Author: openjargon

If you’re starting out in the ASX share market, complexity is often the biggest enemy. Many beginners assume a strong portfolio needs a long list of stocks. In reality, piling into too many similar companies can dilute your returns and make your portfolio harder to manage.

A more effective approach is to focus on a handful of high-quality ASX shares that each serve a clear purpose. By blending income, growth, and defensive characteristics, you can build a portfolio that is both simple and resilient.

APA Group (ASX: APA)

One company that fits the income role well is APA Group. This ASX share owns and operates critical energy assets including gas pipelines and electricity infrastructure. Because these assets are essential to the economy, the company benefits from stable and often regulated cash flows.

That reliability has supported consistent dividend payments over time. While it may not deliver rapid growth, APA can provide a steady income stream and act as a stabilising force when markets become volatile.

Wesfarmers Ltd (ASX: WES)

For growth combined with diversification, Wesfarmers stands out as a core portfolio holding. Its operations span multiple industries, including retail through well-known brands like Bunnings, Kmart, and Officeworks, as well as industrial and chemical businesses.

This mix gives Wesfarmers the ability to perform across different economic conditions. When consumer spending slows in one area, strength in another can help offset the impact. Over time, its disciplined management and strong balance sheet have made it one of the most reliable long-term performing ASX shares.

Transurban Group (ASX: TCL)

Rounding out the trio is Transurban Group, which provides exposure to infrastructure assets. Transurban owns and manages toll roads in Australia and overseas, generating revenue from millions of daily commuters. These assets often come with long-term concessions and built-in toll increases, meaning revenue can grow steadily over time.

Because demand for major roads tends to remain relatively consistent, this ASX share offers a defensive element alongside moderate growth potential.

Foolish Takeaway

What makes this combination of ASX shares effective is how each company complements the others. APA Group contributes dependable income, Wesfarmers delivers diversified growth, and Transurban adds infrastructure-backed stability. Together, they span different sectors of the economy, reducing reliance on any single source of earnings.

It’s also worth noting that chasing extremely high dividend yields can sometimes lead investors into riskier territory. Many of the safest and most established ASX companies offer more moderate yields but compensate with consistency and long-term growth. That balance is often more valuable than simply aiming for the highest payout.

The key takeaway is that building a strong portfolio doesn’t require complexity. By choosing a small number of quality businesses with distinct roles, you can create a foundation that’s easier to manage and better positioned for long-term success.

The post 3 top ASX shares to build a simple, balanced portfolio in 2026 appeared first on The Motley Fool Australia.

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• Transurban Group posts April traffic gains as West Gate Tunnel ramps up

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

The Wesfarmers Ltd (ASX: WES) share price is down 19% from its February peak, as the chart below shows. Experts have given their view on where the business valuation could go next.

Wesfarmers is a very impressive retail company with a number of leading businesses including Kmart, Bunnings, Officeworks, Priceline and Target.

Let’s take a look at where experts think the Wesfarmers share price could go from here.

Are capital gains likely?

No-one has a crystal ball to reveal what’s going to happen next.

But, some brokers/analysts issue price targets, suggesting where they think the share price will go over the next 12 months.

According to CMC Invest, of eight recent ratings on the business, the average price target is $76.93, which suggests a potential gain of 6% from where it is.

The most optimistic price target is $92.31, suggesting a possible rise of 27%. If it did rise that much, I imagine it would outperform the S&P/ASX 200 Index (ASX: XJO) quite convincingly.

Why could the Wesfarmers share price rise?

The business generates its earnings from a number of sources, but some of the main profit generators could see a step-up in earnings over the next couple of years.

For example, lithium prices have jumped in recent months, amid the significant volatility of fuel prices and availability, with electric vehicles and batteries looking a lot more appealing. This bodes well for Wesfarmers’ investment in lithium mining.

It’s true that interest rates and inflation are higher, which may impact household spending. However, Kmart and Bunnings famously aim to give customers great value, which could be very attractive for customers during this upcoming period. I’m expecting these businesses to gain market share over the next year, as they did during the 2022 to 2024 period of higher inflation.

