Tag: Stock pick

Shares in Bellavista Resources Ltd (ASX: BVR) were surging higher on Wednesday after the company announced a significant capital raise at a discount.

This is unusual, as a company’s share price tends to head south when a decent capital raise is announced, but the explanation might lie in news that came out earlier in the week.

Deal flow enticing shareholders

Bellavista announced on Monday that it had struck an agreement with fellow gold company FireFly Metals Ltd (ASX: FFM) to acquire 70% of the Pickle Crow gold project in Ontario, Canada, and to exercise the option to increase that interest to 80% subject to some conditions.

The Pickle Crow project has an inferred mineral resource of 2.8 million ounces of gold at a grade of 7.2 grams of gold per tonne, the company said on Monday.

Bellavista added in its statement on Monday that it believed there was “immense exploration upside” at Pickle Crow and other landholdings in the Uchi and Wabigoon belts in Canada, and it would be kicking off an “aggressive” exploration campaign.

Firefly said in its release on Monday that it would be paid 60 million Bellavista shares and 50 million performance rights for the Pickle Crow project, with an aggregate value of $86.1 million.

The $1.5 billion company would then distribute these shares to its own shareholders by way of a pro-rata, in-specie distribution.

Well-funded for exploration

Back to the capital raise, Bellavista said it would have $32 million in cash after raising the new money at 75 cents per share, with the proceeds to be used to exercise the Pickle Crow earn-in and to fund exploration programs in Canada and at its Brumby project in Western Australia.

The money would be raised in two tranches, with $16 million of the new raise requiring shareholder approval.

Bellavista Managing Director Glenn Jardine said the capital raise was well-received.

We are extremely pleased with the level of support for the Company and the proposed acquisition of up to an 80% interest in the Pickle Crow Project and additional exploration tenure in Ontario, Canada from FireFly Metals, as shown by this highly successful capital raising. Bellavista will emerge well-funded to aggressively explore the Pickle Crow project (subject to completion of the Acquisition) which has seen limited exploration since 2023. We believe the project has significant exploration upside with the large, high grade gold resource remaining open along strike and down dip and we have ambitious growth plans with the right team in place to drive that growth.

Bellavista shares were 8.2% higher at 85.5 cents at about noon on Wednesday.

The company was valued at $80.4 million at the close of trade on Tuesday.

The post Why are shares in this gold developer heading higher after a capital raise? 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.

Yesterday, amid resurgent inflation, ASX investors were faced with the first RBA interest rate hike since November 2023.

That was back when Australia’s central bank lifted the official cash rate to 4.35%.

Which is where rates remained until February 2025, when the RBA delivered its first cut since November 2020. And in case you’ve forgotten, in November 2020, the cash rate was cut to a rock bottom 0.10% in an, erm, effort to spur ‘stubbornly missing’ inflation.

Careful what you wish for!

Following two more rate cuts in 2025, the benchmark interest rate stood at 3.60% on Tuesday morning. But on Tuesday afternoon, the RBA board announced in a unanimous decision that it was boosting the cash rate to 3.85%.

“The board has been closely monitoring the economy and judges that some of the increase in inflation reflects greater capacity pressures,” the board noted.

And ASX investors hoping for a reprieve later in the year may be left wanting.

“The board judged that inflation is likely to remain above target for some time and it was appropriate to increase the cash rate target,” the RBA noted. The board now doesn’t expect inflation to return to its 2% to 3% target range until 2028.

The big question now is not so much when Australia’s central bank may move to cut interest rates, but rather if you should be buying ASX shares with the prospect of another rate hike on the horizon.

The RBA’s next two rate-setting meetings are on 17 March and 5 May.

With that question in mind, we turn to the economists at Commonwealth Bank of Australia (ASX: CBA).

What is CBA forecasting for RBA interest rates?

“Inflation is simply too high for the RBA at this stage, and the central bank has signalled a stronger resolve to bring it back within target,” CBA head of Australian economics Belinda Allen said.

“This is ultimately a fine‑tuning exercise. But unless inflation materially undershoots in the March quarter, the RBA is unlikely to pause in May,” she added.

CBA expects the RBA to hold tight in March, with the official interest rate then likely to be lifted by another 0.25% at the central bank’s May meeting.

According to Allen:

As previously flagged, the risk always sat with a second rate hike to bring inflation back towards target and the economy back into balance. With the labour market now in a better position than a few months ago, and an increased resolve from the RBA, on the balance of probabilities we now see the RBA hiking again in May to take the cash rate to 4.10%.

