The S&P/ASX 200 Index (ASX: XJO) blue-chip stock James Hardie Industries plc (ASX: JHX) could be one of the leading larger opportunities right now, according to one of the leading fund managers.

Experts at Wilson Asset Management manage the listed investment company (LIC) WAM Leaders Ltd (ASX: WLE), which aims to actively invest in larger ASX-listed businesses.

In other words, the investment team is willing to make investments and sales based on whether they think valuations are attractive.

WAM Leaders named James Hardie as one of its most compelling holdings right now.

What’s so appealing about the ASX 200 blue-chip stock?

The company describes itself as an industry leader in exterior home and outdoor living solutions, with a portfolio that includes fibre cement, fibre gypsum, and composite and PVC decking and railing products.

It’s a global business, with a presence in North America, Europe, Australia and New Zealand.

However, the company recently announced plans to sell its European operations, including the sale of Fermacell to Holcim for €840 million (or US$980 million).

The ASX 200 blue-chip share explained that proceeds will be used to “accelerate deleveraging and return capital to shareholders.”

James Hardie also said it intends to close its European fibre cement business, subject to customary legal, regulatory and employee (including competent works council) consultation requirements.

WAM noted that James Hardie Industries delivered a solid first quarter FY27 result.

The investment team said that the ASX 200 blue-chip share’s core North American fibre cement business returned to volume growth supported by continued market share gains. This contributed to an upgrade of the company’s full-year guidance.

The company guided that FY27 total net sales could be $5.564 billion to $5.723 billion, adjusted operating profit (EBITDA) is expected to be between $1.536 billion and $1.625 billion and free cash flow is expected to be at least $500 million.

What do the experts like about James Hardie shares?

WAM also said that the announcement of the divestment of the European operations during August allows the company to “sharpen its focus on its core growth markets while further deleveraging its balance sheet.”

The fund manager said that James Hardie Industries remains a core holding in the WAM Leaders investment portfolio, with the ASX 200 blue-chip share continuing to deliver above market growth through strong execution of cost and commercial synergies and ongoing market share gains, despite a subdued US housing market.

James Hardie shares could be one to watch, along with other potential opportunities.

The post Experts reckon this high-flying ASX 200 blue-chip stock is a buy appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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.

Once a week, I like to look at ASIC’s short position report to find out which ASX shares are being targeted by short sellers.

That’s because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, listed below are the 10 most shorted shares on the ASX this week according to ASIC.

The top 10 most shorted ASX shares

DroneShield Ltd (ASX: DRO) remains at the top of the table with short interest of 15.4%, which is up week on week. The counter-drone technology company continues to attract plenty of attention from short sellers, possibly due to its valuation and the ongoing ASIC investigation.

Lotus Resources Ltd (ASX: LOT) has seen its short interest jump to 15%. Short sellers may still have concerns over the uranium developer’s funding requirements and the execution needed to deliver its growth plans.

4DMedical Ltd (ASX: 4DX) has short interest of 12.3%, which is down slightly week on week. The medical imaging technology company remains heavily shorted as investors weigh its significant growth potential against a very high valuation.

Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 12%. Short sellers may be unconvinced that the pizza chain operator’s restructuring and store closures will be enough to restore strong earnings growth.

Treasury Wine Estates Ltd (ASX: TWE) has short interest of 11.8%, which is down slightly week on week. Weakness in parts of the global wine market and uncertainty around the company’s recovery continue to give short sellers something to focus on.

PLS Group Ltd (ASX: PLS) has 11.1% of its shares held short, which is broadly unchanged since last week. Short sellers may be expecting lithium prices to be under pressure, which would weigh on margins.

Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 11.1%. The buy now pay later company’s strong share price recovery may have encouraged some investors to bet that expectations are becoming too optimistic.

Elders Ltd (ASX: ELD) has returned to the top ten with short interest of 10.9%. Short sellers may have concerns over rural spending conditions and the outlook for earnings growth across the agribusiness.

Paladin Energy Ltd (ASX: PDN) has seen its short interest fall to 10.7%. Despite this, short sellers may still believe expectations for uranium prices and future production are running ahead of reality.

Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease again to 10.6%. Short sellers may remain cautious on the travel agent due to margin pressure, consumer spending conditions, and disruption to international travel.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, DroneShield, and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Elders, and Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares have staged a remarkable comeback, surging 35% in the past month and gaining 94% from their 52-week low in June.

But zoom out, and the picture looks less spectacular. CSL shares remain about 16% lower over the past 12 months.

So, after such a powerful rebound, where do experts think the biotech giant could go from here?

What do brokers think?

Not every broker believes the recovery is firmly established. Of 19 analysts tracked on TradingView, 10 rate CSL shares a hold, while nine have a buy or strong-buy rating.

More importantly, the average 12-month price target is $171.94, below the share price of $174.50 at the time of writing.

However, forecasts vary dramatically. The most bullish target sits at $206.86, implying another 19% upside, while the lowest is just $131.56, pointing to roughly 25% downside.

Macquarie is among the most bearish, with a neutral rating and target of just over $133. UBS is considerably more optimistic at $181, while Morgan Stanley has a $172 target.

Bell Potter has retained its hold rating on the ASX biotech stock but recently increased its target from $120 to $150.

Why have CSL shares soared?

The catalyst was CSL’s FY26 result. On the surface, it looked ugly, with the $80 billion biotech company reporting a US$2.6 billion net loss after tax.

But investors quickly looked beyond the headline number.

The loss included US$7.1 billion of pre-tax impairments and US$799 million of restructuring costs, much of which was non-cash. Most impairments related to CSL Vifor intangibles and under-utilised property, plant and equipment.

Investors had already received a warning in May, when CSL flagged around US$5 billion of impairments and cut its FY26 guidance.

Excluding exceptional items, underlying NPATA was US$3.1 billion, down just 2%. Revenue fell 1% to US$15.8 billion but still beat analyst expectations.

For investors, the result therefore represented something potentially more valuable than headline profit: a reset year, cleaner balance sheet and better-than-feared outlook.

CSL Behring remains the standout. Its plasma division generated US$11.4 billion of revenue, while immunoglobulin revenue held steady at US$6.2 billion. CSL Vifor grew revenue 3% to US$2.4 billion, although Seqirus remained under pressure, with revenue falling 8% to US$2 billion.

Could FY27 send the biotech stock higher?

The bull case centres on FY27. CSL expects underlying NPAT to grow approximately 5%, ahead of consensus expectations of around 2%.

Behring is forecast to deliver mid-single-digit growth, with immunoglobulins expected to grow at a mid-to-high single-digit rate.

The major challenge remains Vifor, where revenue is expected to plunge about 25% as iron generics enter the market.

For CSL shares, the recovery story is clearly gaining momentum. The question now is whether improving fundamentals can justify the renewed optimism already priced into the stock.

The post CSL shares are up 94% from their low. What are brokers forecasting next? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.