Shares in Chemist Warehouse owner Sigma Healthcare Ltd (ASX: SIG) are trading strongly higher on Monday after the company announced it had pulled out of talks with UK-based The Boots Group.

Short-lived takeover conversation

Sigma last week confirmed that it was in preliminary discussions with The Boots Group after the news broke in the Australian Financial Review.

But the company on Monday said these discussions had drawn to a close, while the company kept the door open to other international opportunities.

The company said:

International growth is one of Sigma’s four key strategic growth pillars and the Company remains committed to driving growth in its core offshore markets, while assessing and seeding new markets. This includes the UK where Sigma recently announced a Memorandum of Understanding (MoU) with Greenlight Healthcare. Sigma engaged in the Boots sale process given the potentially unique opportunity it presented to accelerate its UK expansion through the market-leading Boots brand and large footprint. However, following its preliminary review the Company has concluded that such an acquisition would not currently meet its strategic and capital investment objectives.

Sigma said it had many opportunities for growth and was confident in its current strategy.

It said the company would continue to assess acquisition opportunities, “in all markets that will deliver on our strategy and long-term sustainable returns for Sigma shareholders”.

Brokers say core business is strong

Macquarie issued a new research note on Sigma when the news of the Boots talks broke last week.

The analyst team said Boots had a potential enterprise value of US$10 billion, with about 1800 stores and 20% of the UK market share.

The Macquarie team said any deal would have necessitated a “sizeable” equity raise from Sigma.

They said the weaker Sigma share price when the deal was announced was, “evident of caution on a significant overseas transaction in an unproven market, with weak track record of UK expansion by Australian companies”.

But Macquarie said Sigma’s domestic earnings trajectory appeared to remain intact, driven by health and beauty trends and operating leverage.

Macquarie has a share price target of $3.50 on Sigma shares, while a Jarden report from early May has a $3.60 share price target.

Sigma shares are 7% higher on Monday at $2.82.

Jarden said in early May that Sigma had a long runway for growth via new and expanded stores, “with success in Ireland and NZ, and now the UK entry”, referring to a memorandum of understanding with GreenLight Healthcare to launch Chemist Warehouse in the UK market.

Sigma is valued at $30.48 billion.

The post Sigma Healthcare shares are surging. What does Macquarie say they’re worth? 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.

Once you reach your early 60s, your superannuation balance should become a priority. 

After all, at the age of 63 you’re just two years from the average retirement age and four years from potentially receiving the Age Pension payment. By this age, you should know exactly what is in your super, and how much money you need to fund your retirement when you finally stop working.

Here’s a rundown of what the average Aussie has at age 63, and exactly what you actually need.

What is the average superannuation balance at age 63?

There isn’t an exact figure for the average superannuation balances at the exact age of 63, but the Association of Superannuation Funds of Australia (ASFA) provides a good guide.

The data shows that at age 60-64, the average Australian male has approximately $395,852 in their superannuation. Meanwhile, the average female has around $313,360.

How does your balance compare?

How much will retirement cost me?

ASFA data also shows how much Australians actually need in their superannuation in order to live a comfortable retirement.

That’s one where retirees can expect to maintain a good standard of living. It assumes you’d own the top level of private health insurance, own a reasonable car brand and do regular leisure activities. It also includes funds for potential home repairs or renovations, the occasional meal out, and perhaps even an annual holiday.

According to ASFA, a comfortable retirement is expected to cost around $54,840 per year for single Aussies. It is expected to cost roughly $77,375 per year for a couple. 

These figures also assume that you’ll be entitled to receive a part Age Pension payment once you reach age 67.

That means ASFA’s data indicates that by age 67, single Australians need a superannuation balance of approximately $640,000. And couples should have closer to $730,000.

Will the average super balance at age 63 be enough to fund my retirement?

It’s unlikely.

In fact, concerningly, with up to $395,852 in their superannuation, Australians at age 63 are already falling very far behind.

ASFA has crunched the numbers, and it turns out that in order to reach the total balance needed at age 67, you’d need a superannuation balance of around $562,000 at age 63. That is significantly lower than the average for both men and women.

What can I do to catch up?

Even though, at age 63, you’re very close to retirement age, there are still things you can do to boost your superannuation balance to a level you can retire on.

