Author: openjargon

Weebit Nano Ltd (ASX: WBT) shares are having another huge session on Thursday.

The semiconductor technology stock is up 13.64% to $6.83 at the time of writing.

Earlier today, it climbed as high as $6.94. The last time Weebit Nano shares traded at that level was in June 2023.

The move caps off a powerful run for shareholders. The stock is now up almost 70% this month and more than 300% over the past year.

So, what has investors piling back into this ASX tech stock?

Why Weebit Nano shares are hot again

Weebit Nano has been gaining attention because of progress with its semiconductor memory technology.

The company develops ReRAM, which stands for Resistive Random-Access Memory.

This type of memory is designed to keep data without power, while using less energy than some existing memory technologies.

Its technology gives investors exposure to several high-growth markets, including AI, connected devices, cars, robotics, and industrial automation.

That gives the stock exposure to several high-growth technology markets.

Investors have also been watching the company’s move from development towards commercial use.

Earlier this month, Weebit Nano said two product customers had successfully taped-out chip designs using its ReRAM module.

Tape-out means a chip design has been released to manufacturing.

One of those customers has already produced a functional prototype.

Both customers are now expected to continue testing before any move into broader production.

The rally is back on track

The speed of the rally has also been difficult to miss.

Weebit Nano shares were trading as low as $3.87 in late April. Less than a month later, they have now traded as high as $6.94.

The company also recently completed a strongly supported share purchase plan (SPP), raising about $15 million from eligible shareholders.

But the share price did not rally straight away after that update.

Weebit Nano closed at $6.80 last Thursday, then fell for 3 straight sessions. The stock dropped 5% on Monday, 1.39% on Tuesday, and 5.65% on Wednesday to finish at $6.01.

Today’s rebound suggests investors are looking beyond the recent capital raising and focusing again on the company’s commercial progress.

Foolish bottom line

Weebit Nano remains a high-risk tech stock, but investors are clearly chasing its momentum again.

The business is still at the stage where customer milestones and commercial progress can move the share price quickly.

But the next test is whether this recent progress can eventually turn into meaningful commercial revenue.

The post Up 300% in a year, this ASX tech stock just hit its highest level since 2023 appeared first on The Motley Fool Australia.

More reading

• Are these ASX shares a buy, hold or sell after rocketing to record highs last week?
• Why did shares in this ASX technology company surge more than 20%?
• Up 211% in a year, why are Weebit Nano shares rocketing another 12% today?
• Why Brainchip, Minerals 260, Nuix, and Weebit Nano shares are racing higher today

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.

If you are searching for outsized returns for your portfolio, then it could be worth considering the two ASX shares in this article.

They have just been given buy ratings by Morgans and could be destined to rise 12% or more from current levels according to the broker.

AVITA Medical Inc (ASX: AVH)

Morgans was pleased with this medical device company’s first-quarter update and believes it was a step in the right direction.

The broker appears to believe that this could be a sign that the worst is now behind the ASX share. However, it does have a few concerns over its balance sheet. It said:

AVH released its 1Q26 result which was a clear step-in the right direction with solid QoQ growth with FY26 guidance reaffirmed, but cash balance remains the key gating factor for further positivity and its biggest near-term risk.

Operationally though it appears the worst is behind them now with the cost base reset sticking and now all 7 Medicare Administrative Contractors (MACs) now publishing RECELL reimbursement rates which fully closes the structural headwind which has plagued the stock over the last 18 months. Marginally more positive, but equally happy to keep holding out until cash is addressed properly. No change to our Speculative Buy recommendation or A$1.35 DCF-based valuation.

Morgans has a speculative buy rating and $1.35 price target on its shares. Based on its current share price, this implies potential upside of 12.5% over the next 12 months.

Qualitas Ltd (ASX: QAL)

Morgans is positive on this real estate investment company and has named it as an ASX share to buy this week.

It has boosted its valuation for the company on the belief that risks are easing now. It explains:

Following QAL’s recent 3QFY26 update, the announced changes to residential real estate investment in the Federal Budget and the sale of a further interest in the comparable Metrics Credit, we have upgraded QAL to a BUY with a $3.50/sh price target.

Our valuation and recommendation change was driven almost entirely by a reduction to our discretionary valuation discount (+75 cps), reflecting our lower perceived risk as a) the company reiterates that FUM commitments continue to increase and b) FUM deployments set new records.

