Tag: Stock pick

Corporate Travel Management Ltd (ASX: CTD) shares only returned to the ASX last Thursday, and the week couldn’t have gone much worse.

After more than a year suspended from trading, the stock crashed 86% on its first day back to close at $2.32. The selling continued on Friday, with Corporate Travel shares dropping another 3% to finish the week at $2.25.

The shares are rebounding slightly today, up 4% to $2.35 at the time of writing. Even with that recovery, they remain around 85% below the $16.07 level they were trading at before the suspension.

And investors now have another problem to think about.

Another legal headache

According to The Australian, law firm Phi Finney McDonald is investigating a potential class action against Corporate Travel Management and its former auditor, PwC Australia.

The law firm said it was “well advanced in its investigation” into what it described as financial misreporting over several years.

Any class action would allege that Corporate Travel misled investors through its annual financial reports over a multi-year period up to 2024, in breach of the Corporations Act.

It would also allege PwC engaged in misleading or deceptive conduct and made false statements about its auditing of the company’s financial reports.

Phi Finney McDonald principal lawyer Roop Sandhu told The Australian that investors were “rightfully concerned about what has happened to their investments”.

At this stage, no class action has been filed, but it is another issue shareholders could probably have done without.

Some signs of progress

Corporate Travel shares were suspended in August 2025 after accounting problems emerged around customer charge rates in its UK operations.

Since then, the company has been working through a large customer remediation program. Around 78% of refunds have been agreed or are close to finalisation, leaving roughly $55 million still to be dealt with.

The FY26 result did at least show the underlying business is moving in the right direction.

Revenue and other income rose 4% to $669.9 million, while underlying EBITDA increased 36% to $113.6 million. Corporate Travel also returned to profit, reporting net profit after tax (NPAT) of $17.7 million compared with a $348.5 million loss a year earlier.

Transaction volumes climbed 13% to 18.3 million, while the company secured $669 million of new business and $1.5 billion of re-tenders and renewals during the year.

Would I buy Corporate Travel shares?

I can see why some investors might look at the $2.35 share price and wonder whether most of the bad news is already priced in.

The business is still operating, earnings improved in FY26, and the shares have already taken a huge hit.

But I’d still be staying on the sidelines.

There’s a sizeable remediation bill to work through, the accounts carry a modified audit opinion, and there is now another potential legal issue hanging over the company.

After everything that has happened over the past year, I’d want to see a few of these issues resolved before considering the shares.

The post Where does it end? Corporate Travel hit with another blow after crashing 85% appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that cut their dividend this reporting season
• Corporate Travel Management shares crashed 80% on their first day back. What happened?
• Why I’m still smiling after losing 85%
• Warning: Corporate Travel shares have crashed 80%. What on earth just happened?
• Corporate Travel Management shares resume trading after FY26 report

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

If I had $10,000 available for ASX growth shares today, I would be comfortable splitting it between the two businesses in this article whose share prices have fallen sharply.

Both still have plenty to prove, but I think the long-term opportunities remain substantial.

Here is where I would put the money.

Catapult Sports Ltd (ASX: CAT)

I would invest $5,000 into Catapult Sports.

Its shares may be down heavily from their highs, but I think the underlying opportunity in professional sport remains intact.

Professional sport is global, highly competitive, and increasingly willing to spend on anything that can improve preparation or decision-making.

Catapult develops technology used by elite sporting organisations to understand what is happening on the field, in training, and across an athlete’s wider performance.

What interests me is how deeply this technology can become embedded in a team’s decision-making. A club can use Catapult to measure physical workloads, review video, assess tactical patterns, and manage preparation. Over time, more of those functions can sit within the same technology ecosystem.

That gives Catapult room to grow by winning new customers and becoming more valuable to existing ones over the next decade and beyond.

SiteMinder Ltd (ASX: SDR)

My other $5,000 would go into SiteMinder, whose shares have also fallen heavily from their 52-week high.

This ASX growth share builds technology that sits behind hotel bookings.

Hotels need to make rooms available across multiple channels, manage pricing, encourage direct bookings, and keep inventory updated as reservations arrive. SiteMinder brings much of that together.

I think the long-term opportunity comes from the sheer number of accommodation providers that still have room to modernise how they sell rooms.

Running a hotel is already complicated enough without staff manually adjusting availability and pricing across numerous booking platforms. Better software can remove some of that work while helping operators reach more travellers.

