Author: openjargon

Flight Centre Travel Group Ltd (ASX: FLT) shares are having a volatile start to trade on Wednesday.

The travel agent’s shares were down 4% at one stage before rebounding to be 2.5% higher at $12.12.

Why were Flight Centre shares sinking?

Investors were selling the company’s shares after it downgraded its earnings guidance for FY 2026.

According to the release, less than a month since its last trading update, management has revised its underlying profit before tax guidance range to $275 million to $295 million.

This is below its previous guidance range of $310 million to $345 million, with the mid-point of its new range broadly in line with FY 2025’s underlying profit before tax of $286 million.

Management stressed that this reflects temporary, conflict-driven headwinds, and is not a deterioration in the underlying business, which grew underlying profit before tax almost 10% over the first three quarters.

It notes that fourth-quarter disruption is expected to reduce leisure earnings by around $50 million, compared to previous expectations, with a further $5 million impact in touring businesses and a $5 million to $10 million foreign exchange impact.

One bright spot is that its global corporate business has been less affected and is on track to deliver strong FY 2026 profit growth.

Looking ahead, management is hopeful that the US-Iran peace deal agreed this week will provide a clearer runway into FY 2027 and a significant earnings tailwind. However, it is unlikely to meaningfully improve the FY 2026 result trajectory given its timing.

However, this guidance downgrade has been overshadowed by news that the company is launching a buyback.

Management commentary and buyback

Commenting on the guidance downgrade, Flight Centre’s managing director, Graham Turner, said:

The change in our short-term expectations reflects a temporary, conflict-driven headwind layered over what was shaping as a very solid year. It has been driven by an external shock – the Middle East conflict disrupting peak leisure travel – not by a deterioration in our underlying business.

Group-wide, the company delivered almost 10% UPBT growth across the first three quarters of FY26, accelerating to ~20% growth during Q3. Even after absorbing Q4 disruption, the group still expects an underlying profit broadly in line with FY25.

Turner also revealed that Flight Centre plans to buy back up to $200 million of shares on the belief that they are undervalued. He adds:

Looking ahead, we have strong foundations and growth prospects in both the leisure and corporate sectors. This is reflected in the Board’s decision to launch a new up-to-$200m buy-back – which clearly signals that we see our shares as undervalued at current levels.

In leisure, our strategy continues as we work to strengthen Flight Centre brand, expand in growth sectors, including cruise, tour and luxury, and embed the new World360 Rewards program, which now has more than 420,000 members. The $200m profit milestone the business was on track to achieve during FY26 remains a viable, near-term target given that travel downturns are historically short and followed by rapid rebounds

The post What’s going on with Flight Centre shares today? appeared first on The Motley Fool Australia.

More reading

• Flight Centre updates profit guidance; unveils $200m buy-back
• Here are the 10 most shorted ASX shares
• Why did ASX 200 retail shares outperform last week?
• 8 ASX 200 shares with renewed buy ratings this week
• These 3 oversold ASX 200 shares look cheap right now

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

The Nickel Industries Ltd (ASX: NIC) share price is in focus today after the company reported US$80 million in adjusted EBITDA from operations for April and May 2026, with operations rebounding strongly in May. Key highlights also include an expected US$70 million working capital distribution and progress at the Excelsior Nickel Cobalt HPAL project.

What did Nickel Industries report?

• Adjusted EBITDA from operations of approximately US$80 million for April and May 2026
• April EBITDA of US$29 million impacted by Hengjaya Mine downtime and planned maintenance
• May EBITDA rebounded to approximately US$51 million
• Release of RKEF working capital with ~US$70 million to be received by early July 2026
• Refund of US$15 million option fee from Shanghai Decent relating to the ONI matte converter
• ENC project commissioning progressing, with first ore received in May and MHP expected by July

What else do investors need to know?

Nickel Industries opted not to move forward with its investment in the ONI matte converter, instead favouring HPAL technology, which supports higher margins and a greener production footprint. This led to a US$15 million refund from its largest shareholder, Shanghai Decent, highlighting collaboration and strong relationships.

