Tag: Stock pick

Atlas Arteria Ltd (ASX: ALX) has just announced a 50% boost to its full-year dividend payouts as it moves to fend off a takeover bid from Diamond Infraco.

Already generous dividend increased further

The toll roads operator previously had a dividend target of 40 cents per share, but on Monday morning, it said in a statement to the ASX that this target would be increased to 60 cents per share.

The company said:

The Independent Directors now intend to target paying distributions to ALX Securityholders of at least 60.0 cents per ALX Security in the 12 months following the end of the Offer Period made up of ordinary distributions of 40.0 cents per ALX Security and additional distributions of at least 20.0 cents per ALX Security. These distributions are expected to be funded by a combination of distributions from Atlas Arteria’s portfolio cash flows, proceeds from potential asset sales and, where appropriate, utilising corporate borrowing proceeds.

The offer period refers to Diamond Infraco’s $5.10 per share takeover offer, which Atlas Arteria’s directors are recommending shareholders reject.

Atlas Arteria said the increased dividends would likely have the effect of reducing dividends further out by 2 cents per share.

The company also said it was engaging in more discussions around asset sales.

The company said:

Atlas Arteria continues to progress initiatives to unlock value from its portfolio of world-class assets. In addition to progressing the potential divestment of the Chicago Skyway, Atlas Arteria has entered into exclusive discussions with Eiffage S.A., a leading French concession and construction group, in relation to the potential sale of Atlas Arteria’s 100% stake in the Warnow Tunnel in Germany. In the event a sale to Eiffage proceeds, Atlas Arteria expects that the sale price will be consistent with the Independent Expert’s range of €100m to €115m. Warnow Tunnel is the smallest asset in Atlas Arteria’s portfolio, and the possible divestment will not have a material impact on the future strategy of the group.

Diamond Infraco recently said its $5.10 per share offer for the company was its best and final offer.

Shares are worth more, company says

Atlas Arteria said in its statement on Monday that, “the Offer continues to materially undervalue Atlas Arteria and does not reflect an appropriate control premium for ALX Securityholders”.

An independent expert’s report has concluded that the offer is neither fair nor reasonable, and that an appropriate value for Atlas Arteria would be $5.39 to $6.20 per share.

Atlas Arteria shares were changing hands for $5.10 on Monday morning. At that price, the 60-cent per share dividend equates to a dividend yield of 11.8%.

The post How does an 11.8% dividend yield sound? appeared first on The Motley Fool Australia.

More reading

• Diamond Infraco’s $5.10 offer for Atlas Arteria now unconditional
• Atlas Arteria urges shareholders to reject IFM’s $5.10 takeover bid
• Atlas Arteria: Takeover offer lifted to $5.10 per security
• Atlas Arteria takeover bid extended
• Atlas Arteria reiterates ‘reject’ on IFM bid, maintains 2026 distribution guidance

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.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.2% to 8,815.3 points on Monday.

The market is jittery after Iran said it had re-closed the Strait of Hormuz over the weekend after Israel bombed Lebanon.

US and Iran officials are in Switzerland for further discussions after both parties signed an interim peace deal last week.

Meanwhile on The Bull this week, two experts give us their views and ratings on three ASX 200 shares.

Let’s check them out. 

Life360 Inc (ASX: 360)

The Life360 share price is $23.88, up 0.2% today and down 26% in the calendar year to date (YTD). 

Christopher Watt from Bell Potter Securities has a buy rating on this ASX 200 tech share. 

Watt explains: 

This information technology company provides a mobile networking safety app for families.

Active user growth is rebounding following a technical issue, while paying circle growth, which drives revenue, recently exceeded expectations.

Guidance was upgraded. Once focus returns to paying circles, I expect a re-rating to follow.

The upcoming August result is a catalyst.

The company has been enjoying strong price momentum, with the shares rising from $17.91 on May 20 to trade at $22.54 on June 18.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is $29.18, up 0.5% today and up 23% YTD. 

Niv Dagan from Peak Asset Management has a hold rating on this ASX 200 energy share. 

