Tag: Stock pick

When it comes to picking shares that will outperform the market, it pays to have a look at what the experts are saying.

I’ve sifted through the analyst reports released this week and zeroed in on two from Macquarie that have flagged companies they think could notch outsized gains.

Let’s have a look at the companies they like.

Pexa Group Ltd (ASX: PXA)

Shares in this property settlement technology firm have been lacklustre over the past 12 months, returning a negative 16.6% over the period.

This is despite the company recently delivering what it called a “strong” third-quarter performance and reaffirming its FY26 guidance.

Total transaction volumes processed by the Pexa Exchange were 935,000 in the third quarter, up 7.3% from the previous corresponding period, the company said.

Pexa Chief Executive Officer Russell Cohen said regarding the third-quarter results:

We delivered strong performance in the third quarter of FY26 across both Australia and the UK. In Australia, property transaction volumes remained resilient, growing 7% versus the prior year despite market uncertainty and rising interest rates. UK market growth moderated from the first half, with macroeconomic uncertainty impacting volumes in the quarter. Another quarter of robust operational performance and disciplined cost management has positioned us to deliver performance towards the top end of our FY26 NPAT guidance range.

Macquarie said in its research note on Pexa that formal commitments from additional Tier 1 lenders to use the platform would lead to other Tier 1 lenders to “onboard quickly, driving rapid market share gains”.

Macquarie has a price target of $19.05 on Pexa shares, compared to $10.53 currently.

Ebos Group Ltd (ASX: EBO)

Ebos Group shares are down slightly more than 50% over the past 12 months; however, the Macquarie team believes the company is well-placed for share price gains.

The company is also paying a dividend yield of 5.9% this year, with that figure expected to increase to 6.9% in 2028.

EBOS in April downgraded its FY26 underlying EBITDA guidance to $610 to $620 million, down from a previous range of $615 to $635 million, due to higher fuel and energy costs.

Macquarie said on the positive side of the ledger, a new First Pharmaceutical Wholesaler Agreement has been struck with the Federal Government, which will benefit EBOS’ Symbion division.

Macquarie has a price target of NZ$36.44 on the stock compared with NZ$19.38 at the time of writing.

The post Macquarie names 2 ASX shares that could jump more than 80% appeared first on The Motley Fool Australia.

More reading

• These 3 ASX shares will deliver better than 5% dividend yields, Macquarie says
• 3 highly undervalued ASX 200 stocks to target in June with up to 87% upside
• Ord Minnett says this ASX 200 tech share could rise 85%
• Here are the top 10 ASX 200 shares today

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 1.5% to 8,652.7 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

Chrysos Corporation Ltd (ASX: C79)

The Chrysos share price is up 2.5% to $6.15. Investors have been buying this mining technology company’s shares after it announced the successful refinancing of its corporate facilities. Chrysos has agreed a new three-year $200 million syndicated facility with three domestic financiers. Management notes that this moves it away from an existing asset-based financing debt structure to a corporate-style facility designed to provide operational flexibility and support the development, production and funding of PhotonAssay units in numerous jurisdictions around the world. Chrysos CEO, Dirk Treasure, commented: “We are pleased to have this facility in place to support the Company’s continued growth and accelerating deployment cadence. Continued adoption of PhotonAssay is driving strong demand across multiple regions, reflected in the additional four contracts signed with laboratories since our last update.”

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is up 3% to $2.96. This appears to have been driven by a broker note out of Citi. According to the note, the broker has upgraded the drinks giant’s shares to a buy rating with a trimmed price target of $3.25. Citi believes Endeavour could win market share based on its scale and price leadership strategy.

Racura Oncology Ltd (ASX: RAC)

The Racura Oncology share price is up 3.5% to $2.60. This morning, the biopharmaceutical company revealed that a specialist institutional investor focused on emerging healthcare companies has made an investment. The investor has provided a binding commitment to subscribe for 526,315 fully paid ordinary shares in Racura at an issue price of $1.90 per share. This represents a 23% discount to the average market price as of 3 June.