The company’s strategic focus continues to be on developing the Excelsior Nickel Cobalt (ENC) HPAL project, which is receiving ore and progressing toward producing mixed hydroxide precipitate (MHP) by mid-July 2026. Nickel cathode production is on track for mid-August, while commissioning of the refinery and leach-circuit is due in late June, aiming to register its cathode with the LME and SHFE.

What did Nickel Industries management say?

Managing Director Justin Werner said:

We are very pleased with the Company’s recent performance. After a softer April, impacted by downtime at the Hengjaya Mine and planned maintenance at the RKEFs, our operations rebounded strongly in May to deliver approximately US$51m in Adjusted EBITDA, underscoring the quality and resilience of our asset base.

Our balance sheet also continues to strengthen, with our RKEF operations unwinding a substantial amount of working capital and Nickel Industries expects to receive around US$70m in distributions by early July. Together with the US$15m option-fee refund from Shanghai Decent, this reflects strong cash generation and disciplined capital management across our portfolio.

Commissioning of our transformational ENC project is well underway, with ore received at the limonite feed preparation plant in May, slurry to the ENC Smelter in the coming week, MHP anticipated by mid-July and nickel cathode expected by mid-August – defining milestones as we diversify our production towards the electric vehicle battery supply chain.

What’s next for Nickel Industries?

Looking ahead, the company is focused on ramping up production at the Excelsior Nickel Cobalt HPAL project. Expectations are for first mixed hydroxide precipitate production in July and first nickel cathodes by mid-August, which should strengthen the company’s position in supplying the global electric vehicle battery supply chain.

With the anticipated inflow of US$70 million from RKEF operations and cost discipline across its portfolio, Nickel Industries says it remains committed to sustainable growth, carbon footprint reduction, and capital management. The company is also targeting registration of its nickel cathode on major global exchanges in the coming months.

Nickel Industries share price snapshot

Over the past 12 months, Nickel Industries shares have risen 38%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Nickel Industries posts US$80m EBITDA and HPAL progress in operating update appeared first on The Motley Fool Australia.

More reading

• Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance
• Sims lifts outlook as North American metals drive gains
• Flight Centre updates profit guidance; unveils $200m buy-back
• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months
• Fletcher Building tips stable FY26 as divestments strengthen balance sheet

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

If you have a high tolerance for risk, then it could be worth looking closely at Alpha HPA Ltd (ASX: A4N).

That’s because the team at Bell Potter believes this ASX 300 share could rise materially from current levels.

What is Alpha HPA?

Alpha HPA is the owner of the HPA First Project in Gladstone, Queensland, which is aiming to supply high-purity aluminium-based products to the semiconductor, lithium-ion battery, and light emitting diode (LED) manufacturing sectors.

Bell Potter notes that the project’s proprietary technology is expected to disrupt incumbent HPA production through delivering ultra-high purity products with significantly lower unit costs.

The broker highlights that a recent update revealed letters of intent and commercial supply agreements. It said:

A4N’s positive marketing update points to product offtake Letters of Intent exceeding 12ktpa, further maturity in commercial supply agreements from Stage 1 production, adoption of HPA in semiconductor tooling, and product demand projections exceeding 50ktpa by 2030. Four new LOIs include: 324tpa for semiconductor thermal fillers (2 x LOIs to South Korea & Japan); 180tpa for catalyst applications; and up to 5,000tpa from a Tier-1 lithium-ion battery group which follows a multi-year cycle of product qualification.

Commercial supply agreements have been added with US and European semiconductor Chemical Mechanical Planarisation customers and with Japanese and South Korean semiconductor thermal filler customers. A4N’s modelling sees demand for key products HPA and High Purity ATH exceeding 50ktpa by 2030, including around 30ktpa from the semiconductor sector.

Bell Potter thinks this leaves the ASX 300 share well-placed to unlock its debt funding. It adds:

The update puts A4N in a strong position to meet Conditions Precedent to draw on its $400m debt funding from Export Finance Australia and the Northern Australia Infrastructure Facility. A key CP was 100% offtake coverage from Stage 2 (10ktpa). We expect that A4N will now be working with the lenders on the basis that a significant offtake threshold has been reached, to enable debt release in 2H 2026.

