Author: openjargon

NextDC Ltd (ASX: NXT) shares are seesawing today after the data centre operator released an update before market open.

During early morning trade, the NextDC share price is down 0.27% to $14.91. By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.5% to 8,744 points.

The move comes after a strong run last week, with the stock up almost 8% following its record contracted utilisation update.

Let’s take a closer look at the latest announcement.

Retail offer opens

According to the release, NextDC has opened its retail entitlement offer as part of the capital raise announced earlier this month.

The offer is priced at $12.70 per new share, which sits 15% below the current market price.

Eligible shareholders can take up one new share for every 5.4 shares held.

The retail component is expected to raise around $500 million, on top of the successful institutional raise that has already been completed.

That institutional portion brought in roughly $1 billion, taking the total raise to approximately $1.5 billion.

The retail offer is scheduled to close on 11 May.

Why NextDC is raising capital

NextDC said the raise is tied to funding the next stage of expansion across its data centre network.

Management pointed to a lift in contracted customer demand, with an additional 250MW secured.

That takes contracted utilisation up significantly and feeds into a larger forward order book.

The pipeline is expected to lift earnings as more capacity moves from build into billing over the coming years.

Proceeds from the cap raise are expected to fund further development, particularly across NextDC’s hyperscale sites.

Demand continues to build

NextDC is still seeing strong interest from large customers, particularly across cloud and AI.

This is starting to show up in longer-term contracts, giving more visibility as new capacity comes online.

The company is also lining up funding beyond equity, including debt and hybrid securities, giving it more room to keep expanding.

Foolish Takeaway

While there’s nothing really surprising in today’s update, it shows how quickly things are moving.

NextDC is raising capital to build more capacity, and the pipeline is there to support it.

The latest numbers point to continued growth, particularly across its larger customers.

At the same time, new shares are being issued below the current price, which means dilution could weigh on the share price in the short term.

Until then, the stock may have a tough time climbing back to its late 2025 highs.

The post NextDC shares dip as retail offer opens. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• NEXTDC opens $0.5 billion retail entitlement offer
• Top brokers name 3 ASX shares to buy next week
• NextDC just raised $750 million, here’s why the shares are climbing
• NEXTDC launches $750m wholesale notes to boost growth funding
• Here are the top 10 ASX 200 shares today

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 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.

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

During this time, the lithium miner’s shares have risen almost 300%.

Does this make it too late to invest? Let’s see what analysts at Bell Potter are saying following the release of its quarterly update.

What is the broker saying?

Bell Potter was impressed with the company’s performance during the third quarter. It notes that PLS delivered production ahead of expectations with lower than expected unit costs. It said:

PLS reported record quarterly spodumene concentrate (SC) production of 232kt (BPe 213kt) and sales of 196kt at 5.2% Li2O (BPe 213kt). Reliable plant performance supported lithium recoveries of 75% (2Q FY26 76%). Unit costs were A$520/t FOB (down 11% QoQ; BPe A$568/t). In the current quarter, costs are expected to increase as Ngungaju plant restart costs are expensed.

The broker also highlights that PLS is printing cash at current lithium prices, which it expects to be used to fund shareholder returns and growth projects. It adds:

At current lithium prices, PLS is generating significant earnings and cash (3Q FY26 FCF ~$375m) to fund shareholder returns and growth. Commissioning and technical validation has commenced at its mid-stream plant supported by $38m government grant funding (ARENA) and a lithium phosphate offtake contract with Chinese cathode manufacturer Ronbay. The POSCO lithium hydroxide JV has recommenced production at moderated levels.

P2000 and Colina feasibility work is advancing. PLS’ Board is assessing pre-FID capex to fast track development, along with potential multi-year investment at Pilgangoora (new accommodation and maintenance facilities; access roads) to align infrastructure with the larger operation. Clarity on the capex outlook and FY27 guidance are expected with the 4Q FY26 report in July 2026.

Are PLS shares a buy?

According to the note, the broker has retained its hold rating on PLS shares with an improved price target of $5.50.

