Category: Stock Market

The share market operator ASX Ltd (ASX: ASX) this week provided updated guidance on its expected expense growth for FY27 and updated capital expenditure, sending its shares rapidly south.

The company said the guidance announcement was informed by its annual planning process, and that its financial expectations for the current financial year were not affected.

Expenses to spike

But in FY27, the ASX expects total expenses growth of 18-21%, with operating expense growth of 13-16% compared to FY26.

The company said this was largely being driven by technology modernisation, “the expanded Accelerate Program as part of our response to the ASIC Inquiry and investments to support customer-driven growth”.

The expected capital expenditure has also increased, from $160- $180 million to $180- $200 million.

The ASX has kept its dividend policy unchanged, saying it would pay out 75- 85% of underlying net profit, but added that it expected to pay out towards the bottom end of this range for at least the next two dividends.

The ASX also said its operating revenue for the financial year to the end of April was $1.03 billion, up 12.5% on the previous corresponding period.

Mixed view on the outlook

The major brokers have run the ruler over the forecasts and have come up with differing price targets for ASX shares.

UBS is the most bullish, with a price target for ASX shares of $62, compared with the current $46.80 (at the time of writing).

The broker said the cost and capex outlooks were “materially higher than expected”, but the ultimate profit and loss impact would be much smaller due to the market operator’s ability to recover revenue.

The team at Jarden is also predicting upside for ASX shares, with a price target of $55.30, down from $58.75.

They said:

We have previously flagged FY27 cost upside as a central concern, and today’s guidance confirms that risk at a magnitude greater than anticipated, with total expense growth of 18-21% exceeding our estimates by a considerable margin. The read-through is not uniformly negative: crystallising the cost envelope ahead of the CEO transition hands incoming CEO Anthony Attia a defined base rather than an open-ended liability, and the guidance should be broadly sufficient to accommodate Accelerate obligations once finalised, though the reset remains subject to ASIC and RBA agreement.

Jarden said the ASX is trading at a material discount to its 10-year average on a price-to-earnings basis. The broker has a neutral rating on the shares.

Macquarie also has a neutral rating on ASX shares with a price target of $54.00.

Macquarie said it was hard to see the ASX meeting its medium-term EBITDA targets.

They added, “With a review of the business strategy commencing, we maintain our Neutral recommendation”.

The post Down more than 30% over a year, are ASX shares now looking cheap? appeared first on The Motley Fool Australia.

More reading

• Why ASX, CBA, Endeavour, and Tuas shares are falling today
• Why ASX, Challenger, Flight Centre, and Goodman shares are falling today
• ASX shares sink 8% as investors baulk at spending surge
• ASX shares rise as investors welcome a major leadership change
• Here are the top 10 ASX 200 shares today

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has bounced back from a soft start and is edging higher. At the time of writing, the benchmark index is up 0.1% to 8,667.9 points.

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

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is up 2.5% to $9.12. The catalyst for this may have been a broker note out of Bell Potter this morning. According to the note, the broker has retained its buy rating on the defence and space company’s shares with an improved price target of $10.60. In response to the completion of its acquisition of MARSS, Bell Potter said: “EOS is positioned as a market leader across many C-UAS verticals and is leveraged to increasing budget allocations to C-UAS technologies. EOS possess a catalyst rich next 12 months, with potential HELW, C2 and Slinger awards on the horizon.”

Life360 Inc (ASX: 360)

The Life360 share price is up 1.5% to $19.10. This may also have been driven by a broker note out of Bell Potter this morning. According to the note, Bell Potter has retained its buy rating on the location technology company’s shares with an improved price target of $33.00. It said: “We expect similarly strong paying circle growth in each of Q2, Q3 and Q4 and, given this is the key driver of revenue growth, we believe market focus will shift to this positive rather than the negative of any weakness in MAU growth.”