In the interim, A4N is well funded, with $212m cash at the end of the last quarter. A4N’s sales from its current smaller-scale Stage 1 facility are important market seeding to demonstrate the unmatched capability of A4N’s HPA First products. The demand modelling, in particular from the AI data centre-driven semiconductor sector, adds further confidence with respect to the debt CPs and future expansion potential.

Big potential returns for this ASX 300 share

According to the note, Bell Potter has retained its speculative buy rating and $1.50 price target on Alpha HPA’s shares.

Based on its current share price of 86 cents, this implies potential upside of approximately 75% for investors over the next 12 months.

Commenting on its speculative buy recommendation, Bell Potter concludes:

Over 2H 2026, we expect A4N to firm-up existing offtake LOI volumes and progress to sales contracts for Stage 2 capacity. A key catalyst will be drawing on the project’s committed NAIF and EFA debt facility, which we expect in 2H 2026. A4N’s recent commentary relating to potential volume expansions beyond Stage 2 give us further comfort on the long-term adoption of HPA by the semiconductor sector and therefore product demand. We have made no changes to our A4N valuation or positive outlook in this report.

The post Bell Potter says this ASX 300 share could rise 75% appeared first on The Motley Fool Australia.

More reading

• Got $10,000? I’d buy these ASX 200 shares right now
• Buy this ASX income stock for 18% upside and 8% dividend yield
• After SpaceX, the Anthropic and OpenAI IPOs are next. Here is what ASX AI investors need to know
• Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance
• Sims lifts outlook as North American metals drive gains

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.

If I had $10,000 to invest in S&P/ASX 200 Index (ASX: XJO) shares today, I would focus on quality rather than chasing the market’s most speculative names.

These are two ASX 200 shares I would consider buying right now.

ResMed Inc (ASX: RMD)

ResMed is an ASX 200 share I would consider buying today with part of the $10,000.

The company is a global leader in sleep apnoea treatment and connected care. Its devices help patients start therapy, while masks, accessories, software, and data tools support ongoing treatment.

What I like about ResMed is the combination of medical need and repeat use.

Sleep apnoea is not a one-off issue for many patients. Once someone is diagnosed and starts therapy, they tend to need ongoing support, replacement masks, accessories, monitoring, and software-linked care.

That can create a strong relationship between the company, clinicians, providers, and patients, as well as recurring revenue.

I also like that the market opportunity remains very large. Sleep health is still underdiagnosed in many places, and awareness should keep improving as healthcare systems focus more on chronic conditions, fatigue, cardiovascular risk, and quality of life.

ResMed is not immune to competition, pricing pressure, product cycles, or regulatory changes. Investors also need to watch how weight-loss drugs affect diagnosis and treatment behaviour over time.

But I think it has a strong global position in the healthcare market, which should remain important for decades to come.

Commonwealth Bank of Australia (ASX: CBA)

Another ASX 200 share I would buy is the Commonwealth Bank of Australia.

CBA often looks expensive compared with the other major banks. That is a fair point, and valuation always needs to be considered.

But I think CBA’s premium reflects a genuinely strong franchise.

The bank has a central role in Australian financial life. It touches mortgages, deposits, everyday transaction accounts, credit cards, business banking, merchant services, payments, and digital banking.

That gives CBA scale, data, trust, and regular customer engagement.

I think the digital side is particularly important to the investment thesis. Banking is not just about branch networks anymore. Customers expect fast apps, simple payments, useful tools, and a reliable experience. CBA has invested heavily in that area, and I think it helps strengthen the customer relationship.

Bad debts, margins, funding costs, and regulation remain risks. But I believe CBA has the management team and franchise strength to navigate these risks over time and continue growing earnings and dividends.

Foolish Takeaway

A $10,000 investment can be split across businesses that do very different things.

I would want companies with strong positions, long-term relevance, and the ability to keep adapting as conditions change. These two shares will not be perfect in every market environment, but I think they offer a useful blend of quality, growth, income potential, and resilience.

That is why I would be happy to put money into them today.

