Tag: Stock pick

The EBOS Group Ltd (ASX: EBO) share price is in focus today after the company trimmed its FY26 underlying EBITDA guidance to $610–$620 million, down from a previous range of $615–$635 million, due to higher fuel and energy costs.

What did EBOS Group report?

• FY26 underlying EBITDA now expected at $610–$620 million (prior guidance was $615–$635 million)
• Additional $5–$10 million in fuel-related costs to be absorbed this financial year
• Underlying demand across the Group remains stable
• Challenges stem from elevated fuel prices and increased logistics and consumable costs
• Impact limited to FY26, with mitigation efforts underway for FY27

What else do investors need to know?

EBOS Group has seen a significant rise in fuel prices and energy-related expenses, mainly affecting its logistics and distribution activities. These higher costs are a result of global supply disruptions and increased geopolitical risks.

The Group says it cannot immediately or fully pass on these cost increases to customers, partly due to government contracts and its vital role in the healthcare supply chain. Talks with the Australian Government about fuel cost recovery are ongoing, but outcomes or timing are still uncertain.

What’s next for EBOS Group?

EBOS Group is moving ahead with operational efficiency measures to help offset the impact of higher costs. Management anticipates these steps will begin to reduce the effect of elevated fuel and consumables prices in FY27.

The business remains committed to reliable healthcare delivery in Australia and New Zealand, focusing on service continuity while handling current cost pressures.

EBOS Group share price snapshot

Over the past 12 months, EBOS Group shares have declined 48%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post EBOS Group trims FY26 earnings guidance as fuel costs bite appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday

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.

One of the best ways to use ASX shares, in my view, is to build a second income thanks to the generosity of ASX companies that want to send dividends to shareholders and unlock the bonus of franking credits.

If I were investing for a second income, I’d want to choose ASX shares that seem as dependable as job earnings and also regularly increase their payouts.

I’d like to highlight two ASX shares that I think are great options for a second income (or retirement income).

WCM Global Growth Ltd (ASX: WQG)

This is a listed investment company (LIC) – the job of a LIC is to invest in other shares on behalf of shareholders. The fund manager of this LIC is WCM, which is based in Laguna Beach, California.

One of the first advantages of this LIC is that it gives investors exposure to a portfolio of global shares, which is appealing to get exposure to different opportunities around the world, not just the typical ones on the ASX.

WCM wants to find great businesses with expanding economic moats (improving competitive advantages) and a company culture that fosters the expansion of those advantages.

When it comes generating a second income, the LIC has a great track record of delivering dividends and payout growth.

It has increased its annual dividend each year since 2019 and fairly recently changed to paying its dividend quarterly.

The business has guided that it’s going to increase its quarterly dividend each quarter between now and March 2027. The quarterly dividend that’s expected to be paid in March 2072 is 2.45 cents per share, which translates into a grossed-up dividend yield of close to 8%, including franking credits, at the time of writing.

As a bonus, it’s likely trading at a discount to its net tangible assets (NTA) – that’s the underlying value of each share.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

The other ASX share I want to highlight for unlocking a second income is Soul Patts, one of the oldest companies on the ASX.

It was listed more than 120 years ago and it has paid a dividend every year in that time, including through wars, global pandemics and economic recessions.

The business is an investment conglomerate that started as a pharmacy business and now has a diversified portfolio across numerous areas.

Its investments include resources, telecommunications, energy, industrial property, swimming schools, agriculture, water entitlements, electrification, financial services, retail, healthcare, retirement living, credit and building products.

The company is a great option for a second income because of how consistently it increases its payout.

Soul Patts has increased its regular annual dividend per share every year since 1998, which is the longest growth streak on the ASX. I think the dividends are likely to continue growing because the business is committed to doing so, its dividend payout ratio is usually at a very healthy level each year and it’s regular investing in new opportunities.

Its latest two half-year dividends come to a grossed-up dividend yield of 3.5%, including franking credits, at the time of writing.

The post Want to build a second income? I’d buy these ASX shares today appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited and Wcm Global Growth. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Bell Potter has been running the rule over the tech sector and believes it has identified an ASX stock with the potential to more than double in value over the next 12 months.

However, it has warned that this pick is a speculative one, which means it may only be suitable for investors with a high tolerance for risk.

Which ASX tech stock?

The stock Bell Potter is tipping as a speculative buy is Black Pearl Group Ltd (ASX: BPG).

It is a data technology platform provider that develops and operates a lead prospecting and marketing product suite via its proprietary Pearl Engine platform and augmented large language model.

