Author: openjargon

The new financial year is only a few weeks away.

I think that makes this a good time to look for ASX shares that could be best buys before FY27 begins.

The three shares in this article have strong long-term opportunities and I think they could be worth considering for investors.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix Pharmaceuticals is one ASX share I would buy for FY27.

The company operates in radiopharmaceuticals, which is one of the more interesting areas of healthcare in my view. It is focused on products that can help detect and treat cancer more precisely.

That is the part of the story I find most compelling. Cancer care is moving towards better targeting, earlier detection, and more personalised treatment. Telix is exposed to that shift through imaging products, targeted therapies, and a growing pipeline.

This is not a simple healthcare stock. It carries clinical, regulatory, manufacturing, and commercial risks. The market can also change its view quickly when expectations around high-growth biotech companies move.

But I think Telix has already moved beyond being a purely speculative story. It has commercial products, global ambitions, and a pipeline that could become more valuable over time if management keeps executing.

FY27 could be another important year for the company as investors look for more evidence that Telix can turn its scientific position into durable earnings growth.

Catapult Sports Ltd (ASX: CAT)

Catapult Sports is another ASX share I think could be worth buying before FY27.

The company sells technology used by elite sporting teams to understand performance, training, tactics, workload, and recovery.

What interests me is how embedded this kind of technology can become inside a professional sports organisation. Clubs want information that helps coaches plan sessions, medical teams manage injury risk, analysts review performance, and players prepare more effectively.

That daily-use element is important.

I also think Catapult is becoming a more complete sports technology platform. Wearables remain part of the story, but the opportunity is broader across video, athlete monitoring, analysis, and workflow tools.

Elite sport is also global. Football, basketball, rugby, cricket, American football, and many other codes all want better information. The company does not need to win every team in every league to build a much larger business. It just needs to keep deepening its value with customers and expanding carefully.

ResMed Inc (ASX: RMD)

ResMed is the third ASX share I would buy for FY27.

The sleep health giant has been under pressure, but I think the long-term case remains attractive.

ResMed sells devices, masks, accessories, software, and connected care products for sleep apnoea and other respiratory conditions. But treatment does not necessarily end with a single sale. Patients often need replacement masks, ongoing support, monitoring, and long-term therapy management.

Sleep apnoea remains significantly underdiagnosed, but greater awareness of the condition has been encouraging more people to seek diagnosis over time. ResMed’s leadership position, strong brand, scale, distribution, and product depth position it to win if that continues.

Foolish takeaway

The start of a new financial year can be a useful moment to reassess what kind of businesses are worth owning for the years ahead.

I am drawn to companies that are solving real problems in markets that still have room to grow. Cancer detection and treatment, elite sports performance, and sleep health all fit that description.

I think each of these ASX shares has enough long-term potential to be worth buying before the new financial year begins.

The post Which are the best ASX shares to buy now for FY27? appeared first on The Motley Fool Australia.

More reading

• Canaccord Genuity has just added these two ASX 200 shares to its best ideas list
• Here are the top 10 ASX 200 shares today
• Why Catapult Sports, Harvey Norman, Inghams, and Opthea shares are sinking today
• 3 ASX 200 healthcare shares to buy while they’re on sale
• Are CSL and ResMed shares buys at 52-week lows?

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 Catapult Sports, ResMed, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Catapult Sports and ResMed. The Motley Fool Australia has recommended Telix Pharmaceuticals. 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) is heading south on Friday.

At the time of writing, the benchmark index is down 0.62% to 8,632 points.

The index has fallen from a day high of 8,705 points and is now trading near its session low of 8,613.6 points.

That follows Thursday’s 1.13% fall, which left the ASX 200 at 8,686.1 points.

But here’s the interesting part.

The market is not falling because every part of the ASX 200 is being sold off.

At the latest check, 91 stocks were lower, 99 were higher, and 10 were unchanged.

So why is the index still in the red?

The big end of the market is doing the damage

The weakness is coming from some of the largest names on the ASX.

BHP Group Ltd (ASX: BHP) shares are down 1.93% to $61.59, while Rio Tinto Ltd (ASX: RIO) shares are down 1.24% to $185.74.

Fortescue Ltd (ASX: FMG) is also under pressure, with its shares down 2.24% to $20.55.

Energy stocks are not helping either.

Woodside Energy Group Ltd (ASX: WDS) shares are down 1.69% to $30.80.

