Austral Resources Australia Ltd (ASX: AR1) is deeply undervalued according to the team at Shaw and Partners, which said in a recent report that they believe the stock could more than quadruple.

So where do they get this confidence from?

Company reset succeeds

Austral has been pretty active of late, releasing its full-year profit report, but also acquiring a copper deposit outright from Glencore and raising a tranche of money, which will leave the company debt-free and cashed up to focus on production.

So let’s go through these in sequence.

Firstly, the company announced last week that it had made a net profit for the year of $11.9 million, up from a loss of $22.6 million the previous year.

Australia chair David Newling said it was a turning point for the company.

These results are the outcome of a long period of hard work and perseverance by the company’s employees, contractors and stakeholders. Following the re-quotation of the company’s securities on the ASX in early November 2025, it is extremely pleasing to report to our loyal shareholders that our revised strategy has enabled a financial reset of the company. Looking forward, and acknowledging our recent $65m placement in February 2026, the company is fully funded and ready to accelerate its production, production capability and exploration potential. Given the copper industry’s positive tailwinds, we find ourselves very well positioned to achieve our vision of becoming Australia’s next mid-tier copper powerhouse.

Regarding the capital raise, the company is raising $65 million at 9 cents per share, with $15 million coming from the Queensland Government’s Critical Minerals and Battery Technology Fund.

The money will be used to accelerate copper production at the company’s Rocklands and Mt Kelly mines, and to fund exploration at the Lady Annie pit extension.

Once the capital raise is complete, the company will be debt-free with $97 million in cash.

The company also said it was acquiring the Lady Loretta deposit from Glencore, in an announcement made in mid-February.

Shares looking cheap

Shaw and Partners has looked at this sequence of events and said in a note to clients that the ASX copper company has made the transition from a debt-laden junior mining company in a long-term suspension from trade, “to a well-capitalised producer with enormous growth potential”.  

The Shaw team added:

Austral is targeting production 50kt of copper per annum by late 2027. This will be achieved through a dual strategy focusing on resource development and exploration, particularly at Lady Loretta and Mount Clark/Flying Horse, as well as M&A and regional consolidation. Austral is positioning Rocklands as a critical regional processing hub, leveraging the fact that it is the only facility in NW QLD with excess third-party capacity.

Shaw said the company was also looking to process ore for third parties, targeting 70% of their own ore and 30% external ore, with a refurbishment of its Rocklands production facility expected to be finished by mid-2027.

Shaw has a price target of 42 cents on Austral shares, which would be a huge 356.5% return if achieved.

The post This ASX copper producer could more than quadruple in value: broker appeared first on The Motley Fool Australia.

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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.

If there’s one S&P/ASX 200 Index (ASX: XJO) share that has captured the imagination of growth investors in recent years, it’s Life360 Inc (ASX:360).

But after a period of sharp losses for the ASX tech share, investors are asking the obvious question: can the growth story keep running?

True tech script

Once known primarily as a family-tracking app, the ASX tech share has evolved into a global digital safety platform built on subscriptions, data insights, and advertising. Life360 now positions itself as a broader ecosystem play, connecting families through location sharing, crash detection, identity protection, and emergency assistance services.

True to the tech script, Life360’s share price has delivered big moves in both directions. Over the past 6 months, the ASX tech share stock has fallen 44%, pulling its market capitalisation back to roughly $6 billion. The start of 2026 has also been shaky, with the shares down close to 23% year to date at $24.72 at the time of writing.

Share price explosion

That said, context matters. Over the past five years, the ASX 200 tech share has surged more than 450%, rewarding long-term holders who backed the platform’s global expansion and subscription push early on. The recent pullback reflects valuation compression and shifting risk appetite rather than a collapse in the underlying business.

Operationally, the company continues to execute. Monthly active users have climbed toward 100 million globally, providing a vast funnel for subscription upgrades. Paid circles — its core subscription product — continues to grow, driving higher recurring revenue and improving operating leverage.

Layering ads to subscriptions

Management has also sharpened its focus on monetising free users through advertising and data partnerships. That monetisation strategy has accelerated through acquisitions and integrations. The Nativo deal, in particular, expands Life360’s higher-margin advertising capability.

By layering ads on top of subscriptions, the company aims to diversify revenue and lift average revenue per user without relying solely on subscriber growth.

