Last year was a good one for homeowners, with the Reserve Bank of Australia (RBA) making several cuts to interest rates.

This left the cash rate at 3.6% at the end of the year.

However, while many economists were for some time forecasting further cuts in 2026, that all changed late in 2025 after economic data supported a case for interest rate hikes this year.

But what is actually going to happen? Let’s see what the economics team at Westpac Banking Corp (ASX: WBC) is predicting from the RBA.

Where are interest rates going in 2026?

The good news for mortgage holders is that Westpac thinks it will be a quiet year for RBA governor Michele Bullock.

According to its latest weekly economic report, the bank’s economics team believes that the central bank will keep interest rates on hold for the entire year. No cuts, no hikes. Just rates on hold at 3.6% for the full 12 months.

Westpac’s chief economist, Luci Ellis, said:

Westpac Economics has revised its outlook for the RBA cash rate to an extended hold for the whole of 2026. While the RBA recognised that some of the recent inflation surprise reflected temporary factors, it has clearly taken signal from it. Inflation is expected to moderate in 2026, but not soon enough to induce the RBA to step back from its current hawkish view of the risks. If our broader set of forecasts are borne out, rate cuts are still feasible in February and May 2027.

Though, Ellis does concede that there are risks that the RBA could both cut rates and increase them this year. She adds:

There are risks on both sides of our base case view. We reserve the option to put rate cuts in 2026 back on the table if the labour market starts to unravel. We think that rate hike talk is premature. We cannot rule out that more near-term bad news on inflation spooks the RBA and induces a near-term hike, but in our view, it is not the most likely outcome. If it does happen, though, our forecasts for growth, the medium-term inflation outlook and the labour market would need to be revised down, and a subsequent reversal of that policy tightening would be in play in 2027.

Overall, it should be a relatively steady year for borrowers if Westpac is on the money with its forecast.

The post Here’s what Westpac says the RBA will do with interest rates in 2026 appeared first on The Motley Fool Australia.

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• Buying ASX shares? Why, and how, you should prepare for higher interest rates in 2026
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• Why today is a great day to own ANZ and Westpac shares
• 5 things to watch on the ASX 200 on Friday
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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.

S&P/ASX 200 Index (ASX: XJO) shares rose by 6.8% and provided total gross returns, including dividends, of 10.32% in 2025.

The benchmark index hit a record 9,115.2 points in October before finishing the year at 8,714.31 points.

There are 11 market sectors within the ASX 200.

Here are the ASX 200 shares that experienced the highest capital growth in each sector last year.

2025 stars of each ASX 200 market sector

These were the No.1 shares of each market sector in 2025 based on 12-month share price growth (excluding dividends).

We have ranked the sectors from the strongest to the weakest performers. Four of the 11 sectors lost value last year.

Materials

The ASX 200 materials sector was the best performer of the 11 sectors in 2025.

The S&P/ASX 200 Materials Index (ASX: XMJ) rose by 31.71% and delivered total returns, including dividends, of 36.21%.

Rising commodity prices, particularly gold, silver, copper, and lithium, pushed the sector higher and significantly boosted the miners.

The best performing share within the ASX 200 materials sector was Pantoro Gold Ltd (ASX: PNR).

Pantoro Gold only joined the benchmark index in the December quarter rebalance.

The Pantoro share price rose 220% to close at $4.89 on 31 December.

Industrials

The S&P/ASX 200 Industrials Index (ASX: XNJ) rose 10.2% and delivered total returns of 13.98%.

ASX 200 defence share DroneShield Ltd (ASX: DRO) was the No.1 stock in the industrials space.

The Droneshield share price ripped 300% to close at $3.08 on 31 December.

Financials

The S&P/ASX 200 Financials Index (ASX: XFJ) rose 7.97% and delivered total returns of 12.05% in 2025.

Retirement and investment solutions provider Generation Development Group Ltd (ASX: GDG) was the star of the financials sector.

The Generation Development Group share price rose 65.92% to finish the year at $5.89.

Communications

The S&P/ASX 200 Communications Index (ASX: XTJ) rose 7% and delivered total returns of 10.56% in 2025.

Telecommunications share Aussie Broadband Ltd (ASX: ABB) was the best performer, rising 40.78% to $5.04 per share.

Aussie Broadband shares ascended into the ASX 200 index in the December rebalance.

