Tag: Stock pick

At the start of each week, I like to look at ASIC’s short position report to find out which ASX shares are being targeted by short sellers.

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

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Lotus Resources Ltd (ASX: LOT) continues to be the most shorted ASX share after its short interest increased again to 18.5%. This uranium producer’s shares have come under significant pressure since the release of a very disappointing quarterly update. Lotus revealed weak production and a sizeable cash burn. There are now concerns that another capital raising will be needed later this year.
• Domino’s Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.3%. Short sellers appear to be doubting this pizza chain operator’s turnaround plans.
• Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease again to 14.5%. This radiopharmaceuticals company has come under pressure after struggling to gain key US FDA approvals.
• Boss Energy Ltd (ASX: BOE) has short interest of 14%, which is down since last week. This uranium miner’s uncertain production outlook beyond 2026 has weighed on sentiment.
• Treasury Wine Estates Ltd (ASX: TWE) has 13.7% of its shares held short, which is up week on week again. This wine giant’s recent and encouraging trading update hasn’t put off short sellers.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.6%, which is down week on week. Short sellers have been closing positions after the quick service restaurant operator’s shares rocketed in response to the closure of its loss-making US operations.
• CAR Group Limited (ASX: CAR) has short interest of 11.5%, which is up since last week. This may be due to concerns that higher interest rates and rising fuel costs could weigh on the automotive market.
• Flight Centre Travel Group Ltd (ASX: FLT) has returned to the top ten with short interest of 11.4%. Short sellers may believe the Middle East conflict could weigh on this travel agent’s performance.
• Zip Co Ltd (ASX: ZIP) has 11.2% of its shares held short, which is down again week on week. Short sellers may be expecting this buy now pay later provider’s performance to be impacted by weak consumer spending and higher interest rates.
• Polynovo Ltd (ASX: PNV) has 11.2% of its shares held short, which is down week on week again. This medical device company’s shares trade on a high PE ratio. Short sellers may believe this premium is unjustified.

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

More reading

• 3 ASX shares that brokers tipped to soar in the next 12 months
• Why did ASX 200 retail shares lead the market last week?
• Top brokers name 3 ASX shares to buy next week
• Why these ASX 200 shares could shoot 20% and 50% higher
• A rare buying opportunity in 1 of Australia’s top shares?

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

A month ago, the ASX hosted zero space-themed exchange-traded funds.

Today it has one, and the Betashares Space Industry ETF (ASX: RCKT) has wasted no time making its presence felt.

RCKT units floated at $14 on 12 May 2026.

They now trade much higher, with a gain of approximately 30% in May 2026.

The primary force behind that extraordinary run can be summarised in one word: SpaceX.

What is driving the RCKT ETF higher

SpaceX is targeting a Nasdaq debut around 12 June 2026 under the ticker SPCX.

The company is aiming for a valuation of between US$1.7 trillion and US$2 trillion.

This would make it the largest stock market debut in history.

Every development in the SpaceX IPO process has sent the RCKT ETF higher, as investors use it as the most accessible proxy for the space economy available on the ASX.

RCKT tracks the Solactive Space Industry Index, which holds 28 companies across the global space economy.

Its two largest positions are Rocket Lab USA and AST SpaceMobile at 12.6% each.

Both have delivered extraordinary returns over the past year.

Rocket Lab has risen more than 440% over twelve months.

AST SpaceMobile has surged on confirmation of its first commercial satellite communications service with major US carriers.

The underlying Solactive Space Industry Index returned 249% over the twelve months to 31 May 2026.

This makes it one of the strongest performing thematic indices in the world.

What Betashares CEO said about the RCKT ETF

The timing of RCKT’s launch was no accident.

Alex Vynokur, CEO of Betashares, said at launch:

Once driven primarily by government agencies, the space industry is increasingly shaped by commercial companies launching rockets, building satellite networks and providing critical data from orbit. With falling launch costs expanding what is commercially possible, and anticipated IPOs such as SpaceX’s on the horizon, RCKT is designed to capture the range of opportunities emerging in the global space industry.

