Author: openjargon

Shares in ASX small cap FleetPartners Group (ASX: FPR) have risen 6% at the time of writing after the company reported its half-year results, with investors encouraged by steady earnings growth, strong cash generation, and continued capital returns.

What did FleetPartners report?

For the six months to 31 March 2026, revenue rose 4% to $392.5 million, while statutory net profit after tax (NPAT) increased 7% to $37.1 million.

Earnings per share (EPS) also saw a strong lift, up 14% to 17.3 cents per share. On an underlying basis, net profit after tax excluding amortisation (NPATA) came in at $39.6 million, up 2% on the prior year.

Whilst the results may look underwhelming at first glance, they highlight the strength of FleetPartners’ business model, which is built on recurring, lease-based income. Growth in the company’s lease portfolio continued to underpin earnings, generating stable cash flows despite softer end-of-lease income during the period.

The acquisition of salary packaging provider Remunerator also contributed to performance, strengthening the group’s position in the growing novated leasing market. Demand in this segment remains solid, particularly as electric vehicle incentives continue to drive uptake.

Management noted that while new business volumes were broadly flat, momentum improved toward the end of the half, with April pipeline activity reaching its highest level in 12 months.

FleetPartners continues to stand out for its cash generation and disciplined capital management. The company declared a fully-franked interim dividend of 11.9 cents per share, consistent with its target payout ratio of 60% to 70% of NPATA.

This sits alongside an ongoing share buyback program, reflecting confidence in both the balance sheet and future earnings. Cash conversion remained strong, highlighting the quality of earnings and the capital-light nature of the model.

The balance sheet also remains robust, with ample liquidity and diversified funding sources supporting future growth.

Outlook remains steady

Looking ahead, FleetPartners expects modest growth in new business writings through FY26, with margins remaining broadly stable. While macroeconomic conditions remain mixed, the company’s limited exposure to fuel price volatility and its annuity-style income provide a degree of insulation.

Overall, the result reinforces FleetPartners’ position as a resilient, cash-generative business, and these could be key factors behind the positive market reaction.

The post FleetPartners shares surge 6% on half-year results appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya has no positions 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.

Light & Wonder Inc (ASX: LNW), Tabcorp Holdings Ltd (ASX: TAH), and Amcor PLC (ASX: AMC) shares are turning heads today.

At the time of writing, two of the big-name S&P/ASX 200 Index (ASX: XJO) shares are underperforming the 0.9% gains posted by the benchmark index, while one is racing ahead of those gains.

Here’s what’s grabbing investor interest.

Amcor shares lift on sales growth

Amcor shares are outperforming today, up 4.5% at $55.05 apiece.

This follows the release of the global packaging giant’s March quarter results (Q3 FY 2026).

The ASX 200 stock said it realised acquisition synergies of US$77 million during the quarter, now that its acquisition of Berry Global is complete.

“Third quarter results were in line with expectations and reflect the resilience of our business as we mark the first anniversary of bringing legacy Amcor and Berry together as One Amcor,” CEO Peter Konieczny said.

Highlights from the quarter included a 77% year-on-year increase in net sales to US$5.91 billion.

And adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$892 million were up 87% from Q3 FY 2025.

On the passive income front, the company, which pays quarterly dividends, delivered a record payout of 91 Aussie cents per Amcor share, unfranked.

Light & Wonder shares sink on Q1 update

Unlike Amcor shares, Light & Wonder shares are taking a beating today.

Shares in the ASX 200 gaming company are down 8.9% at the time of writing, changing hands for $102.04 apiece.

Investors are favouring their sell buttons following the release of Light & Wonder’s first-quarter results (Q1 2026).

On the positive side of the ledger, quarterly revenue of US$790 million was up 2% year on year. And adjusted EBITDA of US$327 million was up 5%.

However, statutory net income of US$52 million was down 37% from Q1 2025. Management pointed to some US$50 million in provisions tied to past legal matters for much of that decline.

Tabcorp shares crash on AUSTRAC investigation

Joining Light & Wonder and Amcor shares in making waves today, Tabcorp is grabbing attention for all the wrong reasons.

Shares in the ASX 200 gambling company are down a sharp 20.7% at the time of writing, trading for 91.2 cents apiece.

In a market release this morning, Tabcorp reported that AUSTRAC has “a number of serious concerns” regarding the company’s ability to effectively identify, mitigate, and manage its money laundering and terrorism financing risks.

