Northern Star Resources Ltd (ASX: NST) shares are surging on Wednesday, climbing 6.14% to $28.54.

The gains follow a sharp rebound in the gold price, which has lifted sentiment across the gold sector. Spot gold has pushed back above the key US$5,000 per ounce level after one of its strongest rallies in years.

That move has put Australia’s major gold producers back in focus, with Northern Star among today’s standout performers.

Gold back in favour

Gold prices jumped more than 2% overnight, extending a sharp rebound after recent volatility.

According to Trading Economics, spot gold is trading around US$5,018 per ounce, as investors returned to safe-haven assets amid geopolitical uncertainty and shifting interest rate expectations.

Gold’s recovery has been driven by a mix of factors. These include renewed tensions in global politics, expectations that interest rates may peak sooner than previously thought, and ongoing central bank buying.

Northern Star, one of Australia’s largest ASX-listed gold producers, is well placed to benefit from this environment. The company operates a portfolio of long-life assets across Western Australia and Alaska, giving it strong leverage to movements in the gold price.

Recent results still in focus

The share price lift also comes just days after Northern Star flagged a softer December quarter.

The company reported lower gold sales and slightly higher costs, which led to a trim in full-year guidance. That update weighed on the stock last month and triggered several broker downgrades.

However, today’s rally suggests investors are looking past near-term operational issues. With gold prices hovering near record highs, the focus has shifted back to longer-term earnings potential.

Northern Star is progressing with mill expansions and ongoing exploration across its core assets, which could support higher production and lower costs over time.

What brokers are saying

Broker views on Northern Star are mixed but broadly supportive. Several major investment banks continue to see upside from current levels.

Bell Potter recently reiterated a buy rating with a price target of $31.10, pointing to strong leverage to gold prices. Jefferies also maintains a positive stance, with a target of $30 per share.

On the more cautious side, UBS downgraded the stock to sell earlier this month, despite lifting its price target to $28.30. Other brokers, including Ord Minnett and Morgans, sit closer to neutral, citing cost pressures and recent operational challenges.

Overall, the average broker target sits around the $30 mark, suggesting the stock is fairly valued but still supported by gold’s strength.

Foolish Takeaway

Northern Star’s sharp rally highlights how quickly sentiment can shift when gold prices move.

Attention now turns to Northern Star’s first-half results on Thursday, 12 February 2026, where costs, production, and guidance will be closely watched.

The post This ASX gold stock is rocketing 6% today. Here’s why appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
• Why Appen, Brightstar, Graincorp, and Northern Star shares are sinking today
• 5 things to watch on the ASX 200 on Monday
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• 5 things to watch on the ASX 200 on Thursday

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

Wealth in the share market doesn’t usually come from one brilliant trade. In my experience, it comes from owning the right ASX shares early, sticking with them through the ups and downs, and continuing to invest along the way.

That’s why I’m drawn to smaller, high-quality ASX growth shares that still have long runways ahead of them. Not because they’re guaranteed winners, but because if they execute well over many years, the compounding can be powerful.

Here are three ASX shares that fit that mould for me.

Megaport Ltd (ASX: MP1)

Megaport is a good example of a business doing something essential rather than flashy. It provides on-demand connectivity between data centres, enterprises, and cloud providers. In simple terms, it helps move vast amounts of data quickly and flexibly across the world.

As cloud computing, artificial intelligence, and hybrid IT architectures become more complex, that flexibility matters more. What I like most is that Megaport isn’t standing still. The acquisition of Latitude has expanded it beyond connectivity into compute infrastructure, which deepens customer relationships and increases potential revenue per client.

This is still a relatively small company in the scheme of global digital infrastructure. If management executes and demand continues to grow, long-term shareholders could be rewarded. But it would likely be a journey with plenty of volatility along the way.

SiteMinder Ltd (ASX: SDR)

SiteMinder operates in a niche that quietly benefits from global travel without taking on the capital risk of airlines or hotels. Its software helps hotels manage bookings, pricing, and distribution across multiple channels.

What appeals to me here is the embedded nature of the product. Once a hotel relies on SiteMinder to manage room inventory and revenue, switching becomes inconvenient and risky. That creates stickiness and recurring revenue over time.

