Brightstar Resources Ltd (ASX: BTR) is being overlooked by investors at the moment, according to the team at Shaw and Partners, which has tipped the emerging gold producer to more than triple in value as its projects come into production.

Projects already well-progressed

Shaw and Partners analysts said that, between the company’s Goldfields and the Sandstone projects, Brightstar has a “realistic path” to producing 275,000 ounces of gold per year from FY31.

The analysts said in a note to clients this week:

In our view, the market is heavily discounting BTR’s project delivery. However, we find both projects relatively low-risk, standard WA gold operations. Goldfields has already commenced construction with first gold due in JunQ’27. Sandstone may be early-stage but has permitting and technical advantages, plus considerable Resource upside potential. Market confidence could be aided with two Resource updates, a maiden Reserve, and prefeasibility study expected in 2H CY26.

Brightstar made a final investment decision to proceed with the Goldfields project in May, saying at the time it was fully funded through to first gold following the completion of a $193 million equity raising and a US$120 million bond financing.

The project was expected to produce about 75,000 ounces of gold per year over the initial six-year mine life, generating about $1 billion.

Brightstar Managing Director Alex Rovira said regarding the project:

Today’s Final Investment Decision is a landmark moment for Brightstar. With all key approvals now secured, funding in place and the EPC contract executed with GR Engineering, we are immediately moving into full construction of the 1.5Mtpa Laverton processing plant. It marks the first major step in our TARGET200 strategy to build a multi-asset Western Australian gold producer and advance our aspiration of being a Top 10 Australian Gold Producer. We are fully funded, highly motivated and focused on executing with discipline to deliver this transformative project on time and on budget whilst continuing to unlock further value across our Goldfields and Sandstone assets.

The Shaw and Partners team said the Goldfields project posed low technical risk and believed the mine would eventually produce one million ounces of gold.

They said that at an earlier stage of the Sandstone project, they expected production to peak at 200,000 ounces per year and that the gold resource could “materially increase” in the second half of this calendar year.

Shares looking cheap

The analysts added that, looking at peer group companies, a market capitalisation of $2 billion was reasonable.

Brightstar’s current market capitalisation is $323.9 million.

Shaw and Partners has a $1.15 price target on the company’s shares compared to 28 cents currently.

The post Looking for returns of greater than 250%? One broker has tipped this ASX gold stock to fly 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.

DroneShield Ltd (ASX: DRO) is one of the most talked-about growth shares on the ASX, and it is easy to see why.

Drones are becoming a bigger issue for defence forces, governments, airports, prisons, and critical infrastructure operators. That is creating more demand for technology that can detect, track, and respond to drone threats.

Despite this, DroneShield shares have been on a poor run and are now down around 60% from their high.

That combination of a serious long-term security problem and a much lower share price is what makes the stock interesting to me.

Why the market is interested

The basic investment case is easy to understand.

Drones are becoming cheaper, smarter, and more widely used. They can be useful for commercial and civilian purposes, but they can also create serious security problems.

Military forces, airports, prisons, major events, government sites, and critical infrastructure owners all have reasons to detect and respond to drones that should not be there.

That gives DroneShield a large problem to address. Its technology is designed to help customers detect, identify, track, and respond to drone threats. I think that full chain is important. It is not enough to know that a drone is nearby. Customers need useful information quickly and response options that fit the situation.

This is where strong products, software, sensors, and integration can become valuable.

The opportunity is bigger than one contract

One mistake investors can make with small defence technology companies is focusing too heavily on the next contract announcement.

Contracts are important, of course. They provide revenue, credibility, and proof that customers are willing to pay.

But I think the bigger question for DroneShield is whether it can build a repeatable sales engine.

That means turning interest in counter-drone technology into ongoing demand across different regions, customers, and use cases. It also means developing software, services, upgrades, warranties, and support that can add more depth to the revenue base.

If DroneShield can become a trusted supplier rather than a one-off equipment provider, the investment case becomes much more interesting.

