Tag: Stock pick

Hub24 Ltd (ASX: HUB) shares are falling on Tuesday morning.

At the time of writing, the ASX 200 stock is down 4% to $91.63.

Why is this ASX 200 stock falling today?

Investors have been selling the investment platform provider’s shares today despite the release of a solid third-quarter update, which highlights continued momentum across its business.

According to the release, Hub24 achieved platform net inflows of $4 billion for the third quarter of FY 2026.

This represents a 9% increase on the prior corresponding period when excluding large migrations. It is possible that the market was expecting an even stronger increase for the quarter.

Funds under administration surge

The ASX 200 stock revealed that total funds under administration (FUA) reached $151.7 billion at the end of March.

This represents a 22% increase on the prior corresponding period, driven by strong inflows and continued platform adoption.

Platform FUA alone rose 25% year on year to $127.8 billion, though it was broadly flat over the quarter due to negative market movements of $4.1 billion offsetting inflows.

Market share gains continue

Hub24 also pointed to its strong competitive position within the platform market.

The ASX 200 stock ranked first for both quarterly and annual net inflows for a ninth consecutive quarter, based on the latest available data.

It also achieved the largest market share gains of all platform providers, lifting its market share to 9.7%. This is up from 8.3% a year ago.

Management notes that growth is being driven by a combination of strong retail inflows and a pipeline of new and existing client relationships.

Adviser growth and new agreements

During the quarter, Hub24 signed 37 new licensee agreements and increased the number of advisers using its platform by 272 to 5,549.

This represents an 11% increase over the past year and reflects ongoing demand from financial advisers for its platform offering.

The company believes this expanding adviser base will continue to support inflows in future periods.

Acquisition news

In addition to the strong operational performance, the ASX 200 stock revealed that it has exercised a call option to acquire HTFS Nominees, which is the trustee of the Hub24 Super Fund.

The acquisition is expected to be completed by the end of 2026, subject to regulatory approvals, and is not anticipated to have a material impact on earnings.

Management notes that bringing the trustee function in-house is expected to enhance control and support long-term growth of its superannuation offering.

The post Why is this ASX 200 tech stock tumbling today? appeared first on The Motley Fool Australia.

More reading

• HUB24 grows Q3 inflows and funds under administration
• 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
• Why I’d buy these ASX 200 stocks if I were a beginner
• Why these ASX 200 stocks could be perfect for buy and hold investors

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Yancoal Australia Ltd (ASX: YAL) shares are on the slide on Tuesday morning.

At the time of writing, the ASX 200 coal stock is down slightly to $6.59.

Why is this ASX 200 coal stock sliding?

The company’s shares are under pressure following the release of its quarterly update, which highlighted softer production and sales volumes alongside rising cost pressures.

According to the update, attributable saleable coal production came in at 9.0 million tonnes for the first quarter. This is down 14% compared to the prior quarter and 5% lower than the prior corresponding period.

Attributable coal sales were also weaker at 8.2 million tonnes, reflecting both lower production and the timing of shipments during the period.

Total run-of-mine coal production was broadly steady year on year at 15.0 million tonnes, though lower than the previous quarter.

Management noted that the first quarter was always expected to be the weakest period for production in FY 2026, with output forecast to increase over the remaining quarters of the year.

The company reported an average realised coal price of A$146 per tonne, which was slightly lower than the prior quarter and down from A$157 per tonne a year earlier.

Management advised that this reflects a mix of factors, including contract structures and timing, which can delay the flow-through of higher coal prices into realised pricing.

Encouragingly, coal price indices increased during the quarter, which management expects will begin to support realised prices from the second quarter onwards.

Cost pressures building

One of the key themes from the update is rising cost pressure, particularly from higher diesel prices.

Diesel represents a meaningful portion of mining costs, and the ASX 200 coal stock has warned that recent increases are expected to push FY 2026 cash operating costs toward the upper end of its guidance range of A$90 to A$98 per tonne.

Management also flagged some uncertainty around diesel supply beyond May, noting that contingency plans are in place should supply constraints emerge.

