Category: Stock Market

With oil prices surging, many investors are seeking exposure to ASX oil shares.

While Woodside Energy Group Ltd (ASX: WDS) and Santos Ltd (ASX: STO) are popular options, they are not the only ones out there.

In fact, Bell Potter has just initiated coverage on one speculative oil share and has good things to say about it.

Which ASX oil share?

The share that Bell Potter has been running the rule over is Omega Oil & Gas Ltd (ASX: OMA).

Bell Potter has described the investment opportunity here as a geology-led unlock of an unconventional oil and gas play.

Commenting on the company, the broker said:

OMA is taking a geology-led approach to unlocking a significant new unconventional oil and gas play in Queensland’s Taroom Trough. Its acreage is located within 50km of existing gas pipelines and 150km from the Wallumbilla Gas Hub. In 2025, the Canyon-1H (horizontal) well flowed oil at peak daily rates of 452bbl oil and 0.60mmscf gas. SLB’s (Schlumberger) Estimated Ultimate Recovery for a 2,000m horizontal well is 0.95mmboe with OMA’s estimated potential gross wellhead revenue of $93m; at the time of assessment, OMA’s acreage could accommodate up to 418 wells.

OMA’s most recent 2C Contingent Resource estimate of 1.7tcf (October 2023) does not yet incorporate this latest technical success and geological data. OMA is also working adjacent joint venture acreage with its major shareholder Tri-Star and Beach Energy (BPT, Hold, Target Price $1.15/sh), and has a 19.08% interest in Elixir Energy (EXR, not rated) which is operating on the western flank of the Taroom Trough.

Initiation with buy rating

According to the note, the broker has initiated coverage on the ASX oil share with a speculative buy rating and $1.45 price target.

Based on its current share price of 85 cents, this implies potential upside of 70% for investors over the next 12 months.

Commenting on its recommendation, Bell Potter said:

OMA is leveraged to de-risking of a new unconventional oil and gas play located close to Australia’s east coast energy markets. Over 2026-27, OMA’s appraisal program should add significant scale to current its current Resource position and inform initial Reserves and production parameters. Australia’s east coast gas market is attractive with established basins in decline, limited sources of new supply and secure demand from domestic and export customers. Oil prospectivity provides another strategic element to the OMA value case.

The post Top broker just slapped a buy rating on this ASX oil share appeared first on The Motley Fool Australia.

More reading

• Up more than 300% over a year, this ASX energy share is hitting new highs
• Brokers name 2 skyrocketing ASX energy shares to buy today
• Up 238% in a year, one broker thinks there’s still way more upside for this ASX energy company

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.

Yesterday, CSL Ltd (ASX: CSL) shares remained flat after the savage sell-off earlier this week.

But the damage remains severe. The ASX healthcare giant is still down around 18% over the past three trading days, 29% over the past month, and roughly 43% year to date.

So, are CSL shares finally bottoming out or could more pain still be ahead?

Another downgrade hurts sentiment

The latest sell-off was triggered after CSL downgraded its FY26 guidance. The company now expects FY26 revenue of US$15.2 billion on a constant currency basis and NPATA of around US$3.1 billion. That compares with FY25 revenue of US$15.6 billion and profit of US$3.3 billion.

The downgrade immediately added further pressure to already weak investor confidence.

CSL shares were once considered one of the ASX’s most dependable long-term growth companies. However, over recent years the company has faced slowing earnings growth, operational challenges and multiple negative surprises.

Those issues have included weaker vaccine demand, restructuring changes and the shock departure of management leadership. At the same time, the broader market has rotated away from healthcare stocks throughout 2026, amplifying the weakness across the sector.

Why investors remain nervous

Dwindling investor confidence appears to be the biggest reason CSL shares continue falling so aggressively. For years, investors were willing to pay premium valuations because CSL consistently delivered strong earnings growth and operational execution.

That confidence has now weakened significantly. The latest guidance downgrade reinforced concerns that near-term earnings momentum remains under pressure.

CSL specifically pointed to China albumin price pressure, US immunoglobulin channel inventory normalisation and several other operational impacts affecting earnings. Importantly, investors now want proof that earnings growth can recover before sentiment improves meaningfully.

