Author: openjargon

The team at Morgans has been busy running the rule over a number of popular ASX shares this week.

Let’s see if the broker is bullish, bearish, or something in between on these names. Here’s what it is saying:

Accent Group Ltd (ASX: AX1)

Morgans remains positive on this struggling footwear retailer and notes that it received an opportunistic takeover offer this week.

In response, the broker has retained its buy rating on Accent shares with an improved price target of 85 cents. This compares to its current share price of 76 cents. It commented:

Frasers Group has made an unconditional on-market cash takeover offer for AX1 at $0.65 per share, which represents no premium to the closing share price. We see this offer as opportunistic, given the weakness in the share price over the last 12 months (down 64%), and see scope for Frasers to revise its bid higher. We have made no changes to our forecasts, but have increased our target price to $0.85 (from $0.75) applying a lower discretionary discount. We retain our BUY recommendation.

Karoon Energy Ltd (ASX: KAR)

This energy producer’s shares have been hammered this week following a disappointing update.

While the update was disappointing, Morgans has upgraded Karoon Energy’s shares to a hold rating with a $1.67 price target following the share price decline. This compares favourably to its current share price of $1.44. The broker said:

A good company in a difficult position, dealing with multiple operational issues, albeit enjoying a nice bump in earnings resulting from the Middle East conflict. Operator LLOG advised of ongoing operational issues leading to a 41% downgrade to Who Dat production in 2026, an 11% downgrade at group level. Down 20% in two sessions, KAR is trading close to our revised target price. As a result, we lift our Trim rating to HOLD with a A$1.67 target price.

Transurban Group (ASX: TCL)

Morgans was disappointed with this toll road operator’s recent traffic update, highlighting that traffic is below expectations.

It believes this leaves it positioned to fall short of consensus estimates. As a result, it has downgraded Transurban’s shares to a sell rating with a $12.50 price target. This is 15% lower than its current share price of $14.74. It commented:

TCL’s update indicated traffic is running below expectations. TCL also announced its exit from the Montreal market via divestment, crystallising an equity value loss. DCF-based 12-month target price reset to A$12.50/sh (-5% vs previously), with forecast downgrades (we are more bearish on EBITDA, Free Cash and DPS growth than consensus) partly offset by discount rate adjustments.

TCL’s recent share price strength (+9% since its February result and not far off all-time highs) is not reflective of the weaker traffic growth and higher interest rate environment that typically challenges TCL’s valuation. We recommend clients use the share price strength to take profits in overweight positions. Downgrade from HOLD to SELL.

The post Buy, hold, sell: Accent, Karoon Energy, and Transurban shares appeared first on The Motley Fool Australia.

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

Macquarie Group Ltd (ASX: MQG) shares have climbed higher into the green on Wednesday. At the time of writing, the shares are up around 0.2% higher and changing hands at $249.60.

At one point this morning, the share price reached an all-time record high of $250.54 a piece.

Macquaire’s shares are now around 23% higher for the year to date and 18% higher than this time last year.

Like many of the ASX bank stocks, Macquarie shares slumped through late February and March. But thanks to a strong recovery in early April, it is now the best-performing ASX 200 bank stock by far, and its share price is smashing previous record highs.

Are Macquarie shares a buy, sell, or hold after the latest rally?

Market Index data shows that brokers are mostly bullish on the bank stock’s outlook. The majority have a buy rating on the shares, but the $253.75 average target price now implies a small 2% potential upside. 

TradingView shows that some analysts are even more bullish. Again, the majority (nine out of 15) have a buy or strong buy rating on the shares. The average target price of $256.69 implies a potential 3% upside at the time of writing. But the maximum $290.17 target price implies the shares could jump another 16% over the next 12 months.

Morgan Stanley is one of the more bullish brokers. It has a buy rating and a $263 price target on Macquarie shares.

Why are Macquarie shares going from strength to strength?

Macquarie is the fifth-largest bank listed on the ASX by market capitalisation. But it’s more than just a bank. Macquarie also provides banking, financial, advisory, investment, and fund management services across 34 markets globally. 

That means it has exposure to a range of sectors and markets, including commodities trading, infrastructure deals, asset management, and capital markets. 

The bank also makes around two-thirds of its money internationally, which reduces the risk of being too focused on one region. It also means that, unlike many of its Australian peers, it isn’t reliant on lending margins.

