Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) is out of form on Friday and trading lower. In afternoon trade, the benchmark index is down 0.2% to 8,482.8 points.

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

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is down 5% to $9.13. This defence and space company’s shares are falling today after it confirmed that its CEO, Dr Andreas Schwer, has sold shares as planned. It advised that on Thursday, Dr Schwer sold 1.5 million shares for an average of $9.28 per share. This equates to a total consideration of approximately $13.9 million. EOS notes that Dr Schwer still holds approximately 1.4 million shares in EOS. These are valued at approximately $12.7 million based on its current share price. The company’s leader has “no intention to make further divestments before the next trading window which may open in mid-April 2026.”

Latitude Group Holdings Ltd (ASX: LFS)

The Latitude share price is down 7% to 94 cents. This has been driven by the consumer finance company’s shares going ex-dividend this morning. Last month, the company released its FY 2025 results and declared a final fully franked dividend of 5 cents per share. Eligible shareholders can look forward to receiving this payout next month on 21 April.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down almost 3% to $18.46. This follows a pullback in the gold price overnight amid concerns that soaring energy prices could lead to higher inflation in the United States and send interest rates higher. This would be bad news for gold, which is a safe haven asset and popular when interest rates are low. The S&P/ASX All Ordinaries Gold index is down 2% at the time of writing.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is down almost 3% to $146.94. Investors have been selling miners on Friday following a drop in base metal prices overnight. According to CommSec, copper futures dropped 2.2% and hit three-month lows on concerns that surging oil prices could hit global economic growth. This has led to the S&P/ASX 200 Resources index falling 1.4% this afternoon.

The post Why EOS, Latitude, Northern Star, and Rio Tinto shares are falling today appeared first on The Motley Fool Australia.

More reading

• EOS shares tumble 8% as insider selling ramps up
• Down 32% in a month: Where to from here for this ASX gold stock?
• Why EBR, EOS, Racura, and Woodside shares are rising today
• 2 ASX mining stocks that could rise 60% to 100%+
• Why are ASX 200 gold stocks like Northern Star and Newmont down so much today?

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

The All Ordinaries Index (ASX: XAO) is down 0.6% during the Friday lunch hour, but that’s not holding back this rocketing ASX lithium share.

The fast-rising miner in question is Atlantic Lithium Ltd (ASX: A11).

Atlantic Lithium shares closed yesterday trading for 31.5 cents. During the lunch hour today, shares are changing hands for 36.0 cents apiece, up 14.3%.

At the current price, Atlantic Lithium shares are now up 100% since this time last year.

If you’re not familiar with Atlantic, the junior ASX lithium share is primarily focused on its flagship Ewoyaa Lithium Project. Located in Ghana, Atlantic is working to advance Ewoyaa through to production to become the country’s first lithium-producing mine.

Now, here’s what grabbing ASX investor interest today.

ASX lithium share jumps on project approval

Investors are bidding up the Atlantic Lithium share price after the company announced that Ghana’s parliament has ratified the mining lease for Ewoyaa.

The Ewoyaa mining lease is the first to ever be granted and ratified for mining lithium in Ghana.

Having received formal approval for its proposed Ewoyaa Lithium Mine and Processing Plant, the ASX lithium share said it can now advance project funding discussions and continue its progress towards a Final Investment Decision (FID).

Under the terms of the mining lease, Atlantic Lithium has the exclusive rights to carry out mining and commercial production activities for an initial 15-year period, renewable in accordance with Ghanaian legislation.

The ASX lithium share will pay the government a royalty rate between 5% and 12%, based on the spodumene prices at the time.

What did management say?

Commenting on the government approval boosting the ASX lithium share today, Atlantic CEO Keith Muller said, “Parliamentary ratification of the mining lease for the Ewoyaa Lithium Project marks a watershed moment for both Ghana and Atlantic Lithium.”

Muller added:

We are delighted to have the full support of the government as we work towards achieving first production of spodumene. Having already built itself to become a leading gold producer, Ghana has now taken a major step towards a new lithium future.

Looking ahead, Muller concluded:

Shortly, we intend to provide further clarity on the outcomes of the work we completed through H2 2025 to enhance the viability of the project through ongoing commodity price volatility.

This work will help define the direction of the project’s development and inform the steps to be taken ahead of a project Final Investment Decision.

The post Guess which ASX lithium share is leaping 14% in Friday’s sinking market appeared first on The Motley Fool Australia.

More reading

• Why Ampol, Atlantic Lithium, Brightstar, and Premier Investments shares are rising 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.

