Tag: Stock pick

The CSL Ltd (ASX: CSL) share price had its best day in recent memory on Tuesday.

The biotech giant’s shares ended the day 17% higher at $157.82 following the release of its FY 2026 results.

Is it too late to buy CSL shares? Let’s see what Bell Potter is saying.

What is the broker saying?

Bell Potter notes that CSL delivered a result in line with guidance for FY 2026. And while weak on paper, the broker was pleased to see the key CSL Behring business rebound in the second half. It said:

NPATA declined -2% to $3.14b (cc) and was in line with $3.1b guidance. Revenue declined -1% to $15.37b (cc) and was above the $15.2b guidance. FX lifted reported revenue to $15.8b (above VA cons and BPe of $15.4b) but dragged down reported NPATA to $3.10b (in line with VA cons and BPe of $3.1b). 

The biggest highlight was in Behring, particularly the rebound in 2H26 Ig sales (+7% at cc or +11% reported) and to a lesser degree albumin declining less than feared (-5% at cc or -1% reported). The excess Ig supply imbalance that was prevalent earlier in CY26 now appears to have largely returned to normalcy based on comments from CSL and its main rivals Takeda and Grifols. Behring gross margin however continued to face pressures, with 2H gross margin of 48.2% the lowest half-yearly result since at least FY17.

The broker also highlights that CSL’s FY 2027 guidance was above expectations. It adds:

FY27 guidance for underlying NPAT +5% (cc) is above the +1% growth consensus had been expecting based on the old metric of NAPTA, hence the downgrade cycle has likely eased for the first time in several results despite the expected drag from Vifor in FY27. Investors will have also been buoyed by FY27 guidance for Behring growth at mid-single digits and an expectation of a turnaround in the Behring GM by ~70bps. We have revised our forecasts following the result and guidance, resulting in upgrades of 8%/6%/6% at the NPATA line across FY27/28/29.

Is the CSL share price in the buy zone?

Despite the positives, Bell Potter is sitting on the fence when it comes to the CSL share price.

According to the note, the broker has retained its hold rating with an improved price target of $150.00 (from $120.00).

Commenting on its recommendation, Bell Potter believes that CSL’s shares are fully valued at current levels. It said:

Based on the new underlying NPAT metric, CSL trades on a PE multiple of ~19x FY26 and ~18x FY27 earnings, with flat revenue growth and low-to-mid single digit earnings growth expected for FY27. While the result today suggests the worst (by way of earnings declines) is in the rear-view for CSL, we find it difficult to justify a greater premium than is now being attributed relative to global biopharma peers.

The post Is the CSL share price in the buy zone after the biotech giant’s results? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• CSL shares surge 18% as ‘reset year’ points to a return to growth
• Why is everyone talking about CSL, Pro Medicus and BHP shares on Tuesday?
• How to find ASX shares that Warren Buffett might buy

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

Commonwealth Bank of Australia (ASX: CBA) shares have had a tough two week run.

In late afternoon trade on Tuesday, shares in the S&P/ASX 200 Index (ASX: XJO) bank stock were down 1.3%, changing hands for $162.84 apiece.

That marks the eighth consecutive day of losses for Australia’s biggest bank stock. And it sees CBA shares down 9.5% since market close on 6 August, the last day the stock closed in the green.

That’s certainly unwelcome news for longer-term shareholders.

But if you bought shares in the ASX 200 bank yesterday, and held them at market close, then you’ll be getting the all-time high dividend payout management declared when CommBank released its full year FY 2026 results last Wednesday, 12 August.

CBA stock trades ex-dividend today. And at recent share price levels you’ll be getting a significantly higher yield than if you’d bought the stock two weeks ago.

Among the more impressive figures from CBA’s FY 2026 results, the big four bank reported a 6.2% year-on-year increase in operating income to $30.2 billion.

And with profits up as well, management declared a fully franked dividend of $2.70 per share. That represents a 3.9% increase from last year and marks a record passive income payout from the company.

At the recent share price of $162.84, the final dividend alone offers a yield of 1.7%. Eligible stockholders can expect to receive that payout on 29 September.

Of course, that rising dividend means little if CBA’s share price continues to decline in the first half of FY 2027.

Which brings us back to our headline question.

CBA shares: Buy, hold or sell?

Dolphin Partners Financial Services’ Arthur Garipoli recently analysed the outlook for Australia’s biggest bank stock (courtesy of The Bull).

