Author: openjargon

S&P/ASX 200 Index (ASX: XJO) shares are 1.1% lower on Thursday amid no progress on negotiations between the US and Iran.

Meantime, brokers have indicated a changed view on several ASX 200 shares, and have upgraded their ratings.

Let’s check them out.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is $19.46, down 1.6% today.

Over the past month, this ASX 200 copper share has ripped 16%.

UBS upgraded Sandfire Resources shares to a hold rating this week.

The broker increased its 12-month price target from $16.75 to $20.

This implies just 3% upside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price is $12.21, down 3.4% today.

Over the past year, this ASX 200 gold share has climbed 39%.

UBS upgraded Evolution shares to a buy rating this week.

The broker upped its price target from $13.80 to $14.

This suggests a potential 15% upside ahead.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is $34.84, up 0.6% today.

Over the past six months, this ASX 200 consumer staples share has recovered 18%.

JP Morgan upgraded Woolworths shares to a buy rating this week.

The broker lifted its 12-month price target from $35 to $37.

This implies a potential 6% upside ahead.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $78.13, up 0.7% today.

The market’s largest consumer discretionary share has lifted 8% over the past month.

Morgans upgraded Wesfarmers shares to a buy rating with an $81.10 price target on Monday.

This indicates possible growth of 4% over the next year. 

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is $11.41, up 0.4% today.

Over the past six months, this ASX 200 uranium share has leapt 40%.

Macquarie upgraded the stock to a buy rating with a $13.25 target this week.

This suggests potential capital growth of 16% over the next year. 

National Australia Bank Ltd (ASX: NAB) 

The NAB share price is $37.05, down 1.9% today.

The ASX 200 bank share has fallen 13% in 2026.

Citi upgraded NAB shares to a hold rating this week.

The broker reduced its 12-month price target from $39.25 to $37.40.

This suggests almost no capital growth ahead.

The post 6 ASX 200 shares just upgraded by the experts appeared first on The Motley Fool Australia.

More reading

• Why Wesfarmers shares remain the gold standard of ASX retail investing
• 2 ASX dividend shares I’d buy for reliable passive income
• This ASX bank ETF has a 5.2% dividend yield right now
• 3 reasons to buy Woolworths shares at $34
• ASX 200 rises as inflation surprise leaves investors with one big question

Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen 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 JPMorgan Chase, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group and Woolworths Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) is down 1.1% in afternoon trade today, but that’s not holding back this surging small-cap ASX energy stock.

The fast-rising stock in question is Invictus Energy Ltd (ASX: IVZ).

Invictus Energy shares closed yesterday trading for 6.7 cents. In earlier trade on Thursday, shares leapt to 10.5 cents apiece, up 56.7%. After some likely profit taking, at time of writing shares are swapping hands for 8.1 cents each, up 20.9%.

Here’s what’s grabbing investor interest.

ASX energy stock rockets on Zimbabwe news

The Invictus share price is off to the races after the company announced that it has executed a milestone petroleum production sharing agreement (PPSA) with the Republic of Zimbabwe.

The agreement was inked by Geo Associates, which is 80% owned by the ASX energy stock.

Geo Associates is the operator and holder of Special Grant 4571 in Zimbabwe, which contains the Mukuyu gas-condensate discovery within Invictus Energy’s Cabora Bassa licence area.

The ASX energy stock said the agreement establishes a strong legal, fiscal, and operational framework governing the Cabora Bassa Project, providing investment protection, contract stability, and development support mechanisms.

And both Zimbabwe’s government and citizens could benefit under the agreement, with direct participation in the project’s profits as well as royalties and corporate taxes,

What did Invictus management say?

Commenting on the deal sending the ASX energy stock soaring today, Invictus CEO Scott Macmillan said, “Execution of the Petroleum Production Sharing Agreement represents a landmark milestone for both the Cabora Bassa Project and the broader development of Zimbabwe’s oil and gas industry.”

Macmillan added:

The PPSA establishes a robust, transparent and globally competitive framework that provides long term certainty for all stakeholders, while creating a strong foundation to accelerate development activities across the basin.

Looking to what’s next for the ASX energy stock, he concluded:

With this critical framework now in place, the company is firmly focused on advancing the next phase of exploration, appraisal and development activities, including the upcoming high impact Musuma-1 exploration well.

