Category: Stock Market

Catapult Sports Ltd (ASX: CAT) shares have been in fine form this week.

So much so, the ASX tech stock is up 23% since Tuesday’s close, including an 18% gain on Wednesday.

Is it too late to invest? Let’s see what Bell Potter is saying about the sports technology company.

What is the broker saying about this ASX tech stock?

Bell Potter was pleased with Catapult’s performance in FY 2026. It highlights that the company’s results were ahead of expectations for everything except its annualised contract value (ACV). It said:

FY26 management EBITDA – the key earnings metric – of US$24.7m was 8% above our forecast of US$23.0m and 10% above consensus of US$22.4m. Notably, the guidance was 50% growth and it came in at 67%. The beat was driven by a 2% beat at revenue (US$140.7m vs BPe US$137.9m) and a 90bp beat at the margin (17.6% vs BPe 16.7%).

ACV of US$133.8m was close to in line with our forecast of US$133.6m and consistent with the guidance of b/w US$133-134m. Free cash flow before transaction costs of US$6.6m was also ahead of our forecast of US$5.6m and the guidance of US$5-6m. Catapult almost achieved the Rule of 40 with a result of 36% which excludes the impact of the IMPECT and Perch acquisitions (46% including).

The broker also highlights that the ASX tech stock’s guidance for the year ahead was slightly ahead of expectations. This has seen Bell Potter lift its estimates slightly. It adds:

Catapult provided its usual guidance for the year ahead of strong ACV growth, continued improvement in margins, and higher free cash flow. We have upgraded our FY27 and FY28 management EBITDA forecasts by 6% and 3% which has mostly been driven by increases in our margin estimates. We have also upgraded our FY27 and FY28 ACV forecasts by 2% and 1% and this equates to ACV growth of 17% and 16% which is below the traditional 18-22% target but is obviously getting more difficult as the number gets larger. We now forecast free cash flow of US$10m in FY27 and US$14m in FY28 which is consistent with the guidance.

More upside to come

According to the note, the broker has retained its buy rating on the ASX tech stock with an improved price target of $4.65 (from $4.50).

Based on its current share price of $3.58, this implies potential upside of 30% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

There is perhaps a lack of short term catalysts for the company but the stock does look reasonable value on an FY27 EV/EBITDA multiple of c.20x (based on management EBITDA) and we do expect another year of strong growth. The company also has a strong Balance Sheet with cash forecast to rise to c.US$60m at year end and so while we do not expect any acquisitions in the near term we do see potential for further M&A in the short to medium term.

The post Is this ASX tech stock a buy after rocketing 18% yesterday? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why Catapult, GenusPlus, Meeka Metals, and TechnologyOne shares are pushing higher today
• Why are Catapult Sport shares jumping 18% today?
• Catapult Sports reports record revenue in FY26
• 5 things to watch on the ASX 200 on Wednesday

Some of the best buying opportunities appear while the market is still unconvinced.

That is why I think Treasury Wine Estates Ltd (ASX: TWE) shares are worth a closer look today.

The ASX 200 share has been through a difficult period and is down almost 50% over the past 12 months. 

Consumer demand has been uneven, China has taken time to rebuild after wine tariffs were removed, and investors have become more cautious.

But I think that is exactly what makes the share interesting.

Treasury Wine does not need everything to look perfect today. It needs its best brands, distribution, and key markets to improve over time. If that happens, I think the current share price could look attractive in hindsight.

A global wine business with valuable brands

Treasury Wine is not just a volume wine producer.

Its strongest asset is its portfolio of premium and luxury brands, led by Penfolds. This gives the company exposure to a part of the wine market where brand, scarcity, reputation, and distribution can all support stronger margins.

That is what interests me.

Penfolds is one of the few Australian wine brands with genuine global recognition. It has a long history, a strong luxury position, and appeal across markets such as Australia, Asia, and the United States.

Premium wine can still be cyclical. Consumers and distributors can pull back when conditions are tougher. But I think strong luxury brands can recover well when confidence returns.

China could still be an important swing factor

One of the biggest moving parts for Treasury Wine is China.

The removal of tariffs on Australian wine was an important step, but rebuilding a market is not instant. Distribution, inventory, consumer demand, and brand momentum all take time to normalise.

I think investors may need patience here.

