Tag: Stock pick

It’s another rough Friday on the ASX, and things aren’t looking much better as we head towards the weekend.

The S&P/ASX 200 Index (ASX: XJO) is currently down 0.48% to around 8,659 points, after dropping as low as 8,639.9 earlier in the session.

That’s the lowest we’ve seen the benchmark since 11 June, with the index now down almost 5% over the past month.

And it’s not just a few of the big names dragging the market lower.

At the latest check, 155 stocks in the ASX 200 are falling, while just 39 are moving higher and 6 remain unchanged.

With another RBA interest rate decision coming up on Tuesday, investors have plenty to think about.

So, could things get worse next week?

Oil jumps as bond yields hit 19-year high

Wall Street was fairly quiet overnight, but there was lots happening in oil and bond markets.

The Dow Jones Industrial Average Index (DJX: .DJI) fell 0.31%, while the S&P 500 Index (SP: .INX) slipped 0.02%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) managed to finish 0.01% higher.

In addition, the US 10-year Treasury yield climbed to approximately 5.12%, its highest level in 19 years.

Oil prices were also on the move, with Brent crude jumping more than 4% overnight to around US$107.53 a barrel.

Selling spreads across the ASX 200

The selling is pretty widespread today, with 10 of the 11 ASX sectors trading lower.

BHP Group Ltd (ASX: BHP) shares are down 0.66% to $60.62, while Rio Tinto Ltd (ASX: RIO) has slipped 0.88% to $164.99.

Property-related stocks aren’t having a great day either, with REA Group Ltd (ASX: REA) falling 2.51% to $148.27.

However, the big banks are managing to buck the trend and provide some support for the benchmark.

Commonwealth Bank of Australia (ASX: CBA) shares are up 0.28% to $150.405, and Westpac Banking Corp (ASX: WBC) has gained 0.56% to $34.32.

Will the RBA make things worse next week?

All eyes now turn to Tuesday, when the RBA announces its next interest rate decision.

According to The Australian, money markets are pricing a 90% chance of another 25-basis point increase.

This would take the cash rate to 4.60%.

Traders are also pricing approximately 40 basis points of additional tightening by the end of the year.

The RBA has already lifted rates 3 times in 2026, and another increase would add to borrowing costs for households and businesses.

And with the ASX 200 at its lowest level since June, I’ll be watching whether it can hold above 8,600 points.

The post ASX 200 sinks to June lows as investors brace for another RBA rate hike appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• How to top up your superannuation if you’re 40 and falling behind
• Here are the top 10 ASX 200 shares today
• 6 ASX 200 shares scoring renewed buy calls this week
• ASX 200 slides as investors head for the exits. Is there more pain to come?

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

Just when Netwealth Group Ltd (ASX: NWL) shareholders thought things couldn’t get much worse, another problem has come their way.

Netwealth shares have plunged 5.72% to $17.47 in midday trade, after falling as low as $17.22 earlier in the session.

The wealth management stock has now lost more than 20% over the past month and is trading almost 50% below its 52-week high of $33.62.

And today’s announcement has given investors another reason to be concerned.

So, what has happened this time?

Netwealth faces class action

The selling follows an ASX announcement confirming that Netwealth is facing a class action over the failed First Guardian Master Fund.

The company revealed that two of its subsidiaries have now been served with a Statement of Claim.

At the centre of the case are First Guardian investment options offered through the Netwealth Superannuation Master Fund.

These were available to adviser-led members from March 2021, before Netwealth stopped accepting new investments in December 2022.

The company says it intends to defend the claim.

According to the release, the allegations cover matters previously addressed through a court-enforceable undertaking with ASIC.

The regulator accepted that undertaking in December 2025 and began Federal Court proceedings over the same issues.

Netwealth also reminded investors that it completed a compensation program in January 2026.

That saw around $101 million paid to affected members, covering the net capital each had invested in First Guardian.

What happened to investors’ money?

There was a lot of money tied up in First Guardian before things went wrong.

Between March 2021 and December 2022, 1,303 Netwealth members invested approximately $128.5 million in the fund.

Then, in May 2024, fund operator Falcon Capital froze withdrawals.

By that stage, around 1,080 members still had approximately $100.7 million invested.

The matter eventually ended up in the Federal Court.

In August, the court found that Netwealth’s subsidiaries had breached the Corporations Act in how they handled the investments.

They hadn’t gathered enough information about First Guardian or made adequate independent checks into the risks involved.

