Yesterday, a2 Milk Co Ltd (ASX: A2M) released its FY26 results.

As Laura Stewart reported yesterday, the company reported preliminary FY26 results, featuring revenue up more than 12% to about $1.97 billion. 

This was despite China infant milk formula (IMF) sales declining due to supply chain disruptions.

Key results included: 

• FY26 revenue of approximately $1.97 billion, up over 12% year-over-year
• China label IMF sales down around 14% on FY25 after supply chain issues in 4Q26
• EBITDA margin expected at the high end of 14.0% to 14.5% guidance
• NPAT anticipated to be slightly up on FY25, with underlying NPAT also rising

Following the results, A2 Milk shares fell over 4%. 

What is Bell Potter’s updated outlook on A2 Milk shares?

Following the results, the team at Bell Potter provided updated guidance on A2 Milk shares. 

Bell Potter views the update as broadly positive, with revenue expected to land within guidance at $1.97 billion and EBITDA margins at the top end of the guided range, resulting in EBITDA of around $285 million, broadly in line with expectations. 

Profit guidance has improved, with NPAT now expected to be slightly higher year-on-year and operating cash conversion upgraded to around 70%, reflecting stronger cash generation than previously guided.

The key disappointment was the weaker-than-expected performance of China label infant formula, with revenue expected to decline 14% year-on-year and second-half sales falling more than 40% after adjusting for foreign exchange, significantly below Bell Potter’s forecasts. 

While product supply issues have largely been resolved and management is now focused on marketing initiatives to win back former customers and attract new users, Bell Potter believes the weakness suggests the company may need to rebalance its China sales mix in FY27.

As a result, Bell Potter has modestly increased its FY26 earnings forecast but reduced FY27 and FY28 estimates to reflect higher expected brand investment and a slower recovery in China. 

NPAT forecasts have been revised up 3% for FY26, but down 6% for FY27 and down 5% for FY28.

Hold recommendation maintained 

A2 Milk shares have experienced volatility in 2026, and are currently down nearly 20% year to date. 

Yesterday, A2 Milk shares closed at $7.37 per share. 

Bell Potter has maintained its hold recommendation and share price target of $6.90 on the company. 

This indicates a 6% downside from current levels. 

The post What is Bell Potter saying about A2 Milk shares after its results? 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.

It has been a tough 2026 so far for ASX 300 stock Elders Ltd (ASX: ELD). 

Elders is a leading supplier of fertiliser, agricultural chemicals and animal health products to rural and regional Australia. It has strong agency positions in livestock, wool and real estate.

Year to date, its share price has fallen 21%.

For comparison, the S&P/ASX 300 (ASX:XKO) index is up 0.5% in the same period. 

However after falling in 2026, the team at Bell Potter is optimistic it can recover in the next 12 months. 

Here is what’s behind the bullish view. 

Mixed conditions

Bell Potter notes that conditions for Elders have been mixed since the last reporting period. 

Strong livestock activity and significantly improved soil moisture across much of Australia’s cropping regions have been partly offset by lower crop input prices, particularly urea.

Livestock markets remained supportive during the third quarter, with higher cattle slaughter and yardings, stronger prices for cattle, lamb, mutton, and wool, and increased wool volumes, providing a positive backdrop for Elders’ agency business.

Cropping conditions have improved considerably after above-average rainfall across most of the Australian wheat belt, especially in southeastern Australia. 

Soil moisture and crop health indicators have strengthened to their highest positive deviation in the past 14 years, although drier conditions are still expected in the second half of 2026.

On the downside, crop input prices have continued to soften. 

Urea prices have fallen 47% from their peak and are now below pre-conflict levels, while glyphosate prices are down around 18%, which may reduce the value of Elders’ crop input sales despite benefiting farmers through lower costs.

Buy recommendation for ASX 300 stock 

Following share price weakness, the team at Bell Potter now views this ASX 300 stock as a buy-low candidate. 

Bell Potter has a buy recommendation along with a price target of $6.45 on the company. 

From yesterday’s closing price of $5.38, this indicates an upside potential of 20%. 

Our Buy rating unchanged. The market is pricing ELD for the effects of an El Nino, with the stock down -27% since the BOM announced the El Nino watch and the short interest >9%. 

While the intensity of El Nino is not anticipated until 2HCY26e, patterns over the major winter cropping selling window appear to have been broadly positive and livestock agency trends have remained favourable, to a degree derisking the FY26e outlook.

The post Is this ASX 300 stock a buy-low candidate after crashing 20% this year? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Elders confirms Killara Feedlot sale completion for June 2026
• 5 ASX dividend stocks for passive income investors

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

I think the best exchange-traded funds (ETFs) are those that can give investors access to powerful long-term trends.

They provide exposure to areas of the global economy that can keep evolving over many years.

With that in mind, here are two Vanguard ETFs that I think are worth considering.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

The first ETF I would consider is one that gives investors exposure to a region undergoing enormous change.

It provides access to large and mid-sized companies across Asian markets outside Japan.

What interests me about Asia is the scale of its economic development. Millions (even billions) of people across the region are entering higher levels of consumption, adopting new technologies, and accessing services that have become common in developed markets.

That creates opportunities for businesses involved in areas such as financial services, consumer products, technology, and infrastructure.

I think the VAE ETF offers a different type of growth exposure compared with many other global ETFs. It gives investors access to companies benefiting from changing lifestyles and rising economic participation across some of the world’s most populous markets.

Of course, Asian markets can experience periods of uncertainty. Different countries have different economic conditions, currencies, and regulatory environments.

But for long-term investors, I think the VAE ETF provides exposure to a region with significant room to continue developing.

Vanguard Global Technology Index ETF (ASX: VTEK)

The second Vanguard ETF I would look at is focused on one of the biggest forces reshaping the global economy.

It provides exposure to companies involved in the technology sector, including businesses developing the software, hardware, and digital infrastructure used around the world.

I think the interesting part of technology investing is how many industries now depend on it. Technology is influencing healthcare, finance, manufacturing, education, transport, and everyday communication. The companies that create these tools can become deeply embedded into how other businesses operate.

Artificial intelligence is accelerating demand for chips, cloud infrastructure, software platforms, and the digital tools businesses use to automate work. While it is still early and individual winners are difficult to predict, I think owning a basket of global technology companies provides a way to participate in that long-term opportunity.

The VTEK ETF can experience larger price movements than broader market ETFs, particularly when investors change their expectations around technology companies. But for investors with patience, I think exposure to businesses driving innovation can be a powerful addition.

Foolish takeaway

I think these Vanguard ETFs appeal for different reasons.

One provides exposure to Asia’s ongoing development and the other captures the companies shaping technological change.

The common thread is that both funds give investors a way to own businesses benefiting from long-term economic progress.

That is why I think these ETFs could be valuable long-term holdings for investors who want simplicity without sacrificing exposure to global opportunities.

The post Why I think these Vanguard ETFs are strong buys appeared first on The Motley Fool Australia.

More reading

• 3 Vanguard ETFs to build long-term wealth
• Why I’d put $2,500 into these top Vanguard ETFs
• 3 ASX ETFs I’d buy if I wanted easy global investing

Motley Fool contributor Grace Alvino 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.