Author: openjargon

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Boss Energy Ltd (ASX: BOE) has returned to the top of the list after its short interest increased to 17.4%. Production concerns have been weighing on this uranium producer’s shares.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 16.1%. Short sellers don’t appear to have faith in the pizza chain operator’s turnaround strategy.
• Treasury Wine Estates Ltd (ASX: TWE) has seen its short interest rise again to 14.4%. This wine giant is releasing its half-year results today. Short sellers seem to believe the company will disappoint the market.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 13.8%, which is down week on week. Valuation concerns and a poor performance in the US could be why short sellers are targeting this burrito seller.
• Telix Pharmaceuticals Ltd (ASX: TLX) has short interest of 12.5%, which is up week on week. This radiopharmaceuticals company has been struggling with delays to FDA approvals.
• Polynovo Ltd (ASX: PNV) has short interest of 12.1%, which is flat since last week. This medical device company’s shares are trading on high multiples. Short sellers may not expect its growth to justify this premium valuation.
• IDP Education Ltd (ASX: IEL) has 11.5% of its shares held short, which is up week on week. This student placement and language testing company has been having a tough 18 months due to student visa changes in key markets.
• Flight Centre Travel Group Ltd (ASX: FLT) has short interest of 11%, which is down week on week. Short sellers appear to be betting against this travel agent delivering on its revenue margin targets.
• IPH Ltd (ASX: IPH) has short interest of 11%, which is flat week on week. Weaker volumes and market share losses appear to be why short sellers are targeting this intellectual property services company.
• PWR Holdings Ltd (ASX: PWH) has short interest of 10.1%, which is down slightly week on week. This automotive cooling products company’s shares trade on lofty multiples.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, PWR Holdings, PolyNovo, Telix Pharmaceuticals, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended PWR Holdings and Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Flight Centre Travel Group, IPH Ltd , PolyNovo, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

New Hope Corp Ltd (ASX: NHC) shares are jumping higher today following the release of the miner’s quarterly results.

Shares in the S&P/ASX 200 Index (ASX: XJO) coal stock closed on Friday trading for $4.72. In late morning trade on Monday, shares are changing hands for $4.82 each, up 2.1%.

For some context, the ASX 200 is up 0.1% at this same time.

With today’s intraday gains factored in, New Hope shares are now up 8.5% over the past 12 months, handily beating the 4.6% one-year returns delivered by the benchmark index.

And that’s not including the 34 cents a share in fully franked dividends New Hope paid out over this period. The ASX 200 coal stock trades on a fully franked 7.1% trailing dividend yield.

Part of that outperformance has been driven by New Hope’s own operational successes on and beneath the ground. The miner has also enjoyed a rebound in global coal prices. Thermal coal is trading near its recent 12-month highs of US$116 per tonne, up from US$94 per tonne last April.

And looking to the months ahead, Fairmont Equities’ Michael Gable forecasts more outperformance to come (courtesy of The Bull).

Here’s why.

New Hope shares still in the buy zone

“I believe global demand for coal will remain elevated moving forward,” said Gable, citing the first reason you might want to buy New Hope shares today.

As for the second reason the ASX 200 coal stock could continue to outperform, Gable said:

New supply is also constrained due to ESG (environmental, social, governance) concerns. Governments around the world are keeping coal in the mix when it comes to power generation and the price of coal was recently starting to rise again.

Gable rounded off with the third reason, concluding, “Strong buying support is emerging in coal producers, such as NHC, and I believe it’s still early enough to buy back into this company.”

What did the ASX 200 coal stock report?

For the three months ending 31 January, New Hope reported a 4.8% quarter-on-quarter increase in Run of Mine (ROM) coal production to 4.1 million tonnes. Coal sales of 2.9 million tonnes were up 8.2%.

As mentioned up top, New Hope shares have enjoyed tailwinds from rising global coal prices. Over the quarter, the miner achieved an average realised sales price of $139.0 per tonne, up 1.8% from the prior quarter.

New Hope reported quarterly underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $106.9 million, in line with last quarter.

Commenting on the results, New Hope CEO Rob Bishop said:

Our operations delivered improved productivity and output on the back of better mining conditions and logistics performance. We are focused on maintaining safe, reliable production and delivering value to our shareholders.

