Dividend investors are always looking for income, especially when markets feel uncertain and share prices move around.

While many people focus on banks, telcos, or infrastructure stocks for dividends, one ASX 200 company currently stands above the rest for yield.

The payout on offer is far higher than most large Australian shares. In fact, it sits comfortably above 10% based on recent dividends paid.

So, which ASX 200 stock is it?

A dividend yield that stands above the rest

At current prices, Yancoal Australia Ltd (ASX: YAL) is offering the highest dividend yield in the ASX 200 based on dividends paid over the past year.

Shares are trading just shy of the $5 mark. Thanks to large cash returns to shareholders, Yancoal’s trailing dividend yield sits well into double digits. That puts it ahead of more traditional income stocks like the major banks and energy producers.

In comparison, the Commonwealth Bank of Australia (ASX: CBA) offers a dividend yield of around 3%, while Whitehaven Coal Ltd (ASX: WHC) sits closer to 2%.

Why the payouts have been so large?

Yancoal is one of Australia’s largest coal producers, exporting both thermal and metallurgical coal to overseas markets.

Coal prices surged in recent years, driven by tight supply and strong global demand. That allowed Yancoal to report very strong earnings and cash flow.

With costs under control and debt low, the company was able to pay out large dividends. In some years, those payments were far bigger than what investors normally expect from ASX 200 companies.

Dividends are strong, but not stable

While the yield looks attractive, this is not a reliable or predictable income stock.

Yancoal does not pay steady dividends every year. Its payouts rise and fall with coal prices, production levels, and market conditions.

That means today’s yield is based on past profits, not a promise of future payments.

Coal prices have come down from their highs, but they remain above long-term averages. According to Trading Economics, both thermal and metallurgical coal prices are still high enough to support profitable operations, even if margins are not as strong as before.

This suggests Yancoal can still generate cash, just not at the same level as during peak conditions.

What brokers are saying?

Broker views on Yancoal are mixed, but most price targets remain above the current share price.

Recent broker forecasts generally point to 12-month price targets between $5.50 and $6.00, with some more bullish estimates higher. That suggests potential upside of around 10% to 20% from current levels.

Several brokers continue to rate the stock as a buy, highlighting Yancoal’s strong balance sheet, low debt, and low-cost operations. These strengths give the company room to keep paying dividends, even as coal prices ease.

Not all analysts agree, however. Morgan Stanley remains more cautious, warning that earnings and dividends could fall as coal prices normalise. It has a $4.45 price target, which implies downside of around 10% from the current share price.

Foolish bottom line

Yancoal currently sits at the top of the ASX 200 dividend yield table.

That headline yield will appeal to income investors, but it comes with volatility. Dividends are closely tied to coal prices and are unlikely to stay this high.

For now, I am happy to watch from the sidelines. If coal prices weaken and Yancoal shares fall below $4, the risk and reward could start to look more attractive and worth reassessing.

Until then, Yancoal remains an interesting income stock, but not one I am rushing to buy today.

The post Guess which ASX 200 stock has the highest dividend yield? appeared first on The Motley Fool Australia.

More reading

• Was it a good idea to invest $10,000 in CBA shares in 2025?
• Did the ASX 200, NASDAQ 100, or S&P 500 perform better this year?
• Would I be mad to buy more CBA shares near $160?
• CBA shares down 16% since peak amid core advantages ‘slowly being eroded’
• Better dividend stock in December: Woodside or Whitehaven?

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.

Shares in Evolution Mining Ltd (ASX: EVN) have had a huge run over the past year. The gold miner’s share price is up around 160%, putting it among the best performers in the ASX gold sector.

That rise has been driven by higher gold prices and improving performance across the business. With the stock sitting near recent highs, the focus now shifts to what comes next and whether Evolution can keep delivering.

Gold prices are pushing the sector higher

The gold price has been the biggest driver behind recent gains in mining shares.

Gold is trading at record highs above US$4,500 an ounce after rising strongly over the past year. Prices are well above where they were 18 months ago.

One major driver has been strong buying from central banks, particularly in emerging markets. Many countries have been increasing their gold reserves as a way to reduce reliance on the US dollar and protect against global uncertainty.

Investor demand has also picked up. With geopolitical tensions still elevated and financial markets moving around, gold has regained its appeal as a safe-haven asset.

Expectations of interest rate cuts in 2026 have also supported prices, as gold tends to perform better when rates are falling.