That likely means the biotech company needs to demonstrate several periods of stabilising revenue growth and stronger profitability before confidence fully returns.

Could the shares rebound?

Despite the negativity, it may still be too early to completely write off CSL shares.

CSL remains Australia’s largest global biotechnology business with significant scale, strong plasma operations and leading healthcare products.

If earnings growth begins accelerating again, investor sentiment could improve rapidly. That is particularly relevant given how sharply the valuation has compressed during the sell-off.

What do analysts think?

Broker opinion remains mixed but still leans cautiously positive overall.

This week, Morgans retained their buy rating on CSL shares despite lowering their price target to $147.59. That points to a potential upside of roughly 50%. The broker acknowledged disappointment around the FY26 downgrade but noted the issues appear “primarily executional rather than structural”.

Meanwhile, Bell Potter maintained its hold rating while sharply reducing its target price from $155.00 to $100.00. That target now sits only modestly above the current CSL share price of $98.79 at the time of writing.

Bell Potter noted:

We think a discount is warranted for CSL considering the declining underlying earnings outlook across FY26-27, the lack of stable management, and series of credibility hits following several disappointing results/trading updates.

For now, CSL shares appear stuck between long-term quality and short-term uncertainty.

The post Is the worst over for CSL shares after this week’s sell-off? appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares with renewed buy calls from the experts this week
• Are these 2 battered ASX healthcare shares too cheap to ignore?
• Top brokers name 3 ASX shares to buy now
• Down 59%: Will CSL shares ever regain momentum?
• Is CSL now an ASX dividend stock to buy?

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

There was at least some reprieve for battered investors in Life360 Inc (ASX: 360) shares on Wednesday.

The family safety technology company’s shares jumped 5% to $18.76 after suffering an 11% plunge on Tuesday following another sharp sell-off across the tech sector.

Even after Wednesday’s rebound, the shares are still down 6% for the week, 42% since the start of 2026, and roughly 66% below their all-time high reached in October last year.

So, is this a buying opportunity or a classic value trap?

Broad-based tech sell-off

Life360 operates a family safety and location-sharing platform that allows users to track loved ones, driving behaviour, and emergency alerts in real time. The company generates revenue primarily through subscription services, while also expanding its advertising and data monetisation capabilities.

Life360 shares have been swept up in the broad-based sell-off that has hammered growth shares over the past eight months. Investors have increasingly dumped technology stocks amid fears that artificial intelligence could disrupt or replace parts of many companies’ core services.

At the same time, concerns had been growing that valuations across the tech sector — including Life360 — had become overheated after a huge rally last year. That pressure appeared to intensify again this week, with technology shares broadly weaker on Tuesday.

Strong quarter and guidance

Unfortunately for Life360, the negative sentiment overshadowed what was actually a strong first-quarter FY26 result. The company reported a 38% increase in total revenue for the quarter, driven by a 32% lift in subscription revenue and a 36% increase in core subscription revenue.

Just as importantly, management upgraded its FY26 guidance. Life360 now expects consolidated revenue between US$650 million and US$685 million, up from prior guidance of US$640 million to US$680 million. That represents expected annual growth of between 33% and 40%.

The result suggests customer demand remains strong despite the heavy selling of Life360 shares.

What next for Life360 shares?

Analysts also appear firmly bullish on the outlook for Life360 shares.

According to TradingView data, 13 of 14 analysts currently rate the stock as either a buy or strong buy. The average target price sits at $31.37, implying potential upside of roughly 67% from current levels.

Some analysts are even more optimistic, with the highest target price of $38.71 suggesting the shares could more than double from here.

Following the quarterly update, Citi retained its buy rating and $32.10 price target on Life360 shares. The broker believes recent product improvements could drive stronger engagement and improve monetisation through the company’s advertising business.

Meanwhile, Bell Potter also maintained its buy rating, although it trimmed its price target from $35.50 to $32.50.

Foolish Takeaway

Of course, risks remain. Tech-sector volatility could continue, and investor sentiment toward growth shares remains fragile. Life360 shares also still trade on high growth expectations, which leaves little room for operational missteps.

