It has already been one of the wildest ASX defence stock moves of the past year, and Electro Optic Systems Holdings Ltd (ASX: EOS) is climbing again today.

At the time of writing, the EOS share price is up 8.15% to $9.16.

That means the stock is still down around 3% in 2026, but remains up more than 620% over the past 12 months.

Today’s buying comes after the company gave investors a fresh update on its MARSS acquisition, new Middle East orders, and a much larger combined order book.

MARSS deal moves closer

In its ASX release, EOS said it has agreed revised terms for its acquisition of the assets of the MARSS group business.

MARSS is a counter-drone systems business. Its NiDAR command and control systems are used to detect, track and defeat drone attacks.

The company said the upfront payment of US$36 million is being made today. It also expects the acquisition to complete in coming days.

There is still no guarantee on timing, but the update suggests the deal is moving closer after earlier transaction uncertainty.

EOS also said it will draw down $70 million from a secured term loan facility to help fund the deal. Of that amount, $50 million will go towards the upfront payment, with the balance expected to support transaction costs and general funding needs.

New orders land in the Middle East

The likely part that is getting investors most interested today is the jump in MARSS’ contract pipeline.

EOS said MARSS has secured new May 2026 orders totalling 102 million euros, or about $165 million. Those orders came from an existing customer in the Middle East.

MARSS has also entered an 85 million euro contract with another Middle Eastern military customer.

The contract involves installations for a country-wide drone detection and mitigation system, with NiDAR C2 software at its core.

Most revenue is expected to be earned during 2026 and 2027, with about 70% of cash expected across that period.

Order book gets bigger

The update also gives investors a clearer view of the combined order book.

EOS said MARSS’ order book now stands at 135 million euros, or about $217 million. If the deal completes, this would lift the company’s total order book to a massive $726 million.

The existing order book has also grown from $459 million at the end of December to $509 million on 15 May.

Foolish takeaway

While the MARSS deal is not finished yet, it appears to be moving in the right direction.

If EOS signs off on the deal, the share price could push into new all-time highs. The market would be looking at a bigger business, more defence orders, and stronger exposure to drone defence spending.

The post EOS shares rocket as $726 million order book turns heads appeared first on The Motley Fool Australia.

More reading

• 3 superannuation decisions you’ll regret in retirement
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• Down 13% in a week, are EOS shares now too cheap to ignore?
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• Up 670%: Is it too late to buy this ASX defence stock?

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 positions in and has recommended Electro Optic Systems. 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.

Commonwealth Bank of Australia (ASX: CBA) and CSL Ltd (ASX: CSL) are two of the highest-quality businesses on the ASX.

They are also both trading well below their recent highs.

CBA shares are down around 18% from their 52-week high, while CSL shares have fallen to multi-year lows after a very difficult period for the biotechnology giant.

I rate both as buys. But if I could only choose one today, I would lean toward CSL.

The case for CBA shares

CBA is still the highest-quality major bank in Australia, in my view.

It has a powerful deposit franchise, a huge customer base, strong digital capability, and a brand that gives it an advantage across home loans, transaction banking, business banking, and wealth-adjacent services.

The bank has consistently shown over many years that it can generate strong profits, support large dividends, and trade at a premium valuation relative to its peers. Investors trust the business for good reason.

In my opinion, the recent share price fall has simply made the buying case more appealing.

CBA had been priced very strongly, and the market may have been looking for an excuse to take some heat out of the valuation. After an 18% fall from its high, the risk-reward looks better than it did a few months ago.

For investors wanting quality, income, and exposure to Australia’s largest bank, CBA remains a share I would be happy to own.

Why CSL shares get my vote

CSL is a very different situation.

Sentiment toward the biotechnology giant is incredibly weak. The shares are at multi-year lows, the outlook has become more uncertain, and investors are questioning the quality of a business that was once viewed as one of the safest growth names on the ASX.

