The analyst team at Jarden has reviewed the junior telcos listed on the ASX before they deliver their first-half results and has come up with a recommendation for which one they prefer in an increasingly competitive market.

Both Aussie Broadband Ltd (ASX: ABB) and Superloop Ltd (ASX: SLC) will face increasing competitive pressure from Telstra Group Ltd (ASX: TLS), the Jarden team says, with Telstra “unbundling modems and collapsing visible price premiums, though we see asymmetric risk/reward profiles between the two challengers”.

Tough market conditions

The Jarden team said in their research note to clients this week that there has been a contraction in the telco market since the end of FY25, and this “reflects implicit negative earnings expectations that we believe create potential for significant volatility on result day”.

They went on to say:

We expect Superloop is better positioned to beat these lowered market expectations. Reflecting this view, we are downgrading Aussie Broadband to neutral from overweight with a reduced target price of $5.25 (from $5.80), while maintaining our buy rating on Superloop with an adjusted target price of $3.25 (from $3.40).

Should Superloop achieve that price target, it would be a 33.2% return from current levels.

Jarden has reduced its earnings per share expectations for Superloop by 10% for FY26, but says “this reflects the law of small numbers rather than fundamental deterioration”.

They went on to say:

We expect consumer gross margins to outperform expectations despite competitive intensity, with pricing discipline remaining intact.

In Superloop’s wholesale business, Jarden said Origin Energy Ltd (ASX: ORG), which on-sells Superloop products under its own brand, materially increased promotional activity late in the first half, “positioning the company for stronger second half 2026 subscriber growth as marketing spend is deployed”.

The Jarden team said Superloop’s Smart Communities business also remained underappreciated by the market.

Challenges ahead for Aussie

Should the Aussie Broadband share price hit the Jarden price target, it would constitute an 8.3% return from current levels.

The Jarden team said their main concern for this business going forward was residential growth challenges.

More broadly, we see mounting structural headwinds as larger base management effects combine with direct exposure to Telstra’s entry into the BYO segment, likely limiting Aussie Broadband’s growth runway.  Additionally (now confirmed by Aussie broadband), Symbio faces significant margin pressure from ACCC mandated voice interconnection rate cuts that will see a 70% reduction from 86c/min to 26c/min, creating approximately $9m in EBITDA headwinds by FY29.

Symbio is a division of Aussie Broadband that specialises in hosting phone services for large businesses.

The post Which telco challenger brand could deliver a 33% return? appeared first on The Motley Fool Australia.

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• Brokers say buy Telstra and these ASX dividend stocks this month
• $20,000 of Telstra shares can net me a $1,774 passive income!

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

Mineral Resources Ltd (ASX: MIN) shares have been very strong performers over the past six months.

During this time, the mining and mining services company’s shares have rallied over 120% higher.

This has been driven by a combination of positive company developments, balance sheet deleveraging, and rising lithium prices.

Can its shares keep rising? Let’s see what analysts at Bell Potter are saying about the company.

What is the broker saying?

Bell Potter has been looking at the ASX mining stock ahead of the release of its quarterly update this month. It is expecting a slight quarter on quarter dip in iron ore production with an equally slight increase in costs,. Relatively stable spodumene concentrate production is also on the cards. It said:

In the December 2025 quarter, we expect Onslow iron ore production of around 8.1Mt at unit costs of A$58/t FOB, following strong September 2025 quarter production of 8.4Mt at A$54/t FOB. Pilbara Hub price realisations will fall, with higher Iron Valley volumes ahead of Lamb Creek ramp-up in Q3 FY26. We expect spodumene concentrate production to remain steady and unit costs to trend higher throughout FY26 as mining moves into higher strip areas at Wodgina and Mt Marion.

Where next for Mineral Resources shares?

Thanks to its improving balance sheet and exposure to rising lithium prices, Bell Potter sees value in Mineral Resources shares at current levels.

According to the note, the broker has retained its buy rating on its shares with an improved price target of $68.00 (from $59.00). Based on its current share price of $61.34, this implies potential upside of 11% for investors over the next 12 months.

No dividends are expected in the forecast period.

