Shaw and Partners recently held their TechRise conference in Sydney, where Australian technology companies were invited to present on their outlook.

Out of this, the broking firm has issued a number of research notes on promising companies, two of which I’ll look at today.

Let’s jump right in.

Gentrack Group Ltd (ASX: GTK)

Shareholders in Gentrack might well be frustrated given the company’s share price has plunged from levels higher than $12 over the past year to now be changing hands for $3.36.

But the Shaw and Partners team believes the shares can more than double from these levels, with a price target on Gentrack of $8 per share.

The team said Gentrack presented at TechRise and there was also a follow up on their recent trading update, where the company said they expected revenue for the full year to come in at $229 to $238 million, which was “lower than our previous guidance”.

The Shaw and Partners team said:

The group call stepped through movements in non-recurring revenue and highlighted why current FY26 guidance carries more limited risk, alongside what underpins management’s confidence in medium-term targets. In our view, the recent circa-40% sell-off increasingly implies a structural slowdown that management commentary and pipeline visibility do not support.

Gentrack is currently valued at $387.9 million.

Vista Group International Ltd (ASX: VGL)

This company released a trading update to coincide with its TechRise presentation, with revenue expected to come in at $176-$182 million with an EBITDA margin of 18-20%.

The company specialises in the software which cinemas use to manage all of their processes, and claims to have a 46% market share globally, not including Russia, China and India.

Vista said it was currently generating cash flow of about $19 million per year, but was targeting $75 million by the end of 2030.

The Shaw and Partners research note on Vista said the main message was that, “Vista is increasingly an execution story rather than a demand story, with customers signed and onboarding now the key focus”.

The analyst team added:

FY26 guidance of 10–13% revenue growth and 18–20% margins was reiterated, with management stating the business is ‘definitely well on track’. Domestic US box office assumptions (~US$9.7bn) were described as tracking ahead, while foreign exchange was ‘slightly in our favour’. Management repeatedly stressed this is now ‘absolutely an execution story’ with customers already signed and migrations underway.

Shaw and Partners has a price target of $3.70 on Vista Group shares compared with $1.75 currently.

The company is valued at $423.5 million.

The post Which 2 ASX tech companies could more than double according to Shaw and Partners? appeared first on The Motley Fool Australia.

More reading

• Despite a recent trading downgrade this ASX small cap could still return more than 100%: Broker
• Down 75%: Is this ASX tech stock a bargain buy?
• Guess which ASX tech share is crashing 35% today
• Why Appen, Gentrack, Magellan, and Regis Resources shares are falling today
• Leading brokers name 3 ASX shares to buy today

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

The S&P/ASX 200 Index (ASX: XJO) is having a poor start to the week. In afternoon trade, the benchmark index is down 0.7% to 8,685.2 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price is down almost 3% to $35.78. Investors have been selling the banking giant’s shares on Monday after they went ex-dividend for the bank’s latest payout. Last week, the big four bank released its half-year results and declared a partially franked interim dividend of 83 cents per share. Eligible ANZ shareholders can look forward to receiving this latest dividend in around seven weeks on 1 July.

CSL Ltd (ASX: CSL)

The CSL share price is down 19% to $97.36. It goes from bad to worse for this struggling biotechnology giant. This morning, CSL revealed that it would be cutting its FY 2026 earnings guidance and plans to make $5 billion in additional asset impairments. CSL’s interim CEO, Gordon Naylor, said: “Our growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialise. As a result, we have now revised down our 2026 financial year guidance. CSL’s culture and people continue to be first class, the industry is stable and growing and the company has evident strengths in plasma collections and influenza vaccines. I am confident that the company can be returned to profitable growth and my work is to position the business and the next CEO for success.” FY 2026 revenue is now expected to be around US$15.2 billion, while NPATA is forecast to be approximately US$3.1 billion.

Dateline Resources Ltd (ASX: DTR)

The Dateline Resources share price is down almost 14% to 20.7 cents. This follows the release of the Bankable Feasibility Study (BFS) for its Colosseum Gold and Rare Earth Element (REE) Project in the United States. The project has a net present value of US$785 million (pre-tax), which increases to US$999 million using the spot gold price. Start-up costs are expected to be US$249 million. It seems that the market was expecting stronger numbers from the BFS.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 6% to $3.42. This is despite there being no news out of the counter-drone technology company today. However, it is worth highlighting that a number of ASX defence shares are falling today. Some investors may have decided to take profit after strong gains over the past 12 months.

