Author: openjargon

Recent good news for two energy companies has the analysts at Macquarie interested, with both tipped for strong share price gains.

Let’s see who they like.

Strike Energy Ltd (ASX: STX)

Strike recently struck an agreement with Gina Rinehart’s Hancock Energy to process the gas from its West Erregulla project through Hancock’s Belisama facility.

The deal also included a $30 million loan from Hancock, which Strike will use to support its share of pre-development activities.

The West Erregulla joint venture is targeting a final investment decision in FY28 with first gas expected in CY29.

Strike said of the deal:

The arrangements derisk West Erregulla’s pathway to production and represent a major value inflection point for Strike, providing a clear route to unlock one of Western Australia’s largest undeveloped onshore conventional gas resources and to materially increase the scale and diversity of Strike’s production and earnings base.

Macquarie said in a research note sent to clients that the deal was a true win-win for both companies.

The broker said:

We expect this agreement has been mutually beneficial and creates deeper alignment in the upstream JV (i.e. Hancock earns a healthy return on the tolling, Strike avoids equity dilution and proceeds to first gas more rapidly than the alternative proposal from Waitsia which is 15-20km away – requiring new environmental approvals and likely with less alignment on plant access).  

Macquarie has a target price of 15 cents on Strike shares compared to 10.75 cents currently.

Amplitude Energy Ltd (ASX: AEL)

Earlier this month Amplitude announced that its Juliet-1 well in the Otway Basin offshore Victoria, had intersected a high-quality, gas-bearing reservoir.

The company said the well had found a gas-bearing interval of at least 60m, and two days later Amplitude said the well would be suspended, ready for development as part of the East Coast Supply Project (ECSP).

Macquarie said once Juliet was added to previous discoveries at Annie and Artisan, the ECSP “is now a material program”.

They also expected further drilling in the area.

As they said:

With success at Juliet-1 (pending flow test outcome, but “excellent” reservoir quality is implied from preliminary data collected so far), we therefore expect Nestor looks more likely to be drilled next. Partner O.G. Energy had deferred any decision on drilling Nestor pending the Juliet results.

Macquarie has a price target of $2.50 on Amplitude shares compared to $1.82 currently.   

Amplitude Energy is valued at $530.8 million.

The post 2 ASX energy companies Macquarie says can jump more than 37% appeared first on The Motley Fool Australia.

More reading

• Strike Energy posts project breakthrough, secures West Erregulla funding
• Macquarie tips this ASX gas company to jump more than 50%
• Strike Energy upgrades Walyering gas reserves and books maiden Walyering West discovery

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.

Woolworths Group Ltd (ASX: WOW) and Commonwealth Bank of Australia (ASX: CBA) shares have delivered markedly different returns over the past year.

On Tuesday, CBA shares were trading for $152.45 apiece. That sees the S&P/ASX 200 Index (ASX: XJO) bank stock down 9.7% in 12 months. Though those losses will have been modestly eased by the two fully franked dividends CommBank paid out over this period.

CBA stock trades on a 3.3% fully franked dividend yield.

Woolworths shareholders have enjoyed a much more profitable year.

Trading for $38.91 apiece on Tuesday, shares in the ASX 200 supermarket giant have gained 38.6% in 12 months. And that’s not including the passive income Woolies doled out to shareholders over the year.

Woolworths stock trades on a 2.5% fully franked dividend yield.

Looking ahead, however, Shaw and Partners’ James Bills believes that shareholders would do well to exit both ASX 200 stocks (courtesy of The Bull).

Here’s why.

CBA shares still trading at a premium

“In our view, the stock trades at a significant premium to domestic peers and on historical valuations,” Bills said.

CBA trades at a price to earnings (P/E) ratio of around 23.5 times, the highest of the big four ASX 200 bank stocks.

Bills added:

While the bank maintains a high-quality franchise and strong market position, earnings growth is expected to remain modest amid competitive lending conditions and regulatory pressures.

Summarising his sell recommendation on CBA shares, Bills said:

Recent Federal government initiatives aimed at increasing housing supply and improving affordability is likely to lead to intensifying competition across the mortgage market and place pressure on lending margins.