The global hotel market is enormous, and SiteMinder’s penetration remains relatively modest. If it continues expanding internationally and improving margins as it scales, the compounding effect over a decade or more could be meaningful. This isn’t about next quarter’s result. It’s about owning a platform that becomes more valuable as travel becomes more digital.

DroneShield Ltd (ASX: DRO)

DroneShield is probably the highest-risk name on this list, but also potentially the one with the most upside.

It develops counter-drone technology used by military, government, and critical infrastructure operators. As drones become cheaper and more capable, the need to detect and neutralise them grows. Unfortunately, this is not a problem that is going away any time soon.

What I find interesting is the mix of hardware, software, and increasingly recurring revenue through software upgrades and support. Defence procurement is lumpy, and share prices can swing wildly on contract timing. But if DroneShield continues to win credibility and expand its installed base, long-term value could build quietly behind the scenes.

Foolish Takeaway

I don’t buy ASX growth shares expecting instant results. I buy them because, over the long term, a small number of successful businesses can do an outsized share of the heavy lifting in a portfolio.

Megaport, SiteMinder, and DroneShield all operate in growing markets, are still relatively small, and have paths to becoming much larger businesses if things go right.

That doesn’t make them safe or certain. But for patient investors willing to invest consistently and think long term, these are the kinds of shares I believe can change the shape of a portfolio over time.

The post Could buying these ASX shares make me rich? appeared first on The Motley Fool Australia.

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• These 2 ASX dividend shares are great buys right now
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• These 3 ASX 200 shares have soared over 200% in a year!

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. The benchmark index is currently up 0.35% to 8,887.4 points.

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

Hot Chili Ltd (ASX: HCH)

The Hot Chili share price is down 3.5% to $1.87. This follows news that the gold developer has raised $40 million at a discount of $1.65 per new share. The company notes that upon completion of the capital raise, it will be well funded in 2026 to deliver strong growth and development milestones for the Costa Fuego copper-gold project, which is located in the coastal range of Chile. Hot Chili’s managing director, Christian Easterday, said: “We are delighted by the overwhelming support received from new and existing institutional investors, as well as our top three major shareholders, in the Placement. The strong participation from these groups highlights the confidence in our strategy to continue driving Hot Chili’s re-rate into a rising copper market.”

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price is down 6% to $9.91. Investors have been selling this online lottery ticket seller’s shares despite it delivering a strong half-year update this morning. The company revealed that revenue is expected to rise 29% to $85.3 million in the first half, after total transaction value (TTV) increased 15.7% to $524.7 million. Underlying EBITDA is expected to be $37.5 million for the first half. This will be up 22.6% from $30.6 million in the prior corresponding period. This strong performance was achieved despite the broader lottery environment being relatively weak.

PYC Therapeutics Ltd (ASX: PYC)

The PYC Therapeutics share price is down 6% to $1.50. This has been driven by the completion of an institutional placement. The precision medicine company has attracted strong support from new investors and existing institutional shareholders. This saw PYC receive commitments for a total of $537 million at an offer price of $1.50 per new share. The financing has extended its cash runway through to 2030. This will allow PYC to deliver important human safety and efficacy data for all four of its drug development programs.

Xero Ltd (ASX: XRO)

The Xero share price is down 13% to $83.05. Investors have been selling this cloud accounting platform provider’s shares following a brutal selloff in the tech sector on Wednesday amid AI disruption concerns. This has seen the S&P/ASX All Technology Index sink over 6% this afternoon. Not even a number of bullish broker notes have been able to stop Xero shares from crashing. One of those was from Macquarie Group Ltd (ASX: MQG), which has retained its outperform rating with an improved price target of $233.80.

The post Why Hot Chili, Jumbo, PYC, and Xero shares are sinking today appeared first on The Motley Fool Australia.

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

Shares in Bellavista Resources Ltd (ASX: BVR) were surging higher on Wednesday after the company announced a significant capital raise at a discount.

This is unusual, as a company’s share price tends to head south when a decent capital raise is announced, but the explanation might lie in news that came out earlier in the week.