“The Cabora Bassa Project has the potential to become transformational for Zimbabwe through energy security, industrial development, employment creation and broader economic growth,” Zimbabwe’s minister of finance, economic development and investment promotion, Mthuli Ncube, said.

Ncube added:

This agreement creates a balanced and aligned framework that supports investor confidence while ensuring that Zimbabwe and its citizens directly participate in the long-term success of the project.

Zimbabwe’s minister of mines and mining development, Polite Kambamura, concluded, “Through this agreement, Zimbabwe has established a framework that balances investor confidence with national participation and long-term value creation for the country.”

The post Guess which ASX energy stock is surging 57% today on huge African news appeared first on The Motley Fool Australia.

More reading

• Should you buy AGL and Origin Energy shares?
• Buy, hold, sell: Kingsgate, Metcash, Woodside shares
• 6 ASX 200 shares just upgraded by the experts
• Why Eagers Automative, Endeavour, IPH, and Newmont shares are sinking today
• Why Temple & Webster, Web Travel and Guzman Y Gomez shares could have even further to fall

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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on track to record a disappointing decline. At the time of writing, the benchmark index is down by 1.6% to 8,579.3 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Eagers Automotive Ltd (ASX: APE)

The Eagers Automotive share price is down 8.5% to $20.81. This is despite a number of brokers putting buy ratings on the auto retailer’s shares today. One of those was Morgans, which has retained its buy rating with a reduced price target of $27.25 (from $30.00). It said: “Despite some near-term earnings uncertainty, we continue to view a meaningful structural opportunity across consolidation (AUS/CAD), strategic alliances (Mitsubishi Corporation), used vehicles (EA123) and ongoing NEV leadership. We see recent share price pressure (~18x FY27F PE) as an attractive entry point given the earnings trajectory ahead (CY27F EPS growth ~19%).”

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is down a further 2.5% to $2.85. Investors have been selling this drinks giant’s shares this week following a strategy update. To support the strategy, the BWS and Dan Murphy’s owner has announced a reduction in its dividend payout ratio. In response, this morning, Macquarie retained its underperform rating on Endeavour’s shares with a heavily reduced price target of $2.80.

IPH Ltd (ASX: IPH)

The IPH share price is down 1% to $3.82. This morning, the intellectual property services company announced the appointment of Anthony (Tony) O’Malley as its new managing director and CEO with effect from 1 July 2026. IPH’s chair, Peter Warne, said: “Following a comprehensive global search, the Board is pleased to appoint Tony as our new CEO. His calibre and broad professional services experience position him well to lead the next phase of the Company’s growth strategy.”

Newmont Corporation (ASX: NEM)

The Newmont share price is down 6.5% to $146.86. Investors have been selling Newmont’s shares following a pullback in the gold price overnight. The precious metal hit a two-month low after investors increased their US interest rate hike bets. Newmont isn’t the only gold miner falling today. The S&P/ASX All Ordinaries Gold index is down a sizeable 7.2% at the time of writing.

The post Why Eagers Automative, Endeavour, IPH, and Newmont shares are sinking today appeared first on The Motley Fool Australia.

More reading

• Morgans says these ASX 200 shares are buys
• Investors are watching this ASX stock after a big CEO announcement
• Does Bell Potter rate this ASX 200 share as a buy, hold, or sell?
• 5 things to watch on the ASX 200 on Thursday
• Why ASX, CBA, Endeavour, and Tuas shares are falling today

Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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 Eagers Automotive Ltd and IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Temple & Webster Group Ltd (ASX: TPW), Web Travel Group Ltd (ASX: WEB) and Guzman Y Gomez (ASX: GYG) shares have had a year to forget.

Over the past 12 months the S&P/ASX 200 Index (ASX: XJO) has returned a relatively tepid 2.8%. But that’s a stellar performance compared to these three crashing stocks.

Here’s how these ASX 200 consumer focused stocks have performed over this same time:

• Online hotel booking travel agency Web Travel shares are down 52.3%
• Online furniture and homewares retailer Temple & Webster shares are down 75.6%
• Mexican fast food restaurant chain Guzman Y Gomez shares are down 36.1%

Atop some of their own operational issues, all three companies have faced stiff headwinds amid resurgent inflation and fast rising interest rates, which could see consumers continue to cut back on their discretionary spending.

