Stock Pick

  • 5 things to watch on the ASX 200 on Thursday

    Smiling man with phone in wheelchair watching stocks and trends on computer

    On Wednesday, the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains and ended the day in the red. The benchmark index fell 0.25% to 8,447.9 points.

    Will the market be able to bounce back from this on Thursday? Here are five things to watch:

    ASX 200 expected to rebound

    The Australian share market looks set to rebound on Thursday despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 23 points or 0.25% higher this morning. In late trade in the United States, the Dow Jones is down 0.3%, but the S&P 500 is up 0.15% and the Nasdaq is 0.35% higher.

    Oil prices fall

    ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a poor session on Thursday after oil prices dropped overnight. According to Bloomberg, the WTI crude oil price is down 2.1% to US$59.48 a barrel and the Brent crude oil price is down 2.1% to US$63.53 a barrel. Traders were selling oil in response to optimism that the Russia-Ukraine war could end.

    Nvidia results

    All eyes will be on Nvidia (NASDAQ: NVDA) after the market bell on Wall Street today. The chip maker is releasing its quarterly results and expectations are very high. In fact, there are concerns that if Nvidia fails to live up to market expectations, it could lead to the market selloff intensifying.

    Gold price rises

    It could be a decent session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) on Thursday after the gold price pushed higher. According to CNBC, the gold futures price is up 0.15% to US$4,072.7 an ounce. This was driven by safe haven demand.

    Buy Nufarm shares

    Nufarm Ltd (ASX: NUF) shares could be great value according to Bell Potter. This morning, the broker has retained its buy rating on the agricultural chemicals company’s shares with an improved price target of $3.60. It said: “NUF delivered a FY25 result modestly ahead of consensus, driven by +170bp topline outperformance in Crop protection revenue growth (relative to sector aggregates) and highlighted by a better-than-expected net debt position. In recent weeks we have witnessed a strengthening in omega-3 oil pricing indicators (following the IMARPE catch quota) while also noting continued YOY growth in active ingredient values.”

    The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Beach Energy Limited right now?

    Before you buy Beach Energy Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Beach Energy Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See the 5 Stocks

    * Returns as of 18 November 2025

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

  • 1 of my favourite ASX shares just fell 17% in a day – and I’m buying more

    A group of people in suits watch as a man puts his hand up to take the opportunity.

    After recently reporting its FY25 result, the TechnologyOne Ltd (ASX: TNE) share price dropped 17% on the day. While it’s disappointing to see a decline that large for the ASX share, I’m seeing it as an opportunity to buy more shares at a reduced valuation.

    TechnologyOne is one of the world’s largest enterprise resource planning (ERP) software businesses with big ambitions, but the market wasn’t impressed enough by the numbers as the overall tech sector took a hit that day.

    I think the business still has a very promising future and I’m planning to buy more shares soon, assuming it remains as attractively valued as it is now.

    Strong revenue growth expected

    In FY25, the business delivered 18% revenue growth to $610 million and the annual recurring revenue (ARR) increased 18% to $554.6 million.

    TechnologyOne continues to win new deals including the London boroughs of Islington London Borough Council and the Council of the Royal Borough of Greenwich. That helped UKK ARR rise 49% and bodes well for future growth in the country.

    The ASX share also hit its target net revenue retention (NRR) rate of 15%, which is how much revenue growth it achieved from existing customers from last year. Revenue doubles in five years if it grows by an average of 15% per year.  

    The business is aiming to hit $1 billion of ARR by FY30, underpinned by ‘SaaS+’ (software as a service), its new AI transaction-driven ARR strategy, its significant investments in R&D, developing expanded products and modules, as well as a number of new products. UK growth is an important part of its growth targets.

    Rising profit margins

    While the business is delivering strong top-line growth, the bottom line is also growing at a very pleasing rate.

    In FY25, profit before tax (PBT) climbed 19% to $181.5 million, beating guidance of growth of between 137% to 17%. The business reported a profit before tax (PBT) margin of 30%.

    The business is expecting to deliver a PBT margin of at least 35% in the coming years, driven by “the significant economies of scale” of its software and the customer response to its SaaS+ offering.

    Considering businesses are usually valued based on their profit, this is a promising sign. As a bonus, higher profits can lead to bigger dividend payouts.

