Category: Stock Market

Guzman Y Gomez (ASX: GYG), Tuas Ltd (ASX: TUA) and Appen Ltd (ASX: APX) shares are turning head today.

Two of the popular stocks are charging ahead of the 0.6% gains posted by the S&P/ASX 200 Index (ASX: XJO) as we head into the Friday lunch hour, while one is mired in the red.

Here’s what’s catching investor interest.

Appen shares rocket on bullish AI outlook

Appen shares are off to the races today.

At time of writing, shares in the ASX All Ords AI applications data solutions provider are trading for $1.27 apiece up 13.4%.

The stock is turning heads following its annual general meeting (AGM) today.

Amid the ongoing artificial intelligence revolution, Appen CEO Ryan Kolln noted, “Appen plays a critical role in the AI ecosystem by providing high quality data that is used to build and monitor AI models.”

Pleasingly, the ASX tech stock also reaffirmed its fully year FY 2026 revenue guidance to be in the range of $270 million to $300 million. That compares to FY 2025 revenue of $231 million.

“We remain confident in the AI data market and in Appen’s ability to meaningfully contribute to the development of leading foundation models,” Kolln said, offering a bullish outlook for Appen shares.

Tuas shares sink further on axed M1 acquisition

Tuas shares are sliding today.

Shares in the ASX 200 Singapore-based telecom stock are down 1.3%, changing hands for $2.28 each.

This comes after the company announced the termination of its agreement to acquire Singapore telecom company M1 Limited. Tuas had reported its intentions to acquire M1 last year.

Today, management said that with several conditions precedent remaining unfulfilled by the required date, the company would not move forward with that purchase.

Tuas shares closed down a sharp 16.9% on Wednesday, when news broke that the company’s SIMBA mobile business “may have been using radio frequency bands that it was not authorised to use”.

Which brings to…

Guzman Y Gomez shares surge on US exit news

Joining Tuas and Appen shares in turning heads today we find Guzman Y Gomez shares.

Shares in the ASX 200 Mexican fast food restaurant chain are up 15.4% at time of writing, swapping hands for $20.87 apiece.

Investors are piling into Guzman Y Gomez shares after the company reported that it was exiting the United States market, where it’s been struggling to achieve sales growth.

But investors look to applauding the move, with management stating that the company’s Australian business is in “a solid position, with strong growth, world class unit economics and a significant network growth opportunity”.

With renewed focus on Australia, Guzman Y Gomez increased its full year FY 2026 Australia Segment earnings before interest, taxes, depreciation and amortisation (EBITDA) guidance to around $85 million. That’s 29% higher than FY 2025 earnings in Australia.

The post Why is everyone talking about Guzman Y Gomez, Tuas and Appen shares on Friday? appeared first on The Motley Fool Australia.

More reading

• 7 ASX shares with strengthened buy ratings this week
• This ASX AI stock is surging 9% today after a wild month
• Why are Guzman Y Gomez shares surging more than 15% higher?
• Tuas terminates M1 acquisition
• Guzman y Gomez exits US market, boosts Australia growth outlook

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 Appen. 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 diversified industrial company SGH Ltd (ASX: SGH) held an investor day this week, which gave analysts the opportunity to get a good handle on how the company is travelling.

Macquarie has issued a research note to its clients following the ASX 200 company’s presentations, and it’s fair to say they liked what they saw.

Macquarie said the company reiterated its full-year EBIT growth guidance of low to mid-single digits.

Disciplined growth

The Macquarie analyst team added:

SGH’s drive toward continuous improvement across its businesses remains a core tenet, seeking incremental gains at scale across businesses. For Boral, it means EBIT margins >15%, Coates seeks to drive further gains in time utilisation from the current 62% and WesTrac to extract further aftermarket service productivity. AI is seen as a key enabler of execution.

Macquarie said SGH had been successful over time in acquiring and improving assets, then deleveraging and acquiring again.

They said it was clear that “SGH seeks to continue this formula, with an emphasis on Australia, even if it is open to offshore opportunities too – this is a shift in intent, without any specifics”.