“Cash net profit after tax of $10.982 billion in full year 2026 was up 7% on the prior corresponding period. The net interest margin of 2.05% was down 3 basis points,” he noted of the bank’s full year results.

As for his sell recommendation on CBA shares, Garipoli said:

The bank acknowledged growth is slowing in response to higher interest rates and inflation placing uneven pressure on household incomes and economic activity.

Home loan applications since the federal budget in May fell 15%.

And despite the recent share price decline, Garipoli still has concerns over CBA’s valuation.

He concluded:

CBA is a high-quality bank, but an uncertain Australian economy leaves a challenging outlook at this point. We believe the bank is trading on a stretched valuation, so it may be prudent to lock in some profits.

CBA stock trades on a price to earnings (P/E) ratio of around 26 times, the highest among the big four ASX 200 bank stocks.

The post With $30 billion in FY26 income, should I buy CBA shares today? appeared first on The Motley Fool Australia.

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• How much do I need in my superannuation to earn $50,000 per year in passive income?
• Here’s the dividend forecast out to 2028 for CBA shares
• A200 vs NDQ: one Betashares ETF is the clear winner
• Experts name 3 popular ASX 200 shares to sell today
• Reporting season half-time report: 5 lessons from August so far

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.

Luckily for income investors, the Australian share market is stacked with ASX dividend shares.

To narrow things down, let’s look at three top dividend shares that could be worth considering this month:

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre could be an ASX dividend share to buy now.

The travel agency company has been through an extremely difficult period, but its earnings base is now rebuilding as travel demand normalises and the business becomes more efficient.

Flight Centre has exposure to both leisure and corporate travel, giving it more than one way to benefit if consumers and companies continue spending on trips, events, conferences, and overseas experiences.

The company is also no longer just a pure recovery story. If management can keep costs under control and improve margins, there may be scope for stronger profits and larger dividends over time.

Speaking of which, according to a recent note out of Morgans, its analysts expect a fully franked 48 cents per share dividend in FY 2027. Based on its current share price of $12.75, this would mean a dividend yield of 3.8%.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo Daily Needs REIT could be another ASX dividend share to buy.

The property company owns a portfolio of neighbourhood and large-format retail assets that are focused on everyday spending.

Its tenants include supermarkets, healthcare providers, pharmacies, pet stores, childcare operators, and other businesses linked to daily needs.

That gives the REIT a relatively defensive flavour. After all, people may delay big-ticket purchases when conditions are tough, but groceries, medicines, healthcare, and essential services remain part of normal household spending.

For FY 2027, Ord Minnett expects a dividend of 8 cents per share. This represents a 6.9% dividend yield at current prices.

Rural Funds Group (ASX: RFF)

Rural Funds could be a third ASX dividend share to buy now.

It owns a portfolio of agricultural assets, including farmland, cattle properties, vineyards, orchards, and water entitlements.

Rather than operating all these assets itself, Rural Funds generally leases them to agricultural businesses under long-term agreements.

That gives investors exposure to agriculture without taking on all the direct operating risk of farming.

Agriculture can be cyclical, and asset values can move around. But demand for food does not disappear, and high-quality agricultural land can be valuable over the long term.

Bell Potter expects this to underpin an 11.7 cents per share dividend in FY 2027. Based on its current share price of $2.18, this would mean a dividend yield of 5.4%.

The post 3 top ASX dividend shares to buy now appeared first on The Motley Fool Australia.

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• Where to invest $5,000 in Australian shares now
• How much do I need to retire on $100,000 a year at 60?
• These are the 10 most shorted ASX shares
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• 3 ASX shares to buy for $1000 in monthly passive income

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 positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Flight Centre Travel Group and HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The National Australia Bank Ltd (ASX: NAB) share price has seen its fair share of ups and downs over the last year, as the chart below shows. After the decline, it’s a good time to consider whether the business is attractive for its dividend yield.

The ASX bank share normally offers a pleasing payout because of its fairly generous dividend payout ratio and relatively low price/earnings (P/E) ratio.

A declining share price can present an opportunity because it boosts the dividend yield on offer. If a share price falls 10%, then the dividend yield is boosted by 10%. For example, if the dividend yield was 6% and the share price fell by 10%, the dividend yield would become 6.6%.

Let’s take a look at the appeal of the dividend yield and consider whether the NAB share price is appealing to buy.

