Author: openjargon

Shares in Domino’s Pizza Enterprises Ltd (ASX: DMP) took another hit on Tuesday, tumbling 11% to $15.85.

That extends a rough run for investors. The ASX stock is now down around 25% year to date and roughly 38% over the past 12 months. By comparison, the S&P/ASX 200 Index (ASX: XJO) has climbed about 9% over the same period.

So, what’s going wrong, and do experts see a way back?

US weakness rattles confidence

The latest sell-off of Domino’s shares appears to have been triggered by an update from Domino’s Pizza Inc (NASDAQ: DPZ) on Monday.

The US business reported same-store sales growth of just 0.9%, falling well short of market expectations for a 2.3% increase. It also trimmed its full-year guidance, raising concerns about demand in a tough consumer environment.

That matters for Australian investors. While Domino’s Pizza Enterprises operates across multiple regions, the US update has spooked the market. Investors are increasingly worried that similar pressures — including cost-of-living constraints and softer discretionary spending — could be weighing on Domino’s operations globally.

In short, if the world’s largest Domino’s franchise is feeling the pinch, others might not be far behind.

Low valuation… for a reason?

After such a sharp decline, Domino’s shares are now trading on relatively low valuation multiples compared to historical levels.

At first glance, that might look like a bargain. But not everyone is convinced.

Bell Potter has initiated coverage with a hold rating and an $18 price target. While it acknowledges the cheaper valuation, it argues that the discount is justified given the company’s modest earnings growth outlook.

In other words, the market may not be overly pessimistic. It may simply be pricing in slower growth.

What next for Domino’s shares?

The broader analyst picture is mixed.

According to TradingView data, 10 out of 18 analysts rate the stock as a hold. Five see it as a buy or strong buy, while three recommend selling.

That split reflects the uncertainty surrounding the business. The average price target sits at $20.07, implying potential upside of around 27% from current levels. The most bullish forecasts suggest gains of nearly 80%, while the most cautious point to a further 18% downside, with a $13 target.

That’s a wide range and a sign that visibility is still limited.

Foolish Takeaway

Domino’s shares have been under heavy pressure, and the latest US update hasn’t helped sentiment.

While the stock now looks cheaper, the key question is whether earnings can stabilise and return to growth.

For now, analysts aren’t fully convinced. And until there’s clearer evidence of a turnaround, Domino’s may remain stuck between bargain territory and a potential value trap.

The post Down 38%: Are Domino’s shares ready to recover? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Codan Ltd (ASX: CDA) share price is in focus today after the company announced it expects FY26 EBIT to hit $235 million and NPAT to reach $170 million, both up more than 60% from last year.

What did Codan report?

• FY26 EBIT expected to be approximately $235 million
• Net profit after tax (NPAT) anticipated at around $170 million, up over 60% year-on-year
• Communications business revenue growth to finish at the top end of the 15–20% targeted range
• Communications segment profit margin expected to reach 30% in FY26, ahead of schedule
• Minelab revenue in 2H FY26 tracking ahead of a strong first half

What else do investors need to know?

Codan’s Communications business has been the standout, thanks to sustained demand from defence customers and growth in software-defined radios (SDRs). The Command-and-Control (Zetron) division is on track to deliver steady revenue across both halves of the year.

Minelab, Codan’s gold detection arm, has performed strongly, benefitting from a high gold price and new product success. The company has confirmed its second-half results should exceed those delivered in the first half.

What’s next for Codan?

Investors can expect Codan to release its full-year FY26 results on 20 August 2026. Management is also working toward maintaining strong momentum, with a particular focus on sustaining margins and capitalising on technology-driven solutions across its business.

The group plans to keep building on its communications and gold detection strengths to support ongoing profit growth in FY27 and beyond.

Codan share price snapshot

Over the past 12 months, Codan shares have risen 133%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Codan FY26 earnings surge more than 60% on strong communications segment appeared first on The Motley Fool Australia.