Current valuations leave limited scope for further earnings driven upside. Investors may wish to take profits and re-deploy capital into opportunities offering stronger risk-adjusted return potential.

Woolworths share price rally may have run out of puff

Along with CBA shares, Bills also expects that Woolworths shares will struggle to outperform over the coming months.

“The supermarket group has experienced a strong recovery in the past year, with the share price recently trading near the upper end of its historical range,” he noted.

“While the company remains high quality with a leading position in Australian food retailing, much of the recent improvement appears to be reflected in the WOW share price,” Bills said.

Summarising his sell recommendation on Woolworths shares, Bills concluded:

Earnings growth is expected to remain relatively steady rather than exceptional, limiting scope for further share price appreciation from current levels.

Following the recent rally, investors may consider taking profits before re-allocating capital to opportunities with stronger growth potential and a more attractive risk-reward profile.

The post Sell alert! Why this expert is calling time on Woolworths and CBA shares appeared first on The Motley Fool Australia.

More reading

• Worried about a downturn? 3 ASX shares and 3 ETFs built to weather it
• ASX 200 drops again as selling continues
• Down 12%: Are CBA shares a buy, sell or hold now?
• Woolworths vs Coles: Which supermarket giant is the better ASX buy?
• Buy, hold, sell: Echo IQ, James Hardie, Woolworths shares

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.

Codan vs Droneshield shares: Which technology play is the stronger bet?

Many Aussie investors interested in emerging technology, defence, or high-growth markets find themselves comparing Codan Ltd (ASX: CDA) and Droneshield Ltd (ASX: DRO). Both companies operate globally, but their approaches, product lines, and recent fortunes are quite different. So, in a battle of Codan vs Droneshield shares, which one looks the better opportunity?

The case for Codan

Codan is a veteran Aussie tech manufacturer with a global footprint. It designs and builds electronics for communications, metal detection, and mining technology, serving government, military, and commercial clients. Through its brands—Codan Communications, Minelab, Minetec, and Defence Electronics—it supplies everything from metal detectors to secure radio systems. Codan’s engineering and support reach stretches from Adelaide to Canada, the US, Europe, and the Middle East, with most sales revenue coming from North America.

What stands out about Codan today? Firstly, its year-to-date return is a whopping 60.41%, signalling powerful share price momentum in 2026. Earnings per share sits at $0.705, with a fully franked dividend yield of 1.07%. It’s now capped at $8.15 billion, a hefty valuation reflecting its strong global customer base and solid reputation. While the dividend yield isn’t high, the payout is consistent and comes with full franking credits.

The case for Droneshield

Droneshield is an Aussie innovator focused squarely on counter-drone technology—a booming niche as drones become a security threat. Its AI-powered devices, like DroneGun Tactical and DroneSentry, are used to detect and neutralise suspicious drones for clients ranging from governments to airports and big venues. Droneshield’s operations span Australia, the US, and the UK, and its gear is increasingly vital for critical infrastructure protection.

But when it comes to fundamentals, Droneshield is still on a very different footing to Codan. Its market cap is $1.48 billion—much smaller—which reflects both its status as a newer company and the fact it’s still unprofitable, with negative earnings per share of -$0.033. It has no history of paying dividends. Perhaps most striking is this year’s share price dive: a 46.10% year-to-date decline for 2026, reflecting a sharp reversal in fortune after a strong run-up in the prior year.

Valuation comparison

Comparing key numbers, you quickly see a gulf in scale, profit, and price.

Metric	Codan (CDA)	Droneshield (DRO)
Market Cap	$8.15 billion	$1.48 billion
P/E Ratio	47.05	433.75
Dividend Yield	1.07% (fully franked)	0.00%
Earnings per Share	$0.705	-$0.033
Year to Date Return	+60.41%	-46.10%

Codan trades at a much lower P/E than Droneshield. Droneshield’s extremely high P/E—despite negative earnings—reflects expectations of future growth, but for now, the profit simply isn’t there. Only Codan pays a dividend, and at a fully franked rate, that’s a perk for income-focused investors.

