Category: Stock Market

Today, Superloop Ltd (ASX: SLC) announced that AGL Energy Ltd (ASX: AGL) plans to sell its telecommunications business. Superloop currently provides wholesale network services to Southern Phone Company, a subsidiary of AGL, under an agreement expiring in June 2029. The company flagged a potential annual gross margin impact of up to $4 million from the expected subscriber migration.

What did Superloop report?

• AGL Energy intends to divest its telecommunications business.
• Superloop’s wholesale agreement with Southern Phone (AGL subsidiary) expires June 2029.
• Subscriber migration from AGL’s network anticipated in first half of FY27.
• Estimated potential gross margin impact of up to $4 million per year if agreement usage drops fully.

What else do investors need to know?

Superloop supplies network and backhaul transit services to Southern Phone, which has contributed to its wholesale segment revenues. The agreement with Southern Phone runs until mid-2029, but changing circumstances could see a material reduction in usage and income should the migration occur as foreshadowed.

Management estimates the total annual gross margin impact could reach $4 million, depending on the extent of AGL’s migration from Superloop’s infrastructure. There is no mention of a change to guidance at this stage.

What’s next for Superloop?

Investors will watch for further developments as AGL progresses the sale and refocuses its telecommunications operations. Superloop will be assessing the full impact on its future earnings as more details emerge around the subscriber migration.

Superloop remains committed to servicing its large portfolio of consumer, business, and wholesale customers and continues to invest in its fibre and wireless network infrastructure.

Superloop share price snapshot

Over the past 12 months, Superloop shares have risen 8%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Superloop flags $4 million margin risk from AGL telecom business exit appeared first on The Motley Fool Australia.

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• Why AGL shares are jumping 8% on results day

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.

These 3 ASX-listed real estate investment trusts have been in focus this week after releasing their latest half-year results.

Arena REIT (ASX: ARF) shares are up 0.86% to $3.53, Dexus Industria REIT (ASX: DXI) is 0.40% higher at $2.54, while Dexus Convenience Retail REIT (ASX: DXC) is flat at $2.82.

Arena REIT and Dexus Industria REIT reported today, while Dexus Convenience Retail REIT released its numbers on Monday.

Here is what investors are digesting.

Arena REIT stands out with earnings and distribution growth

Arena REIT reported a strong result for the six months to 31 December 2025, underpinned by contracted rental growth and development completions.

Net operating profit increased 9% to $39 million, while operating earnings rose to 9.70 cents per security, up 5.4% on the prior corresponding period. Statutory net profit came in at $110 million, reflecting valuation gains across the portfolio.

Arena declared an interim distribution of 9.625 cents per security, up 5.5% year on year, and reaffirmed full-year distribution guidance of 19.25 cents per security.

Portfolio fundamentals remain a key strength. Occupancy was 100%, with a weighted average lease expiry of 17.9 years. The trust recorded a portfolio valuation uplift of $61.2 million, taking total assets to $1.98 billion and net asset value per security to $3.64.

Dexus Industria REIT holds up as costs rise

Dexus Industria REIT delivered a resilient half-year result despite higher interest costs weighing on earnings.

Funds from operations declined slightly to $28.2 million, or 8.9 cents per security. Statutory net profit after tax (NPAT) fell to $43.4 million, reflecting lower valuation gains compared with the prior half.

The trust declared an interim distribution of 8.3 cents per security and reaffirmed full-year guidance of 16.6 cents per security. FY26 funds from operations guidance was slightly upgraded to between 17.3 and 17.4 cents per security.

Portfolio metrics remained solid, with occupancy at 99.7% and a weighted average lease expiry of 5.3 years. Net tangible assets increased 5.1% to $3.39 per security, supported by a $14.8 million uplift in portfolio valuations.

Dexus Convenience Retail REIT focuses on steady income

Dexus Convenience Retail REIT reported a steady result for the half-year to 31 December 2025, reflecting the defensive nature of its convenience-based retail portfolio.