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The Capricorn Metals Ltd (ASX: CMM) share price is in focus today after the company reported a strong March quarter, with $143.1 million in operating cash flow—a new quarterly record—and a maiden interim dividend of 5 cents per share.

What did Capricorn Metals report?

• Gold production for Q3 FY26: 30,358 ounces (Q2: 30,476oz)
• All-in-sustaining cost (AISC) for Q3: $1,617 per ounce (Q2: $1,627/oz)
• Revenue from gold sales: $204 million on 29,009 ounces sold at $7,034/oz
• Record quarterly cash flow from operations: $143.1 million (Q2: $122.4m)
• Cash and gold on hand at 31 March: $507.6 million
• Maiden fully franked interim dividend: 5 cents per share, totalling $22.8 million

What else do investors need to know?

The company says it remains on track for the upper end of its FY26 production guidance—115,000 to 125,000 ounces at an AISC of $1,530 to $1,630 per ounce. Year-to-date gold production totals 93,152 ounces at an AISC of $1,623 per ounce.

Development of the Karlawinda Expansion Project (KEP) progressed well, with key infrastructure largely complete and commissioning targeted for Q1 FY27. Capricorn also continues to advance environmental permitting and planning at the Mt Gibson Gold Project (MGGP), alongside an active exploration program.

Gold exploration at MGGP and KGP delivered high-grade results, expanding the potential for long-term underground operations. The company highlighted strong drill intercepts and continued investment in both brownfields and greenfields exploration across its tenements.

What’s next for Capricorn Metals?

Capricorn expects to maintain current mining and development momentum, with the KEP on track for completion and ramp up in the coming financial year. The expanded plant is expected to lift sustainable production to around 150,000 ounces per year once commissioned, with detailed FY27 guidance to follow completion.

The board’s maiden dividend reflects Capricorn’s strong balance sheet and confidence in self-funding growth from internal cash flows, even as investment continues across development and exploration.

Capricorn Metals share price snapshot

Over the past 12 months, Capricorn Metals shares have risen 23%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Capricorn Metals reports record cash flow and first dividend in March 2026 quarter 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 Westgold Resources Ltd (ASX: WGX) share price is in focus today after the company reported a $285 million underlying cash build for March 2026, increasing its treasury to $856 million and keeping FY26 gold production guidance on track.

What did Westgold Resources report?

• Gold production of 93,145 ounces in Q3 FY26 (288,500oz YTD)
• Gold sales of 69,900 ounces at a record $7,080/oz, delivering $495 million in revenue
• All-In Sustaining Cost (AISC) ex-OPA of $2,931/oz; AISC including OPA of $3,338/oz
• Underlying quarterly cash build of $285 million; net mine cash inflow $254 million
• Closing cash, bullion, and liquid investments of $856 million, up $202 million over the quarter
• Westgold remains 100% debt free, fully unhedged, and in the ASX 100

What else do investors need to know?

Westgold maintained its FY26 gold production guidance of 345,000–385,000 ounces despite slightly lower quarterly grades and volumes. The company noted production was supported by improvements in key mining assets, with developments at Bluebird–South Junction and Beta Hunt expected to accelerate mining rates by year-end.

Operationally, Westgold brought forward open pit mining in the Murchison region by three months, enhancing ore blends and mill utilisation. The company continued to invest in growth, spending $81 million on development projects and $13 million on exploration during the quarter.

Westgold approved the expansion of its Higginsville mill, a $145 million investment to lift capacity from 1.6Mtpa to 2.6Mtpa, supporting long-term growth in the Southern Goldfields. The company further streamlined its portfolio with the divestment of the Mt Henry–Selene and spin-out of Reedy and Comet, unlocking about $140 million in immediate shareholder value.

What did Westgold Resources management say?

Managing Director & CEO said Wayne Bramwell said:

Westgold delivered another strong quarter in Q3 FY26, with cash generation lifting treasury to $856M. Underlying quarterly cash build of $285M underpins a business that is continually building strength to internally fund growth and return capital to shareholders.