Still, risks remain. Life360 pays no dividend, reflecting its growth-first strategy. Profitability has improved, but the model depends on sustained subscription growth and effective monetisation of non-paying users.

Advertising and data initiatives offer upside, yet they also invite privacy scrutiny and competition from larger technology players.

What next for the ASX tech share?

Analyst sentiment remains broadly constructive despite the share price weakness. Consensus forecasts compiled by TradingView lean toward a buy rating for the ASX tech share, with average 12-month price targets of $42.80, implying significant upside from current levels.

Some forecasts point to potential upside of 70% to nearly 100% if the company delivers on its growth plans.

Bell Potter recently reiterated a buy rating and set a $45 price target. This points to an 82% upside at current price levels.

The broker highlighted strong growth in paying circles and expects further conversion of monthly active users into subscribers. It also sees expansion into adjacent safety and advertising markets as a meaningful long-term driver.

The post Buy this ASX tech share now and hold it for 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This S&P/ASX 200 Index (ASX: XJO) stock has had a choppy start to 2026, giving back some of the strong gains it delivered over the past couple of years.

After climbing to record levels late in 2025, Light & Wonder Inc. (ASX: LNW) has seen its stock pull back almost 20% year to date. The ASX 200 gaming stock started the trading week with another loss of 7% to $124.85 at the time of writing.

The pullback suggests investors are balancing valuation concerns and market volatility against otherwise solid operating results. Let’s have a closer look.

Diversified gaming model

Light & Wonder operates across three core segments: land-based gaming, iGaming, and social gaming through its SciPlay division.

The ASX 200 stock supplies slot machines, gaming cabinets and casino systems to physical venues around the world, while also developing and distributing digital casino content.

This diversified model allows Light & Wonder to capture revenue from traditional casino floors as well as the fast-growing digital gaming market.

Substantial share buybacks

Financially, the business has continued to deliver growth. In its latest full-year results, Light & Wonder reported revenue of US$3.314 billion, alongside an 18% lift in adjusted net profit to US$567 million.

Earnings per share rose strongly and free cash flow jumped more than 40% year on year. The ASX 200 stock used that cash generation to fund substantial share buybacks, returning hundreds of millions of dollars to shareholders.

Recurring revenue, digital exposure

A key strength of Light & Wonder is its recurring revenue base. A significant portion of revenue comes from installed gaming machines and ongoing content agreements. This provides a more stable earnings profile than one-off equipment sales alone.

Its growing digital exposure also gives it a foothold in markets where online gaming is expanding rapidly. Strong cash flow generation further enhances flexibility, enabling debt reduction or additional returns for the ASX 200 stock shareholders over time.

Meaningful debt, legal risks

However, risks remain. The company carries a meaningful debt load following past acquisitions and corporate restructuring. And while manageable, leverage is something investors continue to monitor.

As a global gaming operator, Light & Wonder also faces regulatory and legal risks across multiple jurisdictions. Changes to gaming laws, tax rates or compliance requirements could affect profitability.

In addition, not all segments of the company perform evenly, with some variability in growth rates across divisions.

What next for the ASX 200 stock?

Analyst sentiment appears optimistic, with most market watchers rating the ASX 200 stock a strong buy. Earnings beats have reinforced confidence in management’s execution, but some market watchers remain mindful of valuation levels and revenue consistency.

After a strong multi-year run, the ASX 200 stock’s recent pullback may reflect a reset in expectations rather than a deterioration in fundamentals. The key question for 2026 is whether continued earnings expansion will be enough to reignite share price momentum after its recent stumble.

In February 2026, RBC Capital initiated coverage with an outperform rating. The broker set a 12-month price target of $190, implying 52% upside from current levels.

The post Can this beaten-down ASX 200 stock bounce back in 2026? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 Light & Wonder Inc. The Motley Fool Australia has recommended Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Following earnings season, two ASX small-caps have received positive outlooks from the team at Morgans. 

Based on current prices, and the projections from Morgans, these small-cap companies could rise roughly 60%. 

While ASX small-caps come with increased volatility, there can also be increased upside.

Here’s are two that could be worth monitoring.

Eureka Group Holdings Ltd (ASX: EGH)

Eureka Group Holdings Ltd provides rental accommodation for seniors and disability pensioners in safe and well-managed environments.

Year to date, its share price has risen 10.4%.

The company recently released H1 FY26 results.

According to Morgans, the small-caps reaffirmed FY26 guidance will see EBITDA grow 20%-25% (vs pcp) and Underlying EPS grow 7.5%-10%.