Based on its current share price of $5.77, this implies potential downside of almost 5% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

We maintain our Hold recommendation. At current lithium market prices, PLS will generate substantial earnings and cash flow ahead of the restart of the 200ktpa Ngungaju processing plant. P2000 and Colina development studies are being progressed, providing substantial organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.

The post Up 300%: Should you buy PLS shares after its strong update? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why Newmont, PLS and Fortescue shares are grabbing headlines on Friday
• Why Newmont, Nuix, PLS, and Vulcan Energy shares are rising today
• PLS shares jump 6% on record quarter and massive cash generation
• PLS Group provides March quarter earnings update

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.

Today, Atlas Arteria Group (ASX: ALX) shareholders received details of a formal off‑market takeover offer from Diamond Infraco 1 Pty Ltd, a subsidiary of IFM Global Infrastructure Fund, at a premium price of $4.75 per security – increasing to $5.10 per security if the bidder’s interest surpasses 45% before the offer closes.

What did Atlas Arteria report?

• The cash offer is for all fully paid stapled securities not already owned by Diamond Infraco 1 Pty Ltd.
• The initial offer price of $4.75 per security is a 9.7% premium to the last close and up to 19% higher than recent trading averages.
• The offer will automatically increase to $5.10 per security if the bidder increases its relevant interest to 45% before the offer ends.
• If the offer is accepted and becomes unconditional, payment will be made within one month of acceptance or 21 days after the offer period ends.
• Bidders currently hold 34.48% of Atlas Arteria securities.

What else do investors need to know?

Diamond Infraco 1 is making the offer to give Atlas Arteria investors the option to sell for cash at a premium. The highest possible offer price of $5.10 per security is “best and final”, meaning it will not be raised even if market conditions change, unless a competing proposal from another party emerges.

The bidder highlighted Atlas Arteria’s recent strategic shift toward potentially equity-funded acquisitions as a key concern, preferring instead a focus on operational improvements over further mergers or acquisitions. Security holders are also reminded that accepting the offer carries no stamp duty and, in most cases, no brokerage.

What’s next for Atlas Arteria?

Investors now have until the close of the offer period to decide whether to accept the proposal. Diamond Infraco has already cleared major regulatory hurdles, including Australian, European, French and German approvals.

Should Diamond Infraco achieve 90% ownership, it intends to move toward full compulsory acquisition of remaining shares and possibly delist Atlas Arteria from the ASX. In any case, investors should consider their own strategic view as well as the premium to recent trading offered.

Atlas Arteria share price snapshot

Over the past 12 months, Atlas Arteria shares have declined 14%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Atlas Arteria receives a takeover offer appeared first on The Motley Fool Australia.

More reading

• Generation Development Group reports cyber incident
• Megaport secures $35.4m compute deal and lifts recurring revenue
• Why this top ASX 200 gold share could rise 50% from here
• NEXTDC opens $0.5 billion retail entitlement offer
• 5 things to watch on the ASX 200 on Monday

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.

ASX ETFs are becoming an increasingly popular investment class, particularly for young Australians. 

A recent report from the AFR said the Australian ETF market could grow to $380 billion in FUM in 2026. 

This is up from about $320 billion last year and just $71 billion in 2020.

The ASX held only about 220 ETFs as recently as 2020, and just 19 in December 2008. However this number is now expected to surpass 500 by the end of the year. 

This week, investors will welcome three new ASX ETFs from VanEck. 

VanEck fund overviews

The three new funds set to hit the market on Thursday, April 30, will operate under the names: 

• VanEck Core+ Diversified Balanced Active ETF: (ASX VBAL). This fund aims to provide a steady core for long-term investors who value resilience as much as return.
• VanEck Core+ Diversified Growth Active ETF (ASX:VGRO). This fund has a higher allocation to growth assets with modest defensive allocation providing ballast during market stress. 
• VanEck Core+ Diversified High Growth Active ETF (ASX:VHGR). This fund aims for maximum exposure to growth assets for long-term capital accumulation, while accepting a higher degree of market variability.

As the names suggest, these will focus on three risk categories: Balanced (VBAL), Growth (VGRO) and High Growth (VHGR).