Commodity prices are adding to the pressure. Gold is down 0.83% to US$4,437 an ounce, copper is off 1.61% to US$6.40 per pound, and iron ore has fallen 1.69% to US$101.96 a tonne.

Commonwealth Bank of Australia (ASX: CBA) shares are slipping 1.56% to $161.17, while Westpac Banking Corp (ASX: WBC) shares are 1.39% lower at $34.75.

The banks are also weighing on the index.

National Australia Bank Ltd (ASX: NAB) shares are shedding 0.73% to $36.74, and ANZ Group Holdings Ltd (ASX: ANZ) shares are drifting 1.04% lower to $34.12.

Healthcare and tech are helping limit the fall

The other side of today’s session is more positive.

Healthcare shares are among the better performers, with CSL Ltd (ASX: CSL) up 4.59% to $96.84.

Cochlear Ltd (ASX: COH) shares are also higher, rising 5% to $99.85.

ResMed Inc (ASX: RMD) shares are lifting 3.47% to $27.42, while Pro Medicus Ltd (ASX: PME) shares are 3.66% higher at $165.06.

There are also some strong moves in tech and growth names.

Megaport Ltd (ASX: MP1) shares are soaring 10.36% to $18.33, making it one of the standout names on the ASX.

Telix Pharmaceuticals Ltd (ASX: TLX) shares are also higher, rising 5.35% to $13.58.

These gains are helping stop the ASX 200 from looking worse, but they’re not enough to offset pressure from the larger index heavyweights.

The post Why is the ASX 200 falling when so many stocks are rising? 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 CSL, Cochlear, Megaport, ResMed, and Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended BHP Group, CSL, Cochlear, Pro Medicus, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Canaccord Genuity has just published the latest edition of its Invest Now publication, in which it lists its “highest conviction investment ideas”.

They’ve named two new ASX 200 shares in this list, which I’ll get to shortly.

First, let’s look at their broader take on the economy.

Relief rally could be on the way

As a starter, they are basing their outlook on a solution to the Middle East conflict, which has been in a stalemate for some weeks now.

As they said:

A Middle East resolution in the relatively near future remains our central case. Both sides ultimately have strong incentives to negotiate a deal. There is still a decent but finite buffer of energy product reserves, but the clock is ticking on a deal being struck in coming weeks.

CG said that a truce would see a bigger “relief rally” in markets outside of the US, in their opinion, “however the global growth outlook has undoubtedly been tempered by the events in the Middle East, which should favour the tech-led US market at the margin once any short-term relief rally has faded”.

In Australia, CG said the underperformance of the local market versus global equities since the market’s February highs has been “stark”.

They said:

The initial period of relative underperformance in March was related to Australia’s perceived sensitivity to a global energy shock as the outbreak of the US-Iran war saw investors move to price significant downside risks for the global economy. While Australia is well ahead of its late March lows, the local rebound has been held back by a number of factors.

These include a lack of technology exposure, rising domestic macroeconomic concerns, and some disappointing earnings announcements.

ASX 200 shares to consider

In terms of the stocks they like in this scenario, they have added Aristocrat Leisure Ltd (ASX: ALL) and TechnologyOne Ltd (ASX: TNE) to their list.

They said their conviction in Aristocrat had improved materially since its “broadly in-line” first-half result.

They added:

The result suggests the business has returned to consistent execution and double‑digit earnings growth, while importantly demonstrating that it continues to gain share in US land-based gaming, which is key to our thesis. Pleasingly, iGaming momentum also remains strong as the high-growth segment scales towards its US$1bn FY29 revenue target.

With regards to TechnologyOne, they said it was a high-quality software business, “with a deeply embedded customer base across key verticals including government and education”.

They added:

The company’s operational momentum is strong, with FY26 tracking towards the top end of guidance and FY27 is shaping up as another ~20% profit before tax growth year. We remain confident in TNE’s resilience against AI disruption, runway for growth, supported by earnings upgrades from its AI tool Plus.

Other companies in CG’s favoured list locally include Alcoa Corporation (ASX: AAI), Evolution Mining Ltd (ASX: EVN), and Telix Pharmaceuticals Ltd (ASX: TLX).

The post Canaccord Genuity has just added these two ASX 200 shares to its best ideas list appeared first on The Motley Fool Australia.

More reading

• Which are the best ASX shares to buy now for FY27?
• 3 ASX 200 shares that could be too good to ignore in June
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 tech shares to buy now: expert

Motley Fool contributor Cameron England has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and Telix Pharmaceuticals. The Motley Fool Australia has recommended Technology One and Telix Pharmaceuticals. 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) shares are down 0.5% to 8,641.8 points on Friday.

