Author: openjargon

Our local share market was looking steady earlier today. Then everything changed.

After starting the day higher, the S&P/ASX 200 Index (ASX: XJO) has turned lower and is now down 0.61% to 8,618.1 points.

The index had climbed as high as 8,723 earlier in the session before sellers stepped in.

The sudden drop came after fresh comments from US President Donald Trump about the conflict with Iran, which unsettled global markets.

Instead of giving investors confidence that the fighting may be winding down, his latest remarks suggested the conflict could continue for up to three weeks.

That has made investors nervous again, especially heading into the Easter break.

Oil jumps again as market nerves return

The biggest move following Trump’s comments has been in the oil market.

Brent crude oil jumped back above US$105 a barrel after Trump’s comments raised concerns the conflict could drag on.

Rising oil prices are already pushing up costs right across the economy, which is now feeding into local market sentiment.

Higher fuel, freight, and shipping costs have been squeezing profit margins for retailers, transport businesses, airlines, and many other companies that rely heavily on moving goods and people.

It has also added to inflation worries and reduced hopes for interest rate cuts, putting extra pressure on company valuations.

This has helped push the benchmark index back into the red after its earlier gains.

Selling spreads across the ASX 200

The weakness is showing up across most of the market.

Selling has also become more widespread, with 118 stocks falling compared to 78 rising in the ASX 200.

Large mining stocks have been among the main drags on the index.

BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Ltd (ASX: FMG) are all in the red as investors weigh what higher oil prices and renewed geopolitical risks could mean for global growth.

Energy shares are offering some support as oil prices rise, but that has not been enough to offset the broader weakness.

Even gold has pulled back after rising earlier, which shows how quickly investors are changing positions as sentiment shifts.

Foolish Takeaway

The ASX 200 had been building on hopes that the Middle East conflict was moving closer to an end.

Instead, the latest headlines have sent oil prices higher and brought uncertainty back into the market.

Investors are still reacting quickly to every development, particularly anything that could affect inflation, interest rates, and the outlook for global growth.

Until there is a clearer direction on how the conflict ends, this kind of volatility looks here to stay.

The post ASX 200 suddenly turns lower as fresh war fears hit before Easter 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 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.

Share price declines of 30% or more tend to get attention.

Sometimes that decline is warranted. Sometimes it is an overreaction and opens up opportunities for investors willing to take a longer-term view.

Right now, there are a number of ASX 200 shares trading well below their recent highs. Here are three that I think are worth considering.

Qantas Airways Ltd (ASX: QAN)

Qantas has pulled back around 32% from its 52-week high, and I think that is starting to look very interesting.

Airlines are never simple investments. Fuel costs, economic conditions, and operational risks can all impact earnings quickly. With oil prices recently pushing above US$100 per barrel, it is easy to see why sentiment has softened.

But when I step back, I still see an ASX 200 share that is structurally stronger than it was a few years ago.

Qantas operates in a relatively rational domestic market, supported by a duopoly structure. Its loyalty division continues to provide a high-margin earnings stream, and the ongoing fleet renewal program should help improve efficiency over time.

To me, this looks like a case where short-term concerns are weighing on a business that still has a solid long-term foundation.

DroneShield Ltd (ASX: DRO)

DroneShield is down roughly 40% from its high, and that volatility is not unusual for a company of its size and growth profile.

What stands out to me with DroneShield is the underlying theme. The use of drones in both military and civilian settings is expanding rapidly. With that comes a growing need for counter-drone technology, which is exactly where DroneShield is focused.

This is a market that is still evolving, but I think the direction is clear.

Governments and organisations are increasing their focus on security, surveillance, and defence capabilities. Technologies that can detect and respond to drone activity are becoming more important.

There will likely be ups and downs along the way, particularly as contracts and funding cycles play out. But over a longer period, I think the opportunity set remains compelling.

Cochlear Ltd (ASX: COH)

Lastly, Cochlear has fallen around 45% from its highs, which is a significant move for a company that has historically been viewed as a high-quality defensive growth business.

The recent weakness reflects a combination of factors, including softer earnings and broader market pressure on healthcare stocks.

But I do not think the core story has changed.

Cochlear operates in a specialised area of medical technology with high barriers to entry. Its products address a critical need, and demand is supported by long-term trends such as ageing populations and increased awareness of hearing health.

What I like is the combination of innovation and global reach. This is an ASX 200 share that continues to invest in new products and expand its footprint internationally. That gives it the potential to grow over time, even if the path is not always smooth.