Recent share price performance

Looking at the most recent share price history (as of mid-September 2026), Codan has been on a roll. Even with a few day-to-day dips, it’s up more than 60% year to date. Its shares reached $44.71 on 14 September 2026, after a strong rally through August.

Droneshield, on the other hand, has had a rough ride. It closed at $1.61 on 14 September 2026, which is down from earlier highs and represents a 46% fall for the year. While there have been some positive trading days in late August, September brought renewed volatility and downward moves.

Which is the better buy?

For me, the choice between Codan and Droneshield comes down to execution and proven growth. Droneshield has exciting technology and huge long-term potential, but right now the numbers are tough to swallow. Revenue growth may be happening, but the lack of profits, the enormous P/E ratio, and the sharp 2026 decline make it a high-risk punt.

Codan, by contrast, is profitable, rewarding shareholders with dividends, and growing sharply in its share price. With a much lower P/E—yet still reflecting optimism—a global business, and 100% franking, it ticks more boxes for a well-balanced portfolio. If I had to pick, my buy would be Codan. While Droneshield is a thrilling underdog, Codan’s combination of growth, profitability, and momentum makes it the standout today.

The post Codan vs Droneshield shares: Which is the better buy? appeared first on The Motley Fool Australia.

More reading

• DroneShield shares just hit a new low. Is the only way up from here?
• DroneShield shares have crashed 51% in a year. Here’s why I’d buy them today
• Are DroneShield shares a buy at their 52-week low?
• These are the 10 most shorted ASX shares
• $10,000 invested in DroneShield and Core Lithium shares 3 years ago is now worth…

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 positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The ASX share market doesn’t stay calm forever, and 2026 has been a reminder of that. With stretched valuations, slowing global growth and stubborn inflation all doing the rounds, more investors are looking to add some ballast to their portfolios.

Here are three defensive ASX shares and three ETFs worth a look.

Woolworths Group Ltd (ASX: WOW)

Supermarkets don’t stop trading in a downturn — people still need to eat. Woolworths’ dominant market share in the Australian supermarket landscape has long held it in good stead even during tough economic conditions.

And the market has noticed: the ASX share is up 33% year to date. Even as households trade down to cheaper essentials, Woolworths tends to keep the lights on and the dividends flowing.

Ramsay Health Care Ltd (ASX: RHC)

Healthcare demand doesn’t switch off when the economy slows. Ramsay is one of the largest and well-established private healthcare providers, and elective surgery volumes plus global diagnostic demand tend to hold up regardless of the cycle.

It’s the kind of business people rely on whether markets are booming or busting. The ASX share is up an impressive 56% in 2026.

Suncorp Group Ltd (ASX: SUN)

Insurance is one of those products people keep paying for no matter what. Insurance demand tends to remain steady even in weaker economic conditions.

Suncorp hasn’t been a growth story over the past 12 months, down 5%, but that’s rather the point. This $21 billion ASX share is there to steady the ship, not chase the rally.

Vanguard Australian Shares Index ETF (ASX: VAS)

For broad, low-cost exposure with a defensive tilt, the Vanguard Australian Shares Index ETF has characteristics that make it more resilient than many global indices, leaning on Australia’s banks, resources and consumer staples sectors.

It’s a simple, set-and-forget way to add local stability to a ASX shares portfolio.

iShares Global Consumer Staples ETF (ASX: IXI)

If you want global exposure to businesses people buy from no matter the economic weather, this ETF is hard to beat. Its holdings include some of the most dependable companies on the planet, such as Walmart Inc (NASDAQ: WMT), and Coca-Cola Co (NYSE: KO).

These are businesses with strong brands, pricing power, and customer loyalty, making their earnings far more stable than companies tied to discretionary spending.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

Cash is king in a downturn, and this fund is built around exactly that idea. It focuses on stocks with exceptional cash generation, holding global giants like Alphabet Inc (NASDAQ: GOOG) and Visa Inc (NYSE: V).

