Author: openjargon

Some share price falls are warnings.

Others can be opportunities hiding in plain sight.

That is why I think Cochlear Ltd (ASX: COH) shares deserve a closer look after their heavy decline. The ASX 200 healthcare stock has been sold down sharply, and confidence in the business is clearly weaker than it was before.

But for long-term investors, I think this could be one of the more interesting buying opportunities on the ASX today.

A world leader in a specialised market

Cochlear is not just another healthcare company.

It is a global leader in implantable hearing solutions, with products that can make a life-changing difference for people with moderate to profound hearing loss.

That gives the business a very different profile from many ASX shares.

Cochlear is not relying on discretionary spending, commodity prices, or housing turnover. It is exposed to a large healthcare need that should keep growing as populations age, diagnoses improve, and access to treatment expands.

Hearing loss is a major global issue, and many people who could benefit from treatment still do not receive it. That creates a long runway for companies with trusted technology, clinical relationships, and global distribution.

I think Cochlear has all three.

Why the fall interests me

The market has become much less willing to pay a premium for Cochlear shares.

There are reasons for that. Investors have questioned growth, margins, competition, and whether the company can keep delivering the level of performance that once justified a much higher valuation.

Those concerns should not be ignored.

But the valuation now looks far more interesting. According to CommSec consensus forecasts, Cochlear shares are trading on an estimated FY27 P/E ratio of 18 times.

For a global healthcare leader with a long runway in hearing solutions, I think that looks attractive.

Cochlear still needs to execute well, keep innovating, and protect its position in a competitive healthcare market. But I think the sell-off may have pushed the share price into more appealing territory for patient investors.

A business worth backing for the next decade

The phrase “once-in-a-decade opportunity” should not be used lightly.

Cochlear shares could fall further. Healthcare funding can be complicated, competition can intensify, and expectations may take time to rebuild.

But I do think the current weakness is unusual for a business of this calibre.

High-quality healthcare companies with global leadership positions do not often trade at depressed prices. When they do, I think investors should at least ask whether the market is being too focused on recent disappointment.

For me, the key question is whether Cochlear’s long-term opportunity has been permanently damaged.

I do not think it has.

The world will still need better hearing solutions. More people will still need diagnosis and treatment. Healthcare systems will still value proven technology that can improve patient outcomes.

If Cochlear can keep investing in product development, supporting clinicians, and expanding access, I think the business can recover and grow over the next decade.

Foolish Takeaway

Cochlear shares are out of favour, and that is exactly why they look interesting.

The market is no longer treating the ASX 200 stock like an untouchable healthcare compounder. That creates discomfort, but it may also create opportunity.

I would not expect a quick or smooth rebound. Confidence can take time to return after a major sell-off.

But for investors willing to think in years rather than months, I think Cochlear could be a rare chance to buy a world-class ASX 200 healthcare stock while expectations are unusually low.

The post Could this fallen ASX 200 stock be a once-in-a-decade opportunity? appeared first on The Motley Fool Australia.

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• Are these 2 battered ASX healthcare shares too cheap to ignore?
• $10,000 invested in Cochlear shares in July is now worth…

Motley Fool contributor Grace Alvino 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.

Life360 Inc (ASX: 360) shares are marching higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) family location sharing software developer closed on Friday trading for $18.44. In morning trade on Monday, shares are changing hands for $18.83 each, up 2.1%.

That’s a strong showing on any day, but even more so considering that the ASX 200 is down a sharp 1.1% at this same time.

Despite today’s outperformance, Life360 shares remain down just over 38% over the past 12 months. That decline has come amid broader market fears over AI’s potential to displace a lot of software as a service (SaaS) business.

Now, here’s what’s got investors favouring their buy buttons.

Life360 shares lift on $225 million buyback news

Investors are bidding up the beleaguered ASX 200 stock after the company announced the launch of a multi-year share repurchase program.

The program will see up to $225 million worth of Life360 shares repurchased.

The board said the buyback is supported by the company’s strong balance sheet and twelve consecutive quarters of positive operating cash flow. The program is intended to return value to shareholders by minimising dilution from stock-based instruments, like employee and executive share options.

Commenting on the share buyback, Life360 CEO Lauren Antonoff said:

We remain focused on investing in the Life360 platform as we grow our global member base and deepen the value we deliver to families.