AUSTRAC has now commenced an enforcement investigation.

Commenting on the investigation that’s hammering Tabcorp shares today, CEO Gillon McLachlan said:

I am committed to leading a compliant and safe company that understands its risk obligations. Uplifting our risk capability has been an ongoing part of the company’s transformation and we will work constructively with AUSTRAC through this process.

The post Why Tabcorp, Light & Wonder and Amcor shares are making waves on Thursday appeared first on The Motley Fool Australia.

More reading

• Why Light & Wonder, Super Retail, Tabcorp, and Woodside shares are falling today
• Tabcorp shares crash 25% as watchdog probe hits
• Why are Amcor shares surging higher today?
• Why are Light & Wonder shares sinking 11% today?
• Tabcorp faces AUSTRAC compliance probe

Motley Fool contributor Bernd Struben 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 Light & Wonder Inc. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BWP Group (ASX: BWP) shares are back trading on Thursday after the property group completed the institutional part of its capital raising.

The BWP share price is down 1.52% to $3.88 at the time of writing.

That means the stock has given back some ground after its trading halt, although it remains up around 7% over the past month.

BWP is best known as a major landlord to Bunnings. It owns and manages a portfolio of retail warehouse properties across Australia.

The latest update follows Wednesday’s announcement that BWP was raising about $228 million through a fully underwritten entitlement offer.

Here’s what investors are looking at today.

Institutional offer completed

BWP said it has successfully completed the institutional component of its fully underwritten 1-for-12 accelerated non-renounceable pro rata entitlement offer.

The offer was priced at $3.77 per new security.

That was below the last traded price of $3.94 before BWP entered its trading halt on Wednesday.

According to the release, the institutional offer received strong support from eligible institutional securityholders, with a take-up rate of about 98%.

BWP said the institutional component raised gross proceeds of around $122 million, which included Wesfarmers Ltd (ASX: WES) taking up its full entitlement of about $53 million.

Wesfarmers remains BWP’s largest securityholder, holding a 23.4% stake.

BWP also said the shortfall attracted demand from both existing and new institutional investors.

Around 32 million new securities will be issued under the institutional offer at the $3.77 issue price.

Retail offer comes next

While the institutional component has been completed, the raising is not finished yet.

BWP said the retail entitlement offer is expected to raise about $106 million.

Eligible retail securityholders will be able to apply for 1 new security for every 12 existing BWP securities held at the record date.

The retail offer will be priced at the same $3.77 per new security as the institutional offer.

The retail offer is expected to open on Tuesday, 12 May, and close on Friday, 22 May.

New securities issued under the institutional component are expected to begin trading on Monday, 18 May.

Foolish takeaway

The institutional result looks good, and it gives BWP a strong start to the raising.

But investors now have the $3.77 offer price sitting in front of them.

This can make it harder for the share price to push much higher in the short-term, even with the stock still trading slightly above that level.

I’d be more inclined to watch what BWP does with the money from here.

The project pipeline gives BWP room to grow, but investors will want to see that reflected in valuations, rental income, or earnings.

The post Why BWP shares are back in the red today appeared first on The Motley Fool Australia.

More reading

• BWP Group announces successful entitlement offer
• Why this Bunnings landlord is frozen on the ASX today
• BWP Group launches $228 million entitlement offer

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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and is charging higher. At the time of writing, the benchmark index is up 0.9% to 8,875.3 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Light & Wonder Inc (ASX: LNW)

The Light & Wonder share price is down 9% to $101.82. Investors have been selling the gaming technology company’s shares following the release of a mixed quarterly update. Light & Wonder reported a 2% increase in revenue to US$790 million for the quarter. In addition, consolidated adjusted EBITDA rose 5% to US$327 million. However, on a reported basis, net income fell 37% to US$52 million. This is largely due to approximately US$50 million in legal reserve contingencies associated with legacy legal matters.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price is down 3.5% to $11.27. This follows the release of a trading update from the retailer. Super Retail revealed that group like-for-like sales are currently up 0.4% during the second half. It also warned that it is being impacted by higher fuel prices and rising interest rates. It said: “Sales momentum across all four brands was adversely affected by the onset of the Middle East conflict. Inflationary pressures, including higher fuel prices and rising interest rates, together with concerns around fuel availability weighed on consumer sentiment, with the impact most pronounced over the key Easter trading period.”