When the company did announce its FY26 half-year result, it did indicate that its main businesses had achieved revenue growth in the early part of the FY26 second half. Ongoing growth is a pleasing sign.

I’m also a fan of the company’s WesCEF (chemicals, energy and fertilisers) business, which offers Wesfarmers the ability to grow earnings across a diversified array of sectors, with fertilisers being one area I’ve got my eyes on during this period.

According to the forecast on Commsec, the Wesfarmers share price is valued at under 29x FY26’s estimated earnings.

It’s not cheap, hence the relatively muted price targets, but I think it’s still a solid option for the long-term at the current Wesfarmers share price.

The post How much could the Wesfarmers share price rise in the next year? appeared first on The Motley Fool Australia.

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

The Nine Entertainment Co. Holdings Ltd (ASX: NEC) share price is in focus today as the company announced strong Q3 revenue growth and completed the acquisition of QMS Media, marking continued progress on its digital-first strategy.

What did Nine Entertainment report?

• Q3 FY26 Group revenue grew in the low single digits for Total Television, with audiences up 8% (Total People) and 10% (age 25–54) year-on-year.
• QMS Media’s Q3 revenue rose approximately 15% on the prior year, supported by key contract wins in Sydney and Auckland.
• Nine Publishing digital subscription revenue increased 15% in Q3, extending double-digit momentum into Q4.
• Stan achieved further strong EBITDA growth in the second half, sustaining positive momentum from H1.
• On a continuing basis, Total Television costs in FY26 are expected to fall by mid- to high single digits compared to FY25.
• The sale of Nine Radio completed on 30 April 2026; NBN and Nine Darwin restructures are expected by 30 June, pending approvals.

What else do investors need to know?

Nine’s strategic repositioning is gathering pace, with M&A activity expanding its digital and outdoor media footprint. The integration of QMS Media is expected to bring high-margin growth and diversify Nine’s revenue base, particularly through contract wins in metro areas.

Advertising market conditions remain challenging, especially moving into Q4, influenced by broader economic uncertainty and the absence of last year’s Federal election boost. However, Nine remains on track with cost discipline, targeting notable reductions in Total Television expenses despite inflation and continued investment in content and technology.

Nine Publishing is progressing with new commercial models, including licensing content for corporate AI applications. The company is also preparing for regulatory changes affecting digital content deals like the upcoming Government News Bargaining Incentive.

What did Nine Entertainment management say?

Chief Executive Officer Matt Stanton said:

Nine is successfully executing a strategic pivot toward a high-growth, digital-first portfolio, punctuated by the QMS Media acquisition and the sale of Nine Radio. While the broader advertising market faces a ‘short’ and uncertain Q4, core operational performance remains resilient. Total Television continues to deliver market-leading audience growth in key demographics, Stan is sustaining its strong EBITDA growth trajectory and Publishing is recording further double-digit digital subscription revenue gains alongside emerging AI licensing opportunities. By continuing to manage the cost base — now expecting FY26 Total TV costs to decline in the mid-to-high single digits — and integrating the high-margin revenue from QMS, Nine is balancing disciplined capital management with a clear strategy to drive long-term shareholder value through premium content and unique data.

What’s next for Nine Entertainment?

Nine will focus on fully integrating QMS Media and maximising the benefits of its enhanced digital, streaming, and outdoor media offerings. Management is optimistic about growing high-margin digital revenues and pursuing adjacent opportunities, including retail media and AI-powered content deals.

With its restructured portfolio leaning into growth engines like subscription streaming and premium digital publishing, Nine aims to deliver ongoing cost efficiencies and expand its cross-platform content reach. The outcome of regulatory processes and shareholder approvals in Q4 FY26 will also shape near-term strategic priorities.

Nine Entertainment share price snapshot

Over the past 12 months, Nine Entertainment shares have declined 36%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Nine Entertainment flags digital momentum, targets cost cuts after QMS Media deal appeared first on The Motley Fool Australia.

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• Magellan Financial Group slashes global fund fees, appoints new manager
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Motley Fool contributor Laura Stewart 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 Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

A2 Milk Company Ltd (ASX: A2M) shares started the week with a heavy decline.

