Liontown Ltd (ASX: LTR) shares have been strong performers over the past 12 months.

During this time, the lithium miner’s shares have risen 35%.

Despite this, one leading broker believes that the company’s shares could be dirt cheap.

What is the broker saying?

According to a note out of Bell Potter, its analysts felt that Liontown delivered a “solid” result in FY 2026. The broker said:

LTR reported FY26 underlying EBITDA of $147m (BP est. $222m) and NPAT of $14m (BP est. -$3m). Statutory NPAT was $93m, includes a net -$44.3m tax effected charge for fair value movements and FX gain related to the convertible notes issued to LG Energy Solution, and the recognition of a $112.9m deferred tax asset for tax losses carried forward from prior years. LTR did not declare a dividend, as expected. 

The FY26 result was symptomatic of the Kathleen Valley ramp-up, with high depreciation associated with completing the open pit in late 2025. As previously reported, LTR finished FY26 with cash of $561m and debt of $369m (excluding leases) implying a net cash position of $192m.

Looking ahead, Bell Potter highlights that management is working towards a final investment decision (FID) for the Kathleen Valley mine and processing plant expansion, with a decision due in the near term. It said:

LTR intends to take a formal Final Investment Decision (FID) on the Kathleen Valley mine and processing plant expansion in late September 2026. The expansion is designed to lift underground mining and processing throughput from 2.8Mtpa to 4.0Mtpa, thereby lifting concentrate production capacity from around 500ktpa to over 700ktpa. In today’s release, LTR reiterated FID remains on track for end of Q1 FY27.

Are Liontown shares dirt cheap?

Bell Potter believes that Liontown shares are unnecessarily cheap, highlighting that its enterprise value (EV) is trading at a level not seen since lithium prices were significantly cheaper and its debt load was higher. It said:

We still believe that LTR’s EV is lagging the recent recovery in lithium markets and expected tight fundamentals. The last time LTR was trading at its current EV (early December 2025), SC6 prices were US$1,150/t and net debt was $274m. Since this date. Since then, the Kathleen Valley underground ramp-up has been further derisked and spot SC6 prices are above US$2,300/t. 

While we expect lithium markets will be volatile, market fundamentals remain strong. Over FY27, LTR will continue to ramp up and de-risk Kathleen Valley, a highly strategic asset in terms of scale, long project life and location in a tier-one mining jurisdiction.

In response to the company’s results, the broker has retained its buy rating and $1.90 price target on Liontown’s shares.

Based on its current share price of $1.23, this implies potential upside of approximately 55% for investors over the next 12 months.

The post Why Liontown shares could be dirt cheap 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.

Macquarie Group Ltd (ASX: MQG) shares have stormed higher in 2026, with robust financial results and a series of positive announcements continuing to drive positive investor sentiment.

At the close of the ASX on Monday afternoon, the investment bank’s shares were down around 0.5% to $250.59.

Despite the small decline, the shares are still up 23% for the year-to-date and are 12% higher than 12 months ago.

What do investors like about Macquarie Group?

At the time of writing, Macquarie is Australia’s fifth-largest bank by market capitalisation, and the sixth largest stock listed on the S&P/ASX 200 Index (ASX: XJO). 

But Macquarie is more than just an ASX bank stock. It provides services across a diverse range of markets.

Aside from banking, Macquarie Group also operates across asset management, commodities and financial markets, advisory, investment, and fund management services across 34 markets globally.

Through most of the year so far, the investment bank has performed strongly, rallying strongly in April and reaching an all-time high in early-August.

In late July, the company had its AGM, posted its first-quarter FY27 update, and announced that CEO Shemara Wikramanayake will retire in November, with Greg Ward to take over the top job.

Macquarie described trading conditions during the first quarter as “satisfactory”. Its Banking and Financial Services segment increased its profit contribution compared with the same period last year. Deposits rose by 4% during the quarter, while home loans grew by 6% and business banking loans increased by 3%.

The news came on the back of the company’s positive earnings results back in May. At the time, Macquarie reported a full-year FY26 net profit of $4.85 billion, up 30% from FY25, and growth across all four of its operating divisions.