The company’s CEO, Sharif Burra, explained:

We have secured diesel supply until around the end of May, and are working closely with our main suppliers. Beyond this horizon, continuity of diesel supply may become less certain, and as a prudent measure we have established contingency plans. Given the outlook for diesel prices, we now anticipate cash operating costs for the year could be close to the upper end of our guidance range based on the current forecasts. Uncertainty in global oil and diesel markets will require ongoing assessment of our cost profile.

Outlook

The ASX 200 coal stock has maintained its FY 2026 production guidance of 36.5 million to 40.5 million tonnes.

Capital expenditure guidance of A$750 million to A$900 million also remains unchanged.

Burra adds:

In the current market conditions, our scale, margins, financial strength and access to debt serve us well to compete in the seaborne global market, and we have recently utilised these advantages to grow the business by acquiring a high-margin, long-life asset.

Yancoal Australia shares are up 38% over the past 12 months.

The post ASX 200 coal stock slips on soft quarterly update appeared first on The Motley Fool Australia.

More reading

• Why Boss Energy, Telix, Woodside, and Yancoal shares are falling today
• ASX 200 coal stock higher on US$2.4 billion deal
• Yancoal Australia announces $2.4bn Kestrel Coal Mine acquisition
• 7 ASX 200 shares just upgraded to strong buy ratings
• ASX 200 energy shares whipsaw amid fragile ceasefire

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.

Orthocell Ltd (ASX: OCC) shares are in focus today after its share price tumbled 7% to start the week of trading on Monday. 

This came following the company’s Quarterly Activity Report. 

Orthocell is a regenerative medicine company. The company is engaged in the development and commercialisation of biological medical devices, cell therapies, and related technologies to address unmet clinical needs in human health in the regenerative medicine industry.

What did Orthocell report?

The company released its Quarterly Report for the quarter ended 31 March 2026 yesterday. 

It reported: 

• Year-to-date (Q1–Q3 FY26) revenue of $9.4 million represents a 45% increase on the prior corresponding period
• March quarter revenue in line with the prior quarter, with U.S. sales reaching $300k
• Total revenue of $3.2m. 

Speaking on the result, Orthocell CEO and MD, Paul Anderson, said: 

This quarter reflects continued strong progress in the commercialisation of Remplir, particularly in the United States, where we are seeing growing surgeon adoption and increasing revenue contribution.

The consistency of our revenue performance and the growth in key commercial metrics, including hospital uptake, surgeon utilisation and distributor expansion, is particularly encouraging. Notably, the acceleration in U.S. revenue in March provides early evidence of a potential inflection point as these commercial efforts begin to scale.

Investors were seemingly left wanting more, as investors largely exited their positions in Orthocel shares on Monday. 

What did Bell Potter have to say?

Following the result, the team at Bell Potter released updated guidance on the company. 

The broker said the March quarter total revenue of $3.2m was flat QoQ (+45% pcp), which

appears broadly consistent with softer seasonal conditions typically seen in calendar Q1. 

It also pointed to some lag on repeat ordering as first use surgeons evaluate product performance in their own case. 

The quarter also marked the first meaningful US revenue contribution, with $300k of Remplir revenue, including $170k generated in March alone.

Speculative buy rating for Orthocell shares

Orthocell shares closed yesterday at $0.955 per shares after a 7.7% drop. 

However, Bell Potter maintained its speculative buy rating, while also increasing its price target to $1.240 (previously  A$1.150). 

From yesterday’s closing price, this updated target indicates an upside of approximately 30%. 

We maintain our BUY (spec.) recommendation and raise our valuation to $1.24. While the military hospital access win represents a meaningful de-risking event, we expect uptake across these channels to take time to establish, with the greater earnings contribution likely to emerge over later years.

The post Are Orthocell shares a buy after crashing 7% yesterday? appeared first on The Motley Fool Australia.

More reading

• Orthocell caps 26% surge this week with first US Military Surgery
• Orthocell shares soar 22% on landmark US breakthrough

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

When markets get noisy, investors usually crowd into the obvious narratives.

Right now, that has meant plenty of focus on war, energy shocks, inflation pressure, and whether artificial intelligence will upend huge parts of the software sector.