Instead, its diversity means that it can remain stable, or even benefit, when markets are going through periods of volatility as we’ve endured throughout the first half of 2026. This makes it a very attractive investment option for exposure to financial shares, but without the concentration and risk of the local market.

What about its finances?

The investment bank posted its third-quarter trading update for FY26 in February this year, revealing that the business has experienced strong quarterly growth. 

Macquarie delivered more good news to investors last month when it posted a stronger-than-expected FY26 result and announced growth across all its operating groups.

The company posted a 30% year-on-year increase in NPAT to $4.85 billion. It noted that the second half of the financial year was particularly strong, with H2 NPAT coming in at $3.19 billion, up 93% from the first half.

Management also declared a 7.7% increase in its final partly-franked dividend to $4.20 per share.

There hasn’t been any price-sensitive news out of the company since its results announcement, so it’s likely that investors are still buying into the shares on the expectation of more growth ahead.

Macquarie’s latest results and share price performance certainly demonstrate why its valuation is sitting at an all-time high today.

The post Macquarie shares climb to fresh all-time high: Buy, sell or hold? appeared first on The Motley Fool Australia.

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• Why I’d buy and hold Macquarie shares for 10 years
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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

BHP Group Ltd (ASX: BHP) shares have been on a huge run.

The mining giant hit a record high of $65.78 on Wednesday, which means the share price is now up approximately 75% over the past 12 months.

After a move like that, it is natural to ask whether the opportunity has passed. A record high can make a share feel expensive, especially when investors remember buying opportunities at much lower prices.

But I would not be rushing to sell BHP shares. In fact, I still think they are a buy for long-term investors.

The valuation is not extreme

The first point I would make is that BHP does not look wildly expensive on current forecasts.

Using CommSec consensus estimates, the company is expected to generate earnings per share of around $4.46 in FY26 and $4.48 in FY27.

At the record high price of $65.78, that puts BHP on a price-to-earnings (P/E) ratio of about 14.7 times FY26 and FY27 earnings.

That is not a bargain-bin valuation, but I do not think it is excessive either, particularly if commodity prices remain stronger for longer.

The dividend also remains useful. CommSec estimates fully-franked dividends per share of $2.12 in FY26 and $2.02 in FY27. That implies forward dividend yields of around 3.2% and 3.1%, respectively.

A supportive commodity backdrop

The bigger reason I would remain positive is the potential commodity backdrop.

Bell Potter has argued that a new resources supercycle may be forming. The broker believes several megatrends are now colliding with a resource base that has been underinvested in for years, creating the potential for “new and higher price floors” across a range of commodities.

That is an important point for BHP. The last major resources boom was driven heavily by China’s industrialisation and urbanisation. That created enormous demand for bulk commodities such as iron ore, coal, and oil.

The next cycle could look different.

Bell Potter points to AI capital expenditure, global electrification, and deglobalisation as major structural forces. Those trends are more intensive in materials such as copper, aluminium, uranium, lithium, nickel, and rare earths.

BHP is not exposed to all of those commodities equally, but it is very well placed in copper. I think that is a major reason to keep owning the stock.

Copper is central to electrification, power grids, data centres, renewable energy, and broader industrial demand. At the same time, supply is difficult to bring on quickly. Large copper projects can take many years, face permitting hurdles, and require substantial capital.

If demand keeps rising and supply remains constrained, higher prices could be more durable than the market expects.

Why I would still buy

BHP is still a cyclical business. Commodity prices can fall, China remains important, costs can rise, and investor sentiment toward miners can change quickly.

But I think the current setup is more compelling than a simple “share price has gone up, therefore sell” argument.

BHP has scale, world-class assets, strong cash generation, and exposure to commodities that could become even more valuable if the global economy keeps investing in electrification, AI infrastructure, and energy security.

The company may not rise another 75% over the next year. I would not invest on that assumption. But I think the long-term case remains strong, especially if Bell Potter is right that this is the early stage of a more structural commodity cycle.

Foolish Takeaway

I would not sell BHP shares just because they have reached a record high.

The share price has moved strongly, but the valuation still looks reasonable on consensus forecasts, the dividend yield remains respectable, and the company has exposure to commodities that could benefit from powerful long-term demand trends.

There will be volatility along the way. That comes with owning miners. But for investors with a long-term view, I think BHP remains one of the best ASX 200 resource shares to buy and hold.

