The Reece Ltd (ASX: REH) share price is up 3% today (at the time of writing) after the company increased the size of its on-market share buyback by $50 million to a new total target of $85 million.

The market clearly loved the announcement but beyond the share price reaction, the decision raises a bigger question for investors: Why would management choose to buy back shares and should investors turn bullish on Reece shares?

Why buy back shares?

At its core, a share buyback is a capital allocation decision. Reece management are effectively saying that, at current prices, buying the company’s own shares offers a better risk-adjusted return than alternative uses of capital such as acquisitions, branch expansion, or accelerated investment in growth initiatives.

The move also implies that management believe that Reece shares are currently undervalued. Even after today’s 3% rise, Reece shares are still down 42% year to date and down 11% over the last 5 years.

For shareholders, buybacks can be attractive.

All else equal, buy backs reduce the number of shares on issue, which can lift earnings per share, support valuation metrics, and signal management confidence in the underlying business.

The flipside of share buy backs

That said, buybacks aren’t always an unambiguous positive.

When a company chooses to return capital rather than reinvest it, it can also imply that management sees fewer high-return organic growth opportunities available right now. In other words, Reece may believe its best option is to optimise its share price using financial engineering rather than organic growth.

Of course, its never that black and white and in reality, management could be pursuing both organic growth and and buy backs to optimise their capital allocation mix.

Another thing for investors to take note of is that Reece is funding the buyback from existing cash and debt facilities.

There are plenty of situations where increasing debt to buyback equity makes financial sense (e.g. debt is typically a cheaper form of financing than equity partly because it is typically tax deductible), but some investors may still be uncomfortable with increasing debt for this purpose.

So how should investors think about it?

For long-term investors, the expanded buyback builds confidence that management view the current share price as undervalued and an opportunity to reduce the total number of shares outstanding, increase earnings per share and ultimately increase the value of the shares for shareholders.

However, it’s not a substitute for growth and ultimately, the share price over time will still depend on Reece’s performance in its core residential and commercial markets, particularly in Australia and the US.

For now, the market clearly sees value in Reece backing itself.

The post Where would you invest $85m? Reece shares jump 3% on major buyback expansion appeared first on The Motley Fool Australia.

More reading

• Reece announces $85 million on-market buyback target
• Here are the top 10 ASX 200 shares today
• See which companies have just been added to key ASX indices
• This ASX 200 share is down 57% from its peak. I think it’s a turnaround buy!
• Why Catapult, Kingsgate, Light & Wonder, and Reece shares are storming higher today

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

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

Shares of Nvidia (NASDAQ: NVDA) have begun to sputter. The stock is close to flat since this summer, with investors worried about peak spending on artificial intelligence (AI) computer chips. With a share price that has risen over 1,000% in the last five years, who can blame them? Nvidia is now the largest company by market cap in the world, and while it is growing its revenue and earnings at an incredible rate right now, that could come to a halt if the AI spending boom collapses. 

Does that mean Nvidia stock is set to crash next year?

Massive current growth, cyclicality risks

There is no denying that Nvidia is growing rapidly right now. It has a lock on the AI computer chip market, meaning that virtually every large technology provider or start-up building AI models needs to buy its products. Last quarter, revenue grew 62% year over year to $57 billion, with data center revenue growing even faster.

Management says that its upcoming Blackwell computer chip is selling out of its upcoming supply, which is a good near-term determination of future growth. Profit margins are off the charts, with operating margin up to 63% last quarter.

If current growth rates continue, then Nvidia will do well for shareholders in 2026. But eventually, the AI computer chip supply will start to match demand, as it does in any spending supercycle. This will lower Nvidia’s revenue growth rate, and could make it even turn negative for a short while. Profit margins are going to fall once the company loses its pricing power, especially if competition keeps rising from Alphabet‘s TPU chip and Amazon‘s Trainium chip.

A downside scenario such as this could risk Nvidia’s earnings power being lower 12 months from now. 