Funds from operations came in at $14.5 million, or 10.5 cents per security, supported by like for like income growth of 2.9% and average rent reviews of 3.1%. The trust declared an interim distribution of 10.45 cents per security.

Statutory net profit after tax (NPAT) rose to $35.8 million, up from $14.7 million in the prior corresponding period, driven by a $19.8 million valuation uplift. Net tangible assets increased 4.4% to $3.80 per security.

Portfolio occupancy remained high at 99.9%, with gearing of 29.8% at the lower end of the target range.

Foolish Takeaway

All 3 REITs delivered solid results that met expectations, but none provided a strong reason to be re-rated.

Arena continues to offer visible earnings and distribution growth, while Dexus Industria and Dexus Convenience Retail remain focused on stability.

The post Income investors are watching these 3 ASX REIT results. Here’s the details appeared first on The Motley Fool Australia.

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

A strong rally across the resources sector has lifted several heavyweight S&P/ASX 200 Index (ASX: XJO) shares over the past month. Higher commodity prices, solid operational updates and a busy reporting calendar have all helped sentiment.

Here are 3 ASX 200 shares that have stood out with impressive gains over the last 4 weeks.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is up 1.40% today to $164.86 and has climbed more than 15% over the past month.

The world’s largest iron ore producer has benefited from firmer iron ore prices and renewed optimism around global infrastructure spending. Investors are also positioning ahead of Rio Tinto’s upcoming full-year results, which are due on 19 February.

Rio Tinto’s Pilbara iron ore operations remain a key strength, generating significant cash flow even in volatile markets. Meanwhile, exposure to copper, aluminium and lithium provides diversification as demand for electrification and energy transition metals continues to grow.

With a strong balance sheet, disciplined capital management and a history of very generous dividends, Rio Tinto remains a core income stock for many investors. The recent share price rally suggests the market is expecting a solid result later this month.

Evolution Mining Ltd (ASX: EVN)

Evolution Mining has delivered one of the strongest performances of the group.

The Evolution share price is up 8.21% today to $16.21 and has surged around 26% over the past month. The move follows the release of the company’s half-year results today, which impressed the market.

Evolution reported record half-year earnings, driven by higher gold prices, strong operating margins and disciplined cost control. Cash flow was a major highlight, allowing the company to declare a 20 cents per share fully franked interim dividend.

Gearing is now at low levels and multiple growth projects are underway. This has boosted confidence that Evolution can deliver strong returns even if gold prices ease from recent highs.

South32 Ltd (ASX: S32)

The South32 share price is up 0.87% today to $4.63 and has risen more than 20% over the past month.

The diversified miner has benefited from improving sentiment across base metals, particularly aluminium, copper and manganese. South32 also offers exposure to longer-term growth tailwinds from electrification and infrastructure spending.

Investors are now looking ahead to South32’s half-year results, which are expected to be released tomorrow. With commodity prices higher than a year ago and costs showing signs of stabilising, expectations are building for a solid update.

The company’s strong balance sheet and capital return potential have also helped underpin the recent rally.

The post These 3 ASX 200 shares have had a stellar month. Is there more upside to come? appeared first on The Motley Fool Australia.

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

The S&P/ASX 200 Index (ASX: XJO) is 1.47% higher in early afternoon trade on Wednesday. The latest uptick has dragged the index 3.09% higher for the year to date. But there are some ASX 200 growth shares that I have my eye on, and they’ve all outpaced the index already so far this year.

AGL Energy Limited (ASX: AGL)

AGL shares have rocketed higher today, up 9.32% to $9.68 at the time of writing. The gas and electricity provider’s shares have been pushed higher by the company’s solid first-half result, posted this morning.

AGL reported flat underlying EBITDA and a 6% decline in underlying net profit after tax. Investors were most excited by the company’s revised FY26 guidance figures. AGL now expects full-year underlying EBITDA of $2.02 billion to $2.18 billion. Previously, the range was $1.92 billion to $2.22 billion.

