ASX biotech stock PYC Therapeutics Ltd (ASX: PYC) has enjoyed a stellar run over the last 12 months. 

In that span, its share price has risen over 87%, including 37% in 2026. 

A new report from the team at Bell Potter suggests this growth is likely to continue thanks to several tailwinds. 

Company overview 

PYC is a clinical-stage biotechnology company developing multiple drug candidates for rare inherited diseases. 

The company has its HQ, lab facilities, and majority of staff based in Perth, WA, as well as personnel based in the US for clinical, regulatory, and manufacturing functions. 

The company develops novel drug candidates using its internal technology platform, consisting of targeted RNA therapies called antisense oligonucleotides and proprietary drug delivery technology referred to as cell penetrating peptides.

The team at Bell Potter believes its strong growth profile could lead to further growth in the next 12 months. 

Making progress

Bell Potter remains positive on this ASX stock. 

It has a speculative buy rating and increased price target of $3.00 (previously $2.30) on the company. 

Much of the optimism centres around its PYC-003 experimental drug candidate being developed to treat autosomal dominant polycystic kidney disease (ADPKD). 

The genetic condition that causes cysts to grow in the kidneys. 

Early safety results are encouraging, with only 10% of 50 single-dose subjects reporting treatment-related side effects, none serious, and no concerning kidney, liver, magnesium or potassium changes.

The big test now is whether PYC-003 actually works. 

Efficacy data from single-dose studies are expected in the next 1–2 months, while the more important 6-12 month repeat-dose results are expected in 2H 2027 and 1H 2028. 

With around 120,000 US Type 1 ADPKD patients, Bell Potter sees a potential US$12bn+ market, while PYC’s ~$670m cash balance provides strong funding. 

In short, the safety story looks good, but clinical efficacy will determine whether the big potential becomes reality.

Strong upside 

If this ASX stock was to reach Bell Potter’s target, it would be a further 30% increase from current levels. 

The next 12 months are likely pivotal for the biotech company. 

PYC is fast approaching a crucial window for this asset with upcoming efficacy data from single-dose studies in the next ~1-2 months and, more importantly, data from repeat-dose studies after 6-12 months of treatment expected in 2H CY27 and 1H CY28. It is these latter readouts which will be highly instructive for demonstrating whether PYC’s compelling preclinical data package translates into improved clinical outcomes in patients. The company has a war chest of ~$670m cash as at 30-June-2026 for which it can freely prosecute its clinical development objectives across multiple assets well into the 2030s.

The post This exciting ASX biotech stock is up 37% year to date and tipped to keep rising 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 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.

BHP Group Ltd (ASX: BHP) shares kicked off the new week the way they’ve kicked off quite a few recent sessions: in the red.

The ASX mining stock slipped another 0.5% on Monday to $60.59, extending a pullback that’s now stripped more than 13% off the all-time high of $68.77 set back on 26 August.

13% down in a few weeks is the kind of move that gets value hunters circling. But before anyone gets too excited about a ‘discount’, it’s worth asking whether BHP was ever actually cheap to begin with — and whether this dip is an opportunity or just gravity reasserting itself.

Keep the run in perspective

Even after the recent slide, BHP is still up roughly 33% so far in 2026, and a blistering 49% over the past 12 months. A 13% pullback off the top looks dramatic in isolation, but stack it against those gains, and it starts to look less like a crash and more like a breather after a sprint.

And the business hasn’t been standing still. FY26 revenue climbed 15% to US$58.8 billion, while underlying EBITDA jumped 27% to US$32.9 billion. Net debt shrank to a lean US$8.7 billion. The full-year dividend rose to 172 US cents per share.

This isn’t a company limping into a correction. It’s one that’s arguably earned its re-rating.

The copper story is the real headline

Buried in those numbers is arguably the most important structural shift at BHP in years. Copper, not iron ore, is now the earnings engine. Copper delivered US$18.2 billion of underlying EBITDA – up 48% – and made up 54% of group earnings. That’s the first time copper out-earned iron ore across a full year.

