Author: openjargon

Plenty of ASX shares are in the process of releasing quarterly updates and results. 

After more reports and key announcements this week, the team at Morgans have provided fresh guidance on these ASX shares. 

Let’s see if Morgans sees these ASX shares as a buy, hold or sell. 

6K Additive Inc (ASX: 6KA)

6K Additive is a US-based manufacturer, upcycling metal scrap into premium metal powders and alloying additives.

Yesterday, the company released Quarterly Activities and Cash Flow Report. 

The team at Morgans said the company delivered a strong March quarter update, with revenue up 88% to US$6.2m. 

This implies an annualised run-rate of ~US$25m, up from ~US$22m in 4Q25, driven by solid demand from both new and existing customers. The run-rate is also ahead of our CY26 revenue forecast of US$22.8m, with the company capturing market share and improving operational metrics. B

oth the Powder (+100%) and Alloy (+70%) products divisions delivered strong revenue growth on the pcp, with a higher order backlog supporting sales momentum over coming months.

Based on this guidance, Morgans said it thinks the company is well positioned to benefit from strong demand in metal additive manufacturing and US initiatives to reshore critical minerals, supported by its fully domestic powder production which reduces reliance on foreign-controlled feedstock. 

The broker has retained its speculative buy rating and $1.30 price target on these ASX shares. 

This target is approximately 71% upside from today’s share price. 

Atlas Arteria Ltd (ASX: ALX)

This ASX company is a global owner, operator, and developer of toll roads. 

It received an unsolicited, off-market bid earlier this week from infrastructure investor IFM Investors.

This sent the stock price surging 14% higher on Monday. 

The team at Morgans said given IFM’s existing large (and growing) stake in ALX and the OTPP poison pill we believe it unlikely that a counter-bidder will emerge. 

Hence, our assessment is that risk at current prices is skewed to the downside ($4.22/share) rather than upside ($5.10/share). TRIM into current share price strength.

ALX shares are currently exchanging hands for $4.84. 

Imricor Medical Systems Inc (ASX: IMR)

Imricor is a medical device company, which engages in the design, manufacture, and distribution of magnetic resonance imaging (MRI) compatible products for cardiac catheter ablation procedures.

The company just released a 1Q26 cash flow report.

Morgans said while sales remain modest the underlying cash burn was higher than the previous quarter and expected to normalise around US$6m. 

During the quarter one-off costs related to the purchase of 40 generators which were part of an in-house transitioning process. Cash at the end of the quarter was US$32.9m, representing 5.5 quarters of underlying cash burn.

We have made no changes to forecasts. However, a higher risk-free rate (house view), sees our DCF valuation reduce to A$2.63 (was $2.71). We maintain our SPECULATIVE BUY recommendation with numerous catalysts approaching.

This indicates a 35% upside from today’s stock price of $1.94. 

The post Are these ASX shares a buy, hold or sell according to Morgans after key updates? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Atlas Arteria, Forrestania, Megaport, and WA1 shares are charging higher today
• Why the Atlas Arteria share price is rocketing 14% today
• Atlas Arteria receives a takeover offer
• This ASX dividend share could deliver a return of more than 25% Macquarie says

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 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.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to a number of broker notes being released this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

Life360 Inc. (ASX: 360)

According to a note out of the Macquarie equities desk, its analysts have initiated coverage on this location technology company’s shares with an outperform rating and $32.20 price target. The broker believes that recent share price weakness has created an asymmetrical risk profile for investors. It highlights that Life360’s shares are changing hands for only 23x estimated FY 2027 earnings. It thinks this is cheap for a company with such a strong revenue growth outlook, as well as operating leverage potential. The Life360 share price is trading at $20.31 on Wednesday afternoon.

Megaport Ltd (ASX: MP1)

A note out of Citi reveals its analysts have retained their buy rating on this network solutions company’s shares with an improved price target of $15.00. This follows the release of an update which revealed that Megaport’s Latitude business has won a significant contract. Megaport advised that it has secured a three-year compute and storage contract with a total value of approximately US$25.1 million (A$35.4 million). In response, the broker has upgraded its annual recurring revenue and EBITDA forecasts. And while it suspects that capital expenditure investment may have to increase, Citi isn’t concerned due to the attractive returns and payback profiles. The Megaport share price is fetching $9.05 at the time of writing.