China does not have to return to its previous peak immediately for Treasury Wine to benefit. A gradual recovery in demand for Penfolds and other premium wines could still improve earnings and investor confidence over the next few years.

For me, this is a key reason the stock looks interesting before the turnaround is obvious.

Once the market has clear evidence that China is firing again, the share price may already have moved.

A portfolio with more than one lever

Treasury Wine also has exposure beyond China.

The company has been building its presence in the United States, including through premium wine assets and a broader focus on luxury and premiumisation.

That gives the business more than one way to grow.

I also like the fact that this is a company with tangible assets, established brands, global distribution, and a product category that has existed for centuries. It is not trying to invent demand from scratch.

The challenge is execution. Management needs to manage inventory carefully, protect brand equity, improve returns, and show that the portfolio can deliver better growth.

That may take time, but I think the ingredients are still there.

Foolish Takeaway

Treasury Wine is not a clean momentum story today.

Investor confidence is low, and the business still has work to do in key markets.

But that is the point of the opportunity. If Penfolds keeps its luxury position, China continues to rebuild, and the US business improves over time, Treasury Wine could look like a very different investment in a few years.

I would not expect a smooth ride. But for patient investors willing to weather potential volatility, this could be the kind of ASX 200 share worth buying before confidence returns.

The post Down 50%: Why this ASX 200 share could be a smart buy before confidence returns appeared first on The Motley Fool Australia.

More reading

• 3 top ASX dividend shares to buy with $3,000
• 3 high-quality ASX shares to buy this week
• Why investors may regret ignoring this ASX wine stock today
• These are the 10 most shorted ASX shares
• Buy, hold, sell: GrainCorp, Treasury Wine, and Xero shares

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

Telstra Group Ltd (ASX: TLS) shares have dipped further into the red on Thursday morning.

At the time of writing, the shares have slumped 0.36% to $5.47 a piece. The decline follows a 1% drop on Wednesday.

The telecoms provider’s shares have had a good rally so far in 2026, however. The shares are up 12% year to date and 17% higher than this time last year.

Many are questioning whether the shares are now cooling or if there is still an upside ahead.

So, should I invest $5k in Telstra shares before the end of the month?

Market Index data shows brokers still rate the telco’s shares as a buy, but they tip an average 3% downside to $5.33 over the next 12 months, at the time of writing. 

TradingView data shows a similar analyst view. Of 15 ratings, only 4 have a strong buy stance, and another 11 have a hold rating. They have an average target price of $5.26, which implies a 4% downside over the next 12 months.

Either way, it doesn’t look like we’ll continue to see the same level of gains in Telstra shares that we’ve seen recently.

In fact, if these forecasts are correct, investors who buy $5,000 of Telstra shares today could soon be looking at a loss.

Here’s why.

What’s the latest from Telstra shares?

It looks like after this year’s share price rally, analysts view Telstra shares as fully valued. Or even perhaps a little overvalued.

Analysts at Catapult Wealth also recently highlighted that while mobile price rises are expected to support Telstra’s revenue growth this year, there is uncertainty around spectrum license fees, which could remain a medium-term headwind for the company.

But upsides and potential target prices aren’t the only reasons investors should consider holding Telstra shares.

What about the telco’s passive income play?

Telstra is a dominant Australian telecommunications company. It owns and operates the nation’s largest mobile network and is a major fixed-line internet provider. And this makes it a classic passive income play.

The necessity of the internet and mobile phones means the company is well-positioned to perform well, regardless of the stage of the economic cycle or how the ASX is faring overall.

Telstra’s defensive nature also means it can pay shareholders a consistent, reliable passive income. 

The telco most recently paid its interim dividend of 10.5 cents per share, 90.48% franked, in March. The telco is forecast to pay a total dividend of 21 cents for FY26 (up from 19 cents in FY25). This translates to a forward dividend yield of around 3.9% excluding franking credits, at the time of writing. 

The post Should I invest $5,000 in Telstra shares before the end of May? appeared first on The Motley Fool Australia.

More reading

• 3 ASX stocks expected to increase their dividends in 2026
• 3 strong ASX 200 shares for retirees to buy and hold
• Are Telstra and these ASX shares a buy, hold or sell after hitting new yearly highs?
• Bell Potter says this small-cap ASX share could rise 50%
• Why these ASX income stocks could be better than term deposits

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

The S&P/ASX 200 Index (ASX: XJO) is racing ahead today.

