Category: Stock Market

DroneShield Ltd (ASX: DRO) shares are spiking higher again in Wednesday lunchtime trade. 

The uptick isn’t too surprising, given that the counter-drone technology company is one of many ASX defence stocks in the spotlight right now. 

Tensions in the Middle East have seen heavy government defence spending as many nations around the world realise that global volatility could well continue, or even escalate further.

At the time of writing, DroneShield shares are up 0.7% to $3.64 a piece. The shares are now up nearly 10% year to date and are 172% higher than this time 12 months ago.

While DroneShield presents a great success story, it hasn’t been a smooth ride. After soaring to an all-time high of $6.60 in October last year, DroneShield shares have swung anywhere between $1.16 to $4.74 a piece. 

Analysts still tip more upside, around 22%, to an average target price of $4.40 at the time of writing.

The upside is impressive, but there are a few other ASX defence stocks I’d rather buy instead.

Electro Optic Systems Holdings Ltd (ASX: EOS)

EOS shares are up 1.13% at the time of writing, to $9.81 each. It’s a 1.5% decline for the year-to-date, but an enormous 691% higher than a year ago.

The Aussie defence company develops and produces advanced electro-optic technologies, so it has benefited from surging demand for exposure to the defence sector in 2026. 

The company has won several major contracts over the past few months, helping build investor confidence, keeping the share price hovering around an all-time high. 

Analysts are very bullish on the EOS share price, expecting further upside. All four analysts on TradingView data have a strong buy consensus. 

The maximum target price is $16, which implies a potential 63% upside at the time of writing. Even the average $12.79 target price represents a potential upside of 31% from here.

Titomic Ltd (ASX: TTT)

I also like the look of the lesser-known defence stock, Titomic. The company is a high-tech manufacturing company that uses advanced technology to print 3D metal parts on an industrial scale. 

These are mainly used in defence, aerospace, mining, and oil & gas to produce things like satellite structures, hypersonic shielding, drone parts, and large structural components.

The company posted its latest quarterly update in January, revealing global expansion plans, new defence contracts, and strong cash reserves. 

Titomic also recently announced plans to relocate its corporate headquarters to the US as part of its strategy to grow its defence and aerospace business. 

It looks like there is plenty of growth ahead for the ASX defence stock. At the time of writing, Titomic shares are down 3.45% to 28 cents per share. But the shares are still up 14% for the year-to-date and 19% over the year.

Analysts tip a 75% upside to 50 cents per share over the next 12 months.

Austal Ltd (ASX: ASB)

Austal is an Australian-based global shipbuilding company. The company designs and constructs naval vessels, defence surface warfare combatants, high-speed support vessels, law enforcement patrol boats, offshore vessels, and even passenger and vehicle ferries. 

The company has secured some big contract wins recently, including a $4 billion contract with the Australian Government in February. 

Austal also posted its first-half FY26 results in the same month, revealing a 34.4% year-on-year increase in revenue. Its EBIT also climbed 41.3%, and net profit climbed 21.4%.

Analysts are bullish that the shipbuilding company can keep growing this year. TradingView data shows that three out of six analysts have a strong buy rating on the defence stock. Another two have a hold rating. 

The average target price of $6.69 implies a potential 55% upside at the time of writing. Although some think the shares could jump up to 79% higher to $7.71 each.

The post Forget DroneShield shares, I’d buy these ASX defence stocks instead appeared first on The Motley Fool Australia.

More reading

• The ASX’s hottest shares just stumbled — warning sign?
• Why I’d buy and hold DroneShield shares for 10 years
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to buy next week
• Buy, hold, sell: Cochlear, CSL, and DroneShield shares

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

The S&P/ASX 200 Index (ASX: XJO) is down another 0.5% in Wednesday morning trade, continuing a run of six consecutive days of losses. Concerns about new inflation data and a potential cash rate hike is weighing heavily on shares. Rising oil prices and continued conflict in the Middle East is also dampening investor sentiment.

But when times are tense and share prices are solemn, it does create a great opportunity for investors to snap up ASX 200 shares for cheap.

Here are three ASX 200 shares on my radar right now, and it looks like they’re all trading well below fair value. 

Xero Ltd (ASX: XRO)

Xero shares are up 0.99% on Wednesday, to $80.23 a piece, after this morning giving back some of the gains from a rebound earlier this month. 