Its underlying net profit guidance was also tightened to $580 million to $680 million, from a much wider range of $500 million to $700 million.

Analysts expect a lot more from the ASX 200 energy shares this year. Data shows 7 out of 9 analysts have a buy or strong buy rating and a maximum target price of $12.72. After today’s price surge, it now implies a 31.92% upside at the time of writing.

Bellevue Gold Ltd (ASX: BGL)

The ASX 200 gold company’s shares are 5.56% higher today, at $1.84 a piece. There has been no price-sensitive news out of the company today, so the latest uptick is likely off the back of renewed interest in gold stocks as the sector gains momentum. 

The gold producer released its quarterly results last month, announcing a 10% quarter-on-quarter increase in gold production and confirming FY26 production guidance of 130,000 to 150,000 ounces of gold.

The majority of analysts have a strong buy rating on the stock with a target price of $2.60. That implies a 40.54% upside at the time of writing.

Eagers Automotive Ltd (ASX: APE)

Eagers shares are 0.96% higher at the time of writing today, at $26.18 a piece. For the year to date, the ASX 200 auto retailers’ shares are 6.21% higher, and they’re up a whopping 106.96% for the year.

The company has a diversified earnings base and operates the majority of BYD dealerships in Australia. This gives it exposure to the rapidly expanding EV sector. It also announced acquisition of a 65% stake in Canada’s largest auto dealerships late last year.

Analysts think there is more upside to come, too. Half of analysts have a buy or strong buy rating, and the maximum target price is $35.90 a piece. That implies a 36.97% upside at the time of writing.

The post These 3 ASX 200 shares could climb 30% (or higher) in 2026 appeared first on The Motley Fool Australia.

More reading

• Income investors: You don’t want to miss AGL’s latest dividend
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• AGL Energy posts 1H26 profit and narrows FY26 earnings guidance

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

Northern Star Resources Ltd (ASX: NST) shares have been among the standout performers on the ASX over the past year.

The company’s share price is up roughly 50% over the past 12 months, riding a powerful rally in the gold price that has pushed spot prices to around US$5,000 an ounce.

That kind of run is impressive. But for me, it also raises a red flag.

After such a strong rally, the risk-reward profile for Northern Star is no longer as attractive as it once was. The share price is pricing in a lot of good news at a time when operational challenges remain, and the gold price itself may be closer to a peak than the start of another major leg higher.

With that in mind, I’d rather look elsewhere.

Why Northern Star shares look expensive from here

Northern Star’s recent gains have been driven far more by external factors than by a step-change in its operations. A surging gold price has lifted the entire sector, and Northern Star has been a clear beneficiary.

The problem is that gold shares tend to be very sensitive once momentum turns. With the gold price already at extreme levels, even a period of consolidation could take the shine off gold miners. If prices pull back meaningfully, stocks that have already delivered 50% gains can fall just as quickly.

On top of that, Northern Star continues to face operational issues across assets. Execution risk matters much more when valuations are elevated and expectations are high.

For me, that makes the downside harder to ignore.

Why I prefer BHP for large-scale exposure

If I’m allocating fresh capital today, I’d rather own BHP Group Ltd (ASX: BHP) shares.

BHP offers exposure to copper, iron ore, and other critical commodities, with copper being the key attraction right now. Structural demand from electrification, renewable energy, and data centre infrastructure continues to build, and copper sits right at the centre of that theme.

Unlike gold, copper demand is tied directly to economic activity and long-term infrastructure investment. BHP’s scale, balance sheet strength, and low-cost assets give it flexibility across cycles, and its cash generation remains exceptional.

If commodity prices soften, BHP has far more resilience than most single-commodity producers.

Rio Tinto Ltd (ASX: RIO) is another solid alternative.

Like BHP, Rio has meaningful copper exposure and is investing to grow production over time. It also benefits from scale and long-life assets, which help reduce operational risk.

That said, if I had to choose between the two, I still lean toward BHP. Its diversification, balance sheet, and capital-allocation track record give me greater confidence when markets inevitably turn more volatile.