Of course, a May rate hike is not locked in.

Allen concluded:

It would take a material undershoot in inflation in the March quarter for them to not hike the cash rate again in May. But this is a close call and will also depend on other data flow, particularly the labour market as well as high frequency indicators.

With yesterday’s rate hike largely expected, the S&P/ASX 200 Index (ASX: XJO) closed the day up 0.9%.

The post Buying ASX shares? Here’s what CBA says to expect from interest rates following Tuesday’s RBA hike appeared first on The Motley Fool Australia.

More reading

• Why are shares in this gold developer heading higher after a capital raise?
• Buy, hold, sell: A2 Milk, ARB, and Wesfarmers shares
• 2 strong Australian stocks to buy now with $5,000
• Here’s what Bell Potter is saying about PLS shares in February
• Why are shares in this biotech charging higher after a capital raise?

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

If you are looking for some investment ideas, then read on.

That’s because analysts have just given their verdict on three popular ASX shares.

Here’s what they are saying, courtesy of The Bull, this week:

A2 Milk Company Ltd (ASX: A2M)

The team at Baker Young notes that this infant formula company’s shares have come under pressure due to news that Chinese birth rates have fallen heavily.

However, it doesn’t think its shares have fallen quite enough to warrant anything more than a hold rating right now. It said:

A2M shares tumbled about 12 per cent on January 19 following news that birth rates in China – its key infant formula market – fell 17 per cent in 2025 to multi-decade lows. While this suggests continued headwinds for demand, we note the company is still likely to see mid-single digit sales and earnings growth in fiscal year 2026.

A2M enjoys significant pricing power in China, boasts a strong balance sheet and has the potential to further diversify its products and end markets over the medium term.

ARB Corporation Ltd (ASX: ARB)

Another ASX 200 share that has fallen heavily is 4×4 parts manufacturer ARB. This has been driven by the release of a disappointing trading update.

Despite this decline, Baker Young notes that its shares are still trading above its valuation. As a result, it has put a sell rating on its shares. It said:

The four wheel drive accessories maker warned on January 20, 2026 that sales in key Australian and OEM (original equipment manufacturer) markets continued to decline in the first half of 2026. While exports to the United States were better than expected, it represents a smaller portion and lower margin segment of ARB’s business and is unlikely to offset major headwinds largely beyond the company’s control.

ARB shares were recently trading more than 10 per cent above our valuation, so we suggest investors consider selling around current levels.

Wesfarmers Ltd (ASX: WES)

Over at Morgans, its analysts recognise the quality of this conglomerate. However, due to a strong re-rating of its shares last year, the broker feels they are fully valued now.

As a result, it has suggested that investors sell Wesfarmers shares this week. It said:

Wesfarmers remains a high quality industrial conglomerate, but after a strong re-rating through 2025 and solid fiscal year 2025 results, the stock, in our view, now screens as close to fully valued with limited upside. Shares were recently trading near the upper end of its recent range, supported by resilient results at Bunnings and Kmart.

However, broader group earnings are increasingly sensitive to macroeconomic conditions across retail, industrials and commodities. While the longer term outlook remains strong, the recent valuation already captures much of the good news. With the stock priced for perfection amid slowing momentum, we believe investors may benefit from reducing exposure at these levels.

The post Buy, hold, sell: A2 Milk, ARB, and Wesfarmers shares appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation and Wesfarmers. The Motley Fool Australia has recommended ARB Corporation and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Certain Australian stocks look particularly appealing at current valuations. I’m going to highlight two of them that I’d happily buy with $5,000.

When I think about the Australian economy, a few industries come to mind. Agriculture is one area, while housing, homewares, and furniture are another area that plays an important part.

I am optimistic about both of the S&P/ASX 300 Index (ASX: XKO) shares below, which is why I’m a shareholder in them.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the leading online retailers of homewares and furniture, selling more than 200,000 products from hundreds of suppliers.

A large proportion of those products are shipped directly by suppliers, allowing the Australian stock to maintain a capital-light model while still offering customers a wide range of items.

The Temple & Webster share price has fallen around 50% over the past six months, which I believe makes this an excellent long-term investment opportunity, given its potential for profit growth.

As its revenue grows (and it is increasing at a pleasing double-digit rate year over year), the fixed costs are becoming a smaller percentage of revenue, leading to rising margins. Temple & Webster is also investing in AI, which is helping lower costs and improve customer conversion.