Members also weren’t warned that they might struggle to access their money if the fund became illiquid.

ASIC didn’t seek a financial penalty, pointing to Netwealth’s timely compensation of affected investors.

What’s next for Netwealth shares?

Netwealth has already paid around $101 million in compensation, but it still has another legal battle on its hands.

And there’s still the question of what this latest case could mean financially.

With shares continuing to fall, investors clearly aren’t thrilled about another round of legal proceedings.

Personally, I wouldn’t rush in just because the stock has fallen so far.

The post Why are Netwealth shares crashing 6% on Friday? appeared first on The Motley Fool Australia.

More reading

• Netwealth faces class action after compensation payments
• 3 ASX shares down 40% to 80% I’d buy on the cheap
• Buy, hold, sell: Netwealth, Tabcorp, Healius shares
• Should I buy Coles shares for passive income?
• 2 ASX 200 shares to buy and 1 to sell now

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

Premier Investments vs Myer Holdings shares: which ASX retailer stacks up best?

When everyday investors look for steady returns and income from retail stocks, Premier Investments Ltd (ASX: PMV) and Myer Holdings Ltd (ASX: MYR) are frequent contenders. Both are household names on the ASX with passionate customer followings and large store footprints, but their investment cases have diverged after a major restructuring. If you’re deciding between Premier Investments and Myer shares, here’s how the fundamentals compare right now.

The case for Premier Investments

Premier Investments is a specialist retail group now focused on two leading brands: Peter Alexander, a premium sleepwear and home lifestyle name, and Smiggle, a much-loved children’s stationery retailer famous for its colourful products. After spinning off its apparel chains (like Just Jeans and Jay Jays) to Myer in 2025, Premier now embraces a simpler model that’s less exposed to discount apparel cycles and more to lifestyle and gift-buying. It still retains a large shareholding in Myer.

Highlights of Premier Investments right now:

• Strong dividend yield: Premier is offering an attractive 8.51% dividend yield, all fully franked. Its dividend per share sits at $0.95, a show of confidence in returning capital.
• Solid profitability: With earnings per share of $0.902 and a P/E ratio of 12.38, Premier trades on markedly lower earnings multiples than Myer at present.
• Resilience through refocus: The company has pivoted to two brands with defensible niches (sleepwear and kids’ stationery), and international growth potential continues with Smiggle and Peter Alexander’s expansion into the UK and Asia, according to its company profile.

The case for Myer Holdings

Myer is one of Australia’s largest department store operators, now even bigger following its acquisition of Premier’s former apparel brands (Just Jeans, Jay Jays, Portmans, Dotti, and Jacqui E) in 2025. Alongside its network of around 60 MYER-branded department stores (as of its public company description), Myer now controls a vast stable of retail brands with national reach, targeting value-conscious fashion and home shoppers across the country.

Key considerations for Myer Holdings today:

• High yield for income seekers: Myer’s dividend yield edges out Premier’s at 8.57%, fully franked, with a current dividend per share of $0.02 as per the latest data.
• Wider retail footprint: Myer now operates both large format department stores and hundreds of specialty apparel outlets. This broad network potentially diversifies sales streams and brand risks.
• Turnaround challenge: Myer’s recent financials show strain after integration: it records a negative earnings per share of -$0.178 and carries a higher P/E ratio of 23.70. Note: Myer’s reported P/E ratio may be based on a different earnings measure (e.g. underlying or forward earnings) than the EPS figure shown, which is why they may appear inconsistent.

Valuation comparison

Here’s how key metrics stack up side by side for income, value, and risk:

	Premier Investments	Myer Holdings
Market Cap	$1.91 billion	$337.50 million
P/E Ratio	12.38	23.70
Earnings per Share	$0.902	-$0.178
Dividend Yield	8.51% (100% franked)	8.57% (100% franked)

Premier is the much larger business by market cap and currently trades at a far lower P/E ratio, supported by positive earnings. Myer, despite a slightly higher yield, has negative EPS at the latest read and a notably higher multiple—usually a signal investors expect future profit recovery, but with added risk.

Recent share price performance

Comparing recent momentum using both companies’ closing prices as of 23 September 2026:

• Premier Investments closed at $11.95, up 7.08% on the day, but its year-to-date return sits at -15.8%.
• Myer Holdings closed at $0.18, unchanged for the day, but its year-to-date return is -60.0%.

