Author: openjargon

DroneShield Ltd (ASX: DRO) shares just closed out another volatile month.

Shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company ended July trading for $1.70 apiece. On 6 August, those same shares closed the day at $2.28 each, putting the share price up 34.1% in just four trading days.

But most of those impressive gains evaporated over the remainder of the month, with DroneShield shares closing on 31 August trading for $1.77 apiece.

Despite the volatility, that still represents a 4.1% gain in August, handily outpacing the 1.1% one-month gain posted by the ASX 200.

Here’s what’s been catching investor interest.

What’s been moving DroneShield shares?

DroneShield shares closed flat on 10 August, despite the company announcing the launch of its RfRecon product.

Management noted that the portable radio frequency (RF) sensing and intelligence device allows operators to quickly identify, locate, and assess RF activity in active operational environments.

DroneShield CEO Angus Bean noted:

The electromagnetic spectrum has become one of the most important sources of operational intelligence on the modern battlefield, but collecting data is no longer enough. The teams that gain the greatest advantage will be those that can rapidly understand what they are seeing and confidently act on it.

ASX 200 defence stock falls on half-year results

DroneShield shares tumbled 11% on 26 August following the release of the company’s half-year results.

On the positive side, DroneShield achieved an all-time high first-half revenue of $125.8 million, up 74% year on year. And recurring revenue was up an impressive 229% to $11.5 million.

But the ASX 200 drone defence stock came under selling pressure with a half-year underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of $12.4 million. That’s down from $8 million in positive EBITDA in H1 2025.

The loss was driven by rising costs and deteriorating margins, with DroneShield reporting a gross margin of around 53%, down from 58%.

The company has been investing in its next stage of growth, aiming to expand its production capacity, product development, and management capability to support larger global operations.

Management noted:

At a corporate and executive level, there has been a deliberate expansion in DroneShield’s organisational functions and capabilities to provide deeper experience and broader support across the Company in advance of the next phase of growth.

On the bottom line, DroneShield shares took a big hit on the day, with the company revealing a statutory net loss after tax of $32.2 million, down from a $2.1 million profit reported for the first half of 2025.

The post What on earth happened with DroneShield shares in August? 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 DroneShield. 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.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.3% to 9,052.1 points on Tuesday.

Among the 11 market sectors, energy is in the lead, up 1.7%, while consumer discretionary is the laggard, down 2.5%.

Let’s check out some new ratings on ASX shares today.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is $2.30, down 2.8% today and up 14% over 12 months. 

Bell Potter has a buy rating on this ASX healthcare share following its FY26 results.

Analyst John Hester said: 

(All US$m) Revenues $120.2m and loss at the EBIT line -$49.9m were in line with our forecast. Ryoncil sales of $115m were at the mid-point of the guidance range.

Operating expenses $153m were dominated by R&D expense ($97m), driven by the investment in label expansion for Ryoncil and the ongoing Phase 3 trial for Rexlemestrocel in chronic lower back (CLBP).

Loss at NPAT $57.4m with net cash burn for the year -$43.8m inclusive of just -$13m in 2H26.

MSB has a long pipeline and label expansions for Ryoncil alone which we expect will come to market on a 3 to 5 year time horizon.

Pivotal moments in the short term include the interim readout on adult GvHD and the pending submission of the BLA for Rexlemestrocel in HF.

Challenger Ltd (ASX: CGF)

The Challenger share price is steady at $9.45 today, and up 14% over 12 months. 

Jonathan Tacadena from MPC Markets has a hold rating on this ASX 200 financial share. 

Tacadena said (courtesy The Bull): 

Australia’s largest annuities provider delivered a strong result in full year 2026. Statutory net profit after tax of $506 million was up 163 per cent. Annuity sales of $6.2 billion were up 19 per cent. It delivered a normalised return on equity of 11.6 per cent.

The full year ordinary dividend of 31.5 cents, fully franked, was up 7 per cent. The share buy-back was upsized to $450 million.

The shares have performed strongly since March. Hold for the buy-back and yield, and perhaps consider adding on any weakness.

APA Group Ltd (ASX: APA)

The APA share price is $10.82, down 0.6% today and up 22% over 12 months. 

