The Lynas Rare Earths Ltd (ASX: LYC) share price has surged to a fresh 5-month high on Monday after the company confirmed a major regulatory milestone.

At the time of writing, shares are up 4.32% to $19.80. Earlier in the session, the stock climbed to $20.30, its highest level since October 2025.

The rally follows a strong few weeks for the rare earths producer, with momentum building after last week’s half-year results.

10-year licence renewal removes key overhang

Lynas announced today that its Malaysian operating licence has been renewed for a further 10 years, commencing 3 March 2026.

The renewal secures the long-term future of its Malaysian processing operations, a critical link in Lynas’ global rare earths supply chain.

Management said the extended term provides greater investment certainty for the company and its customers. Importantly, it also removes a regulatory overhang that has periodically weighed on investor sentiment in past years.

Governments are prioritising supply chain security and reducing reliance on China. Against that backdrop, the decision strengthens Lynas’ position as the largest producer of separated rare earths materials outside China.

Strong half-year result underpins momentum

The latest announcement builds on solid half-year numbers released just last week.

For the 6 months to 31 December 2025, revenue climbed to $413.7 million, up from $254.3 million a year earlier. Net profit after tax (NPAT) jumped to $80.2 million, compared to $5.9 million in the prior corresponding period.

EBITDA increased significantly to $152.4 million, reflecting improved pricing and higher NdPr volumes.

Lynas ended the period with $1.03 billion in cash. The strong cash position supports its balance sheet and gives the company flexibility to fund expansion initiatives under its ‘towards 2030’ growth strategy.

What are the charts signalling?

From a technical perspective, Lynas is trading near the upper Bollinger Band, suggesting strong upward momentum.

The relative strength index (RSI) is sitting around 76, which places the stock in overbought territory. While that can indicate short-term consolidation risk, strong trends can remain overbought for extended periods.

The $20.30 level now acts as near-term resistance. A decisive break above this level could open the door to a retest of the $22 region, where the stock previously peaked in 2025.

On the downside, initial support appears around $18.50, with stronger support near $16 if sentiment were to cool.

Can the rally continue?

The outlook will hinge on rare earth pricing and Lynas’ ability to execute on its expansion plans.

Earnings momentum has clearly improved, the balance sheet remains strong, and regulatory uncertainty in Malaysia has now been addressed. That provides a firmer foundation than the company has had in previous cycles.

That said, after a strong run and with the RSI in overbought territory, some consolidation would not be surprising. Whether the stock can push above $20.30 may depend on continued strength in the rare earths markets and broader investor sentiment toward critical minerals.

The post Lynas shares jump to 5-month high. Can this rally continue? appeared first on The Motley Fool Australia.

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• Why Ampol, EOS, Lynas, and Woodside shares are roaring higher today
• 5 of the best ASX 200 stocks to buy and hold in February revealed
• Lynas Rare Earths shares: Malaysia licence renewed for 10 years
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• These ASX 200 shares jumped 15% or more in February

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

ASX defence shares are charging higher as escalating conflict in the Middle East fuels expectations of higher military spending.

Tensions between the United States, Israel, Iran, and Hezbollah intensified over the weekend. Iran reportedly launched waves of Shahed 136 one-way attack drones toward targets across the Gulf region, including the United Arab Emirates.

The escalation has pushed oil prices higher and put defence capability back at the centre of investor focus.

Here are 3 ASX defence stocks leading the charge.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 10.50% today to $4 apiece.

That brings its gains to roughly 24% over the past week.

DroneShield specialises in counter-drone detection and mitigation systems. Its technology is designed to identify, track, and disable hostile drones, including systems similar to the Shahed 136 platform reportedly used in recent attacks.

As drone warfare becomes more prominent, demand for anti-drone solutions has accelerated globally. Governments are reassessing defence readiness, particularly around critical infrastructure, airports, and military facilities.

The latest developments in the Middle East have only highlighted how relevant DroneShield’s technology has become.

Elsight Ltd (ASX: ELS)

The Elsight share price is up 10.99% today to $5.25.

Even more striking, the stock has surged almost 50% in just 1 week.

Elsight provides secure connectivity solutions for drones and autonomous systems. Its Halo platform enables reliable data transmission across multiple communication networks, which is critical for military, emergency response, and unmanned operations.

As drone deployment expands across conflict zones, secure and uninterrupted connectivity becomes increasingly important. That longer-term shift appears to be driving renewed interest in the company.

However, after such a rapid move, volatility is likely to remain high in the near term.

