Author: openjargon

Shares in Lunnon Metals Ltd (ASX: LM8) have more than doubled in value over the past year, but at least one broker says the ASX gold stock could double again.

Lunnon is currently transitioning from developer to producer, having carried out its first ore blast just last week with delivery of ore to the run of mine (ROM) pad at its Lady Herial project now ongoing.

The company only discovered the Lady Herial deposit two years ago, marking a swift transition from discovery to imminent production.

More gold in the ground

Lunnon also upgraded the mineral resource estimate at the project last week, with a 49% increase in gold ounces to 54,200.

Managing director Edmund Ainscough said regarding the upgrade last week:

Lady Herial reporting more than 50,000 ounces in mineral resource is an outcome we could not have imagined back in early 2024 when we refocused our activities on gold. Having mining up and running and first ore already on the ROM, whilst the gold price tops $7,000 per ounce, is equally pleasing. The focus now switches to evaluating how the balance of the deposit not in the current mine plan can be profitably extracted, be that by a second stage of open pit mining, underground development, or possibly both. In parallel, as the ore purchase agreement model starts to deliver cash flow and with the heavy lifting of drilling at Lady Herial completed by the exploration team, they can pin their ears back and crank up the rigs to tackle our portfolio of high-ranking targets on the rest of our leases at St Ives.

The company said that free cash flow from Lady Herial was expected “in the near future”.

Lunnon metals added:

This, coupled with the company’s existing cash balance and recently secured small working capital facility, sees the company well placed to continue its aggressive program to evaluate all gold opportunities at Foster-Baker whilst enabling the company to consider new opportunities within the district.

ASX gold stock looking cheap

The team at Shaw and Partners has looked at the ASX gold stock’s update and said it bodes well for the company.

Shaw and Partners said the company is poised to generate “significant cash flow” which it can use to fund its “prolific Kambalda targets”.

Shaw and Partners added:

The current Stage 1 open pit is just the beginning, as the company is simultaneously exploring the potential for underground mining to follow the high-grade shoots as they extend deeper into the fresh rock. Lady Herial remains open down plunge, and technical studies are evaluating a second stage of mining through open-pit cut-backs or underground development to extract the remaining 30,100 ounces.

Shaw and Partners has a price target of 92 cents on Lunnon Metals shares, compared with 47 cents currently.

Lunnon Metals was valued at $102.7 million at the close of trade on Friday.

The post This newly-producing ASX gold company could almost double in value: Broker appeared first on The Motley Fool Australia.

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• This ASX 200 energy stock just jumped 13%. Here’s why
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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.

It’s been a rough start to the week’s trading thus far for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares this Monday. At the time of writing, the ASX 200 has dropped by 0.45%, dragging the index back under 9,160 points. It’s a stark contrast to last week’s string of new record highs. But let’s talk about one ASX 200 energy stock that is going the other way.

That ASX 200 energy stock is Karoon Energy Ltd (ASX: KAR). Karoon, an ASX oil and gas stock, is currently the best-performing share on the entire ASX 200 index. Karoon shares closed at $1.54 each last week. But this morning, those same shares opened at $1.80 and are currently up a hefty 13.1% at $1.75 each.

So what’s going on here?

Well, we know it’s not the earnings report that Karoon delivered last week. As we covered at the time, this report was not well-received by investors. Karoon shares tanked 3% on Thursday when the report was released, and dropped another 2.5% on Friday.

There’s another reason why Karoon shares are making up all of that ground and more this Monday.

Why are ASX 200 energy stocks like Karoon rocketing today?

As you’re probably aware of by now, the United States and Israel launched a dramatic full-scale attack on Iran over the weekend. This has resulted in a massive spike in the price of oil over the last 24 hours.

According to Trading Economics, West Texas Intermediate (WTI) crude futures jumped more than 10% this morning to over US$75 a barrel (an eight-month high) before dipping back down to about US$70 a barrel soon after. Brent crude followed a similar pattern. It rocketed up 12% to over US$80 a barrel at one point before easing to around US$75 a barrel at the time of writing.

Iran is a major oil producer in the Middle East. But a potential disruption of Iranian oil would not impact global supplies, given that the country was already under steep economic sanctions. What would impact supplies is the closure of the Straight of Hormuz. This, according to many reports, is already underway.

