Category: Stock Market

S&P/ASX 200 Index (ASX: XJO) copper stocks are shooting the lights out today.

In afternoon trade on Wednesday, the ASX 200 is up 2.6% as investors digest news of a two-week ceasefire in the Iran war.

And the copper miners are charging ahead of those gains. That’s because a resolution in the Middle East conflict would reduce the forecast pressure on global growth and, accordingly, increase forecast demand for crucial industrial metals like copper.

Indeed, since the outbreak of the war at the end of February, the copper price has fallen by almost 8% to US$12,313 per tonne. Mind you, that’s still up 41% since this time last year.

And with investors hopeful that the war could be nearing an end, here’s how these three leading ASX 200 copper stocks are tracking today and over the past 12 months:

• BHP Group Ltd (ASX: BHP) shares are up 3.6% today at $54.84 and up 55.0% in 12 months
• Sandfire Resources Ltd (ASX: SFR) shares are up 10.5% today at $18.26 and up 108.3% in 12 months
• Capstone Copper Corp (ASX: CSC) shares are up 9.2% today at $12.46 and up 85.4% in 12 months

While Sandfire Resources and Canadian-based Capstone Copper are relatively pure play copper stocks, you may be surprised to see BHP shares on this list.

But when BHP reported its half-year results (H1 FY 2026) in February, investors learned that at US$8 billion, copper contributed more than half the miner’s earnings for the six months, surpassing iron ore for the first time.

For the full 2026 financial year, BHP expects to produce between 1.9 million and 2.0 million tonnes of the red metal.

ASX 200 copper stocks facing ‘near-term risks’

When it comes to the US and Israeli war with Iran, investors would do well not to be overly exuberant amid the early ceasefire news.

“Investors shouldn’t mistake this pause for a resolution,” eToro market analyst Josh Gilbert said.

“A two-week ceasefire window is welcome news for risk assets broadly, but the reality is we’ve seen patterns like this before, and the underlying uncertainty can persist,” he added.

And ASX 200 copper stocks like BHP and Sandfire could prove particularly vulnerable to a prolonged conflict in the Middle East.

That’s according to the analysts at Goldman Sachs, who warn of potentially slumping global demand for the red metal, should the war persist (courtesy of The Australian Financial Review).

According to Goldman Sachs:

We see the near-term risks as skewed to the downside if strait flows remain disrupted for longer than our base case, which would keep energy prices higher for longer and likely slow global economic growth.

And the big one-year share price gains posted by BHP and its rival ASX 200 copper stocks may have been partly driven by overvalued global copper prices.

Goldman Sachs noted:

The copper price continues to trade well above our 2026 fair value estimate of about US$11,100 … which would fall below US$11,000 under our economists’ severely adverse scenario of a 1.2 percentage point hit to global GDP growth from the energy price spike.

Our fair value estimate takes into account price support from the ex-US market balance and adds a 25% probability of broad strategic copper stockpiling. This means that the copper price is not being supported at the current level by fundamentals, making it vulnerable to another move lower should the economic outlook deteriorate and investors de-risk.

Stay tuned!

The post Why surging ASX 200 copper stocks like Sandfire and BHP shares are ‘vulnerable’ appeared first on The Motley Fool Australia.

More reading

• Morgans names two ASX 200 shares to buy and one to sell this week
• 3 analysts give their verdict on BHP shares
• ASX 200 sector leaders to buy amid today’s market rally
• Up 59% in a year, should you still buy BHP shares today?
• Why I think BHP, CBA, and DroneShield shares are buys in April

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 positions in and has recommended Goldman Sachs Group. 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.

Regis Resources Ltd (ASX: RRL) shares are racing higher on Wednesday after the gold miner released another strong quarterly cash and bullion update.

In mid-afternoon trade, the Regis share price is up 7.66% to $7.375, after opening at $7.25 and reaching an intraday high of $7.42.

The move lifts the gold stock’s 12-month gain to roughly 74%, continuing a strong run that has made it one of the ASX gold sector’s standout performers.