So while both shares are down for 2026, Myer has dramatically underperformed Premier over the year, with its stock falling much further.

Which is the better buy?

Looking at both the numbers and the business setup, I think Premier Investments makes the stronger case at present. It’s profitable, sports a healthy fully franked yield, and is trading on a much lower P/E ratio than Myer. Its focus on brands with pricing power and some international growth runway adds conviction. By contrast, Myer faces a tough turnaround task post-demerger, with negative earnings and a much weaker share price, despite its large footprint and similar headline yield. If I had to pick a retail stock between these two today, my choice would be Premier Investments.

The post Premier Investments vs Myer: Which ASX Retail Stock is Best? appeared first on The Motley Fool Australia.

More reading

• This ASX 200 share offers 30% upside and a 7% yield
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Down 64%: Has the market lost interest in Myer shares?
• Why are Premier Investments shares trading higher today?

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Myer and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

It’s been a difficult Friday for Australian investors, but Electro Optic Systems Holdings Ltd (ASX: EOS) shareholders have plenty to smile about.

While the S&P/ASX 200 Index (ASX: XJO) is down 0.54% to 8,655 points, EOS shares are heading in the opposite direction.

The defence tech company’s shares have jumped 7.21% to $11.45, putting it within striking distance of its 52-week high of $12.58.

And with another opportunity opening up in the US defence market, there’s plenty for investors to get excited about.

So, could $15 be the next stop?

EOS unlocks a new US defence opportunity

According to the latest company update, EOS has secured a new procurement pathway for its R400 remote weapon system (RWS).

The system is now listed on the US Joint Interagency Task Force 401 Counter-UAS marketplace.

It allows eligible US government customers to compare counter-drone tech and purchase it through an established US Army contracting arrangement.

Access is also expanding to other allied nations, with 23 countries currently cleared to participate.

The R400 is designed to track and engage ground threats, along with small and medium-sized drones.

While the listing doesn’t represent a new contract, it puts EOS in front of more potential customers and makes the buying process easier.

That’s a pretty good position to be in, particularly as demand for counter-drone tech continues to grow.

I think this could become a valuable sales channel, especially if EOS can turn that additional exposure into more signed contracts.

The numbers are backing it up

It’s not just the growing sales opportunities that have me feeling bullish about EOS.

The company’s latest half-year results showed revenue surged 283% to $168.8 million, compared with $44.1 million a year earlier.

Underlying EBITDA also swung from a $14.9 million loss to a $21.6 million profit.

But what really catches my attention is the company’s order book, which reached a record $846 million at the end of June.

That’s a substantial amount of business already secured, giving EOS plenty of work to deliver over the coming years.

Management is now forecasting full-year revenue of between $360 million and $400 million, including its recently acquired MARSS business.

If achieved, that would represent record annual revenue for the company.

Could EOS shares reach $15?

I think there’s a strong case for further upside, particularly if EOS can turn its growing pipeline into more signed contracts.

And I’m not the only one looking at $15.

According to TipRanks, Canaccord Genuity has a buy rating and $15 price target, while Bell Potter and Ord Minnett have targets of $12.60 and $12.50, respectively.

From $11.45, Canaccord’s $15 target points to potential upside of more than 30%.

Personally, I’d still be comfortable buying EOS shares at these levels with a long-term investment horizon.

The post EOS shares jump 7% as ASX 200 falls. Could $15 be next? appeared first on The Motley Fool Australia.

More reading

• Electro Optic Systems vs Droneshield: Which ASX defence share wins?
• Here are the top 10 ASX 200 shares today
• Could this ASX defence stock rocket back above $13 before Christmas?
• Top 3 ASX defence shares to buy right now
• 4 ASX shares I’d buy with $5,000 in September

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 Electro Optic Systems. 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.

UBS has issued new research reports this week and has identified two companies with market-moving news they think are worth a look.

Let’s see who they like.

Nufarm Ltd (ASX: NUF)

Nufarm shares are up by more than a third over the past 12 months but UBS believes the stock still has a way to run.

The company this week put out new earnings guidance, saying it expected underlying EBITDA to increase by about 25% for the full year.

The company’s seed technologies division was expected to deliver strong growth, led by growth in hybrid seeds and improved omega-3 pricing.

The company’s crop protection division however was expected to have flat earnings.

On the negative side of the ledger Nufarm said it expected to book $90-$110 million in write downs.