Together, these factors have created a strong backdrop for gold prices and helped lift sentiment across the entire gold mining sector.

A snapshot on the business

Evolution’s recent updates show the business is now in a much stronger position than it was just a few years ago.

The company operates six mines across Australia and Canada, including Cowal, Ernest Henry, Mt Rawdon and Red Lake. Together, these assets produce around 750,512 ounces of gold each year, giving Evolution a solid position within the sector.

Production has become more stable as key assets have matured, while management has taken a more disciplined approach to costs. Evolution’s all-in sustaining costs have been tracking around $1,572 per ounce, leaving healthy margins at current gold prices.

As more free cash flow starts to come through, Evolution has greater flexibility to reduce debt, pay dividends, or reinvest across its existing mine portfolio.

At the same time, gold prices at record highs and easing capital spending should allow stronger gold prices to translate more directly into cash flow and balance sheet strength.

Is there still upside from here?

After climbing 160% in a year, Evolution shares are no longer cheap. Short-term pullbacks are possible, especially if gold prices move lower or investor sentiment shifts.

However, if gold prices stay high and Evolution continues to deliver steady results, the longer-term outlook could remain positive. Strong cash flow gives the company more flexibility and supports shareholder returns.

Evolution may not look cheap today. However, for investors bullish on gold, it remains a strong large-cap option heading into 2026.

The post Up 160% in a year, could Evolution Mining shares keep climbing? appeared first on The Motley Fool Australia.

More reading

• At record prices, why don’t ASX gold miners pay high dividends?
• Gold has just smashed record highs and these 3 ASX 200 mining stocks are riding the wave
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Friday
• Bell Potter names the best ASX gold stocks to buy in 2026

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.

On Christmas Eve, the S&P/ASX 200 Index (ASX: XJO) finished the week in the red. The benchmark index fell 0.4% to 8,762.7 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 to open flat

The Australian share market looks set for a flat start to the week following a subdued finish to the last one on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day right where it closed last time out. In the United States, the Dow Jones and the S&P 500 fell a fraction, whereas the Nasdaq edged 0.1% lower.

Oil prices drop

It could be a poor start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices dropped on Friday night. According to Bloomberg, the WTI crude oil price was down 2.75% to US$56.74 a barrel and the Brent crude oil price was down 2.6% to US$60.64 a barrel. This was driven by concerns over a looming supply glut and a potential Ukraine peace deal.

BHP and Rio Tinto on watch

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares could have a good session on Monday after their NYSE-listed shares rose over 1.5% on Friday night. A surging copper price could have been behind this, with the base metal hitting a record high in London and Shanghai. Strong demand and soft supply have helped the metal this year.

Gold price storms higher

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good start to the week after the gold price stormed higher on Friday night. According to CNBC, the gold futures price was up 1.1% to US$4,552.7 an ounce. Rate cut optimism gave the gold price another boost.

Accumulate Infratil shares

Morgans thinks that investors should be accumulating Infratil Ltd (ASXL IFT) shares. The broker has initiated coverage on the global infrastructure investment company with an accumulate rating and $11.30 price target. It said: “Infratil (IFT) is a high quality, concentrated structural growth investor targeting 11-15% pa post fee returns. IFT’s investors have enjoyed c.18% pa returns over the last ~30 years. Assuming delivery of target returns, post fees the Net Asset Value (NAV) should nearly double over the next five years and create substantial value for equity holders.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• BHP, Macquarie, and Westpac: Naughty or nice? 3 popular ASX shares examined
• Here are the top 10 ASX 200 shares today
• NEXTDC receives approval for new S4 Sydney Data Centre
• Record copper price shines a light on BHP shares and these two other ASX 200 mining stocks
• Ventia wins $100m NSW cleaning contract, boosting services outlook

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

2025 was a rough year for the Aussie share market. Higher interest rates and weaker demand pushed many ASX shares lower, including several well-known names.

When a share price drops sharply, people begin to question the business and its outlook.

Here are 3 ASX shares that had a tough year and could be worth watching as we move into 2026.

Reece Ltd (ASX: REH)

Reece shares struggled throughout 2025 as housing and construction activity slowed across Australia, New Zealand, and the United States. Higher interest rates reduced new building and renovation activity, putting pressure on sales and margins.

Recent results showed weaker earnings, which disappointed investors who had become used to steady growth. Brokers have also taken a more cautious view in the short term, pointing to uncertainty around when construction markets will recover.