That is not comfortable. But I think the market may now be treating CSL as if its problems are structural and permanent. I do not see it that way.

CSL still owns world-class healthcare assets across plasma therapies, vaccines, and specialty medicines. It has a global scale, deep scientific capability, long-standing customer relationships, and exposure to markets where demand should keep growing over time.

The company clearly needs to rebuild trust. Guidance downgrades and execution issues are not easy to ignore. Management must prove that the business can return to more reliable growth, improve productivity, and restore confidence.

But if the current issues are largely short term, today’s share price could end up looking too pessimistic.

That is why I would choose CSL shares over CBA for the next five years.

Foolish Takeaway

CBA may be a better business right now in terms of confidence and execution. But I think CSL may offer a better opportunity.

CBA still trades with a quality premium, even after its sell-off. That premium is understandable, but it may limit upside if earnings growth is steady rather than spectacular.

CSL is in a much more difficult place, but the share price already reflects a lot of disappointment.

If CSL stabilises, restores earnings momentum, and shows that its core healthcare franchises remain strong, I think the upside could be meaningful.

In other words, CBA looks like the safer buy. CSL looks like the more compelling recovery buy.

The post CSL shares vs CBA shares: Which is the better buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in CSL and Commonwealth Bank Of Australia. 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.

If you are hunting for some new portfolio additions, then it could pay to hear what Morgans is saying about the three ASX shares in this article.

Does the broker rate them as buys, holds, or sells? Let’s dig deeper into things:

Aristocrat Leisure Ltd (ASX: ALL)

Morgans was impressed with this gaming technology company’s performance in the first half of FY 2026. It notes that Aristocrat outperformed expectations thanks largely to its gaming business.

In response, the broker has retained its buy rating on Aristocrat shares with an improved price target of $67.00. It said:

Aristocrat Leisure (ALL) 1H26 result beat our forecasts and came broadly in line with consensus, despite management’s prior flagging of a softer than usual 1H skew. Gaming was the clear standout – strong outright sales on continued Baron cabinet demand and solid leased adds in a thin content period. Product Madness and Interactive came in below our forecasts, though the latter is complicated by a D&D reclassification and acquisition drag that flatters the headline miss.

Greater clarity on the FY26-29F earnings shape is expected at the July investor day. Capital management remains a key pillar – a $1bn buyback extension marks $5.1bn returned over five years, underpinned by a fortress balance sheet at 0.3x net debt/EBITDA. We now assume a normalised 1H/2H skew and incorporate ~$100m in annualised savings in FY27, lifting EPSA 3% and 4% for FY26-27F respectively.

Breville Group Ltd (ASX: BRG)

Another ASX share that Morgans is positive on is appliance manufacturer Breville.

Following the release of positive updates from peers, the broker has retained its buy rating on Breville’s shares with a $36.75 price target. It commented:

1Q26 updates from key offshore peers have shown broadly positive read-throughs for BRG, despite an ongoing challenging consumer and macro backdrop. We consider small domestic appliance peers with a premiumisation focus (DLG / KitchenAid), innovation-led NPD (SN), high Coffee exposure (DLG) and ongoing geographic expansion (all) as holding strong relevance for BRG.

Sales momentum across these select peers in 1Q26 (DLG +6.6%; Ninja brand +9.1%; KitchenAid +10%) appears broadly positive and supportive of our view for ongoing outperformance from BRG. BUY maintained.

Healius Ltd (ASX: HLS)

Finally, Morgans was disappointed with this healthcare company’s update and sizeable downgrade to earnings.

And given the increased uncertainty over the outlook of its pathology business, the broker has retained its hold rating with a reduced price target of 41 cents. It said:

HLS has materially downgraded FY26 earnings, which we find disappointing given reiterated consensus-aligned guidance at the 1H26 result only three months ago. While Pathology cost control continues to improve and labour optimisation initiatives are gaining traction, weaker volumes, ongoing GP softness and mounting regulatory/funding pressures are offsetting operational progress. Agilex continues to perform relatively well, and HLS has commenced a strategic review following unsolicited interest in the asset.

