Category: Stock Market

The Ventia Services Group Ltd (ASX: VNT) share price is in focus after the company announced it has secured new Victorian road maintenance contracts worth approximately $340 million over four years, covering the Grampians and Eastern Metropolitan regions.

What did Ventia Services Group report?

• Secured Victorian Road Maintenance Contracts (VRMC) in the Grampians and Eastern Metropolitan regions
• Estimated combined contract value of approximately $340 million over a four-year base term
• Options to extend contracts by two years (Grampians) and up to four years (Eastern Metropolitan)
• Scope includes routine maintenance, inspections, hazard rectification, emergency response, and minor capital works

What else do investors need to know?

Ventia says the $340 million contract value includes routine and planned maintenance, alongside possible minor capital works, dependent on Victorian government budget approvals. The contracts reinforce Ventia’s position in delivering essential infrastructure services, directly supporting both regional and metropolitan communities throughout Victoria.

Contract commencement is expected from 1 July 2026, adding to Ventia’s expanding pipeline of long-term, government-backed projects. The contracts also demonstrate government confidence in Ventia’s experience and capacity in the transport sector.

What did Ventia Services Group management say?

Managing Director and Group CEO Dean Banks said:

With decades of experience providing operations and maintenance across the Transport sector, these contracts will see Ventia support safe, reliable journeys for communities across regional and metropolitan Victoria, while delivering value for the State over the life of the assets.

What’s next for Ventia Services Group?

These contracts extend Ventia’s established footprint in infrastructure services and underline its strategy to be the partner of choice in long-term road management. The company may benefit from potential contract extensions and further opportunities as state priorities and budgets evolve.

Ventia says it will continue focusing on innovation, sustainability, and service delivery excellence across Australia and New Zealand’s infrastructure networks.

Ventia Services Group share price snapshot

Over the past 12 months, Ventia Services shares have risen 34%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Ventia Services secures $340m Victorian road maintenance contracts appeared first on The Motley Fool Australia.

More reading

• Highlights from Dalrymple Bay Infrastructure’s latest investor presentation
• Genesis Minerals drilling update: High-grade Leonora results boost outlook
• Vicinity Centres shares: 3Q FY26 update reveals positive momentum
• ALS reports cyber security incident impacting operations
• Lottery Corporation secures 40-year Victorian lottery licence extension

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.

Sigma Healthcare Ltd (ASX: SIG) shares are climbing on Tuesday morning.

At the time of writing, the pharmacy giant’s shares are up 4.5% to $2.96.

The move follows an update released after the market close on Monday ahead of the company’s presentation at the 2026 Macquarie Australia Conference.

What is lifting Sigma shares?

Investors appear to be responding positively to an update showing strong Chemist Warehouse sales momentum, a planned entry into the UK market, and further investment in New Zealand.

According to the release, sales across the Australian Chemist Warehouse branded store network increased 16.7% for the financial year to date through to 30 April 2026. Like-for-like sales were up 14.4% over the same period.

Internationally, Chemist Warehouse branded store sales increased 24.7% for the financial year to date through to 31 March 2026, with like-for-like growth of 11.8%.

Chemist Warehouse momentum continues

A key highlight from the update is the ongoing performance of the Australian Chemist Warehouse network.

Sigma noted that growth has remained strong even as it cycles the structural uplift from GLP-1 medicine sales in the second half of 2025.

Management expects growth in GLP-1 sales to continue. This is good news given how it also highlighted that GLP-1 customers have an average basket size 40% higher in units.

UK expansion announced

Sigma has revealed that it has signed a memorandum of understanding with GreenLight Healthcare to launch Chemist Warehouse in the UK market.

GreenLight is an employee-owned pharmacy group founded in London in 1999, with 22 stores in and around London.

Under the proposed joint venture, Sigma will acquire a 75% interest in a number of stores, with GreenLight retaining 25%. Sigma will licence the Chemist Warehouse brand and provide retail support, including ranging, store layout, inventory management and marketing.

The first phase will focus on rebranding and developing up to five stores, with the first site planned for Hoxton Street in northeast London.

Management commentary

Commenting on the update, Sigma’s CEO, Vikesh Ramsunder, said:

Our operational performance is pleasing with momentum sustained throughout the year reinforcing the defensive nature of our business model and continued execution of our growth strategy.

