Graincorp Ltd (ASX: GNC) shares were making headlines yesterday after the company released updated FY26 guidance. 

GrainCorp provides handling, storage, marketing, logistics and agronomic services to the East Coast grain industry.

What did GrainCorp report?

• Reconfirmed FY26 underlying EBITDA guidance at around $200–240 million
• FY26 underlying NPAT expected within $20–50 million range
• Business Transformation Program to deliver $12 million run-rate benefits by end FY26
• One-off restructuring costs of $5 million incurred in FY26
• System transformation spend unchanged for 2H26 at $25 million; FY27 updated to $30–35 million.

Why did the share price fall?

As reported by my colleague Aaron Teboneras, GrainCorp announced its transformation program remains on track to deliver around $12 million in FY26 savings, ahead of its previous target. 

Its longer-term goal of adding $20 million-$30 million to through-the-cycle EBITDA by FY28 is unchanged.

However, the technology rollout has been delayed. Release 1 is now expected to go live in Q2 2027, versus H2 2026 previously. 

GrainCorp said the delay will reduce implementation risk, but FY27 spending is now expected to rise to $30 million-$35 million, about $30 million above its previous estimate.

Investors were seemingly unimpressed by the news, as GrainCorp shares fell 4% during yesterday’s session. 

The agribusiness has now seen its share price fall 22% over the last 12 months. 

Bell Potter sees greener pastures ahead for GrainCorp shares

Following the release, the team at Bell Potter provided updated guidance on GrainCorp shares. 

Commenting on the outlook for the company, the broker said GrainCorp’s FY26 guidance is broadly in line with expectations, with Underlying EBITDA expected around the midpoint of the $200-240m range, including $5m of restructuring costs from a review of the Agribusiness operating model. 

Commenting on the company’s adjusted outlook, the broker said near-term earnings are expected to be slightly lower because of a $5m restructuring cost. 

However, Bell Potter believes GrainCorp’s transformation program will ultimately deliver more savings than previously expected, which is why it raised its price target.

Buy rating retained 

Bell Potter’s report also reiterated a buy rating on GrainCorp shares. 

Additionally, the broker has upgraded its share price target to $7.50 (previously $7.15). 

Based on yesterday’s closing price, this indicates upside potential of almost 13%. 

Buy rating retained. The recent ABARE crop report was positive lead for FY27e and is yet to filter entirely through consensus expectations. However, the margin backdrop at this point, in terms of both grain basis and oilseed crush margins, remains the strongest it has for three years. To us this is key, as consensus FY27e expectations (which the 2026-27 crop underwrites) looks to be carrying forward the margin environment of FY25-26e, which was materially weaker. Trading at ~5.0x FY27e PBTDA we see the valuation as undemanding.

The post Why this broker thinks GrainCorp shares are a buy after yesterday’s fall appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Aaron Bell 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.

Often investors associate ASX ETFs with broad, index tracking funds. 

While these ASX ETFs make a great foundation for a portfolio, there are also more focused funds that track specific themes and sectors. 

Are thematic funds a good investment?

Like any investment, these kinds of funds come with pros and cons. 

Investing in niche, thematic ASX ETFs can give investors targeted exposure to emerging industries, trends, and themes with strong long-term growth potential.

These ETFs also provide diversification across several companies within a theme, making them less risky than investing in a single company. 

However, their narrow focus can also create significant risks, as the ETF’s performance may depend heavily on one industry or trend, making it more volatile and vulnerable to changes in technology, regulation, competition or investor sentiment. 

One thematic ASX ETF that has stood the test of time and brought consistent long-term returns is BetaShares Global Cybersecurity ETF (ASX: HACK). 

A decade of delivery

The S&P/ASX 200 Index (ASX: XJO) has compounded at approximately 9% per annum over the last 10 years, dividends included.

Generating 9% returns each year is nothing to complain about. 

However, HACK ETF has outpaced the ASX 200 Index.

