Author: openjargon

Life360 Inc (ASX: 360) shares had a difficult session on Tuesday.

The family safety and location technology company’s shares crashed deep into the red following the release of its first-quarter update and a tech sector selloff.

Does this make the tech stock a bargain buy now? Let’s find out what Bell Potter is saying.

What is the broker saying about Life360 shares?

Bell Potter highlights that Life360’s first-quarter update revealed beats across everything but monthly active users (MAUs). However, the latter was impacted by a technical issue on Android devices, which has since been resolved. It said:

1Q2026 revenue and adjusted EBITDA of US$143.1m and US$17.1m were 4% and 18% ahead of our forecasts and 4% and 14% ahead of VA consensus. The key positive of the result was the strong paying circle growth of 201k q-o-q which was more than double our forecast of 99k and well ahead of VA consensus of 109k. The key negative was the MAU growth of only 2.0m q-o-q which was well below our forecast of 2.6m and further below VA consensus of 3.1m.

On the conference call, CEO Lauren Antonoff said the MAU growth in Q1 was negatively impacted by “technical issues” and these have now been largely resolved though there will still be some impact in Q2. The company also disclosed advertising revenue for the first time which was US$19.7m in Q1 and ahead of our forecast of US$18.2m.

It was also pleased to see management upgrade its revenue and earnings guidance. It adds:

Life360 upgraded its 2026 revenue and adjusted EBITDA guidance from US$640- 680m and US$128-138m to US$650-685m and US$130-140m. The company did, however, reduce the MAU growth guidance from 20% to 17-20%. The bottom end of that range requires average growth of 4.8m in each of the next three quarters – versus 2.0m in Q1 – while the top end requires 5.7m.

Big potential returns

According to the note, the broker has retained its buy rating on Life360 shares with a slightly trimmed price target of $32.50 (from $35.50).

Based on its current share price of $17.92, this implies potential upside of 81% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter concludes:

We have reduced the multiple we apply in the EV/EBITDA valuation from 35x to 30x and also increased the WACC we apply in the DCF from 9.5% to 9.6% for conservatism and the continued general weakness in the tech sector. The net result is an 8% decrease in our TP to $32.50 and we maintain our BUY recommendation. There is perhaps a lack of short term catalysts but we do see sequential improvement each quarter in revenue and EBITDA for the remainder of the year.

The post Does Bell Potter think the Life360 share price is dirt cheap? appeared first on The Motley Fool Australia.

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• Life360 Q1 2026 earnings: revenue climbs, advertising growth stands out

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 300 Index (ASX: XKO) rare earths stock Arafura Rare Earths Ltd (ASX: ARU) is charging higher today.

Arafura shares closed yesterday trading for 33 cents. In early morning trade on Wednesday, shares are swapping hands for 35 cents apiece, up 6.1%.

For some context, the ASX 300 is down 0.6% at this same time.

With today’s intraday gains factored in, Arafura Rare Earths shares are now up 105.9% in 12 months, smashing the 4.1% one-year gains delivered by the benchmark index.

Here’s what’s catching investor interest today.

ASX 300 rare earths stock leaps on offtake agreement

Arafura Rare Earths shares are in the green today after the company announced that it had signed a binding offtake term sheet with Traxys North America.

Traxys is a global physical trader and merchant in the metals and natural resources sectors.

Under the agreement, Arafura Nolans Project (a wholly owned subsidiary of the ASX 300 rare earths stock) will supply Traxys with 500 tonnes a year of neodymium-praseodymium (NdPr) oxide.

The supply agreement is for five years, with the companies having the option to extend this by two years if they both agree to do so.

The price Arafura Rare Earths receives for its NdPr oxide will be linked to an independent and transparent global seaborne index. Traxys will make payment in US dollars, leaving total revenue in Aussie dollars subject to foreign exchange moves.

What did Arafura management say?

Commenting on the offtake agreement helping boost the ASX 300 rare earths stock today, Arafura managing director Darryl Cuzzubbo said, “We have long believed that the right partners would define the quality and durability of Arafura.”

Cuzzubbo added:

The offtake relationships we have established are not just transactional arrangements. They reflect growing alignment between industry participants and government-supported initiatives aimed at establishing resilient critical minerals ecosystems as an imperative, not merely an opportunity.