They added:

The group seeks EBIT growth of 10% through the cycle, balancing organic and inorganic growth roughly equally, on average. SGH sees identified growth opportunities in Property development, Crux, data centre build-out and exposure to growth thematics in infrastructure (and residential building when the cycle improves), mining production and energy.

Macquarie said while macroeconomic conditions remained complex, SGH’s execution remains strong, “and Boral likely continues to support the majority of near-term growth”.

They also said they remained focused on the company’s M&A strategy.

Macquarie increased its price target on SGH marginally from $50.35 to $50.40, compared with the current share price of $41.90.

Gas focus

Fellow broker RBC Capital Markets also recently released a report on SGH, with a price target of $47.

RBC argued that a key to the stock’s rerating would be the company’s interest in the Crux project in Western Australia, a joint venture with global giant Shell.

As RBC says in a report published this week:

We believe SGH is likely to make an announcement on Crux, a gas project that it has a 15.5% stake in (Shell owns the balance) that will begin backfilling volumes in the Prelude Floating LNG terminal, which we believe will act as a positive catalyst for the stock. We conservatively expect the project to start producing gas in late (2H28), and have taken the view that it will hit full production in FY30.

RBC estimates that Crux would generate $350 to $375 million in EBITDA to SGH each year, “yet consensus forecasts show no step-change in group earnings through the ramp period”.

SGH is valued at $16.74 billion.

The post How high does Macquarie think SGH shares will go? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• How high does RBC Capital think SGH shares will go?

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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 are higher on Friday after a strong lead from Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) rose 0.55% to a record close of 50,381.41 points overnight.

The US market surged as oil prices dropped amid hopes of a peace deal between the US and Iran soon.

Meanwhile, ASX 200 shares are up 0.53% to 8,668.2 points at the time of writing.

However, the ASX 200 remains in the red, down 0.71%, for the calendar year to date.

Amid volatile trading conditions, brokers have reduced their ratings on several ASX 200 shares this week.

Let’s take a look.

ASX 200 shares downgraded this week

Telstra Group Ltd (ASX: TLS)

The Telstra share price is $5.43, down 0.7% today.

The ASX 200 telco share has risen 15% over the past 12 months.

Macquarie downgraded Telstra shares from outperform to neutral today.

The broker shaved its 12-month price target by 1.2% to $5.57.

This suggests just 4% upside ahead.

IAG Australia Group Ltd (ASX: IAG)

The IAG share price is $7.87, down 3.5% today.

Over the past year, this ASX 200 financial share has fallen 10%.

Citi downgraded IAG shares from buy to hold with an $8.50 price target on Friday.

This still implies a potential 8% upside ahead.

Brambles Ltd (ASX: BXB)

The Brambles share price is $16.77, down 1.2% today.

Over the past month, Brambles shares have fallen 26%.

Morgans downgraded the ASX 200 industrial share from accumulate to hold on Tuesday.

The broker also reduced its 12-month price target from $25.50 to $18.70.

This still implies a potential 11% upside ahead.

Nick Scali Ltd (ASX: NCK)

The Nick Scali share price is $13.20, down 3.6% today.

Over the past six months, this ASX 200 retail share has fallen 43%.

Jefferies downgraded Nick Scali shares from buy to hold on Friday.

Analyst Michael Simotas forecasts lower profits ahead due to falling consumer sentiment amid higher interest rates and proposed changes to capital gains tax (CGT) in the Federal Budget.

Simotas attributed his profit forecast downgrades to “operating deleverage in Australia, New Zealand and U.K. due to softening macroeconomic conditions and given Nick Scali’s sales are strongly correlated to housing market”.

The broker slashed its 12-month price target by 44% to $14 per share.

This indicates only a small potential uplift ahead.

Elders Ltd (ASX: ELD)

The Elders share price is $5.77, up 2.7% today.

This ASX 200 agribusiness has lost 23% of its market valuation over the past six months.

Canaccord Genuity downgraded Elders shares to hold after the company released its 1H FY26 results.

The broker cut its 12-month target from $8.64 to $5.34.

This suggests a potential 7% downside ahead.