Morgans has a sell rating on this ASX 200 utilities share. 

Analyst Damien Nguyen said: 

This energy infrastructure business provides investors with stable, regulated cash flows and a defensive earnings profile.

Total revenue was down 6.3 per cent in full year 2026, but profit after tax was up 81.4 per cent.

Balance sheet leverage is significant, in our view, and funding costs can be a challenging headwind.

The market is concerned about the shift away from gas may create uncertainty about future demand in the longer term.

Although APA is pursuing energy transition opportunities, we believe these are unlikely to materially improve earnings in the near term.

We believe investors can find better risk-adjusted opportunities elsewhere.

The post Buy, hold, sell: Challenger, APA Group, Mesoblast shares appeared first on The Motley Fool Australia.

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

The S&P/ASX 200 Index (ASX: XJO) notched a record closing high on 6 August and ended the month up 1.1%, but these five ASX 200 shares went the other direction.

Below, we look at five large-cap ASX companies that investors would have done well to avoid in August.

Centuria Capital Group (ASX: CNI)

Centuria Capital shares tumbled 17% in the month just past, closing out August trading at $1.22 apiece.

The real estate funds manager reported its FY 2026 results on 27 August.

The company reported operating earnings before interest, taxes, depreciation and amortisation (EBITDA) of $182.5 million and a 12.9% year-on-year increase in operating net profit after tax (NPAT) to $113.8 million.

But amid sticky inflation and potential further interest rate hikes, the ASX 200 share just closed out a month to forget.

Charter Hall Group (ASX: CHC)

Charter Hall shares were also best avoided in August.

Shares in the Aussie property investment and funds manager fell 17.2% over the month to close at $19.32 each.

Charter Hall released its FY 2026 results on 21 August.

Shares closed down 6.3% on the day, despite the company reporting operating earnings of $488.1 million. Operating earnings per security (OEPS) post-tax of 103.2 cents were up 26.8% from FY 2025.

But Charter Hall could also face headwinds if the Aussie property market struggles with higher interest rates for longer.

JB Hi-Fi Ltd (ASX: JBH)

The third ASX 200 share that had a month to forget is electronics retailer JB Hi-Fi.

JB Hi-Fi shares closed on 31 August trading for $66.90 each, down 18.3% for the month.

JB Hi-Fi shares plunged 12.3% on 17 August after the company reported its FY 2026 results.

On the positive side of the ledger, JB Hi-Fi achieved record revenue of $11.06 billion, up 4.8% year on year. And on the bottom line, the company reported a net profit after tax (NPAT) of $489.9 million, up 6%.

But investors were pressuring JB Hi-Fi shares amid concerns that FY 2027 could be a tougher year. Indeed, the company reported a 1.4% decline in comparable sales growth for JB Hi-Fi Australia for July.

Life360 Inc (ASX: 360)

Life360 shares also got walloped in August, falling 21% to end the month trading for $20.25 each.

Shares in the location-sharing software developer crashed by 19.4% on 11 August after the company released its second-quarter (Q2 2026) results.

Positively, Life360 achieved a 38% year-on-year increase in revenue to US$159 million. And adjusted EBITDA of US$31.1 million were up 53%.

However, the company’s second-quarter net income of US$5.1 million was down 17.8% from Q2 2025, while Life360’s net income margin (NIM) fell to 3%, down from 6% a year earlier.

Generation Development Group Ltd (ASX: GDG)

The fifth ASX 200 share to get heavily sold down in August is diversified financial services business Generation Development.

Generation Development shares tumbled 22.6% to close out the month trading for $3.18 apiece.

Shares closed down 15.4% on 27 August following the release of the company’s FY 2026 results.

On the plus side, the company achieved a 23% year-on-year increase in revenue to $178.7 million, with funds under management (FUM) rising 37% to $46.5 billion.

And Generation development reported underlying NPAT of $40.7 million, up 21% from FY 2025.

However, statutory NPAT fell 10% year on year to $31.9 million. And costs increased faster than revenue, with the company reporting a 26% increase in its operating expenses.

The post The five worst-performing ASX 200 shares in August unmasked 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 Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Santos Ltd (ASX: STO) shares are up around 2% to $8.28 at the time of writing.