The most important thing you can do is to check that your super fund is performing well and your risk profile is appropriate for your age. At age 63, it might make more sense to shift your risk profile from long-term growth to capital preservation.

You’ll also need to add extra contributions wherever you can. Individuals can make concessional (before-tax) super contributions, such as salary sacrificing, taxed at a reduced rate of 15% and up to an annual cap. You can also make after-tax payments within your annual limits. 

It also makes sense to check in with Government contribution rules. There are several different rules and co-contribution rules which you might be eligible for depending on your personal circumstances.

Another option is to delay your retirement and give your superannuation time to enjoy  more compound growth. The average retirement age in Australia is currently around 65 years old, but more and more individuals are working into their 70s.

The post Average superannuation balance for 63 year olds in 2026. How does yours compare? appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

Telstra Group Ltd (ASX: TLS) shares aren’t joining in the broader market rally today.

Shares in the S&P/ASX 200 Index (ASX: XJO) telco provider closed on Friday trading for $5.20. During the Monday lunch hour, shares are changing hands for $5.13 apiece, down 1.4%.

For some context, the ASX 200 is up 1.3% today following news that the US and Iran have inked a peace deal.

Taking a step back, Telstra shares have gained 4.9% over the past year, just edging out the 4.3% one-year gains posted by the benchmark index.

Atop those capital gains, Telstra stock also trades on a fully-franked 3.9% trailing dividend yield.

But could Elon Musk’s newly listed Space Exploration Technologies Corp (NASDAQ: SPCX) juggernaut take a bite out of Telstra’s lunch?

Why Telstra’s shares could come under competitive pressure

Telstra shares may be underperforming today amid investor concerns that Starlink, a SpaceX subsidiary, could compete with the ASX 200 telco via its satellite-based internet services.

As you’re likely aware, SpaceX listed on the NASDAQ on Friday in a record-breaking US$75 billion initial public offering (IPO), with significant success.

The SpaceX share price closed the day up 19.2%, giving the company an eye-popping market cap of US$2.1 trillion. And this has seen founder Elon Musk take the crown as the world’s first trillionaire (in US dollars).

To give you some idea of the potential threat SpaceX poses to global telcos, Starlink serves 10.3 million subscribers in 164 countries. And Starlink reported US$11.4 billion in revenue from its connectivity segment in 2025, bringing in US$4.4 billion in operating income.

What are the experts saying about the competition from Musk’s SpaceX?

As The Australian Financial Review reports, investor concerns over the SpaceX impact on global telcos are partly fuelled by Oppenheimer, with the broker cautioning that US telcos will face competitive pressures from Starlink.

However, Barrenjoey analyst Eric Choi expects that Telstra shares are likely to be less impacted.

“There is a long-term risk that Optus and Vodafone use satellite to close some of the coverage differential to Telstra,” he said.

But Choi noted that the “quality and reliability of the Telstra network, the strength of the brand and Telstra’s regional points of presence” should help support the stock.

Sean Sequeira, Chief Investment Officer at Australian Eagle Asset Management, also pointed to the ASX 200 telco’s high-quality offerings as likely to help fend off any potential competition from Musk’s SpaceX.

“Historically, customers have not left Telstra because it has a superior network despite being more expensive,” Sequeira said (quoted by the AFR). “It would take a significant event for clients to move en masse.”

And Telstra is already working with Musk’s Starlink.

Choi noted:

We estimate Telstra pays Starlink $50 million to $100 million per annum today, and Starlink utilises Telstra’s spectrum to offer SMS in remote areas. Optus also has a partnership with Starlink but is yet to launch direct-to-device.

The post Could Elon Musk’s SpaceX take a bite out of Telstra shares? 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Banks, miners, and supermarkets play a big role on the ASX.

But they are not the only places to find compelling long-term opportunities.

I think there are some interesting ASX shares sitting in areas such as wealth technology, healthcare retail, and defence technology. These businesses are exposed to different demand drivers, which can be useful for investors looking beyond the usual market heavyweights.

These are three ASX shares I would consider buying.

Hub24 Ltd (ASX: HUB)

The first ASX share I would buy is Hub24.

Hub24 provides investment platform technology used by financial advisers and their clients. That may not sound exciting at first, but I think it is an attractive part of the market.

Financial advice is becoming more demanding. Clients may have superannuation, managed accounts, pensions, tax considerations, estate planning needs, and changing retirement goals. Advisers need tools that help them manage that complexity without wasting time on manual administration.

