Author: openjargon

Looking for some new portfolio additions? If you are, it could be worth hearing what Morgans is saying about the three popular ASX shares listed below.

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

Evolution Mining Ltd (ASX: EVN)

This gold miner delivered a solid quarterly update this week despite battling bad weather and maintenance impacts.

In response, Morgans has upgraded Evolution Mining’s shares to an accumulate rating with a $16.10 price target. Commenting on the company, the broker said:

Gold production met expectations despite weather and maintenance impacts, with weaker copper and higher AISC driven by Ernest Henry disruptions. Strong 4Q26 expected to achieve FY26 guidance. Achieves net cash position with an updated capital management policy expected at its FY26 result in August. We upgrade to an ACCUMULATE (from HOLD) following recent weakness across the gold sector which we believe has uncovered value in a high-quality name, despite a strong share price reaction post the result.

Netwealth Group Ltd (ASX: NWL)

Another ASX share that Morgans has been looking at is Netwealth. In response to the investment platform provider’s quarterly update, the broker has retained its accumulate rating with a $29.00 price target.

The broker notes that although Netwealth’s fund under administration (FUA) fell short of expectations, this was due to market weakness. And with the market rebounding this month, it believes its FUA will have improved in the fourth quarter. It explains:

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

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

Nufarm Ltd (ASX: NUF)

Finally, Morgans was pleased with this agricultural chemicals company’s guidance for the first half of FY 2026. It notes that its earnings are slightly ahead of expectations and its balance sheet deleveraging is far better than expected.

As a result, it has reaffirmed its buy rating with a $4.05 price target. It said:

Pleasingly, NUF’s 1H26 EBITDA guidance was slightly higher than expected and it has had a strong 1H. Importantly, its leverage guidance is materially better than expected. Initial outlook comments for the 2H26 were positive and a new A$50m cost out program has been announced.

Given the appreciation in active ingredient and fish oil prices, NUF’s previous FY26 guidance could prove to be conservative. NUF is our key pick of the ag and chemical sector. The company is materially undervalued and we reiterate our BUY rating with a new price target of A$4.05.

The post Buy, hold, sell: Evolution Mining, Netwealth, and Nufarm shares appeared first on The Motley Fool Australia.

More reading

• Broker says this ASX 200 stock can deliver a 20% return
• 5 things to watch on the ASX 200 on Friday
• 4 ASX 200 shares newly upgraded this week
• This beaten-down ASX financial share is bouncing back fast today
• Why AMP, Life360, Netwealth, and Ora Banda shares are racing higher today

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

Shares in Eden Innovations Ltd (ASX: EDE) have jumped by a third after the company said it was launching a division focused on the defence sector.

In a statement to the ASX on Friday, the company said the new EdenShield division would aim to commercialise the company’s product suite across critical infrastructure and national security applications, including drones, data centres, bunkers, military bases, hospitals, and defence-related buildings.

High tech concrete a differentiator

This would involve using the company’s EdenCrete range of concrete additives for ultra-high performance concrete, and carbon nanotube (CNT) infused high strength lightweight plastics, as well as a dual-fuel diesel system for cheaper backup power generation.

Eden said EdenCrete could provide enhanced blast resistance, durability, and thermal performance, which was ideal for military requirements.

The company also had a range of CNT-enriched products including concrete, paint, and other coatings which offered superior electromagnetic pulse and radio frequency shielding capabilities.

These products could be used for protecting aircraft, drones, ships, equipment, and infrastructure “from electromagnetic interference (EMI), high-altitude EMP (HEMP) events, and intentional electronic warfare attacks that could disrupt or disable critical systems”.

On the fuel front, the company said:

OptiBlend, Eden’s long proven proprietary, dual-fuel technology extends backup power duration by up to 150%, by replacing up to 70% of the required diesel fuel with lower-cost natural gas, enhancing resilience of critical infrastructure such as military outposts, hospitals, and data centres. This dual-fuel technology solution used for 18 years offers significant benefits at a critical time for record-high fuel prices globally and has the potential to help mitigate spiralling fuel costs and add fuel versatility.