I’m expecting significant profit growth in the coming years as more Australians adopt online shopping for their homewares and furniture purchases. Additionally, there is significant scope for the home improvement segment to continue its pace of revenue growth – revenue rose 43% in FY25.

Rural Funds Group (ASX: RFF)

Farmland is an important contributor to the Australian economy, and this real estate investment trust (REIT) is a compelling way to invest in the sector on the ASX.

It owns a portfolio of different types of farms, including cattle, almonds, macadamias, vineyards, and cropping.

The Australian stock provides exposure to the agricultural sector without having to ride the volatility of food commodity prices or other operational risks.

Rural Funds is also benefiting from ongoing rental growth, which is an organic driver of rental earnings and the underlying value of the farms. While I’m not expecting strong growth, the farms with rental income that’s linked to inflation are getting a useful boost during this period, while the farms with fixed annual increases are consistent.

This seems like a good time to invest because it’s trading at a discount of around 34% to its underlying net asset value (NAV). It’s also expecting to pay a distribution yield of 5.8% in FY26, at the ASX share’s current value.

The post 2 strong Australian stocks to buy now with $5,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Rural Funds Group and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

PLS Group Ltd (ASX: PLS) shares have been in strong demand from investors over the past 12 months.

During this time, the lithium miner’s shares have almost doubled in value.

Does this make it too late to invest? Let’s see what analysts at Bell Potter are saying about the high-flying stock.

What is the broker saying?

Bell Potter was relatively pleased with PLS’ performance during the second quarter, especially given its processing of low quality ore. It said:

PLS reported quarterly spodumene concentrate (SC) production of 208kt (BP est. 214kt) and sales of 232kt at 5.2% Li2O (BP est. 221kt). Lithium recoveries were 76% (1Q FY26 78%), a strong result despite processing higher levels of low quality ore. Unit costs were A$585/t FOB (BP est. A$579/t), up 8% QoQ, with lower production volumes; an inventory drawdown supported the higher sales.

At 31 December 2025, PLS had cash of $954m (30 September 2025 $852m), net cash (including leases) of ~$272m and available cash liquidity of ~$1.6b. Quarterly operating cash flow was $131m; capex was -$45m; and PLS received an income tax refund of +$74m. FY26 guidance was re-iterated.

Big news coming

The broker highlights that there is potentially some big news coming in the current quarter. That news relates to the Ngungaju operation, which PLS is looking at restarting. It said:

In the current quarter, PLS’ Board will assess a potential restart of the Ngungaju processing plant (~200ktpa SC capacity), with approval contingent on confidence in sustained lithium market pricing. Associated capital expenditure is included in FY26 guidance; a four month ramp-up period is expected. PLS will also provide updated timelines for completion of a P2000 Feasibility Study and a Colina Development Study and further visibility around growth project sequencing.

Should you buy PLS shares?

Bell Potter thinks that the company’s shares are fair value right now and has put a hold rating and $4.60 price target on them. This implies only modest upside of 2% for investors from its current share price.

Commenting on its hold recommendation, the broker said:

We maintain our Hold recommendation. PLS’ earnings and cash flow will strengthen with around 200ktpa of idled spodumene concentrate capacity that can be rapidly reactivated into improved lithium prices. P2000 and Colina development studies are being progressed, providing organic growth optionality in markets with strong underlying EV and BESS-led long term demand fundamentals.

The post Here’s what Bell Potter is saying about PLS shares in February appeared first on The Motley Fool Australia.

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

Shares in Island Pharmaceuticals Ltd (ASX: ILA) are trading higher despite the company raising money at a discount, as its US plans begin to take shape.

The company said on Wednesday morning that it had raised $9 million through the issue of new shares at 35 cents apiece, with the placement cornerstoned by a US family office, “with additional commitments from a select group of local and international investors”.

While discounted capital raisings generally result in share price weakness, Island shares were trading 15.4% higher at 45 cents on Wednesday morning.

Pathway to approval laid out

This was likely due to the company providing further detail on the regulatory pathway for its key antiviral compound, Galidesivir, in a separate announcement to the ASX.

The company said in a statement it “advises it has received highly constructive and strategically important guidance from the US Food & Drug Administration (FDA), confirming the validity of Island’s proposed animal model and outlining final steps required to progress Galidesivir toward approval under the Animal Rule”.