Newmont Corporation (ASX: NEM)

Analysts at Ord Minnett have retained their buy rating and $205.00 price target on this gold miner’s shares. According to the note, the broker was impressed with Newmont’s performance during the first quarter. It notes that the company’s production came in ahead of expectations, which underpinned stronger than expected earnings and cash flow generation. The broker highlights that this has supported another increase in the gold miner’s share buyback program. In response, the team at Ord Minnett has lifted its earnings forecasts for FY 2026 to reflect the stronger than expected performance. The Newmont share price is trading at $154.06 on Wednesday.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 6 ASX 200 shares with strengthened buy ratings this week
• What I’d do with $15,000 in ASX 200 shares right now
• 3 ASX 200 shares just upgraded to strong buy — here’s what the brokers are saying
• These ASX 200 shares could rise 25% to 70%

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Life360 and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Macquarie Group, and Megaport. The Motley Fool Australia has positions in and has recommended Life360 and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

IGO Ltd (ASX: IGO) shares are under pressure again on Wednesday, adding to what has already been a rough stretch for the lithium and nickel producer.

At the time of writing, the IGO share price is down 1.49% to $7.38.

Over the past week, the stock has fallen close to 20%, including a steep 17.92% drop last Friday after a disappointing quarterly update.

Now, investors have another update to process.

CFO exits less than a month into the job

Before the market opened today, IGO confirmed that chief financial officer Johan van Vuuren has resigned, effective immediately.

That is a very quick turnaround, given he only stepped into the role on April 1.

According to the company, both parties agreed the position was not the right fit, with van Vuuren set to pursue other opportunities.

IGO said it has started arrangements for interim CFO cover and will begin the process of finding a permanent replacement.

There was no indication of broader changes to strategy or operations, though the timing stands out given what has just played out.

This comes straight after a weak quarter

The resignation lands just days after IGO’s March quarter result, which triggered a sharp sell-off.

The company reported group sales revenue of $120 million, up 45%, with underlying EBITDA of $119 million and free cash flow of $36 million.

While Nova delivered solid production and cash flow, the same could not be said across the rest of the portfolio.

At Nova, nickel production rose 11% to 4,202 tonnes and copper lifted 7% to 1,907 tonnes, helping drive $52 million in free cash flow for the quarter.

Greenbushes was a key weak spot. Production came in flat at 351,000 tonnes, while lower grades, recoveries, and maintenance issues weighed on performance.

Costs also moved higher, with unit costs rising about 20% to $446 per tonne.

At the same time, IGO cut its full-year production guidance for Greenbushes to between 1.375 million and 1.425 million tonnes.

Furthermore, management noted that the lithium downstream business at Kwinana continues to struggle. Production came in at 3,047 tonnes, with the plant running at just 51% of nameplate capacity.

What investors are focusing on now

This latest management change gives the market something else to weigh up.

On its own, a CFO exit does not always move the dial. But the timing, just weeks into the role and straight after a weak result, raises some serious questions.

Nonetheless, the bigger focus is still on operations.

Greenbushes needs to stabilise, and Kwinana needs to lift utilisation and improve cost performance.

Until that happens, it is hard to see investor sentiment shifting much.

The post CFO quits within weeks as this ASX 200 stock keeps sliding. What on earth is going on? appeared first on The Motley Fool Australia.

More reading

• 6 ASX 200 shares with strengthened buy ratings this week
• 2 ASX 200 shares Macquarie thinks will return nearly 30%
• Here are the top 10 ASX 200 shares today
• Why Brainchip, Fortescue, IGO, and Life360 shares are tumbling today
• IGO shares sink 14%. Here’s what just spooked investors?

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.

Ampol Ltd (ASX: ALD) shares have climbed another 1.85% in Wednesday afternoon trading to a two-year high of $34.90.

The uptick also means the Australian petroleum company’s shares are now 8.6% higher year to date and 50% higher than this time 12 months ago.

What is driving Ampol shares higher?

Ampol is the largest transport energy distributor and retailer in Australia, with more than 1,800 Ampol-branded service stations across the country as of June 2025. Its shares have rocketed higher on the back of conflict in the Middle East and concerns about global oil supply.

Ampol shares have jumped 24% higher since the war between the US and Iran ramped up in late February.

While news that the two nations could be reaching a peace deal temporarily dented Ampol’s share price earlier this month, failure to agree on terms and reopen the Strait of Hormuz to allow oil supplies to flow back through saw demand spike back up again.