Utilities

The S&P/ASX 200 Utilities Index (ASX: XUJ) lifted 6.92% and delivered a total return of 13.22%.

Energy infrastructure company APA Group (ASX: APA) was the No.1 ASX 200 utilities share of 2025.

APA Group shares increased 28.69% to close out the year at $8.97 apiece.

Real estate & REITs

The S&P/ASX 200 Real Estate Index (ASX: XPJ) rose 5.03% and delivered total gross returns of 8.38% in 2025.

Property fund manager Charter Hall Group (ASX: CHC) outperformed its property sector peers.

The ASX 200 real estate investment trust (REIT) closed the year 70.38% higher at $24.45 per share.

Consumer discretionary

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) increased 1.77% and produced total returns of 4.09%.

Eagers Automotive Ltd (ASX: APE) outperformed its ASX 200 consumer discretionary peers with 112.78% share price growth.

The Eagers Automotive share price closed at $24.64 on 31 December.

Consumer Staples

The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) weakened 1.43% in 2025.

Dividends mitigated the capital loss, producing a positive total return of 2.01%.

A2 Milk Company Ltd (ASX: A2M) was the top-performing consumer staples share of the year.

The A2 Milk share price lifted 59.34% over the 12 months to finish the year at $9.21.

Energy

The S&P/ASX 200 Energy Index (ASX: XEJ) fell 2.25% and delivered total gross returns of 3.21%.

ASX 200 uranium explorer Deep Yellow Ltd (ASX: DYL) experienced the strongest share price growth.

Deep Yellow shares rose by 62.83% to finish the year at $1.84 per share.

Technology

The S&P/ASX 200 Information Technology Index (ASX: XIJ) crumbled 21.04%, with a total negative return of 20.08% in 2025.

Codan Ltd (ASX: CDA) was the best share in the technology sector last year.

Shares in the electronics solutions provider rose 76.58% to finish the year at $28.43.

Healthcare

Healthcare was the worst-performing sector of 2025.

The S&P/ASX 200 Health Care Index (ASX: XHJ) tumbled 24.91% and delivered a negative total return of 23.66%.

Neuren Pharmaceuticals Ltd (ASX: NEU) was the No. 1 stock for capital growth in the ASX 200 healthcare sector.

The Neuren Pharmaceuticals share price gained 48.88% to close at $18.61 on 31 December.

The post Fastest rising ASX 200 share of each market sector in 2025 appeared first on The Motley Fool Australia.

More reading

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• These 5 ASX All Ords shares were the fastest risers of 2025
• After soaring 310% in 2025, are Droneshield shares still a buy in 2026?
• Northern Star Resources trims FY26 gold guidance after soft December quarter
• Nickel Industries partners with Sphere Corp in landmark ENC deal

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband and DroneShield. The Motley Fool Australia has positions in and has recommended Apa Group. The Motley Fool Australia has recommended Aussie Broadband, Eagers Automotive Ltd, and Generation Development Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While no investment is ever guaranteed, some Australian companies are entering 2026 with tailwinds that are hard to ignore.

Here are three Australian shares that I believe have particularly compelling bullish catalysts as the next year approaches.

BHP Group Ltd (ASX: BHP)

BHP’s most important catalyst heading into 2026 isn’t iron ore, it is copper.

Copper prices have recently hit record highs, driven by a powerful combination of strong demand and constrained supply. Electrification, renewable energy, electric vehicles, and data centres are all highly copper-intensive, while new supply remains difficult and slow to bring online.

BHP owns some of the world’s most significant copper assets and has been steadily increasing its exposure to the metal. Unlike smaller, single-commodity producers, BHP can benefit from higher copper prices while relying on diversification and balance sheet strength to manage risk.

If copper prices remain elevated or continue to rise, I believe BHP is well-positioned to capitalise on this tailwind and translate it into stronger cash flows in 2026.

Goodman Group (ASX: GMG)

Goodman Group is an Australian share with a bright future, in my opinion.

The rapid expansion of artificial intelligence, cloud computing, and digital services is driving unprecedented demand for data centres, particularly in major global cities. Goodman has been steadily repositioning its global industrial property portfolio to capture this trend.

A recent announcement highlights just how significant this opportunity could be. Canada Pension Plan Investment Board (CPP Investments) has agreed to establish an A$14 billion European data centre partnership with Goodman. The 50/50 partnership includes an initial capital commitment of A$3.9 billion to develop data centre projects across Frankfurt, Amsterdam, and Paris.