And yet, while much of the market has been distracted by those headline themes, two ASX small caps have simply kept getting on with the job.

Duratec Ltd (ASX: DUR) and Tasmea Ltd (ASX: TEA) are not the kinds of businesses that usually dominate cocktail-party investing conversations. They are not glamorous. They are not promising to reinvent the world. Yet, over the past 12 months, their share prices have climbed over 73% and 107% respectively.

That is a useful reminder that great investing does not always come from the loudest story. Sometimes it comes from relatively mundane businesses executing well in the background.

Two businesses built around essential work

Duratec is an engineering and contractor group with growing exposure to complex remediation, infrastructure, defence, and energy and resources work.

Recent announcements show why the market has been warming to it. In March, Duratec secured a contract at Newmont’s Lihir site in Papua New Guinea that is expected to generate around $45 million of revenue over an initial 12-month period, with potential for more scope over time. Management said the deal supported its strategy of doing more work with existing clients while expanding into new regions.

Then in April, Duratec’s 50:50 joint venture with Ertech was awarded a $281 million contract tied to infrastructure upgrades at HMAS Stirling in Western Australia. That followed an earlier $5.2 million early contractor award, taking the total value of the works to just under $300 million. The main works contract is expected to run for around 24 months.

That matters. Investors often pay more attention when a business starts shifting towards larger, longer-duration projects with better revenue visibility.

Tasmea, meanwhile, is a diversified specialist trade services group. It owns and operates 26 inter-dependent Australian specialist trade skill services businesses that support essential maintenance, shutdowns, emergency breakdown work, brownfield upgrades, and labour hire for blue-chip fixed plant asset owners.

Its operations reach across mining and resources, oil and gas, defence, infrastructure and facilities, power and renewables, telecommunications, retail, aged care, waste, and water. In other words, Tasmea sits inside parts of the economy that still need skilled hands, regardless of whether investors are currently obsessed with software or geopolitics.

Why business momentum has been strengthening

Tasmea’s recent half-year results gave the market more evidence that its growth is not just a story.

For the first half of FY26, Tasmea reported revenue of $400.5 million, up 62.4% on the prior corresponding period. Underlying operating profit (EBIT) rose 35.8%, while underlying net profit (NPAT) increased 31.8%. It also lifted its interim dividend by 20% to 6 cents per share.

Management has highlighted more than 100 executed master services agreements, high recurring revenue, and a twin-pillar strategy built on organic growth plus disciplined acquisitions.

That model helps explain the market’s growing confidence. Tasmea is not relying on a single product or a one-off trend. It is building scale across fragmented, essential services markets.

Duratec’s strengthening appears a little different, but still compelling. The company is winning work in sectors where trust, capability, and project execution matter. The PNG award expands its energy and resources footprint, while the HMAS Stirling contract strengthens its credentials in defence infrastructure and gives it more revenue visibility across the next two years.

The bigger lesson for investors

There is a reason these sorts of businesses can be overlooked.

They are not flashy. They do not fit neatly into the biggest market narratives of the moment. And they rarely get described as “world-changing”.

But the share market does not only reward excitement. It also rewards businesses that keep compounding through contract wins, earnings growth, disciplined expansion, and exposure to essential industries.

That is what makes Duratec and Tasmea interesting.

While investors worried about war headlines and AI disruption, these two ASX small caps kept doing practical work in the real economy, and the market noticed.

Sometimes, the big returns are hiding in plain sight.

The post While the market worried about war and AI, these 2 ASX small caps kept climbing appeared first on The Motley Fool Australia.

More reading

• Guess which ASX stock is flying after a huge defence contract win
• 2 ASX small-cap shares to buy with big potential for returns
• This ASX contractor just landed a PNG deal. So why is the share price falling?
• Are these ASX shares hitting 52-week highs still worth buying?

Motley Fool contributor Leigh Gant has positions in Duratec and Tasmea. 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.

Bell Potter has been running the rule over the quick service restaurant (QSR) industry in Australia.

Let’s now see whether it is bullish, bearish, or something in between on the shares of Australia’s three major listed players.

Here’s what the broker is saying:

Collins Foods Ltd (ASX: CKF)

Bell Potter has initiated coverage on this KFC-focused quick service restaurant operator’s shares with a buy rating and $10.80 price target.