The post Why ANZ, CSL, Dateline, and DroneShield shares are sinking today appeared first on The Motley Fool Australia.

More reading

• Why the ASX 200 is being smashed today
• Buy, hold, sell: ANZ, Eagers, and Woolworths shares
• CSL shares suffer their biggest one-day crash ever! What just went wrong?
• Up 588% in a year, why is this ASX 300 gold stock tumbling today?
• CSL cuts FY26 guidance, flags $5bn in impairments

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and DroneShield. 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.

Asx media company oOh!media Ltd (ASX: OML) has fielded its second takeover in as many weeks, with I Squared Capital offering to buy the company for $1.45 per share in cash.

This follows Pacific Equity Partners offering to buy the company for $1.40 per share in late April.

Shares trading higher

Shareholders who bought in at recent lows below $1 will be happy. Meanwhile, for longer term holders, the offers are well below levels reached in October last year, with the stock then trading above $1.80.

oOh!media shares were changing hands for $1.32 on Monday morning, up 5.4%.

oOh!media’s board said the second takeover offer was, similar to the PEP offer, non-binding and conditionals.

They added:

The ISQ proposal is subject to a number of key conditions broadly consistent with those relating to the PEP proposal, including the satisfactory completion of due diligence by ISQ and entry into binding transaction documentation on acceptable terms. The ISQ offer price is also subject to an adjustment under which the offer price will be reduced by the amount of any future dividends or other distributions paid to shareholders. The Board of Directors of oOh!media Limited (Board) has considered both proposals in conjunction with its advisers and has unanimously determined that neither proposal adequately reflects the intrinsic value of oOh!. The Board has informed both PEP and ISQ that it does not intend to recommend to shareholders any formal binding offer at or below the value of their respective non‑binding indicative proposals.

While the board does not think either bid represents good value for shareholders, they said that they would allow both parties, “access to a limited amount of due diligence information to enable each party to assess whether it is able to put forward a revised proposal that may be capable of the board’s recommendation”.

More than two bids possible

They also hinted that more bids may be in the offing:

oOh! is also engaging with certain other parties and may potentially receive change of control proposals from one or more of those parties and potentially other parties. oOh! is open to engaging with all parties to assess whether any proposal may emerge that is capable of being recommended by the board.

The board said it had also decided to pause its share buyback while the corporate activity ran its course.

oOh!media is scheduled to hold its annual general meeting on May 14.

The company is valued at $665.6 million.

The post This ASX media company has attracted a second takeover offer. Let the bidding war begin appeared first on The Motley Fool Australia.

More reading

• Why 29Metals, Aurelia Metals, Codan, and oOhMedia shares are racing higher today
• oOh!Media shares rocket 40% higher on takeover offer

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) shares are edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) telco provider closed on Friday trading for $5.31. During the Monday lunch hour, shares are swapping hands for $5.30 apiece, down 0.3%.

For some context, the ASX 200 is down 0.8% at this same time.

Longer-term, Telstra shares have gained 15.5% over the past 12 months, or almost three times the 5.5% one-year gains posted by the benchmark index.

And that doesn’t include the two fully franked dividends the telco giant paid out over the full year. Telstra stock currently trades on a 3.8% fully franked trailing dividend yield.

Atop its own operational successes, which drove solid first half year earnings growth, Telstra has also been catching headwinds from its recently increased $1.25 billion share buyback program.

When a company buys back its shares, it reduces the amount available on the market, which often helps support the share price.

As of last Friday, the company had repurchased around 214 million shares, the buyback currently scheduled to run through 30 June.

Which brings us back to our headline question…

Telstra shares: Buy, hold or sell?

Catapult Wealth’s Blake Halligan recently ran his slide rule over the ASX 200 telco (courtesy of The Bull).

Halligan noted:

The telecommunications giant recently reaffirmed its 2026 fiscal year outlook, guiding to cash earnings per share growth amid maintaining capital discipline as it progresses its on-market share buyback of up to $1.25 billion.

Looking ahead, Halligan added, “Mobile price rises are expected to support revenue growth in full year 2026.”

But despite these potential tailwinds, he issued a hold recommendation for Telstra shares.

According to Halligan:

However, regulatory uncertainty around proposed higher spectrum licence fees remains a medium-term headwind. Investors can expect a fully franked dividend of 21 cents a share for full year 2026, but near‑term upside appears limited, in our view.

Why did the ASX 200 telco beef up its billion-dollar share buyback?

Telstra released its half year results (H1 FY 2026) on 19 February.

