On Monday, the S&P/ASX 200 Index (ASX: XJO) fought hard to finish in positive territory. The benchmark index edged higher to 8,808.5 points.

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

ASX 200 to fall

The Australian share market looks set for a subdued session on Tuesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower. In the United States, the Dow Jones dropped 0.25%, the S&P 500 fell 0.8%, and the Nasdaq tumbled 1.55%.

Magellan shares upgraded

Magellan Financial Group Ltd (ASX: MFG) shares have been upgraded by analysts at Morgans. According to the note, the broker has upgraded the fund manager’s shares to an accumulate rating with an $11.26 price target. It said: “With the recent pullback in the share price, we now have more upside (~13%) to our price target and move to an ACCUMULATE recommendation (from Hold).” 

Oil prices jump

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a strong session after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 9.2% to US$78.00 a barrel and the Brent crude oil price is up 9.5% to US$83.25 a barrel. Traders were bidding oil higher after US President Donald Trump reinstated a blockade on Iran.

Gold price sinks

It is likely to be a tough session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price sank overnight. According to CNBC, the gold futures price is down 2.55% to US$4,008.7 an ounce. Surging oil prices have increased interest rate hike expectations.

Buy Forrestania shares

The team at Bell Potter is bullish on Forrestania Resources Ltd (ASX: FRS) shares. This morning, the broker has retained its speculative buy rating with an improved price target of $1.25. Bell Potter was pleased with its acquisition of the Edna May Gold Hub for $300 million. It said: “This is a transformational transaction for FRS. The acquisition of a second permitted processing hub at Edna May, combined with the 3.2Mtpa Lake Johnston plant, establishes FRS as a dual-hub operator with targeted combined milling capacity of 6.1Mtpa by H1 CY27.”

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

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• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro 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.

There are plenty of options in the gold sector for investors to choose from. 

But one ASX gold stock that could have huge upside potential according to Bell Potter is named below.

ASX gold stock tipped to triple

The gold stock that Bell Potter is positive on is Forrestania Resources Ltd (ASX: FRS).

Bell Potter notes that the company has just signed a transformational deal with Ramelius Resources Ltd (ASX: RMS) for the Edna May Gold Hub. It commented:

FRS has entered into a binding agreement to acquire 100% of the Edna May Gold Hub from Ramelius Resources Limited (ASX: RMS, not rated) for total consideration of A$300m, comprising A$210m in cash and A$90m in FRS scrip (225m shares at A$0.40/sh) (Transaction). The Transaction is accompanied by a A$310m two-tranche equity raising at A$0.40/sh. 

Edna May comprises a 2.9Mtpa conventional CIL processing plant (C&M since April 2025), 945koz Au Mineral Resource Estimate (MRE), ~1,000km² of tenements including the Tampia and Symes satellite deposits, a 185-room accommodation village, airstrip, tailings storage facility and grid power connection. The Transaction is conditional on FRS shareholder approval, regulatory approvals (potentially ACCC), assignment of third-party agreements including the Evolution Mining SPA, and completion of the equity raising. Completion is targeted for September 2026.

‘Transformational transaction’

The broker believes this positions the gold stock to grow its production to 200,000 ounces per annum within 18 months. It explains:

This is a transformational transaction for FRS. The acquisition of a second permitted processing hub at Edna May, combined with the 3.2Mtpa Lake Johnston plant, establishes FRS as a dual-hub operator with targeted combined milling capacity of 6.1Mtpa by H1 CY27. On a pro-forma basis, FRS will have a MRE base of approximately 2.7Moz (incl. Dulcie, ZNC), and a contiguous tenure position spanning the Southern Cross, Forrestania, Westonia and Eastern Goldfields regions. 

The enlarged entity has a credible pathway to steady-state production of >200kozpa across both hubs within 12-18 months, assuming successful commissioning and ramp-up at both plants. FRS will hold pro-forma cash of A$132m and a proposed A$100m debt facility to sufficiently fund the ramp-up period across both hubs.