Amid a highly volatile market, brokers downgraded several ASX 200 shares this week.

Let’s take a look at their new ratings and 12-month share price targets for six ASX 200 stocks.

CSL Ltd (ASX: CSL)

The CSL share price is $96, up 3.7% today.

The market’s biggest ASX 200 healthcare company has lost 44% of its valuation in the calendar year to date (YTD).

Jefferies downgraded CSL shares to a hold rating and slashed its price target from $195 to $108.

This still implies a potential 12% upside ahead.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $39.77, down 0.9% on Friday.

Over the past six months, this ASX 200 tech share has fallen 46%.

WiseTech Global is no longer the market’s biggest tech company. It handed over the reins to Xero Ltd (ASX: XRO) last month.

JP Morgan downgraded WiseTech shares to a hold rating with a $40 target this week.

This suggests the stock is already fully valued.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is $4.95, down 0.3% today.

The ASX 200 telco share has fallen 9% over the past month.

Macquarie downgraded Telstra shares to a hold rating this week.

The broker shaved its 12-month price target from $5.64 to $5.57.

This suggests just a 2% potential upside left in the year ahead.

Capricorn Metals Ltd (ASX: CMM)

The Capricorn Metals share price is $12.90, down 3.2% today.

This ASX 200 gold mining share has fallen 11% YTD.

Goldman Sachs downgraded Capricorn Metals shares to a hold rating on Thursday.

The broker lowered its 12-month target from $17.60 to $16.90.

This still implies a healthy potential upside of 29% ahead.

Find out why the gold price has fallen since the Iran war began here.

IGO Ltd (ASX: IGO)

The IGO share price is $8.96, down 3.2% today.

This ASX 200 lithium share has risen 9% YTD.

JP Morgan downgraded IGO shares to a hold rating this week.

However, the broker lifted its 12-month price target from $8.50 to $9.50.

This indicates capital gains of 7% over the next year. 

Harvey Norman Holdings Ltd (ASX: HVN) 

The Harvey Norman share price is $4.43, up 0.8% on Friday.

This ASX 200 consumer discretionary share has taken a big tumble in 2026.

The furniture retailer has lost 37% of its valuation YTD.

Macquarie downgraded Harvey Norman shares to a hold rating this week.

The broker slashed its price target from $6.60 to $4.50.

This suggests potential capital growth of just 2% over the next year. 

The post 6 ASX 200 shares downgraded by analysts this week appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares that could be too good to ignore in June
• Here’s what brokers tip for CSL shares over the next 12 months
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• 3 ASX 200 tech shares to buy now: expert
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JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen 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 CSL, Goldman Sachs Group, JPMorgan Chase, Jefferies Financial Group, Macquarie Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Harvey Norman, Macquarie Group, Telstra Group, and WiseTech Global. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Perpetual Ltd (ASX: PPT) is giving investors something else to consider after a rough start to 2026.

The financial services group is higher on Friday after announcing a new acquisition and an update on its debt position.

At the time of writing, the Perpetual share price is up 2.13% to $15.84.

It was stronger earlier in the session, reaching $15.96 in morning trade before some investors took profit.

The move offers some relief after a difficult run for the stock.

Even after today’s gain, Perpetual shares are still down around 15% in 2026.

Perpetual makes a new acquisition

According to the release, Perpetual has entered a share sale deed to acquire 70% of Interfi Systems Pty Ltd.

Interfi is a loan servicing technology business with around $55 billion in assets under administration (AUM).

The company provides loan administration, arrears management, recovery, collections, and special servicing services.

Perpetual said the deal is part of its plan to grow its Corporate Trust business and expand its Digital and Markets division.

The acquisition price was not disclosed.

Perpetual said the deal will be funded from internally generated cash flows and is expected to be completed before the end of June.

The company also has an option to acquire the remaining 30% of Interfi shares by FY31.

Interfi founder and Managing Director Michael Dilworth will continue with the business.

Why investors are buying

The market appears to be focusing on both sides of today’s update.

On the acquisition side, Interfi gives Perpetual more exposure to loan servicing technology, which sits alongside its existing corporate trust operations.

Management expects the acquisition to contribute to growth in the Corporate Trust Digital and Markets division in FY27 and beyond.

Chief Executive Bernard Reilly said the deal supports Perpetual’s aim of building a broader digital ecosystem and automating end-to-end loan functions.