A valuation that is demanding

Another reason to be concerned about Nvidia’s stock in 2026 is its demanding valuation. The stock currently has a price-to-earnings ratio (P/E) of 43, which is well above the market average at a time when the market’s average P/E ratio is close to an all-time high.

What does this mean? Investors buying or holding Nvidia stock in 2026 need to expect strong earnings growth in the next few quarters. Nvidia is now one of the largest companies in the world by revenue, with incredibly strong profit margins. It cannot grow revenue at 62% year over year forever with over $50 billion in quarterly revenue; there is simply not that much capital in the world capable of making these large upfront investments into Nvidia computer chips.

Data by YCharts.

Will Nvidia stock crash next year?

It is impossible to have 100% certainty regarding Nvidia’s stock price trajectory in 2026. If anyone did, they could become a millionaire rather quickly.

What an investor needs to analyze is how likely it is that Nvidia’s stock crashes next year. Right now, spending on AI infrastructure is growing rapidly, which is leading to huge demand for Nvidia computer chips. But there are some signs of cracks showing up in the spending plans for players such as OpenAI, Microsoft, and Oracle. Microsoft is beginning to slow its plans for data center development. OpenAI is trying to spend hundreds of billions of dollars that it doesn’t have today. Oracle is turning deeply free-cash-flow-negative to build out cloud computing data centers, and investors are not happy about it.

All of these variables point to risks for Nvidia’s demand in 2026. Combined with its high P/E ratio and above-average profit margins, Nvidia stock could definitely crash in 2026. I’m not saying it is guaranteed to happen, but it is something that any Nvidia shareholder needs to consider as a possibility next year.

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

The post Will Nvidia stock crash in 2026? appeared first on The Motley Fool Australia.

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

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

More reading

• Which AI chip stock is the better buy for 2026: Nvidia or Alphabet?
• 1 prediction for Nvidia in 2026
• Where will Nvidia stock be in 5 years?
• Down 17% from recent highs, is Nvidia stock a buy?
• Could Nvidia become the first $10 trillion company?

Brett Schafer 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 Alphabet, Amazon, Microsoft, Nvidia, and Oracle. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Infratil Ltd (ASX: IFT) share price is in focus today after the company received its first-ever investment grade credit rating of BBB+ with a stable outlook from S&P Global Ratings. The recognition is seen as a significant step in supporting Infratil’s future growth and funding flexibility.

What did Infratil report?

• S&P Global Ratings assigned an inaugural BBB+ investment grade credit rating to Infratil Limited
• The outlook for the rating is stable
• Rating reflects stable funding supported by substantial permanent capital
• Strong track record of investment performance cited by ratings agency
• New rating is a key milestone in Infratil’s funding and growth strategy

What else do investors need to know?

Infratil says the investment grade rating is expected to broaden its funding options, improve borrowing terms, and reduce future financing costs. The company’s track record over nearly three decades was highlighted as a foundation for the new rating.

The credit rating specifically applies to Infratil as an issuer, and not to its Infrastructure Bonds, which continue to be quoted on the NZX.

What did Infratil management say?

Andrew Carroll, Chief Financial Officer:

It is pleasing that the strength, quality and resilience of Infratil’s business and track record has been recognised with a strong investment grade rating. Securing an investment-grade credit rating is a key milestone in Infratil’s strategy to broaden funding options, enhance borrowing terms and reduce financing costs. After nearly three decades of strong funding support, Infratil’s scale and this rating positions us to access new debt markets and strengthens our capacity for future growth.

What’s next for Infratil?

With the investment grade rating in hand, Infratil aims to access new debt markets and further strengthen its funding base. Management believes this enhanced flexibility will help support future expansion and keep financing costs competitive.

The company is expected to continue focusing on its long-term strategy, supported by the ongoing stability and resilience that contributed to the improved credit profile.

Infratil share price snapshot

Over the last 12 months, Infratil shares have declined 15%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post Infratil gets investment grade credit rating in funding milestone appeared first on The Motley Fool Australia.