The company said the global aerospace and defence sectors were worth a combined US$900 billion currently, which was forecast to grow to more than US$2 trillion by 2034.

Key milestone

Eden Executive Chairman Greg Solomon said it was a pivotal turning point for the company.

The establishment of EdenShield represents a significant strategic step for Eden as we position our technologies to address the rapidly growing global demand for defence capability and infrastructure resilience. Our long-proven CNT-based solutions offer a significantly superior solution to the traditional products used in the construction and manufacturing of critical defence, military and infrastructure assets. Similarly, our dual fuel technology offers significant improvements to back-up power generation. The EdenShield launch comes at an opportune time for Eden to grow its market presence and offer increased protection and durability for these important industries critical to national security.

Eden shares were trading 6 cents higher at 24 cents, up 33.3%. The shares have been as low as 1.6 cents during the past 12 months.

The ASX small-cap company was valued at $104.1 million at the close of trade on Thursday.

The post Up more than 10-fold over the past year, this ASX small-cap stock just jumped another 33% appeared first on The Motley Fool Australia.

More reading

• Why this $2.8 billion ASX stock is climbing today
• Buy, hold, sell: Evolution Mining, Netwealth, and Nufarm shares
• Why Paladin Energy, Alcoa and Zip shares are making headlines on Friday
• Looking for another DroneShield? Check out this buy-rated ASX defence stock
• Oil jumps again. Here’s what the market is watching closely

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.

Paladin Energy Ltd (ASX: PDN), Alcoa Corp (ASX: AAI), and Zip Co Ltd (ASX: ZIP) shares are catching financial headlines today.

In morning trade on Friday, two of the S&P/ASX 200 Index (ASX: XJO) stocks are racing ahead of the 0.5% losses posted by the benchmark index at the time of writing, while one is trailing those losses.

Here’s what’s catching ASX investor interest.

Zip shares rocket on record quarterly earnings

Zip shares are racing higher today, up 11.7% and trading for $2.29 apiece.

This strong performance follows the release of the ASX 200 buy now, pay later (BNPL) stock’s third-quarter (Q3 FY 2026) results.

Highlights for the three months included a 22.4% year-on-year increase in total transaction volume (TTV) to $4 billion. And total income was up 20.2% from Q3 FY 2025 to $335.2 million.

Zip shares are also getting a boost with the company reporting record quarterly earnings. Earning before tax, depreciation and amortisation surged 41.5% year on year to $65.1 million.

This led management to upgrade Zip’s full-year FY 2026 cash EBTDA guidance to no less than $260 million.

Which brings us to…

Paladin Energy shares lift on production upgrade

Paladin Energy shares are also making news and enjoying a strong run today. Though not quite as strong as Zip shares.

Shares in the ASX 200 uranium stock are changing hands for $14.54 at the time of writing, up 2.7%.

Investors are bidding up Paladin Energy shares after the company released a positive operations and guidance update for its Langer Heinrich Mine (LHM).

Following an efficient ramp-up of LHM to full mining, and with 3.6 million pounds of uranium oxide produced so far in FY 2026, management increased full-year uranium production guidance to between 4.5 million and 4.8 million pounds. That’s up from previous guidance of 4.0 million to 4.4 million pounds.

Also likely helping boost Paladin Energy shares today, the company reduced its full-year capital and exploration expenditure guidance.

And finally…

Alcoa shares slide on revenue dip

Joining Paladin and Zip shares in the headlines today, but heading in the other direction, is Alcoa, which produces and sells bauxite, alumina, and aluminium products.

Alcoa shares are down 2.9% at the time of writing, swapping hands for $97.14 apiece.

Investors have been pressuring the ASX 200 stock following the release of its quarterly update.

While adjusted EBITDA, excluding special items, increased 13% quarter on quarter to US$595 million, alumina production fell 5%, impacted in part by Cyclone Narelle.