Dividend yield from the ASX bank share

The ASX bank share has regularly paid investors a good dividend yield thanks to its rewarding payouts.

Analysts think the ASX bank share’s dividend could be consistent and reliable in the 2026 financial year.

According to the projection on Commsec, the business is forecast to pay an annual dividend per share of $1.70. That translates into a dividend yield of 4.3% excluding franking credits and 6.1% including franking credits.

The business is forecast to increase its dividend per share in the 2027 financial year. That translates into a dividend yield of 4.4% excluding franking credits and 6.2% including franking credits.

Is the NAB share price a buy?

Analysts are a bit mixed on the ASX bank share right now.

According to Commsec’s collation of analyst recommendations about the business, there are currently three buy ratings, seven hold ratings and five sell ratings. While a hold is the most popular rating, the other ratings lean a bit more negative than positive.

NAB recently announced its FY26 third-quarter update, showing it generated $1.83 billion in cash earnings, representing 4% year-over-year growth. Cash earnings rose 2% compared to the FY26 first-half quarterly average.

Earnings growth was driven by 5% year-over-year growth in revenue. Total lending and acceptances rose 6% year-over-year to $817.4 billion, with 4% growth in housing loans to $451.4 billion and 9% growth in housing loans to $352.4 billion.

Based on the projections on Commsec, the NAB share price is valued at 16x FY26’s estimated earnings.

The dividend yield is decent without being significant; however, analysts seem to think there’s better value elsewhere.

The post Is the NAB share price a buy for its 6% dividend yield? appeared first on The Motley Fool Australia.

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• Reporting season half-time report: 5 lessons from August so far
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• Profits up, home loans down. Why NAB shares are getting smashed on Monday
• National Australia Bank lifts cash earnings, capital in 3Q26 update
• If I invest $10,000 in NAB shares, how much passive income will I receive in 2027?

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 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and edged slightly lower. The benchmark index fell 3.2 points to 9,070 points.

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

ASX 200 to fall

The Australian share market looks set for a poor session on Wednesday following a disappointing night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 18 points or 0.2% lower. In the United States, the Dow Jones fell 0.2%, the S&P 500 dropped 0.7%, and the Nasdaq tumbled 1.3%.

Oil prices rise again

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have another positive session on Wednesday after oil prices rose again overnight. According to Bloomberg, the WTI crude oil price is up 0.8% to US$85.20 a barrel and the Brent crude oil price is up 0.3% to US$91.14 a barrel. Fading US-Iran peace deal hopes were behind this.

CSL shares rated hold

In response to its results on Tuesday, Bell Potter has retained its hold rating on CSL Ltd (ASX: CSL) shares with an improved price target of $150.00 (from $120.00). It said: “Based on the new underlying NPAT metric, CSL trades on a PE multiple of ~19x FY26 and ~18x FY27 earnings, with flat revenue growth and low-to-mid single digit earnings growth expected for FY27. While the result today suggests the worst (by way of earnings declines) is in the rear-view for CSL, we find it difficult to justify a greater premium than is now being attributed relative to global biopharma peers.”

Gold price tumbles

ASX 200 gold shares such as Westgold Resources Ltd (ASX: WGX) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price tumbled. According to CNBC, the gold futures price is down 1.8% to US$4,394 an ounce. Traders were selling gold after bond yields surged to their highest levels in decades.

More ASX 200 results

Another group of ASX 200 shares are releasing their results on Wednesday and will be on watch. This includes gold miner Evolution Mining Ltd (ASX: EVN), mineral sands producer Iluka Resources Ltd (ASX: ILU), lotteries company Lottery Corporation Ltd (ASX: TLC), energy giant Santos, and coal miner Whitehaven Coal Ltd (ASX: WHC).

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

More reading

• Is the CSL share price in the buy zone after the biotech giant’s results?
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: REA, Northern Star Resources, Suncorp shares
• 2 ASX shares with dividend yields above 8%
• CSL shares surge 18% as ‘reset year’ points to a return to growth

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

There are plenty of ASX blue-chip shares I would be comfortable owning for the medium to long term.

For me, the best opportunities are businesses that can keep growing over time while giving shareholders something along the way.

Here are three I would be happy to buy today.

Telstra Group Ltd (ASX: TLS)

Telstra has become a business I am increasingly comfortable owning for the long term.

Connectivity is now essential for households and businesses, and Telstra remains focused on strengthening its position in mobile and other core services.