The post Got $10,000? I’d buy these ASX 200 shares right now appeared first on The Motley Fool Australia.

More reading

• Forget CBA and buy these ASX dividend shares
• What does the RBA decision mean for the big four bank shares?
• 6 ASX 200 shares with fresh buy ratings this week
• Brokers rate these 4 ASX 200 shares as a sell!
• Here’s the dividend forecast out to 2027 for CBA shares

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for a combination of major upside and a generous dividend yield, then read on!

That’s because Bell Potter has just picked out one ASX stock that it believes offers both.

Which ASX stock?

The stock that Bell Potter is positive on is Dexus Convenience Retail REIT (ASX: DXC).

It owns a portfolio of 91 service stations and convenience retail assets positioned alongside major roads on the Eastern Australian seaboard.

Bell Potter highlights that the Dexus Convenience Retail REIT is differentiated by the high-quality and long-term tenants that it leases these assets to, including Chevron, 7-Eleven, United, Mobil, and Ampol (ASX: ALD).

Commenting on the company, Bell Potter points out that buybacks are currently more attractive than developments. It explains:

Buyback currently more attractive than developments – With a 7.9% earnings yield and c. 6.3% marginal cost of debt, the buyback generates a +1.6% positive spread per dollar deployed. Glass House Mountains Stage 2 offers a 5-6% yield on cost – a negative spread to funding costs, albeit with +1% NTA uplift. We estimate +0.4% FFO/share accretion in FY27 on completion of the remaining buyback, representing upside risk to our forecasts.

The broker has also been looking at electric vehicle adoption and the impact this may have on its service station tenants. It adds:

Tenants resilient in face of EV headwinds. While EVs reached 20% share of new vehicle sales in May 2026, fuel volumes and margins remain above pre-COVID levels. Non-fuel gross profit per site continues to grow, with Viva Energy (21% of DXC income) reporting +1.4% gross margin improvement to 38.8% in Q1 CY26.

Big total returns

According to the note, Bell Potter has retained its buy rating on the ASX stock with a trimmed price target of $3.15 (from $3.25).

Based on its current share price of $2.67, this implies potential upside of 18%.

In addition, Bell Potter is forecasting dividend yields of 7.9% in FY 2026, 7.7% in FY 2027, and then 8.2% in FY 2028.

Speaking about its investment thesis, the broker said:

We maintain our Buy rating on DXC and lower our target price to $3.15. The buyback and developments offer attractive long-term returns, despite the short-term headwinds from rising bond yields. With our revised forecasts DXC is yielding 7.9% vs. 6.4% passive REIT average which we think offers compelling risk adjusted value, and at an implied 8.21% cap rate, despite recent asset sales supporting book value.

The post Buy this ASX income stock for 18% upside and 8% dividend yield appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why this ASX REIT is climbing despite a rough year

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.

Space Exploration Technologies Corp (NASDAQ: SPCX) listed last week at US$1.75 trillion.

It was the largest IPO in stock market history. And it is just the beginning.

Anthropic is targeting a December 2026 public debut at a forecast first-day market cap of approximately US$1.1 trillion, according to the most current forecasts.

OpenAI, which filed its own confidential S-1 earlier this month, is expected to follow in early 2027 at a comparable valuation.

Together, SpaceX, Anthropic, and OpenAI represent a combined public market value approaching US$4 trillion.

For Australian investors who cannot buy any of these stocks on the ASX, the question is what it means for the companies they can buy.

Why these IPOs matter for ASX investors

The most important consequence of trillion-dollar AI IPOs is not the immediate share price movement in SPCX, Anthropic, or OpenAI.

It is the reallocation of institutional capital that follows.

When capital flows into public AI companies at these valuations, attention and money flow toward every company in the AI infrastructure supply chain, including those listed on the ASX.

The AI thesis is being publicly validated at a scale never seen before.

Three ASX stocks sit directly in the path of that validation.

Betashares Space Industry ETF (ASX: RCKT)

The Betashares Space Industry ETF is already living proof of the thesis.