Treasury Wine Estates Ltd (ASX: TWE)

The Treasury Wine share price is up 10% to $4.54. This follows the release of the wine giant’s investor day update. The Penfolds owner’s Ascent strategy will focus on the brands and markets where it believes it can win, while cutting costs, simplifying operations, reshaping its supply chain, and strengthening its balance sheet. Treasury Wine revealed that it is targeting $100 million per year in cost reductions, which are expected to be fully realised by FY 2029.

The post Why Chrysos, Endeavour, Racura, and Treasury Wine shares are racing higher today appeared first on The Motley Fool Australia.

More reading

• This beaten-down ASX 200 stock just jumped 5%. Is the market too negative?
• Treasury Wine shares jump 12% on big investor update
• Treasury Wine Estates kicks off 2026 Investor Day with a renewed transformation plan
• Buy, hold, sell: ASX, Endeavour, and Judo Capital shares
• Here are the 10 most shorted ASX shares

Motley Fool contributor James Mickleboro has positions in Endeavour Group and Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Chrysos and Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Chrysos and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Brave investors who waded in and bought Megaport Ltd (ASX: MP1) shares in April will be sitting on some outsized gains today.

Indeed, if you heeded Warren Buffett’s investment advice to “be greedy when others are fearful” and bought the S&P/ASX 200 Index (ASX: XJO) network services company at its one-year closing lows on 10 April, you’ll be sitting on a 147.5% gain today.

That’s enough to turn a $5,000 investment into $12,377. In less than two months.

Now you can’t actually buy Megaport shares today. Or at least not at time of writing.

As you may be aware, the ASX 200 tech stock entered a trading halt on Tuesday. Shares closed up 7.0% on Monday at $16.61 apiece.

And that’s where they are still at in late morning trade on Thursday, as the shares remain frozen while Megaport conducts an $827 million capital raising via a fully underwritten entitlement offer.

Atop that cap-raise announcement, yesterday, Megaport reported that it had signed four new AI infrastructure contracts valued at $459 million.

The company also narrowed its full year FY 2026 revenue guidance range to between $307 million and $315 million.

Which brings us back to our headline question…

Should I still buy Megaport shares after their huge surge?

Medallion Financial Group’s Philippe Bui analysed the outlook for the surging ASX 200 tech stock late last week, prior to this week’s announcements (courtesy of The Bull).

“MP1 is a leading global network-as-a-service provider, connecting enterprises to cloud providers and data centres,” he said.

And Megaport is among the ASX 200 tech stocks that are benefiting from the rapid rise of AI.

“Artificial intelligence-driven data centre investment is a direct tailwind, and this business is capturing it,” Bui noted.

As for the company’s performance, Bui said:

Revenue quality is improving, margins are expanding and existing customers are spending more. Wholly owned subsidiary Latitude.sh secured three major contracts in May, representing a meaningful step forward in recurring revenue.

While Bui sounded optimistic about the potential for more gains, he issued a hold recommendation on Megaport shares for now.

“At current prices, in line with historic valuation averages, emerging upside doesn’t appear fully priced in,” Bui concluded.

What’s the latest from the company’s Latitude.sh subsidiary?

Megaport shares closed up 4.5% on 14 May, with even larger share price gains over the following two trading days, after the company announced the three contract wins from Latitude.sh that Bui mentioned above.

The GPU, CPU, network, and storage contracts were reported to be worth a combined total contract value (TCV) of $254 million. That works out to around $91 million in Annualised Recurring Revenue (ARR).

The post Up 148% since April, should I still buy Megaport shares today? appeared first on The Motley Fool Australia.

More reading

• How high does Macquarie think Megaport shares will go?
• 5 things to watch on the ASX 200 on Thursday
• Why is everyone talking about Megaport, Ampol and Northern Star shares on Wednesday?
• Megaport shares in focus amid $458.9m AI contract wins and capital raising
• Megaport secures 4 new AI contracts, announces 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 positions in and has recommended Megaport. 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.

Endeavour Group Ltd (ASX: EDV) has finally given shareholders a green day worth noticing.

The drinks retailer and hotels operator is up 5.58% to $3.03 at the time of writing, even as the broader market trades lower.