Nufarm Ltd (ASX: NUF)

The Nufarm share price is up 14% to $2.92. Investors have been buying this agricultural chemicals company’s shares following the release of its half-year results. Although Nufarm posted a 5% decline in revenue to $1.7 billion, its underlying net profit after tax increased 35% to $52 million. The company’s CEO, Rico Christensen, said: “We are pleased with first half performance and are well placed to deliver strong growth in underlying earnings and a significant reduction in leverage for the full year, consistent with previous guidance. We have made clear progress on the priorities we set in November last year, delivering earnings growth, improved cash flow and a reduction in leverage. The benefit of our increased strategic focus is visible in the margin improvement in Crop Protection and significant uplift in earnings from our Seed Technologies business.” Looking ahead, management has reaffirmed its FY 2026 outlook for positive free cash flow.

Web Travel Group Ltd (ASX: WEB)

The Web Travel share price is up 1.5% to $2.42. This follows the release of the travel technology company’s FY 2026 results. The WebBeds owner reported a 20% increase in revenue to $394.1 million, while net profit more than tripled to $35.5 million. The company’s managing director, John Guscic, said: “FY26 was a terrific year for the WebBeds business. We continue to win share, TTV margins continue to improve, and our scalable business model is delivering higher operating leverage. WebBeds’ EBITDA margin remains world class.”

The post Why EOS, Life360, Nufarm, and Web Travel shares are pushing higher today appeared first on The Motley Fool Australia.

More reading

• Nufarm shares jump 11% as turnaround signs continue
• Why are shares in this ASX travel company charging higher today?
• Why Life360 shares could be cheap and heading 75% higher
• Up 400%+: Does Bell Potter think EOS shares can keep rising?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has positions in Life360 and Web Travel Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems and Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Is it 1969 or 2026? Investors might be a little confused, given that space, or more specifically, investing in space stocks, is becoming all the rage this year. A month ago, the ASX hosted no space-themed exchange-traded funds (ETFs). Today, it has one, and soon, it will have two.

That says it all.

Yep, as we covered earlier this month, 12 May saw the debut of the BetaShares Space Industry ETF (ASX: RCKT). This ASX ETF allows Australian investors to indirectly own shares in a number of global leaders in the space sector. RCKT units have done quite well since their ASX inception, too, currently up almost 30% since launch (no pun intended).

Perhaps rival ETF provider Global X has noticed. It has just revealed that its next ASX ETF will also be space-themed, designed to “capture the future of the space economy”. It will be known as the Global X Space Tech ETF, and trade with the ticker code ‘MOON’.

And that’s all we know for now. Global X hasn’t released any further details, including its launch date, fees, underlying index, or holdings.

There is a good chance that it will look fairly similar to the BetaShares Space Industry ETF, though. As we’ve discussed here before, RCKT tracks the Solactive Space Industry Index. It charges a management fee of 0.57% per annum. Its top holdings currently include Rocket Lab Corp, AST Spacemobile Inc, Planet Labs PBC, and Viasat Inc.

A new ASX ETF for the SpaceX age

Let’s get to the elephant in the room, though. There’s little doubt that the impending initial public offering (IPO) of Elon Musk’s SpaceX is driving this interest in space investing. SpaceX, which also owns Starlink, xAI, and X (formerly Twitter), is shaping up to be one of the biggest IPOs in history and could make Musk the world’s first trillionaire. The company’s ambitious plans, vast scope, and unique leadership have excited investors all over the world. When SpaceX does eventually float, you can bet your bottom dollar that it will be a large, if not the largest, holding in both RCKT and MOON.

The Global X and Space Tech ETF and the Betashares Space Industry ETF will, in all likelihood, be the easiest way for ASX investors to buy into SpaceX without owning the US stock themselves. No doubt the provers know this, and are rolling out these ASX ETFs in anticipation. Watch this space.

The post SpaceX IPO: Strap in for launch with another ASX space ETF appeared first on The Motley Fool Australia.