This geopolitically-significant Strait is located directly on Iran’s southern coast, and is a narrow chokepoint that facilitates the passage of around 20% of the world’s oil supply. Iran has long threatened to close this Straight if threatened, and, according to the BBC, seems to be attempting to do so right now. The report alleges that “at least three” oil takers have been attacked by the country’s armed forces in recent hours.

Whilst painful for much of the world’s economy, such a scenario would arguably benefit Karoon and other ASX 200 energy stocks. That seems to be what the market is anticipating today, anyway, judging by what has happened to the Karoon share price. As well as other ASX 200 energy stocks. This will be an illuminating corner of the markets to watch this week.

The post This ASX 200 energy stock just jumped 13%. Here’s why appeared first on The Motley Fool Australia.

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• What is Morgans saying about Ramsay Healthcare and Karoon Energy shares?
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• 5 things to watch on the ASX 200 on Tuesday

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

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Catalyst Metals Ltd (ASX: CYL)

According to a note out of Bell Potter, its analysts have retained their buy rating and $14.60 price target on this gold miner’s shares. This follows the release of its half-year result, which revealed revenue and EBITDA that were up strongly on the prior corresponding period and in line with expectations. In light of this, Bell Potter continues to view Catalyst Metals as an undervalued gold producer (versus peers) with a clear line of sight in expanding its gold production, mineral reserves, and lowering its cost base through the hub and spoke model. The Catalyst Metals share price is trading at $8.79 on Monday afternoon.

Light & Wonder Inc. (ASX: LNW)

A note out of Morgans reveals that its analysts have upgraded this gaming technology company’s shares to a buy rating with a trimmed price target of $195.00. This follows the release of full-year results that were in line with expectations. Morgans notes that this was driven by strong Gaming and iGaming performances, which offset continued softness in SciPlay. One highlight according to the broker was management’s articulation of AI as both an offensive growth lever and a defensive moat. Morgans views AI as enhancing Light & Wonder’s competitive edge rather than eroding it. As a result, it views the recent share price weakness as disconnected from the durability of its land-based earnings base. And with an undemanding valuation, it thinks investors should be snapping up shares today. The Light & Wonder share price is fetching $132.13 at the time of writing.

NextDC Ltd (ASX: NXT)

Analysts at Macquarie have retained their outperform rating on this data centre operator’s shares with a trimmed price target of $20.80. According to the note, the broker was pleased with NextDC’s half-year results and highlights that its forward order book demonstrates strong demand and execution. Looking ahead, the broker feels that the company has a significant growth opportunity, a strong market position, and optionality with regard to funding. The NextDC share price is trading at $13.45 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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

If I had $20,000 to invest in ASX growth shares this month, I’d continue to focus on businesses with strong structural tailwinds, scalable models, and the potential to grow earnings meaningfully over the next five to ten years.

Importantly, I’d also spread that $20,000 across multiple ideas rather than betting everything on a single stock.

Here’s where I would look.

Xero Ltd (ASX: XRO)

Xero remains one of the highest-quality software businesses on the ASX, in my opinion.

It operates in a large and still underpenetrated global market for small business accounting software. With strong recurring revenue, improving margins, and ongoing expansion into North America and other international markets, Xero has a long runway for growth.

Software businesses with subscription revenue and high switching costs can become powerful long-term compounders. While Xero’s share price can be volatile, I think its structural positioning makes it a compelling growth holding.

If I were allocating the $20,000 today, I’d consider placing around $7,000 into Xero shares as a core global growth exposure.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is another standout growth story.

The company provides imaging software to hospitals and healthcare networks, particularly in the United States. It has built a reputation for high-quality products, long-term contracts, and strong margins.

While some investors have expressed concerns about potential AI disruption, management has consistently indicated that it views AI as an opportunity to enhance its platform rather than a threat. Given its track record of winning large contracts and expanding its installed base, I think the long-term growth story remains intact.

I would consider allocating around $6,000 here, accepting short-term volatility in exchange for long-term upside potential.

Life360 Inc. (ASX: 360)

Life360 is another ASX growth share I’d look at buying.

