Category: Stock Market

National Australia Bank Ltd (ASX: NAB) shares are falling on Monday morning.

At the time of writing, the ASX 200 bank stock is down 1% to $39.36.

This follows the release of the big four bank’s half-year results before the market open.

NAB shares are falling on results day

Investors appear to be responding negatively to NAB’s half-year results, which showed modest earnings growth.

For the six months ended 31 March, NAB reported a statutory net profit of $2.75 billion and cash earnings of $2.64 billion. However, cash earnings were impacted by a $949 million after-tax large notable item relating to a change in the bank’s software capitalisation policy.

Excluding this large notable item, cash earnings were $3.59 billion, up 2.3% on the second half of FY 2025 and broadly flat compared to the prior corresponding period.

Its underlying profit grew at a strong rate of 6.4%. This was underpinned by a 3.1% increase in revenue compared with the second half of FY 2025 and a modest reduction in expenses (excluding the large notable item).

A key driver of this was its Business and Private Banking division, where cash earnings excluding large notable items rose 9.9% to $1.85 billion.

Dividend maintained

Income investors may be pleased to see NAB maintain its interim dividend.

The board has declared a fully franked interim dividend of 85 cents per share, which is in line with both the prior period and prior corresponding period.

This represents a cash dividend payout ratio of 72.5% when excluding large notable items, which remains broadly consistent with recent periods.

Balance sheet strengthened

NAB ended the half with a Common Equity Tier 1 capital ratio of 11.65%, down slightly from September 2025 but still above its target level.

The bank also reminded the market that its dividend reinvestment plan will include a 1.5% discount and be partially underwritten. Together, this is expected to raise approximately $1.8 billion and support a pro forma CET1 ratio of 12.05%.

This move appears to be designed to strengthen the bank’s capital position at a time of heightened geopolitical and economic uncertainty.

Credit provisions rise

One area investors will be watching is credit quality.

NAB’s credit impairment charge increased to $706 million, up from $485 million in the previous half. This included a $300 million increase in forward-looking provisions linked to potential stress from the Middle East conflict.

Despite this, NAB said underlying asset quality outcomes generally improved during the half.

Management commentary

NAB’s CEO, Andrew Irvine, was pleased with the half. He said:

Continued disciplined execution of our strategy and ongoing momentum across our business is reflected in NAB’s 1H26 operating performance. Changes to our software capitalisation policy this period, consistent with the rapidly changing technology environment, have lowered cash earnings by $949 million. Excluding this large notable item (LNI), cash earnings were 2.3% higher than 2H25 with underlying profit up 6.4% supported by strong growth of 5.4% in Business & Private Banking (B&PB).

We made further progress against our three key priorities of growing business banking, driving deposit growth and strengthening proprietary home lending in 1H26. Australian business lending rose 5.6% with market share gains in both SME and total business lending(1). Australian home lending drawdowns via proprietary channels improved from 41.4% in 2H25 to 47.7% in 1H26(2). Deposit balances in B&PB and Personal Banking (PB) increased 4.7% including 8.0% growth in transaction accounts (excluding offsets).

Irvine appears cautiously optimistic on the bank’s outlook. He adds:

Geopolitical tensions have created a more volatile macro economic environment. We enter this period in good shape and actions taken in 1H26 to bolster our balance sheet will allow us to continue to grow and support customers. […]

We are well placed to navigate a period of increased volatility. We will continue to manage our business for the long term to deliver sustainable growth and attractive returns for shareholders.

The post NAB shares fall despite $3.59 billion cash profit appeared first on The Motley Fool Australia.

More reading

• NAB posts higher cash earnings, keeps dividend firm
• 5 things to watch on the ASX 200 on Monday
• What happened with ASX 200 banks stocks NAB and CBA in April?
• 3 ASX dividend stocks with 4% yields to buy for a winning income portfolio
• Which of the big four bank shares has the most upside?

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.

If you are searching for an ASX gold stock to buy with big potential, then it could pay to listen to what Bell Potter is saying about the one in this article.

That’s because if it is on the money with its recommendation, the gold developer’s shares could almost triple in value over the next 12 months.

Which ASX gold stock?

The gold stock that Bell Potter is recommending to clients with a high tolerance for risk is Santana Minerals Ltd (ASX: SMI).