This targeted share repurchase program reflects the Board’s confidence in the durability of our model, our disciplined capital allocation, and our ability to generate consistent long-term cash flow.

What’s the latest from the ASX 200 tech stock?

The last price-sensitive release for Life360 shares was the company’s quarterly results (Q1 2026), announced on 12 May.

Highlights for the three months included a 38% year-on-year increase in total revenue to US$143.1 million.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were up 7% to US$17.1 million. And the company reported first-quarter operating cash flow of $17.2 million, up 42% from Q1 2025.

“Life360 has become a meaningful part of everyday family life for more than 97 million people who use Life360 to keep their families safe and connected,” Antonoff said.

And she noted that rather than threatening its business, AI is helping the company’s transformation.

According to Antonoff:

The value we deliver to our members powered record-breaking Paying Circle additions in Q1. At the same time, our Life360 Ads platform scaled to become a material part of our business.

And with AI, we’re moving faster than ever to transform Life360 into the super app that makes everyday family better.

The post Why Life360 shares are jumping higher in Monday’s falling market 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 Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Pro Medicus Ltd (ASX: PME) shares are back in favour on Monday after the healthcare imaging software company landed another major US contract.

At the time of writing, the Pro Medicus share price is up 7.19% to $130.89.

Despite today’s gain, it has been a painful stretch for shareholders. Pro Medicus shares are still down around 40% in 2026 and 52% over the past year.

Let’s take a closer look at the release.

A $90 million US contract lands

In its ASX release, Pro Medicus said its US subsidiary, Visage Imaging, has signed a 7-year, $90 million contract with Beth Israel Lahey Health.

Beth Israel Lahey Health is a healthcare system based in Boston. It brings together academic medical centres, teaching hospitals, community and specialty hospitals, more than 4,700 physicians, and 39,000 employees.

The network has 14 hospitals serving patients in Eastern Massachusetts and Southern New Hampshire.

Under the contract, Beth Israel Lahey Health will use Pro Medicus’ cloud-based Visage 7 Enterprise Imaging Platform.

The deal covers Visage 7 Viewer, Visage 7 Workflow, and Visage 7 Open Archive.

The software will be used to view diagnostic images, manage imaging workflow, and store archived images across the health network.

The company said the rollout will begin immediately, with go-live targeted for the first quarter of calendar year 2027.

Why investors are taking notice

The size of the contract is already significant, but the way it is priced appears to be another reason investors are liking the update.

Pro Medicus said the contract is based on a transactional licensing model, which gives the agreement potential upside if usage grows over time.

It also expands the company’s cloud-based footprint in the North American market.

Chief Executive Dr Sam Hupert said:

Beth Israel Lahey Health provides extraordinary, cutting-edge patient care.

They join an ever-growing list of Visage 7 clients to opt for our fully cloud-based platform, which, as a result of our CloudPACS strategy, is becoming the standard in the North American healthcare IT market.

He also noted:

Our pipeline remains strong and spans all market segments. This deal is for our ‘full stack’ comprising all three core Visage products, namely viewer, workflow and archive, a trend we see continuing.

A senior executive is leaving

The update also comes as The Australian reported that Clayton Hatch will leave the business on 14 August.

Hatch has spent almost 18 years with the company, including a long period as Chief Financial Officer. He has most recently worked as head of business operations and investor relations.

While his departure isn’t the main focus of today’s share price move, it is still notable given his long history with the company.

The post Pro Medicus shares jump as massive US contract win turns heads appeared first on The Motley Fool Australia.

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

Tuas Ltd (ASX: TUA) shares are having a day to forget on Monday.

In morning trade, the ASX 200 telco share is down a massive 69% to a two-year low of $1.91.

This has knocked more than A$2 billion off the Singapore-based mobile and broadband operator’s market capitalisation.

What is Tuas?

As mentioned above, Tuas is a Singapore-based telco, chaired by former TPG Telecom Ltd (ASX: TPG) CEO and founder David Teoh.

In March, the company released its half-year results and revealed a 25.5% increase in revenue to S$91.9 million. Things were even better for its earnings, with EBITDA rising 27% to S$42.1 million, and net profit after tax increasing over 500% to S$18.7 million.

The key driver of this growth was its SIMBA mobile business, which has recorded strong subscriber growth in broadband services and mobile services.