Based on the current share price, Regis’ market capitalisation now sits around $5.58 billion.

The rally comes after a fresh ASX release showed another major increase in cash and bullion holdings. Gold prices also climbed back toward record levels overnight as safe-haven demand strengthened.

Another $198 million added to the balance sheet

The main catalyst was Regis’ March quarter production and balance sheet update.

The company reported total group gold production of 90.6k ounces for the quarter, taking FY26 year-to-date production to 277.5k ounces.

Duketon contributed 57.5k ounces, and Tropicana delivered 33.1k ounces on an attributable basis, leaving the miner comfortably on track to meet full-year production guidance.

The bigger focus, however, was cash generation.

Regis revealed that cash and bullion increased by $198 million during the quarter, even after making a $92 million FY25 tax payment in February.

That lifted total cash and bullion holdings to $1.128 billion as at 31 March.

Gold strength supports the rally

The market reaction was also helped by another strong move in bullion overnight.

Gold prices climbed back above US$4,790 an ounce, with market data showing the yellow metal rising almost 2% as investors moved back into safe-haven assets. That leaves bullion up more than 55% over the past year.

As an unhedged producer, Regis gets the full benefit of stronger spot prices through margins and free cash flow, which is now feeding into its balance sheet.

The company also said there has been no material impact from broader fuel supply uncertainty across Australia. It is still watching costs and supply chains closely ahead of its full quarterly report later this month.

Foolish Takeaway

Regis is increasingly standing out as one of the ASX gold sector’s strongest cash generators.

A $1.128 billion cash and bullion balance, zero direct hedge exposure, and another lift in bullion prices are helping keep the stock in focus.

After a 74% gain over the past year, this latest update shows how strongly Regis is benefiting from higher gold prices and a growing cash balance.

The post ASX 200 share leaps 8% as gold rally drives cash pile past $1.1 billion appeared first on The Motley Fool Australia.

More reading

• Regis Resources posts strong Q3 cash build and gold production
• 5 things to watch on the ASX 200 on Wednesday
• These were the worst-performing ASX 200 shares in March
• ASX gold shares tumble as bull run faces its first big test in 1Q CY26
• ASX 200 mining shares rebound after March sell-off creates opportunities

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.

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

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

Guzman Y Gomez Ltd (ASX: GYG)

According to a note out of Morgans, its analysts have retained their buy rating on this burrito seller’s shares with an improved price target of $26.70. This follows the release of a third-quarter update that impressed the broker. It highlights that Guzman Y Gomez delivered a meaningful acceleration in Australian comparable store sales growth, providing tangible evidence that the business is executing well against a challenging consumer backdrop. It also points out that transaction growth continued to outpace comparable store sales growth. This maintains its strategy to be volume and frequency-led rather than price-driven. The Guzman Y Gomez share price is fetching $19.50 at the time of writing.

Lovisa Holdings Ltd (ASX: LOV)

A note out of UBS reveals that its analysts have upgraded this fashion jewellery retailer’s shares to a buy rating with a $26.00 price target. UBS highlights that Lovisa’s shares have fallen heavily this year amid concerns over slower store growth, softer like-for-like sales in the local market, and ongoing losses from the new Jewells store brand. However, the broker believes much of this risk is now priced in. Furthermore, it thinks the resilience of Lovisa’s youth-focused, low price point offering is underappreciated by the market, and expects management to prevent sustained losses from Jewells either by fixing the business or considering a closure. The Lovisa share price is trading at $23.96 this afternoon.

Telix Pharmaceuticals Ltd (ASX: TLX)

A note out of Bell Potter reveals that its analysts have retained their buy rating and $19.00 price target on this radiopharmaceuticals company’s shares. This follows the release of a solid first-quarter sales update this week. Bell Potter was pleased with Telix’s update and believes it leaves the company well-placed to achieve its guidance in FY 2026. In addition, it highlights that Telix continues to make good progress on multiple pipeline products. It also sees major short term share price catalysts on the horizon. This includes the potential acceptance by the FDA of the resubmitted NDA for Pixclara and the amendment to the IND for TLX591. The Telix share price is fetching $13.83 at the time of writing.