Commenting on its buy recommendation, the broker said:

EPS changes as a result of these upgrades are: +39% in FY26; +95% in FY27; and +67% in FY28. Our MIN valuation is now $68.00/sh (previously $59.00/sh). Completion of the $1.2b MIN-POSCO lithium transaction will accelerate balance sheet deleveraging paired with higher cash flows from the ramp-up of Onslow iron ore sales. MIN is positioned to benefit from a recovery in lithium markets, holding around 338ktpa (SC6 attributable, pre-POSCO deal completion) of offline spodumene production capacity. MIN’s mining services platform delivers a stable earnings stream that is expected to expand with internal and third-party volume growth.

Overall, Bell Potter doesn’t appear to believe it is too late to invest in this miner if you are looking for lithium exposure.

The post Should you buy Mineral Resources shares for lithium exposure? 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 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.

Endeavour Group Ltd (ASX: EDV) shares could be good value for income investors after falling 17% from their highs.

That’s the view of analysts at Bell Potter, who are feeling relatively upbeat on the ASX 200 stock.

What is the broker saying about this ASX 200 stock?

Bell Potter notes that the Dan Murphy’s and BWS owner released a trading update this week. And while that update revealed profits below expectations, the broker was pleased to see improvements in its sales. It said:

EDV has provided a trading update for 1H26e. EDV expects to report Group EBIT of between $555-566m, down 5.9% at the midpoint and a 5.6%/7.1% miss on VA consensus and BPe, respectively. The weaker than expected result reflected a lower Retail gross profit margin (85bps lower vs. 1H25a) which was only partially offset by improving Retail sales momentum.

With increased promotional activity and cycling of supply chain impacted comps, Retail sales momentum improved in 2Q26 with Dan Murphy’s and BWS sales growing 2.2% YoY.

Pricing reset

The broker also highlights that the ASX 200 stock’s sales growth was underpinned by a pricing reset to reinforce its customer value proposition. It believes this will support top line growth, though it will mean consensus downgrades to margins. It adds:

This pricing reset will likely see heavy consensus downgrades in FY26e and beyond. EDV implemented the changes to reinforce its customer value proposition across both of its brands, in hopes of reigniting top-line growth. We believe a sharpening focus on bringing value to customers leans into EDV’s competitive advantage and are thus supportive of the strategy, however, we would like to see management articulate its planned execution before upgrading our sales forecasts.

Time to buy

According to the note, the broker has retained its buy rating on the ASX 200 stock with a trimmed price target of $4.00 (from $4.30). Based on its current share price of $3.78, this implies potential upside of 6% for investors.

In addition, it is forecasting dividends of 15 cents per share in FY 2026 and then 19 cents per share in FY 2027. This represents 4% and 5% dividend yields, respectively.

This boosts the total potential return on offer with this ASX 200 stock to approximately 10%.

Commenting on its buy recommendation, Bell Potter said:

We retain our Buy rating and lower our TP to $4.00. With a key negative catalyst now digested by the market (Retail gross margin reset), we can now look ahead to the strategy refresh where we believe expectations remain low (however, have improved given today’s muted market reaction) and therefore presents upside surprise potential. The key risk to our thesis is a further reset in earnings following the strategy refresh.

The post Bell Potter says this beaten down ASX 200 stock is a buy appeared first on The Motley Fool Australia.

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• Endeavour Group: H1 FY26 sales rise, retail margin narrows

Motley Fool contributor James Mickleboro has positions in Endeavour 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 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 you are on the hunt for some new additions to your income portfolio, then it could be worth checking out the shares in this article.

These three ASX dividend shares have been named as buys by analysts and tipped to provide attractive yields in the near term. Here’s what they are recommending:

Telstra Group Ltd (ASX: TLS)

Telstra remains one of the most widely held dividend shares on the ASX, and for good reason.

As Australia’s largest telecommunications provider, the company benefits from essential infrastructure, a large customer base, and predictable cash flows. Demand for mobile and data services tends to be resilient across economic cycles, which supports ongoing dividend payments.

Macquarie is positive on the telco giant and currently has an outperform rating on its shares with a $5.04 price target.

As for income, the broker is forecasting fully franked dividends of 20 cents per share in FY 2026 and 21 cents per share in FY 2027. Based on its current share price of $4.81, this would mean dividend yields of 4.15% and 4.4%, respectively.

For investors seeking stability and dependable dividends, Telstra could be a core holding in a balanced income portfolio.

Jumbo Interactive Ltd (ASX: JIN)

Jumbo Interactive is another ASX dividend share that has been named as a buy.

