One small-cap ASX stock is giving shareholders something to smile about on Monday.

Titomic Ltd (ASX: TTT) shares are up 10.87% to 12.8 cents after the company announced a new defence contract before the market opened.

That puts Titomic’s market value at around $228 million.

It comes after a difficult stretch for shareholders, with the stock still down around 47% in 2026 and 50% over the past 12 months.

So, what was in this morning’s release?

A US$5 million contract

Titomic revealed that its US subsidiary has been awarded a US$5 million contract by the US Air Force.

The company will supply, integrate and commission one of its TKF 1000 cold spray systems at Tinker Air Force Base in Oklahoma.

The system can be used for things such as component repair, restoring worn parts, corrosion protection and additive manufacturing.

Titomic said the contract places its technology inside one of the largest US Air Force maintenance and repair facilities in the country.

Delivery is scheduled for the third quarter of 2027, with revenue to be recognised as the company completes different stages of the contract.

More orders are starting to come through

It’s not like this deal hasn’t arrived completely out of the blue.

Titomic has been spending the past few years trying to turn trials and qualification work into commercial orders.

Just recently, it announced a number of US orders worth more than $750,000 across the aerospace, defence, space, energy and oil and gas industries.

The company has also expanded its Huntsville facility as it builds manufacturing capacity in the United States.

However, there’s still plenty of work ahead.

Titomic is still a loss-making company, and earlier this month it raised $16.5 million through a share placement at 13 cents apiece.

Interestingly, even after today’s rally, the shares are still trading just below that placement price.

How high could the shares go?

There is certainly a big gap between the current share price and some broker targets.

TipRanks shows two recent analyst ratings.

Bell Potter has a buy rating and 46 cent price target, while Ord Minnett has a hold rating and 18 cent target.

That gives an average target of 32 cents, or about 150% above where the stock stands today.

On the other hand, Morningstar is far more conservative, with a fair value estimate of 14.8 cents.

This just shows how divided analysts remain on the stock.

Nonetheless, if Titomic can keep winning big defence contracts, those higher targets could become a little more realistic.

The post Guess which ASX stock is rocketing 10% today? 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.

The National Australia Bank Ltd (ASX: NAB) share price is trading around $38.48 on Monday.

For investors looking at the major banks, NAB offers a combination of earnings, dividends, and exposure to Australian business banking.

At this price, I think the shares deserve a closer look.

Why I like NAB

One of the main reasons I am positive on NAB is its strong position in business banking.

The bank has deep relationships with Australian small and medium-sized businesses, giving it exposure to lending, deposits, payments, and other financial services.

I like that because it gives NAB another avenue for growth alongside its large consumer banking operations.

Australian banking is still highly competitive, particularly in mortgages, and I would not expect earnings to race higher every year.

But NAB has a sizeable customer base, strong market positions, and a business banking franchise that I think can continue supporting earnings over the long term.

What does the valuation look like?

The next question is whether investors are paying a sensible price.

According to CommSec, consensus estimates are for earnings per share of $2.38 in FY26, increasing to $2.54 in FY27.

At $38.48, that puts NAB on a PE ratio of approximately 16 times forecast FY26 earnings and around 15 times FY27 earnings.

I would not describe that as bargain territory. But I also do not think the valuation is excessive for a major Australian bank with a strong franchise and the prospect of modest earnings growth.

If NAB delivers something close to current expectations, I think today’s price leaves room for reasonable capital growth over time.

The dividend remains a big attraction

For many investors, NAB is just as much an income stock as it is a capital growth investment.

That is an important part of the case for me.

CommSec’s consensus forecasts point to fully franked dividends of $1.70 per share in FY26 and $1.72 in FY27.

At the current share price, those payments would represent dividend yields of approximately 4.4% and 4.5%, respectively, before taking any potential benefit from franking credits into account.

I think that is a solid level of income from a business I would also be comfortable owning for the long term.

What would make me cautious?

NAB still faces the same pressures as the rest of the banking sector.

Competition for customers can put pressure on margins, while weaker economic conditions could increase bad debts and slow credit growth.

The shares also would not look nearly as interesting if earnings failed to grow as expected.

Those are risks I would keep in mind, particularly after the strong performance Australian bank shares have delivered over recent years.

Foolish takeaway

At $38.48, I think the NAB share price is a buy.

The valuation looks reasonable rather than cheap, but I like the bank’s business banking position and the prospect of earnings moving higher in FY27.

Add a fully franked prospective dividend yield of around 4.4% to 4.5%, and I think investors are being offered a good balance of income and potential capital growth at today’s price.

The post Is the NAB share price a buy at $38.48? 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 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 Ramelius Resources Ltd (ASX: RMS) have been all but flat over the past year, despite large fluctuations over that period.

But the brokerage house Morgans is predicting decent share price upside for the mid-tier gold producer, with a bullish target, which I’ll get to shortly.

First, let’s see what they’re saying about the company.

New guidance imminent from this ASX gold company

Morgans said Ramelius is expected to release guidance for FY27 and an updated outlook out to FY30 later this month.

The broker said:

On production, we expect FY27 guidance to remain in line with the previous 200-220koz range, likely trending to the upper-end. Beyond FY27, we see scope for upside to the 2025 outlook through FY30. Increased mining rates at Break of Day following the Stage 2 cutback, along with mine life extensions at Penny, should drive higher head grades through FY27 and FY28. Gilbey’s, not previously included in the outlook numbers, has the potential to be a key driver of production growth from FY29, displacing lower-grade mill feed.

Morgans said Ramelius had flagged that costs could head higher, “driven by ongoing inflationary pressures across labour, mining services and diesel”.

The broker added:

Management indicated cost inflation of up to 8% across key operating inputs, while a partially hedged diesel position provides some protection. In addition, an extra ~A$30m of sustaining capital at Galaxy aimed to lift mining rates from 600ktpa to 800ktpa is expected to increase costs in FY27.

Morgans said that, regarding dividend payments, it believed Ramelius was well-positioned to continue generating strong cash flows and returning capital to shareholders.

Ramelius Resources shares looking cheap

The broker maintained its buy rating on Ramelius shares, but reduced its price target from $5.80 to $4.74.

This compares to the current price of $3.75.

The broker added:

RMS remains our preferred mid-cap gold exposure, supported by a strong balance sheet, low cost operations and a clear pathway to production growth through the Mt Magnet hub and Rebecca Roe. The divestment of Edna May reinforces our view of management’s disciplined capital allocation, crystallising value from a non-core asset while focusing attention to higher-return growth opportunities. We continue to view RMS as one of the highest-quality operators in the Australian gold sector.

Ramelius announced on Monday it had awarded the $313 million Mount Magnet Expansion contract to NRW Holdings Ltd (ASX: NWH).

The scope of work includes the construction of a new crushing circuit and coarse ore stockpile, installation of a new grinding circuit, additional leach tanks, and associated gold processing infrastructure, resulting in an additional 3 million tonnes per annum of processing capacity.

Ramelius is valued at $7.06 billion.

The post Which ASX gold company is Morgans’ preferred mid cap buy? 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.