Author: openjargon

Treasury Wine Estates Ltd (ASX: TWE) shares are climbing higher into the green in morning trade on Wednesday. 

At the time of writing, the shares are up around 0.5% and changing hands for $4.72 a piece.

The latest increase represents around a 39% rebound from a 12-year low recorded in late-March. It’s certainly a step in the right direction, but there is still some way before Treasury Wine Estates can recover losses shed through 2025.

For the year to date, the shares are down around 11% and are 41% lower than this time last year.

Why are Treasury Wine Estates shares rebounding?

After hitting the lowest trading value in over a decade in late-March, Treasury Wine Estates shares finally started rebounding after news that the company had begun trading below what its assets are worth. 

The update encouraged bargain-hunting investors to step in while the shares were trading below fair value.

The rebound picked up pace in late-April when the company announced it is transitioning to a new regional operating model to help improve efficiency.

The move is part of TWE Ascent, Treasury Wine’s global transformation program, which is intended to address the headwinds of recent years and position the business for sustainable growth.

The ASX 200 wine stock will switch to the new regional operating model as of the 1st of October. This will see the company operate four regional divisions. These include, the Americas, ANZ (Australia and New Zealand) combined with Europe, Greater China, and the emerging markets (Rest of Asia, Middle East, and Africa).

Treasury Wine Estates shares climbed even higher in early June. The increase followed an investor day update where the company unveiled its latest turnaround strategy. The transformation plan is expected to help simplify the business and help restore earnings growth.

Key updates included a sharper focus on Treasury Wine’s strongest brands, a review of its Americas business, and plans to target $100 million per year in cost reductions. These cost reductions are expected to be fully realised by FY29.

Management also confirmed FY26 EBITS guidance in the range of $480 million to $490 million.

For FY27, management then expects EBITS to be at least equivalent to FY26 while the company continues to rebalance customer inventory levels in China and the United States.

Investors have been thrilled with the company’s developments over the past three months. The renewed confidence has helped push the shares higher and higher.

What do brokers tip next? Can the shares keep climbing higher?

If broker sentiment is anything to go by, we could see a lot more from Treasury Wine Estates shares this year.

Market Index shows a buy consensus for the shares. And the average $5.20 target price implies a potential 11% upside, at the time of writing.

TradingView data shows that some are even more bullish. Out of 15 analysts, seven have a buy or strong buy rating. Another eight rate the ASX wine stock as a hold.

The average $5.34 target price implies a potential 15% upside ahead, at the time of writing. Meanwhile, the maximum $6.50 target price implies that the shares have the potential to jump another 40% higher over the next 12 months.

The post Treasury Wine Estates shares rebound 39% from 12-year low: Can they keep going? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• This ASX wine stock looked ready to recover. Why did it stumble again?
• These ASX shares could be top buys for FY27

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

ANZ Group Holdings Ltd (ASX: ANZ) shares are up around 0.3% in early morning trade on Wednesday, and changing hands for $36.21 a piece.

After a tough start to the year, the bank shares are down around 0.5% for the year-to-date, but they’re still nearly 20% higher than 12 months ago.

Despite ongoing global volatility, interest rate uncertainty, and a slowdown in lending, the banking giant’s shares are now up 2.3% for the year-to-date and 39% above their trading levels this time last year. 

For context, the S&P/ASX 200 Index (ASX: XJO) is up around 2% for the year-to-date, and roughly 3% higher than 12 months ago.

Brokers are relatively optimistic about ANZ shares for FY27. TradingView data shows that 7 of 16 analysts have a hold rating on the stock. Another six have a buy or strong buy rating while three have a sell or strong sell rating.

The average $34.91 target price, however, implies a potential 4% downside at the time of writing.

Regardless of where ANZ shares will be in 12 months time, there are a few other reasons I think the ASX bank shares are a screaming buy right now.

Here are three of them

1. Cost saving initiatives are working

As part of the bank’s half-year FY26 financial update, it confirmed it has now achieved 49% of its gross cost-savings target of $800 million for FY26.