Rare earths companies’ share prices have been under pressure over the past week or so, but the sector’s fundamentals remain solid, with Wilsons Advisory naming four picks it thinks will outperform.

In a research note sent to clients this week, Wilsons makes the case that rare earths elements “sit at the centre of several powerful structural trends, including electrification, automation and defence modernisation”.  

Large demand drivers

They say that permanent magnets represent the largest source of rare earths demand, “with applications spanning electric vehicle motors, wind turbines, robotics and industrial automation, as well as consumer electronics”.

They go on to say:

Key magnet rare earths include NdPr (neodymium and praseodymium), which are used to produce NdFeB (neodymium–iron–boron) permanent magnets, the dominant magnet technology in advanced electric motors. In certain applications, heavy rare earths such as DyTb (dysprosium and terbium) are added to improve performance at elevated temperatures.

Wilsons says demand for magnet rare earths is expected to triple over the next decade, underpinned by a combination of structural drivers including the energy transition, automation and robotics, and defence and rearmament.

There are also major barriers to entry on the mining and processing front, as they say:

Rare earth supply is structurally inelastic to price signals. Projects face high capital intensity, complex permitting and financing requirements, and long development timelines that typically span 10-15 years. Against this backdrop, and with demand rising strongly, several magnet rare earth elements, including NdPr and DyTb, are expected to face supply deficits over the near to medium-term. Beyond the global supply/demand balance, an increasingly important dynamic for Western producers is the emergence of an increasingly bifurcated rare earth market, where strategic demand for ex-China supply is supporting pricing premiums and long-term supply agreements for Western rare earths.

Wilsons says China dominates both the extraction and refining of rare earths, which is a strategic vulnerability for Western economies.

Local winners

Among the ASX-listed companies in the sector, Lynas Rare Earths Ltd (ASX: LYC) stands out, Wilsons says, as the largest rare earths producer outside of China.

Wilsons says Canaccord Genuity has a price target of $22 on the company, compared with the current price of $18.89.

Lynas just this week announced a major supply agreement with the US Department of War, involving US$96 million in rare earth oxide offtake and a US$110/kg floor price for NdPr.

Wilsons says Canaccord also has a buy rating on Iluka Resources Ltd (ASX: ILU) and a price target of $6.55 against the current price of $6.03.

Among the project developers, Canaccord has a speculative buy on both Brazilian Rare Earths Ltd (ASX: BRE) and Meteoric Resources Ltd (ASX: MEI).

The price target for Brazilian Rare Earths is $8, against the current price of $4.20, and for Meteoric Resources, 40 cents, compared with 16.5 cents.  

The post 4 cheap Aussie rare earths companies which are worth a look, according to Wilsons Advisory appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: What this leading broker is saying about Lynas shares
• Up 139% in a year, why this buy rated ASX All Ords rare earths stock could keep racing higher
• Buy, hold, sell: 3 ASX mining shares
• This major update just sent Lynas shares higher today
• Top broker names 3 ASX rare earths stocks to buy

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 recommended Lynas Rare Earths Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. At the time of writing, the benchmark index is down 0.65% to 8,442.8 points.

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

Ampol Ltd (ASX: ALD)

The Ampol share price is up 1.5% to $33.52. Investors have been buying this fuel retailer’s shares after releasing an update outlining changes to the Fuel Security Services Payment (FSSP) and on its fuel supply operations. The former has seen an increase in the collar from 6.4 cents per litre to 10.0 cents per litre. The company’s CEO, Matt Halliday, said: “We welcome the adjustments made to the FSSP, which effectively increase the level at which payments under the scheme will commence. The important role Australian refineries play in supporting the resilience of our domestic fuel supply is being reinforced in the current global oil market environment. The amendments recognise the significant cost increases, and capital investment made, since the scheme began in 2021 and the importance of maintaining an economically viable domestic oil refining capability in Australia for the medium term by providing support when refiner margins do not cover the cost of production.”

Atlantic Lithium Ltd (ASX: A11)

The Atlantic Lithium share price is up 11% to 35 cents. This morning, the lithium explorer announced the ratification of the mining lease of its flagship Ewoyaa Lithium Project by the Parliament of Ghana. It notes that this means the company can advance discussions relating to project funding and continue its progress towards a project final investment decision. Atlantic Lithium’s CEO, Keith Muller, said: “We are delighted to have the full support of the Government as we work towards achieving first production of spodumene. Having already built itself to become a leading gold producer, Ghana has now taken a major step towards a new lithium future.”