Its Connected Future 30 strategy is targeting mid-single-digit compound annual growth in cash earnings through to FY30. I like that ambition because Telstra does not need spectacular growth to produce a good outcome for shareholders. Steady earnings growth can support higher dividends and give the share price room to rise over time.

There are also opportunities beyond simply adding more mobile customers. Telstra is investing in areas such as its intercity fibre network, satellite connectivity, and technology that can improve how customers use its services.

Management has also made a sustainable and growing dividend an important part of its plans.

For me, Telstra offers a nice combination of recurring demand, income, and steady long-term growth.

Woolworths Group Ltd (ASX: WOW)

Woolworths is another business I would be happy to own for years.

Groceries account for a meaningful part of household spending, giving the company a large base of customers who return regularly.

What interests me is how Woolworths can make that enormous existing business better. The company has invested heavily in its supply chain, including automated distribution centres designed to move products into stores faster and make replenishment more efficient. Its Moorebank precinct in Sydney is a major investment that gives the business modern infrastructure to support its operations for many years.

I think those investments can help Woolworths improve convenience, build stronger customer relationships, and gradually grow earnings over time.

The supermarket giant also has a long history of paying dividends, adding an income component to the investment case.

Macquarie Group Ltd (ASX: MQG)

Macquarie has a wide range of opportunities ahead.

This ASX share operates across asset management, commodities and financial markets, banking, advisory, and investing. Its global reach also means its fortunes are not tied solely to the Australian economy.

I particularly like Macquarie’s exposure to long-term investment themes through its asset management and infrastructure activities.

The world needs enormous amounts of capital for areas such as renewable energy, digital infrastructure, transport, and other essential assets. Macquarie has spent decades building expertise in finding, financing, and managing these types of investments.

Its Commodities and Global Markets business provides another earnings engine by helping clients manage risks and access markets around the world.

Macquarie’s earnings can move around with market conditions and investment activity, but I think its ability to find opportunities across countries and asset classes gives it plenty of room to keep creating value over the long term.

Foolish takeaway

I think the best blue-chip shares are those that can keep finding ways to become better businesses over time.

Telstra, Woolworths and Macquarie already have strong positions in their respective markets, but I can still see opportunities for each to grow from here.

That is why I would be happy to buy them today and hold on for the years ahead.

The post Why I’d buy Telstra, Woolworths, and Macquarie shares appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Aristocrat, Telstra, ANZ shares
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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Telstra 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.

Yesterday, Australian Strategic Materials Ltd (ASX: ASM) announced that the Federal Court had approved Energy Fuels’ takeover, with ASM shareholders set to receive 0.053 New Energy Fuels CDIs and 13 cents in cash per share. ASM options holders will receive 50 cents per option in cash if the schemes proceed as planned.

What did Australian Strategic Materials report?

• Federal Court of Australia has approved the acquisition by Energy Fuels Inc. subsidiary.
• ASM shareholders entitled to 0.053 New Energy Fuels CDIs (or shares) plus A$0.13 cash per ASM share.
• ASM optionholders to receive A$0.50 cash per ASM option.
• Trading in ASM securities to be suspended from close of 19 August 2026.
• Final implementation date set for 28 August 2026.

What else do investors need to know?

ASM will lodge court orders with ASIC on 19 August 2026, at which point the schemes will become effective. Eligible ASM shareholders will default to receiving New Energy Fuels CDIs, unless they elect to receive shares, and must submit election forms by 5.00pm AWST, 19 August 2026.

Ineligible foreign shareholders will not receive New Energy Fuels CDIs or shares directly; instead, they will get a proportionate cash payment after their entitlement is sold by a sale agent. ASM securities will be removed from the ASX following completion, with trading of new securities commencing on ASX, NYSE American, and TSX in late August.

What’s next for Australian Strategic Materials?

The schemes are expected to be implemented on 28 August 2026, with shareholders receiving their consideration soon after. This marks the end of ASM’s journey as an independent ASX-listed company, and investors will transition to holding securities in Energy Fuels.

Normal trading of New Energy Fuels CDIs is set to begin on 31 August 2026, while holding statements will be dispatched from 1 September. The company will announce any further timetable changes as they arise.

Australian Strategic Materials share price snapshot

Over the past 12 months, Australian Strategic Materials shares have risen 113%, outperforming the All Ordinaries Index (ASX: XAO), which has risen 1% over the same period.