The ASX 200 shares are now down a staggering 50% over the past 12 months and have lost 60% of their value since peaking at an all-time high in June last year. 

The cloud-based accounting software company was caught up in the sector-wide tech sell-off and AI-related nervousness late last year (and into early 2026). 

This, combined with investor concerns about the company’s Melio acquisition and its potentially overvalued share price, led many to sell up. 

But Xero’s business model, which is often referred to as “sticky”, has recurring revenue, global exposure, and good profitability. 

It’s also actively expanding its presence and its product suite. 

Market Index data shows brokers have a strong buy rating on the ASX 200 company’s shares, and tip a 89% upside to $149.77, at the time of writing.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre shares also tumbled this morning, down 1.52% to $10.34 per share. The travel stock is now down 31% year-to-date and 19% from this time last year.

Slower-than-expected profit growth, weak travel demand and geopolitical tensions have put pressure on the travel company’s stock. 

Inflation concerns and tighter cost-of-living have also seen many consumers pull back on their discretionary spending on things like travel.

The company posted its FY26 half-year report in February, blowing expectations out of the water. Flight Centre’s profit before tax came in 5% ahead of market expectations, and many brokers now consider the stock as trading well below fair value. 

As travel disruptions and fuel supply concerns ease, travel stocks like Flight Centre could rebound quickly.

Brokers rate the ASX 200 travel company’s shares as a strong buy and tip a 66% upside to $17.18 a piece, at the time of writing.

James Hardie Industries PLC (ASX: JHX)

James Hardie shares are also red on Wednesday, down 0.67% to $30.5 each. The shares are now almost 17% lower than this time last year.

James Hardie shares have suffered an incredibly volatile run over the past 12 months. 

The fibre cement producer and marketer’s shares have crashed on three separate occasions over the past year, following an acquisition announcement, a disappointing Q1 FY26 result and a general drop in investor sentiment. 

But the company has a dominant presence in the US. Its scale gives it pricing power and a strong competitive advantage that peers cannot match. 

The business continues to improve, too, with some solid growth expected ahead. In its Qs FY26 results, James Hardie posted a 30% increase in net sales and a 26% hike in EBITDA. It also raised its FY26 guidance to reflect the stronger result.

Brokers rate the ASX 200 shares as a strong buy and tip a 38% upside to $42.24, at the time of writing.

The post 3 super cheap ASX 200 shares I’d buy right now appeared first on The Motley Fool Australia.

More reading

• Why I’d invest $4,000 into these ASX 200 shares
• Could buying Xero shares at $80 make me rich?
• These are the 10 most shorted ASX shares
• Experts are bullish about the potential of this ASX 200 share!
• 3 ASX 200 stocks storming higher in this week’s sinking market

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Flight Centre Travel Group. 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 having another subdued session on Wednesday. In afternoon trade, the benchmark index is down 0.2% to 8,690.6 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

29Metals Ltd (ASX: 29M)

The 29Metals share price is up 8% to 23.7 cents. This follows the release of the copper miner’s quarterly update. 29Metals revealed that copper production was 6.4kt with C1 costs of US$4.25 per pound. While this compares unfavourably to the previous quarter, it appears to have been better than feared. It also stated that: “Considering various factors, it is expected that existing liquidity will be sufficient to fully fund the revised plan for 2026 and maintain growth investments at Gossan Valley and exploration.”

Aurelia Metals Ltd (ASX: AMI)

The Aurelia Metals share price is up 9% to 30.5 cents. This may have been driven by a broker note out of Ord Minnett this morning. According to the note, the broker has retained its buy rating on the gold miner’s shares with an improved price target of 50 cents. In addition, the team at Macquarie has retained its outperform rating and 40 cents price target on Aurelia Metals shares.