ANZ has made significant progress reducing costs and simplifying operations, improving its cost-to-income ratio under its ANZ 2030 strategy. 

ANZ’s 2030 cost-saving strategy focuses on simplifying operations, eliminating duplication, and heavily reducing its physical and technological footprint. This includes job cuts, and integration of Suncorp Bank.

2. Earnings are stable and cash flow is growing 

As one of Australia’s major four banks, ANZ is generally considered to have stable earnings and predictable cash flow. The bank has a strong deposit base and a diversified portfolio that means it has defensive qualities.

In early May, the bank reported a 70% jump in its cash profit for the first half of FY26. Statutory profit was also up 62%, operating income was up 3%, and the bank’s operating expenses were 22% lower.

The news beat expectations, delighted investors and instilled some renewed confidence into the stock. ANZ shares spiked higher following the announcement.

The update also followed ANZ’s impressive first-quarter cash profit in February. At the time, it revealed $1.94 billion, up a huge 75% from the second-half average of FY25. Operating income was up 4% and cash return on tangible equity climbed 11.7% over the quarter.

3. The bank pays a great passive income

The bank’s strong performance means it is able to make a reliable and regular dividend payment to shareholders every six months, payable in July and December. 

It also offers both a dividend reinvestment plan (DRP) and a bonus option plan (BOP) as alternatives to receiving cash dividends on ANZ ordinary shares.

Earlier this month ANZ paid its shareholders an 83-cent per share interim dividend payment, franked at 75%. At the time of writing, this translates to a forward dividend yield of around 4.6%.

The 83-cent dividend is the same payout that investors have been receiving every six months since July 2024. Although the latest payout received an additional 5% franking (previously 70%).

Forecasts suggest that ANZ could pay an annual dividend of $1.66 in FY26, and the same again in FY27. At the time of writing that translates to a forward dividend yield of 4.6% for each year.

That’s a decent passive income. It also puts ANZ at the front of the pack with the highest dividend yield offering among the big 4 major banks. 

The post 3 reasons why ANZ shares are a screaming buy right now appeared first on The Motley Fool Australia.

More reading

• What are experts tipping for the big four bank shares in the back half of 2026?
• How much passive income can I earn off a $50,000 portfolio?
• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold
• Here’s the earnings forecast out to 2027 for ANZ shares
• Here’s the dividend forecast out to 2027 for ANZ shares

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.

Commonwealth Bank of Australia (ASX: CBA) shares have historically been viewed as a top pick for passive income due to the stability and growth they have delivered to investors.

The banking landscape has changed significantly over the past 10 years, with increasing numbers of borrowers using mortgage brokers and a rising challenge from Macquarie Group Ltd (ASX: MQG).

On the mortgage broker challenger, CBA has a large majority of mortgage flow of borrowers coming through proprietary channels. In other words, it doesn’t rely on mortgage brokers as much compared to other banks like Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB).

However, Macquarie could put a brake on Commonwealth Bank’s earnings growth, along with the Federal budget taxation changes. Let’s see what it could take to earn $10,000 of passive income from the ASX bank share in FY27.

Projected dividend for FY27

The independent forecast on Commsec suggests the major ASX bank share could hike its annual dividend per CBA share by 1% in FY27 compared to the projected payout for FY26. That possible annual payment could be $5.15 per share for FY27.

At the time of writing, that translates into a grossed-up dividend yield of 4.3%, including franking credits, or 3% excluding the franking credits.

If I were a shareholder, any growth would be better than none. However, 1% growth isn’t even enough to offset typical inflation in a normal year. Of course, a forecast is not guaranteed to come true. Hopefully the ASX bank share can deliver a better outcome than what’s currently projected.

How many CBA shares do I need to make $10,000 of passive income?

Long-term shareholders can be happy with the upcoming potential dividends because they still represent significantly larger payouts than 20 or 30 years ago.