That is where Hub24 has built its position. The platform can become part of an adviser’s daily workflow. Once client portfolios, reporting, administration, and managed accounts are running through the system, switching providers is not something most advisers would do lightly. I like that stickiness.

Hub24 can also benefit as more wealth moves through modern platforms. Australia’s superannuation and retirement savings pool is enormous, and I think efficient technology will keep becoming more important as investors seek advice and better portfolio management.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is another ASX share I would buy.

I think the attraction with the Chemist Warehouse owner is repeat customer demand.

Pharmacy retail is tied to everyday health, wellness, beauty, personal care, and prescription needs. Customers may walk in for one product and leave with several. That gives the business frequent traffic and plenty of opportunities to deepen customer relationships.

Chemist Warehouse’s value proposition is also a major strength in my view.

In a cost-of-living environment, shoppers are highly aware of price. A value-led pharmacy retailer can stay relevant because customers still need health products, but they want to feel they are getting a good deal.

I also think Sigma’s scale could become more powerful over time. Larger retail and distribution networks can support stronger supplier relationships, improved logistics, private-label opportunities, better customer data, and category expansion.

DroneShield Ltd (ASX: DRO)

DroneShield provides counter-drone and electronic warfare technology. Its products help customers detect, track, identify, and respond to drones in defence, government, and security settings.

I think this is a market with strong long-term relevance, potentially making it an ASX share to buy and hold.

Drones are changing the way militaries, airports, prisons, public events, and critical infrastructure operators think about security. They can be used for surveillance, disruption, smuggling, or attacks, which creates demand for counter-drone systems.

What I like about DroneShield is that it gives ASX investors exposure to a specialised defence technology niche. Recent contract momentum suggests customers are prepared to spend money on these capabilities, which is important for turning a strong theme into a real business.

This is not a quiet blue-chip share. Contract timing can be uneven, competition can increase, and the share price may remain volatile. But for investors comfortable with risk, I think DroneShield has one of the more interesting growth runways on the ASX.

Foolish Takeaway

The ASX offers more than banks, miners, and supermarkets.

I like the idea of looking for businesses that are exposed to different forms of demand, whether that is better wealth management technology, everyday healthcare spending, or rising security needs. These are very different opportunities, and each carries its own risks.

But for investors willing to look beyond the most familiar parts of the market, I think shares like these show there are still plenty of ways to find long-term growth on the ASX.

The post 3 ASX shares I’d buy that are not banks, miners, or supermarkets appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in DroneShield and Hub24. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares have climbed higher on Monday.

At the time of writing, the banking giant’s shares are around 1.5% higher for the day and changing hands for $161.93 a piece.

It’s been a shaky first half of the year for the bank, with its share price swinging anywhere between $147.22 and $183.52 a piece.

The latest increase means CBA shares are now around 0.3% higher year to date, but still roughly 10% lower than 12 months ago.

For context, the S&P/ASX 200 Index (ASX: XJO) is trading around 1.5% higher on Monday morning and is now around 2.5% higher year to date.

What do brokers expect next from CBA shares?

According to Market Index data, all brokers have a strong sell rating on CBA shares. And they tip a 23% downside to an average target price of $124.20.

TradingView data shows something similar. The majority of analysts (12 out of 14) have a sell or strong sell rating on CBA shares. Another two have a hold rating. The average target price of $126.57 implies a potential 22% downside at the time of writing. However, some are even more bearish and have forecast the bank’s shares to drop another 44% to $90 a piece over the next 12 months.

Why are they so negative about CBA’s outlook?

CBA shares are widely considered overpriced versus its peers, and many think the share price isn’t supported by its business fundamentals. 

CBA’s price-to-earnings (P/E) ratio, at the time of writing, is around 22.75. This is much higher than the other major big four Australian banks.

The bank is facing ongoing earnings pressures, with expectations that growth will be in the single digits going forward.

Morgans’ Damien Nguyen has a sell rating on CBA shares. He said CBA shares trade at a significant premium versus its peers. But he said that while CBA is Australia’s highest quality bank, quality alone doesn’t justify the recent valuation.

