Author: openjargon

Goodman Group (ASX: GMG) shares pulled back on Thursday.

This leaves the industrial property giant’s shares trading much closer to their 52-week low than their 52-week high.

Is this a buying opportunity for investors? Let’s take a look at what Bell Potter is saying.

What is the broker saying?

Bell Potter notes that Goodman delivered a half-year result that was ahead of expectations.

GMG announced its 1H26 result with operating EPS of 58.5c slightly above BPe (+0.7%) and greater than VA consensus (+7.6%), with 2H26 skew initially anticipated. FY26 operating EPS guidance has been reiterated at +9% growth y/y which implies 128.6c (BPe 129.9c (+10% y/y), VA consensus 129.8c (+10% y/y)), with DPS guidance of 30.0c maintained (in line with BPe, VA consensus for 30.3c).

The broker also highlights that Goodman’s work-in-progress (WIP) has increased strongly and is now expected to be higher in 2026 than previously expected. It adds:

Development WIP has increased +12% h/h to $14.4bn, with GMG now expecting end FY26 WIP to increase to $18bn vs >$17.5bn prior as contributions from data centre-related work increases, driving development yield on cost higher during the period to 8.1%

Another key takeaway was its leasing progress versus long-term demand. Bell Potter explains:

Longer term supply/demand imbalance bodes well for GMG, however, shorter-term customer signings at early DC projects (Vernon, Artarmon) remain illusive. This may relate to targeted tenant types (ie switch from Hyperscale to Colocation), but Management feedback today suggests this might be an FY27 story rather than remainder of FY26.

Goodman shares tipped to jump

According to the release, the broker has retained its buy rating on Goodman shares with a trimmed price target of $36.45 (from $37.40).

Based on its current share price of $29.82, this implies potential upside of 22% for investors over the next 12 months.

Overall, Bell Potter was pleased with its results but was surprised to see that management didn’t upgrade its guidance. This is something it has done at its half-year results 8 out of the last 10 years. It concludes:

No change to our Buy recommendation. We think today’s share price reaction reflects the lack of earnings upgrade which has featured at the 1H result in 8 of the last 10 years. While we remain constructive on GMG’s building DC pipeline (now 73% of WIP vs. 46% pcp) which requires extended timeframes and capital vs. industrial, the market is looking for further milestones particularly regarding tenant customer signings and clarity on profit-realising milestones to track delivery progress.

The post Why Goodman shares could be heading 20%+ higher appeared first on The Motley Fool Australia.

More reading

• Buy, hold, or sell? Goodman Group, Wesfarmers, Zip shares
• 5 things to watch on the ASX 200 on Friday
• Why are Goodman shares sinking 7% today?
• Why Goodman, Lovisa, Medibank, and Zip shares are falling today
• Goodman Group posts $1.2b profit and expands data centre pipeline

Motley Fool contributor James Mickleboro has positions in Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building materials stocks have been smashed — and many investors have tuned out. But here’s a contrarian idea. James Hardie Industries PLC (ASX: JHX) shares could be one of the ASX‘s more compelling long-term opportunities.

After a sharp pullback, choppy earnings and jitters over its major US acquisition, sentiment has turned fragile. Yet it’s often at moments like this that high-quality businesses start to look mispriced.

Here are three reasons investors may want to consider James Hardie shares today.

Competitive MOAT, pricing power

First, it has a genuine competitive moat and pricing power. James Hardie is the global leader in fibre cement siding and trim, with a dominant position in the United States, which generates the bulk of its earnings.

Fibre cement is durable, fire-resistant and increasingly preferred over vinyl and timber alternatives. That product advantage, combined with brand strength and distribution scale, gives the company meaningful pricing power. Even when housing activity softens, James Hardie has shown it can defend margins by adjusting prices and managing costs.

James Hardie recently announced its quarterly result for the three months to 31 December 2026. In the quarterly result, the ASX 200 share revealed that net sales rose by 30% to $1.24 billion.

Adjusted operating profit (EBITDA) rose 26% to $329.9 million, operating income (operating profit) declined 15% to $176.2 million, and net profit declined 52% to $68.7 million.

More added value per home

The AZEK acquisition opens a much larger growth runway. The purchase of the US outdoor living specialist significantly expands James Hardie’s addressable market.