This is a result of a 5%-7% same-store rent growth and full earnings contributions from the $80m of assets acquired since CY25. 

In EGH we see sector leading earnings growth, Government backed revenues, and attractive valuation (trading at NTA). The return outlook, relative to risk, remains attractive as the secure income stream and valuation discount mitigates some of the risks, whilst the modest market cap means acquisitions can materially improve earnings.

Based on this guidance, the broker maintained its buy recommendation and $0.85 price target.

From yesterday’s closing price of $0.53, that indicates a 60% upside. 

Betr Entertainment Ltd (ASX: BBT)

The company provides sports and race betting services in Australia. Its main product lines include sports, horse racing, greyhound racing, harness racing, and on-track wagering.

It is aiming to expand its services into the US market as more US states change their legislation to permit legal access to online wagering services.

In 2026, its stock price has risen by approximately 16.6%.

It also reported 1H FY26 results during February. 

Following the results, the team at Morgans said the interim result was impacted by an unusually unfavourable trading period for bookmakers, particularly across racing during the peak Spring Carnival. 

While 2Q26 margins were heavily affected by customer-friendly outcomes, trading has normalised since December, and the business enters 2H26 with improved operating leverage following the completion of its major brand and marketing investment phase. Notwithstanding recent earnings pressure, we believe the company’s 2H26 and FY27 guidance is achievable, supported by normalising gross margins, improved promotional efficiency and a more disciplined cost base.

As a result, the broker reduced earnings forecasts across FY26-27F. 

It has maintained a buy recommendation and lowered its price target to $0.40. 

Despite lowering its target price, there remains approximately 63% upside based on yesterday’s closing price of $0.245. 

The post Two exciting small-caps with buy recommendations from Morgans appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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 Eureka Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Silver has cooled in recent sessions after a very strong run that saw it climb to a 4-week high of US$95.23 per ounce.

The precious metal is currently trading around US$89.87 per ounce. While that marks a noticeable pullback from its recent highs, silver is still up more than 180% over the past 12 months.

That is a remarkable gain for any major commodity and helps explain why some investors may now be choosing to lock in profits.

So, what has changed over the past few days?

Risk appetite shifts as oil surges

One key factor appears to be a shift in investor focus.

As tensions escalate in the Middle East between Iran, the United States and Israel, oil prices have jumped sharply. Brent crude has climbed toward US$79 per barrel, while West Texas Intermediate has pushed above US$71.

The Strait of Hormuz, which handles a significant share of global oil shipments, has become a central flashpoint. Fears of supply disruptions have driven money into energy markets, with traders positioning for higher crude prices if the conflict widens to include the Gulf states.

Against this backdrop, some capital appears to have rotated out of silver and into oil. While silver can benefit from geopolitical uncertainty, it also has strong links to industrial demand. If concerns about global growth increase, demand expectations may soften and pressure the silver price.

Strong US data and a firmer dollar

Recent US economic data has also weighed on sentiment.

Manufacturing price readings came in stronger than expected, adding to concerns that inflation remains persistent. At the same time, US bond yields have edged higher and the US dollar has strengthened.

That combination has put pressure on precious metals and sparked a short-term pullback after silver’s steep rally.

Still a powerful long-term uptrend

Despite the recent weakness, the long-term outlook is still very much positive.

The rally has been supported by firm investment demand, central bank buying across the precious metals sector, and steady industrial use in areas such as solar panels and electronics.

The white metal is still trading well above levels seen in early 2025. Technical support around the US$80 to US$85 range may now become an area investors watch closely.

If you’re seeking exposure without holding physical bullion, the Global X Metal Securities Australia Ltd (ASX: ETPMAG) offers one option.

The exchange traded product, which provides access to physical silver, is currently trading at $121.55. Its performance has closely tracked movements in the silver price over the past year.

What next for silver?

In the short-term, silver may remain volatile as markets react to Middle East tensions and shifting US interest rate expectations.

If oil continues to attract attention and bond yields move higher, silver may find it difficult to revisit recent highs. On the other hand, any escalation in geopolitical tensions or softer economic data could see demand for precious metals pick up again.

The post Silver pulls back from its 4-week high. Has the rally lost steam? 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.