Foolish Takeaway

Northern Star shares have had a great run, but after a 50% rally and with gold prices already extremely high, the risk-reward looks less compelling to me.

Instead, I’d rather own high-quality, diversified miners like BHP, with Rio Tinto as a solid secondary option. For investors thinking long term, copper exposure through global mining leaders feels like a more durable way to position capital from here.

The post I would skip Northern Star shares and buy these ASX stocks appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Northern Star Resources. 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.

Many of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to the release of a number of broker notes this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

CAR Group Limited (ASX: CAR)

According to a note out of Morgans, its analysts have upgraded this auto listings company’s shares to a buy rating with a $35.20 price target. Morgans was pleased with the company’s half-year result and described it as strong overall. It was particularly pleased with the double-digit growth it achieved in key offshore markets and the robust growth it reported locally. The broker highlights that CAR Group shares are trading on ~22x estimated FY 2027 earnings, which it views as an attractive entry point given its double-digit EPS growth profile. The CAR Group share price is trading at $26.83 this afternoon.

Electro Optic Systems Holdings Ltd (ASX: EOS)

A note out of Ord Minnett reveals that its analysts have retained their speculative buy rating and $12.72 price target on this defence technology company’s shares. This follows the release of a response to a scathing short seller attack from Grizzly Reports. The broker was pleased with management’s response and appreciates the improved clarity on existing contracts. Overall, it remains positive on the investment opportunity here, highlighting that EOS stands to benefit from geopolitical tensions and rising defence spending, as well as a substantial unconditional order book. The EOS share price is fetching $6.69 at the time of writing.

WiseTech Global Ltd (ASX: WTC)

Analysts at Bell Potter have retained their buy rating on this logistics solutions technology company’s shares with a reduced price target of $87.50. According to the note, the broker highlights that WiseTech’s shares have fallen so hard they are now trading on their lowest forward EV/EBITDA multiple in almost a decade on the ASX boards. The broker feels that this selloff has created a key buying opportunity for investors and sees significant value in its shares at current levels. The WiseTech share price is trading at $49.86 on Wednesday afternoon.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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

Electro Optic Systems Holdings Ltd (ASX: EOS) shares have been volatile in recent days. Since the company released its response, selling pressure appears to have finally eased.

After emerging from a trading halt on Tuesday, EOS shares fell sharply from $6 to an intraday low of $5.05. However, buyers stepped in, with the stock rebounding strongly to close at $6.71.

Today, EOS shares are trading slightly lower at $6.63, down 1.19%.

While the share price has edged lower, recent trading suggests panic selling has eased, and investors are reassessing the business on fundamentals.

What did EOS say in its response?

EOS released a detailed 15-page response addressing the claims made by short seller Grizzly Research.

The company rejected the report’s conclusions and said the allegations were misleading and selective. Importantly, EOS did not disclose any new accounting issues or regulatory breaches.

On the high energy laser contract in South Korea, EOS reiterated that the agreement was always disclosed as conditional. The company also confirmed that the contract was never included in its reported backlog figures, which directly addresses concerns that near-term revenue had been overstated.

EOS also defended its acquisition of MARSS, explaining that the business expands its software and command-and-control capabilities, which are increasingly vital for counter-drone systems. Management said the acquisition was the result of a structured review process and was supported by due diligence across multiple jurisdictions.

On cash flow and funding, EOS highlighted its strengthened balance sheet following the sale of its EM Solutions business.

A closer look at the balance sheet

As at the end of January, EOS reported cash of approximately $128 million. The company also has access to a $100 million committed debt facility.

One of the key issues raised by the short seller was funding risk. Based on the company’s disclosures, EOS does not appear to be under immediate pressure to raise capital.

EOS also reported an unconditional contract backlog of around $459 million as at 31 December 2025. That backlog provides revenue visibility over the next few years and excludes the conditional Korean laser contract.

Why investors are still interested

EOS operates in defence markets where demand is growing. Rising global defence spending, increased focus on counter-drone technology, and interest in directed energy weapons all support long-term demand for the company’s products.