What’s next for Westgold Resources?

Westgold expects production rates to ramp up in Q4 FY26, with ventilation upgrades at Beta Hunt and Big Bell now complete and no major shutdowns planned. Management expects Bluebird–South Junction to reach mining rates of 1.0–1.2Mtpa and Beta Hunt to hit 2.0Mtpa by year-end, underpinning production targets.

The Higginsville Expansion Plan is underway, aiming to increase processing capacity and reduce unit costs from mid-FY28. The company’s strengthened balance sheet, new $600 million credit facility, and portfolio optimisation are expected to support both future growth and returns to shareholders.

Westgold Resources share price snapshot

Over the past 12 months, Westgold Resources shares have risen 102%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Westgold Resources posts $285M quarterly cash build 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.

Macquarie Group Ltd (ASX: MQG) shares have a lengthy track record of strong performance.

On Tuesday, shares in the S&P/ASX 200 Index (ASX: XJO) diversified financial stock closed trading for $232.12 each.

That sees Macquarie shares up 13.9% in 2026, handily beating the 0.2% year to date losses posted by the benchmark index.

Taking a step back, the ASX 200 financial stock is up 19.4% over 12 months, compared to the 8.9% one-year gain delivered by the benchmark index.

And that’s not including the two partly franked dividends Macquarie paid to eligible stockholders over this time. The ASX 200 stock trades on a partly franked 2.9% trailing dividend yield.

That’s a look in the rearview. The question now is, should you buy the ASX financial stock today?

Outlook ‘bright’ for Macquarie shares

MPC Markets’ Jonathan Tacadena recently ran his slide rule over the financial company (courtesy of The Bull).

“This global financial services company operates in more than 30 markets,” said Tacadena, who has a buy rating on Macquarie shares.

“Businesses include asset management, banking and financial services and commodity and global markets,” he added.

Summarising his bullish outlook on the ASX 200 stock, Tacadena said:

Its diversification appeals to investors, particularly in volatile markets. The trading desk has been a driver of growth in previous years and we suspect it will feature prominently at the company’s full year results due in May.

The shares have surged from $191.53 on March 4 to trade at $229.95 on April 23. We believe the company’s outlook is bright. The company’s solid track record has stood the test of time.

Which brings us to…

The (slightly) less bullish case for the ASX 200 financial stock

Morgans’ Damien Nguyen also had a look into Macquarie stock on The Bull this week.

“Macquarie is a diversified financial services group with strengths across asset management, infrastructure and global markets,” he noted.

“Its business model benefits from long term infrastructure investment and energy transition themes, but earnings can be volatile due to market conditions,” Nguyen added.

But with the big run higher in Macquarie shares since early March, Nguyen issued a hold recommendation on the stock.

According to Nguyen:

Recent performance has been solid, and much of the medium-term opportunity is already reflected in the share price, in our view. While Macquarie remains a high-quality company with strong management, near term upside looks balanced by cyclical and market risks.

At current levels, a hold is appropriate.

The post Macquarie shares: Buy, hold or sell? 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Lynas Rare Earths Ltd (ASX: LYC) shares are a popular option to gain exposure to the rare earths industry.

But with the rare earths giant’s shares up more than 100% over the past 12 months, the near-term upside from here could be limited.

That doesn’t mean there isn’t potential for big returns elsewhere in the industry.

For example, Bell Potter expects the stock in this article to rocket materially higher from current levels.

Which ASX rare earths stock?

The stock that Bell Potter is tipping to rise strongly is American Rare Earths Ltd (ASX: ARR).

It holds a 100% interest in the subsidiary Wyoming Rare USA (WRI), which owns the Halleck Creek project in Wyoming, United States. The Cowboy State Mine (CSM) forms Phase 1 of the development at Halleck Creek.