However, the extent to which value can be crystallised above the original high acquisition multiple remains uncertain given the business’ modest scale and inconsistent earnings trajectory. While a potential Agilex sale could provide balance sheet upside, the downgrade reinforces that sustainable margin recovery within core Pathology remains elusive. We adjust FY26-28 estimates, with our target price decreasing to A$0.41. HOLD.

The post Buy, hold, sell: Aristocrat, Breville, and Healius shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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.

A falling share price does not automatically create a bargain. Sometimes it is the market correctly reassessing a business. But other times, a heavy sell-off can leave a good company priced for a far worse future than it is likely to deliver.

That is what I think may be happening with the three ASX shares in this article.

All have fallen more than 60% from their highs. For investors with patience, I think they could be bargain buys.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster has been one of the hardest-hit ASX growth shares.

That is not too surprising. Online retail stocks can be punished heavily when consumer spending weakens, interest rates rise, and investors become less willing to pay up for growth.

But I think the long-term story still has a lot of appeal.

Temple & Webster is trying to win in a large category that is still moving online. Furniture and homewares have historically been showroom-heavy, but I think more customers are becoming comfortable researching, comparing, and buying these products digitally.

That gives Temple & Webster a structural tailwind if it keeps improving its range, delivery experience, pricing, and brand awareness.

The business also has a useful advantage in not needing the same store network as traditional retailers. That can give it more flexibility as it scales.

There are risks. Furniture demand is tied to housing turnover, renovations, and household confidence. The Federal Budget has also added more uncertainty around the housing outlook.

But after such a large share price fall, I think Temple & Webster could be worth another look. If the online shift continues and consumer conditions eventually improve, the rebound potential could be meaningful.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global has also fallen heavily from its highs.

The logistics software company has faced investor concerns around valuation, management issues, acquisitions, AI disruption, and growth in its core business.

I think those concerns explain the sell-off. But I do not think they erase the long-term opportunity.

WiseTech is tied to one of the most complex parts of the global economy: moving goods across borders. Freight forwarders, customs brokers, and logistics providers handle paperwork, compliance, tariffs, routing, warehousing, and transport networks.

That complexity creates demand for specialist software.

CargoWise is already used by many logistics companies to help manage these workflows. If WiseTech can keep expanding the role its software plays across global trade, the company could become much larger over time.

Cochlear Ltd (ASX: COH)

Cochlear is a very different type of fallen share.

This is not a speculative growth company. It is a global leader in hearing implants, with a long history of innovation and a strong position in a specialised healthcare market.

What I like is that hearing loss is not a short-term theme. It is a long-term healthcare need linked to ageing populations, diagnosis rates, technology adoption, and access to treatment.

Cochlear has spent decades building trust with surgeons, audiologists, patients, and healthcare systems. That is difficult to replicate.

The company’s growth may not always be smooth. Healthcare funding, competition, product cycles, and currency movements can all affect performance.

But I think the market may be too focused on near-term disappointment and not enough on the durability of the franchise.

If Cochlear can continue improving its products, expanding access, and supporting lifelong patient care, I think the business can keep compounding over time.

Foolish Takeaway

Share price falls of more than 60% are not small setbacks. They usually mean confidence has been badly damaged.

But that is exactly why I think these opportunities are worth studying. Temple & Webster, WiseTech, and Cochlear do not need every investor to agree today. They just need their businesses to keep improving over the next few years while expectations remain low.

That is where patient investors can sometimes find the best bargains.

The post 3 ASX shares down over 60% that could be bargain buys appeared first on The Motley Fool Australia.

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• ASX tech shares vs. ATEC ETF: How they fared during sector downturn
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• Are these 2 battered ASX healthcare shares too cheap to ignore?
• These ASX retail stocks are near 52-week lows, are they bargain buys?