The broker thinks that Collins Foods shares are the best value based on its forward multiples and its positive growth outlook. It explains:

We view CKF as the best-positioned QSR name due to its mix of 1) leading unit economics, 2) strong value offering at ~30% lower than its 2 key ASX-listed competitors (crucial in a consumer tightening cycle), and 3) exposure to diverse economies with a continued development pipeline in key markets, with BPe FY26e 7 new restaurants in Australia and 11 in Germany (vs. company ambition of Australia 7- 10 restaurants per annum and Germany 45-90 new restaurants over four years).

We note CKF is trading at a multiple (~14x FY27e) that we deem as cheap in comparison to its peers, when considering its recent positive SSSG and NPAT growth reiteration in March. Our confidence lies with management’s strong track record of execution in domestic and international markets historically resulting in acquisitive and organic earnings growth.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The broker has started with a hold rating and $18.00 price target on Domino’s shares.

Although it acknowledges that its shares are trading on low multiples, it feels that this is justified based on its modest earnings growth outlook. It adds:

DMP is resetting its pricing strategy toward more profitable discounting, after a period of intense discounting to win back a customer that was lost due to previous aggressive price increases.

We note DMP is trading at a P/E multiple (~13x BPe FY27e) that we deem as appropriate in comparison to its peers, when considering our forecasted 3- year EPS CAGR of ~3%, (CKF ~11%, GYG ~53%) paired with ongoing risk within its Asia business, particularly given its overall contribution to network sales.

Guzman Y Gomez Ltd (ASX: GYG)

Bell Potter has initiated coverage on Guzman Y Gomez shares with a hold rating and $22.10 price target.

While the broker believes the burrito seller deserves a premium valuation, it is just a little too much at present to justify a buy rating. It explains:

Within Australia, GYG has the highest set of unit economics compared to CKF and DMP, due to a mix of premium menu pricing and a skew towards higher margin drive thru restaurants (~53% of total restaurant network). Moving forward, this is intended to be the strategy to boost profitability, with >85% of its 108 restaurant pipeline targeted at being drive thru format.

Since IPO, GYG has traded at ~37x trailing EV/EBITDA, a significant premium to its peers that we viewed as excessive and led by lofty expectations of US expansion. We do, however, still see a premium as warranted, underpinned by GYG’s differentiated concept and growth profile that extends well beyond its domestic peers. On a forward looking basis, GYG now trades at ~24x BPe FY26e EBITDA, a level we view as still relatively elevated given future growth expectations are driven by the Australian segment.

The post Buy, hold, sell: Collins Foods, Domino’s, and Guzman Y Gomez shares appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Why did Morgans just lower its outlook on Collins Food and Pro Medicus shares?
• These are the 10 most shorted ASX shares
• 3 discounted ASX 200 shares to buy before they rebound 
• These are the 10 most shorted ASX shares

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

Not all ASX stocks are created equal, but some stand out for very different reasons.

Breville Group Ltd (ASX: BRG) is quietly building a global premium brand, while Lovisa Holdings Ltd (ASX: LOV) is scaling a fast-fashion jewellery model across the world.

Both growth stocks have faced pressure recently, but their international growth stories could set them up for strong long-term returns.

Breville: Compelling long-term play

Starting with Breville. This ASX stock is often labelled as a kitchen appliance company, but that undersells what’s really happening.

Breville has spent years positioning itself as a premium global brand. Its products don’t compete on price. Instead, they focus on quality, design, and performance. That strategy has helped it carve out a loyal customer base and expand successfully into key international markets, particularly the US.

As brand recognition grows, so does its ability to scale. This is where the long-term opportunity lies. Building a brand takes time, but once established, it becomes a powerful competitive advantage that’s difficult for rivals to replicate.

That brand strength can translate into pricing power, higher margins, and sustained growth over time. It’s not a quick win, but it’s a compelling long-term play.

Analysts at Morgans are positive on the outlook, maintaining a buy rating and a $40.65 price target on the ASX stock. That suggests a 39% upside at current price levels.

