Category: Stock Market

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

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:

BHP Group Ltd (ASX: BHP)

According to a note out of Citi, its analysts have resumed coverage on this mining giant with a buy rating and $48.50 price target. The broker notes that the company’s takeover approach for Anglo American (LSE: AAL) has ended in failure this week. This means that BHP will have to wait six months before being able to revisit a potential deal. While this may be disappointing, the broker isn’t fazed by the news. Particularly given that BHP already offers investors significant exposure to copper through its existing operations. And with Citi believing the market’s estimate for the copper price is too low, this exposure is likely to be great news for the miner’s earnings in the coming years. The BHP share price is trading at $44.01 this afternoon.

Qantas Airways Limited (ASX: QAN)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $8.05 price target on this airline operator’s shares. The broker believes that the market is undervaluing Qantas’ shares. It feels that this reflects investors pricing in a trade off between investment (fleet and customer) and capital returns (dividends & buybacks). However, the broker believes that Qantas can return significant capital to shareholders and invest in its fleet without weakening its balance sheet. In light of this, the broker sees its cheap valuation as a buying opportunity. Particularly given that it is expecting the Qantas dividend to return in 2025. The Qantas share price is fetching $6.07 on Friday.

Xero Ltd (ASX: XRO)

Analysts at Goldman Sachs have also retained their conviction buy rating and $164.00 price target on this cloud accounting platform provider’s shares. This follows news that Xero is increasing the price of its UK subscriptions by 7% to 12% effective 12 September 2024. It notes this is consistent with 2023 changes from a quantum and timing perspective. And while this pricing update was somewhat expected following the recent Australian plan changes, the broker views it as another incremental positive for Xero and believes it is very supportive of its FY25/26 revenue forecasts. The Xero share price is trading at $133.11 today.

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

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• 5 things to watch on the ASX 200 on Friday
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The APM Human Services International Ltd (ASX: APM) share price is frozen today after the company went into a trading halt prior to the market open.

The international employment services company requested the trading halt pending the release of an update on the non-binding takeover offer it received from Madison Dearborn Partners last month.

APM asked for the trading halt to remain in place until it released an announcement or until the commencement of trading next Tuesday 4 June.

The APM share price closed yesterday’s session at $1.25. APM shares are down 0.79% in the year to date and down 39.6% over the past 12 months.

Let’s find out what’s happening with that takeover offer.

APM share price frozen as investors await news

Last month, APM received a “disappointing offer” of $1.40 per share from United States private equity firm Madison Dearborn Capital Partners (MDP).

MDP already owns 29% of the company and has three directors on the APM board.

The offer was well below an earlier conditional, indicative, non-binding takeover offer of $2 cash per share received from CVC Asia Pacific in February.

CVC originally offered $1.60 per share but revised it upwards. On this basis, APM granted CVC access to its books to undertake due diligence.

However, after CVC completed its due diligence in March, it advised APM it did not want to proceed.

After the CVC deal collapsed, Madison Dearborn put forward its own indicative non-binding offer to buy all the shares it did not own for $1.40 per share via a scheme of arrangement.

That was back on 8 April.

The offer on the table

The proposal included a rollover election for APM shareholders to receive all or part of the
consideration in unlisted shares in MDP.

It also required certain shareholders, including executive chair Megan Wynne and key management personnel, to elect to receive all of their consideration in scrip.

MDP requested a period of due diligence on a non-exclusive basis to finalise its debt financing.

APM told investors it intended to engage with MDP and any other suitors on the horizon.

To this end, it set up an Independent Board Committee (IBC) comprising four independent board directors to lead the negotiations with MDP and any other parties.

The IBC chair, Nev Power, described the $1.40 offer as “disappointing” and said the IBC would strive to achieve “an outcome that is fair and reasonable and in the best interests of all shareholders”.

And that brings us up to date.

Investors haven’t heard anything further about the deal until today’s trading halt request.

But it appears APM will have some news for the market very soon.

APM share price snapshot

The APM share price has fluctuated enormously this year.

On 18 January, APM shares spiralled by just over 40% to a new all-time low of 79 cents. That was after the company released its 1H FY24 trading update.

The price went lower to 68 cents on 23 January. This remains the stock’s 52-week low.

On 19 February, the APM share price leapt 48.2% after news broke of CVC’s original $1.60 per share offer.

The APM share price moved 13.5% higher on 28 February when CVC upped its offer to $2 per share.

APM shares went into a trading halt on 27 March upon news that CVC was walking away.