More reading

• Why ASX, CBA, Endeavour, and Tuas shares are falling today
• Down more than 30% over a year, are ASX shares now looking cheap?
• Why EOS, Life360, Nufarm, and Web Travel shares are pushing higher today
• These 2 ASX tech stocks could return more than 40% Shaw and Partners says
• Could this surging ASX small cap still be hiding in plain sight?

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 positions in and has recommended AST SpaceMobile, Planet Labs PBC, and Rocket Lab. The Motley Fool Australia has recommended Rocket Lab. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shaw and Partners keeps a pretty close eye on the small to mid-cap technology sector on the ASX, and produces some interesting research about up and coming companies.

This week they’ve issued new reports on two of those companies, with each undervalued by more than 40% according to the broker.

Let’s have a look at what they’re saying.

Humm Group Ltd (ASX: HUM)

This company recently released a third-quarter update, saying it delivered a “robust” performance, “despite significant macroeconomic and geopolitical uncertainty, an evolving interest rate environment, and subdued business and consumer confidence.”

The fintech’s assets under management was 5.1% higher than for the previous corresponding period at $5.4 billion, although new loan origination fell 8.6% to $820 million.

The company said its net interest margin was 5.3%, down 20 basis points, “reflecting deliberate portfolio choices and a rapidly evolving interest rate environment”.

On the outlook, the company said it expected growth to be subdued, “with Humm Group intentionally prioritising prudent underwriting and sustainable returns over volume”.

Shaw and Partners maintained its buy rating on Humm Group shares, saying the company was undervalued, trading below its net tangible asset value and at a lower price-to-earnings multiple than the small-cap financials sector generally.

The broker has a price target of 85 cents per share, compared with 58 cents currently.

Eroad Ltd (ASX: ERD)

Fleet management technology company Eroad recently reported its full-year results, with revenue coming in just 0.4% higher at NZ$195.2 million, while normalised EBIT was NZ$2.9 million, down from NZ$9.9 million the previous year.

That result was impacted by higher operating costs, non-recurring expenses, and lower capitalisation of R&D costs, the company said.

Executive Chair John Scott said, “Although our performance remained strong in our core markets of New Zealand and Australia with year-on-year ARR growing 5% and 73%, respectively, the group results reflect the legacy issues and challenges we have been managing”.

He added:

We have taken decisive action to reset the business and position it for sustainable growth over the medium to long-term. The transformation program commenced mid-year, with a focus on five strategic priorities – Operational Excellence, Product Excellence, Customer Service, becoming AI Native, and Winning eRUC (e-road user charge). All of this is supported by a new executive management team with the clarity and energy required to execute.

Shaw and Partners has steeply discounted its price target for the company from $2.15 down to $1.10, but this is still well above the 78.5 cents the shares are changing hands for.

The post These 2 ASX tech stocks could return more than 40% Shaw and Partners says appeared first on The Motley Fool Australia.

More reading

• Why ASX, CBA, Endeavour, and Tuas shares are falling today
• Down more than 30% over a year, are ASX shares now looking cheap?
• Why EOS, Life360, Nufarm, and Web Travel shares are pushing higher today
• SpaceX IPO: Strap in for launch with another ASX space ETF
• Could this surging ASX small cap still be hiding in plain sight?

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

The Australian share market has not exactly been a one-way ticket higher lately.

Plenty of investors have been dealing with a choppy S&P/ASX 200 Index (ASX: XJO), stretched bank valuations, weaker technology sentiment, and plenty of uncertainty around interest rates, inflation, and global markets.

Yet hidden beneath the broader market noise, one ASX small cap has been quietly doing something very different.

At the time of writing, Tasmea Ltd (ASX: TEA) shares have surged more than 120% over the past 12 months, including a sharp rise of more than 20% in just the past few weeks.

That is a very different outcome to the broader market. As a rough benchmark, the iShares Core S&P/ASX 200 ETF (ASX: IOZ), which tracks the ASX 200, is up only around 2.3% over the same 12-month period, excluding dividends.