The company initially announced its share buyback program in August last year, reporting its intention to buyback up to $1.0 billion in stock.

But, following the half year results, that buyback was ramped up to $1.25 billion.

Commenting on the extra $250 million in potential share repurchases at the time, Telstra CEO Vicki Brady said:

Today, we are also announcing an increase in our current on market share buyback from up to $1 billion to up to $1.25 billion. This increase is supported by strong progress in completing $637 million of the buyback in the half, earnings growth, and the strength of our balance sheet.

Telstra shares closed up 3.6% on the day of the results release.

The post Should you buy Telstra shares amid the $1.25 billion share buyback? appeared first on The Motley Fool Australia.

More reading

• Here’s the dividend forecast out to 2028 for Telstra shares
• Buy, hold, sell: TechnologyOne, Telstra, and Woodside shares
• How to build a $1,000 a month passive income from the ASX
• Why the ASX 200 is charging higher today
• I’m worried about the ASX 200 falling further. Here’s why

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. At the time of writing, the benchmark index is down 0.7% to 8,683.2 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Dyno Nobel Ltd (ASX: DNL)

The Dyno Nobel share price is up 10% to $3.66. Investors have been buying the explosives manufacturer’s shares following the release of a strong half-year result. The company revealed that net profit after tax excluding individually material items increased 83.3% to $160.9 million. This allowed the Dyno Nobel board to increase its interim dividend by 91.7% to 4.6 cents per share. Commenting on the result, the company’s CEO, Mauro Neves, said: “1H26 marks the beginning of a new era for Dyno Nobel as we concluded our separation from the Fertilisers business and move forward as a pureplay global explosives leader.”

Inghams Group Ltd (ASX: ING)

The Inghams share price is up 5% to $1.78. This follows the release of a trading update from the poultry producer which revealed that volumes were up 1.1% for the first nine months of FY 2026. As a result, management has reaffirmed its guidance for underlying EBITDA of $180 million to $200 million. Inghams’ CEO and managing director, Ed Alexander, said: “We are seeing improved operational performance and positive momentum from initiatives already delivered, while reaffirming our FY26 guidance in a challenging environment.”

Metcash Ltd (ASX: MTS)

The Metcash share price is up 6% to $2.90. This is in response to the release of a trading update from the wholesale distributor this morning. Metcash revealed that it expects to report revenue growth of 0.7% for FY 2026 with underlying net profit after tax in the region of $268 million to $270 million. Looking ahead, management advised that its ongoing cost initiatives are targeting at least ~$25 million in annualised savings in FY 2027. Metcash’s CEO, Doug Jones, said: “We have delivered a solid result supported by the resilience of our Food and Liquor businesses, our diversified portfolio and disciplined execution.”

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is up 4.5% to 11.5 cents. This morning, the energy company announced the exit of its CEO, Peter Stokes. He will be replaced by Shelley Robertson, effective 1 June. The release notes that Ms Robertson is a highly respected and influential leader in the Australian resource and energy sector. She was previously the chief operating officer at Fortescue Ltd (ASX: FMG).

The post Why Dyno Nobel, Inghams, Metcash, and Strike Energy shares are charging higher today appeared first on The Motley Fool Australia.

More reading

• Why the ASX 200 is being smashed today
• Sell alert! Why this expert is calling time on Metcash and A2 Milk shares
• This ASX 200 stock is rocketing 10% after a surprise profit update
• Why is this ASX 300 food stock racing higher today?
• Explosive ASX 200 share jumps 8% on first-half profit surge

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 S&P/ASX 200 Index (ASX: XJO) is having a rough start to the week.

At the time of writing, the benchmark index is down 0.93% to 8,663 points.

That leaves the ASX 200 on track for its second straight decline, after falling 1.51% on Friday.

Across the Pacific, US markets ended last week on a much stronger note. The S&P 500 hit a fresh record high, while the Nasdaq also pushed higher after another strong session for chip stocks.

Locally, though, investors have had plenty to digest this morning.

Here’s what is driving the sell-off.

CSL weighs heavily on the index

The biggest drag today is CSL Ltd (ASX: CSL).

The healthcare giant is having a brutal session after cutting its FY26 outlook and flagging large impairments.

CSL shares are currently down 16.82% to $99.715. Earlier in the session, the stock was down more than 20% and trading near a decade low.

Given CSL’s size in the index, today’s fall is doing a lot of the damage by itself.

According to The Australian, CSL has shaved about 31 points from the benchmark. The sell-off follows the company’s warning that it will recognise around US$5 billion in impairments and lower its earnings expectations.