This led to a 7% quarter-on-quarter decline in revenue to US$3.2 billion.

The post Why Paladin Energy, Alcoa and Zip shares are making headlines on Friday appeared first on The Motley Fool Australia.

More reading

• Why are Zip shares rocketing 24% today?
• Paladin Energy shares are jumping 7% on big news
• Paladin Energy hikes FY2026 outlook after Langer Heinrich ramp-up
• Alcoa posts Q1 2026 result
• Zip Co posts record cash EBTDA and upgrades FY26 guidance

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.

DroneShield Ltd (ASX: DRO) shares have been an incredible investment over the past few years.

During this time, the counter-drone technology company has gone from being a relatively unknown small-cap ASX defence stock to a $3.3 billion ASX 200 share.

Investors may now be wondering which stock could follow in its footsteps. Well, let’s look at one defence stock that Bell Potter is tipping as a buy.

Which ASX defence stock?

The stock in question is Elsight Ltd (ASX: ELS).

It is a supplier of communication modules to drone manufacturers, offering advanced communication components for unmanned systems through its flagship product, the Halo platform.

This platform aggregates all available communication paths into one resilient, encrypted pipe for beyond visual line of sight (BVLOS) control, video and telemetry.

Bell Potter has been looking at trends in the drone industry and believes it points to strong demand for Elsight’s technology. It said:

US and Europe are severely lacking UAS production capacity when compared to Ukraine and adversaries. In a single instance, China ordered ~1m Kamikaze UAS for delivery in 2026. In comparison, the US reportedly procured 50k UAS annually prior to 2026. Governments globally have responded to this deficiency: (1) US budgets US$9.4b in FY26 for autonomous systems and seeks “Drone Dominance”; (2) US is fast-tracking procurement as highlighted by LUCAS, a reverse-engineered Shahed-136 copy, that went from prototype to combat deployment over Iran in seven months, signalling the US will procure expendable UAS at speed; and (3) Germany plans to invest €10.0b in UAS with contracts flowing.

EPS changes are +10%/+30%/+38% over CY26/27/28e, reflecting higher revenue due to our observation of greater than anticipated demand and production of non-FPV UAS in Europe, US and Ukraine; offset partially by higher install base attrition rates due to continued expected conflict. TP upgraded on higher free cash flows.

Should you invest?

According to the note, the broker has retained its buy rating on the ASX defence stock with an improved price target of $8.00 (from $5.80).

Based on its current share price of $6.80, this implies potential upside of 18% for investors.

Bell Potter concludes:

We retain Buy. We believe ELS has developed a market leading product that is leveraged to the proliferation of unmanned systems in both a defence and commercial context. We believe ELS shares offer relative value versus listed peers at 43x CY26e EV/EBIT given its recurring revenue, high ROIC business model and defensible niche. We expect the key driver for ELS shares will be revenue upgrades from OEM 1(>80% of CY25 revenue) production capacity expansion and BlueUAS list entry.

The post Looking for another DroneShield? Check out this buy-rated ASX defence stock appeared first on The Motley Fool Australia.

More reading

• Why DroneShield shares are roaring back after last week’s leadership shock
• What’s going on with the DroneShield share price?
• 3 ASX shares below $5 with huge potential
• Is now a good time to invest $5,000 into DroneShield shares?
• These are the 10 most shorted ASX shares

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

Oil prices moved higher overnight, with both major benchmarks extending recent gains as markets respond to shifting global signals.

West Texas Intermediate (WTI) crude is up about 2% to US$93.19 per barrel. Brent crude has climbed roughly 3% to US$98.01 per barrel. Both are now trading near the upper end of their recent ranges.

The move adds to a strong run over the past year. WTI is up roughly 45% over 12 months, while Brent has gained 44% over the same period. Prices have also lifted from levels closer to US$60 per barrel late last year.

Here’s what the market is focused on.

Geopolitical risk remains front of mind

Recent price action has been closely tied to developments in the Middle East.