Codan Ltd (ASX: CDA)

The Codan share price is up 16% to $42.23. The catalyst for this has been the release of a trading update from the technology company this morning. Codan revealed that the second half has been stronger than expected. As a result, it now expects FY 2026 EBIT to hit $235 million and net profit to reach $170 million.  This will be an increase of over 60% from last year. The company said: “In DTC, strong demand from defence customers for unmanned systems, supported by ongoing geopolitical tensions, continues to drive growth in our software-defined radios (SDRs). As a result, the Communications business is expected to achieve revenue growth at the top end of the 15% to 20% range for the full year FY26.”

oOh!Media Ltd (ASX: OML)

The oOh!Media share price is up 40% to $1.19. This follows news that the media company has received a takeover offer from Pacific Equity Partners (PEP). The company advised that it received an unsolicited, non-binding indicative offer from PEP to acquire 100% of oOh!Media at $1.40 per share via a scheme of arrangement. In response, it said: “The Board of oOh!, together with its advisers, is considering and evaluating the Proposal and will update shareholders in due course. There is no certainty that the Proposal will result in a binding offer or that any transaction will eventuate.”

The post Why 29Metals, Aurelia Metals, Codan, and oOhMedia shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• oOh!Media shares rocket 40% higher on takeover offer
• Up 13% today. Here’s why this $6.6 billion ASX stock is on the move again
• 2 brokers rate this ASX gold stock a buy, with 50% upside forecast
• Codan FY26 earnings surge more than 60% on strong communications segment
• This ASX 200 stock has jumped 149% in a year, and brokers tip more upside to come

Shares in recent ASX IPO Sea Forest Ltd (ASX: SEA) have edged 3% higher today after the company reported a sharp lift in revenue, highlighting early signs of commercial traction for its seaweed-based livestock feed business.

The company, which counts surfing champion Mick Fanning among its early backers, listed on the ASX in November 2025 with a bold mission: to reduce methane emissions from cattle using a proprietary seaweed feed additive.

Now, investors are starting to see the first signs of that story playing out.

Revenue growth starts to accelerate

Sea Forest reported revenue of $1.1 million for the March quarter, up 92% on the previous quarter.

Whilst the absolute number is still small, the growth rate stands out and is exactly what investors are hoping to see as the business starts to scale commercial volumes of its SeaFeed product across its customer base.

Importantly, this growth is being driven by contracted supplementation volumes, meaning customers are actively adopting the product rather than just trialling it.

The company also reported more than 130,000 head of cattle under agreement, a figure that has continued to grow following new supply deals signed after the quarter, giving some visibility into future demand.

A bigger opportunity beyond cattle

During the quarter, the company partnered with global fashion brand Theory to launch a low-carbon wool collection, using its methane-reducing feed in sheep.

While wool is expected to be a smaller revenue contributor initially, it highlights that Sea Forest’s technology has applications beyond just cattle.

This matters because the long-term investment case for early-stage investors is tied to the size of the total addressable market, and bigger is usually better.

Still early days

Despite the strong growth, Sea Forest remains in the early stages of its commercial journey.

The company reported operating cash outflows for the quarter and ended with around $8.4 million in cash, although it also holds additional liquidity in short-term investments.

That’s typical for a business in scale-up mode, but it does mean execution will be critical to ensure the company has a strong foundation for future capital raises.

Investors will be watching whether the company can continue new converting agreements into sustained revenue growth while managing its cash position.

Foolish bottom line

Sea Forest’s latest update shows early signs of traction, with strong revenue growth and increasing customer adoption. But as a recent IPO, the story is still unfolding, and the key test will be whether this early momentum can translate into scalable, profitable growth over time.

The post This recent ASX IPO stock just reported 92% revenue growth appeared first on The Motley Fool Australia.

More reading

• $10,000 invested in the Vanguard Australian Shares High Yield (VHY) ETF a year ago is now worth?
• Should you buy CBA shares for their ‘consistent profitability’?
• Which junior ASX AI company has rocketed almost 40% on a transformational deal?
• 2 top ASX shares to buy and hold for the next decade
• This $7 billion stock just hit fresh highs. Here’s what’s driving the move

Motley Fool contributor Kevin Gandiya has no positions 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.

Ramelius Resources Ltd (ASX: RMS), Liontown Resources Ltd (ASX: LTR), and Woodside Energy Group Ltd (ASX: WDS) shares are catching heightened investor interest on Wednesday.

Two of the large-cap stocks are outperforming the 0.2% losses posted by the S&P/ASX 200 Index (ASX: XJO) in early afternoon trade, while one is trailing those losses.

Here’s what’s happening.

Woodside shares gain on revenue boost

Woodside shares are marching higher today, up 2% at $33.04 apiece.

