It has been another bruising week for investors in DroneShield Ltd (ASX: DRO) shares.

The ASX defence stock was down another 5% to $2.29 in Friday afternoon trading, extending its weekly decline to roughly 15%.

The recent sell-off has been relentless. DroneShield shares have tumbled around 28% over the past month, erasing much of this year’s spectacular rally.

Even so, the ASX stock remains up approximately 4.6% over the past 12 months.

Why are DroneShield shares falling?

The biggest shift has been investor sentiment.

Earlier this year, DroneShield shares were one of the market’s hottest defence plays. Rising geopolitical tensions, growing military spending across Europe and elsewhere, and surging demand for counter-drone technology helped fuel a powerful rally in the company’s share price.

But markets don’t just price in growth — they price in expectations.

Following the stock’s rapid rise, investors appear to have started questioning whether DroneShield can grow quickly enough to justify its lofty valuation. That’s left the shares particularly vulnerable to any disappointment.

Perhaps most notably, a steady stream of contract announcements has done little to halt the selling. Normally, fresh customer wins would be expected to support a high-growth defence stock.

Instead, investors have largely shrugged them off, suggesting concerns now centre more on valuation than on the strength of the underlying business.

Adding to the pressure has been an easing in geopolitical tensions in the Middle East, reducing some of the urgency around defence-related investments after months of heightened enthusiasm.

ASIC investigation rattled investors

Governance concerns have also weighed on sentiment. A major turning point came in May when DroneShield revealed that the Australian Securities and Investments Commission (ASIC) had requested the company provide reasonable assistance in connection with an investigation under the Corporations Act.

The investigation relates to market announcements and share trading during November 2025. Importantly, DroneShield has not been accused of wrongdoing. Nevertheless, regulatory investigations often create uncertainty, and uncertainty is something investors rarely reward.

Combined with the elevated valuation of DroneShield shares, the announcement was enough to trigger a sharp reversal in momentum.

So, are DroneShield shares a buy?

Broker opinion is anything but unanimous. According to TradingView data, just four analysts currently cover DroneShield, and they’re evenly split. Two have strong buy recommendations, while the other two rate the stock as either a sell or strong sell.

That wide divergence highlights just how polarising the investment case has become. Despite the split, analysts generally agree there is upside from current levels. The average 12-month price target sits at $3.41, implying potential upside of around 49%.

The most bullish analyst has a target price of $4.80, suggesting the shares could more than double from current prices. Among the optimists is Canaccord Genuity, which last week reaffirmed its buy rating on DroneShield shares. The broker has a 12-month price target of $3.75, implying upside of approximately 62%.

The post After a horror week: Are DroneShield shares a buy, hold or sell? appeared first on The Motley Fool Australia.

More reading

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• Own DroneShield shares? Here’s some news you might have missed
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Motley Fool contributor Marc Van Dinther 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 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.

S&P/ASX 200 Index (ASX: XJO) shares slipped into the red at lunchtime on Friday.

ASX 200 shares are currently down 0.003% to 8.748.4 points.

Meanwhile, brokers have indicated new confidence in several ASX shares this week.

Here are six stocks that have been upgraded.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $12.05, down 0.08% today.

Over the past month, this ASX 200 consumer discretionary share has ripped 22%.

Jarden upgraded Flight Centre shares to a buy rating with a $15.90 target price.

This suggests a potential 30% upside ahead.

Karoon Energy Ltd (ASX: KAR)

The Karoon Energy share price is $1.27, down 1.5% today.

Karoon Energy shares tumbled 11% last Tuesday when the company issued production downgrades.

Calendar year 2026 total production guidance was revised to a range of 7.2 MMboe to 8.2 MMboe.

That’s down from 8.1 MMboe to 9.2 MMboe previously.

Macquarie upgraded the ASX 200 energy share to a hold rating this week.

The broker’s 12-month target is $1.50, suggesting an 18% upside ahead.

Oil prices have slumped back to pre-war levels following the signing of the US-Iran interim peace deal.

