Category: Stock Market

The S&P/ASX 200 Materials Index (ASX: XMJ) is up 9% in 2026, further capitalising on last year’s 32% growth.

The materials sector, which is dominated by ASX mining shares, was the best-performing sector of 2025.

This year, it’s running fourth behind energy (up 31%), consumer staples (17%), and utilities (10%).

Commodity prices have been resilient in 2026, which has supported mining stock valuations.

The green energy transition and other factors are providing strong drivers for new long-term growth in Australia’s mining sector.

However, over the next five years, the government forecasts many commodity prices to peak in FY27 and decline through to FY31.

With that said, let’s look at some ASX 200 mining shares with buy recommendations from Bell Potter.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $3.02, up 1.7% today.

This ASX 200 lithium mining share has tumbled 30% in the calendar year to date (YTD).

Bell Potter upgraded PLS Group shares to a buy rating on Wednesday.

The broker cut its 12-month price target from $5.20 to $4.40.

This suggests a potential 45% upside ahead.

Analyst James Williamson said:

We upgrade to a Buy recommendation on recent share price weakness.

At current lithium market prices, PLS will generate substantial earnings and cash flow with the restart of the 200ktpa Ngungaju processing plant.

P2000 and Colina development studies are being progressed, providing organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.

Minerals 260 Ltd (ASX: MI6)

The Minerals 260 share price is 81 cents, up 6.6% today.

This ASX 200 gold mining share has ripped 88% YTD despite a 3% fall in the gold commodity price.

Bell Potter maintained a speculative buy rating on Minerals 260 shares this week.

The broker kept its 12-month target of $1.45 in place.

This suggests a potential 79% upside ahead.

Analyst David Coates said:

MI6 offers gold exposure via the 6.2Moz BGP, valuation uplift through exploration success, project advancement and de-risking as the BGP progresses towards production.

MI6 is now largely funded to develop the BGP and on track to complete a DFS and make a FID in early CY27, plus secure long-lead items and commence early site works.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $44.67, up 0.7% today.

This ASX 200 lithium and iron ore mining share has fallen 19% YTD.

Bell Potter reiterated its buy call on Mineral Resources shares on Wednesday.

The broker slashed its 12-month price target from $75 to $63.

This suggests a potential 41% upside ahead.

Analyst James Williamson said:

Completion of the US$765m MIN-POSCO lithium transaction is expected in the current half, and will accelerate balance sheet deleveraging paired with strong cash flows from iron ore and lithium operations.

MIN’s mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume
growth. The company is strongly positioned to execute its next phase of growth, having reinstated dividends.

The post 3 ASX 200 mining shares to buy with 41% to 79% upside ahead: broker appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares experts are backing for growth amid market weakness
• PLS Group to invest $650m in Pilgangoora upgrades to fuel growth
• 5 ASX 200 stocks analysts have upgraded this week
• Own ASX mining shares? Official forecasts show commodity prices peaking in FY27
• 2 ASX lithium shares to buy with 38% to 120% upside

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

S&P/ASX 200 Index (ASX: XJO) shares are up 0.8% to 8,795 points on Friday.

Let’s take a look at some new ratings from Morgans.

Paladin Energy Ltd (ASX: PDN) 

The Paladin Energy share price is $7.40, up 7% today and down 25% over 12 months. 

Morgans has a buy rating on this ASX 200 uranium mining share.

In a new note, Morgans shaved its 12-month price target down from $13.30 to $13.10.

The broker said: 

PDN’s 1Q27 result reflected the anticipated slow start to FY27, with Langer Heinrich Mine (LHM) uranium production of 1.0Mlbs below consensus expectations of 1.16Mlbs. Uranium sales of 1.16Mlbs were in line with consensus expectations of 1.13Mlbs.

The result was impacted by the flagged and planned July plant shutdown and weaker recovery rates due to ore characteristics.

Mining momentum and realised pricing – mining performance improved qoq following strong performance in 4Q26 and realised pricing increased 12% to US$79.4/lb, a record at LHM.

Following recent share price weakness, we upgrade our rating to BUY (previously ACCUMULATE) with a price target of A$13.10ps (previously A$13.30ps).