This kind of long-term institutional backing validates Goodman’s strategy and provides capital to scale data centre development. I think this is a clear bullish catalyst as demand continues to accelerate.

Super Retail Group (ASX: SUL)

Super Retail Group offers a very different kind of catalyst. One that is tied to the consumer cycle.

After several tough years for household budgets, consumer spending is widely expected to improve in 2026 following interest rate cuts in 2025. That shift could provide meaningful relief for discretionary retailers like Super Retail.

It owns a portfolio of well-known Australian brands, including Supercheap Auto, Rebel, BCF, and Macpac. These businesses cater to automotive, sporting, and outdoor lifestyles, which are categories that often rebound as confidence returns.

The group has already spent recent years focusing on operational efficiency and customer loyalty. If consumer spending improves as expected, Super Retail could be well-positioned to benefit from operating leverage in 2026.

Foolish Takeaway

Bullish catalysts don’t guarantee success, but they can tilt the odds in investors’ favour.

BHP benefits from record copper prices and long-term supply constraints. Goodman Group is capitalising on surging data centre demand driven by AI, supported by major institutional investment. And Super Retail Group could see improving conditions as interest rate relief flows through to consumers.

For investors looking ahead in 2026, I think these three Australian shares are entering the year with momentum that’s worth paying attention to.

The post 3 Australian shares with bullish catalysts heading into 2026 appeared first on The Motley Fool Australia.

More reading

• $20,000 in excess savings? Here’s how to try and turn that into a second income in 2026
• 5 fantastic ASX ETFs for beginners in 2026
• How did the BHP share price perform in 2025?
• 12 best performing commodities of 2025
• 5 things to watch on the ASX 200 on Friday

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

Our spending and saving habits can make a big difference to how much our wealth grows over time, as it influences how much money is available to invest in ASX shares or other assets.

While it’s obvious that how much we pay for our home and transportation (the big spending categories) make a difference, there’s a cliché that spending regularly on a coffee (or, several years ago, it was avocado on toast) was holding people back from financial success.

I’m going to take a look at how much of a difference it could make to invest the daily coffee money instead.

Every dollar counts?

In modern life, spending money is largely unavoidable. Some people may decide to spend a bit of their discretionary budget on items that give them a bit of joy or a boost. I’m not going to say people shouldn’t spend a bit of money on themselves.

But, if growing wealth is a key goal for someone, then it could be a useful exercise to analyse where extra dollars could be found.

When we think of a regular discretionary item, such as a $7 coffee, it doesn’t sound like much. But, when expressed as a weekly amount of $49 or an annual figure of $2,555, it sounds more sizeable. Those little amounts do add up – $1,000 is made up of 1,000 individual dollars.

How much could the amount grow to if someone invested that amount?

The power of compounding with ASX shares

Saving and investing $7 per day (or $2,555 annually) for a number of years could become a very useful figure after a decade and even larger after two decades thanks to compounding. That’s particularly true if someone’s investments grow at an average of 10% per year, as the global and ASX share markets have done over the long-term.

Using the Moneysmart compound interest calculator, after 10 years the daily coffee amount would grow to $40,720 and after two decades it’d become $146,338.

While that’s not enough to retire on, it’s clear that it could be a very useful contributor to a typical Australian’s finances after a decade.

So, a $7 daily coffee is not stopping someone from becoming very rich. But this does show how a small daily amount can compound into a pleasing figure over time if it’s put into assets like ASX shares rather than spent.

Now imagine how much someone could have in 20 years if they deliberately saved and invested $50 per day towards building their finances.

The post Would dropping that $7 per day coffee actually help make you rich with ASX shares? appeared first on The Motley Fool Australia.

More reading

• 3 Australian shares with bullish catalysts heading into 2026
• 2 no-brainer AI stocks to buy hand over fist for 2026
• $20,000 in excess savings? Here’s how to try and turn that into a second income in 2026
• Is this ASX copper stock still worth buying after a 94% surge?
• Brokers name 3 ASX shares to buy 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Investors are always on the lookout for the next big technology breakthrough. And in recent years, artificial intelligence (AI) emerged as this potential game changer. The idea is AI will make the world a more efficient place, and importantly, help companies save money and increase their ability to rapidly innovate.