SiteMinder is also developing more automated tools, including artificial intelligence capabilities that could help hotels respond to demand and manage distribution with less manual input.

If more accommodation providers decide their technology needs an upgrade, I think SiteMinder can become an increasingly important part of how hotels operate online.

Foolish takeaway

I would be comfortable putting $5,000 behind each of these ASX growth shares.

The recent falls do not remove the risks, and both companies still need to execute well. But I think Catapult Sports and SiteMinder are addressing markets that should keep becoming more technology-driven. 

At today’s lower share prices, I would be willing to back that opportunity with a long-term view.

The post Why I’d invest $10,000 into these ASX growth shares appeared first on The Motley Fool Australia.

More reading

• Where I’d invest $15,000 in ASX shares now
• 2 ASX shares tipped to grow 60% or more in the next 12 months
• Why I think this is a top ASX tech share to buy today
• SiteMinder: FY26 profit nearly doubles, revenue jumps 22%
• 3 ASX shares I’d buy for their global growth potential

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

S&P/ASX 200 Index (ASX: XJO) shares are up 0.4% to 9,039 points on Monday.

Among the 11 market sectors, energy is in the lead today, up 1.1%, while technology is the laggard, down 1.6%.

The financial sector led the market last week amid a bank share rally due to better-than-expected GDP data.

Let’s check out some new ratings on ASX shares today.

Megaport Ltd (ASX: MP1) 

The Megaport share price is $16.73, down 1.6% today and up 23% over 12 months. 

Ord Minnett has an accummulate rating on this ASX 200 tech share.

In a new note, the broker commented:  

Megaport’s (MP1) FY26 earnings and FY27 guidance exceeded consensus estimates. The company also announced three contract wins, together valued at $506 million. ‍

We believe the soft reaction to the results may have been because … ‍Some parts of the investment community had been expecting contract wins already, or more of a guidance uplift in guidance from GPU Pool monetisation.

We see guidance as prudent, and the EBITDA target is achievable purely on a conservative ramp-up of contracts without GPU Pool monetisation. 

Our target price is revised to $22. We have an Accumulate recommendation. Catalysts for the shares include upgrades to FY27 guidance and more contract wins.

Xero Ltd (ASX: XRO)

The Xero share price is $77.91, down 1.8% today and down 52% over 12 months. 

Blake Halligan from Gray Perry Wealth Advisers has a hold rating on this ASX 200 tech stock.

He said (courtesy The Bull):  

Xero remains a leading cloud accounting platform, with a dominant position in Australia and New Zealand.

Fiscal year 2026 operating revenue increased 31 per cent, supported by 506,000 net customer additions and the Melio Payments acquisition. Melio should aid in revenue growth, but costs associated with its integration contributed to a 27 per cent fall in net profit after tax and a gross margin decline from 89 per cent to 83.9 per cent.

The profitable ANZ and UK businesses offer growth potential and could assist in a continuing share price recovery.

AMP Ltd (ASX: AMP)

The AMP share price is $2.47, down 0.4% today and up 45% over 12 months. 

Halligan has a sell rating on this ASX 200 financial share.

He explained:

This wealth management company’s turnaround has gained momentum, with underlying net profit after tax (NPAT) increasing 33 per cent in the first half of 2026.

The simplified business, growing North platform and further capital returns are positives. However, much of this improvement appears reflected in the share price. AMP Bank also faces intense mortgage competition, higher funding costs and investment requirements.

The shares have risen from $1.16 on March 12 to trade at $2.475 on September 3.

The recent share price strength provides an opportunity to reallocate capital elsewhere, as restructuring and execution risks still remain.

The post Buy, hold, sell: Megaport, Xero, AMP shares appeared first on The Motley Fool Australia.

More reading

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• How to build a winning ASX share portfolio and create wealth
• ASX 200 bank shares led a financial sector rebound last week
• A 50% upside? This ASX 200 tech stock is back on my buy list
• This ASX 200 tech giant is down 30% in 2026. Can it make a comeback?

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

Bubs Australia Ltd (ASX: BUB) shares have returned from their trading halt with a bang on Monday.

At the time of writing, the infant formula stock is up 40% to 14 cents, after trading as high as 14.5 cents earlier this morning.

That is quite a turnaround. Bubs shares were down around 27% in 2026 when trading was halted on Friday. After today’s jump, the stock is now slightly higher for the year.

So, what has sent Bubs shares flying today?

