Author: openjargon

Westpac Banking Corp (ASX: WBC) shares peaked at an all-time high of $42.95 in mid February, and they’ve fluctuated ever since. 

Solid profits, dividend appeal, and cost-cutting efforts have helped push the share price higher at times. But Westpac has also suffered headwinds from ongoing global uncertainty, interest rate hikes, and inflation concerns.

After the peak, Westpac shares tumbled 9%, they then reversed and gained over 8% in the first 10 days of April. Since then, it looks like investor sentiment has turned again and the ASX bank stock has shed nearly all gains to the time of writing.

Despite broad share market uncertainty, and a rollercoaster share price, I still think there are compelling reasons for investors to add Westpac shares to their portfolio.

Here are three of them.

1. It’s a defensive ASX stock

Westpac, like many other ASX bank stocks, is considered a defensive stock because it can remain relatively stable, even when the economy slows down. The bank provides a broad range of consumer, business, and institutional banking and wealth management services like mortgages, loans, and savings accounts. Australians need these services on a daily basis regardless of what state the economy is in. What’s more, investors often rotate into defensive assets in volatile markets, which means Westpac is able to actually benefit from instability elsewhere in the index.

2. Solid earnings and good growth momentum

Because Westpac is a defensive asset which is able to create consistent revenue and predictable earnings, even in a downturn.Westpac posted its first-quarter results in February. The bank reported a 5% increase in unaudited statutory net profit and a 6% increase in net profit excluding notable items. Westpac CEO Anthony Miller said, “We are optimistic on the outlook for the economy and expect demand for both business and household credit to remain resilient.” The bank posed an update saying that geopolitical uncertainty and higher market volatility has begun to flow through to the bank’s earnings. Westpac said it expects a $75 million reduction to its NPAT in the first half of FY26. But, beyond that one-off cost, the bank confirmed that its underlying business update looks relatively steady.

3. Westpac shares pay a reliable dividend

Because of Westpac’s defensive nature and consistent earnings, it can pay an attractive dividend to its investors. Westpac typically pays dividends twice per year. The bank most recently paid a fully franked final dividend of 77 cents per share to investors in December. For FY25, the bank paid a total of $1.54 per share, which equates to a dividend yield of 3.85% at the time of writing. This is forecast to increase to $1.605 per share in FY26, and again to $1.64 per share in FY27.

The post 3 reasons to buy Westpac shares today appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares tipped to tumble 10% (or more) in the next 12 months
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• In the midst of economic turmoil, what does Morgan Stanley say the ASX banks are worth?
• Forget Westpac, this ASX financials share could have 30%+ upside
• ANZ, NAB, Westpac, and CBA shares: Analysts rate 3 to sell, and 1 to buy

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 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.

There is a moment that tends to arrive somewhere in your early 50s. 

Retirement stops feeling abstract and starts feeling real.

At 50, you are no longer a young investor with endless runway. But you are also not out of time. You are in the middle ground: close enough to see the finish line, but still with meaningful time to shape how you get there.

So the question is worth asking directly: if you are a typical 50-year-old Australian, is your super balance enough?

What does the average 50 year-old have in super?

According to data from the Association of Superannuation Funds of Australia (ASFA) and the Australian Bureau of Statistics, Australians in their early 50s typically have super balances ranging from about $180,000 to $230,000 for women and $250,000 to $300,000 for men, depending on the source and exact age bracket.

For the sake of simplicity, let us use a rough midpoint of $250,000 for a single person in their early 50s.

That is a meaningful amount of money. But it may still be well short of what is needed for a comfortable retirement.

What does a comfortable retirement cost?

ASFA defines a comfortable retirement as one that supports a good standard of living. That includes regular leisure activities, a reasonable car, private health insurance, occasional domestic travel, and the ability to handle unexpected home repairs without serious stress.

To fund that lifestyle, ASFA estimates a single person needs about $54,840 per year, while a couple needs around $77,375 combined. To support that level of spending through retirement, the suggested lump sum is roughly $630,000 for singles and $730,000 for couples.

Those figures assume you own your home outright and become eligible for a partial Age Pension from age 67.