By contrast, the S&P/ASX 200 Index (ASX: XJO) is down 1.17% to 8,683 points.

The move comes after a rough stretch for the owner of Dan Murphy’s and BWS, with the stock still down around 11% over the past month.

Over 12 months, Endeavour shares are still about 27% lower.

Why investors are buying today

The latest buying appears to be tied to a broker upgrade, with Citi moving Endeavour to a buy rating after the stock’s recent fall.

Citi analyst Sam Teeger sees room for Endeavour to claw back market share under new management.

Endeavour owns Dan Murphy’s and BWS, giving it a large position in the Australian liquor market. But the company has been under pressure as shoppers watch their spending more closely and competitors fight harder for sales.

Citi appears to believe a more price-led approach could help the company win back some ground from Coles Group Ltd (ASX: COL) and independent rivals.

But after a tough run, it hasn’t taken much to bring some buyers back. The stock was already trading near depressed levels, so the latest broker news gave investors a reason to look again.

Target price still moves lower

Even with the upgrade, Citi is not ignoring the work still ahead.

The broker reportedly cut its target price by 6% to $3.25, with higher capital expenditure and lower gaming and hotel peer multiples weighing on the valuation.

Endeavour is still trying to reset the business after a difficult period. Last week, the company outlined plans to reduce complexity, improve returns, and lower capital expenditures following a heavy investment phase.

It is also targeting at least $100 million in cost savings in FY27.

But investors will want to see those savings materialise without the company losing further sales momentum.

Coles could be a catalyst

Coles could also play a role in how the market views Endeavour from here.

Citi reportedly flagged the August Coles result as a key event, with Coles weighing up whether to reduce its big-box liquor store network by about 10%.

The liquor market remains tough, and shoppers are still sensitive to prices. But if Endeavour can regain some momentum while controlling costs, the share price may have more room to recover.

Foolish Takeaway

Today’s rally is a welcome change for shareholders, but it doesn’t undo the damage from the past year.

Endeavour shares remain well below where they were 12 months ago, and the company still needs to prove its reset can lift performance.

The post This beaten-down ASX 200 stock just jumped 5%. Is the market too negative? appeared first on The Motley Fool Australia.

More reading

• Why Chrysos, Endeavour, Racura, and Treasury Wine shares are racing higher today
• Buy, hold, sell: ASX, Endeavour, and Judo Capital shares
• Top brokers name 3 ASX shares to buy now
• Why’s the ASX 200 falling today despite another tech rally?
• How to get wealthy investing $300 a month into ASX shares

Citigroup is an advertising partner of Motley Fool Money. 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.

The S&P/ASX 200 Index (ASX: XJO) is having a tough time on Thursday. In afternoon trade, the benchmark index is down 1.4% to 8,664.1 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are tumbling:

IperionX Ltd (ASX: IPX)

The IperionX share price is down 4% to $5.69. This morning, this titanium alloys producer released the results of the definitive feasibility study (DFS) for its 100%-owned Titan Critical Minerals Project in the United States. The DFS shows that the project is expected to deliver a “US$813 million after-tax NPV8, 39% IRR and US$1.9 billion after-tax free cash flow from an initial 14-year mine plan producing heavy rare earth concentrate, titanium minerals and zircon.” It seems the market was expecting even stronger results.

Northern Star Resources Ltd (ASX: NST)

The Northern Star share price is down 5% to $20.62. Investors have been selling gold miners after the price of the precious metal fell overnight. The catalyst was a rise in oil prices on Wednesday after tensions between the US and Iran escalated. This has sparked fears that inflation may spike and require interest rate hikes to get it under control. The S&P/ASX All Ordinaries Gold index is down around 3% at the time of writing.