The company then requested a voluntary suspension from trading and told the market it was in discussions with other parties.

On 8 April, it announced MDP’s offer and was reinstated to trading.

Investors were displeased with the substantially lower per-share price offered compared to the CVC deal, and the APM share price tanked 29.4% to close at $1.15 per share.

APM shares were listed in November 2021 at $3.55. As the chart below shows, it’s been a tough road for investors ever since.

The post APM share price grinds to a halt as investors await update on takeover offer appeared first on The Motley Fool Australia.

More reading

• Guess which 3 ASX 200 shares are leading the charge higher this week
• Brokers name 3 ASX shares to buy now
• An insider just bought $100,000 of Magellan shares: Should you invest too?
• Why Core Lithium, Fortescue, Peter Warren, and Talga shares are falling today
• Can this ASX 200 share still be a buy if it’s ‘one of the world’s most expensive stocks’?

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

It can be useful for investors to keep an eye on which shares have experienced meaningful insider buying.

This is because insider buying is often regarded as a bullish indicator.

As few people know a company and its intrinsic value better than its own directors, if they are buying, it suggests that they are confident in the direction the company is heading. They may even believe that their shares are undervalued at current levels.

With that in mind, let’s take a look at one popular ASX 200 share that has just reported significant insider buying.

The share is question is fund manager Magellan Financial Group Ltd (ASX: MFG).

Insider loads up on Magellan shares

With the company’s shares down 22% since mid to late March, it seems that one of its directors feels that this has created a buying opportunity.

According to a change of director’s interest notice, the company’s non-executive director, Cathy Kovacs, has snapped up her first Magellan shares since joining the fund manager in November of last year.

The release reveals that Ms. Kovacs bought 12,400 shares through an on-market trade on 30 May. She paid an average of $8.02 per share, which equates to a total consideration of just a touch under $100,000.

Should you invest?

The broker community remains divided on Magellan’s shares. Though, it is worth noting that analysts appear to be seeing value emerge following recent weakness.

For example, last month analysts at Macquarie put an underperform rating on its shares. Though, its price target of $8.40 is now higher than where its shares currently trade.

Elsewhere, analysts at Morgans only have a hold rating on its shares. But with a price target of $9.67, this implies potential upside of 20% for investors over the next 12 months. In addition, Morgans is forecasting dividends per share of 63 cents in FY 2024 and then 64 cents in FY 2025. This equates to sizeable dividend yields of 7.8% and 8%, respectively.

Finally, analysts at UBS are likely to be supportive of Kovacs’ decision to buy her first Magellan shares. The broker currently has a buy rating and lofty $10.25 price target on the fund manager’s shares. This suggests that they could rise by over 27% from current levels.

If that were to happen, it would value the non-executive director’s holding at $127,100. That certainly would be a great return on investment.

Though, as always, time will tell which brokers make the right call.

The post An insider just bought $100,000 of Magellan shares: Should you invest too? appeared first on The Motley Fool Australia.

More reading

• Magellan share price lifts despite April funds outflow

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 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.

The S&P/ASX 200 Index (ASX: XJO) is on track to end the week in a positive fashion. In afternoon trade, the benchmark index is up 0.45% to 7,663.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 3.5% to 13 cents. This is despite there being no news out of the struggling lithium miner on Friday. However, it is worth noting that Goldman Sachs recently tipped the company’s shares to sink a further 15% from where they currently trade to 11 cents. This is despite the Core Lithium share price already losing almost 90% of its value since this time last year.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is down 2% to $24.28. This may have been driven by weakness in the iron ore price overnight. According to CommSec, the iron ore price fell in response to “fears of falling demand in China over the remainder of the year after Beijing reiterated its stance on continuing to control crude steel output in 2024.” In addition, as highlighted in this article, a large number of brokers believe that this mining giant’s shares are severely overvalued at current levels. This could also be weighing on its shares today.

Peter Warren Automotive Holdings Ltd (ASX: PWR)

The Peter Warren Automotive share price is down a further 2.5% to $1.75. This automotive retailer’s shares have been sold off this week after it released disappointing earnings guidance. Although revenue has continued to grow, the company now expects its underlying profit before tax for FY 2024 to be in the range of $52 million to $57 million. This was lower than market expectations and driven by a significant increase in vehicle supply, which has led to greater competition between dealerships and lower gross profit margins on new vehicles. Its shares are now down 17% since this time last week.