The gap is meaningful, but not hopeless

If you have around $250,000 in super at age 50, that leaves a gap of roughly $380,000 to reach the benchmark for a comfortable retirement as a single.

That is significant. But it is not a disaster.

You may still have 15 to 17 years of working life ahead of you. Employer contributions should continue. Investment returns still have time to compound. And the decisions you make over the next decade can materially change the outcome.

The real issue is not simply being below the benchmark. It is the risk of arriving at retirement with only the minimum and no buffer.

Why aiming for the benchmark alone can be risky

Retirement benchmarks are useful, but they should be viewed as a floor, not a ceiling.

A single person retiring with exactly $630,000 may have enough on paper. But that assumes investment returns cooperate, inflation behaves, healthcare costs stay manageable, and the Age Pension remains accessible and supportive.

Life rarely lines up that neatly.

That is why there is value in building beyond the benchmark where possible. A balance of $700,000 or $750,000 may not transform your lifestyle, but it can create breathing room when markets disappoint or unexpected costs arise.

Think of it as a margin of safety. The people who retire with the most confidence are often not those who hit the number exactly. They are the ones who gave themselves some room for error.

Your 50s can be your strongest decade for super growth

This is the part many people overlook: your 50s can be one of the most powerful decades for building superannuation wealth.

Income is often near its peak. The mortgage may be shrinking or gone. And your balance is finally large enough for compounding to become meaningful in dollar terms. A 7% return on $250,000 adds $17,500 in a year before any new contributions are made.

That combination matters.

The levers that can still make a difference

At 50, there are still several meaningful ways to improve your outcome.

Concessional contributions remain one of the most tax-effective tools available. The annual cap is $30,000. If your balance is under $500,000 and you have unused cap amounts from previous years, the carry-forward rules may allow you to contribute more.

Investment allocation also matters. Many people become more conservative as retirement approaches, sometimes too early. At 50, you may still have more than a decade before needing to draw on your super, so reviewing whether your allocation still supports long-term growth can be worthwhile.

Fees are quieter, but still important. Even a small difference in annual fees can compound into tens of thousands of dollars over time.

The takeaway is simple. Having less than the retirement benchmark at 50 is not a reason to panic, but it is a reason to act. The window for meaningful progress is still open, and the decisions made now may matter more than any that came before.

The post Could you comfortably retire with the average superannuation of a 50-year-old in 2026? appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares yielding 11% or even more
• 3 reasons to buy Westpac shares today
• $5,000 invested in Droneshield shares 5 years ago is now worth…
• How to build a second income from ASX shares without taking big risks
• Wondering which ASX ETFs to buy? Try these top picks

Motley Fool contributor Leigh Gant 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.

Yesterday, Droneshield Ltd (ASX: DRO) shares closed 5.54% higher at $3.81 a piece.

Tuesday’s uptick means the shares are now 14% higher over the year-to-date and 218% higher than this time last year.

As an Australian defence technology company specialising in counter-drone systems and electronic warfare solutions, Droneshield is one of very few ASX shares which have actually benefitted from rising geopolitical volatility and an ongoing war between the US and Iran. 

In a conflict situation, drones are used for everything from surveillance to direct strikes. This creates a huge demand for counter-drone systems like the ones Droneshield specialises in. This is why governments are hiking their spend on defence, with a focus on anti-drone defence systems. 

And the demand isn’t expected to dwindle the minute the US and Iran reach a peace agreement either. While conflict boosts demand, Droneshield has also announced several new military contracts and orders recently, showing that this is likely a long-term shift in how nations defend themselves.

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

It’s interesting to look back at how quickly Droneshield shares have climbed in value over the past six or 12 months. But, what about those investors which invested cash into the stock several years ago and have sat on it ever since?

Droneshield shares first listed on the ASX in June 2016 at 20 cents per share after raising $7 million through an IPO. The stock closed its first day of trading at 30 cents per share.

Fast forward to April 2021 and Droneshield shares had dropped to around 18 cents per share, shedding around 40% of its value. The shares didn’t start gaining traction until early 2024.

