Tag: Stock pick

Commonwealth Bank of Australia (ASX: CBA) shares are having a rough day.

On Wednesday afternoon, the banking giant’s shares are down 10% to $154.71.

That follows the release of its third-quarter results this morning. 

However, I would be careful about blaming the entire move on the result itself. The broader market is also under pressure, and investors may still be digesting the Federal Budget and what it means for banks, households, housing, and the economy.

Even so, CBA’s result is the main event today. And while the share price reaction is sharp, I do not think the update changes the long-term quality of the business.

Here are my three key takeaways.

CBA’s profit result was steady, not spectacular

The first takeaway is that CBA continues to perform solidly, even if this was not a result that was likely to excite the market.

The bank reported unaudited cash net profit after tax of approximately $2.7 billion for the quarter. This was down 1% on the average quarterly profit from the first half, but up 4% on the prior corresponding period.

Operating income was flat for the quarter, with lending and deposit volume growth offsetting the impact of two fewer days. CBA also noted that its underlying net interest margin was broadly stable excluding non-recurring tailwinds.

I think this is a reasonable performance in a tougher environment.

Banks are dealing with competition in mortgages and business lending, higher funding costs, more cautious consumers, and rising macroeconomic uncertainty. Against that backdrop, a stable underlying margin and modest profit growth compared with last year are not bad outcomes.

The challenge is valuation.

CBA shares were priced for a lot of good news before today’s fall. So, a steady update may not have been enough to satisfy investors after such a strong run.

Credit quality is still sound, but caution is rising

The second takeaway is that CBA is preparing for a tougher economic backdrop.

Loan impairment expense was $316 million for the quarter, and the bank increased the forward-looking component of collective provisions by $200 million. Management said this reflected revised macroeconomic forecasts and a higher weighting to its downside scenario.

That is worth watching.

CBA also reported that consumer arrears and corporate troublesome and non-performing exposures increased during the quarter. Home loan and credit card arrears rose modestly due to seasonality, while personal loan arrears increased by 30 basis points.

I do not see this as a reason to panic.

The bank said underlying portfolio credit quality remains sound, actual losses remained low, and provision coverage remains strong.

But it does show that CBA is not operating in a risk-free environment.

Higher energy prices, interest rates, and supply chain disruption are all putting pressure on households and businesses. If those pressures last longer than expected, investors may need to be more patient.

The balance sheet remains a major strength

The third takeaway is the strength of CBA’s balance sheet.

This is still one of the main reasons I rate the bank so highly.

CBA finished the quarter with a customer deposit funding ratio of 79%, a liquidity coverage ratio of 133%, and a net stable funding ratio of 116%. Its CET1 capital ratio was 11.6%, which remains comfortably above APRA’s minimum requirement of 10.25%.

That gives the bank flexibility.

It can keep supporting customers, funding growth, paying dividends, and absorbing shocks from a more uncertain economy.

CBA also noted that it paid $3.9 billion in dividends during the quarter, benefiting more than 800,000 direct shareholders and more than 14 million Australians through superannuation.

That reminds investors why the stock remains so popular.

Foolish takeaway

CBA shares are down heavily today, and I can understand why some investors may want to pause before buying.

The result was solid, but the valuation was high, the broader market is weak, and the economic backdrop has become more complicated.

That said, I still think CBA is a very high-quality ASX bank.

It has a strong balance sheet, deep customer relationships, a powerful deposit franchise, and a long record of rewarding shareholders.

For me, the sharp fall does not make CBA a bad business. But after such a big move, I would be inclined to let the dust settle before rushing in.

The post Down 10%: 3 key takeaways from CBA results appeared first on The Motley Fool Australia.

More reading

• BHP shares regain their market crown as CBA slides 10%
• Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking today
• Why CBA, Core Lithium and Fortescue shares are making waves on Wednesday
• Why are CBA shares crashing 8% today?
• Why the big four banks could keep delivering for income investors

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

It has been a rough year for ASX property shares, but one beaten-down name is finding some support today.

At the time of writing, the Lendlease Group (ASX: LLC) share price is up 2.31% to $3.10.