Foolish takeaway

Not every share that falls 30% or more is a buying opportunity. But I think it is worth paying attention when established businesses and emerging growth companies are trading well below their recent highs.

Qantas, DroneShield, and Cochlear are very different businesses, each with their own risks and drivers. What they have in common is that sentiment has weakened, while their long-term potential still appears intact. For me, that is often where the most interesting opportunities start to appear.

The post 3 ASX 200 shares down at least 30% to buy now appeared first on The Motley Fool Australia.

More reading

• $5,000 invested in Droneshield shares 4 months ago is already worth…
• Why Greatland Resources, Newmont, Northern Star, and Qantas shares are rising today
• The best time to buy shares? It might be right now
• Is this ASX defence stock the next DroneShield?
• Why Qantas shares nosedived 16% in March

Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cochlear and DroneShield and is short shares of DroneShield. 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.

There is a large volume of ASX income stocks on the Australian sharemarket. And these are a great option for investors seeking easy, no-frills passive income.

Most ASX dividend-paying stocks pay investors every quarter, every six months, or every 12 months. And then there are the select few that pay dividends on a monthly basis. 

There are the long-standing and reliable blue-chip income stocks, growth stocks which pay a modest dividend of around 2% to 5% and offer long-term earnings growth, and then there are your high-yield dividend stocks.

It’s worth noting, though, that chasing the highest yield isn’t always the best strategy. In fact, very high yields can be a red flag that there is something fundamentally wrong with the business or that the share price has fallen sharply.

The aim of the game should be to find a financially sound dividend-paying business that pays a reliable dividend at a good rate.

Here’s one that springs to mind: IPH Ltd (ASX: IPH).

What is IPH, and what does it pay?

IPH provides intellectual property (IP) services through a network of global brands. These subsidiaries include global IP brands AJ Park, Griffith Hack, Pizzeys, Smart & Biggar, and Spruson & Ferguson, as well as IP business Applied Marks.

The group covers ten jurisdictions in 25 countries, including Australia, New Zealand, Southeast Asia, and the US, which makes it the largest IP services provider in the Asia-Pacific region. 

IPH services cover everything from patent filing and trademarks to prosecution, portfolio management, and enforcement. A significant share of its revenue comes from the Asia-Pacific market.

The best part is that the company has a long history of generating consistently strong cash flow from its operations. Most recently, IPH reported a cash conversion of 101% in its first-half FY26 results.

This type of cash flow enables the company to be an established, reliable dividend payer that gradually increases its dividend payment over time.

IPH has historically paid two partially or fully-franked dividends a year, in March and September. Last month, the board paid investors an interim dividend of 10 cents per share, 20% franked, which was an 11.8% increase on the prior corresponding period. 

Analysts forecast that the ASX income stock’s annual dividend could rise to 37.6 cents per share in FY26. That translates into a dividend yield of 11.2%, excluding any franking credits, at the time of writing.

What’s the outlook for the IPH share price? 

At the time of writing, IPH shares are down 0.6% for the day, to $3.36. That means that $500 invested in IPH will buy you 148 shares.

The latest decline also means the shares are now nearly 26% below this time last year. Most of the declines came off the back of the company’s FY25 results announcement in August last year. 

The company delivered solid growth, but it came short of investor expectations, and the news sent the shares crashing 22%.

It looks like we could be close to the bottom, though. Analysts think we’ll see much more upside out of the IP provider over the next 12 months.

TradingView data shows that five out of seven analysts have a buy or strong buy rating on the ASX income stock. 

The average target price is $4.79, and the maximum is $6. That implies a potential upside of 43.4% to 79.6% over the next 12 months, at the time of writing.

The post $500 buys 148 shares in this 11% yielding ASX income stock! appeared first on The Motley Fool Australia.

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

Electrification and energy transition services company IPD Group Ltd (ASX: IPG) is in focus for the analyst team at Shaw and Partners, as the oil shock pushes more people towards electric vehicles.

Shares looking cheap

Shaw and Partners has published a new research note on the company, with a bullish share price target for IPD, valued at just shy of half a billion dollars.

They note that there was a surge in web searches for electric vehicles in March, coinciding with the increase in fuel prices resulting from the US’ war with Iran.