Today’s increase means the shares have rebounded 8% over the past month and are up 35% for the year-to-date. The oil and gas major’s shares are also around 4% higher than 12 months ago.

Why are Santos shares climbing higher?

Santos shares have trended higher through 2026 so far as recurring tensions between the US and Iran continue to fuel concerns over global oil supplies and supported energy prices.

The shares spiked in February and March, around the time news first broke that conflict had escalated between the two nations. The shares continued climbing in value as the war heated up.

Rising oil prices were the main tailwind for Santos shares, as tight oil supply made prices highly volatile. 

But every time there is renewed optimism about a potential US-Iran peace agreement, the price of oil softens, and the Santos share price follows suit. In June and July the share price tumbled before rebounding again over the past month.

In mid-August, after the company posted its half-year FY26 results, Santos shares reached a multi-year high of $8.45 a piece.

The company reported a 2% year-on-year increase in sales revenue to US$2.62 billion. Production volumes were also higher, up 1.7% to 48 million barrels of oil equivalent (mboe).

But Santos also posted a 19% decline in its half-year statutory net profit after tax (NPAT), which fell to US$355 million. 

Santos also managed to generate free cash flow from operations from its strong base business performance.

The company is well placed to increase its production in the coming reporting periods, which could help boost earnings.

What do brokers tip for the ASX energy shares over the next 12 months?

Brokers are mostly bullish on Santos shares, with the majority tipping upside.

Market Index data shows all brokers have a strong buy rating on the shares. The $8.57 average target price implies an upside of around 3% over the next 12 months, at the time of writing.

Sentiment is similar on TradingView. The majority (13 out of 15) have a buy/strong buy rating on the shares. One rates Santos as a hold, and another rates it as a sell.

The $8.72 average target price implies a slightly higher 5% upside ahead, but some tip the shares to jump another 25% to $10.42 by this time next year.

Citi reaffirmed its buy rating on the ASX 200 energy share following its half-year update. The broker also increased its target price to $9, which is a little above the average.

Morgans maintained its hold rating on Santos shares following the announcement. The broker noted that the results beat estimates, but that it is impossible to quantify the risks posed by the Federal Government’s gas reservation policy ahead of its release. 

The post Santos shares rebound 8% in a month: Buy, sell or hold? appeared first on The Motley Fool Australia.

More reading

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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 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 gold shares have had a strong month, and Morgan Stanley thinks investors may have another reason to keep watching the sector.

Aussie gold stocks have jumped 33.9% over the past month, lifting the sector’s weight in the S&P/ASX 200 Index (ASX: XJO) to around 6.1%.

The gold price has been doing a lot of the work. Spot gold is trading around US$4,456 an ounce at the time of writing, up almost 10% over the past month.

However, Morgan Stanley says the bigger story for miners could be the amount of cash they are set to generate.

Plenty more cash ahead

The broker expects the top 10 Australian gold miners to generate significantly more cash through to FY29.

If that plays out, companies could have more room to lift dividends, expand share buybacks, or strengthen their balance sheets.

Of course, a lot will depend on where the gold price goes next.

The market is currently pricing in a fairly big pullback, with consensus forecasts pointing to gold falling towards US$4,000 an ounce by FY29.

Morgan Stanley is more positive than that. Its commodities team expects gold to be around US$4,450 an ounce by late 2026 and believes it could trade above US$5,000 during 2027.

There are also some decent signs on the demand side.

According to The Australian, gold ETFs attracted around 70 tonnes across July and August, reversing the outflows seen in May and June.

Central banks have also stayed active, buying 345 tonnes in the first half of 2026, with China and Poland among the larger buyers.

If that demand holds up and gold prices stay around current levels, the cash flowing through the sector could remain pretty strong.

Northern Star is already returning cash

Northern Star Resources Ltd (ASX: NST) shares are up 0.68% to $23.60 at the time of writing and have gained around 18.6% over the past month.

Its FY26 result showed what a higher gold price can do, with revenue rising 19% to $7.62 billion and underlying EBITDA increasing 22% to $4.27 billion.

Northern Star declared a fully-franked final dividend of 30 cents per share and has also started a $500 million on-market share buyback, with $129 million completed by the FY26 result.