Rio Tinto Ltd (ASX: RIO)

Rio Tinto shares are $154.23, up 1% today and up 19% over 12 months. 

Morgans has a hold rating on this ASX 200 mining share. 

In a new note, the broker increased its 12-month target on Rio Tinto shares from $159 to $162.

Morgans said: 

RIO delivered a largely steady quarter, with slight beats from copper and alumina, iron ore inline, while lithium trailed estimates.

Oyu Tolgoi was the highlight in 3Q26, enough to offset lower output from Escondida and Kennecott.

RIO’s share price has traded sideways so far through 2026, in a ~20% range.

Our new forced ranking is now RIO then South32 Ltd (ASX: S32), BHP Group Ltd (ASX: BHP), and Fortescue Ltd (ASX: FMG).

Fortescue Ltd (ASX: FMG)

The Fortescue share price is $15.32, up 2% today and down 23% over 12 months. 

Morgans has a sell (trim) rating on this ASX 200 iron ore share.

In a new note, the broker slashed its 12-month target from $18.70 to $15.40.

Morgans said:

We have long argued that investing material capital in near-term loss-making projects (magnetite and new energy) has not diversified Fortescue, and has instead left group earnings more exposed to the iron ore price.

Magnetite adds more iron ore exposure but at a higher cost, while new energy investment, and US$0.9-1.3bn of FY27 decarbonisation spend, are funded from hematite cash flow. This dynamic is starting to show in the numbers.

Fortescue flagged that net debt rose US$1.9bn in 1Q27, equal to the final dividend (US$1.0bn) plus quarterly capex (US$0.9bn), implying negative FCF for the quarter.

We attribute this mainly to weaker hematite cash flow after the central buying group China Mineral Resources Group (CMRG) reportedly halted purchases of two of Fortescue’s products during the quarter, leaving shipments 6% and actual sales 14% below Visible Alpha (VA) consensus in 1Q27.

The post Buy, hold, sell: Paladin Energy, Fortescue, Rio Tinto shares appeared first on The Motley Fool Australia.

More reading

• I investigated 3 ASX shares that have fallen sharply. Are they bargains or value traps?
• Should you buy Evolution Mining and Rio Tinto shares?
• 5 ASX 200 stocks analysts have upgraded this week
• 3 ASX shares tipped by brokers to return 41% to 85% in the next 12 months
• Buy, hold, sell: Reece, Fortescue, Electro Optic Systems shares

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

S&P/ASX 200 Index (ASX: XJO) shares are up 0.8% today but down 3% over 12 months.

The market has been volatile this year amid the US-Iran war, persistent inflation, and now rising interest rates at home and in the US.

The market has weakened significantly since hitting a 52-week high in August.

Amid the weakness, brokers see opportunities to invest in some ASX 200 sector heavyweights.

Let’s take a look.

BHP Group Ltd (ASX: BHP)

The BHP share price is $59.47, up 2.5% today.

Over the past month, this ASX 200 mining share has fallen 1%.

Morgan Stanley renewed its buy rating on BHP shares on Monday.

The broker raised its 12-month price target from $68 to $69.

This suggests a potential 16% upside ahead.

Telstra Group Ltd (ASX: TLS)

The Telstra share price is $4.74, down 1.2% today.

Over the past month, this ASX 200 telco share has fallen 3%.

Citi reaffirmed its buy rating on Telstra shares with a 12-month target of $5.25.

This suggests a potential 11% upside ahead.

CSL Ltd (ASX: CSL)

The CSL share price is $190.41, up 1.9% today.

This ASX 200 healthcare share has risen 9% over the past month.

Morgan Stanley reiterated its buy rating on CSL shares this week.

However, the broker has a 12-month target of $182, which implies a 4% downside from here.

Xero Ltd (ASX: XRO)

The Xero share price is $61.14, up 5.9% today.

Over the past month, this ASX 200 tech share has fallen 8%.

RBC Capital renewed its buy rating on Xero shares this week.

The broker upped its 12-month price target from $85 to $96.

This suggests a potential 57% upside ahead.

Santos Ltd (ASX: STO)

The Santos share price is $9.17, down 0.2% today.

Over the past month, this ASX 200 energy share has increased 5%.

UBS reaffirmed its buy rating on Santos shares on Tuesday.