As of late April, the two nations are in a temporary, but unstable, ceasefire. The Strait of Hormuz is partially open, but supply continues to be very constrained and unpredictable. 

While news that increased supply has helped cool the price of WTI crude oil, it is still significantly higher than earlier this year. Trading Economics data shows WTI crude oil is currently around US$100 per barrel, up from around US$60 per barrel seen in late February.

Prices for Brent oil, gasoline, and heating oil have also cooled, but remain much higher than before the conflict situation escalated.

And it’s not just fuel prices

Ampol shares have also been driven higher recently off the back of some good news announcements out of the company.

Last week, the Aussie fuel supplier said it has submitted a formal remedy offer with the Australian Competition and Consumer Commission (ACCC) about a proposed acquisition of fuel and convenience store operator EG Australia. Ampol revealed it is now offering 41 retail fuel sites for divestment, up from the previously proposed 37, in an effort to address competition concerns raised by the ACCC.

Also last week, Ampol posted its Q1 FY26 trading update, where it confirmed a 10% increase in refinery production, higher refiner margins, and increased production.

The company said it has locked in diesel and jet fuel supply through to the end of May, and gasoline supplies to the end of June, despite rising landed crude costs. 

It confirmed that demand from both consumers and commercial customers in Australia and New Zealand has remained stable despite recent price increases.

Are Ampol shares a buy, sell, or hold?

Analysts think there is still some upside left for Ampol shares this year. TradingView data shows that out of 10 analysts, seven have a buy or strong buy rating on the stock.

The average $36.77 target price implies a 5% upside over the next 12 months, at the time of writing. Whereas, the maximum $40.80 target pierce implies a potential 17% increase in value.

The post Ampol shares surge 50% to a two-year high: Buy, sell or hold? appeared first on The Motley Fool Australia.

More reading

• ASX 200 energy shares lift as pessimism over Iran war deepens
• What key update is fueling Ampol shares today?
• Why is everyone talking about Core Lithium, Ampol and Santos shares on Thursday?
• Ampol’s final ACCC remedy brings EG Australia acquisition closer
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Samantha Menzies 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.

It has been an interesting 12 months for the share market.

Income-focused shares, particularly banks and miners, have done a lot of the heavy lifting. At the same time, many growth names and technology stocks have struggled, with sentiment weighed down by valuation concerns and uncertainty around AI disruption.

That shift in leadership has had a clear impact on how different strategies have performed.

Why the Vanguard Australian Shares High Yield ETF has performed well

One ETF that has quietly benefited from this environment is the Vanguard Australian Shares High Yield ETF (ASX: VHY).

The VHY ETF focuses on higher-yielding shares within the Australian market. That naturally leads it toward sectors like financials and resources, which have been among the stronger performers over the past year.

For example, companies such as Westpac Banking Corp (ASX: WBC) and BHP Group Ltd (ASX: BHP) have both delivered solid gains, supported by strong earnings.

I think this highlights an important point. Market returns are not evenly distributed. Leadership changes over time, and in the past year, income has been back in favour. The Vanguard Australian Shares High Yield ETF is designed to capture that.

The role of distributions

It is also worth remembering that returns from an ETF like this do not just come from the share price.

Distributions play a big role. Over the past 12 months, the VHY ETF has paid distributions of 81.14 cents, 65.83 cents, 109.69 cents, and 200.17 cents per unit.

That adds up to a meaningful income stream on top of any capital growth.

What is the investment in the VHY ETF worth now?

Putting it all together. If you had invested $10,000 into the Vanguard Australian Shares High Yield ETF a year ago at $71.63, you would have received around 139.6 units.

At today’s price of $82.98, those units would now be worth approximately $11,580.

On top of that, the total distributions over the year come to approximately $4.56 per unit. Across 139.6 units, that equates to roughly $637 in income.

That brings the total value of the investment to around $12,217.

In other words, a $10,000 investment has grown by just over 22% in a year.

Foolish takeaway

I think this is a good example of how different parts of the market can take the lead at different times.

The VHY ETF has benefited from strong performance in dividend-paying sectors, as well as the income those companies generate. That combination has worked well over the past year.

Looking ahead, I think it reinforces the value of diversification. Income strategies can have their moment, just as growth strategies do. The key is having exposure to both and staying invested for the long term.

The post $10,000 invested in the Vanguard Australian Shares High Yield (VHY) ETF a year ago is now worth? appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed yesterday trading for $174.61. In afternoon trade on Wednesday, shares are changing hands for $172.29 apiece, down 1.3%.