Woodside is grabbing financial headlines following the release of the company’s March quarter update (Q1 2026).

Investors are bidding up the ASX 200 energy stock, with Woodside reporting a 7% quarter-on-quarter increase in operating revenue to US$3.26 billion.

The revenue boost came despite an 8% quarterly decline in production to 45.2 million barrels of oil equivalent (MMboe). Production was impacted by tropical cyclones in Western Australia. But the production slide was countered by an 11% quarter-on-quarter increase in the average realised price, which climbed to US$63/boe.

Woodside shares should also get longer-term support from its growth projects. Woodside CEO Liz Westcott noted, “We continued disciplined delivery of major cash-generative growth projects.”

At the end of the quarter, Woodside’s Scarborough Energy Project was 96% complete, while the Trion oil project was 56% complete.

Woodside reported liquidity of around US$8.3 billion at 31 March.

Ramelius Resource shares slip on update

Unlike Woodside shares today, the Ramelius share price is down 0.3% at $3.66 after the ASX 200 gold stock released its own quarterly update.

That dip is likely more closely aligned with a modest retrace in the gold price overnight than the miner’s performance.

Over the quarter, Ramelius produced 38,093 ounces of gold. The miner reported an all-in sustaining cost (AISC) of $2,211 per ounce to produce the yellow metal.

Over the first nine months of the financial year, Ramelius has produced 138,716 ounces of gold at an AISC of $1,987 per ounce.

Management reaffirmed the company’s full-year FY 2026 production guidance of 185,000 ounces to 205,000 ounces, adding that Ramelius is on track to achieve the midpoint of this range.

Which brings us to…

Liontown shares lift on lithium operation expansion progress

Joining Ramelius and Woodside in making waves today is Liontown.

Shares in the ASX 200 lithium stock are up 1.5% at the time of writing, trading for $2.41 each.

This outperformance follows a promising update on the company’s planned expansion of its Kathleen Valley Lithium Operation, located in Western Australia.

Liontown said it has committed $12 million to long-lead items with up to $77 million likely to be spent before the final investment decision (FID) in the first quarter of FY 2027.

Liontown CEO Tony Ottaviano said:

Expansion at Kathleen Valley is currently the most value-accretive growth available to Liontown, and these commitments lay the foundation for that growth and demonstrate our confidence in the market and the operation.

The post Why Ramelius, Liontown and Woodside shares are making waves on Wednesday appeared first on The Motley Fool Australia.

More reading

• Why is this ASX gold stock slipping despite new gold discoveries?
• Up 40% in 2026: Why are Woodside shares charging higher today?
• Woodside Q1 2026 earnings: Revenue grows, Scarborough and Trion progress
• Liontown shares: Expansion works begin at Kathleen Valley
• 5 things to watch on the ASX 200 on Wednesday

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.

Tivan Ltd (ASX: TVN) is back on the boards on Wednesday, and the market has responded straight away.

After coming out of a trading halt, the critical minerals developer’s shares are up 8.20% to 33 cents.

That adds to what has already been a strong run this year, with the stock now up around 20% in 2026.

So, what did the company release?

What did the study show for Molyhil?

The update centres on a scoping study for Tivan’s Molyhil tungsten project in the Northern Territory.

This is the first proper look at how the project could stack up economically and how it might be developed.

According to the study, Molyhil is shaping up as a relatively low capital project with a long mine life.

The plan is to combine an open pit with a smaller underground component, targeting tungsten and molybdenum.

Tivan is modelling production over multiple decades, backed by an existing mineral resource.

The study also points to a staged approach, starting with open-pit mining before expanding further over time.

Processing and costs come into focus

A key part of the update is how the ore would be processed.

The flowsheet is built around gravity separation, which is commonly used for scheelite, the main tungsten mineral at Molyhil.

From there, extra processing steps are used to lift recovery rates and improve concentrate quality.

The study outlines a relatively simple processing setup, which usually helps keep costs under control.

Tivan also said that historical metallurgical work supports the proposed flowsheet design.

On the cost side, the project is being positioned as low-cost to run, supported by relatively high grades and straightforward processing.

While logistics and infrastructure are still factors given the remote location, these have been accounted for in the study.

Why this project is getting attention

Tungsten has been getting more attention lately, mainly because supply is so concentrated in one part of the world.