However, the shock news today is that Tuas’ SIMBA business has allegedly been using spectrum that it doesn’t own.

As a result, the Infocomm Media Development Authority of Singapore (IMDA) has suspended its review of Tuas’ proposed acquisition of M1 Limited.

M1 acquisition

Last year, Tuas raised A$435 million from institutional and retail investors to partly fund the acquisition of M1 Limited.

It believed that the deal would create a stronger, more competitive telco in Singapore by combining SIMBA’s fast-growing digital consumer business with M1’s established network and enterprise capabilities, enabling greater scale, efficiency, and innovation.

The two parties agreed on a deal valued at S$1,430 million on a debt-free and cash-free basis.

However, there appear to be concerns that this deal could now be on the rocks following this news.

In a release this morning, Tuas stated:

The circumstance identified by the IMDA as giving rise to its decision to suspend the review is that it had learned that Simba may have been using radio frequency bands that it was not authorised to use, which would be a breach of the Telecommunications Act and the conditions of Simba’s Facilities-Based Operations Licence. Simba is fully co-operating with the IMDA. The Board of Tuas will also be reviewing the circumstances concerning the alleged unauthorised use of spectrum.

Speaking about the share purchase plan, the company added:

Tuas notes that the Share Purchase Agreement for the Transaction has a long-stop date of 21 May 2026. At this time, discussions with the counterparties to the Share Purchase Agreement are ongoing. Tuas will keep the market advised as developments occur.

It also remains to be seen if there will be penalties imposed on Tuas if it is found to have breached the Telecommunications Act in Singapore.

The post Why are Tuas shares crashing 69% on Monday? 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.

Brambles Ltd (ASX: BXB) shares plunged to a new 12-month low on Monday after the company sharply downgraded its profit outlook as it struggles to service its customers.

Investors head for the exit

Shares in the pallet supplier fell as low as $18.38 before recovering marginally to be changing hands for $18.44, down 16.6% in early trade.

This fall was despite Brambles announcing a new US$400 million on-market share buyback to be carried out over the remainder of this financial year and next year.

Brambles said in its statement to the ASX on Monday that increasing automation on the part of its customers was “leading to a requirement for consistently higher quality pallets compatible with these automated handling systems”.

Brambles said it was progressively increasing its repair quality to meet this demand, which had contributed to creating a bottleneck.

The company said:

During April 2026, this focus on quality consistency has coincided with short-term repair capacity constraints in parts of Brambles’ US subcontractor service centre network which Brambles expects to be resolved by the end of 1H27. These short-term repair capacity constraints have been driven by subcontractor turnover, labour availability challenges and the additional time required to repair pallets consistently to a higher standard. At the same time as repair capacity tightened, Brambles experienced higher than anticipated customer demand.

Brambles said these constraints were limiting its ability to fully service higher-than-expected demand, and there was also a “material” cost increase in the short term.

The company added:

Multiple measures are in place to improve service levels and restore pallet availability, including increasing pallet relocations, adding repair capacity and purchasing new pallets, including ~2 million in 4Q26, with additional pallet purchases expected in 1H27.

Profit aspirations scaled back

As a result, Brambles downgraded its sales revenue growth forecast to 2% to 3%, down from 3% to 4%, and downgraded its underlying profit growth forecast to 3% to 5%, down from 8% to 11%.

Much of that downgrade relates to a US$60 million impact from US repair capacity constraints, as well as some supply chain inefficiencies in Europe.

Brambles Chief Executive Officer Graham Chipchase said:

Today’s update reflects our increased focus on quality and customer outcomes, which has coincided with a combination of developments across the external operating environment and parts of our US subcontracted service centre network. Our immediate priority is to meet our customers’ needs and to restore stability and service in the affected parts of our US network. Our response and ongoing investments in quality reinforce that meeting our customers’ needs is non-negotiable. We will not compromise on the investment required to meet the quality, network resilience and service outcomes our customers expect. At the same time, we are making sure that we are positioned to meet our strategic objectives and do what is right for the long-term sustainability of the business. This includes ongoing investment in digital, automation and other customer initiatives, as we continue to deliver productivity and efficiency improvements across the business.

Brambles is valued at $29.38 billion.

The post Why are Brambles shares crashing more than 15% to a new 12-month low today? 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.

