Author: openjargon

Shares in Adisyn Ltd (ASX: AI1) were trading higher on Monday morning after the company said it had struck a strategic agreement to fast-track production of graphene stealth components for drones.

Collaboration with Israeli company

The company said in a statement to the ASX that its subsidiary 2D Radar Absorbers had signed a memorandum of understanding with Raval A.C.S. Ltd to co-develop graphene-enhanced injection-moulded parts for radar absorption in drones and unmanned aerial vehicles.

Adisyn said Raval was one of Israel’s largest plastics groups with CY2025 revenue of about €201 million and 1,220 staff across 11 global facilities supplying major automotive OEMs and tier-1 suppliers.

The company added:

The collaboration combines 2D Radar’s graphene-based stealth materials platform – underpinned by exclusive worldwide rights licensed from Tel Aviv University – with Raval industrial scale, automotive grade quality systems and serial production capabilities, providing Adisyn with a direct route from development to commercial manufacturing.

Adisyn said Raval had a high level of expertise, with “a development team with engineering, simulation and tooling capabilities that are rare in the Israeli industrial landscape, spanning structural design, crash and impact simulation, moldflow injection-moulding analysis and topology optimisation”.

Raval’s customers include Volkswagen, BMW, Mercedes, Porsche, and others, Adisyn said, adding that the high standards demanded by the automotive sector “are demonstrably suitable for the demanding requirements of defence and drone customers”.

Adisyn said further:

While numerous laboratories and small companies offer materials development services, engaging such partners typically forces a long and uncertain phase of adapting laboratory results to the devices, tooling and production technologies of an eventual manufacturer. The Raval collaboration is structurally different. Development will be conducted from the outset on Raval’s serial production machines, with parts engineered for manufacturability from day one. This enables a rapid transition – in months rather than years – from successful prototype to qualified volume production.

New company a possibility

Under the MOU, 2D Radar will lead the research and development of the graphene and two-dimensional materials platform and the testing of radar absorption performance.

Raval will lead the plastic and moulding development and manufacture of sample parts and testing.

Each party will fund its own development activities, and over a 12-month period, will assess the viability of a joint venture company being formed to commercialise the technology developed.

Adisyn Managing Director Arye Kohavi said:

This agreement is a major step forward for our stealth materials program. Raval is one of the most capable industrial groups in Israel, with the engineering depth, automotive-grade quality systems and global manufacturing footprint to take our graphene-based radar-absorbing components from prototype to qualified production parts in a fraction of the time it would take with a laboratory partner. For the Israeli Ministry of Defense and global drone manufacturers, our ability to move from development to production in months – rather than years – is a critical differentiator. Working with Raval from the outset on serial production machines means the parts we develop are, by design, ready for volume manufacture.

Adisyn shares were 5% higher on Monday at 31.5 cents. The shares have traded as low as 3.8 cents over the past 12 months and hit a new high of 33.5 cents in early trade.

The company is valued at $312 million.

The post Up more than 400% in a year, this ASX defence stock is charging higher again on a new partnership appeared first on The Motley Fool Australia.

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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.

High-flying S&P/ASX 300 Index (ASX: XKO) gold stock Dateline Resources Ltd (ASX: DTR) is taking a tumble today.

Shares in the gold and rare earths explorer closed on Friday trading for 24 cents. In early morning trade on Monday, shares are changing hands for 22 cents apiece, down 8.3%.

For some context, the ASX 300 is down 0.8% at this same time.

Taking a step back, one year ago you could have bought Dateline Resources shares for just 3.2 cents each. That would see you sitting on a gain of 587.5% today. Or enough to turn a $10,000 investment into $68,750.

In one year!

Here’s what’s catching investor interest today.

ASX 300 gold stock sinks on BFS

Dateline Resources shares are slipping after the company announced the results of the Bankable Feasibility Study (BFS) for its Colosseum Gold and Rare Earth Element (REE) Project, located in the US state of California.

The ASX 300 gold stock is under pressure despite the company reporting that the BFS demonstrates a “robust gold development”, which it expects will generate significant margins.

Among the highlights of the BFS was Colosseum’s US$1.08 billion undiscounted pre-tax free cashflow estimate. And that increases to US$1.36 billion using the spot gold price.

The project has a net present value (NPV) of US$785 million (pre-tax), which increases to US$999 million using the spot gold price.

Start-up costs for the mine are expected to come in at US$249 million.