Furthermore, McKinsey and the World Economic Forum project that the global space economy could reach $1.8 trillion by 2035.

That long-term growth trajectory underpins the case for RCKT beyond the near-term SpaceX excitement.

Will RCKT hold SpaceX after the IPO?

This is the question every RCKT investor is asking.

The answer is: possibly, but not guaranteed, and not right away.

RCKT is designed to track the Solactive Space Industry Index, which has specific rules about index inclusion.

SpaceX would need to meet those criteria after listing before RCKT could hold it.

That process could take months.

In the meantime, investors using RCKT as a SpaceX proxy are buying the broader space economy rather than SpaceX directly.

That may actually be a better outcome.

SpaceX is expected to be priced at a demanding valuation at IPO, with Elon Musk aiming to allot up to 30% of shares to retail investors.

IPO day prices can reflect peak enthusiasm rather than fair value.

A diversified basket of space companies through RCKT provides exposure to the theme without the concentrated IPO risk.

The risks

The history of space investing includes spectacular failures alongside the successes.

Virign Galactic surged dramatically during the meme stock mania of 2021 before crashing more than 98% from its peak.

RCKT’s top holdings, Rocket Lab and AST SpaceMobile, are both pre-profit companies whose valuations reflect enormous future potential.

If the SpaceX IPO disappoints or if the broader technology sector rotates lower, RCKT units could give back a significant portion of recent gains quickly.

The RCKT ETF charges a management fee of 0.57% per annum and does not yet have a distribution history, given its recent launch.

Foolish Takeaway

The RCKT ETF has delivered returns in three weeks that most funds take years to achieve.

The SpaceX IPO is the immediate catalyst, but the underlying strength of the space economy and the remarkable performance of its holdings suggest this is more than a single-event trade.

For investors comfortable with high volatility and a long time horizon, the RCKT ETF offers an accessible way to participate in what could be one of the defining investment themes of the next decade.

The post This ASX ETF has soared because of the upcoming SpaceX IPO appeared first on The Motley Fool Australia.

More reading

• SpaceX IPO buzz grows as ASX investors eye global tech giants

Motley Fool contributor Mark Verhoeven 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 AST SpaceMobile and Rocket Lab. The Motley Fool Australia has recommended Rocket Lab. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Lendlease Group (ASX: LLC) share price is in focus today following news of a $250 million sale agreement for its MSG North development rights and an expected $175 million post‑tax loss.

What did Lendlease report?

• Entered a sale agreement for Milano Santa Giulia (MSG North) development rights in Milan for ~$250 million.
• Expected post-tax operating loss of approximately $175 million from the transaction, to be recognised in FY26.
• Gross proceeds include ~$90 million in cash and the assumption of ~$160 million in project debt by the purchaser.
• Lendlease maintains more than $3 billion in liquidity as at HY26.
• Moody’s reaffirmed Lendlease’s Baa3 investment grade credit rating with a stable outlook on 25 May 2026.

What else do investors need to know?

The transaction is part of Lendlease’s ongoing capital recycling program, intended to release value tied up in long-dated and complex projects. While the sale is expected to result in an operating loss, it will also remove future capital obligations associated with MSG North’s development and holding costs.

Lendlease has separately announced or completed about $2.9 billion in capital recycling within its Capital Release Unit since May 2024. Additional transactions are currently in advanced stages, and an update on progress is expected once there is more certainty around their completion by 30 June 2026.

What’s next for Lendlease?

The company is focused on executing major capital recycling transactions, aiming to strengthen its balance sheet and simplify operations. Management says forthcoming updates will clarify the status of deals due to close or complete by the end of June.

Lendlease continues to balance maximising value and maintaining speed in asset disposals, drawing on the group’s significant liquidity and investment grade credit rating to support orderly realisations in changing markets.