International expansion is one of our four key strategic growth pillars. Having proven that the Chemist Warehouse model resonates with customers in other markets, including New Zealand and Ireland, the JV with GreenLight now provides a measured market access into the UK.

Ramsunder also touched on global geopolitical challenges that retailers are facing. He adds:

Sigma is currently well placed to navigate the global geopolitical challenges impacting many businesses. We are absorbing increased fuel costs within existing financial targets and hold significant inventory in our DC network to service the market. We are currently not seeing any material disruption in our ability to source or deliver products or services at this point.

The post Sigma shares race higher on update and Chemist Warehouse UK expansion appeared first on The Motley Fool Australia.

More reading

• Sigma Healthcare delivers double digit Chemist Warehouse sales growth in 2026
• What’s making healthcare the worst sector on the ASX 200, down 39% in a year?
• Morgans says hold BHP shares and buy this ASX 200 stock      
• 3 ASX healthcare shares to buy amid sector rout: experts
• Buy, hold, sell: Sigma Healthcare, Macquarie, Santos shares

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

The Genesis Minerals Ltd (ASX: GMD) share price is in in focus after the company revealed outstanding drill results at its Leonora operations and flagged the potential for further organic growth.

What did Genesis Minerals report?

• FY26 exploration budget: A$40–50 million, supporting ongoing drilling success
• High-grade hits at Gwalia “Uppers”, including 27.6m @ 17.6g/t and 8.3m @ 43.2g/t
• Positive results at Ulysses, with drilling returning 19m @ 9.6g/t and 9m @ 12.1g/t
• Admiral open pit drill results include 35m @ 2.8g/t and 2m @ 28.6g/t
• Strong cash position: A$600 million in cash and equivalents as at 31 March, no bank debt

What else do investors need to know?

Genesis Minerals has zero bank debt and a market capitalisation of around A$6.6 billion, with major shareholders including AustralianSuper, State Street Corporation, Van Eck, and Vanguard. The company’s drilled resources are close to existing processing plants, which could translate into lower development costs and faster monetisation of discoveries.

A separate update for the Laverton district is expected around mid-2026, and the positive momentum from recent drilling at Leonora is likely to result in a higher exploration budget for FY27, with updated long-term planning due in the September 2026 quarter.

What did Genesis Minerals management say?

Genesis Executive Chair Raleigh Finlayson said:

We are fully committed to investing in ongoing growth in parallel with generating strong free cashflow. These outstanding drilling results show that our investment in brownfields exploration is generating strong returns which pave the way for highly rewarding economic growth. The results also support our strategy of developing a diverse range of ore sources, which gives us increased flexibility and lower risk. We are particularly pleased with the results from Gwalia because they demonstrate strong continuity of mineralisation in the current mine plan while also highlighting the potential to extract lower-cost feed from the upper levels scarcely mined since the 1960s. Along with the results from the satellite deposits at Leonora, we are creating significant value through successful brownfields exploration which in turn drives organic growth that leverages existing infrastructure.

What’s next for Genesis Minerals?

Genesis Minerals will continue drilling programs at Leonora, targeting resource extensions and improved inventory closer to surface, which could improve haulage productivity and unit costs. Long-term planning is underway, with a material lift in the FY27 exploration budget anticipated on the back of recent success.

The company is sticking with its strategy of leveraging existing mills and infrastructure to drive value from high-return brownfields exploration, aiming to unlock further production growth and maintain strong free cashflow for shareholders.

Genesis Minerals share price snapshot

Over the past 12 months, Genesis Minerals shares have risen 43%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Genesis Minerals drilling update: High-grade Leonora results boost outlook appeared first on The Motley Fool Australia.

More reading

• Highlights from Dalrymple Bay Infrastructure’s latest investor presentation
• Ventia Services secures $340m Victorian road maintenance contracts
• Vicinity Centres shares: 3Q FY26 update reveals positive momentum
• ALS reports cyber security incident impacting operations
• Lottery Corporation secures 40-year Victorian lottery licence extension

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 Vicinity Centres (ASX: VCX) share price is in focus today as the real estate investment trust reported a strong 3Q FY26, highlighting resilient retailer confidence, a near-full portfolio occupancy, and growing retail sales.

What did Vicinity Centres report?