And Colosseum is forecast to produce an average of 75,000 ounces of gold per year over the first six years of production. Across the project’s 10.4 year mine life, management expects it to produce 573,000 ounces of gold, with production peaking at 102,000 ounces in year six.

The All-in Sustaining Cost (AISC) to produce that gold runn on the higher end of the scale, expected to be US$1,825 per ounce.

What did Dateline Resources management say?

Commenting on the BFS outcome that’s yet to lift the ASX 300 gold stock today, Dateline Resources managing director Stephen Baghdadi said, “Since acquiring Colosseum in 2021, we have recognised the significant potential of the project.”

Baghdadi added:

The near vertical nature of mineralisation associated with the breccia pipes demonstrates excellent continuity that continues with depth. Since the original Scoping Study was completed in October 2024, we have continued to see strength in the gold sector, with the project forecast to generate operating margins of greater than $2,500 per ounce.

Looking to what’s ahead for the ASX 300 gold stock, Baghdadi concluded:

With the BFS complete and the Front-End Engineering Studies (FEED) well underway, our engagement with project financiers is advancing as we look to secure the funding required to commence production as soon as possible.

The post Up 588% in a year, why is this ASX 300 gold stock tumbling today? appeared first on The Motley Fool Australia.

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

There are a lot of ASX shares to choose from on the local market.

To narrow things down, let’s see what analysts are saying about three big names, courtesy of The Bull.

Are they buys, holds, or sells this week? Let’s find out:

TechnologyOne Ltd (ASX: TNE)

The team at Catapult Wealth is bullish on this enterprise software provider ahead of its half-year results this month. It has named TechnologyOne shares as a buy.

Catapult Wealth highlights that artificial intelligence (AI) is helping drive growth, not disrupt its business. It said:

TNE delivers software-as-a-service (SaaS) solutions to government and business. The company is emerging as one of the first SaaS names to flag a discrete artificial intelligence revenue stream, embedding AI across all 20 products. Recent updates point to accelerating momentum. We expect upcoming half year results on May 19 to beat expectations on new customer wins and AI product rollouts. Expansion in the UK remains a key long term growth opportunity.

Telstra Group Ltd (ASX: TLS)

Catapult Wealth thinks that Telstra shares could be fully valued now. As a result, it has put a hold rating on the telco giant.

It also highlights uncertainty around spectrum licence fees as a reason to be cautious, saying:

The telecommunications giant recently reaffirmed its 2026 fiscal year outlook, guiding to cash earnings per share growth amid maintaining capital discipline as it progresses its on-market share buy-back of up to $1.25 billion. Mobile price rises are expected to support revenue growth in full year 2026. However, regulatory uncertainty around proposed higher spectrum licence fees remain a medium term headwind. Investors can expect a fully franked dividend of 21 cents a share for full year 2026, but near‑term upside appears limited, in our view.

Woodside Energy Group Ltd (ASX: WDS)

Sanlam Private Wealth has named Woodside shares as a sell this week.

It thinks investors should consider taking advantage of recent strength to cash in some gains. It said:

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 Buy, hold, sell: TechnologyOne, Telstra, and Woodside shares appeared first on The Motley Fool Australia.

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

Share prices are always changing, so it can be smart to look across a wide range of ASX shares for potential market-beating returns.

Analysts are always looking for opportunities – it’s interesting when one expert a stock is a buy. It could be a significant indicator of an opportunity when numerous analysts rate an ASX share as a buy.

With that in mind, we’re going to look at two businesses with the most buy ratings.

Orica Ltd (ASX: ORI)

Orica is one of the world’s leading mining and infrastructure solution providers. It produces explosives, blasting systems, specialty mining chemicals and geotechnical monitoring.

According to CMC Invest, there are currently 10 ratings on the business, with all of those being a buy. That’s an extremely bullish view by the experts.

Based on those 10 ratings, the average price target on the ASX share is $26.86, suggesting a possible rise of 23% from where it is at the time of writing. The most optimistic price target on the business is $37.44, suggesting a potential increase of more than 70% within the next year.

Even the most pessimistic price target is $24.04, implying a possible rise of more than 10%.

Of course, positive price targets are not guarantees of returns. But, the company is delivering earnings growth for shareholders.

In the FY26 half-year result, the business reported that its underlying net profit increased by 8% to $283.1 million, with underlying operating profit (EBIT) climbing by 5% to $512 million and the dividend per share growing by 14% to 28.5 cents.