All funds come with a 0.39% p.a. management fee. 

Focus on diversification 

VanEck said its investment philosophy is underpinned by the belief that markets provide investors opportunities for superior performance, by exploiting market inefficiencies, managing risk or accessing new opportunities.

Each of our funds has been carefully constructed to achieve an investment outcome, empowering investors to take advantage of targeted market opportunities. Now, we have utilised our expertise to build ETFs of ETFs that we think investors can use to be the foundation for their investing future.

The ETF provider said the problem with most existing diversified funds is that they are not effectively diversified.

VanEck’s Core+ Diversified Series aims to change that. Built on over six decades of global investment intelligence and powered by VanEck’s Multi Asset Solutions team, these three ASX-listed strategies give Australian investors and advisers access to institutional-grade portfolio architecture that was previously out of reach.

For our clients, we think this is the upgrade they have been waiting for: a sophisticated, transparent core that complements model portfolio capability, challenges the active manager status quo and gives clients the confidence that their portfolio is genuinely working harder.

The post Meet the three new VanEck ASX ETFs set to hit the market on Thursday appeared first on The Motley Fool Australia.

More reading

• Generation Development Group reports cyber incident
• Megaport secures $35.4m compute deal and lifts recurring revenue
• Why this top ASX 200 gold share could rise 50% from here
• NEXTDC opens $0.5 billion retail entitlement offer
• 5 things to watch on the ASX 200 on Monday

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

Finding significantly undervalued shares at the upper end of the market can be a challenge.

That’s why it sometimes pays to check out what the experts are saying. I’ve had a look at the recent research reports out of broking house Jarden, and selected three stocks that they think could provide some serious upside.

Without further ado, here they are.

Light & Wonder Ltd (ASX: LNW)

Jarden has put together a preview ahead of Light & Wonder reporting its first quarter earnings on May 7.

The Jarden team is expecting a soft quarter from the gaming company, with their expectations for EBITDA of US$326 million sitting 5% below consensus estimates.

But they do point out that the underlying demand backdrop remains intact, with US gross gaming revenue trends “resilient”.

Jarden said they expect the company’s FY26 outlook will be maintained with earnings to grow throughout the year.

They point out that the stock is down about 8% following the FY25 result following minimal earnings changes, and therefore, “we view current entry levels as compelling”.

They added:

Light & Wonder is well placed to deliver double-digit earnings per share growth over the forecast period (18% FY25–FY28 CAGR), whilst trading at a material price to earnings discount to both market and peer Aristocrat

Jarden has a buy recommendation on the shares with a price target of $190 compared with the current price of $121.07.

HUB24 Ltd (ASX: HUB)

HUB24 recently published its third quarter results and the Jarden team said while net funds inflows came in below consensus estimates, the miss was driven by one-off institutional client outflow, while retail flows delivered strong year on year growth.

They added:

Against this backdrop, we view the ~8.3% share price decline as an overreaction, driven more by broader market multiple compression than any deterioration in HUB’s business fundamentals. With our revised FY27 funds under administration of $162.3 billion sitting at the top end of HUB’s guidance range ($148-$162 billion), underpinned by flow assumptions we consider conservative, we retain our Buy rating.

Jarden has a buy recommendation on HUB24 shares and a price target of $115.30 compared with the current price of $83.44.

Cleanaway Waste Management Ltd (ASX: CWY)

Cleanaway recently held an investor day where the company talked through its BluePrint 2030 strategy to grow the business and earnings.

The Jarden team said they were encouraged by the projection that Cleanaway would hit a free cash flow inflection point in FY27, “and we see this as largely congruent with Visible Alpha expectations, which has free cash flow yield more than doubling from FY26”.

Jarden said it was now important for the company to deliver on its ambitions, saying, “we see 2H26 as a critical juncture for Cleanaway to demonstrate that future organic earnings growth can be supported by strong free cash generation, whilst delivering forecast dividends”.

Jarden has a buy recommendation on Cleanaway shares and a price target of $3.10 compared with $2.34 currently.