Talga Group Ltd (ASX: TLG)

The Talga share price is down over 6% to 61 cents. This follows the completion of a mining study into the expansion options for its Vittangi Graphite Project in Sweden. While the mining study laid out some reasonably big plans for Vittangi, it came with a number of warnings. One was that it will require estimated capital funding in the order of €520 million to €1,100 million (A$848 million to A$1.8 billion) plus contingencies. Management warned investors “that there is no certainty that the Company will be able to raise that amount of funding when needed.”

The post Why Core Lithium, Fortescue, Peter Warren, and Talga shares are falling today appeared first on The Motley Fool Australia.

More reading

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• Planning your retirement? Here are the most popular investments outside superannuation
• How much could $10,000 invested in Fortescue shares be worth next year?

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 Goldman Sachs Group. 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.

Pro Medicus Ltd (ASX: PME) shares are swapping hands at $123.22 apiece, up 2.6% at the time of writing. In the last 12 months, the ASX 200 share has soared 99.9% into the green, surpassing the S&P/ASX 200 index (ASX: XJO)’s rise of 7.7% in that time.

The astronomical run has cemented Pro Medicus’ status as one of the priciest stocks on the ASX. It currently trades at a trailing price-to-earnings ratio (P/E) of 171.5 times. In other words, investors are paying $171.50 to buy $1 of the healthcare company’s earnings.

This is more than nine times greater than the current iShares Core S&P/ASX 200 ETF (ASX: IOZ) P/E of 18.2.

Why the optimism?

According to analysts covering the ASX 200 share, the company’s high valuation is matched by equally impressive fundamentals, making it a stock worth considering. Let’s take a look.

Why this ASX 200 share is soaring

Brokers are bullish on this ASX 200 share thanks to several tailwinds behind the company. These include sales from its flagship software, Visage 7, alongside customer contract wins.

Visage allows radiologists to view large medical image files on mobile devices. This enhances diagnostic efficiency and enables a radiologist to see a patient’s scan from anywhere in the country.

The ASX 200 share is profitable too. It produced an earnings before interest and tax (EBIT) margin of 66% and a net profit after tax (NPAT) margin of 49% for the first half of FY 2024.

Barrenjoey analyst Josh Kannourakis has done the analysis and is bullish on the company’s outlook.

Speaking to the Australian Financial Review, Kannourakis said Pro Medicus’ underlying economics are “better than any other that I’ve seen both in terms of the unit economics [and] structure of contracts”.

And when this revenue is recognised, it is on “close to 100% gross margin”, he said.

Goldman Sachs also recently reiterated its buy rating on Pro Medicus, with an improved price target of $136 per share.

Goldman highlights the company’s recent contract wins, including five new deals with a minimum total contract value of $245 million this financial year. The broker believes it is well-positioned to capture more market share.

Finally, analysts at Bell Potter also raised the firm’s target on Pro Medicus to $115 per share on Friday. The broker is so convinced of the company’s outlook that it completely changed its position – from a sell with a $75 per share price target to a buy rating.

Not all positive views

Given its current valuation, some analysts are treading cautiously. As mentioned, the ASX 200 share currently sells at a P/E of 171.5.

Morgans’ Patrick Chan offers a more cautious view of the company’s valuation. He called Pro Medicus “one of the world’s most expensive stocks” despite acknowledging its impressive performance and strategic wins, according to the AFR.

“I think it’s overpriced”, he said. “[B]ut in saying that, I think it’s the best business on the ASX, and you can’t put a sell on it”.

“You might just trim around the edges, but hold long-term.”

Still, Morgans has set a price target of $85 on the ASX 200 share, well below Pro Medicus’ current share price at publication.

Is this ASX 200 share a buy?

Based on its P/E ratio, Pro Medicus is one of the most expensive stocks globally. However, according to leading brokers, it could still offer significant growth potential.

To date this year, its share price has rallied 27% into the green. At the time of writing, it has also outpaced the benchmark index return by 90% over the past year of trade.

As always, wise investors consider the risks of overpaying. It is crucial to weigh the high valuation against the company’s proven track record and future prospects.

The post Can this ASX 200 share still be a buy if it’s ‘one of the world’s most expensive stocks’? appeared first on The Motley Fool Australia.

More reading

• Guess which 3 ASX 200 shares are leading the charge higher this week
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Why Catapult, Clarity, Pro Medicus, and Qantas shares are rising today
• Top brokers name 3 ASX shares to buy today

Motley Fool contributor Zach Bristow 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 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.

