Author: openjargon

Rio Tinto Ltd (ASX: RIO) shares have fallen into the red in Tuesday’s lunchtime trade.

At the time of writing, the miner’s shares are down around 2.5% to $180.07 a piece. The latest fall means the share price has now fallen around 7.5% since spiking to an all-time high of $194.47 earlier this month. At one point this morning, the shares were trading as low as $178.18 each.

Rio Tinto shares have enjoyed a strong rally so far in 2026, up around 22% year to date and 65% higher than a year ago.

This year’s gains have put Rio Tinto in 8th place on the S&P/ASX 200 Index (ASX: XJO) by market capitalisation.

What has driven Rio Tinto shares higher this year?

Renewed confidence in the outlook for copper and iron ore – the two key commodities that Rio Tinto produces – has been a strong tailwind for the miner’s share price this year.

The price of iron ore climbed to a multi-year high in May, while copper spiked to an all-time high in early June.

Commodity prices aren’t the only thing driving the miner’s share price higher.

In April, Rio Tinto also posted impressive first-quarter FY26 production results, revealing a 9% year-on-year increase in copper equivalent production. 

Iron ore production in the Pilbara region also jumped 13%, making it the second-best Q1 production since 2018, despite weather disruptions and reduced shipments.

Rio Tinto also confirmed that it is focusing on expanding production volumes across its core commodity assets. 

Why is the share price falling today?

There isn’t any recent price-sensitive news out of Rio Tinto to explain today’s share sell-off. It’s likely a combination of softer commodity prices and investors taking their gains off the table after the latest rally.

According to Trading Economics data, copper futures are around US$6.3 per pound, down from a high of around US$6.7 per pound earlier this month. 

Meanwhile, iron ore has fallen below US$101 per tonne and is now around 9% lower than a month ago. 

The ongoing Middle East conflict continues to put pressure on commodities, thanks to higher supply chain costs and tighter global supply.

Over the long weekend, Israel and Iran exchanged strikes for the first time since an April ceasefire, raising fears of a broader regional conflict. The fighting has since ceased, but concerns about future attacks highlight ongoing volatility in the region. Investors are on the edge of their seats, waiting to see what happens next.

Are the shares a buy, sell, or hold now?

Market Index data shows that analysts are mostly split between hold and buy ratings, but the latest $172.97 target price implies a potential 3% downside for Rio Tinto shares.

TradingView data reflects something similar. Seven out of 16 analysts have a buy or strong buy rating on the shares. Another seven have a hold rating, and two have a strong sell rating on the miner’s stock.

The average $180.23 target price implies a potential 0.2% downside at the time of writing. Although the maximum $211.41 target price still implies Rio Tinto shares have the potential to climb another 17% over the next 12 months.

The post Rio Tinto shares slump 7.5% from an all-time high: Buy, sell or hold? appeared first on The Motley Fool Australia.

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• Why these ASX blue-chip shares are strong buys right now
• 3 top ASX mining shares for investors right now
• Are Fortescue or Rio Tinto shares the better buy?
• ASX 200 iron ore shares down 5%: Should you buy the dip?
• 3 ASX 200 mining shares to buy: experts

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.

Eagers Automotive Ltd (ASX: APE) is back on investors’ radar on Tuesday after a fresh sign of confidence from a major insider.

At the time of writing, the Eagers Automotive share price is up 3.07% to $21.46.

The car dealership group has now gained around 5% over the past week and about 23% over the past year.

Today’s move gives investors another reason to look at a stock that has been quietly climbing again.

So, what has the market been interested in today?

Eagers Automotive extends its buyback

In a statement to the ASX, Eagers Automotive told investors it intends to continue its on-market share buyback for another 12 months.

The buyback is set to begin on 1 July 2026 and run until 30 June 2027, subject to market conditions.

Under the program, the company can buy back up to 10% of its issued share capital.

That represents up to 28.2 million shares.

A buyback can be attractive to investors because it reduces the number of shares on issue when completed.

All else being equal, that can lift earnings per share (EPS) and increase the ownership stake of remaining shareholders.

Of course, the final impact depends on how many shares are actually bought back and the price paid.

Eagers Automotive said the buyback reflects the board’s focus on capital management and the company’s strong balance sheet.

Insider buying adds interest

The buyback update also follows a recent share purchase from businessman Nick Politis.

Mr Politis, a non-Executive Director of Eagers Automotive, recently spent about $2 million buying another 100,000 shares.