So, what is going on?

The boring business delivering exciting returns

Tasmea is not a flashy technology company. It is not riding an artificial intelligence boom. It is not promising to reinvent finance, healthcare, or mining.

Instead, it provides specialist trade services to essential Australian industries.

The company operates across maintenance, shutdowns, emergency breakdown work, brownfield upgrades, and labour solutions. Its customers include asset owners across mining and resources, oil and gas, infrastructure, defence, water, power, renewables, telecommunications, and other critical industries.

In plain English, Tasmea helps keep important physical assets running.

That might not sound exciting. However, the share market often becomes interested when a business combines practical demand, strong execution, and rising earnings.

Tasmea appears to be doing exactly that.

Earnings growth is doing the heavy lifting

One reason Tasmea shares have been charging higher is simple: the company is growing quickly.

In FY25, Tasmea reported statutory revenue growth of 37% to $547.9 million, operating earnings (statutory EBIT) growth of 60% to $74.4 million, and net profit after tax growth of 74% to $53.1 million.

Importantly, earnings per share (EPS) rose 53% to 23.2 cents.

That matters because EPS growth is one of the cleanest ways to measure whether shareholders are actually participating in a company’s growth. Revenue growth is nice. Net profit growth is very nice. EPS growth is often nicer again.

The company has also guided for further strong growth in FY26. Based on its previously stated guidance, EPS is expected to move towards around 30 cents per share, implying another significant step higher.

That is before investors fully consider the potential longer-term benefits from the WorkPac acquisition.

Why WorkPac could matter

Tasmea completed the acquisition of WorkPac Group in December 2025.

WorkPac is a workforce solutions business, and the strategic logic is fairly clear. Tasmea already operates in industries where skilled labour is critical. By adding WorkPac, the company strengthens its ability to source, mobilise, and deploy labour across its existing operating divisions.

This could help Tasmea support organic growth, improve labour certainty, and potentially unlock synergies over time.

Of course, acquisitions come with risk. Integration has to be managed carefully. The business also needs to keep winning work, maintaining margins, and avoiding the temptation to grow just for the sake of size.

However, if management executes well, WorkPac could make Tasmea a more powerful platform than the market appreciated a year ago.

The small-cap sweet spot

This is where Tasmea becomes interesting from a long-term investing perspective.

Small caps that successfully grow into mid-cap or large-cap businesses can potentially reward shareholders in two ways.

First, earnings can grow. That means the underlying business becomes more valuable over time.

Second, the market may eventually decide the business deserves a higher valuation multiple. That can happen when investors gain confidence in the quality, durability, and scale of the company’s earnings.

That combination — earnings growth plus multiple expansion — can be powerful.

Foolish takeaway

Tasmea shares have already had a huge run, so investors should not ignore the risks.

The stock is no longer undiscovered. Expectations are rising. Any slowdown in earnings growth, acquisition misstep, margin pressure, or weakness in end-market demand could lead to volatility.

However, Tasmea remains a useful reminder that strong returns do not always come from the loudest corners of the market.

Sometimes they come from underappreciated businesses doing essential work, growing earnings, and steadily building scale in the background.

The post Could this surging ASX small cap still be hiding in plain sight? appeared first on The Motley Fool Australia.

More reading

• Are these ASX shares a buy, hold or sell after rocketing to record highs last week?

Motley Fool contributor Leigh Gant has positions in Tasmea. 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

Westpac Banking Corporation (ASX: WBC) shares are sliding on Wednesday as investors weigh up another regulatory headache for the ‘big four’ bank.

At the time of writing, the Westpac share price is down 1.78% to $35.96.

It continues a softer start to the year for the banking giant. Westpac shares are now down around 7% in 2026, despite still sitting about 13% higher over the past 12 months.

The selling follows court findings over how the bank handled some customers seeking financial hardship support.

Here’s what happened.

Westpac in trouble?

According to ASIC, Westpac failed to respond to more than 200 online hardship requests within the time required by law.