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 Cochlear, Temple & Webster Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Cochlear and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Alkane Resources Ltd (ASX: ALK) shares are falling on Friday morning.

At the time of writing, the ASX 200 stock is down 1% to $1.54.

Why is this ASX 200 stock falling?

Investors have been selling the gold miner’s shares after a pullback in the gold price overshadowed the release of third quarter results revealing the strongest quarterly performance in its history.

According to the release, Alkane delivered record revenue of $274.4 million for the three months ended 31 March 2026. This compares to revenue of $63.2 million in the prior corresponding period.

The increase was driven by higher gold equivalent sales, the addition of the Costerfield and Björkdal operations following its merger with Mandalay Resources, and stronger realised gold prices.

Alkane sold 43,373 gold equivalent ounces during the quarter at an average realised gold price of $6,315 per ounce and an average realised antimony price of $34,394 per tonne.

Record production

Production was also strong. Alkane produced 44,669 ounces of gold and 377 tonnes of antimony during the quarter. On a gold equivalent basis, production reached 45,776 ounces, supported by contributions from Tomingley, Costerfield, and Björkdal.

The ASX 200 stock’s EBITDA came in at a record $161.2 million, compared to $20.8 million a year earlier.

Most notably, net profit increased to a record $93 million. This compares with a profit of $8.1 million in the prior corresponding period.

Free cash flow was also very strong at $127.6 million, up from $7.7 million in the third quarter of FY 2025.

Management commentary

The ASX 200 stock’s managing director, Nic Earner, was pleased with the quarter. He said:

Alkane has just delivered the strongest quarter in its history. During a period of high gold and antimony prices, the power of our three mine portfolio delivered exceptional operating results as they produced a record 44,669 ounces of gold and 377 tonnes of antimony, which generated record profit after taxes of $93 million.

The Company ended the quarter in with cash and bullion of $362 million which will provide the support for Alkane’s growth plans. Given the strong performance to date, we move into the second half of the year with momentum and are on track to meet our production and cost guidance for 2026.

Outlook

Alkane confirmed that it remains on track to meet its FY 2026 guidance.

This is gold equivalent production of 155,000 to 168,000 ounces with all-in sustaining costs of $2,600 to $2,900 per ounce.

The post Guess which ASX 200 stock is dropping despite record quarterly profit appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro 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 Vicinity Centres (ASX: VCX) share price is in focus after the retail property giant announced a $400 million acquisition of Eastern Creek Quarter, set to boost its exposure to metropolitan Sydney and expand its Outlet centre network.

What did Vicinity Centres report?

• Signed contract to acquire Eastern Creek Quarter (ECQ) in Western Sydney for $400 million
• Settlement expected by 30 June 2026, pending landlord consent
• Acquisition funded by existing debt facilities; gearing to rise by around 200 basis points
• ECQ includes a new 20,000 sqm Outlet centre, 10,000 sqm retail centre, and 11,000 sqm large-format retail offering

What else do investors need to know?

ECQ is strategically located in a major growth corridor in Western Sydney, providing Vicinity with more frequent everyday shoppers as well as destination shopping flows. The asset’s mix of retail space covers both convenience and outlet segments.

This acquisition builds on Vicinity’s ongoing strategy to focus on “fortress-style” assets, aiming for strong, sustainable income and lifting its presence in Australia’s biggest city. With a solid track record of driving growth through well-managed centres, Vicinity plans to use its property management expertise to enhance ECQ’s long-term value.

What did Vicinity Centres management say?

Vicinity’s CEO and Managing Director Peter Huddle said:

For some time now, Vicinity has been a selective, timely and disciplined acquirer of strategically aligned retail assets. As a hybrid retail asset that is strategically located and boasts a new Outlet centre with future development opportunity, acquiring ECQ makes sense for Vicinity.

Furthermore, by intentionally maintaining a conservative but flexible capital structure, we have been able to once again, capitalise on an attractive acquisition opportunity, that will enhance earnings resilience and strengthen our future income and value growth profile.