    The ASX share is better value

    According to the forecast on Commsec, the TechnologyOne share price is valued at 46x FY27’s estimated earnings, at the time of writing, following the large decline of the valuation this week.

    It’s not as cheap as it was in April, but I think this is a great time to pounce on a high-quality business which is trading at a much lower valuation.

    The post 1 of my favourite ASX shares just fell 17% in a day – and I’m buying more appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Technology One Limited right now?

    Before you buy Technology One Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Technology One Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See the 5 Stocks

    * Returns as of 18 November 2025

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

  • This wild-looking drone hunting drug runners at night helped the US Coast Guard seize a record-breaking cocaine haul

    The crew of US Coast Guard Cutter Stone stands behind rows of stacked cocaine packages on the ship's deck. A large drone is placed by the cocaine.
    The offload included over 49,000 pounds of cocaine seized by US Coast Guard Cutter Stone in the eastern Pacific.

    US Coast Guard photo by Cutter Stone's crew

    • US Coast Guard cutter Stone offloaded a substantial amount of cocaine seized from drug interdictions in the Pacific.
    • The deployment included 15 interdictions, three of which occurred within a single night.
    • A new drone capability helped the Stone track drug smuggling vessels.

    PORT EVERGLADES, Florida — A US Coast Guard crew successfully seized a record-breaking amount of cocaine from drug runners with the help of an unusual reconnaissance drone.

    The unique tail-sitter drone, capable of taking off and landing vertically, allowed the crew of the Coast Guard cutter Stone to easily put eyes in the sky and spot drug smugglers during a recent deployment in the eastern Pacific.

    The crew of the Stone, a large Legends-class National Security cutter, offloaded over 49,000 pounds of cocaine worth more than $362 million at Port Everglades in Fort Lauderdale, Florida, on Wednesday. It was a landmark offload marking the most cocaine seized by a single Coast Guard cutter during a deployment. The majority of the cocaine taken during this deployment came from Colombia, officials said.

    "What you see behind me is more than just a pile of cocaine," Vice Adm. Moore, commander of Coast Guard Atlantic Area, said, standing amid cocaine packages stacked in long rows on the Stone's deck. "It represents a tangible victory in our ongoing fight against transnational criminal organizations and narcoterrorism."

    Packages of cocaine sit on the deck of the US Coast Guard Cutter Stone.
    The offload represented the largest amount of cocaine seized by one US Coast Guard Cutter in a single deployment.

    Business Insider/Chris Panella

    The deployment, which began in August, was part of the Coast Guard-led Operation Pacific Viper targeting drug-running operations in the eastern Pacific. Coast Guard officials say the service is accelerating its counter-narcotics missions, resulting in record numbers of drug interdictions. In fiscal year 2025 alone, the Coast Guard seized almost 510,000 pounds of cocaine, the most in its history.

    The Stone's recent deployment in the Pacific included 15 interdictions, three of which occurred on the same night.

    The three vessels were spotted in rapid succession by a new capability on the Stone, Shield AI's MQ-35 V-BAT. The uncrewed aerial vehicle, which was operated by a contractor team, spotted the first boat in dark waters during the night, prompting the Stone to prepare a boarding team.

    US Coast Guard service members sit in a blue drug boat that's been sized in the ocean. Nearby them is a large Coast Guard Cutter.
    TK

    US Coast Guard photo by Cutter Stone's crew

    Capt. Anne O'Connell, the commanding officer of the Stone, told Business Insider that as the team and the armed interdiction helicopter were interdicting the vessel, the V-BAT went out to patrol the area further. "That's when they saw the wake from the second TOI," or target of interest, she said.

    As the second boarding team went out, the drone set out on another patrol, finding a third boat nearby. That night, a total of 12,000 pounds of cocaine were seized, along with seven suspected narcotics traffickers.

    The drone, O'Connell said, was integral to the operations that night because it allowed the Stone's crew to continue monitoring surrounding areas while completing boarding processes, which can take anywhere from two to eight hours depending on the size of the vessel and the complex law enforcement procedures that Coast Guard teams must follow.

    The V-BAT flies over a designated area determined by the Coast Guard. The drone's operators receive specific instructions on what to look for, and once it's airborne, its live video feed is transmitted to the ship, where crew members can watch it on monitors.

    Two men lift and hold a large drone aboard a Navy ship at sea with a cloudy blue sky in the background.
    Shield AI inked a nearly $200 million contract with the Coast Guard last July to deploy V-BAT drones.