In morning trade on Thursday, the benchmark Aussie index is up 1.7% at 8,639.8 points. That will come as welcome news to investors after the index dropped 1.3% yesterday to plumb a new seven-week closing low.

So, who do investors have to thank for today’s rebound?

ASX 200 lifts on Middle East peace hopes

Well, like it or not, today’s strong performance on the ASX 200 comes largely thanks to United States President Donald Trump.

Yesterday (overnight Aussie time), Trump lifted investor sentiment when he said that the conflict with Iran is in its “final stages”.

That’s important because, as you’re likely aware, the outbreak of the Middle East conflict at the end of February has sent global energy prices surging. That in turn has stoked inflation and pressured central banks, like our own RBA, to increase interest rates.

The Brent crude oil price fell around 5% on the news to US$105 per barrel. Gold, which tends to perform better in lower interest rate environments, gained 1.5% to US$4,545 per ounce.

In US stock markets, the S&P 500 Index (SP: .INX) closed up 1.1% on renewed hopes of a peace deal. The tech-heavy (and more interest rate sensitive) Nasdaq Composite Index (NASDAQ: .IXIC) closed up 1.5%.

Sounding a note of caution to US and ASX 200 investors about potentially premature euphoria over a lasting peace deal with Iran, strategist Louis Navellier said (quoted by Bloomberg):

Everyone wants to see this end, but negotiations so far have been far apart on key issues, with both sides expecting each other to blink first. Even if a deal is struck, it may take some time to be sure it won’t be violated for things to fully return to normal.

Now, here’s how some of the biggest names on the ASX are performing on hopes that the end of the war may be near.

What’s happening with the likes of CBA, BHP, Newmont, and Woodside shares?

Starting with today’s underperformers, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 1.6% following the overnight slide in the oil price.

Santos Ltd (ASX: STO) shares are down 1.3% at $7.99, and Woodside Energy Group Ltd (ASX: WDS) shares are down 2.3% at $31.74 each.

The gold miners, on the other hand, are enjoying the brighter outlook for the yellow metal, with the S&P/ASX All Ordinaries Gold Index (ASX: XGD) up 2.1% at the time of writing.

Newmont Corp (ASX: NEM) shares are up 2.1% at $149.63, and Evolution Mining Ltd (ASX: EVN) shares are up 3.7% at $11.79.

Many ASX tech stocks are also enjoying the prospect of potentially easing inflation, with the S&P/ASX All Technology Index (ASX: XTX) – which also contains some smaller tech companies outside of ASX 200 tech stocks – up 0.8%.

Shares in data centre operator NextDC Ltd (ASX: NXT) are up 3.1%, trading for $14.66 each, while shares in location sharing software developer Life360 Inc (ASX: 360) are up 3.3%, trading for $18.49 apiece.

Turning to the ASX 200 banks, Commonwealth Bank of Australia (ASX: CBA) shares are up 0.6% at $163.56, while Westpac Banking Corp (ASX: WBC) has gained 1.6% at $36.09 each.

And finally, the S&P/ASX 200 Resource Index (ASX: XJR) is also leaping higher today, up 1.8%.

BHP Group Ltd (ASX: BHP) shares are up 2.7% at the time of writing at $58.90, while Fortescue Ltd (ASX: FMG) shares are up 1% at $21.83 each.

The post Why is the ASX 200 going gangbusters on Thursday? appeared first on The Motley Fool Australia.

More reading

• IperionX expands U.S. titanium manufacturing with new six-axis press
• L1 Long Short Fund boosts dividend as returns eclipse market
• Contact Energy shares resume trading after 5% stake sale
• Northern Star Resources announces CEO succession plan
• 5 things to watch on the ASX 200 on Thursday

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 Life360. The Motley Fool Australia has positions in and has recommended Life360. 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.

Shares in both Hillgrove Resources Ltd (ASX: HGO) and Havilah Resources Ltd (ASX: HAV) are trading higher after the two companies struck a deal over a South Australian copper deposit.

The companies said in a joint statement to the ASX on Thursday morning that they had signed an agreement under which Hillgrove could earn an 80% interest in the Mutooroo Copper Project.

Hillgrove currently operates the Kanmantoo underground copper mine in the Adelaide Hills.

Hillgrove to earn in

Under the deal, Hillgrove can complete a prefeasibility study looking at the viability of processing Mutooroo ore through the Kanmantoo processing facility.