More reading

• Lendlease unveils $400m TRX sale and FY26 capital recycling update
• Reece announces $85 million on-market buyback target
• Regis Healthcare CEO resignation: Leadership transition update
• Aurizon lodges new 10-year network access undertaking with QCA
• Stockland announces estimated 1H26 distribution

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The All Ordinaries Index (ASX: XAO) has gained 6.4% over the last 12 months, with this ASX All Ords share doing a lot of the heavy lifting.

The fast-rising stock in question is Shape Australia Corporation Limited (ASX: SHA).

In early afternoon trade on Monday, shares in the Australian fitout and construction services specialist are up 0.2%, changing hands for $6.01 apiece.

This sees the Shape share price up an impressive 109.4% since this time last year.

After that kind of outperformance, you might think the train has left the station when it comes to buying this ASX All Ords share.

But the analysts at Ord Minnett would disagree.

Should you buy the ASX All Ords share today?

Ord Minnett initiated coverage on Shape shares on 12 December with a buy recommendation.

The broker noted that Shape’s national footprint, comprehensive service offering, and quality focus make it stand out in its sector.

So, what exactly does the ASX All Ords share do?

Ord Minnett explains:

The company specialises in transforming existing commercial, government, education, healthcare, and retail spaces into modern, functional, and aesthetically pleasing environments that meet the evolving demands of their occupants.

As for the three reasons that Shape shares can keep charging higher in 2026, the broker noted:

• Shape’s defensive qualities have it well-positioned to withstand and excel throughout the economic cycle
• The company’s track record of quality execution and how this drives future growth
• Shape’s capital-lite model and how this maximises its returns

Taking a look back, Ord Minnett also highlighted the strong annual revenue growth the ASX All Ords share has achieved over the past four years.

According to the broker:

Since listing in [late] 2021, the business has grown its revenue from $572.0m in FY21 to $952.3m in FY25, delivering a normalised EPS CAGR growth of 64% p.a. over that time.

And the past year has been particularly strong for the company. Ord Minnett noted:

2025 has been a defining year for SHAPE – the company has been buoyed by a record orderbook of $492.0m entering FY26 that continues to diversify its end markets, a revenue step change in FY26 (revenue +19.5% vs pcp), and a highly accretive acquisition (OMLe ~13% in FY27, given bought at 4x EV/EBITDA whilst SHA trades on 9x) that expands SHAPE’s EBITDA profile and diversifies its revenue streams.

As for its buy rating on the ASX All Ords share, Ord Minnett concluded:

We expect FY26 to be another year of strong topline growth as the company capitalises on a strong backlog orderbook and key project wins in FY25, as well as EBITDA margin expansion through operating leverage and M&A.

Noting that the investment in Shape shares comes with higher risk, Ord Minnett has a $7.10 price target on the stock.

That’s more than 18% above current levels.

The post Up 109% in a year, 3 reasons to buy this ASX All Ords share today appeared first on The Motley Fool Australia.

More reading

• Where would you invest $85m? Reece shares jump 3% on major buyback expansion
• Will Nvidia stock crash in 2026?
• Infratil gets investment grade credit rating in funding milestone
• Why DroneShield, Meteoric Resources, NextDC, and Nick Scali shares are charging higher today
• $5,000 to spare? I’d buy these 5 ASX 200 shares before the end of 2025

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 Shape Australia. 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 followed Wall Street’s lead and is charging higher. In afternoon trade, the benchmark index is up 0.9% to 8,700.8 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are climbing:

DroneShield Ltd (ASX: DRO)

The DroneShield share price is up 8% to $3.01. This has been driven by the release of an update this morning on the counter drone technology company’s independent review into its continuous disclosure and securities trading policies and other areas. One change that has been announced is the establishment of a mandatory minimum shareholding policy (MSP) for all directors and members of senior management. Directors will be expected to hold ordinary shares in the company equivalent in value to their annual base fee. Whereas the CEO will be expected to hold shares in the company equivalent in value to 200% of their annual salary.