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price is down 20% to 91.7 cents. This has been driven by news that the gambling company has become the subject of an AUSTRAC enforcement investigation. Tabcorp advised that this relates to anti-money laundering and counter-terrorism financing (AML/CTF) compliance. AUSTRAC has stated that the investigation is at an early stage and its approach will be determined once sufficient evidence has been collected and assessed. In response, Tabcorp’s CEO, Gillon McLachlan, said: “I am committed to leading a compliant and safe company that understands its risk obligations. Uplifting our risk capability has been an ongoing part of the Company’s transformation and we will work constructively with AUSTRAC through this process.”

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is down 4% to $30.52. Investors have been selling Woodside and other ASX energy shares today after the US and Iran appeared to make progress with peace talks. This led to oil prices tumbling deep into the red overnight.

The post Why Light & Wonder, Super Retail, Tabcorp, and Woodside shares are falling today appeared first on The Motley Fool Australia.

More reading

• Why Tabcorp, Light & Wonder and Amcor shares are making waves on Thursday
• Tabcorp shares crash 25% as watchdog probe hits
• Why are Light & Wonder shares sinking 11% today?
• Why are Super Retail shares crashing 13% today?
• Tabcorp faces AUSTRAC compliance probe

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc and Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

After months of selling pressure, this ASX financial stock is finally getting a lift.

Generation Development Group Ltd (ASX: GDG) shares are pushing higher on Thursday after the company released a new update to the market.

At the time of writing, the share price is up 5.28% to $3.79.

Although it has bounced from its low of $3.43, the bigger picture still looks rough. The stock remains down around 38% in 2026 and has been trending lower since October last year.

Let’s take a closer look at the release.

A $1.8 billion migration is now complete

Generation Development confirmed that the $1.8 billion Xplore Wealth client book migration has now been completed.

The migration moves Xplore Wealth managed discretionary account portfolios to Evidentia Group’s Implemented Portfolios private label MDA service on the HUB24 platform.

This lifts Implemented Portfolios’ total funds under management to more than $4 billion. Generation Development said the move reinforces its position as Australia’s largest independent MDA provider.

An MDA is a managed account structure where an investment manager makes portfolio decisions within an agreed strategy. This can make it easier for advisers to manage client portfolios without approving every individual transaction.

Funds are still flowing in

The March quarter update showed the group was still growing, even as the share price continued to slide.

Evidentia Group reported funds under management of $34.8 billion at 31 March, up 30% on the prior corresponding period. The division also recorded net inflows of $1.4 billion, including $0.3 billion in a quarter affected by market volatility.

Generation Life also had a strong quarter, with sales up 57% on the prior corresponding period to $375 million. Net inflows came in at $310 million, while funds under management increased 35% to $5.3 billion.

Lonsec also continued to grow its research business, with the number of products researched rising 8% to 1,960.

Foolish takeaway

The Xplore migration adds scale to Evidentia, while the March quarter numbers showed funds are still flowing into the broader group.

The numbers are moving in the right direction. But after a 38% fall this year, investors may want to see stronger evidence that growth is turning into profit.

That is the key point from here. A completed migration is positive, but the market will still want to see the added scale show up in earnings, margins, and cash flow.

Until that happens, I would be careful about reading too much into one completed migration.

The post Why investors are buying this beaten-down ASX financial stock today appeared first on The Motley Fool Australia.

More reading

• Generation Development Group completes $1.8bn client migration
• Here are the top 10 ASX 200 shares today
• These ASX 200 shares could rise 25% to 70%
• Generation Development Group reports cyber incident
• Brokers name 3 ASX shares to buy right now

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 recommended Generation Development Group. 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) gold stocks, including Evolution Mining Ltd (ASX: EVN), Newmont Corp (ASX: NEM), and Northern Star Resources Ltd (ASX: NST) shares are charging higher today.

In late morning trade on Thursday, Evolution Mining shares are up 3.8% at $12.79; Newmont shares are up 2.5% at $159.67, and Northern Star shares are up 2.2% at $21.25 apiece.

For some context, the ASX 200 is up 0.7%.

And, as witnessed by the 3.5% intraday gains posted by the S&P/ASX All Ordinaries Gold Index (ASX: XGD), it’s not just Evolution, Newmont, and Northern Star shares that have their shine back today.