    US Navy photo by Mass Communication Specialist 3rd Class Megan Alexander

    This was the Stone's first deployment with the V-BAT, and it's also one of the first cutters to have it on board, O'Connell said. Its usefulness was especially notable in the large operating area of the eastern Pacific, as the uncrewed aerial system could make up for a lack of fixed-wing aircraft doing reconnaissance.

    The V-BAT is an unusual drone design, featuring ducted-fan technology for lift. Built to have a small tactical footprint, according to its maker, the drone can take off in winds up to 25 knots from vessels on the move at up to 10 knots. Shield AI says it can offer over 13 hours of flight time for persistent surveillance.

    The company notes that a two-man team can have the V-BAT assembled and operational in under 30 minutes.

    While the V-BAT, like other capabilities making the Stone a premier vessel for these types of missions, proved valuable, officials said credit belongs primarily to the crew.

    "All of those elements, with the UAS and our HITRON [Helicopter Interdiction Tactical Squadron] and our small boats," O'Connell said, are incredible capabilities. "But the secret sauce is our people, and they are what makes us successful."

    Read the original article on Business Insider

  • We’re in that chapter between parenting and grandparenting. We left our permanent address to travel the world.

    Couple posing for photo
    The author and his partner are taking a gap year around the world.

    Courtesy of the author

    • My partner is 58, and I am 69, and our kids have all left our home.
    • We are between parenting and becoming grandparents, so we decided to explore the world.
    • We call it rotational living, and are giving ourselves time to figure out where to live next.

    My partner Deb, 58, and I, 69, are taking a gap year that began in January 2025. Except, we have no hard ending — we call it rotational living.

    We gave up our fixed address, a rental too large and expensive for our needs, while we explore the world. We spent several weeks in São Paulo, about the same amount of time in Providence, and a few days in rural Vermont, watching spring settle into the mountains. We lived in Montreal for a month and a half this summer and depart for three months in Brazil again the first week in December. We look forward to Europe, South Africa, and the Middle East next year.

    Rotational living works for us in part because we both prefer travel as though living in a new place. When one trip ends, another begins, in a different city, state, or country.

    We learned a lot from our travels

    We've learned a few things while traveling together. First, you have to truly enjoy your partner. We're both writers and consultants, so we create work in similar ways. We've realized how much we rely on the predictable — the same coffee maker, clocks you don't have to search for, all the different shoes — and how exhausting unpredictability can become.

    We accommodate these challenges by going to bed early and leaving room in our days for uncertainty. These few negatives of rotational living don't detract much from the pleasures. Not knowing lies at the core of exploration, and so we have learned to master uncertainty, embrace adventure, and love freedom.

    We had talked about living this way for years. Then my mother died in the fall of 2024 after a long and glorious life. The kids — my two in their 30s, Deb's three in their 20s — have launched, all of them in careers they trained for, and none of them have children yet. This little gap, between parenting and grandparenting, arrives like a gift. We look forward to becoming our future grandkids' default babysitters and embracing a fixed address when that moment arrives. But in the meantime, we contemplate where to go next.

    We are spending less money

    Our decision also has a financial underpinning, although the professional freedom Deb and I enjoy might have led us to this choice anyway.

    We lived outside Boston, in a community for people who moved there for the top-notch schools. Our large apartment cost an absurd sum compared to our needs, but nothing within a two-hour radius saved us much money. In truth, we don't yet know where we want to live, so rather than spend thousands a year on rent for a place we don't love, why not spend less and live everywhere?

    Calculating the cost of rotational living clarified that a conventional home led to a life at the edge, whereas rotational living brought us the luxuries we most desire: learning new cultures, eating well, time with friends and family, and artistic inspiration. We started a blog called Breakfast: A Love Story to share this joy with the world.

    When we visit Brazil, we can rent comfortable apartments for under $1,000 a month, pretty much whenever we want to go. The same goes for India, another destination on our list. We're looking for an open month for Europe, where we will mostly stay with friends. Work obligations sometimes set our travel map. Just as often, we imagine places we want to experience, such as Japan and Australia. The moment we make friends in those places, we will go.

    Andy Hoffman began writing professionally as a teenager and has founded several businesses, largely in educational technology. He currently lives everywhere.

