Author: openjargon

Not every defence contract win makes the front page.

But the announcement that Ventia Services Group Ltd (ASX: VNT) had secured a $935 million contract with the Australian Defence Force deserved far more attention than it received.

The contract, which commenced this month, is one of the largest single government contracts the company has ever won.

This tells investors a great deal about where Ventia’s business is heading.

What the contract involves

Ventia has been appointed as the single industry partner to deliver clothing capability services to the Australian Defence Force, coordinating specialist Australian organisations to deliver clothing design and supply, warehousing, distribution, and clothing store services to Defence personnel.

The initial term runs for seven years, with options to extend for up to a further 13 years.

This means that the total potential contract duration extends to 20 years.

Ventia CEO Dean Banks said in the company’s announcement:

We are proud to partner with Defence on this important contract. This award reflects our deep understanding of Defence requirements and our proven ability to deliver integrated solutions in complex environments. We look forward to working alongside our industry partners to deliver an enhanced clothing capability and contemporary customer experience for Defence personnel.

Through this contract, Ventia is the accountable prime contractor.

For the company, this carries both higher responsibility and, in most government contracting frameworks, higher margin potential.

What matters beyond the headline number

The $935 million contract is significant in isolation, but it becomes even more compelling when viewed in the context of Ventia’s broader contract pipeline.

Ventia already carries a record work-in-hand position of $22.1 billion, up 14% year-on-year, with an 82% renewal rate across its FY2025 contract book.

In February 2026, the company also secured a one-year, $107 million extension to its Defence Maintenance Contract with the Department of Defence, effective from December 2028.

Ventia is therefore deepening its existing relationship with its largest and most valuable customer, an encouraging sign for investors.

Australia’s defence budget is expanding under the AUKUS agreement, with the federal government committing to reach 2.4% of GDP in defence spending within a decade.

For a company that already services the ADF across maintenance, clothing, and logistics, that trajectory creates a tailwind that should support contract growth for years.

The share price and broker view

The market has appreciated the company’s contract pipeline and earnings visibility.

However, at current levels, the stock does not look obviously cheap.

Ord Minnett carries an accumulate rating on Ventia with a price target of $6.10, while UBS holds a buy recommendation with a price target of $6.23.

Comparing to current price levels, the company may be trading at fair value already.

Foolish takeaway

Ventia, with remarkable consistency, has won and retained large, long-term government contracts, delivering them reliably, and returning capital to shareholders.

 For investors seeking a stable, growing business with strong earnings visibility and a direct link to Australia’s expanding defence budget, Ventia deserves serious consideration.

The post This ASX stock landed a $935 million Australian Defence Force contract. What does this mean for investors? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Ventia, Sigma, and Mineral Resources shares
• A long-term contract win is lifting this ASX 200 stock today
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• This ASX 200 stock just jumped 13% in a week. Here’s why
• Ventia Services secures $340m Victorian road maintenance contracts

Motley Fool contributor Mark Verhoeven 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.

Some ASX 200 shares rise because conditions are favourable. Others keep growing because the business itself becomes more valuable over time.

That second group is harder to find, but usually includes companies with strong market positions, sticky customer relationships, useful data, and the ability to reinvest through different cycles.

Two ASX 200 shares that appear to have those qualities are listed below.

CAR Group Ltd (ASX: CAR)

CAR Group is one ASX 200 share that has steadily become a much bigger business than many investors may realise.

It remains best known locally for carsales.com.au, but the company now operates across several major international vehicle markets. Its platforms span Australia, Brazil, South Korea, the United States, and Chile, giving it exposure to a large and underpenetrated global opportunity.

The attraction of this model is that vehicle marketplaces can become stronger with scale. Buyers want choice, sellers want access to buyers, and dealers want tools that help them win business more efficiently. Once that ecosystem is in place, it can be difficult for rivals to replicate.

CAR Group is also moving beyond simple listings. It is adding payments, finance, inspections, dealer products, media, and artificial intelligence (AI)-driven tools that can make the buying and selling process easier.

This is an important development. The company is using its data and marketplace position to create a more useful experience for consumers and dealers. Voice-controlled search, AI companions, and smarter dealer tools all point to a platform that is becoming more intelligent, not just larger.

Vehicle markets will always have cyclical elements, and valuation matters after a strong run. But this ASX share has the type of global marketplace economics and product depth that could support growth for many years.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is another ASX 200 share that looks well placed for the long term.