China heavily dominates global production, which has pushed governments around the world to look elsewhere.

That is where projects like Molyhil start to come into the conversation.

It sits in a stable jurisdiction and is already moving through early development work.

Tivan also has a broader pipeline across northern Australia, along with plans around partnerships and downstream processing.

Those pieces are still developing, but they add another angle to how the market is starting to view the company.

However, there is still a lot to prove from here, such as obtaining finance and moving into construction.

The post Guess which ASX stock just came out of a trading halt and jumped 8% today appeared first on The Motley Fool Australia.

More reading

• Why Amaero, Mesoblast, Telix, and Tivan shares are charging higher today
• This ASX gold company is up more than 4% on promising early exploration results

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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. At the time of writing, the benchmark index is down 0.3% to 8,686.5 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling:

Catalyst Metals Ltd (ASX: CYL)

The Catalyst Metals share price is down 5.5% to $5.71. This follows the release of the gold miner’s quarterly update. Catalyst reported gold production of 26,127 ounces with an all-in sustaining cost (AISC) of A$2,901 per ounce. Looking ahead, while the gold miner has reaffirmed its production guidance of 100,000 ounces to 110,000 ounces, it has lifted its cost guidance. It now expects its FY 2026 AISC to come in at A$2,750 per ounce to A$2,950 per ounce. This compares to its previous guidance range of A$2,200 per ounce to A$2,650 per ounce. This reflects processing plant downtime, lower material movements, and broader inflationary pressures such as rising diesel costs.

G8 Education Ltd (ASX: GEM)

The G8 Education share price is down 30% to 16.7 cents. Investors have been selling this childcare operator’s shares following the release of a trading update. Management advised that occupancy across the sector is lower compared to 2024 and 2025. This is due to families experiencing sustained affordability pressures, falling birth rates, increased long-day care supply, and confidence being impacted by serious child safety incidents. At the same time, operators are dealing with increased costs due to inflationary pressures, persistent workforce challenges, changing regulation and compliance requirements, and a more complex operating environment. Current occupancy stands at 56.4%, which is down 7% versus the prior corresponding period.

Meteoric Resources NL (ASX: MEI)

The Meteoric Resources share price is down 6.5% to 18.7 cents. This morning, the rare earths developer announced the completion of a $40 million placement to institutional and sophisticated investors. Meteoric Resources raised the funds through the issue of 235 million shares at 17 cents per new share. The placement will fund the advancement and pre-development activities for the 100%-owned Caldeira Rare Earth Iconic Absorption Clay Project towards a final investment decision.

Westgold Resources Ltd (ASX: WGX)

The Westgold Resources share price is down 3% to $5.92. This follows the release of the gold miner’s quarterly update. Westgold reported production of 93,145 ounces of gold, which was down 16.4% quarter-on-quarter from 111,418 ounces. And while it has reaffirmed its production guidance, it expects costs to be at the high-end of its guidance range.

The post Why Catalyst Metals, G8 Education, Meteoric Resources, and Westgold shares are falling today appeared first on The Motley Fool Australia.

More reading

• 4 ASX 200 stocks rated a strong buy with an upside over 50%
• Why is this ASX 300 share crashing 31% today?
• Why is this ASX 100 gold stock under pressure today?
• Why are Catalyst Metals shares sinking today?
• Westgold Resources posts $285M quarterly cash build

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.

ASX gold stock Capricorn Metals Ltd (ASX: CMM) is pushing higher on Wednesday, up 2.5% to $11.78 in afternoon trade.

The gains follow a strong March quarter update released before market open, where the company reported record operating cash flow of $143.1 million and unveiled its first-ever dividend — a fully-franked interim payout of 5 cents per share.

Let’s take a closer look.

Shareholders are getting a slice

The $5 billion ASX gold stock didn’t just deliver solid numbers; it hit a new milestone, announcing the first payout to shareholders.

The maiden dividend totals $22.8 million and signals growing confidence from the board. Management says the payout reflects a strong balance sheet and the company’s ability to fund growth internally, even while continuing to invest in expansion and exploration.

That’s often a key turning point for miners, shifting from pure growth mode to rewarding shareholders while still expanding.

Production steady, guidance intact

On the operational front, Capricorn kept things consistent.