Two companies with the balance sheet strength to self-fund growth without leaning on debt when conditions get tough.

Foolish takeaway

None of these picks will make headlines for explosive growth, and that’s the whole point of defensive investing.

Pairing a couple of resilient ASX shares with a broad ETF or two can help smooth out the ride without forcing you to sit entirely on the sidelines.

As always, defensive doesn’t mean risk-free. It means being better positioned to weather the storm.

The post Worried about a downturn? 3 ASX shares and 3 ETFs built to weather it appeared first on The Motley Fool Australia.

More reading

• Woolworths vs Coles: Which supermarket giant is the better ASX buy?
• Buy, hold, sell: Echo IQ, James Hardie, Woolworths shares
• Vanguard ETFs vs. Betashares ETFs: Who’s coming out on top?
• Experts name CBA and these big-name ASX 200 shares as sells this week
• How to build a superannuation portfolio generating $50,000 a year

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 Alphabet, Visa, and Walmart. The Motley Fool Australia has recommended Alphabet and Visa. 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) closed around 1% lower on Tuesday afternoon. The index is also now down 2% for the year-to-date. Now many have their eye focused on which ASX shares could climb even higher over the next 12 months. Here are three ASX shares that brokers think could return up to 122% over the next year.

Meteoric Resources Ltd (ASX: MEI)

Meteoric Resources released its highly anticipated Definitive Feasibility Study (DFS) for its Caldeira Rare Earths project in July. The study included confirmation of a 151 million tonne (Mt) ore reserve grading 3,524ppm TREO and an impressive life of mine (LOM) post-tax NPV of US$847 million at spot prices.

The project has already secured a Preliminary Environmental Licence, with the construction permit (LI) expected by the end of 2026. Meteoric has signed non-binding offtake agreements with major players in South Korea, Canada, and North America and is in advanced funding talks with several government credit agencies.

The company’s next steps involve obtaining the Installation Licence and finalising project funding to move toward a final investment decision and project construction. 

Last month, Meteoric also announced that its shares will begin trading on the US OTCQB Venture Market under the ticker METOF, broadening access for North American investors and supporting future growth.

Experts seem confident the business could boom over the next 12 months. Market Index data shows that all brokers have a strong buy rating on the ASX rare earths shares. The 38 cent target price implies a potential 122% upside at the time of writing.

Generation Development Group Ltd (ASX: GDG)

Generation Development Group is a diversified financial services company focused on investment and retirement products.

The company’s shares have consistently tumbled lower over the past 12 months after spiking to an all-time high in October last year.

It looks like the share price decline through 2026 is part of a reset after the shares rocketed around 107% through the first three quarters of the 2025 calendar year. Many investors took profits after the shares rallied strongly over a short period.

But the company’s FY26 results were strong operationally. Generation Development Group posted record funds under management last month, up 37% to $46.5 billion. 

Meanwhile its underlying NPAT increased 21% to $40.7 million for FY26. Group revenue also increased 23% to $178.7 million.

Going forward, the group said it is well-placed to benefit from strong structural tailwinds across superannuation, retirement, and managed account markets in FY27. Management expects continued FUM growth, supported by adviser adoption and stable product revenue margins.

Brokers are bullish too. Market Index data shows that all brokers agree on a strong buy rating on the ASX shares. The $5.62 average target price implies about 90% upside at the time of writing.

Judo Capital Holdings Ltd (ASX: JDO)

Judo was one of the strongest-performing bank shares on the ASX earlier this year. However, the ASX bank shares crashed 43% in late June after it downgraded its profit guidance for FY26. Since then, it has struggled to recover. 

Even a stronger-than-expected FY26 result in mid-August hasn’t been enough to renew investor confidence. 

Judo reported a 29% increase in NPAT and a 34% increase in profit before tax, at the top end of its revised guidance range. 

The company also expects FY27 profit before tax to be between $210 million and $220 million, driven by growth and operating leverage. That would translate to a 30% increase.

The sell-off earlier this year seems overdone to me, and the bank appears to be performing better than the market expected.

