Category: Stock Market

The Lynas Rare Earths Ltd (ASX: LYC) share price has been outperforming the market over the past 12 months.

During this time, the rare earths producer’s shares are up an incredible 190%.

Does this make them overvalued? Let’s see what analysts at Bell Potter are saying about the high-flyer.

What is the broker saying?

Bell Potter has had a sudden change of tune on the Lynas share price.

After warning that its shares were severely overvalued and in danger of crashing deep into the red, the broker now feels that they are about fair value.

The catalyst for this appears to have been an announcement this week relating to its JARE offtake agreement. It explains:

LYC announced after market it had extended the JARE (Japan Australia Rare Earths B.V.) offtake agreement to 2038. The extended agreement allows for deliveries of up to 7,200tpa NdPr, subject to no opportunity loss to LYC, with firm commitments of 5,000tpa. In addition to the NdPr sales, LYC agrees to sell up to 75% of all Heavy Rare Earth (HRE) oxides produced at Lynas Advanced Materials Plant (LAMP) to Japan, with firm commitments of 50%, at prices and terms which represent no opportunity loss for LYC.

The pricing regime under which the agreement has been struck sets a floor price of US$110/kg, with joint participation in prices above US$150/kg. Should LYC achieve a price in excess of US$150/kg for NdPr, they agree to share 30% of the upside with JARE to a maximum of US$10m per calendar year. The updated agreement is subject to an annual review process.

Bell Potter highlights that this effectively means that Lynas is guaranteed revenue of approximately $775 million from the arrangement. It adds:

This effectively guarantees revenue of ~A$775m at the current exchange rate for NdPr and accounts for 48% of the targeted production rate of 10.5ktpa. We have calendarized the Visible Alpha consensus estimates over the next three years to work out the incremental revenue from the introduction of the price floor on the NdPr only. The result is a 7% increase in Revenue on consensus estimates for CY26, and 3% for CY27 and CY28.

In light of this, the broker has upgraded its earnings estimates materially through to FY 2028, which has had a major impact on its valuation.

Lynas share price gets valuation boost

According to the note, Bell Potter has upgraded Lynas’ shares to a hold rating with a price target of $19.00. This is up 64% from its previous price target of $11.60.

Commenting on its upgrade, the broker said:

We continue to see risks around the valuation premium and multiple, which in our opinion are pricing in perfection in an imperfect world. However, we note that the announcement safeguards a substantial portion of revenue and earnings, reducing the impact of adverse price swings should additional supply enter the market over the coming years and somewhat justifying that premium. Our recommendation shifts from Sell to Hold and our TP increases to $19.00/sh (previously $11.60/sh).

The post Why this broker just boosted its Lynas share price valuation by 60% appeared first on The Motley Fool Australia.

More reading

• 2 ASX stocks to buy and 1 to sell
• Up 192%, where to from here for Lynas shares?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Why Brazilian Rare Earths, Lynas, Macquarie Technology, and Ora Banda shares are pushing higher today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. 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.

Medallion Metals Ltd (ASX: MM8) this week released some news about its Lounge Lizard Gold deposit in Western Australia, with new drilling validating historical exploration results and moving it closer to being a viable project for the company.

The team at Canaccord Genuity follows the company and has a very bullish share price target on the stock, but more on that later.

First to what the company announced this week.

Historical gold hits hold up

The Lounge Lizard deposit is part of the recently-acquired Forrestania Gold Project, which Medallion is looking to develop into a gold processing hub.

Medallion was seeking to replicate the results from historical drilling with new drilling over the deposit, and did so, returning intersections including 23m at 5.85 grams per tonne of gold and 21m at 4.02 grams per tonne of gold.

The company said the mineralisation was defined along a 1km strike length and remained open along strike and at depth.