Despite that, Reece remains a high-quality business with a strong distribution network and leading market position. The company has navigated housing cycles before, and when demand eventually stabilises, earnings should begin to recover.

If interest rates ease and building activity picks up, Reece shares could start to look much more attractive heading into 2026.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine Estates shares were among the worst performers on the ASX in 2025, falling more than 50% over the year. Weaker global wine demand, higher costs, and disappointing earnings all weighed on the share price.

Management has responded by cutting costs and resetting expectations. While near-term conditions remain challenging, several brokers believe much of the bad news is already priced into the share price.

There has also been renewed investor interest in the business, particularly given its portfolio of premium global wine brands. If demand improves in key markets or cost pressures ease, earnings could stabilise faster than expected.

There are risks, but the recent sell-off has made Treasury Wine’s potential recovery more appealing than a year ago.

WiseTech Global Ltd (ASX: WTC)

WiseTech shares fell sharply in 2025 as global freight volumes normalised and investors pulled back from high-growth technology stocks.

Slower near-term growth and ongoing investment weighed on margins, which unsettled investors. However, the company remains the global leader in logistics software through its CargoWise platform.

Several brokers continue to see value at current levels, with price targets sitting well above the current share price. Those analysts argue that the market has become overly pessimistic about WiseTech’s long-term growth potential.

If global trade activity improves and margins begin to recover, WiseTech could be well placed for a rebound into 2026.

Foolish takeaway

All 3 ASX shares have fallen more than 40% in 2025, but for different reasons.

Each has short-term challenges, but none of the businesses look fundamentally broken.

For investors willing to look beyond the near-term market noise, these sell-offs could create opportunities if conditions improve in 2026.

The post Down over 40% this year, could these 3 ASX shares bounce back in 2026? appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares could rise 20% to 40%
• 5 amazing ASX 200 shares I want Santa to bring me for Christmas
• Here are the top 10 ASX 200 shares today
• Why Clarity, DroneShield, St Barbara, and Treasury Wine shares are charging higher today
• Down 56% in 2025, are Treasury Wine shares a good buy for 2026?

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

With the new year approaching, it’s a great time to consider future investment decisions. There are plenty of quality ASX 200 companies that could be set to bounce back next year. 

Overall, it’s been a modest year for the S&P/ASX 200 Index (ASX: XJO), with the benchmark index rising close to 7%. 

However, it has shown resilience since losing more than 7% amidst liberation day tariffs in early April. 

In fact, the ASX 200 is up almost 20% since April 7. 

It hasn’t been smooth sailing for all ASX 200 stocks though. 

With that in mind, here are three buy-low candidates that lost significant ground in 2025. 

REA Group Ltd (ASX: REA)

The Motley Fool team has been hotly covering REA shares since it declined 30% since late August. 

The online real estate advertising company behind realestate.com.au has fallen significantly this year despite its continued market dominance and healthy fundamentals. 

In November, the company released Q1 results that included: 

• Revenue of $429m, up 4% YoY
• EBITDA excluding associates of $254m, an increase of 5%.

This ASX 200 stock closed before Christmas trading at $184.35.

However, brokers are tipping a bounce back in 2025. 

Morgans has an accumulate rating on REA shares with a price target of $247.

Additionally, Macquarie has a neutral rating with a $220.00 price target.

These targets indicate an upside between 19% to 34%. 

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre owns and operates a vast network of travel agencies, operating under various brands across the world, including Student Universe, Travel Money, Corporate Traveller, and Topdeck.

Its share price is down more than 8% this year. 

However the recent announcement of a key UK acquisition has drawn optimism from brokers. 

Morgans placed a price target of $18.38 on this ASX 200 stock following the announcement, which indicates an upside of roughly 20%. 

Meanwhile, TradingView has a 12 month price target of $16.62, indicating a 9% upside. 

Breville Group Ltd (ASX: BRG)

Breville is an Australian designer and distributor of small kitchen and home appliances to more than 70 countries.

Its share price has fallen more than 15% this year, making this ASX 200 stock a buy-low candidate. 

Earlier this month, it drew attention from Macquarie. 

The broker listed it as a top pick due to its promising long-term growth potential in coffee, product development, and market expansion. 

It has a price target of $39.20 price target on this ASX 200 stock. 

This indicates an upside of 31.38%. 

The post Should you buy low on these ASX 200 shares before the new year? appeared first on The Motley Fool Australia.