That lifted his holding to around 79.4 million shares.

The timing is likely to draw some attention, especially given the stock’s strong gains over the past year.

Broker still sees upside

Brokers are also weighing in following the recent share price move.

Bell Potter has reportedly cut its price target on Eagers Automotive by 2.6% to $28 per share.

Keep in mind, a lower price target is not usually something investors cheer.

But in this case, the new target still sits well above where the stock is trading today.

Based on the current Eagers Automotive share price of $21.26, the target points to potential upside of almost 32%.

That may be one reason the market is looking past the small target cut.

However, there are still some things to watch.

At its AGM, Eagers Automotive has warned that supply constraints are creating near-term uncertainty heading into the second half.

All eyes will be on whether that pressure eases and how well the company keeps margins moving in the right direction.

The post Why this ASX 200 stock is climbing after a $2 million insider buy appeared first on The Motley Fool Australia.

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• Bell Potter just tipped 12% to 34% upside for these consumer discretionary stocks
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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 recommended Eagers Automotive Ltd. 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 have had a rough start to the short trading week.

In the first 15 minutes of trading on Tuesday, the ASX 200 fell 134 points or 1.55% to a near three-week low of 8,490.9 points.

However, the market has recovered more than half of that initial loss. ASX 200 shares are now down 0.7% to 8,565.1 points.  

Meanwhile, let’s check out 3 ASX 200 shares with new ratings from the experts on The Bull this week.

4DMedical Ltd (ASX: 4DX)

The 4D Medical share price is $4.10, up 3.3% today and down 10% in the calendar year to date (YTD).

The longer term view on this ASX 200 healthcare share is extraordinary.

The 4DMedical share price has soared 1,260% over 12 months and 191% over five years.

Mark Gardner from MPC Markets has a buy rating on the advanced respiratory imaging technology company.

Gardner explains:

The shares remain volatile, and the business is still in the early stages of converting partnerships into material revenue.

However, the company has a stronger funding position after its recent capital raise and a clearer commercial pathway than in prior years.

We believe the market is undervaluing the longer term opportunity at recent levels.

Cochlear Ltd (ASX: COH)

Cochlear shares are $103.14, up 2.7% today and down 60% YTD.

The Cochlear share price hit an 11-year low of $88.74 after the company downgraded its earnings guidance in April.

The hearing implant maker cited many headwinds afoot.

They include capacity constraints at hospitals, falling consumer confidence, cancellations in the Middle East amid the war in Iran, industrial action in Italy and Spain, and China cutting its reimbursements to patients.

Gardner has a hold rating on Cochlear shares, commenting:

Cochlear remains a global leader in hearing implants, but the investment case has become more balanced.

The shares have been under pressure after analysts re-assessed growth expectations and lowered revenue, margin and valuation assumptions.

The long term demand profile remains attractive, supported by ageing populations and continued adoption of implantable hearing technology.

However, the market will need evidence that procedure volumes and margins can recover before a stronger recommendation is warranted.

At these levels, investors can continue to hold, but should monitor earnings momentum and further analyst revisions.

Westpac Banking Corp (ASX: WBC)

The Westpac share price is $34.31, down 1.4% today and down 12% YTD.

Gardner has a sell rating on this ASX 200 bank share.

He says Westpac has a strong retail franchise, but its valuation appears stretched.

For context, the Westpac share price hit a record high of $43.43 in February.

Gardner remarked:

Consensus targets imply downside from current levels.

The bank has made progress on simplifying its operations and cutting costs, but, in our view, earnings growth is still expected to lag the broader Australian market.

The bank is up against competitive pressures and the risk of softer credit conditions.

Investors may want to consider taking a profit at these levels.

The post Buy, hold, sell: 4DMedical, Cochlear, Westpac shares appeared first on The Motley Fool Australia.

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• Why 4DMedical, Eagers Automotive, IDP Education, and oOh!Media shares are charging higher today
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• Why everyone selling Cochlear shares right now could regret it in 3 years

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

Following a stellar multi-year run, commencing in October 2023, Commonwealth Bank of Australia (ASX: CBA) shares have faced growing headwinds over the past months.

In late morning trade on Tuesday, shares in the S&P/ASX 200 Index (ASX: XJO) bank stock are down 0.2%, changing hands for $160.59 apiece.