However, the company is still spending heavily, with FY27 capital investment expected to reach $2.55 billion to $2.94 billion as the KCGM expansion ramps up.

Evolution has taken it further

Evolution Mining Ltd (ASX: EVN) shares are up 0.24% to $14.915 and have climbed more than 32% over the past month.

The miner reported record FY26 group cash flow of $1.39 billion, up 76%, and increased its dividend payout target to around 60% of annual group cash flow.

That helped lift its full-year dividend to a record 41 cents per share.

Keep in mind that gold prices can still move quickly, particularly as interest rate expectations change.

But if Morgan Stanley is right, ASX gold miners could have a lot more cash to return to shareholders over the coming years.

The post ASX gold shares have surged 34% in a month. Morgan Stanley says this could come next appeared first on The Motley Fool Australia.

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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.

The S&P/ASX 200 Index (ASX: XJO) is heading lower again on Tuesday as investors start September on the back foot.

At the time of writing, the benchmark index is down 0.31% to 9,048 points after falling as low as 9,023 points earlier in the session. That briefly put the ASX 200 at its lowest level in around 2 weeks.

The weakness is fairly broad, with 105 of the top 200 shares falling, 84 rising, and 11 unchanged at the latest count.

So, what is behind today’s move?

Bond yields and rates are back in focus

Wall Street gave the ASX 200 a weak lead overnight, with the Dow Jones Industrial Average Index (DJX: .DJI) falling 0.7%, the S&P 500 Index (SP: .INX) dropping 0.33%, and the Nasdaq Composite Index (NASDAQ: .IXIC) slipping 0.12%.

Higher oil prices and rising bond yields didn’t help.

Brent crude moved back above US$90 a barrel as fighting between the US and Iran picked up again, adding to concerns that higher energy prices could keep inflation elevated.

Bond yields are also moving higher. Australia’s 10-year government bond yield has climbed to around 5.19%, its highest level in 15 years, while the US 10-year Treasury yield is above 4.75%.

Interest rates are also back in the conversation again.

ANZ Group Holdings Ltd (ASX: ANZ) now expects the RBA to lift the cash rate by 25 basis points to 4.60% in November, citing persistent inflation and resilient household spending.

That follows a stronger-than-expected July inflation report, while the latest ANZ-Roy Morgan survey showed consumer confidence falling 2.6 points to 74.9 last week.

Ex-dividend moves are adding to the decline

Part of today’s fall also comes down to several large ASX 200 shares trading ex-dividend.

That means investors buying the shares today won’t receive the latest dividend, which can see the share price fall by roughly the value of the payout.

Wesfarmers Ltd (ASX: WES) shares are down 3.89% to $76.35, Woolworths Group Ltd (ASX: WOW) shares have dropped 2.70% to $39.22, while Fortescue Ltd (ASX: FMG) shares are 2.03% lower at $17.34.

Resources are limiting the damage

It isn’t all red across the market, with higher commodity prices helping several large resource shares.

Woodside Energy Group Ltd (ASX: WDS) shares are up 1.85% to $33.02, and Santos Ltd (ASX: STO) shares have gained 2.21% to $8.32 as oil prices rise.

BHP Group Ltd (ASX: BHP) shares are also 0.59% higher at $66.62, while Rio Tinto Ltd (ASX: RIO) shares have added 0.50% to $175.68.

That support has helped keep the ASX 200 above 9,000 points, after it briefly moved closer to that level earlier in the session.

The post The ASX 200 is falling again. What’s behind the sell-off? appeared first on The Motley Fool Australia.

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

S&P/ASX All Ords Index (ASX: XAO) shares are 0.3% lower at 9,240.3 points on Tuesday.

With earnings season now over, brokers have updated their ratings and 12-month price targets on hundreds of ASX shares.

Top broker Morgans reckon these three ASX shares are going to rip over the next year.

Here’s why.

Airtasker Ltd (ASX: ART)

The Airtasker share price is 22 cents, down 2.3% today and down 46% over 12 months.

Morgans kept its buy call on this ASX communications share after reviewing Airtasker’s FY26 report.

The broker has a 12-month price target of 47 cents, suggesting a potential near-120% upside ahead.