Market Index data shows the majority of brokers have a strong buy rating on the ASX shares. The $1.51 average target price implies a potential upside of around 50%, at the time of writing.

The post Brokers tip these 3 ASX shares to climb between 50% and 122% in the next 12 months appeared first on The Motley Fool Australia.

More reading

• Top 3 ASX 200 shares now below their 200-day moving average
• Buy, hold, sell: Generation Development, Fletcher Building, Saluda Medical shares
• Top 3 ASX shares I’d buy after the most recent sell-off
• Brokers rate these 5 ASX shares as a strong buy, and tip upsides of 28% to 62%
• Here are the top 10 ASX 200 shares today

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Generation Development Group. The Motley Fool has a “https://www.fool.com.au/fool-com-au-disclosure-policy/”>disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX consumer discretionary shares have suffered a tough 12 months. 

The sector has faced several headwinds over the past year. 

Why are consumer discretionary shares struggling?

Some of the major contributors have been high interest rates, weaker consumer confidence, pressure on household budgets, and growing evidence that retail earnings are softening.

Consumer discretionary shares rely on consumer confidence because they sell non-essential products that consumers can easily delay or cut back on when they feel uncertain about their finances. 

Lower interest rates can reduce mortgage and debt repayments, giving consumers more disposable income to spend on clothing, dining, and entertainment. 

As a result, falling rates, stronger employment and improving consumer confidence can increase discretionary spending and support retailers‘ sales and earnings, while the opposite can hurt them.

One such consumer discretionary stock affected by these pressures is Lovisa Holdings Ltd (ASX: LOV). 

The fashion jewellery and accessories retailer has seen its share price fall 42% in the last 12 months. 

However, a new report suggests it could be a rebound candidate. 

Bell Potter optimistic

Overall, Bell Potter believes this option stands out amongst the retail sector because of its global expansion potential, attractive gross margins and low-price-point proposition. 

The broker said the key attraction is Lovisa’s international growth opportunity, particularly in the US and UK. Bell Potter sees significant room to expand beyond the current ~250 US stores, while the UK could benefit from the exit of a major competitor. 

They also expect relatively easier comparable-sales conditions in the coming months, which could help Lovisa maintain its strong start to FY27.

We continue to see further prospects arising from changes in the US/UK/South African competitor environment with the exit of the key competitor, offsetting risks in the Australian market with a fast growing competitor. 

While we remain cautious on the current weak consumer landscape and investments into market share & store refits to mitigate competitive pressures in key markets, we see a higher tolerance re accessibility from a low price point perspective together with a strong gross margin. LOV stands out in our coverage as a global retailer scaling its presence from ~50 regions with strong US/UK performance with better efficiencies within the US store network.

Healthy upside 

At the time of writing, Lovisa shares are trading at approximately $22.87.

However, the broker has a buy rating and $27.00 price target on the consumer discretionary stock. 

This indicates a healthy upside of 18%. 

The post Is this the best value stock amongst the ASX consumer discretionary sector? appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $6,500 monthly passive income?
• What sort of upside is UBS predicting for Lovisa shares?
• Here are the top 10 ASX 200 shares today
• 33 ASX shares going ex-dividend next week
• How much is needed in superannuation to target a $70,000 annual passive income?

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

DroneShield Ltd (ASX: DRO) shares are in freefall, and investors are starting to ask an uncomfortable question.

The counter-drone technology company closed at $1.60 on Monday, a fresh 52-week low, leaving the share price a staggering 76% below its previous high of $6.70, reached at the end of October last year.

When a stock falls that hard, the temptation to call a bottom gets stronger. But is the risk-reward actually tempting enough to buy? Or is this a falling knife dressed up as a bargain?

The demand story hasn’t gone anywhere

The numbers tell a grim story. DroneShield shares are down 20% over the past month and 49% over the past year. For a stock that was once one of the ASX’s hottest momentum plays, this is a stunning reversal of fortune.