It provides enterprise software for organisations such as councils, universities, government agencies, and large enterprises. These customers need reliable systems to manage critical functions, which makes the software deeply embedded once adopted.

That customer stickiness is a major strength. Replacing core enterprise software can be expensive, disruptive, and risky. This gives TechnologyOne a strong foundation of recurring revenue.

The interesting part is how the company is positioning itself for the next stage of enterprise software.

Some software businesses are facing questions about whether AI will reduce the need for traditional seat-based products. TechnologyOne appears to be taking a different path.

Its SaaS+ model and AI products are designed to make its platform more valuable by helping customers simplify processes, improve productivity, and get better outcomes from their data. As a result, AI looks more like an accelerant than a threat.

TechnologyOne shares are rarely cheap. But high-quality software businesses with recurring revenue, defensive customers, and a clear AI strategy arguably deserve attention from long-term investors.

The post 2 excellent ASX 200 shares that look built for the next decade appeared first on The Motley Fool Australia.

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

For investors looking to add an ASX small-cap allocation to their portfolio, Environmental Group Ltd (ASX: EGL) is worth watching.

A new report from Bell Potter indicates it could be set to rise significantly over the next 12 months. 

Company overview 

The Environmental Group is an emerging Australian environmental engineering company with a focus in resources and waste sectors. 

EGL’s service proposition covers air emissions control, water pollution and recycling plant solutions across four business segments: 

• Baltec
• EGL Energy
• Total Air Pollution Control
• EGL Waste.

Its share price crashed a whopping 30% last week after the company advised that it now expects FY26 normalised EBITDA to be in the range of $8.5-$9.0m (BPe $13.2m), which compares to prior guidance of 15-20% growth ($12.7-$13.5m). 

At the mid-point this equates to a -21% decline from FY25. 

According to Bell Potter, the revised guidance reflects EGL Energy and Baltec disruptions. 

A $2.5m estimated FY26 EBITDA impact is expected in the Energy division driven by operational matters(through the implementation of the ERP), historical job balance clean-up and higher fleet diesel costs. Baltec is expected to see a $1.5m impact due to delayed deliveries, logistics disruption and slower Middle East tender awards. Clean Air and Waste continue to trade broadly in-line with management expectations.

Can this ASX small-cap rebound?

After falling significantly last week, the team at Bell Potter reduced their price target on this ASX small-cap. 

Additionally, it has adjusted its earnings per share forecast. 

EPS changes in the report reflect operating EBITDA revised in-line with updated guidance and flow on effects to FY27 and beyond: -52% FY26; -22% FY27; -11% FY28.

However the broker still sees upside for this ASX small-cap. 

Environmental Group shares closed last week at 14 cents per share. 

Bell Potter has retained its buy recommendation and updated its price target to 21 cents per share (previously 35 cents per share). 

This indicates 47% upside from current levels. 

EGL is confident it has identified and addressed its ERP issues. The company will now manually check invoices to mitigate any risks moving forward. EGL Energy is still seeing strong demand and revenue growth however Baltec is navigating through a tough operating environment owing to the Middle East conflict. We retain our Buy recommendation driven by the growing recurring revenue stream and now undemanding valuation.

The post This ASX small-cap could be set to rise 47% appeared first on The Motley Fool Australia.

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• What is Bell Potter’s view on this ASX small-cap following a clinical trial update?

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

2026 has gone from bad to worse for Webjet Group (ASX: WJL) shares. 

Last week, Webjet shares tumbled another 10%, taking its year to date drop to almost 50%. 

It’s been tough sledding for ASX travel shares this year.

Sentiment has been negatively affected by global conflict, rising interest rates and cost of living pressures. 

As many investors are aware, Webjet provides online travel agency services. Its brands include Webjet OTA, Airport Rentals, Motorhome Republic, and Trip Ninja.

Why are investors exiting positions in Webjet shares?

Webjet shares endured a 10% fall last week largely on the back of its FY26 result.

The company reported: 

• A 1% increase in revenue to $136.4 million, while statutory net profit after tax (NPAT) increased 85% to $3.7 million.
• Underlying EBITDA fell 20% to $28.1 million, and underlying NPAT dropped 24% to $13.6 million.
• Bookings fell 7% to 1.4 million, while total transaction value declined 3% to $1.46 billion.

Perhaps the biggest disappointment of all was Webjet’s update on its agreement with Virgin Australia.

Webjet said Virgin Australia will significantly reduce commission payments and commercial arrangements from July 2026, which would have cut FY26 revenue by about $3 million if applied for the full year. 