The rally of good news was very well received by the market, and many rushed to snap up the shares.

The question now is, can Macquarie keep climbing higher? Or have the shares reached a ceiling?

If I buy $5,000 of Macquarie shares today, what could they be worth in 12 months time?

Analysts are pretty optimistic about the outlook for Macquarie over the next year. 

Market Index data shows that the majority of brokers have a buy rating on the shares. The $270.89 average target price implies 8% potential upside at the time of writing. 

TradingView data shows something similar. Again, the majority (nine out of 12) also have a buy/strong buy rating on the shares. The average $268.69 target price implies a potential 7% upside ahead. 

The team at Catapult Wealth have a buy rating on the investment bank. The wealth management company thinks Macquarie shares are a good alternative to the big four banks in the current environment.

Jarden has a buy rating on Macquarie shares, but thinks the stock is now fully priced. It has a price target of $250, just a little above the current share price.

Morgans also thinks the shares are close to being fully valued. The broker has a hold rating and a $255 target price. It said that Macquarie is a quality franchise and a proven performer, but is overvalued.

Assuming the average price target comes to fruition within the next 12 months, that means a $5,000 investment today could be worth between $5,350 and $5,400 this time next year.

The post By September 2027, $5,000 invested in Macquarie shares could turn into… appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

PLS Group Ltd (ASX: PLS) shares were among the best performers on the S&P/ASX 200 index (ASX: XJO) in August.

During the month, the lithium giant’s shares surged 30% to end the period at $5.40.

This means the company’s shares are now up a remarkable 120% over the past 12 months.

Why did PLS shares rocket in August?

Investors were fighting to get hold of PLS shares following the release of its FY 2026 results.

For the 12 months ended 30 June, the lithium miner reported a 152% increase in revenue to $1,934 million. 

This was driven by a 17% increase in sales volumes to 891.6kt and a 121% jump in its average estimated realised price to US$1,488 per tonne.

Another positive was that its unit operating cost (FOB) improved by 9% to $569/t (US$386/t), which management advised reflects higher volumes and ongoing operational improvements.

This ultimately underpinned a more than 1,000% increase in underlying EBITDA to $1,137 million (from $97 million) and a net profit after tax of $526 million, which was up from a $196 million loss a year earlier.

The good news for shareholders is that this allowed the PLS board to bring back its dividend. It is paying shareholders a 5 cents per share fully franked dividend for the half.

Commenting on the results, PLS’ CEO, Dale Henderson, said:

FY26 was a record year for PLS, demonstrating our through-cycle strategy in action. We had positioned the business to respond quickly when market conditions improved and, as the lithium market strengthened, we acted – bringing idled capacity back into production and shifting our focus decisively from defence to growth. That preparation is reflected in the results. We delivered record production of approximately 880 thousand tonnes while reducing unit operating costs by 9%, generating $1.1 billion of underlying EBITDA at a 59% margin and $1.4 billion of cash margin from operations. These are strong outcomes and a credit to our team. 

With 100% ownership of Pilgangoora, our shareholders receive the full benefit of the scale, low-cost position and operating leverage we have built. We also strengthened the business for what comes next. During the year we accessed the international debt capital markets for the first time through our US$600 million bond and finished FY26 with $2.3 billion of cash. That financial strength gives us flexibility: we can continue investing in Pilgangoora, bring Ngungaju back into production, advance P2000 and Colina, and pay a fully franked final dividend of 5 cents per share. 

We enter FY27 larger, lower cost and financially stronger than we were a year ago. We remain confident in the long-term opportunity for lithium, and our focus is on continuing to execute well, allocating capital with discipline and delivering value for our shareholders.

Should you invest?

According to a note out of Macquarie Group Ltd (ASX: MQG), its analysts still see value in PLS shares at current levels.

In response to its FY 2026 results, the broker retained its outperform rating and $6.00 price target on its shares.

Based on its current share price, this implies potential upside of approximately 11% for investors over the next 12 months.

The post Why PLS shares rocketed 30% in August 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 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.