    Read the original article on Business Insider

  • OpenAI is beating its own forecasts, adding more fuel to the AI investment supercycle, analysts say

    OpenAI's DevDay conference in San Francisco
    OpenAI's DevDay conference in San Francisco

    Alistair Barr/Business Insider

    • OpenAI revenue growth is surpassing its own forecasts, according to a deep dive by Barclays.
    • New revenue streams like advertising and AI agents could boost OpenAI's revenue.
    • These signs of acceleration could fuel AI infrastructure spending, the analyst said.

    OpenAI is "running ahead" of its own revenue targets, a signal that the company driving the generative AI boom is expanding faster than even its backers expected.

    That's according to a new deep dive from Barclays tech analysts, led by Ross Sandler. They wrote this week that OpenAI's better-than-expected growth trajectory reinforces the AI infrastructure investment wave rather than slowing it, despite mounting concerns over capital intensity and potential market bubbles.

    OpenAI's revenue performance is roughly 15% above 2025 forecasts and 50% ahead of 2027 projections, according to analysts' estimates, based on CEO Sam Altman's recent comments that the company is on pace to reach $100 billion in annual recurring revenue by 2027. That's about a year earlier than previously expected.

    The Barclays analysts attributed the outperformance to user growth, steady conversion from free to paid subscribers, and the rapid scaling of OpenAI's enterprise and application programming interface (API) businesses.

    Their research note outlined key performance indicators that OpenAI must hit to keep this revenue momentum going:

    • Maintaining a 50 million monthly increase in weekly active users (WAUs)
    • Keeping free-to-paid conversion rates near 4%
    • Growing average monthly revenue per user from $30 to $55 through new, higher-tier offerings
    • The API business, which provides access to GPT models, needs 6x growth
    • New sources of revenue must emerge, such as advertising and AI agent services

    If ChatGPT grows to about 2 billion weekly active users by 2028, that could help OpenAI generate $100 billion in annual recurring revenue, depending on how many of these users subscribe to paid versions of the chatbot service, the analysts estimated.

    The research note also pointed to new revenue streams, including advertising on the ChatGPT free tier and an emerging "Agents-as-a-Service" model (effectively digital employees that can handle tasks for businesses). The analysts say both businesses could meaningfully expand monetization over the next two years, while the API business continues to grow as adoption broadens.

    There's also a shopping referral fee revenue stream that comes with OpenAI's recently launched Instant Checkout feature in ChatGPT, the analysts wrote.

    This revenue expansion means increased compute demand. OpenAI's compute budget is now projected to exceed $450 billion from 2024 through 2030, with total obligations of around $650 billion, some of which extend beyond 2030, according to Barclays research.

    The analysts wrote that these signs of acceleration, rather than signaling a coming slowdown, could extend the AI investment supercycle.

    "We would expect the other labs to continue to keep their foot on the gas," Sandler and his colleagues wrote in their note this week. "And hyperscalers are likely to keep their spending levels up, despite concerns."

    Sign up for BI's Tech Memo newsletter here. Reach out to me via email at abarr@businessinsider.com.

    Read the original article on Business Insider

  • Up 40% this year, Macquarie says this ASX 200 stock can still return double digits from here

    Female scientist working in a laboratory.

    Global testing giant ALS Ltd (ASX: ALQ) delivered a solid set of first-half results this week, and brokers, including Macquarie, have a positive outlook on the company’s shares, which give exposure to increasing confidence in the minerals exploration sector.

    The company this week reported a 13.3% increase in underlying revenue to $1.7 billion, while first-half net profit of $141.7 million was up 11.8%.

    ALS chair Nigel Garrard said it was a solid result.

    The group has delivered a strong first half result with organic revenue growth recorded across all business streams, resilient margins, and both underlying earnings and profit considerably up.

    The company also boosted its interim dividend by about 3% to 19.4 cents per share.

    Commodities sector strong

    Managing director Malcom Deane said, despite “ongoing geopolitical and macro uncertainty”, there was strength in the company’s commodities division, while there was lower growth in the life sciences division.

    Within commodities, the businesses delivered a strong performance, achieving 14.3% organic revenue growth supported by favourable market conditions. Growth was recorded across all regions. Within minerals, activity continues to be led by major and mid-tier miners, while improving funding conditions for junior explorers are contributing to higher quotation and early-stage project activity.

    Mr Deane said the life sciences division’s performance was slightly below expectations despite a strong showing from the food sector.