Morgans has a buy rating and $3.50 price target on Qualitas’ shares. Based on its current share price, this implies potential upside of just over 20% for investors between now and this time next year.

The post Morgans says these ASX shares could rise 12% to 20% appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares Morgans rates as buys this week
• Are these ASX small-cap shares a buy, hold or sell according to Bell Potter?

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1.65% to 8,637.1 points.

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

Contact Energy Ltd (ASX: CEN)

The Contact Energy share price is down 6% to $7.70. This follows news that major shareholder Infratil Ltd (ASX: IFT) has completed the sale of a 5% stake in the energy company. Infratil’s CEO, Jason Boyes, advised that the transaction would provide additional flexibility to fund future growth opportunities. He said: “We received our initial stake in Contact as part of the sale of Manawa Energy in July 2025 and we remain confident in Contact and the sector’s outlook. While we have no immediate funding requirements and our divestment programme is on track, we consider it prudent to reposition this capital now. This means we’re well prepared to support future growth opportunities across our portfolio.”

IPD Group Ltd (ASX: IPG)

The IPD Group share price is down 11% to $5.50. Investors have been selling this electrical solutions provider’s shares following the release of guidance for FY 2026. IPD advised that it expects FY 2026 underlying EBITDA of between $54.5 million and $55.3 million. This represents growth of around 18% at the midpoint compared with FY 2025 statutory EBITDA. However, this seems to have fallen short of the market’s expectations for the year.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 2% to $19.00. This has been driven by news that the gold mining giant’s CEO is stepping down. The company’s managing director, Stuart Tonkin, has advised the board of his intention to step down during the first quarter of FY 2027. Tonkin has been with Northern Star for 13 years. He said: “After 13 years leading Northern Star through significant growth, I’m proud to leave the Company in an exceptional position. The team, the assets and the outstanding growth outlook is unique and after many years of rewarding challenges, I have decided to step down.”

Tower Ltd (ASX: TWR)

The Tower share price is down 7% to $1.57. This morning, the New Zealand-based insurance company announced its half-year results and reported a 40% decline in underlying net profit after tax to NZ$36.8 million. Management advised that this half “compares against an exceptionally strong prior-year half, which benefited from unusually benign weather conditions and favourable claims experience.”

The post Why Contact Energy, IPD, Northern Star, and Tower shares are sinking today appeared first on The Motley Fool Australia.

More reading

• Why Zip, Contact Energy and Northern Star shares are making headlines on Thursday
• Up 60% in a year, so why is this ASX stock tumbling 8% today?
• What’s going on with Northern Star shares today?
• Contact Energy shares resume trading after 5% stake sale
• Northern Star Resources announces CEO succession plan

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 positions in and has recommended Ipd Group. The Motley Fool Australia has positions in and has recommended Ipd Group. 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 pushing higher on Thursday after a surprise jobs report changed the interest rate debate.

At the time of writing, the ASX 200 is up 1.66% to 8,637.8 points.

The move comes after Australia’s labour market showed more weakness than economists had expected.

Instead of adding jobs in April, the country recorded a fall in employment. The unemployment rate also jumped to its highest level since late 2021.

So, does that mean the Reserve Bank of Australia (RBA) still has enough reason to raise interest rates again?

Here are the key numbers from today’s jobs report.

The jobs numbers behind the move

According to the Australian Bureau of Statistics (ABS), employment fell by 18,600 people in April to 14.74 million.

The unemployment rate rose from 4.3% to 4.5%, while the participation rate eased to 66.7%.

Full-time employment fell by 10,700 and part-time employment was down 7,900. But hours worked still rose by 15.8 million hours, or 0.8%, over the month.

While the employment numbers were weaker than expected, the rise in hours worked suggests businesses are still leaning on their existing staff.

Why June now looks less certain

The RBA lifted the cash rate by 25 basis points to 4.35% at its May meeting, marking its third and painful hike of 2026.

The central bank is still trying to bring inflation lower while keeping the jobs market as strong as possible.

Before today’s data, investors were still weighing up whether another rate hike could arrive as soon as June.

But today’s weaker jobs report makes that harder to call.