Medallion managing director Paul Bennett said regarding the results:

The Forrestania Gold Project represents the dominant ground holding on a historically productive and fertile greenstone belt that has yielded multiple gold discoveries. Lounge Lizard represents the first step by Medallion to systematically unlocking the broader gold opportunity across the Project. Historical work has outlined a consistent mineralised system over approximately one kilometre of strike, with limited systematic gold exploration undertaken in recent decades. With the asset now under our control, we are progressing multiple work streams to define resources and assess development pathways. Our strategy is to establish Forrestania as a long-term gold processing and production hub in the region, supported by multiple potential feed sources across the tenure.

The Forrestania project is about 450km east of Perth, and includes the Cosmic Boy concentrator and associated infrastructure, which is intended to form the basis of a planned gold processing hub.

Historical drilling at Lounge Lizard was carried out between 1995 and 1999 and the company said it has started a systematic validation of the drilling database, which should support a maiden mineral resource estimate targeted for the third quarter of 2026.

Medallion said two shallow open pits were developed over the deposit in 1996-97, with reported production of 244,602 tonnes of ore at a grade of 4.54 grams per tonne.

But following the discovery of nickel sulphides at the nearby Flying Fox deposit in 2003, “regional exploration focus shifted toward nickel and gold exploration at Lounge Lizard largely ceased” the company said.

Shares looking cheap

Canaccord, which covers Medallion shares, noted the news this week, but said it was not currently modelling the Lounge Lizard deposit into its calculations.

Even so, Canaccord has a price target on Medallion shares of 95 cents, compared with the current share price of 46.5 cents.

Medallion was valued at $369.8 million at the close of trade on Wednesday.

The post This junior ASX gold developer could more than double: Broker appeared first on The Motley Fool Australia.

More reading

• 3 ASX small-caps that should be on every investor’s radar

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.

Shares in IperionX Ltd (ASX: IPX) are tumbling on Thursday after the advanced materials company released its latest update.

At the time of writing, the IperionX share price is down 16.81% to $5.94.

Despite the heavy sell-off, the stock is still up about 6% in 2026 and remains well above where it traded a year ago.

So, what has triggered such a big reaction from investors?

A deeper loss in the latest results

According to the company’s half-year report for the 6 months to 31 December 2025, IperionX recorded a net loss of US$34.8 million.

This widened significantly from the US$16.2 million loss reported in the prior corresponding period.

The increase was largely driven by higher spending across several areas. Much of this relates to developing titanium production technology and scaling operations.

Research and development expenses came in at around US$10.8 million, reflecting ongoing work on IperionX’s proprietary titanium manufacturing processes.

Exploration and evaluation costs also rose to US$3.3 million, linked to progress on the company’s Titan Critical Minerals Project in Tennessee.

Meanwhile, corporate and administrative costs increased to roughly US$16.1 million, as the company expanded its operations and workforce.

Heavy investment in titanium production

Management says the spending reflects a major build out of its titanium manufacturing capabilities in the United States.

IperionX is developing technologies aimed at producing low-cost, low carbon titanium metal using recycled scrap titanium and domestically sourced minerals.

During the period, the company continued ramping up activity at its titanium manufacturing campus in Virginia, which is expected to scale production significantly in coming years.

The company also highlighted progress on its plan to expand production capacity to around 1,400 tonnes per year by 2027.

In addition, IperionX continues working toward a definitive feasibility study (DFS) for the Titan Critical Minerals Project. This project could provide a large domestic source of titanium, zircon, and rare earth minerals.

Strong government backing and new orders

Despite the larger losses, the company pointed to several strategic milestones during the period.

One key highlight was ongoing support from the US government, which is funding efforts to build a secure domestic titanium supply chain.

IperionX has previously been awarded funding and contract opportunities worth up to US$99 million through the US Department of War.

The company also secured a prototype purchase order worth US$300,000 linked to a defence program involving advanced titanium components.

Management believes these partnerships could open the door to significantly larger commercial contracts in the future.

What’s next for IperionX?