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

More reading

• GYG shares skyrocket 33% this week: Is this the recovery we’ve been waiting for?
• Morgans names two ASX 200 shares to buy and one to sell this week
• 5 things to watch on the ASX 200 on Wednesday
• Why rebounding Telix shares could still rise 40%
• Why Bell Potter just downgraded its valuation of this popular ASX 200 share

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

The ASX share market is a great place to find potential investments that could deliver significant returns in a relatively short amount of time.

Few businesses deliver a return of 100% or more in a single year, so just because analysts think a stock can at least double in 12 months doesn’t mean that will happen, or that the return will even be positive.

But there are a few names that experts are very optimistic about, so let’s take a look at them.

Megaport Ltd (ASX: MP1)

This ASX tech share enables clients to quickly connect to hundreds of data centres around the world. It has a truly global presence in regions like the Americas, Asia Pacific, and EMEA (Europe, the Middle East and Africa).

In the recent FY26 half-year result, the ASX share reported revenue growth of 26% to $134.9 million, with net revenue retention of 111% and annual recurring revenue (ARR) growth of 19%, implying pleasing revenue growth from its existing client base.

According to CMC Invest, there have been nine recent expert ratings on the business, with eight of those being a buy. Of the nine ratings, the average price target is $15.84, implying a possible rise of around 110% from current levels.

Xero Ltd (ASX: XRO)

Xero is one of the world’s largest cloud accounting software providers, with a presence in a number of countries like Australia, New Zealand, the UK, the US, Canada, South Africa, and Singapore.

The ASX share is growing at a rapid pace – in the HY26 result, operating revenue rose 20% to NZ$1.19 billion and free cash flow surged 54% to NZ$321 million.

According to CMC Invest, there have been seven recent ratings on the business, with an average price target of $158.22. That implies a possible increase of just over 100% from where it is today.

Qoria Ltd (ASX: QOR)

Qoria describes itself as a global technology company that’s keeping children safe and well in their digital lives. It says it has supported 32,000 schools across four continents and kept 30 million children safe. The ASX share provides a parental control platform in an app.

In the FY26 half-year result, the ASX share reported that its revenue increased by 25% to $69 million, and underlying operating profit (EBITDA) jumped by 68% to $10.3 million, which is a strong rate of expansion.

According to CMC Invest, there are currently five buy ratings on the business, with an average price target of 65 cents, which implies a possible rise of approximately 110% in the year ahead.

The post 3 ASX shares tipped to grow 100% or more in the next 12 months appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 tech shares this fund manager backs to survive the AI threat
• Down 35% in 2026, are Xero shares the bargain buy of April?
• Brokers rate these 3 top ASX shares as buys in April
• Forget Easter eggs, these ASX shares could be your best buys this month
• 3 amazing ASX growth shares I’d buy and hold for the next decade

Motley Fool contributor Tristan Harrison 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 Megaport and 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.

In the biggest capital raise to hit the ASX in some time, the L1 Gold Fund Ltd (ASX: LGF) is looking to raise up to $1 billion in new capital to target investments in undervalued mid-cap gold companies.

In the fund’s initial public offer prospectus, lodged with the ASX, it says it intends to raise a minimum of $500 million and up to $1 billion in new shares priced at $2 each.

Opportunities in gold

The fund said the strategy thereafter would be to invest across a range of securities in the gold sector.

As it said in its own words:

The Company has been established to invest predominantly in the gold sector, constructing a portfolio of Australian and international Securities (including shares, options or debentures in listed or unlisted gold mining companies in Australia or overseas) and Other Eligible Investments (which may include derivatives, such as gold futures contracts, and potentially also minority or temporary holdings of title to gold), but with the Company predominantly investing in Securities and Other Eligible Investments that are listed on a securities exchange.

But the fund also intends to invest in an “opportunistic” manner, “in other precious metal sectors (such as silver, platinum and palladium), which will involve selective investment in these sectors where the Manager identifies compelling risk-adjusted opportunities.”.

