Tag: Stock pick

Global Lithium Resources Ltd (ASX: GL1) shares have jumped substantially in recent weeks, as the company has secured key approvals for its Manna lithium project in Western Australia.

The shares are up slightly more than 200% over the past 12 months, but the analyst team at Shaw and Partners believe the share price has a long way to go yet.

They’ve got a buy rating on the shares, and a very bullish share price target, which I’ll get to shortly.

First, let’s look at the company’s recent announcements.

Approvals coming thick and fast

Firstly, in early August, GL1 announced that it had received approval for the Mining Development and Closure Proposal (MDCP).

The company said at the time:

The approved MDCP enables the establishment of important early works and critical infrastructure at the Manna mine site, directly supporting the integrated Manna-Nova strategy. The proposed Manna mine, located 110km east of Kalgoorlie-Boulder, is planned to operate for at least 14 years. The Project’s MDCP approval contemplates the development of multiple open pits, comprising one main (Manna Main) and two satellites (Manna North and Manna South), waste rock and dry stack tailings, ore stockpiles, accommodation village, bore field, topsoil stockpile areas and associated mining infrastructure.

The company said the approval would also give more confidence to a final investment decision for the mine, which is targeted for the fourth quarter of 2026, with the first direct shipping ore then targeted for the second quarter of 2027.

Then on 20 August, GL1 announced it had received the Native Vegetation Clearing Permit for the mine, completing the primary state approvals needed to begin early works. The company’s groundwater licence was also approved.

GL1 Managing Director Dr Dianmin Chen said:

Three major approvals in a fortnight is a credit to the professionalism of DMPE and DWER and to the depth of our own team’s technical work. Manna is now cleared on the ground, cleared to take water, and ready to move into construction. These approvals pave the way for starting early works and then mining operations at Manna, which will generate jobs, boost economic activity in the region, and benefit all stakeholders including our local communities for many years to come.

Global Lithium Resources shares looking cheap

Shaw and Partners said GL1 had substantially derisked the Manna project by securing the approvals.

The broker added:

Instead of committing to a standard greenfield build, GL1 management’s capital-light approach has successfully preserved Manna’s cash and strategic optionality. This positions Manna to capture the near-term market window, where lithium prices are expected to benefit from sustained supply deficits and growing demand over the next three years.

Shaw and Partners has a price target of $1.75 on GL1 shares, compared to 67.5 cents currently.

The post Up more than 200% over a year, could this ASX lithium company double again? appeared first on The Motley Fool Australia.

More reading

• What ASX reporting season share price swings really mean
• How high do UBS and Macquarie think Zip shares will go?
• Why is the Bitcoin price rocketing 16% this week?
• Buy, hold, sell: Fortescue, Northern Star, and Megaport shares
• Could this ASX portfolio make work optional at 55?

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.

Reporting season can make the share market look ridiculous.

A company reports rising revenue and profit, only for its share price to sink. Another company remains unprofitable, yet its share price rockets higher.

These reactions can appear irrational. However, they make more sense once investors understand that the market is not simply grading the result.

It is grading the surprise.

A voting machine and a weighing machine

Benjamin Graham, the investor and author who mentored Warren Buffett, famously said:

“In the short run, the market is a voting machine, but in the long run, it is a weighing machine.”

Reporting season provides a perfect demonstration.

In the short term, investors are voting on whether a result was better or worse than expected. Those expectations have been shaped by broker forecasts, company guidance, industry conditions, and the narrative surrounding the business.

If a company reports a $50 million loss when analysts feared a $100 million loss, its shares could rise sharply. The business still lost money, but the result was better than expected.

Meanwhile, a company might increase revenue by 20%, only to see its share price tumble because the market expected 30% growth, margins contracted, or management issued a weaker outlook.

The number matters, but the gap between the number and expectations often matters more on the day.

Codan shares jump on strong results

Codan Ltd (ASX: CDA) shares closed more than 12% higher after the technology company released its FY26 results.

Codan reported a 30% increase in revenue to $875 million and a 69% rise in net profit after tax to $175.2 million. Its full-year dividend increased by 70% to 48.5 cents per share.

Importantly, Codan also said its communications division had entered FY27 strongly. That forward-looking commentary gave investors new information to weigh, despite Codan having already upgraded its FY26 profit guidance in April.

Zoom out further and the relationship becomes clearer. Codan shares have more than doubled over the past 12 months while the company’s revenue, profit margins, and earnings have risen strongly.