As we advance this strategic agreement, we achieve another milestone in delivering the company’s broader long-term offtake objectives and financing strategy in support of a future investment decision.

The ASX 300 rare earths stock said it expects to finalise and execute a long form offtake agreement prior to the sunset date, which is six months from the execution of the term sheet.

The agreement remains subject to customary conditions, which include Arafura undertaking a Final Investment Decision (FID) for the Nolans Project.

Nolans is planned to be among Australia’s first ore-to-oxide rare earths processing facilities. Located in the Northern Territory, Nolans would provide a critical source of rare earths outside of China.

The post Up 106% in a year, why is this ASX 300 rare earths stock leaping higher again today? appeared first on The Motley Fool Australia.

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• Why did this ASX 300 stock just crash 15% to a 52-week low?
• Which ASX 200 mining services provider is charging higher on a big contract win?
• Does Bell Potter think the Life360 share price is dirt cheap?
• Why are CBA shares crashing 8% today?
• Fortescue shares push higher despite order to pay Yindjibarndi $150m damages

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.

Commonwealth Bank of Australia (ASX: CBA) shares are under pressure on Wednesday.

In morning trade, the banking giant’s shares are down over 8% to $157.16.

Why are CBA shares crashing?

Investors have been selling the big four bank’s shares today following the release of a quarterly update.

For the three months ended 31 March, CBA revealed that operating income was flat on the first-half quarterly average, with higher net interest income offset by lower other operating income.

Net interest income rose 1%, supported by lending and deposit volume growth, earnings on the replicating portfolio, and higher deposit margins. This was partly offset by cash rate lag, competition in home and business lending, the weaker New Zealand dollar, and two fewer days in the quarter.

Operating expenses rose 1%, excluding restructuring and notable items. This was due largely to higher cloud computing volumes, software licensing, and investment in artificial intelligence capabilities.

On the bottom line, the bank reported unaudited statutory net profit after tax of approximately $2.6 billion and unaudited cash net profit after tax of approximately $2.7 billion.

Cash profit was down 1% on the first-half quarterly average but up 4% on the prior corresponding quarter.

Lending and deposits grow

CBA revealed that it continued to grow across key lending and deposit categories.

For the 12 months to March 2026, home loan balances increased by $41 billion, household deposits rose by $38 billion, and business lending grew by $21.6 billion.

The bank noted that business lending grew at 1.2 times system, household deposits at 1.1 times system, and home lending broadly in line with system.

Retail transaction accounts also increased by more than 170,000 during the quarter, mainly driven by new-to-bank account openings.

Provisions increased

One area the market has been watching carefully in this tough economic environment is provisioning.

CBA’s loan impairment expense was $316 million for the quarter. The bank increased the forward-looking component of collective provisions by $200 million to reflect heightened geopolitical and macroeconomic risks.

However, management said underlying portfolio credit quality remains sound, with actual losses still low.

Consumer arrears increased modestly, while corporate troublesome and non-performing exposures also moved higher during the quarter.

Management commentary

Commenting on the quarter, CBA’s CEO, Matt Comyn, said:

Many Australian households and businesses are navigating cost-of-living pressures from higher energy prices and interest rates. Conflict in the Middle East is disrupting critical supply chains and contributing to global uncertainty. As Australia’s largest bank, we are well placed to support our customers through this uncertain environment. Our balance sheet settings remain resilient with strong levels of capital, liquidity, deposit funding and provisioning in the context of economic and geopolitical uncertainty.

Our capital and liquidity ratios remain well above minimum regulatory requirements. Deposit funding represents 79% of total funding, and we are well progressed on our FY26 funding task, having raised A$32 billion in long-term wholesale funding to date. Notwithstanding an already strong level of provisioning, we have chosen to further top up our collective provisions in the quarter to reflect heightened macroeconomic risks. Our deliberate and long-term approach to balance sheet settings enables us to support our customers and the economy.

Speaking about the uncertain outlook, Comyn adds:

We are closely monitoring the impacts of the Middle East conflict and the broader macroeconomic environment. The Australian economy continues to demonstrate resilience, but supply chain disruptions, higher prices and interest rates are expected to weigh on household spending and business activity. We will continue to adjust our settings as appropriate and remain focused on executing our strategy to build a brighter future for all.