Electro Optic Systems Holdings Ltd (ASX: EOS)

The EOS share price is currently up 10.58% to $9.93. Earlier in the session, the stock was up more than 15%.

EOS shares are now up close to 40% over the past week.

The company recently announced it had secured a contract with a Middle Eastern country for its remote weapon systems (RWS). These systems are designed to deliver highly accurate defensive fire, including against drone threats.

In a region now experiencing live drone and missile attacks, that capability is clearly front of mind for defence planners. The timing of the contract has strengthened the view that EOS sits in a strategically important segment of the market.

Is it too late to buy?

History shows defence spending usually climbs when global tensions rise. And once governments lift budgets, they rarely reverse those decisions quickly.

Right now, drone warfare and counter-drone defence are at the forefront of modern conflicts.

All 3 stocks have surged in a matter of days. That reflects genuine shifts in global risk, but it also means expectations have moved quickly.

The real test will be execution. Can these companies convert stronger demand into sustained revenue growth and improve margins?

If tensions in the Middle East persist, these defence names could remain in favour. But after such rapid gains, investors should expect volatility and manage position sizes carefully.

The post These ASX defence stocks are rallying. Is it too late to buy? appeared first on The Motley Fool Australia.

More reading

• Why DroneShield shares soared in February and are rocketing into March
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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 positions in and has recommended DroneShield and Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I think the best ASX stocks to own are ones that can grow their earnings (and dividends) over time. This gives a business the ability to provide both passive income and capital growth. I want to highlight why Nick Scali Ltd (ASX: NCK) could be a top choice today for passive income.

Nick Scali is a furniture retailer that sells through three different business divisions – in Australia, it has Nick Scali and Plush. Nick Scali is also working on a UK expansion plan.

It has an impressive dividend history. The company increased its annual dividend each year between FY13 and FY23. However, profitability has struggled in the annual results since then due to inflation, interest rates, and challenging trading conditions.

But the FY26 half-year result saw a recovery in conditions, profit, and the dividend. It was the largest interim dividend since FY23. Let’s look at why this is a good time to invest in the ASX stock for passive income.

Exciting outlook for the ASX stock

The numbers the business reported for the first six months of the 2026 financial year were very positive.

In HY26, the business revealed that group revenue increased 7.2% to $269.3 million, the gross profit margin improved 310 basis points to 65.4%, operating profit (EBIT) climbed 25% to $68.5 million, and underlying net profit after tax (NPAT) increased 23.1% to $41 million.

Looking at the individual markets, the UK business is going through a transition to Nick Scali branding. It’s refurbishing and rebranding a number of stores, which is why UK revenue declined 38.5% to $17.6 million and the underlying net loss worsened by 100% to $5.6 million.

ANZ revenue increased 13.1% year over year, and ANZ net profit jumped 29.4% to $46.6 million.

Statutory net profit jumped 36.4% to $41 million, allowing the business to hike its interim dividend per share by 30% to 39 cents per share.

The performance in January was positive too, with ANZ written sales orders increasing by 3.1% year over year. A further five new stores are confirmed to open in ANZ, and additional opportunities are being reviewed. Extra stores are a big driver of earnings.

A majority of the UK store refurbishment program is now complete, and it has “seen improvement in written sales compared to the prior year”. Total January written sales came to $6.7 million.

The four Nick Scali-branded stores in the UK that were trading in both January 2025 and January 2026 saw like-for-like sales growth of 32%. The gross profit margin is steadily rising in the UK, too, as it sells more Nick Scali items.

The projection on CommSec suggests that Nick Scali could pay an annual dividend per share of 78.1 cents in FY26. That translates into a forward grossed-up dividend yield of 6.3% after today’s 5% decline in the Nick Scali share price, following a volatile weekend of geopolitical events.

Making $200 a month of passive income

The ASX stock doesn’t pay dividends monthly, so it’s good to think of the annual total and then divide it by 12.

To reach $200 per month of annual passive income, we’re talking about a total of $2,400. To receive that amount, that would require 3,033 Nick Scali shares, assuming the forecast becomes correct.

With the prospect of rising dividends in the coming years, I think this ASX stock is a solid long-term buy, particularly with its potential in the UK for store network growth and margin improvements.

The post I’d buy 3,033 shares of this ASX stock to aim for $200 a month of passive income appeared first on The Motley Fool Australia.

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

The S&P/ASX 300 Index (ASX: XKO) gained a healthy 1.3% last week, with one ASX 300 stock doing a lot of the heavy lifting.