Now, that outpaces the 1% losses posted by the ASX 200 at this same time today. But over the past 12 months, CBA shares have dropped 11.8% compared to the 0.4% one-year loss posted by the benchmark index.

Even if we add in CBA’s fully franked 3.1% trailing dividend yield, the big four Aussie bank has still underperformed.

Part of that pressure has stemmed from repeated analyst warnings about CBA’s premium valuations relative to peers, such as ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC), and National Australia Bank Ltd (ASX: NAB).

Part of it has been driven by broader investor rotation into ASX mining shares such as BHP Group Ltd (ASX: BHP) amid booming global commodity prices.

And a growing part of the recent selling pressure stems from the deteriorating outlook for the Aussie economy, particularly its core housing market.

Which brings us to…

Why CBA shares just got a major downgrade

As if the ASX 200 banks didn’t have enough on their plates, the new Federal Budget property tax changes impacting negative gearing on residential homes look set to unleash further difficulties.

Indeed, on Friday, Morgan Stanley cautioned that the tax shakeup, combined with the three RBA interest rate hikes this calendar year, could see Aussie home prices tumble 10% by the end of 2027.

This could also see ASX 200 bank stocks facing a big increase in non-performing loans over the year ahead, even as their new housing loans face a decline.

According to Morgan Stanley analyst Richard Wiles (quoted by The Australian Financial Review):

Our channel checks suggest that there have already been changes in housing market sentiment, borrower behaviour and developer plans.

Auction clearance rates are falling, investors have stepped aside, new development signoffs are on hold, and price expectations are being revised…

Over the next year, we expect slower loan growth, emerging margin headwinds, rising loss rates, and greater scrutiny of capital buffers. This will lead to further downgrades and an ongoing de-rating.

In light of these concerns, Morgan Stanley cut its price target for CBA shares to $125. That represents a potential further downside of 22.2% from current levels.

As for the other big four ASX 200 bank stocks, the broker reduced its price target for NAB shares to $34.50, or 4.2% below current levels.

Morgan Stanley’s price forecast for ANZ was cut to $34, 0.8% above current levels.

And its price target for Westpac shares was cut to $31.50, 8.4% below current levels.

The post Why Morgan Stanley expects CBA shares to plunge another 22% appeared first on The Motley Fool Australia.

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• Is the CBA share price a buy in June?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in piercing and jewellery retail company SkinKandy Ltd (ASX: SK1) have not exactly set the world on fire since listing on the ASX in late May.

The shares briefly traded higher, hitting $2.51 at one stage, up from the offer price of $2.20, but have since fallen to be changing hands for $2.19.

The analyst team at Morgans see this as an opportunity, saying the retailer has a strong position in a growing market segment and a long runway of potential store openings.

Before diving deeper into what the broker’s analyst team thinks of the shares, let’s check in on what the company’s Chair, Trent Peterson, said about its prospects in the prospectus.

Bolstered by excellent management

Mr Peterson said the company is the leading specialist piercing retailer across Australia and New Zealand, and operates a “repeat-driven retail format” in which piercings are the core service rather than an ancillary one.

Mr Peterson added:

Founded by Mark Oliphant in Queensland in 2010, SkinKandy has grown from a single store into a network of 100 company-owned stores2 across Australia and New Zealand. Throughout this journey, the Company has invested significantly in its operating platform, including its people, systems and store design, to enable repeatable execution and agile expansion capabilities.

Mr Peterson said in 2023, the company brought in Dain Friis as Chief Executive Officer, with Mr Friis having worked in high-level executive roles, including as Chief Operating Officer of Lovisa Ltd (ASX: LOV).

In terms of the company’s growth prospects, Mr Peterson said:

The Board believes SkinKandy operates in a large, attractive and growing market. The industry in ANZ remains highly fragmented, with over 1,000 independent salons, beauty operators and pharmacies offering piercing as an ancillary service, presenting a compelling opportunity for a scaled specialist operation with a consistent customer proposition and strong operational standards which are designed to allow SkinKandy to grow share profitably. There is opportunity for further market share gains and the Board expects a progressive consolidation in the market to occur over the long term.  

This ASX retail stock looks cheap

The Morgans team said they saw several growth levers ahead for the company, including acquisitions, 15-20 store openings per year, and the potential for international expansion.

They are forecasting the company’s earnings per share to grow at a compound 33% from FY25 to FY28.

They added:

We see this as a compelling opportunity to invest in a high-quality retailer with a strong store rollout opportunity. We initiate coverage with a buy recommendation and a $2.90 price target.