It operates online lottery ticketing platforms, including Oz Lotteries, and benefits from recurring customer activity and strong cash generation. With limited reinvestment requirements, a large portion of earnings can be returned to shareholders.

Macquarie is bullish on Jumbo Interactive, giving its shares an outperform rating and $14.60 price target.

On the income side, the broker expects fully franked dividends of 39.5 cents per share in FY 2026 and 54 cents per share in FY 2027. From its current share price of $11.22, this represents dividend yields of 3.5% and 4.8%, respectively.

Lovisa Holdings Ltd (ASX: LOV)

Finally, Lovisa is not your typical ASX dividend share, but its cash generation has allowed it to deliver both growth and income.

The fast-fashion jewellery retailer has successfully expanded its store network globally while maintaining strong margins and disciplined capital management. This has enabled the company to return capital to shareholders even while continuing to grow.

Morgans thinks its shares are good value and has put a buy rating and $40.00 price target on them.

With respect to income, the broker is forecasting dividends of 92 cents per share in FY 2026 and 114 cents per share in FY 2027. Based on its current share price of $29.98, this would mean dividend yields of 3.1% and 3.8%, respectively.

The post Why Telstra and these ASX dividend shares could be top buys appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive, Lovisa, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended Jumbo Interactive and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX All Ords stock Betr Entertainment Ltd (ASX: BTR) was trading higher on Wednesday after the company announced a trading update and a new share buyback.

The digital wagering operator said in a statement to the ASX that it had experienced strong growth in turnover during the second half, up 24.5%, on an expanded customer base of 163,504 active customers.

Betr’s quarterly turnover came in at $444.4 million, up from $357 million, while year to date revenue was up 25.2% to $807.4 million.

M&A still in the wings

The company also said it continued to assess opportunities in terms of merger and acquisition activity, “consistent with our longstanding stated ambition”.

Betr said in its statement to the ASX:

We remain in active discussions with a number of existing and new industry participants regarding consolidation and partnership opportunities and will ensure appropriate disclosure should these discussions progress, in accordance with our continuous disclosure obligations.

Added to this, the company said it would undertake of buyback of up to 10% of its shares on issue.

The company said:

It is the view of the board of betr that the company’s shares are trading below their intrinsic value, and thus the proposed buy-back represents an efficient way to reduce the number of shares on issue and enhance long term shareholder returns. Importantly, allocation of the Company’s funds towards the Proposed Buyback will not impact the Company’s capacity to execute on its M&A strategy. The final size and timing of the Proposed Buy-Back will depend on various factors, including market conditions, Betr’s prevailing share price, future capital requirements, and any future unforeseen developments or circumstances.

The company said there was no guarantee that the buyback’s 10% upper limit would be fully utilised.

Betr last year sought to take over fellow gambling company PointsBet Holdings Ltd (ASX: PBH), however was unsuccessful.

Set up to succeed

Chair Matthew Tripp said during the company’s annual general meeting in November last year that Betr was “in its strongest position to date” with record turnover, a refreshed next-generation wagering brand and a management team which was able to “move fast and execute with discipline and focus”.

Mr Tripp said the company was, “very strong in our core wagering business, we have a well-capitalised balance sheet, and there is strong shareholder support for further strategic options”.

Betr shares were 11.1% higher on the buyback news on Wednesday morning, changing hands for 25 cents.

The post Buyback news has this ASX All Ords gaming stock looking like a sure bet appeared first on The Motley Fool Australia.

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• Why Telstra and these ASX dividend shares could be top buys
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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 positions in and has recommended PointsBet. 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 Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form and recorded a small gain. The benchmark index rose 0.15% to 8,820.6 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 to rise

The Australian share market looks set to push higher on Thursday despite a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 14 points or 0.15% higher this morning. In the United States, the Dow Jones fell 0.1%, the S&P 500 was down 0.5%, and the Nasdaq tumbled 1%.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Thursday after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$62.06 a barrel and the Brent crude oil price is up 1.65% to US$66.55 a barrel. This was driven by concerns over potential supply disruption in Iran.