If CBA does indeed pay an annual dividend per share of $5.15 in FY27, then an investor would need to own 1,942 CBA shares to receive $10,000 of passive income. If we’re including franking credits as part of the income goal, then an investor would only need to own 1,360 CBA shares to receive the desired level of passive income.

Is this a good time to buy into Commonwealth Bank? Expert analysts don’t think so. According to Commsec, currently there are 14 sell ratings, two hold ratings and no buy ratings on the ASX bank share. There are a lot of other ASX shares that could be better buys.

The post How many CBA shares do I need to buy for $10,000 of passive income? appeared first on The Motley Fool Australia.

More reading

• What are experts tipping for the big four bank shares in the back half of 2026?
• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold
• Are CBA shares still worth buying for the long term?
• How to build a successful ASX dividend portfolio
• What did the market look like 10 years ago? Here’s what’s changed for the ASX 200

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 Macquarie Group. The Motley Fool Australia 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.

Cochlear Ltd (ASX: COH) shares showed further signs of stabilising on Tuesday.

The hearing implant giant climbed 1.6% to $123.20, extending its gain over the past month to 16%.

That’s an impressive rebound after one of the ASX’s most dramatic share price collapses this year.

But let’s keep things in perspective. Despite the recent recovery, Cochlear shares are still down around 53% in 2026 and have shed almost 59% over the past 12 months.

So, is this the start of a genuine comeback, or merely a relief rally?

What went wrong?

April was one of the darkest months in Cochlear’s history.

The healthcare company shocked investors when it revealed demand for hearing implants across developed markets had weakened more than expected. At the same time, conflict in the Middle East disrupted shipments and led to order cancellations.

Management responded by dramatically lowering its profit expectations. Instead of forecasting underlying net profit of between $435 million and $460 million for FY26, Cochlear slashed guidance to just $290 million to $330 million.

Investors didn’t hang around to hear the rest. Cochlear shares plunged more than 40% in a single session as the market questioned whether one of the ASX’s most reliable growth stories had hit a wall.

Since then, investors have been asking one question: is this a temporary stumble or something more serious?

Why the investment case remains intact

Despite the earnings shock, Cochlear’s competitive position hasn’t fundamentally changed.

The company still commands roughly half of the global cochlear implant market, making it the clear industry leader. That position has been built through decades of product innovation, clinical research, and strong relationships with hospitals and surgeons around the world.

Those competitive advantages are exceptionally difficult for new entrants to replicate.

The long-term growth opportunity for Cochlear shares also remains compelling.

More than six million people across developed markets are estimated to be eligible for cochlear implants, yet only around 3% have received one. That leaves a substantial untapped market as diagnosis rates improve, awareness grows, and technology continues to advance.

In other words, the company’s long-term runway may be just as attractive today as it was before April’s profit warning.

What do the experts think?

Broker sentiment suggests caution rather than outright pessimism.

According to TradingView data, hold remains the dominant recommendation among analysts.

The average 12-month price target sits at $127.64, implying only around 4% upside from current levels. That suggests many brokers believe the recent rebound of Cochlear shares has already captured much of the near-term recovery.

Not everyone agrees. Six of the 18 analysts covering Cochlear have either a buy or strong buy recommendation, with the most optimistic forecasting the shares could rise another 38% over the next year.

On the other hand, two analysts recommend selling. The lowest target price stands at $100, implying downside of roughly 19%.

The post Cochlear shares have bounced 16%. Should you buy, hold, or sell now? appeared first on The Motley Fool Australia.

More reading

• 10 fantastic ASX shares to buy for FY27
• Cochlear shares are slipping again. Is the comeback already over?
• Cochlear shares are flying. Is this just the start?
• Here are the top 10 ASX 200 shares today
• ASX healthcare shares have jumped 21% since June. Can the recovery continue?

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 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.

The Evolution Mining Ltd (ASX: EVN) share price is in focus today after the gold and copper miner delivered record FY26 cash flow of $1,389 million and maintained a net cash position, while meeting its FY26 group production and cost guidance.