Reuters reported that market pricing for a June rate hike fell after the data, with traders seeing a lower chance of the RBA moving again next month.

Australian bond yields also moved lower, while the Australian dollar weakened after the report was released.

Furthermore, the ASX 200 has also risen as investors price in a lower near-term risk from higher interest rates.

Foolish bottom line

A lower chance of a near-term rate hike can support the share market because it reduces some pressure on valuations.

It can also help rate-sensitive parts of the market, including property stocks, infrastructure, and consumer-facing companies.

But investors are not getting off that easily.

Inflation is still above the RBA’s target band, and energy prices remain a risk. The RBA may decide the labour market has softened enough to wait, but it’s unlikely to declare the inflation fight is over.

Some economists still expect another hike later this year. Others now see the RBA staying on hold for a bit longer.

The post Will the RBA still hike rates after this shock jobs report? appeared first on The Motley Fool Australia.

More reading

• Up 300% in a year, this ASX tech stock just hit its highest level since 2023
• Morgans says these ASX shares could rise 12% to 20%
• Why Contact Energy, IPD, Northern Star, and Tower shares are sinking today
• Why Brightstar, Catapult Sports, IperionX, and Zip shares are charging higher
• Up 5%: Here’s how the IPO of SkinKandy shares is going

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 back on form and storming higher on Thursday. In afternoon trade, the benchmark index is up 1.5% to 8,626.4 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are charging higher:

Brightstar Resources Ltd (ASX: BTR)

The Brightstar Resources share price is up 7.5% to 36 cents. This morning, the gold developer revealed that construction of the Goldfields Project is set to commence, with a final investment decision expected this month. And if everything goes to plan, first gold is expected in the June quarter of 2027. Brightstar’s managing director, Alex Rovira, commented: “We are excited by the strong momentum building across our Goldfields Project. With all critical workstreams aligned, the platform is set for us to execute on the next phase of our growth plans. The receipt of final approvals will position Brightstar to execute the full EPC contract and declare final investment decision this month to move into construction of the 1.5Mtpa Laverton Processing Plant.”

Catapult Sports Ltd (ASX: CAT)

The Catapult Sports share price is up a further 13% to $3.83. This sports technology company’s shares have rallied this week following the release of its FY 2026 results. Bell Potter responded positively to the result. This morning, the broker retained its buy rating on Catapult’s shares with an improved price target of $4.65. Bell Potter said: “FY26 management EBITDA – the key earnings metric – of US$24.7m was 8% above our forecast of US$23.0m and 10% above consensus of US$22.4m. Notably, the guidance was 50% growth and it came in at 67%. The beat was driven by a 2% beat at revenue (US$140.7m vs BPe US$137.9m) and a 90bp beat at the margin (17.6% vs BPe 16.7%).”

IperionX Ltd (ASX: IPX)

The IperionX share price is up 4% to $4.86. This morning, the titanium alloys producer announced the successful commissioning of a cutting-edge six-axis powder metallurgy press at its Titanium Manufacturing Campus. The company’s CEO, Anastasios Arima, said: “Commissioning this advanced SACMI press is an important milestone for IperionX. It gives us greater titanium manufacturing capacity and more flexibility to manufacture a wider range of titanium components for customers in defense, aerospace and industrial markets.”

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 4% to $2.29. Investors have been buying the buy now pay later provider’s shares after it announced an agreement to continue using the Zip name in the Australian market. Earlier this month, Zip revealed that it would have to rebrand after losing a court case. However, it has now agreed to acquire the trademark from Firstmac for an undisclosed amount. It said: “While the terms of the settlement agreement are otherwise confidential, Zip has no further liability for damages or costs in relation to Firstmac’s proceedings and Zip confirms that the amount payable under this settlement is not material to the Zip Group and does not affect Zip’s FY26 guidance.”

The post Why Brightstar, Catapult Sports, IperionX, and Zip shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Why Zip, Contact Energy and Northern Star shares are making headlines on Thursday
• Buying Zip shares? Here’s why the ASX BNPL stock is rocketing higher today
• Is this ASX tech stock a buy after rocketing 18% yesterday?
• Guess which ASX 200 stock is lifting off today on a major US milestone
• IperionX expands U.S. titanium manufacturing with new six-axis press

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

It’s not too often that the ASX sees an initial public offering (IPO). IPOs do roll around from time to time. But they are still rare enough that when one does happen, ASX investors like to take the proverbial popcorn out and watch what happens. As it happens, today has seen an ASX IPO. Shares of SkinKandy Ltd (ASX: SK1) have just hit the public markets for the first time.