And despite the past year’s sharp falls, those share price losses might keep coming in the months ahead.

Here’s why.

Temple & Webster, Web Travel and Guzman Y Gomez shares facing headwinds

Bell Potter institutional sales and trading director Richard Coppleson believes that Australia is approaching a recession that could continue to see investors exit ASX consumer stocks

According to Coppleson (quoted by The Australian Financial Review):

I have grave fears that we are heading down that [recession] road and my view remains the same for now: avoid domestic cyclicals, retail and anything tied to the consumer because this could get ugly, really ugly.

We have had the market slapping us in the face and warning us that it may be coming; the selling of retail stocks has been savage and going for a long time. The market can see it coming, even if we can’t yet

Ten Cap’s Jun Bei Liu also expects ASX consumer-oriented shares are likely to face ongoing headwinds this year.

Liu noted:

The consumer was already under pressure prior to recent geopolitical uncertainty, and we expect conditions to soften further as higher interest rates continue to work through the economy.

As if this isn’t enough of a concern for Temple & Webster, Web Travel and Guzman y Gomez shares, the AFR reported that Morgan Stanley expects all three stocks to get booted from the ASX 200 as part of the S&P Dow Jones Indices quarterly rebalance next week.

Losing their spots on the benchmark Aussie index could place these beleaguered stocks under further selling pressure as ASX 200 index tracking ETFs, and some fund managers limited to the larger end of the market, will have to sell their existing holdings.

The post Why Temple & Webster, Web Travel and Guzman Y Gomez shares could have even further to fall appeared first on The Motley Fool Australia.

More reading

• Morgans says these ASX 200 shares are buys
• 3 highly undervalued ASX 200 stocks to target in June with up to 87% upside
• Are Guzman Y Gomez shares a buy after rebounding 28% from a historic low?
• Why EOS, Life360, Nufarm, and Web Travel shares are pushing higher today
• Why are shares in this ASX travel company charging higher today?

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Champion Iron Ltd (ASX: CIA) shares are sliding on Thursday after the iron ore producer released its fourth-quarter results.

The Champion Iron share price is down 3.39% to $4.84 at the time of writing.

It has been a mixed ride for shareholders. Champion Iron shares are down about 20% in 2026, despite still being up around 14% over the past year.

Here’s what happened in the 3 months ended 31 March.

Production lifts despite rail disruption

According to the release, Champion Iron produced 3.4 million wet metric tonnes (wmt) of high-purity 66.2% iron ore concentrate during the quarter.

That was up 8% from the same period last year.

The company said the result reflected stronger productivity and improved iron recovery at its Bloom Lake operations in Canada.

Sales volumes were also solid, coming in at 3.5 million dry metric tonnes (dmt). That was broadly in line with the prior corresponding period.

The miner said this was achieved despite rail service disruption caused by a third-party train derailment in late December.

This affected operations through part of the quarter, although rail service later resumed.

Champion also said its direct reduction pellet feed project remains on schedule.

The project is designed to upgrade about half of Bloom Lake’s capacity to produce higher-grade material.

Initial production tests were completed in March, with commercial production expected by the end of the June quarter.

Profit takes a hit

The weaker share price reaction appears to be coming from the financial side of the result.

Revenue fell to US$414.5 million for the quarter, down from US$425.3 million a year earlier.

Earnings also moved lower. Champion Iron reported EBITDA of US$114.3 million, compared with US$127.4 million in the prior corresponding period.

Net income fell, dropping to US$23.2 million from US$39.1 million.

Costs are also receiving attention.

Champion reported a C1 cash cost of US$82.7 per dmt, up from US$80 a year earlier.

Its all-in sustaining cost (AISC) rose to US$96.9 per dmt, compared with US$93.1 last year.

The company pointed to higher freight and other costs, including pressure from the C3 freight index.

It also said the lower EBITDA and margin were mainly driven by a stronger Canadian dollar against the US dollar.

Champion’s average realised selling price was US$120.0 per dmt, slightly below the P65 index average of US$120.8 over the period.

Cash and dividends stay in focus

The company ended March with US$296.8 million in cash and cash equivalents.

It also had US$515.5 million in available loans and total cash, working capital, and available credit facilities of more than US$1 billion.

Champion Iron also announced a revised dividend policy.

Under the new framework, future dividends are expected to equal 30% to 40% of free cash flow.