Bell Potter highlights that the New Zealand-based gold developer has continued to de-risk the Bendigo-Ophir Gold Project. It said:

During the quarter, SMI completed a major capital raise ($130.0m at $0.90/sh), which has left it well-funded with $184m cash at quarter end and a further $17m settling in April. This has enabled SMI to commence permitted early site works and secure long-lead items, de-risking the development schedule for the Bendigo-Ophir Gold Project (BOGP). It also represents the equity funding component of pre-production CAPEX of $277m, with the balance expected to be debt funded.

The broker highlights that despite the de-risking, which normally boosts a share price, the ASX gold stock has retreated due to Fast-track Approval (FTA) Determination concerns. It said:

SMI has achieved major de-risking milestones during the quarter, securing a major portion of project funding and leveraging this to advance the development schedule. Exploration success also saw the estimation of an additional 0.5-1.5Moz Exploration Target, making a case for material mine life extension and reinforcing the economic significance of the BOGP.

Despite the technical progress, the share price has traded lower on perceived risk around the pending FTA Determination. In our view, the project is technically robust and designed to exacting standards and conditions. An encouraging precedent has been set with Newmont’s Waihi Gold Mine approved.

Huge potential returns

According to the note, Bell Potter has retained its speculative buy rating on the ASX gold stock with an unchanged price target of $1.70.

Based on its current share price of 57 cents, this implies potential upside of approximately 200% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

The BOGP is one of the most advanced and highest margin greenfield gold projects on the ASX. The BOGP has been further financially and technically re-risked during the quarter. We make no changes to earnings, valuation or recommendation.

The post This ASX gold stock is being tipped to rise almost 200% appeared first on The Motley Fool Australia.

More reading

• 6 ASX All Ords shares elevated to strong buy status after March sell-off

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.

Not every quality ASX share is a good buy at every price.

That is how I am thinking about parts of the ASX 200 right now. There are still high-quality businesses I would be happy to buy and hold, but there are also some names where I think the share price has run ahead of the opportunity.

With that in mind, here are two ASX 200 shares I would buy and two I would consider selling.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the ASX 200 shares I would be happy buying for the long term.

The company owns a collection of high-quality businesses, including Bunnings, Kmart, Officeworks, and other industrial and healthcare operations. What I like is that these businesses give Wesfarmers exposure to everyday consumer spending, home improvement, value retail, and longer-term growth options.

But for me, the real attraction is not just the brands. It is the way Wesfarmers manages capital.

This is a company that has shown it can invest where returns are attractive, walk away from areas that no longer make sense, and keep reshaping the portfolio over time. That kind of discipline can be very valuable over a decade or more.

Bunnings remains the key engine, and I think it still has room to grow through network expansion, digital improvements, trade sales, and ongoing efficiency gains. Kmart also gives the group exposure to value-conscious consumers, which I think remains useful in the current environment.

Goodman Group (ASX: GMG)

Goodman is another ASX 200 share I would put in the buy column.

It owns, develops, and manages industrial property, with a strong focus on logistics warehouses and data centre opportunities. That combination is what makes it interesting to me.

The logistics side benefits from long-term demand for modern warehousing close to major cities. Supply chains are becoming more complex, and businesses need well-located facilities to move goods efficiently.

But the bigger growth angle now is data centres. Goodman owns land in strategic locations, and I think that gives it a powerful advantage as demand for digital infrastructure continues to grow. Artificial intelligence, cloud computing, and data-heavy applications all require significant physical infrastructure.

Westpac Banking Corp (ASX: WBC)

Westpac is a quality bank, and I don’t think this is a negative call on the business itself.

It has a large customer base, a strong deposit franchise, and an important role in the Australian financial system. It also remains a major dividend payer, which will appeal to many income investors.

But after a strong run, I think the valuation looks less compelling and I would be a seller rather than a buyer.

Santos Ltd (ASX: STO)

Santos is another ASX 200 share I would place in the sell column, despite it being a quality energy business.

The company has valuable oil and gas assets and exposure to global energy demand. It can generate strong cash flows when commodity prices are supportive.

But after a strong share price run, I think the investment opportunity here looks less appealing.

Foolish takeaway

For me, this comes down to price and positioning.

Wesfarmers and Goodman are the two I would buy because I think they have durable growth drivers and strong long-term compounding potential.

Westpac and Santos are quality businesses, but after strong runs, I think the risk-reward looks less attractive.

In a market like this, I would rather be selective than simply buy what has already been working.