The companies said:

Hillgrove’s Kanmantoo processing facility provides a potential lower capital intensity and lower execution risk pathway to develop Mutooroo’s 192 thousand tonne of copper from the JORC Sulphide Mineral Resource Estimate. Subject to further test work and the outcomes of the PFS, Hillgrove believes Mutooroo has the potential to lift Hillgrove’s Cu production beyond 20kt per annum.

Hillgrove said the prefeasibility expenditure would be phased to mitigate risk and would be fully funded from cash flow.

Under the agreement, Hillgrove will initially issue $5 million in shares to Havilah and then invest up to $10 million in new drilling over a period of up to 24 months.

Hillgrove will earn its full 80% interest on a final investment decision to go ahead with the project, at which time it will pay Havilah a further $35 million, of which between 30% and 70% will be cash.

Project ticks the boxes

Hillgrove Chief Executive Officer Bob Fulker said:

Mutooroo’s high‑grade sulphide mineralisation, proximity to rail, and favourable logistics align strongly with Hillgrove’s centralised processing hub model. Importantly, the capital intensity could be potentially lower compared to a standalone development, and execution risk could potentially be materially reduced by leveraging infrastructure, approvals and operational capability we already have in place. This transaction provides Hillgrove shareholders with a lower risk, capital efficient growth option at a time when new copper discoveries are scarce, and development costs globally continue to rise. The staged PFS approach to be funded out of Hillgrove cashflow ensures disciplined capital deployment with limited cash drain, with expenditure ramping up only as key technical assumptions are validated.

Havilah Technical Director Chris Giles said the deal had the potential to substantially reduce execution risk for Havilah shareholders.

The Mutooroo project is in South Australia, about 60km southwest of Broken Hill.

It is about 16km from the Transcontinental railway line and Barrier Highway, providing direct access to established freight routes across South Australia, the companies said.

In early trade, Havilah shares were 7.4% higher at 65 cents, while Hillgrove shares were 4.7% higher at 4.4 cents.

The post Shares in these 2 ASX copper companies are charging higher after a new deal was announced appeared first on The Motley Fool Australia.

More reading

• Is this ASX tech stock a buy after rocketing 18% yesterday?
• Down 50%: Why this ASX 200 share could be a smart buy before confidence returns
• Should I invest $5,000 in Telstra shares before the end of May?
• Why is the ASX 200 going gangbusters on Thursday?
• Buy, hold, sell: James Hardie, TechnologyOne, and Webjet 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.

A number of updates have hit the wires this week and Morgans has been quick to run the rule over them.

Let’s see if the broker has responded positively to them. Here’s what the broker is saying:

James Hardie Industries plc (ASX: JHX)

Morgans was pleased with this building materials company’s FY 2026 result, highlighting that it was in line with consensus expectations.

And while market conditions remain weak, the broker is cautiously positive on its outlook and has named James Hardie shares as a buy with a $39.00 price target. It said:

FY26 result was in line with Consensus (and a slight beat vs prior guidance), while Consensus for FY27 was at the top end of guidance. To this end, the company is forecasting FY27 pro forma growth of 4-8%, with siding back to organic growth. Market conditions remain subdued, citing lower builder activity and affordability pressures – looking forward management assumes no market recovery in FY27.

As such, FY26 can 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. Buy retained, with a A$39.00/sh price target.

TechnologyOne Ltd (ASX: TNE)

This enterprise software provider’s performance in the first half of FY 2026 was in line with Morgans’ expectations.

In light of this and its strong sales pipeline, the broker has upgraded TechnologyOne’s shares to an accumulate rating with a $32.30 price target. It explains:

TNE’s 1H26 result came in largely as expected, albeit with some FX headwinds, which otherwise would have seen its underlying result land ahead of consensus. The group enters 2H26, with a strong pipeline of ‘Plus’ leads, which sees TNE well positioned to achieve the top end of its re-affirmed FY26 ARR/PBT Guidance. The pullback in TNE’s share price sees our TSR lift to 18% and we therefore move to an Accumulate rating with a $32.30 price target.

Webjet Group Ltd (ASX: WJL)

Morgans wasn’t overly impressed with this online travel agent’s FY 2026 results.

And with trading conditions set to remain challenging in FY 2027, the broker has reduced its estimates meaningfully.