Despite this, no dividend was declared for the March half.

Management said this reflected a focus on preserving liquidity during volatile macroeconomic conditions.

The post Warning: Champion Iron shares slide as profits take a hit appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Mineral Resources, Fortescue, Champion Iron shares
• Champion Iron announces production gains and new growth projects

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.

Hub24 Ltd (ASX: HUB) is not the loudest growth share on the ASX.

It is not selling products to consumers, building artificial intelligence (AI) models, or chasing a glamorous global market. But I think it is one of the best ASX 200 growth shares to buy for the long term.

The reason is simple. Hub24 sits in the middle of a wealth management industry that is still changing.

A strong position in a large market

Hub24 provides investment platform technology used by financial advisers and their clients.

That may sound niche, but I think it is a very attractive part of the market.

Financial advice is becoming more complex. Clients can have superannuation, pensions, managed accounts, tax needs, estate planning considerations, and investment portfolios that need to be managed across different life stages.

Advisers need systems that make that work easier.

That is where Hub24 has built its position. Its platform helps advisers manage client money, administration, reporting, and investment choices more efficiently.

I like that because once a platform becomes part of an advice practice’s daily operations, it can become very sticky. Advisers do not want clunky technology, poor service, or unnecessary admin slowing them down. If Hub24 keeps delivering a better experience, it can keep winning share.

It still has room to grow

One of the big reasons I like Hub24 is that it is already large, but not close to being finished.

In its latest update, Hub24 said total funds under administration reached $151.7 billion at 31 March 2026, up 22% on the prior corresponding period. Platform funds under administration reached $127.8 billion, up 25%.

That is already a substantial business.

But the company also noted that its platform market share was 9.7% at 31 December, up from 8.3% a year earlier. This means it ranked as the sixth-largest platform by funds under administration.

That tells me two things.

First, Hub24 is clearly gaining ground. Second, there is still a lot of market share available to win from incumbents.

This is the part of the story I find most compelling. Hub24 does not need to invent a new industry to grow. It needs to keep attracting advisers, winning flows, and improving its platform in a market where many older providers may still be vulnerable to better technology and service.

Why I’d buy this ASX 200 growth share

I think Hub24 has several traits I like in a growth share.

It operates in a large market, has a strong reputation, benefits from structural changes in wealth management, and still has meaningful market share to win.

There are risks to consider. Competition remains strong, and platform businesses can be sensitive to market falls because funds under administration are linked to asset values. Valuation is also important, particularly for a high-quality growth stock.

But I think Hub24’s growth runway and current valuation remain attractive.

Foolish takeaway

Some growth shares need a dramatic breakthrough to justify investor optimism.

Hub24’s opportunity looks different. The company is already doing the thing it needs to do: winning advisers, attracting flows, and taking share in a market that still has plenty of room for better technology.

That does not mean the share price is guaranteed to move higher. But if Hub24 keeps strengthening its position over the next few years, I think it could become a much larger and more valuable ASX 200 business.

The post Why I think this could be one of the best ASX 200 growth shares to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares are down again during Thursday lunchtime trade.

At the time of writing, the shares are down around 1% to $98.03 a piece.

May wasn’t a good month for the CSL share price. Today’s slump means the biotech stock has now fallen around 24% over the past month alone, and is just over 60% lower than a year ago.

Now the question is, have CSL shares now hit the bottom? Or will they tumble even lower in June?

What happened to CSL shares in May?

CSL shares suffered their biggest-ever one-day crash in early-May after the company lowered its FY26 outlook after interim CEO Gordon Naylor completed his 90-day review.

The company now expects FY26 revenue of around US$15.2 billion on a constant currency basis. It also expects NPATA of about US$3.1 billion, excluding restructuring costs and impairments.

The downgrade has come about following several issues. 

CSL noted that in US immunoglobulin, demand is still growing but normalisation of channel inventory is expected to cause a revenue impact of approximately US$300 million. 

In China, the company expects a US$200 million impact from a decline in the market value of albumin. 

Meanwhile a further US$150 million impact from the Middle East conflict, revised HEMGENIX growth, and competition in iron.

Investors were spooked by the downgrade, and it highlighted that the business is facing several issues all at once. 

At the same time, there has also been a broad market rotation away from healthcare-related stocks in 2026. 