The Pro Medicus Ltd (ASX: PME) share price has been one of the hardest-hit over the past year, down 56%, as the chart below shows.

But the medical imaging and services software business may have been oversold, according to experts. For starters, we should remember that the business has very defensive clients including hospitals, imaging centres and healthcare groups, so demand for services remains strong year to year.

The company has a pleasing outlook for both revenue and profit growth, which could bode very well to regain investor confidence. Let’s look at how undervalued the business could be.

Pro Medicus share price target

A share price target is where analysts think the share price could go within the next 12 months. But, it’s just an analyst’s estimate based on various factors (including the company’s fundamentals) – it’s not a guaranteed return.

According to CMC Invest, there have been eight ratings on the business within the last three months. Of those ratings, seven were buys, and one was a hold.

The average price target of those eight ratings is $196.73, suggesting a possible rise of 61% in the next year from where it is at the time of writing.

The most exciting price target is $241.89. This suggests the Pro Medicus share price could almost double within the next year.

At the other end of the spectrum, the lowest price target is $143.14. This still suggests a possible rise of 17%.

Valuation

Let’s also look at the price/earnings (P/E) ratio because it’s important to consider whether the company is attractive or not, bearing in mind its potential earnings growth.

It’s hard to know how much AI competitors will affect the software industry in the coming years, but analysts are still positive on the company’s potential.

According to the projection on CMC Invest, the business is forecast to generate earnings per share (EPS) of $1.372 in FY26 and $1.863 in FY27.

That means it’s valued at 89x FY26’s estimated earnings and 65x FY27’s estimated earnings. The projection also suggests that the business could grow EPS by 35.8% year-over-year in FY27.

If the company continues winning new customers (and renewing contracts on better terms), and retaining an underlying operating profit (EBIT) margin above 70%, then I think the company’s net profit could rise significantly from here. This could justify the most optimistic analysts’ projection.

The post How much could the Pro Medicus share price rise in the next year? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Tristan Harrison has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) gold stock Ora Banda Mining Ltd (ASX: OBM) is marching higher today.

Ora Banda shares closed Friday trading for $1.355. In early morning trade on Monday, shares are changing hands for $1.41 apiece, up 4.1%.

For some context, the ASX 200 is down 0.7% at this same time.

Ora Banda shares have been on a tear since plumbing one-year closing lows on 17 July, now up 120.3% since those lows.

Here’s what’s grabbing investor interest today.

ASX 200 gold stock jumps on resource increase

Ora Banda shares could be catching some headwinds today following a dip in the gold price.

Gold is currently trading for US$4,537 per ounce. That’s down about 0.4% since Friday and down some 4.5% since last Monday.

However, the ASX 200 gold stock looks be getting support after announcing major mineral resource and ore reserve upgrades for its Round Dam and Waihi gold mines.

Ora Banda said the total mineral resource estimate (MRE) increased by 1.46 million ounces since last July. The total MRE now stands at 54.8 million tonnes at 2 grams of gold per tonne for 3.57 million ounces of gold (54.8 Mt at 2.0 g/t for 3.57 Moz).

The miner’s total ore reserve estimate increased by 136% to 7.8 Mt at 2.2 g/t for 555,000 ounces of gold.

Management noted that the company is still awaiting assay results from its recent drilling at its Round Dam prospect. As such, those results were not included in the above resource and reserve estimates.

Ora Banda aims to report its maiden MRE for the Little Gem project in the first half of FY 2027.

What else is helping Ora Banda shares today?

This morning, Ora Banda also updated the market on its ‘Drive to 300’ initiative, which defines the ASX 200 gold stock’s goal to double production over the next three years. The miner stressed that it remains to be seen if that aspiration will be achieved.

To drive that production growth, the Ora Banda board said it has approved a number of key projects. That includes the construction of a new, standalone 3.0 million tonne per annum (Mtpa) nameplate processing plant at Davyhurst, Western Australia. That’s expected to cost $375 million.

Ora Banda has appointed GR Engineering Services Ltd (ASX: GNG) for the engineering, procurement, and construction works as part of the Davyhurst expansion.

The board has also approved Waihi Underground as Ora Banda’s third underground mine for a capital cost of $90 million.