Dagan said: 

Operationally, the energy giant continues to execute strongly. It achieved an 11 per cent increase in the average realised price of a barrel of oil equivalent in the first quarter of 2026 when compared to the fourth quarter of financial year 2025.

However, quarterly production fell by 8 per cent due to seasonal weather events. The Scarborough energy project was 96 per cent complete and remains on track for first LNG cargo in the fourth quarter of 2026.

Other major projects remain on budget and on schedule.

CSL Ltd (ASX: CSL)

CSL shares are $113.09, down 2.8% today and down 34% YTD. 

Dagan has a sell rating on this ASX 200 healthcare share.

The analyst said CSL shares deserve a sell rating after the company downgraded its outlook for FY26.

He commented: 

A sell rating is justified as this biotechnology giant has materially downgraded its fiscal year 2026 outlook while announcing about $5 billion of additional non-cash pre-tax impairments across fiscal years 2026 and 2027.

Revenue expectations have been reduced due to US immunoglobulin channel normalisation and weaker albumin prices in China.

The CSL Vifor acquisition has under-performed. Also, government healthcare cost pressures and a higher interest rate environment present ongoing challenges for the biotechnology sector, further weighing on sentiment.

The post Buy, hold, sell: Life360, Woodside, CSL shares appeared first on The Motley Fool Australia.

More reading

• 3 ASX healthcare shares to sell despite signs of sector rebound
• Why CSL, Westpac, and this big-name ASX 200 share could be sells
• Experts name 3 ASX 200 shares to buy
• Down but not out: 3 ASX tech shares ripe for a rebound
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Bronwyn Allen 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 and Life360. The Motley Fool Australia has positions in and has recommended Life360. 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 All Ords gold stock Barton Gold Holdings Ltd (ASX: BGD) has had a tough time of it in 2026.

In early morning trade on Monday, Barton Gold shares are down 0.6%, trading for 79 cents apiece. This sees the share price down 39.7% year to date.

For some context, the All Ordinaries Index (ASX: XAO) is down 0.1% today and up 0.1% this year.

The ASX All Ords gold stock has faced a few tailwinds this year.

Among those was the somewhat dilutive capital raising in June. The miner has also faced a declining gold price, with the yellow metal down 24% since its 28 January peak.

And Barton Gold is still primarily an explorer waiting to transition to a producer to take advantage of the still historically high gold price. (Despite the sizeable retrace since late January, the current gold price of US$4,141 per ounce remains up 23% since this time last year.)

Speaking of becoming a producer, today the miner announced that it’s taking a big step towards making that transition.

ASX All Ords gold stock appoints GR Engineering

In what could be a welcome longer-term development, Barton Gold reported that it has started a Pre-Feasibility Study (PFS) at its Tunkillia Gold Project, located in South Australia. ,

The ASX All Ords gold stock has appointed GR Engineering Services Ltd (ASX: GNG) to lead the PFS.

In May Barton Gold’s Optimised Scoping Study (OSS) revealed that Tunkillia has the potential to produce around 120,000 ounces of gold and 260,000 ounces of silver annually.

At current gold and silver prices, the miner said that Tunkillia is modelled to produce approximately $1.75 billion in operating profit during the first 27 months of production.

The miner’s 60,000 metre reverse circulation (RC) and 3,000m diamond (DD) drilling campaigns are scheduled for completion in September 2026 to support JORC Resource upgrades and the PFS analyses.

What did Barton Gold management say?

Commenting on the commencement of the PFS that could support the ASX All Ords gold stock over the longer term, Barton managing director Alexander Scanlon said:

Tunkillia’s OSS demonstrated the financial and capital leverage available to large-scale bulk processing operations, with robust economics driven by higher-grade ‘Starter Pits’ modelled to generate $1.75 billion operating profit during the first 2.5 years at current gold and silver prices and thus paying back development costs four times over during this time.

On the appointment of GR Engineering, Scanlon added, “We are pleased to be working again with GR Engineering, who delivered Tunkillia’s 2025 Optimised Scoping Study to a very high standard.”

Barton expects the PFS to be completed during the first quarter of calendar year 2027.