Ongoing tensions in the region have kept attention on key oil transit routes, including the Strait of Hormuz. Reports indicate markets are reacting to changing expectations around potential disruptions.

The Strait of Hormuz remains one of the world’s most important oil shipping routes, handling a large share of global exports each day.

At the same time, news headlines around ceasefire discussions and negotiations continue to shift sentiment. Prices have moved in both directions as updates emerge, showing how quickly expectations are being repriced.

Inventory data adds another layer

Alongside geopolitical developments, recent supply data has also supported prices.

Latest figures show US crude inventories fell by 9.13 million barrels last week. That contrasts with expectations for a modest build of around 154,000 barrels.

The drawdown follows a period of inventory increases and points to a tighter near-term supply outlook. Moves in oil have tracked closely with these updates, adding to upward pressure in recent sessions.

Prices remain elevated despite mixed short-term moves

While prices have moved higher overnight, recent performance has been mixed.

WTI is down 3% over the past month, showing how quickly sentiment has shifted. Even so, both WTI and Brent remain well above levels seen earlier this year.

Recent trading data also shows that WTI briefly moved above US$95 per barrel during the latest rally before easing slightly, while Brent has held closer to US$98.

What the latest move reflects

There have been no confirmed large-scale supply disruptions in the latest updates.

Even so, prices remain elevated as markets continue to factor in potential risks and react to incoming data.

That keeps oil highly sensitive to new information, with pricing adjusting quickly as expectations change.

Prices suggest traders are still accounting for disruption risk, even though supply has not been materially affected.

The post Oil jumps again. Here’s what the market is watching closely appeared first on The Motley Fool Australia.

More reading

• Guess which ASX 300 energy stock is surging today on big AGL news
• Why are Zip shares rocketing 24% today?
• Paladin Energy shares are jumping 7% on big news
• Is the Telix share price heading to $19? This broker thinks it is
• Broker says this ASX 200 stock can deliver a 20% return

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.

The S&P/ASX 300 Index (ASX: XKO) is down 0.2% in morning trade on Friday, but that’s not holding back this surging ASX 300 energy stock.

Today’s outperformance follows news of a sales agreement with Australian electricity provider AGL Energy Ltd (ASX: AGL).

Any guesses?

If you said Amplitude Energy Ltd (ASX: AEL), go to the head of the virtual class.

Amplitude Energy shares closed yesterday trading for $1.72. At time of writing, shares are changing hands for $1.83 apiece, up 6.4%.

Currently trading for $9.45 each, AGL shares are down 0.5% at this same time.

Here’s what’s catching investor interest.

ASX 300 energy stock jumps on AGL gas sales deal

Amplitude Energy shares are leaping higher after the ASX 300 energy stock announced that it has executed a binding Foundation Gas Sales Agreement (GSA) with AGL.

Covering an initial four-year term, the deal would see Amplitude supply AGL with 20 petajoules (PJ) of gas from its East Coast Supply Project (ECSP).

The price Amplitude Energy receives for that gas will be linked to prevailing market rates for oil prices. Management is targeting first supply in the second half of 2028.

The ASX 300 energy stock noted that its sales agreement with AGL depends on its current ECSP drilling campaign confirming enough gas reserves and production capacity.

What did management say?

Commenting on the deal that’s helping boost the ASX 300 energy stock today, Amplitude Energy managing director and CEO Jane Norman said, “We are delighted to extend our long-term partnership with AGL Energy through this Foundation GSA for the ECSP.”

According to Norman:

AGL Energy has been a key supporter of Amplitude Energy, including as a foundation buyer from the Sole gas project. This GSA reflects the strong demand we are seeing for reliable, domestic gas supply in Southeast Australia, as well as both parties’ confidence in the ECSP.

“This agreement supports AGL’s strategy to secure reliable, long-term domestic gas supply and underpin new production to market,” AGL chief commercial officer David Moretto said.

Moretto added:

Gas remains essential in firming large scale renewables and supporting customers through the transition, particularly in South East Australia. It reflects our disciplined approach to contracting that underpins system reliability and customer outcomes.