The post Why are CBA shares crashing 8% today? 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 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.

Fortescue Ltd (ASX: FMG) shares are rising on Wednesday morning.

At the time of writing, the mining giant’s shares are up 1.5% to $22.20.

Fortescue shares rise despite court loss

The miner’s shares are rising on Wednesday despite the release of an announcement after the market close yesterday relating to a court loss.

According to the release, the Federal Court has delivered its decision in relation to the Native Title Compensation Claim that was commenced by the Yindjibarndi Ngurra Aboriginal Corporation RNTBC back in 2022 relating to the Solomon Hub.

The Federal Court determined that Fortescue is liable to pay compensation to the Yindjibarndi Ngurra Aboriginal Corporation RNTBC.

It notes that the total amount for economic loss is anticipated to be in the vicinity of $100,000 plus interest and the total amount for cultural loss is $150 million. The latter is significantly more than the “figure of no more than $8 million” that Fortescue suggested was appropriate.

The Federal Court has advised that it will publish the reasons for its decision at a later date. Fortescue intends to review those reasons when available.

How does this compare to expectations?

The $150 million that the Federal Court has awarded is a lot less than the Yindjibarndi Ngurra Aboriginal Corporation RNTBC was seeking.

It contended that mining companies in the Pilbara typically agree to pay a 0.5% royalty to traditional owners for use of their land.

Based on this, it calculated its economic loss on the basis of a percentage of royalties until the end of the operational life of the project, which is expected to be in 2045, to be in excess of $800 million.

It also separately sought compensation of $1 billion for cultural loss that it has suffered from the grant of the mining tenements.

In response to the news, a Fortescue spokesperson stated:

Dr Andrew Forrest and Fortescue care deeply about all First Nations people, including the Yindjibarndi community. Fortescue accepts that the Yindjibarndi People are entitled to compensation. The Company has agreed to and pays financial compensation under all of its other seven native title agreements. Fortescue has strong relationships with the First Nations people of the Pilbara region of Western Australia, with dedicated Heritage, Native Title and Community teams working hand in hand with Traditional Custodians to ensure cultural heritage is managed sustainably and responsibly.

The post Fortescue shares push higher despite order to pay Yindjibarndi $150m damages 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 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.

Aristocrat Leisure Ltd (ASX: ALL) shares are on the move on Wednesday morning.

At the time of writing, the ASX 200 gaming technology stock is up 5% to $48.40.

ASX 200 stock charges higher on results day

Investors have been buying the company’s shares today following the release of its half-year results.

For the six months ended 31 March, Aristocrat reported normalised revenue of $3.03 billion. This was broadly flat on a reported currency basis but up 6.4% in constant currency.

The company’s largest division, Aristocrat Gaming, delivered revenue of $1.96 billion, which is up 4.9% on the prior corresponding period.

This was supported by strong outright sales growth and market share gains in North America and Australia and New Zealand. Its Gaming Operations installed base also expanded, with market share increasing to 43%.

Product Madness revenue fell 4.1% to US$546.2 million. However, this reflected the sale of the Social Casual business early in the half. Its Social Casino revenue increased 4.7% to US$541.7 million, with the division maintaining a 23% market share in the Social Casino Slots market.

Aristocrat Interactive revenue increased 6.5% to US$230.3 million, driven by iLottery and the continued scaling of content, particularly in North America. Management notes that this was partially offset by Platforms following the strategic decision to exit White Label.

Normalised EBITA increased 6.2% to $1.12 billion, or 14% in constant currency. Normalised net profit after tax rose 9.1% to $725.4 million, while normalised NPATA increased 8.4% to $794.0 million. On a constant currency basis, normalised NPATA was up a sizeable 16.3%.

The ASX 200 stock’s board declared an unfranked interim dividend of 50 cents per share. This is up 13.6% on the prior corresponding period.

In addition, the company revealed that it is increasing its on-market share buy-back program by $1 billion (up to $2.5 billion in aggregate) and extending it through to 12 May 2027.

Management commentary

Aristocrat’s CEO and managing director, Trevor Croker, said the result reflected disciplined execution and continued momentum across the business. He commented:

Aristocrat delivered a strong first half, with clear progress across the business and market share gains in key segments. Our earnings growth reflects disciplined execution, strong revenue momentum throughout our portfolio, and a continued focus on efficiency and extracting operating leverage.