While the financial impact is relatively modest, investors may see it as another challenge for Webjet as it faces softer travel demand, airfare pressure, weak consumer confidence, and a tougher FY27 outlook.

What are experts saying?

Following the result, brokers downgraded their views on Webjet shares. 

Morgans said the FY26 result was weak but in line with guidance. 

It pointed out that FY26 was impacted by subdued trading conditions and material investment in the business. 

FY27 is going to be a particularly challenging year for WJL given the Middle East conflict, cost of living pressures, Virgin Australia materially reducing its commission and overrides and the RBA surcharging regulation changes. 

We have made significant revisions to our already well below consensus forecasts. In the absence of corporate activity, shareholders will need to be patient given the current challenges WJL needs to overcome while investing in its business for longer term success. We retain a Hold rating with a new price target of A$0.40.

Similarly, Jefferies cut its price target on Webjet shares by 38% to 40 cents per share.

After closing last week at 45 cents per share, it appears brokers expect more downside for Webjet shares in the short term. 

The post Are Webjet shares a buy after crashing 10% last week? appeared first on The Motley Fool Australia.

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• 5 ASX retail shares whose 12-month price targets just got slashed
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• Buy, hold, sell: James Hardie, TechnologyOne, and Webjet shares
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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Lovisa Holdings Ltd (ASX: LOV) share price has seen a significant decline within the last year, dropping by 48% since August 2025, as the below chart of the ASX dividend share shows.

Lovisa sells affordable jewellery across numerous markets through its global network of stores. At the end of the FY26 half-year result, it had 1,089 stores.

There are a number of reasons why the ASX dividend share is a compelling buy for both passive income and total returns.

Growing dividend

Every income investor probably wants to know what the dividend yield is for this business. I’ll get to that soon, but I believe it’s more important to see that the business is growing its dividend.

To me, dividend growth suggests the business isn’t likely to give investors a passive income cut – those dividend payouts could be essential for someone’s personal finances. A rising (sustainable) dividend also suggests that the company’s earnings are headed in the right direction.

In the FY26 half-year result, Lovisa’s board of directors decided to increase the interim dividend per share by 6% to 53 cents. In 2023, the interim dividend was 38 cents per share and in 2019 it was 18 cents per share.

I’m not sure how big the dividend will be in a few years’ time, but the forecast on CMC Invest suggests the business could pay an annual dividend per share of $1.12 in FY28. At the current Lovisa share price, that translates into a dividend yield of 6.1%, including franking credits.

Global expansion

One of the main reasons to like Lovisa so much is that it’s delivering rapid growth of its global store network in numerous markets. Some of the places it’s in include Australia, New Zealand, Malaysia, China, Vietnam, South Africa, the UK, the USA, France, Germany, Spain, and plenty more.

Store expansion is a key driver of the ASX dividend share’s financials. The HY26 store count reached 1,089, up 6.3% half over half and up 15.5% year over year. This helped Lovisa revenue rise 22.7% year over year and net profit increase 21.5%.

As long as the company’s comparable store sales growth remains positive over time, I believe its global expansion will turn out successfully. In HY26, comparable store sales growth was 2.2.%, showing the benefit of scaling up.

Rising margins

Some businesses don’t see much growth in their margins as they expand.

Lovisa is investing heavily in growth, so I’m not expecting every single result to have a higher profit margin.

The ASX dividend share reported in the HY26 result a gross profit margin of 82.9%, which has increased in each half-year result going back to FY21 when it was 77.2%. This is a strong tailwind for operating profit (EBIT) and net profit margin improvements.

By FY30, I think the business will be significantly more profitable and pay a larger dividend. At this lower price, I think it’s a great price to buy.

The post 1 ASX dividend share down 48% I’d buy right now appeared first on The Motley Fool Australia.

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

If you are hunting outsized returns, then it could be worth checking out the ASX 200 shares in this article.

That’s because last week analysts put buy ratings on them with price targets offering major upside potential. Here’s what they are recommending:

Megaport Ltd (ASX: MP1)

The team at Morgans has responded positively to news that Megaport’s Latitude business has won a series of large contracts.

The broker has retained its buy rating on the ASX 200 share with an improved price target of $15.50. Based on its current share price, this implies potential upside of almost 20% for investors over the next 12 months.