The post 3 reasons to buy New Hope shares today appeared first on The Motley Fool Australia.

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• Buy, hold, sell: BHP, Hub24, and New Hope shares
• Here are the top 10 ASX 200 shares today
• Up 13% in a month, 4 reasons to buy New Hope shares today
• Here are the top 10 ASX 200 shares today

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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Australian Clinical Labs Ltd (ASX: ACL) have hit their lowest levels since listing on the ASX after the company announced its Chief Executive Officer is leaving.

Shares in the company hit a low of $2.08 before recovering slightly to be changing hands for $2.16, down 10.7%, on Monday.

The company, which also released its first half results on Monday, said that CEO Melinda McGrath, “has confirmed that she will not be renewing her contract following its conclusion on 30 August 2026”.

Ms McGrath, the announcement said, had been with the company for 10 years, including leading it through its listing on the ASX in 2021.

Ms McGrath said in a statement:

I would like to take this opportunity to thank our pathologists and scientists for their leadership, and the broader Clinical Labs team for their passionate commitment to the service of our patients and referring medical practitioners. In particular, I would like to recognise the Clinical Labs executive and broader leadership teams, whose drive and innovative approach to the development of the business has been outstanding. It has been a privilege to work with them over the past ten years. I wish them and the Board the best in the future as they continue to grow the business.

The company said a recruitment process had started, and shareholders would be kept up to date.

Underlying result positive

In a separate announcement the company said it had generated $365.4 million in revenue in the first half, down 1%, while net profit was 52.4% lower at $5.6 million.

On an underlying basis net profit was up 9.1% at $13.1 million.

The company said in its announcement to the market that revenue fell because of “subdued market conditions and … portfolio rationalisation”.

The company added:

While market growth was tempered, there was continued strength in Genetic and Reproductive Health testing, with above market expansion in carrier screening and improved performance in non-invasive prenatal testing and fertility related services. Oncology genomic testing volumes increased significantly, supported by the introduction of EndoPredict to the Medicare Benefits Schedule, resulting in strong uptake from oncologists. Specialist referral growth remained positive, particularly in outpatient settings.

Australian Clinical Labs said it was also in the final stages of testing for artificial intelligence-enabled back-office tools, which it said, “are expected to unlock meaningful cost savings in late FY26 and onward”.

The company will pay an interim dividend of 3.75 cents per share, in line with the same period last year.

Australian Clinical Labs was valued at $465.2 million at the close of trade on Friday.

The post Australian Clinical Labs shares hit record low as CEO to exit 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.

Aurizon Ltd (ASX: AZJ) shares are among the better performers in the S&P/ASX 200 Index (ASX: XJO) on Monday after the company’s first-half profit beat consensus estimates, it boosted its interim dividend, and also beefed up its on-market share buyback.

But does that mean the company’s shares are a buy? We’ll get to that later. Firstly to the result.

A solid set of numbers

The rail transport company reported EBITDA of $891 million, up 9% on the same period the previous year, with earnings driven by “higher volumes, a regulatory revenue uplift and disciplined cost control”.

The company also boosted its dividend payout ratio to 90% of underlying net profit, up from a range of 70% to 100% previously, and will pay an interim dividend of 12.5 cents per share, up from 9.2 cents.

The company also said it would extend its on-market share buyback by $100 million, making it now worth up to $250 million.

Managing Director Andrew Harding said it was a solid result.

Today’s results underscore the strength of Aurizon’s two largest business units, Network and Coal and the continued growth of Bulk and Containerised Freight. Revenue growth was driven by regulatory uplift and higher volumes, while disciplined cost control — including the successful execution of last year’s $60 million cost‑out program — further strengthened our position. This strong performance has flowed through to increases in our net profit after tax, free cash flow and earnings per share. We are also making good progress executing against key strategic objectives.

On the outlook, the company maintained its full-year guidance for underlying EBITDA in the range of $1.68 to $1.75 billion, with the full-year dividend now expected to be 22 to 23 cents per share, up from a previous guidance of 19 to 20 cents per share.

The network division was expected to post increased earnings compared with FY25 due to an increase in regulatory revenue, while the coal division was also expected to increase earnings driven by increased volumes and flat unit costs.