The wait is finally over

According to the release, Bubs has secured permanent regulatory authorisation from the US Food and Drug Administration (FDA).

The approval covers 3 infant formula products: Bubs Goat, Bubs 365 Day Grass Fed, and Bubs Essential.

It confirms that the products, manufacturing systems, and supporting scientific evidence meet US requirements around safety, nutritional adequacy, and quality.

It also makes Bubs the only Australian infant formula brand, and one of a limited number of international manufacturers, permanently authorised to supply the US market.

CEO Joe Coote called it a “transformational milestone” and said the approval gives Bubs a platform to accelerate its US growth strategy.

The decision could also support a broader product range and possible entry into the US private-label infant nutrition market.

Why this is such a big deal

The US is already Bubs’ biggest market.

US revenue rose 24% to $65.8 million in FY26, out of total group revenue of $111.9 million. Its products are also now sold in more than 10,000 stores across the country.

Until now, Bubs had been able to continue selling in the US while the FDA worked through its review.

That process is now complete, removing one of the biggest uncertainties hanging over the business.

With well over half of group revenue now coming from the US, securing permanent approval is a major step for the company.

The director buying is worth a look

There’s another detail here that stands out.

Bubs chair Paul Jensen bought 1.5 million shares across 31 August and 1 September, paying between 8.55 cents and 8.7 cents per share.

In total, he spent around $130,500 just days before today’s FDA announcement.

And Jensen has been buying Bubs shares for some time. He also bought 1 million shares across 3 on-market trades in March, after picking up another 630,890 shares across 2 trades last September.

At today’s 14-cent share price, his latest 1.5 million shares are worth around $210,000. That’s roughly $80,000 more than he paid.

But he wasn’t the only director buying last week. Pascal De Petrini bought 800,000 shares, while Lori Tauber Marcus purchased her first 100,000 shares at 9.5 cents each.

The post Bubs shares just rocketed 40%. Here’s the news investors were waiting for appeared first on The Motley Fool Australia.

More reading

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• How high do brokers think Bubs Australia shares will go?

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.

Boresight Ltd (ASX: BST) shares traded more than 10% higher early on Monday after the company announced a repeat order from a major North American military contractor worth more than half a million dollars.

The purchase order is three times larger than previous orders from this customer, Boresight said, and consists of more than 340 BQ-400 swarming-capable aerial target drones, multiple ground control stations and an operator training course.

Drone warfare training the focus

Boresight, which listed on the ASX in June, supplies militaries and other customers with target drones for use in battlefield training.

The company said the new purchase was the large single order to date from a North American military.

Boresight Managing director Justin Olde said:

This repeat order is testament to the ongoing effectiveness of Boresight’s aerial target drones in providing cost-effective, reliable and repeatable mission counter drone training. We have a number of North American military customers however this particular client is a standard setting, training focused organisation that has broad influence over their entire military. They’ve looked at the available options and they keep coming back to Boresight. The ability to service this and other North American customers directly from our US facility means that our delivery lead times and costs are reduced, providing more responsiveness whilst driving down overheads. Support for this delivery will be provided from our Australian HQ where required, while we continue to ramp up operations at our expanded US facility.  

Delivery and payment is expected in the second quarter of FY27.

ASX listing designed to spur growth

Boresight, which was incorporated in 2020, raised $8 million ahead of its June listing on the ASX.

The company said its goal was, “to provide low-cost aerial drone targets to service western and allied militaries as they tackle how to respond to the rapidly changing battlespace”.

The company said further:

Military customers require a cost-effective and reliable way to evaluate counter drone technologies. Once these capabilities are deployed, they must develop effective tactics, techniques and procedures (TTP’s) for their use, and undertake continuous training to ensure that personnel are properly trained, and maintain those skills, throughout the life of the technology. To achieve this, customers require low-cost, disposable training drones (targets) – and lots of them. Boresight was created to meet that need.

Boresight said at the time it had sold more than 6,000 drones to customers globally since its launch and had offices in the US, the United Kingdom, and Australia.

Boresight shares were changing hands for 36 cents on Monday morning, up 14.3%.

The company is valued at $39.9 million.

The post Which ASX drone company is surging more than 10%? appeared first on The Motley Fool Australia.

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• What’s driving the ASX 200 higher today?
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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.

Investors continue to pour serious money into two of the ASX’s most popular Vanguard exchange-traded funds (ETFs).