The post 2 ASX 200 shares I’d buy and 2 I’d sell this month appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 3 ASX blue chip shares to buy with $10,000
• What happened with ASX 200 banks stocks NAB and CBA in April?
• Should you sell in May and stay away?
• How to invest $10,000 for passive income in superannuation

Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Wesfarmers. The Motley Fool Australia has recommended Goodman Group and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As the ASX heads for a relatively flat open this week, the team at Bell Potter has issued updated guidance on two ASX small-cap stocks. 

These options could attract investors looking for high upside companies. However, investors should also be aware of the volatility often experienced by small-cap stocks. 

Alpha HPA Ltd (ASX: A4N) 

A4N’s is an Australian mining company specialising in high purity alumina (HPA). HPA is a key component of lithium-ion batteries, LED lighting, and has other essential commercial applications.

A4N’s HPA First Project in Gladstone (Queensland) is aiming to supply high-purity aluminium-based products to the semiconductor, lithium-ion battery and light emitting diode (LED) manufacturing sectors. The project’s proprietary technology is expected to disrupt incumbent HPA production through delivering ultra-high purity products with significantly lower unit costs.

This ASX small-cap has dropped roughly 15% year to date, however did rebound during April. 

It closed last week at 65 cents per share. 

However the team at Bell Potter is anticipating a significant rise over the next 12 months. 

The broker has a price target of $1.50, along with a speculative buy rating. 

This target indicates an upside potential of 130%. 

Much of this optimism was reinforced by the company’s recent quarterly activities report. 

The broker said the March 2026 quarterly report illustrates increasing interest and demand for its high purity aluminium products from the semiconductor sector. 

Quarterly sales from the Stage 1 facility increased to 4.2t (prior quarter 2.0t), at a weighted average unit price of US$30.53/kg (prior quarter US$28.85/kg).

A4N’s process delivers products with unmatched purity and bespoke morphology which provide value-in-use advantages in these applications. The rollout of AI data centres is driving demand for higher computing efficiency; A4N is increasingly leveraged to this theme.

Strike Energy Ltd (ASX: STX)

Strike Energy Ltd. engages in the exploration and development of oil and gas resources. Its projects include Copper Basin and Perth Basin.

This ASX small-cap has fallen significantly in the last 12 months, but is receiving a positive outlook from Bell Potter. 

Over the past year, its share price has fallen 33%. 

It closed last week at 12 cents per share. 

However, the team at Bell Potter has a speculative buy rating. Additionally, the broker has a price target of 16 cents, indicating a 33% upside. 

The broker said this ASX small cap is leveraged to the Western Australia energy market where electricity and gas prices are expected to remain supportive.

The post Two ASX small-caps to add to your watch list this week appeared first on The Motley Fool Australia.

More reading

• Why did these ASX shares receive a downgrade from Bell Potter?
• 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

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 Viva Energy Group Ltd (ASX: VEA) share price is in focus after the company provided an update on refinery operations following the recent Geelong Refinery fire. Viva Energy expects diesel and jet fuel production at around 80% of capacity and petrol at about 60% until repairs are complete.

What did Viva Energy report?

• The Geelong Refinery incident on 15 April 2026 impacted operations, particularly the Alkylation unit and Residue Catalytic Cracking Unit (RCCU).
• Production of diesel and jet fuel currently at approximately 80% of capacity, petrol at 60% of capacity.
• Repairs to affected units are estimated to take six weeks, with a return to over 90% capacity expected after the RCCU restarts in June.
• Viva Energy states sufficient fuel stocks are available to meet normal supply commitments.
• The company is liaising with insurers on possible property damage and business interruption claims.

What else do investors need to know?

Viva Energy has prioritised safety by securing and isolating the impacted Alkylation unit to enable repairs. Early assessments show no major hindrances to the repair schedule, and preparatory work for returning the RCCU to service is underway.

The ongoing investigation into the fire’s cause and scope of damage is progressing, alongside regular engagement with insurers. Customers are expected to see no disruptions to fuel supply throughout the repair period, as the company believes its existing stocks are sufficient.

What’s next for Viva Energy?

Viva Energy anticipates bringing the RCCU and associated units back online during June. Once repairs are finished, refinery production should return to over 90% capacity, supporting steady supply to customers.

The company remains focused on repair works and is committed to transparent communication with stakeholders as the situation develops. Investigations continue while management works closely with insurers to address business impacts.

