Shares in Woodside Energy Group Ltd (ASX: WDS) are trading higher after a research report from Macquarie teased the idea of the oil and gas major being a takeover target.

US major rumoured to be on the hunt

The research report issued on Friday morning argued that the Strait of Hormuz crisis has de-rated Qatari liquefied natural gas (LNG) assets for now, and arguably permanently.

Macquarie said this could mean there is more pressure for mergers and acquisitions in the LNG space, “making Woodside a viable target”.

The broker is arguing that consolidation in the energy sector will continue, and notes that Exxon Mobil Corp (NYSE: XOM) missed out on buying assets in Guyana 12 months ago.

Quoting Bloomberg as a source, Macquarie writes that ExxonMobil is “screening LNG acquisitions including Woodside”.

They added:

With US shale consolidations done and opportunities maturing, international deals make sense again, particularly in the LNG segment (post Strait of Hormuz).

Woodside is an attractive candidate, they said, with its M&A strategy over the past five years building a company that aligned strategically with what ExxonMobil would be after.

Macquarie said ExxonMobil would have to bring an attractive offer to the table, adding, “In our view, a meaningful premium that would be much harder to deliver as a standalone entity could increase the likelihood of board engagement”.

Hurdles to the deal could be board reluctance and the company’s large retail shareholder base, Macquarie said.

Woodside Energy shares looking like a good buy

The broker has raised its price target on Woodside shares by 9% to $32.80 per share, and if a 20% weighting for M&A activity was included, this would rise to $38.50.

Woodside shares are currently changing hands for $30.29, up 2.7% on the day. The company is valued at $56.06 billion.

RBC Capital Markets is also a fan of the stock, saying in a research note earlier this week that Woodside was its top large-cap pick in the energy sector, “based on its strong longer-term growth profile, and potential to generate more near-term higher priced gas hub sales and LNG trading volumes due to the Middle East conflict”.

They added:

Woodside’s 2Q sales revenue is expected to be supported by higher crude and … commodity pricing, despite production volumes being affected by the Pluto LNG project scheduled turnaround. We expect the volatile pricing environment to create opportunity for relatively high gas hub sales and LNG trading volumes quarter on quarter. Woodside’s production growth outlook remains highly attractive, with Scarborough (Pluto LNG T-2) on stream by the end of 2026, followed by Trion oil in 2028 and Louisiana LNG in 2029.

RBC has a price target of $34.50 on Woodside shares.

The post Could Woodside Energy be a takeover target? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Which ASX oil companies does RBC Capital Markets like amidst more Middle East conflict?
• 5 things to watch on the ASX 200 on Thursday
• How much do I need in superannuation to receive $6000 per month in passive income?
• With Hormuz closed, is there an opening to buy Woodside shares?

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.

When it comes to Australian financial services companies, at the moment it can pay to look beyond the big four banks when looking for outsized returns.

The brokers at Macquarie have this week issued reports into three ASX finance companies which they believe will perform well over the next 12 months.

Let’s see who they like.

Australian Finance Group Ltd (ASX: AFG)

Shares in this company have fallen 22.4% over the past 12 months, but the team at Macquarie think they will tick upwards over the next year.

AFG recently said in a statement to the ASX that AFG mortgage brokers had lodged $28.1 billion worth of home loans in the fourth quarter, which was the strongest June quarter on record.

AFG Chief Executive Officer David Bailey said regarding the result:

Following the strongest March quarter on record, some easing in June was expected, especially after the Federal Budget announcements on 12 May and during a tightening rate cycle. Despite divergence across states and shifting borrower sentiment mid-quarter, we delivered positive year-on-year growth and a record-high average loan size. We believe the fiscal policy changes announced during the quarter will represent a period of readjustment rather than a structural shift in underlying demand.

Macquarie said they were forecasting some headwinds for AFG as the impact of tax policy changes in the Federal Budget rolled through, and reduced their price target on the company from $3.01 to $2.26.

This remains well above the current price of $1.64.

Navigator Global Investments Ltd (ASX: NGI)

Macquarie has reinitiated coverage of this stock with an outperform rating after the company released a quarterly update earlier this week.