The post Guess which beaten-down ASX All Ords gold stock is pushing towards production appeared first on The Motley Fool Australia.

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• Which ASX All Ords gold stock is newly cashed up and ready for growth?
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• Record high: This ASX stock is surging on new project wins
• Why Fisher & Paykel Healthcare, GR Engineering, Kogan, and Wesfarmers shares are pushing higher

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.

Accent Group Ltd (ASX: AX1) shares are in focus on Monday after the footwear and apparel retailer responded to Frasers Group’s takeover offer.

At the time of writing, the Accent share price is down 0.68% at 73.5 cents.

That means the stock is still up almost 40% over the past month, although it remains around 20% lower since the start of 2026.

So, what did Accent have to say?

Accent tells shareholders to reject the offer

In a statement to the ASX, Accent said its Independent Board Committee has unanimously recommended that shareholders reject Frasers’ unsolicited on-market takeover offer.

Frasers is offering 65 cents cash per share for the Accent shares it doesn’t already own.

However, Accent has told shareholders to take no action and not sell into the offer.

The company warned that shareholders who accept the offer would miss out on any future upside from its strategy. They could also miss out on any higher offer from Frasers or another proposal that may come along.

Accent said it plans to set out the full reasons for its recommendation in its target’s statement.

Why did the board say no?

There were a few reasons for knocking back the offer.

Firstly, Accent said the 65 cents offer does not include a premium. It is equal to the last closing price before the offer was announced and below Friday’s closing price of 74 cents.

It also described the offer as materially inadequate. In the board’s view, it does not properly reflect the company’s strategic position, medium-term growth plans, or the benefits expected from its cost and trading program.

Furthermore, Accent took a bit of an issue with the timing.

It said the offer has landed during a weak period in the discretionary retail cycle, after its share price had already fallen over the past 12 months.

The board also pointed out that Frasers has previously paid much higher prices for Accent shares. This included $1.718 per share under a subscription agreement in May 2025 and an average price above 92 cents for on-market purchases in February.

Why Sports Direct is caught in the middle

There appears to be a lot of the disagreement on Sports Direct.

Accent pushed back on the idea that Frasers should gain more control without paying a proper control premium.

According to the company, Frasers has made clear that one of its goals is to increase its holding and gain influence over the board.

Frasers is also looking for more involvement in the Sports Direct ANZ business, which Accent described as a key strategic asset and a core part of its growth plans.

The board disagrees with a number of claims made by Frasers about Accent’s board and management, including around the Sports Direct roll-out and communication between the two companies.

What happens from here?

Shareholders will now be waiting for Accent’s target’s statement, which should provide more detail on the board’s view.

And while the takeover bid has helped support the share price, Accent is clearly arguing that 65 cents is not enough.

Now the next question is whether Frasers comes back with a better offer or digs its heels in for a longer takeover fight.

The post This ASX retail stock just rejected a takeover bid. Is a bigger offer coming? appeared first on The Motley Fool Australia.

More reading

• 6 ASX shares upgraded by analysts this week
• Is the ASX takeover target a buy?
• 5 things to watch on the ASX 200 on Thursday
• Buy, hold, sell: Accent, Karoon Energy, and Transurban shares
• Why Accent, IperionX, Northern Star, and Sigma Healthcare shares are racing higher on Monday

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

Investors searching for quality growth opportunities may want to focus on these three ASX growth shares. They have strong competitive positions, expanding earnings, and long-term growth drivers.

REA Group Ltd (ASX: REA), Aristocrat Leisure Ltd (ASX: ALL), and TechnologyOne Ltd (ASX: TNE) are leaders in their respective markets. They continue to create new opportunities for growth through innovation, scale, and strong competitive advantages.

REA Group: connecting real estate parties

REA Group has built one of Australia’s most powerful digital businesses through its flagship property platform, realestate.com.au. The ASX growth share connects buyers, sellers, renters, and real estate professionals. The company generates revenue from property listings, advertising products, and data services.

REA Group continues to benefit from resilient demand across Australia’s property market. As listing activity improves and agents compete for greater visibility, REA can increase the value of its premium products and drive revenue growth. The company is also investing heavily in artificial intelligence and new digital tools that enhance the customer experience and strengthen engagement across its platform.