Analysts applaud a solid result

Jarden analysts said the result was a strong beat on core earnings per share, coming in 9% above expectations.  

They said the strength in the coal and bulk freight divisions was reassuring, while containerised freight appeared to still be a drag.

The Jarden team said, “Coal, Bulk and Network beats should drive share price strength”.

RBC Capital Markets analysts said the result was positive, with the interim dividend comfortably beating consensus estimates of 9.7/9.8 cents per share.

Aurizon shares were 5.2% higher in early trade on Monday at $3.77, after briefly trading as high as $3.92, which was a 12-month high.

Both analysts think Aurizon is fully priced at current levels, with Jarden having a price target of $3.45 on the shares and RBC a $3.40 target.

Aurizon was valued at $6.15 billion at the close of trade on Friday.

The post A bigger than expected dividend has Aurizon shares performing well, but are they fully-priced? appeared first on The Motley Fool Australia.

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BHP Group Ltd (ASX: BHP) shares are slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed on Friday trading for $51.13. In morning trade on Monday, shares are changing hands for $50.42, down 1.2%.

For some context, the ASX 200 is up 0.2% at this same time.

Taking a step back, BHP shares have been strong performers over the past full year, gaining 23.6%. And that’s not including the two fully franked BHP dividends, totalling $1.71 a share, that eligible stockholders will have received over this period.

As for how much the next interim BHP dividend will be, investors will learn that tomorrow when the miner reports its half year results (H1 FY 2026).

Which brings us back to our headline question.

Should you buy BHP shares today?

BHP’s ongoing stoush with China over the mechanisms to price its iron ore imports may weigh on investor sentiment when the ASX 200 mining stock reports its results tomorrow.

However, I don’t expect that the reported decline in BHP’s Jimblebar Fines iron ore exports to the Middle Kingdom will have a material impact on its H1 FY 2026 revenue or profits. Though it may be different story for the second half of the financial year.

As for the first half, I expect that a resilient iron ore price over the six-month period (iron ore counts as the miner’s top revenue earner) and surging copper prices (the miner’s number two revenue earner), should help support BHP shares on the heels of tomorrow’s results.

At its second quarter (Q2 FY 2026) results, the miner reported a 5% year on year increase in quarterly iron ore production to 69.7 million tonnes. And the price it received for the industrial metal was up 4%.

Quarterly copper production of 490,500 tonnes (kt) was down 4% year on year. However, BHP lifted its full year FY 2026 copper production guidance to 1,900–2,000 kt (from the prior 1,800–2,000 kt).

“We have increased FY26 group copper production guidance off the back of stronger delivery across our assets,” BHP CEO Mike Henry said.

The average copper price BHP received over the quarter was up 32% from the prior year.

What are the experts saying?

Fairmont Equities’ Michael Gable analysed the outlook for BHP shares late last week (courtesy of The Bull).

“Despite recent volatility, I expect commodity prices to continue heading higher during 2026,” he said, which should offer tailwinds for BHP shares.

However, Gable isn’t ready to pull the trigger just yet, issuing a hold recommendation on the Aussie mining giant.

According to Gable:

I believe investors who are still underweight in the resources sector will start to rotate into the miners.

Global diversified miner BHP Group, which recently was the biggest company on the ASX by market capitalisation, is likely to be the top choice of most investors looking for a blue chip company paying a healthy dividend amid the prospect of capital growth.

Stay tuned!

The post Should you buy BHP shares ahead of tomorrow’s earnings results? appeared first on The Motley Fool Australia.

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

Looking to make some post-results investments? Well, let’s see what analysts at Morgans are saying about three ASX 200 shares following the release of their updates.

Does the broker rate them as buys, holds, or sells? Let’s find out:

Northern Star Resources Ltd (ASX: NST)

Morgans thinks this gold miner’s shares are fully valued now. In response to its half-year results, the broker has downgraded Northern Star shares to a hold rating with a reduced price target of $30.50.

The broker saw positives from the result, but delays with the Hemi operation overshadowed them. However, it concedes that it had been expecting this to be the case. It said:

NST reported its 1H26 result with no major earnings surprises, with key revisions to production, costs and guidance well flagged ahead of the print. The half yearly fully franked dividend of 25cps was a clear beat (+20%/+26% vs MorgansF/consensus). Key positive: The half year dividend of 25cps exceeded expectations but remained within the stated 20-30% cash-earnings payout range, landing toward the upper end rather than the lower end that MorgansF and consensus had forecast given the softer operating half.