The broker raised its 12-month target from $8.30 to $9.50.

This suggests a potential 3% upside ahead.

PLS Group Ltd (ASX: PLS)

The PLS share price is $3.04, up 2.2% today.

This ASX 200 lithium share has tumbled 29% in just one month.

Jefferies renewed its buy rating on PLS shares on Monday.

The broker lowered its price target from $6.30 to $5.50.

This implies potential capital growth of 81% over the next year.

Stockland Corporation Ltd (ASX: SGP)

The Stockland share price is $4.21, down 0.8% today.

This ASX 200 property share has risen 2% over the past month.

Jarden reiterated its buy rating on Stockland shares on Wednesday.

The broker decreased its 12-month target from $5.69 to $5.

This still implies a potential 19% upside ahead.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is $8.56, up 0.9% today.

This ASX 200 financial share has ascended 6% over the past month.

UBS reiterated its buy rating on IAG shares with a price target of $9.10.

This implies a potential rise of 6% ahead.

Newmont Corporation CDI (ASX: NEM)

The Newmont share price is $165.26, up 3.4% today.

This ASX 200 gold mining share has fallen 5% over the past month.

Jefferies renewed its buy rating on Newmont shares with a $224.12 target.

This implies potential capital growth of 35% over the next year.

The post 9 ASX 200 shares experts are backing for growth amid market weakness appeared first on The Motley Fool Australia.

More reading

• I investigated 3 ASX shares that have fallen sharply. Are they bargains or value traps?
• PLS Group to invest $650m in Pilgangoora upgrades to fuel growth
• How much do I need in my superannuation to generate a $108,000 annual passive income?
• 5 things to watch on the ASX 200 on Friday
• Telstra vs ANZ: Which ASX blue chip is better for retirees?

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Jefferies Financial Group, and Xero. The Motley Fool Australia has positions in and has recommended Telstra Group and Xero. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares have come off the boil over the past couple of months as September’s highly anticipated interest rate hike, surprisingly high inflation figures, and mortgage market pressures grip investor attention.

Add geopolitical uncertainty and shifting commodity trends into the mix, and it’s no wonder that investors are spooked.

Some ASX shares have been worse-affected than others, and it’s easy to just flee falling stocks in times of stress.

The thing is, some of these share price crashes actually present investors with a great opportunity to buy into a company for cheap.

But the theory isn’t universal. Buy into the wrong stock, and you could quickly see your investment go down the drain.

And it made me wonder: How do I tell which is which?

I decided to investigate three depressed high-profile ASX shares to determine if they’re a bargain buy or a value trap.

Was their share price crash warranted, and are there signs the company can turn it around?

Here’s what I found.

Xero Ltd (ASX: XRO)

It’s no secret that Xero shares have been under incredible pressure over the past 12 to 18 months, and that selling pressure has continued through most of 2026. Xero showed positive signs of recovery through the month to late August, rebounding 44% in just four weeks.

But sentiment quickly turned again and, at the time of writing, the shares have fallen 33% over a seven-week period, to just $59.53. In fact, in early October, the ASX shares dropped to a seven-year low of $55.31.

But what is interesting about Xero’s latest fall from grace is that it isn’t driven by a breakdown of the company’s core operations or a company crisis. Instead, the latest downturn looks like a combination of the latest macroeconomic stresses and general investor uncertainty.

And this caught my attention.

The Melio acquisition in the US is still weighing on confidence. The short-term effect of the acquisition is clear, but there isn’t much indication that the long-term effect will be negative. It’s mostly speculative at the moment.

In my view, Melio could plug a gap in Xero’s product suite by adding features it doesn’t have. And that could unlock a huge pool of untapped revenue and improved gross margins.

I think we could soon see concrete proof that the new products are turning into sales. If that happens, I expect Xero could pull forward its timeline of profitability (the company is currently guiding the second half of FY28), which would, in turn, quickly drive the share price higher.

So, are Xero shares a bargain buy, or a value trap?

My verdict: Bargain buy.

Fortescue Ltd (ASX: FMG)

The iron ore miner’s shares were relatively resilient through the first half of 2026. But investor sentiment tumbled in early June, sending the share price crashing. And it’s continued falling ever since. At the time of writing, the ASX iron ore shares have fallen 32% over the past four months. They’re now down 31% year to date, and trading at $15.07.