• FY26 FFO and AFFO per security expected to be at the top end of guidance: 15.0–15.2 cents and 12.8–13.0 cents, respectively
• Retail portfolio occupancy at 99.6%, with positive leasing spreads of +5.1%
• Total portfolio retail sales up 3.4% for the quarter; specialty sales productivity rose to approximately $13,500 per square metre
• Raised $654 million in new debt, extending average debt maturity to 4.6 years with 89% of drawn debt hedged for FY26
• Chatswood Chase luxury precinct opened, with c.95% of the reimagined centre due to be open by 30 June 2026
• Divestment of three centres completed, continuing focus on portfolio quality

What else do investors need to know?

Vicinity maintained its full-year distribution payout forecast, expecting to stay within the target range of 95–100% of AFFO. The company’s capital management included successful new debt raisings, diversifying funding sources and mitigating near-term interest rate volatility.

Major redevelopment projects also advanced, with Chatswood Chase’s new luxury precinct launching to strong feedback. The Galleria redevelopment is on track to open before Christmas, already more than 75% leased and featuring secured anchor tenants.

What’s next for Vicinity Centres?

Vicinity reaffirmed its focus on strengthening its retail asset portfolio through targeted redevelopments and disciplined capital management. The business will continue to support retailer resilience while navigating evolving economic conditions.

With the Chatswood Chase transformation and Galleria redevelopment nearing completion, management remains optimistic about maintaining strong occupancy, expanding its luxury offer, and delivering value to securityholders.

Vicinity Centres share price snapshot

Over the past 12 months, Vicinity Centres shares have risen 7%, slightly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Vicinity Centres shares: 3Q FY26 update reveals positive momentum appeared first on The Motley Fool Australia.

More reading

• Highlights from Dalrymple Bay Infrastructure’s latest investor presentation
• Ventia Services secures $340m Victorian road maintenance contracts
• Genesis Minerals drilling update: High-grade Leonora results boost outlook
• ALS reports cyber security incident impacting operations
• Lottery Corporation secures 40-year Victorian lottery licence extension

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 Westpac Banking Corp (ASX: WBC) share price is on the move on Tuesday morning.

At the time of writing, the banking giant’s shares are up almost 1% to $38.82.

This follows the release of its half-year results before the market open.

Westpac share price higher on results day

For the six months ended 31 March, Westpac reported a 2% decline in revenue over the previous half to $11.3 billion.

This reflects a 3% decline in non-interest income due to lower fee income and a decrease in Markets revenue, combined with a 1% decline in net interest income. The latter was driven by a 6-basis points decline in its net interest margin, which more than offset an increase in average interest earning assets.

Management advised that lending competition, the impact of timing differences related to interest rate changes, and weaker Treasury performance contributed to its contraction in net interest margin.

However, Westpac was able to reduce its expenses by 6% to $5.8 billion during the half, which underpinned a 4% increase in pre-provision profit to $5.5 billion.

This ultimately led to Australia’s oldest bank reporting a statutory net profit of $3.4 billion (down 5% from the previous half) and net profit excluding notable items of $3.5 billion (down 1%).

Despite the profit decline, the Westpac board elected to declare a fully franked interim dividend of 77 cents per share. This is flat on the previous half and up 1.3% on last year’s interim dividend and represents a payout ratio of 77.1%.

What happened during the half?

It was a strong half operationally. Business lending was up 13% to $120 billion and institutional lending grew 23% to $131 billion.

Elsewhere, customer deposits lifted 8% to $379 billion, business deposits climbed 5% to $156 billion, and institutional deposits grew 12% to $137 billion.

Westpac also provided an update on its Unite strategy. It revealed that of its 57 planned initiatives, it has completed 8. This includes completing the customer migration from Asgard to Panorama.

Commenting on its performance, Westpac’s CEO, Anthony Miller, said:

This half, we’ve delivered solid operating momentum while investing for the future. Our strong balance sheet and disciplined focus will allow us to support customers through global uncertainty. Westpac is well positioned to deal with the impacts of ongoing conflict. Our role is to stay close to customers, back them through current challenges and make sure help is there when it’s needed. While our customers are resilient and stress levels have declined, we’ve taken a prudent approach and increased our provisions.

Growth is solid across lending and deposits, with several highlights. We grew Australian mortgages, excluding RAMS, in the half at 1.2x system, with the proportion of new first party lending increasing. We are supporting Australian businesses with lending up across both business and institutional over the past year. At the same time we are managing costs, which are down from the prior half.