Lovisa: Rapid turnover and trend agility

Then there’s Lovisa, which has taken a very different path, but with equally global ambitions.

This $2.5 billion ASX stock has built a fast-fashion jewellery empire, driven by a model that emphasises rapid product turnover and trend responsiveness. Its ability to quickly adapt to changing consumer tastes has been a key driver of success.

The real story, though, is expansion. Lovisa has rolled out stores across Europe, the US, and Asia, and still has a long runway for further growth. This international footprint is what makes the business so appealing over the long term.

However, the market has become more cautious.

Cost inflation, softer consumer spending, and concerns about margins have weighed on sentiment. Retail is highly sensitive to economic conditions, and Lovisa is not immune to those pressures.

That caution is reflected in analyst views. Bell Potter Securities recently retained a hold rating on the ASX stock but cut its price target to $24 from $33.50, a notable downgrade. From current levels, that suggests modest downside in the near term.

Still, short-term challenges don’t necessarily derail a long-term growth story. If Lovisa can continue executing its global rollout and maintain its fast-fashion edge, the business could keep expanding well beyond its current footprint.

The post 2 ASX growth stocks to buy now and hold until 2036 appeared first on The Motley Fool Australia.

More reading

• 3 ASX 300 shares to buy and hold for the next decade
• Are these the best ASX growth shares to buy and hold for 10 years?
• 5 ASX growth shares to buy and hold for 5 years
• Where to invest $10,000 in ASX shares in April
• Where to invest $500 in ASX shares right now

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

Now could be an opportune time to buy WiseTech Global Ltd (ASX: WTC) shares.

That’s the view of analysts at Bell Potter, who believe this logistics solutions technology company is too cheap to ignore right now.

What is the broker saying?

Bell Potter has been busy updating its estimates to reflect impacts from the war in the Middle East.

While this has led to modest downgrades, the broker is still expecting double-digit growth from WiseTech. It said:

We have reviewed our WiseTech forecasts and elected to take a more conservative approach in light of the conflict in the Middle East and the impact this is having on both freight volumes and the global macro environment. We have also chosen to reflect some of the risk that DSV moves part of its operations away from CargoWise onto its own in-house system, Tango, in the short to medium term. And lastly we have also reduced our e2open growth forecasts for conservatism.

The net result is revenue downgrades of 1%, 4% and 9% and EBITDA downgrades of 1%, 3% and 6% in FY26, FY27 and FY28. Note that in FY26 we now forecast revenue and EBITDA of US$1.41bn and US$564m which are within but more towards the lower end of the US$1.39-1.44bn and US$550-585m guidance ranges. We do, however, now only forecast 13% CargoWise growth in FY26 versus the guidance of 14-21%.

WiseTech shares look cheap

Despite the above, the broker believes that WiseTech shares are cheap, especially in comparison to other tech stocks like TechnologyOne Ltd (ASX: TNE). It explains:

There are no changes in the key assumptions we apply in the valuations used to determine our target price – multiples of 55x and 30x in the PE ratio and EV/EBITDA and a WACC of 8.6% in the DCF. The net result of the downgrades is a 6% decrease in our target price to $78.75 which is still a significant premium to the share price so we maintain our BUY recommendation.

We note that WiseTech is currently trading at >30% discount to Technology One on an EV/EBITDA basis in both FY26 and FY27. While we believe some sort of discount is now warranted, we believe the current discount is excessive given WiseTech has greater forecast earnings growth over the medium term and also a similar strong competitive moat due to 30 years of proprietary data, deeply embedded software and high switching costs.

As mentioned above, Bell Potter has put a buy rating and $78.75 price target on WiseTech shares. Based on its current share price of $45.49, this implies potential upside of 73% for investors over the next 12 months.

The post Why WiseTech shares could rise 70% appeared first on The Motley Fool Australia.

More reading

• Is the worst over for Xero shares? Here’s what the chart is showing
• WiseTech shares are surging again, is it too late to buy now?
• 5 things to watch on the ASX 200 on Tuesday
• Want to double your money in 2026? This is what I’d buy
• How much could a $10,000 investment in these undervalued ASX 200 shares be worth in a year?