Unlike Xero, Fortescue’s sharp share price decline is multifaceted. 

The company generates a substantial amount of its cash flow from its large iron ore operations, so while rising iron prices act as a tailwind, falling iron ore prices do the opposite. Iron ore prices have crashed to around a four-year low of just over US$90 per tonne at the time of writing, severely affecting the miner’s margins.

The miner has also faced ongoing tensions and contract negotiations with China’s state-backed buyer, China Mineral Resources Group (CMRG). The group has urged Chinese mills to curb delivery of iron ore from major miners while it negotiates with domestic steelmakers. It plans to force major miners into lower pricing agreements

Understandably, the falling iron ore price and contract issues have caused a significant drop in shipments, which in turn has put pressure on the miner’s earnings.

There’s more, though. Fortescue has also been criticised for heavy spending on its green energy expansion, including green hydrogen and renewable grids in the Pilbara. Earlier this year, the miner said it had committed an additional US$680 million to the project, bringing the total investment to US$6.88 billion.

It’s clear that Fortescue’s investment outgoings and revenue are out of kilter. But the key question is, will any of these headwinds soon turn into tailwinds?

I don’t think so.

It would depend on three things. A rebound in iron ore prices, settlement with the CMRC, and tighter capital expenditure.

The price of iron ore is heavily tied to China’s infrastructure growth. So we’d need to see a monetary injection into the sector to create a pickup in steel mill production, and a pickup in iron ore demand.

We’d also need to see a resolution of the CMRG’s negotiations with major iron ore companies. And one that doesn’t translate to significantly lower pricing agreements for Fortescue.

Fortescue’s green energy transition is expected to eliminate an 800 million-litre annual diesel bill in the Pilbara by 2030. That’s great, but it’s another four years away.

So, are Fortescue shares a bargain buy, or a value trap?

My verdict: Value trap.

DroneShield Ltd (ASX: DRO)

DroneShield shares have fallen out of favour with investors this year following concerns about an ASIC investigation and questions about whether its share price had run too far ahead of true value.

At the time of writing, the ASX shares are $1.43 a piece. The ASX shares have crashed 37% since posting a disappointing first-half FY26 result in August. They’re down 57% year to date.

The counter drone operator’s shares were firmly on my radar earlier this year. And while I think the sell-off has been overdone, I understand why investors have reacted so strongly.

DroneShield’s revenue came in line with guidance expectations. But recurring revenue was a miss, at $11.5 million versus guidance of $14.2 million for the six-month period.

The update came amid an ongoing ASIC investigation that relates to market announcements and share trading in November 2025.

And recently, the company appointed a chief financial officer, Rebecca Lowde, and a new non-executive director, Lynne Saint. It’s not uncommon for investors to sell up on leadership changes because it implies potential for new uncertainties, but the timing makes me question if there are more issues deeply rooted in the business.

Can DroneShield turn its business around?

At the moment, I’m not sure. 

The company continues to win new deals and contracts and recently confirmed it has committed $261 million of FY26 revenue, which is the midpoint of its FY26 revenue outlook range. It’s likely that DroneShield will reach its full-year target, but what I’m interested in is whether the company can maintain the same trajectory into FY27.

That’s what I’m unsure about. 

Achieving the same sort of scale next year depends heavily on whether it can convert its procurement contracts into actual binding ones. That’s where there is a legal requirement to deliver the order. 

Perhaps the new leadership change might be exactly what the business needs to move into the next stage of growth.

Or perhaps DroneShield will take one step backwards before going forward again.

So, are DroneShield shares a bargain buy, or a value trap?

My verdict: Value trap.

The post I investigated 3 ASX shares that have fallen sharply. Are they bargains or value traps? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Reece, Fortescue, Electro Optic Systems shares
• Droneshield vs Xero: Which ASX tech stock is the better buy for a young growth investor?
• Down another 4% to a 52-week low. What should I do with my DroneShield shares now?
• Own ASX mining shares? Official forecasts show commodity prices peaking in FY27
• How much must I invest in Fortescue shares to earn a $1,000 passive income in 2027?