The fast-rising stock in question is Nuix Ltd (ASX: NXL).

Shares in the investigative analytics and intelligence software provider closed up a blistering 41.2% last week, finishing on Friday trading for $1.92 apiece.

Amid some broader market weakness today, shares are giving back some of those gains on Monday, with Nuix shares down 4.4% in afternoon trade at $1.83 each.

Which could make today an opportune time to buy shares in the resurgent ASX 300 stock, according to the analysts at Moelis Australia.

Why did the ASX 300 stock rocket last week?

Nuix shares kicked off last week with a bang following the release of the company’s half-year earnings results (H1 FY 2026).

Among the highlights, the company achieved a 15.2% year-on-year increase in revenue for the six months to $121.2 million. And statutory earnings before interest, taxes, depreciation and amortisation (EBITDA) of $26.5 million were up by 72.7%.

On the bottom line, the ASX 300 stock swung back into profit, reporting a statutory net profit after tax (NPAT) of $11.1 million, compared to a net loss of $10.4 million reported in H1 FY 2025.

“The first half results demonstrate further momentum in our business transformation, with ACV growth of 8.4% and particularly impressive Nuix Neo growth of 148%,” Nuix CEO John Ruthven said on the day.

Why Moelis is bullish on Nuix shares

Commenting on Nuix’s half year results, Moelis said:

New customer growth was a highlight of the 1H26 result. The release of new product features (including cloud and SaaS delivery) supports Nuix Neo’s competitive position. 1H26 Annualised Contract Value (‘ACV’) enters 2H26 at levels close to the (lower end of) management’s FY26e range. However, ACV growth from existing customers was anaemic.

Among the reasons Moelis believes the ASX 300 stock remains materially undervalued is the longer-term share price decline.

Despite last week’s surge, Nuix shares remain down 48.8% since this time last year.

According to Moelis:

Nuix’s share price has retraced significantly. Elevated investor uncertainty is associated with management changes and the threats from AI-enabled competition. Management outlined strategies and progress aimed at enhancing NXL’s competitive position (investing in product) as well as expanding its sales capabilities.

The 1H26 result demonstrated Nuix can win new business. Management highlighted the progress underway on its product roadmap. However, Nuix must arrest the declining contract values from existing and renewing customers

Connecting the dots, the broker has a buy rating and a $3.10 price target on the ASX 300 stock.

That’s more than 69% above the current Nuix share price.

The post Up 41% last week, why this buy rated ASX 300 stock is tipped to leap another 69% appeared first on The Motley Fool Australia.

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

Shares in Lunnon Metals Ltd (ASX: LM8) have more than doubled in value over the past year, but at least one broker says the ASX gold stock could double again.

Lunnon is currently transitioning from developer to producer, having carried out its first ore blast just last week with delivery of ore to the run of mine (ROM) pad at its Lady Herial project now ongoing.

The company only discovered the Lady Herial deposit two years ago, marking a swift transition from discovery to imminent production.

More gold in the ground

Lunnon also upgraded the mineral resource estimate at the project last week, with a 49% increase in gold ounces to 54,200.

Managing director Edmund Ainscough said regarding the upgrade last week:

Lady Herial reporting more than 50,000 ounces in mineral resource is an outcome we could not have imagined back in early 2024 when we refocused our activities on gold. Having mining up and running and first ore already on the ROM, whilst the gold price tops $7,000 per ounce, is equally pleasing. The focus now switches to evaluating how the balance of the deposit not in the current mine plan can be profitably extracted, be that by a second stage of open pit mining, underground development, or possibly both. In parallel, as the ore purchase agreement model starts to deliver cash flow and with the heavy lifting of drilling at Lady Herial completed by the exploration team, they can pin their ears back and crank up the rigs to tackle our portfolio of high-ranking targets on the rest of our leases at St Ives.

The company said that free cash flow from Lady Herial was expected “in the near future”.

Lunnon metals added:

This, coupled with the company’s existing cash balance and recently secured small working capital facility, sees the company well placed to continue its aggressive program to evaluate all gold opportunities at Foster-Baker whilst enabling the company to consider new opportunities within the district.

ASX gold stock looking cheap

The team at Shaw and Partners has looked at the ASX gold stock’s update and said it bodes well for the company.

Shaw and Partners said the company is poised to generate “significant cash flow” which it can use to fund its “prolific Kambalda targets”.