Bell Potter notes that the ASX tech stock transforms anonymous, unstructured web visits and data layers into identifiable prospects to significantly increase efficacy for advertising and marketing spend by targeting prospects with a high intent to buy.

The broker highlights that the company outperformed expectations in the fourth quarter, with annual recurring revenue (ARR) coming in at $26.8 million. It said:

BPG delivered another ARR beat ahead of BPe, increasing by 114%/$3.1m YoY to $26.8m (BPe: $25.3m); outperformance was supported by a lift in employee efficiency (ARR per employee) to $348k (+41% YoY) and a 40bps YoY improvement in churn to 4.9%, slightly below 5% target. Recently launched DaaS product continues to see nil churn. Customer acquisition cost payback period also improved further to 3.5mths (3Q26: 3.9mths), which tracks with contributions from higher value customers.

Big potential returns

In light of this strong performance and its positive outlook, Bell Potter thinks that its shares look good value at current levels.

According to the note, the broker has retained its speculative buy rating on the ASX tech stock with an improved price target of $1.82 (from $1.76).

Based on its current share price of 82 cents, this implies potential upside of 120% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

We retain our Speculative Buy recommendation, with our valuation lifted to A$1.82/sh with no change in multiples applied/mix in EV/ARR. BPG has outlined a greater focus on revenue and cash conversion in FY27 through shortened customer ramping cycles and extracting ongoing operating leverage (+41% ARR per employee YoY). BPG looks attractive at 1.8x FY27 ARR against its growth profile, in our view.

The post Bell Potter says this speculative ASX tech stock could rise 100%+ appeared first on The Motley Fool Australia.

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• Cochlear cuts FY26 earnings outlook amid softer sales
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• Bank of Queensland half-year 2026: profit falls, dividend steady as revenue rises
• Global X says it’s time to target this electric vehicle ASX ETF that has doubled in a year
• South32 lifts net cash and sets Brazil Alumina output record in March quarter

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.

The story of WiseTech Global Ltd (ASX: WTC) shares over the last year has been a compelling one. 

Dragged down by artificial intelligence replacement fears, WiseTech shares fell roughly 70% from 12-month highs between July 2025 and March 2026.

However since then, WiseTech shares have rallied, recovering more than 20%. 

This was consistent for many ASX technology shares that were oversold prior to April. 

The AI debate

The big question for WiseTech, and technology shares in general, has been whether artificial intelligence is likely or capable of replacing core services. 

Arguments have been made that as AI continues to rapidly advance. Rathe than simply helping these companies improve efficiency, it might make parts of their businesses obsolete.

A lot of ASX tech firms – especially SaaS (software-as-a-service) – sell tools that automate tasks. The problem now is that AI can now do many of those same tasks, often cheaper and better. 

This is already apparent for tasks like writing code, analysing data, handling customer service, and generating content. 

That overlaps directly with what many software companies charge subscriptions for. 

How does this impact WiseTech shares?

Right now, WiseTech sits right on the line between AI victim and AI winner.

WiseTech sells logistics software (CargoWise) that automates workflows, and it is true that AI is capable of automating workflows. 

CargoWise is effectively the operating system for global logistics, handling customs, compliance, shipping, billing across 180+ countries. 

That creates:

• High switching costs
• Regulatory complexity
• Mission-critical dependency.

In addition to this, unlike some smaller SaaS companies, WiseTech isn’t sitting still – it’s aggressively adopting AI internally.

The company recently cut roughly 2,000 jobs (~30% of workforce) due to AI automation. 

The WiseTech CEO explicitly said manual coding is “over”, and the company is now automating large parts of product development and operations. 

What are experts saying?

Yesterday, the team at Bell Potter provided updated guidance on WiseTech shares, providing a pathway forward through murky tech waters. 

The bottom line: the broker believes that WiseTech shares are cheap, especially in comparison to other tech stocks. 

It has put a buy rating and $78.75 price target on WiseTech shares, which is approximately 73% higher than yesterday’s closing price. 

As The Motley Fool’s Marc Van Dinther reported yesterday, 15 out of 17 analysts (via TradingView) rate WiseTech shares as a buy or strong buy. 

Foolish takeaway 

The core conflict investors need to consider when it comes to WiseTech shares is the bull vs bear case. 

With a negative lens, AI could commoditise parts of WiseTech Global’s software, putting pressure on pricing, margins, and long-term growth.

On the flip side, AI could strengthen WiseTech Global’s dominance by automating complex logistics workflows, lowering costs, and deepening its competitive moat.