The post BHP shares are at a record high, should I buy or sell? appeared first on The Motley Fool Australia.

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• If I invest $8,000 in BHP shares, how much passive income will I receive in 2027?

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Novonix Ltd (ASX: NVX) shares have been hit hard on Wednesday after the battery materials company completed a capital raising.

At the time of writing, the Novonix share price is down 19.79% to 19.3 cents after falling as low as 17.5 cents earlier in the session.

The latest decline leaves the ASX battery stock down more than 50% since the start of 2026 and around 54% lower over the past 12 months.

Let’s take a closer look at why the stock is being heavily sold off.

Discounted placement adds more shares

According to the release, Novonix has received firm commitments from institutional and sophisticated investors for a $20.7 million placement.

The new shares will be issued at 16 cents each, representing a 33.3% discount to the company’s previous closing price of 24 cents.

The placement price is also 31.2% below the 5-day volume-weighted average price (VWAP) of 23 cents.

Settlement is expected on Friday, with the new shares due to begin trading on Monday.

Novonix is also giving eligible shareholders the chance to buy up to $30,000 worth of shares through a share purchase plan (SPP).

These shares will also be offered at 16 cents each, with the company aiming to raise another $3 million.

The offer is available to investors who were registered shareholders at 7:00pm on Tuesday. It is expected to open next Monday and close on 14 August.

Why are Novonix shares falling?

The large discount attached to the placement appears to be putting most of the pressure on the stock today.

Even after Wednesday’s sell-off, the Novonix share price remains around 21% above the 16-cent issue price.

The placement will also increase the number of shares on issue, diluting investors who don’t take part in the raising.

Novonix currently has more than 862 million ordinary shares on issue, with the placement adding another sizeable block of stock.

The company plans to use the funds to expand production capacity and prepare for expected customer demand.

Managing Director and CEO Mike O’Kronley said the raising would allow Novonix to continue investing in capacity while supporting its growth plans.

What does Novonix do?

Novonix produces synthetic graphite used in lithium-ion batteries and is building a North American supply chain for battery materials.

The company is expanding its Riverside facility in Tennessee, with the aim of supplying customers across the energy storage, electric vehicle, and industrial markets.

However, increasing production requires a large amount of spending before the company can generate stronger revenue from the facility.

The capital raising gives Novonix more funding to continue the expansion, but the large discounted issue price has added more pressure to existing shareholders.

The post Why is this ASX stock crashing 20% today? appeared first on The Motley Fool Australia.

More reading

• Why is this ASX battery materials technology stock rocketing 24% today?

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.

Blue-chip investing does not have to mean buying the same few ASX names every time.

There are plenty of large, high-quality companies outside the most obvious banks, miners, and supermarket giants. Some of them have global earnings streams, strong industry positions, and long runways for growth.

If I were looking to buy ASX 200 blue-chip shares in June, these are two I would consider.

Goodman Group (ASX: GMG)

Goodman is one blue-chip share I would buy.

It is often placed in the property bucket, but I think that misses part of the point.

Goodman has spent years building a portfolio and development pipeline around locations that modern businesses need. These are sites close to cities, transport links, consumers, supply chains, and increasingly power infrastructure.

That is a valuable position to be in. The world is asking more from physical infrastructure. Companies want faster logistics, more efficient distribution, and better-located facilities. At the same time, the growth of cloud computing and artificial intelligence (AI) is increasing demand for data centres and the land and power needed to support them.

Goodman is one of the few ASX 200 shares that can benefit from both trends.

The share price can be sensitive to interest rates, development costs, and expectations around data centre growth. But I like the way Goodman combines real assets with a disciplined operating model and global customer relationships.

For me, it is a blue chip that still has meaningful growth optionality.

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat is the second blue-chip ASX 200 share I would consider buying.

This is a business with a very different profile. It has a strong position in gaming machines, digital gaming, and content development.

What I like about Aristocrat is its product quality. In gaming, the best content can keep players engaged and help venue operators earn strong returns from their machines. That gives Aristocrat an advantage if it continues to invest well in design, maths, themes, hardware, and user experience.

The company also has a strong balance sheet and a history of returning capital to shareholders when it has the capacity to do so. That financial strength gives it room to invest, make acquisitions, and manage through softer periods.