The post 5 ASX 200 shares downgraded by the experts this week appeared first on The Motley Fool Australia.

More reading

• Here’s a 9% ASX dividend stock to consider for a monthly passive income
• Should I invest $5,000 in Telstra shares before the end of May?
• 2 ASX 200 shares I’d buy today and hold for years
• 3 ASX stocks expected to increase their dividends in 2026
• Brokers say these ASX 300 shares are too cheap to ignore

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen 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 Jefferies Financial Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended Elders and Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 defence stock Codan Ltd (ASX: CDA) shares are adding to their huge run on Friday after investors were handed another defence technology update.

At the time of writing, the Codan share price is up 2.60% to $40.64.

The move continues a remarkable stretch for shareholders. The ASX 200 stock has gained around 40% in 2026 and more than 130% over the past year.

Codan has long been known for its metal detection business, but its defence and communications exposure is getting a lot more attention lately.

Here’s what was announced.

Codan adds another US defence specialist

According to the release, Codan’s wholly owned subsidiary, DTC Communications, has entered into a binding agreement to acquire Adaptive Dynamics.

Adaptive Dynamics is a US-based engineering company that develops technology for mission-critical communications.

Its main focus is anti-jamming and interference mitigation. The technology is designed to help communications systems keep working when signals are being disrupted, blocked, or attacked.

This can be useful in defence and national security settings, where secure communications are critical and operating conditions can be difficult.

Adaptive Dynamics also works in Assured Positioning, Navigation and Timing, known as APNT.

These systems help maintain reliable location, navigation, and timing data when normal signals are under pressure.

Codan said Adaptive Dynamics has more than 20 years of experience in advanced algorithms and radio frequency technologies.

Its capabilities include interference cancellation, signal enhancement, and adaptive filtering.

The company said the acquisition is expected to improve DTC’s technical capabilities in unmanned systems and next-generation defence programs.

The price tag and deal structure

The acquisition consideration totals about $21 million.

This includes upfront and contingent payments, subject to agreed technology development and integration milestones over the next 2 years.

Codan also said a tiered royalty payment will be payable on technology licences sold over the 5 years after completion.

The transaction is expected to be earnings neutral in the first year of ownership.

Management said the main focus will be integrating Adaptive Dynamics’ technology into DTC’s existing product portfolio.

Completion is expected in early H1 FY27, subject to the typical regulatory conditions.

What this adds to Codan

The deal is not huge compared with Codan’s current market value, which sits above $7.3 billion.

But investors are likely looking at what Adaptive Dynamics adds to the business.

The ASX 200 defence stock has been building its communications division through DTC and Zetron, while Minelab remains its best-known metal detection business.

Adaptive Dynamics gives DTC more specialist defence technology at a time when secure communications are getting more attention from the current geopolitical landscape.

DTC president and executive general manager Paul Sangster said the acquisition strengthens the company’s ability to deliver communications systems that operate in difficult conditions.

He also said the technology adds to DTC’s positioning in next-generation defence opportunities requiring resilient communications, electronic warfare resilience, AI-based integration, and mission assurance.

The post This red-hot ASX 200 defence stock is rising again. Here’s why appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Cleanaway, Codan, and Tuas shares
• This ASX tech stock has exploded 137%, time to cash out?
• 5 ASX shares with upgraded ratings this week
• ASX tech shares vs. ATEC ETF: How they fared during sector downturn
• Here are the top 10 ASX 200 shares today

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.

It has been another busy week for many of Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

Bega Cheese Ltd (ASX: BGA)

According to a note out of Morgan Stanley, its analysts have initiated coverage on this diversified food company’s shares with an overweight rating and $6.70 price target. The broker believes that Bega Cheese is good value at current levels. It highlights the undemanding valuation multiple its shares trade on and positive earnings growth outlook. In fact, the broker believes Bega Cheese could grow earnings per share at an average of 20% per annum between FY 2025 and FY 2028. This is being supported by increased protein consumption, cost savings, and optimisations. The Bega Cheese share price is trading at $5.42 on Friday.