If you haven’t heard of this company, SkinKandy is a fashion, jewellery, and body piercing company founded in 2010. It now has 100 stores across Australia and New Zealand. The company plans to use the money raised from its IPO today to continue its successful expansion.

SkinKandy floated at $2.20 a share this morning, raising $160 million for a market capitalisation of $245.7 million.

Before we get into how SkinKandy shares are faring on the first day of stock market trading, let’s go through some of this company’s numbers.

As is typical when a stock floats on the public markets, SkinKandy has just released some of its past financial results.

The numbers for FY 2025 were particularly interesting. For the 12 months to 30 June 2025, SkinKandy reported $77.78 million in revenue, up 38.8% from FY 2024’s numbers. That’s with a 21-store increase over the financial year. Gross profits were also up 39.8% to $64.36 million, while net profit after tax jumped 33.3% to $8.13 million.

$3.75 million worth of dividends were also paid out over the financial year. Another $4.5 million in dividends were paid out in September last year, too. However, as is always the case with an ASX share, there are no guarantees that SkinKandy will continue to pay out dividends going forward.

For FY 2026, SkinKandy has provided a pro forma forecast of $88.7 million in revenue, $79.2 million in gross profit, and $8.6 million in net profit after tax.

How has the IPO of SkinKandy shares gone?

So one can see why investors may be interested in SkinKandy shares. But let’s check out the IPO. So SkinKandy shares hit the ASX boards this morning at $2.20 each. They began trading above the price point, and have stayed in a range of between $2.25 and $2.34 all session. At the time of writing, the company is up a healthy 4.99% at $2.31 a share. So we can conclude that the SkinKandy IPO has been a success for investors, at least so far.

Some ASX IPOs do tend to go well initially, but slump once investors lose that initial enthusiasm. Guzman y Gomez Ltd (ASX: GYG) is a prime example. GYG shares floated almost two years ago, back in June of 2024. For the first six months of public life, the company soared, rocketing from $29 a share in June to over $43 by November. However, GYG is, today, under $18 a share.

Investors will no doubt be hoping that SkinKandy shares don’t tread the same path. But we shall have to wait and see what happens.

The post Up 5%: Here’s how the IPO of SkinKandy shares is going appeared first on The Motley Fool Australia.

More reading

• Why Brightstar, Catapult Sports, IperionX, and Zip shares are charging higher
• Why is everyone talking about DroneShield shares this week?
• Why this ASX REIT is climbing despite a rough year
• Why Zip, Contact Energy and Northern Star shares are making headlines on Thursday
• Could these ASX growth shares help you retire rich?

Motley Fool contributor Sebastian Bowen 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 catching a lot of attention this week.

At the time of writing on Thursday afternoon, the shares have jumped 6.71% % higher and are trading at $3.02 a piece. 

Today’s share price spike is good news for the counter-drone operator, after its shares swung significantly over the past week, ranging from $3.37 to $2.36.

Droneshield shares are down 22% over the past month and 10% year to date. However, the share price is still a huge 153% higher than this time last year.

Why are DroneShield shares in the spotlight this week?

DroneShield shares climbed higher during the first week of May, but then took a U-turn.

The share price decline picked up pace on Tuesday last week after the company announced that the Australian Securities and Investments Commission (ASIC) had requested DroneShield to provide reasonable assistance in connection with an investigation under the Corporations Act.

The investigation relates to announcements and information provided to the ASX in November 2025, as well as trading in DroneShield shares the same month. The company said it will cooperate fully and that it is unclear what action, if any, may result.

Investors weren’t happy with the notice.

Governance issues and regulatory investigations generally weigh heavily on investor confidence, especially for growth stocks where sentiment is already important.

Why are the shares rebounding today?

There isn’t any price-sensitive news out of DroneShield today to explain the latest increase, so it’s likely sentiment-driven. 

The company delivered record first-quarter FY26 revenue and customer cash receipts, announcing increases of 121% and 360%, respectively.

DroneShield said repeat and new orders flowed steadily through the quarter, driving a $59 million increase in committed revenue since the start of 2026. 