IperionX is still in the development phase, so losses are expected as it invests heavily in technology and production capacity.

However, management’s long-term strategy is ambitious.

The company aims to become a leading US producer of high-performance titanium components. It is targeting production of more than 10,000 tonnes per year by 2030.

Whether the company can successfully scale production and achieve those goals will be something to watch closely.

The post This ASX stock just plunged 16% today. Here’s what spooked investors appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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• Here are the top 10 ASX 200 shares today

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.

ASX oil and gas shares are climbing again today. Ampol Ltd (ASX: ALD) shares are up 3.7% to $30.50, and Beach Energy Ltd (ASX: BPT) shares have climbed 2.47% to $1.143.

Even leading Australian oil and gas producers and suppliers, Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) shares, are outperforming the S&P/ASX 200 Index (ASX: XJO) at the time of writing. 

Santos shares are 1.29% higher at $7.48 a piece, while Woodside shares are 1.82% higher at $30.98 a piece, at the time of writing.

For context, the ASX 200 Index is trading in the red, down 1.19% for the day so far.

Why are these ASX energy stocks climbing higher today?

The price of oil has rebounded, creating a strong tailwind for ASX shares involved in oil transportation, supply, or production.

Oil prices peaked at a multi-year high of over US$100 per barrel earlier this week before temporarily dropping to below the US$80 mark. The price climb has now resumed. 

According to Trading Economics, the price of WTI crude oil has now rocketed back up past US$90 per barrel. At the time of writing, oil is trading at US$93.566 per barrel. That’s a 7.05% increase in one day. The fuel is now 48.83% higher over the past month.

The price of Brent crude oil has also jumped to a multi-year high of US$97.788 per barrel. That’s a 6.29% increase over the day and a 44.79% hike from last month.

Trading Economics stated that persistent concerns around the Iran war have overshadowed the International Energy Agency (IEA)’s approval for nations to release emergency oil reserves.

Trading Economics said:

In the latest developments, Iraq halted operations at its oil terminals after two oil tankers were targeted in Iraqi waters, underscoring heightened supply risks in the Middle East.

Iran also told intermediaries that the US must guarantee that neither it nor Israel will strike the country in the future for a ceasefire to be considered, which Washington is unlikely to accept. 

Additionally, the crucial Strait of Hormuz also remains effectively shut, with several commercial vessels reportedly struck off the coast of Iran. That has prompted major Middle Eastern producers to significantly curb output, tightening global supply further. 

Will Ampol and Beach Energy shares keep climbing higher?

Analysts are bullish on the outlook for Apmol shares but more bearish about Beach Energy stock.

Out of 11 analysts, nine have a buy or strong buy rating on Ampol, with a maximum target price of $36 over the next 12 months. That implies a 18.21% upside at the time of writing.

For Beach Energy, analysts are mostly neutral on the stock. Out of 15, seven have a hold rating, six have a sell or strong sell rating, and the other two have a strong buy rating. The maximum target price of $1.350 implies a potential 18.21% upside at current levels.

The concern is that these shares are heavily dependent on global oil prices, and as recent price movements have shown, oil is very volatile at the moment. Ongoing conflict in the Middle East only adds to concerns about near-term volatility and share price risk, with some warning that oil prices could keep rising.

The post Why are Ampol, Beach Energy shares jumping higher again today? appeared first on The Motley Fool Australia.

More reading

• Why Collins Foods, St George Mining, Whitehaven Coal, and Woodside shares are pushing higher today
• 5 things to watch on the ASX 200 on Thursday
• How much do I need to invest in Woodside and BHP shares for $10,000 a year in passive income?
• BHP and Woodside linked in CEO race as top executive emerges as contender
• Are these ASX energy shares still a buy after jumping 20% (or more)?

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 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.

Guzman Y Gomez (ASX: GYG) shares are taking a tumble today.

Again.