UBS said the expected result was a 2%-3% downgrade to previous expectations.

The broker has a price target of $3.50 on Nufarm shares compared to $3.12 currently.

Telix Pharmaceuticals Ltd (ASX: TLX)

UBS has a very bullish price target on Telix after attending an R&D day which the broker said, “showcased the meaningful clinical development for TLX’s diagnostics and therapeutics pipeline across prostate, brain, and kidney cancers”.

The broker said key highlights included progress on prostate cancer therapeutics as well as the company’s Pixclara brain cancer imaging agent.

UBS said:

We believe the event further highlighted TLX’s growing breadth and depth across precision medicine and therapeutics towards being a leading radiopharma business. We see multiple opportunities for meaningful value creation on the horizon, supported by TLX’s deep expertise and clinical development experience with key catalysts over the next 12 months being resubmission/approval for Zircaix, topline data from BiPASS, topline data for TLX597, and data updates from ProstAct Global trial. Furthermore, we believe the recent deal with ITM improves isotope supply chain for ongoing therapeutic portfolio development, creates cost synergy, and adds additional therapeutic pipelines.

Telix just this week announced the $3.3 billion merger deal with ITM, which, Telix said, is the world’s leading supplier of therapeutic radioisotopes and the only producer of globally-scaled, commercial-grade lutetium-77.

Telix said regarding the deal:

The merger will further strengthen Telix’s leadership as a vertically integrated radiopharmaceutical company with the capabilities required to develop, manufacture and deliver innovative treatments to patients globally. The combined organisation will be uniquely positioned as a radiopharmaceutical industry leader, differentiated by a world-class scaled isotope manufacturing business with a validated global distribution network, a market-leading commercial precision medicine platform and the industry’s most extensive therapeutic radiopharmaceutical pipeline.

Telix said ITM grew at a compound annual rate of 40% from 2021 to 2025 and generated US$273 million in revenue in 2025.

UBS has a price target of $22 on Telix shares compared to the current price of $16.01.

The post 2 ASX shares UBS says could increase 13% to 37% appeared first on The Motley Fool Australia.

More reading

• 5 ASX 200 shares upgraded by experts this week
• Buy, hold, sell: New Hope, REA, Telix Pharmaceuticals shares
• What is Bell Potter’s updated view on Nufarm shares after crashing 6%
• 5 things to watch on the ASX 200 on Thursday
• Why is this ASX share crashing 8% on Wednesday?

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

Bank of Queensland Ltd (ASX: BOQ), Harvey Norman Ltd (ASX: HVN) and Lynas Rare Earths Ltd (ASX: LYC) shares are in focus today amid a combination of analyst updates and shifting investor sentiment.

Let’s find out how these stocks are tracking, and what brokers expect next.

Brokers rate Lynas shares as a BUY

Lynas shares have fallen around 2% in Friday morning trade, to $14.10 a piece. The shares are now up around 15% for the year-to-date but are 17% below trading levels 12 months ago.

The downturn is down to a couple of factors which have combined to create headwinds for the ASX rare earths miner. Geopolitical volatility, higher costs, and investors taking their gains off the table after a strong rally earlier this year, have all dampened the share price.

But late last month the company posted a record FY26 profit and revenue as company growth continues to ramp up. Lynas reported a 76% increase in revenue and a 282% increase in EBITDA. 

The company also confirmed it is focused on ramping up new assets in FY27, and growing its global presence.

It looks like analysts are excited by Lynas’ potential. TradingView data shows the majority have a buy/strong buy rating on the shares. The average $19.57 target price implies a 39% upside, at the time of writing.

Brokers rate Harvey Norman shares as a HOLD

Harvey Norman shares are flat at $4.17 this morning. It’s been a difficult year for the retailer and its shares have shed 41% of their value so far in 2026. They’re also 43% lower than 12 months ago.

Harvey Norman has faced strong headwinds this year following renewed concerns about rising inflation and its impact on consumer spending. A tighter household budget means Australians have lowered their discretionary spending this year. 

The experts are on the fence about where the shares could go over the next 12 months. TradingView data shows six (out of 14) analysts have a hold rating on Harvey Norman. Another five rate the shares a sell/strong sell and three rate the shares as a buy/strong buy.

The $4.46 average target price implies a potential 7% upside ahead, at the time of writing.

Brokers rate BOQ shares as a SELL

BOQ shares have been relatively stable through September so far hovering between $6.50 and $6.70 a piece. It’s good news for investors after the ASX bank shares were caught up in a bank-sector-wide sell-off last month. 