Gold production for Q3 FY26 came in at 30,358 ounces, broadly in line with the previous quarter. Year to date, the company has produced 93,152 ounces at an all-in sustaining cost (AISC) of $1,623 per ounce.

Importantly, management reaffirmed that it remains on track to hit the upper end of its FY26 guidance. Production will be between 115,000 and 125,000 ounces, with costs expected in the range of $1,530 to $1,630 per ounce.

That combination of stable output and controlled costs is helping underpin strong cash generation.

Growth projects gaining momentum

Capricorn is also making steady progress on its next phase of growth.

Development of the Karlawinda Expansion Project (KEP) is advancing well, with key infrastructure largely complete. Commissioning is targeted for the first quarter of FY27. Once up and running, the expanded plant is expected to lift sustainable production to around 150,000 ounces per year. That’s a meaningful step up from current levels.

At the same time, work continues at the Mt Gibson Gold Project (MGGP), where environmental approvals and planning are moving forward alongside an active exploration program. Drilling at both MGGP and Karlawinda has delivered encouraging high-grade results. That’s strengthening the case for long-term underground mining opportunities.

What’s next for the ASX gold stock?

Capricorn appears focused on maintaining momentum across operations, development, and exploration.

With the KEP on track and resource growth continuing across its portfolio, the company is positioning itself for a larger production profile in FY27 and beyond. More detailed guidance is expected once expansion works are complete.

And investors have already been rewarded. Over the past 12 months, the ASX gold stock has risen around 26%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has gained about 8%.

The post Why is this ASX gold stock charging higher on dividend news? appeared first on The Motley Fool Australia.

More reading

• Capricorn Metals reports record cash flow and first dividend in March 2026 quarter
• Which ASX 200 stock is falling despite big news
• Capricorn Metals reports Mt Gibson gold results
• 5 things to watch on the ASX 200 on Thursday
• 2 ASX 200 gold stocks jumping higher on major updates today

Motley Fool contributor Marc Van Dinther 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.

Shares in Mayne Pharma Group Ltd (ASX: MYX) have climbed around 8% at the time of writing following the release of the company’s third-quarter update.

The move extends a sharp rebound that has seen Mayne Pharma’s share price rise 32% since hitting a five-year low in March this year.

That share price rebound has put the company back on investors’ radar and raises a key question: Is this just a dead cat bounce, or the start of something more durable?

Momentum is starting to build

The latest update points to early signs of improving momentum across the business.

A major highlight was the launch of DistributeRx, Mayne Pharma’s new prescription distribution platform. Early results have been encouraging, with prescription volumes significantly exceeding internal expectations and continuing to build as new prescribers come on board.

This is strategically important. DistributeRx represents a shift in how the company engages with the market, with the company moving beyond individual products to a broader ecosystem approach. If it scales as planned, it could become a meaningful growth driver.

At the same time, the company’s women’s health portfolio continues to perform well.

Prescriptions for BIJUVA® rose strongly, while demand for NEXTSTELLIS® also increased. These products sit in attractive, growing markets and are central to Mayne Pharma’s strategy of focusing on higher-value segments.

Financials still catching up

While operational momentum is improving, the financials are still in transition.

Revenue growth (+1%) was broadly flat for the quarter, but gross margins improved, reflecting better pricing discipline and product mix. Underlying EBITDA also moved closer to breakeven, although the business remains loss-making.

One area that stood out was cash flow.

The company generated strong operating cash flow during the quarter, boosting its cash position and providing greater flexibility to reinvest in growth initiatives. That’s an important foundation, particularly for a business still working towards consistent profitability.

Is this the bottom?

Mayne Pharma shares had been under significant pressure, falling to around $2.20 in March 2026, their lowest level in five years. The recent 32% rally from that low point suggests sentiment may be starting to shift.

But it’s too early to call a full turnaround.

For that to happen, investors will want to see continued execution (particularly with sustained sales growth of DistributeRx) alongside sustained growth in key product segments and a clearer path to profitability.

Foolish bottom line

Mayne Pharma’s latest update suggests the business is moving in the right direction, and the share price is starting to respond. But after a long period of underperformance, investors will be looking for consistent delivery before concluding that the bottom is truly in.

The post Mayne Pharma stock jumps 8% on strong Q3 update. Has it finally bottomed? appeared first on The Motley Fool Australia.