Here’s the twist, though. While the share price has collapsed, the underlying business case hasn’t. Drones are not going away. If anything, they’re becoming more central to modern warfare, border security and the protection of critical infrastructure. That means governments and defence customers still need systems that can detect, track and stop them.

DroneShield is actually converting that demand into hard revenue. Its latest update showed FY26 committed revenue had reached $251 million, with a further $46 million already committed for FY27 and beyond. First-half revenue surged 74% to $125.8 million, while recurring revenue rocketed 229% to $11.5 million — a sign the business is shifting from one-off sales toward something stickier.

The company also landed its first order for its new RfRecon product from an existing Western European military customer. It’s not financially material yet, but it’s early validation for another product in an expanding range.

The catch: this is still a loss-making bet

None of that changes the fact that DroneShield is bleeding cash. First-half underlying EBITDA was $12.4 million in the red, and the statutory loss came in at $32.2 million.

DroneShield shares remain one of the highest-risk stocks on the ASX. Defence contracts don’t arrive on a neat schedule, so revenue can be lumpy and unpredictable.

The company is scaling fast, but investors still need proof that bigger revenue eventually turns into sustainable profit, not just bigger losses. And as governments pour more money into counter-drone systems, larger, better-funded defence contractors could pile into the same opportunity, squeezing DroneShield’s edge.

What are the brokers saying?

TradingView data shows just four analysts cover the stock — split evenly, with two buys and two sells.

The average 12-month price target for DroneShield shares sits at $1.99, roughly 24% above the current share price. Bell Potter is the most bullish at $2.40, with Canaccord Genuity close behind at $2.60.

Foolish takeaway

DroneShield isn’t a stock for the faint-hearted. The growth numbers are genuinely exciting, but the losses, volatility and competitive threats are just as real.

For risk-tolerant investors who believe in the counter-drone thematic, this pullback might be the entry point they’ve been waiting for. For everyone else, this is one to watch from the sidelines.

The post DroneShield shares just hit a new low. Is the only way up from here? appeared first on The Motley Fool Australia.

More reading

• DroneShield shares have crashed 51% in a year. Here’s why I’d buy them today
• Are DroneShield shares a buy at their 52-week low?
• These are the 10 most shorted ASX shares
• $10,000 invested in DroneShield and Core Lithium shares 3 years ago is now worth…
• DroneShield shares are down 75%. Could this huge short bet backfire?

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

Shares in water technology company Vysarn Ltd (ASX: VYS) are up more than 25% over the past 12 months, but according to the team at Morgans there is plenty left in the tank.

Deal failure leads to downgrade

This prediction comes despite the recent announcement that Vysarn had abandoned its proposed acquisition of NewGround, which it had announced in June.

Vysarn was to buy out NewGround for 33 million shares and $25 million in cash, with the deal expected to be 25% earnings per share accretive to Vysarn shareholders.

Morgans said the failure of the deal led them to downgrade their pre-tax profit expectations for Vysarn by 14% in FY27 and 19% in FY28, which would be the first full year of ownership.

But the broker added that Vysarn was now cashed up.

As they said:

Unwinding the cash consideration and noting the recent $65m raise – which included ~$15m for growth initiatives and working capital – the company has significant balance sheet optionality.

Morgans reduced its price target on Vysarn shares from $1.40 to $1.20, compared to 78 cents currently, but said it was still a solid business.

The broker said:

VYS is transforming into a multi-jurisdictional, vertically integrated water business. The company is continuously deploying cash into engineering, facilities management and consulting businesses, which is a sound strategy that should see the company continue to improve in quality. Moreover, the prospects of owning and selling water … continue to strengthen.

Solid growth in earnings

Vysarn’s FY26 operational revenue grew by 31% to $140 million, while net profit was up 41% to $15.1 million.

The company said of the result:

In FY2026, Vysarn continued to develop and execute its strategy to be a leading vertically integrated water services and infrastructure provider across multiple geographies and sectors in Australia. The Company maintained its trend of material year on year earnings growth delivered by the performance of its diversified water services across consultancy, hydrogeological drilling, test pumping, managed aquifer recharge (MAR) and wastewater treatment. While Vysarn’s growth to date has been underpinned by the iron ore sector in Western Australia (WA), the Company’s targeted pursuit of various diversified growth opportunities across other sectors and geographies is starting to bear fruit. The Company anticipates that meaningful organic growth in future periods will start to be driven by sectors and regions other than resources and WA.