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

The recent decision by the Reserve Bank of Australia to increase official interest rates once again has pushed the share price of seven of the nation’s major real estate companies to 12-month lows, raising the question: Are they becoming even more attractive dividend plays?

Since the start of October, Arena REIT (ASX: ARF), Charter Hall Long WALE REIT (ASX: CLW), HomeCo Daily Needs REIT (ASX: HDN), Waypoint REIT (ASX: WPR), GPT Group Ltd (ASX: GPT), Vicinity Centres Ltd (ASX: VCX), and BWP Group Ltd (ASX: BWP) have all hit 12-month lows, with the dips concurrent with the RBA’s rates decision.

Low share prices translating to good yields

Each of these real estate companies is now trading with a healthy trailing dividend yield. The question will be, can they maintain it?

Examples of some of the yields include Charter Hall with a yield of 7.94% unfranked, HomeCo on 8.03% unfranked, and BWP on 5.49%.

Arena REIT is trading with a trailing yield of 7.76%. The company, in releasing its full-year results in August, gave guidance of 18 cents per share in distributions for the current financial year, which, at the current share price, would be a yield of 7.4%.

However, this estimate assumed the company would derive no income from the Arena properties occupied by Edge Early Learning Centres, which had entered administration.

Arena has subsequently told the ASX that all 27 of these properties are in the process of being leased to new owners; however, the deals are yet to settle.

As such, no dividend or guidance update has been made.

Interest rates a key focus

With real estate companies generally having large amounts of debt, their share prices could once again come under pressure if the RBA lifts interest rates again at its next meeting on 3 November.

ANZ Senior Economist Jasmine Zheng said this week a rate rise was “more likely than not”, while Betashares Chief Economist David Bassanese was also predicting a hike.

The RBA’s minutes from the meeting on October 6 indicated that further rate rises could be on the cards.

As they said:

Members discussed the challenges of judging how large the upside risks to inflation were or could become. They noted that the outlook for inflation would depend, among other things, on developments in the Middle East, the path of external demand, the extent of domestic capacity pressures and on how that influenced the pass-through of cost shocks and the evolution of inflation expectations. Members noted that it was possible these factors could continue to place upward pressure on inflation. Against that backdrop, members agreed that they would remain attentive to incoming data and the evolving assessment of the outlook and risks when making their decisions.

The post Dividend yields in focus as seven ASX real estate companies hit 12-month lows appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• How much is needed in superannuation to target a $7,500 monthly passive income?
• How much passive income can I earn off a $700,000 superannuation balance?
• Scentre Group vs GPT Group: Which ASX REIT is more likely to beat the market?
• Arena REIT provides Edge Early Learning update

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

The Mesoblast Ltd (ASX: MSB) share price is in focus today after the company reported a 44% jump in Ryoncil net revenue to US$28 million and an 85% improvement in net operating cash spend for the first fiscal quarter.

What did Mesoblast report?

• Net revenue from Ryoncil sales rose 44% to US$28 million (Q1 FY25: US$19 million)
• Net operating cash spend improved 85% to just US$2.3 million (prior period: US$14.9 million)
• Strong cash position: US$99 million at 30 September 2026
• Record new patient starts in September after seasonal July/August slowdown

What else do investors need to know?

Mesoblast attributes its revenue growth and improved cash position to greater penetration and adoption of Ryoncil across 54 onboarded treatment sites. Ryoncil is the first and only FDA-approved mesenchymal stromal cell therapy for children under 12 with steroid-refractory acute graft-versus-host disease.

The company is also focusing on disciplined capital management to support its commercial manufacturing and late-stage clinical programs. All reported results are preliminary and subject to audit.

What’s next for Mesoblast?

Looking ahead, Mesoblast plans to expand the reach of Ryoncil, further increasing adoption among eligible hospitals and clinics. The company is also progressing additional pipeline products targeting inflammatory diseases and is strengthening commercial partnerships overseas.

Disciplined capital use and investment in late-stage clinical trials remain priorities. Management is focused on building sustainable growth while maintaining strong cash reserves.

