Category: Stock Market

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.15% to 8,983.3 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher:

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is up 7% to $14.16. Investors have been buying the gold miner’s shares following the release of its quarterly update. The company reported March quarterly gold production of 170,000 ounces and copper production of 11,000 tonnes. This was achieved with an all-in sustaining cost (AISC) of $2,220 per ounce, which underpinned record quarterly net mine cash flows. At Mungari it generated $175 million and at Red Lake it generated $104 million in net mine cash flow. Evolution Mining’s CEO, Lawrie Conway, said: “Evolution continues to generate significant cash flows from consistent operational delivery and disciplined capital allocation. We have rapidly deleveraged by more than 31% in just over two years, reaching a net cash position by the end of March.”

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is up 8% to $2.17. This morning, the biotechnology company announced the acquisition of an exclusive worldwide license to a patented chimeric antigen receptor (CAR) technology platform for precision-enhanced augmentation of therapeutic mesenchymal lineage stromal cell (MSC) products. Mesoblast advised that it plans to incorporate the engineered CARs to further boost effectiveness of its products, with the goal of enhancing the target specificity and augmenting inherent properties of immunomodulation and tissue regeneration.

Nufarm Ltd (ASX: NUF)

The Nufarm share price is up almost 13% to $2.50. This follows the release of a trading update from the agricultural chemicals company this morning. Nufarm revealed that it expects first-half underlying EBITDA to come in between $239 million and $244 million. At the midpoint, that represents 17% growth on the prior corresponding period. This is being driven by better margins in Crop Protection, growth in Hybrid Seeds, and improved contributions from its omega-3 and bioenergy platforms.

Virgin Australia Holdings Ltd (ASX: VGN)

The Virgin Australia share price is up 8% to $2.54. This has been driven by the release of an update from the airline operator today. Virgin Australia advised that its FY 2026 financial guidance remains unchanged, with underlying EBIT and EBIT margin expected to improve in the second half despite a surge in fuel prices. While higher fuel costs are impacting its business, its hedging has helped offset much of the impact. It said: “For the remainder of 2HFY26, the Group is hedged 92% for Brent crude oil and 71% for refining margins. […]  This is expected to result in an increase of fuel costs for 2HFY26 of approximately $30-40m compared to previous expectations.”

The post Why Evolution Mining, Mesoblast, Nufarm, and Virgin Australia shares are storming higher today appeared first on The Motley Fool Australia.

More reading

• Here’s why Virgin Australia shares are flying 7% higher today
• Why is this $25 billion ASX mining stock charging higher today?
• Why Nufarm shares just exploded higher on Wednesday
• Virgin Australia’s FY26 update: Hedging cushions rising fuel costs
• Evolution Mining delivers record cash flow and moves to net cash

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.

The ASX share market is full of a wide variety of businesses that are of different sizes and operate across various industries.

Businesses with smaller market capitalisations could be compelling businesses to look at because they may have longer-term growth potential and the market hasn’t priced in their long-term potential.

Fund managers from Wilson Asset Management (WAM) have picked out two businesses from the WAM Active Ltd (ASX: WAA) portfolio that could deliver good returns.

EchoIQ Ltd (ASX: EIQ)

WAM describes Echo IQ as an Australian medical technology company focused on improving decision-making in cardiology by using artificial intelligence (AI) to detect structural heart disease from echocardiograms.

The fund manager noted that the company received US Food and Drug Administration (FDA) approval for severe aortic stenosis, with additional FDA clearance for heart failure detection expected in the near term.

WAM pointed out that the EchoIQ share price rose by 47% in March after an announcement of an expanded resale and distribution agreement with the Mayo Clinic for EchoSolv HF. The fund manager said that the agreement provides “meaningful clinical validation and materially de-risks the FDA pathway”.

The investment team expects further FDA clearance for the ASX share in the coming weeks, which would significantly expand EchoIQ’s US addressable market and support early revenue generation.

WAM concluded:

We believe additional hospital signings and strategic partnership discussions with multiple Australian and US-based parties remain key near-term catalysts for further share price re-ratings.

Forrestania Resources Ltd (ASX: FRS)

The other ASX share that WAM highlighted from the WAM Active portfolio was Forrestania Resources, a Perth-based mineral exploration company targeting gold, lithium, nickel, and copper deposits, primarily in Western Australia’s Eastern Goldfields, Forrestania, and Southern Cross greenstone belts.