The Vanguard Australian Shares Index ETF (ASX: VAS) and Vanguard MSCI International Shares ETF (ASX: VGS) now collectively oversee roughly $40 billion in funds under management.

For many Australian investors, the pair represents the foundation of a long-term portfolio. VAS provides broad exposure to the local market, while VGS looks beyond Australia’s borders to developed international markets, including the US.

But with markets shifting and returns differing across regions, are these Vanguard ETFs still worth buying in September?

VAS: The Australian market workhorse

VAS is designed to provide exposure to the 300 largest companies listed on the ASX, making it a straightforward way to own a slice of Australia’s corporate sector through a single investment.

The ETF has gained around 4% in 2026 and about 1% over the past 12 months. That’s hardly spectacular, but its appeal isn’t necessarily about chasing the strongest short-term returns.

Instead, VAS offers diversification across major Australian industries and a relatively attractive income stream. Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP) are among its largest holdings, each accounting for more than 10%.

The fund’s dividend yield is around 3.7%, reflecting Australia’s traditionally strong dividend culture.

There is, however, a catch. This Vanguard ETF is heavily tilted towards financials and resources. That means investors are indirectly making a sizeable bet on Australia’s banks, commodity prices and domestic economy.

VGS: Taking the portfolio global

VGS tackles one of the biggest weaknesses of an Australia-only portfolio: concentration.

The Vanguard ETF invests across developed international markets, giving Australian investors exposure to hundreds of companies outside the local market. It has returned around 9% over the past year.

The US makes up a significant portion of the portfolio, with technology giants such as Apple Inc (NASDAQ: AAPL) and Nvidia Corp (NASDAQ: NVDA) among its largest holdings, each representing more than 5% at the time of writing.

That global exposure can help reduce reliance on Australia’s relatively small and concentrated share market. It also gives investors access to industries and businesses that have a much smaller presence on the ASX.

But VGS isn’t risk-free. International markets can experience sharp corrections, while geopolitical developments and movements in the Australian dollar can affect returns for local investors.

Are they still buys?

For long-term investors, there’s a strong case for both Vanguard ETFs.

VAS can provide domestic exposure and a healthy income stream, while VGS adds international diversification and greater exposure to global growth companies.

Rather than viewing them as competing ETFs, investors could see the two as complementary building blocks.

Neither is guaranteed to outperform from here. But for investors focused on building wealth over decades rather than months, the combination of broad diversification, established companies and relatively simple portfolio construction remains compelling.

The post Are these top Vanguard ETFs still a buy in September? appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Nvidia. The Motley Fool Australia has recommended Apple, BHP Group, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Private equity firm Warburg Pincus has swooped in with a buyout offer for Ingenia Communities Group (ASX: INA) just days after the real estate investor’s shares fell sharply on its own takeover deal.

Shares in Ingenia dipped after it revealed plans in late August to acquire Peet Ltd (ASX: PPC), one of Australia’s leading master planned community developers.

Ingenia’s own deal out of favour

Ingenia shares fell from levels above $4 following the announcement of the deal and last traded at $3.65 before Warburg Pincus announced its deal.

That offer is for $4.75 in cash per share. Ingenia shares were up 13.7% to $4.15 in early trade on Monday.

Ingenia said in a statement to the ASX that the Warburg Pincus deal was subject to numerous conditions, including a unanimous recommendation from its board and the Peet deal not proceeding.  

The Ingenia board said that after thorough consideration, it had determined that the offer “substantially undervalues Ingenia and is not in the best interests of its security holders”.  

The company added:

The Board is confident in Ingenia’s strategic direction and growth trajectory. There are strong long-term structural tailwinds supporting continued growth in the land lease communities sector and the attractiveness of Ingenia’s holiday parks business in providing affordable holiday accommodation. Ingenia believes there are significant opportunities to continue to grow its business, enhance the scale and efficiency of its platform, and deliver long term value to its security holders. The Ingenia Board considers that the proposed acquisition of Peet is an important component of Ingenia’s strategy, securing a significant development pipeline which is expected to support Ingenia’s growth and product delivery over time.

Peet deal to grow scale

Ingenia is offering Peet shareholders 68 cents per share as well as 0.3367 Ingenia shares per Peet share.

The Peet board has unanimously approved the deal, subject to an independent expert’s report.

Ingenia said regarding the deal:

The transaction has strong strategic and financial rationale for both sets of securityholders, creating a leading national land lease platform and expanding Ingenia’s presence in the complementary master planned community sector.