For some context, the ASX 200 is down 0.3% at this same time.

Despite today’s slip, CBA shares have materially outperformed the benchmark index in 2026, up 6.9% compared to the 0.4% year to date loss posted by the ASX 200.

For a more accurate picture, we should also include the $2.35 a share fully franked interim dividend CommBank paid out on 30 March. That passive income payout followed another half year of strong profitability.

So, if we add that interim dividend back in, then the cumulative value of CBA stock has gained 8.4% so far in 2026, despite the broader Aussie stock market decline.

Which returns us to the topic at hand.

CBA shares: Buy, hold or sell?

Morgans’ Damien Nguyen recently analysed the outlook for Australia’s biggest bank stock (courtesy of The Bull).

“CBA is Australia’s strongest major bank, with a leading retail franchise and consistent profitability,” he noted.

Despite that consistent profitability, Nguyen expressed concerns over the Big Four bank’s current valuation.

According to Nguyen:

However, the market fully recognises these strengths. The shares were recently trading at a significant premium, leaving limited upside as interest rate benefits fade and competition increases.

CBA shares currently trade at a P/E ratio of around 28.

As for the other big four Aussie bank stocks, Westpac Banking Corp (ASX: WBC) shares trade on a P/E ratio of around 20 times; ANZ Group Holdings Ltd (ASX: ANZ) shares trade on a P/E ratio of around 18 times; and National Australia Bank Ltd (ASX: NAB) shares trade on a P/E ratio of around 18 times.

Explaining his sell recommendation on CBA shares, Nguyen concluded:

While the business remains high quality, future returns are likely to be more modest, in our view. With the company’s valuation pricing in a lot of good news, we see better value elsewhere, supporting a sell view.

Just how profitable is CommBank?

CBA reported its half year results (H1 FY 2026) on 11 February, and it was another profitable six months for the ASX 200 bank stock.

CBA shares closed up 6.8% on the day after the company reported a 6% year on year increase in its half year cash net profit after tax (NPAT) to $5.45 billion.

The post Should you buy CBA shares for their ‘consistent profitability’? appeared first on The Motley Fool Australia.

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• Buy, hold, sell: Macquarie, Boss Energy, CBA shares
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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.

Shares in Pathkey.AI Ltd (ASX: PKY) hit a new 12-month high on Wednesday after the company announced it would buy Singapore-based Chipforge, an AI-driven semiconductor hardware company.

Major share boost

Pathkey.AI shares traded as high as 7.1 cents before settling back to be changing hands for 5.7 cents around noon, up 39.02%.

The company said in its statement to the ASX that Chipforge was developing an Agentic AI platform, “that translates high-level design intent into verified, synthesisable hardware code, shortening chip development cycles that would otherwise take 12–24 months and multi-million-dollar expenditure”.

Pathkey.AI Chair Shannon Robinson said the Chipforge technology complemented the company’s existing offering.

Mr Robinson added:

By adding this complementary AI chip‑design technology to our technology stack, we are materially strengthening our position as a leader in AI. According to a recent article by McKinsey & Company, The global semiconductor market is forecast to reach around US$1 trillion by 2030, driven by AI, data‑centre expansion, edge computing, defence and next‑generation compute workloads. Against that backdrop, owning chip design and verification IP is highly strategic. This transaction accelerates our roadmap, deepens our technical moat, and positions us to capture a far greater share of value as semiconductor spending scales globally.

Pahtkey.AI said Chipforge was developing a design platform for semiconductor engineering, which would “materially reduce the time and cost of designing custom chips, one of the most expensive and time-consuming processes in modern technology”.

Such custom chip design was expensive, the company said, relying as it does on a small global pool of highly specialised hardware engineers.

Pathkey.AI added:

The bottleneck sits in two stages. First, translating a design concept into the precise hardware code that defines how a chip will behave. Second, verifying that the design actually works as intended before it is committed to silicon. Verification alone routinely consumes more than half of a chip project’s total budget and development timeline. Chipforge applies AI agents across the full design workflow.

Share-based deal

Under the terms of the deal, which is still subject to conditions, the owners of Chipforge will be issued 560 million new shares in Pathkey.AI as well as 150 million performance rights.

Pathkey.AI said it had $3.26 million in cash on hand at the end of March and expected to receive R&D rebates in the order of $840,000 over the next 12 months.

The company said it did not expect to carry out a capital raise in association with the new deal.