How have AGL and Amplitude Energy shares been tracking?

It’s been a volatile year for both Amplitude Energy and AGL shares.

With more downs than ups, the AGL share price has dropped 8% over the past 12 months.

Amplitude Energy shares remain down 10% since this time last year.

The post Guess which ASX 300 energy stock is surging today on big AGL news appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: AGL, Origin Energy, and Woodside shares
• Why are AGL shares rising today?
• AGL Energy gives green light to $490m Kwinana gas project
• Down 40% last week, are Amplitude Energy shares now a buy?
• Why this sold-off ASX energy stock could rise 60%+

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.

Zip Co Ltd (ASX: ZIP) shares are on the move on Friday morning.

At the time of writing, the buy now pay later provider’s shares are up 24% to $2.54.

This follows the release of its third quarter update before the market open.

Zip shares rocket on results day

Investors have been buying the company’s shares following the release of a quarterly update which revealed strong growth and an upgrade to guidance.

According to the release, Zip delivered record cash EBTDA of $65.1 million for the third quarter. This represents a 41.5% increase on the prior corresponding period.

This was underpinned by total transaction volume growth of 22.4% year on year to $4.0 billion, and total income growth of 20.2% to $335.2 million.

Importantly, the company also reported operating margin expansion to 19.4%, up from 16.5% a year earlier.

US performance a key highlight

A major focus for investors is likely to be Zip’s US business, which continues to drive its overall growth.

The company reported that US total transaction volume grew strongly, increasing 43.1% year on year on a constant currency basis.

Encouragingly, US net bad debts remained steady at 1.86% of transaction volume, despite broader growth in the business.

This appears to align with expectations that the company would be able to maintain credit quality while scaling its operations.

However, at a group level, net bad debts increased to 1.9% of transaction volume, up from 1.6% a year ago.

Margins and profitability are improving

Zip also highlighted strong unit economics during the quarter. Its cash net transaction margin remained stable at 3.9%, while operating leverage helped drive profitability higher.

The company’s active customer base grew year on year to 6.5 million, and the number of merchants on its platform increased 12.7% to 93,900. However, it is worth noting that active customers are down from 6.6 million at the end of December.

Management pointed to deeper customer engagement and disciplined execution as key drivers of the performance.

Zip’s CEO and managing director, Cynthia Scott, said:

Zip’s resilient business model continues to drive increased profitability at scale, delivering record cash earnings of $65.1m, up 41.5% year on year. Operating margin expanded 292bps to 19.4%, reflecting strong unit economics and significant operating leverage. Momentum continued across both markets, underpinned by deepened customer engagement and disciplined execution.

In the US, TTV growth accelerated to 43.1% (in USD) year on year while active customers grew 9.0% (+375k), merchants on the platform increased 17.9%, and the business expanded its Pay-in-Z offering through the launch of Pay-in-2. We achieved these outcomes while holding credit losses steady within our target range, with US credit losses forecast to decline in 4Q26 to below 1.75% of TTV.

Guidance upgraded

Giving Zip shares a boost today is news that it has upgraded its FY 2026 guidance following the strong third quarter.

The company now expects group cash EBTDA of at least $260 million for the full year, reflecting confidence in continued momentum. This compares to its previous guidance of approximately $248.6 million.

It also reaffirmed expectations for strong US growth, targeting transaction volume growth of more than 40% in that market.

Scott commented:

Following a strong third quarter performance, we have upgraded our FY26 Group cash EBTDA guidance to be no less than $260.0m, while reconfirming each of our FY26 target ranges.

The post Why are Zip shares rocketing 24% today? appeared first on The Motley Fool Australia.

More reading

• Zip Co posts record cash EBTDA and upgrades FY26 guidance
• ASX 200 shares with renewed buy ratings this week
• 5 things to watch on the ASX 200 on Friday
• Why are Zip shares flying 9% higher today?
• Top brokers name 3 ASX shares to buy today

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.