View Original Announcement

The post Australian Strategic Materials: Federal Court approves Energy Fuels takeover appeared first on The Motley Fool Australia.

More reading

• ASM shareholders back Energy Fuels acquisition in decisive Scheme Meetings

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.

Yesterday, both Cogstate Ltd (ASX: CGS) and Pro Medicus Ltd (ASX: PME) released FY26 results. 

Investors reacted very differently to these results, with Cogstate shares falling 2% and Pro Medicus shares rocketing over 11%. 

Following these results, the team at Bell Potter provided updated guidance on these healthcare companies. 

What did they report?

Cogstate posted record FY26 revenue of US$60.9 million, up 15%, and a net profit after tax of US$11.9 million, up 17%.

Meanwhile, Pro Medicus announced full-year revenue of $261.7 million, up 22.9%, with underlying NPAT rising 24.1% to $144.7 million. The company remains debt-free and has lifted its fully franked total dividend by 25.5% to 69 cents per share.

Cogstate and Pro Medicus’ full results can be found here: 

• Cogstate results 
• Pro Medicus results. 

Both healthcare companies have had a very different 12 months. 

Cogstate shares are up 62% in the last year, while Pro Medicus are down 38% in the same span. 

Following yesterday’s results, here is the latest guidance out of the team at Bell potter. 

Bell Potter’s outlook for Cogstate

The broker Bell Potter viewed Cogstate’s FY26 result positively, with revenue up 15% to $60.9m, ahead of expectations, while a strong 2H gross margin of 62% drove full-year EBITDA of $18.3m and NPAT of $11.9m, both above forecast. 

The company doubled its dividend to 4 cents per share and remained debt-free with $34.8m of cash. Cogstate now enters FY27 from a record base, supported by very positive sales prospects, expected revenue growth, and an intention to maintain FY26’s EBITDA margins. 

Bell Potter has increased FY27-29 revenue forecasts by around $1m annually, reflecting stronger Clinical Trials activity and improved visibility, but higher operating costs more than offset this, resulting in around $1m lower NPAT forecasts in each year.

Based on this guidance, the broker retained its $3.70 price target and buy recommendation. 

This indicates an upside potential of more than 35%. 

Bell Potter’s outlook for Pro Medicus 

Pro Medicus reported FY26 revenue and EBIT growth of 23% and 26%, respectively, with EBIT results modestly (1.5%) ahead of consensus earnings. 

Bell Potter said that as the group’s revenue base expands, top-line growth is decelerating. However, margin expansion continues, driving the small earnings beat. 

The broker also highlighted that the company retained all six of its expiring contracts during FY26, which it believes were not subject to a competitive bidding process, based on factors such as client satisfaction with service levels and value.

The team at Bell Potter retained its buy recommendation and $226 price target for Pro Medicus shares after the company’s results. 

From yesterday’s closing price, the price target indicates 15% upside.

The post Healthcare results wrap: Are Cogstate and Pro Medicus shares a buy, hold or sell? appeared first on The Motley Fool Australia.

More reading

• Why did this ASX gold stock just soar 24% in a single session?
• Here are the top 10 ASX 200 shares today
• Why are Pro Medicus shares surging more than 10%?
• Why is everyone talking about CSL, Pro Medicus and BHP shares on Tuesday?
• Pro Medicus FY26: Strong earnings growth and higher dividend

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cogstate. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Cogstate. 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.

Shares in EBR Systems Ltd (ASX: EBR) have been on the slide over the past six months, and they’re now languishing not too far off their 12-month lows.

Naturally this begs the question, are they cheap at the moment?

The analyst team at Bell Potter thinks so and has a speculative buy recommendation on the company, along with a bullish share price target, which I’ll get to shortly.

First let’s look at what the company has been up to.

Solid progress on technology sales

EBR has developed a system called WiSE which it says is designed to overcome the limitations of conventional cardiac resynchronisation therapy and, “is the only leadless left ventricular endocardial pacing (LVEP) device”.

The company recently released a quarterly report and said that it had surpassed its hundredth commercial WiSE implant, “with multiple sites performing their first WiSE implants and numerous sites performing their 2nd, 3rd, 4th, and greater cases”.

The company also completed the first two tranches of a fully underwritten $150 million capital raise with the final $35 million expected to be completed by August 24.