At the time of writing the shares are also flat at $6.51 a piece. The shares are now down around 1% for the year-to-date and 9% lower than 12 months ago.

The bank is scheduled to post its FY26 results in three weeks time (on the 15th of October) and it looks like investors are sitting tight while they wait for an update on the bank’s revenue, net interest margin and final dividend call.

It looks like the shares are still considered to be trading above fair value. TradingView data shows the majority have a sell/strong sell rating on the shares. The $6.09 average target price implies a downside of around 6% at the time of writing. 

The post Buy, hold, sell: BOQ, Harvey Norman, Lynas shares appeared first on The Motley Fool Australia.

More reading

• How much superannuation do I need to earn $1,000 per week in passive income?
• Bank of Queensland shares hit a 52-week low in June. Are they cheap today?
• Downgrade alert! 5 ASX 200 shares downgraded by experts this week
• ASX retail shares are down 13% in 2026. Here’s what Morgan Stanley is worried about
• Starting with $20,000, how to build a portfolio generating $5,000 a year in passive income

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

After a rough couple of years, CSL Ltd (ASX: CSL) is getting some attention from Australia’s fund managers.

According to The Australian, new research from Morgan Stanley shows fundies been making some interesting changes to their portfolios.

And CSL is one of the stocks they’ve been buying.

CSL shares are currently down 0.40% to $178.41 in morning trade, following yesterday’s close of $179.12.

So, what are fund managers seeing in CSL?

CSL takes the top spot

Morgan Stanley’s research found healthcare extended its lead as the most favoured sector among Australian active fund managers during August.

CSL saw a significant increase in fund holdings, pushing it into the top spot among active positions.

An active overweight means a fund holds a larger weighting in a stock than it has in its benchmark index.

But it was a different story for some of the other bigger companies.

Managers remained underweight financials, particularly the major banks, although insurance stocks continued to attract interest.

In resources, managers increased their underweight position in BHP Group Ltd (ASX: BHP).

They also reduced their overweight exposure to Rio Tinto Ltd (ASX: RIO), while adding to gold holdings.

What’s behind the buying?

CSL’s latest results might help explain some of that interest, although there’s still plenty of work to do.

Its FY26 results showed revenue of US$15.8 billion, down 1% in constant currency.

Underlying NPATA fell 2% to US$3.1 billion, while restructuring costs and impairments contributed to a US$2.6 billion statutory loss.

But the business still managed to generate US$3.5 billion in operating cash flow.

CSL also completed an $1 billion share buyback during FY26 and announced another program worth up to $1.15 billion.

There’s also continued demand for immunoglobulin treatments, while sales of newer therapies Andembry and Hemgenix are growing.

Andembry generated US$240 million in sales during its first full year, while Hemgenix sales increased 25%.

What happens next for CSL shares?

CSL expects revenue to remain broadly unchanged in FY27, with underlying net profit forecast to grow approximately 5% in constant currency.

Its Behring division is targeting mid to single digit revenue growth, while Seqirus expects low to single digit growth.

However, Vifor remains a challenge, with revenue expected to decline approximately 25% amid generic competition and other product-related issues.

Brokers are also divided on where CSL shares could go from here.

Morgan Stanley has a $182 price target, while RBC Capital Markets is more optimistic at $213. Citi is more cautious at $160.

CSL’s AGM on 27 October will give investors another chance to hear how its recovery plans are progressing.

The post Fund managers are loading up on CSL shares. Here’s why appeared first on The Motley Fool Australia.

More reading

• Forget BHP and buy this ASX copper stock
• How much superannuation do I need to earn $2,000 per week in passive income?
• 6 ASX 200 shares scoring renewed buy calls this week
• Buy, hold, sell: BHP, CSL, and Westpac shares
• BHP shares fall as mining operations grind to a halt

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 CSL. The Motley Fool Australia has recommended BHP Group and CSL. 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 down 0.5% to 8,662.4 points on Friday.

Brokers have lifted their ratings on several ASX 200 shares this week. 

Let’s take a look.

AMP Ltd (ASX: AMP)

The AMP share price is $2.66, down 0.2% today and up 60% over 12 months.

Over the past month, this ASX 200 financial share has ascended 11%.

Macquarie upgraded AMP shares to a buy rating on Tuesday.

The broker has a 12-month price target of $2.92.