The company said it would remain on the lookout for more acquisitions, and was also intending to invest heavily in senior management.

Vysarn is valued at $496.5 million.

The post This ASX water technology stock could jump 45% Morgans says appeared first on The Motley Fool Australia.

More reading

• Vysarn FY26 earnings: Revenue and profit surge

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

A comfortable retirement means something different to everyone, but having a target in mind for your retirement income brings peace of mind.

There are calculators online, such as the federal government’s Moneysmart calculator, which can show you how much in today’s dollars you are likely to have at retirement, depending on your current circumstances.

This is extremely useful as it allows you to adjust your superannuation contributions if you feel you’ll be falling short of what you need.

But how do you figure out what you need in the first place?

What is a comfortable retirement?

According to the Association of Superannuation Funds of Australia’s (ASFA) retirement standard, singles need $56,166 in income per year to have a comfortable retirement, while couples need $78,998.

Their definition of a comfortable retirement involves the ability to afford top-level private health cover, to own and maintain a reasonable car, to travel occasionally and to afford social activities.

Keep in mind, though, that ASFA’s standard assumes you own your own home and also draw a part pension once you hit the age of 67.

How much superannuation do I need to earn $70,000 per year in passive income?

Today we’re assuming you’re aiming for an income stream of $70,000 per year.

I will calculate this on the basis of dividends alone, with no drawdown of capital.

If you were able to earn a very high dividend yield of 10%, you’d need just $700,000 in retirement savings.

I’d suggest this level of earnings is unsustainable.

If you earned just 5% you’d need double this, at $1.4 million.

But I’d argue that with the benefit of franking credits, this is aiming too low.

So let’s assume you could earn 7.5%. In this case, you’d need $933,333 in superannuation savings.

Franking credits are crucial to this equation. If you invest in fully franked dividends, you get back all the tax the company has already paid.

This is because retirees are not taxed on their superannuation earnings.

In practical terms, this means a share paying a 5% dividend yield actually pays 7.14% once franking credits are included.

So what shares might help hit this target?

Real estate investment trusts can be solid investments.

Digico Infrastructure REIT (ASX: DGT) pays a 4.65% dividend, albeit unfranked, GPT Group (ASX: GPT) pays 5.38%, and Centuria Office REIT (ASX: COF) pays 11.36%.

Infrastructure stocks such as APA Group Ltd (ASX: APA) and toll roads operator Atlas Arteria Ltd (ASX: ALX) pay healthy dividends of 5.33% and 8.98%, respectively.

Among the utilities, Origin Energy Ltd (ASX: ORG) is paying 5.14% fully franked, AGL Energy Ltd is paying 5.9%, and Telstra Ltd (ASX: TLS) is paying 4.34%, 90% franked.

In the financial services sector, Regal Partners Ltd (ASX: RPL) is paying 11.53%, Bank of Queensland Ltd (ASX: BOQ) is paying 6.08%, and Westpac Banking Corporation (ASX: WBC) is paying 4.45%.

How to give your super a boost

If you want to top up your superannuation, it’s also worth reading up on concessional contributions, which are contributions you can make to your superannuation each year up to a cap of $32,500, which are only taxed at 15%.

Keep in mind that the $32,500 cap includes any employer contributions and salary sacrifice contributions.

The post How much superannuation do I need to earn $70,000 per year in passive income? appeared first on The Motley Fool Australia.

More reading

• Are Telstra shares a good buy for passive income?
• Westpac, ANZ, NAB or CBA shares? Which ASX bank stock should I buy for $5,000 a year in passive income?
• Worried about a recession? These ASX shares would be just fine
• How much is needed in superannuation to target a $6,500 monthly passive income?
• How much superannuation is needed to target $5,500 per month in passive income?