Shares in the S&P/ASX 200 Index (ASX: XJO) Mexican fast food restaurant chain closed yesterday trading for $19.18. In early afternoon trade on Thursday, shares are changing hands for $18.46 apiece, down 3.8%.

For some context, the ASX 200 is down 1.1% at this same time.

Unfortunately for longer-term stockholders, today’s underperformance is not unusual.

Indeed, with today’s intraday losses factored in, Guzman Y Gomez shares are down a painful 43.6% since this time last year.

The ASX 200 stock did pay two fully franked dividends over the year, totalling 20 cents a share. But a 1.1% trailing dividend yield doesn’t come close to making up for those capital losses.

By now, even those investors who were able to take part in the initial public offering (IPO) on 20 June 2024 are sitting on losses.

IPO investors were able to pick up shares for $22.00. By the end of the first trading day on the ASX, the stock had surged to $30.00 a share.

By early December of 2024, Guzman Y Gomez shares had surged to $43.35 each. But it’s been mostly downhill since then.

And looking ahead, Red Leaf Securities’ John Athanasiou believes shares could have further to fall (courtesy of The Bull).

Time to sell Guzman Y Gomez shares?

“GYG is a Mexican themed restaurant chain,” Athanasiou said. “We retain a sell rating despite Australian brand strength.”

Athanasiou cited concerns about the company’s growth plans in the United States as potentially hampering Guzman Y Gomez shares.

“Expansion in the United States is in its early stages and carries execution risk. Challenges include increasing labour costs, operating costs and competition,” he said.

Athanasiou added, “Revenue and profit growth were overshadowed by share price weakness after the company released its first half result in fiscal year 2026 on February 20.”

Indeed, Guzman Y Gomez shares crashed 13.9% on 20 February. And that came after the company reported a 23.3% year on year increase in half year underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $33.0 million.

Market expectations were clearly high, with the stock selling off despite Guzman Y Gomez achieving a 44.9% year on year increase in reported net profit after tax (NPAT) $10.6 million.

“In our view, investors are paying a premium for ambitious long term store targets. In a higher cost-of-capital environment, the valuation leaves little margin for error,” Athanasiou concluded.

The post Down 44% in a year, why Guzman Y Gomez shares may have further to fall 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.

The S&P/ASX 200 Index (ASX: XJO) is having a disappointing day on Thursday. In afternoon trade, the benchmark index is down 1.35% to 8,624.7 points.

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

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down 4.5% to $10.22. Investors have been selling the defence and space company’s shares after it revealed that the Australian Securities Exchange (ASX) has reviewed its continuous disclosure practices. The ASX has formed the view that a previous announcement by EOS on 15 December 2025 regarding a conditional US$80 million high-energy laser contract failed to adequately describe market sensitive information. The stock exchange operator has directed EOS under Listing Rule 18.8(k) to review its continuous disclosure policy.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is down a further 2.5% to $1.76. The fund manager’s shares have dropped this week following the release of its latest funds under management (FUM) update. GQG Partners reported a 4.3% increase in FUM to US$172.9 billion during the month of February. However, this was driven by investment performance, which offset net outflows of US$3.2 billion. The company’s net outflows were recorded across all strategies.

Liontown Ltd (ASX: LTR)

The Liontown share price is down 2.5% to $1.59. This has been driven by the release of the lithium miner’s half-year results. Although Liontown more than doubled its revenue to $207.5 million, it recorded a statutory net loss after tax of $184 million. Commenting on its performance, Liontown’s CEO, Tony Ottaviano, said: “Kathleen Valley is now a 100% underground operation. We have delivered a one million tonne per annum underground run-rate on schedule, sold 190,000 tonnes of concentrate across ten shipments, and more than doubled revenue period to period. The underground ramp-up is on track and we expect the second half to be materially stronger as volumes, recoveries, and pricing all continue to improve.”