Opthea Ltd (ASX: OPT)

The Opthea share price is down a further 19% to 1.3 cents. This biotechnology company’s shares have lost around 98% of their value over the past two sessions after returning from a suspension that lasted over a year. After a failed clinical trial, Opthea is ending its focus on retinal diseases and relaunching with a new strategy focused on OPT-302 as a potential treatment for lymphangioleiomyomatosis (LAM). It is a rare, chronic lung disease that primarily affects women. The company believes OPT-302 could have a role because the disease is associated with elevated VEGF-C and VEGF-D signalling, which OPT-302 is designed to inhibit. Opthea’s executive chair, Dr Jeremy Levin, said: “Opthea is relaunching with a focused strategy centered on OPT-302 and a clear objective: to evaluate a differentiated, mechanism-driven therapeutic opportunity in LAM while leveraging the Company’s substantial existing development, manufacturing and clinical infrastructure.”

Superloop Ltd (ASX: SLC)

The Superloop share price is down 5% to $3.41. This may have been driven by the release of a broker note out of Macquarie this morning. According to the note, the broker has downgraded the telco’s shares to a neutral rating (from outperform) but with a slightly improved price target of $3.70. Macquarie made the move on valuation grounds following a strong gain since the start of the year.

The post Why IperionX, Northern Star, Opthea, and Superloop shares are tumbling today appeared first on The Motley Fool Australia.

More reading

• Why this red-hot ASX 300 stock is tumbling 10% today
• 5 things to watch on the ASX 200 on Thursday
• Why Catapult Sports, Harvey Norman, Inghams, and Opthea shares are sinking today
• Why Acrow, Ampol, Medallion Metals, and Northern Star shares are racing higher
• Why is everyone talking about Megaport, Ampol and Northern Star shares on Wednesday?

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.

Megaport Ltd (ASX: MP1) has had plenty of news out this week, but we haven’t seen a share price reaction as the stock has been in a trading halt.

That hasn’t stopped the team at Macquarie running the ruler over the company and issuing a bullish target price, which we’ll get to shortly.

Firstly, let’s look at what Megaport has said this week.

Major contracts won

The company said in a statement to the ASX on Wednesday that it had secured four new AI infrastructure contracts with a combined total contract value of about $458.9 million.

These contracts would require $369.5 million in infrastructure spending, “primarily for high-performance NVIDIA GPUs, network, and storage infrastructure”.

Megaport also said it would establish an on-demand GPU pool, supported by $350 million in investment, “providing enterprise customers with access to AI infrastructure through both contracted and consumption-based commercial models”.

The company added:

Newly secured contracts and creation of the GPU Pool form the foundation of Megaport’s strategy to establish a Globally-Distributed AI Inference Cloud leveraging its footprint of more than 1,100 connected data centres across 31 countries.

To fund these new developments, the company launched a rights issue to raise $827.3 million at a share price of $14.30. This compares to the current share price of $16.61.

Megaport Chief Executive Officer Michael Reid said AI inference was “one of the biggest infrastructure opportunities of the next decade”.

He added:

The contracts announced today reflect the accelerating demand for globally-distributed AI inference infrastructure. Megaport’s software-provisioned compute, network, and storage platform positions us strongly to meet that demand. “The proceeds from the Entitlement Offer will enable us to fulfil contracted customer demand while building an on-demand GPU Pool that creates new opportunities across enterprise and sovereign AI markets globally. “AI inference is becoming a global infrastructure challenge, not simply a GPU problem. As AI adoption accelerates, organisations need seamless access to GPUs, CPUs, storage, and the connectivity that powers them. Megaport is built to deliver it all.

Megaport shares looking cheap

Macquarie said in a note to clients after the announcements that Megaport was a “high quality AI play with improving core business”.

They added:

50% of new contracts are existing customers, the rest are new. One of these customers provides global inference nodes to enterprise, suggesting this customer is strategically important and can grow in time.

Macquarie said Megaport offered AI exposure with shorter lead times and less capital expenditure than data centre operators.

Macquarie has an outperform rating on Megaport shares and a 12-month price target of $27.80.

Megaport is valued at $2.95 billion.

The post How high does Macquarie think Megaport shares will go? appeared first on The Motley Fool Australia.