Many companies in the space — those developing or using AI — already have seen their revenue soar, and investors have taken notice. They’ve piled into these stocks and often reaped the rewards as AI stocks have driven gains in the S&P 500. And, with the AI market forecast to reach into the trillions of dollars in just a few years, there may be a lot more to gain well into the future.

Of course, there are many AI stocks out there, so choosing just a few may seem overwhelming. It’s important to consider each company’s path so far, competition, and prospects down the road. And with all of this in mind, two in particular look like no-brainer AI stocks to buy hand over fist for 2026. Let’s check them out. 

1. Nvidia

Nvidia (NASDAQ: NVDA) may be the most well-known AI stock on the planet thanks to its dominance in the AI chip market. The company makes the graphics processing units (GPUs) that fuel top AI tasks such as the training and inferencing of large language models (LLMs). The tech giant benefits from its early entrance into the AI market — and its focus on innovation has kept it in the top spot.

All of this has led to enormous gains in earnings, with revenue and net income climbing in the double and triple digits in recent quarters — and revenue has reached record levels. Nvidia has powered the early phases of the AI boom, but the company also is perfectly positioned to drive the next chapters, too. This is because Nvidia has tailored its chips to serve inferencing — seen as the next big growth area for AI — and expanded its offerings into a variety of products and services to suit customers’ AI needs.

Nvidia also has made smart strategic moves — for example, partnering with Nokia to develop AI for telecom, and just recently, acquiring the inferencing technology of start-up Groq.

So Nvidia is very likely to continue generating significant growth as the AI story unfolds, and that makes it a no-brainer buy for the coming year.

2. Amazon

Amazon (NASDAQ: AMZN) is both a user and seller of AI, and that’s helped it become one of the early winners of the AI race. The company applies AI to its e-commerce business, helping it design more efficient delivery routes, for example, and offer shopping assistance to customers. By making shopping easier and delivery faster for customers, they’re likely to keep coming back — and efficiency also helps Amazon lower its cost to serve.

Though you may associate Amazon mainly with e-commerce, the company’s biggest profit driver actually is another business: cloud computing. And through this unit, Amazon Web Services (AWS), the company is scoring a major AI victory.

AWS, the world’s biggest cloud provider, offers customers a wide variety of AI products and services, from leading Nvidia chips and AWS’ own chips targeting the cost-conscious customer to a fully managed AI service called Amazon Bedrock. And these are only a few examples. This along with AWS’ full range of offerings beyond AI have helped the unit reach an annual revenue run rate of $132 billion.

Amazon is a no-brainer AI stock to own because the company has delivered growth over the years thanks to its e-commerce and cloud businesses — so the company doesn’t depend uniquely on AI for revenue. But AI offers Amazon the potential for explosive growth in the years to come, making a positive picture even brighter.

And today, trading for only 32x forward earnings estimates, it’s a reasonably priced tech stock to add to any AI portfolio.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 2 no-brainer AI stocks to buy hand over fist for 2026 appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

More reading

• 5 fantastic ASX ETFs for beginners in 2026
• What are the 2 top artificial intelligence (AI) stocks to buy right now?
• I want to buy Amazon and these 4 US stocks in 2026
• 1 incredible reason to buy Nvidia stock before Feb. 25
• 5 most traded US stocks by Aussie investors this year

Adria Cimino has positions in Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Nvidia. The Motley Fool Australia has recommended Amazon and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX shares are among the most effective assets at generating income for investors. They could be a great choice to build a second income.

We all only have so much time to work for earnings. It’d be beneficial to have a portfolio of shares paying a growing source of passive income to our bank accounts that we don’t have to actively work for ourselves.

How much of a second income could a $20,000 investment pay? That entirely depends on the dividend yield.

For example, if someone’s portfolio had a 5% dividend yield, then $20,000 would generate $1,000 of annual income.

That’s just the first year, though.

If the payout grew at a compound annual growth rate (CAGR) of 7.5% for the foreseeable future, it would grow into $1,436 of annual income after five years and $2,061 after ten years.

That sounds good, right?

The next question is what to invest in.

Many of the most popular ASX-listed exchange-traded funds (ETFs) aren’t known for having good dividend yields. I’ll run through some compelling options.

Portfolio investments

When we think about investing in a particular company, like BHP Group Ltd (ASX: BHP), that money is allocated to just one business.