Meteoric Resources NL (ASX: MEI)

The Meteoric Resources share price is up 32% to 18.5 cents. This morning, this rare earths developer revealed that it has received a preliminary environmental licence (LP) for its Caldeira Rare Earth Ionic Clay Project in Brazil. This marks a crucial step in its development. The company’s managing director, Stuart Gale, said: “We are very pleased to have obtained the LP without restriction. This is strong validation for the Caldeira Project and allows us to quickly move to the next stage of the licensing process to obtain the LI for construction of the Project.”

Nextdc Ltd (ASX: NXT)

The Nextdc share price is up 7.5% to $12.84. This morning, this data centre operator revealed another jump in contracted utilisation following further customer contract wins. This means that the company’s pro forma contracted utilisation has increased by 96MW or 30% to 412MW since its last update on 1 December. As a result of these customer contract wins, the company’s pro-forma forward order book has now increased to 301MW.

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is up 10% to $23.26. Investors have been buying this furniture retailer’s shares following the release of a trading update. The company revealed that its first half revenue for Australia and New Zealand is expected to be 10% to 12% more than the previous year. This is an upgrade to its previous guidance range of 7% to 9%. As a result, statutory net profit after tax for first half of FY 2026 is expected to be in the range of $37 million to $39 million. This is up from its guidance range of $33 million to $35 million.

The post Why DroneShield, Meteoric Resources, NextDC, and Nick Scali shares are charging higher today appeared first on The Motley Fool Australia.

More reading

• Why is this ASX rare earths stock rocketing 36% today?
• Why is everyone talking about DroneShield shares today?
• This ASX AI stock is jumping 9% on huge news
• NEXTDC lifts contracted utilisation and order book in December update
• Here are the top 10 ASX 200 shares today

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 DroneShield. 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.

If you have a spare $5,000 and don’t know where to invest it before the end of the year, I think these 5 ASX 200 shares are a great option right now. 

APA Group (ASX: APA)

The energy infrastructure group APA is a fantastic option for any investors who want a reliable passive income. The gas and energy infrastructure pipeline owner and operator has hiked its semi-annual dividends consistently for over 20 years. Its yield is usually significantly higher than that of the broader market. This makes it a great option for investors seeking an ongoing passive income. In FY25, the company increased its annual dividend distribution by 1.8% to 57 cents per security. 

At the time of writing on Monday, APA shares are down 0.91% to $9.22 a piece.

Woodside Energy Group Ltd (ASX: WDS)

It’s been a rocky year for the ASX 200 Australian petroleum exploration and production company and its shares. But its latest quarterly update in October showed an uptick in revenue and production. The business thinks the two metrics will keep growing over the next year too. Woodside upgraded its full-year production guidance to 192–197 MMboe. It also said it plans to progress its pipeline of global projects in 2026. Its Scarborough and Trion energy projects are on schedule. 

At the time of writing Woodside shares are 0.29% higher for the day at $22.86 each.

Woolworths Group Ltd (ASX: WOW)

The ASX 200 supermarket giant‘s share price dropped to an all-time low of $25.91 a piece in mid-October. But was saved from any further decline after the company posted a more positive first-quarter sales update. It’s one of Australia’s most established and dominant retailers, and it’s a defensive stock which means it will always see relatively stable demand for its products. I think it’s a pretty safe buy for long-term growth.

At the time of writing its shares are 0.034% lower for the day at $29.31 a piece.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre shares have stormed higher over the past month following its trading update in November. The company’s Managing Director, Graham Turner, revealed that the company is off to a positive start for FY26. I think that the current share price dip presents a great opportunity for investors to buy into the stock for cheap. Analysts are bullish about the shares too. Some expecting an upside as high as 22.3% over the next 12 months.

At the time of writing the travel group’s shares are down 1.43% for the day to $15.19 each.

Judo Capital Holdings Ltd (ASX: JDO)

Analysts are pretty pessimistic about the outlook for ASX 200 bank stocks over the next year… with the exception of Judo Bank. Its share price has suffered a significant decline throughout 2025, but Judo Bank has had a strong start to FY26 and it looks set to continue. At its latest annual general meeting (AGM), the bank said lending momentum had remained strong over the first quarter of FY26. The company also said that it was confident it would achieve FY26 guidance of $180-$190 million and meet its net interest margin guidance of 3% to 3.1%. 