More reading

• Up 148% since April, should I still buy Megaport shares today?
• 5 things to watch on the ASX 200 on Thursday
• Why is everyone talking about Megaport, Ampol and Northern Star shares on Wednesday?
• Megaport shares in focus amid $458.9m AI contract wins and capital raising
• Megaport secures 4 new AI contracts, announces capital raise

Motley Fool contributor Cameron England has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, Megaport, and Nvidia. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares are down around 1% at the time of writing on Thursday morning, to $162.95 a piece.

It’s been a shaky run for the ASX banking giant over the past 12 months, with its share price swinging wildly between $146.98 and $192.

CBA shares flew higher in early February after reporting a solid first-half FY26 result. The bank posted profit growth and confirmed continued strength in home lending. 

But the major bank suffered a sharp correction in May. The biggest event was CBA’s largest one-day share-price fall on record, dropping over 10% in a single session.

The drop came after CBA posted a disappointing third-quarter capital update, reporting flat operating income and a 1% decline in its unaudited cash NPAT. 

The results spooked investors, who rushed to sell their shares.

The question everyone is asking now is: How low could the CBA share price go?

What the experts think

Market Index data shows all brokers have a strong sell rating on the banking giant’s shares, and they tip a 24% downside to an average target price of $124.20, at the time of writing.

TradingView data is similar. Out of a collection of 16 analysts, 14 have a sell or strong sell rating, and another two rate the bank stock as a hold. A $127.43 target price implies a 22% downside at the time of writing. However, some think the shares could drop another 45% to just $90 each.

Why are analysts so negative on CBA shares?

CBA shares are widely considered overpriced versus its ASX bank peers. Many believe the bank’s bumper price tag isn’t supported by its business fundamentals. 

CBA’s price-to-earnings (P/E) ratio, at the time of writing, is 26.22. This is much higher (and therefore more expensive) than the other major big four Australian banks.

At the same time, the bank is facing ongoing earnings pressures, with expectations that growth will be in the single digits going forward.

Everything points to CBA shares being well overdue for a correction. 

Not as simple as it looks

Analysts are pretty negative about CBA shares and tip a strong downside ahead.

But yet, each time the bank’s share price falls, it starts ticking back up.

If the outlook for CBA is so unimpressive, why are investors still buying its shares?

It looks like the banking giant’s shares are supported by a flight to quality. 

In unstable markets, investors often rotate into large companies with stable dividends and dominant market positions to mitigate volatility. And it looks like CBA is the safe-haven stock of choice for investors right now.

The post How low could CBA shares go? appeared first on The Motley Fool Australia.

More reading

• How to value the CBA share price
• How combining superannuation and ASX shares can set you up for retirement better than property
• Why the RBA’s next move could be the most important event for ASX shares in 2026
• Is this ASX financials stock a better buy than CBA shares?
• Should you buy CBA and NAB shares this week?

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

The BHP Group Ltd (ASX: BHP) share price is having a rough session on Thursday.

At the time of writing, the mining giant’s shares are down over 3% to $62.71.

That is a meaningful move for a business of BHP’s size, particularly after the stock has had such a strong run recently.

So, what is going on?

Iron ore concerns are weighing on sentiment

The weakness appears to be linked to concerns about the iron ore market.

Iron ore remains a major earnings driver for BHP, so anything that changes the supply outlook can quickly affect investor sentiment toward the stock.

The latest concern is coming from Africa, where exports from Guinea’s giant Simandou iron ore project have surged.

According to Bloomberg, shipments from the project’s Morebaya port reached 2.2 million tonnes in May, up from 1.3 million tonnes in April. That compares with 0.6 million tonnes or less in each of the first three months of the year.

That ramp-up has caught investors’ attention because Simandou has long been viewed as a project with the potential to upend the global iron ore market over time.

More supply from a large, high-grade project can add pressure to prices, particularly if demand does not grow quickly enough to absorb it.

Why this impacts BHP

BHP is a diversified miner, but iron ore is still central to its earnings and cash flow.

When the market becomes more cautious on iron ore prices, large producers such as BHP, Rio Tinto Ltd (ASX: RIO), and Fortescue Ltd (ASX: FMG) can all come under pressure.