Those failures occurred over nearly 6 years, from 2017 to 2023.

The requests came from customers of Westpac and its subsidiaries, St George Bank, BankSA, and Bank of Melbourne.

These customers had told the bank they were experiencing financial hardship and were struggling to meet repayments on products including home loans, credit cards, personal loans, and car loans.

ASIC said some customers were seeking help after events such as domestic abuse, natural disasters, serious illness, or job loss.

Federal Court Justice Timothy McEvoy found Westpac had not acted deliberately. However, he said the bank’s conduct was “grossly negligent” and ordered the penalty.

Why investors are selling

Westpac has been ordered to pay a $26 million penalty, but the amount itself isn’t large compared with the bank’s earnings base.

Earlier this month, the bank reported first-half statutory net profit of $3.4 billion, up 3% on the prior corresponding period.

It also declared an interim dividend of 77 cents per share, fully franked, payable on 26 June 2026.

Nonetheless, the banks are already dealing with a more difficult backdrop. Investors are watching mortgage competition, funding costs, arrears, household budgets, and possible changes to housing policy.

A court ruling tied to hardship customers adds another uncomfortable headline at a time when the sector is already getting plenty of attention.

The bigger picture

Westpac said it had apologised to affected customers and was “deeply sorry” it let them down.

The bank said it has also completed a remediation program, including fee refunds, debt waivers, and compensation.

It said it has strengthened processes and upgraded its online hardship systems.

The question for investors is whether this is now largely behind the bank, or whether it keeps Westpac in the regulatory spotlight for longer.

Westpac still has plenty behind it, including a large mortgage book, a major retail deposit base, and a fully franked dividend.

But after a 7% fall this year, today’s court findings appear to have given investors another reason to stay cautious.

The post Westpac shares sink after court calls conduct ‘grossly negligent’ appeared first on The Motley Fool Australia.

More reading

• Forget Westpac, these ASX dividend shares could be better buys
• How do ASX dividend shares compare to savings deposit rates today?
• Morgan Stanley tips 5% earnings downgrades for ASX 200 bank shares. Here’s why
• Buy, hold, sell: Catapult Sports, Tower, Guzman y Gomez shares
• Thinking about dividend yields? Here’s how much the top 10 ASX 200 shares pay

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) was down 0.3% at 8,633 points at 11:30 am AEST today.

Over the following minutes, the benchmark index jumped 0.4% to 8,668 points to be up 0.1% for the day.

This comes as ASX 200 investors mull over the potential impacts of April’s inflation data, reported by the Australian Bureau of Statistics (ABS) at, you guessed it, 11:30 am.

Here’s what you need to know.

Inflation print juices ASX 200

ASX 200 investors are favouring their buy buttons after the ABS revealed that Australia’s Consumer Price Index (CPI) rose 4.2% in the 12 months to April. That’s down from the 4.6% increase in annual inflation reported in March.

Housing was the largest factor behind the ongoing inflationary uptick, with housing costs up 6.3%. Transport costs were the second-largest driver, up 6.6% from last year. Notably, however, that was down from 8.9% in March as fuel prices have fallen from recent peak levels.

Sue-Ellen Luke, ABS head of prices statistics, noted:

The fall this month includes the halving of the fuel excise on 1 April. Automotive fuel prices are still 23.5% higher compared to February and before the impact of the Middle East conflict.

The impact of higher oil prices has also been seen in products and services with high freight and logistics costs, such as parcel delivery and building materials. This is reflected in price increases of 12.4% for postal services and 4.7% for new dwelling construction compared to 12 months ago.

Indeed, yesterday the ABS reported that fuel prices and supply availability have negatively impacted 72% of Australian businesses in recent months.

Commenting on the economic impacts of the closure of the Strait of Hormuz on Australian businesses, Tom Lay, ABS head of business statistics, said:

Businesses across all industries were impacted by rising fuel costs from global volatility and ongoing supply chain disruptions. One in six businesses experienced disruptions in their supply chain, with transport, logistics, agriculture and small businesses among those most affected.