The Qantas Airways Limited (ASX: QAN) share price is down 0.7% after the ASX travel share announced an agreement with Perth Airport regarding upgrades and developments. The S&P/ASX 200 Index (ASX: XJO) is up 0.5%, so Qantas shares are underperforming the market today.

Perth is an important destination for Qantas because of Project Sunrise, with Qantas creating ultra-long-haul flights over the coming years. The long-distance flights will use Airbus A350s, which arrive in 2026.

$5 billion Perth Airport investment plan

Qantas announced a 12-year agreement under which Perth Airport will invest approximately $3 billion in new terminal facilities and a new parallel runway, which is expected to open in 2028.

Perth Airport’s overall capital investment will total $5 billion, delivering two multi-storey car parks, major access roadworks, and the airport’s first hotel.

Qantas and Jetstar will relocate all services to a new terminal in the Airport Central precinct, which will enable the growth required to turn Western Australia into a “major domestic and international hub” for the airlines. Qantas will also invest in new aircraft.

Jetstar and Qantas plan to add 4.4 million seats to and from Perth annually by the time the new terminal opens in 2031. As part of the agreement, Qantas plans to build a new engineering hangar in the precinct.

The airline said the upgraded hub will significantly enhance inbound tourism and give Aussies more options when travelling to Asia, Africa, India and Europe.

Perth Airport will also invest in upgrades to terminals 3 and 4, where Qantas currently operates, to create additional capacity while the new terminals are built. Jetstar will relocate its domestic services to terminal 2 from September 2024.

The upgrades to terminals 3 and 4 will allow Qantas to add more services and destinations from Perth, including Auckland and Johannesburg, from mid-2025, subject to meeting border agency requirements. The works will also include gate upgrades to accommodate the ultra-long-haul aircraft for Project Sunrise.

As part of the agreement, all outstanding commercial issues between Perth Airport and Qantas have been resolved.

Management comments

The Qantas CEO Vanessa Hudson said:

This is the largest airport infrastructure deal in our history. It will enable us to create a world-class western hub and significantly expand our domestic and international services over the short, medium and long term.

Not only will it allow us to bring hundreds of thousands more travellers to and through Western Australia each year, it will also make it easier for overseas tourists to connect to more destinations across Australia.

Perth-London and Perth-Rome are two of the most popular flights on our international network, which gives us confidence in our strategy to ramp up WA flying over the next few years as we receive new aircraft and grow our fleet.

Qantas share price snapshot

Since the start of 2024, the Qantas share price has risen 12%, as seen on the chart below.

The post Qantas shares maintain altitude amid ‘historic’ $5 billion deal appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Catapult, Clarity, Pro Medicus, and Qantas shares are rising today
• Why Qantas shares are cheap and now is ‘a buying opportunity’
• 5 things to watch on the ASX 200 on Thursday
• Why Cettire, Neuren, Peter Warren, and Qantas shares are falling today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a positive note. At the time of writing, the benchmark index is up 0.55% to 7,670 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher:

AVITA Medical Inc (ASX: AVH)

The AVITA Medical share price is up over 12% to $2.99. Investors have been buying the regenerative medicine company’s shares after the US FDA approved its premarket approval (PMA) supplement for the RECELL GO system. RECELL GO is an autologous cell harvesting device, harnessing the regenerative properties of a patient’s own skin to treat burn wounds and full-thickness skin defects. AVITA Medical’s CEO, Jim Corbett, said: “FDA approval of RECELL GO marks a paradigm shift in the treatment of partial-thickness and full-thickness wounds.”

Catapult Group International Ltd (ASX: CAT)

The Catapult Group share price is up a further 3% to $1.75. Investors have been scrambling to buy this sports technology solutions provider’s shares since the release of a strong full-year result on Thursday. Catapult posted a 20% increase in revenue to a record of US$100 million. This was driven largely by accelerating SaaS revenue, which increased 24% to US$82 million. Also getting investors excited was Catapult delivering on its guidance to generate positive free cash flow (FCF) in FY 2024. It generated FCF of US$4.6 million, which represents a US$26.2 million improvement year on year.

Meridian Energy Ltd (ASX: MEZ)

The Meridian Energy share price is up 2% to $5.90. This morning, this energy company announced that it has signed an agreement with New Zealand’s Aluminium Smelter (NZAS). The two parties have signed a package of conditional 20-year contracts for part of the NZAS Tiwai Point aluminium smelter’s electricity needs. The package includes a long-term fixed price contract for wholesale electricity price cover and a significant demand response agreement. Chief Executive Neal Barclay said: “This is a fantastic outcome for New Zealand and the Southland region. It’s further proof that large industrial businesses can utilise New Zealand’s renewable energy advantage and create low carbon sustainable products, high value jobs and export dollars for our country.”