    ALS said it was also continuing to assess a number of merger and acquisition opportunities.

    The company upgraded its revenue guidance to 6% to 8% growth, up from 5% to 7%, and said it was well on track to meet its FY27 targets, including growing revenue to $3.3 billion and growing underlying EBIT to $600 million.

    Share price upside

    The team at Macquarie ran the ruler over the results and said investors who were seeking leverage to the strong gold price by buying ALS would have liked what they saw.

    The broker has an outperform rating on ALS shares and said, despite the strong performance already, there was more upside to be had.

    Stock has had a strong run and multiple not cheap, but should be supported by ALS’s strong earnings per share growth profile which is above both market & global … peers. Calendar year 26 exploration budgets should trend positively and there’s potential for the juniors to co-join the senior-driven exploration recovery.

    Macquarie has a 12-month price target of $22.85 on the shares, compared with Tuesday’s close of $21.12.

    This price target was up from a previous target of $19.26. Bell Potter is even more bullish on the shares, with a price target of $25.   

    The post Up 40% this year, Macquarie says this ASX 200 stock can still return double digits from here appeared first on The Motley Fool Australia.

    Should you invest $1,000 in ALS Limited right now?

    Before you buy ALS Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ALS Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See the 5 Stocks

    * Returns as of 18 November 2025

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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 positions in and 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.

  • Top brokers name 2 ASX All Ords stocks tipped to surge 67% and 69%

    Stock market chart in green with a rising arrow symbolising a rising share price.

    The All Ordinaries Index (ASX: XAO) could well enjoy an upcoming boost from two ASX All Ords stocks brokers have tipped to deliver outsized gains.

    Here’s how.

    ASX All Ords stock on the growth path

    The first stock that looks well-placed to surge higher is Intelligent Monitoring Group Ltd (ASX: IMB).

    Shares in the security, monitoring and risk management services provider closed up 3.5% on Wednesday at 59 cents a share. That sees the Intelligent Monitoring share price up 13.5% in a year.

    And according to the analysts at Canaccord Genuity, the ASX All Ords stock is well-placed to deliver earnings growth.

    According to the broker:

    In its 1Q26 result, IMB reported a 24% increase in its commercial installation pipeline to $45m, indicating strong demand from enterprise customers for security installation and upgrade work. Management noted continued growth in data centre related work as a strong feature and expects to release FY26 guidance in line with market expectations for the first time at its 10 Nov AGM.

    Canaccord estimates that management will full year provide guidance for earnings before interest, taxes, depreciation and amortisation (EBITDA) of $48 million, up 25% from FY 2025 earnings.

    Canaccord added:

    Of note, cash on hand ended 1Q26 at $15.5m and increased to $16.2m as of 30 October despite the $4.2m acquisition payment for BNP securities during the month, reflecting a strong start to 2Q26 cash generation.

    The broker said it views the ASX All Ords stock as undervalued at its current FY 2026 estimated EV/EBITDA multiple of 6 times.

    Canaccord has a price target of $1.00 a share on Intelligent Monitoring. That represents more than a 69% upside from Wednesday’s closing price.

    Which brings us to…

    Also tipped to rocket

    The second ASX All Ords stock that’s been tipped to rocket from current levels is Imricor Medical Systems Inc (ASX: IMR).

    Shares in the human heart focused healthcare share closed down 0.7% on Wednesday, trading for $1.35 apiece. That sees the Imricor share price up an impressive 51.7% in a year.

    And the analysts at Taylor Collison believe it’s set to outpace those gains in the year ahead following on the recent groundbreaking heart procedure using Imricor’s MRI compatible technology.

    The broker noted:

    Using Imricor’s suite of MRI-compatible products, Amsterdam University Medical Centre (AUMC) successfully performed the world’s first real-time MR-guided ischaemic ventricular tachycardia (VT) ablation in a patient with an implantable cardiac defibrillator (ICD)…

    This represents a significant de-risking milestone for IMR and validates the clinical potential of MRI-guided electrophysiology (EP) procedures.

    Taylor Collison added that this could help pave the way for US FDA approval in the year ahead.

    Positive EU data from the VISABL-VT trial demonstrating safe and feasible transeptal crossings in VT patients both with and without ICD’s is a significant catalyst for off label VT use in the US after initial FDA approval for atrial flutter (potentially late 2026)

    Connecting the dots, the broker has a price target of $2.26 on the ASX All Ords stock. That represents more than a 67% upside from Wednesday’s closing price.