Production held around 2 million tonnes for a second straight year, and management is chasing roughly 40% growth by FY35 via projects spanning Australia, Chile and Argentina.

If the world’s electrification and grid-buildout thesis plays out anywhere near as expected, that positioning matters.

So, is BHP actually cheap?

Not really, and that’s the uncomfortable part. BHP shares have essentially run up to meet the market’s own expectations. TradingView consensus puts the average 12-month price target at $61.02 across 21 analysts.

That’s basically where BHP shares sit today. Ratings are split: five strong buys, 13 holds and three sell/strong sells.

There’s also a wide range of views. Morgan Stanley has a $68 target, while Freedom Capital Markets is at $66. Jefferies and Bank of America are both sitting at $65.

At the other end, Bernstein has a $44 target.

Foolish takeaway

This isn’t a screaming bargain sitting there for the taking. Valuations are full, and brokers are largely clustered around the current price. But a fortress balance sheet, growing copper exposure, and a dividend that keeps climbing are hard to ignore.

History suggests that owning world-class assets at a fair price beats trying to nail the final 10% of a rally — or the first 10% of a dip.

For patient, long-term holders, BHP shares still look more like a stock to hold through the noise than one to bail on because of a bad fortnight.

The post BHP shares keep falling. Is now the time to buy? appeared first on The Motley Fool Australia.

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

There have been some concerns aired in recent weeks about the resilience of the lithium market, Macquarie says, while identifying that there are still Australian producers that look attractive at current prices.

What has concerned lithium market watchers?

The broking house said there were two news events which rattled the markets – a survey released by a Chinese consultancy, and media reports of tighter controls on new battery capacity approvals.

Macquarie said they did not see the latter as a great surprise.

In August, we flagged a softer market conditions in 1HCY27 as surplus concerns re emerge, potentially exacerbated by an accumulation of energy storage system (ESS) inventories across the value chain over the next six months. Our recent channel checks suggest tier-one ESS battery manufacturers are operating near full utilisation, while many tier-two and tier-three players remain below 50% utilisation. In our view, regulatory intervention is aimed at curbing further expansion of lower-quality, inefficient capacity rather than restricting end-market ESS deployments.

Macquarie said they suspected some of the market concern “reflects a misunderstanding of the policy intent, with capacity controls potentially lost in translation as ESS demand-side restrictions”.

Which ASX lithium companies are preferred?

Macquarie said among Australian producers, Liontown Ltd (ASX: LTR) and Elevra Lithium Ltd (ASX: ELV) had the greatest sensitivity to lithium price upside, “given their operating leverage”.

They also said IGO Ltd (ASX: IGO) stands out for its attractive free cash flow generation across a range of lithium price scenarios.

Macquarie said re IGO:

Our base case forecasts FCF yields of 15% and 10% in FY27 and FY28, respectively. Even at a spodumene price of US$1,500/t, we estimate the company could still generate FCF yields of 7-9% across the same period. We note investor focus remains on cash distributions from TLEA, which have yet to materialise. In our view, a clearly defined cash sweep or distribution mechanism at TLEA could represent a re-rating catalyst for IGO.

Macquarie has a price target of $9.50 on IGO shares compared to $7.35 at the time of writing.

For Liontown, it has a price target of $1.50 compared to $1.07, and for Elevra, $12.50 compared to $6.97.

For PLS Group Ltd (ASX: PLS), it has a share price target of $6 compared to $4.42.

On the pricing for spodumene broadly, Macquarie said, “value continues to accrue upstream, reflecting persistent tightness in the spodumene concentrate market”.

They added:

While inventory levels may gradually rebuild as Zimbabwean supply returns, current market conditions remain supportive of concentrate pricing.

The post Which ASX lithium miners does Macquarie prefer? 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.