The balance sheet update is also likely helping sentiment.

Perpetual said its gross debt is expected to fall by about 15% over the six months to 30 June.

Gross debt stood at $742 million at 31 December 2025.

Debt remains a key focus

Perpetual has been under pressure this year, and investors are still watching the balance sheet closely.

The company has been trying to tidy things up after several years of deals and corporate changes.

Its wealth management, asset management, and corporate trust operations have all been under the microscope as investors look for a simpler business.

So, the lower debt guidance is a welcome sign, especially after such a difficult run for the share price.

The post This beaten-down ASX stock just jumped on a $55 billion deal appeared first on The Motley Fool Australia.

More reading

• Perpetual to acquire Interfi majority stake; debt reduction underway
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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 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.

Picking a share that’s undervalued and enjoying the subsequent share price gains is what every investor is after, but it’s easier said than done.

I’ve had a look at the broker reports published this week and selected three that make a good case for potentially lucrative upside in the shares covered.

Let’s look at what they’re saying.

Seek Ltd (ASX: SEK)

Shares in the employment website and technology company have struggled over the past 12 months, shedding about 45% of their value over the period.

The analyst team at Jarden thinks the shares are oversold and bases this opinion on a “proprietary tracker” it has built to assess how Seek is faring.

In short, they think the company is well-positioned.

As they said:

We believe Seek can easily achieve its ‘low double digit’ yield growth guidance for FY26 … 2H26’s strong momentum gives us confidence that Seek can achieve its ‘high single digit’ % yield growth ambition in ANZ, with upside risk. Our proprietary tracker indicates that Seek has maintained its year-on-year pricing growth from 1H26 into 2H26.

Jarden notes that it believes the Australian labour market is past its peak, which will be a headwind for the company.

Jarden has a price target of $23.25 on Seek shares, down from $23.50, but still well above the current price of $13.07. If achieved, the price target would constitute a 77.8% gain.

Propel Funeral Partners Ltd (ASX: PFP)

Propel just announced three acquisitions in New Zealand, which will cost it $9.1 million and expand its network into regional markets.

Together, the companies being acquired generate about $4 million in revenue from more than 700 funerals annually and operate from four locations.

The company also gave guidance on its expected performance this year, saying revenue would be in the range of $225 to $230 million compared to last year’s $225.8 million, while EBITDA would be in the range of $54.5 to $56.5 million, compared to last year’s $56.2 million.

Macquarie downgraded its outlook for the company across the next three years, but still has a share price target of $5.50, well above current levels of $3.24. If achieved, the price target would constitute a 69.8% gain.

IperionX Ltd (ASX: IPX)

This company this week published a definitive feasibility study for its Titan critical minerals project in the US, which said the project could be developed over two stages for US$381.3 million.

The mine, which would produce titanium, zircon, and heavy rare earth concentrate, was expected to have a mine life of 14 years and to earn US$2.8 billion in EBITDA over that period.

Bell Potter, in a report issued this week, has a speculative buy rating on the shares, with a price target of $8.25 compared to the current price of $5.43.

If achieved, the price target would constitute a 51.9% return.

Bell Potter said the company now had the opportunity to forge ahead with funding and partnership discussions.

The post Brokers name 3 ASX shares poised for 52% to 78% gains 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 S&P/ASX 200 Index (ASX: XJO) is ending the week in a subdued manner. In afternoon trade, the benchmark index is down 0.6% to 8,634.4 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is down 1.5% to $161.30. This may have been driven by a broker note out of Morgan Stanley this morning. According to the note, the broker has retained its underweight rating on CBA’s shares with a reduced price target of $125.00. The broker has named Australia’s largest bank as its least favoured major bank. Morgan Stanley’s price target implies potential downside of 22% from current levels.

PLS Group Ltd (ASX: PLS)

The PLS share price is down over 3% to $5.93. Investors have been selling the lithium miner’s shares despite there being no news out of it today. However, it is worth noting that most lithium stocks are falling on Friday. In addition, PLS recently reported some heavy insider selling, as we covered here.

Resolute Mining Ltd (ASX: RSG)

The Resolute Mining share price is down 6% to $1.12. Investors have been selling the gold miner’s shares today after it released a disappointing update on its Syama operation. That update revealed that production during the second quarter of FY 2026 has been impacted by logistical and supply chain disruptions. As a result, Resolute Mining now expects Syama’s second-quarter gold production to be around 30,000 ounces. This is well short of its original expectation of 40,000 ounces to 45,000 ounces. The company’s CEO, Chris Eger, said: “Recent performance at Syama has been below expectations despite the significant changes implemented in Mali. These issues are well understood, and our focus is on stabilising operations and restoring consistent performance. Importantly, the broader business continues to perform well. The Company remains cash generative, supporting ongoing investment in growth, including the Doropo development, which continues to progress to plan.”