Instead of being primarily a siding company, it is building a broader exterior and outdoor living platform spanning decking, railing and related products. While the market initially punished the stock on concerns about integration risk and debt, the strategic logic is clear.

The combined group can cross-sell products, deepen relationships with builders and capture more value per home. If management executes well, the deal could drive earnings growth beyond the normal housing cycle and position the company as a more diversified building products powerhouse.

Attractive valuation

The valuation of James Hardie shares looks far more attractive after the reset. Following a steep decline from previous highs, James Hardie shares are no longer priced for perfection. The ASX share has rebounded this year with almost 15%, but it’s still 30% down over the year, at the time of writing.

The market has factored in softer housing conditions and integration uncertainty. Yet if US housing activity stabilises over the next couple of years and synergy benefits from AZEK continue to flow, earnings could rebound meaningfully.

In that scenario, today’s valuation may prove conservative. Investors are effectively buying a high-quality operator at a cyclical discount rather than at peak optimism.

Of course, risks remain. Housing markets can be volatile, interest rates influence construction activity, and large acquisitions always carry execution risk. Governance issues in recent years have also weighed on sentiment.

UBS has a neutral rating on James Hardie shares with a price target of $41. That is a possible plus of 15%, at current levels.

The broker forecasts the business could generate US$606 million of net profit in FY26, US$698 million in FY27 and US$915 million in FY28. And increasing profit is usually a very useful tailwind for sending the share price higher.

The post 3 Reasons to buy James Hardie shares today appeared first on The Motley Fool Australia.

More reading

• Is it time to buy this resurgent ASX 200 share?
• Why James Hardie shares could keep charging higher
• These ASX 200 shares could rise 25% to 65%
• 3 ASX 200 stocks smashing the benchmark this week
• Buy, hold, sell: James Hardie, CSL, and CBA shares

Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Netwealth Group Ltd (ASX: NWL) shares have been in fine form in  the past two trading days.

The ASX share ended the Thursday session 6% higher at $26.88, bringing the gain in two days to almost 20%.

The surge of the $6.6 billion dollar ASX share was driven by the release of the investment platform provider’s half-year results.

Fighting over market leadership

Netwealth operates a tech-driven wealth management platform that helps financial advisers and their clients manage investments, superannuation and managed accounts through a single digital interface.

Analysts see Netwealth and its rival HUB24 consolidating leadership in Australia’s platform market as smaller players fall away.

Its scalable, adviser-centric design has driven strong funds under administration growth and recurring fee income, underpinning solid profitability and operating leverage. The ASX share delivered record half-year custodial inflows of $16.4 billion, up 10.7%.

Funds under administration (FUA) surged 23.6% to $125.6 billion, reflecting both strong net flows and positive market movements.

Strengths and risks

Strengths include a user-friendly system that attracts advisers, sticky client relationships thanks to high switching costs, and structural tailwinds as the industry moves toward consolidated digital solutions.

Risks are intensifying competition on price and features, regulatory complexity, and reputational exposure from platform-hosted product failures, as seen in recent remediation obligations tied to failed funds.

Netwealth delivered a strong first half result, lifting total income 24.7% to $193.8 million compared with the prior corresponding period. EBITDA increased 23.9% to $96.7 million, with margins holding near 50%. This highlights the operating leverage embedded in its platform model.

Net profit after tax rose 19.9% to $69 million, and earnings per share climbed 20.5% to 28.1 cents. The ASX share also increased its fully franked interim dividend by 20% to 21 cents per share.

What next for the ASX share?

Analysts are cautiously optimistic. TradingView data show that most brokers see the ASX financial share as a hold or strong buy. They have set the maximum 12-month price target at $35.30, a potential gain of 31%.

The team at Bell Potter just retained its buy rating and $30.00 price target on Netwealth’s shares. Based on its current share price of $26.88, this suggests a 12% upside for investors over the next 12 months.

In addition, a dividend yield of 1.8% is expected in FY 2026, which stretches the total potential return to approximately 20%.

Bell Potter notes that management struck an optimistic tone regarding its outlook and has reiterated its net inflows guidance.

