S&P/ASX 200 Index (ASX: XJO) shares are 0.5% higher on Friday at 8,801.8 points.

Brokers have indicated continuing confidence in several ASX 200 shares this week.

Let’s take a look.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is $4.99, up 0.1% today and up 2.2% over 12 months.

Morgan Stanley reiterated its buy rating on Telstra shares on Wednesday.

The broker lowered its 12-month share price target from $5.40 to $5.30.

This implies potential capital gains of 6% in FY27.

Liontown Ltd (ASX: LTR)

The Liontown share price is $1.47, down 0.5% today and up 83% over 12 months.

The lithium producer was one of the 5 top ASX 200 mining shares for capital growth in FY26.

Macquarie renewed its buy rating on Liontown shares with a $2.30 target this week.

This suggests a potential 57% upside ahead.

Life360 Inc (ASX: 360)

The Life360 share price is $25.82, down 0.4% today and down 21% over 12 months.

Citi reiterated its buy rating on Life360 shares on Tuesday.

The broker raised its target from $28.25 to $31.95.

This implies potential capital gains of 24% ahead.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is $199.48, down 5.1% today and down 37% over 12 months.

However, that 12-month performance belies this ASX 200 healthcare share’s incredible comeback in CY26.

Pro Medicus shares hit a 52-week low of $107.75 on 24 February. Since then, they’ve ripped 85% higher.

And since the broader healthcare sector pivoted on 3 June, Pro Medicus shares have outperformed with a 25% gain.

That compares to a 21% increase in the S&P/ASX 200 Health Care Index (ASX: XHJ) since 3 June.

Citi sees more room for growth, and reiterated its buy rating with a $240 target this week.

This suggests another 20% upside ahead.

South32 Ltd (ASX: S32)

The South32 share price is $4.02, up 5.2% today and up 32% over 12 months.

Morgan Stanley maintained its buy rating on the ASX 200 mining share this week.

The broker shaved its 12-month target down from $4.85 to $4.75.

This implies a potential 18% upside ahead.

BHP Group Ltd (ASX: BHP)

The BHP share price is $58.28, up 2.5% today and up 52% over 12 months.

Morgan Stanley renewed its buy rating on BHP shares with a $67.50 target this week.

This suggests a potential 15% upside in the new financial year.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $34.24, down 1.1% today and down 70% over 12 months.

This tech share was the fastest faller of the ASX 200 in FY26.

Citi anticipates a strong recovery for WiseTech shares and renewed its buy rating this week.

However, the broker cut its 12-month target significantly from $65.65 to $52.

This still implies potential capital gains of 52% in FY27.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is $10.15, up 5.1% today and up 46% over 12 months.

Morgan Stanley kept its buy call on the ASX 200 energy share but lowered its target from $13.65 to $11.95 this week.

This suggests a potential 17% upside ahead.

Coles Group Ltd (ASX: COL)

The Coles share price is $23.58, down 0.4% today and up 15% over 12 months.

UBS renewed its buy rating on the ASX 200 consumer staples share with a $25.50 target on Monday.

This suggests a potential 8% upside ahead.

The post 9 ASX 200 shares with reiterated buy calls this week appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Macquarie Group, and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360, Telstra Group, and WiseTech Global. The Motley Fool Australia has recommended BHP Group, Macquarie Group, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Most investors wouldn’t think of drones initially when thinking of Codan Ltd (ASX: CDA), with the company having traditionally based its business around radio communications technology and metal detector sales.

But the company’s DTC division, which it acquired back in 2021, has developed radio technology for use on drone platforms, which has piqued the interest of the analysts at Macquarie.

Major opportunity for ASX drone players

The Macquarie team said in a recent note to clients that there is expected to be exponential growth in drone spending, citing a recent NATO initiative called “drone edge”, which envisages US$40 billion worth of investment in the sector from more than 30 countries.

They added:

As we mentioned in a previous report, the US Department of War’s 2027 budget overview includes US$53.6bn in funding for drone and autonomous systems and US$21bn for counter drone technologies. This dedicated investment into autonomous systems’ procurement, domestic production capacity and advanced capabilities is being divided across multiple specialised programs.