Energy One Ltd (ASX: EOL)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this software provider’s shares with a trimmed price target of $17.10. Bell Potter believes artificial intelligence (AI) displacement concerns are unwarranted. This is because Energy One serves a deeply regulated and sticky industry with mission-critical solutions. In addition, it highlights that tailwinds remain regarding growing complexity in energy markets, surging European trading volumes, and increasing distributed energy resources. It believes these trends reinforce the strength of the company’s positioning as a one-stop-shop provider of software and services, rather than a collection of individual tools. It also notes that it remains attracted to the company’s strong growth profile, expanding margins, and impressive SaaS metrics. The Energy One share price is fetching $12.21 at the time of writing.

Temple & Webster Group Ltd (ASX: TPW)

Another note out of Bell Potter reveals that its analysts have retained their buy rating on this online furniture retailer’s shares with a reduced price target of $7.00. The broker has reduced the target multiples for Temple & Webster’s shares to 9x EV/EBITDA. Despite this, the broker still sees plenty of value in Temple & Webster’s shares. In fact, it notes that the continuous decline in the share price means that its shares are back at the levels of the last profit optimisation cycle in 2022. However, this time around its shares are trading on a more attractive EV/sales multiple. Overall, it sees long term valuation support in a high-quality ecommerce retailer with range, pricing/scale advantages, AI/data capability backed by a strong balance sheet to take up inorganic growth opportunities. The Temple & Webster share price is trading at $5.09 this afternoon.

The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia.

More reading

• This mid-cap ASX tech share could be 30% higher in 12 months
• These ASX 200 shares have been smashed. I think patient investors should pay attention
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Sell alert! Why this expert is calling time on Temple & Webster and James Hardie shares

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

It has been a time to own shares of ASX mining giant Rio Tinto Ltd (ASX: RIO). This diversified mining stock has been delivering for investors in spades of late.

To illustrate, consider that the Rio share price has risen 36.5% in 2026 alone. That includes today’s healthy 1.3% bump that we are seeing at the time of writing to $184.02 a share.

Zooming out, Rio shares are also up an even more impressive 65% over the past 12 months. Rallying commodity prices and high inflation expectations seem to be responsible for this desire from investors to buy mining stocks like Rio.

But many ASX investors don’t hold Rio Tinto shares for the capital growth potential. Rio has always been a popular choice for dividend investors, too. That’s thanks to a long history of Rio funding large, and usually fully franked, dividend payments to shareholders. Being a mining stock, these payments do tend to be cyclical. But they can be massive if Rio is enjoying an upswing in commodity markets.

With that in mind, let’s dive into what kind of dividends one could expect from owning Rio shares today.

Rio Tinto shares: What kind of dividends are on offer today?

Well, at the current share price, Rio Tinto stock is trading on a trailing dividend yield of 3.2%. This hails from the two dividend payments that Rio has made over the past 12 months. The first was the 2026 interim dividend, paid out last month, worth $3.67 per share. The second, the interim dividend from September, was worth $2.22 per share.

Both dividend payments came with full franking credits attached, as is Rio’s habit. However, both dividends were below those received over the prior 12 months.

Saying all of this, 3.2% is not what investors should expect if they buy Rio shares today, as it is only a trailing dividend yield metric.

We can’t know for sure what kind of income any ASX share will pay before it tells us.  We can look at what’s likely to happen, though. Rio’s last two payments were historically high for the miner. However, the current yield doesn’t reflect that, thanks to the massive share price appreciation Rio has enjoyed over the past 12 months. These are all signs that Rio is nearing the top of its cycle, at least in my view.

These factors should make investors think twice about buying Rio shares for income today. There’s little doubt that this mining stock will continue to be a reliable dividend payer going forward. It’s just a question of whether buying Rio shares after the 65% rise since this time last year is the best entry point for income investors.

The post Buying Rio Tinto shares? Here’s the yield you’ll get today appeared first on The Motley Fool Australia.

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• BHP shares vs Rio Tinto shares: Which miner looks better?
• How many Rio Tinto shares do I need to buy for $10,000 a year in passive income?
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Beating the market is a challenging proposition, so it pays to turn to the experts if you’re looking for shares which might be undervalued.