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

Warren Buffett has been one of the greatest investors the world has ever seen as he (and Charlie Munger) built Berkshire Hathaway into an incredible, globally recognised company. Though, he didn’t accomplish that by investing in S&P/ASX 200 Index (ASX: XJO) shares because he’s American.

Buffett famously wanted to stay inside his ‘circle of competence’. In other words, he only wanted to stick to industries that he understands.

That meant he avoided some sectors like technology, even if that meant missing out on some of the returns.

When looking at the list of businesses that Berkshire Hathaway has invested in and owned over the years, there are a few industries that stick out, with one being furniture. In my view, one of the ASX 200 shares that Warren Buffett would consider if he were Australian is Nick Scali Ltd (ASX: NCK).

Numerous positives about Nick Scali shares

Nick Scali is one of the larger furniture businesses in Australia, with its Nick Scali and Plush brands. It also has a small Nick Scali UK division which was originally called Fabb Furniture when it was first acquired.

There are a number of things that I’m sure Warren Buffett would want to see.

Growth in the gross profit margin is a pleasing factor because it shows that increasing scale (or another positive factor) is helping. In the FY26 half-year result, the gross profit margin increased from 62.3% last year to 65.4%.

Other profit margins improving are also a great positive. HY26 revenue rose 7.2% to $269.3 million, the operating profit (EBITDA) grew 18.1% to $96.6 million and net profit rose 23.1% to $41 million. As you can see, EBITDA and net profit both increased a lot faster than revenue.

As a bonus, the business is generous when it comes to the passive income. In HY26, the business hiked its interim dividend by 30%.

I think the ASX 200 share would be particularly compelling to Warren Buffett because of how much room for growth the business still has. It could add dozens of stores in Australia (and New Zealand), as well as the UK.

Increased scale could play a significant part in the company’s profitability in the coming years.

The valuation numbers are also appealing. According to the projection on Commsec, the Nick Scali share price is valued at 16x FY26’s estimated earnings, at the time of writing.

Passive income is expected to increase year-over-year in the 2026 financial year. According to the projection on Commsec, the business is forecast to pay an annual dividend per share of 78.1 cents.

That estimate on Commsec implies a potential grossed-up dividend yield of 7.1%, including franking credits, at the time of writing.

The post Would Warren Buffett buy this ASX 200 share? appeared first on The Motley Fool Australia.

More reading

• Lynas Rare Earths shares in focus after record revenue and new supply deals
• Challenger plans 2026 redemption of Capital Notes 3 with final distribution
• Rio Tinto Q1 FY26: Production growth and steady guidance drive optimism
• HUB24 grows Q3 inflows and funds under administration
• Cleanaway Waste Management shares in focus as strategy refresh targets margin growth

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

The Lynas Rare Earths Ltd (ASX: XJO) share price is in focus today after the company delivered its highest quarterly sales revenue since 2022 and reported a sharp lift in rare earth oxide (REO) production.

What did Lynas Rare Earths report?

• Quarterly gross sales revenue of A$265.0 million, up 115% from Q3 FY25
• Sales receipts of A$234.0 million
• Closing cash and short-term deposits at A$1,070.0 million
• Total REO production of 3,233 tonnes, including 1,996 tonnes of NdPr
• First-ever production of Samarium oxide, ahead of schedule
• CAPEX, exploration, and development payments reduced to A$32.6 million for the quarter

What else do investors need to know?

Lynas recorded its strongest revenue in almost four years, driven by a 25% increase in the average NdPr selling price and higher volumes of rare earth sales. The sales mix was further enhanced with the introduction of Samarium oxide, making Lynas the only commercial producer and supplier of both light and heavy rare earths outside China.

The company renewed its Malaysian operating licence for 10 years, offering stability for further investment. Lynas also announced two new agreements with Japanese partners JARE, including a 12-year NdPr supply contract at minimum pricing, and a framework to boost rare earths cooperation. In March, Lynas inked a framework agreement with LS Eco Energy for a new rare earth metal facility in Vietnam, supporting their strategy to expand the metal and magnet supply chain outside China.

What did Lynas Rare Earths management say?