The prospectus said the fund will aim to generate positive absolute returns over the medium to long term, being more than three years, and will achieve this by holding both long and short positions in stocks.

The prospectus adds:

As the Investment Strategy seeks to identify assets that are undervalued or overvalued by the market, the Company produces investment returns from income generated by the relevant assets (eg capital growth or dividends) or by a future correction of the market. By way of example, the Company may hold a Long Position in shares of a mid-cap mining company in Australia or overseas that the Manager deems to be undervalued. The initial focus of the Company will be to invest in a set of high conviction, primarily mid-cap1 existing gold producers that the Manager believes to be significantly undervalued. The Manager will look for the most compelling opportunities across the entire listed peer group of such gold producers globally, a significant portion of which the Manager expects to be in the form of listed international Securities. The decision to initially focus a significant portion of the Company’s portfolio on mid-cap gold producers is due to the Manager’s view that there are attractive valuations, near-term earnings growth potential and a significant breadth of investment opportunities within this part of the gold sector.

The fund expects its initial portfolio to be made up of about 15% Australian-listed equities, 34% international equities, and the remainder in exchange-traded derivatives.

The fund expects its shares to start trading on the ASX on April 24.

The post This new billion-dollar ASX gold fund promises broad exposure to the market appeared first on The Motley Fool Australia.

More reading

• DroneShield shares tumble 17% as CEO exit revives leadership fears
• GYG shares skyrocket 33% this week: Is this the recovery we’ve been waiting for?
• Sell alert! Why this expert is calling time on Domino’s and Pro Medicus shares
• Looking for an ASX lithium share with plenty of potential upside? This could be the one
• Buy, hold, sell: Coles, Endeavour, and Rio Tinto shares

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.

DroneShield Ltd (ASX: DRO) shares are being hit hard on Wednesday, with the sell-off going beyond a routine leadership change.

In afternoon trade, the DroneShield share price is down a sizeable 17.29% to $3.30, after falling as low as $3.20 earlier in the session.

That is a brutal one-day move, especially with the S&P/ASX 200 Index (ASX: XJO) pushing 2.6% higher.

Even so, the defence technology stock remains up almost 280% over the past 12 months. That helps explain why some investors may be quick to lock in gains when uncertainty re-emerges.

Let’s take a look at what’s driving the weak sentiment.

Investors are focusing on trust, not the transition

According to the ASX announcement, DroneShield CEO Oleg Vornik has stepped down effective immediately after more than a decade leading the business.

In addition, chairman Peter James will retire and not seek re-election at May’s Annual General Meeting (AGM).

Chief product officer Angus Bean has been elevated to chief executive, and former REA Group chair Hamish McLennan will join as chairman-elect.

While the leadership changes look orderly on paper, the market’s attention has quickly shifted back to the controversial November selldown. At that time, Vornik, James, and another director sold a combined $70 million in shares.

The selldown triggered a major collapse in the stock that month and left lingering concerns around governance and board oversight.

With the stock having staged such a strong recovery since then, today’s leadership exits appear to have brought those concerns back into focus.

Strong quarterly growth was not enough

The weaker move stands out because DroneShield paired the leadership update with another strong trading result.

The company reported March quarter revenue of $63 million, up 87% year-on-year, alongside record quarterly cash receipts of $77 million, up 361%.

It also said it already has $140 million in committed FY26 revenue just 3 months into the financial year.

Under normal conditions, those numbers would likely have supported buying interest.

Instead, the market appears more focused on the boardroom reset and the lingering fallout from last year’s insider selldown.

That reaction comes even as Vornik described his time leading DroneShield as “the experience of a lifetime”. He said he was proud to have helped build the company from a $27 million IPO into an ASX 200 defence technology business valued in the billions.

The contrast between record operating momentum and renewed leadership uncertainty appears to be keeping sellers in control. Some investors may also be using the weakness to lock in gains after the stock’s huge 12-month run.