Key negative: The development timeline to first gold at the second major growth project, Hemi, has been officially pushed to FY30. While negative at face value, this timing was already reflected in MorgansF and the majority of consensus forecasts.

Temple & Webster Group Ltd (ASX: TPW)

Bell Potter remains positive on this online furniture and homewares retailer despite a softer than expected half-year result. It has retained its buy rating with a reduced price target of $13.00.

The broker continues to believe that Temple & Webster shares are well-positioned to outperform over the long term as the company grows its market share. It explains:

Our PT decreases by 33% to A$13.00 (prev. A$19.50). Along with our earnings revisions, we reduce our target multiples by ~30% to ~20x EV/EBITDA (prev. ~27x) on FY27e EBITDA and ~2x EV/Sales (prev. ~3x) on FY27e Sales (25:75 blend). Our views are unchanged of TPW’s ability to outperform over the long term as market share capture in an expanded TAM is expedited with range, pricing/scale advantages, AI/data capability backed by a strong balance sheet (~$160m cash).

Westpac Banking Corp (ASX: WBC)

Morgans was relatively pleased with this big four bank’s quarterly update. However, it is only enough for the broker to upgrade Westpac shares to a trim rating (between sell and hold) with a price target of $35.12.

Commenting on the bank, Morgans said:

A largely stable 1Q26 result compared to the 2H25 quarterly average (normalised for 2H25’s restructuring charge), which is better than 1H26 expectations. We are assuming a more bullish loan growth and impairments outlook than previously (and slightly more conservative costs). There is no change to FY26F EPS but there are 5-8% upgrades to FY27-28F. Target price lifts to $35.12/sh. We upgrade to TRIM given the improved, but still negative, potential TSR.

The post Buy, hold, sell: Northern Star, Temple & Webster, and Westpac shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster 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 were sold off heavily last week on a first-half profit result that the market clearly did not like.

The question now is, what’s next for Cochlear shares? We’ve had a look at the opinions of four major brokers, and it’s fair to say they all seem to think the share price sell-down last week was overdone.

But first, let’s have a look at the profit result.

Weak set of numbers

Cochlear last week reported revenue, which was just 1% higher (or down 2% in constant currency terms) to $1.176 billion, while underlying net profit fell 9% to $195 million.

The company kept its interim dividend steady at $2.15 per share, which represents a 72% payout of underlying net profit.

While the company’s net profit fell for the half, it said it expected a strong second half, “driven by the broad availability of the Nexa System, strong growth in services and improved momentum for acoustics”.

In terms of the numbers, the company said its expected underlying full-year net profit to come in at the lower end of the $435 to $460 million guidance range provided in August 2025, “reflecting the longer than anticipated contracting process for the Nexa Implant System in the first half”.

The company added:

As we look to the future, we remain confident of the opportunity to grow our markets. There remains a significant, unmet and addressable clinical need for cochlear and acoustic implants that is expected to continue to underpin the long-term sustainable growth of the business. Our clear growth opportunity and the rising awareness of the link between cognitive decline and hearing loss, combined with a strong balance sheet, mean we are well placed to create value for our stakeholders now, and over the long term.

Shares looking cheap

Now to the brokers, and UBS has a bullish price target of $350 on Cochlear shares compared with $203.70 on Monday.

They do point out that the strong Australian dollar is a headwind for Cochlear, even though the company has a hedging program.

UBS said while the company reported market share losses in the first half, a recovery was expected in the second half, with Cochlear expecting 10% top-line growth.

UBS has a buy recommendation on the shares.

The Barrenjoey team has a neutral rating on the stock, while it still has a bullish price target of $241.50 for Cochlear shares.

They said they saw the company’s medium and long-term growth drivers as “attractive”, with a large addressable market with unmet needs, and high barriers to entry for competition.

Canaccord Genuity has a buy rating on the stock but has reduced its price target to $295 per share from $330.

They also said the share sell-down last week was overdone.

And finally, Macquarie has a neutral recommendation on the stock, albeit with a positive share price target of $239.