There are risks. Gaming is regulated, consumer behaviour can change, and digital growth is not guaranteed. But Aristocrat has built a global business with valuable intellectual property, deep customer relationships, and a strong track record in product innovation.

I think that makes it one of the more attractive ASX 200 blue chips outside the usual defensive names.

Foolish Takeaway

A blue-chip portfolio does not need to be built only around the most familiar ASX shares.

What I like about these two businesses is that they have already achieved scale, but still have ways to keep growing. One is tied to the physical infrastructure needed by modern supply chains and digital services. The other depends on product quality, intellectual property, and global customer relationships.

Both carry risks, but for investors looking beyond the usual blue-chip choices in June, I think these two ASX 200 shares are worth a closer look.

The post 2 of the best ASX 200 blue-chip shares I’d buy in June appeared first on The Motley Fool Australia.

More reading

• Is Goodman Group a buy for dividend income today?
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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 300 Index (ASX: XKO) is just about flat in morning trade today, but don’t blame this surging ASX 300 stock.

The outperforming company in question is gold and rare earths miner Dateline Resources Ltd (ASX: DTR).

Dateline Resources shares closed yesterday trading for 15 cents. At time of writing, shares are changing hands for 16.5 cents apiece, up 10%.

This sees the Dateline Resources share price up a whopping 43.5% since last Friday’s close.

Here’s what’s stoking ASX investor interest today.

ASX 300 stock jumps on rare earths buzz

Dateline Resources shares are charging higher following an exploration update at its Music Valley Heavy Rare Earth Project, located in the US state of California.

The ASX 300 stock conducted a magnetic and radiometric survey in March, which spanned 20,520 highly prospective acres.

Mitre Geophysics has now completed processing of the Heavy Rare Earth Elements (HREE) datasets from Music Valley.

The company said the results highlight “numerous structures” across the project area, increasing the likelihood for HREE concentration. It has identified three priority prospect areas for more detailed exploration, including sampling and drilling campaigns.

The Thorium (Th) rich domains revealed by the survey were said to likely be the best proxy for HREE mineralisation.

According to the release:

The high Th is considered a proxy for elevated HREE in the minerals monazite and xenotime. The processed data highlighted a number of structurally complex zones on the western side of the project for further examination.

Dateline’s rare earths and geology experts are now on the ground to confirm the geophysical interpretations.

What did Dateline Resources management say?

Commenting on the survey results helping boost the ASX 300 stock today, Dateline Resources managing director Stephen Baghdadi said, “Music Valley has always had the ingredients of a significant heavy rare earth district.”

He added, “What these surveys have done is show us where those ingredients come together.”

Digging into the geology, Baghdadi said:

The interpretation has identified a series of structurally complex zones associated with elevated thorium signatures and favourable Pinto Gneiss geology. These are precisely the types of settings where we would expect rare earth mineralisation to be concentrated.

Looking ahead, he concluded:

Rather than searching across a large land package, we are now focusing on a small number of highly prospective target areas. Tony Mariano Jr and Russell Mason are currently ground-truthing these prospects, and that work will guide the next phase of sampling and drill targeting.

The post Up 44% this week, guess which ASX 300 stock is surging again today on big rare earths news 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 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.

Major blue-chip shares like Commonwealth Bank of Australia (ASX: CBA) are a popular choice for investors seeking reliable passive income.

Bank stocks are generally considered cyclical rather than classically defensive, but large-scale banking giants like CBA certainly have defensive qualities.

Banking and credit are usually seen as an essential service. This means the sector can remain relatively stable in times of economic volatility.

As a result, banks like CBA are able to record a consistent operational performance and earnings, even when markets are mostly weak.

Another bonus is that the bank is huge, dominant, and highly profitable. This means investors generally consider it a safe haven when markets are unstable. Scarcity of quality stocks on the ASX also means investors tend to put major players, like CBA, on a pedestal. 

Its huge scale has enabled the bank to generate a long history of paying a regular fully-franked dividend every year, dating back to 1992. 

Generally, CBA has also raised its dividend over time as profits have grown, with the exception of periods of economic decline, such as the Global Financial Crisis in 2008-09 and during COVID-19.

How many CBA shares can you get for $5,000?

At the time of writing, CBA shares are trading at $162.64 a piece.

That means that your $5,000 investment would buy around 30 of the ASX bank’s shares. 

What dividend does CBA pay its shareholders?

The banking giant pays its shareholders two fully-franked dividends per year, in March and September.