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is down almost 8% to $6.82. This may have been driven by concerns over how the war in the Middle East could impact the online furniture and homewares retailer. With shipping costs surging, there are fears this could hit its profitability in the second half of FY 2026.

The post Why EOS, GQG, Liontown, and Temple & Webster shares are tumbling today appeared first on The Motley Fool Australia.

More reading

• Why are EOS shares crashing 10% today?
• Buy this ASX 200 stock for an 11% dividend yield in 2026 and 2027: Morgans
• Liontown shares drop on $184m half-year loss
• Liontown: Production and revenue jump as underground ramp-up continues
• 2 compelling ASX shares experts rate as buys in March

Motley Fool contributor James Mickleboro has positions in Gqg Partners and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems and Temple & Webster Group. The Motley Fool Australia has recommended Gqg Partners and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Westgold Resources Ltd (ASX: WGX) are lower on Thursday after the gold miner released an announcement this morning.

At the time of writing, the Westgold share price is down 1.88% to $6.28.

Despite today’s decline, Westgold shares have surged over 150% in the past year. This has been supported by rising gold prices and strong investor interest in the yellow metal.

Here’s what the company revealed in today’s update.

Westgold secures $600 million in new financing facilities

According to the release, Westgold has secured a new $600 million syndicated revolving credit facility. The funding comes from a group of major international and Australian lenders.

The new 5-year facility replaces the company’s previous financing arrangements. It provides Westgold with access to $600 million in undrawn liquidity that can be used for general corporate purposes.

Importantly, the facility is unsecured, meaning the company has not pledged specific assets as collateral. It also carries no mandatory hedging requirements and no cash sweep obligations, giving management greater flexibility in how it manages its balance sheet.

The lending syndicate includes several major banks, such as Commonwealth Bank of Australia (ASX: CBA), Oversea Chinese Banking Corporation, RBC Capital Markets, Societe Generale, and Westpac Banking Corp (ASX: WBC).

The facility is structured across 3 separate tranches that mature in 2029, 2030, and 2031.

Interest on borrowings will be based on the BBSY benchmark plus a margin, which is typical for facilities of this type.

A stronger balance sheet and more financial flexibility

Westgold Managing Director and CEO Wayne Bramwell said the financing arrangement strengthens the company’s financial position. He added that it provides additional flexibility as the business pursues growth opportunities.

Bramwell said Westgold does not require additional funding at this stage. However, securing long-dated liquidity allows the company to continue investing and expanding with confidence.

The CEO also highlighted that the company finished 2025 with more than $600 million in treasury. The new facility lifts its total available liquidity to over $1.2 billion.

Management said the additional funding capacity strengthens the balance sheet and provides greater flexibility as the company advances its 3-year strategy.

Why the share price may still be falling

While the update appears positive from a strategic perspective, the Westgold share price has slipped modestly.

Announcements like this do not always move a share price immediately, particularly when they relate to funding rather than earnings.

Resource stocks can also move with changes in the gold price, broader market conditions, or after strong rallies.

And Westgold has had a strong run recently. After such gains, it is not unusual to see some investors lock in profits.

What to watch next?

With the balance sheet now strengthened and significant liquidity available, attention now turns to production growth, cost control, and future expansion plans.

If gold prices remain elevated and Westgold continues to execute its strategy, the company could surge in the months ahead.

The post What just happened to the Westgold share price? appeared first on The Motley Fool Australia.

More reading

• Westgold Resources secures $600m syndicated facility in balance sheet boost
• How much is this ASX gold miner worth after its recent big news?
• Why Life360, St George Mining, Telix, and Westgold shares are charging higher today
• This ASX gold stock is trading higher after greenlighting expansion plans
• Westgold Resources gives green light to $145m Higginsville expansion

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.

Qantas Airways Ltd (ASX: QAN) shares soared back onto passive income investors’ radars in 2025.

That was when we saw the return of the S&P/ASX 200 Index (ASX: XJO) airline’s coveted dividends.