HACK ETF aims to track an index that provides exposure to leading companies in the global cybersecurity sector.

A new report from Betashares has highlighted its strong track record.

Since its inception, HACK ETF has returned 18.9% p.a. as at 31 August 2026 and generated more than $800 million in value to shareholders.

This has far outperformed the ASX 200 in the same span. 

Why the growth can continue 

According to Betashares, more than 100 major tech companies, including Alphabet, Microsoft, Anthropic, and OpenAI, issued an urgent joint letter last month calling for collective action to strengthen existing cyber defences in the age of AI.

While cybersecurity offerings have existed for decades, this wake-up call starkly reminds us that the current security status quo is no longer sufficient. Longstanding bugs, excessive permissions and weak authentication in legacy systems have left the attack surface wider and more exposed than ever.

This growing issue is also resulting in financial investment. 

Firms have been increasing cybersecurity and IT spending as the complexity of protecting proprietary information grows. It also remains one of the more defensive areas in enterprise tech budgets, and Chief Information Officers are unlikely to cut spending during periods of economic weakness.

While no thematic ETF is guaranteed to repeat its past performance, HACK ETF’s decade-long track record and the growing need for cybersecurity highlight how a niche investment theme can evolve into a durable, long-term opportunity.

The post This ASX ETF has beaten the market over the last 10 years appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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, BetaShares Global Cybersecurity ETF, and Microsoft. The Motley Fool Australia has recommended Alphabet and Microsoft. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A new report from Betashares has shed light on the changing dynamics of investing. 

For much of the past two decades, Australian investors were rewarded for prioritising capital growth. 

However several headwinds are now changing this landscape. 

High valuations, a shifting interest rate environment and recent tax changes are all impacting the potential of growth investing. 

Why growth was king

According to the report, In the decade to 2026, the economy enjoyed an average RBA cash rate of 1.8%, less than half of the 4.6% average since 1990. 

This meant debt was cheap, and businesses and investors alike were awash with cash to invest and expand.

While growth benefited from low interest rates, income suffered. Savings accounts paid lower interest, and Australian government 10-year treasury bonds paid an average of just 2.7%.

On top of this, the 50% capital gains tax (CGT) discount effectively halved the amount of CGT paid by investors since 1999, as long as the asset being sold had been held for over a year. This encouraged investing for capital growth.

What’s changing?

Betashares said that three factors are pushing income back into focus.

Firstly, interest rates have raised the floor for income. 

Higher rates mean savings accounts and government bonds can now offer attractive yields, making income investments more competitive.

Secondly, tax changes have narrowed growth’s advantage. 

Changes to capital gains tax from 2027 will reduce some of the tax benefits of growth investing, narrowing the gap between growth and income strategies.

Finally, higher valuations raise the bar for future growth. 

ASX 200 valuations are well above pre-pandemic levels, meaning investors are paying more for each dollar of earnings and future growth may be harder to achieve.

In short, with income yields higher, growth’s tax advantage reduced, and valuations elevated, income investing is looking increasingly attractive relative to growth investing.

You don’t have to pick one or the other

It’s important for investors to understand this doesn’t mean you need to abandon growth equities and only focus on income. 

The more useful question is not whether to be a growth investor or an income investor, but whether you are being deliberate about where your returns come from. A portfolio that earns income through dividends, bonds or high-yield savings alongside capital growth is no longer a conservative retreat, but a considered response to a landscape that looks meaningfully different to the one we navigated for the past decade.

For investors looking to target high-yield companies, there are several ASX ETFs to consider. 

Income focussed funds include: 

• Betashares S&P Australian Shares High Yield ETF (ASX: HYLD)
• Betashares Australian Dividend Harvester Fund (ASX: HVST)
• BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX).

The post Why it could be time to shift from growth to income: Expert appeared first on The Motley Fool Australia.

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• How much passive income can I earn off a $630,000 superannuation balance

Motley Fool contributor Aaron Bell 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.