More reading

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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 Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Christmas Eve was a relatively flat trading day for the S&P/ASX 200 Index (ASX: XJO). 

The index closed before Santa’s arrival, falling approximately 0.4%. 

However there were a few ASX 200 stocks that had strong performances, building on big gains over the month of December. 

Zimplats Holdings Ltd (ASX: ZIM)

This ASX 200 materials stock engages in the production of platinum group and associated metals. The firm’s metals include platinum, palladium, rhodium, iridium, ruthenium, nickel, gold, copper, cobalt and silver.

It operates four underground mines, an open-pit mine, and various processing facilities, all located in Zimbabwe.

Its stock price rose an impressive 8.24% on Christmas eve. 

Its stock price is now up 40% over the last month, and roughly 83% year to date. 

The company has benefited from an increase in metal prices this year. 

In FY25, the company reported steady growth: 

• Revenue (+8%)
• Gross profit margins improved to 13% (FY2024: 11%) on higher metal prices. 
• Profit after tax increased to US$40.5 million (FY2024: US$8.2 million). 

IGO Ltd (ASX: IGO)

On Christmas eve, IGO shares gained more than 2.27%. 

The company owns and operates the Nova nickel-copper-cobalt operation, as well as the Forestania and Cosmos nickel operations – all of which are in Western Australia.

After last weeks’ gain, this ASX 200 stock is now up an impressive 21.8% in the last month. 

It’s been one of the many lithium shares enjoying a bull run in the back half of the year. 

Global lithium prices have lifted to the highest levels in 18 months, while spodumene (a lithium bearing mineral) is trading at its highest levels in two years.

Year to date, IGO shares have now risen more than 66%. 

MA Financial Group (ASX: MAF)

MA Financial Group is a diversified financial services company, specialising in managing alternative assets, lending, corporate advisory, and equities.

After tumbling in the back half of the year, ASX financials stocks are now slowly rebounding in December. 

The S&P/ASX 200 Financials Index (ASX: XFJ) is up 4.88% in the month of December. 

MA Financial Group has been among the stocks that has performed the best. 

It is up 13.22% in the month of December. 

This rise has come on the back of the acquisition in late November of Hyperdome Town Centre shopping centre for $678.7 million.

Year to date it is now up approximately 88%. 

The post Finishing strong – 3 ASX 200 stocks soaring in December appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Is it too late to buy surging ASX lithium shares like Mineral Resources and Liontown?
• Here are the top 10 ASX 200 shares today
• Wondering which ASX shares to buy for 2026? Experts weigh in
• ASX mining shares dominate stocks hitting 52-week highs

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

The CSL Ltd (ASX: CSL) share price has tested investor patience like few other blue chips in recent memory. After falling almost 40% during 2025, CSL shares are now trading around the $170 mark. That is a level not seen for many years for one of Australia’s most consistent long-term performers.

With 2026 approaching, investors are asking a simple question. Is there more downside ahead, or has most of the bad news already been priced in?

Why CSL shares struggled so badly in 2025

CSL’s weak share price performance was not caused by a single event. Instead, it was the result of several issues compounding over time.

Profit guidance fell short of expectations, costs stayed higher than investors wanted, and the recovery in plasma collections took longer than hoped. Currency movements also weighed on earnings, adding to the pressure on the share price.

The company also announced a $500 million cost-cutting plan. While sensible, some investors took it as a sign that costs had grown too high. Confidence continued to slip, and CSL moved from market favourite to one of the most sold large-cap stocks on the ASX.

What the market may be missing

Despite the share price slump, CSL’s core businesses remain intact. Plasma collection volumes have been improving, Seqirus continues to deliver steady vaccine earnings, and CSL Vifor is beginning to settle after a difficult integration phase.

Just as importantly, CSL is moving out of a heavy investment cycle. As collection efficiency improves and cost controls tighten, operating leverage should begin to re-emerge.

Several brokers think the market has been too hard on CSL. While some, including Macquarie, have lowered their price targets and taken a more neutral view, most still see value well above the current share price. Many analysts believe CSL shares could be worth between about $260 and $300.

Could CSL shares really crash again?

For CSL shares to fall sharply again, fundamentals would likely need to weaken further. Issues with plasma volumes, margins, or execution could all cause renewed pressure.

That said, expectations are much lower than they were a year ago. The valuation has come back, confidence is low, and it wouldn’t take much good news to support the share price.