The fund launched at $14 per unit on 12 May 2026, well before SpaceX listed. It surged approximately 30% in the weeks leading up to the SpaceX IPO as anticipation built.

This served to demonstrate how powerfully public AI IPOs move adjacent listed markets.

RCKT holds 28 companies across the global space economy, with Rocket Lab and AST SpaceMobile as its two largest positions.

SpaceX itself will take time to enter the index, but the attention the listing generates flows directly into RCKT’s holdings.

As Anthropic and OpenAI approach their own listings later this year and in 2027, the same dynamic will play out across AI infrastructure stocks globally.

For ASX investors, RCKT captures that excitement in a single trade.

NextDC Ltd (ASX: NXT)

NextDC is Australia’s largest independent data centre operator and has the most direct relationship with the AI IPO wave of any ASX company.

OpenAI is NextDC’s foundational customer for its US$7 billion AI data centre campus in Western Sydney.

When OpenAI lists publicly at close to US$1 trillion, that customer relationship may be permanently reframed.

NextDC has already raised its FY 2026 capital expenditure guidance to between $2.7 billion and $3.0 billion as contracted utilisation surged 60% in the March quarter.

Morgans carries a buy rating on NextDC with a $19 price target, implying upside of approximately 36% from current levels.

Macquarie Technology Group Ltd (ASX: MAQ)

Macquarie Technology Group plays a different but equally important role.

Anthropic’s Claude platform is already being deployed by Australian government agencies and critical infrastructure operators who cannot use offshore AI infrastructure.

Anthropic’s annualised revenue reportedly crossed $47 billion in May 2026, and the company is on track to post its first operating profit in Q2 2026.

As Anthropic’s public listing raises its enterprise profile globally, the demand for sovereign Australian AI infrastructure will only grow.

Macquarie Technology is the primary beneficiary of that demand, backed by a $200 million National Reconstruction Fund investment and 20 consecutive half years of operating income growth.

Canaccord Genuity upgraded MAQ shares following the NRF investment, predicting significant upside from current levels.

The risks

History offers a clear warning about mega-cap IPOs.

According to Professor Jay Ritter’s updated long-run IPO statistics, the average newly listed company underperforms its peers by approximately 8% per year over the five years following its debut.

If Anthropic or OpenAI disappoint in their early trading sessions, the repricing could weigh on AI infrastructure stocks.

Foolish Takeaway

SpaceX has listed. Anthropic targets December. OpenAI follows in 2027.

For ASX investors seeking exposure to the AI IPO wave without buying US-listed stocks, RCKT, NXT, and MAQ each offers a distinct way to participate.

The post After SpaceX, the Anthropic and OpenAI IPOs are next. Here is what ASX AI investors need to know appeared first on The Motley Fool Australia.

More reading

• SpaceX shares are rocketing – how can Aussie investors get exposure?
• Where to invest $20,000 in ASX 200 shares in June
• 6 ASX 200 shares with fresh buy ratings this week
• Which top ASX tech shares would I buy for FY27?
• SpaceX IPO: Should you buy an ASX space ETF to cash in?

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 AST SpaceMobile and Rocket Lab. The Motley Fool Australia has recommended Rocket Lab. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Growthpoint Properties Australia Ltd (ASX: GOZ) share price is in focus after the company announced office portfolio occupancy climbed to 96%, with funds from operations (FFO) guidance reaffirmed for FY26 at 23.0–23.6 cents per security.

What did Growthpoint Properties Australia report?

• Directly held portfolio occupancy increased to 96% as at 31 May 2026
• Weighted average lease expiry (WALE) is 5.7 years
• FY26 FFO guidance reaffirmed at 23.0–23.6 cents per security
• FY26 distribution guidance maintained at 18.4 cents per security
• Refinanced $495 million of debt and completed $16.7 million asset divestment
• 54,721 sqm of office leasing executed in FY26 to date, with terms agreed on an additional 27,602 sqm

What else do investors need to know?

Growthpoint has delivered strong leasing momentum, including major new long-term leases to Myer Group in Melbourne and John Holland Group in Brisbane. The company has also continued its active approach to capital management, refinancing $495 million of debt and extending maturities, which has helped strengthen its balance sheet.