As you may recall, Qantas suspended its twice-yearly dividend payouts at the start of 2020. This followed the outbreak of the global pandemic and the ensuing travel bans, which saw aircraft temporarily mothballed the world over.

But with air travel back in full swing, Qantas is again paying fully-franked dividends.

We’ll look at just how many Qantas shares you’d need to buy today to bring in $10,000 a year in passive income below.

But first, a few important reminders.

Trailing yields and diversifying your passive income portfolio

When you’re trying to gauge the upcoming passive income potential of ASX 200 dividend stocks like Qantas, you can look at forecast yields or trailing yields.

Forecast yields are simply analysts’ best guesses at a company’s upcoming profitability. Those guesses may, or may not, prove out.

Trailing yields, on the other hand, are backward-looking. While we’ll employ trailing yields below, the future passive income payouts from Qantas shares may be higher or lower depending on a range of macroeconomic and company-specific factors.

For Qantas, that includes future travel demand, which I expect will remain strong. Fuel costs also have a big impact on any airline’s profitability. While fuel costs have surged recently amid the Middle East conflict, global oil prices could potentially come down just as quickly once the conflict winds down and vital shipping routes reopen.

The second thing to bear in mind is that a properly diversified income portfolio will contain more than just a single ASX dividend stock. To reduce the risk of your income stream taking a big hit, you should consider investing in 10 to 20 ASX dividend stocks, ideally across various sectors and geographic locations.

Now, back to Qantas…

Getting aboard Qantas shares for $10,000 a year in passive income

Qantas paid eligible stockholders a final fully-franked dividend of 26.4 cents a share on 15 October.

The ASX 200 airline will pay a fully-franked interim dividend of 19.8 cents a share on 15 April. It’s a bit too late to grab that latest passive income payout, however, with Qantas having traded ex-dividend on Tuesday, 10 March.

That works out to a full-year payout of 46.2 cents a share.

Meaning that you’d need to buy 21,645 shares today (based on the trailing yield) to secure that $10,000 a year in passive income, with potential tax benefits from those franking credits.

How much would that cost?

During the Thursday lunch hour, Qantas shares are down 0.6% at $8.77. So, you’d need to invest $189,827 in the ASX 200 airline.

Qantas trades on a fully-franked trailing dividend yield of 5.3%.

The post How many Qantas shares do I need to buy for a $10,000 annual passive income? appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares I’d buy with $5,000 today
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• Nosedive: Why did Qantas shares crash 9% today?
• Why Catapult Sports, CBA, Dyno Nobel, and Qantas shares are sinking 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 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 Siteminder Ltd (ASX: SDR) share price has dropped around 50% in the last six months, as the chart below shows. I view this as a great time to invest in the business because I think it is one of Australia’s top shares.

I’m not just saying I think it’s a great buy – I recently put some of my own investment money into buying a small slice of the ASX tech share.

It provides software for hotels around the world to manage their operations, connect with accommodation booking providers, view data on room pricing, and automate hotel processes.

The business recently reported its FY26 half-year results and demonstrated both strong growth and improving profitability. I think the market is underestimating the company’s potential to be one of Australia’s top shares, and AI won’t have the negative impact the market seems to be pricing.

Great revenue growth

The business delivered very good growth in the FY26 half-year result, with total revenue growth of 25.5% to $131.1 million. Within that, subscription revenue increased 17.7% to $78.1 million, and transactional revenue soared by 39.1% to $53 million.

Net property additions in HY26 were 2,900, bringing the total number of properties to 53,000. Siteminder said that it has continued its strategy of pursuing larger properties.

Siteminder’s new initiatives are within what it’s calling its ‘smart platform’ with three offerings.

Channels Plus has grown to around 7,000 hotels, with ongoing progress in inventory optimisation and expanding distribution use cases. Dynamic Revenue Plus has seen accelerating adoption, with over 20,000 rooms now under management. The Smart Distribution Program broadened its impact across distribution partners.