As a result, the broker has retained its hold rating on Webjet’s shares with a heavily reduced price target of 40 cents. It said:

WJL’s FY26 result was weak but in line with guidance. FY26 was impacted by subdued trading conditions and material investment in the business. FY27 is going to be a particularly challenging year for WJL given the Middle East conflict, cost of living pressures, Virgin Australia materially reducing its commission and overrides and the RBA surcharging regulation changes.

We have made significant revisions to our already well below consensus forecasts. In the absence of corporate activity, shareholders will need to be patient given the current challenges WJL needs to overcome while investing in its business for longer term success. We retain a Hold rating with a new price target of A$0.40.

The post Buy, hold, sell: James Hardie, TechnologyOne, and Webjet shares appeared first on The Motley Fool Australia.

More reading

• Sell alert! Why this expert is calling time on Temple & Webster and James Hardie shares
• Why Morgans upgraded this ASX 200 share and downgraded another
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy now
• Why EOS, Newmont, Webjet, and WIA Gold shares are tumbling today

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

A strong share price run is not protecting IPD Group Ltd (ASX: IPG) shares from a heavy fall today.

The electrical solutions company is down 8.24% to $5.68 on Thursday after releasing its FY26 earnings guidance.

It has still been a big year for shareholders, with IPD shares up around 29% in 2026 and 60% over the past 12 months.

Here’s what the company told investors.

Guidance still points to growth

According to the release, IPD expects FY26 underlying EBITDA of between $54.5 million and $55.3 million.

At the midpoint, this represents growth of about 18% compared with FY25 statutory EBITDA.

The company also expects underlying EBIT of between $46.3 million and $47.1 million, which would be around 19% higher on the same basis.

Excluding the recently acquired Platinum Cables business, IPD is still expecting growth.

On that measure, underlying EBITDA is forecast to land between $50.5 million and $51.3 million, while EBIT is expected between $42.7 million and $43.5 million.

Both would be around 10% higher than FY25 statutory results.

The guidance is based on unaudited results for the 10 months to the end of April, along with management forecasts for May and June.

What’s driving the growth?

The update points to an improvement coming from more than one part of the business.

IPD said revenue is expected to rise in FY26, supported by strong growth across its core business and EX Engineering.

CMI Electrical is also expected to deliver a record result, with revenue forecast to move above the levels it was generating before IPD bought the business.

Data centre revenue is another area moving higher, with a 25% increase expected compared with the prior corresponding period.

Data centre demand is still attracting plenty of attention across the market, as businesses spend more on power, infrastructure, cloud computing, and AI-related capacity.

IPD also expects gross profit margins to improve through the second half.

The company said its order book is continuing to shift towards more complex and competitive work, which is helping margins.

Costs are also taking up a smaller share of revenue after IPD invested in the business.

What does IPD do?

IPD isn’t a household name for many retail investors, but it sits in a part of the market with several long-term tailwinds.

The company provides electrical products and services across power distribution, energy management, automation, industrial communications, hazardous area equipment, EV charging, and electrical engineering.

Its portfolio includes IPD, Addelec, EX Engineering, CMI Electrical, and Platinum Cables.

Together, these businesses give IPD exposure to infrastructure spending, electrification, data centres, industrial upgrades, and energy-related projects.

Foolish takeaway

The update IPD provided today wasn’t bad at all. The company is still guiding to higher earnings, stronger revenue, and better margins.

This fall looks more like a reaction to how far the share price has already run.

After a 60% gain over the past year, investors may have wanted more than just steady growth. Some may also be taking profits while the stock is still well ahead for 2026.

The post Up 60% in a year, so why is this ASX stock tumbling 8% today? appeared first on The Motley Fool Australia.

More reading

• This ASX healthcare company’s profit has rocketed 24%
• 2 ASX 200 shares I’d buy today and hold for years
• Guess which ASX 200 stock is lifting off today on a major US milestone
• Here’s why this ASX defence stock is charging higher today
• 2 ASX shares with dividend yields above 8%

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

Shares in AFT Pharmaceuticals Ltd (ASX: AFP) are trading higher after the company announced a 24% increase in profit on strong revenue growth.

Solid full-year effort

The company said in a statement to the ASX that net profit had increased to NZ$14.1 million on revenue of NZ$254.7 million, up 22%.

The company will pay a dividend of NZ2.5 cents per share and gave guidance for operating profit in FY27 of NZ$28 to NZ$32 million, up from NZ$24.4 million.