The Shaw team went on to say:

EV‑related web searches in Australia rose sharply in March 2026, with several platforms reporting week‑on‑week increases of 60–80% at peak moments. The surge is abrupt rather than gradual, indicating an external trigger rather than slow organic growth. Search interest is now at its highest level since mid‑2024 on several consumer platforms. Carsales reported EV searches almost tripling from February to March 2026, with a 76.7% week‑on‑week jump in early March alone.

Unsurprisingly, Shaw said the dominant catalyst behind the spike was fuel price volatility caused by global instability.

Oil prices surged above USD 100/bbl during March 2026 due to Middle East supply concerns. Media coverage explicitly linked rising petrol prices to increased consumer EV research and consideration. ABC News documented a clear correlation between fuel price spikes and increased EV interest across metropolitan and regional Australia. Carsales confirmed the timing: EV search growth accelerated after fuel prices rose, not before. Bloomberg coverage shows similar search interest increases in energy‑importing economies globally during the same period.

This is good news for IPD, Shaw says, as their business providing grid-connected infrastructure and services would be well-placed to benefit from an increased take-up of electric vehicles.

Shaw went on to say:

Management often frames IPG’s role as enabling sustainable electrical infrastructure, with EV charging and grid‑related upgrades a key growth vector. EV adoption cannot scale without switchgear, power distribution, protection & control systems, and substations and capacity upgrades. Those are exactly IPG’s product and services stack.

Gains to be made

Shaw has a buy rating on IPD Group shares and a price target of $5.35, compared with the current price of $4.65.

If achieved, that would represent a 15.1% return, and the company is also expected to pay a dividend yield of 3.3% this year.

IPD shares have traded as low as $2.75 over the past year and as high as $5.22.

The post Why web searches for electric vehicles make this stock a buy 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 Ipd Group. The Motley Fool Australia has positions in and has recommended Ipd Group. The Motley Fool Australia has recommended CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) looked like it was set to end the shortened holiday trading week on a positive note.

Just before noon today, the benchmark Aussie index was up a solid 0.6%.

But if you were watching the charts, you’ll know things turned sharply south from there.

At the time of writing in early afternoon trade on Thursday, the ASX 200 stands at 8,594 points, down 0.9% for the day and down 1.4% in just 90 minutes.

Here’s what’s got investors spooked in mid-day trade today.

ASX 200 dives on renewed Iran war fears

The ASX 200 closed up 0.3% on Tuesday and gained an impressive 2.2% on Wednesday after United States President Donald Trump indicated that the war in Iran should be winding down in the next two to three weeks.

As you’re likely aware, the war in the oil-rich Middle East has roiled global markets and sent oil prices surging almost 50% in March. It also saw the benchmark index slump 7.8% in the month just past.

While investors might have Trump to thank for this week’s earlier gains, we can also point the finger of blame at the US president for today’s steep intraday decline.

As many Aussies were sitting down to lunch today, Trump issued a decidedly hawkish speech outlining the ongoing conflict.

Parts of his speech were in line with his earlier remarks that the war is approaching its conclusion. He noted that America’s “core strategic objectives are nearing completion.”

“We are going to finish the job, and we’re going to finish it very fast. We’re getting very close,” he said.

But the ASX 200 tumbled alongside futures on the S&P 500 Index (SP: .INX) and the Nasdaq Composite Index (NASDAQ: .IXIC), with Trump adding, “over the next two to three weeks, we’re going to bring them back to the stone ages where they belong”.

Trump said if the Iranian regime doesn’t reach a deal he finds acceptable, the US will proceed to destroy all of Iran’s power plants.

Commenting on investors’ negative reaction to Trump’s speech, Rodrigo Catril, a currency strategist at National Australia Bank Ltd (ASX: NAB) said (quoted by Bloomberg):

The market is seemingly focusing on the idea that the war has not ended, the US is looking for escalation and hoping that will force Iran to make a deal.

Oil price spikes

On the heels of Trump’s speech, the Brent crude oil price spiked 4.1% to US$105.34 per barrel.

That’s clearly seeing ASX 200 investors reevaluate the inflation outlook as well as the potential for further interest rate increases from the RBA and other leading central banks.

That picture has put gold stocks under pressure, as gold tends to perform better in low or falling rate environments.

Indeed, the Northern Star Resources Ltd (ASX: NST) share price is down 3.2% since noon.

And, as you might expect, following on Trump’s speech and the resulting oil price spike, Woodside Energy Group Ltd (ASX: WDS) shares surged 5.1% in intraday trading.

The post Why did the ASX 200 just plunge 1.4% in Thursday afternoon trade? 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.