The daily jump was a vote on the latest result and outlook. The longer-term rise increasingly reflects the growing weight of the business.

Why IDP Education shares crashed

IDP Education Ltd (ASX: IEL) provided the other side of the lesson.

Its shares closed more than 20% lower following the release of the company’s FY26 results.

IDP reported adjusted operating earnings (EBITDA) of $122.9 million, within the guidance range provided earlier in the year. The company also produced strong cash conversion and reduced its overhead cost base by more than originally targeted.

However, the market was more interested in what came next.

Looking ahead, IDP expects challenging market conditions to persist in FY27, with tightening migration and student visa policies likely to weigh on volumes for a third year.

IDP shares are now down around 64% over the past 12 months. Over that period, the company’s revenue and profits have fallen steeply.

Again, the one-day move was a vote on expectations. The longer decline has increasingly weighed the deterioration in earnings.

Foolish takeaway

Reporting-day volatility should not be ignored, but it should be interpreted in context.

The first question is what the market expected. The second is what has genuinely changed. The third is whether that change matters to the company’s earnings power several years from now.

Investors can then examine the outlook, margins, cash flow, competitive position, and management’s capital allocation. These factors usually matter far more than whether a company narrowly beat or missed a broker forecast.

Sometimes a violent share price move signals a genuine structural change. Other times, it is simply a reaction to expectations that were too optimistic or pessimistic.

That distinction is why short-term market timing is so difficult. Investors must correctly predict the result, what everyone else expected, and how the market will react to the difference.

Over longer periods, much of that noise fades. Share prices may still wander, but earnings, cash flow, and business quality gradually place more weight on the scales.

The post What ASX reporting season share price swings really mean appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• IDP shares crash 24% to historic low on Thursday: What happened?
• Codan FY26: Profit surges 69% with higher dividend
• IDP Education posts steep FY26 profit drop but stays on transformation track
• These 2 oversold ASX shares look super cheap right now

Motley Fool contributor Leigh Gant 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.

Shares in Zip Co Ltd (ASX: ZIP) surged more than 18% on Thursday after the company reported its full-year results, begging the question, are the shares now fully priced?

While the shares jumped significantly on Thursday, they are 9.3% lower over a 12-month period after pulling back 7.2% on Friday morning to $2.83.

The analysts at Macquarie have had a look at the results and have come up with an outperform rating on the stock, and a bullish share price target which I’ll get to shortly.

The team at UBS are also bullish on the company.

Before we get to what the analysts are saying, let’s look at what Zip announced this week.

Large jump in earnings underpinned Zip share price surge

The buy now, pay later service provider on Thursday announced record cash EBTDA of $268.9 million, up 57.9% on the previous year.

Total transaction volume (TTV) grew to $16.7 billion, up 27.2%, while the number of merchants on Zip’s platforms increased 13.8%.

Zip Chief Executive Officer, Cynthia Scott, said regarding the result:

Consistent execution has built the platform to deliver our next phase of growth and innovation. In FY26, we exceeded our targets with record cash earnings of $268.9m, up 57.9%, underpinned by material cash earnings growth in both markets. We maintained strong unit economics, expanded operating leverage and reinforced the value of our differentiated business model. Our focus on exceptional customer experiences is translating into stronger engagement. In the US, we achieved more than 40% growth in both TTV and revenue for a second consecutive year while adding new customers at scale. In ANZ, we returned to revenue and Australian receivables growth, led by the continued success of our Zip Plus product.

Ms Scott said Zip was targeting cash earnings of $340 million in FY27, which would be a 26% increase.

Brokers like the look of Zip shares

UBS said in its note to clients that the outlook for the current year was better than expected, providing comfort around the defensive qualities of the buy now, pay later business model through slowing economic times.

UBS said:

Whilst macro remains key uncertainty into FY27, we have increased confidence around Zip’s defensive quality and ability to drive customer growth and transaction frequency. Our US TTV growth forecast of +30% in FY27 is comprised of 9% customer growth and 19% TTV/customer growth, which we view achievable.

UBS has a price target on ZIP shares of $4.70.

Macquarie said “Zip’s outlook remains attractive as management executes the market opportunity in the US, supported by performance in AU”.

Macquarie has a price target of $3.50 on Zip shares.

Zip is valued at $3.8 billion.

The post How high do UBS and Macquarie think Zip shares will go? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 7 ASX 200 shares with reaffirmed buy ratings this week
• Buy, sell, hold: Dexus, APA, Zip shares
• Why Megaport, Northern Star and Zip shares are turning heads on Thursday
• Zip Co reports record FY26 earnings and outlines growth strategy

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

The Bitcoin (CRYPTO: BTC) price has been on fire this week.