Bell Potter highlights that CSM is located on State of Wyoming land, which carries advantages from expedited permitting process (~2-3 years vs +10 years on Federal Land). The current mineral resource estimate (MRE) for CSM is 547Mt at 3,344ppm total rare earth oxides (TREO) for contained metal of 1,831kt.

What is the broker saying?

The broker has been pleased with the progress the ASX rare earths stock is making and believes the next 6 to 12 months should make project delivery timelines clearer. It said:

Halleck Creek remains one of the larger and more advanced rare earth development assets in the U.S., with strategic exposure to both magnet rare earths and heavy rare earths. ARR continues to make tangible progress on several fronts that should help de-risk Halleck Creek and improve strategic positioning within the developing U.S. mine-to-magnet rare earth supply chain.

The key takeaway from the March Quarter was not just continued technical progress, but the increasing focus on execution, particularly around pilot-scale processing, downstream flowsheet development and broader development planning. These steps should support a clearer pathway toward project delivery over the next 6–12 months.

Big potential returns

According to the note, the broker has retained its speculative buy rating and 65 cents price target on the company’s shares.

Based on its current share price of 37 cents, this implies potential upside of 75% for investors over the next 12 months.

Commenting on its speculative buy recommendation, Bell Potter said:

We retain our Speculative Buy recommendation and $0.65/sh valuation. ARR is progressively de-risking Halleck Creek through pilot plant work, feasibility advancement, downstream studies and increased alignment with U.S. critical minerals policy settings. Success across these key catalysts and macro rare earth tailwinds represents the clearest path to compressing the risk discount and providing valuation uplift.

Overall, if you missed the boat on Lynas shares, then Bell Potter thinks this ASX rare earths stock could be worth considering. However, only if you have a high tolerance for risk.

The post Forget Lynas shares, this ASX rare earths stock could rise 75% 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 recommended Lynas Rare Earths Ltd. 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 mining stocks have been mixed in 2026 so far. ASX iron ore giants like BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) have gone from strength to strength during the first four months of the year.

Then there are the gold miners like Evolution Mining Ltd (ASX: EVN) and Genesis Minerals Ltd (ASX: GMD) which have had a much slower start to the year (or in Genesis’ case, even tumbled in value).

But there is another ASX mining stock which has caught my eye recently.

The booming ASX mining stock tipped to keep going

Mineral Resources Ltd (ASX: MIN) shares closed 4% higher on Tuesday afternoon, at $61.37 a piece.

The shares are down 11% higher for the year-to-date and an enormous 238% higher than this time last year.

That means $6,000 invested in Mineral Resources shares would be worth a huge $20,280 today.

The best part is, the majority of analysts think the ASX mining stock will continue to increase.

According to TradingView data, 10 out of 15 analysts have a buy or strong buy rating on the shares. Another three have a hold rating and two rate the stock as a strong sell.

The average $61.83 target price implies a 1% upside at the time of writing. But some think the ASX mining stock can jump 27% to $78 a piece over the next 12 months.

Why are Mineral Resources shares storming higher?

The ASX iron ore and lithium mining stock has flown higher over the past year, partly off the back of a lithium market rebound.

A rally in lithium prices and sentiment, primarily driven by a surge in interest in electric vehicles (EVs) and battery energy storage. Global EV sales have been rising faster than carmakers can keep up, and demand for grid-scale energy is also soaring.

EV demand spiked even higher recently after the conflict in the Middle East threatened global fuel supplies and prompted a shift towards EVs as an alternative. Lithium miners like Mineral Resources have scooped up a lot of demand.

The iron ore price growth and some record earnings results has also driven the ASX mining stock higher this year.

Most recently, Mineral Resources priced a US$1.3 billion senior unsecured notes offering last week. The two-tranche deal will have US$650 million due in 2032 and another US$650 million due in 2034. The notes carry interest rates of 6% and 6.25% respectively. The miner said the proceeds will be used alongside existing cash to refinance debt, including the full repayment of US$625 million in notes due in November 2027.