Silver Mines Ltd (ASX: SVL)

The Silver Mines share price is down 3.5% to 13.5 cents. This morning, this silver developer announced that it has entered into an option underwriting agreement with Petra Capital to fully underwrite the exercise of unlisted options. It said: “The Company has decided to enter into the Underwriting Agreement for the purpose of providing certainty that it will raise additional funds of $7,556,782.”

The post Why CBA, PLS, Resolute Mining, and Silver Mines shares are dropping today appeared first on The Motley Fool Australia.

More reading

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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.

With only a few hours left before Friday’s closing bell, the S&P/ASX 200 Index (ASX: XJO) is down 1.3% for the week, but don’t blame these three surging ASX 200 stocks.

One of this week’s top performers is a global wine company, one is a technology-linked health imaging company, and the third is heavily involved in the AI revolution.

So, which ASX shares are leaping higher in this week’s slumping market?

Read on!

Treasury Wine Estates Ltd (ASX: TWE)

Our first outperformer is Treasury Wine.

Shares in the global wine company closed last week trading for $4.24. At the time of writing, Treasury Wine shares are changing hands for $4.63 apiece. That sees this ASX 200 stock up 9.2% for the week.

Treasury Wine shares closed up an impressive 13.1% on Thursday after the company announced details of its five-year transformation plan at its 2026 Investor Day.

Investors reacted positively, with the company aiming for $100 million in annualised cost reductions.

Management provided full-year FY 2026 earnings before interest, tax, and significant items (EBITS) guidance in the range of $480 million to $490 million.

Treasury Wine also said it expects to return to revenue growth from FY 2028.

Megaport Ltd (ASX: MP1)

Megaport shares are also enjoying a strong run, with today marking only the second day this week that the ASX 200 stock has traded.

Shares in the AI-focused network services company closed on Monday trading for $16.61.

Megaport shares entered a trading halt on Tuesday while the company conducted a $518 million capital raising via a fully underwritten entitlement offer.

This morning, the stock recommenced trading on the ASX after announcing that it had successfully completed the institutional part of that capital raising.

Management expects the upcoming retail component of the capital raise to bring in another $309 million. The company plans to use the funds, in part, to pursue its global growth ambitions following a series of new AI infrastructure contracts.

“This exceptional outcome reflects the strong support of our institutional shareholders and their confidence in our strategy,” Megaport CEO Michael Reid said.

Following this news, the Megaport share price is up 8.4% today at $18.01. That sees shares up 16% since last Friday’s close.

Which brings us to…

Pro Medicus Ltd (ASX: PME)

Pro Medicus shares are lifting off this week following two new contract announcements.

Shares in the health imaging company closed last Friday trading for $132.26. At the time of writing, shares are swapping hands for $163.82.

That puts this ASX 200 stock up 23.9% in this week’s sinking market.

Pro Medicus shares closed up 9.2% on Monday after the company reported inking a new five-year contract renewal with Allegheny Health Network, valued at $28 million.

“AHN has now renewed for a third contract term, reflecting the strength of our long-standing partnership and the value our platform continues to deliver across their organisation,” Pro Medicus CEO Sam Hupert said.

The post 3 ASX 200 stocks racing higher in this week’s slumping market appeared first on The Motley Fool Australia.

More reading

• Up 183% since April, why the Megaport share price is tipped to keep charging higher
• ‘Game on!’ Why Megaport shares are rocketing 27% today
• Megaport completes $518m institutional entitlement offer
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today

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

Civmec Ltd (ASX: CVL) has given investors another reason to chase its already strong share price run.

The engineering and construction group climbed to a new record high of $1.84 during early morning trade after releasing an order book update.

At the time of writing, the Civmec share price is up 5.44%. By comparison, the S&P/ASX All Ords Index (ASX: XAO) is hovering 0.64% lower at 8,860 points.

The move adds to a big 12 months for shareholders, with Civmec shares now up around 75% over the past year.

The stock has also gained 26% in 2026, helped by strong demand across resources, infrastructure, energy, and maintenance work.

Let’s take a closer look at the release.