Wouldn’t it be great if we could put our money into an investment and it’s already diversified instantly?

There are some investments that can provide a pleasing mixture of both a good dividend yield and capital growth. I’m thinking of investment businesses like Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), MFF Capital Investments Ltd (ASX: MFF), and Future Generation Australia Ltd (ASX: FGX), which have a good long-term record of payout growth. I think these are great options for a second income.

I’ll also point out a couple of impressive actively-managed ETFs that target a dividend yield for investors and have strong long-term portfolio performance, such as WCM Quality Global Growth Fund (ASX: WCMQ) and Montgomery Global Equities Fund (ASX: MOGL).

Companies

There are a number of companies on the ASX that derive their earnings from operations.

I’d only focus on businesses that have an attractive long-term future and that have a history of growing their payouts and offer a good dividend yield today.

Some of the most appealing ASX dividend shares, in my opinion, are Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Medibank Private Ltd (ASX: MPL), Pinnacle Investment Management Group Ltd (ASX: PNI), Shaver Shop Group Ltd (ASX: SSG), and APA Group (ASX: APA).

Real estate investment trusts

The final area of investments that could unlock a pleasing second income is real estate investment trusts (REITs) – these are businesses that own significant commercial real estate.

There is a wide variety of REITs that Aussies can buy, including industrial, shopping centres, farms, self-storage, office, social, and healthcare.

Investors can benefit from the rental profits as well as the long-term appreciation of land prices. Some of my favourite REITs for income and capital growth are Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW), Rural Funds Group (ASX: RFF), and Abacus Storage King (ASX: ASK).

The post $20,000 in excess savings? Here’s how to try and turn that into a second income in 2026 appeared first on The Motley Fool Australia.

More reading

• 5 fantastic ASX ETFs for beginners in 2026
• How did the BHP share price perform in 2025?
• 12 best performing commodities of 2025
• 3 ASX dividend shares to buy for passive income in 2026
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Motley Fool contributor Tristan Harrison has positions in Future Generation Australia, Mff Capital Investments, Pinnacle Investment Management Group, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Apa Group, Pinnacle Investment Management Group, Rural Funds Group, Telstra Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended BHP Group, Mff Capital Investments, Shaver Shop Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Sandfire Resources Ltd (ASX: SFR) share price has had a huge year.

At the time of writing, Sandfire shares are trading at $18.05, up 0.73% today.

Following a record run, the key question is whether Sandfire still offers value at current prices.

Let’s take a closer look.

Why Sandfire shares have surged

Sandfire is one of the ASX’s pure copper producers, and that has worked strongly in its favour this year.

Copper prices have climbed sharply over the past 12 months, supported by tight global supply and strong demand from electrification, renewable energy, data centres, and infrastructure. Supply has struggled to keep pace with rising demand, creating a tighter market.

That backdrop has pushed copper prices close to record levels and lifted sentiment across the sector.

Higher copper prices have flowed through to stronger earnings and cash flow, particularly from Sandfire’s MATSA operations in Spain and Motheo in Botswana.

The company has also delivered steady operational updates, helping rebuild investor confidence after a more challenging period in recent years.

Laying the groundwork

Late in December, Sandfire also announced progress at the Kalkaroo copper-gold project in South Australia, alongside partner Havilah Resources.

Under the proposed deal, Sandfire can earn up to an 80% interest through a staged earn-in. While Kalkaroo is still some way from development, the update shows the company continuing to invest in its longer-term growth pipeline.

What are brokers saying?

Broker views on Sandfire are now more mixed, largely because the share price has already moved so far.

Macquarie recently trimmed its price target to $16.90, while UBS and Ord Minnett lifted theirs to $16.65 and $17.30, respectively. All of these targets sit below the current share price, suggesting much of the near-term upside may already be reflected.

While some brokers still like Sandfire’s exposure to copper, expectations are now much higher than they were a year ago.

Is Sandfire still a buy?

Sandfire is closely tied to copper, a commodity with strong long-term demand driven by electrification and the energy transition. The business is performing well, generating cash, and continuing to invest in future growth.

The main risk now is valuation. After rising 94% in 2025, the share price is no longer cheap, and any weakness in copper prices could put pressure.

For me, Sandfire still looks like a high-quality copper stock, but after such a strong run, I’d prefer to wait for a more attractive entry point.

For now, it remains firmly on my watchlist.