While a 218% annual share price increase is impressive, those gains are eclipsed by Droneshield’s 2,016.67% increase over the past five years!

That means that $5,000 invested into Droneshield shares 12 months ago is now worth $15,875. But $5,000 invested into Droneshield shares five years ago is now worth an enormous $105,833.50.

Can the shares keep climbing higher?

Yes, but not at the same rate they have climbed over the past five years.

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

The average target price for DroneShield shares over the next 12 months is $4.50 a piece. At the time of writing, that implies an 18% upside ahead for investors. Some are more bullish and expect the shares to jump 31% to $5 in the next 12 months. 

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

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• Looking for another DroneShield? Check out this buy-rated ASX defence stock

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

The idea of earning a second income from ASX shares is appealing.

But for many investors, it also feels risky. Chasing high returns or speculative stocks can lead to volatility and sleepless nights.

The good news is that building a second income does not have to involve taking big risks. In fact, a more measured approach can often be more effective over the long term.

Start with the right goal

The first step is to be clear about what you are trying to achieve.

If the goal is income, then the focus should be on building a portfolio that generates reliable cash flow, not just capital gains.

This means thinking in terms of yield. For example, a portfolio with a 5% average dividend yield would require around $400,000 to generate $20,000 per year.

Once you understand the target, the path becomes much clearer.

Focus on reliable businesses

Not all dividends are equal. Companies that consistently generate strong cash flow and have a history of paying dividends are often better suited for income-focused portfolios.

These tend to include sectors like banking, telecommunications, infrastructure, and consumer staples. They may not always deliver the fastest growth, but they often provide more predictable income. Think Telstra Group Ltd (ASX: TLS) and Woolworths Group Ltd (ASX: WOW).

The key is reliability. A slightly lower yield from a stable ASX share is often better than a high yield that may not be sustainable.

Use diversification to reduce risk

One of the simplest ways to lower risk is diversification.

By spreading investments across different sectors and companies, you reduce the impact of any single underperformer.

This can be done through a mix of individual ASX shares or by using ETFs that focus on income-producing assets like the Vanguard Australian Shares High Yield ETF (ASX: VHY).

Diversification helps create a more stable income stream over time.

Reinvest before you rely on it

In the early stages, it can be tempting to start using dividend income straight away.

But reinvesting those payments can significantly accelerate progress.

By reinvesting dividends, you increase the size of your portfolio, which in turn increases future income. This compounding effect can make a meaningful difference over time.

Once the portfolio reaches a comfortable size, you can then begin to draw on the income.

Be patient and stay consistent

Building a second income is not something that happens overnight.

It requires regular contributions, a long-term mindset, and the discipline to stay invested through market cycles.

There will be periods where dividends fluctuate or markets become volatile. But over time, a portfolio built on quality and consistency can deliver reliable income.

A steady path to financial freedom

You do not need to take big risks to build a meaningful second income from ASX shares.

By focusing on quality businesses, reinvesting early, and staying consistent, it is possible to create a portfolio that delivers steady cash flow over time.

It may not be the fastest approach, but it is one that many investors find far more sustainable.

The post How to build a second income from ASX shares without taking big risks appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woolworths 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 positions in and has recommended Telstra Group and Woolworths Group. The Motley Fool Australia has recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Sometimes ASX exchange traded funds (ETFs) can make investing far more efficient.

Instead of building a portfolio company by company, a single ETF can provide exposure to entire industries or global leaders. The key is choosing funds that tap into areas with strong long-term demand.

Here are three ETFs that approach that challenge from very different angles.

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ASX ETF to consider is the BetaShares Global Cybersecurity ETF.

Cybersecurity sits behind almost every part of the modern economy. As more systems move online, protecting data and infrastructure becomes essential.

This bodes well for the fund’s holdings, which are leading the way in protecting us all online. This includes names such as Palo Alto Networks (NASDAQ: PANW), CrowdStrike (NASDAQ: CRWD), and Fortinet (NASDAQ: FTNT).

Palo Alto Networks stands out as a key player in this space. The company has evolved from traditional firewall solutions into a broader platform that secures cloud environments, networks, and endpoints.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Another ASX ETF for investors to consider this week is the BetaShares Nasdaq 100 ETF.