That gives shareholders some relief, but it does not change the bigger picture. Lendlease shares remain down more than 40% in 2026 and have fallen around 43% over the past year.

The latest buying appears to be tied to speculation around the property group’s next chief executive.

Let’s take a closer look.

CEO search heats up

The move comes after The Australian reported that Lendlease may be close to announcing its next CEO. Current boss Tony Lombardo is due to step down after the company releases its full-year results on 17 August.

According to the report, the search has not been straightforward.

The company has been looking for a new leader at a difficult time. Lendlease has been hit by weak returns, high debt, project writedowns, along with investor frustration.

The Australian said chief investment officer Penny Ransom had been viewed as a serious internal contender. However, the latest speculation points to a possible external candidate from Asia.

That would make sense in some ways. Lendlease has been pulling back from international construction, but it still wants to grow its investment platform across Australia and Asia.

A tough job awaits

Whoever gets the top job will takeover a company still trying to fix years of underperformance.

Lendlease reported a statutory loss of $318 million for the first-half of FY26. That included non-cash revaluations and impairments, while segment EBITDA came in at $204 million.

The company has been trying to simplify the business, sell assets, reduce risk, and recycle capital back into areas with better returns.

While there has been some progress, the half-year update showed $1.8 billion raised across Australian and Asian investment mandates.

But investors are still waiting for proof that the turnaround will lead to stronger earnings.

The company also needs to hold on to major funds management relationships, including the Australian Prime Property Funds (APPF) platform. The Australian reported that losing APPF could knock about 9% from net profit, based on analyst estimates.

Foolish takeaway

Lendlease shares have had a rough run, and the latest CEO talk shows investors are watching the leadership change closely.

A new leader could help steady confidence. But the bigger issue is whether Lendlease can turn asset sales and cost cuts into better earnings.

The post Why this ASX property stock is rising despite a brutal 40% slide appeared first on The Motley Fool Australia.

More reading

• BHP shares just hit a new all-time high. Here’s why
• Top brokers name 3 ASX shares to buy now
• Down 10%: 3 key takeaways from CBA results
• BHP shares regain their market crown as CBA slides 10%
• Buying Telstra shares today? Here’s the dividend yield you’ll get

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

BHP Group Ltd (ASX: BHP) shares are once again at the top of the S&P/ASX 200 Index (ASX: XJO).

BHP shares are up 3.4% to $61.75 currently after resetting their record high at $62.30.

This gives the mega miner a market capitalisation of $303.76 billion, according to the ASX.

Meanwhile, Commonwealth Bank of Australia (ASX: CBA) shares are down 10% to $154.41 — a near record one-day fall.

This follows the bank’s 3Q FY26 update. This gives CBA shares a market capitalisation of $287.11 billion.

BHP shares back on top of ASX 200

BHP and CBA shares have played musical chairs over the past year, unseating each other at the top of the charts on several occasions.

But perhaps BHP shares will sit at the top of the table for a longer period now.

Australia’s largest miner has several tailwinds today, while Australia’s largest bank faces macroeconomic challenges.

BHP shares are benefitting from soaring copper prices, with the red metal reaching a record US$6.58 per pound on Wednesday.

That’s a big deal for BHP, given copper now represents more than half of its earnings before interest, taxes, depreciation, and amortisation (EBITDA).

Analysts at Trading Economics say today’s record copper price is largely due to stronger Chinese demand and growing supply concerns.

Recent data suggested resilient industrial activity in China despite geopolitical headwinds, while consumption remained robust across power grids, renewable energy, and artificial intelligence-related infrastructure.

The ongoing rally in AI equities has also reinforced expectations for continued investment in data centers, further supporting copper demand.

The build-out of data centres, which requires a lot of copper and silver, is now so significant in Australia that it was directly identified as contributing to our first monthly trade deficit since 2017.

The Australian Bureau of Statistics attributed a sharp rise in imports in March partly to automatic data processing equipment, representing the surging investment in data centres.

On top of this, BHP shares are also benefiting from the same long-term tailwinds boosting all mining shares these days.