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is up over 13% to $17.87. Investors have been buying the radiopharmaceuticals company’s shares following the release of additional positive data from the ProstACT SELECT trial of TLX591. It is a lutetium-labelled rADC therapy for the treatment of adult patients with PSMA-positive metastatic castrate-resistant prostate cancer. Telix’s chief medical officer, Dr David N. Cade, notes that: “TLX591 is a radio-ADC with significant potential advantages compared to small molecule radiopharmaceuticals in treating prostate cancer.”

The post Why AVITA Medical, Catapult, Meridian Energy, and Telix shares are storming higher today appeared first on The Motley Fool Australia.

More reading

• Guess which All Ords ASX healthcare share just rocketed 19% on major FDA news
• Why is the Telix Pharmaceuticals share price soaring 11% today?
• Why Catapult, Clarity, Pro Medicus, and Qantas shares are rising today
• 3 ASX All Ords shares smashing new multi-year highs while the market sinks
• Catapult shines: 20% sales growth propels ASX tech stock to new 52-week high

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

The All Ordinaries Index (ASX: XAO) is up 0.5% in morning trade with one ASX healthcare share doing plenty of the heavy lifting.

Shares in the regenerative medicine company, which is focused on devices for wound care management and skin restoration, closed yesterday trading for $2.66. In earlier trade, shares were changing hands for $3.17 apiece, up 19.2%.

After some likely profit-taking, shares are trading for $3.00 apiece at the time of writing, up 12.8%. Investor enthusiasm roused following positive news from the United States Food and Drug Administration (FDA).

Any guesses?

If you said Avita Medical Inc (ASX: AVH), go to the head of the virtual class.

Here’s what the ASX healthcare share reported today.

ASX healthcare share rockets on FDA greenlight

The Avita Medical share price is surging after the company reported that the FDA has greenlit its premarket approval (PMA) supplement for the RECELL GO system.

RECELL GO is an autologous cell harvesting device. It harnesses the regenerative properties of a patient’s own skin to treat burn wounds and full-thickness skin defects.

The ASX healthcare share highlighted a number of advantages RECELL has over traditional skin grafting.

Those include:

• Improved healing is achieved using significantly less donor skin
• Pain is reduced, closure is faster, and the aesthetic appearance at the RECELL-harvested donor site is improved
• Fewer procedures are required for definitive closure
• A reduction in the length of stay for burns covering less than 50% of total body surface area

The company also noted that enhanced features of the device, including a simplified user interface, significantly reduce the training required for medical staff.

Commenting on the FDA approval sending the ASX healthcare share soaring today, Avita Medical CEO Jim Corbett said, “FDA approval of RECELL GO marks a paradigm shift in the treatment of partial-thickness and full- thickness wounds.”

Corbett added:

By streamlining processes and enhancing operational efficiency with the use of RECELL GO, clinicians can now treat a greater number of patients and more broadly experience the proven benefits of RECELL technology.

We believe that this transformative shift will empower more clinicians to achieve optimal outcomes for their patients, driving greater adoption, and fundamentally redefining wound care management. It’s GO time for a new era in wound care.

The ASX healthcare share will launch RECELL GO in its top burn treatment centres in the US in June.

Management said that existing accounts will be converted to RECELL GO throughout the year, while new accounts will receive RECELL GO with their first order.

The post Guess which All Ords ASX healthcare share just rocketed 19% on major FDA news appeared first on The Motley Fool Australia.

More reading

• Why AVITA Medical, Catapult, Meridian Energy, and Telix shares are storming higher today
• Analysts say these small cap ASX shares can deliver big returns
• 2 ASX healthcare shares rocking higher on big news
• 3 ASX shares at 52-week lows or worse
• Morgans names the best small cap ASX shares to buy in May

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

The Talga Group Ltd (ASX: TLG) share price is having a tough finish to the week.

At the time of writing, the ASX 300 stock is down 13% to 56.5 cents.

This leaves the battery materials developer’s shares trading within touching distance of a multi-year low.

Why is this ASX 300 stock crashing?

Investors have been heading to the exits today after the company announced the completion of a mining study into the expansion options for its Vittangi Graphite Project in Sweden.

The release notes that the mining study forms part of a wider integrated scoping study aimed at expanding the ASX 300 stock’s existing initial 19,500 tonnes anode per annum (tpa) production of low-emission graphite anode products for lithium-ion battery markets.