Lendlease share price snapshot

Over the past 12 months, Lendlease shares have declined 53%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Lendlease reports $250m MSG North sale and FY26 loss appeared first on The Motley Fool Australia.

More reading

• Ventia secures $133m contract extension at Australian Marine Complex
• These were the worst-performing ASX 200 shares in May
• Pro Medicus renews $28m contract with Allegheny Health Network
• 5 things to watch on the ASX 200 on Monday
• Why did ASX 200 retail shares lead the market last week?

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.

If you have a high tolerance for risk, then it could be worth listening to what Bell Potter is saying about the ASX stock in this article.

That’s because its analysts believe this small-cap could rise very strongly from current levels.

Which ASX stock?

The stock that Bell Potter is recommending to clients with a high risk tolerance is Bubs Australia Ltd (ASX: BUB).

It is a growing infant formula company with a focus on the goat and organic sub-categories.

Bell Potter notes that the company has released a trading update. And while management has downgraded its expectations, it was still in line with what the broker was expecting. It said:

FY26 trading update, while a downgrade from their existing guidance is pretty much consistent with our thoughts that were updated following the 3Q26 sales update. Key points: FY26e Revenue: BUB has provided guidance of $105-115m, which compares to previous guidance of $120-125m and (BPe prev. of $113.5m). FY26e EBITDA: BUB has provided guidance for Reported EBITDA of -$2m to +$2m and underlying EBITDA of $4-8m, which compares to previous guidance of Reported EBITDA of $4-6m and Underlying EBITDA of $9-11m. This compares to BPe prev. forecasts of a -$0.4m Reported EBITDA loss.

We have reduced our forecasts, following the weaker than expected 3Q26 sales update and as such we do not see the revised guidance parameters as out of touch with our expectations. Consequently EBITDA changes are modest at -6% in FY27e but +12% in FY28e. Our valuation is revised to $0.135ps (prev. $0.145ps) following peer group compression in EV/revenue multiples.

Shares tipped to rise

According to the note, Bell Potter has retained its speculative buy rating on the ASX stock with a trimmed price target of 13.5 cents (from 14.5 cents).

Based on its current share price of 9.2 cents, this implies potential upside of almost 50% for investors over the next 12 months.

Commenting on its speculative buy recommendation, Bell Potter said:

Our Buy, Speculative risk rating remains unchanged. BUB continues to make progress in expanding its distribution footprint in the US (from 5,558 at Feb’26 to a target 10,000 by Jul’26) while managing temporary supply chain cost pressures (additional air freight in FY26-27e COGS). Signs that sell-in volumes are converting to sell-through and higher reorder rates (first signs likely by 1Q27e) and permanent US market access are likely key catalysts for share price performance.

The post Top broker says this small-cap ASX stock could rise almost 50% appeared first on The Motley Fool Australia.

More reading

• This ASX small-cap stock is sliding after a tough FY26 update

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.

Telstra Group Ltd (ASX: TLS) shares are in a strong phase as the company benefits from its excellent mobile network and the increasing digitalisation of the Australian economy.

As Australia’s largest telco, it’s in a strong position to continuing increasing subscription prices for Australians. While this may be a headwind for subscriber growth, it’s certainly a tailwind for margins and the average revenue per user (ARPU).

Let’s take a look at what analysts think could happen with Telstra’s earnings in the years ahead considering how that could influence the Telstra share price.

FY26

We’ve already seen the Telstra FY26 half-year result, which included a number of positives.

In the first-half of FY26, mobile ARPU grew by 5.1% and mobile service revenue grew by 5.6%. Overall mobile income rose by 4% to $5.8 billion and operating profit (EBITDA) grew 4% to $2.7 billion.