They said in relation to Codan:

When encompassing estimated communication layer drone costs and US-specific programs, together these frame a large, multi-year, structurally growing US demand pool that plays directly to DTC’s niche. DTC’s key offering of resilient datalink, mesh-networking and electronic warfare hardened communications layer is directly linked to various components that multi-domain drone and unmanned systems require.

The Macquarie team said beyond the US, “DTC also has significant opportunities in the European region as noted by management back at the 1H26 result”.

They added:

Europe has emerged as a structurally attractive opportunity as the recent step-change in defence spending driven by the war in Ukraine and NATO eastern-flank deterrence is flowing into unmanned-systems and resilient communications categories where DTC competes.

Macquarie said the Asia-Pacific region was also shaping up as one of the most compelling regions for DTC, driven by a surge in defence spending.

Australia itself was a “high-conviction oppoprtunity”, with the company’s radios already selected for the Land 129 UAV project.

Macquarie added regarding the company:

To meet surging international demand for secure communications solutions as a part of the increasing demand for drones and uncrewed systems, DTC has established a multi-country manufacturing footprint, expanding production outside the US. The newer established manufacturing locations for DTC, the United Kingdom and Australia, help to de-risk global supply chains. This expansion in manufacturing positions DTC well to capture opportunities across different regions globally.

Shares looking cheap

Macquarie has a price target of $48.50 on Codan shares compared with $43.25 currently.

The company is valued at $8.09 billion.

The post How high does Macquarie think this ASX drone technology company will go? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Which ASX 200 sectors paid the highest dividend yields in FY26?
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• ASX 200 tech shares tanked in FY26, but there were 3 winners
• Top ASX 200 share of each market sector in FY26

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

Elevra Lithium Ltd (ASX: ELV) shares are slipping on Friday after the lithium producer released an early look at its June quarter.

At the time of writing, the Elevra Lithium share price is down 4.54% to $8.62. By comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.5% to 8,809 points.

Despite today’s decline, Elevra shares remain up around 7% in 2026 and have climbed roughly 220% since this time last year.

The latest numbers included another strong quarter at the mine, although the lower price received for its lithium appears to be weighing on the stock.

Here’s what the company reported.

Production finishes the year strongly

According to the release, Elevra produced approximately 54,479 dry metric tonnes (dmt) of spodumene concentrate during the June quarter.

Production rose 15% from the March quarter and marked the second-highest quarterly result achieved at North American Lithium.

The operation delivered a particularly strong May, producing approximately 22,202 tonnes. Elevra described this as a monthly production record.

Full-year production reached approximately 197,968 tonnes, giving the company a stronger finish to FY26.

Management put the improvement down to continued work on plant optimisation, ore feed consistency, and recoveries. The company also pointed to throughput and operating efficiency gains across the quarter.

However, sales didn’t keep pace with production.

Sales came in at around 33,977 tonnes, which the company linked to customer delivery schedules.

As a result, Elevra finished June with a provisional inventory of around 40,863 tonnes.

Pricing takes the shine off production gains

The price Elevra received for its lithium was less than impressive.

The company reported provisional average realised pricing of approximately US$919 per tonne, sold free on board.

Management said June shipments were priced under contracts linked to average market prices between October 2025 and March 2026.

Lithium prices were lower through much of that period, which left Elevra receiving less than the current spot market.

The June quarter sales were also made under the company’s largest legacy contract, which uses the same delayed pricing structure.

Currently, the spot price for lithium is sitting at 158,500 CNY, down 3.35% for the day.

Can Elevra shares recover?

I think Elevra shares can recover from here.

Production is improving, and the pricing lag should start to ease as more sales move onto newer contracts.

The next step is to turn that higher output into better sales and cash flow, particularly after inventory increased during the quarter.

The full quarterly report later this month should show whether higher production is starting to improve the rest of the business.

The post Why record production could not save this ASX lithium stock today appeared first on The Motley Fool Australia.

More reading

• Top 5 ASX 200 lithium shares of FY26
• 13 ASX 200 shares that doubled in value in FY26
• 5 best ASX 200 mining shares of FY26
• ASX shares vs. property in FY26: Which investment outperformed?
• Here are the top 10 ASX 200 shares today

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 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.