Brightstar Resources Ltd (ASX: BTR)

The Brightstar Resources share price is up 2% to 34.7 cents. This follows news that the gold developer has successfully completed its funding package. The company notes that this means it is now fully funded through to gold production at the Goldfields Project and the Sandstone Project final investment decision. Brightstar’s managing director, Alex Rovira, commented: “We are delighted to have successfully executed on this funding package, particularly in the context of the challenging market conditions over the past weeks.”

Premier Investments Ltd (ASX: PMV)

The Premier Investments share price is up almost 4% to $13.00. Investors have been buying the retailer’s shares following the release of its half-year results. The company reported Premier Retail underlying EBIT of $119.3 million, which was in line with its guidance. This allowed the company’s board to declare a fully franked interim dividend of 45 cents per share.

The post Why Ampol, Atlantic Lithium, Brightstar, and Premier Investments shares are rising today appeared first on The Motley Fool Australia.

More reading

• Guess which ASX lithium share is leaping 14% in Friday’s sinking market
• After a major capital raise this ASX gold company is fully-funded through to production
• This ASX 200 stock is charging higher on big news
• Ampol welcomes stronger refinery support and domestic supply boost
• Premier Investments shares jump 8% on results and big interim dividend

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

Gold prices have pulled back in recent sessions, giving back a big part of the gains seen earlier this year.

The yellow metal is trading near US$4,660 per ounce, down 3% today and close to 10% over the past month. This decline marks one of the biggest short-term falls in 2026, following a strong run earlier in the year.

Interest rate outlook shifts

A key driver behind the weakness has been a change in interest rate expectations.

Recent data shows central banks are maintaining a more cautious stance on rate cuts. The US Federal Reserve has kept rates steady and signalled that inflation risks remain. Other major central banks have also leaned toward tighter policy settings.

Furthermore, new market pricing data now indicates that rate cuts may be pushed further out, which has weighed on sentiment in the past week.

Stronger US dollar adds pressure

In addition, the US dollar has also firmed in recent sessions, creating another headwind.

The US Dollar Index (DXY) is currently sitting around 99.31, up almost 2% over the past month as demand for the greenback has increased.

Gold is priced in US dollars, so a stronger dollar makes it more expensive for international buyers, which reduces demand and weighs on prices.

Currency moves have been particularly important during this recent pullback, as traders adjust positions across commodities and foreign exchange markets.

Inflation concerns remain elevated

At the same time, inflation expectations remain another big factor.

Rising energy prices and the ongoing war in the Middle East have added uncertainty to the outlook. However, these factors have reinforced expectations that central banks will hold off on cutting rates.

This has led markets to focus more on interest rate settings and policy direction.

Positioning and momentum unwind

After a strong rally earlier in 2026, gold attracted increased investor inflows. As prices moved lower, some of these positions have been reduced, adding to the decline.

Futures data shows net long positions have come down, while higher margin requirements in some markets have also reduced speculative activity.

What investors should watch next

The recent pullback highlights how sensitive gold remains to macroeconomic conditions.

Interest rate expectations, central bank updates, and movements in the US dollar are likely to continue influencing price movements from here.

Even small changes in these areas can have a direct impact on prices, especially in the near-term.

Investors should keep watch on any new upcoming economic data and policy updates, as these continue to affect the outlook for inflation and interest rates.

The post Gold just lost its shine. Here’s what is driving the sudden drop appeared first on The Motley Fool Australia.

More reading

• EOS shares tumble 8% as insider selling ramps up
• Why EOS, Latitude, Northern Star, and Rio Tinto shares are falling today
• Guess which ASX lithium share is leaping 14% in Friday’s sinking market
• 4 cheap Aussie rare earths companies which are worth a look, according to Wilsons Advisory
• Why Ampol, Atlantic Lithium, Brightstar, and Premier Investments shares are rising 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.

S&P/ASX 200 Index (ASX: XJO) energy share Viva Energy Group Ltd (ASX: VEA) is outpacing the benchmark again today.

Viva Energy shares closed yesterday trading for $2.43. In earlier trade, shares leapt to $2.64 each, up 8.6%. After likely profit-taking and perhaps affected by the latest fast-moving oil market forecasts, in later morning trade shares are changing hands at $2.45 apiece, up 0.8%.

For some context, the ASX 200 is down 0.4% at this same time.

With today’s intraday gain factored in, the ASX 200 energy share is up an impressive 38.4% since this time last month, fuelled by surging global oil and gas prices.