What needs to go right

DroneShield still has a lot to prove. It needs to keep winning meaningful contracts, deliver products on time, maintain technology leadership, manage production, and support customers properly.

It also needs to show that revenue growth can translate into attractive margins and cash flow generation over time.

That last point is important. A strong theme can lift a share price, but long-term value usually comes from earnings. Investors will eventually want evidence that demand is not only real, but profitable.

Competition is another factor. Defence technology attracts serious players, and government customers can be demanding. DroneShield needs to keep showing that its products are useful, reliable, and worth selecting.

Why I’d buy

I would treat DroneShield as a speculative ASX growth share, so position sizing would be important.

This is not the type of stock I would put in the same basket as a mature blue-chip share. But I think the pullback has made the risk/reward more attractive for investors who can accept volatility.

The company is operating in a market where demand could remain strong for years, especially as drones become more common in conflict zones and around sensitive infrastructure. If counter-drone systems become a standard part of defence and security spending, DroneShield could have a substantial runway.

The upside could be significant if management executes well.

Foolish takeaway

DroneShield is a high-risk ASX growth share, but I think it is also one of the more compelling technology stories on the market.

The company is addressing a problem that governments and security customers cannot ignore. That gives it a strong starting point, while the share price fall of more than 60% from its high has made the valuation more interesting.

I would still want to see continued contract momentum, improving revenue quality, and evidence that scale can lead to stronger earnings. But for investors with a higher risk tolerance, I think DroneShield shares are worth buying as a small, patient position.

The post Is DroneShield the ASX growth share investors should be buying? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.

Telstra Group Ltd (ASX: TLS) shares rocketed higher at the start of the year, climbing around 18% to an all-time high in mid-May.

But as quickly as the telco‘s shares spiked, they cooled back down again. 

What has happened to Telstra shares?

The telco’s share price has been incredibly volatile recently, swinging between $5.41 and $4.97 over the past couple of months. At the time of writing, Telstra shares are trading at $5.14 a piece.

By early June, Telstra shares had fallen 11% from their peak. It looks like much of the shift in sentiment was investors taking their gains off the table after a huge rally.

The downturn also accelerated when a flurry of brokers updated their outlooks on the stock.

A broad softening in defensive shares, including telcos, and valuation concerns have also acted as headwinds.

Another headline that has weighed on sentiment is Telstra’s announcement of job cuts late last month. The company said it plans to cut 111 jobs as part of a restructuring of its technology division under new CEO Vicki Brady. The restructure collapses several of Telstra’s internal technology and infrastructure teams into two new divisions.

The latest headcount cut follows the telco’s announcement earlier this year that it would axe up to 650 roles as part of a restructuring and AI-driven efficiency programs.

It looks like investor confidence is still under pressure and the share price has struggled to rebound through June.

The question now is, what’s next?

Are the telco’s shares a buy, sell or hold?

The outlook over the next 12 months is split.

Market Index data shows the majority of brokers have a buy rating on Telstra shares. The $5.50 average target price implies a potential 7% upside ahead.

But analysts on TradingView data are a lot more reserved. All 10 analysts have a hold rating on Telstra’s shares, but their target prices vary significantly. The average $5.25 target price implies a potential 2% upside at the time of writing.

But some forecast the shares to rise 8% to $5.57, and others expect them to fall further by around 11% to $4.60 apiece.

Macquarie thinks Telstra shares are trading close to fair value. The broker downgraded its rating to a hold earlier this month and shaved its price target on Telstra shares to $5.57. Based on the current share price of $5.14, the price target suggests potential upside of around 8%.

The team at Shaw and Partners give Telstra a sell rating. The broker said it thinks the stock has been trading at elevated levels and was pushed higher by its defensive appeal. But it adds that underlying growth is limited, and the dividend yield is becoming less attractive.

The post Here’s what brokers tip for Telstra shares over the next 12 months appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 positions in and has recommended Telstra 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.