Morgan Stanley also has a sell rating on the ASX bank stock and a $125 target price. It recently cautioned that a tax shakeup and three interest rate hikes could see ASX 200 bank stocks face a big increase in non-performing loans over the year ahead, even as their new housing loans face a decline.

Citi rates CBA as a sell with a $135 target price. The broker downgraded its outlook for the housing market, and by extension, the big four banks. It added that it thinks CBA faces the greatest risk of a slowdown in the housing market, given its stretched starting point.

The post Here’s what brokers tip for CBA shares over the next 12 months appeared first on The Motley Fool Australia.

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

The S&P/ASX 200 Index (ASX: XJO) has jumped more than 100 points on Monday after a breakthrough in the conflict between the United States and Iran.

At the time of writing, the benchmark index is up 1.34% to 8,922 points after climbing as high as 8,937.5 points earlier in the session.

That puts the ASX 200 at its highest level in around 2 months and within 3.1% of its February record high.

Investors are buying across most of the market, with around 150 stocks trading higher. Only 47 are lower, and 3 are unchanged.

The rally follows Friday’s 1.98% gain, leaving the index more than 3% higher over the past week.

US-Iran peace deal drives the rally

The main catalyst is a peace agreement between the United States and Iran after nearly 4 months of fighting.

The deal was reached with Pakistan’s help and is expected to extend the ceasefire and reopen the Strait of Hormuz to commercial shipping.

US President Donald Trump said the agreement would allow ships to move freely through the strait, while a formal signing is expected to take place in Switzerland later this week.

Some details still need to be settled, but investors have welcomed the prospect of lower geopolitical risk.

Wall Street also provided a positive lead on Friday, with the Dow Jones Industrial Average Index (DJX: .DJI) rising 0.7%, the S&P 500 Index (SP: .INX) gaining 0.5%, and the Nasdaq Composite Index (NASDAQ: .IXIC) adding 0.3%.

Miners and banks lead the gains

Mining shares are doing much of the heavy lifting after commodity prices moved higher outside the energy market.

BHP Group Ltd (ASX: BHP) shares are up 3.10% to $64.88, while Rio Tinto Ltd (ASX: RIO) shares have climbed 2.14% to $188.27.

Fortescue Ltd (ASX: FMG) shares are also 2.10% higher at $20.64.

The major banks are adding further support. National Australia Bank Ltd (ASX: NAB) shares are up 2.85% to $37.54, while Commonwealth Bank of Australia (ASX: CBA) shares have gained 1.71% to $162.24.

Westpac Banking Corp (ASX: WBC) shares are 1.03% higher at $35.36.

Energy shares miss out

The S&P/ASX 200 Energy Index (ASX: XEJ) is moving in the opposite direction as oil prices fall on hopes of a return to normal shipping through the Strait of Hormuz.

Brent crude is down more than 3.9% to around US$83.90 a barrel, while West Texas Intermediate (WTI) crude has fallen 4.7% to about US$80.90 a barrel.

The weaker oil price has pushed Woodside Energy Group Ltd (ASX: WDS) shares down 1.67% to $30.71, while Santos Ltd (ASX: STO) shares are sinking 5.08% to $7.66.

The post ASX 200 rockets to a 2-month high as investors pile back in appeared first on The Motley Fool Australia.

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

BHP Group Ltd (ASX: BHP) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed on Friday trading for $62.93. In late morning trade on Monday, shares are changing hands for $64.82 each, up 3%.

For some context, the ASX 200 is up 1.3% at this same time amid investor optimism over the potential US peace deal announced with Iran.

Today’s outperformance is par for the course for the Aussie mining giant over the past year.

While the ASX 200 has gained 4.4% over 12 months, BHP shares have rocketed 73.2%.

And that strong outperformance does not even include the two fully-franked dividends, totalling $1.96 a share, that BHP paid to eligible stockholders over this period.

The ASX 200 mining stock currently trades on a fully-franked 3% trailing dividend yield.

But following on this tremendous run, is the miner still a good buy today?

Should I buy BHP shares today?

EnviroInvest’s Elio D’Amato recently analysed the outlook for BHP stock (courtesy of The Bull).

“This diversified miner produces iron ore, copper and other commodities critical to global economic growth,” D’Amato said.

“It remains a core holding in many portfolios due to its scale, balance sheet strength and ability to generate significant cash flow through commodity cycles,” he added.