In that report, the company said assets under management were up 6% to US$33.6 billion, while assets under management in its Lighthouse Partners division were up 8% to more than US$20 billion.

The company said:

Ongoing geopolitical uncertainty, interest rate volatility and changing market conditions continue to create both opportunities and challenges for alternative investment strategies. Most of Lighthouse Partners’ strategies performed strongly during the quarter and several of NGI Strategic’s Partner Firms delivered strong performance on an absolute and relative basis during the quarter.

Macquarie said the company had a strong platform entering FY27, and the broker has a price target on the company of $3.28 compared to the current price of $2.44.

Netwealth Group Ltd (ASX: NWL)

Macquarie said Netwealth’s fund inflows of $3.09 billion were slightly below consensus, while total funds under administration of $134.3 billion were in line with expectations.

The broker has maintained an outperform rating on the stock due to “robust” earnings per share growth.

Macquarie’s share price target for Netwealth is $32.25 compared to $23.79 currently.

The post Macquarie tips three ASX finance companies to return better than 30% appeared first on The Motley Fool Australia.

More reading

• Are Macquarie, Qantas, and WiseTech shares buys?
• Are Netwealth shares a top buy after its update?
• 5 things to watch on the ASX 200 on Friday
• 3 ASX dividend shares that look better after CGT reforms
• Netwealth delivers record FUA in June 2026 quarter

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 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth 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.

The Alcoa Corporation Ltd (ASX: AAI) share price is in focus today after the company posted record quarterly revenue of US$4.0 billion and reported a sequential jump of 51% in adjusted EBITDA to US$901 million for the second quarter of 2026.

What did Alcoa report?

• Revenue rose 24% quarter-on-quarter to a record US$4.0 billion
• Net income attributable to Alcoa was US$407 million (US$1.53 per share)
• Adjusted net income grew 51% to US$562 million (US$2.12 per share)
• Adjusted EBITDA (excluding special items) increased to US$901 million
• Free cash flow reached US$422 million, finishing the quarter with US$1.4 billion in cash
• Set new year-to-date production records at four aluminium smelters and one alumina refinery

What else do investors need to know?

Alcoa announced a definitive agreement to acquire South32 Ltd’s (ASX: S32) interests in bauxite, alumina, and aluminium assets across Australia, Brazil, and South Africa for upfront consideration of approximately US$4.1 billion. This move is expected to bolster Alcoa’s position as a leading pure-play upstream aluminium company and deliver long-term value through operational synergies.

The company also celebrated the successful restart of its smelters in Spain, Brazil, Norway, and Australia, contributing to higher aluminium production and shipments this quarter. Alcoa completed collective bargaining agreements with unions in Australia, the United States, and Canada, ensuring stability for its workforce.

What did Alcoa management say?

President and CEO William F. Oplinger said:

During the second quarter, in addition to delivering strong financial results that captured favourable aluminium prices, our team executed on strategic initiatives, most notably the announced agreement with South32. We continue to demonstrate operational excellence and positive momentum in our disciplined approach to maximise value creation.

What’s next for Alcoa?

Looking ahead, Alcoa has lowered its 2026 alumina production and shipment guidance due to disruptions at the Pinjarra refinery following Cyclone Narelle. Nevertheless, aluminium production and shipment targets remain unchanged, and the company expects to benefit from cost efficiencies, gradual recovery in energy markets, and the integration of the newly acquired AliGroup assets.

Management anticipates a steady operational outlook for the third quarter, with forecast improvements from restored stability and lower energy prices offsetting planned maintenance activities. Alcoa remains focused on executing its growth strategy and leveraging its upgraded global portfolio for long-term shareholder returns.

Alcoa share price snapshot

Over the past 12 months, Acola shares have risen 49%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Alcoa smashes Q2 revenue record, boosts portfolio with South32 acquisition appeared first on The Motley Fool Australia.

More reading

• Perseus Mining: Yaouré growth drilling pays off
• Regis Resources upgrades FY27 production guidance and cost outlook
• Coles ends talks for Greencross acquisition
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

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.