According to the release, the study found mine plans supporting 0.6Mtpa, 1.0Mtpa, and 2.0Mtpa Run of Mine (RoM) ore production from existing indicated and inferred JORC resources of 35.0Mt at 23.8%Cg.

However, it also warns that “there is a low level of geological confidence associated with Inferred mineral resources and there is no certainty that further exploration work will result in the determination of Indicated mineral resources or that the production target itself will be realised.”

The study also found that a transition to underground mining and optimised development plan negates the need for multiple open pits, with the potential to increase life of mine beyond 40 years at a lower 0.6Mtpa mining rate.

Big investment required

But to get to the above, it will take a significant investment and there is no certainty that it will be able to raise the required funds. The release states:

To achieve the range of outcomes indicated in the Interim Report, capital funding in the order of €520 – €1,100 million [A$848 million to A$1.8 billion] plus contingencies may be required. Investors should note that there is no certainty that the Company will be able to raise that amount of funding when needed.

This compares to the current Talga market capitalisation of approximately A$210 million.

Nevertheless, the ASX 300 stock’s CEO, Martin Phillips, is positive on the company’s prospects and appears optimistic that today’s study is a big step forward for it. He commented:

Our large-scale Swedish graphite project is a key alternative source of strategic raw materials to support the EU’s ambitions and the demand from key export markets. The completed mining study underpins the Scoping Study underway to outline expansion options to supply the global battery anode market beyond our initial 19,500tpa project.

The post Why is this ASX 300 stock crashing 13% today? appeared first on The Motley Fool Australia.

More reading

• Bell Potter says this speculative ASX stock could rise 200%+

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

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is racing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) biopharmaceutical company closed yesterday at $15.74. At the time of writing, shares are trading 10.6% higher at $17.41 after touching a high of $17.44 apiece in early trade.

For some context, the ASX 200 is up 0.44% at this same time, while the S&P/ASX 200 Health Care Index (ASX: XHJ) is up 1%.

Here’s what’s grabbing investor interest today.

ASX 200 healthcare share rockets on trial results

Investors are bidding up the Telix Pharmaceuticals share price today after the company announced positive results from its ProstACT SELECT clinical cancer trial.

Telix is testing the efficacy of TLX591, an investigational anti-PSMA1 radio-antibody-drug conjugate (rADC) therapy. TLX591 is being developed to treat adult patients with PSMA-positive metastatic castrate-resistant prostate cancer (mCRPC).

According to the release, SELECT is a radiogenomics study intended to evaluate lesion concordance between Ga (gallium)-based PSMA-PET imaging and TLX591 dosimetry for the purpose of validating PET imaging for patient selection for rADC therapy.

(Quite a mouthful, I know!)

The company said the new positive clinical results build on prior data from the ProstACT SELECT trial, which demonstrated a favourable safety profile and biodistribution.

The study reported a median radiographic progression-free survival (rPFS) of 8.8 months, which Telix called an encouraging signal of the potential efficacy of TLX591 in this patient population.

The trial involved 23 patients with previously treated, progressive mCRPC who received two 76 mCi intravenous infusions of TLX591 14 days apart.

Commenting on the results sending the Telix Pharmaceuticals share price soaring today, Nat Lenzo, nuclear oncologist and lead recruiter of the SELECT trial, said:

We are encouraged by this rPFS result, which compares favourably to small molecule radioligand therapy (RLT) Phase I and II studies at similar stages of development.

This is a compelling signal of the potential efficacy of TLX591 in this heavily pre-treated population. The results further support the development of this candidate in an earlier mCRPC patient population which is the focus of the ProstACT Global Phase III trial and where there remains significant unmet need for effective treatment.

David Cade, chief medical officer at Telix, added:

TLX591 is a radio-ADC with significant potential advantages compared to small molecule radiopharmaceuticals in treating prostate cancer. TLX591 is differentiated by a patient-friendly dosing regimen with far lower cumulative radiation exposure compared to small molecule radioligand therapies.

The company is currently preparing to enrol patients at its first US sites for the Phase III ProstACT Global trial.

Telix Pharmaceuticals share price snapshot

With today’s intraday gains factored in, the Telix Pharmaceuticals share price is up a whopping 69% so far in 2024.

But it could well have further to run.

Following on today’s announcement, Wilsons has placed a $20.00 price target on Telix Pharmaceuticals shares. That represents a potential 17% upside from current levels.

The post Why is the Telix Pharmaceuticals share price soaring 11% today? 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 positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.