Here’s how these other top ASX 200 gold stocks are tracking at this same time:

• Ramelius Resources Ltd (ASX: RMS) shares are up 5.0% at $3.59
• Bellevue Gold Ltd (ASX: BGL) shares are up 2.7% at $1.60
• Genesis Minerals Ltd (ASX: GMD) shares are up 4.2% at $6.15
• Perseus Mining Ltd (ASX: PRU) shares are up 2.4% at $5.56
• Vault Minerals Ltd (ASX: VAU) shares are up 5.1% at $4.68
• Westgold Resources Ltd (ASX: WGX) shares are up 5.0% at $5.72
• Ora Banda Mining Ltd (ASX: OBM) shares are up 4.1% at $1.33

So, why are the big Aussie gold miners back to outperforming today?

ASX 200 gold stocks jump on Iran peace talk hopes

While each company has its own unique strengths and challenges, the common thread lifting all the above ASX 200 gold stocks looks to be renewed hopes of a peace deal between the United States and Iran.

Overnight news reports indicate that Iran is currently reviewing the latest proposal from the US in an effort to end the conflict.

The gold price jumped more than 3.5% on that news to top US$4,700 per ounce. The yellow metal has retraced a touch since then, trading for US$4,694 per ounce at the time of writing, according to data from Bloomberg.

Despite its haven appeal, gold – and by connection ASX 200 gold stocks – came under heavy selling pressure following the outbreak of the Middle East conflict. Indeed, on 27 February, bullion was fetching US$5,279 per ounce.

One of the biggest headwinds facing gold following the outbreak of the war has been the global surge in energy prices.

Why is that of particular importance to the gold price?

Well, as the RBA reminded investors this week, rocketing energy costs are in turn stoking inflation and leading to rising interest rates. And gold, which pays no yield itself, tends to perform better in a low or falling rate environment.

The post How ASX 200 gold stocks like Newmont, Evolution Mining and Northern Star shares have their shine back today appeared first on The Motley Fool Australia.

More reading

• Are Regis Resources shares a buy amid its mega gold merger with Vault Minerals
• 5 things to watch on the ASX 200 on Thursday
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• This ASX 200 gold stock rose 10% yesterday: Is it a buy, hold or sell?

Motley Fool contributor Bernd Struben 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.

The team at Morgans has been looking at a number of updates this week.

Let’s see if the broker has responded positively or negatively to them. Here’s what you need to know:

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans was surprised to see this travel agent giant reaffirm its earnings guidance given the disruption caused by the Middle East conflict.

However, with the leisure business struggling, the broker has concerns that its FY 2027 performance could be impacted.

Nevertheless, it has retained its buy rating on Flight Centre shares with a reduced price target of $14.55. It said:

Surprisingly, FLT has maintained its FY26 earnings guidance. It noted that the conflict is creating near-term uncertainty and temporarily disrupting international travel patterns. It is having a more significant impact on Leisure (April profit was down ~A$10m on the pcp). While the reiteration of guidance was better than feared, our concern is that following its key trading period (May-June), FLT will likely need to revise guidance as we expect leisure demand will remain weak. If it wasn’t for this conflict, FLT would have had a great year given its results for the first nine months were strong.

We have made material revisions to our forecasts and now sit well below guidance. We assume that the conflict and a subdued consumer environment continue to impact the 1H27. We are buyers of FLT post the earnings downgrade given the company is worth materially more than the current share price. We know from past economic and geopolitical events, that after a downturn, travel demand rebounds.

Sigma Healthcare Ltd (ASX: SIG)

Morgans was pleased with a trading update from Chemist Warehouse owner Sigma Healthcare this month.

However, due to recent share price strength, the broker has downgraded Sigma shares to an accumulate rating with a trimmed price target of $3.30. It commented:

SIG has provided a solid trading update to 30 April (domestic) and to 31 March (international), noting continuing GLP-1s tailwinds. SIG continues its international expansion with entry into the UK market and expanding distribution capacity in New Zealand. We have made minor upgrades to forecasts however a higher risk-free rate sees our valuation reduce modestly to A$3.30 (was $3.36). Recent share price strength sees us move to an ACCUMULATE (from BUY) recommendation.

Westpac Banking Corp (ASX: WBC)

Finally, in response to this banking giant’s results, Morgans has reduced its earnings and dividend estimates.

However, it has lifted its recommendation from sell to trim with a price target of $33.07. It said:

Strong volume momentum but earnings leverage dissipated with margin compression and credit risk pressures. FY27-28F EPS/DPS downgraded 4-5% on 2% lower revenue and 1% higher cost base. FY28F EPS/DPS unchanged. Target price down c.3% to $33.07. We moderate from SELL to TRIM, given potential TSR of c.-8% at current prices.