What’s next for Vicinity Centres?

Looking ahead, Vicinity intends to leverage its proven leasing, management and development capabilities to unlock further value at ECQ. Strengthening its Sydney footprint and Outlet offering supports Vicinity’s aspiration to deliver reliable and growing returns for shareholders.

The company remains committed to fortress-style assets in high-performing trade areas and will continue to pursue opportunities that align with its investment strategy.

Vicinity Centres share price snapshot

Over the past 12 months, Vicinity Centres shares have risen 9%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post Vicinity Centres: $400m Sydney acquisition expands Outlet network appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

S&P/ASX 300 Index (ASX: XKO) gold stock Dateline Resources Ltd (ASX: DTR) is rocketing today.

Dateline Resources shares closed yesterday trading for 20 cents. In early morning trade on Friday, shares are changing hands for 21.5 cents apiece, up 7.5%.

For some context, the ASX 300 is up 0.1% at this same time.

Taking a step back, Dateline Resources shares have rocketed a jaw-dropping 571.8% over 12 months, smashing the 4.5% one-year gains delivered by the benchmark index.

Here’s what’s catching investor interest today.

ASX 300 gold stock leaps on high-grade intercepts

Dateline Resources shares are jumping higher following the release of a promising exploratory drilling update at the miner’s Colosseum Gold and Rare Earth Element (REE) Project, located in the US state of California.

The ASX 300 gold stock said that it had struck two new broad gold intersections from drill testing, extending the known mineralised zone.

Dateline reported top results from one hole of 287.3 metres at 1.05 grams of gold per tonne from 0 metres, including 17.7 metres at 6.13g/t Au from 19.2 metres.

The second hole returned 1.06g/t Au from 0 metres, including 87.9 metres at 1.59g/t Au from 12.2 metres.

Management said that mineralisation remains open and the targets will be tested further over the coming months.

On the rare earths front, the ASX 300 gold stock currently has two drill rigs that are targeting rare earth mineralisation at Colosseum with an 18-hole drill campaign. Dateline is currently commissioning a third company-owned rig so it can test the gold extensions in parallel.

The miner has completed almost 3,000 metres of rare earths focused diamond drilling to date. Some of the exploratory holes have drilled up to 745 metres below the surface.

The rare earths samples from that drilling campaign are currently at an assay lab for analysis.

What did Dateline Resource management say?

Commenting on the results helping boost the ASX 300 gold stock today, Dateline Resource’s managing director Stephen Baghdadi said, “Gold mineralisation at the Colosseum North Pit continues to extend to the northeast and these latest drill intersections again highlight the robust nature of the deposit.”

Baghdadi added:

These broad gold intersections highlight the potential for the definition of an underground deposit at Colosseum that could be exploited following the completion of open pit mining.

Based on the positive indications so far, the rare earth drilling program has now been expanded to 18 holes. The high-density rocks are an encouraging indicator that we are on the right track.

The post Up 572% in a year, why is this ASX 300 gold stock rocketing again on Friday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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.

A $2,000 investment may not sound like a life-changing amount of money.

But I think it can still be a very useful starting point if it is put into high-quality ASX shares and left to compound.

For me, the best approach would be to focus on businesses with strong positions in attractive markets. I would want companies that can keep getting larger over time.

Three blue-chip ASX shares I would happily buy with $2,000 are named in this article.

Sigma Healthcare Ltd (ASX: SIG)

Sigma Healthcare has become a much more interesting company since merging with Chemist Warehouse.

The business now gives investors exposure to a powerful pharmacy retail network, healthcare distribution, and the long-term demand for medicines, wellness products, and everyday health-related spending.

That combination appeals to me. Healthcare retail has some defensive qualities because people still need prescriptions, over-the-counter products, and pharmacy services in most economic environments. But Sigma also has a growth side because Chemist Warehouse is a highly recognisable brand with a large customer base and potential to keep expanding.