Its pipeline going forward is huge, too. Amid the results announcement, DroneShield confirmed that the business is now sitting on its largest-ever sales pipeline, valued at $2.2 billion across 312 projects in over 60 countries.

A broad improvement in sentiment across the S&P/ASX 200 Index (ASX: XJO) could also be supporting DroneShield’s share price value improvement today. For context, the index is up 1.7% at the time of writing, with gains seen across 168 of the 200 largest ASX shares.

It’s expected that investors are buying back into DroneShield’s growth fundamentals today after the share price dip.

What’s next for DroneShield shares?

The experts are divided about what we can expect next from DroneShield shares. 

TradingView data shows two analysts’ ratings – one is a strong buy, and the other is a hold. The average target price is $4.10, which implies a potential 36% upside over the next 12 months.

The post Why is everyone talking about DroneShield shares this week? 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. 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.

Abacus Group Ltd (ASX: ABG) shares are back trading higher today after the company responded to market speculation.

The Abacus share price was paused in early morning trade while investors waited for a response from the property group.

Trading has since resumed, with the stock up 2.5% to $1.02 at the time of writing.

Even after today’s bounce, it has still been a difficult year for shareholders. Abacus shares are down around 15% in 2026.

Let’s take a closer look at what happened.

Abacus responds to media reports

The move follows an article in The Australian, which reported Abacus Group was set to sell its $300 million-plus stake in Abacus Storage King.

According to the report, Morgan Stanley had been working on a plan to sell down Abacus Group’s almost 20% stake in the listed storage group.

The Australian said billionaire Nathan Kirsh was expected to acquire half of the stake, while the rest would be placed with institutional investors.

Kirsh is already a major player in Abacus Storage King, with the report saying he owns about 40% of the stock directly.

A sale would have marked another big step in the separation between Abacus Group and Abacus Storage King.

But Abacus has now cooled some of that speculation.

In its ASX release today, Abacus said the “Morgan Stanley transaction has not proceeded”.

It also said there were no discussions with Charter Hall Group (ASX: CHC).

The company added that it regularly reviews strategic opportunities and would update the market in line with its disclosure obligations.

What investors are weighing up

The interest makes sense, given Abacus has been going through a major reshaping.

Abacus Storage King was split out from Abacus Group in 2023, creating two separate ASX-listed groups.

More recently, Abacus Group brought the management of Abacus Storage King in-house.

The Australian said this left Abacus with a smaller and cleaner structure, including office assets worth about $1.5 billion and two retail properties worth about $419 million.

The report also said proceeds from any stake sale had been expected to reduce debt, potentially lowering gearing from 34% to somewhere in the 15% to 20% range.

Still with the stock still under pressure, shareholders are looking for anything that could unlock value. A cleaner structure or lower debt load would give the market something new to work with.

It can also raise the possibility of capital management, asset sales, or a broader corporate move.

Charter Hall speculation adds another angle

Charter Hall is the other name sitting in the background.

The Australian reported Charter Hall has been steadily building its position in Abacus Group, with its stake now above 5.8%.

The report said this has brought up questions about whether Charter Hall could eventually make a move on the company.

Abacus has pushed back on that part of the speculation, saying there are no discussions with Charter Hall.

The post This ASX property stock is rising after takeover speculation heats up appeared first on The Motley Fool Australia.

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• Are CBA, Westpac, NAB and ANZ shares heading for more pain?
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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.

Shares in James Hardie Industries Plc (ASX: JHX) fell earlier this week when the company reported its full year results, and on the face of it it’s not hard to see why.

While net sales came in at US$4.84 billion, net profit attributable to shareholders was down 75% to US$104 million.

However, the analyst teams at Macqaurie and Morgans have had a closer look at the results, and like what they see.

We’ll get to what they are saying later. Firstly let’s have a closer look at the James Hardie result.

Underlying results solid

Chief Executive Aaron Erter made the point that the company exceeded expectations in terms of underlying earnings.

As he said:

We delivered Adjusted EBITDA above our guidance range in the fourth quarter, reflecting disciplined execution and the strength of our business model in a challenging operating environment. Despite unfavourable weather in February and early March that impacted reported results and disrupted construction activity across key regions, the business delivered underlying performance that exceeded expectations.