The damage has also spread across the healthcare sector, with Pro Medicus Ltd (ASX: PME) trading 1.34% lower as well.

Banks and tech names add pressure

Unfortunately, the selling is not just limited to CSL.

Several major banks are also weighing on the index.

Commonwealth Bank of Australia (ASX: CBA) is down 1.6%, while Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) are also in the red.

ANZ Group Holdings Ltd (ASX: ANZ) is down 3.15% as it trades ex-dividend.

Macquarie Group Ltd (ASX: MQG) is another drag, falling 2.4%.

Technology names are also under pressure, with Xero Ltd (ASX: XRO), and Codan Ltd (ASX: CDA), down 0.54% and 2.55%, respectively.

Oil prices hit sentiment

Brent crude has jumped after US President Donald Trump rejected Iran’s latest response to a US peace proposal. Trading Economics shows Brent crude hit above US$104 a barrel earlier today.

That helps explain why Woodside Energy Group Ltd (ASX: WDS) is holding up better than many other large-cap names, up 1.08%.

Resources stocks are also offering some support, with BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) among the stronger performers.

Metcash Ltd (ASX: MTS) is also 6.02% higher after releasing stronger profit guidance.

The post Why the ASX 200 is being smashed today appeared first on The Motley Fool Australia.

More reading

• Down 40% but not out: Is Pro Medicus the buy of the decade right now?
• Why ANZ, CSL, Dateline, and DroneShield shares are sinking today
• Why Dyno Nobel, Inghams, Metcash, and Strike Energy shares are charging higher today
• Looking to buy CBA shares? Here’s the dividend yield you’ll get today
• Sell alert! Why this expert is calling time on Metcash and A2 Milk shares

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 CSL, Macquarie Group, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Macquarie Group and Xero. The Motley Fool Australia has recommended BHP Group, CSL, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Like any ASX 200 bank stock, investors who buy Commonwealth Bank of Australia (ASX: CBA) shares with the expectation of receiving fat, and preferably fully franked, dividends.

CBA has been a source of reliable, regular and robust dividend payments for decades. But what kind of dividend yield could one expect from buying this ASX bank right now? That’s what we’ll be discussing today.

What dividends have CBA shares been paying?

CBA has certainly kept to its reputation as a reliable source of rising income for dividend investors in recent years. After the pandemic-induced drought of 2020, Commonwealth Bank has rebuilt its payouts steadily ever since, delivering a rising dividend each year since 2021. That year saw CBA fork out an annual total of $3.50 per share in dividends, fully franked. But by last year, that had risen to $4.85 per share. That was up from 2024’s total of $4.65 per share, and $4.50 in the prior year.

CBA’s first dividend of 2026 continued this trend. Back in late March, CBA paid out an interim dividend worth $2.35 per share (also fully franked). That represented a 4.44% hike over 2025’s interim dividend of $2.25 per share.

So what kind of yield can investors expect from CBA shares if they buy today? Well, adding that interim dividend of $2.35 to last year’s final dividend of $2.60, we get a 12-month total of $4.95. At the current (at the time of writing) CBA share price of $173.15, that works out to be worth a trailing dividend yield of 2.86%.

Only 2.86% from an ASX bank stock?

Some investors may be dismayed with that kind of yield, particularly from an ASX bank stock. and especially when considering that some of CBA’s banking peers, such as National Australia Bank Ltd (ASX: NAB), currently have fully franked trailing yields over 4.5% today. Unfortunately, this is the consequence of CBA’s popularity.

Most investors know that this bank stock has had an incredible run in recent years, leaping almost 40% higher in 2024 alone. Although CBA has only climbed about 3.3% over the past 12 months, its banking peers have fared far worse. NAB, for instance, has lost almost a quarter of its value since February, while CBA has treaded water.

This has had the effect of raising the dividend yields for CBA’s peers, whilst leaving CBA’s already low yield intact.

If you’re after an ASX bank share for an income portfolio today, you can either have CBA or a high-yielding investment. But sadly, you can’t have both.

The post Looking to buy CBA shares? Here’s the dividend yield you’ll get today appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining shares smash multi-year highs as key commodity prices rise
• What could $10,000 invested in CBA shares become in 1 year?
• Money to invest? I’d follow Warren Buffett to get rich
• How to build a $1,000 a month passive income from the ASX
• The ASX 200 just suffered its biggest fall in 7 weeks. Here’s what’s going on

Motley Fool contributor Sebastian Bowen 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.

