Shaw and Partners analysts believe there is now a disconnect between the share prices of Australian uranium producers and developers and the global uranium market, which has demonstrated significantly improved fundamentals.

The broker has this week published a research report naming its top picks in the sector and share price targets for each, which we’ll get to shortly.

First, let’s see what they’re saying about the sector overall.

Energy security driving uranium demand

To start with, Shaw and Partners said there is a divergence between company share prices and the improving uranium price.

They said:

The Global X Uranium ETF is down 31% over the past three months and has given back the gains in Jan/Feb to be down 9% in CY26. That is despite the long term uranium price improving to US$95.5 per pound – a record high, and with strong momentum to move higher. We view the pullback as an excellent buying opportunity.

Shaw and Partners said the drivers behind the strong uranium price continued to strengthen.

They said:

Nuclear energy has returned to favour with governments focused on energy security and decarbonisation. The conflict in the Middle East adds additional focus on energy security. On top of that, demand for clean, baseload energy for data centres and AI will add further demand for nuclear power. The US, China and India have all set ambitious targets to expand their nuclear industries. There are now 38 countries pledged to triple nuclear energy by 2050.

The broker said the World Nuclear Association estimates there are currently 372 gigawatts of nuclear capacity online; however, this is expected to grow to 686 gigawatts by 2040.

They added:

Existing mine production is only about 150Mlb of U3O8, so we need to add ~240Mlb of new mine supply in the next 14 years. When you consider depletion of existing mines, the required new supply is more likely to be >350Mlb. It is difficult to see where more than 150Mlb of that supply will come from. Sovereign strategic buyers have recognised the urgency to lock in nuclear fuel supply next decade. India and China are leading the way, and we expect to the US follow suit.

Massive share price upside for ASX uranium companies tipped

In terms of the Australian companies they like, they are: NexGen Energy Ltd (ASX: NXG) with a price target of $24.80, Paladin Energy Ltd (ASX: PDN) with a price target of $19.10, Silex Systems Ltd (ASX: SLX) with a price target of $14.30, Bannerman Energy Ltd (ASX: BMN) with a price target of $7.60, Boss Energy Ltd (ASX: BOE) with a price target of $3.08, Peninsula Energy Ltd (ASX: PEN) with a price target of 81 cents, and Atomic Eagle Ltd (ASX: AUE) with a price target of $1.70.

The post 7 ASX uranium stocks one broker says have massive upside 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 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.

James Hardie Industries PLC (ASX: JHX) shares are storming higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) building materials company closed yesterday trading for $34.85. In earlier morning trade on Thursday, shares jumped to $37.89, up 8.7%. After likely profit-taking, shares are currently trading at $36.87 each, up 5.8%.

For some context, the ASX 200 is up 1% at this same time.

Today’s boost continues the strong upward trend for James Hardie shares since the recent lows in mid-May. Indeed, since market close on 18 May, the ASX 200 stock has gained an impressive 41.7%.

Here’s what’s stoking investor interest today.

James Hardie shares surge on Q1 guidance beat

James Hardie shares are outperforming today following the release of the company’s preliminary first-quarter FY 2027 results. ASX investors can expect to see the final audited results on 7 August.

As for the preliminary results, the company reported consolidated net sales of US$1.449 billion to US$1.475 billion. That result is being well received by the market today, as it is materially above Q1 sales guidance of US$1.315 billion to US$1.354 billion.

Earnings also topped expectations, with earnings before interest, taxes, depreciation and amortisation (EBITDA) ranging from US$399 million to US$407 million. That compares favourably to Q1 EBITDA guidance of US$354 million to US$375 million.

James Hardie’s Siding & Trim division performed strongly, achieving Q1 net sales of US$846 million to US$860 million. That also exceeds first-quarter sales guidance for the division of US$758 million to US$781 million.

In other core financial metrics, James Hardie reported preliminary consolidated GAAP net income for the quarter in the range of US$102 million to US$104 million.

What did management say?

Commenting on the results lifting James Hardie shares today, CEO Aaron Erter said, “Our first quarter results are expected to exceed our prior guidance, primarily as a result of better-than-expected sales in Siding & Trim”.

Erter continued:

Siding & Trim net sales reflected strong sell through and underlying demand for our products. Our performance in Deck, Rail & Accessories was driven by channel inventory normalization and sell-through that improved throughout the quarter.

First-quarter Deck, Rail & Accessories net sales came in at US$296 million to US$305 million.

Erter concluded:

We believe our performance reflects our team’s execution and growth above market, rather than a meaningful improvement in the overall US housing market. That said, we are encouraged by the positive traction from our initiatives to grow our fibre cement business, continued conversion in decking and the positive contribution from sales and cost synergies.

The post Why are James Hardie shares jumping 9% on Thursday? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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.

Wesfarmers Ltd (ASX: WES) shares have climbed substantially over the past three months, but broker Morgan Stanley warns the rally could be overdone.

Where to now for the Wesfarmers share price?

The shares have improved from levels in the low $70 range in April and May to be changing hands for $89.90 now, up a modest 8.16% over the past 12 months.

But Morgan Stanley warns that the re-rating in discretionary spend stocks has “run ahead of fundamentals and is unlikely to prove durable”.

Looking at the consumer sector broadly, the broker has downgraded its industry view to cautious from in-line, “following capital gains tax and negative gearing changes and the expected drag on housing activity, wealth effects, sentiment, and discretionary spending”.

They said that since the announcement of the tax changes, their cautious view had not changed, and they see the risk of derating as high.

Sector-wide, Morgan Stanley said companies were trading at high multiples, not far off 10-year highs.

They added:

Historically, valuation premiums at these levels vs. the market have required either accelerating earnings estimate revisions or a supportive macro backdrop. We see neither today, suggesting that the risk/reward balance has become increasingly unfavourable ahead of reporting season.

The broker has downgraded Wesfarmers to underweight, “following a period of strong share price performance that has pushed the stock’s valuation ahead of the likely earnings trajectory”.

They added:

While we expect Kmart to be a beneficiary of trade-down and range expansion (K home), we expect a moderation vs. consensus expectations in Bunnings’ sales growth, given the emerging correction in domestic property markets. Bunnings remains a high quality business with strong market positioning, attractive returns on capital, and structural opportunities across range, digital, loyalty, and store productivity. However, near-term expectations appear demanding. The emerging correction in domestic property markets is likely to weigh on housing turnover and renovation-related expenditure, particularly in larger-ticket and project-led categories. Maintenance and repair demand should remain comparatively resilient, but we expect softer discretionary spending to result in sales growth below current consensus assumptions.

Kmart, on the other hand, should be a beneficiary of pressure on household budgets, Morgan Stanley said, as consumers seek greater value for money.

They added:

Ongoing range expansion, including K home, provides an additional avenue for category growth and market share gains. Nevertheless, expectations for Kmart are already elevated following several years of strong execution.

What share price to expect

Morgan Stanley slightly increased its price target for Wesfarmers shares, upping it from $78.70 to $79.

The broker is expecting the dividend yield to be 2.7% this year.

The post How much does Morgan Stanley think Wesfarmers shares will fall? appeared first on The Motley Fool Australia.

More reading

• How many Wesfarmers shares do I need to buy for $10,000 of passive income?
• Up 29% since May, can Wesfarmers shares keep surging higher?
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Motley Fool contributor Cameron England has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.