What makes REA particularly attractive is its dominant market position. Property seekers naturally gravitate towards the platform with the most listings, while agents want to advertise where the largest audience is located. This powerful network effect has helped the company maintain strong pricing power and industry-leading profitability.

With Australia’s property market remaining highly active over the long term, REA appears well placed to continue delivering attractive earnings growth.

Aristocrat Leisure: global gaming leader

Aristocrat Leisure has evolved into a global gaming and entertainment technology leader. While many investors still associate this ASX growth share with poker machines, it now operates across land-based gaming, social gaming, and online gaming platforms. That gives it exposure to multiple growth markets.

The company continues to invest heavily in developing new gaming content, expanding its technology capabilities, and strengthening its digital operations. This strategy has helped Aristocrat build a diverse portfolio of revenue streams and reduce its reliance on any single segment.

A major competitive advantage is the strength of its intellectual property. Successful game franchises can generate recurring revenue over many years while creating opportunities to expand across different platforms and markets. Combined with its global scale and proven ability to develop hit content, Aristocrat has established itself as one of the highest-quality growth shares on the ASX.

As digital gaming adoption continues to increase worldwide, the company appears well positioned to benefit.

TechnologyOne: mission-critical software developer

TechnologyOne is Australia’s largest enterprise software-as-a-service (SaaS) provider. The ASX growth share develops mission-critical software for government agencies, universities, local councils, and large organisations, helping customers manage everything from finance and payroll to asset management and student administration.

The ongoing transition to its cloud-based SaaS platform has transformed the business. TechnologyOne now generates an increasing proportion of its revenue from long-term recurring subscriptions, providing highly predictable earnings and cash flow.

The ASX tech share continues to win new customers while expanding services to existing clients. It is also investing in artificial intelligence and product innovation to enhance its software offering and strengthen customer relationships. At the same time, its growing presence in the United Kingdom provides an additional avenue for expansion beyond its core Australian market.

TechnologyOne’s combination of recurring revenue, high customer retention, and scalable software economics makes it a particularly compelling growth stock.

The post 3 ASX growth shares to buy next month appeared first on The Motley Fool Australia.

More reading

• These ASX gaming stocks are rebounding. Is it for real?
• How I’d invest $250 a week in ASX shares to aim for $700,000
• How to build an ASX share portfolio that can survive a market selloff
• Why Aeris, Newmont, PLS, and REA Group shares are tumbling today
• How I’d choose the best ASX shares I could hold for 10 years

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 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.

A2 Milk Company Ltd (ASX: A2M) shares are starting the week strongly.

In morning trade on Monday, the infant formula company’s shares are up 7% to $7.20.

This compares favourably to the performance of the ASX 200 index, which is down slightly at the time of writing.

Why are A2 Milk shares jumping?

Investors have been fighting to get hold of the company’s shares this morning after it made a big announcement relating to its China business.

According to the release, A2 Milk has received approval from the State Administration for Market Regulation (SAMR) to transition the two China label infant milk formula (IMF) product registrations that were acquired in connection with the a2 Pokeno facility to a2 branded products.

The company notes that this represents the final step pursuant to the terms of its acquisition of the a2 Pokeno facility for the relevant registrations to be utilised under the a2 brand.

And with regulatory approvals now obtained, it confirmed that it no longer has the right to unwind the acquisition of the a2 Pokeno facility.

In light of this, A2 Milk advised that it expects to launch the new products later this calendar year. This is within existing expectations so there has been no change to the timing or estimated financial benefits provided to the market at the time of announcing the acquisition.

‘A significant milestone’

A2 Milk’s managing director and CEO, David Bortolussi, was pleased with the news. He said:

SAMR approval marks a significant milestone in our China growth strategy and Supply Chain transformation. It supports long-term growth in our core IMF business through market access and innovation, accelerates the development of advanced nutritional manufacturing capability, and captures attractive financial returns through incremental brand contribution and vertical margin capture.

Special dividend incoming

Also giving A2 Milk shares a boost is an update on its special dividend plans.