It may be time to sell Metcash Ltd (ASX: MTS) and A2 Milk Co Ltd (ASX: A2M) shares.

That’s according to Catapult Wealth’s Blake Halligan (courtesy of The Bull).

As we head into the Monday lunch hour, A2 Milk shares are down 0.5%, trading for $6.51 each, outpacing the 0.8% losses posted by the S&P/ASX 200 Index (ASX: XJO) at this same time.

Longer-term, shares in the ASX 200 dairy company have tumbled 21.5% over the past year, underperforming the 5.3% 12-month gains delivered by the benchmark index.

Those losses will have only been modestly eased by A2 Milk’s 2.6% fully franked trailing dividend yield.

Turning to Metcash, shares in the ASX 200 wholesale food, liquor and hardware distributor are storming higher today, up 5.1% at $2.88 apiece.

Despite that strong performance, Metcash shares remain down 13.5% over 12 months. Metcash shares trade one a 6.3% fully franked trailing dividend yield.

Metcash is enjoying a strong runt today following the release of an unaudited first half trading update.

Metcash said it expects to achieve underlying profit after tax between $268 million and $270 million for the 12 months to 30 April. Management is forecasting revenue growth of 0.7%.

Which brings us back to…

Time to sell A2 Milk shares?

“A recent trading update revealed supply chain disruptions are constraining product availability despite strong underlying demand,” Catapult Wealth’s Halligan said.

He noted:

The company downgraded guidance in full year 2026, with revenue growth downgraded to low-to-mid double digits, with cash conversion falling to 50%. It expects lower infant milk formula sales, mostly related to Chinese labels.

Summarising his sell recommendation on A2 Milk shares, Halligan concluded:

The EBITDA percentage margin is forecast to decline from previous guidance of between 15.5% to 16% to between 14% to 14.5%. The shares have fallen from $9.24 on April 10 to trade at $6.67 on May 7. Better opportunities may exist elsewhere at this stage of the cycle.

Calling time on Metcash shares

Atop recommending selling A2 Milk shares, Halligan also issued a sell recommendation on Metcash shares.

“Metcash is a wholesale distributor across food, liquor and hardware,” he said. “It services independent retailers across Australia.”

Writing before the release of today’s trading update, Halligan noted:

Group sales revenue was up just 0.1% in the first half of 2026 when compared to the prior corresponding period. Group underlying profit after tax fell 5.9%, reflecting lower earnings in hardware and liquor and increased finance costs.

Summarising his sell recommendation on Metcash shares, Halligan concluded:

The company operates in fiercely competitive industries. Higher interest rates may pressure its discretionary product sales and full year 2026 earnings, suggesting a re-allocation of capital. The shares have fallen from $4.23 on September 1, 2025 to trade at $2.76 on May 7.

The post Sell alert! Why this expert is calling time on Metcash and A2 Milk shares appeared first on The Motley Fool Australia.

More reading

• This ASX 200 stock is rocketing 10% after a surprise profit update
• Metcash shares: FY26 earnings highlight portfolio resilience and cost discipline
• Here are the top 10 ASX 200 shares today
• Are A2 Milk shares a buy after the 10% selloff on Monday?
• Why are A2 Milk shares crashing 13% to fresh 52-week lows?

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.

Metcash Ltd (ASX: MTS) shares are racing higher on Monday after the wholesale distributor released a much stronger earnings update.

At the time of writing, the Metcash share price is up 10.22% to $3.02.

Today’s rally gives shareholders some relief after a weak stretch for the stock. Metcash shares remain down around 8% in 2026 and about 9% over the past year.

Here’s what the company said.

Profit guidance comes in stronger

According to the release, Metcash expects to deliver underlying net profit after tax (NPAT) of between $268 million and $270 million for FY26.

The company said the result was helped by a stronger second half and continued discipline in costs, capital spending, and working capital.

Revenue growth was positive, although fairly modest at the headline level. Metcash expects group revenue to rise 0.7%. Excluding tobacco, revenue is expected to increase 3.8%.

That gap is worth watching because tobacco continues to weigh on the Food division. Without tobacco, the rest of the business looks in better shape.

Food revenue is expected to come in at $10.5 billion, down 0.6%. But excluding tobacco, Food revenue is expected to rise 5.4%.

Liquor revenue is expected to increase 1% to $5.4 billion, while Hardware & Tools revenue is expected to rise 4.3% to $3.7 billion.

The numbers are still preliminary and unaudited, with Metcash due to release its full-year results on 22 June.

