When it comes to iron ore, BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) are the obvious names. However, if you’re looking for serious share price upside, junior companies can be worth a look.

ASX iron ore junior with potential

UBS has just initiated coverage of Champion Iron Ltd (ASX: CIA), and believes there is significant share price appreciation to be had over the next 12 months.

I’ll get to their specific share price target shortly. Firstly let’s have a look at why UBS likes the company.

The broker said broadly, they expect iron ore markets to remain balanced over the medium term, “with benchmark prices supported by cost inflation and resilient, albeit moderating, steel demand”.

With regards to Champion in particular, UBS said the company’s iron ore grades were the key differentiator.

The broker added:

Growing demand for premium steelmaking inputs, declining seaborne ore quality, and increasing blending requirements support structurally attractive economics for ultra high-grade iron ore producers. In our view, the market underappreciates CIA’s premium-grade product suite and the potential for improved premium capture as the Direct Reduction Pellet Feed (DRPF) facility ramps up.

UBS said the company’s pellet feed facility lifts the grade of its products from 66.2% to 69%, increasing the company’s exposure to premium markets.

The broker added:

Our CIA investment case rests on the market underestimating the scarcity value of CIA’s ultra-high-grade product suite, and the price realisation/earnings leverage from DRPF. As a result, we expect earnings to move above consensus from FY30.

UBS said Champion’s Bloom Lake mining operation, “benefits from a large, consistent orebody and established rail and port infrastructure, supporting reliable production and cost visibility”.

And they said the company was less vulnerable to price volatility due to the premium product being produced.

As they said:

Product quality and integrated logistics should underpin cash generation through the cycle, though fixed logistics costs reduce flexibility in weaker markets. Margin durability therefore remains tied to supportive high-grade premiums.

ASX iron ore shares looking cheap

UBS has a price target of $4.15 on Champion shares compared to $3.06 currently, and is also forecasting a 4% dividend yield.

Champion Iron is valued at $1.71 billion.

UBS recently raised its long-term iron ore forecast to US$93 per tonne from US$85 per tonne.

The broker said:

While consensus remains focused on Simandou’s supply addition and weaker Chinese construction activity, we believe the market is underestimating three structural supports to iron ore prices: resilient steel demand led by China’s manufacturing and export complex and the emergence of the Global South, a tighter iron-unit market balance once depletion and Fe grade decline are incorporated, and cost curve support that remains materially higher than in prior cycles.

The post This ASX iron ore junior could rise more than 33% UBS says appeared first on The Motley Fool Australia.

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

Adairs Ltd (ASX: ADH) shares are heading lower on Tuesday after the homewares retailer released an important company update.

The Adairs share price is currently down 4.28% to $1.23, extending what has already been a pretty rough year for shareholders.

Its shares have now fallen around 30% in 2026 and more than 50% over the past 12 months.

So, let’s take a closer look at what was announced this morning.

Why are Adairs shares falling?

The big news today is the resignation of group CEO and managing director Elle Roseby.

Roseby has given notice after less than 2 years in the top job, although she won’t be leaving immediately.

She is expected to remain with the company through all or most of her notice period, which runs until March 2027.

The board will now begin searching for a new CEO, with an appointment expected to be announced in due course.

There are also a few other changes happening across the leadership team.

Rachel Taylor will become executive general manager of the Adairs business from 5 October, taking responsibility for its day-to-day operations.

Meanwhile, CFO Matt Edmonds will take on additional responsibilities as group CFO and operations director.

Roseby only joined Adairs as CEO in January 2025, so her departure comes relatively early into her time running the company.

How is the business tracking?

Alongside the CEO news, Adairs also gave investors an update on how its three businesses are performing.

The core Adairs business continues to improve, with year-to-date sales tracking in line with the trend reported alongside its FY26 results.

Mocka is also performing well, with two standalone stores now open and a third expected to open in the third quarter of FY27.

But Focus on Furniture is still struggling.

Written sales were down 27.6% across the first 8 weeks of FY27 compared with the same period last year.

That improved slightly over the following 5 weeks, with sales down 22.7%.

It means Focus on Furniture written sales were down 19.5% across the first 13 weeks of FY27.

Management said the early impact of changes made since its FY26 results has been positive, although trading remains volatile from week to week.

The company is still expecting a difficult first half as it works through the turnaround.

Are Adairs shares looking cheap?

After such a big fall, Adairs shares are starting to look pretty cheap on a few measures.

At $1.23, the stock is now trading more than 50% below where it was this time last year.

The dividend is also worth a look.

Adairs paid 11.5 cents per share in dividends for FY26, which would give the stock a trailing yield of around 9.3% at today’s price.

Of course, whether that level of dividend can continue will depend on how earnings hold up through FY27.

If management can get sales moving back in the right direction, today’s share price could start to look exciting.

But I want to see more evidence that the turnaround is working first.

The post This ASX retail stock is sliding today after a surprise CEO exit 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 positions in and has recommended Adairs. The Motley Fool Australia has positions in and has recommended Adairs. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The cost of living in retirement has increased by more than $2,000 per annum, according to the latest update from the Association of Superannuation Funds of Australia (ASFA).

ASFA has just updated its Retirement Standard budgeting guide to take into account inflation for the June quarter.

ASFA created Australia’s Retirement Standard in 2004, and updates it every quarter to reflect inflation.

The Retirement Standard provides a realistic budget for general living expenses for a comfortable and modest retirement lifestyle. You can find out how ASFA defines comfortable and modest here.

What does retirement cost?

In today’s dollars, a comfortable lifestyle now costs $78,998 per year, up from $75,319 in the June quarter 2025, for couples who own their own homes.

For single homeowners, a comfortable lifestyle now costs $56,166 per year, up from $53,289 in June 2025.

A modest retirement lifestyle now costs $52,690 per year for couple homeowners, up from $49,992 in June 2025.

For single homeowners, a modest retirement now costs $36,548 per year, up from $34,522 in June 2025.

For retired couples who rent their homes, a modest lifestyle now costs $69,375 per year, up from $66,269 in June 2025.

For singles who rent in retirement, their living expenses now total $51,418 per year, up from $49,044 in June 2025.

ASFA says the goods and services that dominate retirees’ costs of living are rising faster than the 3.8% annual inflation rate for the June quarter.

ASFA CEO Mary Delahunty said:

Retirees are among the groups hit hardest by the cost-of-living crisis because their budgets are weighted towards the things going up in price the most.

These costs include electricity, up 22.4%, car maintenance and repairs, up 6.5%, medical and hospital services, up 5%, and insurance, up 4.9%.

What about superannuation?

Delahunty said superannuation represented “the difference between watching every dollar and having a sense of financial security in retirement”.

ASFA says couples need $730,000 in superannuation and singles need $630,000 by age 67 to fund a comfortable retirement lifestyle.

For a modest lifestyle, couples need $120,000 and singles need $110,000 in superannuation savings.

What about the pension?

The age pension is indexed twice per year, in March and September, to keep pace with inflation.

Following the inflation adjustments this month, single pensioners are now receiving an extra $36.80 per fortnight. This raised the full pension payment to $1,237.70 per fortnight.

Couples on the full pension are now receiving an extra $27.80 per partner, per fortnight, or $55.60 combined per fortnight. This raised the full pension to $933 per partner, per fortnight, or $1,866 combined per fortnight.

The pension is means-tested using an assets test and an income test.

Find out how much you can own and earn while still qualifying for the age pension here.

The post Retirement just got more expensive. Here’s what it costs per year appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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.