Paladin Energy Ltd (ASX: PDN) shares are catching the eye of investors on Friday.

In morning trade, the ASX 200 uranium stock is up 7% to $15.10.

This compares favourably to the performance of the ASX 200 index, which is down 0.15% at the time of writing.

Why are Paladin Energy shares jumping?

Investors have been bidding Paladin Energy shares higher today after it released an update on its operations and guidance for the Langer Heinrich Mine (LHM) in FY 2026.

According to the release, the LHM ramp-up and transition to full mining operations has progressed well during the first nine months of FY 2026.

Management notes that the combination of successful mobilisation of the mining fleet, improved feed grade, and high recovery rates from the processing plant have resulted in year-to-date FY 2026 production of 3.6Mlb U3O8.

As a result of the strong performance in the first three quarters of FY 2026, management has decided to update its guidance.

It now expects U3O8 production of 4.5Mlb to 4.8Mlb. This is up from its previous guidance range of 4Mlb to 4.4Mlb.

What else?

Management advised that LHM has recorded 3.0Mlb U3O8 in sales in the first nine months of FY 2026. Despite the upgraded production guidance, full year sales guidance remains unchanged. It continues to expect sales of 3.8Mlb to 4.2Mlb for the year.

In addition, it revealed that its cost of production is expected to materially align with previous guidance of US$44 per pound to US$48 per pound. However, this is pending the duration of the current conflict in the Middle East and any further associated impacts on forecast cost.

One thing that is changing is its capital and exploration expenditure guidance range. It has been reduced to US$15 million to US$17 million (from US$26 million to US$32 million). This is due to the reprioritisation and deferral of capital and exploration expenditure.

However, once again, management warned that “the revised guidance is based on current operating conditions and assumptions and may be impacted by disruptions arising from current geopolitical events. Paladin is closely monitoring the potential impact of these events.”

It also reiterated that “Paladin continues to expect LHM to transition to full mining and processing plant operations by the end of FY2026.”

Following today’s move, Paladin Energy’s shares are up over 200% since this time last year.

The post Paladin Energy shares are jumping 7% on big news appeared first on The Motley Fool Australia.

More reading

• Paladin Energy hikes FY2026 outlook after Langer Heinrich ramp-up
• ASX 200 shares with renewed buy ratings this week
• 3 ASX 200 titans charging to new one-year-plus highs today
• Why is this ASX energy stock racing 7% higher today?
• Paladin Energy shares: Judicial review challenges EIS approval

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.

Now could be a good time to buy Telix Pharmaceuticals Ltd (ASX: TLX) shares.

That’s the view of analysts at Bell Potter, who are tipping the radiopharmaceuticals company as a top buy this week.

What is the broker saying?

Bell Potter notes that Telix has announced the refinancing of its convertible note facility. It is pleased with the decision and believes it removes an overhang on its shares. It explains:

TLX has refinanced its A$650m convertible note (CN) facility with a freshly negotiated US$600m CN facility. The major advantage for TLX is the long term deferral of the pending investor put option on the original facility. The put option had an exercise date in July 2027 with the share price currently well below the estimated conversion price of A$24.75, hence it is reasonable to believe note holders could have taken cash rather than continue to hold the notes. The refinance has been completed to remove this overhang, providing shareholders with greater certainty.

The expanded principal balance also provides the company with greater flexibility on its future funding requirement. The new facility also has a 5- year term with a put option after 3 years and coupon of 1.5%. The use of debt to partly fund the drug development program remains a higher risk strategy. Approval of both Pixclara and Zircaix later this year remain important catalysts for note holders. The key risk is the prospect of further delays to approvals which would inevitably cause earnings downgrades and downward pressure on the share price.