It added:

Based on its existing cash reserves and expected receipts, the Company considers that it is well funded to support the continued development of both the TrialKey and Chipforge platforms, together with its working capital requirements, over the next 12 months.

Pathkey.AI was valued at $24.9 million at the close of trade on Tuesday.

The post Which junior ASX AI company has rocketed almost 40% on a transformational deal? appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in the Vanguard Australian Shares High Yield (VHY) ETF a year ago is now worth?
• Should you buy CBA shares for their ‘consistent profitability’?
• 2 top ASX shares to buy and hold for the next decade
• This $7 billion stock just hit fresh highs. Here’s what’s driving the move
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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.

I think the best time period to invest for is the long term. That gives the ASX share investment the most time to come good, partly thanks to the power of compounding.

But, I wouldn’t invest in something for 10 years just to hold it a long time; I want to own investments that could provide great returns.

So, I’m going to outline two ideas that I’m optimistic can deliver strong earnings growth and great returns in that time.

Guzman Y Gomez Ltd (ASX: GYG)

GYG is a fast-growing Mexican restaurant business with over 240 locations in Australia, as well as a few restaurants in Japan, Singapore, and the US.

The company has a goal to increase its Australian restaurant network to 1,000 locations within 20 years, which would essentially be a quadrupling of its size.

Not only could that lead to a big rise in network sales, but it will hopefully mean stronger profit margins thanks to scale benefits.

GYG’s network sales are growing at an impressive pace – in the third quarter of FY26, the company generated total network sales growth of 19.5% to $345.9 million, with Australia and Asian comparable network sales growth of 6.6%.

We’re seeing the ASX share’s rising profitability come through in the company’s Australia and Asia segments’ underlying operating profit (EBITDA) margin as a percentage of network sales, which is predicted by the market to improve to between 6% to 6.2%, up from 5.7% in FY25.

In subsequent years, I expect the ASX share’s EBITDA margin will continue to rise, particularly if comparable sales continue to be a solid double-digit percentage each year.

According to the forecast on CommSec, the GYG share price is valued at 39x FY28’s estimated earnings at the time of writing.

Global X S&P World Ex Australia GARP ETF (ASX: GARP)

This is an exchange-traded fund (ETF) that aims to invest in the most compelling shares globally. It invests in 250 companies that are spread across multiple countries and sectors, giving it good diversification.

The investment strategy of the fund is to buy companies with robust earnings growth and solid financial strength, trading at reasonable valuations. In other words, a high level of growth at a reasonable price (GARP).

On the growth side of things, these businesses have a strong level of growth in terms of 3-year sales per share and earnings per share (EPS) growth. They also have low levels of debt and a high return on equity (ROE). Finally, the price-earnings (P/E) ratio is appealing for that level of growth.

Past performance is not a guarantee of future performance, but the index that this ASX ETF tracks has delivered an average return per year of 16.4%. If it can continue outperforming the global share market (and ASX share market) over the long term, I think it’ll be a great investment to own for the long term.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez. 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.

Another move higher has pushed this ASX lithium stock to fresh multi-year highs on Wednesday.

Liontown Ltd (ASX: LTR) shares are climbing again after a new update landed this morning.

At the time of writing, the share price is up 2.11% to $2.42, marking a new multi-year high.

The rally adds to a strong run this year, with Liontown now up more than 50% in 2026.

A lot of that momentum has come from a rebound in lithium prices, which has lifted sentiment across the sector.

Here’s what the company just announced.

Early works kick off at Kathleen Valley expansion

In its release, Liontown outlined early works and long-lead procurement plans tied to the Kathleen Valley expansion in Western Australia.

This comes ahead of a final investment decision (FID), which Liontown expects in the first quarter of FY27.

Management is moving ahead with early-stage development to reduce future schedule and cost risks.

That includes ordering key equipment and starting site-based work programs tied to the expansion.

One of the more notable items is a 5.5MW ball mill, which sits on the project’s critical path.

Delivery is expected to take around 18 months, locking in a key piece of infrastructure early.

The company is also progressing drilling, grade control work, and mine planning across the Northwest Flats orebody.

At the same time, development of underground access is continuing, alongside infrastructure upgrades and site mobilisation.

Spending starts ahead of FID

Further to the update, Liontown flagged early capital spending as part of this initial phase.

The ball mill alone is expected to cost around $12 million over the next 12 months.