The world’s first and biggest crypto by market cap really took off on Wednesday.

It’s currently trading for US$73,307, up 15.6% since this time last week, according to data from CoinMarketCap.

While BTC remains down 42% from the all-time high of US$126,198 it reached on 7 October last year, this week’s rally will certainly come as welcome news to crypto investors awaiting a rebound.

So, what’s driving the strong gains?

What’s boosting the Bitcoin price?

Last month, the Bitcoin price briefly caught some tailwinds after United States Treasury Secretary Scott Bessent said that the US’ crypto regulating Clarity Act looked set to get the green light from Congress.

The Clarity Act is intended to give the SEC and the CFTC departments oversight into crypto trading. If passed, it could fully open the door to trading in cryptos like Bitcoin and Ethereum (CRYPTO: ETH) in US stock markets.

However, with the Clarity Act now stalled in Congress, those tailwinds have faded.

But crypto investors still have Bessent to thank for the big boost in the Bitcoin price this week. Not to mention the Ethereum price, which at US$2,345, is up 24.6% since last Friday. The world’s number two crypto by market cap hit its own all-time high of US$4,954 on 25 August 2025.

On Wednesday, Bessent announced the US Treasury Department will at least double the amount of longer-dated treasuries it plans to buy back to address surging bond yields. He said this “could be more than the $4 billion” size the administration initially planned.

While yields have yet to sustainably fall, the Bitcoin price took off on the hopes that the decades’ high borrowing costs in the world’s top economy may come off the boil.

And with US government debt topping US$40 trillion this week, the debasement trade – where investors buy assets like gold or crypto as a hedge against a decaying greenback – appears to be back on.

“The market read this as a quiet form of quantitative easing, a move that weakens the dollar and sends scarce, debasement-hedge assets like Bitcoin higher,” Matt Mena, senior strategist at 21Shares, said (quoted by Fortune).

Looking to what may be ahead for the Bitcoin price, Zach Pandl, Grayscale’s head of research, speculated:

Our best guess is that Bitcoin potentially bottomed at $58,000 earlier this summer… and [that] it’s a compelling time for investors with longer-term horizons to be allocating to Bitcoin and the crypto asset class.

The post Why is the Bitcoin price rocketing 16% this week? appeared first on The Motley Fool Australia.

More reading

• Amid big swings in the Bitcoin price, can the crypto really help diversify your investment portfolio?
• ASX shares or crypto? Here are the benefits and risks of each
• What could spark a Bitcoin price rebound in 2026?
• Down 48%, why a Bitcoin price rebound may be off the cards
• Could US lawmakers drive a rebound in the beaten-down Bitcoin price?

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

Looking for some new portfolio additions?

Well, it could pay to hear what Morgans is saying about the popular ASX shares in this article. Are they buys, holds, or sells? Here’s what you need to know:

Fortescue Ltd (ASX: FMG)

Morgans notes that this iron ore giant delivered a mixed FY 2026 result with flat earnings.

In light of this, the broker has retained its hold rating with a reduced price target of $18.70. It said:

A mixed FY26 result from FMG, with higher revenue helping to offset cost increases and elevated admin/R&D to help keep underlying earnings flat. With the focus on FY27 guidance, Iron Bridge remained a key issue, with the magnetite operation struggling through ramp up and with elevated costs. Plans for a green steel plant was big news, although difficult to quantify. We maintain a HOLD rating, with an A$18.70 target price (was A$21.80).

Megaport Ltd (ASX: MP1)

The broker was impressed with this network-as-a-service company’s results and guidance for FY 2027.

In response, the broker has upgraded Megaport shares to a buy rating with a $25.00 price target. It commented:

MP1’s FY26 underlying EBITDA and FY27 EBITDA guidance were above market expectations. Both Network and Compute delivered record growth. At first glance, simple maths suggests MP1’s funding position looks tight. However, there is nearly $500m of additional funding that got lost in translation. We think MP1 ends FY27 with nearly $600m of surplus liquidity (assuming no new deals get signed). 

Deals already contracted deliver $620m of annualised contracted EBITDA which means after EBITDA lifts 3x YoY in FY27, it will more than double into FY28, based on deals already signed. We upgrade to a Buy recommendation and $25 target price.