Viva Energy share price snapshot

Over the past 12 months, Viva Energy Group shares have risen 43%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Viva Energy updates investors on Geelong Refinery operations appeared first on The Motley Fool Australia.

More reading

• Transurban Group posts April traffic gains as West Gate Tunnel ramps up
• Endeavour Group Q3 sales rise as retail and hotels gain ground
• NAB posts higher cash earnings, keeps dividend firm
• 5 things to watch on the ASX 200 on Monday
• ASX 200 energy shares lead and market finally cracks 8-day losing streak

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 team at Bell Potter has kicked off the new trading week with fresh guidance on a number of ASX shares. 

However two that have received a downgrade are Adairs Ltd (ASX: ADH) and LGI Ltd (ASX: LGI). 

Lets see what the broker had to say. 

Adairs in transition phase 

Adairs is a homewares and home furnishings retailer in Australia and New Zealand. 

It has been struggling so far in 2026, down nearly 28% in that span. 

Shares closed last week at $1.30 each. 

The team at Bell Potter said in its recent report that it remains cautious on these ASX shares in the near term. 

The broker said Adairs 1H26 result saw the company delivering between the mid to high

points of the downgraded guidance range provided in Oct-25. 

However gross margins were towards the bottom end of the guidance range but with some good wins in the Mocka brand. 

While the revenue growth of the key growth brands, Adairs (~70% of the group) and Mocka ~10% of the group) saw further improvements for the first 7 weeks of 2H26 vs 1H26, we see some headwinds for the key 4Q26 as Adairs cycles the range curation driven clearance activity in the pcp and given the current macroeconomic environment.

Based on this guidance, the broker has lowered its price target 44% to $1.40/share (previously $2.50). 

Bell Potter maintained its hold rating. 

While we anticipate the current transition phase across all three brands to progress over the near term, we expect operating leverage led earnings growth to be skewed to the long term with our estimates seeing ~6% revenue growth and ~16% EBIT growth over the next 4 years (4 yr CAGR).

LGI gets a slight downgrade

LGI Ltd is engaged in the recovery of biogas from landfills, and the subsequent conversion into renewable electricity and saleable environmental products.

Its share price is down almost 12% year to date, and closed last week at $3.62. 

Following its H1 FY26 Results, the team at Bell Potter slightly lowered its price target on these ASX shares. 

The broker said wholesale electricity prices fell again in early 2026 across the National Electricity Market (NEM). Prices dropped about 27% in Queensland and 16% in New South Wales compared to last year.

Even though electricity demand reached a record for the quarter, prices still declined because temperatures were milder and there was less price volatility.

Based on this guidance, the broker decreased its price target to $4.50 (previously $4.64). 

In good news for investors, this price target still indicates a solid upside potential of nearly 25%. 

The broker maintained its buy recommendation on these ASX shares. 

The post Why did these ASX shares receive a downgrade from Bell Potter? appeared first on The Motley Fool Australia.

More reading

• Two ASX small-caps to add to your watch list this week
• 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

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

The tech sector has been sold off over the past 12 months, leaving many ASX tech stocks trading well below what analysts believe is fair value.

One of those is Gentrack Group Ltd (ASX: GTK).

What is Gentrack?

It is a provider of specialist billing and CRM solutions and managed services to the energy, water, and airport industries.

Gentrack recently announced that it was strengthening its airport offering with the acquisition of UAE-based Dubai Technology Partners (DTP).

Bell Potter thinks this is a good move by the ASX tech stock. It said:

DTP technology looks to be integrated in a centralised application layer level and an interoperability layer connecting airport-wide platforms. Additionally, DTP brings across a headcount of 60 deep domain and regional experts which GTK views as favourable for its ability to drive scale through Veovo. The timing of the acquisition comes during a phase of heightened geopolitical conflict in the region; prior the Middle East was expected to grow passenger traffic through the region by 10.2% in CY26, 9.5% in CY26 and 8.2% in CY27 (IATA), underpinning the region’s position as the worlds quickest growing market.

There are currently 48 expansion projects in the region worth $182.6b to support forecast passenger growth. Our earnings changes account for FY26 revenue contribution incorporating a marginal EBITDA accretion offset by low integration costs. We have also reduced our FY26+ Utilities margins accounting for uncertainty for timing around pipeline execution and flow on impacts to high margin ARR in FY27+; net EPS changes are -9%/-8%/-14% for FY26e-FY28e.