Total early works spending is estimated between $15 million and $18 million in FY26. But that could rise to about $77 million before the FID is made.

Liontown said the aim is to bring forward key steps so the project can move faster once formal approval is locked in.

Management also noted that early procurement helps reduce pricing risk in a tight equipment market.

Foolish bottom line

Liontown is now moving beyond planning and into execution on its next growth phase.

The Kathleen Valley operation is already a major lithium asset, and the expansion is aimed at lifting output further.

The early spend is not that large, but it shows management is willing to commit some capital ahead of a final decision.

From here, it comes down to two things.

Lithium prices need to hold up, and the expansion needs to stay on track as it moves closer to FID.

And if both fall into place, the share price could push further into fresh highs.

The post This $7 billion stock just hit fresh highs. Here’s what’s driving the move appeared first on The Motley Fool Australia.

More reading

• Why Ramelius, Liontown and Woodside shares are making waves on Wednesday
• Liontown shares: Expansion works begin at Kathleen Valley
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• ASX lithium shares rally as oil shock highlights EV appeal

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.

DroneShield Ltd (ASX: DRO) shares are spiking higher again in Wednesday lunchtime trade. 

The uptick isn’t too surprising, given that the counter-drone technology company is one of many ASX defence stocks in the spotlight right now. 

Tensions in the Middle East have seen heavy government defence spending as many nations around the world realise that global volatility could well continue, or even escalate further.

At the time of writing, DroneShield shares are up 0.7% to $3.64 a piece. The shares are now up nearly 10% year to date and are 172% higher than this time 12 months ago.

While DroneShield presents a great success story, it hasn’t been a smooth ride. After soaring to an all-time high of $6.60 in October last year, DroneShield shares have swung anywhere between $1.16 to $4.74 a piece. 

Analysts still tip more upside, around 22%, to an average target price of $4.40 at the time of writing.

The upside is impressive, but there are a few other ASX defence stocks I’d rather buy instead.

Electro Optic Systems Holdings Ltd (ASX: EOS)

EOS shares are up 1.13% at the time of writing, to $9.81 each. It’s a 1.5% decline for the year-to-date, but an enormous 691% higher than a year ago.

The Aussie defence company develops and produces advanced electro-optic technologies, so it has benefited from surging demand for exposure to the defence sector in 2026. 

The company has won several major contracts over the past few months, helping build investor confidence, keeping the share price hovering around an all-time high. 

Analysts are very bullish on the EOS share price, expecting further upside. All four analysts on TradingView data have a strong buy consensus. 

The maximum target price is $16, which implies a potential 63% upside at the time of writing. Even the average $12.79 target price represents a potential upside of 31% from here.

Titomic Ltd (ASX: TTT)

I also like the look of the lesser-known defence stock, Titomic. The company is a high-tech manufacturing company that uses advanced technology to print 3D metal parts on an industrial scale. 

These are mainly used in defence, aerospace, mining, and oil & gas to produce things like satellite structures, hypersonic shielding, drone parts, and large structural components.

The company posted its latest quarterly update in January, revealing global expansion plans, new defence contracts, and strong cash reserves. 

Titomic also recently announced plans to relocate its corporate headquarters to the US as part of its strategy to grow its defence and aerospace business. 

It looks like there is plenty of growth ahead for the ASX defence stock. At the time of writing, Titomic shares are down 3.45% to 28 cents per share. But the shares are still up 14% for the year-to-date and 19% over the year.

Analysts tip a 75% upside to 50 cents per share over the next 12 months.

Austal Ltd (ASX: ASB)

Austal is an Australian-based global shipbuilding company. The company designs and constructs naval vessels, defence surface warfare combatants, high-speed support vessels, law enforcement patrol boats, offshore vessels, and even passenger and vehicle ferries. 

The company has secured some big contract wins recently, including a $4 billion contract with the Australian Government in February. 

Austal also posted its first-half FY26 results in the same month, revealing a 34.4% year-on-year increase in revenue. Its EBIT also climbed 41.3%, and net profit climbed 21.4%.

Analysts are bullish that the shipbuilding company can keep growing this year. TradingView data shows that three out of six analysts have a strong buy rating on the defence stock. Another two have a hold rating. 

The average target price of $6.69 implies a potential 55% upside at the time of writing. Although some think the shares could jump up to 79% higher to $7.71 each.

The post Forget DroneShield shares, I’d buy these ASX defence stocks instead appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Electro Optic Systems. 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.