Author: openjargon

The Vanguard MSCI Index International Shares ETF (ASX: VGS) is an exchange-traded fund (ETF) I would be comfortable owning for a very long time.

It provides broad exposure to international share markets in a single investment, which can make it a simple way to add global growth to a portfolio.

Here are three reasons I think it is a buy.

Broad global diversification

One of the biggest attractions of the VGS ETF is just how much exposure investors get through one fund.

It invests across developed markets outside Australia, giving investors access to companies in the United States, Japan, the United Kingdom, Europe, and other major economies.

That means an investor is not relying on the performance of one country or a small collection of businesses.

I think this can be particularly valuable for Australians whose other investments are already concentrated locally.

The Australian share market has plenty of strong companies, but many of the world’s largest healthcare, industrial, technology, consumer, and financial businesses are based elsewhere.

The Vanguard MSCI Index International Shares ETF makes it easy to participate in those opportunities without having to open an overseas brokerage account or research dozens of individual companies.

Exposure to global leaders

The VGS ETF owns some of the world’s most successful businesses.

Its portfolio includes companies such as Nvidia, Microsoft, Apple, and Amazon, alongside over a thousand other businesses operating across many industries.

I like that because investors can benefit if today’s leading companies continue expanding, without having to decide which individual stock will ultimately perform best.

The portfolio also changes naturally over time. Companies that become more valuable can grow into larger positions in the underlying index, while businesses that lose ground become less influential.

Over a long holding period, I think that is attractive. The fund can continue evolving alongside global markets without investors having to constantly rebuild their portfolio themselves.

It is easy to keep adding

The third reason I like the VGS ETF is its simplicity.

There is no need to wait for the perfect stock idea every time new money becomes available.

An investor can buy more units and immediately spread that money across a large collection of international businesses. That can make regular investing much easier.

I would still expect volatility. Global share markets will go through recessions, bear markets, changing interest rates, and periods when valuations become stretched.

Currency movements can also influence returns for Australian investors.

But for someone investing over 10 years or longer, I think those short-term fluctuations are a reasonable price to pay for access to global economic and corporate growth.

Foolish takeaway

I think the VGS ETF gets a lot right without making investing unnecessarily complicated.

It gives investors exposure to a wide range of countries and industries, includes many of the world’s strongest companies, and can be easily added to over time.

For me, those qualities make the Vanguard MSCI Index International Shares ETF one of the ASX ETFs I would be happy to buy and hold for the long term.

The post 3 reasons to buy the Vanguard MSCI Index International Shares (VGS) ETF appeared first on The Motley Fool Australia.

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• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• Why I’d buy this ETF instead of picking 20 ASX shares
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• Could a $1 million superannuation balance provide $50,000 a year in retirement?
• Are these top Vanguard ETFs still a buy in September?

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 Amazon, Apple, Microsoft, and Nvidia. The Motley Fool Australia has recommended Amazon, Apple, Microsoft, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

New Hope Corporation Ltd (ASX: NHC) shares are heading north after the coal miner released its FY26 results on Tuesday.

At the time of writing, the New Hope share price is up 2.55% to $6.44, just below its 52-week high of $6.49.

It’s been a strong run for the stock, and today’s gain has taken it even closer to a new high.

And while profit fell from last year, there were still a few things investors seemed to like.

So, what stood out?

Production keeps climbing

One of the better parts of the update was the continued lift in coal production.

New Hope produced 11.5 million tonnes of saleable coal during FY26, up 7.6% from a year earlier.

Coal sales rose even faster, climbing 11.8% to 11.8 million tonnes.

Bengalla produced 8.2 million tonnes on New Hope’s 80% interest basis, while New Acland lifted production 17.3% to 3.3 million tonnes.

But the higher volumes weren’t enough to make up for weaker coal prices.

New Hope’s average realised coal price fell 10% to $145.20 per tonne, while group FOB cash costs increased 7.9% to $88.90 per tonne.

That hit earnings pretty hard, with underlying EBITDA falling 32.8% to $514.3 million.

Net profit after tax (NPAT) came in at $161 million, down 63.4% from the previous year.

Cash is still coming in

Even with profit down, New Hope still brought in plenty of cash.

Operating cash flow came in at $564.1 million, while the company finished July with $778.5 million in available cash.