Outlook

Miller warned that the war in the Middle East is presenting challenges. He said:

The war in the Middle East is presenting challenges for some customers and the economic impact of the conflict will continue through the year. The disruption to energy supply chains has driven a rise in prices and we’re seeing this flow through to businesses and households, with some sectors more affected than others.

The post Westpac share price rises on $3.5bn first-half profit appeared first on The Motley Fool Australia.

More reading

• Westpac posts higher profit in 1H26 results
• 5 things to watch on the ASX 200 on Tuesday
• Buy, hold, sell: Aristocrat, TPG Telecom, and Westpac shares
• 2 ASX 200 shares I’d buy and 2 I’d sell this month
• What happened with ASX 200 banks stocks NAB and CBA in April?

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 ALS Ltd (ASX: ALQ) share price is in focus today after the company reported a recent cyber security incident that temporarily disrupted some of its global operations.

What did ALS report?

• Identified malicious cyber activity with unauthorised third-party access to certain IT systems
• Temporary disruption occurred in parts of operations, but vast majority now operational
• Containment and remediation underway with the support of external cyber response experts
• Australian Cyber Security Centre and other relevant bodies notified
• Investigation ongoing to determine extent and impact on data

What else do investors need to know?

ALS moved quickly after detecting the breach, working alongside external cyber security specialists to minimise risk and restore services. The company says most operations are now back online, with targeted efforts continuing where needed.

Continuous updates will be provided for clients, government agencies, and stakeholders as the investigation unfolds. ALS is cooperating fully with authorities and remains committed to transparency throughout the process.

What’s next for ALS?

ALS says it is focused on fully understanding the incident’s impact and strengthening its cyber defences. The company is working towards comprehensive remediation in affected areas and will keep stakeholders informed as efforts progress.

Ongoing investment in IT security and incident response protocols remains a priority to protect client and company data. Investors can expect further updates as more details emerge from the investigation.

ALS share price snapshot

Over the past 12 months, ALS shares have risen 25%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post ALS reports cyber security incident impacting operations appeared first on The Motley Fool Australia.

More reading

• Highlights from Dalrymple Bay Infrastructure’s latest investor presentation
• Ventia Services secures $340m Victorian road maintenance contracts
• Genesis Minerals drilling update: High-grade Leonora results boost outlook
• Vicinity Centres shares: 3Q FY26 update reveals positive momentum
• Lottery Corporation secures 40-year Victorian lottery licence extension

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.

ASX consumer discretionary stocks have been among the worst-performing in 2026. 

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is down 14% year to date, compared to a flat S&P/ASX 200 Index (ASX: XJO). 

Interest rates, inflation, and geopolitical conflict have all weighed on consumer sentiment, as investors have pushed towards safe-haven assets this year. 

These economic factors have all been headwinds for the sector this year.

However, there are now pockets of value appearing in a struggling sector. 

One such consumer discretionary stock is Eagers Automotive Ltd (ASX: APE). 

The team at Bell Potter have identified this consumer discretionary stock as one with upside. 

Company overview 

Eagers Automotive is the largest automotive retailing group in the Australian market.

The company’s core business involves the ownership and operation of motor vehicle dealerships covering a diversified portfolio of automotive brands. Its product and service offerings include the sale of new and used vehicles, vehicle repair services, and parts, among others.

The company also facilitates vehicle financing through third-party providers.

Its share price has stayed relatively flat in 2026, showing some resilience compared to other consumer discretionary stocks. 

Bell Potter recently increased its price target on the company, following the completion of its strategic investment in CanadaOne Auto, effective 30th April.

Here’s what the broker had to say. 

Updated view

Eagers Automotive has completed its strategic investment in CanadaOne Auto as of April 30. 

The company also announced that Pat Priestner, the founder of CanadaOne Auto, has exercised an option to acquire a 5% stake in easyauto123.

The only change to forecasts is related to timing. 

Analysts had previously assumed the investment would begin contributing from the end of March, but it instead started at the end of April. 

As a result, 2026 revenue and profit forecasts have been reduced by about 3%. There are no changes to the underlying business outlook in either Australia or Canada, and forecasts for 2027, 2028, and dividends remain essentially unchanged.

Price target increases

Following the update, the team at Bell Potter increased the target price to $29.25 (previously $28.50).

The broker has also maintained its buy recommendation.

From yesterday’s closing price of $24.57, this updated price target indicates an upside potential of nearly 20%. 