The company went on to say:

The FDA’s correspondence, received 30 January 2026 provides clear regulatory alignment on the use of the Angola strain of Marburg, the cynomolgus macaque model and the viral challenge dose – the core elements that underpin Animal Rule development. This confirmation represents a major de-risking milestone for the program. The FDA has now defined a two-stage clinical development pathway for Galidesivir, enabling Island to move rapidly into targeted dose-optimisation and pharmacokinetic (PK) studies, followed by a pivotal confirmatory study required for approval.

The company said it would conduct two trials in “a limited number of non-human primates” with that data to be submitted to the FDA to support further clinical trials.

Island said that approval under the animal rule “represents a transformational opportunity, providing a defined regulatory pathway for medical countermeasures targeting high consequence viral threats”.

The company added:

Animal Rule approval may unlock US Government procurement, including potential inclusion in the Strategic National Stockpile (SNS) – a pathway associated with significant, long-term, non-dilutive revenue.

Island Managing Director Dr David Foster said the new funding came at a pivotal time for the company.

Following the FDA’s confirmation of Galidesivir’s Animal Rule development pathway, we now have a clearly defined, executable route to approval, and this funding ensures we are fully resourced to move forward without delay.” “The placement provides the financial strength to complete our two-stage Animal Rule program, progress toward a New Drug Application, and manufacture additional Galidesivir supply to meet clinical development and potential commercial readiness objectives. Importantly, it removes funding risk at a time when regulatory uncertainty has been materially reduced.

The good news follows Island announcing last month that it had won patent protection for Galidesivir.

The post Why are shares in this biotech charging higher after a capital raise? appeared first on The Motley Fool Australia.

More reading

• This ASX 200 stock is dipping lower despite positive news. Here’s what’s behind it
• 3 ASX dividend stocks which pay their investors every single month
• Which ASX rare earths stock is up 10% on big news?
• What should you do with your CBA shares in 2026?
• Why this ASX travel share is flying high

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.

The Worley Ltd (ASX: WOR) share price is trading lower on Tuesday following a positive update from the company.

At the time of writing, Worley shares are down 1.12% to $13.23, with investors appearing cautious as they digest the announcement. By comparison, the broader S&P/ASX 200 Index (ASX: XJO) is currently down 0.2%.

Let’s take a closer look.

What Worley announced today

In an ASX release, Worley confirmed it has signed a reimbursable engineering, procurement, and construction contract for Phase 2 of Venture Global’s CP2 project.

CP2 is a large-scale liquefied natural gas development in Louisiana and is regarded as strategically important to global energy supply.

Worley said the Phase 2 scope supports Venture Global’s progression toward final investment decision (FID) and eventual project execution. The work builds on Worley’s existing involvement in CP2 following earlier engineering activities.

Execution will be led out of Worley’s Houston, Baton Rouge, and Reading offices, supported by its global integrated delivery team.

Chief Executive Chris Ashton said the project highlights Worley’s ability to deliver complex, large-scale energy infrastructure and reinforces its long-standing relationship with Venture Global.

Why the share price moved lower

New contract wins are usually a positive, but the market response this time has been more restrained.

That caution likely reflects the nature of the work involved. Reimbursable EPC contracts can add revenue, but margin uplift is usually limited.

There was also no contract value disclosed. Without a dollar figure attached, it is difficult to assess the near-term impact.

Timing may be another factor. With Worley due to report its half-year results on Thursday, 26 February, some investors may be choosing to wait. A broader update on margins, cash flow, and backlog could provide clearer direction.

The bigger picture for Worley

Despite today’s pullback, Worley remains well-positioned across energy, chemicals, and resources markets.

The company continues to secure work across LNG, hydrogen, and decarbonisation, giving it exposure to both traditional energy and the energy transition. Its global delivery model and diversified client base have helped smooth earnings through recent volatility.

Investors will be particularly focused on how backlog converts to cash and whether margins continue to hold up as project activity lifts.

What to watch next

The next key catalyst is Worley’s half-year results later this month. Any update on margin trends, cash flow, or backlog quality could have a bigger influence on the share price than today’s announcement.

Progress at CP2 toward final investment decision will also be closely watched, as that could unlock further work scopes over time.

The post This ASX 200 stock is dipping lower despite positive news. Here’s what’s behind it 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 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.

ASX dividend stocks are a popular choice for investors looking to build a reliable stream of passive income. 