The company is also targeting increased revenue of NZ$300 million for the current financial year, with the company’s reporting period running until the end of March.

AFT chair David Flack said it was another strong result, “reflecting the strength of our core Australasian business and the benefits of our increasing geographic and product diversification”.

He added:

We have continued to invest for long-term value creation – progressing international hubs, executing licensing opportunities, and advancing a portfolio of valuable innovative products that can support our ambition to exceed $300 million sales this financial year.

Revenue growth in FY26 was driven by continued momentum in Australia, steady expansion in New Zealand, and a growing contribution from AFT’s International and Asian hubs as they scale.

The company said:

Australasia remained the cornerstone of AFT’s earnings and cash generation, growing revenue by 16% to reach $210.5 million. In the Australian market we saw broad-based strength across OTC brands and ongoing uptake across prescription medicines. The growth was also supported by a steady stream of new launches and portfolio expansion which remains a key focus. New Zealand delivered steady growth with continued opportunities across key categories including allergy, dermatology and eyecare.

Expanding in known markets

The company said it was continuing its strategy of building international business hubs in markets that share similar commercial and regulatory dynamics to its Australasian operations.

The company said:

During FY26, the company continued to expand its footprint across the UK, Europe, North America, and South Africa, progressing each hub along the path from establishment to development. In the United Kingdom, AFT continued to broaden distribution of Maxigesic tablets (marketed as Combogesic) from Boots and SuperDrug to now include independent pharmacies. The initial launches of Combogesic IV in several London NHS hospitals continued to progress, with sales momentum linked to formulary inclusion.

In Europe, the company said it was making progress with a portfolio of injectables acquired from an insolvent company, “with updated regulatory dossiers and licenses now supporting planned EU launches that are expected to make a meaningful contribution in FY27”.

The company said it was well-funded, with net debt of $38.6 million at the end of March, within its target leverage range.

AFT shares were 2.4% higher in early trade at $2.93. The ASX healthcare company is valued at $299.9 million.

The post This ASX healthcare company’s profit has rocketed 24% appeared first on The Motley Fool Australia.

More reading

• Up 60% in a year, so why is this ASX stock tumbling 8% today?
• 2 ASX 200 shares I’d buy today and hold for years
• Guess which ASX 200 stock is lifting off today on a major US milestone
• Here’s why this ASX defence stock is charging higher today
• 2 ASX shares with dividend yields above 8%

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 many attractive shares on the S&P/ASX 200 Index (ASX: XJO) that could generate decent returns and perhaps even robust passive income. 

But which are the best options for investors who want to buy and hold for several years?

Here are two of my top picks.

Xero Ltd (ASX: XRO)

It’s been a bloodbath for Xero shares over the past year. After spiking at an all-time high of $194.21 in June last year, the cloud-based accounting software provider’s shares have lost 60% of their value, at the time of writing.

It’s been a step-and-continuous decline, too. Aside from a couple of small rebounds, the share price has consistently tumbled downwards. In early April, the ASX 200 shares dropped to a four-year low of $71.46 each.

The share price decline was mostly the result of a sector-wide sell-off of technology stocks following rising concerns that AI could disrupt traditional software models. Many investors were worried that smarter, cheaper tools could reduce the need for subscription platforms like Xero.

At the same time, investor concerns about the company’s Melio acquisition and its potentially overvalued share price led many to sell up. 

But I see Xero as an attractive long-term investment.

Its business model, which is often referred to as “sticky”, means it has recurring revenue, global exposure, and good profitability. 

The company is actively expanding its presence and its product suite. The company is still a relatively small market player, which means there is a large amount of potential future growth. These growth opportunities include expansion in the UK and US, as well as payroll and workflow automation offerings. 

Xero’s latest FY26 result shows the company is growing, too. It posted a 31% hike in operating revenue last week, and its adjusted EBITDA is up 18%.

Analysts rate the ASX 200 shares as a strong buy and forecast the shares to climb by 202% to $236.45 over the next 12 months alone, at the time of writing. I think the shares have the potential to accelerate even further over the next few years.

Brambles Ltd (ASX: BXB)

Brambles shares crashed 20% earlier this week after the company scaled back its guidance figures for FY26. The ASX 200 supply pallets and crates supplier revised its sales revenue growth forecast to 2% to 3%, down from prior guidance of 3% to 4% revenue growth (at constant exchange rates).