The post Three ASX 200 shares the Jarden team says are a buy right now appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: NextDC, Hub24, PLS Group shares
• Buy, hold, sell: Cleanaway, Hub24, and MAAS shares
• Missed out on Hub24 and Netwealth? Bell Potter thinks this ASX tech stock is next
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Cameron England has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Light & Wonder Inc. The Motley Fool Australia has recommended Hub24 and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Generation Development Group Ltd (ASX: GDG) share price is in focus today after the company announced its subsidiary, Generation Life Limited, responded swiftly to a cyber incident. The breach was contained rapidly with no evidence of core systems impact or unauthorised transactions, and business operations saw minimal disruption.

What did Generation Development Group report?

• Cyber incident detected in a limited part of Generation Life’s network via a third-party provider
• No evidence of unauthorised transactions or impact on core systems
• Business continuity plan executed promptly; minimal operational disruption
• Incident had no impact on the systems of Evidentia Group or Lonsec Research & Ratings

What else do investors need to know?

Generation Life says leading cyber security experts have been engaged to investigate the incident and assess any potential data impacts. If any advisers or clients are found to have been affected, they will be contacted directly at the end of that review.

The company also notified major regulators, including APRA, the OAIC, the ACSC and NOCS, and will continue to provide updates to the ASX should any material developments arise.

What’s next for Generation Development Group?

Generation Development Group will keep the market informed of any significant changes as its investigation proceeds. At this stage, the focus remains on ensuring all systems are secure and stakeholders, especially clients and advisers, are kept informed of any findings.

The company’s business continuity plan and rapid response demonstrate a proactive approach to handling cyber security matters, which are increasingly relevant for investors today.

Generation Development Group share price snapshot

Over the past 12 months, Generation Development Group shares have declined 14%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Generation Development Group reports cyber incident appeared first on The Motley Fool Australia.

More reading

• Meet the three new VanEck ASX ETFs set to hit the market on Thursday
• Megaport secures $35.4m compute deal and lifts recurring revenue
• Why this top ASX 200 gold share could rise 50% from here
• NEXTDC opens $0.5 billion retail entitlement offer
• 5 things to watch on the ASX 200 on Monday

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 recommended Generation Development Group. 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.

ASX materials stock Alkane Resources Ltd (ASX: ALK) is in focus today after it received a reiterated buy recommendation from Bell Potter. 

The broker also increased its price target on the is a gold exploration and production company.after it released a quarterly update last week. 

What did the company report?

On April 23, this ASX materials stock released a Quarterly Activity Report for the period ending 31 March 2026. 

It reported: 

• Site operating cash flow of $189 million for the quarter 
• Q3 FY26 record gold production of 45,776 AuEq oz @ AISC of $2,928/AuEq oz
• Full Year Group Guidance remains at 160-175kozs AuEq at AISC $2,600-2,900/AuEq oz reflects production from Costerfield and Björkdal from July 2025. 

Managing Director and CEO, Nic Earner, commented: 

It has been another great quarter for Alkane, producing 44,669 ounces of gold and 377 tonnes of antimony (45,776 ounces of gold equivalent) over the full quarter.1 Our site operating cashflow was $189 million for the quarter, resulting in a balance sheet with $374 million in cash, bullion and listed investments at quarter end. Our full year guidance of 160-175kozs gold equivalent remains unchanged.

Despite the positive results, this ASX materials stock fell 10% last week. This included a 5% dip after the company released its quarterly report.

It remains up 100% over the past 12 months. 

Bell Potter maintains positive view

Following the quarterly update, Bell Potter released updated guidance on this ASX materials stock. 

The broker said the March quarter production beat its forecasts and guidance.

This was another strong quarter from ALK that has extended the record-breaking start of the merged asset portfolio. While partially offset by higher input costs and reduced antimony prices in the Mach 2026 quarter, the operational and financial performance to date has been a clear validation of the merger strategy. 

The market’s ongoing rerating of the stock and the recent inclusion of ALK in the ASX200 Index reinforces this further. The successful operational delivery has ALK well-placed to meet FY26 guidance (unchanged) and sustain the strong financial performance.