NWL reaffirmed its outlook, guiding to net inflows comparable to FY25, an EBITDA margin of 49% and $12m in capitalised software. Net accounts added are at record levels and present lower balances, diluting existing accounts that sit on higher balances. Platform advisers expanded +118 (+52 pcp.). NWL provided an update on the net inflows which were +$1.6bn (+$1.5bn pcp.) so far. Extrapolating the run-rate would return a soft estimate (seasonality). Linearly this is in-line with our forecast.

The post Up 20% in 2 days, can this quality ASX share go higher? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Bell Potter says this high-quality ASX 200 stock is a buy with 18% upside
• Here are the top 10 ASX 200 shares today
• Dividend boost sends Netwealth shares 13% higher
• Can HUB24 match Netwealth’s stellar results tomorrow?

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

Are you on the lookout for some big returns for your investment portfolio?

If you are, then it could be worth checking out the three ASX 200 shares in this article.

That’s because they have been tipped to rise between 20% and 40% by analysts at Bell Potter. Here’s what they are recommending:

Aristocrat Leisure Ltd (ASX: ALL)

Bell Potter thinks that this gaming technology company’s shares could have major upside potential.

This morning, the broker has retained its buy rating on the ASX 200 share with a $70.00 price target (from $80.00). Based on its current share price of $50.33, this implies potential upside of approximately 40% for investors over the next 12 months. It said:

We retain our Buy recommendation. We continue to expect ALL’s leading R&D investment will drive market share gains. Top 2 game performance observed in both the core sales and premium gaming ops markets leaves us confident that ALL can grow the install base >4.0k per year and grow global shipments. Further, with leverage standing at 0.2x, ALL has substantial M&A firepower to boost growth inorganically.

Bega Cheese Ltd (ASX: BGA)

Another ASX 200 share that Bell Potter expects to rise strongly is diversified food company Bega Cheese. This morning, in response to its half-year results, the broker has retained its buy rating with an improved price target of $7.75 (from $7.00). Based on its current share price of $6.21, this suggests that upside of 25% is possible for investors.

Bell Potter believes the Vegemite owner can achieve its $250 million EBITDA target in 2027. It said:

Our Buy rating is unchanged. BGA’s >$250m EBITDA target is in reach and achieved by executing on capital investment and site consolidation initiatives already underway. Trading on a FY26e PE of 26.9x for three-year compound EPS growth of 24% p.a. BGA is a compelling GARP play and one of the few exposures on the ASX leveraged to the growing consumer preference for higher protein formats, through both its branded portfolio and specialised ingredient platform.

Sonic Healthcare Ltd (ASX: SHL)

Finally, this healthcare company’s shares could be undervalued according to Bell Potter. It has retained its buy rating on the ASX 200 share with a slightly improved price target of $28.75 (from $28.50). Based on its current share price of $23.34, this implies potential upside of 23%.

Bell Potter was relatively pleased with Sonic Healthcare’s half-year results and has lifted its earnings estimates. It said:

We have made modest changes to our earnings estimates across FY26e-FY28e with increases to EPS of 1.7%/1.4%/1.3%. The result is a c.1% upgrade in our TP to $28.75/sh, which represents c.23% upside to the current share price. We expect this result to support investor sentiment, which has struggled in recent times, with the prospect of trading multiples reverting toward long-term averages.

The post These ASX 200 shares could rise 20% to 40% appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 out of favour ASX 200 shares that could be worth a look today
• ASX 200 lifts to record high amid strong earnings and new jobs data
• Why Hub24, Sonic, Telstra, and Universal Store shares are racing higher today
• Why Sonic Healthcare shares are rocketing 12% on blockbuster half-year results

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

Two ASX small caps that enjoyed big gains this earnings season are Cogstate Ltd (ASX: CGS) and Austco Healthcare Ltd (ASX: AHC). 

Both companies released half-year results this week, leading to massive share price gains. 

Let’s see what investors were reacting to. 

Cogstate

Cogstate is a neuroscience technology company specialising in brain health assessments. The principal activity of the company is the sale of technology and services to measure cognition.

It released 1H FY26 results yesterday, which included: 

• Group Revenue of $26.9m, up 12% on previous corresponding period ($23.9m)
• Net Profit After Tax of $4.5m, up 16% on pcp ($3.9m)
• EBITDA of $6.5m, up 5% on pcp ($6.2m) with an EBITDA margin of 24% (pcp 26%)

Cogstate CEO, Brad O’Connor, said: 

These results demonstrate Cogstate’s growing momentum and the increasing strength of our competitive position. We’re seeing record levels of sales opportunities from an expanded customer base across more therapeutic indications, and those opportunities are converting into meaningful contract wins.

