reasons.

Volatile ASX share opportunity

Fund managers are often among the most volatile stocks on the market. This is because the share market can experience significant ups and downs, which can severely impact funds under management (FUM) and therefore the company’s monthly profitability.

But I think periods of decline can be the best time for brave investors to invest.

Don’t forget that the business has experienced strong FUM growth, which is a more important driver than ultra-short-term FUM movements. In FY26, L1 Group’s FUM increased by around 17%. It also said that quarterly flows improved every quarter in FY26.

According to the projection on CMC Invest, the L1 Group share price is now valued at 20x FY27’s estimated earnings.

Strong long-term investment performance

One of the most important drivers of a fund manager’s performance is the returns of the funds.

L1 can point to strong performance in both FY26 and the long term, particularly in what I consider the most important strategy. In fact, the long-short strategy has returned an average of 20.7% (net) per year between September 2014 and August 2026. I think that level of long-term performance earns it the classification as one of Australia’s top shares.

Of course, past performance is not a guarantee of future performance. However, those sorts of returns help drive the FUM higher organically. It can also help attract additional client FUM in the coming years.

Future profit growth expected

Following the L1 acquisition of/merger with Platinum, the medium-term outlook for profit margin growth seems very positive.

It recently announced it was increasing its target merger cost synergies from $35 million to around $43 million. The incremental synergy savings are expected to fund ongoing investment in the group during FY27.

On top of that, the company points out a number of core growth pathways. It notes growth of existing funds through performance and flows, joint ventures, extensions of existing strategies (such as the global long-short strategy and gold strategy), and the acquisition of existing investment managers.

According to CMC Invest, the business is projected to grow its earnings per share (EPS) by around 20% in FY27. This should be a strong growth tailwind.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in L1 Group. 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.

Both of these ASX mining companies have been downgraded by the brokers that cover them, yet their price targets remain well above their current trading levels.

Let’s see what the brokers are saying about them.

Meeka Metals Ltd (ASX: MEK)

This company has just completed a $40 million capital raise at 10 cents per share, with the money to be used to fund its next phase of growth.

More specifically, the money will be used to fund the company’s recent Mt Holland project acquisition, the development of its new Turnberry underground mine which will start in October, additional growth drilling and to strengthen working capital.

Meeka generated $160.8 million in revenue in FY26 and made a net profit of $51.3 million.

Broker Morgans said the company’s recent guidance of 7000-7500 ounces of gold recovered in the September quarter was below their estimate of 9800 ounces.

They added:

We maintain our BUY recommendation on MEK with a revised price target of 17 cents per share. MEK is transitioning to a two-mine underground operation, with Turnberry underground (first ore Jan-27) adding a second ore source to Andy Well. While the September quarter miss has tempered near-term expectations, the Turnberry ramp-up, ore sorter performance and drilling at depth are catalysts that could rebuild confidence and narrow MEK’s discount to net asset value.

Morgans’ price target is 87% higher than the current share price of 9.1 cents (at the time of writing).

American Rare Earths Ltd (ASX: ARR)

This company recently updated the scoping study for its Cowboy State mining project, which estimated an after-tax net present value of US$1.07 billion and a production rate of 2500 tonnes per year of neodymium and praseodymium (NdPr) oxide.

The mine is now expected to run for 26 years, up from 20, and cost US$900 million to bring into production.

American Rare Earths Chief Executive Officer Mark Wall said:

Our ambition is to turn Halleck Creek’s resource scale into a long term source of rare earth materials for American industry. This study gives investors a clearer view of the first development phase and the work that is moving it forward. We are now evaluating a mine with 50% greater processing capacity, 36% more annual NdPr oxide production and a longer operating life than the 2025 base case. That is a substantial platform from which to advance the project.

Bell Potter analysts said in their research note on the company that Halleck Creek remains one of the largest rare earth resources in the US.

The broker has a 55 cent price target on the company, which sits well above the current price of 36 cents (at the time of writing).

If achieved, this would represent a 52% return.

The post 2 ASX mining companies tipped to jump 52% and 87% appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Tuesday
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• This ASX health technology company could more than double in value: Broker
• How much could the big 4 banks’ share prices fall?

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 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.

I think that Telstra Group Ltd (ASX: TLS) is one of the most appealing ASX blue-chip shares to consider for passive income because of how much the business is paying.

As a very profitable business, Telstra is rewarding investors with large and growing dividend payments.

Dividends aren’t guaranteed, of course, but in a defensive industry like telecommunications, the payouts are more reliable and resilient than in many other sectors, in my view.

Let’s get into how Telstra could deliver $1,000 of annual passive income in 2027.

Telstra dividend projection

The business delivered strong dividend growth in FY26, increasing its annual dividend per share by 10.5% to 21 cents. Not many ASX blue-chip shares grew their payout by that much in FY26.

Things could get even better for shareholders in the 2027 financial year, and that’s what I think investors should focus on for the current financial year. FY26 is now the past.

According to CommSec, analysts are now projecting the annual dividend per share could grow to 22 cents per share. That would be a grossed-up dividend yield of 6.5%, including franking credits, at the time of writing.

Not many ASX blue-chip shares are offering that sort of potential yield, with further growth projected to come in the following financial year (FY28).

What would it take for $1,000 of passive income in 2027?

The amount required for $1,000 of annual dividends in FY27 depends on whether franking credits are included in the income.

With a passive income projection of 22 cents per share in the 2027 financial year, it would require 4,546 Telstra shares to generate that much dividend cash.

If we include franking credits as part of the dividend income, it would take 3,182 Telstra shares to reach the $1,000 grossed-up dividend income goal.

Is this a good time to invest in Telstra shares?

Analysts are largely positive or neutral on the business right now. According to CommSec’s collation of expert ratings, there are currently seven buys, eight holds, and one sell rating on the business.

Telstra expects both of its measures of operating profit (underlying EBITDAaL and cash EBIT) to rise in the single digits in FY27. Underlying EBITDAaL could come between $8.5 billion and $8.8 billion, while cash EBIT could reach between $4.75 billion and $4.95 billion.

While faster growth would be preferred, the company continues to demonstrate its ability to grow earnings, whether that’s during good times or not.

Australia’s ongoing digitalisation and growing population are both demand drivers for connection to the company’s mobile network or its fibre network, which can help earnings and the dividend in the coming year.

The post How much must I invest in Telstra shares to earn a $1,000 passive income in 2027? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.