Hardware sales start to recover

Metcash said sales momentum improved in the second half, reflecting the pricing and range initiatives already in place.

Total Tools sales grew 6.7%, while Hardware sales rose 3.7%.

While trade market conditions remain soft, Metcash said the recovery has taken a little longer than first expected.

The company also said earnings in Hardware & Tools were affected by margin pressure, particularly in Victoria and Tasmania.

Cash flow gives investors another boost

Metcash also pointed to stronger cash flow and tighter spending across the business.

The company expects cash realisation to exceed its 80% to 90% 3-year target range. Debt leverage is expected to sit at the lower end of its 1 to 1.75 times target range.

Capital spending has also been reduced to about $170 million. That is around $30 million below guidance.

Management said this included active management of working capital and about $80 million of precautionary inventory related to supply chain uncertainty.

Metcash has also started additional cost initiatives. These are expected to deliver at least $25 million in annualised savings in FY27.

Foolish Takeaway

Metcash has given investors a better update than many were expecting.

Profit guidance looks solid, cash flow is strong, and its Hardware & Tools division is showing some improvement.

The full result in June will give a clearer picture, but today’s share price reaction shows the market is regaining confidence.

The post This ASX 200 stock is rocketing 10% after a surprise profit update appeared first on The Motley Fool Australia.

More reading

• Sell alert! Why this expert is calling time on Metcash and A2 Milk shares
• Metcash shares: FY26 earnings highlight portfolio resilience and cost discipline
• Here are the top 10 ASX 200 shares today
• These 4 ASX 200 shares have slumped to fresh 52-week lows: Buy, sell or hold?
• Nervous investors turn to ASX 200 defensives as global energy shock drags on

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Aldoro Resources Ltd (ASX: ARN) has confirmed its Kameelburg project as the world’s largest strontium resource, sending its shares higher on Monday.

Resource grows even larger

The company said in a statement to the ASX that it had a “globally significant” rare earth element resource of 597.07 million tonnes at a grade of 2.49%, which was a 15% increase in tonnage from its previous resource update in September last year.

The new resource was based on 29 new diamond drill holes at the project.

Aldoro said there were four distinct revenue streams from the project, located in Namibia, namely rare earth oxides, niobium pentoxide, strontium carbonate, and potentially magnetite-hosted iron by-product.

Aldoro Chair Quinn Li said regarding the new resource:

This updated Resource represents another transformational step-change for the Kameelburg Project and further confirms the emergence of one of the world’s most significant multi-critical minerals systems. Not only has the total resource tonnage continued to grow at consistent grade, but the high-grade core has more than doubled in scale. Importantly, we have now formally declared a maiden strontium resource and by-product credit, positioning Kameelburg as the largest known strontium resource globally. This is a major milestone for Aldoro and further highlights the unique strategic value of the project.

Ms Li said there had been “outstanding” metallurgical leach recoveries for strontium and rare earths, and, “together with the magnetite-rich domains currently being assessed as a potential iron by-product stream, Kameelburg is rapidly evolving into a genuinely world-class, multi-product critical minerals project with the potential to become a long-life global supplier of strategic minerals”.

Aldoro said Namibia was widely recognised as one of the most mining-friendly jurisdictions in Africa, with a well-established development framework.

The company added:

The country hosts a portfolio of globally significant operating mines (including Rössing, Husab, Langer Heinrich and Skorpion) and is home to substantial investment from major international mining groups. The Namibian mining sector contributed N$7.8 billion in corporate tax in the most recent fiscal year, underscoring the sector’s importance to the national economy and the corresponding strength of government support for mining investment.

Infrastructure in place

Aldoro said the Kameelburg project was well-situated, needing no greenfields rail, road, port, or power grid investment to bring it into production.

The project has bitumen highway access, and a heavy haul rail freight line is just 2km from the proposed mine site.

A major power line is also just 7km distant.

Aldoro shares were 7.9% higher on the news on Monday at 47.5 cents.

The company is valued at $103.8 million.

The post What world-leading news is driving shares in this junior ASX mining company higher today? appeared first on The Motley Fool Australia.

More reading

• Looking to buy CBA shares? Here’s the dividend yield you’ll get today
• Sell alert! Why this expert is calling time on Metcash and A2 Milk shares
• This ASX 200 stock is rocketing 10% after a surprise profit update
• Why is this ASX 300 food stock racing higher today?
• Buy, hold, sell: ANZ, Eagers, and Woolworths shares

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.