The post Still down 40% over the past year, how high could WiseTech shares recover? appeared first on The Motley Fool Australia.

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

Yesterday, we discussed the concept of ‘stagflation’, what it is, and why the global economy might be about to face its first significant bout of it since the 1970s. Today, we will expand on that by looking at its potential impacts on an ASX stock portfolio, and how investors can prepare for that risk.

It’s well worth taking a moment, at least in my completely unbiased opinion, to dive into yesterday’s piece. But if you want the ‘tldr’ version, stagflation refers to the phenomenon where an economy experiences persistently high inflation at the same time as it suffers from stagnant or falling economic growth and rising unemployment. Stagnant growth plus sticky inflation equals stagflation.

Historically, periods of stagflation have been rare occurrences across the advanced economies of the world. The last major stagflationary period occurred in the 1970s, and was sparked by a series of oil shocks. It doesn’t take a lot of imagination to work out why investors are again worried about stagflation in 2026.

So if Australia and other major economies of the world do enter a period of stagflation, what does this mean for investors? That’s what we’ll be talking about today.

Rising prices, stagnant growth

Stagflation represents a double-whammy of risk to ASX stocks. Companies have to manage a low-growth economy that may see rising unemployment, potentially high interest rates, and depressed consumer confidence. At the same time, they must manage the impact of sticky inflation and perpetually rising costs. It’s the exact opposite of what we could describe as ideal business conditions.

Under a stagnation-riven economy, most businesses will suffer, and only the companies of the highest calibre will manage to consistently compound their revenues and profits. It’s these businesses that ASX investors should focus on identifying and investing in.

Fortunately, we already know the playbook that is best employed here. It comes from none other than legendary investor Warren Buffett. Buffett has long touted the benefits of investing in companies that possess a wide economic moat. This term, which Buffett himself coined, refers to an intrinsic competitive advantage that a company can possess, which helps it ward off both competition and destructive economic forces.

This could come in the form of a strong, loyalty-commanding brand, a low-cost advantage of production, or making a good or service that customers find difficult to avoid buying. Most of the companies that Buffett invested in at Berkshire Hathaway, including Coca-Cola, Apple and American Express, possessed at least one of these characteristics.

Its these companies that, at leas tin my view, are best positioned to survive, and even thrive, in a stagflationary economy.

Stagflation stock picks?

ASX investors might wish to take a look at the holdings of the VanEck Morningstar Wide Moat ETF (ASX: MOAT), or the ETF itself, for some ideas in this vein. I would also argue that many of the ASX’s top blue chips how clear signs of possessing at least one wide economic moat. These could include Telstra Group Ltd (ASX: TLS), Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), Transurban Group (ASX: TCL), and Wesfarmers Ltd (ASX: WES).

Saying that, finding a wide-moat ASX stock is not the end-game. Investors also need to buy shares of these stocks at prices that make sense. And that is certainly easier said than done.

The post Stagflation: How to position an ASX stock portfolio appeared first on The Motley Fool Australia.

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• 3 ASX 200 shares tipped to tumble 10% (or more) in the next 12 months

American Express is an advertising partner of Motley Fool Money. Motley Fool contributor Sebastian Bowen has positions in American Express, Apple, Berkshire Hathaway, Coca-Cola, VanEck Morningstar Wide Moat ETF, and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Berkshire Hathaway, Transurban Group, and Wesfarmers and is short shares of Apple. The Motley Fool Australia has positions in and has recommended Telstra Group, Transurban Group, and Woolworths Group. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, VanEck Morningstar Wide Moat ETF, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Few ASX shares look as out of favour right now as Jumbo Interactive Ltd (ASX: JIN).

The online lottery and digital gaming business is trading at around $8 per share, just above its 52-week low of $7.46. That leaves Jumbo well below the levels above $15 investors saw in the past and down heavily over the past year.

When a business with a long operating history and a profitable model falls this far, the obvious question becomes whether the market is spotting a deeper problem — or creating an opportunity.

What Jumbo actually does

Jumbo is best known as an online lottery business, but it is more than just a digital lottery ticket seller.

The company operates across lottery retailing, managed services, and the fast-growing Dream Giveaways business in the UK and US. That broader mix matters, because it means Jumbo is no longer relying on one engine alone to grow. Offshore expansion and software-style managed services are becoming a bigger part of the story.

That is important context, because the share price weakness does not appear to be driven by an obvious collapse in the operating business.