The post What is Morgans saying about Flight Centre, Sigma, and Westpac shares? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
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• 3 key takeaways from Westpac’s half-year results

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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Austral Resources Australia Ltd (ASX: AR1) recently reported initial drilling results from its Snow Queen prospect, and the copper grades reported have one broker sitting up and taking notice.

The team at Shaw and Partners had a look at the drilling results announced this week and has maintained their buy recommendation and a very bullish share price, which we’ll get to later.

First, let’s look at what was announced earlier this week by the company.

Exceptional copper grades

Austral said the first drill hole at Snow Queen hit 10m of copper mineralisation at a grade of 7.52% from a depth of 35m, including 4m at 15.9%.

The Snow Queen prospect is also only 60km from the company’s Rockland processing facility, the company said.

Austral Chief Operating Officer Shane O’Connell said regarding the result:

This result is a clear demonstration of Austral’s ability to generate and drill high-quality copper targets within our tenure. Snow Queen sits within a broader portfolio of satellite opportunities that underpin our strategy of building regional scale around the Rocklands Processing Facility. As an established copper producer, Austral is focused not only on discovery but on converting these opportunities into mineable inventory that can be efficiently integrated into our existing production and processing infrastructure. This producer mindset ensures that exploration success is aligned with practical development pathways and near-term value realisation.

Mr O’Connell said the company saw significant value in testing these targets, “with the aim of identifying additional sources of copper mineralisation that could complement and sustain our current operations”.

Australia said Snow Queen was just one of 35 historical copper workings it was aiming to drill test over the next 12 to 18 months.  

Shares looking cheap

The analyst team at Shaw and Partners said the Snow Queen result was an encouraging start to a broader regional exploration program.

They said regarding the Snow Queen result:

This is genuinely high grade in a global context where there have been no major, tier one, copper discoveries in the past decade. Although just one hole, the result validates the targeting model and gives AR1 good reason to continue drilling. A follow-up hole has already been completed with assays pending in the next 2-4 weeks.

The Shaw team said the infrastructure pathway to production would be straightforward given the prospect’s proximity to production facilities.

The Shaw team added:

Austral Resources is building one of Australia’s most compelling copper growth stories against a backdrop of strong copper demand and increasingly tight supply.

Shaw has a price target of 42 cents for Austral shares, compared with 9.8 cents currently.

Austral is currently valued at $227.1 million.

The post One broker is tipping this ASX copper explorer to jump more than 300% appeared first on The Motley Fool Australia.

More reading

• How ASX 200 gold stocks like Newmont, Evolution Mining and Northern Star shares have their shine back today
• What is Morgans saying about Flight Centre, Sigma, and Westpac shares?
• Is this ASX industrials stock a buy, hold or sell after soaring 6% yesterday?
• How to become a millionaire with ASX shares starting with $0
• How much passive income could I make with $10,000 in Qantas 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 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.

ASX industrials stock McMillan Shakespeare Ltd (ASX: MMS) shot higher yesterday, rising more than 6% during Wednesday’s trading session. 

This was despite no price-sensitive news out of the company. 

Company overview

McMillan Shakespeare is a leading provider of employee benefits, end-to-end fleet management, and disability support services with under 400,000 salary packages and 80,000 novated leases under management. 

The company operates a vertically integrated model by offering standalone and complementary products for administration, vehicle sourcing and life-cycle management, finance procurement, and the sale of secondary consumables.

The employer customer base sees healthcare, government, education, not-for-profit, and corporate sector clients.

This ASX industrials stock has experienced some volatility in 2026, and is ultimately up just over 2% in that span. 

For comparison, the S&P/ASX 200 Industrials Index (ASX: XNJ) is down over 2% in that same period. 

A new report from Bell Potter suggests that yesterday’s spike could be a sign of what’s to come for this ASX industrials stock. 

Here’s what the broker had to say. 

Solid growth 

In a recent report, Bell Potter noted that the ASX industrials company has reported stronger-than-expected momentum in novated leasing, with new vehicle lease growth rising 7% in 3Q26 despite difficult prior-year comparisons. 

Bell Potter noted improving sales momentum, continued customer wins, and increasing adoption of electric vehicles (EVs), with trading conditions expected to strengthen further as government policy uncertainty eases.