Investors were gobbling up this ASX small-cap stock following the results as the share price climbed 8.7% on Thursday. 

Austco Healthcare

Austco Healthcare engages in the development, manufacture, and supply of hardware relating to healthcare and electronic communications systems. 

The company reported H1 FY26 results on Wednesday, which included: 

• Revenue from customers up 30.7% to $48.2 million
• EBITDA grew 60.1% to $8.3 million
• Net profit before tax up 62.1% to $6.3 million

This ASX small-cap obviously impressed investors with these numbers, as the share price has risen 20.3% since the announcement. 

What are brokers saying about these ASX small caps?

Following the results, brokers released fresh guidance on both of these small-cap shares. 

In a note out of Morgans, the broker was impressed with the results from Cogstate. 

It said the company posted a strong 1H26 result and expects a stronger 2H than previously anticipated. 

CGS continues to broaden the number of indications it targets, which in turn is generating an increase in sales contracts. In the 1H26, US$41.7m of sales contracts were executed across Alzheimer’s (38%); Mood, Sleep & Other Neurology (45%); Rare Disease (15%); and Cancer (2%). We note the FactSet consensus target price is A$3.08, which represents 41% upside to the last close.

On Wednesday, Bell Potter released updated guidance on Austco Healthcare shares. 

The broker said the company is delivering on the key catalysts of conversion, efficiency, product enhancements, and geographic expansion. 

The strong performance of the acquired businesses and the 5-yr revenue target of $250m pa leads to the possibility of more M&A. Given undemanding trading multiples, and material upside, the share price presents as an attractive entry point.

Bell Potter reiterated its buy recommendation and $0.55 price target on this ASX small cap. 

From yesterday’s closing price, that indicates an upside of 44.7%. 

The post These two ASX small caps shot higher 8%-20% on earnings results appeared first on The Motley Fool Australia.

More reading

• Bell Potter just initiated coverage on this exciting ASX All Ords stock with a buy rating
• Why Cogstate, DroneShield, Premier Investments, and South32 shares are storming higher

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cogstate. The Motley Fool Australia has positions in and has recommended Cogstate. The Motley Fool Australia has recommended Austco Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Hub24 Ltd (ASX: HUB) shares were on form again on Thursday.

The ASX 200 stock finished the session 14% higher at $98.45.

This means the investment platform provider’s shares have risen 28% since this time last week.

Can the run continue? Let’s see what Bell Potter thinks about this high-flying stock.

What is the broker saying?

Bell Potter was impressed with Hub24’s first-half results, highlighting that it outperformed on almost all metrics. The broker said:

HUB delivered a strong 1H26 result that outperformed on almost all fronts. Weakness resulting from cost timing differences in Technology Solutions was the one negative. However, Platform continues as the primary growth driver and to that end, the prior guidance range has been updated and narrowed. Management also reconfirmed an expectation for +18-20% FY26 operating expense growth; HUB tracking to the top.

Another positive that Bell Potter picked out was that its outlook parameters continue to improve. It adds:

FY27 FUA target was upgraded to $160-$170bn, with the mid-point supporting our forecasts. The lower point was brought in, and the range tightened. Prior guidance was for $148-162bn. Underpinning this is higher conviction around net inflows and +5% market growth. We had been watered down on +$20bn pa. but the upgrade now establishes this as the go-forward.

Current FUA of $129.8bn was also provided and implies net inflows of +$1.9bn, predicated on flat markets, with the run-rate improved +26%. Seasonal patterns could see +$4.6bn in the door 3Q26. Additional hires limited the leverage on variable cost. Comments indicate competitive wins are not yet factored into the net flows but is growing. The upgraded target band seems well within reach, based on those building blocks, and could ratchet up.

Should you buy this ASX 200 stock?

According to the note, Bell Potter has responded to the results by retaining its buy rating with a trimmed price target of $120.00 (from $125.00).

Based on its current share price of $98.45, this implies potential upside of 22% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

Our Buy rating is unchanged. Our key takeaway from the result was the large step up in existing adviser net inflows, suggesting share of wallet has only started to improve, and there was no concentrations. Adviser density has increased and AI is expected to lift deployment velocity for the new ecosystem. We upgrade our EPS +4%/+2%/+1%.