The latest result was not bad at all

For the six months ended 31 December 2025, Jumbo reported total transaction value of $524.1 million, up 15.6% year-on-year. Revenue rose 29% to $85.3 million. Underlying operating earnings (EBITDA) increased 22.6% to $37.5 million, while profits (underlying NPAT) climbed 22.6% to $22.8 million. The company also declared a fully franked interim dividend of 12 cents per share.

Statutory NPAT did fall 13.4% to $15.5 million, but that appears to reflect acquisition-related and other non-recurring items rather than a clean deterioration in the underlying business.

Just as importantly, management upgraded parts of its FY26 outlook, particularly for Dream Giveaways UK and Canadian managed services. Jumbo also finished the half with $44.7 million in available cash, $57.8 million in available funds, a cash conversion ratio of 129%, and net leverage of only 0.8x.

That is not the profile of a business under obvious financial stress.

So why is the share price so weak?

Part of the answer seems to be sentiment.

Lottery retailing was affected by a softer jackpot cycle, which can weigh on investor enthusiasm. At the same time, smaller ASX growth shares have been under pressure more broadly, especially when markets get nervous and investors pull back from anything perceived as even slightly cyclical or less liquid.

There is also a technical element. Earlier commentary pointed to a prolonged downtrend, with the stock breaking below key support levels and entering oversold territory on some momentum measures.

In other words, the market may be punishing the chart more than the business.

Is this valuation starting to look compelling?

At one point this year, Jumbo was trading on a price-to-earnings ratio of around 13 times, with a dividend yield near 5%.

That is a much more modest rating than investors once gave the company during its higher-growth phase.

Broker views also suggest there may be a gap between market price and analyst expectations. Jarden has reportedly held a buy rating with a $12.70 price target, while Morgans maintained a buy recommendation and an unchanged $14.90 target price after updating forecasts. 

That does not make the stock a sure thing. A low share price alone is never a reason to buy, and “once in a generation” is probably too strong if taken literally. Still, some opportunities are incredibly rare.

When a business is growing revenue, expanding underlying earnings, paying fully franked dividends, upgrading guidance in key segments, and yet trading near a seven-year low, it is fair to say the setup is becoming hard to ignore.

For patient investors, Jumbo may not be a guaranteed bargain.

But it does look increasingly like one of those moments where fear and fundamentals are pulling in opposite directions.

The post Are Jumbo Interactive shares, now at a multi-year low, a once-in-a-generation buying opportunity? appeared first on The Motley Fool Australia.

More reading

• Still down 40% over the past year, how high could WiseTech shares recover?
• Stagflation: How to position an ASX stock portfolio
• Here are the latest growth forecasts for the Wesfarmers share price
• 2 ASX gold shares backed by experts for growth
• Morgans names 3 ASX 200 shares to buy now

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

The Wesfarmers Ltd (ASX: WES) share price has delivered a pleasing performance over the years, rising by around 35% in the last five years, as the chart below shows. In February – before the Iran war – the Wesfarmers share price was up 57% over five years.

The company is best-known as the owner of Kmart, Bunnings and Officeworks, which are three of the leading retailers in Australia.

Wesfarmers may well be able to capture more market share in the current market because its core businesses of Bunnings and Kmart are leaders on value and can help with any pressure on household budgets in the coming period.

The Wesfarmers share price has dropped back recently, so it’s interesting to see what analysts think of the company’s future.

Expert projections for the retailer

According to CMC Invest, of eight analyst ratings within the last three months, there has been one buy rating, four hold ratings and three sell ratings.

The average price target of those eight ratings is $78.68, suggesting a possible rise of around 5% from where it is at the time of rating. A price target tells us where analysts think the share price will be in 12 months from the time of that investment call.

The most optimistic price target of those eight recent ratings is $92.34. That suggests a potential rise of 23% from where it is at the time of writing.

But, there are also negative views on where the Wesfarmers share price could go. The most pessimistic price target is $69.26, implying a decline of more than 7% in the year ahead.

So, while there is a spread of confidence, on average analysts are still leading towards positive capital growth in the year ahead (plus dividend payments).

Why is this a good time to consider the Wesfarmers share price?

The company has great tailwinds to deliver earnings growth in the long-term, with excellent returns on capital (ROC) across Kmart Group and Bunnings Group and expansion in areas like healthcare, lithium mining and international sales of Anko products.

Wesfarmers is expected to generate earnings per share (EPS) of $2.50 in FY26, putting it at 30x FY26’s estimated earnings, according to CMC Invest.