This would be a 32.4% gain if achieved. SkinKandy is valued at $245.7 million.

The post This newly-listed ASX retail stock could deliver more than 30% upside Morgans says 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 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.

National Australia Bank Ltd (ASX: NAB) shares are having a tough start to the week.

In morning trade, the big four bank’s shares dropped 3% to a 52-week low of $35.48.

This means that its shares are now down almost 30% from their 52-week high of $49.45.

Should investors buy NAB shares at a 52-week low?

Unfortunately, one investment solutions advisory company isn’t recommending investors to buy the dip with NAB shares.

According to MPC Markets, courtesy of The Bull, its team is bearish on NAB shares because it believes the bank’s near-term earnings outlook is under pressure.

While MPC Markets acknowledges that the bank’s dividend is attractive, it has concerns over valuation support if earnings momentum continues to soften. And given that it believes margin pressure challenges will continue, the outlook isn’t overly positive. It explains:

NAB remains a quality banking franchise, but the near term earnings outlook is under pressure. The bank’s first half net profit in fiscal year 2026 missed analyst expectations, with bad debt provisions and one-off charges weighing on the result. The dividend remains attractive, but valuation support looks less convincing if earnings momentum continues to soften.

In our view, the bank faces the challenges of margin pressure, higher credit risk and slower profit growth. We prefer to reduce exposure and direct capital towards stronger growth opportunities elsewhere.

Are there any bulls?

The good news is that not everyone is as bearish on NAB shares.

In fact, last month, the team at UBS put a buy rating on the bank’s shares with a lofty price target of $48.50.

Based on its current share price, this implies potential upside of over 35% for investors between now and this time next year.

And with consensus estimates predicting fully franked dividends of $1.70 per share for FY 2026 and FY 2027, this implies potential dividend yields in the region of 4.8% for both years.

So, if UBS is on the money with its recommendation, this would mean a total potential return in the region of 40% for investors.

Elsewhere, the team at Macquarie has a neutral rating and $39.00 price target on its shares, Citi recently put a neutral rating and $37.40 price target on them, and Ord Minnett has a hold rating and $37.00 price target on them.

The post NAB shares sink to 52-week low, are they in the buy zone? 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.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.7% to 8,561.4 points on Tuesday.

Among the 11 market sectors, consumer staples is in the lead today, up 1%, while materials is the laggard, down 3%.

Meanwhile, let’s check out three ASX 200 shares with new ratings from the experts.

Ampol Ltd (ASX: ALD)

The Ampol share price is up 1.2% to $36.47 today, and up 15% over six months.

Last week, Ampol got the green light, with some conditions, from the Australian Competition and Consumer Commission (ACCC) for a major acquisition.

Ampol is seeking to acquire EG Australia for $1.1 billion.

EG Australia owns about 500 petrol stations nationwide, and the deal will increase Ampol’s network to more than 1,000 sites.

Following the news, JP Morgan reiterated its buy rating on Ampol shares.

The broker has a 12-month share price target of $39 on the ASX 200 energy share.

This implies a potential 7% capital gain over the next year.

Lendlease Group (ASX: LLC)

The Lendlease share price is $2.44, down 0.8% today and down 53% over six months.

Last week, the property developer announced the $250 million sale of its development rights to a mixed-use development in Italy.

However, management expects the deal to result in a $175 million post‑tax loss.

Lendlease is in the midst of a capital recycling program to release value tied up in long-dated and complex projects.

In a new note, Ord Minnett maintained a hold rating on the ASX 200 real estate share.

The broker said:

It appears to Ord Minnett that Lendlease did not stay abreast of conditions in the Italian market, which meant the value of the MSG North asset had not been written down to a more realistic valuation.  

The divestment continues the company’s retreat from offshore markets to focus on Australia, but the MSG North sale has led us to adopt a more conservative view of the prices the capital release unit (CRU) – the arm established to divest its offshore assets – can realise for the other assets on the block. 

The broker cut its target price on Lendlease shares from $3.05 to $2.85 from $3.05.

This suggests just over 15% upside over the next year.

BHP Group Ltd (ASX: BHP)

The BHP share price is $59.51, down 2.8% today and up 35% over six months.

BHP shares rose to a record high of $65.04 last Wednesday.

The ASX 200’s largest mining share has since tumbled on news of a major production lift at the giant Simandou iron ore mine in Africa.