They include the green energy transition, volatile geopolitics creating higher demand for resources and critical minerals to attain more self-sufficiency, investment in artificial intelligence (AI), and supply-side constraints for multiple industrial metals.

Meanwhile at CBA…

Meanwhile, CBA shares have some tailwinds, as today’s update from the bank showed.

CBA reported an unaudited cash net profit after tax (NPAT) of $2.7 billion. That was 1% lower than the quarterly average for 1H FY26.

Net interest income rose 1% due to lending and deposit volume growth, earnings on the replicating portfolio, and higher deposit margins.

This was partially offset by cash rate lag, lending competition, the lower New Zealand dollar, and two fewer days in the quarter.

CBA also lifted its provisions given the uncertain economic outlook.

For 3Q FY26, CBA’s loan impairment expense was $316 million.

The bank raised the forward-looking component of collective provisions by $200 million to account for greater geopolitical and economic risks.

CBA CEO Matt Comyn also commented on weakening consumer sentiment, which has plunged to its lowest level since the pandemic.

Comyn said:

Many Australian households and businesses are navigating cost-of-living pressures from higher energy prices and interest rates.

Conflict in the Middle East is disrupting critical supply chains and contributing to global uncertainty.

He added:

We are closely monitoring the impacts of the Middle East conflict and the broader macroeconomic environment.

The Australian economy continues to demonstrate resilience, but supply chain disruptions, higher prices and interest rates are expected to weigh on household spending and business activity.

The post BHP shares regain their market crown as CBA slides 10% appeared first on The Motley Fool Australia.

More reading

• BHP shares just hit a new all-time high. Here’s why
• Down 10%: 3 key takeaways from CBA results
• Why Arafura, Aristocrat, BHP, and Perenti shares are racing higher today
• Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking today
• Why CBA, Core Lithium and Fortescue shares are making waves on Wednesday

Motley Fool contributor Bronwyn Allen has positions in BHP Group. 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 BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are considering buying shares of ASX 200 telco Telstra Group Ltd (ASX: TLS) today, chances are you are doing so with an eye on this company’s famous dividend.

Ever since Telstra was incrementally privatised and floated onto the ASX back in the 1990s and 2000s, its shares have been known for the fat, and usually fully-franked dividends they shower on shareholders’ shoulders.

Of course, Telstra’s dividend chops aren’t as beefy as they used to be. If you bought Telstra between 2005 and 2016, you would have become used to bagging a fully-franked dividend yield of 6% or even 7%.

Those days are, sadly, over. But even so, Telstra has proved itself a winning dividend share in recent years. To illustrate, Telstra shareholders haven’t seen a dividend cut since 2019 and have enjoyed an annual dividend increase every year since 2022.

So, where does this stock’s dividends stand in May 2026?

What kind of dividend yield are Telstra shares offering?

Well, Telstra has paid out two dividends over the past 12 months, as is its norm. We had last year’s final dividend from September, worth 9.5 cents per share, fully franked. That represented a 5.56% hike over 2024’s final dividend of 9 cents per share.

Then, this year, we saw Telstra announce an interim dividend of 9.5 cents per share. That matched the equivalent payout of 2025. However, this latest interim dividend was unusual. It was the first dividend Telstra has paid out in a very long time that didn’t come with full franking credits attached. Yes, it was partially franked at 90.48%, so not a huge impact for investors. But still, the symbolism is notable.

So, we have an interim dividend worth 9.5 cents per share, and a final dividend also worth 9.5 cents per share. This annual total of 19 cents per share gives Telstra a trailing dividend yield of 3.8%. That’s at the current (at the time of writing) share price of $5.27.

Remember, a trailing dividend yield only represents a company’s past payouts. It does not mean that investors buying Telstra shares today are guaranteed to get a 3.8% return on their investment from dividends.

Saying that, experts are optimistic when it comes to Telstra’s potential future payouts. My Fool colleague Tristan looked at this just this week. He found that analysts are pencilling in an annual dividend of 21 cents per share for FY 2026, rising to 22 cents by FY 2027, and 23 cents by FY 2028.

Of course, those are just predictions. We’ll have to wait and see what Telstra’s next dividend will look like.