The broker believes earnings growth guidance is now lower risk, supported by customer growth and operational efficiencies. The continuation of favourable Fringe Benefits Tax (FBT) exemption settings for EVs is also expected to support demand.

Non-electric vehicle volumes performed better in relative terms, while electric vehicle volumes correlated with data. Given the mix shift, initial revised policy targets should support ongoing demand.

Based on this guidance, earnings per share (EPS) has been increased +0%/+2%/+3% over the next 3 years, reflecting higher novated volumes. 

Buy recommendation unchanged

Based on this guidance, the team at Bell Potter has retained their buy recommendation on this ASX industrial stock. 

It also increased its price target to $19.90 (previously $18.50). 

From yesterday’s closing price of $17.65, this indicates an upside potential of approximately 13% for this ASX industrials stock. 

The earnings multiple remains undemanding, with positive developments now in place and key uncertainties resolved. No colour on Oly was offered. However, the addressable customer base continues to grow. Further details on broadening demand, and increasing automation, would be another catalyst for the share price.

The post Is this ASX industrials stock a buy, hold or sell after soaring 6% yesterday? appeared first on The Motley Fool Australia.

More reading

• How ASX 200 gold stocks like Newmont, Evolution Mining and Northern Star shares have their shine back today
• What is Morgans saying about Flight Centre, Sigma, and Westpac shares?
• One broker is tipping this ASX copper explorer to jump more than 300%
• How to become a millionaire with ASX shares starting with $0
• How much passive income could I make with $10,000 in Qantas shares?

Motley Fool contributor Aaron Bell 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 recommended McMillan Shakespeare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Starting with $0 does not mean the end goal has to stay small.

In fact, I think one of the most encouraging things about investing is that the starting balance is only one part of the story. The bigger drivers are the amount added over time, the return earned, and how long the money is left to compound.

That is where ASX shares can be powerful.

Start with the first $100

If I were starting from scratch, I would not focus too much on the $1 million target at first.

I would focus on the first $100 invested.

Then the first $1,000.

Then the first $10,000.

That might sound too simple, but I think this is how most real wealth is built. Not through one dramatic decision, but through repeated small ones.

The first stage is about getting money into the market and building the habit. A diversified ASX exchange-traded fund (ETF) like the iShares S&P 500 AUD ETF (ASX: IVV), a broad global ETF like the Betashares Global Quality Leaders ETF (ASX: QLTY), or a handful of quality ASX shares could all play a role.

The key is to avoid waiting for the perfect moment.

Let the portfolio do more of the work

The early years can feel slow because most of the progress comes from contributions.

But over time, the balance starts doing more of the heavy lifting.

For example, an investor putting in $1,000 a month would contribute $12,000 in the first year. At that stage, the investment returns may not look life-changing.

But once the portfolio reaches $200,000, a 9% return would represent $18,000 in a year. At $500,000, the same return would represent $45,000.

That is when compounding starts to feel very different.

Of course, a 9% annual return is not guaranteed. Some years will be negative, and some will be much stronger. But as a long-term assumption, I think it shows why time in the market matters so much.

The millionaire maths

Here is what the path could look like from a $0 starting point, assuming a 9% average annual return.

Investing $500 a month could reach $1 million in about 32 years.

Investing $750 a month could reach $1 million in about 27 and a half years.

Investing $1,000 a month could reach $1 million in about 24 and a half years.

Investing $1,500 a month could reach $1 million in about 20 and a half years.

The lesson I take from this is not that everyone needs to invest a huge amount from day one.

It is that every increase in the monthly investment can bring the target closer. Even small raises, bonuses, or reduced expenses can help if they are redirected into the portfolio.

Foolish takeaway

Starting with $0 can feel like a disadvantage, but it also gives investors the chance to build good habits from the beginning.

The aim is not to become a millionaire overnight. It is to create a system that keeps buying productive assets month after month.

If the portfolio earns an average return of 9% per annum over the long run, regular investing could do much of the hard work.

That is why I think the most important step is simply getting started, then giving compounding enough time to surprise you.

The post How to become a millionaire with ASX shares starting with $0 appeared first on The Motley Fool Australia.

More reading

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• Where to invest $10,000 in ASX ETFs in May
• 3 ASX ETFs I’d buy for a retirement portfolio
• Want to fast-track retirement? These ASX ETFs could get you there
• All-weather ASX ETFs to buy if the market crashes 20%

Motley Fool contributor Grace Alvino 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 iShares S&P 500 ETF. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.