The thing is, it’s pretty easy to pin down good dividend-paying stocks which hand out cash to investors every six or 12 months. But finding one which pays a lot more regularly is more difficult.

The good news is that I’ve done the hard work for you. Here’s a roundup of the top three ASX dividend stocks which pay a monthly dividend. Find out which one might work best for you.

BetaShares Dividend Harvester Active ETF (ASX: HVST) 

HVST is an ASX-listed exchange-traded fund (ETF) that gives its investors exposure to a large portfolio of up to 60 dividend-paying shares. These are drawn from the 100 largest ASX-listed companies and selected based on forecasts of high dividends and franking credits, and expected future gross dividend payments. Its portfolio is weighted towards the financial sector (24.2%), with materials accounting for another 10.7%. 

The fund is created in a way that it allows it to own a dividend share until it trades ex-dividend. At this point, the fund sells the shares and reinvests the proceeds into its next passive income-generating shares.

HVST pays investors a regular, franked dividend income that is around double the annual income yield of the broader ASX. As of the 31st December 2025, its 12-month gross distribution (dividend) yield is 7.4%, and the net yield is 5.8%. The franking level is 66%. The fund’s annual management fee and costs are 0.72%.

The fund paid out $0.06 per share to investors in late January with another $0.06 per share due to be paid later this month. 

At the time of writing on Wednesday morning, HVST shares are $13.50 a piece. For the year to date, the shares have climbed 0.07%.

Plato Income Maximiser Ltd (ASX: PL8)

Plato is a  listed investment company (LIC) which targets income-focused investors like retirees and SMSF investors who need a dependable income stream. 

The ASX dividend stock holds a portfolio of mature ASX-listed equities, cash, and listed futures. It mostly focuses on Australian companies with strong dividend payouts, such as major banks, mining giants, and energy firms. Its goal is to generate a high, franked income stream for investors and to consistently deliver above-market dividends and total returns, including franking credits. 

Plato has consistently paid fully franked dividends of 0.55 cents per share every month since April 2022. That equates to an annual running total of 6.6 cents per share in full franked passive income and gives a dividend yield of around 4%.

At the time of writing on Thursday morning, Plato shares are trading at $1.46 each, down around 1% for the year-to-date.

Metrics Master Income Trust (ASX: MXT)

The Metrics Master Income Trust is a listed investment trust (LIT) which has a portfolio of corporate loans and private credit investments rather than a portfolio of other ASX dividend shares. 

This means it can give its investors direct exposure to the Australian corporate loan market, which is currently dominated by regulated banks. The LIT is able to offer diversity-seeking investors an alternative investment that prioritises income stability and pays out monthly dividends. Metrics Master Income Trust targets a return of the Reserve Bank cash rate plus 3.25% p.a. (net of fees) through the economic cycle. 

Its latest payout was 1.36 cents per share unfranked in January, which is payable next week. That means that over the past 12 months, Metrics Master Income Trust has paid out 12 dividends totalling 15.8 cents per share. At the time of writing, this gives the LIT a dividend yield of 8.16%.

At the time of writing, Metrics Master Income Trust’s shares are $1.98 a piece. This is down 0.25% for the year-to-date.

The post 3 ASX dividend stocks which pay their investors every single month 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.

Brazilian Rare Earths Ltd (ASX: BRE) shares are catching the eye on Wednesday with a strong gain.

In morning trade, the ASX rare earths stock is up by a sizeable 10% to $4.29.

This compares favourably to the performance of the benchmark ASX 200 index today. At the time of writing, it is down 0.15%.

Why is this ASX rare earths stock jumping?

The catalyst for this strong gain has been the release of exceptional results from a sensor-based ore sorting test work program.

According to the release, the test work confirms its suitability for Monte Alto’s beneficiation process flowsheet.

The independent test program successfully demonstrated the enrichment of run-of-mine rare earth mineralisation from Monte Alto to a product that is ready for direct hydrometallurgical rare earth extraction.

Importantly, it believes this can unlock significant economic benefits compared to traditional chemical flotation or bulk processing methods. It notes that by efficiently removing gangue materials, multi-sensor ore sorting has the potential to increase effective run-of-mine grade by a factor of 1.3x–1.7x, lower capital and operating costs, and reduce environmental and permitting risks.