The post Buying Telstra shares today? Here’s the dividend yield you’ll get appeared first on The Motley Fool Australia.

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

DroneShield Ltd (ASX: DRO) shares are edging higher on Wednesday, but investors are still dealing with a bruising week.

At the time of writing, the DroneShield share price is up 1.26% to $3.22.

That follows a 9.92% fall on Tuesday after the company confirmed it had received a notice from the corporate regulator.

The stock is now down almost 15% over the past week and remains a long way below its 52-week high of $6.71.

So, can this former market darling get back there?

ASIC notice rattles investors

Tuesday’s sell-off came after DroneShield told the market it had received a notice from ASIC.

The company said ASIC has required it to provide reasonable assistance in connection with an investigation under the Corporations Act.

DroneShield said the investigation relates to announcements and information provided to the ASX between 1 November and 20 November 2025. It also relates to trading in DroneShield shares between 6 November and 12 November 2025.

The company said it will cooperate fully with the investigation.

At this stage, the key uncertainty is what comes next. DroneShield said it is not clear what action, if any, may result from ASIC’s investigation, leaving investors to weigh the risk with little detail.

November is back in focus

The ASIC notice has dragged last November’s share sales back into the spotlight.

According to The Australian, ASIC is looking at share sales involving former CEO Oleg Vornik, former Chair Peter James, and another Director. The inquiry also covers disclosures made around that period, including a contract that had already been announced.

DroneShield has been one of the ASX’s more volatile names over the past year. It has also been one of the more closely watched.

The company operates in a popular part of the market, with its counter-drone technology sitting across defence, government, law enforcement, airports, and critical infrastructure.

The numbers are still strong

The difficult part for investors is that the latest operating numbers were very strong.

In its March quarter update, DroneShield reported revenue of $74.1 million, up 121% on the prior corresponding period.

Customer cash receipts reached a record $77.4 million, up 360% on the prior corresponding period.

SaaS revenue also rose to $5.1 million, while net operating cash flow came in at $24.1 million.

The balance sheet also looked healthy, with DroneShield finishing the quarter with $222.8 million in cash and no debt.

Foolish Takeaway

DroneShield still has a lot going its way.

The business is growing quickly, demand for counter-drone technology remains supportive, and the company has a healthy cash position.

But the ASIC investigation has added a layer of uncertainty that investors cannot ignore.

Getting back to $6.71 would mean the share price has to more than double from current levels.

While that’s a big move, it’s not impossible if DroneShield keeps delivering and the ASIC matter clears without serious damage.

The post Can DroneShield shares climb back to their $6.71 high? appeared first on The Motley Fool Australia.

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

Healius Ltd (ASX: HLS) shares are having a horror session on Wednesday.

In afternoon trade, the ASX 300 share is down 23% to a multi-year low of 37.2 cents.

Why is this ASX 300 share crashing today?

The selling has been sparked by the release of a trading update for FY 2026, which points to a challenging operating environment for the pathology company.

According to the release, Healius now expects group underlying EBITDA of between $259 million and $264 million for FY 2026. It also expects group underlying EBIT of between $30 million and $35 million.

This compares positively to underlying EBITDA of $239.3 million and underlying EBIT of $17.1 million in FY 2025.

Pathology pressures continue

However, taking some of the shine off the profit update was an update on trading conditions.

Management advised that there is ongoing pressure in Healius’ pathology business.

For the first half, pathology volumes grew by 1.2% and revenue increased by 3.5%. However, momentum appears to have weakened since then.

For the 10 months to April 2026, pathology volumes declined by 0.4%, while revenue growth slowed to 2.4%.

This is a concern because the division remains the company’s core business.

GP attendances have also been soft, falling 1.5% in the first half and 1.0% for the January to March period.

Wage costs add another headwind

Healius has been working to contain costs, with pathology costs rising just 1.1% for the 10 months to April 2026.

However, wage pressure is now emerging as a fresh challenge.

The company advised that pathology labour costs will be impacted by $1.8 million in the fourth quarter due to the Fair Work Commission’s initial findings on gender-based undervaluation.