Profit guidance was also cut, with Brambles now expecting FY26 profit growth of 3% to 5%, down from prior guidance of 8% to 11%.

The company said that it has to spend more on repairing its pallets to bring them up to standard for customers who were increasingly automating their processes.

Brambles said it was progressively increasing its repair quality to meet this demand, which has created a bottleneck. But the company noted that the “material” cost increase is short-term. 

It looks to me like the company is going through a rough period, and its shares are oversold. 

Looking ahead, Brambles expects to expand margins by at least 3 percentage points in FY28 compared with FY24. Ongoing investment in innovation, digital capability, and customer solutions is a key part of the company’s longer-term strategy.

It’s also widely considered a defensive stock. Its business underpins essential fast-moving consumer goods and grocery supply chains, and its recurring business model means it can maintain stable earnings across different phases of the economic cycle. 

I think that once it’s through the latest short-term operational bottleneck, the company will switch back into a growth gear.

Analysts are still bullish on the stock, even after this week’s sell-off. The majority (8 out of 15) rate the shares as a buy or strong buy. They also tip the shares to climb up to 70% higher over the next 12 months, as high as $27.90, at the time of writing.

The post 2 ASX 200 shares I’d buy today and hold for years appeared first on The Motley Fool Australia.

More reading

• Brokers say these ASX 300 shares are too cheap to ignore
• Why Morgans upgraded this ASX 200 share and downgraded another
• 3 amazing ASX 200 shares I’d buy and forget about until 2036
• 5 ASX shares with 50% to 60% upside ahead: Experts
• After this week’s sell-down, is it time to buy Brambles shares?

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

S&P/ASX 200 Index (ASX: XJO) stock IperionX Ltd (ASX: IPX) is charging higher today.

Shares in the ASX titanium products producer closed yesterday trading for $4.66. In early morning trade on Thursday, shares are changing hands for $4.86 apiece, up 4.3%.

For some context, the ASX 200 is up 1.4% at this same time.

Here’s what’s grabbing investor interest.

ASX 200 stock jumps on titanium manufacturing milestone

The IperionX share price is leaping higher after the ASX 200 stock reported that it has successfully commissioned its advanced 300-ton, six-axis SACMI powder metallurgy press at the company’s Titanium Manufacturing Campus, located in the US state of Virginia.

IperionX said the new press triples its existing powder metallurgy capacity, as well as expanding the range of titanium powder-to-product components that can be manufactured in the US.

The SACMI press also improves product flexibility and production repeatability. This will allow IperionX to create more complex near-net-shape titanium components like fasteners, gears, brackets, and actuators for defence aerospace and industrial customers.

The ASX 200 stock noted:

Compared with conventional uniaxial pressing systems, the SACMI press provides higher compaction force, multi axis movement, improved repeatability and enhanced geometry control. These capabilities are expected to support customer programs that require more complex component designs, tighter process control and higher-volume production pathways.

On the productivity front, the company said its titanium manufacturing platform is capable of up to 24 pressing cycles per minute. That works out to some 11 million single-cavity parts per year.

The company said its manufacturing pathway can reduce titanium waste, production cost, and lead times, without impacting titanium’s critical performance characteristics.

What did IperionX management say?

Commenting on the successful commissioning of the press that’s helping lift the ASX 200 stock today, IperionX CEO Anastasios Arima said, “Commissioning this advanced SACMI press is an important milestone for IperionX.”

Arima added:

It gives us greater titanium manufacturing capacity and more flexibility to manufacture a wider range of titanium components for customers in defence, aerospace and industrial markets.

Titanium is a critical material, but its use has often been limited by cost and supply chain challenges. By combining our US-sourced titanium powder, patented HAMR process, powder metallurgy pressing and HSPT sintering and forging, IperionX is building a more scalable platform for domestic titanium manufacturing.

Looking ahead, Arima concluded:

This new press, together with our upcoming furnace expansion, is designed to help move customer programs from prototypes toward repeatable, higher-volume production.

With today’s intraday moves factored in, the IperionX share price is up 35% in 12 months.

The post Guess which ASX 200 stock is lifting off today on a major US milestone appeared first on The Motley Fool Australia.

More reading

• IperionX expands U.S. titanium manufacturing with new six-axis press
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 stocks storming higher in this week’s flat market
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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