Commenting on its buy recommendation, Morgans said:

MP1 has announced a series of large contract wins which are financially and strategically significant. MP1 will use its globally unique communications platform to connect servers and GPU clusters in numerous DCs across the US. DC power constraints are a growing issue and MP1 was uniquely able to stitch together multiple sites to provide consolidated inference solutions. We update our forecasts to reflect recent contract wins, lifting our TP to $15.50 per share. We retain a BUY recommendation.

Temple & Webster Group Ltd (ASX: TPW)

Over at Bell Potter, its analysts remain positive on this online furniture retailer.

Last week, the broker retained its buy rating on Temple & Webster’s shares with a reduced price target of $7.00. Based on its current share price, this implies potential upside of almost 40% for investors between now and this time next year.

Bell Potter highlights that its shares are back down to levels not seen since 2022. However, this time around its valuation is significantly more attractive. As a result, it thinks it could be a good long-term pick for patient investors. It said:

With the continuous decline in the share price, we have seen the name back at the levels of the last profit optimisation cycle in CY22 however trading at a more attractive EV/Sales multiple (0.8x in May-26 vs 1.4x in Aug-22, on BPe).

While our estimates continue to factor in some downside risk to current company expectations/consensus, we see long term valuation support in a high-quality e-commerce retailer with range, pricing/scale advantages, AI/data capability backed by a strong balance sheet (~$160m cash, BPe) to take up inorganic growth opportunities. Other catalysts remain as potential for removal from the S&P/ASX 200 Index at the Jun rebalance and the leadership transition in Jul.

The post These ASX 200 shares could rise 20% to 40% appeared first on The Motley Fool Australia.

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

Doubling your money in a year is the kind of result most investors only dream about.

Yet three ASX-listed companies have done exactly that over the past twelve months, each driven by powerful tailwinds that may continue providing.

The question for investors today is whether the best is behind them or whether three is still room for growth.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Few ASX stocks have had a more dramatic twelve months than Electro Optic Systems Holdings.

The defence and space technology company has risen more than 450% over the past year, transforming from a little-known ASX all-ords stock into one of the most talked-about names in Australian defence investing.

EOS develops and manufactures remote weapon systems, high energy laser weapons, and counter-drone solutions for governments and defence forces around the world.

The company signed $424 million worth of contracts during FY2025, compared to just $70 million in FY2024, including a $125 million high energy laser weapon export contract that was the world’s first of its kind.

In Q1 2026, EOS reported cash receipts of $72.6 million, up $49.9 million on the same period a year earlier.

The company’s combined order book now sits at $726 million, and its pending acquisition of the MARSS group business adds a further dimension to its counter-drone capability.

Bell Potter retains a buy rating on the stock, stating:

EOS is positioned as a market leader in C-UAS solutions, particularly in directed energy, and is leveraged to increasing budget allocations to C-UAS technologies. Through both its kinetic and directed energy solutions, EOS has a long runway for growth.

Cobram Estate Olives Ltd (ASX: CBO)

Cobram Estate Olives is not the kind of stock you expect to find in a list of the ASX’s biggest annual performers.

Yet the premium olive oil producer has risen more than 100% over the past twelve months, as a combination of record harvests, surging global olive oil prices, and a transformative US acquisition reshaped the investment case.

Cobram owns the Cobram Estate and Red Island brands, which together account for approximately half of the olive oil market share in Australian supermarkets by value.

The company is also Australia’s largest vertically integrated olive farmer, operating extensive groves and mills in both Victoria and California.

In December 2025, Cobram shares surged 17% in a single session after Ord Minnett upgraded its recommendation to buy following the announced acquisition of California Olive Ranch, describing the deal as 9% EPS accretive from FY2027 and a major step toward scaling the company’s US business.

The acquisition expands Cobram’s US footprint significantly, with a 27% increase in olive oil supply and a combined brand portfolio that positions it as one of the largest premium olive oil companies in the United States.

Cobram’s earnings have grown at an average annual rate of 30.6% over the past five years, well ahead of the broader food sector, and revenue has grown at an average of 14.5% per year over the same period.

The FY2026 full-year result is due in August 2026, and management has guided that the second half will be materially positive, driven by the recognition of fair value adjustments from the Australian harvest.

Weebit Nano Ltd (ASX: WBT)

Weebit Nano is the most speculative of the three stocks in this article, but also the one with arguably the most transformative potential.

The Adelaide-based semiconductor company has risen more than 310% over the past twelve months, hitting its highest share price since 2023 this week as a series of major commercial milestones accelerated investor interest.

Weebit develops and licenses Resistive Random-Access Memory technology, known as ReRAM, a next-generation semiconductor memory solution that is faster, more energy efficient, and more reliable than traditional Flash memory.