Deal flow enticing shareholders

Bellavista announced on Monday that it had struck an agreement with fellow gold company FireFly Metals Ltd (ASX: FFM) to acquire 70% of the Pickle Crow gold project in Ontario, Canada, and to exercise the option to increase that interest to 80% subject to some conditions.

The Pickle Crow project has an inferred mineral resource of 2.8 million ounces of gold at a grade of 7.2 grams of gold per tonne, the company said on Monday.

Bellavista added in its statement on Monday that it believed there was “immense exploration upside” at Pickle Crow and other landholdings in the Uchi and Wabigoon belts in Canada, and it would be kicking off an “aggressive” exploration campaign.

Firefly said in its release on Monday that it would be paid 60 million Bellavista shares and 50 million performance rights for the Pickle Crow project, with an aggregate value of $86.1 million.

The $1.5 billion company would then distribute these shares to its own shareholders by way of a pro-rata, in-specie distribution.

Well-funded for exploration

Back to the capital raise, Bellavista said it would have $32 million in cash after raising the new money at 75 cents per share, with the proceeds to be used to exercise the Pickle Crow earn-in and to fund exploration programs in Canada and at its Brumby project in Western Australia.

The money would be raised in two tranches, with $16 million of the new raise requiring shareholder approval.

Bellavista Managing Director Glenn Jardine said the capital raise was well-received.

We are extremely pleased with the level of support for the Company and the proposed acquisition of up to an 80% interest in the Pickle Crow Project and additional exploration tenure in Ontario, Canada from FireFly Metals, as shown by this highly successful capital raising. Bellavista will emerge well-funded to aggressively explore the Pickle Crow project (subject to completion of the Acquisition) which has seen limited exploration since 2023. We believe the project has significant exploration upside with the large, high grade gold resource remaining open along strike and down dip and we have ambitious growth plans with the right team in place to drive that growth.

Bellavista shares were 8.2% higher at 85.5 cents at about noon on Wednesday.

The company was valued at $80.4 million at the close of trade on Tuesday.

The post Why are shares in this gold developer heading higher after a capital raise? 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.

Yesterday, amid resurgent inflation, ASX investors were faced with the first RBA interest rate hike since November 2023.

That was back when Australia’s central bank lifted the official cash rate to 4.35%.

Which is where rates remained until February 2025, when the RBA delivered its first cut since November 2020. And in case you’ve forgotten, in November 2020, the cash rate was cut to a rock bottom 0.10% in an, erm, effort to spur ‘stubbornly missing’ inflation.

Careful what you wish for!

Following two more rate cuts in 2025, the benchmark interest rate stood at 3.60% on Tuesday morning. But on Tuesday afternoon, the RBA board announced in a unanimous decision that it was boosting the cash rate to 3.85%.

“The board has been closely monitoring the economy and judges that some of the increase in inflation reflects greater capacity pressures,” the board noted.

And ASX investors hoping for a reprieve later in the year may be left wanting.

“The board judged that inflation is likely to remain above target for some time and it was appropriate to increase the cash rate target,” the RBA noted. The board now doesn’t expect inflation to return to its 2% to 3% target range until 2028.

The big question now is not so much when Australia’s central bank may move to cut interest rates, but rather if you should be buying ASX shares with the prospect of another rate hike on the horizon.

The RBA’s next two rate-setting meetings are on 17 March and 5 May.

With that question in mind, we turn to the economists at Commonwealth Bank of Australia (ASX: CBA).

What is CBA forecasting for RBA interest rates?

“Inflation is simply too high for the RBA at this stage, and the central bank has signalled a stronger resolve to bring it back within target,” CBA head of Australian economics Belinda Allen said.

“This is ultimately a fine‑tuning exercise. But unless inflation materially undershoots in the March quarter, the RBA is unlikely to pause in May,” she added.

CBA expects the RBA to hold tight in March, with the official interest rate then likely to be lifted by another 0.25% at the central bank’s May meeting.

According to Allen:

As previously flagged, the risk always sat with a second rate hike to bring inflation back towards target and the economy back into balance. With the labour market now in a better position than a few months ago, and an increased resolve from the RBA, on the balance of probabilities we now see the RBA hiking again in May to take the cash rate to 4.10%.