Commenting on the ambitious growth plans for the ASX 200 gold stock, Ora Banda managing director Luke Creagh said:

The DRIVE to 300 is the exciting next phase for Ora Banda, building on earlier success with the achievement of to DRIVE to 100 and DRIVE to 150.

This doubling of production is currently expected to be capable of being internally funded and has the potential to add material value and position Ora Banda as a long-term sustainable gold business.

The post Up 120% since July, guess which ASX 200 gold stock is charging higher again on Monday 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 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 red metal sits at the intersection of electrification, artificial intelligence, and the energy transition.

BHP Group Ltd (ASX: BHP) has been positioning for this moment for years.

Copper rarely makes headlines the way gold or lithium do.

But right now, the structural case for the red metal is as strong as it has ever been, and no ASX-listed company stands to benefit more from what plays out over the next five years than BHP.

Why copper demand is accelerating

Three powerful forces are simultaneously driving copper demand higher.

The first is electrification.

Electric vehicles require approximately three times as much copper as traditional internal combustion cars, and the global EV fleet continues to grow rapidly.

Wind turbines consume three metric tons of copper per megawatt of power produced. The second force is the energy transition more broadly, with solar farms, battery storage systems, and electricity grid upgrades all requiring substantial copper investment.

The third, and increasingly significant, force is artificial intelligence.

A January 2026 study by S&P Global found that data centre electricity consumption in the United States could rise from 5% of total power demand today to as much as 14% by 2030.

Individual hyperscale facilities may require up to 50,000 tonnes of copper for wiring, grounding, and cooling systems.

S&P Global projects global copper demand to reach 42 million metric tons by 2040, a 50% increase from current levels, and estimates mine output will peak in 2030 before beginning to fall.

Supply cannot keep up

Opening a new copper mine takes an average of 15 to 20 years from exploration to production.

That means the projects needed to meet demand beyond 2030 should already be under construction today, and in most cases, they are not.

The International Copper Study Group projects the market moves from a slight surplus in 2025 to a deficit of more than 150,000 tonnes by 2026, with that gap widening significantly after 2030.

Red Cloud Securities forecasts the copper price to average US$6 per pound by 2030, up from around US$5.47 per pound today.

BHP’s copper position

BHP produces between 1.8 and 2 million tonnes of copper per year across its Escondida mine in Chile, the world’s largest copper operation, and its Olympic Dam and Carrapateena assets in South Australia.

In October 2025, BHP committed more than US$550 million to expand Olympic Dam, an investment that reinforces its long-term commitment to growing copper output.

BHP plans to grow copper-equivalent production at 3% to 4% per year through 2035.

This rate should compound meaningfully as higher copper prices flow through to margins.

The company also holds a 45% stake in Resolution Copper alongside Rio Tinto Ltd (ASX: RIO), a deposit capable of producing 40 billion pounds of copper over 40 years, roughly a quarter of projected US copper demand.

Foolish Takeaway

Copper has become a strategic resource sitting at the intersection of electrification, artificial intelligence, and the energy transition.

Supply simply cannot grow fast enough to meet what demand requires.

BHP, with its scale, its existing copper assets, and its ongoing investment in new production, sits in an enviable position to capture that opportunity over the next five years and beyond.

The post Why copper could make BHP shareholders very happy over the next five years appeared first on The Motley Fool Australia.

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Motley Fool contributor Mark Verhoeven 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.

Elders Ltd (ASX: ELD) shares are crashing on Monday morning.

At the time of writing, the ASX 200 share is down 22% to $5.61.

This follows the release of the agribusiness company’s half-year results before the market open.

ASX 200 share crashes on results day

This morning, Elders released its half-year results and revealed a strong lift in earnings thanks to a major acquisition.

It reported underlying sales revenue of $1.77 billion, up 32% from $1.34 billion in the prior corresponding period. Management said the result was driven by improved seasonal conditions and the contribution from Delta Agribusiness, which was acquired in November.

Looking at its divisions, Elders Crop Protection delivered higher EBIT across all businesses, mainly due to improved procurement of raw materials.

Elders Rural Services also performed well, with livestock prices driving most of the upside.

Delta Agribusiness contributed EBIT of $10.4 million in its first five months under Elders’ ownership, while Elders Real Estate benefited from growth in residential turnover and property management.