Iluka Resources Ltd (ASX: ILU)

The Iluka Resources share price is $6.95, down 3.2% today.

This ASX 200 mining share has risen 18% in the calendar year to date (YTD).

Canaccord Genuity upgraded Iluka Resources shares to a buy rating on Wednesday.

The broker upped its 12-month price target from $8.10 to $8.45.

This implies a potential 20% upside ahead.

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is $1.41, up 0.7% today.

Over the past six months, this ASX consumer discretionary share has tumbled 43%.

Ord Minnett upgraded Baby Bunting shares on Thursday.

The broker has a 12-month price target of $2.30.

This implies a potential 60% upside ahead.

Collins Foods Ltd (ASX: CKF)

The Collins Food share price is $8.16, down 1.3% on Friday.

Over the past six months, the KFC fast food restaurant operator has lost 23% of its market valuation.

Citi upgraded Collins Foods shares to a buy rating on Tuesday.

The broker shaved its 12-month price target from $10.45 to $10.30.

This indicates capital gains of 26% over the next year. 

Sims Ltd (ASX: SGM)

The Sims share price is $28.13, up 0.3% today.

Over the past month, this ASX industrial share has ascended 15%.

Jefferies upgraded Sims shares to a hold rating this week.

The broker has a 12-month price target of $31.

This indicates a potential 10% upside over the next year. 

The post 6 ASX shares with upgraded ratings from experts 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 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 Jefferies Financial Group and Macquarie Group. The Motley Fool Australia has recommended Collins Foods, Flight Centre Travel Group, and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Lendlease Group (ASX: LLC) shares are slipping on Friday after the property and investment group released another market update.

At the time of writing, the Lendlease share price is down 2.52% to $3.09.

That comes after a big move on Thursday, when the ASX 300 stock rocketed 8.93% following its previous update.

Even after today’s pullback, Lendlease shares are still up around 10% over the past month.

However, it has been a much tougher year for shareholders. The stock remains down roughly 40% since the start of 2026, which shows how much ground still needs to be recovered.

Here’s what the company told investors today.

Lendlease completes another asset sale

According to the release, Lendlease has completed the portfolio recycling of its UK build-to-rent assets, which will bring in more cash before the end of FY26.

The sale covers 404 residences at Elephant Park in London. These were developed between 2021 and 2024 through Lendlease’s investment partnership with Canada Pension Plan Investments.

With the project itself now largely complete, and the assets fully stabilised, the company has been able to recycle capital from the portfolio.

Management said the transaction is in line with the December 2025 book value and should settle before 30 June.

Once that goes through, Lendlease expects to receive around $260 million in cash proceeds in FY26.

Still a long road back

The sale gives Lendlease more cash to work with, which is a positive. But the size of the share price fall this year shows investors are still looking at the bigger picture.

Lendlease is trying to rebuild confidence after a difficult period, and that will take more than one completed transaction.

The company has been selling assets, recycling capital and trying to simplify the business. Those steps should help, especially if they give management more room to reduce debt.

However, investors will still want to see whether these moves lead to a stronger balance sheet and a cleaner business over time.

Can the recovery continue?

That is the harder question after such a big fall this year.

Lendlease shares have had a better month, and yesterday’s jump showed investors are willing to reward signs of progress.

However, the market isn’t going to get carried away just yet.

The company is still in repair mode. More asset sales should help, especially if they bring in cash, reduce debt, and make the business easier for investors to follow.

Lendlease needs to show that the turnaround is leaving the business in better shape, and fewer unwanted surprises for shareholders.

The post Lendlease shares slide after yesterday’s big jump. Is this ASX 300 stock running out of steam? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Lendlease shares jump 6% after $525 million deal. Is the worst over?
• Why A2 Milk, EchoIQ, Lendlease, and Qantas shares are racing higher today
• Lendlease offloads Keyton stake in $525m deal
• Lendlease Group shares paused pending further announcement

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.