This fund provides exposure to some of the largest and most influential companies in the world, many of which are driving technological change.

Its holdings include tech giants such as Apple (NASDAQ: AAPL), NVIDIA (NASDAQ: NVDA), and Amazon (NASDAQ: AMZN).

Apple remains one of the most important companies in the index. Beyond hardware, it has built an ecosystem of services and software that continues to generate recurring revenue. Its scale, brand strength, and integration across devices give it a unique position in the global technology landscape.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

A third ASX ETF for investors to consider is the VanEck Video Gaming and Esports ETF.

Gaming has become one of the largest forms of entertainment globally, with growth driven by digital distribution, online play, and in-game monetisation.

This ETF provides investors with access to the leading players in the industry. This includes companies such as Tencent Holdings (SEHK: 700), Nintendo, and Take-Two Interactive (NASDAQ: TTWO).

Take-Two Interactive is a good example of how the industry is evolving. Known for major franchises like Grand Theft Auto, the company has increasingly focused on recurring revenue through online gameplay and content updates. This shift creates longer engagement cycles and more predictable earnings over time.

This fund was recently recommended by the team at VanEck.

The post Wondering which ASX ETFs to buy? Try these top picks appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, BetaShares Global Cybersecurity ETF, BetaShares Nasdaq 100 ETF, CrowdStrike, Fortinet, Nvidia, Take-Two Interactive Software, and Tencent and is short shares of Apple and BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Nintendo and Palo Alto Networks. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Apple, CrowdStrike, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a lot of options for investors on the ASX 200 index.

To narrow things down, let’s take a look at what Morgans is saying about three popular ASX 200 shares.

Does it rate them as buys, holds, or sells? Let’s find out:

Collins Foods Ltd (ASX: CKF)

Morgans is feeling positive about this KFC-focused quick service restaurant operator ahead of its upcoming results.

While it has trimmed its estimates to reflect a number of items, this is partially offset by a stronger than expected performance in the Australian market.

As a result, it has retained its buy rating with a slightly reduced price target of $12.50. It said:

We revise our CKF forecasts ahead of the FY26 result in June, trimming underlying NPAT to reflect deferred store openings, reset German acquired store economics, and a lower EU SSS assumption to better capture the Netherlands-skewed mix for FY26, partially offset by a marginal AU SSS upgrade on sustained KFC Australia momentum. We maintain our BUY recommendation and reduce our price target to $12.50 (from $12.70).

Netwealth Group Ltd (ASX: NWL)

This investment platform provider delivered a third-quarter update that was slightly ahead of expectations.

And with the new quarter starting strongly for financial markets, Morgans appears to believe it could build on this.

This has seen the broker put an accumulate rating and $29.00 price target on Netwealth’s shares. It commented:

NWL’s 3Q26 net-flows of $3.96bn came in modestly ahead of expectations, however market volatility during the period eroded this solid performance to see 3Q26 FUA ending the quarter flat QoQ at A$125.8bn, (vs. Consensus A$129.8bn). Despite ongoing volatility and uncertainty tied to a US/Middle East conflict and a potential resolution, market momentum has recovered from peak pessimism in the March Quarter, with the ASX All Ordinaries +5.6% month-to-date in April’26, which will have seen FUA growth momentum improve post quarter end.

Looking through this near-term volatility NWL remains on track deliver solid growth FY26F and well placed to capitalised on the long runway of opportunity ahead. We retain our ACCUMULATE rating, with a Price target of $29.00/sh.

Pro Medicus Ltd (ASX: PME)

Finally, after adjusting its model for Pro Medicus to reflect more achievable growth estimates, the broker continues to see a lot of value in its shares.

The broker has retained its buy rating on Pro Medicus shares with a reduced price target of $210.00. It commented:

In this note, we deploy a new PME model where we have deliberately set a lower bar. Our remodelled estimates prioritise achievability over optimism, staging implementation revenue conservatively and mark FX to spot. We see this as the right framework for a stock where sentiment has been fragile.