On Monday, the infant formula company’s shares crashed 10% to $6.55 after announcing a product recall in the United States.

This latest decline means that its shares are now down almost 30% since the start of the year.

Let’s see if Bell Potter thinks this has created a buying opportunity for investors.

What is the broker saying?

Bell Potter suspects that contaminated ARA could be behind the product recall. It said:

A2M has initiated a voluntary recall of three batches of IMF products sold in the USA due to the presence of cereulide, with the probable source from an ingredient in the IMF supply chain. The ingredient hasn’t been named but we note contaminated ARA has been the product causing similar cereulide contamination recalls globally from competitor products and as such we suspect this is the likely culprit. The recall covers a small amount of volume and hence is not expected to have an impact on FY26e outcomes.

However, the broker does see risks that the news could impact its brand in the lucrative China market. It adds:

There is the risk that A2 as a brand in China could be associated with a contaminated product and that can have an impact on the perception of the brand in China, even if the recall is outside China and the recall volume is small. A formal announcement by GACC has been released, stating that the recalled product was only sold in the USA, which likely further brings attention to the event.

Bell Potter suspects that this could lead to a higher marketing investment to recapture lost customers. The broker said:

We note our forecasts were below consensus in FY27e, as we had expected the issues in 4Q26e COGS would drag into 1Q27e and had seen the potential for marketing investment to be front ended as A2M would need to recapture lost customers. There is the potential that brand investment will need to be lifted as A2M seeks to reassure Chinese customers over product safety.

Should you buy A2 Milk shares after the dip?

According to the note, Bell Potter has retained its hold rating on A2 Milk shares with a reduced price target of $6.75 (from $8.35). This compares to its current share price of $6.55.

Commenting on its recommendation, the broker said:

Our Hold rating is unchanged. Product recalls, even outside of China have the scope to impact brand perception. The timing of the recall is also less than ideal as A2M is already short product on ground in China and hence already needed to potentially invest to recapture customers that had switched to alternative suppliers.

The post Are A2 Milk shares a buy after the 10% selloff on Monday? appeared first on The Motley Fool Australia.

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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.

The Magellan Financial Group Ltd (AX: MFG) share price is in focus after announcing a major shake-up to its flagship global equities funds, including a new investment manager and reduced management fees.

What did Magellan Financial Group report?

• Change of investment manager for Magellan Global Fund and Magellan Global Fund Hedged to Vinva Investment Management Limited
• Global Equities Funds held approximately $5.3 billion in assets under management (AUM) at 30 April 2026
• Management fees cut from 1.35% to 0.89% per annum; performance fees removed
• Expected annual cost savings of about $7 million from reduced team size and administration costs
• Planned closure of the Magellan Global Equities Fund (Currency Hedged), which held $94 million in AUM

What else do investors need to know?

Magellan Asset Management Limited will continue as Responsible Entity and maintain responsibility for fund distribution. The strategy for the Magellan Global Opportunities funds remains unchanged, still overseen by Alan Pullen and Ryan Joyce.

These updates are the result of a comprehensive internal review aiming to better align Magellan’s products with clients’ evolving preferences and ongoing fee pressures in the industry. The move follows an existing partnership with Vinva, in which Magellan already owns a minority stake.

What did Magellan Financial Group management say?

CEO and Managing Director Sophia Rahmani said:

Today’s announcement reflects our commitment to putting clients first and our insight into client needs today and in the future. We have carefully considered this decision and are prioritising client outcomes whilst at the same time positioning Magellan for long-term growth, with an attractive core global equities offering.

The appointment of Vinva – a high-quality investment manager with a strong track record of long-term outperformance for clients – alongside the reduction in Fund fees, strengthens the competitiveness of our global equities offering.

Together, these changes position our investment management business for continued success as we evolve into a more diversified group. At the same time, the Global Opportunities strategy remains as a well-resourced and supported fundamental global equities solution for our clients.

What’s next for Magellan Financial Group?

The transition to Vinva as investment manager and the reduction in fund management fees are set for early June 2026, pending ASX approvals. Magellan expects some client outflows in the short to medium term but aims for long-term growth with this streamlined and more competitively priced offering.