Order book hits record $1.5 billion

According to the announcement, recent contract wins and extensions have taken Civmec’s order book to a record $1.5 billion.

The work comes from several parts of the business, including resources, infrastructure, energy, and maintenance.

Civmec said the new orders are expected to be delivered across FY27 and FY28.

Iluka and Perth Park contracts in focus

A large part of the update comes from work tied to Iluka Resources Ltd (ASX: ILU) and the Perth Park project.

At Iluka’s Eneabba Rare Earths Refinery in Western Australia, Civmec has secured extra structural, mechanical, piping, electrical, and instrumentation installation work.

The new scope builds on work Civmec was already doing at the site.

It also covers installation across key refinery process areas, with the project expected to support Iluka’s move toward commissioning from CY2027.

Civmec also pointed to the Perth Park project at Burswood Peninsula.

The alliance between Civmec, Seymour Whyte, and Aurecon has now been awarded the major construction contract.

The project runs from planning and design through to construction delivery, with the precinct expected to be substantially complete in late 2027.

Civmec said only its share of the alliance contract has been included in the order book.

Foolish Takeaway

Civmec is not a stock every ASX investor will know well, but the share price run is getting harder to miss.

The company provides construction and engineering services to the energy, resources, infrastructure, marine, and defence sectors.

After its latest rise, Civmec has a market capitalisation of about $937 million. It also trades on a price-to-earnings (P/E) ratio of about 25 times.

That means the stock is no longer trading like an overlooked small cap. But investors will now want to see how much of that order book can turn into profit.

The post This ASX stock just hit a record high. Here’s why investors are buying 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 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 on fire today.

Shares in the S&P/ASX 200 Index (ASX: XJO) network services company closed on Monday trading for $16.61.

The ASX 200 tech stock then entered a trading halt on Tuesday while Megaport conducted an $827 million capital raising via a fully underwritten entitlement offer.

This morning, the stock recommenced trading on the ASX after announcing that it has successfully completed the institutional component of that capital raising.

Following this news, the Megaport share price is up to $18.13 in late morning trade on Friday. That sees shares up 9.1%, despite the broader 0.6% decline on the ASX 200 today.

It also means that investors who managed to snap up shares at the intraday lows of $6.40 on 13 April are now sitting on gains of 183.3%. That’s enough to turn a $6,000 investment into $16,997. In less than two months!

We’ll look at Citi’s latest forecast for the surging tech stock below.

But first…

What did the ASX 200 tech stock announce?

The Megaport share price is surging after the company said it raised approximately $518 million from its institutional entitlement offer.

The company will issue approximately 36.2 million new shares at $14.30 each. That’s 13.9% below Monday’s closing price, and 21.1% below the current price.

Management said the company will proceed with the retail offer, which will provide retail stockholders the opportunity to invest at the same discounted institutional offer price. The company expects the retail component of the capital raise to bring in $309 million.

The company plans to use the new capital to fund its global growth plans. On Monday, for example, Megaport announced that it had signed four new AI infrastructure contracts valued at $459 million.

“This exceptional outcome reflects the strong support of our institutional shareholders and their confidence in our strategy,” Megaport CEO Michael Reid said.

Looking ahead, Reid added:

By combining Megaport’s global footprint of more than 1,100 data centres in 31 countries with Latitude.sh’s platform capabilities, we are building a Globally Distributed AI Inference Cloud designed to support AI at global scale.

We now look forward to our retail shareholders having the same opportunity to participate on a pro rata basis. We’re just getting started. Game on!

What is Citi forecasting for the Megaport share price now?

Following a series of recent AI contract wins, and with Megaport’s strengthened balance sheet leaving it well-funded to take on more AI-related contracts, Citi upgraded its target for the Megaport share price by 41% to $22.10 (courtesy of The Australian Financial Review).

That represent a further potential upside of almost 22% from current levels.

The broker foresees strong earnings growth for the ASX 200 tech share, boosting its FY 2027 earnings before interest, taxes, depreciation and amortisation (EBITDA) forecast for the company by 73% to around $255 million.

The post Up 183% since April, why the Megaport share price is tipped to keep charging higher appeared first on The Motley Fool Australia.

More reading

• ‘Game on!’ Why Megaport shares are rocketing 27% today
• Megaport completes $518m institutional entitlement offer
• 5 things to watch on the ASX 200 on Friday
• Up 148% since April, should I still buy Megaport shares today?
• How high does Macquarie think Megaport shares will go?

Citigroup is an advertising partner of Motley Fool Money. 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 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.