At the time of writing its shares are 0.17% lower for the day at $1.73 a piece.

The post $5,000 to spare? I’d buy these 5 ASX 200 shares before the end of 2025 appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• How to turn $25,000 into $100,000 with ASX stocks
• Why experts say these growing ASX dividend shares are top buys for income
• Here’s the earnings forecast out to 2030 for Flight Centre shares
• 5 things to watch on the ASX 200 on Monday

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

The S&P/ASX 200 Index (ASX: XJO) is starting the week strongly on Monday. In afternoon trade, the benchmark index is up 0.9% to 8,699.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is down almost 2% to $21.71. This may have been driven by a broker note out of Citi. According to the note, the broker has downgraded the pizza chain operator’s shares to a sell rating with a $19.85 price target. The broker has concerns over the company’s operations in France and Japan. And given recent share price strength, it feels the risk is to the downside now for investors.

HMC Capital Ltd (ASX: HMC)

The HMC Capital share price is down 3.5% to $3.83. This morning, this alternative investment company’s shares were officially kicked out of the ASX 200 index following the quarterly rebalance. This means that certain index funds need to sell shares to reflect the changes. In addition, some fund managers have mandates that mean they can only invest in shares that are part of indices like the ASX 200 index. It is possible that they could be hitting the sell button and moving onto other options now the rebalance has taken place.

Regis Healthcare Ltd (ASX: REG)

The Regis Healthcare share price is down 2.5% to $7.14. Investors have been selling this aged care operator’s shares following the surprise resignation of its CEO. Dr Linda Mellors has announced her resignation after more than six years in the role. The company revealed that Mellors has decided to pursue a career opportunity in an unrelated sector. She has a six month notice period to serve. Regis’ chair, Graham Hodges, said: “Linda leaves the business in a strong financial and operating position and with a capable and experienced executive team. We wish her every success in the next chapter of her career.”

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 4% to $67.29. On Friday, the logistics solutions technology company revealed that its founder, Richard White, has entered into a collar derivative transaction and related financing facility with Macquarie Group Ltd (ASX: MQG) in respect of 20 million WiseTech shares. This was the equivalent of 6% of its issued shares and had a market value of approximately $1.4 billion at Friday’s close. The company notes that this may “be legally characterized for the purposes of section 707 of the Corporations Act as a sale.”

The post Why Domino’s, HMC Capital, Regis Healthcare, and WiseTech shares are falling today appeared first on The Motley Fool Australia.

More reading

• Regis Healthcare CEO resignation: Leadership transition update
• These are the 10 most shorted ASX shares
• How to turn $25,000 into $100,000 with ASX stocks
• Why I think these 3 ASX shares are top-quality buying at today’s prices
• 5 things to watch on the ASX 200 on Monday

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, HMC Capital, Macquarie Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Macquarie Group and WiseTech Global. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and HMC Capital. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors with an eye for lithium are likely familiar with Pilbara Minerals Ltd (ASX: PLS).

This ASX 200 mining stock operates the globally renowned Pilgangoora mine in the Pilbara region of Western Australia.

However, a lesser-known ASX lithium stock also been quietly building momentum in the same geological terrane.

More specifically, Wildcat Resources Ltd (ASX: WC8) has recently entered the radar after delivering a series of notable milestones at its Tabba Tabba lithium project.

And Sydney-based investment firm Shaw and Partners is paying attention.

Budding ASX lithium stock

Wildcat’s Tabba Tabba project lies some 50 kilometres from Pilbara Minerals’ Pilgangoora mine.

Since acquiring the project in 2023, Wildcat has defined a 74 million tonne resource grading 1.0% lithium (Li2O).

And a recent pre-feasibility study (PFS) outlined an initial 17-year mine life and forecast $3.2 billion in free cash flow after tax.

In addition, exploration success at the nearby Bolt Cutter project appears to have strengthened Wildcat’s growth profile.