WAM noted that the Forrestania Resources share price declined in March amid a 10% decline for the gold price.

The wider mining sector saw weakness during the month amid forced liquidations and broader macroeconomic volatility, including rising Treasury yields and a stronger Australian dollar.

WAM said it still owns this ASX share in its portfolio because it views recent events as “macro-driven dislocations, rather than a deterioration” of its investment thesis.

The fund manager decided to increase its stake in the ASX share during the March sell-off.

WAM’s investment team concluded its thoughts on the business with the following:

Forrestania Resources remains a compelling, undiscovered gold opportunity on the ASX, led by David Geraghty, who spent 21 years at Mineral Resources Ltd (ASX: MIN) and played a key role in its success. With minimal institutional coverage and broker sponsorship, we see potential for a share price re-rating as near-term catalysts emerge.

The post 2 undervalued ASX shares to buy that experts think could deliver strong returns appeared first on The Motley Fool Australia.

More reading

• Why BHP, EchoIQ, Life360, and Qantas shares are racing higher today
• Which ASX biotech’s shares are rocketing higher on big US news?

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.

Immutep Ltd (ASX: IMM) shares are having a rare breakout session on Wednesday.

After spending most of the year under relentless selling pressure, the biotech stock has suddenly sprung back to life.

At the time of writing, Immutep shares are rocketing 89.74% to 7.4 cents in afternoon trade.

Trading volumes have also lifted well above recent averages, showing how quickly sentiment has shifted on the update.

The rebound looks even more significant because the shares had still been down about 82% in 2026 before today’s rally.

That leaves this as one of the market’s biggest turnarounds of the week.

Here’s what got investors moving back into the stock.

FDA grants a valuable rare disease designation

According to the release, Immutep has received Orphan Drug Designation from the US Food and Drug Administration (FDA) for eftilagimod alfa in soft tissue sarcoma.

Soft tissue sarcoma is a rare cancer with limited treatment options, which makes this a positive step for its long-term commercial potential.

The FDA program offers regulatory support, tax credits, fee waivers, and up to seven years of US exclusivity if approved.

The FDA’s decision was backed by positive Phase II trial results, where efti was used with radiotherapy and Merck’s Keytruda in soft tissue sarcoma patients.

The trial’s 38 evaluable patients delivered a 51.5% major pathological response rate. That was comfortably ahead of the 35% target set by the study and well above historical benchmarks.

Chief executive Marc Voigt said the designation could help support a direct move into a late-stage study after the company completes its ongoing review of the discontinued TACTI-004 program.

Why the rally is so aggressive

The share price reaction makes more sense in the context of what happened last month.

Immutep shares were smashed after its flagship Phase III lung cancer trial was discontinued following an interim futility review.

That update effectively wiped out the company’s biggest near-term value driver and crushed confidence in the lead program.

With investor sentiment already heavily damaged, today’s update has been enough to trigger a strong rebound.

Investors now have another pathway to focus on, while the orphan designation also strengthens the sarcoma program’s long-term commercial appeal.

Foolish takeaway

I think today’s move shows the market had pushed Immutep too low after the lung cancer setback.

The sarcoma program now gives investors a new reason to stay interested, especially with FDA support making the commercial upside more attractive.

The key from here is whether management can turn this momentum into a credible late-stage development pathway.

The post Why this ASX biotech stock just rocketed 89% today appeared first on The Motley Fool Australia.

More reading

• Down 87% since Thursday, why is this ASX 300 healthcare stock sliding again today?
• How does Bell Potter rate these ASX healthcare stocks?

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 consumer discretionary stocks have been largely underperforming in 2026.

Rising interest rates, inflation and subdued consumer confidence have all weighed heavily on investor sentiment. 

When economic headwinds like these hit at once, it can be difficult for discretionary shares to see growth. 

However, the team at Morgans have identified one consumer discretionary stock that is bucking the trend.

The broker has a buy recommendation on The Koala Company Ltd (ASX: KOA). 

Company overview

The Koala Co., Ltd. engages in the retail furniture business. The firm offers sitting furniture, mattresses and bedroom furniture, living room furniture, kitchen and dining furniture, outdoor furniture, and related products. 