Foolish takeaway

DroneShield remains one of the ASX’s standout momentum stocks, still valued at about $3.1 billion after today’s decline.

The latest quarterly numbers show the business is still delivering exceptional growth, but leadership turnover and the overhang from last year’s insider selldown have clearly unsettled sentiment.

After a 280% rally over the past 12 months, today’s sell-off suggests investors are waiting for confidence in the new leadership team to improve.

The post DroneShield shares tumble 17% as CEO exit revives leadership fears appeared first on The Motley Fool Australia.

More reading

• Should you buy the 20% dip in the DroneShield share price?
• Why are DroneShield shares getting smashed today?
• Pro Medicus announces $23m US contract
• DroneShield posts record revenue and unveils leadership changes
• Magellan Financial Group posts March 2026 AUM drop

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and is short shares of DroneShield. 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.

Guzman Y Gomez Ltd (ASX: GYG) shares are flying 11.7% higher in Wednesday trade, at $20.13 a piece. 

The price rally continues from yesterday’s bumper session, where the shares rebounded 18.55% in a day. It means the fast food retailer’s shares have soared 32.7% this week alone.

It’s a very welcome reprieve for investors after the Mexican-themed fast food retailer’s shares hit a historic low of just $15.20 a piece at the close of the ASX last Thursday, ahead of the long Easter weekend. 

The share price recovery means GYG shares are now down just 6.5% year to date and 35.1% over the past 12 months.

What caused the reversal in GYG’s share price this week?

GYG posted its Q3 FY26 results ahead of the ASX market open yesterday morning, and investors were clearly thrilled with the result, with many falling over themselves to buy the shares.

The company announced that its network sales grew 19.5% over the quarter and comparable sales grew 6.6% in Australia and 2.2% in the US. GYG also confirmed that five new Australian restaurants bring the company’s total number of global locations to 278.

GYG also reaffirmed its full-year guidance, expecting the Australia Segment underlying EBITDA as a percentage of network sales to climb to 6.0 to 6.2% in FY26, versus 5.7% the prior year. 

The company said it is on track to open 32 new Australian restaurants in FY26, with a focus on drive-thrus making up the bulk of planned launches.

Is this the recovery we’ve all been waiting for?

It most certainly looks like it.

The beaten-down shares have steadily tumbled since late 2024, and this is the first time we’ve seen a meaningful share price recovery.

I’m confident that the rally can continue going forward, too, with its huge ambitions for business expansion already underway. GYG plans to reach 1,000 restaurants within 20 years.

While its expansion success in Australia so far has been exceptional, the company has fallen short of its overseas expansion goals, particularly in the US. However, the latest results suggest global growth is finally kicking into gear.

How high can GYG shares go?

If analyst sentiment is anything to go by, we can expect to see a lot more upside from GYG shares.

TradingView data shows that analyst sentiment on the outlook for Guzman Y Gomez shares is now mostly bullish. Out of 13 analysts, eight have a buy or strong buy rating, and another four have a hold rating. One has a strong sell rating.

The average target price is $23.03, which implies a potential 14.7% upside at the time of writing. But some think the stock has the potential to soar another 60% to $32 each over the next 12 months.

The post GYG shares skyrocket 33% this week: Is this the recovery we’ve been waiting for? appeared first on The Motley Fool Australia.

More reading

• Morgans names two ASX 200 shares to buy and one to sell this week
• Why Bank of Queensland, Guzman Y Gomez, NextDC, and Telix shares are racing higher today
• Down 52%, is this ASX fast food stock a screaming buy?
• Guzman y Gomez posts 20% Q3 FY26 sales growth
• These are the 10 most shorted ASX 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 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.

Domino’s Pizza Enterprises Ltd (ASX: DMP) and Pro Medicus Ltd (ASX: PME) shares are both leaping higher today.

In early afternoon trade on Wednesday, Domino’s shares are trading for $18.26 apiece. That sees shares in the S&P/ASX 200 Index (ASX: XJO) fast food pizza retailer up 7.0% today.