The improved adoption of the smart platform is significantly increasing the value of each subscriber for Siteminder. Overall average revenue per user (ARPU) rose 11.3% to $435, which saw a 4.5% increase in subscription ARPU to $257 and a 22.8% jump in transaction ARPU to $178.

With an annual revenue growth target of 30%, the business is worthy of the title of one of Australia’s top shares, in my eyes.

Strong profitability

Siteminder is not just a business delivering fast revenue growth – it’s now becoming profitable. Thanks to the operating leverage of a software business, I expect its profit margins to increase rapidly.

In HY26, its adjusted operating profit (EBITDA) more than doubled to $12.3 million, while adjusted free cash flow reached $2.7 million (an improvement of $3.3 million).

Profit margins are increasing across all levels of the business, as reflected in the gross profit margin, suggesting profit can continue to grow considerably faster than revenue for a long time to come.

Siteminder reported that its HY26 adjusted group gross profit margin increased by 98 basis points (0.98%) to 67.8%. The adjusted subscription margin increased 125 basis points (1.25%) to 86.7% through operating leverage and AI efficiencies, while the adjusted transaction margin rose 558 basis points (5.58%) to 40.1% thanks to the smart platform.

The broker UBS suggests that Siteminder could make a net profit of $21 million in FY27 and $77 million in FY30. That means it’s trading at 13x FY30’s estimated earnings, which looks exceptionally cheap to me and a great valuation to buy 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 positions in SiteMinder. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. 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 course to record a disappointing decline. At the time of writing, the benchmark index is down 1.25% to 8,634.7 points.

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

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price is up 7% to $10.07. This follows news that the quick service restaurant operator is accelerating its expansion in Germany. Collins Foods has agreed to acquire eight KFC restaurants in Bavaria, centred around Munich, increasing its presence and scale in the country. The company also released a trading update which revealed that Australian same store sales are up 3.2% so far in the second half and 2.7% year to date. The company’s CEO, Xavier Simonet, said: “There is a significant growth opportunity for Collins Foods in the German market, and we are pleased to be executing on our expansion in a disciplined manner.”

St George Mining Ltd (ASX: SGQ)

The St George Mining share price is up 7% to 15 cents. Investors have been buying this rare earths developer’s shares after it announced downstream plans that will aim to separate cerium and lanthanum. St George Mining’s executive chair, John Prineas, commented: “The magnet and heavy rare earths hosted in our world-class Araxa rare earths resource are very significant and the main driver for development of a rare earths mining operation. The opportunity to also monetise the cerium component of the Araxa rare earths deposit can add material value to a potential mining operation at Araxa.”

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is up 5% to $9.12. This has been driven by news that three major credit agencies have given the coal miner BB+ ratings with stable outlooks. Whitehaven’s managing director and CEO, Paul Flynn, said: “These credit ratings recognise Whitehaven’s strengthened credit profile, prudent capital management and the successful integration – and initial improvements – at the Daunia and Blackwater metallurgical coal operations, which have enhanced the Company’s diversification, scale and returns through the cycle.”

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is up almost 2% to $30.97. The catalyst for this has been a jump in oil prices overnight. It isn’t just Woodside that is rising today. Other energy shares are rising as well, which has lifted the S&P/ASX 200 Energy index by 1.7% this afternoon.

The post Why Collins Foods, St George Mining, Whitehaven Coal, and Woodside shares are pushing higher today appeared first on The Motley Fool Australia.

More reading

• Why the Whitehaven share price is on the move today
• Why are ASX 200 coal stocks like Whitehaven, Yancoal and New Hope shares smashing the benchmark today?
• Whitehaven Coal earns credit ratings boost, paving way for refinancing
• Guess which ASX 200 stock is rocketing 11% on big Euro news
• 5 things to watch on the ASX 200 on Thursday

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