Morgans said:

Airtasker’s (ART) FY26 result was broadly in line with our expectations.

Group revenue grew ~10% on pcp to A$57.8m (marketplaces revenue ex-OneFlare +15.5% to A$52m), and its earlier stage offshore marketplaces (UK/US) showed accelerating momentum and strong topline growth (+55%/150% respectively).

ART also announced media deals with OML and Nova, extending the brand investment runway (media inventory to deploy from FY27 now ~A$24m).

betr Entertainment Ltd (ASX: BBT)

The betr Entertainment share price is steady at 20 cents on Tuesday, and down 33% over 12 months.

Morgans reiterated its buy rating on this ASX retail share after the company’s FY26 results.

The broker has a target price of 36 cents, implying a potential 80% upside over the next year.

Morgans said:

BETR Entertainment (BBT) finished the year strongly, with normalised EBITDA of $6.1m in the second half against guidance of $5m to $8m, a $19.3m swing on the first half.

Full year normalised EBITDA of -$7.1m was a touch below our -$6.2m, with a gross profit beat offset by a higher cost of doing business.

Encouragingly, current trading remains healthy. Through the first eight weeks of FY27, turnover is up more than 20%, new customers have almost doubled, CPA is down 31% and promotional cost is down 9%, all excluding the FIFA World Cup.

The company announced the launch of its new first to market ‘Wildcards’ same game multi (SGM) feature that will launch during the Wildcard AFL round this weekend.

Mach7 Technologies Ltd (ASX: M7T)

The Mach7 Technologies share price is steady at 28 cents today, and down 10% over 12 months.

Morgans reaffirmed its buy rating on the ASX healthcare share after reviewing Mach7’s FY26 report.

The broker raised its 12-month price target from 44 cents to 48 cents.

This suggests a potential 70% upside ahead.

Morgans said:

The market should be broadly comfortable with the result given recent trading updates, but new contract delivery remains the key requirement before investors are likely to begin marking the stock materially higher.

Revenue and OPEX landed broadly in line with guidance, while the NPAT miss was driven by a A$1.9m restructuring charge and a weaker tax benefit rather than deterioration in the core subscription business.

Moderate increase in target price due to model roll-forward, lower share count, and leaner-than-expected cost base.

Upside potential to target presents an opportunity but needs new contract momentum to spark renewed interest.

The post 3 ASX shares tipped by broker to rise 70% to 120% appeared first on The Motley Fool Australia.

More reading

• 4 ASX All Ords shares with 40% to 90% upside post-results: experts

Motley Fool contributor Bronwyn Allen 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 Mach7 Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker. 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.

Fortescue Ltd (ASX: FMG) shares have fallen to a new 52-week low on Tuesday.

At the time of writing, the Fortescue share price is down 2.37% to $17.28 after briefly touching $17.10 earlier this morning.

There’s a pretty simple explanation behind much of today’s fall. Fortescue is trading ex-dividend for its 46-cent fully franked final dividend, which is due to be paid later this month.

Still, today’s move continues what has been a difficult year for shareholders.

Fortescue shares are now down around 21% since the start of 2026 and have fallen roughly 6.7% over the past month.

So, with the shares back at their lowest level in a year, is this starting to look like a buying opportunity?

A rough few months

Fortescue shares were trading above $22 in late May before beginning their latest slide.

The stock has struggled to regain momentum since then and entered September close to the bottom of its 52-week range.

Today’s ex-dividend move needs to be kept in context. The shares closed at $17.70 yesterday and investors buying from today will no longer receive the 46-cent final dividend.

Looking beyond today’s price swing, Fortescue recently reported FY26 underlying EBITDA of US$8.6 billion, up 9%, and underlying net profit rose 9% to US$3.5 billion.

Free cash flow increased 25% to US$3.2 billion, while iron ore shipments reached a record 201.3 million tonnes.

What do brokers think?

Despite the weaker share price, brokers remain fairly cautious.

According to TipRanks, the average 12-month price target across 11 analysts is $17.95. That’s only around 4% above the current Fortescue share price.

There are currently 2 ‘buy’ ratings, 6 ‘holds’ and 3 ‘sells’.

Morgan Stanley is one of the more bearish brokers. It reiterated its ‘sell’ rating on Tuesday with a $15.45 price target, implying downside of around 11% from current levels.