Mesoblast share price snapshot

Over the past 12 months, Mesoblast shares have declined 29%, trailing the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post Mesoblast reports Ryoncil revenue surge and improved cash spend appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Mesoblast, Dicker Data, ASX shares
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Mesoblast, Transurban, NextDC shares
• Top brokers name 3 ASX shares to buy next week
• 2 ASX 200 shares tipped to rise 39% to 130%

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

EBR Systems Ltd (ASX: EBR) disappointed investors this week when it announced it had implanted just 40 WiSE systems during the quarter, below its own forecast.

The company’s shares are now down almost 90% over a 12-month period, but according to the analyst teams at both Bell Potter and Morgans, there’s upside to be had from there.

It’s just that the two brokers differ wildly on how much upside there will be.

Quarterly report fell short of expectations

I’ll get to the specifics of their predictions shortly. First let’s have a closer look at what the company reported this week.

EBR Systems has developed the world’s only wireless cardiac pacing device for heart failure – the WiSE system – and is in the early stages of its commercial roll out.

In the third quarter the number of implantations was below previous quarters, with the company saying a change in management at its US operations, a change in strategy, and additional field training requirements led to the decline.

EBR systems said it was recruiting to build out its commercial team in the US, with numerous searches under way.

The company said:

EBR continues to refocus field management and activities around deeper utilisation within activated accounts, increased procedural frequency and strengthened field training and support. These initiatives are intended to strengthen U.S. commercial execution, with benefits expected to build progressively as additional field training is completed and account activity increases.

During the quarter EBR also completed the final tranche of a $150 million capital raising.

Shares looking cheap, or very cheap

Morgans said in its research note on the company that it understood a new sales strategy was needed.

They said:

Notably, WiSE adoption requires a sustained, high-touch sales effort, with representatives previously focused on prioritising the opening of new sites rather than supporting existing accounts and generating repeat procedures. Management is redirecting resources towards activated centres, strengthening territory accountability and changing its sales training model, with early feedback encouraging.

Morgans said there was little visibility of sales going forward, with the company reporting encouraging signs in early October, but giving no formal guidance.

They added:

We continue to see value in WiSE’s differentiated technology, clinical utility and substantial potential market opportunity. However, disappointing execution, greater commercial intensity and uncertain adoption trajectory warrant more conservative forecasts and a materially lower valuation. We see the potential for a recovery in commercial momentum, although the investment case now hinges on evidence of execution rather than the theoretical size of the opportunity.

Morgans lowered their price target from $1.95 to $1.20, which is still 757.1% higher than the current price of 14 cents.

Bell Potter, on the other hand, lowered their price target from 70 cents to 20 cents, which would be a 42.9% return if achieved.

EBR Systems is valued at $131 million.

The post This ASX biotech could rise 40% or 750%, depending on who you ask appeared first on The Motley Fool Australia.

More reading

• This ASX biotech could nearly triple in value Bell Potter says

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.

The Alcoa Corporation Ltd (ASX: AAI) share price is under the spotlight following the company’s third quarter 2026 results, which featured net income of $483 million and continued strong operational performance.

What did Alcoa report?

• Revenue of $3.7 billion for Q3 2026, down 7% from Q2 2026
• Net income attributable to Alcoa Corporation rose to $483 million (Q2 2026: $407 million)
• Adjusted net income: $485 million; adjusted earnings per share: $1.82
• Adjusted EBITDA (excluding special items): $789 million
• Free cash flow of $472 million for the quarter
• Cash balance of $4.4 billion, including $2.6 billion in financing for the AliGroup acquisition

What else do investors need to know?

Alcoa increased aluminium production for the sixth consecutive quarter, with five smelters and one refinery hitting year-to-date volume records. The company completed the restart of its Alumar smelter in Brazil, supporting higher output.

The major AliGroup acquisition from South32 advanced significantly, with funding secured and South32 shareholders approving the deal. The transaction is tracking for completion in the first half of 2027.

Alcoa also entered into agreements to sell portions of its Massena East site in New York, targeting up to $315 million in potential proceeds over the next seven years, conditional on project developments.

What’s next for Alcoa?

Alcoa reaffirmed its 2026 alumina and aluminium production and shipment forecasts, expecting further gains in the fourth quarter as stability continues across its refineries and smelters. Management anticipates steady Alumina segment margins and some cost headwinds in the Aluminium segment due to higher raw material costs and scheduled maintenance.