Ingenia Communities Chief Executive Officer John Carfi said the deal was a “unique opportunity” to create a high-quality development pipeline on attractive terms.

He added:

The transaction delivers on our core strategic goals, increasing our scale and exposure to land lease development, creating a national platform, accelerating and securing growth beyond our 5-Year Plan, as well as delivering a logical extension to our living strategy that responds to the evolution of the residential sector.

The post Why are Ingenia shares soaring today? appeared first on The Motley Fool Australia.

More reading

• Ingenia Communities Group rejects takeover offer, backs growth strategy
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• Peet FY26 earnings: Profit and dividend surge on record sales

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.

If you are looking for new additions to your portfolio, then it could be worth listening to what analysts are saying about the popular ASX shares named below, courtesy of The Bull. 

Here’s what they are recommending this week:

Dicker Data Ltd (ASX: DDR)

The team at Vestra Capital is positive on this software and hardware distributor and has named it as a buy this week.

Vestra highlights Dicker Data’s strong top line growth, attractive dividend yield, and exposure to artificial intelligence (AI) spending as reasons to buy. It said:

This technology company distributes hardware and software solutions. It benefits from enterprise spending on AI capable servers, network upgrades and end point security hardware. It generated gross revenue of $2.1 billion in the first half of 2026, up 14.2 per cent on the prior corresponding period. Net profit after tax of $60.7 million was up 54.1 per cent. 

Management has upgraded full year gross revenue guidance to between $4.3 billion and $4.4 billion, alongside profit before tax guidance of between $162 million and $165 million. Double digit top line momentum, an appealing dividend yield and increasing exposure to AI infrastructure spending provides a bright outlook, in my view.

Pro Medicus Ltd (ASX: PME)

Over at Medallion Financial Group, it has named this medical imaging software provider as an ASX share to buy.

Medallion believes that recent share price weakness has created a buying opportunity for investors. It explains:

Pro Medicus is a global leader in medical imaging software, with its Visage platform increasingly adopted by major US hospital networks. Revenue of $261.7 million in full year 2026 rose 22.9 per cent on the prior corresponding period. Underlying net profit after tax of $144.7 million was up 24.1 per cent. Revenue and underlying net profit exceeded expectations, while the underlying earnings before interest and tax margin reached an exceptional 74.9 per cent. 

It signed 10 new contacts worth $407 million in full year 2026. It renewed six contracts on five year terms to the value of $141 million. Recent share price weakness provides an attractive entry point into a high quality growth businesses.

Seek Ltd (ASX: SEK)

Gray Perry Wealth Advisers is a fan of job listings giant Seek and is tipping it as an ASX share to buy this week.

The wealth adviser highlights Seek’s improving return on equity and healthy dividend as reasons to be positive. It said:

Seek operates a leading online employment marketplace, with a dominant position in Australia and established operations across Asia. Its scalable model, strong margins and international expansion provide attractive long-term growth potential. Despite softer job-ad volumes, fiscal year 2026 net revenue rose 10 per cent and EBITDA increased 15 per cent, demonstrating pricing power and operational resilience. 

We’re forecasting earnings to grow about 9.5 per cent annually in the next two years. An improving return on equity and a healthy dividend further support the investment case.

The post Experts name 3 top ASX shares to buy this week appeared first on The Motley Fool Australia.

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

DroneShield Ltd (ASX: DRO) has given shareholders a rough ride in 2026.

But I still believe the long-term opportunity in counter-drone technology is substantial.

For investors comfortable with high risk and plenty of volatility, here are three reasons I would consider buying the shares in September.

A much lower entry point

The first reason is simple. Investors can buy DroneShield shares for considerably less than they could previously.

The shares are trading around $1.75 on Monday, close to their 52-week low of $1.68 and roughly 74% below the 52-week high of $6.71.

It is always important to highlight that a falling share price does not automatically create value. But I think the size of this decline is worth considering alongside what has happened to the business.

DroneShield is still growing strongly. Its latest half-year result showed rapid revenue growth, even if some parts of the performance were softer than investors had hoped.

For me, the lower price changes the risk-reward equation.

I would still keep the position relatively small because DroneShield remains a relatively speculative growth investment. But I am far more comfortable buying near $1.75 than chasing the shares when enthusiasm had pushed them above $6.

The market could become enormous

Counter-drone technology is quickly becoming a more important part of modern defence.