The post Bullish or bearish? Bell Potter gives its verdict on this high-flying ASX 200 stock appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• HUB24 shares jump 12% higher. Are the shares still a buy for 2026?
• ASX 200 lifts to record high amid strong earnings and new jobs data
• Why Hub24, Sonic, Telstra, and Universal Store shares are racing higher today
• HUB24 delivers 1HFY26 earnings and raises FY27 growth target

Any Australian investor who has held Wesfarmers Ltd (ASX: WES) shares for the long term is sitting on a pleasing gain. I still believe that buying today could lead to solid long-term performance.

The ASX retail share giant took a bit of a hit yesterday, declining by more than 5% after reporting on the first six months of FY26.

Every shareholder who sold yesterday may have had different reasons for exiting, but I saw several positives that make me optimistic about the company that owns Kmart, Bunnings, Officeworks, Priceline, WesCEF, and a number of other businesses.

Solid earnings

It’s clear from the headline numbers that Wesfarmers has continued to grow despite economic challenges faced by some customers.

Wesfarmers reported that revenue grew by 3.1% to $24.2 billion, operating profit (EBIT) rose 8.4% to $2.5 billion, net profit rose 9.3% to $1.6 billion, and earnings per share (EPS) climbed 9.3%.

Those figures won’t be the largest growth numbers we see during this reporting season. But we should keep in mind that Wesfarmers has delivered steady growth since the start of the 2020s. These profit numbers are compounding year after year.

The fact that it’s still able to deliver close to double-digit profit growth as a business that makes most of its revenue from selling physical products is impressive to me, considering the challenging retail environment and how large the business already is.

Great performance at core businesses

Wesfarmers generates a large majority of its revenue and earnings from two businesses: Bunnings Group and Kmart Group.

In the HY26 result, Bunnings Group revenue rose 4% to $10.7 billion, and Kmart Group revenue climbed 3.2% to $6.4 billion. In terms of earnings, Bunnings Group delivered 5% growth to $1.39 billion, and Kmart Group achieved 6.1% growth to $683 million.

Revenue growth at these businesses is so powerful for Wesfarmers because of the high returns they generate.

In HY26, Bunnings Group delivered a return on capital (ROC) of 70.8%, while Kmart Group delivered a ROC of 69.8%. The fact that these are so high suggests to me that Wesfarmers can continue unlocking strong, profitable growth for shareholders.

The high ROC feeds into a very compelling return on equity (ROE) for the overall Wesfarmers business. The ROE (excluding significant items) increased by 1.5 percentage points to 32.7%, which is a strong sign on multiple fronts, including that Wesfarmers is becoming more profitable with the shareholder money retained in the business rather than paid out as a dividend.

Kmart and Bunnings seem poised to continue growing for years to come.

Strong growth potential

Wesfarmers is already a huge business, so I’m not expecting it to grow revenue or profits rapidly.

But it has put in place several compelling earnings-boosting plans.

For example, it has been expanding its Anko store network in the Philippines. Three new Anko stores were opened during the first half of FY26. I’m hopeful that Anko stores will expand to other Asian and non-Asian markets in the coming years.

Kmart has also launched a third-party marketplace, which has seen “positive early trading results”, and this also expands the company’s total addressable market.

Bunnings continues to expand its product range, with a recent focus on vehicle products and pet care. Online sales and trade customers are also two growth areas the company can continue to target.

With its healthcare and lithium earnings growing in HY26, there is also a positive outlook for these segments. Lithium prices have jumped in recent months (boding well for future profitability), while healthcare remains a very large market with significant tailwinds. I expect Wesfarmers will attempt to expand its healthcare division further in the coming years.

Overall, there is a lot of evidence that the company can continue compounding its earnings over the long term, which doesn’t factor in the positive trading update for the second half of FY26, which included accelerating sales growth at Kmart Group.

Rising dividend

As an investor who likes to receive passive income, the bigger dividend was also pleasing to see, with a 7.4% increase to $1.02 per Wesfarmers share.

Dividends could play an important part in the overall shareholder returns in the coming years. I like how Wesfarmers is balancing cash payments to shareholders, investing for growth and delivering earnings growth.