More reading

• Where is the value amongst ASX healthcare shares?
• What’s the impact of US tariffs on Aussie drugmakers CSL and Mayne Pharma?

Motley Fool contributor Kevin Gandiya has no positions 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.

It is not often you see a high-quality healthcare share like Cochlear Ltd (ASX: COH) fall this far.

The shares are down around 65% year to date in 2026, with most of that decline happening this month following a trading update.

There is no way to sugar-coat it. The update was weak, guidance was cut, and sentiment has clearly turned negative.

But when I step back from the short-term noise, I think this could be one of those rare moments where a great business becomes available at a much more reasonable price.

What actually went wrong?

The February result already showed things were slowing.

Revenue only grew 1% and underlying net profit fell 9% to $195 million, reflecting a slower-than-expected rollout of its new Nucleus Nexa system and some pressure on margins.

That alone was not ideal, but the bigger issue came with the April trading update.

Management flagged softer-than-expected demand in developed markets, hospital capacity constraints, weaker referral activity, and growing uncertainty linked to the Middle East conflict.

As a result, FY26 earnings guidance was cut significantly to $290 million to $330 million (from $435 million to $460 million).

That is a big downgrade, and it explains why the share price reacted so sharply.

This is a setback, not a broken business

Even so, I do not think the long-term story has changed.

Cochlear is still the global leader in implantable hearing solutions. It has decades of R&D behind it and continues to invest heavily in new products, with around 13% of revenue going into R&D.

Importantly, demand for its products is not cyclical in the traditional sense. There is a large and growing pool of people with hearing loss, particularly in the adult and ageing population.

Management itself continues to point to a “significant, unmet and addressable clinical need” that underpins long-term growth.

What we are seeing now looks more like a timing issue.

Surgeries are being delayed. Referrals have slowed. Some patients are treating procedures as discretionary in the short term.

None of that suggests demand has disappeared. It suggests it has been pushed out.

The valuation looks very different now

Before looking at valuation, I think it is important to acknowledge what has changed.

Cochlear’s earnings have gone backwards. Earnings per share were $5.98 in FY25, and consensus estimates now point to $4.86 per share in FY26. That is a meaningful decline, and it helps explain why the share price has fallen so sharply.

The market is not overreacting to nothing. It is responding to a real step back in earnings.

But this is where things get interesting. At around $91.00, Cochlear is now trading on less than 19 times FY26 earnings. For a business of this quality, that is not a level we typically see.

Looking further out, consensus forecasts suggest earnings could recover to $5.28 in FY27 and $5.88 in FY28.

So while the near-term picture is weak, the market is already pricing in a lot of that softness.

For me, the key question is whether FY26 represents a temporary dip or a more permanent reset in earnings power.

If it is the former and earnings recover in line with consensus estimates, then today’s valuation could prove to be quite attractive over time.

Why I think this could be an opportunity to buy Cochlear shares

For me, this comes down to a simple question. Has the long-term earnings power of the business permanently declined?

Right now, I do not think there is enough evidence to say that it has.

Cochlear still has market leadership, strong technology, and a clear runway for growth driven by demographics and increasing awareness of hearing loss treatment.

What has changed is short-term execution and near-term demand. That matters for the next 6 to 12 months. But it matters far less over the next 5 to 10 years.

When high-quality companies disappoint, the market often overshoots on the downside. I think that is exactly what is happening here.

Foolish takeaway

This is not a risk-free setup. Cochlear’s earnings could remain under pressure for longer than expected, and sentiment may take time to recover.

But with the shares down 65% and trading at a much lower multiple, I think Cochlear is starting to look like a long-term opportunity rather than a falling knife.

For patient investors willing to look beyond the next year, this could be one of those moments that only shows up once-in-a-decade.

The post Down 65%, are Cochlear shares a once-in-a-decade buying opportunity? appeared first on The Motley Fool Australia.

More reading

• 3 oversold ASX shares to buy with $10,000
• Which beaten down ASX healthcare stock is a better buy right now: Pro Medicus vs Cochlear shares
• Why Cochlear, Karoon Energy, Origin Energy, and WiseTech shares are falling today
• Down 43% this week, are Cochlear shares now the best bargain buy of the year?
• After falling 43% in a week, are Cochlear shares now a buy?

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