Orica also noted that it’s working on a cost-cutting program to reduce its annual cost base by at least $100 million. It has also reached an agreement to acquire Nelson Brothers’ explosives business in North America, providing increased exposure to the US quarries and construction sectors and direct channels to market.

Cleanaway Waste Management Ltd (ASX: CWY)

Cleanaway is a leading sustainable waste management, industrial and environmental services company. It has Australia’s largest waste and industrial services fleet, with more than 6,400 vehicles, as well as an extensive network of recycling facilities, transfer stations, landfills, liquid treatment plants and refineries.

According to CMC Invest, eight analysts currently rate the business as a buy. Of those eight ratings, the average price target is $3.04, suggesting a possible rise of 35% from where it is at the time of writing, if the analysts end up being right.

The ASX share has a blueprint on how it expects to deliver pleasing shareholder returns.

It says that the underlying growth of the continuing business is linked to GDP and favourable secular trends, which is underpinned by its scale, infrastructure, capabilities and customer relationships.

The company is also targeting high value revenue growth, expanding its margins by more than 260 basis points (2.60%), optimising its branch network, leveraging its scale and utilising its assets.

It plans to utilise its growth through investments in technology, automation, data and analytics.

Finally, it’s exploring selective investments in new, profitable and scalable ‘growth platforms.’

In the company’s FY26 half-year result, it reported 13.7% revenue growth, 16.9% underlying EBIT growth and 17.8% underlying net profit growth. In other words, the numbers are generally going in a very positive direction.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 best ASX share opportunities to buy today may not be some of the most famous opportunities. They could be significantly undervalued, according to experts.

The two businesses I want to highlight are names that have fallen heavily in the last few months. But analysts suggest the companies could rise significantly in the next year.

Let’s look at two of the ideas that could deliver dramatic market-beating returns.

Objective Corporation Ltd (ASX: OCL)

Objective Corporation says that thousands of public sector organisations are shifting to digital operations using Objective software. It says that it has more than 1,000 customers with a 99% customer retention rate. Impressively, the business invests significantly in research and development each year.

According to CMC Invest, there have been six recent analyst ratings on the business, with four of those being a buy and two being a hold.

A price target is where analysts think the share price will be in 12 months from now.

Of those six ratings, the average price target is $17.70. That suggests a possible rise of around 60% over the next year, from where it is at the time of writing.

The ASX share’s financials are growing at a pleasing pace. In the FY26 half-year result, revenue grew by 9% to $66.7 million and net profit after tax (NPAT) climbed 10% to $18.7 million.

Its growth remains promising – HY26 annual recurring revenue (ARR) increased by 12% to $120 million. The business is expecting its FY26 ARR growth to be between 10% and 14%. I think many ASX shares would be pleased with that level of growth.  

With the Objective Corporation share price down by around 40% in the last six months, it looks much better value.

Adairs Ltd (ASX: ADH)

Adairs sells furniture and homewares across three different businesses – Adairs, Mocka, and Focus on Furniture.

According to CMC Invest, there have been six recent ratings on the business, with three buy ratings and three hold ratings.

The average price target on the business from those six ratings is $2.02. That implies a possible rise of 65% from where it is today, though that may be an optimistic view amid the rising interest rate environment, which may impact retail spending.

The latest we heard from the business of its performance was for the first seven weeks of the second half of FY26, though this was before all of the various impacts seen over the last few months that could impact the sales.

At the time of the FY26 half-year result, it said it expects margin and underlying operating profit (EBIT) growth in the second half. While the short term may be uncertain, I think the longer term could prove to be positive for the ASX share.

It looks a lot cheaper to me after falling more than 50% in the last 12 months.

The post 2 ASX shares tipped to grow 60% or more in the next 12 months appeared first on The Motley Fool Australia.

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

Dyno Nobel Ltd (ASX: DNL) shares are pushing higher on Monday.

In morning trade, the ASX 200 share is up 8% to $3.60.

Why is this ASX 200 share jumping?

Investors have been buying the company’s shares on Monday after it released its half-year results and revealed strong growth from continuing operations.

According to the release, group revenue fell 15.7% on the prior corresponding period to $1.9 billion.

However, this was largely due to the separation of the Fertilisers business. On a continuing operations basis, the explosives business delivered revenue of $1.6 billion, which was up 11.4% on the prior corresponding period.

That growth was driven by strength in the company’s core regional businesses.