The post Where to from here for Cochlear shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

Clarity Pharmaceuticals Ltd (ASX: CU6) shares are catching the eye on Monday.

In morning trade, the ASX 300 stock is up a sizeable 18% to $3.38.

Why is this ASX 300 stock jumping?

Investors have been buying this clinical-stage radiopharmaceutical company’s shares after it released key findings from its Co-PSMA Phase II Investigator-Initiated Trial, which compared 64Cu-SAR-bisPSMA against 68Ga-PSMA-11 in 50 prostate cancer patients experiencing biochemical recurrence following surgery.

According to the release, the ASX 300 stock reported that 64Cu-SAR-bisPSMA more than doubled the number of prostate cancer lesions detected per patient compared to the standard-of-care scan. On average, patients had 1.26 lesions detected using Clarity’s product versus 0.48 using 68Ga-PSMA-11. The difference was statistically significant (p <0.0001).

In total, the standard scan detected 24 lesions across all patients. Clarity’s next-day imaging detected 63 lesions.

Even more notably, at a per-patient level, only 36% of patients had a positive scan using 68Ga-PSMA-11. By comparison, 78% of patients were identified as having prostate cancer recurrence using 64Cu-SAR-bisPSMA.

That means around four out of five patients had disease detected using Clarity’s product, versus just over one in three with the current standard scan.

Why is this important?

Prostate cancer patients with rising PSA levels after surgery often face uncertainty if imaging fails to detect the site of recurrence. More sensitive imaging can directly influence treatment decisions.

According to the announcement, planned patient management changed in 44% of trial participants after assessment with 64Cu-SAR-bisPSMA. That is a significant clinical impact.

The abstract outlining these findings has been accepted for oral presentation at the 2026 European Association of Urology Congress, one of the largest urology conferences globally.

‘Exceptional’

Commenting on the news, the ASX 300 stock’s executive chair, Dr Alan Taylor, said:

The data from the Co-PSMA trial are nothing short of exceptional. We already knew of the significant benefits of the optimised bisPSMA molecule from the early days around 7 years ago, when it was purposely developed to overcome the many shortfalls of the current single-targeting SOC PSMA imaging agents.

This innovative benchtop research of the dual-targeting bisPSMA agent quickly progressed to multiple clinical trials, including COBRA6, PROPELLER7 and SECuRE8, which enabled us to secure three Fast Track Designations from the United States (US) Food and Drug Administration (FDA) and advance to two registrational trials, AMPLIFY9 and CLARIFY10, both of which are nearing completion of recruitment.

The post Guess which ASX 300 stock is jumping 18% on big news 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.

The Treasury Wine Estates Ltd (ASX: TWE) share price is slipping today.

Shares in the S&P/ASX 200 Index (ASX: XJO) global wine company closed on Friday trading for $5.24. In morning trade on Monday, shares are swapping hands for $5.15 apiece, down 1.7%.

For some context, the ASX 200 is up 0.3% at this same time.

This follows the release of Treasury Wine’s half-year results (H1 FY2026).

Here’s what’s happening.

Treasury Wine share price slides on tumbling profits

Investors had been bracing for some tough figures from the wine company for the six-month period. As well they should.

Treasury Wine reported net sales revenue of $1.3 billion in H1 FY 2026, down 16% year on year.

And while earnings came within guidance of $225 million to $235 million, that’s unlikely to offer a lot of lift to the Treasury Wine share price today. EBITS came in at $236.4 million, down 39.6% year on year.

Management said earnings were impacted by adverse category trends in the United States and China, as well as restriction of shipments contributing to parallel import activity in China and cycling of prior year shipments.

And on the bottom line, the company reported a statutory net profit after tax (NPAT) loss of $649.4 million. That’s down from a $221 million profit in H1 FY 2025. The half-year loss was reported to be fuelled by post-tax material items loss of $751 million due to non-cash impairment of US-based assets, pre material items, and SGARA (self-generating and regenerating assets).

The Treasury Wine share price also looks to be under pressure, with the passive income tap being turned off. With the company operating in the red, management suspended the Treasury Wine dividend.

That means that FY 2026 will be the first year in more than a decade that stockholders won’t receive two dividends from the global wine company. In H1 FY 2025, Treasury Wine paid a partly franked dividend of 20 cents per share.