CBA most recently paid its shareholders an interim dividend of $2.35 per share, fully franked, in March this year.

Based on the latest forecasts, the bank is forecast to pay a total dividend of $5.15 in FY26. It is then forecast to pay shareholders $5.45 per share in FY27.

Based on the current share price of $162.64, that translates to a forward dividend yield of around 3.2% for FY26. For FY27, the forward dividend yield is closer to 3.4%, at the time of writing.

So, what’s the estimated passive income for FY26 and FY27?

Using the estimated payout figures above, we can calculate roughly how much income to expect from a $5,000 investment in CBA shares. 

If the banking giant pays the expected $5.15 per share in FY26, then your 30 CBA shares would generate a total of $154.50 in passive income.

Assuming the $5.45 dividend forecast for FY27 also comes to fruition, your 30 shares would generate an estimated $163.50 in passive income for the year.

Does that mean CBA shares are a good buy for passive income?

CBA shares are currently viewed as overvalued versus its peers. And if the highly anticipated share price correction actually happens, it could affect the amount of passive income paid to shareholders.

But keeping in mind that ASX bank stocks are cyclical investments, even a near-term decline could rebound in the mid-term. I personally think CBA shares are still a solid investment for passive-income-seeking investors.

The post If I invest $5,000 in CBA shares today, what passive income would I get in FY27? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

Goodman Group (ASX: GMG) has been one of the most interesting real estate investment trusts (REITs) to have watched on the ASX over the past decade or so. Heck, it’s been one of the most interesting stocks in the S&P/ASX 200 Index (ASX: XJO).

Goodman spent years as a clear market darling. Its units rocketed 50% between late 2014 and late 2017, and then by another 210% or so between 2017 and 2021.

The REIT’s fortunes have been far more volatile since. To illustrate, Goodman lost more than 40% of its value over the first two-thirds of 2022, only to regain it all and then some by early 2025. But the past 18 months or so have once again seen the pendulum swing back, with Goodman today more than 15% away from its all-time high of over $38 a share at current pricing.

Indeed, at today’s price (at the time of writing) of $32.26 a unit, Goodman has spent the past 12 months drifting 6.6% lower.

This fluctuating unit price is only one of the characteristics of this ASX REIT that arguably make it interesting, though. Another is its income potential.

Most investors know REITs as generous providers of dividend income, albeit typically without franking credits.

For example, popular REITs like Scentre Group (ASX: SCG) and Charter Hall Long WALE REIT (ASX: CLW) are currently offering yields of 4.6% and 6.75%, respectively.

Yet Goodman is a conspicuous miser, trading on a trailing yield of just 0.75% today. Even so, Goodman remains a popular ASX investment. So today, let’s talk about whether it can be considered a worthwhile income investment too.

Is Goodman Group a buy for ASX dividend income in 2026?

If you are searching for a fat yield, Goodman is probably not the stock for you. Unlike most of its REIT peers, Goodman is still very much in growth mode. The company clearly prioritises expansion of its property portfolio over paying out dividend distributions as income to its shareholders.

Goodman is well-known for its investment in future-facing industries. Most of its best properties are used for data centres, logistics warehousing, and e-commerce fulfilment.

The company’s results and focus are clearly on expanding its investments in these areas further, not on providing its investors with a large, rising yield. This is evidenced by its recent payouts. Goodman has consistently paid two dividends of 15 cents per unit each year since 2019. That doesn’t look like it will change in 2026 either.

This indicates that the REIT is not likely to pivot to an income-prioritising strategy anytime soon.

Investors invest in Goodman Group for the capital growth potential, not its dividend prowess. As such, ASX investors looking for dividend income might wish to look elsewhere.

The post Is Goodman Group a buy for dividend income today? appeared first on The Motley Fool Australia.

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• How to make $2,000 of monthly passive income from ASX shares
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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 Goodman Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are in the spotlight again on Wednesday.

In morning trade, the defence and space company’s shares are up 9% to $9.52.

This compares favourably to the S&P/ASX 200 Index (ASX: XJO), which is largely flat at the time of writing.

In addition, it means that EOS shares are now up a remarkable 240% over the past 12 months.

To put that into context, a $5,000 investment a year ago would now be worth over $17,000.

Why are EOS shares storming higher again today?

Investors have been scrambling to buy the company’s shares today after it announced another big contract win for the recently acquired MARSS business.