Australian Independent Rural Retailers’ EBIT was slightly lower, with temporary people cost growth more than offsetting higher sales and margin improvements. Corporate Services and Other Costs increased due to higher IT costs linked to the transition of systems modernisation expenses and the cost of running dual platforms until legacy systems are retired.

This meant that underlying EBIT rose 33% to $76.6 million, while underlying profit before tax increased 31% to $56.2 million. Underlying profit after tax lifted 13% to $37.9 million.

However, the selling today may have been driven by earnings per share, which were negatively impacted by a higher share count following its capital raising.

Elders revealed that underlying earnings per share was down 4% to 18.1 cents.

This led to the Elders board declaring a fully franked interim dividend of 18 cents per share, in line with last year’s interim dividend, although last year’s payout was only 50% franked.

Management commentary

The ASX 200 company’s managing director and CEO, Mark Allison, was pleased with the half. He said:

The first half of FY26 has been eventful for Elders, with Delta Agribusiness welcomed into the Elders Group and seasonal improvements driving optimism for the winter crop.

Our decision to implement a new divisional structure in FY26 is already reaping benefits through improved alignment and efficiency gains. Elders’ strong management has proven effective in allowing us to optimise the season and set ourselves up for a solid second half.

Outlook

Elders believes it is well positioned for the second half.

This is being supported by the first-year earnings contribution from Delta Agribusiness, further systems modernisation benefits, and Delta synergy gains.

Management advised that it expects key financial metrics to improve in the second half as Delta’s earnings are progressively reflected and proceeds from the planned Killara Feedlot divestment are expected to reduce net debt, leverage, and interest expense.

However, elevated diesel prices remain a risk to the company’s cost base, although prices have eased from the highs seen in March.

Commenting on its outlook, Allison said:

International events have caused price volatility in fuel and fertiliser, creating challenges for our supply chain in the first half. Elders’ strong supply relationships, combined with an adept agronomy network for timely advice to growers, has allowed us to manage demand and ensure growers are equipped for the season ahead.

The post Which ASX 200 share is crashing 22% on half-year results? 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 Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Abacus Storage King (ASX: ASK) shares are in focus today as the company revealed plans to internalise management and rebrand as Storage King Group, a move expected to boost Funds from Operations (FFO) per security by approximately 6% on a pro forma basis.

What did Abacus Storage King report?

• Entered binding agreements with Abacus Group to internalise management, costing $19 million plus around $5 million for net assets.
• Anticipates annual cost savings of about $7 million, driving 6% FFO per security accretion (pro forma FY26).
• Retains key executives Nikki Lawson (incoming CEO/MD) and Evan Goodridge (incoming CFO) under new employment agreements.
• Upsized existing debt facility by $300 million to $1.55 billion, maintaining pricing and covenants.
• Gearing expected to rise by 40 basis points but remain inside the company’s 25–40% target range.
• Reaffirms full year FY26 distribution guidance of 6.2 cents per security.

What else do investors need to know?

From 30 June 2026, the company will transition to the new name ‘Storage King Group’ with the ASX ticker changing to ‘SKG’. The responsible entity and property trust will also adopt the Storage King brand, with proposed name changes to be approved at the AGM in November.

The transaction follows a detailed review by independent directors and advisers. It’s structured to align management incentives with shareholder outcomes and does not require shareholder approval given it’s on arm’s length terms. Transitional arrangements ensure business continuity as key staff migrate to the new structure.

Storage King Group will remain Australia’s only listed pure-play self-storage REIT, with 205 stores and a portfolio spanning 1.2 million square metres of land, mostly in major cities. Its proprietary revenue management system and ongoing developments provide a platform for future growth.

What’s next for Abacus Storage King?

Management remains confident despite the competitive self-storage environment and broader economic pressures. The company sees medium-term margin expansion supported by its technology and internal alignment following the restructuring.

Abacus Storage King has reiterated its FY26 distribution guidance and will provide a full update on operating results and initial FY27 outlook with its annual results, due 14 August 2026.

Abacus Storage King share price snapshot

Over the past 12 months, Abacus Storage King shares have declined 7%, trailing the S&P/ASX 200 Index (AX: XJO) which has risen 4% over the same period.

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The post Abacus Storage King internalises management and rebrands as Storage King Group appeared first on The Motley Fool Australia.

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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.