The company’s overall total income rose 0.2% to $11.8 billion, operating profit (EBITDA) grew 4.7% to $4.4 billion, EBIT climbed 9.2% to $2 billion and earnings per share (EPS) increased 11.2% to 9.9 cents. Cash EPS grew 19.7% to 14 cents. This helped fund a 10.5% rise of the dividend per share to 10.5 cents.

According to the projection on CMC Invest, Telstra is projected to generate EPS of 20.4 cents in FY26.

That means the ASX telco share is now valued at 25x FY26’s estimated earnings.

FY27

The company’s net profit is expected to increase in the subsequent financial year – earnings growth would be very supportive for the Telstra share price in that year.

In the 2027 financial year, Telstra is forecast to make EPS of 22.1 cents, which would represent year-over-year growth of 8.3%. I think most ASX blue-chip businesses would be happy with that level of growth.

At the time of writing, that forecast equates to the Telstra share price being valued at 23x FY27’s estimated earnings.

FY28

The final year of this series of projections is for the 2028 financial year.

According to the forecast on CMC Invest, the business is projected to generate EPS of 23.4 cents. That would represent year-over-year growth of 5.9%, which I’d describe as solid considering it would come after previous years of growth.

Using the Telstra share price at the time of writing, it’s valued at 22x FY28’s estimated earnings.

Is this a good time to invest at the current Telstra share price?

Analysts generally don’t seem to think the ASX telco share is going to do much in the shorter-term. According to CMC Invest, there are currently four hold ratings and one buy rating. Those five ratings have an average price target of $5.21.

There could be a better pick than Telstra at the current value.

The post Here’s the earnings forecast out to 2028 for Telstra shares appeared first on The Motley Fool Australia.

More reading

• 3 defensive ASX dividend shares I’d buy and hold
• Passive income investors: Term deposits or ASX dividend stocks in 2026?
• 3 of the best ASX dividend shares to buy in June
• Why are Telstra shares falling and should investors be concerned?
• 2 ASX dividend shares I’d buy for reliable passive income

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

Endeavour Group Ltd (ASX: EDV) has had a brutal twelve months.

Endeavour shares are down 28% over the past year and fell to a fresh 52-week low this week following its Investor Day.

Most of the attention has been on Dan Murphy’s and BWS, and understandably so.

The retail drinks business accounts for the majority of group revenue and has been under pressure from subdued consumer spending and margin compression.

But there is another part of the Endeavour Group story that deserves considerably more attention than it receives.

The hotels business is a hidden gem

Endeavour operates more than 350 licensed hotel venues across Australia under its ALH Hotels and Nightcap brands.

This makes the company one of the largest hotel operators in the country.

These are community-based venues offering bars, dining, gaming, wagering, accommodation, and live entertainment.

In the first half of FY 2026, the hotels segment generated revenue of $1.17 billion, up 4.4% year on year.

These were record results.

That momentum carried into Q3 FY 2026, where hotels delivered sales growth of 3.7%.

Impressively, the company realised these results even as cost-of-living pressures began to weigh on growth toward the end of the quarter.

Compare that to the retail segment, which grew just 2.9% in the same period.

The hotels business is clearly the more resilient division.

Yet the market continues to value Endeavour shares almost entirely through the lens of its troubled retail operations.

What the new strategy says about hotels

Tuesday’s Investor Day made the hotel opportunity explicit.

Management announced it will accelerate capital investment in the Hotels network through light-touch renewals, full refurbishments, and whole-of-venue repositionings.

This signals a clear belief that the hotel assets can deliver meaningfully higher returns with targeted investment.

The strategy also targets $300 million in cost savings by FY 2029, including $100 million in FY 2027.

Management will divest most of its winery and vineyard portfolio, including Chapel Hill, Oakridge, and Josef Chromy, to sharpen capital allocation and free up resources for the hotel acceleration.

CEO Jayne Hrdlicka said at the Investor Day:

Our Hotels business has delivered consistent and growing earnings, and we believe there is a significant opportunity to unlock more value through targeted investment in our venues and a simplified operating model.