Of course, a May rate hike is not locked in.

Allen concluded:

It would take a material undershoot in inflation in the March quarter for them to not hike the cash rate again in May. But this is a close call and will also depend on other data flow, particularly the labour market as well as high frequency indicators.

With yesterday’s rate hike largely expected, the S&P/ASX 200 Index (ASX: XJO) closed the day up 0.9%.

The post Buying ASX shares? Here’s what CBA says to expect from interest rates following Tuesday’s RBA hike 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.

If you are looking for some investment ideas, then read on.

That’s because analysts have just given their verdict on three popular ASX shares.

Here’s what they are saying, courtesy of The Bull, this week:

A2 Milk Company Ltd (ASX: A2M)

The team at Baker Young notes that this infant formula company’s shares have come under pressure due to news that Chinese birth rates have fallen heavily.

However, it doesn’t think its shares have fallen quite enough to warrant anything more than a hold rating right now. It said:

A2M shares tumbled about 12 per cent on January 19 following news that birth rates in China – its key infant formula market – fell 17 per cent in 2025 to multi-decade lows. While this suggests continued headwinds for demand, we note the company is still likely to see mid-single digit sales and earnings growth in fiscal year 2026.

A2M enjoys significant pricing power in China, boasts a strong balance sheet and has the potential to further diversify its products and end markets over the medium term.

ARB Corporation Ltd (ASX: ARB)

Another ASX 200 share that has fallen heavily is 4×4 parts manufacturer ARB. This has been driven by the release of a disappointing trading update.

Despite this decline, Baker Young notes that its shares are still trading above its valuation. As a result, it has put a sell rating on its shares. It said:

The four wheel drive accessories maker warned on January 20, 2026 that sales in key Australian and OEM (original equipment manufacturer) markets continued to decline in the first half of 2026. While exports to the United States were better than expected, it represents a smaller portion and lower margin segment of ARB’s business and is unlikely to offset major headwinds largely beyond the company’s control.

ARB shares were recently trading more than 10 per cent above our valuation, so we suggest investors consider selling around current levels.

Wesfarmers Ltd (ASX: WES)

Over at Morgans, its analysts recognise the quality of this conglomerate. However, due to a strong re-rating of its shares last year, the broker feels they are fully valued now.

As a result, it has suggested that investors sell Wesfarmers shares this week. It said:

Wesfarmers remains a high quality industrial conglomerate, but after a strong re-rating through 2025 and solid fiscal year 2025 results, the stock, in our view, now screens as close to fully valued with limited upside. Shares were recently trading near the upper end of its recent range, supported by resilient results at Bunnings and Kmart.

However, broader group earnings are increasingly sensitive to macroeconomic conditions across retail, industrials and commodities. While the longer term outlook remains strong, the recent valuation already captures much of the good news. With the stock priced for perfection amid slowing momentum, we believe investors may benefit from reducing exposure at these levels.

The post Buy, hold, sell: A2 Milk, ARB, and Wesfarmers shares 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 positions in and has recommended ARB Corporation and Wesfarmers. The Motley Fool Australia has recommended ARB Corporation and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Certain Australian stocks look particularly appealing at current valuations. I’m going to highlight two of them that I’d happily buy with $5,000.

When I think about the Australian economy, a few industries come to mind. Agriculture is one area, while housing, homewares, and furniture are another area that plays an important part.

I am optimistic about both of the S&P/ASX 300 Index (ASX: XKO) shares below, which is why I’m a shareholder in them.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the leading online retailers of homewares and furniture, selling more than 200,000 products from hundreds of suppliers.

A large proportion of those products are shipped directly by suppliers, allowing the Australian stock to maintain a capital-light model while still offering customers a wide range of items.

The Temple & Webster share price has fallen around 50% over the past six months, which I believe makes this an excellent long-term investment opportunity, given its potential for profit growth.

As its revenue grows (and it is increasing at a pleasing double-digit rate year over year), the fixed costs are becoming a smaller percentage of revenue, leading to rising margins. Temple & Webster is also investing in AI, which is helping lower costs and improve customer conversion.

