Once a week, I like to look at ASIC’s short position report to find out which ASX shares are being targeted by short sellers.

That’s because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top ten most shorted ASX shares

• Lotus Resources Ltd (ASX: LOT) continues its run as Australia’s most shorted share with short interest of 22.8%. The ASX uranium developer suspended its shares last month while it prepares an update on its Kayelekera Project. Lotus shares are due to return to trade on 16 July.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease again to 13.9%. Short sellers are betting heavily against the pizza chain operator’s turnaround plans.
• DroneShield Ltd (ASX: DRO) has short interest of 11.9%, which is down slightly since last week. Short sellers have been targeting the counter-drone technology company after it revealed an ASIC investigation into some announcements and insider share sales.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 11.9%, which is down slightly since last week. This radiopharmaceuticals company has seen its short interest ease since announcing the successful outcome of a Type B meeting with the US FDA.
• Boss Energy Ltd (ASX: BOE) has short interest of 11.8%, which is down week on week again. There are concerns over this uranium miner’s production outlook. An update is due by the end of August.
• 4DMedical Ltd (ASX: 4DX) has seen its short interest rebound to 11.5%. This medical technology company’s shares trade on sky-high multiples. It appears that short sellers believe this valuation is excessive.
• Flight Centre Travel Group Ltd (ASX: FLT) has 11.4% of its shares held short, which is flat week on week. Short sellers may be expecting the travel agent giant’s near term performance to be negatively impacted by the Middle East conflict.
• Paladin Energy Ltd (ASX: PDN) has 11.4% of its shares held short, which is down week on week. Short sellers appear to be betting against the uranium bull market.
• CAR Group Limited (ASX: CAR) has short interest of 11.3%, which is down since last week. This may be due to fears that higher interest rates could slow the growth of the automotive market and listing volumes.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest ease to 10.9%. The wine giant, which owns the Penfolds brand, is facing tough trading conditions because of the cost of living crisis.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended CAR Group Ltd, Domino’s Pizza Enterprises, Flight Centre Travel Group, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Friday, the S&P/ASX 200 Index (ASX: XJO) had a strong session and charged higher. The benchmark index rose 0.5% to 8,806 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for a positive start to the week following a solid session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.5% higher. In the United States, the Dow Jones rose 0.3%, the S&P 500 climbed 0.4%, and the Nasdaq pushed 0.3% higher.

Oil prices ease

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices eased on Friday night. According to Bloomberg, the WTI crude oil price was down 0.95% to US$71.41 a barrel and the Brent crude oil price was down 0.4% to US$76.01 a barrel. This couldn’t stop oil prices from recording a decent weekly gain amid rising tensions in the Middle East.

Buy Mesoblast shares

Mesoblast Ltd (ASX: MSB) shares could be in the buy zone according to Bell Potter. This morning, the broker has essentially upgraded the biotechnology company’s shares to a buy rating (from speculative buy) with a $4.45 price target. This is almost double its current share price. It said: “MSB is expected to commence submission of the various modules of the Biological Licence Application for Rexlemestrocel-L in heart failure and commence recruitment of the adult study in GvHD (for Ryoncil). We expect MSB will also engage in preliminary discussions with distributors for Rexlemestrocel-L in the chronic lower back pain indication, ahead of the phase 3 readout in mid CY27. Investment thesis: TP $4.45 (unchanged) There are no changes to earnings and we retain our $4.45 target price and Buy rating. As MSB is generating strong revenue growth the Speculative risk rating is no longer warranted.”

Gold price falls

It could be a soft start to the week for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price softened on Friday night. According to CNBC, the gold futures price was down 0.65% to US$4,113.7 an ounce. Increased interest rate hike bets have been weighing on the precious metal.

Buy Aroa shares

Bell Potter also sees major upside in Aroa Biosurgery Ltd (ASX: ARX) shares at current levels. This morning, the broker has retained its buy rating and $1.09 price target on the biotechnology company’s shares. It commented: “Beyond the clinical readouts, 2H CY26 should bring further clarity on the reimbursement environment. Key watchpoints should include the final PFS and OPPS rules following CMS’s proposal to retain the current flat-rate methodology for CY27, while any revised DFU/VLU LCDs could further raise the evidence threshold and narrow the reimbursable product set.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.

CSL Ltd (ASX: CSL) shares finished last week on a disappointing note, falling 2% on Friday to close at $122.89.

The decline interrupted what had been an impressive recovery, with the ASX healthcare stock climbing 24% over the past month.

Even so, it’s important to keep that rally in perspective. CSL shares remain down around 29% year to date and have lost roughly half their value over the past 12 months.

So, is this just a short-lived bounce, or could the recovery have further to run?

Why are CSL shares recovering?

After one of the steepest sell-offs in the company’s history, investors appear to have concluded that much of the bad news is already reflected in the share price.

CSL spent decades earning a reputation as one of the ASX’s highest-quality businesses, consistently delivering earnings growth and rewarding long-term shareholders. Its leadership in plasma-derived therapies and strong global footprint made it a favourite among growth investors.

That narrative unravelled for CSL shares over the past year.

A series of earnings downgrades, leadership changes, and approximately US$5 billion in non-cash impairments related to the CSL Vifor acquisition severely damaged investor confidence and sent the shares tumbling.

However, bargain hunters have started returning as the valuation became increasingly difficult to ignore.

Competitive advantages remain

Importantly, the fundamentals of the business remain intact. CSL is still the world’s second-largest plasma-derived therapies company, operating in a highly regulated industry with significant barriers to entry.

Its global plasma collection network, manufacturing expertise, and long-standing customer relationships continue to provide competitive advantages that are difficult for rivals to replicate.

While earnings growth has slowed, the business is still expanding.

Management expects FY26 revenue of around US$15.2 billion and underlying net profit after tax and amortisation (NPATA) of approximately US$3.1 billion on a constant currency basis.

The biggest challenge for CSL shares remains its US immunoglobulin business within CSL Behring, where competitive pressures continue to weigh on margins and growth expectations.

What do the brokers think?

Broker sentiment has become more balanced as CSL shares recover, although opinions differ on just how much upside remains.

Morgans is among the more optimistic brokers. It has a buy recommendation and a price target of $147.59, implying meaningful upside from current levels.

Macquarie Group Ltd (ASX: MQG) is more cautious. The broker has a neutral rating and a $114 price target, citing uncertainty surrounding CSL’s core plasma and albumin businesses, as well as ongoing competitive pressures.

According to TradingView data, analyst sentiment remains mixed. Of the 18 analysts covering CSL, 10 have a hold recommendation, while the remaining eight rate the healthcare giant as either a buy or strong buy.

The consensus price target sits at $140.15, suggesting around 14% upside over the next 12 months.

Forecasts vary widely, however. The most bearish analyst expects CSL shares to fall to around $104.55, while the most bullish believes they could climb as high as $199.68.

The post Where could CSL shares go next? Here’s what brokers are predicting appeared first on The Motley Fool Australia.

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