Management is also working with clients in similar strategies to manage any impacts from the transition. The remainder of Magellan’s global funds suite continues unchanged, with a focus on supporting its core client base.

Magellan Financial Group share price snapshot

Over the past 12 months, Magellan shares have risen 34%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Magellan Financial Group slashes global fund fees, appoints new manager appeared first on The Motley Fool Australia.

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• Flight Centre Travel Group posts profit and TTV growth despite challenges

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Flight Centre Travel Group Ltd (ASX: FLT) share price is in focus after the company reported underlying profit before tax (UPBT) up 9.7% to $226.4 million and total transaction value (TTV) up 7.6% to $19.5 billion for the nine months to 31 March.

What did Flight Centre Travel Group report?

• Total transaction value (TTV) up 7.6% to $19.5 billion for the nine months to 31 March
• Underlying profit before tax (UPBT) up 9.7% to $226.4 million
• Corporate segment TTV up 4% and UPBT up 23% year to date
• Leisure segment TTV up 12% and UPBT up 2% year to date
• Interim dividend of 12 cents per share, fully franked, paid in April 2026
• $200 million share buyback program completed, with 16.2 million shares bought back (7.3% of shares on issue)

What else do investors need to know?

Flight Centre Travel Group continues to focus on efficiency, with costs now well below pre-pandemic levels and productivity up across the business. Its global corporate operations remain resilient, recording solid transaction and profit growth, while the leisure division achieved nine consecutive months of double-digit TTV growth across all categories.

The company is accelerating its investment in technology, expanding digital and AI capabilities to improve customer experience and consultant effectiveness. The new World360 Rewards loyalty program also launched, offering customers the ability to earn and redeem travel rewards across all major brands, supporting recurring revenue and customer retention.

What did Flight Centre Travel Group management say?

Chief Financial Officer said Adam Campbell said:

We’ve seen strong momentum in both our corporate and leisure businesses, despite a challenging travel environment. Our people have gone above and beyond for customers, and our focus on technology and efficiency continues to deliver returns.

What’s next for Flight Centre Travel Group?

Flight Centre has reiterated its full-year UPBT target of $315 million to $350 million but is closely monitoring the impact of global events—especially unrest in the Middle East—on near-term trading. While the leisure business saw an estimated $10 million profit hit in April from disrupted travel, the global corporate segment remains largely unaffected for now.

The company is maintaining strict cost control and boosting its market share with targeted promotions. It plans to leverage supplier relationships and is prepared for a rebound in demand as stability returns, supported by strong brands and a well-capitalised balance sheet.

Flight Centre Travel Group share price snapshot

Over the past 12 months, Flight Centre Travel Group shares have declined 21%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Flight Centre Travel Group posts profit and TTV growth despite challenges appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Westpac Banking Corp (ASX: WBC) share price is in focus today following the release of its 2026 half-year results, highlighting a statutory net profit of $3.4 billion, up 3% on the prior corresponding period, and an interim fully franked dividend of 77 cents per share.

What did Westpac report?

• Statutory net profit: $3.4 billion (up 3% vs 1H25, down 5% vs 2H25)
• Net profit excluding notable items: $3.5 billion (up 1% vs 1H25)
• Common equity tier 1 (CET1) capital ratio: 12.4%, above the 11.25% target
• Interim fully franked dividend: 77 cents per share
• Total lending and deposit growth: both up 7% year-on-year
• Return on equity (ROE): 9.6%

What else do investors need to know?

Westpac delivered solid results during a period of global uncertainty, with balance sheet growth supported by increases in both lending and deposits. The bank grew Australian mortgages 7% year-on-year (excluding RAMS) and reported a 16% jump in business lending, focusing on agriculture, health, and professional services.

Credit quality remains sound, with stressed exposures as a percentage of total committed exposures down to 1.16%. The bank’s prudent approach saw credit impairment provisions increase to $5.2 billion, with an overlay added for energy-intensive sectors. Cost management remains in focus, with expenses down from the prior half.

What did Westpac management say?

Chief Executive Officer Anthony Miller said:

Our strong balance sheet and disciplined focus will allow us to support customers through global uncertainty. Growth is solid across lending and deposits, with several highlights. We are managing costs while backing Australians through current challenges.