The Stockland Corporation Ltd (ASX: SGP) share price is in focus today after the company announced a new 50/50 partnership with EdgeConneX to create, own, and operate a portfolio of Australian data centres. This move leverages Stockland’s strength in property development alongside EdgeConneX’s global data centre expertise.

What did Stockland report?

• Signed documentation to establish 50/50 partnership with EdgeConneX
• Joint venture aims to develop hyperscale data centres across Australia
• Stockland will contribute land, development and project management expertise
• EdgeConneX brings global capability in data centre solutions for cloud and AI

What else do investors need to know?

The new partnership will tap into Stockland’s portfolio of assets in major Australian markets, using their existing land holdings to support the growth of hyperscale data centres. These facilities are expected to cater to increased demand from cloud and AI service providers in Australia.

Stockland’s move signals a diversification into digital infrastructure. While the terms of the partnership and financial impact haven’t been disclosed, the collaboration aligns with the company’s ongoing strategy to innovate and grow in future-focused sectors.

What’s next for Stockland?

Going forward, Stockland and EdgeConneX plan to advance development of data centres on sites across key Australian markets, supporting growth in both cloud computing and artificial intelligence. Investors will be watching for further details on the project timeline and financial contributions as the partnership unfolds.

This partnership fits into Stockland’s broader approach of leveraging its core property strengths to capture new growth areas. Ongoing updates will likely reveal more about the scale and commercial potential of its data centre ambitions.

Stockland share price snapshot

Over the past 12 months, Stockland shares have declined 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which ha risen 12% over the same period.

View Original Announcement

The post Stockland shares in focus after unveiling EdgeConneX data centre partnership appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The team at Morgans has been busy reviewing a large number of results from ASX shares.

Three that have received accumulate ratings following their review are named below. Here’s what the broker is saying about them:

Coles Group Ltd (ASX: COL)

Morgans notes that this supermarket giant delivered a half-year result that was a touch softer than it was expecting. This was particularly the case with the Liquor business, which is battling subdued market conditions and high levels of competition.

Nevertheless, the broker saw enough in the result to upgrade Coles shares to an accumulate rating with a $22.90 price target. It said:

While COL’s 1H26 result was slightly softer than expected, execution remains strong in the core Supermarkets division. In line with commentary from Woolworths (WOW), COL said customers remain value conscious and the grocery market continues to be highly competitive. In Liquor, the market remains subdued with competitive intensity increasing, particularly in 2Q26 as Endeavour Group (EDV) stepped up its investment in pricing and promotions.

Despite the slight downgrade to earnings, our target price remains unchanged at $22.90 due to a roll-forward of our valuation to FY27 forecasts. With a 12-month forecast TSR of 15%, we upgrade our rating to ACCUMULATE (from HOLD). In our view, COL continues to perform well with key Supermarkets metrics such as customer scores, sales growth, cost discipline and store execution remaining solid. We hence view the recent share price pullback as an attractive entry point.

PEXA Group Ltd (ASX: PXA)

This property settlements company could be an ASX share to accumulate according to Morgans.

It was pleased with its performance in the first half, highlighting that its profits were well ahead of expectations.

In response, the broker has retained its accumulate rating with an increased price target of $17.01. It said:

PXA’s 1H26 core NPAT (A$21m) was up +90% on the pcp and double Visible Alpha consensus (A$9.3m).  FY26 Core NPAT guidance was also lifted from A$5m to A$15m, to $15m to A$25m. We saw this as a robust result overall. Whilst PXA clearly benefited from an improved volume environment in both Australia and the UK in 1H26, the +3% improvement in the group EBITDA margin highlighted strong cost control, and benefits from efficiency improvements.

In our view, revised FY26 guidance still appears conservative, whilst the key stock catalyst of the launch of the Natwest remortgage product is tracking to schedule. We lift our PXA FY26F/FY27F cash EPS by >+10% on the stronger than expected 1H26 result, and re-modelling for PXA’s new divisional disclosures. Our PT rises to A$17.01 (previously A$16.09). ACCUMULATE maintained.

TPG Telecom Ltd (ASX: TPG)

Finally, this telco delivered an FY 2025 result that was in line with expectations.

One item that Morgans was particularly pleased with was its mobile subscriber growth, which was strong. As a result, it has retained its accumulate rating and lifted its price target to $4.40. The broker explains:

TPG’s FY25 result was in line with guidance and consensus expectations, as was its underlying EBITDA and capex guidance for FY26. The highlight was continued strong mobile subscriber growth. For many years TPG/Vodafone has struggled to grow mobile market share. However, over the course of 1HCY25 and 2HCY25 it has ignited growth and outpaced peers in terms of mobile subscriber growth.