But with revenue growth accelerating, guidance rising, and analysts overwhelmingly positive, the sharp share price decline could look more like an opportunity than a value trap for long-term investors willing to stomach some volatility.

The post Down 42% this year, is it time to jump into Life360 shares? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy now
• Life360 shares rebound 4.5% today: Buy, sell or hold?
• Does Bell Potter think the Life360 share price is dirt cheap?
• 5 things to watch on the ASX 200 on Wednesday

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 positions in and has recommended 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.

Superannuation is a great tool to help Australians build wealth and financial security for their retirement years. 

But it’s very easy to make the wrong decisions. 

Even small mistakes can end up costing you a fortune, and a lot of regret, down the line. 

And some of them could compound over time too.

Here are three superannuation decisions which you’ll regret making when you reach retirement.

1. Leaving your super in the wrong investment option or an underperforming fund

Default superannuation investment options are generally designed to benefit a range of investors, from those starting their first job to those nearing retirement. 

But the problem is that what is considered an appropriate risk for one person doesn’t apply to the next. And, by putting (or leaving) your money into the wrong type of fund, it can quickly chip away at your balance. 

By being too conservative too early you’ll lose out on the potential for more growth. Younger Australians, with time to ride out any market fluctuations would benefit from growth assets, such as good momentum stocks like Droneshield Ltd (ASX: DRO) or Electro Optic Systems Holdings Ltd (ASX: EOS).

But for those closer to retirement, it makes sense to be more conservative. This pool of Australians  might be more suited to stable assets that can weather a share market crash. Dividend-paying shares, such as ANZ Group (ASX: ANZ) and Wesfarmers Ltd (ASX: WES), are also a great option for retirees who want to benefit from additional passive income.

Even worse than the wrong investment option, is leaving your superannuation in an underperforming fund.

The difference between an average superannuation fund and a top-performing one can be the difference between scraping by in retirement and living comfortably.

2. Not taking advantage of concessional contributions before retirement

Relying only on employer contributions is unlikely to be enough for a comfortable retirement. 

Even a small additional contribution can make a big difference when it comes to retirement. 

After all, the power of compounding returns means that the more money you can invest when you’re younger, the more impact it will have on your final balance.

Failing to take advantage of concessional contributions before retirement could cost you dearly when the time comes and you don’t have enough money to live off comfortably. 

Take advantage of additional concessional or non-concessional contributions, whether this is salary sacrificing or after-tax payments (within your annual limits) while you can.

If you don’t have the funds to add more money yourself, you can also look into government initiatives. There’s the downsizer contributions rule, the bring-forward rule, the government co-contribution rule, and many others. 

These can help boost your balance just a little bit further while you still can.

3. Withdrawing too much superannuation, or too early

Many retirees treat their super balance like a large savings account once they reach preservation age. They withdraw too much cash or too early because they want immediate income.

Whether the funds are used for renovations, a holiday, to help family or to more entirely to cash after retirement, drawing far more than the minimum requirement can leave you short further down the road. 

Accessing your superannuation too aggressively, or even relying too heavily on the Age Pension without preserving investment growth, means you could easily outlive your savings. 

Inflation can quietly make the situation worse too as retirees sometimes find that their remaining superannuation is no longer enough to fund their retirement.

Ideally you want to draw up a plan of how many retirement years you expect to have, and how much you expect to spend during that timeframe. Then withdraw money from your superannuation only when you need it and let the rest continue to grow. 

The post 3 superannuation decisions you’ll regret in retirement appeared first on The Motley Fool Australia.

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• 9 ASX 200 shares with renewed buy calls from the experts this week
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• After a rollercoaster start to the year, are Droneshield shares headed up?
• Can DroneShield shares climb back to their $6.71 high?

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, Electro Optic Systems, and Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Xero Ltd (ASX: XRO) share price is in focus today after reporting its FY26 result, with revenue up 31% to $2.8 billion and adjusted EBITDA growing 18% to $757.4 million.

What did Xero report?