The consumer discretionary stock was initially listed on the ASX in late March. 

Its stock price has hovered around the IPO price of $3.80 and is exchanging hands today for roughly $3.75. 

The company is forecasting FY26 revenue of $332 million and net profit of $12.3 million.

In its initial prospectus, Chair Michael Gordon said the company was well-placed for growth.

As a furniture company, Koala is exposed to the global furniture market, which benefits from tailwinds including the growth of e‑commerce, increased time spent at home due to the shift to remote work, a desire to maximise the utilisation of living spaces, a growing emphasis on convenience, premiumisation, and the demand for more sustainable products. The business has a significant opportunity before it to grow in Koala’s established markets, scale its presence in newer markets and enter into additional markets over time to grow the business.

Morgans initiates coverage with a buy

In a note out of the team at Morgans, the broker has initiated coverage on this ASX consumer discretionary stock with a buy recommendation. 

We initiate coverage on Koala Company with a BUY recommendation and $5.13 target price. We think there is a degree of conservatism embedded in both our forecasts and valuation, with the balance of risk skewed to the upside. 

Koala offers an attractive growth profile, underpinned by strong sales growth, margin expansion and significant NPAT growth. The stock screens cheap on a multiple basis, trading on 18.5x FY27 PER versus the peer set average at 27.0x, despite offering one of the strongest growth profiles.

From today’s share price of $3.75, the price target from Morgans indicates a potential upside of almost 37% for this consumer discretionary stock.

The post Morgans just initiated coverage on this consumer discretionary stock with a buy rating appeared first on The Motley Fool Australia.

More reading

• Virgin Australia’s FY26 update: Hedging cushions rising fuel costs
• National Storage REIT: Scheme meetings confirm buyout pathway
• Evolution Mining delivers record cash flow and moves to net cash
• Telix Pharmaceuticals upsizes convertible bonds to US$600 million
• Yancoal Australia announces $2.4bn Kestrel Coal Mine acquisition

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

Virgin Australia Holdings Ltd (ASX: VGN) shares are back in the air. The airline’s share price has jumped 7% to $2.52 during early afternoon trade on Wednesday, as investors cheered an update that suggests the worst may not be ahead after all.

It’s a welcome reprieve for Virgin Australia shares.

Over the past month, the stock had fallen 9%, and it’s still down a steep 28% year to date. That’s a sharp underperformance compared to the S&P/ASX 200 Index (ASX: XJO), which has slipped just 3.1% in 2026.

Financial guidance intact

So what’s changed? Virgin Australia confirmed on Wednesday that its FY26 financial guidance remains intact, despite a surge in fuel prices that has rattled the aviation sector. The airline still expects underlying EBIT and margins to improve in the second half of FY26.

That was the reassurance investors were looking for. Fuel costs are the biggest swing factor for airlines, and recent volatility has been intense. Jet fuel prices have more than doubled since late February, a move that would normally put serious pressure on earnings.

Fuel hedging strategy

But Virgin Australia isn’t exposed in the way many feared. The airline has leaned heavily on its fuel hedging strategy, and it’s paying off. Around 92% of its Brent crude exposure and 71% of refining margin exposure are hedged for the remainder of FY26. That provides a significant buffer against rising costs.

As a result, the expected increase in fuel costs for the second half is now estimated at $30–40 million above earlier forecasts. That’s manageable, not catastrophic.

Fine-tuning fares and capacity

And the company isn’t standing still. Virgin has been actively adjusting fares and fine-tuning capacity to respond to market conditions. Domestic capacity is now expected to rise 1% in the second half, although it will dip slightly in the fourth quarter as the airline stays flexible. That ability to adapt is key.

Importantly, the company also confirmed it has continued fuel supply assurance through to May, easing concerns about potential disruptions during a volatile period.

What next for Virgin Australia shares?

Looking ahead, the outlook remains steady, at least for now.

Virgin says its FY26 expectations hold, assuming no major shocks to demand, fuel prices, or supply. For early FY27, hedging remains strong on crude exposure, though less so on refining margins, and management is keeping a close eye on conditions.

If volatility persists, capacity adjustments remain on the table.