Its network quality and brands are resonating with consumers and medium-term mobile growth could soon become a trend. We make non-material underlying forecast changes. Our target price lifts to $4.40 from $4.20 and we retain our Accumulate recommendation.

The post Broker recommends investors accumulate these ASX shares appeared first on The Motley Fool Australia.

More reading

• What is Bell Potter saying about Coles shares?
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Motley Fool contributor James Mickleboro has positions in Endeavour Group and Woolworths Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PEXA Group. The Motley Fool Australia has positions in and has recommended PEXA Group and Woolworths Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Life360 Inc (ASX: 360) share price is in focus today after the company reported a strong 32% increase in FY25 revenue to US$489.5 million and a 26% jump in global paying circles.

What did Life360 report?

• Revenue: US$489.5 million, up 32% year-on-year
• Adjusted EBITDA: US$93.2 million, a 19% margin
• Net Income: US$150.8 million (boosted by a significant one-off tax benefit)
• Global Monthly Active Users (MAU): 95.8 million, up 20%
• Global Paying Circles: 2.8 million, up 26%
• Cash and Cash Equivalents: US$495.8 million, up 209%

What else do investors need to know?

Life360 delivered record growth in both its subscription and international segments. Subscription revenue climbed 33% (Life360 core subscriptions up 36% to US$347.1 million), while international MAU grew 26% year-on-year. The business is also scaling its advertising revenue and saw a 90% increase in ‘Other Revenue,’ driven mainly by new and existing partnerships.

Operating expenses increased by 26%, but fell as a percentage of revenue, highlighting management’s focus on efficiency as the business grows. Hardware revenue fell 10%, offset by higher unit shipments and increased promotional activity.

What’s next for Life360?

Life360 expects strong growth to continue in FY26, guiding for global MAU growth of 20% and revenue between US$640 million and US$680 million (up 31–39%). Subscription revenue is forecast to increase by at least 25%, and other revenue could more than double. Adjusted EBITDA is anticipated to range from US$128 million to US$138 million, maintaining a margin around 20%.

Management flagged that earnings will be weighted more heavily to the second half of the year due to investment and seasonality. The company continues to prioritise expanding internationally, monetising its free user base, and driving innovation—including leveraging artificial intelligence to improve the user experience and operational efficiencies.

Life360 share price snapshot

Over the past 12 months, Life360 shares have risen 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 12% over the same period.

View Original Announcement

The post Life360 FY25 earnings: revenue jumps, positive outlook for FY26 appeared first on The Motley Fool Australia.

More reading

• Stockland shares in focus after unveiling EdgeConneX data centre partnership
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

There have been some very big returns in the gold sector over the past 12 months.

But that doesn’t mean the gains are over. In fact, Bell Potter believes one ASX gold stock could jump almost 90% from where it trades today.

Which ASX gold stock?

The gold stock that Bell Potter is bullish on is Santana Minerals Ltd (ASX: SMI).

It is a New Zealand-based gold explorer and developer focused on the Bendigo-Ophir Gold Project (BOGP) near Queenstown in New Zealand.

This project is 90km northwest of OceanaGold’s world-class Macraes Gold Mine, which is New Zealand’s largest active producing gold mine.

What is the broker saying?

Bell Potter notes that the ASX gold stock has raised funds to support the development of the BOGP. It said:

SMI has completed the first tranche of a $130m institutional share placement, with a retail Share Purchase Plan (SPP) targeting to raise up to a further A$30m. […] The funds raised are expected to meet SMI’s equity finance component of construction and pre-strip phases of the development of its 100%-owned Bendigo Ophir Gold Project (BOGP) in New Zealand.

Specifically, this includes commencement of early infrastructure civil works, further exploration of high-priority, near-mine and regional targets and the procurement of long-lead plant and infrastructure items. The funding will accelerate the project development timeframe and enable an immediate start on the receipt of final project consents, with the Fast Track Approval decision due on 29 October, 2026.

Bell Potter believes this is a strong endorsement and de-risks things materially. It adds:

This is a strong endorsement of SMI management and the BOGP. Assuming a fully subscribed SPP ($30m) and Tranche 2 ($17m) being approved, SMI will hold cash of ~$240m following the placement. Pre-production CAPEX for the BOGP is A$277m (incl. 10% contingency) as per the July 2025 Pre-Feasibility Study (PFS) update. We anticipate the BOGP easily supporting debt financing of 60% (A$170m), thereby positioning SMI as fully funded with this equity placement.