There has also been broader caution around the sector. RBC downgraded Rio Tinto shares this week on expectations of a weaker iron ore price outlook. While that downgrade was about Rio Tinto, the concern is relevant to BHP as well, as both companies remain heavily exposed to the iron ore market.

If investors believe iron ore prices could be weaker in the future, they may mark down the expected earnings, cash flow, and dividends of the big miners.

Why I remain positive

Even so, I do not think today’s fall changes the long-term BHP investment case.

Iron ore weakness is a real risk, and investors should not ignore it. Commodity markets can turn quickly, and BHP’s earnings will always be affected by prices it cannot control.

But I still like BHP shares as a long-term buy and hold.

The biggest reason is copper.

Copper demand could be supported for many years by electrification, data centres, renewable energy, electricity networks, industrial growth, and electric vehicles. At the same time, new copper supply can be difficult, expensive, and slow to bring online.

That gives BHP a valuable long-term growth angle beyond iron ore.

I also like that BHP has scale, strong assets, financial strength, and a diversified commodity base. Iron ore may be under pressure today, but the group also has copper and potash exposure, which could become more important over the next decade.

Buy the dip?

I think today’s weakness in the BHP share price could be a buy-the-dip opportunity for patient investors.

That does not mean BHP will rebound immediately. If iron ore prices remain under pressure, the share price could stay volatile.

But I would rather buy a high-quality resources giant when the market is worried about one part of the business than wait until everything looks perfect again.

BHP is not cheap after its strong run, and the iron ore outlook deserves attention. But I think the company’s copper exposure, balance sheet strength, and long-term optionality still make it one of the best ASX mining shares to own.

Foolish Takeaway

The BHP share price is sinking today as investors react to a weaker-looking iron ore backdrop, including the faster ramp-up of exports from Guinea’s Simandou project.

That is a valid concern. Iron ore remains extremely important to BHP.

But I do not think it is the only story. BHP’s copper exposure is a powerful long-term growth driver, and I think that could become increasingly important over time.

For investors willing to look through short-term commodity worries, today’s pullback may be an opportunity to buy a world-class miner at a more interesting price.

The post Why is the BHP share price sinking today? appeared first on The Motley Fool Australia.

More reading

• 3 top ASX shares at 52-week highs I’d still buy
• Guess which ASX 200 share is jumping 17% on earnings guidance upgrade
• China’s PMI data beat forecasts. Investors should be looking at these ASX resource stocks
• Forget BHP shares! Buy these ASX dividend shares instead for passive income
• 5 things to watch on the ASX 200 on Tuesday

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 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.

It has been a rough session for IperionX Ltd (ASX: IPX) shares on Thursday.

The S&P/ASX 300 Index (ASX: XKO) critical minerals stock is sliding even after releasing a major update on its US project.

At the time of writing, the IperionX share price is down 10.30% to $5.31.

Today’s weakness follows a strong run for the stock. IperionX shares are still up around 18% in a month and 43% over the past year.

Here’s what was in the update.

A big US project update

According to the release, IperionX has completed the definitive feasibility study for its Titan Critical Minerals Project in Tennessee.

The project is designed to produce titanium minerals, zircon concentrate, and heavy rare earth concentrate from the McNairy Formation.

IperionX said the DFS showed an after-tax net present value of US$813 million, an after-tax internal rate of return of 39%, and a payback period of 3.6 years.

It also forecast life-of-mine EBITDA of US$2.8 billion and after-tax free cash flow of US$1.9 billion.

The project has a 14-year mine plan and is expected to be developed in stages. Phase 1 development capital is estimated at US$228 million, while Phase 2 requires a further US$153.2 million.

That brings total development capital to US$381.3 million.

The maiden ore reserve was another major part of the update. Titan has a reserve of 117 million tonnes at 3.2% total heavy minerals.

IperionX said this includes about 3.7 million tonnes of heavy minerals.

Why the US wants projects like Titan

IperionX is positioning Titan as a domestic US source of critical mineral feedstocks at a time when supply chains remain sensitive.

The project is expected to produce heavy rare earth concentrate, titanium minerals, and zircon concentrate.