Here, drilling revealed a series of encouraging lithium intercepts with 17 of 20 holes returning significant results.

This operational progress has not gone unnoticed by the market.

In the past six months alone, shares in this ASX lithium stock have bolted by 162% to $0.34 apiece at the time of writing.

For context, the S&P/ASX All Ordinaries Index (ASX: XAO) has risen by 3.18% across the same period.

But this powerful rally could just be getting started, according to Shaw and Partners.

“World-class” lithium project

In a research note released last week, Shaw and Partners summarised Wildcat’s plans to fast-track the “world-class” Tabba Tabba towards production.

Here, the broker noted that the thick mineralisation at the project could facilitate a long-life mining operation, with its location also flagged as a major strategic advantage.

Tabba Tabba lies about 80 kilometres from Port Hedland, offering the potential for highly competitive transport costs compared to peers.

Access to the Pilbara region’s established infrastructure and skilled workforce may further enhance the project’s commercial appeal.

Shaw and Partners also believes that Wildcat’s development timeline could align with a broader recovery in the lithium market.

It stated:

Wildcat is moving quickly toward production, having made its major discovery on already granted mining leases. This unusual status, combined with a signed Native Title Agreement, significantly truncates the regulatory and permitting timeline, allowing the company to target first production by FY28. This will allow Wildcat to capitalise on the current recovery in lithium prices as the market moves back into a period of structural tightness.

The broker pointed to an “overwhelmingly bullish” outlook for lithium demand, driven by EV adoption, increased power requirements in AI data centres, and growth in utility-scale energy storage systems.

It added:

As the market establishes an upward price trajectory following the 2023 cyclical slump, high-quality, high-grade developers such as Wildcat are well-positioned to benefit from this shift.

Share price in focus

Shaw and Partners initiated coverage with a buy rating on Wildcat, setting a target price of $0.70 per share for this ASX lithium stock.

This implies 106% upside potential from $0.34 per share at the time of writing.

The post Up 162% in 6 months! Expert tips this surging ASX lithium stock to double again appeared first on The Motley Fool Australia.

More reading

• Expert says this barnstorming ASX lithium stock could soar by another 59%
• Why 4DMedical, Dateline, Predictive Discovery, and Wildcat shares are racing higher

Motley Fool contributor Bart Bogacz 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.

Meteoric Resources NL (ASX: MEI) shares are having a day to remember on Monday.

At the time of writing, the ASX rare earths stock is up 36% to 19 cents.

Why is this ASX rare earths stock rocketing?

Investors have been scrambling to buy the company’s shares today after it made a major announcement relating to its Caldeira Rare Earth Ionic Clay Project in Brazil.

According to the release, the company has obtained a preliminary environmental licence (LP) for the project.

It was voted on by the State Council for Environmental Policy (COPAM) at a meeting on Friday in Belo Horizonte. The application received unanimous support from COPAM council members who accepted the favourable recommendation by technicians from the Environmental Foundation of the State of Minas Gerais (FEAM).

The critical approval

The ASX rare earths stock advised that in Brazil, the LP is the first stage of the licensing process required for projects that have an environmental or social impact.

And while it is only the first stage, it is also the critical approval. That’s because it confirms the project’s environmental viability, approves the location, as well as establishing basic requirements and conditions that must be met in the next phases.

The LP area covers the first phase of the project and includes resources and reserves located within the southern licences of Capão do Mel, Soberbo, and Figueira.

This receipt allows the ASX rare earths stock to progress with all other stages of its permitting and licencing process to deliver the Caldeira Project.

‘Strong validation’

Commenting on the big news, the company’s managing director, Stuart Gale, said:

We are very pleased to have obtained the LP without restriction. This is strong validation for the Caldeira Project and allows us to quickly move to the next stage of the licensing process to obtain the LI for construction of the Project. We appreciate the strong, ongoing support received from the Municipality of Caldas, the State of Minas Gerais and FEAM, together with our advisors and our exceptionally hard-working team. Together with the recent opening of the Pilot Plant, obtaining the LP caps off an extremely productive year for Meteoric.