This result once again highlights our market leadership and scale as fundamental strengths of the business. At the same time, we have maintained a balanced approach to capital allocation, returning capital to shareholders while investing strategically to strengthen our long-term growth and resilience.

Outlook

Looking ahead, no firm guidance has been given for FY 2026.

However, management advised that it “expects to deliver NPATA growth over the full year to 30 September 2026 on a constant currency basis.”

This reflects expectations for continued revenue and market share growth from Aristocrat Gaming, continued market share growth from Product Madness, and “accelerating performance at Aristocrat Interactive toward [its] FY29 US$1 billion Revenue Target.”

The post Aristocrat shares charge higher on strong result and $1b buy-back 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 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.

Develop Global Ltd (ASX: DVP) shares are falling on Wednesday morning.

In early trade, the ASX mining stock is down 2% to $6.05.

This follows the release of an announcement before the market open.

What did the ASX mining stock announce?

This morning, the mining and mining services company announced a major contract win.

The first contract is a $274 million contract from Core Lithium Ltd (ASX: CXO) to undertake all underground development and production activities at the Finniss Lithium Project in the Northern Territory.

The ASX mining stock notes that the contract has a minimum three-year term, with a two-year extension option, and is expected to generate steady-state annual revenue of $120 million.

The scope of work includes surface infrastructure and portal establishment at the BP33 mine and associated underground mining activities.

The company’s managing director, Bill Beament, said:

We are delighted to secure the Core Lithium contract, which again reflects the skills and depth of our first-class mining services team. We are also very pleased to add a lithium project of this quality and scale to our mining services portfolio, given its long mine life and strong fundamentals. We are currently preparing tenders for mining services opportunities and receiving extremely positive feedback from potential clients about the strength of our team and our approach to mining and contracting.

What else was announced?

The ASX mining stock separately announced that its contract with Bellevue Gold Ltd (ASX: BGL) will come to an end shortly.

It notes that completion of this contract will coincide with the scheduled start of underground mining at Core Lithium’s Finniss Lithium Project.

Management highlights that the demobilisation of the electrical infrastructure, fixed plant and mobile mining fleet at Bellevue Gold will release ~$50 million worth of capital that is scheduled to be redeployed throughout the Develop business.

As part of the demobilisation, Develop intends to retain the personnel it employed at Bellevue. It points out that this team includes some of the most skilled and experienced underground miners in Australia.

Beament commented:

We are operating in a very favourable contracting market and therefore it is important that we strike the right balance between delivering value for our clients and returns for our shareholders. We have built a world-class underground mining team and it is imperative that we protect margins, not only for our shareholders but also to ensure that we can continue to invest in the best people and the latest equipment for the benefit of our clients.

This means being selective in the contracts we take on and the terms on which we deliver our services. Our new contract with Core Lithium is ideally suited to our key strengths and will see us relocate highly experienced people from our Bellevue site to the Finniss project.

The post ASX mining stock drops despite big lithium news 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 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.

Australia’s major banks have long been the backbone of income portfolios, and the case for owning them remains compelling.

For decades, Australian income investors have turned to the big four banks as a reliable source of fully-franked dividends.

Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ) collectively pay out billions of dollars in dividends each year.

With a more supportive interest rate environment, this is unlikely to change anytime soon. 

The dividend picture today

Each of the big four currently offers a different yield proposition, giving investors a range of options depending on their priorities.

ANZ currently leads the pack on yield, offering investors a trailing dividend yield of around 4.5%, though it is worth noting that recent ANZ dividends have carried only partial franking credits. 

NAB and Westpac sit not far behind, trading on fully-franked yields of approximately 4.5% and 4.2%, respectively. 

CBA offers the lowest headline yield of around 3%, reflecting the premium valuation the market places on Australia’s largest bank.

But with the strongest growth profile of all big four banks, CBA is likely to grow its dividend meaningfully through to 2027. 

All banks have roughly similar payout ratios. 

When grossed up to include the value of franking credits, the effective yield on each of these banks rises materially, making them even more attractive for Australian taxpayers in higher tax brackets.

Why the outlook remains positive

The big four banks operate in one of the most stable and concentrated banking markets in the world.