The post Is this ASX copper stock still worth buying after a 94% surge? appeared first on The Motley Fool Australia.

More reading

• 12 best performing commodities of 2025
• Can the sizzling rally in ASX 200 copper stocks boost BHP shares in 2026? 
• ASX 200 mining shares lead the market for a second week
• RBA watch: Sectors to target and avoid should interest rates rise – Expert
• Which stocks are looking good as rates appear to be heading north?

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.

With most brokers taking a break over the Christmas and New Year holiday period, research notes are few and far between right now.

But don’t worry! Listed below are three recent broker buy recommendations that still have plenty of upside potential.

Here’s why brokers think these ASX shares are in the buy zone:

CSL Ltd (ASX: CSL)

According to a note out of Morgan Stanley, its analysts retained their overweight rating and $256.00 price target on this biotechnology company’s shares. Despite all the doom and gloom around CSL at present, Morgan Stanley remains very positive on its outlook. This is due to the long term demand for immunoglobulins and plasma yield improvements from the Horizon program. The broker expects the latter to be supportive of a margin recovery in the key CSL Behring business. In light of this and recent share price weakness, Morgan Stanley sees a very favourable risk/reward profile here for Aussie investors. The CSL share price is trading at $173.20 on Friday afternoon.

Flight Centre Travel Group Ltd (ASX: FLT)

A note out of Citi revealed that its analysts have retained their buy rating on this travel agent giant’s shares with an improved price target of $16.75. This followed news that the company agreed to acquire online cruise platform Iglu for 122 million British pounds. Citi notes that this is the second cruise related acquisition the company has made in two years. It feels that it is an indication that management is making a strategic push into higher-value and less volatile leisure segments. In response to the acquisition, Citi lifted its earnings estimates and its valuation accordingly. The Flight Centre share price is fetching $15.02 on Friday afternoon.

Lovisa Holdings Ltd (ASX: LOV)

Analysts at Morgan Stanley upgraded this fashion jewellery retailer’s shares to an overweight rating with a $38.00 price target. According to the note, Morgan Stanley believes that recent volatility in Lovisa’s growth is transitory rather than structural. In fact, the broker believes that the company can grow its earnings per share by 83% through to FY 2028. This is expected to be supported by the company’s agility on product range and its best-in-class supply chain execution. As a result, Morgan Stanley thinks that the recent de-rating of its shares is an opportunity for investors to build a position in a competitively advantaged Australian retailer. The Lovisa share price is trading at $29.32 this afternoon.

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

More reading

• 5 fantastic ASX ETFs for beginners in 2026
• Best and worst performing ASX 200 sectors of 2025
• Top brokers name 3 ASX shares to buy today
• Shocking declines: Australian shares that disappointed investors in 2025
• 10 ASX shares I would buy in 2026

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in CSL and Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Lovisa. The Motley Fool Australia has recommended CSL, Flight Centre Travel Group, and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Metallium Ltd (ASX: MTM) are in a trading halt on Friday after the company requested a pause in its shares.

Before the halt, Metallium shares last traded at $1.065, giving the company a market capitalisation of roughly $670 million. The stock has delivered strong gains over the past year, which means today’s pause has caught investor attention.

The trading halt will remain in place until the company releases an announcement or normal trading resumes on Tuesday, 6 January 2026, whichever comes first.

What does Metallium do?

Metallium is a technology-focused metals recovery company.

The company does not operate traditional mines. Instead, it uses its patented Flash Joule Heating (FJH) technology to extract valuable metals from mineral concentrates, industrial waste, and recycled materials.

These materials can include refinery scrap, e-waste, red mud, and other by-products that are usually difficult or expensive to process.

The metals Metallium targets include rare earth elements, gallium, germanium, antimony, and gold. Many of these are considered critical minerals due to their importance in electronics, defence, renewable energy, and advanced manufacturing.

The company has operations and development activities in both Australia and the United States.

Why today’s halt matters

The company has confirmed that the pending announcement relates to a material feedstock supply agreement.

For Metallium, having access to reliable feedstock is critical. Without a steady supply of suitable material, the technology cannot be scaled or used at commercial levels.

A supply agreement like this could help reduce one of the key risks facing the business. It could also help keep future facilities running at higher levels and improve confidence around commercialisation timelines.

While the company has not shared details yet, the use of the word material suggests the agreement could be important for the business.