Shaw and Partners added:

The current Stage 1 open pit is just the beginning, as the company is simultaneously exploring the potential for underground mining to follow the high-grade shoots as they extend deeper into the fresh rock. Lady Herial remains open down plunge, and technical studies are evaluating a second stage of mining through open-pit cut-backs or underground development to extract the remaining 30,100 ounces.

Shaw and Partners has a price target of 92 cents on Lunnon Metals shares, compared with 47 cents currently.

Lunnon Metals was valued at $102.7 million at the close of trade on Friday.

The post This newly-producing ASX gold company could almost double in value: Broker appeared first on The Motley Fool Australia.

More reading

• These ASX defence stocks are rallying. Is it too late to buy?
• I’d buy 3,033 shares of this ASX stock to aim for $200 a month of passive income
• Up 41% last week, why this buy rated ASX 300 stock is tipped to leap another 69%
• This ASX 200 energy stock just jumped 13%. Here’s why
• Leading brokers name 3 ASX shares to buy today

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

It’s been a rough start to the week’s trading thus far for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares this Monday. At the time of writing, the ASX 200 has dropped by 0.45%, dragging the index back under 9,160 points. It’s a stark contrast to last week’s string of new record highs. But let’s talk about one ASX 200 energy stock that is going the other way.

That ASX 200 energy stock is Karoon Energy Ltd (ASX: KAR). Karoon, an ASX oil and gas stock, is currently the best-performing share on the entire ASX 200 index. Karoon shares closed at $1.54 each last week. But this morning, those same shares opened at $1.80 and are currently up a hefty 13.1% at $1.75 each.

So what’s going on here?

Well, we know it’s not the earnings report that Karoon delivered last week. As we covered at the time, this report was not well-received by investors. Karoon shares tanked 3% on Thursday when the report was released, and dropped another 2.5% on Friday.

There’s another reason why Karoon shares are making up all of that ground and more this Monday.

Why are ASX 200 energy stocks like Karoon rocketing today?

As you’re probably aware of by now, the United States and Israel launched a dramatic full-scale attack on Iran over the weekend. This has resulted in a massive spike in the price of oil over the last 24 hours.

According to Trading Economics, West Texas Intermediate (WTI) crude futures jumped more than 10% this morning to over US$75 a barrel (an eight-month high) before dipping back down to about US$70 a barrel soon after. Brent crude followed a similar pattern. It rocketed up 12% to over US$80 a barrel at one point before easing to around US$75 a barrel at the time of writing.

Iran is a major oil producer in the Middle East. But a potential disruption of Iranian oil would not impact global supplies, given that the country was already under steep economic sanctions. What would impact supplies is the closure of the Straight of Hormuz. This, according to many reports, is already underway.

This geopolitically-significant Strait is located directly on Iran’s southern coast, and is a narrow chokepoint that facilitates the passage of around 20% of the world’s oil supply. Iran has long threatened to close this Straight if threatened, and, according to the BBC, seems to be attempting to do so right now. The report alleges that “at least three” oil takers have been attacked by the country’s armed forces in recent hours.

Whilst painful for much of the world’s economy, such a scenario would arguably benefit Karoon and other ASX 200 energy stocks. That seems to be what the market is anticipating today, anyway, judging by what has happened to the Karoon share price. As well as other ASX 200 energy stocks. This will be an illuminating corner of the markets to watch this week.

The post This ASX 200 energy stock just jumped 13%. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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 so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Catalyst Metals Ltd (ASX: CYL)

According to a note out of Bell Potter, its analysts have retained their buy rating and $14.60 price target on this gold miner’s shares. This follows the release of its half-year result, which revealed revenue and EBITDA that were up strongly on the prior corresponding period and in line with expectations. In light of this, Bell Potter continues to view Catalyst Metals as an undervalued gold producer (versus peers) with a clear line of sight in expanding its gold production, mineral reserves, and lowering its cost base through the hub and spoke model. The Catalyst Metals share price is trading at $8.79 on Monday afternoon.

Light & Wonder Inc. (ASX: LNW)

A note out of Morgans reveals that its analysts have upgraded this gaming technology company’s shares to a buy rating with a trimmed price target of $195.00. This follows the release of full-year results that were in line with expectations. Morgans notes that this was driven by strong Gaming and iGaming performances, which offset continued softness in SciPlay. One highlight according to the broker was management’s articulation of AI as both an offensive growth lever and a defensive moat. Morgans views AI as enhancing Light & Wonder’s competitive edge rather than eroding it. As a result, it views the recent share price weakness as disconnected from the durability of its land-based earnings base. And with an undemanding valuation, it thinks investors should be snapping up shares today. The Light & Wonder share price is fetching $132.13 at the time of writing.