I think this could be a good time to invest in the Wesfarmers share price for the long term.

The post Why I think the Wesfarmers share price is a buy after its HY26 result appeared first on The Motley Fool Australia.

More reading

• Recap: Winners and losers from earnings season week 3
• Buy, hold, or sell? Goodman Group, Wesfarmers, Zip shares
• Everything you need to know about the latest Wesfarmers dividend
• Wesfarmers posts 9% half-year profit growth and boosts dividend
• 3 high-quality blue-chip ASX shares I would buy right now

Motley Fool contributor Tristan Harrison 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 Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

PLS Group Ltd (ASX: PLS) shares have been on fire over the past 12 months.

During this time, the lithium miner’s shares have risen over 100%.

Does this mean it is too late to invest? Let’s see what analysts at Bell Potter are saying about the lithium giant.

What is the broker saying?

Bell Potter was a touch disappointed with the company’s performance during the first half. It highlights that PLS’ underlying EBITDA was a touch short of expectations and its statutory profit was a big miss. The broker said:

PLS reported 1H FY26 underlying EBITDA of $253m (BP est. $260m). Statutory NPAT of $33m (BP est. $93m) deviated from our estimate with non-recurring costs associated with the mid-stream demonstration plant and P-PLS lithium hydroxide joint venture. In 1H FY26, operating cash flow was $180m; capex -$123m; and a cash injection into the P-PLS joint venture of -$38m. Period end cash was $924m; net cash (including leases) $234m (30 June 2025 net cash $518m); and available liquidity $1.6b. No dividend was declared, as expected, to preserve balance sheet strength.

The major talking point was the announcement of the restart of the Ngungaju operation. Its ramp-up is expected to commence in the coming months and will be supported by the Canmax offtake agreement. Bell Potter said:

PLS’ Board has approved the ~200ktpa Ngungaju plant restart, with ramp-up to commence from July 2026. The decision follows last week’s execution of a two-year, 150ktpa offtake contract with Canmax, featuring a US$1,000/t floor price with no upside price limit. Restart costs will largely be expensed, with FY26 operating costs now expected towards the upper end of guidance (A$560-600/t).

PLS also provided an update on timing of organic growth projects, with P2000 (Pilgangoora) and Colina (Brazil) Feasibility Studies targeted for December 2026 and December 2027, respectively. Subject to prevailing market conditions, we believe P2000 is likely to receive FID prior to Colina, being a fully permitted brownfield expansion with a well-understood orebody.

Should you buy PLS shares?

According to the note, Bell Potter thinks that PLS shares are fairly valued at current levels.

As a result, the broker has reaffirmed its hold rating and $4.60 price target on them. This is approximately 5% higher than its current share price of $4.38.

Commenting on its hold recommendation, Bell Potter said:

We maintain our Hold recommendation. PLS’ earnings and cash flow will strengthen with the restart of the 200ktpa Ngungaju processing plant into an improved lithium price environment. P2000 and Colina development studies are being progressed, providing substantial organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.

The post Should you buy PLS shares after its results? appeared first on The Motley Fool Australia.

More reading

• PLS Group posts H1 FY26 profit and 241% EBITDA surge
• Forget PLS, Bell Potter says this ASX lithium stock could rise 150%+
• Top brokers name 3 ASX shares to buy next week
• Here are the top 10 ASX 200 shares today
• Is it too late to buy surging ASX 200 lithium shares like PLS and Liontown?

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.

As we approach the end of February’s earnings season, there are still plenty of ASX 200 shares to report. 

Three companies that investors will be keeping an eye on next week are: 

• WiseTech Global Ltd (ASX: WTC) 
• Fortescue Ltd (ASX: FMG) 
• Woolworths Group Ltd (ASX: WOW) 

These ASX 200 companies all report HY26 earnings results on Wednesday, February 25. 

There has already been significant volatility this earnings season as investors respond both positively and negatively to results.

Ahead of next week’s reports, here’s what experts are saying about these ASX 200 stocks. 

WiseTech Global Ltd (ASX: WTC) 

Investors will be paying close attention to WiseTech’s results next Wednesday. 

This ASX 200 company has been heavily covered this year amidst the heavy tech sell-off.

Like many other technology shares, WiseTech has come under significant pressure. 