Why the market sold off anyway

Despite the strategy’s merits, investors hit the sell button for two reasons.

First, the dividend payout ratio was cut to a range of 50% to 75% of underlying NPAT, down from the historical policy, removing a key reason many income investors owned the stock.

Second, near-term earnings remain soft, with the first half of FY 2026 delivering underlying NPAT of $278 million, down 6.7% year on year.

The shares have since fallen to an all-time low of $2.95, down 20% year to date.

Bell Potter retains its buy rating with a price target of $3.85, implying upside from the current share price, stating:

We retain our Buy rating. Although the outlook for consumer spending has weakened due to the Middle East conflict and a worsening rate environment, we believe market expectations are low for the company’s strategic reset and the hotel asset base provides a floor for valuation.

Foolish Takeaway

Endeavour Group is not a quick fix.

The transformation will take time, the dividend has been cut, and the retail business faces ongoing headwinds from cost-of-living pressures.

But for investors who can look past the near-term pain, a 350-venue hotel network growing at 4% per year, combined with $300 million in targeted cost savings and a sharper strategic focus, is a more interesting story than the 52-week low share price implies.

The post Why Endeavour Group’s hotel portfolio could be more valuable than the market realises appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Eagers, Dicker Data and Endeavour Group shares
• Why Eagers Automative, Endeavour, IPH, and Newmont shares are sinking today
• Why ASX, CBA, Endeavour, and Tuas shares are falling today
• Which ASX 200 share is sinking to a 52-week low after cutting its dividend payouts?
• Endeavour Group unveils strategy update and $300m cost savings drive

Motley Fool contributor Mark Verhoeven 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 Ventia Services Group Ltd (ASX: VNT) share price is in focus today after announcing a five-year, $133 million extension to its Australian Marine Complex-Common User Facility contract, set to begin in July 2027. This move underpins Ventia’s strong position in managing critical national infrastructure.

What did Ventia Services Group report?

• Secured a five-year contract extension for the AMC-Common User Facility, valued at approximately $133 million
• Extension to commence July 2027, continuing Ventia’s role since mid-2022
• Contract supports ongoing shipbuilding and maritime sustainment work at Henderson, WA
• Positions Ventia for future Defence and industrial growth opportunities

What else do investors need to know?

Ventia has managed the AMC-Common User Facility in Henderson for the Western Australian Government since 2022, cementing its role as a core partner in the state’s infrastructure ecosystem. The complex is now a key national hub powering Australia’s defence and shipbuilding industries, reflecting Ventia’s growing importance in these sectors.

This extension aligns Ventia with the WA Government’s infrastructure priorities and the Commonwealth’s Defence objectives at Henderson. It may also open up future growth pathways linked to the ongoing development of the marine precinct.

What did Ventia Services Group management say?

Managing Director and Group Chief Executive Officer Dean Banks said:

Securing this extension reflects the strength of our performance at AMC-CUF. Henderson is a critical hub for Australia’s maritime capability, and we are well positioned to support its next phase and to capture future opportunities as they develop. Our focus is on delivering safe, reliable and efficient operations while working closely with Government, Defence and industry to support long-term capability outcomes.

What’s next for Ventia Services Group?

Ventia aims to leverage this extension to further its involvement in Australia’s strategic infrastructure and Defence projects. The company’s ongoing relationship with state and federal stakeholders could lead to additional opportunities as the Henderson precinct grows.

Management indicated a continued focus on innovation, service excellence and expanding capabilities, which may support sustained growth over the coming years.

Ventia Services Group share price snapshot

Over the past 12 months, Ventia shares have risen 41%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Ventia secures $133m contract extension at Australian Marine Complex appeared first on The Motley Fool Australia.

More reading

• Lendlease reports $250m MSG North sale and FY26 loss
• These were the worst-performing ASX 200 shares in May
• Pro Medicus renews $28m contract with Allegheny Health Network
• 5 things to watch on the ASX 200 on Monday
• Why did ASX 200 retail shares lead the market last week?