The company notes that it previously indicated that it would look at declaring a special dividend once the required regulatory approvals were received in connection to its China label registrations.

This morning, it advised that it expects the A2 Milk Board to convene soon with the intent to declare a $300 million special dividend that will be fully franked and unimputed.

The timing of payment and other details will be confirmed in a separate announcement once the special dividend has been declared by the Board.

The post A2 Milk shares jump 7% on big China and special dividend news appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
• Why A2 Milk, EOS, IDP Education, and SkyCity shares are charging higher today
• 3 ASX stocks UBS rates as a buy right now
• Here are the top 10 ASX 200 shares today

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.

Metcash Ltd (ASX: MTS) shares are in the spotlight on Monday.

In morning trade, the wholesale distributor’s shares are down slightly to $3.16.

This follows the release of the ASX 200 stock’s FY 2026 results.

ASX 200 stock lower on results

For the 12 months ended 30 April, Metcash reported a modest 0.2% increase in revenue (excluding charge-through sales) to $17.35 billion. Including charge-throughs, revenue increased 0.7% to $19.63 billion.

Management notes that this reflects a small decline in Food revenue, which was offset by growth in Liquor and Hardware revenue.

The ASX 200 stock’s underlying EBIT was down 0.8% to $503.7 million due to weakness in the Hardware and Liquor segments.

The Food segment delivered a strong performance in FY 2026, with EBIT increasing 5.4% to $261.8 million.  It highlights that the IGA network remains a core strength, with the large store price gap narrowing to 2.1%, making the network more price competitive than ever. Foodservice & Convenience continued its rapid expansion, supported by the integration of Superior Foods and strong demand from corporate customers.

The Liquor segment posted a resilient result, with revenue increasing 1% to $5.4 billion and market share rising to 32.3%. It notes that segment EBIT was $100.1 million, slightly lower than the prior year due to softer first half trading, but the business delivered a stronger second half as shopper demand for convenience and localised offers remained robust and inflation increased.

Although Hardware & Tools delivered revenue growth of 4.3% to $3.7 billion, EBIT was down 6.3% to $177.3 million. This reflects softer trade conditions for its Hardware retail stores in Victoria and Tasmania, partially offset by continued strength in Total Tools.

On the bottom line, Metcash recorded a 2.4% decline in underlying net profit after tax to $268.8 million. This was largely in line with consensus estimates.

The ASX 200 stock’s Board declared a fully franked final FY 2026 dividend of 9.5 cents per share, which is flat on the prior corresponding period. This brings total dividends for the year to 18 cents per share fully franked, which is in line with FY 2025’s dividends.

Management commentary

Commenting on the results, Metcash’s CEO, Doug Jones, said:

Our FY26 performance demonstrates the strength and resilience of the Metcash business model. Despite mixed trading conditions across our markets, we delivered solid earnings, strong cash generation and continued progress on our long-term strategic priorities. Our scale, our national supply chain, and our deep relationships with independent retailers remain powerful competitive advantages. We now support ~105,000 customers, ~6,300 bannered stores and reach ~95% of Australians – a unique platform that continues to generate resilient, high-quality cashflows.

We are winning with independents because we combine the benefits of scale with the agility and community connection of local ownership. This combination is difficult to replicate and continues to underpin our performance across all pillars.

Outlook

The ASX 200 stock revealed that sales have made a steady start to FY 2027 and are up 1.7% during the first seven weeks. This reflects softer trading conditions in May followed by a clear improvement in June.

Management appears confident it can build on this. It stated:

Metcash enters FY27 with strong momentum across its core businesses. Foodservice & Convenience continues to scale rapidly, Liquor remains resilient with growing market share, and Hardware & Tools is positioned for margin recovery through its strategy reset and as market conditions improve. The Group expects to continue strengthening its competitive advantages, expand its digital and AI-enabled capabilities, and support independent retailers to win in their local communities.

The post ASX 200 stock drops on FY 2026 results appeared first on The Motley Fool Australia.

More reading

• Metcash shares: FY26 profit edges lower, dividend maintained
• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Why might Pro Medicus shares soon be under pressure?
• 2 ASX shares highly recommended to buy: Experts

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.