It operates a global family safety app ecosystem with a large and growing user base. As the company scales, there is significant operating leverage potential, particularly as subscription revenue grows and new monetisation features are introduced.

This is not a low-risk stock, but for a growth-focused portion of a portfolio, I like its global opportunity and expanding product ecosystem.

For a $20,000 allocation, I might place around $4,000 into Life360, recognising that it could be more volatile than the other names.

Codan Ltd (ASX: CDA)

To round things out, I would add Codan.

Codan benefits from strong demand for its metal detection products, particularly when gold prices are elevated, and also has exposure to communications equipment and drone-related technology through its Domo Tactical Communications business.

It combines cyclical tailwinds with structural growth in security and defence-related markets. That mix gives it a slightly different growth profile compared to pure software names.

I would consider allocating the remaining $3,000 to this ASX growth share.

Why this mix of ASX growth shares works for me

This portfolio spreads $20,000 across four different growth themes: global software, healthcare technology, consumer app ecosystems, and industrial and defence-linked growth.

It avoids concentration in a single sector and balances higher-quality compounders with slightly more aggressive opportunities.

Growth investing always involves risk. Earnings can disappoint. Multiples can compress. Market sentiment can shift quickly.

But by focusing on businesses with scalable models, strong competitive positions, and long-term tailwinds, I think this type of portfolio gives a solid chance of outperforming over time.

The post Where to invest $20,000 in ASX growth shares this month appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Codan. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Xero. 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 and Xero. 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.

If you have a higher than average tolerance for risk, then it could be worth hearing what Morgans has to say about the small-cap ASX shares in this article.

Here’s why the broker currently rates them as buys:

Airtasker Ltd (ASX: ART)

Morgans was pleased with this small jobs marketplace provider’s performance in the first half of FY 2026. It notes that the company delivered double-digit revenue growth thanks to solid performances at home and overseas.

In response, the broker has retained its buy rating with a trimmed price target of 51 cents. It said:

It was a resilient 1H26 result for Airtasker, delivering ~13.5% group revenue growth to ~A$29m. Its established marketplaces saw EBITDA growth of ~11% to ~A$15m. Domestic metrics appear sound (e.g. uptick in booked tasks and brand salience), and we remain pleased with the momentum seen in ART’s offshore marketplace build-out (UK/US revenue +85% and 380% on the pcp respectively).

We make minor adjustments to our topline forecasts (details below), we also include the additional $5m cash marketing costs into our 2H numbers along with the recent capital raise. Our price target is lowered to A$0.51. Buy maintained.

Epiminder Ltd (ASX: EPI)

Another small-cap ASX share that has been given the thumbs up by Morgans is Epiminder.

Morgans notes that there were no surprises with its half-year results, with everything in line with expectations. As a result, the broker has reaffirmed its speculative buy rating and $2.33 price target on its shares. It said:

Debut 1HFY26 results held no material surprises relative to IPO disclosures, and are more strategically important than financially complex. Since listing, EPI has secured a favourable Medicare reimbursement ruling, completed the first US Minder implant and signed nine Tier-1 US centres for DETECT, albeit enrolment remains early (3 patients to date).

Cash runway is confirmed through DETECT completion and G1 development into CY28, with execution on enrolment cadence now the key swing factor for sentiment. We make no changes to our FY26-28 forecasts or A$2.33 DCF-based target price. SPECULATIVE BUY rating maintained.

SomnoMed Ltd (ASX: SOM)

A third small-cap ASX share that is being tipped as a buy by Morgans is SomnoMed.

It highlights that the sleep disorder treatment company has started FY 2026 positively and is in a good position to achieve its full-year guidance.

As a result, it has retained its speculative buy rating and 99 cents price target on its shares. It commented:

SOM’s 1H26 result places the company in a strong position to deliver at least the low end of its FY26 guidance, with clear upside potential. The half delivered solid double-digit revenue growth, meaningful operating leverage and significantly improved manufacturing efficiency, giving SOM a structurally strong base heading into 2H.