ASX 200 investors should also keep a close eye on trimmed mean annual inflation, the RBA’s preferred gauge, which takes out certain volatile items.

Somewhat concerningly, trimmed mean inflation increased to 3.4% for the 12 months to April, up from 3.3% last month.

What this means for interest rates in Australia

The Reserve Bank of Australia (RBA) has already lifted interest rates three times in 2026 to combat resurgent inflation. The official cash rate currently stands at 4.35%, matching the highest level since December 2011.

Amid rising interest rates and sticky inflation, the ASX 200 is down 0.9% year to date.

As for what investors might expect from interest rates next, Josh Gilbert, lead analyst for APAC at eToro, noted that the focal point for the RBA will be the trimmed mean inflation print.

Gilbert said:

We’ve seen headline inflation thrown around over the last few months by energy prices and the fuel excise changes, but the RBA cares about what’s underneath.

Ultimately, that trimmed inflation number has been stubbornly above the top of the 2% to 3% target band for longer than anyone is comfortable with, and until that breaks decisively lower, the RBA can’t claim the job is done.

The RBA will announce its next interest rate decision on 16 June.

Stay tuned!

The post ASX 200 jumps as April’s inflation print eases RBA interest rate pressures appeared first on The Motley Fool Australia.

More reading

• Endeavour Group unveils strategy update and $300m cost savings drive
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• ASX 200 sinks as oil shock puts investors back on edge
• $10,000 invested in Fortescue shares 12 months ago is now worth…

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

ASX mining shares have experienced a strong uptick so far in 2026, driven by surging commodity prices and soaring investor sentiment. Lithium has experienced a resurgence, while copper is outperforming. Even iron ore has remained surprisingly resilient.

Find out the latest update from commodity players Liontown Ltd (ASX: LTR), South32 Ltd (ASX: S32) and Mineral Resources Ltd (ASX: MIN) shares, and what brokers expect next.

Buy South32 shares

South32 shares are storming higher in Wednesday morning trade. At the time of writing, the commodities miner’s shares are up around 5% to $4.85 a piece. 

The latest increase means the ASX mining shares have now jumped over 20% following the company’s March 2026 quarterly update last week.

The shares are now up 37% year to date and are an impressive 57% higher than a year ago.

The latest rally comes off the back of the miners’ reported US$121 million increase in net cash for the quarter. Meanwhile, its Brazil Alumina site delivered record year-to-date production, up 5%.

As a diversified global miner, with exposure to several commodities including aluminium, copper, zinc, and manganese, South32 has benefited from investor demand for diversified exposure to commodities related to the energy transition. South32 is also attracting attention because it is less dependent on iron ore than other major miners. 

Market Index data shows brokers rate the ASX mining shares as a strong buy. Although after the latest strong rally, the current average target price of $4.89 implies a potential 1% upside at the time of writing.

Buy Mineral Resources shares

Mineral Resources shares are also climbing higher today. At the time of writing, the shares are up around 1% to $71.95 each. Mineral Resources shares have also flown 12% higher over the past week.

The shares are now 30% higher year to date and up a huge 202% over the past 12 months.

The ASX mining stock has a major exposure to lithium and has ridden the wave of soaring lithium carbonate prices through early 2026. Prices are now trading around the highest level since 2023, thanks to renewed and growing long-term demand for lithium batteries.

Last Tuesday, the miner confirmed it will restart operations at its 100%-owned Bald Hill lithium mine. The company said the decision follows a “significant and sustained recovery” in lithium prices.

The restart is expected to move quickly, too, with activity due to ramp up in late May before crushing and mining operations start in June. The lithium miner expects restart costs in the fourth quarter of FY26, totalling $20 million.

Brokers rate the ASX mining shares as a strong buy and tip a potential 2.8% upside to an average $74.60 target price at the time of writing.