There’s been a change in leadership, with Nathan Thomas brought in as Chief Investment Officer, joining a refreshed executive team. A recent asset sale at Brisbane Airport for $16.7 million underlines the ongoing portfolio optimisation.

What did Growthpoint Properties Australia management say?

CEO and Managing Director Ross Lees said:

Our focus on delivering for tenants has sustained leasing momentum from the first half. We have executed 54,721 sqm of directly held office leasing in FY26 to date and remain on track for a record year, with terms agreed on a further 27,602 sqm.

What’s next for Growthpoint Properties Australia?

Growthpoint remains confident in achieving its full-year guidance, backed by ongoing leasing wins and a resilient tenant base. The company will continue to focus on strategic leasing, disciplined capital management, and maintaining high office and industrial occupancy.

Despite some cautious signals in tenant decision-making and pressures from inflation and funding costs, Growthpoint is prioritising long-term stability and growth by investing in its people and properties.

Growthpoint Properties Australia share price snapshot

Over the past 12 months, Growthpoint shares have declined 8%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance appeared first on The Motley Fool Australia.

More reading

• Sims lifts outlook as North American metals drive gains
• Flight Centre updates profit guidance; unveils $200m buy-back
• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months
• Fletcher Building tips stable FY26 as divestments strengthen balance sheet
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Laura Stewart 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 Myer. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Sims Ltd (ASX: SGM) share price is in focus today after the company upgraded its FY26 underlying EBIT forecast to $420–435 million, up from a previous range of $350–400 million.

What did Sims report?

• FY26 underlying Group EBIT expected between $420 million and $435 million (previously $350–400 million)
• Strong second-half earnings growth in North American Metals (NAM) and SA Recycling (SAR) divisions
• Sims Lifecycle Services (SLS) underlying EBIT forecast at $170–175 million for FY26
• Improved trading conditions for ferrous and non-ferrous metals globally
• Asian ferrous prices lifting, but ANZ ferrous environment remains subdued

What else do investors need to know?

The improved outlook is largely thanks to ongoing strength in non-ferrous markets and a rebound in ferrous trading conditions. Sims’ North American businesses, in particular, are on track to deliver significant earnings growth in the second half of FY26, thanks to solid operational results.

Sims Lifecycle Services continues to benefit from global demand for data centre recycling and decommissioning, although earnings distribution may vary depending on clients’ project timing. The company reminded shareholders that these estimates are unaudited, based on specific market assumptions, and more details will be revealed at the full-year results.

What’s next for Sims?

Looking ahead, Sims is well positioned to benefit from strong long-term industry trends, like the rise of data centres and the broader push towards decarbonisation and circular solutions. Management highlighted the potential for further growth, especially if current favourable conditions in non-ferrous and North American ferrous markets persist.

Investors should keep an eye on sector dynamics—particularly ANZ ferrous conditions and global steel trade flows—as these will influence Sims’ near-term performance.

Sims share price snapshot

Over the past 12 months, Sims shares have risen 89%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Sims lifts outlook as North American metals drive gains appeared first on The Motley Fool Australia.

More reading

• Growthpoint Properties Australia delivers leasing momentum, maintains FY26 guidance
• Flight Centre updates profit guidance; unveils $200m buy-back
• Meet the $1 ASX stock that’s obliterated Nvidia in the last 12 months
• Fletcher Building tips stable FY26 as divestments strengthen balance sheet
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

While most investors focus on the S&P/ASX 200 Index (ASX: XJO), there are also high-potential shares sitting outside the benchmark index and within the lesser followed ASX 300 Index.

To narrow things down, let’s look at three ASX 300 shares that analysts think could be buys now.

Catapult Sports Ltd (ASX: CAT)

The first ASX 300 share that is being tipped as a buy is Catapult.

It is a sports technology company that helps professional teams measure performance, workload, movement, and tactical data.

Its products are used by sporting teams that want better insight into how athletes train, recover, and perform. This is becoming increasingly important as elite sport becomes more data driven.