With around half of revenue and the majority of EBITDA already achieved in 1H, the 2H requirements to meet both the low and high ends of guidance appear modest and achievable. Continued momentum across Europe and North America, combined with expanded capacity and improved turnaround times, provides a credible pathway for SOM to finish the year toward the upper end of its range if current trends persist. No change to valuation or positive outlook but note upside risk as 2H progresses.

The post Morgans names 3 small-cap ASX shares to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker. 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.

Bauxite miner Metro Mining Ltd (ASX: MMI) reported its full year results recently, posting a major increase in net profit and also announcing a share buyback.

The results have confirmed the ASX small cap miner’s status as undervalued in the eyes of the team at Shaw and Partners, which reiterated a bullish price target for the shares.

More on that later. First, let’s have a look at the results.

Record performance

Metro Mining said in a statement to the ASX last week that it had shipped a record 6.2 million tonnes of bauxite, which was a 9% increase year-on-year.

The company’s net profit came in at $142.3 million, up from a loss of $22 million the pervious year, and the company had $57.5 million in cash and $58.9 million in senior debt at the end of the year.

The company’s guidance for this year’s production was set at 6.6-7.1 million tonnes of bauxite, with Metro’s confidence allowing it to start a share buyback.

As the company said:

Due to confidence in the company’s financial position, operational performance and long-term outlook the board believes that the current share price does not reflect the underlying value of the company’s assets and prospects. As part of its ongoing capital management strategy, Metro is pleased to announce its intention to undertake an on-market share buy-back of up to 5% of shares on issue.

ASX small-cap shares looking cheap

The Shaw and Partners team had a look at the full year result and said it was “strong”, with underlying EBITDA up 95% to $73 million and net debt close to zero.

They added:

The result was delivered despite a weaker bauxite price in 2H25, delivery of bauxite into low price legacy contracts, and a number of operational issues which have now been addressed.

 They also believed the production guidance could be conservative.

Metro has released production guidance for CY26 of 6.6-7.1Mt (Shawf 6.8Mt). In CY25 the flow sheet proved itself capable of delivering in excess of 7Mt, and so we view the guidance as realistic but conservative. CY25 was impact by an unseasonal tropical low in April which caused the Skardon River channel to silt up, and restrict the amount of bauxite which could be loaded on barges. The operation also suffered from an unplanned barge loader outage in October and weather disruptions in late December.

Shaw and Partners has a price target of 15 cents on Metro Mining shares, compared with 7 cents currently.

Metro Mining was valued at $433.9 million at the close of trade on Friday.

The post This ASX small-cap miner could more than double: Broker appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
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• How the CBA share price rocketed 17% in February
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Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Commonwealth Bank of Australia (ASX: CBA) share price was on fire in February.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed out January trading for $149.36. When the closing bell sounded on 27 February, shares were swapping hands for $174.62 apiece.

That saw shares in Australia’s biggest bank up a whopping 16.9% over the month just past, smashing the 3.7% gains posted by the ASX 200 over this same period.

But investors who owned the stock throughout the month will have raked in even bigger gains than the CBA share price boost suggests.

That’s because CBA traded ex-dividend on 18 February.

When the bank reported its half year results on 11 February, management declared a fully franked interim dividend of $2.35 a share. Although that passive income won’t be paid out until 30 March, it will go to investors who held the stock at market close on 17 February.

So, if we add that $2.35 back into the $174.62 closing price at the end of the month, then the accumulated value of CBA shares in February was up 18.5%.

Here’s what’s been stoking investor interest.

CBA share price catching tailwinds

Last month started auspiciously for the CBA share price following the 3 February interest rate increase by the Reserve Bank of Australia, with another hike possibly looming in 2026.

That’s important because higher benchmark interest rates could help Australia’s biggest bank increase its net interest margin (NIM) and boost profitability.

Not that profitability is a big issue for CommBank.

As mentioned up top, CBA reported its half year results (H1 FY 2026) on 11 February.

And the big four bank’s cash net profit after tax (NPAT) came in at an eyewatering $5.45 billion, up 6% on H1 FY 2025. CommBank’s half year NIM of 2.04% was steady on an underlying basis.