EBR Chief Executive Officer John McCutcheon said:

We are extremely pleased with this quarter on multiple fronts. Commercially, EBR surpassed its 100th commercial WiSE implant, with multiple sites performing their first WiSE implants and numerous more experienced sites continuing to treat patients with WiSE. We secured master purchasing agreements with HCA Healthcare, Advocate Health, and CHRISTUS Health, validating the clinical and economic benefit of WiSE in major U.S. healthcare networks. In support of our future commercial efforts, the U.S. Centers for Medicare & Medicaid Services (CMS) further advanced WiSE through the Transitional Coverage for Emerging Technology (TCET) program by formally initiating the National Coverage Determination process for WiSE.

The company also fully transitioned to its new manufacturing facility in California, Mr McCutcheon said.

During the quarter EBR had operating cash outflows of $25 million.

Shares are looking cheap but more capital needed

In a note to clients released after the quarterly results, Bell Potter said that EBR’s cash receipts were still modest at US$3.6 million for the quarter but had doubled in the period. Bell Potter also noted that the company has five quarters’ worth of cash on hand.

The broker believes the company will need to raise more capital, and has therefore reduced its share price target on EBR to 70 cents, down 22%. This is still well above the current share price of 28 cents.

The broker added:

This still represents significant upside potential, but the need for more funding may weigh on investor sentiment. We retain our BUY (Spec.) rating.

EBR is valued at $214.7 million.

The post Bell Potter tips more than 140% upside for this out of favour ASX biotech appeared first on The Motley Fool Australia.

More reading

• Why I’d buy Telstra, Woolworths, and Macquarie shares
• Australian Strategic Materials: Federal Court approves Energy Fuels takeover
• Healthcare results wrap: Are Cogstate and Pro Medicus shares a buy, hold or sell?
• Why did this ASX gold stock just soar 24% in a single session?
• BCI Minerals: SOP pilot plant contract awarded

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.

In 2025, ASX gold stocks surged as record gold prices, geopolitical uncertainty and expectations of lower interest rates boosted safe-haven demand and expanded miners’ profit margins, with several major stocks doubling or more.

As the calendar ticked over to 2026, many of the biggest winners initially fell as valuations became stretched and gold experienced a sharp correction. 

However research from VanEck suggests ASX gold stocks are more resilient than investors might have thought. 

One ASX gold stock worth monitoring is Ausgold Ltd (ASX: AUC). 

It soared 24% yesterday after a key announcement to the ASX. 

What did the company announce?

As reported yesterday by Laura Stewart, Ausgold Ltd (ASX: AUC) announced a recommended scheme of arrangement under which OceanaGold Corp (TSE: OGC) will acquire 100% of Ausgold, valuing each Ausgold share at an implied A$1.36 and the total company at approximately A$776 million. 

The scheme is subject to regulatory and court approvals, as well as an independent expert’s conclusion that the deal is in shareholders’ best interests.

For investors, this $1.36 price represented a 28% premium at the time. 

However, after the massive climb during Tuesday’s session, the stock price is now hovering just below at $1.32. 

Following the announcement, the team at Bell Potter issued updated guidance on the ASX gold stock. 

Here is what the broker had to say. 

Downgraded outlook 

Bell Potter downgraded its outlook on this ASX gold stock to a speculative hold following OceanaGold’s proposed ~$776m acquisition of AUC. 

The all-scrip deal (with up to A$194m cash consideration) is unanimously recommended by the AUC Board, with major shareholder Dundee Resources also intending to support it. 

Completion is targeted for December 2026, after which AUC shareholders would own ~6–8% of OceanaGold, gaining exposure to its four producing gold assets while retaining Katanning development upside with substantially lower funding and execution risk. 

Bell Potter views OceanaGold’s strong balance sheet as sufficient to fund Katanning’s ~$354m development cost and sees relatively low-medium risk of a competing bidder. 

The proposed transaction implies A$282/oz of resources, well above the A$202/oz average for selected Australian gold deals in 2024–25, supporting the view that the offer is attractive. 

Some upside remains

Based on this guidance, Bell Potter lowered its price target to $1.50 (previously $1.70) on this ASX gold stock. 

From yesterday’s closing price, this indicates upside potential of 13%. 

We downgrade to a Hold recommendation and lower our valuation to $1.50/sh, a 10% premium to the initial offer price recognising that AUC is in-play and its share price should reflect OGC’s share price and gold price movements. We see low-medium interloper risk.

The post Why did this ASX gold stock just soar 24% in a single session? appeared first on The Motley Fool Australia.

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