The recent sell-off has also materially changed the valuation. EOS shares are now down around 33% over the past month, despite no change to the company’s core assets or long-term opportunity.

That does not mean the risks have disappeared. Contract timing, execution risk, and share price volatility remain issues investors need to factor in.

Foolish Takeaway

EOS shares remain unsettled, but the sharp rebound after the trading halt suggests the market has begun to digest the company’s response.

At current levels, the balance between risk and reward looks more compelling than it did a few weeks ago.

The post Is now the time to invest in EOS shares? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems. 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.

Commonwealth Bank of Australia (ASX: CBA) shares have jumped 7.99% higher in early afternoon trade on Wednesday. At the time of writing, the shares are trading at $171.42.

The uptick means the shares are now 6.4% higher for the year to date and 5.77% higher than this time last year. CBA shares are also just 10.4% below their all-time high of $191.40 recorded in June last year.

What has pushed CBA shares higher today?

The banking giant reported its first-half results this morning. CBA posted a 5% increase in its statutory net profit after tax (NPAT), a 6% hike in its cash NPAT, and a 4% increase in its interim dividend, to $2.35 per share, fully franked.

It looks like investors are thrilled with the result, with many jumping at the chance to buy the stock, pushing the share price up higher as a result.

The latest update from the bank is great news for investors after dwindling confidence in the company’s overvalued share price saw many shying away from the shares over the past few months.

CBA shares crashed nearly 30% in November following its Q1 FY26 results, which revealed a 2% year-on-year increase in unaudited cash NPAT and a 4% increase in operating costs. 

Concerns that CBA’s shares are significantly higher than those of other major Australian banks, and its high price-to-earnings (P/E) ratio continued to pile pressure on the share price through late-2025 and early-2026.

The Reserve Bank’s decision to hike interest rates earlier this month also dented investor confidence in the banking giant.

What’s the outlook for CBA shares this year?

Chief Executive Vittoria Shortt said, “While the geopolitical outlook remains uncertain, we are seeing more confidence in the economy, supported by lower interest rates and good export earnings in key sectors. This is evident in the uptick we’ve seen in business lending, with more lending growth across small business, commercial and rural this half than in the previous financial year.” 

“We remain well positioned to support our personal and business customers as they continue to tackle higher costs, navigate volatility or transition to growth.”

While the bank is somewhat optimistic that confidence is returning to the market overall, the update hasn’t reinvigorated analyst sentiment at present. We may see brokers reviewing their position on CBA shares in the coming days, although there won’t necessarily be a material change either way.

At the moment, TradingView data shows that most analysts (14 out of 16) hold a sell or strong sell rating on CBA shares. The target prices vary wildly, but they all imply a downside from the current trading price.

The average target price is $123.54. This implies the shares could drop another 27.91% over the next 12 months, at the time of writing.

The post Here’s the outlook for CBA shares in 2026 appeared first on The Motley Fool Australia.

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

With everyone around the proverbial investing watercooler talking about Commonwealth Bank of Australia (ASX: CBA)’s latest earnings today, it can be easy to forget that CBA isn’t the only ASX share with something to show investors. AGL Energy Limited (ASX: AGL) has also given investors a look at its latest financials this Wednesday, and it makes for some particularly interesting reading for dividend investors.

As we covered this morning, AGL had to show off a mixed set of numbers covering the six months to 31 December 2025. The energy generator and retailer posted an underlying net profit after tax of $353 million, down 6% on the same period in 2024. The company also revealed a statutory profit after tax of $94 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) came in at $1.09 billion, which was essentially flat year on year.

On the bright side, AGL told investors that it provided 4.7 million total customer services, an improvement of 108,000.

Investors seem happy with what AGL had to say for itself, though. That’s judging by the fact that, at the time of writing, the AGL share price is up a jubilant 9.3% to $9.68.