On the business operations front, the story remains untarnished. Contract newsflow since February has been exceptional: ~$100m in wins and renewals, all at higher pricing, with cardiology upsell gaining traction. The demand story is not in question. We re-emphasise our positive long-term conviction on the name although lower our valuation to reflect current but potentially fleeting headwinds. Our target price is reduced to A$210 p/s and we retain our Buy recommendation.

The post Buy, hold, sell: Collins Foods, Netwealth, and Pro Medicus shares appeared first on The Motley Fool Australia.

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

If you are lucky enough to have $3,000 to invest in the share market, then it could be worth considering ASX exchange traded funds (ETFs).

ETFs allow investors to spread their capital across different regions, sectors, and investment styles in a simple and efficient way.

But which ones could be top picks for investors in April and May? Let’s take a look at three ASX ETFs that were recently recommended by the team at BetaShares:

BetaShares Global Cash Flow Kings ETF (ASX: CFLO)

The first ASX ETF to consider is the BetaShares Global Cash Flow Kings ETF.

This fund focuses on companies generating strong and consistent free cash flow. That emphasis can highlight businesses with proven models and the ability to reinvest, pay dividends, or reduce debt.

Its holdings include ASML Holding (NASDAQ: ASML), Visa (NYSE: V), and Palantir Technologies (NASDAQ: PLTR).

Palantir is a notable inclusion. The company specialises in data analytics and artificial intelligence platforms used by governments and enterprises. Its software is designed to handle complex datasets and support decision-making at scale. As AI adoption increases, demand for these types of tools is expected to grow.

BetaShares MSCI Emerging Markets Complex ETF (ASX: BEMG)

Another ASX ETF to consider is the BetaShares MSCI Emerging Markets Complex ETF.

This fund provides broad exposure to emerging markets, which are being shaped by powerful long-term trends such as a rising middle class, urbanisation, and accelerating digital transformation.

The BetaShares MSCI Emerging Markets Complex ETF gives investors access to more than 1,000 companies across over 20 countries, including regions in Asia, Latin America, Eastern Europe, and Africa. These are markets that can be difficult and costly to access directly.

Its holdings include Taiwan Semiconductor Manufacturing Company (NYSE: TSM), Alibaba Group (NYSE: BABA) and SK Hynix.

Alibaba is one of the most prominent technology platforms in emerging markets. The company operates across ecommerce, logistics, and cloud computing, and continues to invest in artificial intelligence through initiatives such as its Qwen large language models and AI Cloud services.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

A third ASX ETF to consider is BetaShares S&P/ASX Australian Technology ETF.

It provides exposure to Australia’s leading technology companies, many of which are expanding globally.

Its holdings include Pro Medicus Ltd (ASX: PME), WiseTech Global Ltd (ASX: WTC), and Xero Ltd (ASX: XRO).

Pro Medicus is a standout name in the portfolio. The company develops imaging software used by hospitals and healthcare providers worldwide. Its solutions are known for high performance and scalability, and the business has built a strong reputation in a specialised but growing market.

The post 3 ASX ETFs to invest $3,000 into in April and May appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Pro Medicus, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ASML, Palantir Technologies, Taiwan Semiconductor Manufacturing, Visa, WiseTech Global, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and Pro Medicus. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended ASML, Pro Medicus, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 Block and DroneShield and is short shares of DroneShield. The Motley Fool Australia has recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX stock Cleanaway Waste Management Ltd (ASX: CWY) is starting to catch investors’ attention again.

Shares in the waste management giant rose 3% to $2.385 during Tuesday afternoon trade, extending a recent recovery that has pulled the stock further away from its five-year lows.

While Cleanaway is still down around 8% year to date, lagging the S&P/ASX 200 Index (ASX: XJO), which is up roughly 2.5%, sentiment appears to be shifting.

So, what’s driving the interest in this ASX stock today?

Tighten cost, drive efficiency

The key catalyst is Cleanaway’s refreshed strategy, which is giving investors a clearer path to improved profitability. On Tuesday, the ASX stock unveiled its “Blueprint 2030 2.0” plan, focused on margin expansion, stronger cash flow, and more disciplined execution.