Here’s what’s catching investor interest again today.

ASX 200 energy share gains on government refining support

The Viva Energy share price is catching tailwinds today following renewed Federal government support for domestic refining.

Amid major global energy market disruptions driven by the war in Iran, the government has increased the Fuel Security Services Payment (FSSP) Margin Marker collar by 3.6 cents per litre, raising it from the previous 6.4 cents per litre to 10 cents per litre.

The ASX 200 energy share welcomed what it called “critical support for domestic oil refining” through to the end of the decade.

Established in 2021, the FSSP provides financial support for Australia’s two remaining refineries when regional refining margins fall below long-term cash breakeven costs.

Viva noted that since then, the cost of operating refineries in Australia has increased “significantly”.

The ASX 200 energy share said the increased FSSP better reflects the current cash operating costs of its Geelong Refinery,

In 2025, Viva Energy completed its upgrade of the Geelong Refinery to produce low sulphur petrol. And in 2024, the company constructed 90 million litres of additional diesel storage. In total, Viva Energy invested around $500 million in these projects.

What did management say?

Commenting on the improved FSSP terms helping boost the ASX 200 energy share today, Viva Energy CEO and managing director Scott Wyatt said, “Today’s announcement underscores the important role that domestic refining plays in strengthening Australian energy security.”

Wyatt added:

Viva Energy is proud to own and operate one of the two refineries, that together produce approximately 20% of the country’s fuel requirements. Viva Energy’s refinery at Geelong produces approximately 50% of Victorian fuel requirements and holds a significant proportion of the country’s oil and fuel reserves.

We welcome the Federal government’s continued support for domestic refining.

The post Up 38% in a month, ASX 200 energy share lifting off again Friday on big oil refining news appeared first on The Motley Fool Australia.

More reading

• Viva Energy welcomes government boost to refinery support
• Here are the top 10 ASX 200 shares today
• 5 ASX 200 energy shares smash multi-year highs after oil price spike
• Here are the top 10 ASX 200 shares today
• Here’s why ASX 200 energy shares were the only risers last week

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.

Building a passive income portfolio isn’t about chasing the highest dividend yield.

If anything, that’s one of the easiest ways to get into trouble.

What I’d focus on instead is building something that can grow, adapt, and keep paying me for decades. The goal is reliability first, income second, and growth quietly working in the background.

Here’s how I’d approach it.

Start with a foundation of quality

The core of any income portfolio, in my view, has to be high-quality businesses.

These are companies with strong balance sheets, consistent earnings, and the ability to grow dividends over time. They might not always offer the highest yield today, but they tend to be far more dependable.

For me, that includes names like Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW), and Wesfarmers Ltd (ASX: WES).

They operate in essential parts of the economy, have pricing power, and long track records of paying dividends.

What I like about this group is that they provide a base level of income that I can feel relatively confident about, even when markets are volatile.

Add infrastructure for stability

If I wanted to make the portfolio more resilient, I’d layer in infrastructure-style businesses.

These are companies that own critical assets and often generate predictable, inflation-linked cash flows.

Transurban Group (ASX: TCL) is a good example, with toll roads that benefit from long-term concessions and population growth. Telstra Group Ltd (ASX: TLS) also fits here, with recurring revenue from its telecommunications network.

These types of businesses can help smooth out income, particularly during periods when more cyclical companies might struggle.

Include income with growth potential

A mistake I think many investors make is focusing only on today’s yield.

I’d want a portion of the portfolio in companies that might offer slightly lower yields now, but have the potential to grow their dividends over time.

That could include businesses like REA Group Ltd (ASX: REA) or even TechnologyOne Ltd (ASX: TNE), where earnings growth has historically supported rising payouts.

Over time, these can become some of the biggest contributors to income, even if they don’t look like traditional income stocks at first glance.

Use ETFs to tie it all together

Even with a strong selection of shares, I’d still want diversification.

That’s where exchange-traded funds (ETFs) come in.

A fund like Vanguard Australian Shares High Yield ETF (ASX: VHY) can provide exposure to a broad basket of dividend-paying companies, helping to reduce reliance on any single stock.

I also like the idea of including something like Vanguard Diversified High Growth Index ETF (ASX: VDHG). While it’s not purely income-focused, it brings global diversification and long-term growth, which can support future income.

For me, ETFs are less about maximising yield and more about strengthening the overall portfolio.

Keep some exposure to resources

I think miners have a place in an income portfolio.