Northern Star Resources Ltd (ASX: NST)

Finally, following the release of an FY 2026 result that was in line with expectations, Morgans has downgraded this gold miner’s shares to a hold rating with a $25.00 price target. 

Commenting on the downgrade, Morgans said:

FY26 result was in line with a 30cps final dividend beating both MorgansF and consensus, while FY27 guidance met expectations at the headline level despite KCGM ramp-up risk. Move to a HOLD (previously ACCUMULATE) with a A$25ps target price. We expect the near-term valuation discount to persist until operating & strategic clarity improves post KCGM ramp-up and new CEO beginning in October.

The post Buy, hold, sell: Fortescue, Northern Star, and Megaport shares appeared first on The Motley Fool Australia.

More reading

• Are Fortescue shares in the buy zone after its results?
• 10 ASX 200 shares downgraded by analysts this week
• Everything you need to know about the new Fortescue dividend
• Why Megaport, Northern Star and Zip shares are turning heads on Thursday
• Why is the Fortescue share price on a rollercoaster today?

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

Retirement is usually presented as a switch. One day you work. The next day you stop, roll onto income from your superannuation. Additionally, some may also utilise the Age Pension to fill any gaps.

However, financial independence does not need to be that binary.

A more useful goal may be to build an investment portfolio that makes full-time work optional by 55. You might still work, run a business, or take on projects. The difference is that a portfolio now pays part of the household bills, giving you greater freedom to choose the work that deserves your time.

That is not retirement. It is leverage over your own life.

The portfolio outside superannuation

There is one important catch. According to the Australian Taxation Office, Australians can generally access super when they reach preservation age and retire, or after turning 65 regardless of whether they are still working. For anyone currently approaching 55, preservation age is 60.

That means a portfolio designed to create freedom at 55 needs to sit largely outside superannuation. It can operate as a five-year bridge before super becomes available, then continue providing income alongside super after 60.

The target also becomes less intimidating when the goal is supplemental income, not replacing an entire salary.

At an illustrative 4% dividend yield, a $300,000 portfolio could produce $12,000 a year before tax. A $500,000 portfolio could produce $20,000, while $750,000 could produce $30,000.

None of those amounts may fund a lavish retirement alone. But an extra $20,000 or $30,000 could make a four-day week possible, support a lower-paid role with more personal meaning, or provide breathing room to build a business without demanding an immediate full-time income.

Build for growth before switching to income

The mistake would be chasing the highest dividend yield from day one.

An investor with a decade or more before 55 may be better served by focusing on total returns: businesses that can grow earnings, reinvest capital, and increase dividends over time. Distributions can be reinvested while employment income still covers living costs.

Broad exchange-traded funds can provide a diversified foundation. The Vanguard Australian Shares Index ETF (ASX: VAS) holds a broad portfolio of Australian shares, while the Vanguard MSCI Index International Shares ETF (ASX: VGS) provides exposure to developed markets outside Australia.

Individual ASX shares could sit around that core, but income quality matters more than headline yield. Sustainable dividends are normally supported by durable cash flow, sensible payout ratios, and strong balance sheets. A yield that looks unusually high can also be the market warning that a dividend cut is coming.

As 55 approaches, the portfolio does not need to be rebuilt overnight. An investor could simply stop reinvesting distributions, direct new money towards income-producing assets, and build a cash buffer. Selling appreciated investments may trigger capital gains tax, another reason a gradual transition can make sense.

What happens to the Age Pension?

The Age Pension currently begins at 67 and is subject to income and assets tests. Shares, cash, and other financial investments can affect how much someone eventually receives, while Centrelink uses deeming rules to assess income from financial assets.

Building a substantial portfolio could therefore reduce or eliminate future Age Pension access.

However, that is not necessarily a failed outcome. A larger pool of productive assets may provide more income, flexibility, and control than arranging an investment life around a government threshold that remains 12 years away at age 55.

Foolish takeaway

The most valuable thing an ASX portfolio can buy at 55 may not be retirement. It may be choice.

A portfolio producing $20,000 or $30,000 a year will not make work disappear. It can change the role work plays, from financial necessity to a decision made on your own terms.

That is financial independence in a more practical form: not retiring early, but earning the right to choose early.