What did Evolution Mining report?

• FY26 gold production: 715,000 ounces; copper production: 66,000 tonnes
• All-in sustaining cost (AISC) in FY26: $1,717/oz, a sector-leading result
• June quarter production: 180,000 oz gold, 19,000 t copper at AISC $1,706/oz (improved 23% quarter-on-quarter)
• Record operating mine cash flow: $3,394 million; net mine cash flow: $2,079 million
• Group cash balance: $1,347 million, with no debt repayments due until FY29
• Record interim dividend: $406 million paid to shareholders

What else do investors need to know?

Operational highlights this year included Ernest Henry returning to full production after weather disruptions and the successful ramp-up of the Mungari mill. All high-return organic growth projects, such as Cowal Open Pit Continuation and the Northparkes E22 development, remain on schedule and within budget.

Importantly, Evolution Mining is now fully unhedged, giving it potential upside exposure to gold and copper prices. The company’s safety performance also remained steady, with a low total recordable injury frequency rate of 5.9 as at 30 June 2026.

What did Evolution Mining management say?

Managing Director and Chief Executive Officer Lawrie Conway said:

FY26 continued to build on the improved consistent performance of the past couple of years, meeting Group production and cost guidance. For the full year, we produced 715koz of gold and 66kt of copper at a sector-leading AISC of $1,717/oz. The June quarter delivered 180koz of gold and 19kt of copper at an AISC of $1,706/oz which improved 23%. We delivered record FY26 Group cash flow of $1,389M at a high margin of $1,958/oz. We are now fully unhedged and in a net cash position with a cash balance of $1,347M. All high-return organic growth projects remain on schedule and budget.

What’s next for Evolution Mining?

FY27 guidance will be formally released on 19 August 2026. Early indications suggest no major changes to production capacity, except for the planned closure of Mt Rawdon. Inflation pressures are expected to lift all-in sustaining costs by roughly $150–$160/oz in FY27, and mine development investment is set to increase to sustain operational reliability and progress key projects at Northparkes, Cowal, and Ernest Henry.

Exploration spend is also flagged to rise in FY27, as the company looks to build on success across its key gold and copper assets and evaluate promising greenfield opportunities. The focus will remain on reliable delivery, margin protection, and prudent capital investment.

Evolution Mining share price snapshot

Over the past 12 months, Evolution Mining shares have risen 53%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Evolution Mining posts record FY26 cash flow appeared first on The Motley Fool Australia.

More reading

• Rio Tinto: 3% production growth and strong lithium output in H1 2026
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Steadfast Group takeover bid update: KKR joins consortium
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Artificial intelligence and, by extension, cloud computing and data centres have been perhaps the biggest investment theme globally over the past year.

Companies such as Nvidia Corp (NASDAQ: NVDA), Micron Technology Inc (NASDAQ: MU) and SpaceX (NASDAQ: SPCX) have attracted huge investor interest as the infrastructure demands of the AI industry continue to grow.

Not all providers created equal

Macquarie has this week issued a research note to clients, which argues that simple ownership of GPUs (graphics processing units) is not enough, but that it has to be paired with the ability to “convert capital, power and installed capacity into useful compute”.

They add:

In our view, useful compute per MW per dollar is the most important metric for assessing Neocloud quality. Neocloud customers buy useful compute output, not machine access. Two operators using the same GPU hardware can deliver materially different performance, utilisation, latency and cost outcomes depending on network architecture, software stack, reliability, batching, caching and customer mix. As the industry matures, durable premiums will accrue to operators that can prove better delivered compute.

To clarify, a neocloud is a specialised cloud provider built to specifically support AI and machine learning workloads.

Which ASX tech companies look set to benefit?

When it comes to the Australian market, Macquarie’s top sector picks for companies that can support neoclouds are Megaport Ltd (ASX: MP1) and Nextdc Ltd (ASX: NXT).

Macquarie said in its note to clients that in Australia, neocloud entrants like Firmus and Sharon AI “are competing for the same scarce pool of data centre capacity, adding another source of demand to a market that was already supply constrained”.