I’m expecting significant profit growth in the coming years as more Australians adopt online shopping for their homewares and furniture purchases. Additionally, there is significant scope for the home improvement segment to continue its pace of revenue growth – revenue rose 43% in FY25.

Rural Funds Group (ASX: RFF)

Farmland is an important contributor to the Australian economy, and this real estate investment trust (REIT) is a compelling way to invest in the sector on the ASX.

It owns a portfolio of different types of farms, including cattle, almonds, macadamias, vineyards, and cropping.

The Australian stock provides exposure to the agricultural sector without having to ride the volatility of food commodity prices or other operational risks.

Rural Funds is also benefiting from ongoing rental growth, which is an organic driver of rental earnings and the underlying value of the farms. While I’m not expecting strong growth, the farms with rental income that’s linked to inflation are getting a useful boost during this period, while the farms with fixed annual increases are consistent.

This seems like a good time to invest because it’s trading at a discount of around 34% to its underlying net asset value (NAV). It’s also expecting to pay a distribution yield of 5.8% in FY26, at the ASX share’s current value.

The post 2 strong Australian stocks to buy now with $5,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Rural Funds Group and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Temple & Webster Group. 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 in strong demand from investors over the past 12 months.

During this time, the lithium miner’s shares have almost doubled in value.

Does this make it too late to invest? Let’s see what analysts at Bell Potter are saying about the high-flying stock.

What is the broker saying?

Bell Potter was relatively pleased with PLS’ performance during the second quarter, especially given its processing of low quality ore. It said:

PLS reported quarterly spodumene concentrate (SC) production of 208kt (BP est. 214kt) and sales of 232kt at 5.2% Li2O (BP est. 221kt). Lithium recoveries were 76% (1Q FY26 78%), a strong result despite processing higher levels of low quality ore. Unit costs were A$585/t FOB (BP est. A$579/t), up 8% QoQ, with lower production volumes; an inventory drawdown supported the higher sales.

At 31 December 2025, PLS had cash of $954m (30 September 2025 $852m), net cash (including leases) of ~$272m and available cash liquidity of ~$1.6b. Quarterly operating cash flow was $131m; capex was -$45m; and PLS received an income tax refund of +$74m. FY26 guidance was re-iterated.

Big news coming

The broker highlights that there is potentially some big news coming in the current quarter. That news relates to the Ngungaju operation, which PLS is looking at restarting. It said:

In the current quarter, PLS’ Board will assess a potential restart of the Ngungaju processing plant (~200ktpa SC capacity), with approval contingent on confidence in sustained lithium market pricing. Associated capital expenditure is included in FY26 guidance; a four month ramp-up period is expected. PLS will also provide updated timelines for completion of a P2000 Feasibility Study and a Colina Development Study and further visibility around growth project sequencing.

Should you buy PLS shares?

Bell Potter thinks that the company’s shares are fair value right now and has put a hold rating and $4.60 price target on them. This implies only modest upside of 2% for investors from its current share price.

Commenting on its hold recommendation, the broker said:

We maintain our Hold recommendation. PLS’ earnings and cash flow will strengthen with around 200ktpa of idled spodumene concentrate capacity that can be rapidly reactivated into improved lithium prices. P2000 and Colina development studies are being progressed, providing organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.

The post Here’s what Bell Potter is saying about PLS shares in February 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.

Shares in Island Pharmaceuticals Ltd (ASX: ILA) are trading higher despite the company raising money at a discount, as its US plans begin to take shape.

The company said on Wednesday morning that it had raised $9 million through the issue of new shares at 35 cents apiece, with the placement cornerstoned by a US family office, “with additional commitments from a select group of local and international investors”.

While discounted capital raisings generally result in share price weakness, Island shares were trading 15.4% higher at 45 cents on Wednesday morning.

Pathway to approval laid out

This was likely due to the company providing further detail on the regulatory pathway for its key antiviral compound, Galidesivir, in a separate announcement to the ASX.