    The post Top brokers name 2 ASX All Ords stocks tipped to surge 67% and 69% appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Intelligent Monitoring Group right now?

    Before you buy Intelligent Monitoring Group shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Intelligent Monitoring Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See the 5 Stocks

    * Returns as of 18 November 2025

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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 positions in and has recommended Intelligent Monitoring Group. The Motley Fool Australia has recommended Intelligent Monitoring Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Morgans names ASX small-cap stock to buy after capital raise

    A cool young man walking in a laneway holding a takeaway coffee in one hand and his phone in the other reacts with surprise as he reads the latest news on his mobile phone

    LGI Ltd (ASX: LGI) is an ASX small-cap stock that has had a strong run in 2025. 

    The company is engaged in the recovery of biogas from landfills, and the subsequent conversion into renewable electricity and saleable environmental products.

    The company operates at the convergence of the waste and clean energy sectors.

    At the time of writing, this ASX small cap stock has risen 47.26% higher in 2025. 

    Last month, the company announced a successful $50 million equity raise. 

    According to the company, the funds raised from the Offer will be used for:

    • Accelerated delivery of High Conviction Projects in Execution, including expansions at Mugga Lane, Belrose and Nowra sites
    • Funding new High Conviction Projects in Development, which are the next wave of power station expansion and grid-scale battery opportunities identified
    • Enhancing balance sheet flexibility, providing capacity to pursue new projects and tenders as they arise, while maintaining prudent leverage

    The team at Morgans has looked upon this news favourably, raising their valuation on the ASX small cap stock. 

    Capital raising bumps up guidance

    The broker said in a note yesterday that LGI has completed a ~A$56m capital raising (A$51m placement; A$5m SPP) to strengthen the balance sheet (net cash ~A$24m), expand its targeted development pipeline (>80MW) and accelerate project delivery (completed within 3 years). 

    Morgans said the extended pipeline (~28MW across six additional projects), will see LGI ~4x its ending FY25 MW under management, with a strong composition of high returning battery energy storage system (BESS) projects.

    Subsequently, FY26 guidance has been reaffirmed for 25-30% growth.

    The broker also materially improved forecasts (FY27-28F NPAT +17% and +24%), factoring in the development pipeline. 

    We are encouraged by the acceleration of the group’s MW capacity build out and maintain our confidence in managements strong operational execution to deliver it on time and on budget. Strong forecast earnings growth (MorgansF ~26% EPS CAGR) and LGI’s pure-play renewable exposure justify the valuation premium.

    Upgraded price target for this ASX small cap

    Based on this guidance, Morgans has upgraded its target price to $4.84. 

    This indicates an upside of 12.56% based on yesterday’s closing price of $4.30. 

    Elsewhere, TradingView has a 12 month price target of $4.68. 

    The post Morgans names ASX small-cap stock to buy after capital raise appeared first on The Motley Fool Australia.

    Should you invest $1,000 in LGI Limited right now?

    Before you buy LGI Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and LGI Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See the 5 Stocks

    * Returns as of 18 November 2025

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    Motley Fool contributor Aaron Bell 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 recommended LGI Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • I’d buy this ASX dividend stock in any market

    Man holding out $50 and $100 notes in his hands, symbolising ex dividend.

    The ASX dividend stock Wesfarmers Ltd (ASX: WES) is one of the most appealing businesses out of the entire ASX, in my view.

    Many readers may already know that Wesfarmers owns a variety of businesses in its portfolio including Bunnings, Kmart Group, Officeworks, healthcare businesses (including InstantScripts and Priceline), chemical, energy and fertiliser businesses (WesCEF) and an industrial and safety business.

    This company already owns a number of leading companies, and there is a long list of reasons why Wesfarmers is so appealing. Let’s get into a few of the key aspects.

    Excellent diversification

    Wesfarmers can trace its history back over 100 years, and it has changed significantly during that time.

    I think the ability to change its portfolio structure is one of the most appealing things about the business.

    It used to own Coles Group Ltd (ASX: COL), a vehicle service business and coal mines. But, all of those have been divested.

    The ASX dividend stock didn’t used to own lithium mining operations or have any exposure to healthcare businesses.