• Operating revenue of $2.75 billion, up 31% on FY25
• Adjusted EBITDA of $757.4 million, up 18%
• Net profit after tax of $167.4 million, down 27% due to Melio acquisition costs
• Free cash flow of $554.0 million, up 9%
• Net customers grew by 506,000, reaching a total of 4.92 million globally
• Annualised monthly recurring revenue (AMRR) lifted 37% to $3.27 billion

What else do investors need to know?

Xero’s international segment delivered strong revenue growth, with the US standing out—core revenue jumped 240%, boosted by the integration of Melio, a US bill pay platform acquired during the period. The business added 110,000 US customers, and ARPC (average revenue per customer) rose 23% to $55.44 across the group.

AI remains a key strategic focus. Xero extended its partnership with Anthropic to integrate Claude’s AI, ramped up GenAI-powered features like Just Ask Xero and smart document capture, and launched XeroForce, a natural language AI agent builder currently in early testing.

To offset staff share-based compensation dilution, the board authorised a $550 million share buyback for FY27.

What did Xero management say?

CEO Sukhinder Singh Cassidy said:

Our strong full year results demonstrate Xero’s disciplined execution and macro-resilience. Our 3×3 strategy is hitting its stride, demonstrated by accelerating US growth with 110,000 new customers, including new Melio direct payments customers, and pro-forma revenue growth of 50%. We have powerful momentum across our markets, and delivered strong EBITDA growth while absorbing Melio. This has moved us beyond single-job workflows in the US by integrating Melio to unite accounting and payments on one platform. Globally, we are providing a small business financial operating system for the AI era, driving value for customers while deepening our technology foundations, compliance capability and data advantages, and driving stronger unit economics.

What’s next for Xero?

Looking to FY27, Xero expects operating revenue between $3.62 billion and $3.73 billion and adjusted EBITDA of $860 million to $920 million, including extra brand investment in the US market. The business plans to roll out its Ultra plan for larger businesses, expand AI-powered product features, and build on its strategy to unify accounting, payroll, and payments.

Longer term, Xero is aiming to double group revenue by FY28 (compared to FY25) and achieve Rule of 40 outcomes, driven by ongoing US momentum and wider adoption of its financial operating system.

Xero share price snapshot

Over the past year, the Xero shares have declined 53%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Xero FY26 result: Revenue surges 31% but profit dips due to Melio acquisition costs appeared first on The Motley Fool Australia.

More reading

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• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The ASX dividend share WAM Microcap Ltd (ASX: WMI) is a leading listed investment company (LIC) that I think is one of the leading options for a high level of passive income.

WAM Microcap is certainly not as high profile as names like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP), but I think it could better for dividend income in the years ahead.

The job of a LIC is to invest in other shares/assets that the investment team believes can deliver pleasing returns. WAM Microcap specifically aims to invest in the most exciting undervalued growth opportunities in the Australian microcap market.

Let’s look at three reasons why I think this ASX dividend share is a good, long-term buy.

Good performance

With LICs, I think it’s important to look at the capability of that LIC to deliver good returns. Only good ones are worth investing in.

A LIC pays for its dividends from the net investment returns that it generates. For a dividend to be sustainable, a LIC needs to generate strong enough returns to pay those payments (and hopefully more for capital growth).

I believe the WAM Microcap investment team are very skilled at finding investment opportunities at the small-cap end of the market to help outperform the broader ASX share market.

In its April 2026 update, WAM Microcap said that its portfolio had generated an average return per year of 14.2% since inception in June 2017, twice as good as the small-cap market return.

This great performance over the long-term has allowed WAM Microcap to grow its profit reserve to 55.4 cents per share.

Great dividend yield

One of the main reasons why the business is a compelling passive income idea is that it pays a very large dividend yield.

The ASX dividend share expects to pay an annual dividend per share of 10.7 cents in FY26.

That means, at the timing of writing and the current WAM Microcap share price, it offers a FY26 grossed-up dividend yield of around 9.5%, including franking credits.

There are not many ASX dividend shares with a dividend yield that high that I expect can continue growing the payout.

Track record of payout growth

The LIC has grown its annual dividend almost every year since FY18, with the only year it didn’t grow the payout being FY24.

It started paying a dividend in FY18 and then increased its payout in FY19, FY20, FY21, FY22, FY23, FY25 and FY26.