The technology addresses a growing bottleneck in AI, IoT, automotive, and industrial applications where traditional memory cannot keep pace with processing demands.

In May 2026, two of Weebit’s product customers successfully taped out chip designs using its ReRAM module, meaning those designs have been released to manufacturing.

One customer has already produced a functional prototype.

This represents one of three key 2026 targets Weebit set at its 2025 Annual General Meeting, and its achievement has materially de-risked the commercialisation pathway.

The company completed a strongly supported $102 million capital raise in May, with institutional and retail investors backing the business at $4.05 per share, a strong signal of market confidence in the technology roadmap.

Weebit’s licensing model, which generates high-margin royalty revenue without the overhead of physical manufacturing, means that as more chip designers adopt its ReRAM module, the revenue potential scales rapidly with limited incremental cost.

Foolish takeaway

EOS, Cobram Estate, and Weebit Nano have each doubled or more from very different starting points and for very different reasons.

EOS rides the global defence spending wave.

Cobram capitalises on the shift toward premium olive oil consumption and expanding US scale.

Weebit sits at the frontier of next-generation semiconductor memory at precisely the moment AI is creating insatiable demand for better, faster, and more efficient memory solutions.

All three carry meaningful risks, and none is suitable for investors who cannot tolerate volatility.

But for those with a long-time horizon and an appetite for high-conviction ideas, all three deserve serious attention.

The post 3 ASX shares that have doubled in the last year and could keep climbing appeared first on The Motley Fool Australia.

More reading

• 7 ASX shares with strengthened buy ratings this week
• Are these ASX shares a buy, hold or sell after jumping 8% or more?
• Up 300% in a year, this ASX tech stock just hit its highest level since 2023
• Here’s why this ASX defence stock is charging higher today
• Why EOS, Newmont, Webjet, and WIA Gold shares are tumbling today

Motley Fool contributor Mark Verhoeven 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 Electro Optic Systems. 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.

When I think about what type of ASX shares I want to own, I’m drawn to ones I could own for the long-term.

While the recently announced tax changes are not ideal for share investors, capital gains tax changes may not necessarily have a major negative impact if we don’t sell any investments on a short-term holding basis, and instead allow the inflation indexation to become meaningful.

Let’s dive into why I view the two ASX share investments below as appealing options for an ultra-long-term holding.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is one of the largest funeral providers in Australia and New Zealand. It also has 41 cremation facilities and nine cemeteries. The business can deliver long-term revenue growth thanks to three key tailwinds.

Firstly, Australia’s long-term ageing demographics are, morbidly, leading to increasing demand for the business and industry as a whole.

According to Propel, death volumes are expected to rise by an average of 2.9% per year between 2026 to 2035 and then 2.4% per annum from 2036 to 2045. This can help the company’s revenue for the next two decades.

Another tailwind for revenue is rising funeral costs. While this isn’t likely to help profit rocket higher, it can help offset rising costs over time. Since FY15, the average revenue per funeral has increased at a compound annual growth rate (CAGR) of around 2.8%.

The third way the company is expanding its market share is through acquisitions. In the first-half of FY26, it made two acquisitions that come with a combined revenue of $4 million across six locations.

Over time, I expect the ASX share’s profit margins to rise thanks to its larger scale.

iShares Global 100 ETF (ASX: IOO)

The other investment I want to tell you about is this exchange-traded fund (ETF), which invests in 100 of the largest global businesses. These are multinational, blue-chip companies that are very important to the global share market.

They can come from whichever country they’re listed in – it’s not a market-specific ETF. Countries with an allocation of more than 1% of the fund include the US (80.1%), the UK (4.2%), Switzerland (3%), Germany (2.6%), France (2.2%), South Korea (2%), Japan (1.8%) and the Netherlands (1.6%).

Unsurprisingly, some of the largest positions include Nvidia, Apple, Microsoft, Amazon.com, Alphabet and Broadcom.

The 100 largest businesses in the world are likely to become more profitable as time goes on thanks to their scale benefits and market power, so I think this is an attractive group of businesses to own. Some businesses in the fund may change over time as new names rise and older names fade. This isn’t an ASX share exactly, but it is listed on the ASX so that we can buy exposure to shares.

Past performance is not a guarantee of future performance, but the IOO ETF has returned an average of 17.4% per year over the five years to April 2026. I believe the global growth of the companies inside the portfolio are very compelling for further long-term returns.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Propel Funeral Partners. 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.