    By having the flexibility to buy and sell businesses in different industries, it’s able to focus its company on areas of the economy that have attractive long-term prospects. I think this will enable the business to have a promising future for decades to come.

    High-quality businesses

    Wesfarmers is undoubtedly one of the highest-quality retailers on the ASX, and has the numbers prove it.

    Impressively, the business reported an underlying return on equity (ROE) of 31.2% in the FY25 result. ROE tells investors how much profit the business earns compared to how much shareholder money it retains.

    I think the ROE is really high, in my view, for a business that generates most of its earnings from the retail industry.

    A ROE above 30% is a sign of high business quality. It also implies the business could generate a strong double-digit return on money retained and invested within the business.

    As long as Kmart Group and Bunnings continue to find places to invest money to help grow profit, I think Wesfarmers’ net profit can continue rising.

    The ASX dividend stock has a focus on shareholders

    Over the years, I think Wesfarmers has proven to be very good at doing the right things for shareholders, such as ending Bunnings’ expansion in the UK or regularly returning excess capital to investors.

    Pleasingly, in FY25, the business grew its full-year dividend per share by 4% to $2.06. That’s not bad considering inflation and high interest rates hurt household discretionary spending. The payout translates into a grossed-up dividend yield of 3.6%, including franking credits.

    On top of that, the business announced a proposed capital management distribution of $1.50 per share. That’s not far off being as big as the annual dividend per share.

    Overall, I think the business has a pleasing outlook and is an attractive option for investors wanting long-term ASX dividend stocks that can perform in all economic conditions.

    The post I’d buy this ASX dividend stock in any market appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Wesfarmers Limited right now?

    Before you buy Wesfarmers Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wesfarmers Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See the 5 Stocks

    * Returns as of 18 November 2025

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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 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.

  • Has this high-flying ASX tech share run out of steam?

    A silhouette shot of a man holding a control in his hands and watching as a drone hovers overhead with sunrays coming from the sky.

    The rally of ASX tech share Codan Ltd (ASX: CDA) this year has been spectacular. However, the share price has seen a strong pull-back in the last two weeks.

    Codan has lost 15% of its value, after hitting a new all-time high of $36.92 early November. Wednesday was another loss-making day for the ASX tech share, when it closed at $29.44, almost 4% lower than the day before.   

    Unique business profile

    Codan is an Adelaide based global developer with a dual focus: communications and metal detection. This gives the technology company a unique profile. It’s not just a hardware tech player, but also a business with deep roots in both gold-driven markets and defence communications.

    The communications division is now the growth engine of Codan. It designs and builds mission-critical communications equipment, drones and defence and public safety comms gear.  The shift toward defence communications means Codan is less exposed to the boom-bust cycles of gold prospecting.

    Through its Minelab brand, acquired almost 20 years ago, Codan produces metal detectors used for everything from recreational prospecting to humanitarian demining and security.   

    Gold rally inspired Codan’s dream-run

    This ASX tech share has had a great run in 2025, up 83% in 2025, including a more than 20% lift in October. Codan delivered strong growth in FY25, with group revenue up 22%, EBIT expanding 28%, and net profit after tax (NPAT) rising 27%.

    The communications segment was the standout performer, delivering 26% revenue growth and 34% profit growth. Looking ahead to FY26, management said that positive market conditions had continued into FY25, supporting Codan’s growth outlook.

    CEO Alf Ianniello commented at last month’s AGM:

    Elevated defence spending and ongoing geopolitical tensions continue to support demand across Codan’s Communications markets, with the business remaining on track to deliver 15 to 20% revenue growth for FY26.

    Last month’s rally was mainly driven by the roaring gold price, which set a new all-time record above US$4,300 per ounce. Strong gold prices are helping spur demand for Minelab detectors, especially in regions like Africa.

    Valuation concerns

    The recent pullback looks largely driven by valuation concerns and investors cashing some of their gains.  Several analysts seem cautious that much of the gain in Codan’s share price is already baked in.

    The majority of brokers is cautiously positive, but there’s no outright bullishness. Many analysts feel that the ASX tech share is now trading closer to fair value than earlier this month. The average 12-month price target forecasted by brokers is $32, implying a modest 8% upside from the current share price.    

    The post Has this high-flying ASX tech share run out of steam? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Codan Limited right now?

    Before you buy Codan Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Codan Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See the 5 Stocks

    * Returns as of 18 November 2025

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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 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.