DroneShield estimates the counter-UAS market is already worth more than US$10 billion. Its products are designed to help military, government, law enforcement, and critical infrastructure customers detect and respond to drone threats.

I think the opportunity extends well beyond today’s conflicts. Drones are becoming cheaper, more capable, and harder to detect. Airports, prisons, power infrastructure, military installations, and other sensitive sites all have reasons to improve their protection.

DroneShield also continues updating its software to respond to faster drones, changing frequencies, and more evasive threats.

That ongoing need to adapt could support demand for both new systems and continued software development.

DroneShield is preparing to operate at greater scale

I also like what the company is doing outside Australia.

DroneShield established a European headquarters in Amsterdam this year and has begun manufacturing counter-drone systems in Europe using a predominantly European supply chain.

I think that is a significant step. Defence customers often care about local manufacturing, supply security, and sovereign capability. Having production closer to European customers could help DroneShield compete for opportunities that may have been harder to pursue from Australia alone.

The company is therefore building the infrastructure needed for a much larger international business rather than simply waiting for demand to arrive.

Foolish takeaway

DroneShield is still one of the higher-risk shares I would consider buying, and I would expect the share price to remain volatile.

But the long-term story continues to interest me.

At around $1.75, investors can back that opportunity at a fraction of the price available near last year’s highs. If DroneShield keeps expanding internationally and counter-drone spending continues rising, I think its business could look considerably bigger a decade from now.

The post 3 reasons to buy DroneShield shares after their 74% decline appeared first on The Motley Fool Australia.

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

ASX copper stock Kaoko Metals Ltd (ASX: KAO) has shifted into top gear, surging more than 235% over the past five trading days to $2.50. That takes the ASX small-cap’s gains to roughly 550% since its May 2026 IPO.

This begs the question: Could Kaoko be the next big ASX copper stock?

Maiden copper drilling campaign

Kaoko Metals is a Perth-based mineral exploration company focused on copper and other metals in Namibia. Its flagship asset is the Chalkos Copper-Silver Project in the prospective Kaoko Belt, where the company has recently begun its maiden diamond drilling campaign.

The first observations have certainly caught investors’ attention. Two completed holes at the Otniel prospect intersected broad zones of visible copper mineralisation.

One hole intersected 60.25 metres of visible copper mineralisation from 36.65 metres down-hole, including a stronger 32.36-metre zone. The second intersected 51.83 metres from 39.27 metres, including a 17.2-metre stronger zone.

The drill core contained several copper minerals, including chalcocite, malachite, cuprite, native copper, and chalcopyrite.

For a newly listed exploration company, broad zones of visible copper in the opening holes of a maiden drilling campaign are understandably generating plenty of excitement around the ASX copper stock.

Trading halt for capital raising

And with a market capitalisation of roughly $150 million at the time of writing, relatively modest buying pressure can translate into extraordinary percentage gains.

In Kaoko’s case, the share price surge has followed the announcement of these encouraging drilling observations.

However, investors may not be able to trade the ASX copper stock on Monday. Kaoko has requested a trading halt pending an announcement regarding a capital raising. The halt is requested until the earlier of the announcement being released or normal trading recommencing on Tuesday, 8 September 2026.

Why are investors excited about copper?

The broader copper backdrop helps explain the enthusiasm.

Copper prices rose 3.7% during August, while iron ore fell 2%. That’s an unusual divergence given the dominance of iron ore among Australia’s major mining exports. Mining giant BHP Group Ltd (ASX: BHP) also specifically highlighted copper’s contribution to its record FY26 result.

Longer term, electrification and rising demand from energy infrastructure are supporting the copper outlook, while a lack of major new discoveries has increased the value investors place on exploration success.

That combination helps explain why this ASX copper stock has attracted so much attention.

But here’s the big catch

There is an important caveat for investors in this ASX copper stock. The copper mineralisation has been visually identified in the drill core, but the actual copper grades have not yet been confirmed by laboratory assays.

Those results will be crucial. Kaoko expects the laboratory assays in approximately four to six weeks, potentially giving investors a much clearer picture of the mineralisation’s quality and economic potential.

Until then, Kaoko remains a highly speculative exploration stock.

The drilling has certainly given investors plenty to get excited about. But the assays will ultimately determine whether this spectacular share price rally has substance behind it.

The post Up 550% since listing: Is this the next big ASX copper stock? appeared first on The Motley Fool Australia.

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• This ASX copper explorer is up 390% since its May IPO. Is it still a buy?
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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.