And shareholders are seeing some of that cash come back their way.

New Hope declared a fully-franked final dividend of 30 cents per share, taking total dividends for FY26 to 40 cents per share.

That’s up from 34 cents per share in FY25, despite the big drop in profit.

The company also has an on-market share buyback of up to $100 million in place.

What happens next?

New Hope still has more production to bring on.

New Acland is working towards around 5 million tonnes of saleable coal a year, while Maxwell should contribute more as production ramps up.

Over the longer term, New Hope is aiming for group saleable coal production of around 15 million tonnes.

Of course, coal prices will have a big say in how earnings look.

If coal prices hold up, having more tonnes to sell should help earnings as that extra production comes through.

And with plenty of cash in the bank, New Hope can keep spending on growth while still paying shareholders along the way.

The post New Hope shares near 52-week high. Here’s what stood out in the result appeared first on The Motley Fool Australia.

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• New Hope reveals major 2026 coal resource increases
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• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: New Hope, BOQ, Santos shares
• Buy, hold, sell: Endeavour, JB Hi-Fi, and New Hope shares 

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.

Shares in Barton Gold Holdings Ltd (ASX: BGD) have been pretty much steady over the past year, but according to the team at Canaccord Genuity, that could be about to change.

Big things in store for this ASX gold company

CG has initiated coverage on Barton Gold with a speculative buy rating and a bullish price target, which I’ll get to shortly.

First, let’s look at why they like the company.

The CG team said Barton had done a good job of building a large gold development portfolio in South Australia “through a combination of opportunistic asset acquisitions, infrastructure ownership deals and disciplined capital management”.

They added:

The company has consolidated a 2.2Moz Au and 3.1Moz Ag resource base across four projects, acquired strategic assets including the Wudinna Gold Project and the region’s only gold processing facility, the Central Gawler Mill (CGM), and generated more than A$13m of non-dilutive cash through asset monetisation initiatives. In our view, few junior developers have built a comparable regional platform while maintaining such a measured approach to shareholder dilution. BGD’s portfolio is underpinned by two core development assets: Tunkillia and Challenger.

The broker believes the company’s value driver is the Tunkillia project, where Barton has delineated to date 1.6 million ounces of gold and 3.1 million ounces of silver.

A scoping study released in May 2025 envisaged an eight-year mining plan with a capital cost of $452 million; however, recently completed resource drilling is expected to support further improvements, CG said.

The broker added:

We view Tunkillia as one of the more compelling undeveloped gold projects in Australia given its scale, production profile, meaningful silver credits and overall similarity to Capricorn Metals Ltd’s (ASX: CMM) Karlawinda gold mine.

CG said Barton’s stage one strategy involved restarting the Challenger gold mine and the associated Central Gawler Mill (CGM), “creating a potential pathway to near-term producer status and an internal source of cash flow to assist Tunkillia’s development”.

They added:

Challenger hosts 313koz Au across tailings, open pit and underground resources, while the fully permitted 600ktpa CGM produced ~1.2Moz historically and is estimated to require only ~A$26m of refurbishment capital. A definitive feasibility study is underway evaluating an initial 3-4 year operation based largely on tailings retreatment and near-surface feed, preserving the larger underground opportunity for future development.

Beyond Tunkillia and Challenger, Barton holds additional regional growth prospects, CG said, including the Perseverance Mine and the Tolmer silver-gold discovery.

Shares looking cheap

CG has a price target of $2.05 for Barton Gold shares, compared to the current $1.02.

The post This ASX gold developer could jump more than 100%: Broker appeared first on The Motley Fool Australia.

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• New Hope shares near 52-week high. Here’s what stood out in the result
• Buy, hold, sell: Magellan, Iluka Resources, PLS Group shares
• Down 32%: 3 reasons to buy the BIG dip in NextDC shares today
• Are DroneShield shares a buy at their 52-week low?
• Are Telstra shares a good buy for passive income?

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.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.6% to 8,701 points on Tuesday.

Among the 11 market sectors, technology is in the lead today, up 2.3%, while materials is the laggard, down 2.1%.

Let’s check out some new expert ratings for this week (courtesy The Bull).  

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is $8.59, up 0.5% today and down 20% over the past month.

James Bills from Shaw and Partners has a buy rating on this ASX 200 financial share. 