Their oligopoly position, defined by deep customer relationships and a highly regulated environment, gives them a durable competitive advantage that few industries can match. 

Rate rises from the Reserve Bank of Australia should support near-term net interest margins, further boosting bank returns. 

A more stable economic environment could also encourage stronger credit growth, which would feed directly into bank revenues.

Franking credits remain a powerful advantage

One of the most compelling reasons Australian investors hold bank shares is the franking credit benefit.

For retirees in the zero tax bracket, franking credits effectively boost the cash return well above the headline dividend yield. 

This structural advantage is unique to Australian equities and makes the big four particularly attractive relative to international income alternatives.

Foolish Takeaway

The big four banks may not deliver explosive capital growth. 

But for investors seeking reliable, tax-effective income backed by some of the most profitable and resilient businesses, Commonwealth Bank, NAB, Westpac, and ANZ continue to deserve a place in any income-focused portfolio. 

The post Why the big four banks could keep delivering for income investors appeared first on The Motley Fool Australia.

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

The Paladin Energy Ltd (ASX: PDN) share price is in focus today after the company reported US$209.1 million in revenue for the nine months to 31 March 2026 and posted a US$1.7 million profit attributable to shareholders, marking a significant turnaround from the prior period’s loss.

What did Paladin Energy report?

• Revenue: US$209.1 million for the nine months to 31 March 2026 (up from US$138.2 million year-on-year)
• Gross profit: US$34.4 million (vs. US$21.7 million loss in pcp)
• Net profit after tax (NPAT): US$1.7 million attributable to shareholders (up from a loss of US$30.1 million in pcp)
• Operating cash flow: Outflow of US$36.4 million (compared to an inflow of US$14.0 million in pcp)
• Unrestricted cash and short-term investments: US$219.5 million at period end
• Basic earnings per share: 0.4 US cents (vs. loss of 8.9 US cents in pcp)

What else do investors need to know?

Paladin strengthened its balance sheet during the period, completing a A$400 million equity raise and a share purchase plan to support the Patterson Lake South (PLS) project and the ramp-up of the Langer Heinrich Mine in Namibia. The company also restructured its syndicated debt facility, reducing debt capacity from US$150 million to US$110 million and securing a US$70 million undrawn revolving credit facility, providing added financial flexibility.

There was an impairment of US$3.3 million on exploration assets following the relinquishment of certain Canadian tenements as the group continues to streamline its project portfolio. The current unrestricted cash position of US$219.5 million and undrawn debt facility highlight Paladin’s ongoing focus on financial resilience and project development.

What’s next for Paladin Energy?

Looking ahead, Paladin’s focus is on progressing the PLS project in Canada towards a final investment decision while ramping up uranium production at Langer Heinrich. The company expects to leverage a strong contract book, flexible pricing, and robust cash reserves to support its growth strategy.

Ongoing management of exploration tenements and disciplined capital allocation will remain key themes. The company continues to monitor legal proceedings related to a shareholder class action but notes no significant post-balance date events.

Paladin Energy share price snapshot

Over the past 12 months, Paladin Energy shares have risen 99%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Paladin Energy posts profit as revenue rebounds in FY26 earnings appeared first on The Motley Fool Australia.

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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.

Inghams Group (ASX: ING) shares are in focus after starting the week strong.

Inghams is a leading vertically integrated poultry producer (from stock feed to end products) with a market leading position in Australia and the number two participant in New Zealand.

It supplies poultry products, notably to major Australian supermarkets Woolworths and Coles, and quick-service restaurants including McDonalds and KFC.

Share price snapshot

Inghams shares were in a free fall up until last week. 

From the start of January until close of trade last Friday, the poultry producer’s shares had fallen 32%. 

However on Monday, Inghams shares jumped almost 7%, followed by a further 8% rise yesterday. 

Investors reacted positively to an update from the company that included: 

• Reaffirmed FY26 guidance for Underlying EBITDA (pre AASB 16) of $180 million to $200 million
• For the first nine months of FY26, group core poultry volumes rose 1.1% versus prior comparable period (PCP)
• Group core poultry net selling prices increased 1.1% versus PCP
• Annualised cost savings initiatives expected to deliver $60–80 million
• Revised capital expenditure guidance of approximately $80 million for FY26. 