The interesting part of Catapult’s story is that it is not just selling hardware. The company is building a platform that can become more valuable as teams rely on its data and software across multiple parts of their operations.

That gives it a global growth opportunity in a specialist market where customers can be sticky if the product becomes part of their daily workflow.

Bell Potter is positive on the company and has a buy rating and $4.65 price target on its shares. This implies potential upside of approximately 52%.

Collins Foods Ltd (ASX: CKF)

Another ASX 300 share that brokers are bullish on is Collins Foods.

It is best known as a major KFC operator. It owns and operates restaurants across Australia and parts of Europe, giving it exposure to one of the world’s most recognisable quick-service restaurant brands.

The business has faced pressure from higher costs, softer consumer conditions, and margin challenges in recent times. But this is also a company with a proven operating model and exposure to a category that can remain resilient when consumers trade down from more expensive dining options.

Morgans sees a lot value at current levels and has a buy rating and $12.50 price target on its shares. This suggests potential upside of approximately 47%.

DigiCo Infrastructure REIT (ASX: DGT)

A third buy-rated ASX 300 share to consider is DigiCo Infrastructure REIT.

It gives investors exposure to data centre infrastructure. This is an area that has become increasingly important as artificial intelligence, cloud computing, and digital services require more computing capacity.

It is of course not risk-free. Data centres require significant capital, and property trusts can be sensitive to debt costs, interest rates, and investor sentiment.

But for investors wanting exposure to digital infrastructure outside the usual large-cap names, DigiCo is an option.

Bell Potter has a buy rating and $3.40 price target on its shares. This implies potential upside of approximately 33%.

The post 3 top ASX 300 shares tipped to jump 30% to 50% appeared first on The Motley Fool Australia.

More reading

• 3 incredible ASX growth shares tipped to rise 20% to 70%
• Leading brokers name 3 ASX shares to buy today
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Motley Fool contributor James Mickleboro has positions in Collins Foods. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Sports. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool Australia has recommended Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I’d call the ASX share Propel Funeral Partners Ltd (ASX: PFP) one of Australia’s top shares. Fortunately for investors, it’s currently trading at a great price given its long-term outlook.

As the name suggests, it’s a funeral operator – the second biggest in Australia and New Zealand. It also operates cremation facilities.

While it’s a morbid idea, it does provide an important service for the Australian community.

As the chart below shows, the Propel share price is down 33% since the start of the year. I think this is a great time to consider the business.

Let’s take a look at what makes it such an appealing option right now.

Long-term tailwinds

One of the main reasons why I think it’s one of Australia’s top shares is that the business has some of the clearest, long-term tailwinds on the ASX.

Sadly, the business is required to perform a certain number of funerals each year, giving the business very defensive earnings. As the saying goes, it’s one of the certain things in life.

The number of funerals is predicted to grow in the coming years because of Australia’s ageing and growing population.

Propel says that Australian death volumes are expected to increase by 2.9% per year from 2026 to 2035 and 2.4% per year from 2036 to 2045. In other words, there’s at least 20 years of an expanding addressable market for the funeral sector.

That may not sound like a strong growth rate by itself, but we should remember that the revenue growth from higher volumes can be combined with a rising funeral price over the long-term.

Between FY15 and the first half of FY26, its average revenue per funeral grew at a compound annual growth rate (CAGR) of 2.8%. When you combine mid-single-digit revenue growth, with the potential for rising profit margins from increased scale and solid dividend payments, I think that can translate into a pleasing average total shareholder return (TSR) annually over the long-term.

Valuation

Using the forecast on CMC Invest, the business is trading at 21x FY27’s estimated earnings with a possible grossed-up dividend yield of 5.7%, including franking credits.

The business is expected to grow earnings by another 7% in FY28 and pay a grossed-up dividend yield of 6.1%, including franking credits, at the time of writing. Those are pleasing statistics, in my view, for one of Australia’s top shares.

For a business that could continue to grow over time, I think the current valuation for such a defensive business is fair. Plus, whilst we own it over the long term, it can pay a pleasing level of passive income during the period and deliver ‘real returns’.

The post A rare buying opportunity in 1 of Australia’s top shares? 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.