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

Well, that didn’t last long. After yesterday’s tentatively positive start to the trading week, many investors may have hoped we had turned a corner on last week’s disastrous performance of the S&P/ASX 200 Index (ASX: JO). Alas, it was not to be.

The ASX 200 started in red territory this morning and only got worse over the session. By the time trading ended, the index had lost 0.88% of its value and had settled at 8,672.5 points.

This rather terrible Tuesday for Australian investors came after a similarly downbeat night on Wall Street overnight to kick off the American trading week.

The Dow Jones Industrial Average Index (DJX: .DJI) did start strong, but ended up recording a 0.29% loss.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared even worse, dropping 0.56%.

But let’s get back to the local markets now and take stock of how the various ASX sectors handled today’s difficult trading conditions.

Winners and losers

Despite today’s pessimism, we still saw a few sectors make hay.

But first, it was gold shares that copped the worst of it. The All Ordinaries Gold Index (ASX: XGD) ended up crashing 3.08%.

Broader mining stocks had a rough one as well, with the S&P/ASX 200 Materials Index (ASX: XMJ) cratering 2.21%.

Continuing with the commodities theme, energy shares also had a shocker. The S&P/ASX 200 Energy Index (ASX: XEJ) tanked 1.62% this session.

Financial stocks had a day to forget as well, illustrated by the S&P/ASX 200 Financials Index (ASX: XFJ)’s 1.08% plunge.

Real estate investment trusts (REITs) fared a little better. The S&P/ASX 200 A-REIT Index (ASX: XPJ) still lost 0.59%, though.

Industrial shares were right behind that, with the S&P/ASX 200 Industrials Index (ASX: XNJ) sliding 0.43%.

Our last losers this Tuesday were utilities stocks. The S&P/ASX 200 Utilities Index (ASX: XUJ) ended up slipping down 0.12%.

Let’s turn to the green sectors now. Leading the winners were healthcare shares, as you can see from the S&P/ASX 200 Healthcare Index (ASX: XHJ)’s 1.5% surge.

Consumer staples stocks held their value, too. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) jumped 0.88% this session.

Its consumer discretionary counterpart was just behind that, with the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) leaping 0.87%.

Communications stocks were spared as well. The S&P/ASX 200 Communication Services Index (ASX: XTJ) advanced 0.32%.

Finally, tech shares managed to stay on the right side of the line, evident by the S&P/ASX 200 Information Technology Index (ASX: XIJ)’s 0.29% bump.

Top 10 ASX 200 shares countdown

Healthcare stock 4DMedical Ltd (ASX: 4DX) was our chart-topper this Tuesday. 4DMedical shares roared 8.72% higher this session to close at $3.74 each.

This came despite no fresh news or announcements from the company today.

Here’s how the other top stocks landed their planes:

ASX-listed company	Share price	Price change
4DMedical Ltd (ASX: 4DX)	$3.74	8.72%
Telix Pharmaceuticals Ltd (ASX: TLX)	$17.75	8.63%
Life360 Inc (ASX: 360)	$20.52	5.02%
Perpetual Ltd (ASX: PPT)	$18.70	3.54%
News Corporation (ASX: NWS)	$47.21	3.19%
AUB Group Ltd (ASX: AUB)	$28.91	3.18%
New Hope Corporation Ltd (ASX: NHC)	$6.47	3.03%
ResMed Inc (ASX: RMD)	$31.37	2.85%
JB Hi-Fi Ltd (ASX: JBH)	$67.19	2.85%
Megaport Ltd (ASX: MP1)	$16.79	2.69%

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Domino’s Pizza, Telix Pharmaceuticals, Westfarmers shares
• ASX 200 drops again as selling continues
• $10,000 invested in Zip and New Hope shares 3 years ago is now worth…
• New Hope shares near 52-week high. Here’s what stood out in the result
• 3 ASX 200 shares tipped by experts to jump 30% to 62%

Motley Fool contributor Sebastian Bowen 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 Life360, Megaport, ResMed, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Life360 and ResMed. The Motley Fool Australia has recommended Aub Group and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.