Metallium’s recent progress

Over the past year, Metallium has continued to position itself for commercial growth.

The company has advanced work on its US-based facilities, announced partnerships, and promoted its technology as a lower-cost and lower-emissions alternative to traditional metal processing methods.

This progress has helped support strong share price performance heading into 2026.

What to watch next

The next move depends on the detail in the upcoming announcement.

Investors will be looking for information on the scale of the feedstock agreement, its duration, and how it fits into Metallium’s plans to move toward commercial operations.

I’ll be watching closely when the announcement is released to see how meaningful it is for the business.

Until then, Metallium shares remain halted as investors wait for more detail.

The post Why this ASX small-cap stock is in a trading halt today appeared first on The Motley Fool Australia.

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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.

There are a lot of shares to choose from on the ASX 200 index.

To narrow things down for investors, let’s see what analysts at Morgans are saying about these popular options.

Are they buys, holds, or sells? Let’s find out.

Aristocrat Leisure Ltd (ASX: ALL)

This gaming technology company’s shares could be good value according to Morgans. The broker recently upgraded them to a buy rating with a $73.00 price target.

Morgans thinks that recent share price weakness has created a buying opportunity for investors. Especially given its belief that there has been no structural shift in market dynamics. It explains:

Aristocrat Leisure (ALL) delivered a solid FY25 result, posting healthy yoy growth following the sale of Plarium and full inclusion of NeoGames. Headline numbers were broadly in line with both our and market expectations, though a few soft spots emerged beneath the surface. Interactive (online casino-style games) was weaker than expected and punished, given it’s a smaller, faster growing segment, core to longer-term growth plans. Gaming Operations in North America (NA) were also soft, with only 4.1k net adds and lower-than-expected fee-per-day metrics weighing on performance.

Encouragingly, management expects the business to return to its normalised growth range moving forward. We see no structural shift in market dynamics and remain comfortable with the outlook. ALL reiterated its qualitative guidance for constant currency NPATA growth in FY26 (MorgansF: +10%). Following the result, our EPSA forecasts decrease ~6% across FY26-27F. Given recent share price weakness and a more compelling valuation, we upgrade ALL from Accumulate to Buy, with our 12-month target price reduced to $73 (from $77).

James Hardie Industries PLC (ASX: JHX)

Another ASX 200 share that the broker has been looking at is building materials company James Hardie.

A recent note reveals that a better than expected quarterly update has led to its analysts upgrading the company’s shares to a buy rating with a $35.50 price target.

Commenting on the investment opportunity, Morgans said:

Whilst the headline 2QFY26 result was largely released in early Oct-25, the details and outlook were incrementally more positive than previously anticipated. Upgraded guidance reflects a c.6% organic decline (vs pcp), as a challenging environment sees volume declines exceed price increases. However, this is better than feared and may prove to be a bottoming in the cycle as demand stabilises.

JHX is trading on c.17.1x FY26F as the business navigates its acquisition missteps, earnings downgrades and a challenging consumer environment in North America (NA). However, at EPS of c.U$1.04/sh in FY26 we see upside from both earnings and an undemanding PER (ave PER. 20x). It is on this basis we upgrade to a BUY recommendation and $35.50/sh target price.

TechnologyOne Ltd (ASX: TNE)

Finally, this enterprise software provider just misses out on a buy rating. Morgans has an accumulate rating and $34.50 price target on its shares.

The broker believes the company is on track to deliver on its long term annual recurring revenue (ARR) growth targets despite slightly softer numbers in FY 2025. It said:

TNE’s FY25 result was largely in line with our expectations with the group delivering, PBT growth of +19% to $181.5m ahead of its 13-17% guidance range, and in line with consensus. The negative share price reaction appears to have been driven by softer than expected ARR/NRR print, which saw a 2% miss to ARR growth expectations vs consensus, despite this, the group continues to deliver, with ARR of $554.6m (+18% YoY), which along with its NRR growth of 115% continues to see TNE On track to achieve its long-term ARR growth aspirations.

We modestly pare our EPS forecasts by 1-3% in FY26-28F. and move to an ACCUMULATE rating, with our target price $34.50 now reflecting a TSR of +19% following TNE’s post result share price movement.

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

More reading

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• 3 ASX 200 bargain buys heading into the new year
• The Australian stocks I’d trust for the next 10 years
• 10 ASX shares I would buy in 2026

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.