The business is projected to see EPS growth of close to 10% in FY27 to $2.74. EPS is forecast to rise again in FY28 to $2.98 in FY28.That means the current Wesfarmers share price is valued at 25x FY28’s estimated earnings, according to the projection on CMC Invest.

The post Here are the latest growth forecasts for the Wesfarmers share price appeared first on The Motley Fool Australia.

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

S&P/ASX All Ords Gold Index (ASX: XGD) shares are barely in the green for 2026 as the Iran war continues to impact the safe-haven asset.

The gold price is trading at US$4,782 per ounce, up 11.5% in the year to date, following a major sell-off in the first few weeks of the war.

ASX investors sold down their gold shares and ETFs last month, but experts say there are still good buys in the market.

In a newsletter this week, Blackwattle Mid Cap Quality Fund portfolio managers Tim Riordan and Michael Teran said:

… the structural drivers for gold remain firmly intact, with Central Banks continuing to diversify reserves away from US Treasuries and geopolitical uncertainty providing an ongoing floor for demand.

Sprott Managing Partner, Paul Wong, said the gold price drop last month represented a rush to liquidity, not an end to gold’s bull run.

Wong added: “Structural pressures are building toward renewed monetary support—historically a powerful catalyst for gold.”

With that in mind, here are two ASX 200 gold shares that experts are backing for long-term growth.

Newmont Corporation CDI (ASX: NEM)

Newmont Corporation CDI shares dropped 14% in March but have recovered 5% in April so far to $159.07 per share.

Riordan and Teran said Newmont Corporation is the largest, lowest-cost, and most diversified gold miner in the world.

We continue to see material upside for NEM as an ‘enduring high-quality’ business and view NEM as the highest quality gold miner globally.

We expect NEM to execute on numerous multi-year internal levers to maintain and improve business quality, including organic production expansion, operating cost reductions, a net cash balance sheet and further capital returns.

This should allow NEM to deliver a higher quality, lower cost and increasingly diversified asset base through 2026 and 2027, and the March share price weakness represents a highly attractive entry point for a long-term compounder.

Evolution Mining Ltd (ASX: EVN)

The Evolution share price fell 24% in March, and has recovered 8% in April to $13.60 per share.

Morgans upgraded its rating on this ASX 200 gold mining share from hold to accumulate last week.

The upgraded rating followed Evolution’s March quarter report and a separate exploration update.

However, the broker reduced its 12-month price target from $17.16 to $16.10.

This still implies a potential near-20% upside ahead.

Morgans said:

Gold production met expectations despite weather and maintenance impacts, with weaker copper and higher AISC driven by Ernest Henry disruptions.

Strong 4Q26 expected to achieve FY26 guidance. Achieves net cash position with an updated capital management policy expected at its FY26 result in August.

We upgrade to an ACCUMULATE (from HOLD) following recent weakness across the gold sector which we believe has uncovered value in a high-quality name, despite a strong share price reaction post the result.

The post 2 ASX gold shares backed by experts for growth appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• 3 reasons to buy this ASX gold stock in April
• Newmont shares slip as Cadia update puts investors on alert

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 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.

If you are in the market for some new portfolio additions, then it could be worth hearing what Morgans is saying about the shares in this article.

That’s because the broker recently named all three ASX 200 shares as buys. Here’s what you need to know:

Magellan Financial Group Ltd (ASX: MFG)

This fund manager could be worth considering according to the broker. It believes the merger with Barrenjoey is a game-changer and provides “additional pathways for growth.”

Morgans has put a buy rating and $11.99 price target on Magellan’s shares. It said:

MFG has given an end-to-March 2026 quarterly FUM update. FUM (A$37.5bn) was down 6% for the quarter due to a combination of outflows across most funds and market movements. Overall this was a softer quarter at the headline level, albeit some impacts from market volatility are unsurprising. We downgrade our MFG FY26F/FY27F EPS by -1%/-8% due to slightly weaker FUM assumptions and also applying more conservatism to our future Barrenjoey earnings forecasts.

Our PT falls to A$11.99 (from A$12.43). Whilst MFG’s Investment Management performance remains patchy, we think the Barrenjoey merger fundamentally changes MFG’s overall outlook, strengthening the business and providing additional pathways for growth. MFG also retains a strong balance sheet (~A$650m of liquidity, post deal). BUY maintained.

Nufarm Ltd (ASX: NUF)

Another ASX 200 share that has been given the thumbs up is agricultural chemicals company Nufarm.