Big potential returns

According to the note, the broker has retained its buy rating on the ASX tech stock with a reduced price target of $8.80 (from $11.00).

Based on its current share price of $4.78, this implies potential upside of 84% for investors over the next 12 months.

Bell Potter is positive on Gentrack due to its position in a market experiencing large secular tailwinds. Commenting on its buy recommendation, the broker said:

Incorporating the earnings changes, our Target Price reduces to A$8.80 following an increase in our WACC to 10.6% due to a lift in our risk-free rate to 4.5%. We remain broadly positive on GTK due to the large secular tailwinds in rapidly shifting energy production and consumption trends driving increased complexity within grids, billing platform requirements and broader digital transformations.

The post Why this ASX tech stock could rocket 80% according to a top broker appeared first on The Motley Fool Australia.

More reading

• Why Capstone Copper, Gentrack, Mineral Resources, and WiseTech shares are racing higher today
• ASX tech stock charges higher on big acquisition news

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

The Transurban Group (ASX: TCL) share price is in focus after the company revealed April traffic improvements, with Melbourne traffic up 1.6% and commercial vehicle traffic in Australia rising 10.8%.

What did Transurban Group report?

• Melbourne April traffic grew by 1.6%, supported by the West Gate Tunnel project
• Brisbane April traffic increased by 0.7%
• Sydney April traffic declined by 1.2%, impacted by holidays and construction activity
• Australian commercial vehicle traffic rose 10.8% overall (4.4% excluding West Gate Tunnel)
• North America quarterly average toll prices surged 14.6% on 95 Express Lanes and 36.0% on 495 Express Lanes
• $1.210 billion of WestConnex debt successfully refinanced, extending debt maturity

What else do investors need to know?

The West Gate Tunnel project continues to deliver benefits for Melbourne, with time and fuel savings reported for heavy vehicles and a substantial reduction in truck traffic on local streets. Around 63% of tunnel traffic is made up of large vehicles, underlining the asset’s importance to freight operators.

Transurban noted early April traffic trends appeared to be stabilising after earlier weakness linked to the broader geopolitical and macroeconomic environment. Management is keeping a close eye on external conditions but highlights the resilience of its toll road portfolio, with over 90% of revenue CPI-linked or escalated.

During the period, the Group also refinanced WestConnex debt, helping to strengthen liquidity and the overall balance sheet.

What’s next for Transurban Group?

Transurban says it will continue to monitor the evolving geopolitical and economic landscape but is confident in the fundamentals of its urban toll road network. The company remains focused on disciplined balance sheet management and delivering value for customers through its city-focused infrastructure portfolio.

The West Gate Tunnel is expected to continue ramping up, especially among car users over time. Transurban will keep updating investors on project progress and any impacts arising from macroeconomic developments.

Transurban Group share price snapshot

Over the past 12 months, Transurban shares have declined 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which have risen 7% over the same period.

View Original Announcement

The post Transurban Group posts April traffic gains as West Gate Tunnel ramps up appeared first on The Motley Fool Australia.

More reading

• Viva Energy updates investors on Geelong Refinery operations
• Endeavour Group Q3 sales rise as retail and hotels gain ground
• NAB posts higher cash earnings, keeps dividend firm
• 3 excellent ASX dividend shares to buy in May
• 5 things to watch on the ASX 200 on Monday

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 Transurban Group. The Motley Fool Australia has positions in and has recommended Transurban Group. 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 Endeavour Group Ltd (ASX: EDV) share price is in focus today after the company reported group sales growth of 3% for Q3 FY26, with retail and hotels both delivering positive results despite a tough economic climate.

What did Endeavour Group report?

• Q3 FY26 retail sales up 2.9% to $2,398 million
• Q3 FY26 hotel sales up 3.7% to $531 million
• Group sales for Q3 FY26 totalled $2,929 million, up 3% year-on-year
• H2 FY26 to date: retail sales up 0.7%, hotel sales up 3.7%
• Group targeting $100 million in cost savings in FY27
• Elevated supply chain costs expected due to higher fuel and freight prices

What else do investors need to know?

Endeavour Group says it is gaining retail market share, even with subdued demand outside of key festive periods. Hotels saw strong early momentum in Q3, but sales growth slowed in March and April as the cost of living rose.