NextDC Ltd (ASX: NXT)

Analysts at Macquarie have retained their outperform rating on this data centre operator’s shares with a trimmed price target of $20.80. According to the note, the broker was pleased with NextDC’s half-year results and highlights that its forward order book demonstrates strong demand and execution. Looking ahead, the broker feels that the company has a significant growth opportunity, a strong market position, and optionality with regard to funding. The NextDC share price is trading at $13.45 on Monday.

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

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Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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.

If I had $20,000 to invest in ASX growth shares this month, I’d continue to focus on businesses with strong structural tailwinds, scalable models, and the potential to grow earnings meaningfully over the next five to ten years.

Importantly, I’d also spread that $20,000 across multiple ideas rather than betting everything on a single stock.

Here’s where I would look.

Xero Ltd (ASX: XRO)

Xero remains one of the highest-quality software businesses on the ASX, in my opinion.

It operates in a large and still underpenetrated global market for small business accounting software. With strong recurring revenue, improving margins, and ongoing expansion into North America and other international markets, Xero has a long runway for growth.

Software businesses with subscription revenue and high switching costs can become powerful long-term compounders. While Xero’s share price can be volatile, I think its structural positioning makes it a compelling growth holding.

If I were allocating the $20,000 today, I’d consider placing around $7,000 into Xero shares as a core global growth exposure.

Pro Medicus Ltd (ASX: PME)

Pro Medicus is another standout growth story.

The company provides imaging software to hospitals and healthcare networks, particularly in the United States. It has built a reputation for high-quality products, long-term contracts, and strong margins.

While some investors have expressed concerns about potential AI disruption, management has consistently indicated that it views AI as an opportunity to enhance its platform rather than a threat. Given its track record of winning large contracts and expanding its installed base, I think the long-term growth story remains intact.

I would consider allocating around $6,000 here, accepting short-term volatility in exchange for long-term upside potential.

Life360 Inc. (ASX: 360)

Life360 is another ASX growth share I’d look at buying.

It operates a global family safety app ecosystem with a large and growing user base. As the company scales, there is significant operating leverage potential, particularly as subscription revenue grows and new monetisation features are introduced.

This is not a low-risk stock, but for a growth-focused portion of a portfolio, I like its global opportunity and expanding product ecosystem.

For a $20,000 allocation, I might place around $4,000 into Life360, recognising that it could be more volatile than the other names.

Codan Ltd (ASX: CDA)

To round things out, I would add Codan.

Codan benefits from strong demand for its metal detection products, particularly when gold prices are elevated, and also has exposure to communications equipment and drone-related technology through its Domo Tactical Communications business.

It combines cyclical tailwinds with structural growth in security and defence-related markets. That mix gives it a slightly different growth profile compared to pure software names.

I would consider allocating the remaining $3,000 to this ASX growth share.

Why this mix of ASX growth shares works for me

This portfolio spreads $20,000 across four different growth themes: global software, healthcare technology, consumer app ecosystems, and industrial and defence-linked growth.

It avoids concentration in a single sector and balances higher-quality compounders with slightly more aggressive opportunities.

Growth investing always involves risk. Earnings can disappoint. Multiples can compress. Market sentiment can shift quickly.

But by focusing on businesses with scalable models, strong competitive positions, and long-term tailwinds, I think this type of portfolio gives a solid chance of outperforming over time.

The post Where to invest $20,000 in ASX growth shares this month appeared first on The Motley Fool Australia.

More reading

• What are analysts saying about CAR, Wesfarmers, and Xero shares?
• These ASX 200 shares sank 20% or more in February
• Diversification: Why earnings geography matters more than company location
• How to make $25,000 of passive income a year
• 3 Australian growth stocks to buy in 2026

Motley Fool contributor Grace Alvino has positions in Codan. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360 and Xero. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have a higher than average tolerance for risk, then it could be worth hearing what Morgans has to say about the small-cap ASX shares in this article.

Here’s why the broker currently rates them as buys:

Airtasker Ltd (ASX: ART)

Morgans was pleased with this small jobs marketplace provider’s performance in the first half of FY 2026. It notes that the company delivered double-digit revenue growth thanks to solid performances at home and overseas.

In response, the broker has retained its buy rating with a trimmed price target of 51 cents. It said:

It was a resilient 1H26 result for Airtasker, delivering ~13.5% group revenue growth to ~A$29m. Its established marketplaces saw EBITDA growth of ~11% to ~A$15m. Domestic metrics appear sound (e.g. uptick in booked tasks and brand salience), and we remain pleased with the momentum seen in ART’s offshore marketplace build-out (UK/US revenue +85% and 380% on the pcp respectively).