Pathology collectors received an increase from 1 April 2026, with further increases still to come.

Healius said pathology labour costs have now increased 0.8% for the 10 months to April 2026, whereas previous guidance had been for broadly flat labour costs for FY 2026.

The company is now undertaking a strategic review of its Agilex Biolabs and could consider selling the business.

Federal Budget disappointment

Another negative in the update was Healius’ response to the Federal Budget.

The ASX 300 share said this year’s Federal Budget contained no new funding for pathology, despite the sector facing rising wage costs and an ongoing indexation freeze for most tests.

Management warned that inadequate funding has forced difficult decisions, including cutting staff, closing collection centres, and closing regional laboratories.

The company also said out-of-pocket fees for pathology tests may be the only viable option left to bridge the funding gap.

Overall, today’s update highlights a difficult mix of slowing pathology volumes, rising wage costs, limited government funding support, and pressure on earnings.

That combination appears to have spooked investors and sent the ASX 300 share sharply lower.

The post Why is this ASX 300 share crashing over 20% today? appeared first on The Motley Fool Australia.

More reading

• Why CBA, Healius, Paladin Energy, and Temple & Webster shares are sinking 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.

ANZ Group Holdings Ltd (ASX: ANZ) shares have sunk lower on Wednesday afternoon. At the time of writing, the major bank’s shares are down 1.88% to $34.48 a piece.

Today’s drop comes off the back of a run of share price declines. Over the past week, ANZ shares have tumbled 7%. 

The bank shares are now down 5% for the year to date, but are still 21% higher than this time 12 months ago.

Analysts are uncertain about the outlook for the shares, too. TradingView data shows that half (8 out of 16) have a hold rating on ANZ shares. Another 6 have a buy or strong buy rating, and two have a sell or strong sell rating on the stock.

The average $35.54 target price implies a small 3% potential upside over the next 12 months. However, there is a large swing between the maximum and minimum target prices.

Some think the shares could tumble another 28% to $24.96, while others think the share price could climb 20% higher to $41.50 each.

The outlook for ANZ shares might look uncertain this year, but what about the bank’s passive income?

Are ANZ shares a good play for passive income?

As one of Australia’s big four major banks, ANZ is generally considered to have stable earnings and predictable cash flow. 

While bank stocks are usually considered cyclical, ANZ’s strong deposit base and diversified portfolio mean it is also relatively defensive in nature.

In early May, the bank reported a 70% jump in its cash profit for the first half of FY26. Statutory profit was also up 62%, operating income was up 3%, and the bank’s operating expenses were 22% lower.

ANZ confirmed it has now achieved 49% of its gross cost-savings target of $800 million for FY 2026.

The bank’s performance means it is able to make a reliable and regular dividend payment to shareholders every six months, payable in July and December. 

It also offers both a dividend reinvestment plan (DRP) and a bonus option plan (BOP) as alternatives to receiving cash dividends on ANZ ordinary shares.

At the same time as its latest results announcement, ANZ also confirmed an 83-cent per share dividend payment, franked at 75%, to be paid to shareholders in July. This translates to a forward dividend yield of around 4.8%.

The 83-cent dividend is the same payout that investors have been receiving every six months since July 2024. Although the latest payout will receive an additional 5% franking (previously 70%).

Passive income investors will be pleased, though. CommSec expects that ANZ will pay an annual dividend per share of $1.68 in FY26. This translates to a 4.87% dividend yield at the time of writing. The broker thinks the dividend will keep climbing too, to $1.72 per share in FY27.

That’s a decent passive income. It also puts ANZ at the front of the pack with the highest dividend yield offering among the big 4 major banks. 

The post Are ANZ shares a good buy for passive income? appeared first on The Motley Fool Australia.

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• Why the big four banks could keep delivering for income investors
• How much do I need to invest in ASX shares for $500 a month of passive income?
• Sell alert! Why this expert is calling time on Woodside and ANZ shares
• Why are ANZ shares sinking today?
• Why ANZ, CSL, Dateline, and DroneShield shares are sinking today

Motley Fool contributor Samantha Menzies 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 ASX mining share sector has a number of compelling businesses which could be underrated by the market.