Potential drivers for the share price include strong sales from BYD, a recovery in Toyota sales in Australia, possible acquisitions in Canada following the completed investment, and a solid first-half result expected in August.

The post Why this consumer discretionary stock is poised for a 20% rise appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why fuel prices could be quietly powering this ASX car stock higher

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

ASX small caps come with heightened risk, but increased upside compared to blue-chip shares.

However some investors may choose to allocate some portion of their portfolio to these kinds of equities. 

If you are looking to monitor small-caps, these two recently received updated guidance from brokers.

Here’s what the experts are predicting. 

Aroa Biosurgery Ltd (ASX: ARX)

Aroa Biosurgery is a New Zealand-based biomedical company specialising in  soft tissue regeneration. It develops, manufactures, and distributes medical and surgical products to improve the healing of complex wounds and soft tissue reconstruction.

The team at Morgans has provided updated guidance on the company following its FY26 preliminary results. 

The broker highlighted that the company upgraded FY26 revenue and EBITDA guidance. 

We have revised our forecasts in line with guidance and increased our risk free rate (house view) which results in a small downgrade to our DCF valuation to A$0.77 (was $0.79). ARX will release its FY26 results on 26 May which will include FY27 guidance. The market will focus on revenue growth (MorgansF sit at 15%) and commentary around the continuing momentum with Myriad and SymphonyTM. We maintain our BUY recommendation with investor sentiment towards the name improving.

This price target from Morgans indicates an upside potential of 20%. 

Titomic Ltd (ASX: TTT)

Another ASX small-cap drawing positive outlooks is Titomic. 

It’s TKF technology provides capabilities for producing commercially viable additively manufactured metal products competing directly with traditional manufacturing methods. The company serves to the aerospace, defence, sporting goods, medical, automotive, industrial equipment, construction and marine.

It recently received a reiterated buy recommendation from Bell Potter following its quarterly activities report. 

The broker was impressed with the fact that during the March 2026 quarter, the company progressed on a number of process qualification, commercial and leadership fronts.

Looking ahead, TTT is engaged with several tier one aerospace and defence prime contractors for qualification ahead of the potential for initial production agreements. Applications include engine components, pressure vessel, heat-shielding for hypersonics and maintenance work.

Bell Potter is optimistic on this ASX small-cap thanks to its competitive advantage. 

TTT’s TKFtechnology has several advantages over traditional casting and forging manufacturing process including shorter lead-times and production cycles and improved material properties.

The broker currently has a 50 cent price target on this ASX small-cap, which indicates an upside potential of more than 80% from the current share price hovering around 27 cents per share.

The post Are these ASX small-caps too cheap to ignore? appeared first on The Motley Fool Australia.

More reading

• Is this ASX energy stock a buy, hold or sell following quarterly results?
• Here’s why Morgans just upgraded Woolworths shares
• Bell Potter says this ASX real estate stock could rise 33%
• Top 10 ASX shares bought and sold in April
• 5 ASX mining shares to buy: experts

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.

The Lottery Corporation Ltd (ASX: TLC) share price is in focus today as the company announced a 40-year extension of its Victorian Public Lottery Licence, a major win securing the business until 2068. This extension significantly strengthens the risks profile of its Lotteries business and supports future shareholder returns.

What did Lottery Corporation report?

• Secured 40-year extension for the Victorian Public Lottery Licence, now expiring 30 June 2068
• $1,145 million upfront premium payment for the licence, fully funded by new and existing debt
• No major lottery licence renewal required until 2050 (NSW)
• Dividend policy changing from 80–100% of NPAT to 80–100% of NPATA from FY27
• Pro forma leverage expected at upper end of 3–4x target range following payment

What else do investors need to know?

Lottery Corporation has held the Victorian licence since 1954, traditionally in 10-year increments. This early 40-year extension aligns the term with major state licences elsewhere in Australia, providing long-term security for the company’s national lotteries footprint.

The payment for the extension will be made in two instalments from existing cash and new debt, and the company is confident it will retain a strong investment-grade credit rating. Small business lottery retailers in Victoria will benefit from a 10-year extension of retail agreements and updates to their systems, further strengthening the retail network.

What did Lottery Corporation management say?

CEO Wayne Pickup, said:

The Lottery Corporation is delighted to have agreed an extension of the Public Lottery Licence with the State, securing our future in Victoria through to 2068. The 40-year extension strengthens our national licence portfolio and will help shape the next chapter of the Company’s growth. The longer term extension also significantly lowers the risk profile of the business and secures our position as the national lottery operator, with our next major lottery licence renewal now not until 2050.