Bills said: 

Magellan offers investors exposure to a respected global funds management business that appears attractively valued following several challenging years. The company continues to generate strong cash flow and maintain a robust balance sheet.

The business also offers an appealing dividend yield – recently above 7 per cent – supported by surplus capital.

Improving sentiment and stabilising operating conditions provide potential for a re-rating, making Magellan an attractive opportunity for income and capital growth investors.

Iluka Resources Ltd (ASX: ILU)

The Iluka Resources share price is $6.03, down 0.8% on Tuesday and down 16% over the past month.

Joshua Baker from RaaS Group has a hold rating on this ASX 200 mining share. 

Baker said: 

This mineral sands producer is diversifying into rare earths via its Eneabba refinery, which is 60 per cent complete. The company recently reported the refinery is progressing on schedule and on budget. An inaugural off-take agreement has been executed.

Mineral sands revenue of $433 million in the first half of 2026 was down 22 per cent on the prior corresponding period.

If the Eneabba project continues without any major cost blowouts or delays amid mineral sands prices continuing to recover, ILU may be a buy next year.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $4.37, down 0.9% today and down 14% over the past month.

Toby Grimm from Baker Young has a sell rating on this ASX 200 lithium share. 

Grimm said: 

This lithium producer generated group revenue of $1.934 billion in full year 2026, up 152 per cent on the prior corresponding period. It was driven by a 121 per cent increase in the average realised price and record sales volumes.

However, in our view, considerable optimism is already priced into the stock. Further details, including the benefits and risks, of potentially expanding the Pilgangoora operations are expected to be released in the December quarter.

After a strong share price run in the past year, we would consider cashing in some gains at these levels.

The post Buy, hold, sell: Magellan, Iluka Resources, PLS Group shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Magellan Financial Group. 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.

NextDC Ltd (ASX: NXT) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) data centre operator and developer closed yesterday trading for $11.71. In morning trade on Tuesday, shares are changing hands for $11.51 apiece, down 1.7%.

For some context, the ASX 200 is down 0.5% at this same time.

Taking a step back, the ASX tech stock has also trailed the benchmark index over the last full year, falling 32.2% compared to the 1.7% one-year decline posted by the ASX 200.

Looking ahead, however, Shaw and Partners’ James Bills believes that NextDC shares are well positioned for “attractive” long-term growth (courtesy of The Bull).

Here’s why.

Should I buy NextDC shares today?

Citing the first reason he’s bullish on the ASX 200 tech stock, Bills said, “The company continues to benefit from strong demand for data centre infrastructure, driven by cloud computing, artificial intelligence and increasing digitalisation across the economy.”

Then there’s the company’s fast-growing capacity.

“NXT is expanding capacity across key Australian markets and maintains a strong development pipeline to support future growth,” Bills said.

And summarising the third reason he issued a buy recommendation on NextDC shares, Bills concluded:

While investment spending remains elevated, management continues to secure long-term customer contracts that provide earnings visibility. With structural growth tailwinds expected to persist for many years, NXT remains well positioned to deliver attractive long-term shareholder returns.

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

NextDC reported its full-year FY 2026 results after market close on 27 August.

Highlights included a 16% year-on-year increase in revenue to $496.5 million.

And, as Bills mentioned above, investment spending indeed remains elevated. In FY 2026, NextDC reported all-time high capital expenditure of $3.397 billion.

On the bottom line, the company achieved a statutory net profit after tax (NPAT) of $82.1 million, up from a $60.5 million net loss the prior year.

Looking at what could impact NextDC shares in FY 2027 ahead, the company forecasts net revenue between $615 million and $640 million. On the higher end, that would represent growth of 29% from FY 2026 revenue.

Commenting on the company’s performance, NextDC CEO Craig Scroggie said:

FY26 was the largest contracting year in NEXTDC’s history. Contracted utilisation tripled to 740.1MW on a pro forma basis, and we exceeded guidance on both net revenue and Underlying EBITDA.

Our Forward Order Book of 565MW is now more than 3.2 times our billing utilisation, and our focus is on delivering that capacity and converting it into revenue and cash inflow.

NextDC shares closed up 2.1% on the first trading day following the results release.

The post Down 32%: 3 reasons to buy the BIG dip in NextDC shares today appeared first on The Motley Fool Australia.