The company aims to close the AliGroup acquisition in early 2027, integrate these assets, and continue efforts to optimise its operating portfolio. Higher interest income from acquisition cash reserves and an increased annual interest expense are on the radar for Q4 and beyond.

Alcoa share price snapshot

Over the past 12 months, Acola shares have risen 6%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has fallen 2% over the same period.

View Original Announcement

The post Alcoa posts higher net income, sets sights on AliGroup completion appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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 Deep Yellow Ltd (ASX: DYL) share price is in focus after the company announced it will delay its Final Investment Decision (FID) for the Tumas uranium project in Namibia beyond Q4 2026, but reports strong progress on construction and key civil works.

What did Deep Yellow report?

• Final Investment Decision for Tumas project postponed due to current equity market conditions
• Civil and concrete works at Tumas are fully funded with existing cash reserves
• 170 tonnes of reinforcing steel installed; all major concrete pouring areas prepared
• Four local contracts awarded worth A$3.7 million to support ongoing construction
• Environmental Clearance Certificates renewed until 2029
• 440 contractor and employee safety inductions completed

What else do investors need to know?

Deep Yellow is pushing ahead with on-site civil works at Tumas, with concrete pouring underway and off-site pre-casting of wall panels progressing as scheduled. The company highlights that these construction activities are fully funded and represent a key step in systematically de-risking the project ahead of FID.

Local economic participation has also been a focus, with contracts awarded to Namibian businesses for fuel, water, waste management, and dust suppression services. Safety remains a priority, demonstrated by comprehensive health, environment, and risk management training for the site workforce.

What did Deep Yellow management say?

Managing Director and CEO Greg Field said:

Tumas is a world-class, fully permitted uranium project in a Tier 1 jurisdiction that will play a key role in providing the next generation of supply of this key decarbonisation fuel. Despite the compelling global uranium market fundamentals, challenging equity market conditions continue to constrain funding options for uranium developers. Against this backdrop, we believe it is prudent to defer FID beyond Q4 2026 while maintaining construction momentum and progressing our funding strategy to ensure Tumas is well positioned to advance when market conditions improve. The commencement of civil works on schedule represents another significant milestone for Tumas, reflecting the considerable progress achieved across engineering, procurement and construction readiness as we systematically de-risk the project’s development. I am extremely pleased with the progress being made and the dedication and commitment of our team, which is now translating into tangible progress on the ground.

What’s next for Deep Yellow?

Deep Yellow plans to finalise and release an optimisation study and updated economic assessment for Tumas, which will inform the next phase of its development. The company is keeping construction moving at a steady pace, aiming to benefit when equity market conditions improve and to ensure Tumas is ready for the next major investment decision.

Looking further ahead, Deep Yellow remains focused on developing both its Namibian and West Australian project portfolios as part of its mission to become a globally diversified uranium producer.

Deep Yellow share price snapshot

Over the past 12 months, Deep Yellow shares have declined 67%, trailing the S&P/ASX 200 Index (ASX: XJO), which has fallen 3% over the same period.

View Original Announcement

The post Deep Yellow updates on Tumas project progress, delays FID appeared first on The Motley Fool Australia.

More reading

• Own ASX mining shares? Official forecasts show commodity prices peaking in FY27
• Here are the top 10 ASX 200 shares today
• 3 ASX shares tipped to fly 109% to 322% higher
• Buy, hold, sell: Deep Yellow, SGH, Telstra shares
• This ASX uranium stock could rise 40%: Broker

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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. 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.

A2 Milk vs Bega Cheese shares

If I had $1,000 to invest as a beginner and wanted to dip into ASX-listed consumer stocks, a2 Milk Company Ltd (ASX: A2M) and Bega Cheese Ltd (ASX: BGA) are both tempting choices from the Australian dairy aisle. Both are household names with strong brands at home and recognition overseas. But each has its own strengths when it comes to dividends, valuation, business strategy, and share price performance. Here’s how I’d compare A2 Milk vs Bega Cheese shares for a first-time investor.