I’ve had a look at the research coming out of Macquarie over the past week and selected three ASX shares which the analyst team thinks will do well, and which they believe can deliver about 50% upside, and 77% in one case.

Let’s see who they’re tipping to perform.

James Hardie Industries Plc (ASX: JHX)

The building products maker reported its full year results this week, and the shares initially fell after it was revealed  net profit attributable to shareholders was down 75% to US$104 million.

But the analysts have looked through the results, and picked up on the fact that underlying EBITDA was above the guidance range, and the synergies from the company’s takeover of US company AZEK were being realised.

 The Macquarie team said:

Cost and operational execution was solid, with productivity benefits from operational improvements and plant optimisation (including a coming ~$25m from closures) helping offset volume pressure.

Macquarie said there were some soft elements in the business, and the US market looked challenging.

They reduced their price target on the company to $39.60, but this remains well above the $28.87 the shares were changing hands for on Friday.

Jumbo Interactive Ltd (ASX: JIN)

Macquarie has also cut its price target for this ASX share, but again, the price target is still much higher than where the shares are trading right now.

Jumbo is a lotteries technology and management company, and Macquarie said trackable Australian lotteries volumes were down 2% year on year.

Macquarie said the majority of Jumbo’s revenue comes from a reseller agreement with Lottery Corp, which is up for renewal in August 2030.

The analyst team said Jumbo shares were trading on a valuation which suggested the renewal did not take place, “providing a free option on the outcome”.

Macquarie values Jumbo shares at $10.50 compared with $7.08 currently.

Web Travel Group Ltd (ASX: WEB)

Once again, Macquarie has downgraded its price target for this ASX share, but their target is particularly bullish on this travel operator.

Macquarie said Web Travel Group is exposed to the Middle Eastern market which presented risk at the moment, “as traveller caution remains high, and the region is having difficulties restimulating demand”.

The Macquarie team also said the company was exposed to foreign exchange headwinds from the strong Australian dollar and also mentioned the uncertainty around a recently-revealed audit of the company’s Spanish operations.

They said:

Whilst near-term visibility is low due to travel market disruption and Spanish audit uncertainty, we remain constructive on WEB’s ability to improve margins when the travel market recovers, as it scales over the medium term.

Macquarie has a price target of $4.34 on Web Travel Group shares compared with $2.37 currently.

The post Macquarie names 3 ASX shares to buy for 40%+ returns appeared first on The Motley Fool Australia.

More reading

• 7 ASX shares with strengthened buy ratings this week
• Here are the top 10 ASX 200 shares today
• How high could James Hardie shares go? Brokers have their say
• Buy, hold, sell: James Hardie, TechnologyOne, and Webjet shares
• Sell alert! Why this expert is calling time on Temple & Webster and James Hardie 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 positions in and has recommended Jumbo Interactive. The Motley Fool Australia has recommended Jumbo Interactive. 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 are 0.5% higher at 8,662.2 points on Friday.

Among the 11 market sectors, materials is in the lead today, up 1%, while utilities is the laggard, down 1%.

Let’s take a look at some stocks that have received renewed buy recommendations from the experts this week.

Tuas Ltd (ASX: TUA)

The Tuas share price is $2.27, down 1.7% today.

The ASX 200 telco share is down 63% since news dropped that the company has allegedly been using spectrum it doesn’t own.

Morgan Stanley kept its buy rating on Tuas shares with a $10 target this week.

This implies a massive potential capital gain of 325% over the next year.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

The Dalrymple Bay Infrastructure share price is $5.60, down 0.8% today.

Over the past six months, this ASX 200 industrial share has leapt 25%.

Citi reaffirmed its buy rating and raised its 12-month target from $5.75 to $6.10 on Thursday.

This suggests a potential 8% upside ahead.

Graincorp Ltd (ASX: GNC)

The Graincorp share price is $4.75, up 0.9% today.

This ASX 200 agribusiness share has tumbled 45% over six months.

Canaccord Genuity renewed its buy rating with a $6.88 target on Monday.

This implies potential capital growth of 45% over the next year.