ASX healthcare shares have lagged behind most other sectors on the index so far this year as investors reposition themselves towards ASX energy stocks, resources, and defensive assets. 

Should I buy the shares in June?

The good news is that CSL has said its growth initiatives are working. However the company added that the financial benefits will take longer than previously expected.

At the time of writing, analysts consensus is for an upside ahead of the next 12 months, but it’s clear that investors can’t expect the shares to return to previous levels.

I can’t see that the increase will start filtering through as early as the next few months, so some patience is needed. In fact, I’m expecting more downside ahead before the shares start to rebound.

What is clear is that the market needs to readjust its expectations for CSL shares going forward. 

TradingView data shows that sentiment is evenly split. Nine out of 18 analysts have a buy or strong buy rating on the stock, and the other nine rate the shares as a hold.

The average $147.55 target price implies a potential 51% upside at the time of writing. 

That increase would take us back to the valuation the shares were trading at in February this year, which is a far cry from the $300-level see through 2020 to 2024.

The post Should I buy CSL shares in June? appeared first on The Motley Fool Australia.

More reading

• After CSL’s 60% share price crash, insiders are starting to buy
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• Under $100, are CSL shares finally too cheap to ignore?

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

The S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. In afternoon trade, the benchmark index is down 1.05% to 8,627.3 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Galan Lithium Ltd (ASX: GLN)

The Galan Lithium share price is up 8.5% to 47.2 cents. Investors have been buying this lithium developer’s shares following the release of an update on its Hombre Muerto West (HMW) project. Management advised that it has completed wet plant commissioning and produced its first processed lithium chloride brine at HMW. This processed brine has now been discharged into the final evaporation ponds. Galan’s managing director, Juan Pablo Vargas de la Vega, said: “The significance of the successful commissioning of the HMW plant cannot be overstated. The HMW mining operations have now been completely de-risked from start to finish and in just a few months we expect to have lithium chloride concentrate ready for sales.”

Life360 Inc (ASX: 360)

The Life360 share price is up 1.5% to $19.21. The release of a broker note out of Bell Potter this week has given this location technology company’s shares a boost. According to the note, Bell Potter has retained its buy rating on Life360’s shares with an improved price target of $33.00. It said: “We expect similarly strong paying circle growth in each of Q2, Q3 and Q4 and, given this is the key driver of revenue growth, we believe market focus will shift to this positive rather than the negative of any weakness in MAU growth.”

Select Harvests Ltd (ASX: SHV)

The Select Harvests share price is up 7.5% to $3.89. Investors have been buying the almond producer’s shares following the release of its half-year results. Select Harvests reported an underlying net profit of $29.1 million. This was up 33% from $21.9 million during the prior corresponding period. The company’s managing director, David Surveyor, said: “Underlying NPAT is up 33% in the first half. The earnings profile of the Company has changed and in the second half we will see the benefits of increased external grower volumes and value-added sales contributing to the profitability of what is expected to be a meaningfully improved FY2026 result.”

SiteMinder Ltd (ASX: SDR)

The SiteMinder share price is up 8% to $3.27. This morning, this hotel technology company announced the launch of SiteMinder Powered. This allows selected hospitality technology companies to integrate SiteMinder’s distribution engine directly within their own platforms. SiteMinder’s CEO, Sankar Narayan, commented: “SiteMinder Powered is a natural evolution of our platform, especially at this time when we are witnessing AI reshaping how hoteliers work. Over time, we expect more agentic workflows to operate seamlessly across connected hospitality platforms – and, as those workflows become more automated, the infrastructure connecting hotel systems, distribution channels and commerce capabilities becomes more valuable.”

The post Why Galan Lithium, Life360, Select Harvests, and Siteminder shares are storming higher appeared first on The Motley Fool Australia.

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• 3 highly undervalued ASX 200 stocks to target in June with up to 87% upside
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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 and SiteMinder. The Motley Fool Australia has positions in and has recommended Life360 and SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Select Harvests Ltd (ASX: SHV) shares are up more than 10% after the company announced a jump in first-half underlying net profit and a new share buyback.

On a growth path

The company said in a statement to the ASX that it had delivered underlying net profit of $29.1 million in the first half, up from $21.9 million from the previous corresponding period.

The almond grower said it expected its 2026 almond crop to come in at 29,500 tonnes, with a forecast range of 28,000 to 31,000 tonnes, up from 24,903 tonnes for FY25.