This suggests a potential 10% upside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is $13.66, down 0.5% today and up 33% over 12 months. 

Over the past month, this ASX 200 gold share has fallen 14%.

This week, Evolution announced its annual general meeting (AGM) will be held on Thursday 26 November.

UBS upgraded Evolution shares to a buy recommendation yesterday.

The broker raised its 12-month price target from $15.20 to $16.

This implies a potential 17% upside ahead.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is $15.79, up 0.3% today and up 3% over 12 months. 

Over the past month, this ASX 200 healthcare share has fallen 2%.

This week, Telix announced a merger with ITM Isotope Technologies Munich SE.

ITM is a global leader in therapeutic radioisotopes.

Telix Pharmaceuticals will acquire 100% of ITM for US$1.65 billion upfront.

RBC Capital upgraded Telix shares to a buy rating this week.

The broker lifted its 12-month price target from $19 to $21.

This suggests a potential 33% upside ahead.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $73.99, up 0.2% today and down 20% over 12 months.

Over the past month, this ASX 200 consumer discretionary share has fallen 11%.

Morgan Stanley upgraded Wesfarmers shares to a hold rating this week.

The broker reduced its 12-month price target from $78 to $70.

This implies a potential 5% downside ahead.

Wesfarmers will conduct its AGM on Thursday 29 October.

Ramelius Resources Ltd (ASX: RMS)

The Ramelius Resources share price is $3.84, down 3% today and up 7% over 12 months.

Over the past month, this ASX 200 gold mining share has edged 3% lower.

This week, the miner released new FY27 guidance.

Ramelius Resources expects gold production of between 205,000 ounces and 225,000 ounces in FY27.

Its estimated all-in sustaining cost (AISC) is A$2,150 per ounce to A$2,350 per ounce.

The miner expects FY27 growth capital expenditure of A$480 million to A$570 million.

Canaccord Genuity upgraded Ramelius Resources shares to a buy call this week.

The broker raised its 12-month price target from $5.70 to $6.15.

This indicates potential capital gains of 56% over the next year. 

The post 5 ASX 200 shares upgraded by experts this week appeared first on The Motley Fool Australia.

More reading

• Super Retail Group vs Wesfarmers: Dividend showdown for Aussie investors
• 5 things to watch on the ASX 200 on Friday
• AMP vs Perpetual: Which ASX financial stock is better value?
• Buy, hold, sell: New Hope, REA, Telix Pharmaceuticals shares
• GPT Group vs Dexus: Which ASX REIT is better value right now?

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

Washington H. Soul Pattinson and Co Ltd (ASX: SOL) (Soul Patts) shares jumped after the company announced its FY26 results. They rose 6.2% on the day.

I’m not about to say that the shares are a better value than they were before, but investors learned a number of things about the business from the report that make me think it’s even more attractive.

We already know it’s a leading investment conglomerate that has been operating for more than 120 years.

For me, there are three appealing takeaways.

Cash and fixed income

The business has made a number of asset sales in recent times, which has led to cash becoming 20% of the portfolio. That’s quite a large position, but it’s a deliberate choice by the company.

In June 2026, it divested $1.9 billion of industrial property following a process activated by the Brickworks merger and pre-existing rights held by Goodman Group (ASX: GMG). Soul Patts has put that $1.9 billion into fixed income.

With higher interest rates, the company can now generate a solid return from its new fixed income division. This can be used to actively manage its liquidity, capital flexibility, and risk.

Soul Patts revealed that of its fixed income investments, 69% is invested in global low duration and short-term instruments, while 31% is invested in Australian low duration, short-term instruments, and cash. The investments have an average credit rating of AA, which is high quality.

International investments

Soul Patts has long focused on ASX shares and Australian businesses, but that appears to be starting to change.

There are a wide range of opportunities overseas in different sectors and asset classes, so Soul Patts is looking to partner with high-quality partners to find opportunities.

It outlined that it’s building opportunities in multiple divisions.

In ‘private companies’, it has a total of 15 investments, with four offshore co-investments worth $152.1 million (or 6.7% of the net asset value (NAV) of the segment). It’s also invested in three offshore funds for a total of $105.4 million. Offshore commitments total $577 million across nine relationships, with six added during FY26. It’s targeting mid-market fund sizes of between US$500 million and US$3 billion, where deal flow is bilateral, and leverage is lower.