The news follows the company’s half-year FY26 results announcement in February. Mineral Resources posted a 286% year-on-year increase in its EBITDA for the six month period ending 31 December.

The ASX miner also posted a 33% year-on-year revenue increase to a new all-time half-year high.

The ASX company credited the strong result to an “outstanding operational performance”.

The post If I’d put $6K in this ASX mining stock 12 months ago I’d have over $20k now 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX materials stocks have largely been the most resilient this year amidst broader market volatility. 

The S&P/ASX 200 Materials Index (ASX: XMJ) is up more than 10%, while the S&P/ASX 200 Index (ASX: XJO) is relatively flat. 

However one ASX materials stock that has missed out on this outperformance is WA1 Resources Ltd (ASX: WA1). 

The copper exploration company has seen its share price fall more than 17% since January. 

Earlier this week, the company enjoyed a 7% rebound following the release of its March 2026 Quarterly Activities and Cash Flow Report.

What did the company report?

Investors were seemingly pleased with the reported cash balance of approximately $131 million as at 31 March 2026. 

Additionally, progress continued across WA1’s key project workstreams that are expected to drive future value catalysts. Most notably, drilling continued to generate data for the June 2026 MRE update. 

This led to a share price spike on Monday. 

Following the report, the team at Bell Potter also released updated guidance on this ASX materials stock. 

Here’s what the broker had to say. 

Upside remains according to Bell Potter

The team at Bell Potter said from an operational perspective, 3QFY26 was a relatively quiet quarter. 

The company ended the quarter with A$131.5m in cash (vs A$138.5m in 2QFY26). Operating activities totalled A$5.7m.

Most notably, drilling continued to generate data for the June 2026 MRE update, where we expect both an increase in overall resource tonnage and an improvement in resource confidence categories, providing a stronger platform for the next phase of technical studies.

Encouragingly, high-grade intercepts reported both within and adjacent to the current MRE footprint indicating the MRE has not yet been fully delineated, supporting the view that further upside remains.

Price target intact 

The team at Bell Potter retained their speculative buy recommendation on this ASX materials stock, along with a price target of $24.80. 

From yesterday’s closing price of $15.88, this target indicates an upside potential of 56%.

We retain our Speculative Buy recommendation and $24.80/sh valuation. WA1 is progressively de-risking Luni, where we remain of the view that Luni is a world class niobium asset, with the potential to emerge as the most credible Tier-1 niobium supply source outside Brazil. 

Success across metallurgical optimisation, resource expansion, improved feasibility study outcomes and supportive critical minerals market tailwinds represent a clear pathway to higher valuations and share price re- rating.

The post Bell Potter says this beaten-down ASX materials stock can rise 56% appeared first on The Motley Fool Australia.

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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.

The ASX dividend share MFF Capital Investments Ltd (ASX: MFF) offers numerous elements that makes this a great choice for retirees.

MFF is best known as a listed investment company (LIC), which is the same sort of business as Australian Foundation Investment Co Ltd (ASX: AFI) and Argo Investments Ltd (ASX: ARG).

The business has a very promising future, in my view, for both dividend payments and capital growth. Let’s run through why MFF is a top pick for passive income.

Good dividend yield

The first thing that many retiree investors may want to know is how much passive income is this investment going to pay.

As a LIC, MFF has a lot of control over what the dividend payments will be. Many exchange-traded funds (ETFs) can’t offer the same level of reliability.

For FY26, the board of directors of MFF has indicated the business will pay an annual dividend per share of 21 cents. This translates into a dividend yield of 4.6% excluding franking credits and 6.6% including franking credits.

Great payout growth by the ASX dividend share

The business is growing its annual dividend at an impressive pace, each half-year dividend is 1 cent per share bigger than the last. Its two FY26 half-year payments of 21 cents and 20 cents per share are bigger than the 19 cents and 18 cents per share in FY25.