A key factor has been rising investor anxiety around artificial intelligence (AI). 

Instead of serving as a straightforward growth catalyst, rapid AI advancements are increasingly seen as a potential threat to traditional software business models. 

As a result, this ASX 200 stock has fallen 28.5% since the start of the year and almost 60% in the last 12 months. 

However due to this sell-off, many experts are now tipping WiseTech shares as a buy-low opportunity. 

Recent share price targets range from $65 to $109.15. 

This indicates an upside between 32% and 123%. 

A further sell-off next Wednesday after earnings results could push this ASX 200 stock into a strong value territory. 

Fortescue Ltd (ASX: FMG) 

This exploration company is the fourth largest iron ore producer in the world. 

However unlike many other mining and materials companies that have enjoyed tailwinds to start the year, this ASX 200 stock has fallen 8.27%. 

For context, the S&P/ASX 200 Materials (ASX: XMJ) index is up almost 12% year to date. 

This ASX 200 stock closed yesterday trading at $20.31. 

Any further updates on the company’s expansion away from just iron ore and into copper could be a green flag for long term investors. 

Copper has been the centre of attention recently due to its core use in electrification and renewable energy infrastructure. 

Short-term, this ASX 200 stock is being listed as a hold by many experts, with price targets hovering around $20.

Woolworths Group Ltd (ASX: WOW) 

This ASX 200 stock has risen 22% from its 52-week low reached last October, and now sits around $32 per share. 

Investors have scooped up Woolworths shares recently thanks to positive sentiment around the supermarket giant amid interest rate rises.

Experts seem to largely view the supermarket giant as trading close to fair value after gaining ground this year. 

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The post Are these 3 popular ASX 200 stocks a buy, hold or sell ahead of earnings results next week? appeared first on The Motley Fool Australia.

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

Telstra Group Ltd (ASX: TLS) shares were on form on Thursday.

In response to the telco giant’s half-year results, its shares climbed to a multi-year high before ending the day at $5.14.

Is it too late to invest? Let’s see what Bell Potter is saying about Australia’s largest telco.

What is the broker saying?

Bell Potter was pleased with Telstra’s performance during the first half and highlights a number of positives. It said:

The 1HFY26 result contained a few positive surprises: 1. Underlying EBITDAaL grew 6% to $4,185m which was close to in line with our forecast of $4,175m but more significantly above VA consensus of $4,100m; 2. Cash EBIT – the new focus metric for cash flow – grew 14% to $2,478m and was 3% above our forecast of $2,397m; 3. The interim dividend grew 11% to 10.5c and was above our forecast of 10.0c though the franking was only 90%; and 4. The buyback increased from $1.0bn to $1.25bn.

In response to the result, Bell Potter has made only modest (positive) revisions to its estimates for Telstra’s earnings. This has resulted in an upgrade to its dividend estimates, but with lower franking. It adds:

There is little if any change in our underlying EBITDAaL forecasts and we continue to forecast $8.41bn in FY26 which is at the top of the narrowed guidance range. We have, however, modestly upgraded our cash EBITDA forecasts by c.1% in each of FY26, FY27 and FY28 and now forecast $4.71bn in FY26 which is towards the top end of the unchanged guidance range. We have also increased our DPS forecasts by 1.0c in each period though we have reduced the franking.

It now expects dividends per share of 21 cents in FY 2026, 22 cents in FY 2027, and then 23 cents in FY 2028.

Should you buy Telstra shares?

According to the note, the broker has retained its hold rating on Telstra’s shares with an improved price target of $5.10 (from $4.75). This is largely in line with where its shares are trading today.

Commenting on its recommendation, the broker said:

We have rolled forward our PE ratio valuation and now apply a 23x multiple to our FY27 EPS forecast. We have also rolled forward our SOTP valuation and apply the same multiples of 8x, 5x, 9x and 15x to each of our FY27 EBITDA forecasts for the Mobile, Fixed, Infrastructure and Amplitel businesses.

There are no changes in the key assumptions we apply in either the DCF or DDM valuations and we continue to apply an 8.9% WACC in both. The net result is a 7% increase in our TP to $5.10 which is a modest discount to the share price so we maintain our HOLD recommendation.

The post What is Bell Potter saying about Telstra shares following its strong result? 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.