Megaport Ltd (ASX: MP1)

The Megaport share price is $12.98, up 1.2% today.

Over the past month, this ASX 200 technology share has ripped 48% higher.

Morgans renewed its buy rating and raised its target from $13.50 to $15.50 this week.

This suggests a potential 19% upside ahead.

The broker commented:

MP1 has announced a series of large contract wins which are financially and strategically significant.

MP1 will use its globally unique communications platform to connect servers and GPU clusters in numerous DCs across the US.

DC power constraints are a growing issue and MP1 was uniquely able to stitch together multiple sites to provide consolidated inference solutions.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The Electro Optic Systems share price is $8.98, up 12% on Friday.

Over the past month, this ASX 200 defence share has fallen 16%.

Canaccord Genuity renewed its buy rating and raised its target from $12.50 to $14 this week.

This suggests a potential 24% upside ahead.

Charter Hall Group (ASX: CHC)

The Charter Hall share price is $19.35, up 0.5% today.

This real estate investment trust (REIT) has declined 21% over the year to date.

Morgan Stanley reiterated its buy rating with a price target of $26.89 on Monday.

This implies a potential near-40% upside ahead.

James Hardie Industries plc (ASX: JHX)

The James Hardie share price is $29.10, up 4% today.

This building materials supplier is the largest non-mining company in the ASX 200 materials sector.

James Hardie shares have fallen 19% over 12 months.

This week, James Hardie released its FY26 results.

Amid subdued construction activity, broker Morgans said FY26 could be “chalked up as a transformational but financially dilutive year, while FY27 is about margin and cash-recovery driven by synergies rather than any improvement in the housing market”.

Morgans reiterated its buy rating with a price target of $39.

This implies potential capital gains of 34% ahead.

The post 7 ASX shares with strengthened buy ratings this week appeared first on The Motley Fool Australia.

More reading

• Tuas terminates M1 acquisition
• Which of these shares hitting 52-week lows can bounce back?
•  3 ASX shares that could be future blue chips
• 3 ASX 200 shares I’d buy before the market wakes up
• Here are the top 10 ASX 200 shares today

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems and Megaport. 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.

Investors will have to wait until next week to see where Arafura Rare Earths Ltd (ASX: ARU) shares trade next.

The ASX rare earths stock was placed in a trading halt on Friday after unveiling a major funding update for its Nolans project in the Northern Territory.

Arafura shares last changed hands at 31 cents, leaving the stock up around 15% in 2026 and almost 90% over the past year.

After such a strong run, investors now have a major capital raising to weigh up.

Let’s take a closer look.

A big raise at a discount

According to the release, Arafura has launched a $350 million institutional placement and a $25 million share purchase plan (SPP).

The placement will be priced at 26 cents per new share.

That is a 16.1% discount to the company’s last closing price of 31 cents and a 15.5% discount to its 5-day volume weighted average price.

The placement will be split into 2 tranches. The first is expected to raise $175.5 million, while the second is expected to raise $174.5 million.

Existing eligible shareholders will also be able to apply through the SPP at the same 26 cents price.

Arafura’s largest shareholder, Hancock Prospecting, has committed to subscribe for about $85 million under the placement.

After the raising, Hancock is expected to hold around 17.5% of the company.

What the money is funding

The money is aimed at pushing the Nolans Project in the Northern Territory closer to construction.

Arafura says the placement, together with existing cash and other funding commitments, will fully fund the equity component needed for the project.

Once the placement is settled, the company expects to have a pro forma cash balance of about $911 million.

The update follows Arafura’s final investment decision (FID) on Nolans, which the company describes as the world’s third fully integrated rare earth ore-to-oxide operation outside mainland China.

Rare earths are used in electric vehicles, wind turbines, defence, robotics, phones, medical imaging, and other technology.

Arafura says Nolans is construction-ready, has approvals in place, and has a mine life of more than 38 years.

The company is targeting the start of construction around September 2026.

Funding support takes shape

Arafura says the raising will also help satisfy equity conditions linked to government-backed funding support in Australia and Germany.

The company also pointed to further progress with offtake, saying it has now secured about 93% of its binding offtake target.