Dyno Nobel Asia Pacific delivered a 9% lift in revenue to $599.3 million, supported by strong demand in metals, growth from new contracts, and expansion in Malaysia and Indonesia.

But Dyno Nobel Americas was the standout. It posted a 17% increase in revenue to $891.3 million. This reflected strong demand across coal, quarry and construction, and metals markets, as well as profitable trading of surplus ammonium nitrate.

Dyno Nobel EMEA and LATAM revenue fell 8% to $144.5 million. This reflects foreign exchange headwinds.

The company’s group EBIT (excluding individually material items) rose 39.3% to $242.7 million, while EBITDA excluding individually material items increased 17.2% to $378 million.

On the bottom line, net profit after tax excluding individually material items increased 83.3% to $160.9 million. However, statutory net profit after tax was only $19.9 million. This is due to the impact of $141 million of after-tax individually material items, mainly relating to impairment and site exit costs from the sale of Phosphate Hill.

In light of its strong performance, the Dyno Nobel board declared an unfranked interim dividend of 4.6 cents per share, up 91.7%  on the prior corresponding period and representing a 50% payout ratio.

Management commentary

Commenting on the result, the ASX 200 share’s CEO, Mauro Neves, said:

1H26 marks the beginning of a new era for Dyno Nobel as we concluded our separation from the Fertilisers business and move forward as a pureplay global explosives leader. We continued the successful execution of our transformation program, and our explosives business delivered robust underlying earnings growth, driven by the strong operating performance of our privileged assets.

Outlook

Dyno Nobel reaffirmed its FY 2026 EBIT guidance for its explosives business of $460 million to $500 million. Neves said:

Highlighting the resilience of our business in the volatile global landscape, I am pleased to report we remain on track to deliver both our FY26 EBIT guidance of $460m – $500m and our FY28 EBIT ambition of $600m as our transformation program continues to yield results.

Looking ahead, our gas backed manufacturing facilities, high vertical integration and consistent earnings growth with low volatility position Dyno Nobel as an increasingly compelling investment proposition.

The post Explosive ASX 200 share jumps 8% on first-half profit surge 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.

Now could be the time to buy Cyclopharm Ltd (ASX: CYC) shares.

That’s the view of analysts at Bell Potter, who believe this small-cap ASX share could deliver market-beating returns over the next 12 months.

What is Cyclopharm?

It is a medical device company operating in nuclear medicine.

Bell Potter notes that Cyclopharm’s main revenue driver is Technegas, which is a system indicated for functional lung imaging.

The primary use of Technegas is diagnosis of pulmonary embolism in patients contraindicated for a CT scan. It was approved for use in the United States in September 2023.

Bell Potter was pleased with the small-cap ASX share’s annual general meeting update. It points out that management remains bullish on the remainder of 2026 and beyond. It said:

The AGM commentary maintains the bullish outlook for the remainder of CY26 and beyond. The CEO re-affirmed guidance for 250 – 300 Technegas generators installed in the US by the end of 31 Dec 2026. There are currently 55 generators in market, hence 195 instals required to meet the bottom end of guidance. We estimate 11 instals in the first 17 weeks of CY26 including 5 since 31 March.

Bell Potter also highlights that the small-cap ASX share has a sizeable pipeline with a high conversion probability. The broker adds:

CYC has 175 contracts signed and awaiting installation with a further 111 at contract review stage and described as a very high conversion probability. Beyond these, the pipeline is extensive with several hundred devices at the proposal stage. Numerous hospital groups have now committed to subsequent devices across locations in their networks, in fact, half the growth (we presume in FY26) is attributable to 2nd and subsequent orders by existing clients. We conclude that the signs are highly encouraging for strong revenue growth in FY26.

~9 weeks remain in the half, hence CYC is on track to hit our forecast of 65 instals in the US by 30 June. The bottom end of the guidance requires an enormous acceleration of installations in 2H, however, with contracts in place the business is there to be had. The client service teams are now engaged with multiple installation programs at any one time to ensure a continuous stream of instals on a weekly basis.

Small-cap ASX share tipped to rise

According to the note, the broker has retained its buy rating and $1.00 price target on Cyclopharm’s shares.

Based on its current share price of 84.5 cents, this implies potential upside of 18% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

The revenue base to CYC from 250 devices in the US is estimated at ~A$23m annual recurring revenue. We expect cash burn has now peaked and will begin to fall in 2H26. Next major catalyst is the June quarter update where we are increasingly confident that the pace of generator installations in the US will be sustained at the current rate or better. No earnings adjustments, PT remains $1.00.