The post Could this ASX portfolio make work optional at 55? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Fortescue, Northern Star, and Megaport shares
• Rural Funds Group FY26 earnings: Asset sales boost profit
• Why were Goodman shares just downgraded?
• Perpetual reveals $63.5m impairment after major fund redemption
• Corporate Travel Management updates UK remediation progress and settlement terms

Motley Fool contributor Leigh Gant 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 Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Rural Funds Group (ASX: RFF) share price is in focus today after the company reported full-year earnings of $124.1 million, a rise of $103.8 million mostly thanks to asset sales above book value and interest rate swap gains. Distributions per unit were steady at 11.73 cents, in line with forecasts.

What did Rural Funds Group report?

• Statutory earnings of $124.1 million, up $103.8 million year on year
• Net property income of $100.5 million, a 5.7% increase
• Adjusted funds from operations (AFFO) of 11.7 cents per unit, meeting forecasts
• Distributions per unit of 11.73 cents, unchanged and in line with guidance
• Adjusted net asset value (NAV) of $3.22 per unit, up 4.5% on the prior year
• FY27 forecast: AFFO and distributions both expected to remain steady at 11.7–11.73 cents

What else do investors need to know?

RFF sold $314.9 million in assets during the year, including six properties and water entitlements, at an average 18% premium to book value. These sales strengthened the balance sheet, reducing pro forma gearing to 31.8%, which sits comfortably within the target range.

The Group continues to focus on capital recycling and development, with FY27 forecast capital expenditure of $46.7 million. This investment is fully supported by available bank debt headroom of over $300 million and is aimed at expanding the productivity of its macadamia orchards and irrigated cropping properties.

What’s next for Rural Funds Group?

Looking ahead, the company expects AFFO and quarterly distributions to remain unchanged in FY27. There are also staged developments underway on two properties, aiming to drive future earnings. Management highlighted continued focus on defensive, inflation-hedged agricultural assets and enhancing portfolio value through selective development and leasing activity.

RFF’s long WALE of 14.8 years and quality tenant base, with nearly 90% of forecast income from corporate or institutional lessees, provide a steady foundation as the company seeks fresh growth opportunities.

Rural Funds Group share price snapshot

Over the past 12 months, Rural Funds Group shares have risen 11%, outperforming the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post Rural Funds Group FY26 earnings: Asset sales boost profit appeared first on The Motley Fool Australia.

More reading

• 3 top ASX dividend shares to buy now
• How much do I need to retire on $100,000 a year at 60?
• How much is needed in superannuation to target a $2,000 monthly passive income?
• 1 ASX dividend stock down 30% I’d buy right now
• How much is needed in superannuation to target a $90,000 annual passive income?

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 positions in and has recommended Rural Funds Group. 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.

Goodman Group (ASX: GMG) shares have been out of form this year.

So much so, on a 12-month basis, the industrial property giant’s shares have lost around 20% of their value.

But with Goodman’s FY 2026 results out of the way, is now a good time to buy its shares? Let’s see what the team at Bell Potter is saying.

What is Bell Potter saying?

Bell Potter notes that Goodman delivered a result in line with expectations for FY 2026. It commented:

GMG announced its FY26 result with operating EPS of 129.9c (+10% y/y growth) in line with BPe and VA consensus, c.1% above full year guidance. FY27 operating EPS guidance established at +9% growth y/y which implies 141.6c (BPe 141.2c (+9% y/y), VA consensus 143.7c (+11% y/y)), with DPS guidance of 30.0c maintained (in line with BPe, VA consensus for 30.4c).

The broker also highlights that Goodman’s development work in progress (WIP) has increased materially. It adds:

Development WIP has increased a material +37% h/h with data centres now comprising 78% of the total WIP (was 57% pcp). This is driving development yield on costs higher to 8.2% (was 7.5% pcp), as well as margins (not quoted, but GMG is ULIRR aware) and production rate (>$8b pa vs. <$6bn pa FY25).

Goodman shares downgraded

Despite the positives from the result, Bell Potter has become less bullish on the investment opportunity here.

According to the note, the broker has downgraded Goodman shares to a hold rating (from buy) with a reduced price target of $32.65 (from $33.95). This compares to its current share price of $28.78.

Commenting on the downgrade, Bell Potter said:

We downgrade to Hold (was Buy). GMG has a long and rich history in customer and capital partner-focused execution of quality product delivery, and while we continue to expect that to be the case, we do think that FY27 is likely another year of building blocks that requires substantial operating cash outflow with milestones (customer leasing, partnerships, commensurate cash returns on cost) that will take some time to build out amongst a competitive peer set.

We adjust our FY27-FY29 EPS estimates by -1% to 1% to reflect: (1) half year actuals; (2) development WIP / DC capex and returns; and (3) net borrowing gains.