Weaker demand and rising supply are already sending the iron ore price lower.

The iron ore price is US$101.05 per tonne on Tuesday, down 9.3% over the month.

On The Bull this week, Tony Locantro from Alto Capital says it might be time to take profits on BHP shares.

He explains his sell rating:

The company delivered a strong first half result in fiscal year 2026, reporting underlying EBITDA of $US15.5 billion, up 25 per cent on the prior corresponding period.

A major milestone was copper contributing 51 per cent of group EBITDA for the first time.

While the long term outlook for copper remains attractive, investor enthusiasm surrounding electrification and AI-related demand has contributed to a strong share price performance.

In our view, the strong operational result, elevated expectations and risk-reward balance support taking some profits.

The post Buy, hold, sell: Ampol, Lendlease, BHP shares appeared first on The Motley Fool Australia.

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• BHP, CBA, and Westpac shares are sells this week: experts

JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase. 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.

Bank of Queensland Ltd (ASX: BOQ) shares have fallen further into the red on Tuesday morning. At the time of writing, the shares are down around 1% to a two-year low of $5.94 a piece.

The latest decline means the shares are now around 10% lower year to date and just over 26% lower than 12 months ago.

What dragged the share price to a multi-year low?

Australian bank shares have generally softened recently as investors reassess valuations, future credit growth, and earnings prospects.

Banks across the sector are facing tighter net interest margins thanks to strong industry competition for mortgages.

The decline in Bank of Queensland shares accelerated after the bank posted a weaker-than-expected first-half FY26 result in April and flagged tougher conditions for the remainder of the financial year. 

The bank’s revenue increased 4% over the six-month period to the 28th of February, but the growth didn’t translate into profit.

Statutory NPAT was down 20% for the period, and cash earnings after tax fell 4%.

The main pressure point was costs. Operating expenses climbed 6%, driven by inflation, ongoing digital transformation, and continued investment in its business banking division. 

Investors reacted negatively, and analysts quickly moved to revise their outlooks following the announcement. 

What do brokers think about Bank of Queensland shares?

Market Index data shows the majority of brokers have a sell rating on the shares. But after the latest share price fall, the average broker target price of $6.14 implies around a 2% upside at the time of writing.

TradingView data shows a similar trend. Out of 15 analysts, seven have a sell or strong sell rating, and six have a hold rating. Only two have a buy rating on Bank of Queensland shares.

The average $6.12 target price implies a potential 1.5% upside at the time of writing. Meanwhile, some think the shares could climb by around 23% to $7.39, while others think they could crash by 24% to just $4.60 over the next 12 months.

The team at Morgans is bullish on Bank of Queensland shares. The broker said the bank’s first-half earnings were lower than the previous period but still came in 4% ahead of Morgans’ forecast. The broker upgraded its rating to accumulate from hold and sees potential for the share price to lift to $7.39. 

Macquarie recently confirmed its sell rating on Bank of Queensland shares with a price target of $5.25. The broker cited persistent margin pressures, sub-scale operations, and continued market share losses amid a competitive market. 

The post Bank of Queensland shares slump to a multi-year low. Buy, sell or hold? 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 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.

S&P/ASX All Ords Index (ASX: XAO) shares are being smashed after a big fall on Wall Street on Friday and only a mild rebound overnight.

The All Ords is currently down 1.4% to 8,730 points, a near 3-week low.

Strong jobs data released last week put fear into the US market that inflation and interest rates may go up this year.

The Nasdaq Composite Index (NASDAQ: .IXIC) fell 1,121 points or 4.2% on Friday and regained just 0.9% overnight.

Friday’s dramatic decline was the Nasdaq’s biggest daily fall in more than a year.

The S&P 500 Index (SP: .INX) fell 200 points or 2.6% on Friday and recovered 0.3% overnight.

Meanwhile, let’s take a look at some new notes from Ord Minnett.

The broker has a buy rating on these 3 ASX All Ords shares.

Here’s why.

Graincorp Ltd (ASX: GNC)

The Graincorp share price is $5.06, down 1.2% today and down 40% over six months.

Ord Minnett upgraded this ASX All Ords consumer staples share from an accumulate to buy rating.

The broker explained:

Grain-growing areas serviced by GrainCorp have received relieving rain in the past two weeks, which will now underwrite an FY27 winter crop.