But with the miner falling short of D’Amato’s ESG expectations, he issued a hold recommendation on BHP shares.

According to D’Amato:

However, in my view, recent news reports highlighting delays to decarbonisation initiatives and a reduced emphasis on environmental objectives are disappointing. Copper and potash projects still provide exposure to the energy transition, but the environmental investment case is less compelling than it was several years ago.

ASX 200 miner ramping up copper exposure

As D’Amato mentioned above, BHP shares have a significant exposure to the global energy transition, with the miner rapidly expanding its copper footprint.

And for good reason.

Currently trading for US$13,698 per tonne, the copper price has leapt more than 41% over the last year.

As for BHP, in the first half of the 2026 financial year, the ASX 200 mining stock produced 984,000 tonnes of copper. And with copper prices surging, this was the first time that the red metal surpassed iron ore and delivered more than half of BHP’s earnings.

BHP reported underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) from its copper division of US$8 billion in H1 FY 2026. That was up 59% year on year, with copper contributing 51% of BHP’s half-year underlying EBITDA.

The post BHP shares: Buy, hold or sell? 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More than four in ten Australians believe they need more than $1 million in superannuation to retire comfortably, well above the actual benchmark that the Association of Superannuation Funds of Australia (ASFA) says is adequate.

New ASFA polling found that 42% of respondents believed $1 million was necessary, while ASFA’s Retirement Standard benchmark put the figure needed for a comfortable retirement at $730,000 for a couple and $630,000 for a single person.

Retirement funding needs inch higher

ASFA also said the amount of superannuation needed for a comfortable retirement had increased from the previous quarter.

ASFA said:

This quarter’s ASFA Retirement Standard budgets show that homeowners aged 65 and over now need $78,566 annually for a comfortable retirement as a couple, and $55,923 for a single, increases of 1.5 per cent and 2.0 per cent from the previous quarter, respectively. The overall CPI increased by 1.5 per cent over the same period. 

ASFA Chief Executive Officer Mary Delahunty said inflation was at the forefront of many people’s concerns about having enough income in retirement.

When households really feel the pressure of grocery, petrol, energy and other bills keep climbing, people naturally assume that retirement will cost a fortune. But the reality is that retirement generally costs less than working life. Retirees pay no tax on superannuation pension income after 60, most own their home outright, work-related costs disappear, and concessions reduce the price of energy, medicines, transport and council rates.  

Housing crisis taking a toll

ASFA said the housing affordability crisis appeared to be weighing on the minds of young Australians, with many anticipating they will still be renting or paying off a mortgage in retirement. 

ASFA said:

Among 25 to 34-year-olds, 51 per cent believe they will need more than $1 million in today’s dollars to retire comfortably, and 23 per cent believe they will need more than $2 million. The figures are similar for 35 to 49-year-olds, at 52 per cent and 22 per cent respectively. 

Ms Delahunty said the assumption that people would own their own home by the time they had retired seemed less of a given.

She added:

House prices have diverged significantly from wages over the last two decades, and many people now expect to carry rent or mortgage payments into retirement. It makes sense that they believe they will need much more in super than earlier generations did. Homeownership is an important aspect of dignity in retirement, alongside the financial security that comes from retirement savings. Addressing the housing affordability crisis, so that we start improving access to homeownership for younger generations of Australians, is a crucial public policy goal.

For those wishing to top up their superannuation, there is still time to make a tax-effective contribution before the end of the financial year.

The post Do you really need $1 million in superannuation to retire comfortably? appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d buy that are not banks, miners, or supermarkets
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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.

Shares in oOh!Media Ltd (ASX: OML) are performing well on Monday morning after the company said takeover bids for the S&P/ASX 300 Index (ASX: XKO) company were now likely to come in at $1.60 per share at a minimum.

Extended takeover tussle dragging on

News first broke in April that Pacific Equity Partners had made an approach to buy the outdoor advertising company for $1.40 per share, followed in May by a $1.45 per share offer from I Squared Capital.

Then, in early June, the company confirmed that Bain Capital had made a non-binding offer to buy the company, after an article in the Australian Financial Review broke the story.

oOh!Media has now updated the market yet again, saying there were “multiple third parties” in talks about a potential takeover.