Commenting on the results that saw the CBA share price close up 6.8% on the day, CEO Matt Comyn said:

Our balance sheet settings remain resilient with strong levels of capital, deposit funding and provisioning given the economic backdrop and geopolitical issues. Our financial position enables us to support lending growth, continue investing to accelerate our technology modernisation agenda and enhance our GenAI capability…

Top dogs on the ASX 200

With the strong CBA share price gains, February also saw the Aussie bank retake the title of biggest stock on the ASX from BHP Group Ltd (ASX: BHP) on 12 February.

CBA had only lost that crown to BHP two weeks earlier, after CommBank had commanded the top ASX stock crown from some 18 months.

But with the BHP share price also racing higher over the month just past, CBA handed the title back to BHP on 27 February.

The battle continues.

The post How the CBA share price rocketed 17% in February appeared first on The Motley Fool Australia.

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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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Oil prices have spiked to a 4-year high as escalating conflict between the United States, Israel, and Iran fuels volatility in global energy markets.

According to Trading Economics, Brent crude has surged above US$77 per barrel, while US West Texas Intermediate (WTI) has jumped past US$70. Earlier in the session, prices briefly climbed even higher, marking the strongest levels since mid-2022.

The rally comes as traders rapidly price in the latest geopolitical risk.

Oil surges as supply fears intensify

Coordinated US and Israeli strikes on Iranian targets have triggered a broader regional escalation. That has included recent Israeli strikes in Beirut and projectile exchanges involving Hezbollah.

Iran has already retaliated, and its Islamic Revolutionary Guard Corps (IRGC) has warned that further and more forceful responses remain possible. That threat of continued escalation is keeping energy markets on edge.

The Strait of Hormuz remains the key flashpoint. The narrow waterway handles roughly 1/5th of global oil shipments, meaning any disruption could have immediate implications for global supply.

Shipping companies are reportedly rerouting vessels, while insurers reassess war risk premiums in the region. Even if physical supply remains intact for now, traders are clearly building in a geopolitical risk premium.

OPEC+ has approved a modest output increase of around 206,000 barrels per day for April. However, that represents less than 0.2% of global demand and is unlikely to offset any material disruption if the conflict intensifies further.

Woodside shares power higher

The oil rally is flowing directly through to Australia’s largest energy producers.

The Woodside Energy Group Ltd (ASX: WDS) share price is up 6.15% to $30.05, and is nearly up 30% in 2026.

With a market capitalisation of around $57 billion, Woodside remains one of the ASX’s most significant oil and LNG exposures. Sustained higher oil prices typically translate into stronger revenue and operating cash flow, particularly for large-scale producers with global export operations.

Investors appear to be repositioning quickly in anticipation of improved earnings momentum if elevated crude prices persist.

Santos joins the rally

It is a similar case for Santos Ltd (ASX: STO).

The Santos share price has risen 5.62% to $7.14, and is now up around 16% this year.

Santos generates revenue from a diversified portfolio of oil and gas assets across Australia and international markets. Like Woodside, it benefits directly from higher realised oil prices, which can support cash flow and balance sheet flexibility.

The company has a market capitalisation of about $23 billion.

What happens next?

The key question for investors is whether this spike proves temporary or marks the start of a more sustained move higher.

If the conflict escalates further or materially disrupts supply through the Gulf, crude prices could remain elevated. However, any sign of de-escalation may see some of the geopolitical premium unwind quickly.

For now, oil is back in focus, and ASX energy heavyweights are leading the charge in 2026.

The post Oil prices rocket to 4-year high as ASX energy giants surge appeared first on The Motley Fool Australia.

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

Block Inc (ASX: XYZ) shares were the biggest winners on the ASX on Friday with a gain of 28%. Investors appeared pleased with Block’s latest earnings update and announcement that it would cut 4,000 jobs.

During Monday morning trading, the ASX stock lost some of Friday’s gains, 4.7% at $89.74.

Over the past 6 months, Block shares are down around 23%, reminding investors just how volatile Block can be.

Easy money management

Block is the company behind Square, Cash App, and Afterpay. Its goal is simple: make moving and managing money easier outside the traditional banking system.

The $54 billion ASX share provides digital payments technology to small businesses, peer-to-peer transfers, banking-style services to consumers, and buy now, pay later solutions through Afterpay.