If I invest in an ASX dividend share, I want to have a high level of confidence the business is likely to increase the payout again in the following financial year. With the large profit reserve, I think WAM Microcap is capable of ongoing dividend growth.

Even a slight increase each year is very welcome to help offset inflation impacts.

But, WAM Microcap isn’t the only ASX share I’d consider for long-term passive income.

The post Why I think this ASX dividend share with a 9.5% dividend yield is a buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Wam Microcap. 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.

If you are hunting for some big returns, EBR Systems Inc (ASX: EBR) shares could be worth considering.

That’s the view of analysts at Bell Potter, who believe this ASX biotech stock could rocket from current levels.

What is this ASX biotech stock?

EBR Systems is a clinical-stage company that has developed a patented Wireless Stimulation Endocardially (WiSE) technology.

This is for the treatment of cardiac rhythm disease and to eliminate the need for cardiac pacing leads when delivering cardiac resynchronisation therapy.

Bell Potter was pleased with the company’s performance in the first quarter. And while its cash burn increased, it notes that this relates to large one-off items, so isn’t concerned. It said:

The headline data had been pre-released which showed that sales doubled qoq, while unit volumes, ASP, hospital contracts signed and physicians trained, all heading in the right direction. All hospital contracts are continuing to be priced at the maximum rate of c.US$63k. Reported gross margins were at a relatively low c.7.8% given the early commercialisation phase, use of old inventory and use of the old manufacturing facility. If current inventory prices were used, the gross margin would have been c.- 25.4%. EBR expect to be in the new facility by the end of 3Q26, from which time gross margins should begin to increase through the combination of new automated machinery to drive efficiency in manufacturing, and scale.

The Adj. EBITDA loss of c.- US$15.1m v c.-US$9.2m pcp reflects the scale up of commercial operations. Operating Cash Outflow of c.-US$20.2m reflected one-off items including bonuses, payroll tax, demo and design units, as well as front loading of leasehold improvements (c.US$2.6m), which will be reimbursed by the landlord in the June quarter. Even allowing for the one-off items, EBR is still hovering at around two quarters of cash / cash equivalents remaining.

Big potential returns

According to the note, in response to the update, Bell Potter has retained its buy rating and $2.00 price target on the ASX biotech stock.

Based on its current share price of 57.5 cents, this implies potential upside of approximately 250% over the next 12 months.

Bell Potter believes it is just its funding question that is holding back its shares. Once resolved, the broker believes its shares could rally. It explains:

No change to earnings / valuation. Given the expectation of a further c.US$15m in revenue over the balance of CY26, we expect 1Q26 to be the peak in operating losses. Once the funding question is resolved, which has been impeding investor sentiment, we would expect the share price to rally.

The post Broker says this ASX biotech stock could rocket 250% appeared first on The Motley Fool Australia.

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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.

Aristocrat Leisure Ltd (ASX: ALL) shares were in fine form on Wednesday.

The gaming technology company’s shares ended the day 13% higher at $51.94 after investors responded positively to its half-year results.

Is it too late to invest? Let’s see what Bell Potter is saying about the ASX 200 stock.

A strong result

Bell Potter was pleased with its performance. Although Aristocrat’s revenue was a touch softer than expected, its profits were ahead of estimates thanks to lower than anticipated corporate costs. It said:

ALL reported flat revenue growth (+6% constant currency (CC)) to $3,028m below BPe of $3,040m and consensus of $3,056m, driven by +5% YoY growth (+12% CC) in Gaming (BPe +4% growth), a -11% YoY decline (-4% CC) in Product Madness (BPe -10%) and a -1% YoY decline (-9% CC) in Interactive (BPe – 14%). EBIT(A) was A$1,117m, up +6% YoY (+14% CC). Normalised NPATA of $794m was up +8% YoY (+1% beat vs. BPe). The gaming ops install base grew by 2.0k units to 77.2k, slightly ahead of BPe and consensus with the Premium growing by a pleasing +2.3k.

The beat to consensus was driven by a $33m better than expected Corporate costs print which masked a weaker than expected result in Product Madness with the broader social slots market declining 11% YoY. Fee per day (FPD) of $53.1/d was down HoH and 1% below BPe, however, the outlook for this metric appears optimistic with earnings call commentary suggesting upward pressure due to higher performing games entering the install base.