They added:

The relevance for NXT is straightforward: neoclouds are being forced to secure data centre capacity ahead of GPU deployment, with NVIDIA supply of GPUs contingent on signing upfront data centre contracts. This pulls demand forward into an already constrained market. NXT’s agreement with Sharon AI for 50MW of capacity at its M3 site is an example of this.

Macquarie has a price target of $18.30 on Nextdc shares compared to $13.07 currently.

With regard to Megaport, Macquarie said the company “already has the diversified Enterprise customer base and characteristics that drive quality for Neocloud operators”.

They added:

These characteristics drive lower operating risk (MP1 signs contracts before capex), a net cash position, and higher quality business and customer mix.

Macquarie said Megaport’s Latitude business division was also diversified well-beyond just AI, supporting a “highly diverse mix of non-AI workloads, including web hosting, game servers, large relational databases, streaming applications, and traditional enterprise IT migrations that require high performance without virtualisation overhead”.

Macquarie has a price target of $27.80 on Megaport shares compared to $19.90 currently.

The post Which ASX tech companies does Macquarie like in the surging cloud computing sector? appeared first on The Motley Fool Australia.

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• SK Hynix IPOs in the US. Here’s what that means for ASX investors
• 2 ASX shares tipped to grow 45% or more in the next 12 months
• 10 fantastic ASX shares to buy for FY27
• NEXTDC boosts funding with $2.3 billion senior debt facility upsize
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cameron England has positions in Megaport and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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 Rio Tinto Ltd (ASX: RIO) share price is in focus today after the mining giant reported copper equivalent production rose 3% year-on-year for the first half of 2026, with iron ore and lithium output also trending higher.

What did Rio Tinto report?

• First-half 2026 copper equivalent (CuEq) production up 3% year on year
• Oyu Tolgoi copper mine delivered 31% higher copper output, supporting copper C1 net unit cost reductions
• Pilbara iron ore sales in Q2 at 85.3 Mt, up 7% on Q2 2025; H1 iron ore sales totalled 157.7 Mt (+5% YoY)
• Bauxite production recovered in Q2, but H1 fell 7% YoY to 28.5 Mt
• Lithium carbonate equivalent (LCE) production jumped 20% in Q2 and 53% in H1 to 27.3 kt
• 2026 production and cost guidance across key commodities left unchanged

What else do investors need to know?

In the first half of 2026, Rio Tinto saw strong contributions across most commodities, with productivity programs helping lift Pilbara iron ore’s output to the highest first half levels since 2018. The ramp up of Oyu Tolgoi underground operations supported significant growth in copper output, while new lithium projects—Sal de Vida and Fénix 1B—delivered first production ahead of plan.

Production guidance for iron ore, copper, aluminium, and lithium remains unchanged for the full year. The group flagged ongoing resilience despite global supply chain challenges and only “limited” operational impacts from Middle East disruptions. Notably, Rio’s copper portfolio benefited from strong pricing trends, while higher diesel costs modestly raised Pilbara iron ore cash costs.

Large-scale expansion projects including Simandou iron ore, Canadian AP60 aluminium smelter, and Rincon lithium in Argentina are tracking milestones, with some nearing completion. Free cash flow reporting changes and the group’s commitment to capital discipline were also highlighted.

What did Rio Tinto management say?

Rio Tinto Chief Executive Simon Trott commented:

We are delivering growth as we drive performance across the group, with copper equivalent production up 3 per cent in the first half. Our scale, geographical diversification and sophisticated supply chains continue to underpin our resilience and strong operational performance despite ongoing geopolitical uncertainty throughout the period

What’s next for Rio Tinto?

Management reaffirmed full-year production and cost guidance across core businesses. In the Pilbara, ongoing productivity investments are expected to underpin stable iron ore shipments, though some port outload capacity reductions are flagged as capital works continue. Copper growth is set to accelerate as Oyu Tolgoi ramps up and work advances at Resolution (US) and Winu (WA) projects.