Pro Medicus stock is enjoying an equally strong. At $130.44 apiece, shares in the ASX 200 health imaging company are up 6.9%.

For some context, the ASX 200 is up 2.6% at this same time, buoyed by news of a ceasefire in Iran.

Unfortunately for longer-term stockholders, today’s outperformance of Pro Medicus and Domino’s stock is not par for the course.

Despite today’s boost, Domino’s shares remain down 29.5% since this time last year. And the Pro Medicus share price remains down 30.7%.

While both ASX 200 stocks pay dividends, those haven’t come close to making up for the capital losses suffered over the past year.

And looking ahead, Fairmont Equities’ Michael Gable doesn’t expect a near-term rebound for either company (courtesy of The Bull).

Here’s why.

Time to sell Pro Medicus shares?

“The company provides medical imaging software and services to hospitals and healthcare groups across the world,” said Gable.

Explaining his sell recommendation on Pro Medicus shares, he said:

We remain negative on the technology sector as higher interest rates, continuing market volatility and increasing uncertainty leaves investors questioning the high multiples that companies, such as Pro Medicus, trade on.

As we saw in the early 2000s, technology stocks can lose a significant amount of value before they become attractive again. This rotation out of technology stocks often sees investors flocking to hard assets, such as mining company shares. This is what we’re seeing in share markets at the moment, and this dynamic has further to go, in my view.

Is there more pain to come for Domino’s shares?

Atop Pro Medicus shares, Gable also recommends selling Domino’s shares.

“Although the share price of this fast food company has lost a lot of value in the past few years and recently remained in a downtrend, I don’t see any price support emerging at current levels,” he said.

Gable concluded:

The company is entering a challenging period, where increasing costs and lower consumer confidence could erode margins and put downward pressure on earnings. I can’t identify a positive catalyst at least until the company posts full year results in August.

I expect investors to continue selling the stock on any sharemarket bounce.

The post Sell alert! Why this expert is calling time on Domino’s and Pro Medicus shares appeared first on The Motley Fool Australia.

More reading

• After a 30% 2026 slide, Pro Medicus shares are rocketing again
• Pro Medicus announces $23m US contract
• Buy, hold, or sell? Treasury Wine, Domino’s Pizza, and Telstra shares
• Buy, hold, sell: CSL, QBE, and Pro Medicus shares
• If I could buy just one ASX stock in April, it’d be Pro Medicus shares

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 positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Wildcat Resources Ltd (ASX: WC8) recently announced the results of exploration drilling near its developing Tabba Tabba lithium project in Western Australia, with the team at Shaw and Partners impressed with the results.

Shaw has a buy recommendation on the shares and a very bullish price target on the company, which we’ll come to shortly.

Exploration success

First, let’s have a look at this week’s news.

The company said that exploration drilling at the Bolt Cutter lithium discovery had shown that mineralisation extended more than 2.3km to the northwest and up to 800m to the northeast.

The Bolt Cutter discovery is 10km west of the Tabba Tabba project, which is in the Pilbara region of WA.

Some of the best drilling results from Bolt Cutter included 9.4m at 1.3% lithium oxide from a depth of 23.2m and 8.1m at 1.2% from a depth of 39.7m.

Wildcat said further drilling on Bolt Cutter would start soon to both extend the discovery and for infill purposes.

The company also said it remained well-funded with $48.5 million in cash as at the end of December.

The company said re the Tabba Tabba project:

The Tabba Tabba Project is an advanced lithium and tantalum development project that is located on granted Mining Leases just 80km by road from Port Hedland, Western Australia. It is nearby some of the world’s largest hard-rock lithium mines. The Project was one of four significant … pegmatite projects in WA, previously owned by Sons of Gwalia. The others were Greenbushes, Pilgangoora and Wodgina which are now Tier-1 hard-rock lithium mines. Tabba Tabba is the last of these assets to be explored and developed for lithium mineralisation.

Shares looking cheap

The Shaw and Partners analysts said they expected demand for lithium to remain high.