The post Which small-cap ASX share could beat the market over the next 12 months? 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.

I’d describe Sigma Healthcare Ltd (ASX: SIG) as one of Australia’s top shares because of the growth it’s currently achieving and its potential to continue growing at a very attractive rate.

When I look at non-tech names that could deliver the most profit growth over the next five years, I think Sigma Healthcare – the owner of the Chemist Warehouse brand – is one of the most compelling businesses on the ASX.

At the time of writing, the Sigma Healthcare share price is down by approximately 10% from its 2026 high in February 2026. That’s not a huge fall, but it has big growth plans so it may be rare for it to be this low again.

I think this is a good time to look at the business, given it’s cheaper and looks more compelling than ever.

Excellent Australian growth

When I think about which businesses are likely to deliver market-beating returns (of more than 10% per year), I think it’s a really big help if the business is achieving revenue growth of at least 10% per year. At that pace, I’d call it one of Australia’s top shares as long as it’s combined with profit growth.

In my view, revenue is one of the biggest drivers of net profit, perhaps the most important one because of how that feeds into a company’s other profit lines.

Considering the business is already worth tens of billions of dollars, it’d be understandable for the growth rate to be fairly slow these days. But, Chemist Warehouse is still growing its market share at a very strong pace.

The business recently gave a trading update which included some very positive numbers.

The Chemist Warehouse-branded Australian store network saw total sales growth of 16.7% for the period of 1 July 2025 to 30 April 2026. This isn’t just being driven by new stores – it reported that like-for-like (LFL) growth was 14.4%, showing excellent growth at its existing stores.

These sales were strong despite cycling the structural uplift of GLP-1 sales in the second half of FY25. Growth in GLP-1 sales growth is expected to continue.

International growth

The most important thing is that the core business is growing well, but Chemist Warehouse has another massive growth pillar to its company – international. This is one of the main reasons why I think it’s one of Australia’s top shares.

It currently has a presence in New Zealand, Ireland, Dubai and China. While the sales generated by these markets are just a fraction of what Australia delivers, there is scope for the international segment to become a bigger part of the picture, considering Australia’s population is relatively small.

According to the recent trading update, Chemist Warehouse’s international store network delivered total sales growth of 24.7%, with like-for-like sales growth of 11.8%.

It also recently announced an acquisition agreement that will allow it to expand into the UK, initially starting with a few locations in London. The UK has a bigger population than Australia, so if Chemist Warehouse can get this right then the opportunity is large for that market.

Rising profit margins

Many investors value a business based on how much profit it generates and could generate in the future.

As I’ve said, revenue is already growing at a fast pace. But, excitingly, the company’s net profit can grow even faster than that because of its rising profit margins. That’s another sign that it’s one of Australia’s top shares, in my view.

In the FY26 half-year result, total revenue increased 14.9% to $5.5 billion, normalised operating profit (EBIT) grew 18.7% to $582.9 million and normalised net profit after tax (NPAT) rose 19.2%. As you can see, each line of the financials grew faster than the last.

If operating leverage continues to play out and its bottom line continues rising at a strong pace, it’ll definitely be one to watch. I’m planning to buy some of this business this year, which I’m happy to call one of Australia’s top shares.

The post A rare buying opportunity in 1 of Australia’s top shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has 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.

Cochlear Ltd (ASX: COH) shares have gone into freefall in 2026 after a brutal earnings downgrade stunned investors.

The ASX healthcare stock is down roughly 62% year to date, wiping billions from its market value and leaving many shareholders nursing heavy losses.

Things look even worse for investors who bought near the peak.

Damage is real

Back in late July last year, Cochlear shares were trading just below $320. At the time of writing, they have crashed to $99.89.

That represents a staggering decline of almost 69% in just nine months.

For investors, the damage is very real.

A $10,000 investment at $319.50 per share would have bought roughly 31 Cochlear shares in July. Today, those same shares would be worth approximately $3,126.

That’s a painful capital loss of more than $6,870 in a very short time.

What triggered the collapse?

The sell-off accelerated after Cochlear released a disappointing trading update on 22 April.

Cohlear shares plunged from around $168 to near $90 within days — an extraordinary 46% wipeout for a blue-chip healthcare company.

Although the share price has since recovered slightly, the broader damage remains significant.

Cochlear, which controls roughly 50% of the global cochlear implant market, sharply downgraded its FY26 underlying net profit guidance to between $290 million and $330 million.