We note that at the first-half FY26 results release on 14 May, there were growing concerns for the FY27 crop due to significant areas of northern NSW and Queensland not having sufficient soil moisture profiles to plant and a weather forecast suggesting a dry winter and the chance of El Nino.

Relieving rains of the past two weeks, however, have washed away these fears.‍ The FY27 crop is likely to be smaller than FY26, but it is now unlikely to be the disaster it was shaping up to be.

In Ord Minnett’s view, this makes the 21% retracement in the GrainCorp share price since 14 May seem like a significant overreaction.

The broker has a 12-month price target of $7.25, suggesting a potential capital gain of 43% over the next year.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is $1.39, down 2.8% today and down 19% over six months.

Ord Minnett renewed its buy rating on the ASX All Ords bank share with a $2.40 price target.

This implies potential capital growth of 72% over the next year.

In its new note, Ord Minnett said:

Judo is highly exposed to broader macroeconomic conditions and its performance will be more volatile than most of its larger rivals.

It is thus strongly leveraged to any Middle East war resolution and a return to calmer energy markets that had potentially threatened the asset quality of its SME loan book.

We forecast a compound annual growth rate (CAGR) for EPS of 40% and view Judo as an appealing investment option on a medium-term outlook. 

Shape Australia Corp Ltd (ASX: SHA)

Shape Australia is a fit-out and construction services company operating in the commercial property sector.

The Shape Australia share price is $6.51, down 3.8% today and up 8.7% over six months.

Ord Minnett kept its buy recommendation in place for this ASX All Ords industrials share.

The broker explained:

SHAPE has announced the acquisition of Australian Professional Shopfitters (APS) for an upfront consideration of $20.4 million, comprising $17.4 million cash and $3.0 million in Shape scrip, with a potential earnout of $9.0 million over the next two years.

APS operates on an EBITDA margin of ~16% and as such, represents yet another acquisition that bolsters SHAPE’s margin story.

The broker raised its price target from $8.50 to $8.85.

This implies 36% upside over the next 12 months.

The post Broker names 3 ASX All Ords shares to buy 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 recommended Shape Australia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Zenith Minerals Ltd (ASX: ZNC) are trading 10% higher after the company said it had received a scrip takeover offer from Forrestania Resources Ltd (ASX: FRS).

Board backing it in

The Zenith board is recommending the bid, under which Zenith shareholders would receive one Forrestania share for every 4.3 Zenith shares held.

This would value Zenith shares at 13.2 cents, compared to the 9.9 cents they were changing hands for on Tuesday morning, up 10%.

Zenith said the Forrestania offer followed a strategic review process it started on May 7, and the Zenith board, which owns about 4.5% of the company, was unanimously recommending the offer.

The company said:

The Zenith Board believes the Transaction represents an attractive strategic and financial outcome for Zenith shareholders, providing a premium to recent trading prices while enabling shareholders to retain exposure to the future value potential of Zenith’s assets through ownership in Forrestania.

Zenith said the combination of the two companies had many benefits, including the potential to accelerate its Dulcie gold project, which had experienced “transformational growth” and now had a mineral resource of 675,000 ounces of gold.

Zenith shareholders would also be able to get rollover tax relief from capital gains tax, provided Forrestania gained control of at least 80% of Zenith shares.

Zenith Managing Director Andrew Smith said:

The proposed combination with Forrestania represents a significant milestone for Zenith and follows a period of transformational growth across our portfolio, particularly at the Consolidated Dulcie Gold Project. Over the past two years, Zenith has successfully consolidated the broader Dulcie corridor and defined a JORC (2012) Inferred Mineral Resource of 675,000 ounces of gold across a ~6 kilometre mineralised trend within the Forrestania Belt. We believe this work has established Dulcie as one of the most significant emerging gold development projects in the district. The Board believes the combination with Forrestania provides Zenith shareholders with exposure to a larger and more diversified gold company, with enhanced funding capacity, technical capability and a regional operating platform that has the potential to accelerate the development of Zenith’s assets.

The offer is subject to a minimum acceptance condition of 50.1%.

Already a significant shareholder

Forrestania told the ASX in a statement that it had so far acquired a 9.72% stake in Zenith.

Forrestania shares fell 9.7% on Tuesday morning to 46.5 cents, but are up 528% over the past 12 months, valuing the company at $680.7 million.

Zenith is valued at $54 million.

The post Up more than 140% over a year, this ASX gold stock has just fielded a takeover offer 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 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.