They added:

Current high fuel prices have created a perfect storm for electric vehicle demand and we expect will tip the lithium market into deficit by the end of the year. With prices surging, Wildcat is poised to be producing lithium during the current cycle.

They were also encouraged by the drilling results from Bolt Cutter:

Results to date demonstrate strong potential for Bolt Cutter to grow in scale both laterally and at depth. Bolt Cutter is likely to be a key component of Wildcat’s two-pronged strategy of exploration and development, with organic growth from discoveries providing a clear pathway for integration into broader development plans. Wildcat is moving quickly toward production, having made its major discovery on already granted mining leases. This unusual status, combined with a signed Native Title Agreement, significantly truncates the regulatory and permitting timeline, allowing the company to target first production in 2028. This will allow Wildcat to capitalise on the current lithium price cycle as the market moves into deficit later this decade.

Shaw has a price target of $1.20 on Wildcat shares compared with 39.5 cents currently. Wildcat is valued at $509 million.

The post Looking for an ASX lithium share with plenty of potential upside? This could be the one appeared first on The Motley Fool Australia.

More reading

• Why Challenger, Lotus Resources, Mesoblast, and Wildcat shares are falling 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.

There are a lot of ASX shares to choose from on the Australian share market.

But not all are necessarily buys.

So, let’s see what Morgans is saying about three very popular shares this month:

Coles Group Ltd (ASX: COL)

Morgans believes has been looking at supermarket giant Coles and sees an opportunity for investors after recent weakness in its share price.

While the broker wasn’t overly impressed with its performance in the first half, it has seen enough to upgrade its shares to an accumulate rating and $22.90 price target. It explains :

While COL’s 1H26 result was slightly softer than expected, execution remains strong in the core Supermarkets division. […] Despite the slight downgrade to earnings, our target price remains unchanged at $22.90 due to a roll-forward of our valuation to FY27 forecasts. With a 12-month forecast TSR of 15%, we upgrade our rating to ACCUMULATE (from HOLD).

In our view, COL continues to perform well with key Supermarkets metrics such as customer scores, sales growth, cost discipline and store execution remaining solid. We hence view the recent share price pullback as an attractive entry point.

Endeavour Group Ltd (ASX: EDV)

This drinks giant is going through a tough period. And while Morgans has seen a few positives, it thinks investors should keep their powder dry until at least its investor day next month.

The broker has put a hold rating and $3.65 price target on Endeavour’s shares. It said:

There were no major surprises in EDV’s 1H26 result following the company’s trading update in January. While EDV continues to work on its refreshed strategy with further details to be provided at an investor day on 27 May, management confirmed that the combined Retail and Hotels portfolio will be retained. Management also noted that they will continue investing in Dan Murphy’s to restore its price leadership, while accelerating hotel renewals and electronic gaming machine (EGM) replacements. We decrease FY26-28F underlying EBIT by between 0-1%. Our target price falls to $3.65 (from $3.70) and we retain our HOLD rating.

Rio Tinto Ltd (ASX: RIO)

Finally, Rio Tinto shares are fairly valued according to Morgans following a recent pullback.

This has seen the broker put a hold rating and $147.00 price target on the mining giant’s shares. While it is a fan of the company, it just isn’t cheap enough to call it a buy yet. It explains:

We upgrade RIO from TRIM to HOLD with a revised target price of A$147 (prior A$146). The recent share price pullback closes the valuation stretch, while a lift in our medium-term iron ore assumption from US$80/t to US$85/t provides a firmer earnings floor. RIO remains a top-tier diversified miner. Not cheap enough for a BUY, but the pullback removes the overshoot that justified TRIM. Iron ore earnings platform, copper and aluminium leverage, and lithium optionality, RIO represents an attractive mix with good execution in the Pilbara and Oyu Tolgoi.

The post Buy, hold, sell: Coles, Endeavour, and Rio Tinto shares appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares hitting 52-week lows amid today’s market rally
• The reliable ASX dividend shares I’d buy with $10,000
• Experts name 3 ASX shares to sell
• How did these ASX defensive shares hold up in March?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Endeavour Group. 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.