The post Why were Goodman shares just downgraded? appeared first on The Motley Fool Australia.

More reading

• Goodman Group FY26 earnings: Profit up 15.7% on data centre demand
• 5 things to watch on the ASX 200 on Thursday
• 3 ASX 200 shares I’d buy for the next decade
• Rate rises have finally caught house prices. What does that means for ASX property shares?
• Goodman Group secures 20-year data centre lease at Tsukuba Tech Central in Japan

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

The Perpetual Ltd (ASX: PPT) share price is in focus after the company flagged a non-cash impairment charge of A$63.5 million, following a major client redemption in its asset management unit.

What did Perpetual report?

• Non-cash impairment charge of A$63.5 million against goodwill for TSW
• Impairment recognised as a Significant Item in FY26 statutory results
• Redemption of approximately US$4.6 billion from TSW International Equity strategy expected in Q2 FY27
• No impact on Perpetual’s liquidity, banking covenants, or UPAT

What else do investors need to know?

Perpetual received notice last week from a client of Thompson, Siegel & Walmsley LLC (TSW) regarding the planned redemption. Although the redemption will occur in the next financial year, accounting standards require the resulting impairment to be recognised in the FY26 results.

The impairment is non-cash and will not affect Perpetual’s liquidity position or dividend payout ratio, as it doesn’t impact UPAT. The charge also does not affect Perpetual’s compliance with banking covenants.

Perpetual will provide a full update on FY26 results—including the final impact of the impairment—on 27 August 2026.

What’s next for Perpetual?

Looking ahead, investors will be watching for further clarification in Perpetual’s upcoming FY26 results announcement. The company remains due to release audited financial statements and further guidance on 27 August 2026.

Perpetual emphasised that its underlying profit and ability to pay dividends are not affected by this impairment charge. The business continues to focus on its broader asset management strategy and client service.

Perpetual share price snapshot

Over the past 12 months, Perpetual shares have declined 9%, trailing the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post Perpetual reveals $63.5m impairment after major fund redemption appeared first on The Motley Fool Australia.

More reading

• These were the best-performing ASX 200 shares in July
• Perpetual lifts AUM, advances Wealth sale in Q4 FY26 update

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 Corporate Travel Management Ltd (ASX: CTD) share price remains suspended but that hasn’t stopped the company announcing that it has reached agreements with 86% of its key impacted UK customers and confirmed the major terms of its customer remediation process.

What did Corporate Travel Management report?

• Secured binding offers from UK customers covering GBP 102 million out of a total estimated GBP 118 million liability
• Will refund GBP 87 million to these customers, with GBP 11 million already paid
• Remaining GBP 76 million to be refunded on a staged basis through to 30 September 2027
• Agreed to pay GBP 12 million to settle further UK contract uncertainties, including GBP 6 million for 1HFY26
• Continues final negotiations with customers accounting for GBP 16 million of the remaining liability

What else do investors need to know?

The company is in advanced talks with lenders to secure financing for both its client remediation obligations and ongoing business needs. These funding arrangements are expected to be announced soon.

These agreements are a significant step forward in resolving historical issues within CTM’s UK operations, helping pave the way for the release of FY25 audited financial statements. Final negotiations with a small number of remaining UK customers are progressing.

What did Corporate Travel Management management say?

Ana Pedersen, Managing Director and Group CEO, said:

Reaching agreements with impacted UK customers representing 86% of the total estimated liability is a major milestone for CTM and reflects our commitment to doing the right thing by customers. These outcomes are the result of months of constructive engagement between CTM, its advisers and affected customers, whose cooperation and support throughout this process has been greatly appreciated.

Importantly, these agreements demonstrate that we can address legacy matters responsibly while continuing to deliver the high-quality service and support our customers rely on for their travel needs. We remain focused on completing the remaining steps required to seek reinstatement of CTM’s shares to trading on the ASX and look forward to updating shareholders on our progress.

What’s next for Corporate Travel Management?

CTM expects to finalise negotiations with the few remaining clients in the coming period, clearing the path to resolving its UK business issues. The company is also seeking to secure new financing and aims for reinstatement of its shares on the ASX once all requirements are met.

Management has indicated it will continue working closely with stakeholders to maintain service quality and restore confidence among its shareholders and clients.

Corporate Travel Management share price snapshot

Over the past five years, the Corporate Travel Management share price has lost 25% of its value.

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The post Corporate Travel Management updates UK remediation progress and settlement terms appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. 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.