The latest result gave investors something to cheer. Gross profit rose solidly year on year, Cash App continued to grow, and management lifted full-year guidance.

For the full year that ended 31 December 2025, gross profit increased 17% to US$10.36 billion. This reflects a 21% jump in Cash App gross profit to US$6.34 billion and a 9% lift in Square gross profit to US$3.94 billion.

AI will replace 4,000 cut jobs

Just as importantly, Block announced it would cut more than 4,000 roles as part of a push to streamline operations and lean more heavily on AI. The market clearly liked the focus on efficiency and margin improvement and jumped at Block shares.

There are real strengths here. Block has a large and engaged user base, strong brand recognition in digital payments, and an ecosystem that links merchants and consumers. If it can keep growing gross profit while tightening costs, operating leverage could drive stronger earnings over time.

Fierce competition, regulatory scrutiny

But risks remain. Competition in payments and digital wallets is intense. The buy now, pay later (BNPL) sector faces regulatory scrutiny and credit risk, especially if consumer spending slows. Profitability has also been inconsistent, and investor confidence has been shaken during previous sell-offs.

So, are Block shares back in play? The 24.7% upswing in the past 5 days suggests sentiment is improving. However, the real test will be whether management can turn cost cuts and AI investment into sustained profit growth. If execution improves, the current pullback could look like an opportunity. If not, volatility may stick around.

What next for Block shares?

Analysts are pretty bullish on Block shares. TradingView data shows 2 out of 3 analysts have a strong buy rating on the stock, and one has a hold.

The maximum target price is $256, implying a massive 172% upside for investors at the time of writing. Even the average $163.67 target price represents a potential 74% gain for investors over 12 months.

The post Are Block shares back in play? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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• Why are Block shares rocketing 30% on Friday?
• Block Q4 2025 earnings: Profit jumps as AI transformation begins
• 5 oversold ASX shares to buy before the end of February

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 positions in and has recommended Block. 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 just capped off a strong month of outperformance only to kick off the new month with a bang.

Shares in the S&P/ASX 200 Index (ASX: XJO) drone defence company closed out January trading for $3.32. When the closing bell sounded on 27 February, shares were changing hands for $3.62 each.

This saw the DroneShield share price up 9.0% in February, outpacing the 3.7% monthly gain posted by the ASX 200.

As for March, halfway through the first trading day of the new month, shares are trading for $4.02 each, up a whopping 11.1%.

With no fresh news out from the company today, investors look to be bidding up the stock on the heels of the United States and Israel’s attack on Iran. With Iran responding to the attacks, and both sides deploying plenty of drones, the market appears to be pricing in material demand growth for drone defence technologies.

Now, here’s what sent the stock higher in February.

How DroneShield shares raced ahead of the ASX 200 in February

The ASX 200 drone defence stock enjoyed a big lift from two price sensitive releases in the month just gone.

On 25 February, DroneShield shares closed the day up 12.6% following the release of the company’s full calendar year 2025 results.

Among the highlights, the company achieved a 276% year-on-year increase in revenue to $216.5 million. And earnings before interest, tax, depreciation and amortisation (EBITDA) swung to a positive $4.5 million, following a loss of $8.6 million reported in 2024.

On the bottom line, DroneShield’s profit after tax of $3.5 million was up 367% from the prior year.

Investor interest in DroneShield shares also looks to have been piqued by the company’s reported $2.3 billion sales pipeline. That’s up 92% increase over the last 12 months.

DroneShield independent non-executive chairman Peter James said on the day:

FY 2026 already has $104 million in secured revenue of which $22 million has been recognised to date. Secured SaaS in FY 2026 is at $22 million, of which $2 million has been recognised to date, and SaaS expected to increase further as additional sales are secured.

What else did the ASX 200 drone defence company report?

DroneShield shares closed up another 8.9% the following day, 26 February.

That big boost followed news that the company had inked six new contracts with a western military end-customer. The contracts are valued at a total of $21.7 million.

Pleasingly, DroneShield revealed that it had all the required items for the new contracts in stock. The company expects to deliver the orders in the first quarter of 2026.

The post Why DroneShield shares soared in February and are rocketing into March appeared first on The Motley Fool Australia.

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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 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.