It was another busy week for Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Bega Cheese Ltd (ASX: BGA)

According to a note out of Morgan Stanley, its analysts have initiated coverage on this diversified food company’s shares with an overweight rating and $6.70 price target. Morgan Stanley thinks that Bega Cheese shares are good value at current levels. The broker highlights the undemanding valuation multiple its shares trade on and the company’s positive earnings growth outlook. For example, it believes Bega Cheese could grow its earnings per share at an average of 20% per annum between FY 2025 and FY 2028. This is being supported by increased protein consumption, cost savings, and optimisations. The Bega Cheese share price ended the week at $5.39.

Paladin Energy Ltd (ASX: PDN)

A note out of Morgans reveals that its analysts have put a buy rating and $13.05 price target on this uranium producer’s shares. Morgans thinks the uranium industry’s outlook is very positive. It highlights that low prices over the past couple of decades means that supply of the chemical element is struggling to keep up with demand. So, with reactor demand increasing, Morgans is expecting there to be a structural supply deficit. This could be good news for uranium prices. It notes that China has a large number of reactors under construction and the US is targeting a significant increase in nuclear energy output over the next two decades. For Paladin Energy, given the quality of its assets, Morgans believes the company is well-placed to benefit from these trends. The Paladin Energy share price was fetching $11.07 at Friday’s close.

Regis Resources Ltd (ASX: RRL)

Analysts at Macquarie have retained their outperform rating and $9.50 price target on this gold miner’s shares. According to the note, the broker is positive on the company’s plan to merge with fellow gold miner Vault Minerals Ltd (ASX: VAU). Macquarie believes the combination of the two miners has the potential to become the second-largest Australian gold miner with significant production capacity. And while the broker acknowledges that there will be no operational synergies, it points out that there will be tax benefits and a potentially lower cost of capital. The Regis Resources share price ended the week at $6.35.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

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Citigroup is an advertising partner of Motley Fool Money. 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.

There are plenty of ASX exchange traded funds (ETFs) that look attractive right now.

Some offer exposure to artificial intelligence. Others focus on cybersecurity, defence, dividends, or emerging markets.

But if I had to choose just one ETF to buy and hold for the next decade, I would keep things simple.

My pick would likely be the Vanguard MSCI Index International Shares ETF (ASX: VGS).

Why this ASX ETF stands out

This popular fund gives investors exposure to a large portfolio of international shares across developed markets.

That includes companies listed in the United States, Europe, Japan, Canada, and other major global economies. In one ASX trade, investors can access over one thousand businesses across many sectors.

The Australian share market is relatively concentrated. Banks and resources companies make up a large part of the local index, which can leave investors heavily exposed to a small number of sectors.

The Vanguard MSCI Index International Shares ETF helps solve that problem.

Its holdings include global leaders such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and NVIDIA (NASDAQ: NVDA), as well as companies across healthcare, consumer goods, financials, industrials, and communications.

A simple way to go global

The strength of this ASX ETF is that investors do not need to predict which country or sector will win over the next 10 years.

If US technology companies continue to dominate, this fund has exposure to them. If European healthcare or Japanese industrial companies perform well, the fund has exposure there too.

That broad reach makes it useful as a long-term holding.

It is also a much simpler approach than trying to buy individual overseas shares, manage currency conversions, or follow dozens of offshore companies.

Why I’d hold it for a decade

A 10-year holding period rewards patience and diversification.

There will almost certainly be market falls along the way. Some regions will disappoint. Some sectors will go through weak periods. But a fund like the Vanguard MSCI Index International Shares ETF spreads risk across a wide range of companies and economies.

But it is worth remembering that this does not make it a risk-free investment. Share markets can be volatile, and international shares will move with global conditions.

But for investors wanting a straightforward way to participate in global growth, this ASX ETF is hard to overlook.

It offers scale, diversification, global market exposure, and a simple structure. That combination is why, if I could buy only one ASX ETF for the next decade, it would be very high on my list.

The post If I could buy only one ASX ETF for the next 10 years, this could be it appeared first on The Motley Fool Australia.

More reading

• Could this ASX ETF be the easiest way to invest in AI?
• VGS vs IVV: Which ASX ETF is better?
• 5 things to watch on the ASX 200 on Thursday
• How to build a $150,000 ASX share portfolio from scratch
• 2 of the best ASX ETFs to buy and hold

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 positions in and has recommended Apple, Microsoft, and Nvidia. The Motley Fool Australia has recommended 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.