The company said in a statement it “advises it has received highly constructive and strategically important guidance from the US Food & Drug Administration (FDA), confirming the validity of Island’s proposed animal model and outlining final steps required to progress Galidesivir toward approval under the Animal Rule”.

The company went on to say:

The FDA’s correspondence, received 30 January 2026 provides clear regulatory alignment on the use of the Angola strain of Marburg, the cynomolgus macaque model and the viral challenge dose – the core elements that underpin Animal Rule development. This confirmation represents a major de-risking milestone for the program. The FDA has now defined a two-stage clinical development pathway for Galidesivir, enabling Island to move rapidly into targeted dose-optimisation and pharmacokinetic (PK) studies, followed by a pivotal confirmatory study required for approval.

The company said it would conduct two trials in “a limited number of non-human primates” with that data to be submitted to the FDA to support further clinical trials.

Island said that approval under the animal rule “represents a transformational opportunity, providing a defined regulatory pathway for medical countermeasures targeting high consequence viral threats”.

The company added:

Animal Rule approval may unlock US Government procurement, including potential inclusion in the Strategic National Stockpile (SNS) – a pathway associated with significant, long-term, non-dilutive revenue.

Island Managing Director Dr David Foster said the new funding came at a pivotal time for the company.

Following the FDA’s confirmation of Galidesivir’s Animal Rule development pathway, we now have a clearly defined, executable route to approval, and this funding ensures we are fully resourced to move forward without delay.” “The placement provides the financial strength to complete our two-stage Animal Rule program, progress toward a New Drug Application, and manufacture additional Galidesivir supply to meet clinical development and potential commercial readiness objectives. Importantly, it removes funding risk at a time when regulatory uncertainty has been materially reduced.

The good news follows Island announcing last month that it had won patent protection for Galidesivir.

The post Why are shares in this biotech charging higher after a capital raise? 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.

The Worley Ltd (ASX: WOR) share price is trading lower on Tuesday following a positive update from the company.

At the time of writing, Worley shares are down 1.12% to $13.23, with investors appearing cautious as they digest the announcement. By comparison, the broader S&P/ASX 200 Index (ASX: XJO) is currently down 0.2%.

Let’s take a closer look.

What Worley announced today

In an ASX release, Worley confirmed it has signed a reimbursable engineering, procurement, and construction contract for Phase 2 of Venture Global’s CP2 project.

CP2 is a large-scale liquefied natural gas development in Louisiana and is regarded as strategically important to global energy supply.

Worley said the Phase 2 scope supports Venture Global’s progression toward final investment decision (FID) and eventual project execution. The work builds on Worley’s existing involvement in CP2 following earlier engineering activities.

Execution will be led out of Worley’s Houston, Baton Rouge, and Reading offices, supported by its global integrated delivery team.

Chief Executive Chris Ashton said the project highlights Worley’s ability to deliver complex, large-scale energy infrastructure and reinforces its long-standing relationship with Venture Global.

Why the share price moved lower

New contract wins are usually a positive, but the market response this time has been more restrained.

That caution likely reflects the nature of the work involved. Reimbursable EPC contracts can add revenue, but margin uplift is usually limited.

There was also no contract value disclosed. Without a dollar figure attached, it is difficult to assess the near-term impact.

Timing may be another factor. With Worley due to report its half-year results on Thursday, 26 February, some investors may be choosing to wait. A broader update on margins, cash flow, and backlog could provide clearer direction.

The bigger picture for Worley

Despite today’s pullback, Worley remains well-positioned across energy, chemicals, and resources markets.

The company continues to secure work across LNG, hydrogen, and decarbonisation, giving it exposure to both traditional energy and the energy transition. Its global delivery model and diversified client base have helped smooth earnings through recent volatility.

Investors will be particularly focused on how backlog converts to cash and whether margins continue to hold up as project activity lifts.

What to watch next

The next key catalyst is Worley’s half-year results later this month. Any update on margin trends, cash flow, or backlog quality could have a bigger influence on the share price than today’s announcement.

Progress at CP2 toward final investment decision will also be closely watched, as that could unlock further work scopes over time.

The post This ASX 200 stock is dipping lower despite positive news. Here’s what’s behind it 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 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.