Diversified industrial and energy company SGH Ltd (ASX: SGH) has announced a $500 million buyback to run for the next 12 months.

The news is likely to add more share price upside to the company, which broker Morgans already has a buy rating on, along with a bullish share price target.

I’ll get to that shortly. First, let’s look at what the company has announced.

Strong balance sheet adds options

SGH said in a statement to the ASX that it would conduct an on-market buyback, starting on about August 11, coinciding with the release of the company’s FY26 results.

The company added:

The buy-back reflects SGH’s disciplined approach to capital management. Following a sustained period of strong operating cash flow and de-leveraging, SGH’s leverage has reduced below its through-the-cycle target of 2.0x (Adjusted Net Debt to EBITDA). The buyback will not constrain SGH’s ability to continue investing in its businesses or to pursue inorganic growth at scale. The program has been sized so that SGH retains substantial balance sheet capacity and the financial flexibility to fund organic investment and to act on material growth opportunities as they arise.

SGH said the final size of the buyback would depend on several factors, including market conditions, “and any unforeseen developments or circumstances that may arise in the course of the buyback”.

Analysts like the medium-term vision

Morgans recently issued a research note to its clients following an investor day held by SGH management.

They said the company set out a medium-term strategy to deliver 10% EBIT growth along with a near doubling of market capitalisation.

They added:

These ambitions are set against a track record of growing organically, while acquiring industrial businesses, improving operational performance and cash generation. SGH takes an entrepreneurial approach to leverage, gearing up to acquire what it perceives as ‘privileged assets’, with operational improvements then driving a quick deleverage.

SGH owns Caterpillar dealer Westrac, equipment hire company Coates, construction materials company Boral, plus stakes in Beach Energy Ltd (ASX: BPT), and Southern Cross Media Group Ltd (ASX: SXL).

It also has a stake in Shell‘s Crux offshore gas project.

Morgans said the company had compounded EBIT at a compound annual growth rate of 18% for more than a decade, aided by its acquisition strategy.

The analyst team at Morgans said future catalysts for the company included first gas from Crux, expected in the first half of FY28, and the group-wide deployment of AI.

They said the company was “trading at a sub-market multiple, with above-market growth”.

Morgans has a price target of $52.75 on SGH shares compared to $43.27 currently.

The post These ASX shares were buy rated even before today’s $500m buyback. How high could they go? appeared first on The Motley Fool Australia.

More reading

• SGH announces $500m buy-back and highlights financial strength
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• Buy, hold, sell: Flight Centre, SGH, and Navigator Global shares
• This ASX industrials stock could be set to race 20% higher: Expert
• 5 things to watch on the ASX 200 on Monday

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.

The Metcash Ltd (ASX: MTS) share price is in focus after the wholesale distributor reported a steady result for the year ended 30 April 2026, with group revenue up 0.2% to $17.35 billion and underlying EBITDA rising 1.9% to $761.7 million.

What did Metcash report?

• Group revenue increased 0.2% to $17.35bn. Including charge-through sales, total revenue rose 0.7% to $19.63bn.
• Underlying EBITDA increased 1.9% to $761.7m.
• Underlying profit after tax fell 2.4% to $268.8m.
• Net profit attributable to members was $279.1m, down 1.5% year-on-year.
• Fully franked final dividend of 9.5 cents per share declared, bringing total FY26 dividends to 18.0 cents per share.

What else do investors need to know?

Metcash reported good progress across its main business pillars. Its Food division saw EBIT lift 5.4% to $261.8m, with ex-tobacco sales growing 5.4%, though overall revenue was flat due to lower tobacco sales. Liquor revenue ticked up 1.0% to $5.4bn, with EBIT softening to $100.1m. Hardware & Tools delivered 4.3% revenue growth, though EBIT eased 6.3% to $177.3m, reflecting quieter trading conditions in some regions.

The company made a series of acquisitions, including Steve’s Liquor Warehouse and a 75% stake in Holliman’s Rural, expanding its presence in liquor retailing and regional markets. It also completed the integration of its Total Tools and Independent Hardware Group businesses and continued investing in Program Horizon, a long-term technology overhaul.