In response to a better-than-expected performance in FY 2026, the broker put a buy rating and $4.05 price target on its shares. It said:

Pleasingly, NUF’s 1H26 EBITDA guidance was slightly higher than expected and it has had a strong 1H. Importantly, its leverage guidance is materially better than expected. Initial outlook comments for the 2H26 were positive and a new A$50m cost out program has been announced.

Given the appreciation in active ingredient and fish oil prices, NUF’s previous FY26 guidance could prove to be conservative. NUF is our key pick of the ag and chemical sector. The company is materially undervalued and we reiterate our BUY rating with a new price target of A$4.05.

Sigma Healthcare Ltd (ASX: SIG)

Morgans is also bullish on Chemist Warehouse owner Sigma Healthcare.

Due to its strong growth outlook and recent share price weakness, the broker has put a buy rating and $3.36 price target on the ASX 200 share. It explains:

SIG is a leading healthcare wholesaler, distributor and retail pharmacy franchisor with operations in Australia, NZ, Ireland and the UAE. We are forecasting ~20% EBIT growth p.a. over the next few years driven by strong LFL sales growth, store rollout (domestically and internationally), operating efficiencies and $100m p.a. synergies by FY29. Given the share price weakness, we have upgraded our recommendation to BUY (from ACCUMULATE) with an unchanged target price of $3.36 and 26% upside.

The post Morgans names 3 ASX 200 shares to buy now appeared first on The Motley Fool Australia.

More reading

• 2 top ASX shares to buy and hold for the next decade
• I think these are some of the best ASX 200 shares to buy now
• If I had $5,000 to invest in ASX 200 shares today, here’s what I’d buy
• Buy, hold, sell: Evolution Mining, Netwealth, and Nufarm shares
• Why this ASX 200 share could be heading 40%+ higher

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.

The S&P/ASX 200 Index (ASX: XJO) has jumped 14.5% higher over the past 12 months, but there is one stock strongly outpacing the index. Better still, it’s tipped to keep going.

Codan Ltd (ASX: CDA) shares ended the day 4.5% higher on Tuesday afternoon, at $36.47 a piece. The latest increase brings the ASX 200 stock 26% higher over the year-to-date and nearly 150% higher over the past 12 months.

Here’s why the ASX 200 stock is soaring

Codan develops electronics solutions for government, military, corporate, and consumer markets globally. The company provides products and services in communications, metal detection, and mining technology. 

Essentially its business is split into two divisions: communications and metal detection.

Like other defence-related companies, Codan shares have risen higher this year off the back of rising geopolitical tension and an uptick in demand for defence technology systems. Communication systems are one of the first things which the military upgrades because things like radios and communication systems are critical in conflict situations.

Elsewhere, Codan’s metal detection business (Minelab) has been well supported by strong gold detector sales. Its gold detectors are typically used by small-scale miners and are particularly popular in remote parts of Africa. The company also has solid demand across recreational markets globally. A lot of the demand for metal detectors has followed booming gold prices. Gold rush activity typically sees more individuals and smaller players try their hand at hunting for gold.

It’s not just defence and gold sector tailwinds pushing the Codan price higher though.

The ASX 200 stock’s strong earnings growth and robust financial performance has attracted a flurry of interest in its shares over the past 12 months.

Codan’s standout results point to long-term growth

The company revealed a huge surge in earnings when it posted its first-half FY26 results in February. 

Codan announced a 29% increase in group revenue, a 55% hike in NPAT and a 52% rise in EBIT. They’re some impressive numbers.

Most importantly, company growth was attributed to strong growth in both of its business segments. 

Codan’s communications division experienced revenue growth of 19% and maintained profit margins despite temporary headwinds in the Zetron Americas business.

It’s metal detection (Minelab) business delivered a standout half. Its revenue increased 46% and segment profit up 86% thanks to gold detector demand in West Africa and robust sales globally.

The company also said it will continue to invest in engineering and new product development. This will help to maintain its competitive edge and diversify its earnings base. 

What upside do analysts expect from Codan shares?

Market Index data shows that three brokers have a buy rating on Codan shares and another two have a hold rating. 

But what they can agree on is that there will be an upside ahead.

The average target price for Codan shares over the next 12 months is $39.68. This implies more than 10% upside for investors. 

It isn’t the same level of growth we’ve seen over the past year, but it suggests that there is plenty more to come out of the electronics solutions business.

The post This ASX 200 stock has jumped 149% in a year, and brokers tip more upside to come appeared first on The Motley Fool Australia.

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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.