What’s next for Westpac?

Westpac remains cautious amid geopolitical and economic challenges, particularly ongoing conflict and its impact on energy prices. The bank says it is ready to work with government and industry to support business and households through uncertainty, including further investments in a sustainable energy system.

The UNITE transformation program is in its implementation phase, aimed at simplifying operations and supporting long-term growth. Westpac has reaffirmed its ambition to improve productivity, invest in technology including AI, and maintain its focus on regional Australia with continued branch support and growth in agribusiness lending.

Westpac share price snapshot

Over the past 12 months, Westpac shares have risen 19%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Westpac posts higher profit in 1H26 results appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The ASX dividend share space is where Australians can find some of the best options for passive income, in particular, companies with high dividend yields.

Ideally, I’d want to find dividend options that have a high starting dividend yield, and a good chance of maintaining their payout.

Of course, those businesses need to be able to sustainably grow their dividends too. I don’t think a high dividend yield is worth much if it’s very likely to be reduced soon. That’s a big reason why I’m highlighting the following ideas.

WAM Leaders Ltd (ASX: WLE)

WAM Leaders is a listed investment company (LIC) offered by Wilson Asset Management (WAM).

It mostly targets large ASX blue-chip shares to generate its returns, though it’s significantly more active than an exchange-traded fund (ETF) like the Vanguard Australian Shares Index ETF (ASX: VAS). It’s very willing to buy and sell shares in a position to take advantage when the market is being too pessimistic or optimistic.

At the end of March 2026, some of its largest positions included Telstra Group Ltd (ASX: TLS), Rio Tinto Ltd (ASX: RIO), Woodside Energy Group Ltd (ASX: WDS), Aristocrat Leisure Ltd (ASX: ALL), Wesfarmers Ltd (ASX: WES) and Nexgen Energy (Canada) CDI (ASX: NXG).

Between inception in May 2016 and March 2026, its portfolio produced an average return per year of 11.6%, outperforming its benchmark by an average of more than 2.5% per year, before fees, expenses and taxes.

The LIC’s board is expecting to pay an annual dividend per share of 9.6 cents in FY26. That translates into a grossed-up dividend yield of 10.4%, including franking credits. It has increased its annual dividend each year since FY17.

Hearts and Minds Investments Ltd (ASX: HM1)

Hearts & Minds is another LIC, though it operates quite differently.

It’s invested in a concentrated portfolio if between 25 to 35 global shares based on the best ideas from respected fund managers. There are no management fees involved, which allows it to donate to leading Australian medical research.

Some of its positions include TSMC, Zillow, Nvidia, Amazon and Brookdale Senior Living.

Due to how its portfolio is constructed, it has a diversified list of holdings that could perform over the longer-term and generate good investment returns over time.

In terms of the dividend, the business is looking to increase its payout by 0.5 cents per share every six months for the foreseeable future. That means the next two dividends are likely to be 20.5 cents per share. This translates into a grossed-up dividend yield of 10%, including franking credits.

The post 2 ASX shares with dividend yields above 8% appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Hearts And Minds Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Nvidia, Taiwan Semiconductor Manufacturing, Wesfarmers, and Zillow Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Amazon, Nvidia, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) has gained 6.6% over the past 12 months, but this ASX All Ords gold stock has left those gains far behind.

The outperforming Aussie miner in question is New Murchison Gold Ltd (ASX: NMG).

New Murchison shares closed on Monday trading for 4.9 cents apiece. If you were able to turn the calendar back one year to 5 May 2025, you could have picked up shares at market close for just 1.6 cents each.

That sees this ASX All Ords gold stock up a whopping 206.3% in 12 months. Or enough to turn an $8,000 investment into $24,500.

And according to the team at Taylor Collison, New Murchison is well-positioned to deliver further outperformance.

Here’s why.

ASX All Ords gold stock on the growth path

New Murchison reported its March quarter results on 28 April.

“We are very pleased to report on our second full quarter of production and to demonstrate continued strong operational performance,” New Murchison CEO Alex Passmore said.