Chief Executive Officer and Managing Director Amanda Lacaze said:

Our ramp up has delivered strong production and sales outcomes, with key initiatives positioning Lynas for the future and strengthening business resilience.

What’s next for Lynas Rare Earths?

Looking ahead, Lynas aims to further develop its global supply chains with new partnerships in Japan, the US, and Asia. The company’s Towards 2030 strategy focuses on securing new feedstock sources, expanding rare earth separation capability, and adding value-add processing facilities such as the planned magnet plant in Malaysia.

Investment in renewable energy is already paying off, with higher operational efficiency and cost savings at Mt Weld. Lynas remains committed to safety, sustainability, and innovation as it continues to grow its rare earths business in evolving global markets.

Lynas Rare Earths share price snapshot

Over the past 12 months, Lynas Rare Earths shares have risen 130%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 15% over the same period.

View Original Announcement

The post Lynas Rare Earths shares in focus after record revenue and new supply deals appeared first on The Motley Fool Australia.

More reading

• Would Warren Buffett buy this ASX 200 share?
• Challenger plans 2026 redemption of Capital Notes 3 with final distribution
• Rio Tinto Q1 FY26: Production growth and steady guidance drive optimism
• HUB24 grows Q3 inflows and funds under administration
• Cleanaway Waste Management shares in focus as strategy refresh targets margin growth

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 recommended Lynas Rare Earths Ltd. 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.

When it comes to long-term investing, quality ASX shares tend to rise to the top. Businesses with strong competitive advantages, consistent earnings, and the ability to reinvest for growth often deliver the best returns over time.

While markets can be unpredictable in the short term, high-quality companies can keep compounding for years.

Here are two ASX shares that could be worth considering for long-term investors.

REA Group Ltd (ASX: REA)

REA Group is a prime example of an ASX share that could consistently compound over years. It operates Australia’s leading online property marketplace and has built a dominant position that is incredibly difficult to disrupt. Its platform is deeply embedded in the real estate ecosystem, making it the go-to destination for buyers, sellers, and agents.

That dominance translates into pricing power. Even during softer property cycles, REA has historically grown revenue through premium listings and value-added services. This ASX share is not just exposed to housing activity; it actively monetises it.

The business has also continued to evolve. By adding new tools, data insights, and digital services, REA is strengthening its offering and deepening customer engagement. This reinforces its competitive moat and supports long-term growth.

With high margins, a leading market position, and structural exposure to housing demand, REA appears well placed to keep delivering over the next decade. Analysts at Bell Potter Securities recently placed a buy rating on the stock with a $211 price target, implying potential upside of around 21% from current levels.

TechnologyOne Ltd (ASX: TNE)

Another high-quality name to watch is TechnologyOne. The enterprise software company has been a standout performer over the years, even after experiencing a pullback through late 2025 and early 2026.

The $10 billion ASX tech share provides software solutions to government agencies, universities, and large organisations. Its transition to a cloud-based software-as-a-service (SaaS) model has transformed the business, driving predictable and growing recurring revenue.

Its latest financial performance highlights that strength. The company delivered 18% revenue growth to $554.6 million and a 19% increase in profit before tax to $181.5 million. Consistency at that level is a key reason investors have been drawn to the stock.

One of its biggest advantages is customer stickiness. Once its software is embedded into an organisation’s operations, switching providers becomes costly and complex. That leads to high retention rates and supports long-term earnings growth.

There’s also an international growth angle. TechnologyOne has been expanding in the UK, which could provide an additional runway for growth in the years ahead.

With strong margins, recurring revenue, and a scalable platform, TechnologyOne has the characteristics of a business that can continue compounding over the long term.

Most analysts see the ASX share as a buy or strong buy. The average 12-month price target sits around $32, which points to a 6% upside. The most bullish price target is $38.70, 27% above the current share price.

The post 2 elite ASX shares to buy in April and hold for the next decade appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I’d feel comfortable holding for the next decade
• 3 ASX 300 shares to buy and hold for the next decade
• 5 things to watch on the ASX 200 on Monday
• ASX 200 tech shares rocket 13% as long-awaited sector rebound accelerates
• Which ASX 200 tech stock has Bell Potter just downgraded?

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