Lithium remains a strategic focus, with expansion in Argentina proceeding and inaugural production from key assets achieved ahead of expectations. The Simandou iron ore development and Canada’s AP60 aluminium project are major near-term catalysts. Management remains upbeat about long-term market demand for Rio Tinto’s portfolio of future-facing minerals.

Rio Tinto share price snapshot

Over the past 12 months, Rio Tinto shares have risen 48%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Rio Tinto: 3% production growth and strong lithium output in H1 2026 appeared first on The Motley Fool Australia.

More reading

• Evolution Mining posts record FY26 cash flow
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
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• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The big four bank shares play a vital role in the Australian economy and hold a dominant market share of the ASX 200. 

In fact, they make up almost a quarter of Australia’s benchmark index in terms of market cap.

Because of this dominance, the performance of the big four bank shares heavily impacts many investors’ portfolios. 

This is true both through individual exposure and many ASX ETFs that include these banks. 

How have they performed in 2026?

Compared to the year prior, the big four bank shares have underperformed in 2026. 

At the time of writing, year to date: 

• Commonwealth Bank of Australia (ASX: CBA) shares are up 5%
• National Australia Bank Ltd (ASX: NAB) shares are down 6%
• ANZ Group Holdings Ltd (ASX: ANZ) shares are down nearly 1%
• Westpac Banking Corp (ASX: WBC) shares have fallen 6%. 

There have been several headwinds contributing to this underperformance. 

Big four bank shares have generally underperformed in 2026 after entering the year on elevated valuations, leaving limited upside as investors questioned whether earnings growth could justify their premium prices. 

Interest rates, softer net interest margins and a rotation into cheaper sectors have also weighed on sentiment toward the major banks.

However, it is worth noting that there has been an upward trajectory in recent weeks, as murmurs of interest rate declines have improved sentiment.

What are experts saying about bank shares?

As we look towards the back half of 2026, there appears to be limited upside for big four bank shares. 

For Australia’s largest bank, Morgan Stanley recently maintained its sell rating on CBA shares with a $125 target. 

This target represents a 26% downside compared to current levels. 

Morgan Stanley also has a sell rating on NAB and Westpac shares. 

Its price targets of $34.50 and $31.50, respectively, indicate between 13% and 14% downside risk. 

Finally, in some good news, Citi reaffirmed its buy rating on ANZ shares recently with a price target of $39.25.

This indicates an upside of roughly 9% from current levels. 

Why this unique ASX ETF could be an option 

It’s important for investors to understand that broker targets aren’t guarantees, and analysts can be wrong. 

However, the current consensus suggests the major banks may offer limited capital growth after their strong run. 

For investors who still want exposure to the sector without relying heavily on any single bank, a diversified ASX ETF such as VanEck Australian Banks ETF (ASX: MVB) could be a smart investment. 

It includes a majority exposure to the big four banks in one simple trade, as well as three other large ASX financials shares. 

It may help investors diversify their exposure to the big four banks. 

The post What are experts tipping for the big four bank shares in the back half of 2026? appeared first on The Motley Fool Australia.

More reading

• How much passive income can I earn off a $50,000 portfolio?
• ANZ, NAB, Westpac and CBA shares: Brokers rate 2 a sell, and 2 a hold
• Here’s the earnings forecast out to 2027 for ANZ shares
• Are CBA shares still worth buying for the long term?
• How to build a successful ASX dividend portfolio

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

ASX dividend shares can be some of the best ways to unlock a good level of passive income. I want to highlight two businesses that have dividend yields above 6%.

I think some dividend yields can be too high if they’re not going to be sustainable payouts for the long-term. I don’t want to invest in things where the dividend payout is likely to decline in the coming years.

Of course, dividends are not guaranteed. But, some businesses are more likely to grow their payouts than others. Below are two I’m excited by.