Foolish takeaway

After a brutal year, much of the bad news appears to be reflected in the current CSL share price.

While short-term volatility may persist, it is becoming harder to argue CSL looks expensive at these levels. Whether 2026 delivers a rebound will depend on management executing on its plans.

For now, the risk profile appears far more evenly balanced, with long-term upside becoming clearer.

The post Will CSL shares crash again in 2026? appeared first on The Motley Fool Australia.

More reading

• 3 no-brainer ASX 200 shares to buy with $5,000
• 5 amazing ASX 200 shares I want Santa to bring me for Christmas
• My 5 top stocks to buy in 2026
• Should you buy CSL shares before 2026?
• I think these ASX blue chips shares are primed for a major rebound in 2026

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

There have been plenty of emerging stories in 2025 amongst global investing. Many investors were fortunate to cash in on individual stocks of ASX ETFs that had exposure to these markets. 

For example, hot topics this year have been the boom in ASX gold and silver shares.

Similarly, global defence emerged as a stock market winner. 

These sectors have been hotly covered – and rightly so. 

But there have been other niche themes that have brought investors strong returns. 

While many ASX ETFs are designed to track broad markets, this year more and more funds have joined the ASX targeting more niche themes.

This kind of investing is called thematic investing. 

Here are some ASX ETFs that fit into that category that have enjoyed big gains this year on the back of targeting niche sectors or themes. 

Betashares Video Games and Esports ETF (ASX: GAME)

Put simply, this fund provides a portfolio of leading global video gaming and esports companies.

According to Betashares, the video games and esports industry has been growing strongly, with industry revenue, profit margins, and the number of global players all forecast to increase in the coming years.

Video games and Esports now generate more revenue than the movie and North American sports industries combined. 

At the time of writing, it is made up of 37 holdings. 

Three countries dominate the weighting of this fund: 

• Japan (35.1%)
• United States (32.6%)
• China (21.0%)

In 2025, the fund has risen by an impressive 26.72%. 

VanEck Vectors Video Gaming And eSports ETF (ASX: ESPO)

This fund focussed on the Esports and Gaming industry has also had success in 2025.  

The VanEck fund gives investors exposure to a diversified portfolio of the largest and most liquid companies involved in video game development, esports as well as related hardware and software globally.

At the time of writing it is made up of 25 holdings, with a similar geographic profile to the previous fund: 

• Japan (29.0%)
• United States (28.3%)
• China (21.1%) 

In 2025, the fund has risen by almost 12%. 

Global X S&P Biotech ETF (ASX: CURE)

This ASX ETF invests in companies that potentially stand to benefit from further advances in the field of genomic science, such as companies involved in gene editing, genomic sequencing, genetic medicine/therapy, computational genomics, and biotechnology.

Essentially, this niche fund provides global exposure to emerging areas within the health care sector, at the intersection of science and technology.

It has more than 125 holdings, with no individual company representing more than 1.45% of the total fund. 

This theme has brought strong returns in 2025, with this fund rising almost 28%. 

The post 3 ASX ETFs to target in the new year – the booming themes of 2025 appeared first on The Motley Fool Australia.

More reading

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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 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.

After a strong year, many ASX financials stocks stumbled between November and early December. 

The S&P/ASX 200 Financials (ASX:XFJ) index dropped almost 9% from November 10 to December 1. 

This may have created some buy low opportunities in the sector, and one ASX financials stock that fits the bill is Infratil Ltd (ASX: IFT). 

It is down approximately 12% in 2025, which includes a drop of more than 8% since November 12.

The company is engaged in the ownership of an infrastructure business, which provides services to individuals and communities.

The team at Morgans recently initiated coverage on this financials stock. This included an accumulate rating and a healthy upside following the stock price fall in the past month or two. 

Receives investment grade credit rating

The positive report from Morgans came a day after S&P Global Ratings assigned its ‘BBB+’ long-term and ‘A-2’ short-term issuer credit ratings to Infratil on December 22.

According to S&P Global, the outlook on the long-term rating is stable. 

A report from S&P Global said the rating on Infratil reflects its stable funding, underpinned by substantial permanent capital, and its access to committed bank facilities through many funding relationships. 

It did note the company’s material single-name concentration risk and the illiquid nature of the asset portfolio partially offset these strengths.

Morgans view on this financials stock

In a note out of the broker last week, Morgans said Infratil is a high quality, concentrated structural growth investor targeting 11-15% per annum post fee returns. 