Chief Executive Officer and Managing Director said Ed Alexander said:

We are seeing improved operational performance and positive momentum from initiatives already delivered, while reaffirming our FY26 guidance in a challenging environment.

What is Bell Potter’s view?

Following this impressive 15% rise, investors may be wondering if the tide has officially turned after a rough few months. 

The team at Bell Potter have subsequently raised their EBITDAL (Earnings Before Interest, Taxes, Depreciation, and Amortisation and Leases) forecasts by +4% in FY26e, +6% in FY27e and +9% in FY28e. 

Upgrades are reflective of higher baseline EBITDAL in the Australian business through 3Q26e and incorporation of targeted initiatives in FY27-28e. Our target price is now $2.10ps (prev. $2.00ps).

Modest upside for Inghams shares

Based on this updated price target of $2.10, this indicates an upside potential of just over 7% from current levels. 

The underlying 3Q26 exit rate in Australia looked strong, and for the most part this mitigates the estimated 4Q26 impact of rising fuel costs. Looking into FY27e, cost out initiatives are likely to blunt some of the impact of inflationary costs pressures in area such as labour, fuel, packing and feed, with the key area of risk being any material rotation in channel to market or supply growth.

The post Are Inghams shares a buy, hold or sell after jumping 15% this week? appeared first on The Motley Fool Australia.

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

Shares in Woodside Energy Group (ASX: WDS) have pulled back 7% over the past month, but the bigger picture still looks impressive for shareholders.

The ASX energy giant remains up around 30% year to date and has surged roughly 48% over the past 12 months.

Much of that rally has been driven by volatile oil markets. Brent crude prices have swung sharply with every new Middle East strike, peace negotiation headline or ceasefire rejection.

But after such a strong run, one expert believes investors may want to consider locking in some profits.

Oil and gas prices drive the rally

Woodside is one of Australia’s largest oil and gas producers, with operations spanning liquefied natural gas (LNG), oil and offshore energy projects.

The company generates revenue by producing and selling energy products into global markets, making earnings heavily tied to commodity prices.

That dynamic has worked strongly in Woodside’s favour recently. Higher oil and gas prices have boosted realised selling prices and strengthened cash generation, helping drive the Woodside share price rally over the past year.

Woodside’s first-quarter FY26 update highlighted that trend clearly. The company reported a 7% quarter-on-quarter increase in operating revenue to US$3.26 billion despite production falling 8% to 45.2 million barrels of oil equivalent due partly to heavy rainfall disruptions.

Importantly, Woodside’s average realised price rose 11% to US$63 per barrel equivalent during the quarter, helping offset weaker production volumes.

Risks remain elevated

However, investing in energy stocks like Woodside shares always comes with significant risks.

Commodity prices remain highly volatile and are heavily influenced by geopolitical tensions, global economic growth and supply disruptions.

If oil prices retreat sharply, Woodside’s earnings and dividends could quickly come under pressure.

The company also faces operational risks tied to weather events, project execution and rising costs.

Longer term, the global energy transition toward renewables also creates uncertainty around fossil fuel demand growth.

Analysts remain divided

Broker sentiment towards Woodside shares remains mixed.

According to TradingView data, seven of 14 analysts currently rate the stock as a hold. Five analysts have buy ratings, while two recommend selling.

The average 12-month price target currently sits around $33 per share, implying roughly 7% upside from current levels. The most bearish analyst forecast suggests downside of around 21%, while the most bullish implies potential upside of roughly 41%.

Why one expert says sell

Over at Sanlam Private Wealth, Remo Greco, has named Woodside shares as a sell.

The investment firm believes investors may want to take advantage of elevated crude oil prices and recent share price strength to cash in some gains.

Commenting on Woodside shares Greco said (courtesy of The Bull):

The energy company produced a record 198.8 million barrels of oil equivalent in full year 2025. However production was offset by lower realised prices. Consequently, net profit after tax of $2.718 billion was down 24 per cent on the prior corresponding period. Full year fully franked dividends were down 8 per cent. In our view, relying on dividends carries risk if commodity prices or production fall. Investors may want to take advantage of elevated crude oil prices to cash in some gains.

The post Here’s why this expert is calling time on Woodside shares appeared first on The Motley Fool Australia.

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