We make minor adjustments to our topline forecasts (details below), we also include the additional $5m cash marketing costs into our 2H numbers along with the recent capital raise. Our price target is lowered to A$0.51. Buy maintained.

Epiminder Ltd (ASX: EPI)

Another small-cap ASX share that has been given the thumbs up by Morgans is Epiminder.

Morgans notes that there were no surprises with its half-year results, with everything in line with expectations. As a result, the broker has reaffirmed its speculative buy rating and $2.33 price target on its shares. It said:

Debut 1HFY26 results held no material surprises relative to IPO disclosures, and are more strategically important than financially complex. Since listing, EPI has secured a favourable Medicare reimbursement ruling, completed the first US Minder implant and signed nine Tier-1 US centres for DETECT, albeit enrolment remains early (3 patients to date).

Cash runway is confirmed through DETECT completion and G1 development into CY28, with execution on enrolment cadence now the key swing factor for sentiment. We make no changes to our FY26-28 forecasts or A$2.33 DCF-based target price. SPECULATIVE BUY rating maintained.

SomnoMed Ltd (ASX: SOM)

A third small-cap ASX share that is being tipped as a buy by Morgans is SomnoMed.

It highlights that the sleep disorder treatment company has started FY 2026 positively and is in a good position to achieve its full-year guidance.

As a result, it has retained its speculative buy rating and 99 cents price target on its shares. It commented:

SOM’s 1H26 result places the company in a strong position to deliver at least the low end of its FY26 guidance, with clear upside potential. The half delivered solid double-digit revenue growth, meaningful operating leverage and significantly improved manufacturing efficiency, giving SOM a structurally strong base heading into 2H.

With around half of revenue and the majority of EBITDA already achieved in 1H, the 2H requirements to meet both the low and high ends of guidance appear modest and achievable. Continued momentum across Europe and North America, combined with expanded capacity and improved turnaround times, provides a credible pathway for SOM to finish the year toward the upper end of its range if current trends persist. No change to valuation or positive outlook but note upside risk as 2H progresses.

The post Morgans names 3 small-cap ASX shares to buy appeared first on The Motley Fool Australia.

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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 recommended Airtasker. 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.

Bauxite miner Metro Mining Ltd (ASX: MMI) reported its full year results recently, posting a major increase in net profit and also announcing a share buyback.

The results have confirmed the ASX small cap miner’s status as undervalued in the eyes of the team at Shaw and Partners, which reiterated a bullish price target for the shares.

More on that later. First, let’s have a look at the results.

Record performance

Metro Mining said in a statement to the ASX last week that it had shipped a record 6.2 million tonnes of bauxite, which was a 9% increase year-on-year.

The company’s net profit came in at $142.3 million, up from a loss of $22 million the pervious year, and the company had $57.5 million in cash and $58.9 million in senior debt at the end of the year.

The company’s guidance for this year’s production was set at 6.6-7.1 million tonnes of bauxite, with Metro’s confidence allowing it to start a share buyback.

As the company said:

Due to confidence in the company’s financial position, operational performance and long-term outlook the board believes that the current share price does not reflect the underlying value of the company’s assets and prospects. As part of its ongoing capital management strategy, Metro is pleased to announce its intention to undertake an on-market share buy-back of up to 5% of shares on issue.

ASX small-cap shares looking cheap

The Shaw and Partners team had a look at the full year result and said it was “strong”, with underlying EBITDA up 95% to $73 million and net debt close to zero.

They added:

The result was delivered despite a weaker bauxite price in 2H25, delivery of bauxite into low price legacy contracts, and a number of operational issues which have now been addressed.

 They also believed the production guidance could be conservative.

Metro has released production guidance for CY26 of 6.6-7.1Mt (Shawf 6.8Mt). In CY25 the flow sheet proved itself capable of delivering in excess of 7Mt, and so we view the guidance as realistic but conservative. CY25 was impact by an unseasonal tropical low in April which caused the Skardon River channel to silt up, and restrict the amount of bauxite which could be loaded on barges. The operation also suffered from an unplanned barge loader outage in October and weather disruptions in late December.

Shaw and Partners has a price target of 15 cents on Metro Mining shares, compared with 7 cents currently.

Metro Mining was valued at $433.9 million at the close of trade on Friday.

The post This ASX small-cap miner could more than double: 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.