AGL shares surge amid dividend hike

But let’s talk about AGL’s dividend. Over the past decade, AGL hasn’t exactly endeared itself to ASX income investors. The company went from paying out $1.19 per share in 2019 to 26 cents per share in 2022 – a huge income cut that shareholders had to absorb.

However, the trend has been far more positive in recent years, and today’s earnings do nothing to change that.

AGL has revealed that its next dividend will be an interim payment worth 24 cents per share, alone worth almost as much as 2022’s full-year total. This dividend will come with full franking credits attached, in line with the company’s 2025 payments.

This dividend represents a 4.35% rise over last year’s interim dividend, worth 23 cents per share. Together with AGL’s final dividend of 2025, worth 25 cents per share, it takes the company’s 12-month total to 49 cents per share.

Today, AGL shares are already trading on a hefty trailing dividend yield of 4.96% (it was 5.42% at AGL’s closing price yesterday). But this dividend hike means that the company can also be given a forward dividend yield of 5.06%. That grosses up to 7.23% with the value of AGL’s full franking credits.

Foolish Takeaway

As we’ve already touched on, AGL is not the reliable dividend stock it once was. It is at the centre of Australia’s ongoing energy transition, which has caused the company financial pain in the past and might do so again. Saying that, the company’s finances have stabilised remarkably over the past few years, and AGL’s hefty dividend yield (almost double CBA’s right now) is arguably worth considering as part of a diversified income portfolio today.

The post Income investors: You don’t want to miss AGL’s latest dividend appeared first on The Motley Fool Australia.

More reading

• Why AGL, CBA, Domino’s, and James Hardie shares are jumping today
• Why Aussie Broadband shares are soaring 13% today
• Why AGL shares are jumping 8% on results day
• AGL Energy posts 1H26 profit and narrows FY26 earnings guidance
• 3 beaten-down ASX 200 shares to pick up in February

Motley Fool contributor Sebastian Bowen 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.

Web Travel Group Ltd (ASX: WEB) shares are in the green in early afternoon trade on Wednesday. At the time of writing, the shares are 1.26% higher at $3.625 a piece.

The increase is welcome news for investors after the online travel booking services company’s shares crashed 41% to an 11-year low on Friday last week. The share price drop came after the ASX 200 travel stock announced that the Special Delegation of the Balearic Islands of the Spanish Tax Agency had commenced an audit of its Spanish subsidiary.

The audit will review direct taxes paid (and owed) between April 2021 and March 2024, as well as indirect taxes for the period between January 2022 and December 2025.

The news sent tongues wagging, and investors rushed to hit the sell button in a state of panic.

All eyes are still on the ASX travel stock as we wait to hear the outcome of the audit and see what will happen to the share price next.

What has happened to Web Travel Group shares this week?

Web Travel Group shares have recovered 10% of their losses since the ASX opened on Monday, when the company issued an update to investors.

Management reassured investors that only the company’s Spanish subsidiary is being audited. 

Web Travel Group also said it does not expect any material earnings impact from the Spanish tax review.

The company reiterated its full-year FY26 earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance of between $147 million and $155 million. That represents a 22% to 29% increase on the company’s FY25 EBITDA of $121 million.

While the uptick this week is positive, the shares have a long way to go before the price recovers to pre-crash levels.

What do analysts expect from the stock this year?

Despite the downturn over the past week, analysts remain very optimistic about the company’s outlook for 2026. 

Data shows that 12 out of 14 analysts hold a buy or strong buy rating on the stock. And the maximum target price is $7.40 a piece. That implies a 102.19% upside at the time of writing!

UBS has a bullish share price target on the stock of $6.15. The broker seems to be unfazed by the Spanish tax audit, saying that the company had been audited in Spain in 2024, and management “emphasised they consider this audit immaterial” on an investor call this week.

The team at Jarden also has a bullish price target of $5.70 per share. The team said the audit is immaterial and expects the company to remain on track to meet its growth targets this year.

The post Why is everyone talking about Web Travel Group shares this week? appeared first on The Motley Fool Australia.

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