Typically, almost one in two adult Victorians play our lottery games each year – some of which are among Australia’s most recognised and iconic brands. Today’s licence extension allows The Lottery Corporation to continue to responsibly deliver safe, engaging and sustainable entertainment to Victorians for many years to come, while supporting a vibrant lottery retail network underpinned by small businesses, and generating material lottery duty revenue to fund state and community services.

What’s next for Lottery Corporation?

Looking ahead, Lottery Corporation plans to maintain steady operations under its expanded long-term licence footprint. The upcoming change to a more cash-based dividend payout ratio is designed to provide shareholders with consistent, reliable returns while keeping leverage in check.

The company will also explore long-term debt funding and continue to focus on strengthening its product range and retail network, taking advantage of the security and certainty delivered by the Victorian licence extension.

Lottery Corporation share price snapshot

Over the past 12 months, Lottery Corporation shares have risen 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Lottery Corporation secures 40-year Victorian lottery licence extension appeared first on The Motley Fool Australia.

More reading

• NEXTDC secures $1.8bn in new senior debt to boost liquidity
• Regis and Vault to combine, creating new ASX gold powerhouse
• Nine Entertainment flags digital momentum, targets cost cuts after QMS Media deal
• Magellan Financial Group slashes global fund fees, appoints new manager
• Flight Centre Travel Group posts profit and TTV growth despite challenges

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended The Lottery Corporation. The Motley Fool Australia has recommended The Lottery Corporation. 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.

Endeavour Group Ltd (ASX: EDV) shares have had a tough year.

Following another decline on Monday, this ASX 200 stock is now down by a disappointing 21% since this time last year.

Let’s see if Bell Potter thinks this could be an opportunity to buy the Dan Murphy’s owner’s shares.

What is the broker saying about this ASX 200 stock?

Bell Potter highlights that an update this week reveals that consumer sentiment is hitting the drinks giant’s growth. It said:

Retail: Sales rose 2.9% YoY in 3Q26 (weeks 28-40) to $2,398m. HTD (weeks 28-43) growth was 0.7%. In the prior period, Easter fell in Week 42, outside of the third quarter. EDV noted consumer demand remains subdued outside of key events. Retail continued to gain share in a competitive market, the Easter holiday trading period delivered an increase in Retail sales compared to Easter in the previous year, with significant promotional activity.

Hotels: 3Q26 growth of 3.7% ($531m) maintained through the HTD period, despite momentum softening in March across food, bar and gaming due to cost-of-living pressures. Notwithstanding a record trading result on ANZAC Day, sales growth across March and April was 1.5% YoY, tracking below our full year estimate of 4.3%.

The broker also highlights that the ASX 200 stock is increasing its inventory cover for fast-moving lines in response to the Middle East conflict. This is expected to impact costs and margins. It adds:

EDV is increasing inventory cover for fast-moving lines by up to $400m to mitigate supply chain risks, funded via short-term debt. Elevated fuel and freight prices are expected to increase FY26 costs by $6-8m, primarily impacting Retail gross margins.

Should you buy Endeavour’s shares?

Despite the tough trading conditions, Bell Potter believes this could be an ASX 200 stock to buy right now.

In response to the update, the broker has retained its buy rating with a trimmed price target of $3.85 (from $4.15). Based on its current share price of $3.29, this implies potential upside of 17% for investors over the next 12 months.

In addition, a fully franked 4.6% dividend yield is expected over the period. This boosts the total potential return beyond 21%.

Commenting on its buy recommendation, Bell Potter said:

We retain our Buy rating. Although the outlook for consumer spending has weakened due to the Middle East conflict and a worsening rate environment, we believe market expectations are low for the company’s strategic refresh, leaving greater room for upside potential. We see opportunity for consensus upgrades: a strengthening of Dan Murphy’s lowest-price perception; and cost-out opportunities.

The post Down 21%: Why Dan Murphy’s owner could be an ASX 200 stock to buy appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Accent, Endeavour, and Woodside shares are falling today
• Why this $5.7 billion ASX stock is getting sold off today
• Endeavour Group Q3 sales rise as retail and hotels gain ground
• Nervous investors turn to ASX 200 defensives as global energy shock drags on
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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.