Droneshield Ltd (ASX: DRO) shares are climbing higher again today. At the time of writing on Thursday, the drone operator’s shares are up 1.8% to $4.05 a piece.

Today’s price increase means the shares are now up 5% over the past month and 21.6% higher over the year-to-date. The shares have jumped 343% in just 12 months.

Droneshield is one of the few ASX stocks which has actually climbed off the back of the latest geopolitical tensions and ongoing war in the Middle East.

Over the past few months governments around the world have hiked their budget for defence spending. This includes anything from missiles or submarines, to defence technologies such as drones, AI, and electronic warfare.

And as Droneshield sits firmly as a counter-done electronic warfare business, Droneshield sits front a centre, ready to absorb the increase in investor interest. 

If I bought $5,000 worth of Droneshield shares 4 months ago, what are they worth now?

After a steep climb in late 2025, Droneshield shares crashed 73% within the space of five weeks. By late November, the shares had dropped to just $1.72 a piece. 

The share price climbed slightly to $1.88 on the 2nd of December, but that’s still 114.4% below the trading price at the time of writing.

That type of increase over a short four-month period is impressive, however. It’s more than double!

It also means that any investor who invested $5,000 into Droneshield shares in very early December would be sitting on $10,720 today.

Meanwhile, investors who bought $5,000 worth of shares 12 months ago would have a huge $22,150 today.

Those numbers are impressive.

Can the share price keep climbing?

The longer that tensions in the Middle East continue unresolved the more pressure there will be on military spending. It’s possible that demand for DroneShield’s technology could keep accelerating. 

Analysts are mostly bullish about the outlook for DroneShield shares, but it doesn’t look like the annual increase will continue at the same pace.

TradingView data shows two out of three analysts have a strong buy rating on the defence stock. The third analyst has recently downgraded their rating to neutral. 

The average target price for DroneShield shares over the next 12 months is $4.50 a piece. At the time of writing, that implies an 11% upside ahead for investors. Some are more bullish and expect the shares to jump 23% to $5 in the next 12 months. 

The post $5,000 invested in Droneshield shares 4 months ago is already worth… appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and is short shares of DroneShield. 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.

Treasury Wine Estates Ltd (ASX: TWE) shares are higher on Thursday, giving investors a bit of relief after a rough start to the year.

In afternoon trade, the Treasury Wine share price is up 1.73% to $3.825.

That is a solid bounce from the $3.34 low it hit on 26 March, which was its lowest level in about 10 years. The last time the stock traded around this price was back in April 2014.

Even after today’s gain, Treasury Wine shares are still down roughly 27% in 2026, showing just how tough the sell-off has been.

The rebound suggests some investors may be starting to believe the worst could now be priced in.

Why buyers may be stepping in

One reason buyers appear to be returning is the growing view that Treasury Wine may now be trading below what its assets are worth.

According to The Australian, broker CLSA believes the company’s wine brands and inventory could be worth far more than the current share price suggests.

The broker estimated Treasury Wine’s net tangible assets were about $3.40 per share at the half-year result and could rise to $3.70 by FY27.

It also suggested an adjusted valuation of $7.10 per share, helped by the value of premium wine stock and major brands like Penfolds.

That big gap between the share price and estimated asset value may be encouraging bargain hunters to buy after the recent fall.

Another positive sign is that French investor Olivier Goudet has reportedly continued buying shares, steadily building his stake in the company.

The sell-off may be slowing

The chart also suggests the heavy selling may be starting to settle down.

The $3.34 level now looks like an important support zone, which simply means buyers have stepped in around that price.

Since then, the shares have bounced back toward $3.80, which is often a sign that sellers are losing control.

If the recovery continues, the next area investors may watch is around $4, followed by the previous trading range near $4.50.

Momentum indicators are also improving.

The relative strength index (RSI), which helps show whether a stock has been sold too heavily, has lifted from oversold levels.

Foolish Takeaway

Treasury Wine still has work to do after its weak half-year result, softer US sales, and concerns about growth in China.

But after falling to decade lows, today’s rebound suggests some investors are starting to see value in this ASX 200 blue chip again.

If earnings stabilise and confidence returns, Treasury Wine could become one of the ASX’s biggest turnaround stories this year.

The post Treasury Wine shares hit 10-year lows last week. So why are buyers stepping in now? 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 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.

If you are looking for big returns in the mining sector, then it could be worth hearing what Bell Potter is saying about one ASX mining stock.