Select Harvests also said the almond price had held up, with a price of $10.21 per kilogram achieved in the first half compared with $10.18 previously.

The company’s Managing Director David Surveyor said regarding the results:

Underlying NPAT is up 33% in the first half. The earnings profile of the Company has changed and in the second half we will see the benefits of increased external grower volumes and value-added sales contributing to the profitability of what is expected to be a meaningfully improved FY2026 result. The Company is successfully delivering its strategy, and this is reflected in our financial performance. The Board has therefore declared a fully franked interim dividend of 3.5 cents per share and announced an on-market share buy-back of up to 10% of issued capital.

Select Harvests said the 2026 crop was going to be among the biggest in the company’s history due to investments in both farming and processing practices.

The company added:

In terms of growth the Company has effectively doubled in size over the last three years. The Board has now set the next series of targets with the aim of increasing Select Harvests to 65,000MT and $700m revenue by 2030 based on confidence in our strategy and people.

The company said sales for the half were $45.5 million lower than for the same period the previous year, coming in at $59 million, however this was caused by a lower carryover crop and the impact of a late 2026 harvest due to wet weather.

The company said 2026 revenues “will grow materially driven by growth in Select Harvests crop size and external grower volumes”.

Expanding into new markets

The company said re sales:

In terms of global markets, the Company continues to grow its customer base, particularly in China and India allowing for an improved sales profile and diversification as we add more direct customers, consistent with our strategy. Access to the Middle East markets remains challenging with the disruption to supply chains, however we have successfully redirected supply to other markets.

The company said its board did not believe the share price reflected the value of the company, and hence it would conduct a buyback starting no earlier than 14 days from the announcement.

Select Harvests shares were trading 11.1% higher at $4.02. The company is valued at $514.43 million.  

The post This company has just announced a buyback, and the shares are surging appeared first on The Motley Fool Australia.

More reading

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

If you’re buying Rio Tinto Ltd (ASX: RIO), BHP Group Ltd (ASX: BHP), or Fortescue Ltd (ASX: FMG) shares, then you’ll know the importance of the prevailing iron ore price.

While the S&P/ASX 200 Index (ASX: XJO) mining giants are increasing their exposure to copper, iron ore will remain a core revenue earner for the foreseeable future.

And the iron ore price has continued to defy bearish analyst expectations of a retrace to US$90 or even US$80 per tonne.

Indeed, the industrial metal topped US$111 per tonne earlier this month and is currently trading north of US$109 per tonne.

Adding in the surging copper price, and we’ve seen two of three ASX 200 mining stocks smash the benchmark performance this year. (Fortescue shares have struggled this calendar year, in part due to concerns over the miner’s ambitious green energy expenditures.)

In 2026, the ASX 200 is down 0.9%.

Over this same time:

• BHP shares are up 34.2%
• Fortescue shares are down 1.0%
• Rio Tinto shares are up 25.8%

Which brings us back to…

Why CMRG matters for BHP, Rio Tinto, and Fortescue shares

If you’re not familiar with the acronym, CMRG stands for the China Mineral Resources Group.

Formed in 2022, the company – which represents the majority of China’s steel mills – is backed by the Chinese government. The aim is to increase the nation’s bargaining power over global iron ore prices by centralising purchasing negotiations.

As you may recall, earlier this year, BHP was locked in negotiations with CMRG for a number of months over potentially lower iron ore prices and increased use of renminbi in purchase contracts.

Those negotiations concluded last month.

And BHP, Rio Tinto, and Fortescue shares could suffer a hit to their future earnings if CMRG succeeds in gaining greater influence on global iron ore pricing.

That’s according to Tim Day, BHP’s Western Australian iron ore asset president, who warned that CMRG will continue to push for lower iron ore prices, thereby increasing the profitability of Chinese steel mills, in future negotiations.

Speaking at The Australian Financial Review Mining Summit in Perth, Day said:

We’re through it now, which is the good part, but it will be on again next year … and it is getting more complex [and] will just continue from here.

What does that kind of mean for the Australian iron ore industry in particular? You will see over time that this will continue to play that way, and the power and size of China just have that impact.

The post Buying Rio Tinto, BHP or Fortescue shares? Here’s why CMRG matters appeared first on The Motley Fool Australia.

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