According to the release, EOS’ Command and Control (C2) business, MARSS, has been selected as C2 provider for the BAE Systems (LSE: BA.) Anti Threat System (BATS). It is a next-generation, counter-drone (CUAS) capability.

Management advised that the MARSS NiDAR platform will serve as the intelligent “nerve centre” for BAE Systems’ Anti Threat System. Its AI-powered C2 platform, NiDAR, will be used to integrate sensors and effectors across the defence giant’s global BATS CUAS capability.

The company believes this selection by BAE Systems underscores MARSS’ position as one of very few companies with the ability to deliver advanced, AI-powered C2 platforms that accelerates decision-making from minutes to seconds across detection, classification, and defeat.

It thinks this capability positions MARSS as an ideal partner to support BAE Systems as it delivers market-leading CUAS solutions to meet the growing demand from NATO and international clients.

EOS advised that the collaboration agreement was signed at the Eurosatory Defence and Security Exhibition in Paris.

MARSS will provide both software licensing and technical support for BAE Systems’ CUAS demonstrations and deployments. It notes that in time, this may give rise to customer contracts for BAE Systems and for MARSS.

Should you invest?

While it has not had time to respond to today’s news, Bell Potter has been positive on EOS shares. Late last month, the broker put a buy rating and $10.60 price target on them.

In light of this, despite its heroics over the past 12 months, it is possible that there could still be more gains to come for shareholders over the next 12 months.

Time will tell if that proves accurate, but contract wins like the one with BAE Systems certainly help the bull case.

The post EOS shares rocket 9% on BAE Systems deal 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 positions in and has recommended Electro Optic Systems. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended BAE 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.

The S&P/ASX 200 Index (ASX: XJO) is just about flat today, despite the best lifting efforts of this ASX 200 stock.

The outperforming company in question is Sims Ltd (ASX: SGM).

Shares in the metal and electronics recycler closed yesterday trading for $29.44. In early morning trade on Wednesday, shares are changing hands for $31.04 apiece, up 5.4%. That gives Sims a market cap of just over $6 billion.

It also sees the ASX 200 stock up 98.9% since this time last year. And brave, or well-informed, investors who waded in and bought shares at the one-year closing lows of $13.27 on 1 October will now be sitting on gains of 133.9%.

Here’s what’s grabbing investor interest today.

ASX 200 stock jumps on earnings upgrade

The Sims share price is marching higher after the company released a promising trading update.

Investors are bidding up the ASX 200 stock, with Sims upgrading its FY 2026 underlying earnings before interest and tax (EBIT) guidance to the range of $420 million to $435 million.

That’s up from prior full-year EBIT guidance in the range of $350 million to $400 million, which the company provided on 18 March.

Management cited “continued strength across non-ferrous markets, as well as improved trading conditions for ferrous” for the improved earnings outlook.

Sims said it now expects its North American Metal businesses to deliver “a significant increase” in second-half earnings (H2 FY 2026). Earnings are likely to get a boost from strong operating performances across both Sims North America Metals and SA Recycling.

The ASX 200 stock noted that ferrous prices in Asia have recently improved. However, prices in ANZ were reported to remain subdued due to ongoing elevated Chinese steel exports.

The company also said that its Sims Lifecycle Services business continues to “benefit significantly” from the fast-growing global data centre ecosystem.

With that in mind, management now expects the underlying FY 2026 EBIT for Sims Lifecycle Services to be in the range of $170 million to $175 million.

The company noted:

While the business continues to benefit from strong underlying demand and favourable long-term industry trends, the timing of customer decommissioning programs will influence the distribution of volumes and earnings between reporting periods.

What’s been boosting Sims shares?

As today’s update confirms, the ASX 200 stock has been enjoying a strong run this year.

At its half-year results (H1 FY 2026), released on 17 February, the company reported a 65.9% year-on-year increase in underlying EBIT to $121.1 million.

And on the bottom line, net profit after tax (NPAT) surged 70.9% to $60 million.

The post Up 134% since October, why is this $6 billion ASX 200 stock leaping higher again today? appeared first on The Motley Fool Australia.

More reading

• Sims lifts outlook as North American metals drive gains
• 7 ASX shares attracting upgraded ratings this week
• Here are the top 10 ASX 200 shares today
• These were the best-performing ASX 200 shares in May
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.