Gale also confirmed that the company is on track to make a decision on the project in the middle of next year. He adds:

We delivered a Pre-Feasibility Study, announced our maiden reserve, progressed key engineering and metallurgical programs to support the feasibility study, continued to build our ionic clay intellectual property and maintained key Project delivery timelines. This ensures Meteoric is well positioned to secure final approvals, negotiate binding offtake agreements, complete the feasibility study and progress to Final Investment Decision, by the middle of 2026.

The post Why is this ASX rare earths stock rocketing 36% today? appeared first on The Motley Fool Australia.

More reading

• This ASX small-cap mining stock is tipped to rocket 160% higher
• Why 4DMedical, Megaport, Meteoric Resources, and Ramelius shares are racing higher today
• Rare earths company ticks off key production milestone
• Why Macquarie expects this surging ASX All Ords mining stock to rocket another 160%
• Meet the ASX rare earths stock that could rocket 80%

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.

ASX lithium shares, including Mineral Resources Ltd (ASX: MIN) and Liontown Resources Ltd (ASX: LTR), have been on a tear over the past half year.

Both stocks are posting strong intraday gains today.

And amid resurgent global lithium prices, they’ve smashed the benchmark returns these past six months.

Here’s what I mean.

Since market close on 23 June, the All Ordinaries Index (ASX: XAO) has gained a modest 3.2%.

Over this same time, the Mineral Resources share price has surged 167.6%, while Liontown shares have leapt 129.1%.

Here’s how some of the other fast-rising ASX lithium shares have performed over the last six months:

• Pls Group Ltd* (ASX: PLS) shares are up 231%
• IGO Ltd (ASX: IGO) shares have gained 102.7%
• Core Lithium Ltd (ASX: CXO) shares are up 225.0%

(*Formerly Pilbara Minerals, with the company name changed in early December.)

Clearly, shareholders will be pleased with the past half-year’s returns.

But those are all in the rearview now.

Which brings us back to our headline question.

Is it too late to buy these surging ASX lithium shares now?

What’s been lifting the Aussie lithium miners?

Before we look ahead, first it’s important to note what’s been sending Mineral Resources, Liontown, and the other Aussie lithium stocks rocketing.

As mentioned up top, that’s largely due to sharply rebounding global lithium prices.

Indeed, we’re seeing lithium carbonate prices trading at their highest levels in 18 months, while spodumene (a lithium bearing mineral) is trading at its highest levels in two years.

And we need look no further than China, the world’s top lithium consumer, to discover the fuse that’s been lit under ASX lithium shares these past months.

On the supply side, China’s government sent lithium prices jumping last week following news that it had revoked a number of expired mining permits that were reportedly focused on lithium.

While that move is unlikely to have a material impact on global lithium production, markets nonetheless appear to be anticipating tighter supplies amid rising demand.

The lithium price and ASX lithium shares have also been catching tailwinds from expectations of increasing demand.

As Trading Economics notes, China recently said it aims to double the nation’s EV charging capacity to 180 gigawatts by 2027. And with EV sales rapidly increasing in China, major lithium producer Ganfeng said it expects a 30% increase in lithium demand next year.

Can these surging ASX lithium shares keep rocketing in 2026?

Despite the huge gains over the last six months, Mineral Resources shares, Liontown shares, and indeed most all ASX lithium shares are still trading well below their 2022 and early 2023 highs.

And there are good reasons to believe they can keep outperforming in 2026.

According to Reg Spencer, a mining analyst at Canaccord Genuity (quoted by The Australian Financial Review):

Fundamentals of the lithium market are strong. We’ve seen pretty much every broker on the planet upgrade their forecasts so it’s a great set-up heading into 2026.

The reality is that spodumene prices have doubled, chemical prices in China have almost doubled, and I still haven’t seen any new Western greenfield projects sanctioned. And as the market gets bigger, you need more projects to come online to satisfy demand.

The post Is it too late to buy surging ASX lithium shares like Mineral Resources and Liontown? 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.