Healthy upside 

Based on this guidance, Bell Potter has reiterated its buy recommendation on Alkane Resources shares. 

It also increased its price target to 2.10 (previously A$1.95). 

From last week’s closing price of $1.60, this indicates an upside potential of 31%. 

ALK offers multimine gold and antimony exposure across three attractive jurisdictions, a strong balance sheet and an operating platform focused on organic and inorganic growth options.

The post Bell Potter just upgraded its outlook on this ASX materials stock tipping 30% upside appeared first on The Motley Fool Australia.

More reading

• After a 22% crash, this ASX 200 stock could be set to rise 74% according to Bell Potter
• Still down 40% over the past year, how high could WiseTech shares recover?
• National Storage REIT to exit ASX 200 after takeover announcement
• Where is opportunity in the ASX real estate sector? Expert
• This ASX materials stock could rise 20% according to this broker

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 Megaport Ltd (ASX: MP1) share price is in focus after the company secured a three-year, $35.4 million compute and storage contract, and saw its compute annual recurring revenue jump 31% year on year.

What did Megaport report?

• Latitude.sh secured a 36-month contract worth USD$25.1 million (AUD$35.4 million), expected to start in H1 FY27
• Contract adds approximately USD$8.4 million (AUD$11.8 million) in annual recurring revenue (ARR)
• Compute ARR for the on-demand product (excluding the new deal) rose 31% to USD$58.7 million (AUD$82.7 million)
• Megaport Network ARR (including India) climbed 23% to AUD$272.0 million as of 31 March 2026
• Investment includes roughly USD$12.2 million (AUD$17.2 million) in new server hardware

What else do investors need to know?

The new multi-year contract was signed with a US-based, high-growth technology company operating in the developer tools sector. The customer’s name remains confidential but is backed by institutional capital and serves enterprise AI demand.

Supporting this deal, Megaport will invest in new compute hardware, which will be added to its compute pool after the contract ends, offering further revenue opportunities. This strategic contract contributes to Megaport’s committed capex plan for 2026 and 2027, in line with its recent acquisition of Latitude.sh.

What did Megaport management say?

Megaport CEO Michael Reid said:

Securing a contract of this size reflects both the scale of the opportunities we see in the compute market, and our disciplined approach to deploying capital…We will continue to evaluate similar opportunities, investing alongside committed customer demand at compelling paybacks, ensuring capital is deployed after rigorous analysis while supporting the long-term growth of these markets.

The explosion in AI use cases is driving incredible demand for compute and storage, with CPUs remaining a critical component of the infrastructure that powers AI. As businesses increasingly seek flexible, high-performance automated infrastructure, Megaport is perfectly positioned to capture a growing share of this rapidly accelerating opportunity.

What’s next for Megaport?

Megaport has reaffirmed its FY26 revenue and EBITDA guidance for the combined group as detailed in their February 2026 results, with total group capex to remain between AUD$90 million and $100 million, excluding this strategic contract. Depending on hardware delivery schedules, capex could increase by up to AUD$17.2 million in FY26.

Looking ahead, Megaport says its platform is well positioned to tap into strong AI-driven demand for compute, GPU and storage, and intends to keep pursuing disciplined, customer-led growth opportunities.

Megaport share price snapshot

Over the past 12 months, Megaport shares have declined 17%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Megaport secures $35.4m compute deal and lifts recurring revenue appeared first on The Motley Fool Australia.

More reading

• Meet the three new VanEck ASX ETFs set to hit the market on Thursday
• Generation Development Group reports cyber incident
• Why this top ASX 200 gold share could rise 50% from here
• NEXTDC opens $0.5 billion retail entitlement offer
• 5 things to watch on the ASX 200 on Monday

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

Westgold Resources Ltd (ASX: WGX) is an S&P/ASX 200 Index (ASX: XJO) gold share that is well-liked by analysts.

This business is a West Australian underground gold miner. It’s predicted to deliver large returns based on analyst price targets, which is where analysts think the share price will be trading in 12 months from now.