At Phase 2, annual production is forecast to include 5,287 tonnes of heavy rare earth concentrate, 118,658 tonnes of ilmenite, 24,656 tonnes of rutile, and 65,668 tonnes of zircon concentrate.

IperionX said they have potential uses across defence, aerospace, energy, robotics, semiconductors, and advanced manufacturing.

Titan is also located near road, rail, power, water, and gas infrastructure in Tennessee.

Why are the shares falling?

Today’s fall looks like a mix of profit-taking and caution around what comes next.

IperionX shares had already climbed 45% over the past year, so some investors may have used the DFS as a chance to lock in gains.

The project numbers are large, but Titan still needs US$381.3 million in total development capital across Phase 1 and Phase 2.

The next test is whether IperionX can secure funding and turn the study into a working project.

The post Why this red-hot ASX 300 stock is tumbling 10% today appeared first on The Motley Fool Australia.

More reading

• This ASX 300 stock is back in the spotlight after a US Army test
• Why 4DMedical, IperionX, Pro Medicus, and Ventia shaares are storming higher today
• IperionX gains U.S. Army validation as titanium fasteners outperform steel
• These were the best-performing ASX 200 shares in May
• Here are the top 10 ASX 200 shares today

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.

SpaceX (NASDAQ: SPCX) has revealed it will issue new shares in its initial public offering at US$135 apiece, valuing the company at US$1.75 trillion and setting the stage for the biggest IPO in US history.

Records to tumble

The new valuation of the company will also make Elon Musk the first trillionaire on record, once his shareholdings in various companies, such as Tesla Inc (NASDAQ: TSLA), The Boring Company, and SpaceX, are combined.

The share price was announced in an update to the company’s prospectus, which stated it would issue 555,555,555 new shares via the IPO, raising about US$75 billion.

The new filing also reveals that Mr Musk will retain majority control of the company, with the “founder, Chief Executive Officer, Chief Technical Officer and Chairman of our board” holding 82.4% of the voting stock in the company once it is listed.

The company said this meant Mr Musk would have free rein as far as decision-making goes.

The company said regarding Mr Musk’s majority stake:

As a result, Mr. Musk will be able to control the outcome of matters requiring shareholder approval. This includes the election of (i) a majority of our board, through his ownership of Class B shares (as Class B Directors), for so long as he holds a majority of the voting power of the Class B common stock, and (ii) the remainder of our board, for so long as he holds a majority of the combined voting power of the Class A and Class B common stock. As a result, we will be a “controlled company” under the corporate governance rules of Nasdaq following the completion of this offering and, as a result, we intend to rely on exemptions from certain corporate governance requirements.

Strong revenue but profits elusive

SpaceX comprises three divisions: the SpaceX rocket division, the Starlink satellite internet division, and the artificial intelligence division.

Of the three, only Starlink is turning a profit at the moment, with SpaceX overall posting a US$2.59 billion loss on revenue of US$18.7 billion in 2025.

For the first three months of 2026, the Space division lost US$662 million, the AI division lost US$2.47 billion, and the connectivity division made a profit of US$1.19 billion.

The company’s prospectus is littered with lofty ambitions, saying, for example, “Our mission is to build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars”.

Australian investors still waiting

In terms of Australian investors who want to get in on the action, CommSec wrote to its customers last week, saying the IPO is “expected” to include an Australian retail offer and that it will be the lead Australian retail broker.

CommSec said the shares will not be listed on the ASX, and its customers will need an international shares account.

CommSec has not updated its IPO page since, and there is still no listing for SpaceX shares there.

It will also be possible for Australians with an international trading account to buy and sell shares once trading begins on the NASDAQ exchange, expected around June 12.

The post SpaceX reveals its share price and huge valuation, with Musk to retain control appeared first on The Motley Fool Australia.

More reading

• Why this red-hot ASX 300 stock is tumbling 10% today
• Why is this ASX 300 stock crashing 14% today?
• Bell Potter names the best ASX 200 shares to buy in June
• 2 ASX 200 shares I’d buy and 1 I’d sell this month
• Up 23% in a week! Why are Pro Medicus shares charging higher again today?

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 positions in and has recommended Tesla. 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.