The broker was also pleased with news that Telix has signed a co-development and co-commercialisation agreement with Regeneron Pharmaceuticals Inc (NASDAQ: REGN). It adds:

The CN refinance comes fast on the heels of the co-development and co-commercialisation deal with Regeneron announced earlier this week. Regeneron are a tier one pharma company in the US with revenues exceeding US$14bn in 2025 and market cap of US$80bn. Nevertheless, Regeneron is like most other large pharma – seeking to replace lost revenues from recent patent cliffs.

It does not currently have revenues from any molecularly target radiation, however, it does have a large oncology franchise. TLX will receive a US$40m upfront fee which we expect it will amortise over several years. First indication could include a combination with Regeneron’s Libtayo for the treatment of Non-small Cell Lung Cancer.

Are Telix shares heading to $19?

According to the note, the broker has retained its buy rating and $19.00 price target on Telix’s shares.

Based on its current share price of $15.00, this implies potential upside of almost 27% for investors over the next 12 months.

The broker concludes:

TP remains unchanged at $19.00. No changes to revenues. FY26 EBITDA is increased by $8m being the estimated FY26 revenue from the Regeneron agreement. There are minor changes to the finance charge in line with revised terms on the CN facility. We retain our Buy rating.

The post Is the Telix share price heading to $19? This broker thinks it is appeared first on The Motley Fool Australia.

More reading

• Why Boss Energy, Telix, Woodside, and Yancoal shares are falling today
• Why are Telix shares sinking 7.5% today?
• Telix Pharmaceuticals upsizes convertible bonds to US$600 million
• Telix Pharmaceuticals Investor Presentation: 56% FY25 revenue growth, pipeline advances
• 5 things to watch on the ASX 200 on Wednesday

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 Regeneron Pharmaceuticals and Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Netwealth Group Ltd (ASX: NWL) shares have been strong performers this week.

Thanks partly to the release of a strong quarterly update, the investment platform provider’s shares are up 14% since this time last week.

The good news is that Bell Potter doesn’t think it is too late to invest. Let’s see what it is saying.

What is the broker saying?

Bell Potter was pleased with the ASX 200 stock’s update and the progress the company is making. It said:

NWL has delivered a positive trading update, detailing its strongest net inflow growth since this time last year, and ahead of expectations. All client segments contributed to the result, driven by existing financial intermediaries.

To that end, we consider First Guardian as complete, with strong retail flows experienced, and no signs of account churn were offered. Distribution capabilities have also been upgraded with senior hires from other platform providers. The broker solution is progressing and on track for release with clarity around timing. We view this as a strong opportunity and catalyst.

While Netwealth’s funds under administration (FUA) were a touch softer than expected, this was driven by market movements. In addition, Bell Potter notes that markets have since rebounded strongly, reversing this. It said:

NWL reported total FUA of $125.8bn against our $129.7bn estimate, which was flat QOQ and driven by a -$3.7bn market movement, which equates to -3.0% of opening. Subsequent strong positive mark-to-market impacts have reversed most of this. The local share market has advanced +5.7% while offshore indices are up +6.4%. After the dilutive impact of USD depreciation returns would be similar.

NWL continues to demonstrate a strong pipeline with record R12M net account openings and 41 new adviser relationships. This figure is usually provided each half-year. A similar level of managed account models were added during the quarter. About 30% of net inflows are directed into these. Finally, the broker solution is now expected for July release.

Should you buy this ASX 200 stock?

According to the note, Bell Potter has retained its buy rating and $30.00 price target on the ASX 200 stock.

Based on its current share price of $25.22, this implies potential upside of 19% for investors over the next 12 months.

In addition, a 1.7% dividend yield is expected over the period. This would lift the total potential return beyond 20%.

Commenting on its buy recommendation, the broker said:

Following the update, we have downgraded our EPS estimates -1% contained within FY27 and driven by steadier average FUA balances and take-rates. Our Buy rating is unchanged. NWL has de-rated to trade on 28x forward EBITDA consistent with prior risk off environments and compares to 33x through-the-cycle. We would expect the earnings catalysts and sentiment exposure to drive enhanced shareholder returns.

The post Broker says this ASX 200 stock can deliver a 20% return 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 Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.