That’s because it believes this stock could more than double in value over the next 12 months.

Which ASX mining stock?

The stock that Bell Potter is recommending to clients with a high tolerance for risk is Viridis Mining and Minerals Ltd (ASX: VMM).

It is a minerals exploration and development company with seven projects across three countries.

However, Bell Potter notes that the majority of the value in the business is focused on its Colossus ionic adsorption clay (IAC) project in Minas Gerais, Brazil.

Bell Potter highlights that the company is closing in on a final investment decision for the project. It said:

VMM are rapidly progressing towards a Final Investment Decision (FID) (BPe 2HCY26) for the Colossus project, which is targeting production commencement in 2028. Ahead of that, the company has been progressing offtake arrangements, facilitated by governments in particular the US and EU. We suspect the ultimate direction of offtake will depend on optimising 1) funding for the US$358m capital cost of Colossus, and 2) maximising shareholder value via contract pricing (i.e. maintain the greatest amount of leverage to underlying prices).

The most critical catalysts over the coming months are 1) Demonstration plant commissioning (BPe April) 2) production offtake (we’re expecting a mix of floor and market linked price, with payabilities 70% or greater), 3) submission of construction licence application (BPe April) and 4) Finalisation of financing, predominantly debt (~US$250m) with a smaller portion of strategic equity/ public equity (~US$50-$80m).

The broker also highlights that the ASX stock’s valuation is very attractive compared to peers. It adds:

It’s the land of opportunity. The relative value of VMM vs peers remains stark in our opinion. Peers such as Meteoric (MEI, Buy Spec $0.25/sh, market cap A$440m), which is developing a similar project adjacent to VMM (Caldeira), and Aclara (ARA.TSX, not covered, market cap C$700m), which has a lower-grade and higher cost project in Brazil (although has further optionality downstream).

Big potential returns

According to the note, the broker has a speculative buy rating and $4.30 price target on the ASX mining stock.

Based on its current share price of $1.95, this implies potential upside of 120% for investors.

Commenting on its recommendation, Bell Potter concludes:

The world is shifting, major global producers Lynas (LYC, Hold $19.00/sh) and MP Materials (MP, not covered) have price floors in place now covering the US and Japan. We are yet to see price floors extended to Europe to guarantee offtake and security of supply.

The examples have been set as to what an acceptable price is now, with shared participation above certain levels, and preference ascribed to those who can provide a Light Rare Earth (NdPr) and Heavy Rare Earth (Dy, Tb, Y, Sm) solution. Our valuation is increased to $4.30/sh after accounting for the recent capital raise and we maintain our Buy (spec) recommendation.

The post Which ASX mining stock could rise 120% according to a leading broker? appeared first on The Motley Fool Australia.

More reading

• Why did the ASX 200 just plunge 1.4% in Thursday afternoon trade?
• $5,000 invested in Droneshield shares 4 months ago is already worth…
• Treasury Wine shares hit 10-year lows last week. So why are buyers stepping in now?
• 2 ASX 200 mining shares this fund manager is backing for long-term growth
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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.

ASX 200 mining shares are leading the market on Thursday, as resources companies recover from the March sell-off.

The S&P/ASX 200 Index (ASX: XJO) is currently up 0.5%, with the materials sector today’s strongest riser, up 0.8%.

After a 32% surge in CY25, the materials sector managed just a 1.1% gain over 1Q CY26.

This was largely due to the war in Iran creating an ongoing oil shock, which threatens to limit ASX miners’ production and earnings.

The materials sector fell 14.1% in March, but a rebound appears underway, with the materials index reversing course last Tuesday.

Blackwattle Investment Partners discussed several ASX mining shares in its recent round of monthly newsletters.

Here’s what the fund manager had to say about the market’s largest diversified ASX mining share and its biggest lithium producer.

BHP Group Ltd (ASX: BHP)

The BHP share price is $52.88, up 0.6% today.

The market’s largest ASX 200 mining share fell 11% over the past month, but is still 38% higher over 12 months.

Blackwattle holds BHP shares in its Large Cap Quality Fund.

Portfolio managers Joe Koh and Elan Miller said BHP delivered a “solid” 1H FY26 result.

Both EBITDA and NPAT were +3% ahead of consensus driven primarily by a strong performance from the Copper division which is now the largest contributor to earnings for BHP (surpassing Iron Ore).

FCF generation was also strong and led to debt repayment and better than expected capital management in the form of dividend.