What’s next for Metcash?

Metcash reports a steady start to FY27, despite softer trading in May 2026 as some customers felt cost-of-living pressures. Conditions have since stabilised, with June trading tracking ahead of last year for both Food and Liquor. Hardware & Tools is showing continued second-half momentum, especially within the Total Tools brand. The business remains focused on improving competitiveness and supply chain capability, with a technology-led future as a goal for FY27 and beyond.

The board maintained its commitment to investing in the network while returning value to shareholders, underscored by the consistent dividend payout.

Metcash share price snapshot

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

View Original Announcement

The post Metcash shares: FY26 profit edges lower, dividend maintained appeared first on The Motley Fool Australia.

More reading

• ASX 200 stock drops on FY 2026 results
• SGH announces $500m buy-back and highlights financial strength
• AFIC reveals 2026 dividend plans for shareholders
• a2 Milk Company gets China approval and plans $300m dividend
• 5 things to watch on the ASX 200 on Monday

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.

ASX gaming stocks have found their way higher again this month, giving investors some relief after a difficult, volatile start to 2026.

Shares in Aristocrat Leisure Ltd (ASX: ALL) have climbed approximately 6% over the past month, while Light & Wonder Inc (ASX: LNW) has surged around 13% over the same period. By comparison, the S&P/ASX 200 Index (ASX: XJO) has gained just 2.5%.

While both shares have clawed back some of their earlier-year losses, they still have significant ground to make up. Aristocrat remains roughly 33% below its 52-week high, while Light & Wonder is still sitting about 51% beneath its peak.

The question now is whether this latest rally in the two ASX shares marks the start of a sustained recovery or is merely a temporary bounce.

Aristocrat Leisure: Quality business, strong outlook

Aristocrat is one of the world’s largest gaming technology companies, generating revenue through gaming machines, casino systems, and digital mobile games.

The ASX gaming stock has continued to benefit from the resilience of its land-based gaming operations and the growing contribution from its digital segment. Investors have also responded positively to management’s focus on expanding its portfolio of premium gaming content and investing in long-term growth opportunities.

A key strength for Aristocrat is its market-leading position in gaming machines, particularly in North America, where it consistently ranks among the industry’s top suppliers. The company also boasts a strong balance sheet and substantial cash generation, providing flexibility for acquisitions and shareholder returns.

However, risks remain. Consumer spending weakness, slower casino capital expenditure, and regulatory changes across gaming markets could all weigh on future earnings growth. Competition within the mobile gaming sector also remains intense.

Despite these challenges, brokers are incredibly bullish on Aristocrat’s prospects. The majority maintain strong buy recommendations on the ASX 200 stock and believe its share price can continue moving higher over the next 12 months.

Consensus forecasts currently imply potential upside of around 26%, with the most optimistic target price sitting at $69.40 per share at the time of writing.

Light & Wonder: Recovery story gaining momentum

Light & Wonder operates across gaming machines, digital gaming content, and lottery services. The company has spent recent years transforming its business, streamlining operations, and focusing on higher-margin growth opportunities.

Investors appear increasingly confident that this strategy is delivering results. Recent gains in the share price have been supported by ongoing growth in gaming machine placements, strong performance from its digital division, and continued momentum within its lottery operations.

One of Light & Wonder’s biggest strengths is its diversified business model. Unlike many gaming companies that rely heavily on a single segment, the ASX gaming stock benefits from multiple revenue streams across land-based and digital gaming markets.

The main risk facing investors is valuation sensitivity to earnings growth. Any slowdown in gaming demand or weaker-than-expected execution could quickly impact sentiment. Legal and regulatory developments also remain areas investors should monitor closely.

Nevertheless, brokers see substantial upside ahead. Macquarie recently set a $200 price target on the stock, while Bell Potter’s latest 12-month target is $192 per share.

If Light & Wonder were to reach that target range over the next year, it would represent a gain of approximately 50% to 55% from current levels.

The post These ASX gaming stocks are rebounding. Is it for real? appeared first on The Motley Fool Australia.

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