This includes agreements and support involving customers and agencies across Europe, Korea, Australia, and the United States.

Still, Nolans is a big project to deliver.

It will require major capital spending, careful construction, and higher rare earths prices that support development.

The post This ASX rare earths stock is halted after a monster 12-month run appeared first on The Motley Fool Australia.

More reading

• This ASX rare earths stock is rocketing 14% on big news
• Why Arafura, Aristocrat, BHP, and Perenti shares are racing higher today
• Up 106% in a year, why is this ASX 300 rare earths stock leaping higher again today?

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.

I would not say any ASX growth share is guaranteed to double in value. Far from it. Valuations can change, earnings can disappoint, and even strong companies go through rough patches.

But I think the three ASX growth shares in this article have the potential to grow at a rate that could support a doubling in under seven years.

That would need a return of just over 10% per year. Here’s why I think they could achieve this.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is one of the more interesting global retail growth stories on the ASX.

The jewellery retailer has already expanded into more than 50 markets, but I do not think the store rollout opportunity is finished. In fact, that is the main reason I think the business could still have a lot of growth ahead.

Lovisa’s model is attractive because it is simple, repeatable, and relatively capital-light compared with many larger-format retailers. It sells affordable fashion jewellery, has small stores, and can take the format into many different shopping centres and markets around the world.

It opened 85 new stores in the first half of FY26, with strong growth across Europe and the Americas.

Importantly, it achieved this with an attractive margin profile. Lovisa reported an underlying gross margin of 82.9% in the half. That gives the business a lot of room to invest in growth while still producing strong profitability.

There are risks. Retail execution matters, consumer spending can weaken, and international expansion is never easy. But if Lovisa can keep opening profitable stores and improving performance in existing markets, I think the business could be materially larger by the early 2030s.

Breville Group Ltd (ASX: BRG)

Breville is another ASX growth share I think has the right ingredients to outperform.

This is not just an appliance business. I think of Breville as a premium global consumer brand built around product quality, design, and the at-home coffee trend.

Coffee remains a major part of the growth story. Many consumers are still willing to spend on better machines, grinders, and accessories if it improves their daily routine. Breville has built a strong position in that market, particularly with its espresso machine range.

The company’s record first-half performance was driven by double-digit revenue growth led by coffee. While tariffs have created pressure, Breville has been working through production diversification, pricing, and distribution mix to reduce the impact.

This is not a risk-free story either. Currency, tariffs, freight, consumer weakness, and competition can all affect earnings. But I think Breville has the kind of brand strength and global runway that could support strong long-term compounding if management keeps executing well.

Netwealth Group Ltd (ASX: NWL)

Netwealth is the third ASX growth share I think could double in under seven years.

The wealth platform business benefits from a powerful long-term trend. Financial advice is becoming more complex, and advisers need efficient platforms to manage client portfolios, reporting, administration, managed accounts, and investment options.

Netwealth has built a strong position as an independent platform, and its recent quarterly update showed the momentum is still there.

Total funds under administration reached $125.8 billion at the end of March, up 20.9% on the prior corresponding period. The company also reported $4 billion of net flows for the quarter, which helped offset weaker market movements.

That tells me the platform is still winning support from advisers and clients, even during volatile markets.

The key risk for me is valuation. High-quality platform businesses often trade on demanding multiples, so earnings need to keep growing. Competition from other platforms also remains a factor.

But if Netwealth can keep winning flows, adding accounts, and increasing platform scale, I think the long-term opportunity remains attractive.

Foolish Takeaway

I would not buy these ASX growth shares expecting a smooth ride. Lovisa depends on retail execution, Breville is exposed to global consumer demand, and Netwealth needs to keep attracting adviser flows in a competitive market.

But I think all three have genuine growth runways.

A doubling in under seven years is a high bar, but it does not require miracles. It requires strong businesses to compound faster than 10% per annum. In my view, these three ASX shares have enough quality, market opportunity, and growth potential to make that outcome possible.

The post 3 ASX growth shares I think can double in under 7 years appeared first on The Motley Fool Australia.

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