At the other end, Macquarie has a ‘buy’ rating and $20 target, while Ord Minnett is also positive with a $19.50 target.

Is it time to buy Fortescue shares?

The falling share price has certainly made Fortescue look cheaper than it did a few months ago.

The company paid $1.08 per share in fully franked dividends across FY26. Based on the current share price, that represents a trailing dividend yield of around 6.3%.

But brokers don’t see a huge amount of upside on average, and the shares have remained in a clear downtrend since May.

That leaves investors with a mixed picture. The shares are cheaper and the dividend yield looks decent, but brokers are hardly rushing to call the stock a bargain.

A lot will depend on whether Fortescue can keep producing strong cash flow from here.

The post Fortescue shares just hit a 52-week low. Is it time to buy? appeared first on The Motley Fool Australia.

More reading

• Don’t panic if these 9 ASX 200 shares fall today
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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.

The S&P/ASX Small Ords Index (ASX: XSO) is down 9% in the calendar year to date (YTD) and up 3% over the past month.

Meanwhile, the S&P/ASX All Ords Index (ASX: XAO) has risen 2% in the YTD and is 0.5% higher over the past month.

This week on The Bull, two experts offer their latest ratings and insights on 3 ASX small-cap shares.

Advanced Engineered Materials Ltd (ASX: AEM)

AEM produces high purity alumina (HPA) and has production facilities in Quebec, Canada.

The Advanced Engineered Materials share price is steady at 35 cents on Tuesday, and down 43% over 12 months. 

Jonathan Tacadena from MPC Markets has a buy rating on this ASX small-cap materials share. 

Tacadena said: 

HPA is a specialised form of aluminium oxide, which is a critical input for a range of commercial applications, including electronics, semi-conductors and lithium-ion batteries.

The Quebec plant operates a patented low-cost process and is expanding production.

AEM continued to increase production in the first half of 2026 and unaudited revenue was up 85 per cent on the prior corresponding period.

In our view, the stock is trading at a discount and offers good value.

Kina Securities Ltd (ASX: KSL)

KSL is Papua New Guinea’s second largest commercial bank and financial services company, and its biggest wealth manager.

The Kina Securities share price is $1.20, down 0.4% today and down 8% over 12 months. 

Remo Greco from Sanlam Private Wealth has a buy call on this ASX small-cap financial share. 

Greco said: 

Substantial resource development is driving strong lending growth.

The bank’s strong capital base is poised to generate growth and increase its market share. 

In July, the company forecast net profit after tax to increase between 15 per cent and 20 per cent for the financial year ending December 31, 2026.

KSL’s dividend yield is also appealing as it was recently trading above 7.5 per cent.

Metrics Master Income Trust (ASX: MXT)

Metrics Master Income Trust is a non-bank corporate lender and alternative asset manager.

The Metrics Master Income Trust share price is $1.89, down 0.8% today and down 8% over 12 months. 

Greco has a sell rating on this ASX small-cap income share.

He explained: 

MXT … specialises in fixed income, private credit, equity and capital markets.

The trust allocates capital across corporate loans and other income producing assets to pay its investors a regular income.

Our concern is a weakening economy operating under the weight of persistent inflation, stubbornly high interest rates and recent tax changes announced in the federal budget that could penalise capital growth.

The company’s listed price can be volatile.

The post 2 ASX small-cap shares to buy and 1 to sell: Experts appeared first on The Motley Fool Australia.

More reading

• Kina Securities lifts profit and dividend in half-year 2026 earnings
• 2 ASX dividend shares yielding 8% (or higher)
• Metrics Master Income Trust posts unfranked August 2026 distribution

Motley Fool contributor Bronwyn Allen 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.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.33% at 9,046 points on Tuesday.

With reporting season now wrapped up, a number of companies have been downgraded by the experts following their FY26 results.

Let’s find out why Morgans cut its ratings on the following 5 ASX shares.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $63.76, down 1.4% today and up 73% over 12 months. 

Morgans lowered its rating on this ASX 200 mining share from buy to accumulate after reviewing the FY26 numbers.

The broker raised its 12-month share price target from $68 to $71.