More reading

• Experts name 3 top ASX shares to buy this week
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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 going through a difficult period.

The counter-drone technology company has fallen to a fresh 52-week low of around $1.59, leaving the share price a long way below its previous high of $6.70.

For investors prepared to accept a high level of risk, I think the lower price is becoming increasingly interesting.

The business is still growing

The share price performance looks ugly, but I think it is important to separate that from what is happening inside the business.

DroneShield continues to convert growing global demand for counter-drone technology into revenue.

Its latest trading update showed FY26 committed revenue had reached $251 million, putting it inside management’s existing revenue outlook of $250 million to $270 million. The company also reported $46 million of committed revenue for FY27 and beyond.

For me, that is encouraging because it shows the opportunity is moving beyond conversations and potential contracts. Customers are placing orders.

DroneShield also secured the first order for its recently released RfRecon product, which will be deployed to an existing Western European military customer before the end of 2026. The initial order is not financially material, but it does provide early validation for another product in the company’s expanding range.

Why the opportunity still interests me

The long-term driver behind DroneShield has not disappeared just because the shares have fallen.

Drones are becoming a larger part of modern warfare, border security, and threats to critical infrastructure.

That creates demand for systems capable of detecting, tracking, and defeating them.

DroneShield already sells into military, government, law enforcement, and critical infrastructure markets around the world.

I also like that the company is investing to expand internationally rather than relying entirely on Australia.

If counter-drone spending continues increasing and DroneShield can establish itself as a meaningful supplier across several major defence markets, today’s business could look very different in five or 10 years.

But this is still a high-risk investment

This is the part I would not understate. DroneShield remains one of the highest-risk ASX shares I would consider buying.

Revenue can be lumpy because defence orders do not arrive evenly. The company is still scaling quickly, and investors need to see that larger revenue translates into sustainable profits over time.

Competition could also intensify as governments commit more money to counter-drone systems and larger defence companies pursue the same opportunity.

Then there is the share price itself. A fall from $6.70 to $1.59 shows how violently market expectations can change. I would not assume that reaching a 52-week low means the shares cannot fall further.

For that reason, I would only consider DroneShield as a relatively small position within a diversified portfolio.

Foolish takeaway

At $1.59, I think DroneShield shares are a buy for investors with a high tolerance for risk.

The valuation is much less demanding than it was near the highs, while committed revenue continues to move in the right direction.

There is still plenty for the company to prove, particularly around profitability and execution.

But for patient investors willing to accept substantial volatility, I think the long-term counter-drone opportunity makes the current share price worth considering.

The post Are DroneShield shares a buy at their 52-week low? appeared first on The Motley Fool Australia.

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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 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.

Telstra Group Ltd (ASX: TLS) shares have had a volatile run through the first nine months of 2026. 

The ASX telco’s shares flew to a 10-year high of $5.55 a piece in mid-May, but then they crashed around 18% to an annual low in late-August. Since then, the shares have rebounded again.

At the time of writing, Telstra shares are trading at $4.86 a piece. That’s around a 5% increase from last month’s low and around 1% lower for the year to date.

Going forward, it looks like there could be a lot more upside ahead for the shares. TradingView data shows that the majority of analysts have a buy/strong buy rating on the stock, and some tip an upside of up to 13% to a maximum $5.50 target price.

It’s not all about share price gains and losses, though. Telstra has plenty more to offer its shareholders.

Telstra shares are a great buy for passive income

Telstra, as a business, is classically defensive. As a provider of internet access and mobile connectivity, the telco benefits from a stable income.

Phone and internet connectivity are considered essential services, which means their offerings are in high demand regardless of where we are in the economic cycle, inflation rates, or the cost of living.

And that means the company is able to perform steadily over the long term, rather than being subject to market fluctuations, cyclical growth, or shifting investor sentiment.

This is great news for investors who want to hedge against potential volatility elsewhere in the index.

Just last month, the company announced its FY26 results, including a 4% year-on-year increase in EBITDA to $8.3 billion and a 4.9% increase in underlying NPAT to $2.5 billion.

Going forward, Telstra expects to continue growing its underlying EBITDA and has posted guidance of between $8.5 billion and $8.8 billion in FY27.