Hold Liontown shares

Liontown shares have tumbled into the red on Wednesday morning. At the time of writing, the shares are down 0.2% to $2.32 a piece.

Despite the tumble, the lithium miner’s shares are still up 43% year to date and a massive 263% higher than 12 months ago.

Liontown has also ridden the lithium rebound as investors look toward the company’s production growth potential. Investors have leaned into Liontown shares on the pretence that it has a long-term ability to benefit from strong lithium pricing and expanding global EV demand.

The miner’s development pipeline and exposure to future supply chains have also attracted investor attention.

But, Liontown is practically a pure-play lithium miner and its assets are overwhelmingly lithium-focused. This means it is sensitive to and heavily dependent on lithium price trajectories. If the price rally starts to reverse, the business could be at risk.

After the latest rally, analyst sentiment for the ASX mining shares has softened. At the time of writing, brokers rate the stock as a hold, with an average target price of $1.99. That implies a 15% downside from here.

The post Liontown, South32 and Mineral Resources: Brokers rate 2 ASX mining shares as a buy and 1 to hold appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Flight Centre, Goodman and Mineral Resources shares are creating a buzz on Tuesday
• Mineral Resources shares hit two-year high on big lithium news
• Are these ASX shares a buy, hold or sell after hitting fresh 52-week highs?
• Here are the top 10 ASX 200 shares today

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.

If you are looking for big potential returns, then it could be worth checking out the three ASX shares in this article.

That’s because the team at Morgans believes they could rise 9% to 27%. Here’s what the broker is saying:

Aroa Biosurgery Ltd (ASX: ARX)

This medical device company delivered an FY 2026 result that was in line with expectations.

In response, the broker has retained its buy rating on Aroa Biosurgery’s shares with an improved price target of 79 cents. Based on its current share price of 62 cents, this implies potential upside of 27%. It said:

ARX posted its FY26 result which was in line with the recently released trading update and our forecast. Higher sales and marketing spend in FY27 results in a flat EBITDA, however the benefits of this investment will be seen in FY28/29 where a significant step up is expected. As a result of changes to forecasts and the roll forward of our model, our target price increases to A$0.79 (from $0.77). We maintain a BUY recommendation.

Goodman Group (ASX: GMG)

Another ASX share that Morgans is positive on is industrial property company Goodman.

In response to its quarterly update, the broker has retained its buy rating with a $36.00 price target. Based on the current Goodman share price of $29.86, this implies potential upside of 20% for investors. Morgans commented:

Operationally the update was mixed, with pre-committed share, production rate and Yield On Cost (YOC) all relatively flat hoh. The structurally important note was management’s view that industry DC capex requirements likely exceed global capital market funding capacity, a backdrop that favours those with secured power, sites and locked-in capital partners. FY26 OEPSg guided to ‘at least 9%’ (prior 9%; MorgansF 9.2%; Consensus 9.8%), marginally up.

We partially reverse the discretionary discount applied in our March sector update (-10% to -5%) reflecting growing conviction in the capital-scarcity moat and peer pre-commit validation, noting that GMG’s own leading indicators have not yet inflected. BUY reiterated; TP to A$36.00/sh.

Infratil Ltd (ASX: IFT)

A third ASX share that Morgans has been looking at is infrastructure investment company Infratil.

The broker was pleased with its FY 2026 results, noting that earnings grew quicker than expected.

As a result, the broker has retained its accumulate rating with an increased price target of $13.80. Based on its current share price, this implies potential upside of approximately 9%.

Commenting on the company, Morgans said:

IFT’s FY26 result was strong with net proportionate EBITDA from continuing operations lifting ~11% YoY and coming in 4% ahead of our forecast. Proportionate capex was above our forecast. It lifted 17% YoY and is set to lift ~57% in FY27 as management recycles capital to reinvest in IFT’s key growth assets. Portfolio Asset Value lifted 13% YoY to NZ$20.6bn, in line with our expectations.