Dexus Industria REIT (ASX: DXI)

This business is a real estate investment trust (REIT) that invests in industrial property across Australia. The industrial property sector has a low vacancy rate, which is a useful tailwind for rental growth, along with demand growth in areas like e-commerce adoption and data centres.

The ASX dividend share’s FY26 payout comes to 16.6 cents per security, representing a distribution payout ratio of 95.4%. I think it’s useful to see when a business is retaining some of its profit to invest in future opportunities.

The projected payout comes to a dividend yield of 6.8%. This business looks like a bargain to me because it’s trading at a 28% discount to the net tangible assets (NTA) of $3.39 as of 31 December 2025.

The fund manager of the REIT, Jason Weate, said with the HY26 result:

While the industrial sector has continued to normalise, underlying supply-demand fundamentals are solid. Vacancy remains low across core industrial markets, with high land and construction costs putting pressure on pipelines. In the medium to long term, the sector will continue to be supported by a growing population and limited available supply.

In my view, this bodes well for the ASX dividend share’s future payouts, particularly if the business can continue its solid mid-to-high single digit rental income growth.

MFF Capital Investments Ltd (ASX: MFF)

The other ASX share I want to highlight is this listed investment company (LIC), which aims to invest in high-quality international businesses with competitive advantages that enable them to grow earnings over the long term.

When a LIC generates strong investment returns over time, they can deliver pleasing and rising dividends for investors. MFF is invested in several of the best, strongest companies that enable the MFF portfolio as a whole to do well.

MFF has increased its regular annual dividend per share each year since FY18, so it has already given investors several years of consecutive dividend growth and it wants to continue that track record.

The business has increased its annual dividend per share by 4 cents in the last couple of financial years and I expect this trend to continue in FY27. That means its potential FY27 could be a grossed-up dividend yield of 6.9%, including franking credits, at the time of writing.

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

If you are hunting for ways to gain exposure to copper and gold outside the giants of BHP Group Ltd (ASX: BHP) and Newmont Corporation (ASX: NEM), then it could be worth considering the ASX stock in this article.

This is especially the case given how Bell Potter believes its shares could rise by over 200% between now and this time next year.

Which ASX copper and gold stock?

The stock that has caught the eye of Bell Potter is LinQ Minerals Ltd (ASX: LNQ).

It is a Perth based gold-copper exploration and development company whose primary asset is the Gilmore Gold-Copper Project. 

Bell Potter highlights that it hosts the full suite of Macquarie Arc intrusive related copper and gold systems and is prospective for a range of economic deposits including analogues to the nearby Northparkes, Cadia, and Cowal systems.

The broker was pleased with the ASX stock’s recent drilling results. It said:

These are strong first pass results from a maiden drill program that has delivered a 3 from 3 strike rate so far. The copper equivalent grades (and constituent gold and copper grades) are competitive with the Resource grades of large-scale copper-gold mines operating in Australia (Carrapateena, Northparkes and Cadia) and development projects such as Evolution Mining’s (EVN, Buy, TP $16.60/sh) Marsden. 

The testing of Monza is at an early stage and results from a further 5 holes from the maiden program are anticipated in the coming weeks. Further strong results could materially upgrade the prospectivity at Monza, see it prioritised by LNQ and gain recognition in the market.

Speculative buy with major upside potential

According to the note, in response to the drilling results, the broker has retained its speculative buy rating and 90 cents price target on the ASX copper and gold stock.

Based on its current share price of 28 cents, this implies potential upside of 220% for investors over the next 12 months.

To put that into context, a $2,000 investment would be worth $6,400 by this time next year if Bell Potter is on the money with its recommendation.

Commenting on its investment thesis, the broker said:

Our valuation is based on a blended EV per Resource ounce multiple and a risk adjusted notional mining scenario, both developed under conservative assumptions. We see the foundations of a competitive development project that is undervalued by the market. Current and planned drilling programs have the potential to highlight this and catalyse a re-rating. We retain our Speculative Buy recommendation.

The post Which ASX copper and gold stock could rocket 200%? 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.