Buy Endeavour shares

Endeavour Group Ltd (ASX: EDV) shares could be in the buy zone according to analysts at Bell Potter. In response to the Dan Murphy’s owner’s trading update, the broker has retained its buy rating with a trimmed price target of $4.00. It said: “With a key negative catalyst now digested by the market (Retail gross margin reset), we can now look ahead to the strategy refresh where we believe expectations remain low (however, have improved given today’s muted market reaction) and therefore presents upside surprise potential. The key risk to our thesis is a further reset in earnings following the strategy refresh.”

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session on Thursday after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 1.1% to US$4,647.3 an ounce. This appears to have been driven by geopolitical concerns.

BHP and Rio Tinto on watch

It looks set to be a good session for BHP Group Ltd (ASX: BHP) shares and Rio Tinto Ltd (ASX: RIO) shares on Thursday. On the NYSE overnight, both mining giants saw their US-listed shares rise over 2% to hit new 52-week highs thanks to rising commodity prices. This bodes well for their ASX-listed shares during today’s session.

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

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• Why EBR Systems, Endeavour, Monadelphous, and Neuren shares are racing higher today

Motley Fool contributor James Mickleboro has positions in Endeavour 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.

Owning Australian Foundation Investment Co Ltd (ASX: AFI), or AFIC, shares could be a smart move for retirees because they can offer virtually everything an investor in retirement could want.

If you haven’t heard of AFIC before, it’s a listed investment company (LIC) that largely targets ASX shares for its portfolio.

Its goal is to provide shareholders with attractive investment returns through access to a growing stream of fully-franked dividends, as well as growing the capital value over the medium to long term.

This is not meant to be a short-term investment – AFIC believes the suggested investment period is five to 10 years.

Let’s get into why AFIC shares are an appealing pick for retirees.

Diversification

The LIC can offer investors exposure to a portfolio of businesses, with a weighting towards large businesses. Its top 25 holdings account for 79.5% of the portfolio.

While these companies may not be small, rapidly growing businesses, they can provide stability and strength.

AFIC has been operating for almost a century and has built up a large position in many of Australia’s blue-chip stocks. Its total portfolio value is worth around $10 billion, and its blue-chip positions, worth at least 3% of the portfolio at the end of December, include:

• BHP Group Ltd (ASX: BHP) – 9.6% of the portfolio
• Commonwealth Bank of Australia (ASX: CBA) – 8.4%
• National Australia Bank Ltd (ASX: NAB) – 5.1%
• Westpac Banking Corp (ASX: WBC) – 5%
• CSL Ltd (ASX: CSL) – 4.8%
• Macquarie Group Ltd (ASX: MQG) – 4.5%
• Wesfarmers Ltd (ASX: WES) – 4%
• Transurban Group (ASX: TCL) – 3.8%
• Goodman Group (ASX: GMG) – 3.6%
• Telstra Group Ltd (ASX: TLS) – 3.5%

The overall AFIC portfolio is more diversified than the S&P/ASX 300 Index (ASX: XKO) in terms of the spread of sector allocation. There are four sectors that have a double-digit weighting – ASX bank shares (21.1%), ASX mining shares (15.2%), ASX industrials shares (12.3%), and ASX healthcare shares (11.3%).

I’d imagine plenty of retirees have all of their money in just one or a few properties, which isn’t very diversified at all. Adding AFIC shares could be very helpful for diversification.

Reliable income

In retirement, I’d like to have a reliable source of dividend cash flow hitting my bank account.

While dividends aren’t guaranteed, I think AFIC shares can provide a pleasing source of passive income. There hasn’t been one payout cut this century from AFIC, making it one of the most reliable ASX dividend shares around.

The business increased its regular annual payout from 26 cents per share in FY24 to 26.5 cents per share in FY25. That translates into a grossed-up dividend yield of 5.3%, including franking credits.

There are a few businesses on the ASX that have been as reliable as AFIC over the last 25 years, which I think is reassuring for Australian retirees.

A cheap price

I like being able to buy assets for cheaper than they’re worth.

Every week, AFIC tells investors how much the business is worth on a per-share basis with the net tangible assets (NTA) figure.

It had a pre-tax NTA per share of $7.89 as of 9 January 2026, which means it’s trading at a discount of close to 10%, which I’d call a great bargain right now compared to many other potential investments.

This looks like a good time to invest in AFIC shares, in my view.

The post Why AFIC shares are a retiree’s dream appeared first on The Motley Fool Australia.