It’s this consistent performance, combined with Telstra’s defensive nature, that enables the company to pay its shareholders a reliable, consistent passive income stream.

Not only that, its dividend payout ratio is close to 100% of company earnings, which unlocks a great dividend yield.

What passive income does the telco pay its shareholders?

Telstra traditionally makes two fully-franked dividend payments to shareholders every year, payable in March and September. 

The telco paid its shareholders a 10.5-cent dividend in March, 90.48% franked, and a final 9.5-cent, fully-franked dividend this month. That totals 21 cents for FY26.

Based on the latest forecasts, the telco is also expected to pay a total dividend of 21 cents per share in FY27.

Based on the current share price, that translates to a dividend yield of around 4.4% for FY26 and FY27.

The post Are Telstra shares a good buy for passive income? 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 positions in and has recommended Telstra Group. 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 0.5% lower at 8,706.8 points on Tuesday.

With earnings season over, brokers have updated their ratings and 12-month price targets on scores of ASX 200 shares.

Here are three with strong upside potential.

Life360 Inc (ASX: 360)

The Life360 share price is $20.88, up 6.9% today.

Over the past month, this ASX 200 tech share has fallen 15%.

Bell Potter renewed its buy rating on Life360 shares but shaved its price target down from $35 to $34.

This suggests a potential 62% upside ahead.

Analyst Chris Savage said:

The 2Q2026 key metrics of MAU growth, paying circle growth and adjusted EBITDA were all ahead of our forecasts…

The 2026 guidance for MAU growth, consolidated revenue and adjusted EBITDA were all unchanged…

We retain our BUY recommendation and note we expect the buyback to be more active this quarter after only modestly commencing last quarter.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is $167, up 1% today and down 43% over 12 months. 

Pro Medicus shares began rebounding in February, ahead of the broader sector, but it’s been a topsy-turvy recovery.

The ASX 200 healthcare share almost doubled in value between late February and early July, then fell on profit-taking.

The Pro Medicus share price is up 5% since the broader sector pivoted on 3 June.

Morgans has an accumulate rating with a 12-month target of $230 on Pro Medicus shares.

This implies a potential 38% upside ahead.

The broker said: 

FY26 confirms PME is executing at an even higher level than the market gave it credit for.

EBIT margin of 74.9% and constant currency EBIT growth of 30.6% both beat expectations comfortably, with the FX-driven softness in headline revenue a currency story, not a demand or execution one.

Momentum remains broad-based, implementations are ahead of schedule, renewals are a clean sweep, and the pipeline is opening up in new segments rather than just deepening in existing ones.

Looking ahead, FY27 is shaping as a genuine standout year.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is $3.66, down 2.5% today.

Over the past month, this ASX 200 gold share has fallen 0.4%.

Morgans has a buy rating on Ramelius Resources shares with a $4.74 target.

This implies a potential 30% upside ahead.

The broker said:

RMS is expected to release FY27 guidance and an updated outlook to FY30 in Sep-26, following execution of the EPC contract for the Mt Magnet mill expansion, providing greater clarity on project costs and timing. 

The post 3 ASX 200 shares tipped by experts to jump 30% to 62% appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday

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 Life360. 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 Life360. 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.

The CSL Ltd (ASX: CSL) share price has staged an extraordinary recovery over the past few months.

After dropping to around $90 in June, the healthcare giant is trading at around $171.57 on Tuesday.

That is a huge change in a short period. But with the CSL share price still comfortably short of its highs, could there be another leg higher?

The easy gains may be behind us

When the CSL share price was trading around $90, I thought the valuation looked exceptionally cheap for a company with its global healthcare operations and long-term growth potential.

Investors were pricing in plenty of disappointment following weaker guidance, restructuring, and uncertainty around the earnings outlook.

Since then, the CSL share price has risen by more than 90%.

At $171.57, I certainly would not describe the stock as dirt cheap anymore.

According to consensus estimates, CSL is expected to generate earnings per share of $9.01 in FY27, rising to $9.51 in FY28 and $10.10 in FY29.

That means CSL shares are currently trading on a PE ratio of around 19 times forecast FY27 earnings.

I think that still represents decent value for money, but the investment case has changed.

From here, I expect CSL’s earnings growth to become much more important for the market than simply recovering from an unusually depressed valuation.