The company is proactively building up retail inventory—adding up to $400 million extra compared to the prior year—to manage potential supply issues linked to Middle East conflicts. Higher inventory and freight costs are expected to temporarily increase the Group’s working capital and supply chain expenses by $6–8 million in H2 FY26.

The Group continues to streamline its operations, aiming to simplify the business and deliver significant cost reductions, with a $100 million cost-saving target for FY27.

What did Endeavour Group management say?

Endeavour Group CEO Jayne Hrdlicka commented:
“In line with our strategic focus on simplifying the Group platform, we have identified a significant opportunity to drive costs out of the business and improve productivity and profitability. We are implementing a more efficient operating model to deliver better returns for our shareholders and look forward to discussing this more fully at our upcoming Investor Day.”

What’s next for Endeavour Group?

Management will outline Endeavour Group’s updated strategy and transformation plan at its Investor Day in Sydney on 27 May 2026. Investors can expect a focus on cost optimisation, inventory management, and further updates on navigating supply chain risks.

A further update on the impact of the Middle East conflict will follow with the FY26 full-year results in August. The company remains committed to strengthening its balance sheet and delivering value to shareholders through ongoing operational improvements.

Endeavour Group share price snapshot

Over the past 12 months, Endeavour shares have declined 18%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.

View Original Announcement

The post Endeavour Group Q3 sales rise as retail and hotels gain ground appeared first on The Motley Fool Australia.

More reading

• Viva Energy updates investors on Geelong Refinery operations
• Transurban Group posts April traffic gains as West Gate Tunnel ramps up
• NAB posts higher cash earnings, keeps dividend firm
• 5 things to watch on the ASX 200 on Monday
• ASX 200 energy shares lead and market finally cracks 8-day losing streak

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.

Shares in WiseTech Global Ltd (ASX: WTC) have bounced 10% over the past month. But zoom out, and the picture still looks bruised, as the ASX tech stock is down 36% year to date and roughly 51% over the past 12 months.

That sharp pullback may have already caught the attention of bargain hunters.

But beyond valuation, there are several reasons why investors might want to take a closer look at WiseTech shares in May

Global platform with strong positioning

WiseTech is best known for its flagship logistics platform, CargoWise, which is used by freight forwarders, customs brokers, and global logistics providers.

The software helps manage complex international supply chains, handling everything from shipment tracking to customs compliance. With customers spanning multiple continents and deeply embedded workflows, WiseTech has built a powerful global footprint.

This kind of integration creates high switching costs and recurring revenue streams, a key advantage in the software space. As global trade continues to expand and digitise, WiseTech shares remain well positioned to benefit.

Leaning into AI, not fearing it

Artificial intelligence is one of the biggest questions hanging over many software companies and WiseTech is no exception.

Some investors worry that AI could disrupt traditional software models. But WiseTech appears to be taking the opposite approach by embracing the technology.

The company is embedding AI across its platform to improve automation, decision-making, and operational efficiency for customers. Internally, it is also deploying AI tools to lift productivity and reduce costs, with plans to reshape parts of the business over time.

There is also a broader strategic shift underway. WiseTech is moving toward a transaction-based revenue model, where earnings are more closely linked to the value delivered rather than simply the number of users.

If AI helps customers process more transactions and operate more efficiently, it could actually increase the value of WiseTech’s platform, not diminish it. That dynamic may strengthen its competitive moat, expand its long-term growth opportunity and inflate the WiseTech share price.

Strong broker support

Despite recent share price volatility, broker sentiment remains firmly positive.

Bell Potter currently has a buy rating on WiseTech shares, with a price target of $78.75. Based on recent levels around $44.00, that implies potential upside of close to 80% over the next year.

The broader market view is similarly optimistic. Data from TradingView shows that 14 out of 17 analysts rate the stock as a strong buy, with one buy and only two holds.

The average price target sits near $77, pointing to roughly 75% upside. At the more bullish end, some forecasts reach as high as $115.85, suggesting potential gains of nearly 165%.

Foolish Takeaway

WiseTech shares have taken a heavy hit over the past year, but the company’s fundamentals and long-term growth drivers remain compelling.

With a globally embedded platform, a proactive approach to AI, and strong backing from analysts, this beaten-down tech stock could be worth considering for investors willing to look beyond short-term volatility.

The post 3 reasons to buy WiseTech shares in May appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.