Treasury Wine said its near-term focus is on market execution, cash flow, and accelerating the benefits from its Project Ascent program, which aims to achieve $100 million in annual cost savings over two to three years.

The company forecasts better earnings in the second half of FY 2026.

What did management say?

Commenting on the results pressuring the Treasury Wine share price today, CEO Sam Fischer said, “Today’s results come at a time when we are already making meaningful progress with the decisive actions required to return TWE to a path of sustainable, profitable growth.”

Noting the company’s focus is “firmly on the future” to build a resilient long-term business, Fischer said:

TWE Ascent is the key enabler of this reset. It is a disciplined, multi-year transformation program designed to sharpen our portfolio, simplify the organisation and optimise our cost base, and I am pleased with the progress we have made to date.

The post Treasury Wine share price slides as dividends dry up appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended 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.

Reporting season gives analysts an up-to-date view on businesses when they deliver their result. I think this is a great time to look at compelling ASX shares that could be strong picks. There are certain businesses that numerous experts think are buys.

When one analyst thinks a business is a buy, that’s interesting. When there are numerous experts rating an ASX share as a buy, that could signal there’s a clear, compelling opportunity. Time will tell if they’re right.

Let’s look at two, non-tech companies.

Amcor (ASX: AMC)

According to the Commsec’s collation of analyst views on the flexible and rigid packaging ASX share, there are currently 18 buy ratings.

UBS is one of the brokers that rate the business as a buy, with a price target of $91.25, suggesting a pleasing double-digit rise over the next year from where it is today.

The broker said that the earnings per share (EPS) generated in its FY26 second quarter was “reasonable” and at the midpoint of its guidance, while being 3% ahead of market expectations.

UBS noted that company is still expecting FY26 EPS to growth of between 12% to 17%, with the market assuming the company will hit the low end of this guidance.

The broker also highlighted that the business provided third-quarter EPS guidance of between 90 cents to $1, with confidence of delivering synergies of at least $260 million in FY26 and $650 million over three years. Growth synergies also appear to be “gaining momentum” as well, with a run-rate $100 million of annualised sales secured so far.

UBS then explained why it rates the business as an appealing buy:

We maintain our Buy rating, with Amcor offering a 12% 3yr EPS CAGR, underpinned by the potential delivery of $650mn in synergies and accretion on the all-stock merger with Berry.

We think potential EPS upgrade momentum could be supported by accelerated synergy realisation over the next 24 months. We believe Amcor’s revised capital allocation framework also positions the company to allocate increased FCF [free cash flow] to support deleveraging, investment in higher growth categories and potential capital returns (ie, share buy backs).

Delivery on these should support a P/E re-rate from 11x to 15x, which is where the stock has typically traded when offering double-digit EPS growth.

AGL Energy Ltd (ASX: AGL)

According to the Commsec collation of analyst views on the ASX share, there are currently nine buy ratings on the ASX share.

UBS is one of those brokers that rates this energy retailer and generator as a buy, with a price target of $11.00.

The broker noted that AGL’s underlying operating profit (EBITDA) and net profit were 7% and 21% ahead of market expectations, respectively, supported by strong realised gas retail pricing and generation available.

UBS noted that AGL expects volatility to prevail in the long-term and owning low-cost capacity assets with some operating flexibility to capture a greater share of higher price periods (such as AGL’s Loy Yang A and Bayswater power stations) place AGL “in a strong position to grow underlying EBITDA” year-over-year to 2030, as long as generation availability is maintained.

The broker forecasts UBS will grow EBITDA at a CAGR of 10% and net profit at a CAGR of 15% between FY26 to FY30, which is more than other market analysts are suggesting.

UBS also said that the recent result confirmed that AGL’s battery portfolio is “performing well ahead of its own expectations & reiterated that batteries can sustain post tax unlevered asset returns at the upper end of its 7-11% target range—despite accelerating growth in both utility scale & residential battery installs.”

Then UBS added to its explanation why it thinks the ASX share is attractive:

Over time as the market builds confidence that low cost capacity assets will become increasingly valuable, we believe market estimates should reflect multi-yr EPS upgrades supporting a growing div profile with upside pending the Board’s willingness to reward shareholders with stronger payouts.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.