The investment team of the listed investment company (LIC) WAM Active Ltd (ASX: WAA) have outlined two ASX stocks that look like appealing investments with their outlooks and the current valuations.

Miners may not have the strongest economic moats on the ASX, but they do have the ability to deliver big returns when resource prices increase and/or when projects are found and developed.

Let’s dig into why the experts at WAM like these two ASX mining shares.

Solstice Minerals Ltd (ASX: SLS)

The fund manager said that Solstice Minerals is advancing the Nanadie copper-gold project near Meekatharra in Western Australia.

WAM noted that, in April, the company released visual results of deeper drilling below earlier high-grade copper hits.

The fund manager said these results suggest the mineral system extends well below the current resource, highlighting the deposit’s potential scale.

In the near-term, WAM thinks that there is potential upside for the Solstice Minerals share price as “drilling helps define a larger resource, while laboratory results confirming grade and continuity build confidence in a pathway towards an approximate 250 million tonne deposit.” The fund manager said this suggests the ASX mining share is undervalued relative to its peers on comparable multiples.

WAM said that it remains bullish on copper, supported by the energy transition and electrification themes.

Core Lithium Ltd (ASX: CXO)

The other ASX mining share that the experts highlighted was Core Lithium, which ones 100% of the Finniss lithium project in the Northern Territory. It also has exploration exposure across the Northern Territory and South Australia in base metals, rare earths and gold.

WAM noted that the share price rallied in April on two supportive developments.

First, a 20,000 tonne sale of fine-particle ore ready for shipment to Glencore’s international trading arm at approximately $405 per tonne, together with the earlier sale from its lithium concentrate stockpile, generating approximately $18 million to support the Finniss restart.

The fund manager said that while the transactions were modest in dollar value, they suggested demand and sentiment had improved enough to support a restart.

While the transactions were modest in dollar value, they suggested demand and sentiment had improved enough to support a restart.

Broader optimism across the lithium sector also strengthened during the month as supply discipline took hold and lithium prices increased.

The experts then explained why they’re excited about the business:

We remain bullish on lithium, supported by strong demand from battery energy storage systems and electric vehicles, with battery lithium intensity growing at more than 30% per annum.

Core Lithium offers strong exposure to a recovery in lithium prices as it works towards a relatively low-risk restart in the second half of 2026, and we expect the supply response to be more disciplined this cycle.

The post Experts rate these 2 ASX mining shares as compelling buys appeared first on The Motley Fool Australia.

More reading

• Why CBA, Core Lithium and Fortescue shares are making waves on Wednesday
• Core Lithium shares jump again after a major Finniss milestone
• ASX mining stock drops despite big lithium news
• 16 ASX shares going ex-dividend in May
• This $1 billion ASX lithium stock is in the spotlight today. Here’s why

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.

S&P/ASX 200 Index (ASX: XJO) shares are down 0.4% to 8,635.7 points on Wednesday.

The share market has been volatile this year amid a metals rout in late January and the ongoing global oil shock.

ASX 200 shares are now in the red for 2026, down 1% in the year to date (YTD) at the time of writing.

However, brokers say the following three ASX 200 shares are on a completely different trajectory.

In fact, they reckon these stocks could more than double in value over the next year.

Let’s find out why.

Catalyst Metals Ltd (ASX: CYL)

The Catalyst Metals share price is $5.64, up 1.5% today, and down 24% in the YTD.

Morgans has a buy rating on this ASX gold mining share with a 12-month target of $15.13.

This implies a potential 163% capital gain over the next 12 months.

After reviewing the miner’s 3Q FY26 report, Bell Potter said:

We maintain our BUY rating, with valuation supported by strong cash generation and a clear production growth pipeline, albeit with near-term cost pressures emerging.

Catalyst reported gold production of 26.1koz at an all-in sustaining cost (AISC) of A$2,901 per ounce for 3Q FY26.

Morgans said the miner generated solid operating cash flow of A$103 million at an average realised price of A$7,014 per ounce.