The company said in a statement to the ASX:

Having received unsolicited, conditional, non-binding indicative offers of $1.40 per share from Pacific Equity Partners (PEP) and $1.45 per share from I Squared Capital (ISQ), which the Board unanimously determined did not adequately reflect the intrinsic value of oOh!, the Board and its advisers subsequently engaged with both PEP and ISQ, in addition to Bain Capital and other financial sponsors. The Board provided limited due diligence to enable each party to assess whether it was able to put forward a revised proposal that may be capable of the Board’s recommendation. After a 3-week period of limited due diligence, the Board has received indicative proposals from PEP, ISQ and Oaktree Capital Management, with a number of those proposals offering $1.60 per share. The revised proposals are subject to a number of conditions consistent with those of the previously disclosed proposals.

The company said it intended to provide further due diligence to the companies involved, which was expected to take up to six weeks.

oOh!Media said there was no guarantee a transaction would eventuate.

Shares in the company traded as high as $1.45 before settling slightly higher at 5.8% to $1.455.

Operations continue to deliver

oOh!Media is performing well, with the company in May issuing an update to the market saying it was expecting first-quarter revenue growth of 7% for Australia and 4% for the group, slightly ahead of projections from February.

oOh!Media Managing Director James Taylor said at the time:

The Out of Home sector continues to benefit from strong structural growth, and we are executing our strategy to cement oOh!’s market leadership. The launch of MOVE is a growth catalyst, clearly demonstrating the superior quality and unmatched scale of our network to advertisers. Since February we have identified $12 million in annualised FY26 run rate pre-tax cash savings and an array of related operational benefits. This unlocks further value for our customers and shareholders. While we note some advertiser uncertainty given the broader macro environment, we are pleased with our overall outlook and look forward to updating shareholders at this morning’s AGM.

The post Shares in this ASX 300 company are charging higher as takeover bids increase 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.

CSL Ltd (ASX: CSL) shares have not felt like a classic blue-chip winner lately.

The biotechnology giant has disappointed the market, reset expectations, and left many long-term shareholders wondering whether the old investment case still applies.

The question is whether its heavy decline is a genuine bargain or a value trap.

What is a value trap?

A value trap is a share that looks cheap on the surface but is cheap for a reason.

It may trade on a low price-to-earnings (PE) ratio, offer a tempting dividend yield, or sit far below its former highs. But if earnings keep falling, margins keep narrowing, or management cannot fix the business, the cheap valuation can prove misleading.

Essentially, the share price may not be signalling an opportunity, it may be signalling a permanently weaker company.

That is the risk investors need to think about with CSL shares. The company has been through a difficult period, and confidence in the business has been badly shaken.

What the forecasts say

The market is not expecting CSL to bounce back immediately.

Consensus estimates point to earnings per share of $8.06 in FY 2026. That would represent a decline on FY 2025, which helps explain why investors have been cautious.

But the outlook improves after that. The market is forecasting earnings per share of $8.41 in FY 2027 and then $8.42 in FY 2028.

Based on the current CSL share price of $106.55, this means the stock is trading on approximately 13.2 times FY 2026 earnings and approximately 12.7 times FY 2027 and FY 2028 earnings.

For a company with CSL’s pedigree, global footprint, and exposure to healthcare demand, those multiples look undemanding.

Dividends are also expected to be attractive. Consensus estimates are for dividends per share of $3.58 in FY 2026, $3.72 in FY 2027, and $3.80 in FY 2028.

That implies forward dividend yields of approximately 3.4%, 3.5%, and 3.6%, respectively.

The key issue with CSL shares

The numbers suggest CSL shares could be cheap. But the market will not simply take that on faith.

The key is whether investors can trust management to deliver on the recovery path. CSL needs to stabilise earnings, rebuild confidence, and show that recent problems are not the start of a long-term decline.

If management delivers, the current valuation looks very attractive. A global healthcare business trading on around 13 times earnings is not something investors see often, particularly one with CSL’s long history of innovation and scale.

But if earnings disappoint again, the low multiple may not matter as much. The market could continue to treat CSL as a business with lower quality earnings than in the past.

Bargain or value trap?

On balance, CSL looks more like a bargain than a value trap.

The company still owns valuable healthcare assets, operates in markets with long-term demand, and has the potential to restore earnings growth if management executes well.

But this is no longer a stock that can rely on its reputation alone. CSL has to earn back the market’s trust.

The post CSL shares: bargain or value trap? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.