Foolish Takeaway

Today’s rally is all about relief. Investors in Virgin Australia shares were bracing for worse. Instead, they got confirmation that Virgin Australia is managing through the turbulence, with hedging, pricing power, and operational flexibility all playing a role.

After a tough run, that was enough to send the shares flying higher.

The post Here’s why Virgin Australia shares are flying 7% higher today appeared first on The Motley Fool Australia.

More reading

• Why Evolution Mining, Mesoblast, Nufarm, and Virgin Australia shares are storming higher today
• Virgin Australia’s FY26 update: Hedging cushions rising fuel costs
• Down 34% in 2026, are Virgin Australia shares a good buy today?
• Buy, hold, sell: Northern Star, Telix, and Virgin Australia shares
• Virgin Australia shares fly 13% higher: Is this the start of the rebound we’ve all been waiting for?

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

ASX small cap stock Orthocell Ltd (ASX: OCC) delivered a standout performance today, with shares surging 22% (at the time of writing) after the company announced a major commercial milestone in the United States.

What did the company announce?

At the centre of the announcement is approval for Orthocell’s nerve repair product, Remplir, to be used across the U.S. Department of Defence and Veterans Affairs (VA) hospital networks. This opens up access to more than 220 hospitals, including 51 military hospitals and 170 VA medical centres.

That is a potentially transformational development because it provides the company with the opportunity to serve large healthcare systems with consistent patient volumes and a clear need for advanced surgical solutions.

In addition, the nature of the demand matters as much as the quantity. Military and veteran healthcare systems disproportionately handle complex trauma cases, where nerve repair solutions like Remplir are highly relevant. The product has already been used in conflict-related injuries in Ukraine, offering real-world validation in high-intensity environments.

Equally important, Orthocell is not starting from scratch. It already has a U.S. distribution network spanning 17 states and access to more than 115 hospitals via prior approvals. That existing footprint should help accelerate adoption and reduce the lag between approval and revenue generation.

What did management say?

Managing Director Paul Anderson described the approval as “a significant milestone” and “a major step forward in our U.S. commercial strategy.” He noted that Orthocell can now directly engage surgeons within military and VA systems while leveraging its existing distribution network.

His comments reinforce a company increasingly focused on execution and scaling its commercial presence in the U.S.

Foolish bottomline

This is clearly a positive announcement by Orthocell but execution remains key. Approval does not guarantee an easy pathway to commercialisation, and adoption will depend on surgeon uptake and sales effectiveness.

Still, Orthocell appears to be moving in the right direction with the U.S. defence healthcare system potentially acting as a powerful launchpad for broader growth.

The post Orthocell shares soar 22% on landmark US breakthrough appeared first on The Motley Fool Australia.

More reading

• Bell Potter just put a buy rating on this exciting small-cap ASX stock
• Which exciting ASX All Ords stock is jumping on big news?

Motley Fool contributor Kevin Gandiya has no positions 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 Orthocell. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

PYC Therapeutics Ltd (ASX: PYC) shares are back on the move today, extending what has already been a strong week for the clinical-stage biotech.

At the time of writing, the PYC share price has climbed 5.65% to $1.215, building on a 14% gain over the past week.

The latest rise keeps the stock well above last week’s pullback low of $1.05 and suggests buying momentum is rebuilding.

Here’s what investors are focusing on.

Lead ADOA program moves into its next study phase

According to the release, PYC has been cleared to move its lead ADOA drug candidate, PYC-001, into the next trial stage. This followed a safety committee review of early patient data from the 60-microgram dose.

The company can now begin testing repeated 60 microgram doses in patients. This will sit alongside the 10 and 30 microgram groups already being studied in the Myrtle trial.

The trial targets Autosomal Dominant Optic Atrophy (ADOA), a rare inherited eye condition that gradually causes vision loss.

There are currently no approved treatments for the disease.

Management said new data from the study is expected across 2026 and 2027, which gives investors a clearer timeline for the next major updates.

Why this milestone is getting attention

Clinical biotech stocks are often valued on steady trial progress and reduced development risk, not short-term revenue.

The key point here is that the program is moving into higher dosing levels without safety issues serious enough to delay the study.

That keeps the trial on schedule and can support sentiment ahead of future efficacy data.

Because this is a first-of-its-kind RNA therapy targeting the OPA1 mutation, each successful step helps support the program’s progress into larger studies.