I think the scale of the combined business is important. A larger network can help with supplier relationships, distribution efficiency, data, marketing, and customer reach.

The valuation may not always look cheap, and integration still needs to be handled well. But if the merged group can keep executing, I think Sigma could be a great long-term investment.

REA Group Ltd (ASX: REA)

REA Group is another blue-chip ASX share I would consider buying with $2,000.

The company owns realestate.com.au, which sits at the centre of Australia’s property search market.

I like REA because it has a rare position in an area that attracts huge consumer attention. Australians care deeply about property. Buyers browse listings, sellers want maximum exposure, agents need leads, and advertisers want access to that audience.

REA connects all of those groups. This creates a powerful network effect. Buyers and renters go where the listings are. Agents want to list where the buyers and renters are. That loop helps protect REA’s position.

The stock often trades on a premium valuation, which means investors should be comfortable paying for quality. But I think dominant digital platforms with strong brands and high margins deserve close attention when building a long-term portfolio.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a third ASX blue-chip share I would be happy to own for the long term.

The group has built a collection of businesses that reach into many parts of Australian consumer life. Bunnings remains a standout in home improvement, Kmart has become a powerful value-focused retailer, Officeworks serves households and businesses, and Priceline gives the group exposure to health and beauty.

I think that mix is useful in the current environment. Households may be under pressure, but they still need everyday products, affordable clothing, home essentials, school supplies, medicines, and health-related items. Wesfarmers has brands that can stay relevant across those needs.

The share price can still be affected by consumer confidence, costs, and valuation. But I think Wesfarmers has enough quality across the group to keep compounding over time.

Foolish takeaway

A $2,000 investment will not transform a portfolio overnight.

But I think it can still be put to work in a way that makes sense for the long term.

Sigma, REA Group, and Wesfarmers all have strong positions in areas where demand is likely to remain important: healthcare retail, property search, and everyday household spending.

That is the kind of foundation I would want from blue-chip ASX shares. The returns may take time to show up, and the entry price still matters, but I would be very comfortable letting these three businesses work away in the background for years.

The post I’d buy these blue-chip ASX shares with $2,000 in a heartbeat appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Broker Shaw and Partners recently held an Emerging Financial Companies Conference, during which several ASX-listed companies presented their outlooks.

I’ve had a look at the broker notes for two, which the Shaw and Partners team think could appreciate well over the next 12 months.

Let’s have a look at the companies they are tipping for strong share price gains.

Credit Clear Ltd (ASX: CCR)

Credit Clear offers a customer intelligence and accounts receivable platform and has clients including Toyota Finance, Suncorp Group Ltd (ASX: SUN), and Bendigo and Adelaide Bank Ltd (ASX: BEN).

Shaw and Partners said Credit Clear reiterated FY26 guidance of $9.5 to $10.5 million in EBITDA during its presentation.

They said the company has a strong economic moat and a large potential runway.

Shaw and Partners added:

CCR provides a highly regulated service in debt resolution and receivables management to Tier 1 utilities, financial firms, government entities and leisure companies. CCR has 10 years of data across numerous industries and dozens of clients to train its next-best-action AI debt resolution system. This is difficult for competitors to replicate. CCR is gaining share in the Australian market for commission-based debt resolution from a base of about 10% of industry revenue. Tier 1 client retention is about 95%.

The Shaw research note added that Credit Clear has a solid footprint in the UK and New Zealand and an emerging presence in the US and Canada.

They also noted that the company was working on an artificial recoveries platform to automate some processes, while noting that “debt recovery from consumers is generally highly regulated, and in many instances must involve human intervention”.

Shaw and Partners has a price target of 40 cents on Credit Clear shares compared with 23 cents currently.

Pioneer Credit Ltd (ASX: PNC)

Pioneer Credit also operates in the debt recovery sector.