Commenting on the news, the ASX rare earths stock’s managing director and CEO, Bernardo da Veiga, said:

These exceptional ore sorting results from run-of-mine Monte Alto feedstock have exceeded all our expectations. They demonstrate that sensor-based concentration can significantly enhance project economics with +95% yields at lower capital and operating costs, whilst simultaneously reducing environmental footprint through lower energy, minimal water and no reagents.

Our metallurgical programs are designed to maximise the value of Monte Alto’s ultra-high grade rare earth, uranium, scandium, niobium, and tantalum mineralisation. These ore sorting results build on our previous metallurgical programs with the Australian Nuclear Science and Technology Organisation (ANSTO) and provide a pathway for world-leading mineral-to-product yields.

He then adds:

Rare earth projects are typically characterised by low head grades and complex, high-cost processing flowsheets. Monte Alto’s ultra-high grades can deliver a beneficiated product at grades that are suitable for direct hydrometallurgical processing. BRE will now progress flowsheet design, targeting a multi-sensor system capable of processing 100% of Monte Alto’s run-of-mine material at +95% yields.

Following today’s move higher, the Brazilian Rare Earths share price has now risen by 95% since this time last year and more than doubled in value since mid-August.

The post Which ASX rare earths stock is up 10% on big news? appeared first on The Motley Fool Australia.

More reading

• Why are shares in this biotech charging higher after a capital raise?
• This ASX 200 stock is dipping lower despite positive news. Here’s what’s behind it
• 3 ASX dividend stocks which pay their investors every single month
• What should you do with your CBA shares in 2026?
• Why this ASX travel share is flying high

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.

If you own Commonwealth Bank of Australia (ASX: CBA) shares, you’re hardly alone. For many Australian investors, it’s been a cornerstone holding for years, sometimes decades.

The question in 2026 isn’t whether CBA is a great business. That part is largely settled. The real question is what to do next.

Do you hold, buy more, or finally take some money off the table?

Here’s how I’m thinking about it.

Why CBA still deserves respect

Commonwealth Bank of Australia remains the highest-quality bank in the country, in my view. Its scale, brand strength, and technology investment continue to set it apart from peers.

CBA consistently delivers superior returns on equity, benefits from a dominant position in Australian retail banking, and has been ahead of the curve when it comes to digital engagement. Its app is widely regarded as best-in-class, and that matters more than ever as banking becomes increasingly data-driven.

From an income perspective, CBA is also doing what long-term shareholders want. Dividends have been reliable, well-covered, and supported by strong capital levels. For investors who value stability and income, that still counts for a lot in 2026.

The valuation question is hard to ignore

This is where things get more nuanced.

CBA shares now trade on a meaningfully higher valuation than the other major banks. The market is effectively pricing it as a premium franchise with fewer risks, more stable earnings, and better long-term prospects. To an extent, that’s fair.

But the higher the valuation goes, the less room there is for disappointment.

Earnings growth for Australian banks is likely to be modest in 2026. Credit growth is steady rather than spectacular, competition for deposits remains intense, and regulatory capital settings limit how aggressive banks can be. That doesn’t mean CBA will struggle. It just means upside from here may be harder to come by.

At current levels, I don’t think CBA looks cheap. It looks high quality and fully valued.

So what would I do in 2026?

If I already owned CBA shares, I would be very comfortable holding them.

This is not a business I’d rush to sell just because the valuation looks full. The combination of market leadership, dividend income, and defensive characteristics still makes it a strong long-term holding, particularly for conservative investors or those relying on income.

That said, if CBA had grown to an outsized position in my portfolio, I might at least consider trimming. Not because I think the business is deteriorating, but because risk management matters. Locking in some gains and reallocating to areas with better growth or valuation support can make sense.

Would I be buying aggressively at these levels? Probably not. I’d rather direct new money toward ASX shares trading on more modest multiples.

Foolish takeaway

CBA shares don’t need to do anything special in 2026 to remain a good investment. The bank just needs to keep doing what it has always done well.

For me, that makes it a hold rather than a buy. A high-quality, low-stress core holding that continues to pay reliable income, even if the next leg of share price growth is slower than the last.

The post What should you do with your CBA shares in 2026? appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend stocks I’m excited to see the payouts of this reporting season
• 10 most traded ASX shares among 1 million Aussie investors last year
• ASX small-caps could be where the next wave of returns comes from
• What happened with the big four ASX 200 bank stocks like ANZ and CBA shares in January?
• 3 ASX shares I’ll be watching like a hawke this earnings season

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.