He noted that over the quarter, the ASX All Ords gold stock consolidated its operations at its Crown Prince gold mine, located in Western Australia.

Over the three months, the miner generated $63.6 million in cash from sales of 173,174 tonnes of ore containing 16,660 ounces of gold.

Looking ahead, Passmore said:

Exploration of NMG’s tenement package accelerated with the initial focus on near-mine opportunities. Exploration is continuing to build a great foundation for NMG’s development pipeline throughout our highly prospective Murchison gold fields tenement package.

Why Taylor Collison is bullish on New Murchison Gold

Following New Murchison’s quarterly release, Taylor Collison said:

The A$63.6m quarterly build takes the balance sheet to A$155.6m, which we forecast to exceed A$200m by EOFY26. This removes equity dilution risk from any of the strategic pathways on the table

The broker noted that the ASX All Ords gold stock’s cash balance is impressive relative to its current market cap.

According to Taylor Collison:

With no debt, no hedging and a cash balance approaching ~$190m vs ~$530m market cap, we think NMG looks undervalued vs it peers as it is now a proven producer that has genuine optionality across UG development, regional satellite pits, a standalone processing solution, or value-accretive M&A, with the late-May resource update and June UG feasibility plan as near-term catalysts to firm up the first two pathways. We continue to view Crown Prince as a platform asset rather than a single-pit story…

Then there’s the potential of some passive income payouts down the road.

Taylor Collison added:

With NMG now paying tax and generating franking credits, capital return via a special dividend or formal dividend policy also emerges as a credible option should management elect to prioritise shareholder returns over reinvestment.

Connecting the dots, the broker reaffirmed its speculative buy rating on the ASX gold share with a price target of 6.8 cents a share.

That’s more than 38% above New Murchison Gold’s closing price on Monday.

The post Up 206% in a year, why this ASX All Ords gold stock is tipped to keep racing higher appeared first on The Motley Fool Australia.

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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.

Coles Group Ltd (ASX: COL) shares could be fully valued now.

That’s the view of analysts at Bell Potter, who have just downgraded the supermarket giant’s shares.

What is the broker saying?

Bell Potter has been looking at Coles’ third-quarter update. While it was pleased with the performance of its Food business, it was disappointed with its Liquor business. It said:

Supermarkets: Revenue growth of +4.0% YOY to $9,781m, compared to our $9,692m forecast (and VA of $9,770m). Growth in the early part of 4Q26e has continued at rates comparable to 3Q26 and this compares to the +3.7% YoY growth recorded in the first eight weeks of the quarter. Outperformance relative to the sector seen in 4Q25-1Q26 looks to be continuing, albeit at a slower rate than that of WOW. E-commerce sales grew +24.8% YoY, reaching 13.6% of sales.

Liquor revenue down -3.9% YoY at $781m (BPe $814m and VA $784m), with 13 net store closings in the period. E-commerce sales grew +1.8% YoY and accounted for 7.3% of sales. The category remains competitive.

This has led to the broker trimming its earnings estimates. It explains:

EPS changes -3% in FY27e and -2% in FY29e. Changes reflect softer liquor sales growth, modestly lower GM assumptions in supermarkets and higher base interest rates.

Coles shares downgraded

In response to the update, the broker has downgraded Coles shares to a hold rating (from buy) but with an improved price target of $22.80 (from $22.35). This is only a touch ahead of where its shares are trading at currently.

Bell Potter made the move largely on valuation grounds. However, it also notes that competition is increasing for its food business at a time when food inflation is rising.

And while Coles shares trade at a discount to Woolworths Group Ltd (ASX: WOW) shares, it sees better value opportunities elsewhere in the consumer staples space. It said:

We downgrade our rating from Buy to Hold. The shortfall between retail shelf price inflation and underlying food inflation in both WOW and COL has widened in the recent quarter. The competitive backdrop appears to be lifting and liquor remains challenged in a rising cost environment. Trading a discount to WOW, there is a relative value argument to be made, particularly given the more limited exposure to discretionary channels in the near term, however we see more compelling GARP opportunities elsewhere in the consumer staples space at this juncture.

The post Why Coles shares were just downgraded by Bell Potter appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woolworths Group. 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.