Analysts from Macquarie are soon to tour Nickel Industries Ltd (ASX: NIC)’s Indonesian operations, but have issued a positive research note on the company ahead of the visit.

Strong first half of the year

Nickel Industries last month reported a strong financial result for its first half, with revenue up 13.1% to US$938.4 million and net profit up 365.8% to US$52.5 million.

The company has hit a minor barrier since then, as the ramp-up of its Excelsior Nickel Cobalt HPAL project (ENC) has been interrupted by dry conditions in Central Sulawesi, Indonesia, which have constrained water supply to the operation.

But the company is expecting normal operations to resume with the onset of the wet season by December.

The company said re the ENC operations:

Prior to the onset of the dry conditions, ENC had ramped up to approximately 50% of nameplate capacity within four weeks of the commencement of commissioning. Should the water supply constraints persist, ENC is expected to operate at approximately 30% of nameplate capacity until water availability normalises.

Nickel Industries said its Hengjaya mine, conversely, had been performing well, with record monthly nickel sales of 1.6 million tonnes in August.

Managing Director Justin Werner said re the update:

ENC has performed exceptionally well since commissioning, reaching approximately 50% of nameplate capacity within four weeks, which is a genuine credit to our operating team. The dry conditions in Central Sulawesi are an unusual and temporary constraint on water supply, and we expect availability to normalise with the onset of the wet season. Combined July and August Adjusted EBITDA from operations of approximately US$90 million demonstrates the earnings capacity of the broader business.

Nickel Industries shares looking cheap

Macquarie said in its research note that a planned slurry pipeline “between Hengjaya Mine and ENC could reduce unit costs by replacing truck haulage of limonite ore, with these savings not reflected in our forecasts”.

They added:

Given elevated diesel prices, the magnitude and timing of cost savings could be a focus during the site visit. At the HPAL operations, rising sulphur prices are emerging as a cost headwind as low-cost inventory is depleted, although this is currently offset by strong cobalt revenues. Quantifying sensitivity to both could also be a key focus.

Macquarie said the company had established a “meaningful battery minerals portfolio”.

The broker said they expected dividend payments to resume, with dividend yields of 1.2% in CY26 and 4.1% in CY27 forecast.

Macquarie has a share price forecast of $1.25 on Nickel Industries compared to 79.25 cents currently.

The post This ASX nickel miner could jump 57%, Macquarie says 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.

It has been a rough month for Arafura Rare Earths Ltd (ASX: ARU) shareholders, but Friday is finally bringing some relief.

The Arafura Rare Earths share price is up 4.41% to 17.8 cents in morning trade after the rare earths developer released a new offtake update.

That comes after the stock fell to a 52-week low of 16.5 cents earlier this week.

Even with today’s rise, the shares are still down around 17% over the past month and 34% since the start of 2026.

So, let’s take a closer look at the details.

Arafura locks in more demand

According to the release, Arafura has extended an existing binding offtake agreement with a global wind turbine manufacturer.

The deal covers the supply of up to 500 tonnes per annum of neodymium-praseodymium (NdPr) oxide equivalent from the Nolans Project in the Northern Territory.

The initial contract runs for 5 years, with the potential to extend it to 8 years.

Pricing will be in US dollars and linked to independent global rare earth pricing indexes, including Benchmark Mineral Intelligence or S&P Global Platts North America.

Arafura hasn’t named the customer, saying it doesn’t plan to disclose counterparties unless their identity is considered material.

The company also said it remains in discussions with a number of other parties over additional offtake.

This means that at the maximum annual volume, this agreement would represent just over 11% of Nolans’ planned NdPr production.

Construction is getting closer

The latest offtake deal adds another piece to Arafura’s plans to move the Nolans Project from development into construction.

Nolans is designed to produce 4,440 tonnes of NdPr oxide each year over a planned 38-year mine life. Arafura says the project could eventually supply around 4% of global demand.

NdPr is used in permanent magnets in products such as electric vehicles and wind turbines.

The board made its final investment decision (FID) in May, with construction targeted to begin from September.

Management said project financing is in its final stages, with contractual close and strategic equity subscription settlement targeted for October.

Foolish takeaway

I like this update, particularly with Arafura locking in more demand ahead of construction at the Nolans Project.

The agreement covers a decent chunk of future production and gives the company another customer before the project is even built.

And with financing also nearing completion, I think Arafura shares are starting to look more attractive at these levels.

At 17.8 cents, I’d be keeping a close eye on Arafura shares as the company moves closer to getting Nolans off the ground.

The post Guess why this ASX stock is jumping 4% on Friday? 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.

Some ASX shares have been hit particularly hard over the past year.

Two on my radar are trading more than 50% below their 52-week highs despite the long-term opportunities remaining strong.

Here is why I would buy them.

Catapult Sports Ltd (ASX: CAT)

Catapult shares are down more than 60% from their 52-week high.

That is a huge fall, but I still like where the sports technology company is heading.

Catapult works with professional sporting teams around the world, providing technology for areas such as athlete monitoring, video analysis, scouting, and performance management.

What I like is how much more valuable the platform can become as clubs use more of those products together.

A professional team may initially use Catapult to track player workloads, but the relationship can expand into video, tactical analysis, recruitment, or strength and conditioning. That creates opportunities to earn more from existing customers while continuing to add new teams.

I also think professional sport has plenty of room to become more technology-driven.

Teams spend enormous amounts on players and coaching staff. Software that helps them prepare better, make stronger decisions, or reduce the chance of players missing games can therefore have real value.

Catapult still needs to keep converting its growth into stronger profits, and the share price could remain volatile. But after a decline of more than 60%, I think it now offers an attractive risk-reward profile.

Cochlear Ltd (ASX: COH)

Cochlear shares are around 54% below their 52-week high.

The company has faced a difficult period, but I do not think the need for its products has changed.

Cochlear develops implantable hearing solutions for people with severe hearing loss.

One of the reasons I remain positive is that many people who could potentially benefit from a cochlear implant never receive one.

Low referral and treatment rates leave Cochlear with a substantial opportunity to reach more patients over time.

The company is also continuing to improve its products. Its Nucleus Nexa platform gives recipients more personalised hearing technology, while longer-term developments such as drug-eluting electrodes and potentially totally implantable devices could make cochlear implants even more capable.

That does not mean the recovery will be immediate. Cochlear still needs to rebuild investor confidence and demonstrate that earnings can improve after a weaker period.

But with the shares trading at less than half their 52-week high, I think investors are being offered a much more reasonable entry point into a global healthcare leader.

Foolish takeaway

A falling share price is only interesting to me when I still believe in the business behind it.

That is the case with Catapult and Cochlear.

Both have disappointed investors recently, but I think their underlying markets still offer plenty of room for growth. At prices more than 50% below their recent highs, I would be comfortable buying both with a long-term view.

The post 2 ASX shares down over 50% that I would buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Catapult Sports and Cochlear. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.