More reading

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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 positions in and has recommended CSL, Macquarie Group, Transurban Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, and Transurban Group. The Motley Fool Australia has recommended BHP Group, CSL, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

These 3 energy shares were in the top of ASX dividend payers in 2025.

Yancoal Australia Ltd (ASX: YAL), New Hope Corporation Ltd (ASX: NHC) and Beach Energy Ltd (ASX: BPT) paid their shareholders strong dividends, even record ones.

Let’s have a look at their dividend policy and what’s to come.

Yancoal Australia Ltd (ASX: YAL)

At current prices, Yancoal tops the ASX 200 dividend yield table. With shares trading at $5.46 at the time of writing, the miner has been returning significant cash to shareholders. The result is a standout trailing dividend yield of 11%, fully franked, well ahead of the banks, telcos and energy majors.

Yancoal Australia ranks among Australia’s biggest coal producers. The energy share has operations spread across New South Wales, Queensland and Western Australia.

Yancoal’s generosity stems from its dividend framework, which targets payouts equal to the higher of 50% of net profit or 50% of free cash flow. The board, however, keeps full discretion and can rein in distributions if market conditions deteriorate.

That caveat matters. Yancoal’s dividends rise and fall with coal prices, and yields at current levels are unlikely to persist through the cycle.

Even so, analysts remain broadly positive. The consensus 12-month price target sits near $5.95, pointing to potential upside of about 10%. Combined with dividends, total returns could approach 20% over the year.

Beach Energy Ltd (ASX: BPT)

Last year was a bonanza when it came to payouts from this ASX energy share. Shareholders received 9 cents per share in total dividend income. That gives it a 7.5% dividend yield at Beach’s current share price of $1.20.

This record payout for Beach shareholders was an exception. Between 2017 and 2022, the annual total came to just 2 cents per share and in 2023 and 2024 it was 4 cents per share.

It proves that no ASX dividend stock offers guaranteed income. Energy shares especially are vulnerable to swings in passive income, with payouts rising and falling more sharply than most other parts of the market.

If the global oil price falls, for example, Beach’s profits take an immediate hit. As it happens, many analysts are predicting that Beach will indeed be forced to slash its payouts next year.

Most brokers don’t see much growth ahead for the ASX energy stock. Most predictions are below the last share price. Analysts at RBC for instance expect Beach Energy shares to fall to $1.05 compared with $1.20 currently.

New Hope Corporation Ltd (ASX: NHC)

New Hope has not escaped the recent slump in global coal prices, with its share price sliding in response. Yet income investors are still paying attention. At the current price of $4.33 a share, the energy stock offers a fully franked dividend yield of roughly 8.1%.

The question is whether that yield represents value or compensation for coal-price risk.

Operationally, New Hope remains a well-established producer, anchored by the Bengalla mine in NSW and New Acland in Queensland. Management continues to emphasise low-cost operations, diversification and disciplined execution despite softer pricing.

Dividends are carrying the investment case. A dividend reinvestment plan is now in place, and management says distributions remain the primary return lever. Shareholders received 34 cents fully franked over the past year, cushioning recent capital losses.

Broker sentiment is mixed. Some see upside above $4.50 if coal prices rebound. Others remain cautious, with Macquarie downgrading the stock and warning prices could fall further.

The post After strong dividend yields? Look at these 3 ASX energy shares appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Three oil stocks to buy and one to sell
• 5 things to watch on the ASX 200 on Wednesday
• Consider these 2 ASX mining stocks for high dividend yields
• Down 16%: Is this 8% yield ASX mining stock a buy?

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 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.

PLS Group Ltd (ASX: PLS) shares have been on a tear over the past 12 months.

During this time, the lithium giant’s shares have rallied over 120%.

But that is barely even half of the story. At one stage last year, its shares were as low as $1.07.

On Wednesday, they closed the session at $4.87, which means a gain of over 350% from bottom to top.

Is it too late to buy PLS shares? Let’s see what analysts at Bell Potter are saying about the lithium miner.

What is the broker saying?

Bell Potter has been looking ahead to the company’s upcoming update and expects a solid quarter.

While production is expected to be down slightly quarter on quarter, the broker believes that higher lithium prices will drive a strong increase in revenue. It said:

We expect December 2025 quarterly production of around 214kt at unit costs of A$579/t FOB, marginally below the September 2025 quarter (225kt at A$540/t FOB) with potential weather impacts and higher levels of contact ore processed.