The managers believe BHP will continue to outperform the market, adding:

BHP continues to extract value from its portfolio, announcing the sell down of Antamina’s silver-stream for US$4.3bn while maintaining their (BHP’s) exposure to the Copper, Zinc and Lead at the mine.

BHP has identified a further US$4b of potential value to be unlocked from within their portfolio which should continue to see BHP outperform the market.

BHP called out ex China, European demand picking up, US remains steady and India continues to grow, and we believe given tight supply and fundamental demand for commodities keeps BHP well placed to benefit moving forward.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $5.21, down 1.8% on Thursday.

The market’s largest ASX 200 lithium mining share has skyrocketed 238% over the past 12 months.

PLS Group shares have risen alongside a remarkably strong recovery in lithium commodity prices since mid-2025.

The ASX 200 mining share has also benefited from changed global supply/demand dynamics since major producer, Zimbabwe, announced export limits to encourage the development of on-shore downstream processing.

Blackwattle holds PLS Group shares in its Mid Cap Quality portfolio.

Portfolio managers Tim Riordan and Michael Teran said PLS Group operates relatively low-cost, long-life lithium mines.

They note the company’s strong balance sheet, which they said provides flexibility and a competitive advantage to indebted peers.

Riordan and Teran said:

We continue to see material upside for PLS as an ‘improving quality’ business and view PLS as the highest quality, lithium miner on the ASX.

PLS delivered a strong 1H26 result and announced the signing of a 2-year offtake agreement with strong price floors and unlimited
price upside, cementing PLS’s position as the go-to lithium spodumene producer.

This has allowed PLS to de-risk the restart of its higher cost Ngungaju spodumene plant, driving significant potential earnings upside in FY27.

PLS is finally seeing the benefits from the P1000 expansion, and PLS is extremely well placed to benefit from any further recovery in lithium prices, with strong operations and significant production growth optionality, allowing for continued shareholder value creation through the cycle.

The post 2 ASX 200 mining shares this fund manager is backing for long-term growth appeared first on The Motley Fool Australia.

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Acrow Ltd (ASX: ACF) this week reaffirmed its guidance for this year and for the first time put out guidance for the following year.

Shares looking cheap

The analyst teams at both Shaw and Partners and Morgans have run the ruler over the trading update and both believe Acrow shares are undervalued at the moment.

We’ll get to their specific share price targets shortly.

Firstly let’s have a look at what Acrow told the market this week.

The company, which specialises in hiring out construction-related assets such as scaffolding, said it was “experiencing improving activity levels across Australia, as anticipated”.

The company added:

During March, Acrow secured new hire contracts totalling $14.3 million, representing the highest monthly value of contract wins in the Company history, exceeding the previous record by over $2.5 million. Improving activity levels have also driven a materially stronger sales pipeline, which stood at $256.0 million as at the end of March, representing an increase of 34% on pcp and another record level.

Acrow said it had a strong trajectory heading into the fourth quarter of the financial year, which it expected to be its strongest for the year.

It added:

As a result of these outcomes, together with a general improvement in trading conditions, especially within the Queensland formwork business, where hire revenue in March reached its highest level in over 12 months, the Company is confirming FY26 revenue and EBITDA guidance.

The company’s guidance was for sales of $315-$325 million and EBITDA of $80-$84 million.

Acrow also said the strong trading performance should generate “significant momentum” heading into FY27.

It added:

This is supported by a confirmed forward order book in the Industrial Access division and the significant uplift now evident within the formwork markets, particularly in Queensland. Collectively, these factors provide the Board with the confidence to issue early FY27 revenue and EBITDA guidance, with revenue expected to be in the range of $335 million to $350 million and EBITDA in the range of $88 million to $98 million.

Analysts like what they see

The team at Morgans analysed the expected trading for Acrow and came up with a 12-month price target of $1.28 for Acrow shares, compared with 88.7 cents currently.

Morgans said the trading update was “encouraging” and added:

Initial FY27 guidance was a positive surprise. While broadly in line with consensus, we view the early guidance as conservative and achievable, reflecting management’s confidence in the outlook. Importantly, FY27 guidance also implies an improvement in EBITDA margins, suggesting a favourable shift in sales mix toward the higher margin Formwork segment.

The team at Shaw and Partners came up with a priuce target of $1.25 for Acrow shares, with a buy rating on the stock.

The post After a positive trading update 2 brokers agree this stock is a buy 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.