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.

The S&P/ASX 200 Index (ASX: XJO) was on form in May and recorded a 0.75% gain over the month.

Unfortunately, not all shares climbed with the market. Here’s why these were the worst-performing ASX 200 shares in May:

Tuas Ltd (ASX: TUA)

The Tuas share price was the worst-performer on the ASX 200 index by some distance with a decline of 65%. Investors were selling the Singapore-based telco’s shares after it terminated its proposed S$1.4 billion acquisition of M1 Limited. Tuas made the move after authorities learned that its Simba business may have been using radio frequency bands it was not authorised to use. To fund the acquisition, Tuas undertook a A$416 million capital raising at $5.51 per new share. It is unclear what the company will now do with these funds.

Tabcorp Holdings Ltd (ASX: TAH)

The Tabcorp share price was a poor performer and lost 32% of its value in May. The catalyst for this was news that the gambling company has become the subject of an AUSTRAC enforcement investigation. Tabcorp advised that this relates to anti-money laundering and counter-terrorism financing (AML/CTF) compliance. AUSTRAC has stated that the investigation is at an early stage and its approach will be determined once sufficient evidence has been collected and assessed. In response to the news, Tabcorp’s CEO, Gillon McLachlan, said: “I am committed to leading a compliant and safe company that understands its risk obligations. Uplifting our risk capability has been an ongoing part of the Company’s transformation and we will work constructively with AUSTRAC through this process.”

IDP Education Ltd (ASX: IEL)

The IDP Education share price was out of form and sank 32% over the month. This was despite there being no news out of the language testing and student placement company. However, late in the month, the team at Macquarie downgraded IDP Education’s shares to an underperform rating (from neutral) with a reduced price target of $2.35 (from $5.45).

Brambles Ltd (ASX: BXB)

The Brambles share price had a tough time in May and dropped 27%. This was driven by a guidance downgrade from the supply chain solutions company. Brambles revealed that it now expects sales revenue growth of 2% to 3% (from 3% to 4%) and underlying profit growth of 3% to 5% (from 8% to 11%). The company’s CEO, Graham Chipchase, said: “Our immediate priority is to meet our customers’ needs and to restore stability and service in the affected parts of our US network. Our response and ongoing investments in quality reinforce that meeting our customers’ needs is non-negotiable. We will not compromise on the investment required to meet the quality, network resilience and service outcomes our customers expect.”

The post These were the worst-performing ASX 200 shares in May appeared first on The Motley Fool Australia.

More reading

• Lendlease reports $250m MSG North sale and FY26 loss
• Ventia secures $133m contract extension at Australian Marine Complex
• Pro Medicus renews $28m contract with Allegheny Health Network
• 5 things to watch on the ASX 200 on Monday
• Why did ASX 200 retail shares lead the market last week?

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.

There is a clear disconnect in Champion Iron Ltd (ASX: CIA) right now.

Champion Iron shares have fallen approximately 27% in 2026.

Yet the company produced 3.4 million wet metric tonnes of high-purity 66.2% iron ore in the March quarter, up 8% year on year.

Moreover, full-year revenues reached $1.77 billion, up $163.2 million on the prior year. That gap between operational performance and share price deserves a closer look.

Why the market is selling Champion Iron shares

The selling has centred on three concerns.

First, Champion Iron cut its dividend to preserve cash amid volatile market conditions.

This broke a track record of consistent semiannual payments, upsetting income investors.

Second, quarterly EBITDA came in at $114 million, down on the prior corresponding quarter.

That reflected weaker iron ore price realisations throughout the period.

Third, Bell Potter retained its hold rating and trimmed its price target to $4.85 from $5, stating:

CIA expect to ramp-up high-grade concentrate (DRPF grade) production from mid-2026. While we expect iron content price premiums for this product, full value-in-use premiums are unlikely to be realised until longer-term offtake is secured. Free cash flow should improve from FY27 as capex rolls off, supporting debt servicing and ongoing dividends. On valuation, we retain our Hold recommendation.