This implies an 11% potential upside ahead.

Morgans said:

MIN delivered a strong FY26 result and FY27 guidance. Underlying NPAT was an 8% beat vs expectations and MIN declared a final dividend of 83cps (vs consensus 7.4cps).

The stock gave back its early gains post the conference call after MIN flagged copper as a next potential growth pathway which we think unsettled some investors.

South32 Ltd (ASX: S32)

The South32 share price is $5.24, up 1.5% today and up 92% over 12 months.

Morgans downgraded the ASX 200 mining share from accumulate to hold following South32’s FY26 report.

The broker increased its 12-month price target from $4.70 to $4.90.

This suggests a potential 6% downside ahead.

Morgans said:

S32 delivered a broadly in line FY26 result, with FY27 guidance on unit cost and capex reflecting existing market expectations of continued cost pressure.

Don’t count on S32 returning a meaningful part of the Alcoa deal proceeds, with the company going as far as talking down its commitment to its ordinary dividend.

Similar to some of its peers, S32’s earnings have enjoyed a healthy upcycle, our concern is that it is starting to increasingly look factored in (while the company arguably swaps its earnings clout for a mid-cycle M&A war chest post Alcoa deal).

With S32’s share price outperforming even its pure-copper ASX peers year-to-date on larger cycle leverage, we downgrade our rating to HOLD (from Accumulate).

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is $11.66, up 0.4% today and up 44% over 12 months.

Morgans downgraded the ASX 200 energy share from buy to accumulate following the uranium miner’s FY26 results.

The broker has a 12-month price target of $14.10, implying a 20% upside from here.

Cash is starting to flow — PDN delivered positive operating cash flow for the first full year since the restart, generating US$38m in FY26 and marking the transition from ramp-up story to steady-state and cash-generating producer.

Guidance beaten across the board – Langer Heinrich Mine (LHM) exceeded FY26 production, sales and cost guidance, providing further evidence that the operation can sustainably deliver and continues to build momentum as it enters more steady state operations.

Following recent share price strength, we move to an ACCUMULATE (previously BUY) with an increased price target of A$14.10ps.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is $24.73, down 3.9% today and down 41% over 12 months.

Morgans downgraded the ASX 200 retail share from buy to accumulate after its FY26 report.

The broker shaved its 12-month price target from $32.50 to $31.

This indicates potential capital gains of 25% over the next year. 

Morgans said:

LOV delivered a strong FY26 result, with EBIT up 14.1%, ~4.5% ahead of consensus. Excluding estimated ~$22m of EBIT losses from Jewells UK, the underlying business would have grown just shy of 30% yoy.

The global store rollout continues, opening 160 stores in FY26, with management expecting a similar number in FY27.

Trading in the first 8 weeks of FY27 was positive (+3% LFL), against a challenging comp in the pcp (+5.6%).

Our valuation lowers to $31.00 and we move to an ACCUMULATE (from BUY) following recent strength in the share price.

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is $2.72, down 1.6% today and down 36% over 12 months.

Morgans downgraded the ASX 300 healthcare share from buy to accumulate after reviewing Nanosonics’ FY26 report.

The broker lowered its 12-month price target from $4 to $3.50.

This suggests a potential near-30% upside ahead.

Morgans said:

Mixed result. Our key focus was whether 2H delivered the guided growth acceleration, it didn’t, but trophon-only earnings confirmed the core business remains in excellent health regardless of the group-level miss and near-term OPEX requirements for the CORIS launch.

Trophon’s demonstrated EBIT growth ex-CORIS underwrites the thesis regardless of near-term CORIS spend, and the FY27 guidance step-down reads to us as front-loaded investment to land the launch properly, not any deterioration in the longer-term opportunity.

The post 5 ASX shares downgraded by Morgans post-results appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: South32, Mineral Resources, BHP shares
• Buy, hold, sell: Mineral Resources, Ansell, CBA shares
• These are the 10 most shorted ASX shares
• ASX 200 mining shares outperform in final week of earnings season
• 3 ASX mining stocks UBS rates as a buy

Motley Fool contributor Bronwyn Allen 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 Lovisa and Nanosonics. The Motley Fool Australia has recommended Lovisa and Nanosonics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.