IFT declared a 13.65c final dividend, in line with earlier guidance. We retain our ACCUMULATE recommendation and lift our Target Price ~22% to $13.80, following CDC’s largest ever contract win.

The post Morgans says these ASX shares can rise 9% to 27% appeared first on The Motley Fool Australia.

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

A new Vanguard survey has highlighted how younger Australians are getting more involved in investing.

According to the survey, 45% of Gen Z and Millennials say they invest in shares, exchange-traded funds (ETFs), or other financial products.

I think that is encouraging. The earlier someone starts investing, the more time they give compounding to do its work.

But for new and prospective Gen Z investors, I think the goal should be simplicity, diversification, and long-term growth. There is no need to build a complicated portfolio from day one.

Three Vanguard ASX ETFs I think could be strong options are named in this article.

Vanguard Global Technology Index ETF (ASX: VTEK)

I think the Vanguard Global Technology Index ETF could suit Gen Z investors.

I like this fund because technology is not just a sector anymore. It is becoming part of almost everything.

Work, shopping, entertainment, advertising, healthcare, finance, education, logistics, and communication are all being reshaped by digital tools. Artificial intelligence (AI) is accelerating that shift, but it is not the only driver.

The VTEK ETF gives investors exposure to a portfolio of global technology companies. This can include businesses involved in software, semiconductors, cloud computing, devices, digital platforms, and other parts of the technology ecosystem.

Importantly, this fund allows investors to benefit from the broader technology theme without needing to guess which individual tech giant will perform best.

It will inevitably be volatile at times. Technology shares can fall hard when valuations reset or interest rates rise. But for investors with decades ahead of them, I think long-term exposure to global technology makes sense.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE)

Another ASX ETF I like for Gen Z investors is the Vanguard FTSE Asia Ex-Japan Shares Index ETF.

Gen Z investors are likely to live through a world where Asia becomes even more important economically. Rising middle-class wealth, digital payments, e-commerce, manufacturing, technology platforms, and changing consumption patterns could all support long-term growth across the region.

The VAE ETF gives investors exposure to Asian share markets outside Japan. This can add a growth angle that is not easily found on the ASX.

It also helps avoid building a portfolio that is too dependent on Australia and the United States.

There are risks. Asian markets can be more volatile, and some countries have higher political, regulatory, and currency risks. This is not the ETF I would use as an entire portfolio. But as part of a diversified long-term approach, I think it could be useful.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

The popular Vanguard MSCI Index International Shares ETF is another I would recommend to Gen Z investors.

It provides investors access to a broad portfolio of developed-market shares outside Australia. That includes companies from the United States, Europe, Japan, Canada, and other major markets.

I like this because many Australian investors start with local shares and never properly diversify overseas.

That can leave a portfolio heavily exposed to banks, miners, supermarkets, telcos, and local property. Those can be good sectors, but they do not represent the full global economy.

The VGS ETF helps solve that problem in one trade. It gives investors exposure to over a thousand global companies across many industries. For a young investor, that kind of broad base can be valuable because it reduces the pressure to get every individual stock pick right.

Foolish takeaway

Gen Z investors have one huge advantage that older investors cannot buy back: time.

That does not mean they need to chase every trend or take unnecessary risks. In fact, I think the smarter approach is to build a portfolio that can keep working quietly in the background for years.

ETFs like these can help with that. They provide access to global businesses, long-term growth themes, and markets beyond Australia without requiring constant tinkering.

The post 3 top ASX ETFs for Gen Z investors to buy appeared first on The Motley Fool Australia.

More reading

• How to become a millionaire on a $70,000 salary
• An easy 2 ASX ETF portfolio to fund retirement 
• If I could buy only one ASX ETF for the next 10 years, this could be it
• VGS vs IVV: Which ASX ETF is better?
• Why I’d buy these ASX ETFs if I were a beginner

Motley Fool contributor Grace Alvino 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 Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.