A OPA1 mutation is a genetic fault that damages the optic nerve over time, leading to progressive vision loss in people with ADOA.

The company is already funded into 2030 following its February capital raise, which should ease concerns about another raise in the near-term.

Foolish Takeaway

PYC’s latest gain looks linked to another positive step in its lead blindness program.

The company is still pre-revenue, so future trial results are likely to remain the biggest driver of the share price.

In my view, steady safety progress is a good sign that the lead study is moving the right way. It also helps reduce some of the usual risks around early-stage biotech trials.

With more data expected through 2026, the shares could continue responding to each clinical update.

The post This ASX biotech stock just jumped again as its lead drug trial moves ahead appeared first on The Motley Fool Australia.

More reading

• How does Bell Potter rate these ASX healthcare stocks?

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 mining stock Evolution Mining Ltd (ASX: EVN) is charging higher. The share price jumped 7.5% to $14.18 during lunch hour trading after a blockbuster quarterly update.

And it caps off an already stellar run. Over the past 12 months, the ASX mining stock surged 73%, comfortably outperforming the S&P/ASX 200 Index (ASX: XJO), which has risen almost 16% over the same period.

So what’s driving today’s surge?

Record cash flow

Let’s dig deeper. During the March 2026 quarter Evolution generated a massive $406 million in group cash flow, a record result that immediately caught the market’s attention.

Even more importantly, the company has now moved into a net cash position. That’s a big deal for a mining stock. It signals a stronger balance sheet, greater flexibility, and the ability to fund growth while still rewarding shareholders.

Managing Director and Chief Executive Officer Lawrie Conway said:

Evolution continues to generate significant cash flows from consistent operational delivery and disciplined capital allocation. We have rapidly deleveraged by more than 31% in just over two years, reaching a net cash position by the end of March. There is further cash flow upside in the June quarter as we remain on track to deliver on guidance. Our financial position is outstanding with $1,371 million in cash and no debt repayments due until FY29.

Good performance key assets

And the strength wasn’t isolated. Record quarterly net mine cash flows from Mungari and Red Lake stood out, highlighting just how well key assets are performing. Across the board, operational delivery remained solid, with the company continuing to execute at a high level.

There’s more. Evolution remains on track to deliver full-year FY26 gold production at a lower cost than originally guided. That’s a rare combination that investors love. While copper production is expected to land at the lower end of guidance due to weather disruptions at Ernest Henry, the broader picture remains firmly positive.

Then there’s the income story. The ASX mining stock paid its 26th consecutive dividend in April, returning $399 million in cash to shareholders. That kind of consistency reinforces its appeal as both a growth and income play.

What next for the ASX mining stock

Looking ahead, growth is also front of mind. Investments in organic projects at Northparkes and Ernest Henry are progressing on time and on budget, setting the stage for future expansion.

At the same time, exploration is delivering results, with high-grade drilling hits at Mungari and Cowal and multiple targets advancing across North Queensland and Canada. That adds another layer of upside.

And management isn’t slowing down. The company expects to further improve its net cash position in the June quarter, assuming current commodity prices hold. With projects ramping up and operational improvements continuing, production growth and efficiency gains look well supported.

The post Why is this $25 billion ASX mining stock charging higher today? appeared first on The Motley Fool Australia.

More reading

• Evolution Mining delivers record cash flow and moves to net cash
• Is this one of the best ASX 200 gold stocks to buy now?
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Friday
• March was the worst month for the gold price since June 2013. Now what?

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

Qantas Airways Ltd (ASX: QAN) shares are firmly in the spotlight this week after the airline posted a market update and announced new measures to tackle rising fuel prices amid an ongoing conflict in the Middle East.

At the time of writing, the shares are trading 0.72% higher at $9.05 a piece. At one point, just after the market opened, the shares were trading as high as $9.27 each. The latest update means the shares are now down 13.8% for the year to date. However, they’re still 6.1% higher over the past 12 months.

How does tight oil supply and rising prices affect Qantas?

The largest operating cost for airlines is its jet fuel, which is refined from crude oil. 