Mr Erter said it was a transformational year for the company, including as it did the finalisation of the acquisition of AZEK.

He said the company was continuing to see progress in terms of cost and commercial synergies from that deal, “further strengthening our belief in the long-term value creation opportunity from the combination”.

He added that the company was forecasting another step up in earnings this year.

We also expect a meaningful step-up in Free Cash Flow to greater than $500 million in FY27. This will be driven by higher Adjusted EBITDA as we realize both cost and commercial synergies, a reduction in one-time integration and transaction-related costs, and continued discipline around capital spending and working capital. As these factors come together, cash conversion will improve, giving us greater flexibility to reduce leverage over time.

Shares looking like good value

The analyst team at Macquarie said the company’s results beat expectations at an EBITDA level, and James Hardie’s cost and operational execution was “solid”.

Macquarie said James Hardie was expecting soft, but stabilising conditions in the US which was a negative, and downgraded their price target on the company from $41.10 to $39.60, still well above the current price of $28.43.

The team at Morgans has a price target on James Hardie shares of $39, reduced from $45.75 following the results announcement.

They note that while there is persistent softness across key markets, the company is fundamentally sound.

They said:

We continue to view JHX as the highest-quality building products exposure on the ASX with structural advantages in fibre cement and an enhanced footprint in exteriors through AZEK. FY27 should mark an inflection year as organic growth returns, pricing holds, synergies accelerate and leverage normalises. At the current valuation, JHX screens attractively relative to quality and medium-term growth.

The post How high could James Hardie shares go? Brokers have their say appeared first on The Motley Fool Australia.

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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 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.

Virgin Australia Holdings Ltd (ASX: VGN) shares are rocketing higher in Thursday lunchtime trade. At the time of writing, the airline’s shares are up 8.22% and changing hands for $2.44 a piece.

Today’s jump has helped recover some of the losses the stock has shed over the past month, but the share price is still down 30% for the year to date and 25% lower than when the company launched on the ASX in late June last year.

What is driving the airline’s shares higher today?

There isn’t any price-sensitive news out of Virgin Australia today to explain the current share price surge.

However, investors could be flocking to the ASX airline share following an announcement out of Webjet Group Ltd (ASX: WJL) yesterday.

The company announced a change to its commercial agreements with Virgin Australia ahead of the ASX open on Wednesday. 

Webjet said its Webjet Marketing subsidiary has been receiving commission payments from Virgin Australia Airlines and Virgin Australia International Airlines relating to the sale of Virgin flights and ancillaries, along with specified performance targets.

But the online travel agency said that Virgin Australia has told Webjet it will substantially reduce its commission streams and commercial arrangements from the 1st of July 2026.

A turnaround in sentiment could also be supporting Virgin Australia’s share price increase today. Investors are reacting positively to resilient travel demand and stabilising fuel costs. 

There is growing optimism around an imminent peace agreement between the US and Iran, which would help jet fuel supply.

The company also recently confirmed its FY26 guidance, which has helped gather more confidence from investors.

In April, Virgin Australia said its FY26 financial guidance is unchanged. Despite fuel prices almost doubling, the airline said it still expects its underlying EBIT to improve in the second half of FY26.

The airline’s fuel costs are expected to be around $30 million to $40 million above its earlier forecasts. But it has strong hedging (92% of its Brent crude and 71% of refining margin exposure is hedged for the remainder of FY26), which means the group is protected against most price rises. 

Virgin Australia shares have been under pressure this year

The sentiment shift comes on the back of several headwinds facing the airline over the past couple of months.

Ongoing conflict in the Middle East severely restricted the supply of jet fuel (which is derived from refined crude oil). 

The airline has previously raised its domestic airfares in response to rising jet fuel costs in an effort to maintain or even boost revenue. But investors were still concerned about the airline’s operating costs and profits, and many turned their backs on the shares.

Can Virgin Australia shares keep climbing?

Analysts are very bullish about the outlook for the ASX travel stock over the next 12 months.

TradingView data shows that all eight analysts have a buy consensus on the shares. The average $3.59 target price implies a potential 47% upside ahead, at the time of writing. But others think Virgin Australia’s shares have the potential to fly another 70% higher to $4.15.

The post Why are Virgin Australia shares booming 8% higher today? 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 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.