The case for a2 Milk

The a2 Milk is best known for its fresh milk and infant formula that contain only the A2 protein type, a point of difference marketed as easier on digestion. Founded in 2000 in New Zealand, a2 Milk sources, produces and supplies its branded milk products throughout Australia and key global markets, including China. In 2025, the company announced the acquisition of Yashili New Zealand for NZ$282 million and the sale of its Mataura Valley Milk investment, aiming to reshape its supply chain for efficiency and growth.

Some standout fundamentals:

• Market Cap: $4.79 billion – more than twice Bega’s, marking it as a larger industry player.
• P/E Ratio: 28.83 – moderate for a branded consumer staple, not a bargain but not sky-high either.
• Dividend Yield: 2.21% (unfranked) – a solid yield, though the absence of franking credits means less after-tax income for Australian investors.

The 2026 year-to-date (YTD) return is -23.2%, reflecting a tough recent run for the shares. The most recent reported earnings per share (EPS) is $0.286, and the annual dividend per share is $0.13. Notably, dividend payments have been unfranked to date.

The case for Bega Cheese

Bega Cheese is much more than its namesake cheddar block. It’s a major Australian food manufacturer behind iconic supermarket brands like Bega Cheese and Vegemite, and it now boasts a strong portfolio of consumer packaged goods along with a traditional bulk dairy business. Bega’s diversified product base reaches supermarkets, food service, and export markets, with production mainly in NSW and Victoria and global reach to about 40 countries.

Here’s what draws my eye:

• Market Cap: $1.95 billion – smaller than A2 Milk, but still a significant Aussie food player.
• P/E Ratio: 36.35 – higher than A2 Milk’s, suggesting it’s priced a bit richer relative to current earnings. (Keep in mind, comparisons across even related consumer segments can be a bit apples-to-oranges.)
• Dividend Yield: 2.24% (fully franked) – about equal to A2 Milk’s, but the 100% franking makes each dollar received more attractive for Australian taxpayers.

Bega’s YTD return is a positive 9.2%, showing solid traction in 2026. The annual dividend per share is $0.15, and the most recent EPS is $0.178. Impressively, Bega has paid consistent, fully franked dividends every year since 2012, building trust with income-seeking investors.

Valuation comparison

There are some meaningful contrasts in valuation and income features between these two stocks.

Metric	a2 Milk	Bega Cheese
Market Cap	$4.79 billion	$1.95 billion
P/E Ratio	28.83	36.35
Dividend Yield	2.21% (unfranked)	2.24% (fully franked)
Dividend per Share	$0.13	$0.15
Earnings per Share	$0.286	$0.178

Note: Bega Cheese’s P/E ratio is higher, even though its EPS is lower than a2 Milk’s. Sector differences and growth expectations may play a part here, so while it looks “dearer,” I’d be careful about declaring either cheap or expensive without a wider peer comparison.

Also, while both offer similar yields, Bega’s dividends are fully franked — a genuine benefit for most Aussie shareholders, making a big difference at tax time.

Recent share price momentum

Comparing recent share price performance up to October 2026:

• A2 Milk closed at $6.58, having slipped -0.75% for the day and nursing a hefty YTD decline of -23.2%.
• Bega Cheese closed at $6.38, dipping -1.39% that day but up 9.2% YTD.

So, Bega has delivered not only positive absolute gains in 2026 but also dramatically outperformed a2 Milk, which has had a challenging year so far.

Which is the better buy?

If I were a beginner with $1,000 looking for a consumer stock to start off with, I’d lean toward Bega Cheese. Here’s why: Bega offers a slightly stronger dividend yield, and crucially, those dividends are fully franked — making them punch above their headline rate after tax. On top of this, Bega’s long dividend-paying track record should give new investors some peace of mind.

While a2 Milk brings a bigger market cap and arguably a bit more global “growth” sizzle, its unfranked dividends mean less take-home income. Also, its shares have taken a beating this year, which could signal a value opportunity, but as a beginner I’d rather start with the steady and simple earner showing positive momentum.

For a first-time $1,000 investment, my pick would be Bega Cheese: stable, income-generating, and trending up in 2026.

The post A2 Milk vs Bega Cheese: Which ASX dairy stock is better for new investors? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday
• Brokers tip up to 67% for these 3 ASX shares
• Investors get defensive as ASX 200 drifts to a 15-week low
• Here are the top 10 ASX 200 shares today

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 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. 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.