In credit, its credit book includes 10 offshore fund investments with specialist global managers (22% of NAV). It made five new offshore fund investments during FY26. It noted offshore total commitments of $1.5 billion, including a further eight offshore credit fund allocations of $406 million approved in FY26 and committed in FY27.

In ’emerging companies’, it said it’s building offshore exposure through fund and co-investments with global partners across North America, the UK, and the Asia Pacific.

In ‘real assets’, it made its first international real assets commitment of $28 million to a US energy transition manager, reinforcing its exposure to long-term structural themes such as compute demand and electrification.

It’s fascinating to see the business make such a strong pivot to international investments with external fund managers. It’ll be interesting to see how much this grows as part of Soul Patts’ portfolio and what the net returns are.

If the investment team think this is the right move, it’ll probably work out well; the world can offer a lot more opportunities than Australia alone. Plus, using other managers is a scalable activity for the company.

Dividend payout ratio is reducing

Owners of Soul Patts shares will love to know that the business decided to invest its annual dividend again. That means it has now increased its annual dividend for 28 years in a row.

The payout has been funded by the net cash flow from investments (NCFI). Soul Patts’ NCFI has grown at a faster pace than the dividend, so the dividend payout ratio has been reducing and the dividend has become more sustainable.

The NCFI per share grew by 7.9% in FY26, while the annual dividend per share was hiked by 7.8%. NCFI benefited from a larger average credit book and increased distributions from cash generating businesses in the private companies asset class.

Owners of Soul Patts shares have seen their dividend grow at a compound annual growth rate (CAGR) of 12.4% over the past five years, compared to NCFI per share growth of 15% over the last five years.

The lower the dividend payout ratio becomes, the more sustainable the dividend is and the more the ASX share can invest for more growth.

The post Why I think Soul Patts shares are even more attractive after the FY26 result appeared first on The Motley Fool Australia.

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• How to build a $50,000 passive income from ASX shares

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

The Vanguard Australian Shares Index ETF (ASX: VAS) is the biggest exchange-traded fund (ETF) in Australia. Its shares are popular with passive income investors who want both income and long-term growth.

The ETF gives its investors instant diversification to a broad range of Australian shares across the top ASX-listed S&P/ASX 300 Index (ASX: XKO) companies. What sets the fund apart from the rest is that many ETFs track the S&P/ASX 200 Index (ASX: XJO), but only VAS mirrors the ASX 300.

As of the 31st of August, its top holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ).

The benefit of its diversification across major companies is that it can access long-term capital growth potential and also a regular income through its dividend payments, including any associated franking credits. It’s long-standing, too. The fund has been issuing payouts for over 17 years.

Let’s find out what the VAS ETF passive income looks like. And exactly what it will take to earn $10,000 per year.

What dividend does the VAS ETF pay its shareholders?

The fund pays out a shareholder dividend four times per year, usually in January, April, July, and October.

The VAS ETF most recently paid its shareholders 48.82 cents per unit in July, with 66.56% franking.

The estimated distribution amount for its upcoming dividend was announced yesterday. The fund expects to pay shareholders $1.29 per unit next month.

The shares are scheduled to trade ex-dividend on the 1st of October, with the payment date falling on 16 October.

The latest dividend means that the fund has paid an annual total of $3.44 per unit to investors. At the time of writing, that translates to a dividend yield of around 3.2%.

It’s not the highest dividend yield out there, but you’re paying for diversity.

So, how many VAS ETF shares do I need to own to generate $10,000 in passive income every year?

Based on the running total of $3.44 per unit over the past year, investors would need to own around 2,907 shares of the VAS ETF to earn $10,000 in passive income annually.

What would that cost me?

At the time of writing, the VAS ETF is $109.12 a piece. That means investors would need to invest roughly $317,200 in the fund to earn $10,000 per year in passive income.

It’s not a small amount, but if passive income combined with capital gains is your goal, it could be worth it in the long run.

And remember, you don’t need to invest the entire amount in one go. Start off small and let compound growth do some of the work for you.

The post How many VAS ETF shares do I need to buy for $10,000 per year of passive income? appeared first on The Motley Fool Australia.

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• Here are the most popular ASX share superannuation investments in SMSFs
• The Vanguard ETFs I’d buy first if I were starting again
• Why I’d invest $50,000 of superannuation into these 3 top ASX ETFs
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Motley Fool contributor Samantha Menzies has positions in BHP Group and Vanguard Australian Shares Index ETF. 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.