Big potential returns

According to the note, Bell Potter has retained its speculative buy rating with an improved price target of $1.25. 

Based on its current share price of 38 cents, this implies potential upside of approximately 230%.

Commenting on its investment thesis, Bell Potter said:

The Transaction consideration implies an EV/Resource multiple of approximately A$317/oz based on the 945koz Edna May MRE (or A$100/t installed milling capacity). Adjusting for the ~A$300m replacement value of the existing plant and infrastructure (per FRS), the implied acquisition cost of the resource ounces is effectively negligible on a look-through basis, in our view. Incorporating the Edna May transaction, dualhub production profile, and revised cost and CAPEX assumptions, we raise our Valuation to $1.25/sh and maintain our Speculative Buy recommendation.

The post This ASX gold stock could rocket 200%+ after ‘transformational’ deal appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• $650 million in cash and gold, guidance hit: Why this ASX 200 stock is still falling
• Ramelius Resources achieves FY26 guidance, grows cash flow and completes Edna May sale
• This ASX gold stock could soar 60% thanks to a big announcement
• 6 ASX gold stocks Morgans rates as a buy

Motley Fool contributor James Mickleboro 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.

Warren Buffett has been one of the world’s greatest investors over the last several decades, helping Berkshire Hathaway (NYSE: BRK.B) become of the largest businesses in the world. Would such a great investor be interested in CSL Ltd (ASX: CSL) shares today?

Berkshire Hathaway has invested in a variety of industries over the years, including railroads, banks, Apple (NASDAQ: AAPL), insurance, oil and gas, soft drink, and so on. There’s nothing to say that Berkshire Hathaway wouldn’t be open to buying shares in a biotech company.

Let’s look at what Warren Buffett might think of CSL shares.

Is CSL a wonderful company?

There have been few businesses on the ASX that have expanded as much internationally as CSL over the last 20 years. It has been a great Australian success story.

However, the CSL share price has suffered a big decline in the past year, falling by around 50%. The market doesn’t seem to think as much of the business as before.

Are the current difficult conditions CSL is facing temporary or is this now a permanent, lower growth environment for the company? You’d need a crystal ball to truly know the answer to that question.

But, when it comes to market confidence, Warren Buffett has said some potentially very useful advice in the past. For example, he has said generally about markets:

Be fearful when others are greedy, and greedy when others are fearful.

By that logic, investors may have been too fearful about the CSL share price earlier this year. But the CSL share price has risen by around 33% since the 2026 low in June – it’s not as cheap as it was, even though it has fallen heavily over the longer term.

Warren Buffett has also suggested that it’s better to buy a wonderful company at a fair price than a fair company at a wonderful price.

Before 2025, I think most investors would have been happy to describe CSL as a wonderful company with its ability to grow its core business, create new products with research and development (R&D), and deliver rising profit.

Is CSL still a wonderful company? The market doesn’t seem convinced.

Warren Buffett’s Circle of competence

For me, what could be the deciding factor in whether Warren Buffett would buy CSL shares is what he likes to call a circle of competence.

In other words, he only invests in businesses that he understands. That’s why he famously avoided various technology businesses over the years. It’s important to understand the potential gains, the competitive pressures and risks.

I think that same investment thought process would mean Buffett would be hesitant to invest in CSL – biotechnology is a difficult industry to understand, and it may be challenging to get to grips with how the research and development (R&D) pipeline could play out and what the financial rewards could be. Therefore, there are other ASX shares that I think Warren Buffett would be more interested in.

The post Would Warren Buffett buy CSL shares? appeared first on The Motley Fool Australia.

More reading

• CSL shares are up 35% since early June. Is the recovery here to stay?
• Where could CSL shares go next? Here’s what brokers are predicting
• How to go from zero to $50,000 with ASX shares
• 3 ASX blue-chip shares that could be strong long-term value plays
• Up 36%: Can CSL shares keep rebounding?

Motley Fool contributor Tristan Harrison 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 Apple, Berkshire Hathaway, and CSL. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.