According to CMC Markets, of five recent analyst ratings on the business (all of them buys), the average price target on the business is $9.22, suggesting a possible rise of more than 50% from where it is at the time of writing.

A leading fund manager, L1 Group Ltd (ASX: L1G), has outlined a number of positives about the business that could make it significantly undervalued.

Why the ASX 200 gold share is an appealing buy

For starters, the Westgold share price is now 25% cheaper than it was on 2 March 2026, as the chart below shows. It can be good to look at resource shares when they suffer declines.

L1 noted that the gold price fell by around 12% in March, which defied typical resilience during geopolitical shocks. The fund manager noted significant selling with large-scale profit-taking. L1 highlighted that Turkey sold around 120 tonnes, or US$20 billion, of gold.

The investment team suggested that the valuation of gold miners remain “compelling” despite the recent decline in the gold price, with key positions trading at a price/earnings (P/E) ratio of less than six at the current gold price. L1 suggested that this allows for a “significant margin of safety over future gold price moves and cost inflation“.

The fund manager said that these are historically low valuations in the gold sector.

What makes Westgold shares a buy?

Specifically on Westgold, L1 likes that the business is transforming its portfolio to a “greater scale and quality”.

L1 noted that the ASX 200 gold share is expected to increase production by almost 50% by FY28 to 470,000 ounces, with scope to grow further beyond that.

The fund manager said there’s “further material upside” from the recently discovered Fletcher Zone.

Plus, the company has a significant net cash balance sheet and it’s unhedged to the gold price.

In terms of the valuation, L1 said that the ASX 200 gold share is trading on a 2027 P/E ratio of around five.

The fund manager believes the long-term drivers of the gold price will remain supportive, including central bank buying, fiscal deficits and elevated geopolitical risks.

The post Why this top ASX 200 gold share could rise 50% from here appeared first on The Motley Fool Australia.

More reading

• Meet the three new VanEck ASX ETFs set to hit the market on Thursday
• Generation Development Group reports cyber incident
• Megaport secures $35.4m compute deal and lifts recurring revenue
• NEXTDC opens $0.5 billion retail entitlement offer
• 5 things to watch on the ASX 200 on Monday

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 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 Nextdc Ltd (ASX: NXT) share price is in focus as the company opens its retail entitlement offer, aiming to raise $0.5 billion at $12.70 per new share. This follows the successful completion of the institutional component that raised approximately $1.0 billion.

What did NEXTDC report?

• Retail entitlement offer opens to raise approximately $0.5 billion
• Offer price set at $12.70 per new share, same as institutional offer
• Eligible retail shareholders can apply for up to 100% additional shares via a top-up facility
• Combined institutional and retail components target a total of $1.5 billion capital raising
• Retail entitlement offer closes 11 May 2026 (Sydney time)

What else do investors need to know?

NEXTDC’s retail entitlement offer lets eligible retail shareholders purchase new shares at the same price and ratio as institutional investors. Those taking up their full entitlement can also apply for extra new shares, subject to availability, through the top-up facility.

The funds raised will support NEXTDC’s fully funded growth plan, which aligns with record contracted demand being delivered. The company highlights ongoing focus on digital infrastructure, sustainability, and operational excellence including certified carbon-neutral operations.

What’s next for NEXTDC?

After closing the retail entitlement offer on 11 May 2026, NEXTDC will finalise allocations and proceed with its capital plan. This fresh capital supports continued investment in data centre infrastructure to meet surging demand from the digital economy.

NEXTDC intends to maintain its strong focus on sustainability, operational efficiencies, and expansion, helping to power Australia’s intelligence economy and maintain its leadership in cloud connectivity.

NEXTDC share price snapshot

Over the past 12 months, NEXTDC shares have risen 33%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post NEXTDC opens $0.5 billion retail entitlement offer appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Market alert: 2 major ASX bank shares could fall double digits
• 3 reasons to buy BHP shares now and hold for the next decade
• Experts are bullish about the potential of this ASX 200 share!
• Top brokers name 3 ASX shares to buy next week

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.