Companies like BHP Group Ltd (ASX: BHP) can generate significant cash flow during strong commodity cycles and return a large portion of that to shareholders.

The trade-off is that dividends can be volatile.

That’s why I’d treat this part of the portfolio as a bonus rather than something to rely on for consistent income.

Foolish takeaway

If I were building a passive income portfolio on the ASX, I wouldn’t chase the highest dividend yield or try to find shortcuts.

I’d focus on quality businesses, add stability through infrastructure, include some growth, and use ETFs to diversify.

By doing so, I think it would put you in a strong position to build a resilient, long-term income portfolio.

The post How I’d build a world-class ASX passive income portfolio appeared first on The Motley Fool Australia.

More reading

• These valuations are too good to ignore! I’d buy these ASX shares today
• Here’s how much I’d need to invest in BHP shares to generate a $100 monthly income
• These 3 ASX ETFs can help protect your portfolio in 2026
• 2 ASX dividend shares with 5%+ yields and buy ratings
• How higher interest rates could send CBA shares plunging 42%

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia, Transurban Group, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended BHP Group, Technology One, Vanguard Australian Shares High Yield ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Brightstar Resources Ltd (ASX: BTR) has announced that its $193 million equity raise and a $US120 million debt facility are complete, which combined will fund its Goldfields Project through to production.

There will also be a “material capital allocation” to advance the company’s Sandstone gold project through to a final investment decision, which is targeted for late calendar year 2027 or early 2028.

The company said on Friday in a statement to the ASX that the Goldfields project was expected to start producing gold in the June quarter of 2027, and was expected to generate 75,000 ounces a year of gold over six years, for $1 billion in free cash flow.

Brightstar would also receive further revenue through ore being produced from current underground mining operations, with 130,000 to 140,000 tonnes of ore to be produced at a grade of 1.8 to 2 grams per tonne of gold.

Soon to break ground

The company said the Goldfields project was almost ready to go.

Subject to the receipt of final approvals and the formal declaration of FID (final investment decision), all funds are now available to commence site development and construction at the Goldfields Project whilst maintaining a substantial capital allocation to accelerate exploration, feasibility studies and permitting activities at the Sandstone Project. The flexible debt funding structure included minimal financial covenants, no royalties or warrants and preserves full gold price upside for shareholders, whilst crucially allowing Brightstar to continue to allocate meaningful capital towards the Sandstone Project.

The capital raise was conducted at 50 cents per share, compared with the company’s current share price of 35 cents, with the stock falling sharply from levels higher than 50 cents in early March.

Funded to grow

Brightstar Managing Director Alex Rovira said the company was “delighted” to have finalised the funding package, especially in light of the current market volatility.

With both the equity and debt components now settled, Brightstar is in an exceptionally strong position to deliver major gold production growth from the Goldfields Project while in parallel unlocking the value of our Sandstone Gold Project through drilling and feasibility work streams. A strong balance sheet positions Brightstar favourably against the backdrop of difficult capital markets and ensures a material capital buffer and contingency for our development requirements and funding for Sandstone. We thank our shareholders and bond investors for their strong support and look forward to providing regular updates on both projects as we advance towards gold production in mid-2027.

Brightstar is valued at $290.5 million.

The post After a major capital raise this ASX gold company is fully-funded through to production appeared first on The Motley Fool Australia.

More reading

• Why Brightstar, EQ Resources, Novonix, and Pro Medicus shares are falling today
• ASX All Ords gold stock lifts off on exploration success
• Why Brightstar, Endeavour, Evolution Mining, and Woolworths 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 could be some dirt cheap ASX 200 shares out there according to analysts at Morgans.

For example, the two shares in this article could more than double in value from current levels according to the broker.

Let’s see what it is recommending this month:

DigiCo Infrastructure REIT (ASX: DGT)

This data centre operator could be seriously undervalued according to the broker.

It highlights that its shares are trading at a deep discount to the net asset value (NAV) despite having high-quality and scarce assets.

Morgans has a buy rating and $4.15 price target on its shares. Based on its current share price of $1.83, this implies potential upside of 125% for investors over the next 12 months. It said:

DGT continues to trade at a c.50% discount to NAV of A$4.62/security, yet that NAV does not yet reflect the full value of the 88MW SYD1 expansion, which management estimates will deliver a further c.A$1.50/security of NAV uplift at a targeted 15% yield on cost. The core thesis rests on three pillars.