That hold rating, at a $4.85 target with Champion Iron shares trading near $4.45, implies modest near-term upside on Bell Potter’s numbers.

The bull case for Champion Iron shares

Nevertheless, the core long-term thesis has not changed.

Champion Iron operates the Bloom Lake mine in Quebec, Canada, producing high-purity iron ore at 66.2% Fe.

That already commands a premium to the standard 62% Fe benchmark.

Furthermore, the new DRPF plant is in its final commissioning stretch.

First commercial sales are expected before the end of June 2026.

Once operational, the plant will push purity toward 69% Fe direct reduction quality iron ore.

This product targets electric arc furnaces and hydrogen-based steelmaking, the two leading decarbonisation pathways in global steel production.

As a result, demand for ultra-high-grade iron ore like Champion’s should grow materially over the coming decade as steelmakers face rising pressure to cut emissions.

In addition, the US$300 million acquisition of Norway’s Rana Gruber, completed on 17 April 2026, adds a second high-purity operation in Europe.

This should diversify Champion’s customer base into the heart of the European green steel transition.

CEO David Cataford said at completion:

The closing of this transaction marks a defining milestone for Champion. Combining our businesses strengthens our leadership as a sustainable supplier of high-purity iron ore produced with a low-carbon footprint.

Meanwhile, Bell Potter acknowledges that free cash flow should improve materially from FY 2027 as DRPF capital expenditure rolls off and the Rana Gruber integration progresses.

Foolish Takeaway

Champion Iron shares are under pressure for reasons that look largely temporary.

The dividend cut, the soft quarterly result, and the time needed to realise DRPF premiums are all near-term headwinds.

However, the longer-term story remains intact.

Champion is a high-purity iron ore producer well-positioned to benefit from the global green steel transition.

For patient investors, the current entry point in Champion Iron shares could prove interesting once DRPF sales begin and free cash flow recovers in FY 2027.

The post Champion Iron shares: Why the pressure could be temporary appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares set to soar 40% to 80% in 12 months: experts
• Why are these 3 ASX 200 stocks crashing in this week’s rebounding market?
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Motley Fool contributor Mark Verhoeven 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 Pro Medicus Ltd (ASX: PME) share price could be on the move after the healthcare technology company announced a new 5-year, $28 million contract renewal with Allegheny Health Network and additional workflow integration.

What did Pro Medicus report?

• Signed a 5-year, A$28 million contract renewal with Allegheny Health Network (AHN)
• Contract includes the addition of Visage 7 Workflow with AHN
• Renewal features increased minimums and higher fee per transaction
• Brings total contract renewals for FY26 to A$125 million
• Ongoing transaction-based model with potential upside

What else do investors need to know?

Pro Medicus has maintained a strong relationship with AHN, one of the largest health networks in the Pittsburgh region, for over a decade. The inclusion of Visage 7 Workflow marks an expansion of the existing partnership, reflecting increasing demand for the company’s clinical imaging solutions.

The contract continues Pro Medicus’ international momentum, following consistent client retention and renewals throughout the financial year. The transaction-based model may offer further upside if imaging volumes increase.

What’s next for Pro Medicus?

Pro Medicus plans to continue expanding in the North American market, leveraging its Visage 7 platform and end-to-end imaging solutions. The company is focused on client retention and attracting new health networks, aiming to boost both financial and clinical impact.

Investor attention will likely remain on contract wins and recurring revenue growth, as Pro Medicus builds on its track record of renewals and long-term partnerships.

Pro Medicus share price snapshot

Over the past 12 months, the Pro Medicus shares have declined 53%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

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The post Pro Medicus renews $28m contract with Allegheny Health 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 recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. 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.