The broker was also pleased with the company’s outlook commentary. It adds:

ALL reiterated most outlook comments including NPATA grow over FY26e on a constant currency basis. ALL expects to deliver Gaming ops net adds towards the upper end of its 4-5k target and did not rule out growth higher than this range.

Aristocrat shares tipped to rise further

According to the note, Bell Potter has retained its buy rating and $61.00 price target on Aristocrat shares.

Based on its current share price of $51.94, this implies potential upside of more than 17% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

We retain Buy. We expect ALL’s leading R&D investment will drive market share gains. Top 2 game performance observed in both the core sales and premium gaming ops markets leaves us confident that ALL can grow the install base >4.0k per year and grow global shipments. Further, with leverage expected to reach 0.4x despite significant buybacks, ALL has substantial capacity to boost growth inorganically.

The post Up 13%: Why this ASX 200 stock is a buy with even more upside appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares with renewed buy calls from the experts this week
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• Why Arafura, Aristocrat, BHP, and Perenti shares are racing higher today
• Aristocrat shares charge higher on strong result and $1b buy-back

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.

S&P/ASX 200 Index (ASX: XJO) shares closed 0.46% lower on Wednesday at 8,630.4 points.

Within the 11 market sectors, consumer discretionary shares rose the most, up 2.9% yesterday.

Materials shares also had a strong day after BHP Group Ltd (ASX: BHP) set a new record and resumed the top spot on the ASX 200.

ASX 200 materials shares rose 2%, and BHP shares finished 2.9% higher at $61.52 after resetting their historical high at $62.30.

The financial sector was the laggard, dropping 4%, largely due to Commonwealth Bank of Australia (ASX: CBA) shares diving 10.4%.

Amid this volatility, brokers have indicated continuing confidence in several ASX 200 shares this week.

Let’s take a look at which stocks have attracted reiterated buy ratings.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price closed at $7.60, up 1.9% on Wednesday.

Over the past month, this ASX 200 insurance share has risen 4.8%.

UBS renewed its buy rating on IAG shares on Wednesday.

The broker raised its 12-month price target from $8.55 to $8.80.

The target suggests a possible 16% capital gain ahead. 

National Australia Bank Ltd (ASX: NAB)

The NAB share price finished at $36.86, down 1.5% yesterday.

Over the past month, this ASX 200 bank share has fallen 18%.

UBS renewed its buy rating on NAB shares with a $48.50 target this week.

This implies 31% potential growth ahead. 

CSL Ltd (ASX: CSL)

The CSL share price closed at $98.79, up 0.2% on Wednesday.

This ASX 200 healthcare giant has fallen 28% in a month and 59% over 12 months.

Morgans renewed its buy rating on CSL shares this week.

However, the broker slashed its price target from $241.34 to $147.59.

This still suggests very healthy upside of 49% over the next year.

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price closed the session yesterday at $34.57, down 1.6%.

Over the past month, this ASX 200 bank share has fallen 11%.

Citi renewed its buy rating on ANZ shares on Tuesday.

The broker trimmed its 12-month price target from $40.30 to $40.

The target suggests a possible 16% capital gain ahead. 

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price closed at $125.50, down 0.3% on Wednesday.

This ASX 200 healthcare share has fallen 53% over the past 12 months.

The Pro Medicus share price has been in correction mode after hitting a historical peak of $336 in July 2025.

Canaccord Genuity renewed its buy rating on Pro Medicus shares this week.

The broker lowered its target from $180.82 to $168.62, suggesting a possible 34% upside ahead. 

Aristocrat Leisure Ltd (ASX: ALL)

The Aristocrat share price closed the session yesterday at $51.94, up 13.3%.

This ASX 200 consumer discretionary share has tumbled 12.9% over six months.

Citi renewed its buy rating on Aristocrat shares with a 12-month target of $65 on Wednesday.

This implies a potential 25% upside ahead.

Temple & Webster Ltd (ASX: TPW)

The Temple & Webster share price closed at $4.98, down 6.4% on Wednesday.