Shaw and Partners said the company reiterated its full-year net profit guidance of more than $23 million.

The company also “re-iterated that FY26 cash collections are in growth and further cash growth is expected in FY27”.

Shaw said that Pioneer indicated that the industry was now returning to a growth phase.

Over the last few years the debt recovery industry suffered from subdued supply in part due to very low interest rates and regulatory oversight inhibiting banks from selling debt. PNC observes now that banks are returning to the market in force.  

One example was Westpac Banking Corp (ASX: WBC), which Shaw estimated could be inventorying nearly $2 billion of aged debt, which had been “written off but not resolved”.

Shaw estimated that winning its share of that debt could be worth 30 cents a share to Pioneer alone.

Shaw also said Pioneer benefits from being in a strong market position.

As they said:

In recent years competition has thinned such that the large end of the market, PNC operates in a duopoly. PNC is benefitting from panel deselection of competitors and its status as preferred counterparty due to its compliance record.

Shaw and Partners has a price target of $1 on Pioneer shares compared with 60 cents currently.

Pioneer Credit is valued at $96.4 million.

The post These two ASX financial services companies could both jump more than 50% Shaw and Partners says appeared first on The Motley Fool Australia.

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• How much do I need to invest in ASX shares for $500 a month of passive income?
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• Why the ASX 200 is being smashed today
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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 positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Graincorp Ltd (ASX: GNC) shares are having a rough week.

The ASX 200 stock was sold off on Thursday and crashed 13%.

This means the grain exporter’s shares are now down 31% since this time last year.

Is this a buying opportunity for investors? Let’s see what Bell Potter is saying.

What is the broker saying about this ASX 200 stock?

Bell Potter notes that Graincorp released a half-year result this week that was well short of expectations. It said:

Revenue of $3,884m was down -5% YOY (vs. BPe $3,849m). EBITDA of $136.1m was down -32% YOY (vs. BPe of $148.6m) with a weaker result in Nutrition and energy and Agribusiness, despite moving higher volumes of grains in the half. There was a $12m EBITDA timing impact on derivative mark-to -markets within the Nutrition business which should unwind in 2H26e. Operating NPAT of $32.7m (vs. BPe of $49.6m) was down -53% YOY. 1H26 crop receipts were 11.0mt (vs. BPe of 10.4mt) and crop exports were 3.3mt (vs. BPe of 3.0mt).

In response to the results, the broker has reduced its earnings estimates for the coming years. It adds:

EPS changes are -4% in FY26e, -12% in FY27e and -9% in FY28e. changes reflect modestly lower margin assumptions and higher base interest rate assumptions. Our target price is $5.90ps (prev. $6.80ps) reflecting lower corporate net cash.

Should you buy the dip?

According to the note, the broker doesn’t think investors should be rushing in to buy the ASX 200 stock following its decline.

It has retained its hold rating with a reduced price target of $5.90 (from $6.80). Based on its current share price of $5.38, this implies potential upside of 9.5% for investors over the next 12 months.

Bell Potter has concerns that grain trading margins could remain tight in the near term. It said:

As the focus shifts to the upcoming crop, soil moisture profiles are in general the opposite of a year ago, being improved in the south and drier in the north. At this stage, the increasing shift in outlook towards an El Nino bias in 2HCY26 warrants consideration against potential yield outcomes. Global production forecasts for 2026/27 remain at elevated levels (~2% above the 5YR avg.), suggesting ongoing tight grain trading margins. Oilseed crush margins remain strong and have the potential to be a tailwind as hedge positions rollover.

The post Down 30%: Is this ASX 200 stock a buy after its crash? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why Bapcor, Coles, Graincorp, and Xero shares are tumbling today
• Why Graincorp, Air New Zealand and Megaport shares are turning heads on Thursday
• ASX 200 stock crashes 12% on half-year results
• GrainCorp shares: 1H26 profit drops but guidance stands

Motley Fool contributor James Mickleboro 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.