The broker said investors have enjoyed 18% per annum returns over the last 30 years. 

Assuming delivery of target returns, post fees the Net Asset Value (NAV) should nearly double over the next five years and create substantial value for equity holders. 

Morgans also said the share price is currently trading at a 30% discount to NAV. 

Assuming a return to a more normalised 20% discount would lift the share price by ~10% and from there NAV needs to lift for the share price to lift. 

Both seem likely, in our view. We initiate coverage with an ACCUMULATE rating and $11.30 target price. This report is the first part of a series that reviews IFT’s assets in more detail.

Price target upside 

This ASX financials stock closed trading pre-christmas at $10 per share. 

Based on the target price of $11.30, this indicates an upside of 13%. 

Elsewhere, TradingView has a one year price target of $11.61 which indicates roughly 16% upside. 

Online brokerage platform Selfwealth lists this financials stock as undervalued by 17%. 

The post Morgans just initiated coverage on this financials stock tipping strong upside appeared first on The Motley Fool Australia.

More reading

• Infratil gets investment grade credit rating in funding milestone

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 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.

In typical fashion, shares of Tesla (NASDAQ: TSLA) have exhibited extreme levels of volatility, swerving between lanes of pessimism and optimism. But through its wild ups and downs, the top purveyor of electric vehicles (EVs) has performed well in 2025. Shares are up 22% this year (as of Dec. 22), and they trade near record levels.   

The automotive disruptor is in the early innings of some huge projects that could reshape its entire financial picture. But there are strong arguments on both the bull and bear sides of the debate here. So, should you buy this EV stock before 2026? 

Tesla is working on innovations that could provide a long-term financial boost

Autonomous driving technology is the project that investors are most focused on. Tesla has a history of overpromising and under delivering — not only on the capabilities of its full self-driving (FSD) technology, but also on the timeline of when features will be launched.

The business took a step forward in June, when its robotaxi ride-hailing service started in Austin, Texas, even though it was in a very limited and restricted capacity. Tesla’s robotaxis are also in the San Francisco Bay Area, and there are plans to enter a handful of new cities in 2026.

Elon Musk said on the second-quarter 2023 earnings call that its robotaxi service could have “quasi-infinite” demand. Obviously, the total addressable market is huge, as people all over the world need to get from point A to point B.

Tesla believes that as costs come down and safety improves, most people won’t need to buy their own cars anymore. And that could bring high-margin revenue from its FSD software on a global level, both from a dedicated company-owned robotaxi fleet and from customers who choose to let their EVs be used in the ride-hailing service.

The company is also focused on expanding production of its humanoid robot, known as Optimus. The goal is to boost the annualized output to 1 million of these by the end of next year. Besides handling certain tasks in factory settings, these machines can have consumer applications.

Again, Musk isn’t shy when it comes to his forecast; he believes that robotics will one day represent 80% of his company’s market value.

The market is exuberant over this struggling car company

The EV company has never traded in line with its automotive peers. The stock has a price-to-earnings ratio (P/E) of 329. Detroit automakers Ford Motor Company and General Motors trade at P/E multiples of 12 and 17, respectively. And supercar luxury brand Ferrari can be purchased at a P/E of 38. So Tesla is on another planet.

The market’s excitement shows just how convinced investors are that Musk’s company will make good on its promises, namely that its FSD software and its robots can drive unprecedented financial success at some point down the road This could happen, but no one has any idea when.

At the current valuation, Tesla isn’t a smart buying opportunity before the calendar turns to 2026. Investors would be paying a nosebleed P/E for a struggling business. Automotive revenue gains have disappointed, and profit margins have been dwindling.

There are notable headwinds getting in the way. The EV market is more crowded these days, making it harder for Tesla to stand out. In the U.S., the end of the $7,500 tax credit for EVs can also definitely pressure demand, forcing consumers to think if paying up for one is worth it.

The market for Tesla’s vehicles has exhibited slower growth recently than industry experts had hoped for. Perhaps we’re past the phase of early adopters rapidly buying EVs, a group that was easy to sell to. The next chapter of growth could be more difficult to come by since it can be challenging to convince certain consumers to make the switch from gas-powered or hybrid vehicles when the experience or the economics aren’t as compelling.

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

The post Is Tesla stock a buy before 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.

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Neil Patel 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 Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Ferrari and General Motors. The Motley Fool Australia has recommended Ferrari. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.