First, SYD1 is a genuinely scarce asset, a Tier 1 CBD carrier hotel with secured power and full planning approval operating in a structurally undersupplied market with a 200MW+ qualified demand pipeline. Second, the business has demonstrated operating momentum, yet cash earnings are yet to materialise. Third, Australian capital partnering at or above book value would be a significant valuation catalyst. Acknowledging the share price weakness, we continue to see the opportunity in DGT, retaining our Buy rating with a $4.15/sh price target.

Pro Medicus Ltd (ASX: PME)

Another ASX 200 share that could be dirt cheap according to the broker is health imaging technology company Pro Medicus.

While it was a touch disappointed with its first-half performance, it remains very positive and feels that recent share price weakness has been overdone.

Morgans has a buy rating and $275.00 price target on Pro Medicus’ shares. Based on its current share price of $123.48, this implies potential upside of more than 120%. It commented:

PME delivered record revenue and underlying EBIT up ~30% YoY, yet the result fell short of expectations on operating leverage with a jump in staff costs driving an EBITDA miss as Trinity contributed less than anticipated. The longer-term outlook strengthened with more than A$280m of new contracts signed and five-year contracted revenue now around A$1.1bn, though the market remains wary of a heavy 2H execution load and cost base increase.

It is not ideal to deliver a miss in this market, but the reaction feels overcooked and the setup into 2H is far better than the share price implies. Our valuation is reduced to A$275 (from A$290) and we retain our Buy recommendation.

The post Morgans says these ASX 200 shares could rise 120% appeared first on The Motley Fool Australia.

More reading

• Are these the smartest ASX tech stocks to buy now with $2,000?
• Here are the top 10 ASX 200 shares today
• 3 ASX healthcare stocks tipped to soar over 100% higher this year
• Why Brightstar, EQ Resources, Novonix, and Pro Medicus shares are falling today
• Why New Hope, Pepper Money, Pro Medicus, and Reece shares are falling today

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

S&P/ASX 300 Index (ASX: XKO) healthcare stock Clinuvel Pharmaceuticals Ltd (ASX: CUV) is pushing higher today.

Shares in the biopharmaceutical company closed yesterday trading for $9.64. In morning trade on Friday, shares are changing hands for $9.52 apiece, up 0.5%.

For some context, the ASX 300 is down 0.3% at this same time.

This modest outperformance follows a major leadership announcement.

Here’s what’s happening.

ASX 300 healthcare stock makes CEO decision

In a letter to shareholders released this morning, Clinuvel chairman Jeffrey Rosenfeld highlighted the company’s record setting first half year financial results.

“Profitability continues despite the planned increase of expenses. Our cash reserves stand at $233 million as of 31 December,” he said. “What matters now is what we do with this position.”

Rosenfeld said that after a rigorous review of the company’s succession planning and strategic direction, the board has decided that Philippe Wolgen will continue as CEO of the ASX 300 healthcare stock.

“This is not a routine renewal. This is a strategic imperative,” Rosenfeld said.

He continued:

The coming 24 to 36 months represent the most critical execution phase in Clinuvel’s history. The risks are considerable. We will need to navigate regulatory uncertainty, clinical complexity, and market volatility.

In this environment, a change at the top would not merely delay us, it would set us back a minimum of two to three years. Worse, it could result in outright failure to execute our strategy. The board has examined this question from every angle. We are not willing to incur that cost.

Rosenfeld said the board examined the option of recruiting a United States-based executive and had reviewed candidates. However, he said the board concluded that “recruiting a new CEO would introduce strategic diversion, create unavoidable delays, and carve a void in institutional knowledge”.

Wolgen’s employment agreement will be extended under new terms currently being negotiated, which are likely to include long-term equity incentives.

“We are treating this exactly as we would treat the recruitment of a new American CEO – except we are retaining someone who already knows how to deliver and financially run a lean company,” Rosenfeld said.

What about the struggling Clinuvel share price?

Over the past 12 months, shares in the ASX 300 healthcare stock have slumped 20%

Addressing that decline, Rosenfeld said, “Market data tell a clear story: pre-revenue biotechs often outperform as perception and hope dominates investment decisions, while profitable companies executing quietly can be undervalued.”

He added:

The board, market analysts, and sophisticated institutions recognise that our share price does not reflect the company’s performance. It reflects a perceived ceiling on further growth. Our job, and Philippe’s, is to break through that ceiling.

The post ASX 300 healthcare stock outperforming today on ‘strategic’ leadership news appeared first on The Motley Fool Australia.

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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.