We view the de-risking of the equity portion of project funding as an excellent outcome for SMI, seven months ahead of the scheduled FTA decision. With this update we have also incorporated our latest gold price forecasts, an allowance for freehold land acquisitions and associated reduced royalty rates. These changes drive a net increase to our valuation for SMI, with the biggest driver being our updated gold price forecasts.

Big potential returns

According to the note, the broker has retained its speculative buy rating on the ASX gold stock with an improved price target of $1.70 (from $1.50).

Based on its current share price of 91 cents, this implies potential upside of 87% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

SMI is well funded and has successfully submitted its FTA development application for the BOGP, for which a decision is due on 29 October 2026. The BOGP is one of the most advanced and highest margin greenfield gold projects on the ASX. Our valuation is increased by 13%, to a rounded $1.70/sh. We retain our Speculative Buy recommendation.

The post Why this ASX gold stock could jump almost 90% appeared first on The Motley Fool Australia.

More reading

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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.

I get excited when some of my favourite Australian stocks go on sale, and the last few months have seen a number of names go through some difficult declines.

It’s during times like this when I’m reminded of one of the simplest, most useful phrases that legendary Warren Buffett has ever said: “Be fearful when others are greedy and greedy when others are fearful”.

With that in mind, I’m going to highlight two Australian stocks that look great value after their recent declines. They are expected to continue delivering growing profits in the coming years. I’d happily buy them with $6,000.

REA Group Ltd (ASX: REA)

What’s more Australian than property? REA Group is one of the best ways to gain exposure to the property market, in my opinion. It owns a number of property businesses including realestate.com.au, realcommercial.com.au, flatmates.com.au, PropTrack, Mortgage Choice and plenty more.

As the chart below shows, the REA Group share price has declined more than 30% in the past six months, at the time of writing, despite reporting a solid HY26 result.

Despite a 6% decline in national listings, REA Group’s core operations revenue grew 5%, operating profit (EBITDA) grew 6% and net profit increased 9%. The dividend was hiked by 13% and the business also announced a $200 million share buyback which it is now enacting.

The company is benefiting from a stronger ‘buy yield’, meaning it’s generating more revenue from the same listing.

I’m not sure how many property listings there are going to be over the rest of FY26, but the recent rate rise by the RBA could lead to more forced sellers. Another rate rise this year – which isn’t impossible – could mean even more listings.

Additionally, the Australian population and the number of properties continue to grow over time, giving the business a larger total addressable market (TAM). I’m also hopeful that the company’s US and Indian investments can become meaningful contributors to earnings as those markets become more digital.

It continues to command the most buyer and seller activity by some distance, with AI (agents) supposedly being a very small part of the picture (according to UBS).  

The broker UBS thinks the Australian stock’s net profit can rise to $622 million in FY26 and $726 million in FY27. That would put the current REA Group share price at 31x FY26’s estimated earnings.

Siteminder Ltd (ASX: SDR)

Siteminder is a leading software provider for thousands of hotels around the world. The company’s offerings help clients with their operations and maximise their revenue.

The business gives clients data, analysis and insights on demand throughout the year, to help them decide on how to price their rooms and also connect with room distribution providers.

Surprisingly, the Siteminder share price has declined by more than 45% over the past six months, as the chart below shows.

The Australian stock is rapidly growing its financials and I’m expecting this to continue. HY26 revenue rose 25.5% to $131.1 million and the annualised recurring revenue (ARR) grew 29.7% to $280.3 million.

This period saw net property additions of 2,900 to 53,000, while the average revenue per user (ARPU) increased 11.3% to $435. It’s benefiting from the additional software initiatives it’s rolling out and the rising product adoption.

Profitability is rapidly increasing and this makes me believe the business has a promising future. It saw adjusted operating profit (EBITDA) surge 132% to $12.3 million. Ultimately, rising earnings should support a higher Siteminder share price.

The broker UBS thinks the business could see a net loss after tax of $1 million in FY26 and make a net profit of $77 million by FY30. That puts the business at 15x FY30’s estimated earnings.

The post 2 strong Australian stocks to buy now with $6,000 appeared first on The Motley Fool Australia.

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