What would a $200 CSL share price mean?

A move from $171.57 to $200 would represent further upside of around 17%.

I do not think that looks unrealistic. At $200, CSL would trade at roughly 22 times forecast FY27 earnings.

Looking further ahead, that falls to around 20 times the FY29 earnings estimate.

For a global healthcare company with strong positions in plasma therapies and other specialised treatments, I think that valuation could be justified if CSL delivers on the earnings recovery currently expected.

What could push it higher?

CSL Behring remains particularly important to the outlook.

The business has opportunities to grow demand for its immunoglobulin and albumin therapies while improving profitability as plasma collection becomes more efficient.

Margin recovery would be encouraging because it could allow revenue growth to translate into stronger earnings growth.

There are also still challenges elsewhere in the group, including pressure within CSL Vifor. But if earnings rise towards the current FY28 and FY29 forecasts, I think investors could become increasingly comfortable paying a higher price for the shares.

Foolish takeaway

I think the CSL share price could reach $200, although the path looks quite different from the recovery out of June’s lows.

At $171.57, the shares are no longer obviously cheap. They are trading at around 19 times forecast FY27 earnings after almost doubling in value.

For the CSL share price to move another 17% higher, I think the company will need to show that its earnings recovery is genuinely taking hold.

If it can do that, $200 does not look like an unreasonable valuation to me.

The post Is the CSL share price heading to $200? appeared first on The Motley Fool Australia.

More reading

• CSL shares have surged over 25%. Do brokers see more upside?
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• What Warren Buffett can teach Australians about superannuation
• Higher or lower: Where are CSL shares going next?
• ASX healthcare shares are 39% higher since June. Are you missing out?

Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.5% to 8,702.6 points on Tuesday.

Here are some new ratings from the experts this week.

Echo IQ Ltd (ASX: EIQ)

The Echo IQ share price is steady at 49 cents today, and up 73% over 12 months. 

Morgans has a buy rating on this ASX tech share with a 12-month price target of $1.10.

The broker said: 

EIQ has received a Not Substantially Equivalent (NSE) determination on its initial EchoSolv HF 510(k), despite an extensively validated dataset generated in line with FDA guidance. The device cannot be marketed under this application as submitted, pushing back the biggest near-term catalyst and revenue driver. Decision is a setback, but the timing points to a fixable problem.

The determination landed day 264 of the FDA’s 270-day clock, leaving the agency no scope to seek further information and forcing a decision on what it had. Management confirms a single outstanding statistical point, not a safety or clinical issue, and says the letter invites resubmission.

We read this as a file closed on expiry rather than a technology rejected, and the 510(k) route stays open.

In any case, the regulatory and timing risks have increased, reflected in a valuation cut to A$1.10.

Warrants the negative market reaction but ultimately view the validity of the tool as intact, this reads as a setback in how the data was presented and assessed, not a failure of the underlying technology itself.

James Hardie Industries PLC (ASX: JHX)

The James Hardie share price is $39.58, up 1.2% today and up 31% over 12 months. 

James Bills from Shaw and Partners has a hold rating on this ASX 200 materials share. 

He said (courtesy The Bull): 

James Hardie remains a global leader in fibre cement building products and continues to benefit from strong brand recognition and market share gains, particularly in North America.

The company has delivered solid long term earnings growth through product innovation and operational efficiency.

However, housing activity remains sensitive to interest rate movements and broader economic conditions, creating some uncertainty around demand in the near term. Given its strong fundamentals and balanced valuation, a hold recommendation remains appropriate.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is $39, up 0.6% today and up 39% over 12 months. 

Bills has a sell rating on this ASX 200 consumer staples share. 

He explained: 

The supermarket group has experienced a strong recovery in the past year, with the share price recently trading near the upper end of its historical range.

While the company remains high quality with a leading position in Australian food retailing, much of the recent improvement appears to be reflected in the WOW share price.

Earnings growth is expected to remain relatively steady rather than exceptional, limiting scope for further share price appreciation from current levels.

Following the recent rally, investors may consider taking profits before re-allocating capital to opportunities with stronger growth potential and a more attractive risk-reward profile.

The post Buy, hold, sell: Echo IQ, James Hardie, Woolworths shares appeared first on The Motley Fool Australia.

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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 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.