CYL continues to strengthen their balance sheet, adding A$39m during the quarter to close with A$277m in cash and bullion while reinvesting heavily across growth and exploration initiatives.

Growth momentum continues across the Plutonic Belt, with multiple new ore sources advancing (Trident, K2, Old Highway) alongside a high-grade discovery at Cinnamon, supports the pathway to c.200kozpa production.

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price is $2.03, up 2% today and down 27% YTD.

Mesoblast specialises in allogeneic cellular medicines for severe inflammatory diseases.

Bell Potter has reaffirmed its speculative buy rating on this ASX 200 healthcare share.

The broker has a $4.45 price target on Mesoblast shares, suggesting a more than doubling in value over the next year.

Bell Potter said:

The company’s future is looking brighter than ever with revenues expanding and new product approvals now well advanced for heart failure and chronic lower back pain. 

At the very least, today’s cash flow result should provide shareholders with confidence that MSB can generate earnings and cash flow positive operations from sales of Ryoncil alone.

Objective Corporation Ltd (ASX: OCL)

The Objective Corporation share price $10.69, down 0.09% today and down 35% YTD.

The ASX tech share hit a fresh 52-week low of $10.33 today.

Shaw and Partners reiterated its buy rating on Objective Corporation shares last week.

The broker has a price target of $22.10, implying a 106% upside ahead.

Last week, Objective Corporation founder and CEO Tony Walls spoke at Shaw & Partners’ TechRise conference.

The broker said:

Management framed OCL as being in its strongest position in years despite broader SaaS disruption narratives, with FY26 ARR guidance unchanged at 10–14% and 15% reiterated as the core long-term target.

The post 3 ASX 200 shares predicted to double over 12 months appeared first on The Motley Fool Australia.

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

Shares in Anson Resources Ltd (ASX: ASN) took off on Wednesday after the ASX lithium company said a demonstration plant at its Green River project had been greenlit.

Major Korean partner

The company said in a statement to the ASX that it had struck an agreement with major Korean conglomerate POSCO for the construction and operation of a demonstration plant at the Green River project in Utah.

Anson shares were trading 45.3% higher on the news at 7.7 cents, with more than 33 million shares changing hands.

The company said further re the agreement:

Under the agreement POSCO committed to setting up its direct lithium extraction demo-plant to extract lithium from brines produced from the Bosydaba #1 well owned by Anson at the Green River Lithium Project. POSCO will be responsible for engineering, construction, operation and maintenance of the facility, while Anson will provide access to property, infrastructure and brine supply. POSCO will pay Anson a facilitation fee of about $7.2 million.

Anson said POSCO was expected to commence operation of the demonstration plant in 2027 and complete the work in 2028.

The two companies would also continue to explore potential cooperation opportunities, “including joint investment in the project, during the operation of the demonstration plant, as outlined in the MoU Agreement”, Anson said.

Racking up wins

The demonstration plant news followed Anson announcing on Monday that its subsidiary A1 Lithium had been admitted as a member of the U.S. Defense Industrial Base Consortium (DIBC), which is a program overseen by the Department of War.

Anson said further:

Membership of the DIBC provides A1 Lithium with enhanced access to U.S. federal agencies, including the Department of Energy (“DOE”) and DoW, and supports engagement on programs focused on critical minerals, advanced manufacturing and domestic supply chain resilience. A1 Lithium has previously submitted applications under several U.S. Department of Energy grant and funding initiatives, which are currently pending, and continues to actively evaluate additional opportunities aligned with the development of the Green River Lithium Project in Utah.

Anson Executive Chairman Bruce Richardson said regarding this announcement:

Admission into the DIBC represents another important milestone for the company and further strengthens its engagement with key U.S. government initiatives focused on critical minerals and domestic supply chain development. The Green River Lithium Project is strategically positioned within the United States and aligns strongly with current federal priorities surrounding secure domestic lithium supply. We look forward to continuing discussions with government agencies and industry participants as we advance our projects toward development.

Anson was valued at $85.8 million at the close of trade on Tuesday.

The post Which junior ASX lithium stock is surging 45% on good news? appeared first on The Motley Fool Australia.

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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.