Australia imports more than 90% of its refined fuel. This means local prices closely follow global oil prices and currency movements. As a result, when oil prices rise due to tight supply or geopolitical tensions, the cost of jet fuel also jumps higher. This then means that airlines, such as Qantas, face higher operating costs which can pressure profits and potentially weigh on their share prices.

What is Qantas doing to offset higher fuel prices?

It was expected that Australian airlines could start to increase ticket prices or add fuel surcharges to help recover some costs, and this was confirmed in the airline’s market update on Tuesday morning.

The company announced that jet fuel prices have more than doubled and remain highly volatile. It confirmed that its fuel costs for the second half of FY26 is now estimated to be significantly higher than prior expectations, at $3.3 billion. It had previously forecast to be around $2.2 billion. 

To offset the higher prices, Qantas will increase ticket prices and reduce domestic capacity by about 5% in May and June. The majority of cuts will be made on routes between major capital cities, where it flies larger aircraft at higher frequencies. It will also temporarily suspend some routes and indefinitely cancel all flights to and from South Mount Gambier from next month. International fares have already risen by 5%.

Are Qantas shares a buy, sell, or hold following the update?

The airline said that around 90% of its second-half fuel exposure is already hedged. Meanwhile, fare increases and route changes will also help to recover part of the pressure.

According to TradingView data, analysts are still very bullish on the outlook for Qantas shares. Out of 15 analysts, 13 have a buy or strong buy rating on the stock. The average target price is $11.30, which implies a 25% upside at the time of writing. However, some think the shares could jump 41.6% higher to $12.80 a piece.

The post Are Qantas shares still a buy after its latest market update? appeared first on The Motley Fool Australia.

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• Why Clarity, Qantas, Universal Store, and Westpac shares are falling today
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• Qantas shares dip after fresh market update puts FY26 in focus
• Qantas Airways flags higher fuel costs and capacity changes in FY26 update
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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.

The Duratec Ltd (ASX: DUR) share price is closing in on its record high on Wednesday, with the contractor again drawing strong buying interest from the market.

In late morning trade, the Duratec share price is up 5.99% to $2.83. This comes after the stock opened as high as $2.86, leaving it just shy of the stock’s all-time peak of $2.90.

The move adds to what has already been a powerful run in 2026, with the shares now up 47% since the start of the year.

Here’s what was announced.

A major defence project moves into its next phase

According to its release, Duratec’s 50:50 joint venture with Ertech has been awarded a $281 million contract tied to infrastructure upgrades at HMAS Stirling in Western Australia.

The project supports future submarine capability works at Diamantina Wharf on Garden Island.

The site is closely linked to the AUKUS pathway and Australia’s long-term naval infrastructure buildout.

This follows an earlier $5.2 million early contractor award in January 2026, which covered initial procurement of long lead items.

With contract design now nearly complete and final approvals close, the latest award moves the joint venture into full delivery. This takes the total contract value of the works to just under $300 million.

The main works contract is expected to run for around 24 months.

Managing director Chris Oates said the award marked a significant milestone and reflected the successful completion of the early contractor involvement planning phase.

He added that the result reinforced the strength of the joint venture’s strategic approach and Duratec’s long-standing relationship with the Department of Defence.

What today’s contract could mean longer term

This contract says a lot about how Duratec’s earnings mix may keep changing.

Winning a contract of this size in a strategically sensitive defence project strengthens its credentials in government and defence infrastructure.

That could help build momentum when bidding for future major works.

It also shifts more revenue toward longer-duration, higher-visibility projects, a mix the market often values more highly than shorter-cycle remediation work.

With the shares already trading close to record highs, investors appear to be watching how that business mix continues evolving.

Foolish takeaway

Duratec continues to build its position in one of the ASX’s more attractive industrial growth stocks.

The shift from planning into delivery on a near-$300 million defence project gives the earnings outlook more weight.

It also strengthens revenue visibility over the next two years.

With the stock now sitting only a few cents below its all-time high, the focus turns to whether this leads to further defence-related contract momentum through FY27.

The post Guess which ASX stock is flying after a huge defence contract win appeared first on The Motley Fool Australia.

More reading

• 2 ASX small-cap shares to buy with big potential for returns
• This ASX contractor just landed a PNG deal. So why is the share price falling?
• Are these ASX shares hitting 52-week highs still worth buying?
• Why it’s not too late to buy this surging ASX All Ords defence stock

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.