The ASX 200 retail share has fallen 29% in a month and hit a 3-year low of $4.54 yesterday.

Macquarie renewed its buy rating on Temple & Webster shares with a $13.70 target this week.

This implies a potential 173% upside ahead.

Nick Scali Ltd (ASX: NCK)

The Nick Scali share price closed the session yesterday at $14.08, down 2.5%.

Over the past month, this ASX 200 furniture retailer has lost 11% of its valuation.

Macquarie renewed its buy rating on Nick Scali shares with a $21.60 target this week.

This indicates a potential 54% upside ahead.

Metcash Ltd (ASX: MTS)

The Metcash share price closed at $2.97, down 1% on Wednesday.

Over the past six months, this ASX 200 supermarket share has fallen 23%.

UBS renewed its buy rating on Metcash shares with a $3.50 target this week.

This indicates a potential 18% upside ahead.

The post 9 ASX 200 shares with renewed buy calls from the experts this week appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended BHP Group, CSL, Nick Scali, Pro Medicus, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Air New Zealand Ltd (ASX: AIZ) shares are in focus today after the airline warned that surging jet fuel prices have created a material external shock for the global aviation industry.

The airline released a market update on Thursday morning, cutting its FY 2026 outlook and outlining a range of actions to protect earnings and preserve liquidity.

While this is an Air New Zealand update, it could have implications for Qantas Airways Ltd (ASX: QAN) shares.

What did Air New Zealand say?

Air New Zealand advised that elevated and volatile global jet fuel prices have had a significant impact on its FY 2026 outlook.

The airline said jet fuel prices were around US$85 to US$90 per barrel before the escalation of conflict in the Middle East. Since then, they have traded between approximately US$160 and US$230 per barrel over the past 10 weeks.

This has created a major cost headwind. Air New Zealand now expects its second-half FY 2026 fuel cost to be approximately NZ$980 million, compared with the NZ$740 million assumption used at its interim result. That implies a NZ$240 million headwind to its expected FY 2026 result, including hedging.

The company said it is around 85% hedged against its second-half FY 2026 Brent crude exposure, but remains exposed to the crack spread, which is the difference between crude oil and refined jet fuel prices. That spread has also been highly volatile.

Capacity, fares, and demand

Air New Zealand has already responded by reducing capacity.

It said it has made three targeted capacity consolidations, cutting overall group capacity by around 3% to 5% across its networks since the conflict began. If fuel prices remain elevated, further capacity updates could be announced in coming weeks.

The airline has also increased fares across its network. However, it noted that fuel cost recovery will take time because earlier bookings need to be flown before newer, higher-priced bookings flow through.

Demand has also started to soften. Booking momentum has moderated in recent weeks, with domestic and trans-Tasman demand weakening. Outbound demand to some long-haul markets has also softened, while Asia inbound and cargo have been more resilient.

The overall impact has been significant. Air New Zealand now expects an FY 2026 loss before tax of between NZ$340 million and NZ$390 million. This assumes an average jet fuel price of approximately US$145 per barrel for the second half.

What does this mean for Qantas shares?

The read-through for Qantas shares is not hard to see.

Fuel is one of the biggest costs for any airline. If jet fuel prices and refining margins remain elevated, Qantas is likely to face the same broad industry pressure as Air New Zealand.

That does not mean Qantas will be hit in exactly the same way. Its route network, hedging position, fare structure, loyalty business, balance sheet, and domestic market position are different. Qantas also has a larger and more diversified business, which could help cushion some of the impact.

But Air New Zealand’s update highlights three risks investors may now be watching closely.

The first is margin pressure. Higher fuel costs can quickly eat into airline earnings if they are not fully recovered through fares.

The second is demand. Air New Zealand’s warning that fare increases need to be managed carefully is relevant for Qantas as well. Push fares too hard, and some passengers may delay or cancel travel.

The third is capacity. If airlines reduce seats to protect profitability, it can support pricing, but it can also limit revenue growth.

For Qantas shareholders, this update is a reminder that airline earnings can change quickly when fuel prices move sharply.

The post Air NZ warns of ‘fuel shock’, what this means for Qantas shares appeared first on The Motley Fool Australia.

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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.