In percentage terms, the FY26 annual payment will be 23.5% higher than the FY25 payout. In dollars (and cents) terms, that’s a 4 cents per share rise.

I think there’s a good chance the FY27 annual payout could be 25 cents per share, which would be a grossed-up dividend yield of 7.9%, including franking credits.

There’s no guarantee the business will continue with the 1 cent per share growth trend, but I think it will. At the very least, MFF has said it intends to continue increasing its payout – that’s a great sign for retirees.

Excellent portfolio

You may be wondering how the business actually makes money. It aims to invest in high-quality businesses from around the world that have competitive advantages which seem like it’ll allow them to deliver above average profit growth/investment returns.

Some of its biggest investments include Mastercard, Alphabet, Visa, Bank of America, Amazon, Meta Platforms, American Express, Home Depot, Microsoft, United Health, Lowe’s and L1 Group Ltd (ASX: L1G).

These businesses collectively have a lot of earnings growth potential, which could increase their valuations coming years. This could translate into great returns for MFF.

As a bonus, the ASX dividend share is likely trading at a discount to its net tangible assets (NTA), which I’d describe as appealing. It’s great for retirees to buy strong businesses for cheaper than they’re worth.

The post Why this ASX dividend share is a retiree’s dream appeared first on The Motley Fool Australia.

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Bank of America is an advertising partner of Motley Fool Money. American Express is an advertising partner of Motley Fool Money. Motley Fool contributor Tristan Harrison has positions in Mff Capital Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Home Depot, Mastercard, Meta Platforms, Microsoft, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lowe’s Companies and UnitedHealth Group. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Meta Platforms, Mff Capital Investments, Microsoft, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have a high tolerance for risk, then it could be worth hearing what Bell Potter is saying about the small-cap ASX stock in this article.

That’s because if the broker is on the money with its recommendation, this stock could deliver incredible returns over the next 12 months.

Which small-cap ASX stock?

The small cap that Bell Potter is positive on is 6K Additive Inc (ASX: 6KA).

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

6K Additive’s patented UniMelt technology can produce spherical powders for additive manufacturing across a range of high-end reactive metals, refractory metals, and alloys including titanium, Inconel, C103, and tantalum.

What is the broker saying about it?

Bell Potter was pleased with the small-cap ASX stock’s performance during the first quarter. It highlights that cash receipts and revenue are growing and its pipeline is building. It said:

6KA reported March 2026 quarterly cash receipts of US$6.6m (prior quarter US$3.9m) and revenues of US$6.2m (prior quarter US$5.6m). Powder Products revenue (US$4.0m) increased 5% quarter-on-quarter with increased volumes across existing and new customers. This segment carries an order backlog of US$7.0m into the current quarter, after a 46% quarter-on-quarter lift in orders. In Alloy Products, revenue (US$2.2m) increased 22% quarter-on-quarter with new supply agreements and increased spot sales. 6KA’s capital deployment remains on track to meet the 2025 Prospectus estimates.

Should you invest?

Bell Potter is very positive on the investment opportunity here. However, it acknowledges that it is a risky one and would only be suitable for investors that have a high tolerance for risk.

According to the note, the broker has retained its speculative buy rating and $1.45 price target on the small-cap ASX stock.

Based on its current share price, this implies potential upside of just over 80% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

6KA has a competitive advantage in the production of high-value metal powders for the fast-growing global Additive Manufacturing sector. The company’s UniMelt systems are energy efficient, high yield and accept recycled metal feedstock. 6KA is supporting US-based reshoring of critical metal supply. Company value is highly leveraged to the take-up of Additive Manufacturing, which has lead-time advantages over incumbent casting and forging production methods.

We expect Additive Manufacturing to be a beneficiary of the US Department of War’s Acquisition Transformation Strategy to support rebuilding the country’s Defense Industrial Base. We have upgraded our CY2026 revenue forecast in this report.

The post Bell Potter tips this small-cap ASX stock to jump 80% 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.