Management highlighted that underlying EBIT has already lifted 60% since FY22, suggesting the business has momentum heading into its next phase.

The updated strategy rests on three pillars: lifting customer value, optimising the branch network, and using data and digital tools to boost performance. In practice, that means targeting higher-value revenue, tightening costs, and investing in automation and analytics to drive efficiency.

Sales overhaul

One of the standout initiatives of the ASX stock is a major overhaul of its sales approach. Cleanaway is rolling out a centralised “One Sales Engine” model aimed at improving customer retention and increasing cross-selling opportunities.

At the same time, its ongoing digitisation program is targeting better fleet utilisation, real-time tracking, and enhanced safety outcomes.

There’s also a significant push in its hazardous waste division. Cleanaway is streamlining its site network while expanding into higher-margin technical services and decommissioning work. These areas are expected to see strong demand growth in the years ahead.

What next for the ASX stock?

Looking forward, management has set some ambitious targets. The company is targeting at least 260 basis points of margin expansion and 10% to 15% EPS growth in FY27 as cost cuts take hold. It’s also pushing to deliver steadier free cash flow through tighter capital allocation and better asset use.

Cleanaway is backing its integrated network and growing use of technology to strengthen its lead in sustainable waste. Especially in higher-value areas like hazardous waste.

Fluctuating fuel cost

Of course, challenges remain. The ASX stock is still navigating a volatile operating environment, including fluctuating fuel costs and broader economic uncertainty. Management is focused on tightening operational efficiency, optimising its fleet, and using procurement strategies to better manage costs.

For investors, the story is shifting from turnaround to execution. Cleanaway’s strategy has laid out a clearer roadmap for growth. And if it can deliver, the recent price recovery of the ASX stock may have further to run.

The post New strategy sparks rebound in this $5bn ASX stock – what’s next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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.

PYC Therapeutics Ltd (ASX: PYC) recently had some good news from one of its drug trials, which has boosted its share price.

But there’s plenty more upside to be had, according to the analyst team at Canaccord Genuity, which has a buy rating on the stock and a bullish price target, which we’ll get to shortly.

Encouraging progress

Firstly, let’s have a look at what was announced recently.

PYC said it is progressing an investigational drug candidate known as PYC-001, which “addresses the underlying cause of a blinding eye disease called Autosomal Dominant Optic Atrophy (ADOA)”.

The company announced on April 15 that the Safety Review Committee overseeing the Phase 1 Single Ascending Dose (SAD) study of PYC-001 had reviewed the data from the first four weeks of the trial and approved progression to a multiple dose study.

The company added:

PYC is now evaluating the safety and efficacy profile of repeat doses of PYC-001 in a global Multiple Ascending Dose (MAD) study of PYC-001 in patients with ADOA. The objective of this study is to establish clinical proof-of-concept prior to progression of the drug candidate into a global registrational trial directed towards supporting a New Drug Application for PYC-001 in ADOA. Safety and efficacy outcomes from this study will be presented throughout 2026 and 2027.

The company said ADOA affects one in every 35,000 people and there are currently no approved treatment options available.

Broad portfolio attractive

The Canaccord team said there was a lot to like about PYC; however, they were more focused on its potential kidney treatment.

They said in a research note to clients:

Following a large raise (A$600.5m, +400m shares), PYC is now sufficiently cashed up to progress its pipeline of RNA assets across its retinal, kidney and neuro indications. Like many, we are most intrigued by PYC’s kidney asset, due to: a) its elegant mechanism of action, b) orphan indication with a large population (~95k US eligible patients), and c) well-defined, potential accelerated approval pathway.

PYC in February announced that its polycystic kidney disease candidate had approval to escalate dosing in a third cohort of patients following approval from the safety review committee.

Canaccord said, “We are excited to see PYC’s program move into multiple ascending doses”.

We expect an update from the third cohort in the single ascending dose (SAD) portion in May, following which timelines related to the MAD will become clearer, and where the market should be focused.

Canaccord has a price target on PYC shares of $2.84 compared with the current price of $1.33.

PYC Therapeutics is currently valued at $1.28 billion.

The post This ASX biotech stock could more than double Canaccord Genuity says 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.