ASX consumer discretionary stock Universal Store Holdings Ltd (ASX: UNI) just soared 17% on the back of earnings results. 

Investors were gobbling up shares in the company following a result that included double-digit revenue growth and ongoing store expansion. 

A new report from Bell Potter suggests this could be a sign of what’s to come over the next 12 months. 

What did the company report?

As reported by Laura Stewart yesterday, the company reported a 12.9% rise in revenue to $376.1 million for FY26, with underlying NPAT up 16.3% to $40.5 million.

Other results included: 

• Underlying net profit after tax (NPAT) of $40.5 million, up 16.3%
• Statutory NPAT of $18.2 million, down 21.6% due to non-cash impairments
• Gross margin of 62.5%, up 1.4 percentage points
• Underlying EBIT of $64.0 million, up 17.2%
• Final fully franked dividend of 17 cents per share (FY total dividends: 43.0 cps). 

Prior to yesterday, this ASX consumer discretionary stock had faced several sector-related headwinds. 

However, it seems the tide could be turning. 

Bell Potter renewed confidence

Following the release, Bell Potter provided updated guidance on this ASX consumer discretionary stock. 

The broker saw the FY26 result as a clear beat, with revenue above guidance and EBIT at the top end, while FY27 trading has started positively despite tough comparables. 

Group retail sales were up 9%, with particularly strong like-for-like growth. 

The biggest positive was the FY27 store-opening guidance of 16-20 stores, well above Bell Potter’s prior estimate. 

They have lifted their forecast to 17 net new stores, putting the core Universal Store network on track to reach around 100 stores by FY28.

Upgraded target price for this ASX consumer discretionary stock

Based on this guidance, Bell Potter retained its buy recommendation. 

It also lifted its price target to $9.70 (previously $9.30). 

From yesterday’s closing price, this indicates a further 17% upside. 

Our TP increases by ~4% to $9.70/share given our modest earnings revisions and time creep. We remain supportive of UNI’s continued ability to gain market share in a niche streetwear/womenswear category as the overall retail sector goes through a cyclical low point in FY27. We see this backed by UNI’s continued execution to attract the selective youth customer spend.

At 15x FY27e P/E and continuing to offer ~9% EBIT growth over FY27-29e (BPe), we retain our optimistic views on UNI as a high quality retailer with a healthy balance sheet and maintain our BUY rating.

The post Why this ASX consumer discretionary stock could be the pick of the sector  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 recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Yesterday, Medallion Metals Ltd (ASX: MM8) announced a $60 million placement to support the development of the Ravensthorpe Gold Project and boost growth drilling across its Western Australian portfolio.

What did Medallion Metals report?

• Raised $60 million via a single-tranche placement at $0.48 per share
• 125 million new ordinary shares to be issued to institutional and sophisticated investors
• Total available liquidity post-raise reaches approximately $175 million
• Funding underpins ramp-up to commercial gold-copper production at Ravensthorpe, plus processing at Forrestania
• Proceeds support mine development and accelerated extensional drilling at Kundip and Lounge Lizard

What else do investors need to know?

The fundraise was cornerstoned by respected institutional investors, showing significant confidence in Medallion’s strategy and assets. Proceeds will be used to advance development at Ravensthorpe and Forrestania, allowing the company to meet liquidity requirements for its financing facilities.

With this capital boost, Medallion Metals plans to ramp up exploration, particularly at priority targets such as Kundip and Lounge Lizard. This could enhance the company’s production profile and long-term sustainability.

What did Medallion Metals management say?

Managing Director Paul Bennett said:

Medallion emerges from this capital raising in an extremely strong position to progress to commercial production of gold and copper. Project development activities are advancing rapidly at both Ravensthorpe and Forrestania, with toll treatment expected to commence in October and commissioning of the expanded and modified process plant on Ravensthorpe feed targeted for mid-2027.

With the company’s funding position in excess of the project requirements, we have the ability to accelerate drilling programs at our most prospective targets, with the objective of growing the production profile across our projects. We welcome our new shareholders and appreciate the continued support of our existing shareholders. The backing of this high-quality group of resources investors is a significant endorsement of our team, assets and near-term gold-copper production strategy.

What’s next for Medallion Metals?

The company expects to commence toll treatment at Forrestania in October and aims to commission the upgraded Ravensthorpe plant by mid-2027. With strong financial backing, Medallion can accelerate drilling and advance projects with fewer funding constraints.

Investors can look forward to steady progress reports, including potential resource growth and milestone achievements across the portfolio throughout 2026 and into 2027.

Medallion Metals share price snapshot

Over the past 12 months, Medallion Metals shares have risen 77%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post Medallion Metals bolsters liquidity with $60m placement for production and growth appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Yesterday, PWR Holdings Ltd (ASX: PWH) reported record group revenue of $170.7 million, up 31%, and statutory NPAT of $17.9 million, up 83.2% for FY26.

What did PWR Holdings report?

• Revenue: $170.7 million, up 31.2% on the prior year
• Statutory NPAT: $17.9 million, up 83.2%
• EBITDA: $40.7 million, up 59.6%
• NPAT margin: 10.5%, up by 3 percentage points
• Final dividend: 5.0 cents per share, up from 2.0 cps
• Cash conversion: 104.9%, with free cash flow of $10.6 million

What else do investors need to know?

PWR delivered strong top-line growth, driven mainly by Motorsports (up 45%) and Aerospace & Defence (up 31%). Operating leverage improved, with margin expansion as the newly completed Stapylton facility enabled greater volumes and efficiency.

The company finalised its Australian factory move and invested in capability upgrades, including entry into the European market with a new Poland facility due to open in FY27. The Aerospace & Defence order book surged to $40 million, with PWR securing a follow-on US Government contract.

PWR continues to scale its engineering and production teams, now employing over 700 people globally. Investment in research and development grew to $14.9 million, supporting next-generation cooling technologies.

What did PWR Holdings management say?

Chief Executive Officer Sharyn Williams said:

Our record results reflect the strength of our technology and the dedication of our people. The momentum in Aerospace & Defence demonstrates the success of our strategic investments, and our new European base positions us well for further international growth.

What’s next for PWR Holdings?

Looking ahead, PWR expects its higher revenue baseline to be maintained in FY27, with Aerospace & Defence as the main growth driver. A phased start-up of the new Poland facility will support the company’s ambitions in the expanding European defence market, with FY27 investment and start-up costs expected to reduce NPAT by less than $1 million.

The board expects margin recovery to continue, aiming for a 2% statutory NPAT margin improvement in FY27. Growth is likely to be supported by greater automation, improved product mix, and expansion in both global motorsports and aerospace sectors.

PWR Holdings share price snapshot

Over the past 12 months, PWR Holdings shares have risen 26%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post PWR Holdings reports record FY26 earnings and European expansion appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 PWR Holdings. The Motley Fool Australia has positions in and has recommended PWR Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.