That was a major cut from its previous guidance range of $435 million to $460 million. For a company long viewed as one of the ASX’s most reliable healthcare performers, the downgrade rattled confidence badly.

Management of the ASX healthcare stock pointed to weaker demand across key developed markets, with fewer hearing implant procedures taking place than expected. The company also flagged disruptions in the Middle East, where ongoing conflict has contributed to cancelled orders and delayed deliveries.

At the same time, some patients appear to be postponing surgeries, with referrals slowing and procedures being pushed back.

Is this temporary?

Importantly, the long-term investment case may not be broken.

Cochlear remains the global leader in implantable hearing technology and continues investing heavily in research and development, reinvesting around 13% of revenue into innovation.

Cochlear shares also continue benefiting from a large and growing pool of patients with hearing loss, particularly as populations age globally. Management still believes there is a “significant, unmet and addressable clinical need” supporting long-term growth.

That suggests the current weakness could be more cyclical than structural.

Analysts remain divided

Even so, uncertainty remains high.

At current prices, Cochlear shares are trading on a little over 19 times FY26 earnings, a valuation level rarely seen for a company previously considered a premium healthcare stock.

That has divided broker opinion sharply. Jarden currently has a $169 price target on Cochlear shares, implying potential upside of almost 70% if conditions improve.

On the other hand, Macquarie has slashed its valuation target from $239 to $115.

Morgans sits somewhere in the middle, maintaining a hold rating and a $107.17 target price.

For now, the sharp divergence in analyst forecasts highlights just how uncertain Cochlear’s near-term outlook has become.

The post $10,000 invested in Cochlear shares in July is now worth… 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 positions in and has recommended Cochlear and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australian household spending fell for the first time in over a year in February 2026.

The RBA, in its May Statement on Monetary Policy, also alluded to this drop in consumer spending:

The response on consumption to lower real household incomes is assumed to be faster than the typical historical experience, given the share declines we have seen in consumer sentiment.

With this somewhat gloomy backdrop, it’s time to assess what the implications could be for some beloved Aussie stocks.

Coles Group Ltd (ASX: COL)

Coles is the most defensive name on this list, given its focus on supermarket retail.

As one of Australia’s largest supermarkets, Coles benefits from defensive consumer spending. After all, consumers will always need to eat regardless of the prevailing economic conditions.

90% of Coles’ revenue comes from its supermarket business, which may help protect it from a major economic slowdown.

However, Coles remains exposed to reduced consumer spending, which can negatively affect margins.

What’s more, the ACCC’s ongoing court case alleging illusory Down Down discounts, set to be resolved in May 2026, has increased regulatory risks, and Coles reported lower profit in its first half of fiscal 2026 despite higher sales revenue.

A sustained consumer pullback could further erode margins and profitability, leaving Coles uniquely exposed to any noticeable decline in consumer spending.

Woolworths Group Ltd (ASX: WOW)

One key difference between Woolworths and Coles is Woolworths’ ownership of BIG W.

BIG W meaningfully increases Woolworths’ exposure to consumer spending habits outside of supermarket retail.

In 2025, the unit posted an EBIT loss of $63 million, squeezed by clearance activity, soft discretionary spending, and operational complexity.

More recently, Bell Potter downgraded Woolworths shares to hold with a reduced price target of $35.50 (from $38.25), citing supply chain cost pressures.

Reduced consumer spending within this unit may lead to even more pain for Woolworths in the short-to-medium term.

Qantas Airways Ltd (ASX: QAN)

Australians tend to cut holidays and flights first when mortgage repayments bite.

Qantas, as Australia’s flag carrier, is on the frontline of this reduced spending.

Analysts identify an economic downturn as a key risk that could cause corporate clients to cut travel budgets, directly hitting Qantas’ most profitable customer base.

What’s more, jet fuel costs have more than doubled since February 2026, which is set to hit Qantas earnings directly.

Qantas’ loyalty program and domestic duopoly may provide some buffer, but be ready for Qantas’ earnings to potentially be hit by macroeconomic issues.

Foolish Takeaway

None of these companies is in crisis, but they are exposed to a sustained drop-off in consumer spending.

Investors may want to consider diversifying into companies that service businesses or governments with sticky long-term contracts.

In the meantime, investors would do well to keep a close eye on discretionary spending data in the months ahead.

The post 3 ASX retail shares exposed to a drop in consumer spending 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 positions in and has recommended Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.