Quarterly revenue will improve (BP est. $323m; September 2025 quarter $251m), supported by higher realised prices. PLS are guiding to FY26 SC production of 820-870kt at unit costs A$560-600/t FOB and capex of A$300-330m. Construction of the mid-stream demonstration plant is complete; we expect the PLS (55%) – Calix (45%; CXL, not rated) JV will provide an update on commissioning and ramp-up timing.

Are PLS shares a buy, hold, or sell?

According to the note, the broker has upgraded PLS shares to a hold rating (from sell) with an increased price target of $4.55 (from $2.65). This implies potential downside of 6.5% from current levels.

Commenting on its hold recommendation, Bell Potter said:

EPS changes as a result of these upgrades are: FY26 now 12.3cps (previously 1.2cps); FY27 now 18.8cps (previously 2.5cps); and FY28 now 18.7cps (previously 4.5cps). Our PLS valuation is now $4.55/sh (previously $2.65/sh).

We upgrade our recommendation to Hold, reflecting improving lithium market fundamentals that will materially strengthen PLS’ earnings and cash flow generation. PLS is a low-cost producer with around 250ktpa of idled spodumene concentrate capacity that can be rapidly reactivated as conditions improve. Its Colina Project provides low-cost growth optionality in a supportive mining jurisdiction in Brazil.

In light of this, investors may want to wait for a meaningful pullback in the PLS share price before considering a position in the lithium miner.

The post Are PLS shares a buy, hold, or sell? appeared first on The Motley Fool Australia.

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• PLS Group shares: After a year of outperformance, is it still a buy?

S&P/ASX 200 Index (ASX: XJO) mining stock Nickel Industries Ltd (ASX: NIC) has enjoyed a stellar run since hitting multi-year lows on 9 April.

Nickel Industries shares closed down 2.66% on Wednesday, trading for 92 cents each. That sees the miner commanding a market cap of nearly $4 billion.

Despite that slip, shares in the ASX 200 mining stock remain up an impressive 113% since closing at 42.5 cents apiece on 9 April.

If you’re not familiar with Nickel Industries, the company owns a portfolio of mining and downstream nickel processing assets in Indonesia. The miner has a controlling interest in the Hengjaya nickel mine, as well as four rotary kiln electric furnace projects. These produce nickel pig iron (NPI) for the stainless-steel industry.

Nickel Industries is also increasingly focused on producing materials for the electric vehicle battery supply chain.

Nickel Industries shares tipped to gain another 14%

With an eye on the global commodity rally and Nickel Industries’ promising prospects, Canaccord Genuity analyst Timothy Hoff recently upgraded the ASX 200 mining stock from a hold rating to a buy rating (courtesy of The Bull).

Canaccord also upped its share price target to $1.05, from the prior 80 cents per share. That represents a potential upside of 14% from Wednesday’s closing price.

What’s the latest from the ASX 200 mining stock?

Nickel Industries is off to a strong start in 2026, with shares up 8.9% year to date.

Shares in the ASX 200 mining stock closed up 7.8% on 2 January after the company announced that South Korean-listed Sphere Corp will acquire a 10% stake in the Excelsior Nickel Cobalt (ENC) HPAL project.

The deal values ENC at US$2.4 billion.

According to the release, ENC is a next-generation HPAL (High Pressure Acid Leach) project capable of producing mixed hydroxide precipitate (MHP), nickel and cobalt sulphate, and nickel cathode.

Nickel Industries will maintain its 44% shareholding in ENC, with Sphere entering an offtake agreement for ENC nickel cathode at market prices, including volumes above its 10% ownership share.

ENC is targeting annual production of 72,000 tonnes of nickel metal once commissioned.

Commenting on the deal with Sphere that sent the ASX 200 mining stock sharply higher on the day, Nickel Industries managing director Justin Werner said:

This transaction marks the first offtake agreement for ENC material into Western markets, and we are particularly pleased that it is into the growing aerospace and aeronautical industries, which demands the highest product quality and is forecast to grow by approximately 8% CAGR [compound annual growth rate] to 2030.

Sphere has an existing 10-year supply contract with Elon Musk’s SpaceX.

The post Up 113% since April, why this $4 billion ASX 200 mining stock is tipped to keep outperforming in 2026 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 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.