Tag: Stock pick

If you are looking for exposure to the mining sector, then it could pay to listen to what experts are saying about the ASX mining stocks in this article, courtesy of The Bull.

Here’s what they are saying about these stocks this week:

Arafura Rare Earths Ltd (ASX: ARU)

The team at Medallion Financial Group thinks Arafura Rare Earths is an ASX mining stock to hold.

While positive on its Nolans Project in the Northern Territory, it doesn’t appear to see enough value in its shares to recommend it as a buy. It said:

The rare earths company is developing the Nolans Project in the Northern Territory — Australia’s first fully integrated ore-to-oxide NdPr (Neodymium-Praseodymium) operation, producing the critical input for electric vehicle motors and wind turbines. With China controlling about 85 per cent of global processing and restricting exports, projects like Nolans are rare and strategically valuable. The company just reached its final investment decision and recently received commitments under an institutional placement to raise $350 million.

PLS Group Ltd (ASX: PLS)

Over at Catapult Wealth, it has named lithium giant PLS (formerly known as Pilbara Minerals) as a hold this week.

There is a lot to like about this ASX mining stock. However, it still isn’t quite enough for Catapult Wealth to give it a more positive recommendation. It said:

PLS is an Australian lithium producer, with its primary operation in Western Australia. PLS has a solid balance sheet. Revenue of $624 million in the first half of 2026 was up 47 per cent on the prior corresponding period. Driving growth is a combination of increasing demand for lithium and near term supply constraints. Demand is fuelled by growing battery and electric vehicle adoption, which has been boosted by the conflict in Iran and crude oil disruptions. The strong balance sheet and free cash flow should enable PLS to fund its expansion plans.

Unico Silver Ltd (ASX: USL)

Medallion Financial Group is more positive on this silver developer and has named it as an ASX mining stock to buy this week.

It likes the company due to its growing resource and exposure to a rising commodity. It explains:

This silver explorer is advancing high grade deposits in Argentina’s Santa Cruz province. The Joaquin project recently delivered a 143 per cent resource increase to 167 million ounces of silver equivalent since acquiring it in October 2024. The latest update was achieved from just 27,723 metres of drilling at a discovery cost of US11 cents per ounce. Silver demand is structurally supported by solar, electrification and green technology, giving USL direct leverage to a rising commodity. With the resource growing rapidly and development progressing, the investment case is building.

The post Buy, hold, sell: 3 very popular ASX mining stocks appeared first on The Motley Fool Australia.

More reading

• Which ASX lithium shares to buy as the market recovers: 2 brokers weigh in
• Top 10 ASX shares bought and sold by investors in May
• 3 ASX mining shares to buy: experts
• Buy, hold, sell: BHP, PLS Group, CBA shares
• How much could the PLS Group share price rise in the next year?

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) shares are frozen on Tuesday after the cloud connectivity company requested a trading halt.

The Megaport share price last traded at $16.61.

The stock closed 7.02% higher on Monday, extending a huge month for shareholders.

Megaport shares are now up 86% over the past month, making it one of the best performers on the ASX.

The halt comes after Megaport told the ASX it is preparing an announcement on “new material commercial transactions”.

Here’s what we know so far.

Trading halt puts investors on alert

According to the release, Megaport requested the trading halt to manage its continuous disclosure obligations.

The company said the halt relates to an announcement on new material commercial transactions.

Unless the ASX decides otherwise, Megaport shares will remain halted until the earlier of the announcement being released or the start of normal trading on Thursday, 4 June 2026.

That gives the company up to 2 trading days to release the update, although it could land sooner.

At this stage, no key details have been announced to the market.

The trading halt notice does not include a confirmed customer name, contract value, revenue impact, or duration.

While that leaves plenty of room for speculation, investors will need the full release before deciding what to do next.

Why the market is watching Megaport

Megaport provides on-demand network and cloud connectivity services.

Its platform helps businesses connect to cloud providers, data centres, and other digital infrastructure without needing to build fixed private networks.

The company has also been attracting more attention from investors as demand grows across cloud, AI workloads, and enterprise connectivity.

When looking at the bigger picture, Megaport commands a market capitalisation of about $2.95 billion.

The stock also sits near the top of its 52-week range of $6.40 to $17.87.

Only a month ago, investors were paying more than a 60% discount for the same business.

After an 86% monthly gain, the market is clearly expecting more from the company.

Megaport’s H1 FY26 results showed annual recurring revenue above $338 million and more than 37,000 total services at the end of the first half.

It also had more than 1,100 enabled data centres, giving it a large footprint across global digital infrastructure markets.

Foolish Takeaway

Megaport shares were already running hot before the halt, with the stock up 22% over the past week.

A brief reference to new material commercial transactions will naturally raise expectations.

The risk is that a lot of good news may already be sitting in the share price after such a strong move.

Investors will be watching to see whether the announcement justifies the stock’s rapid climb.

The post Megaport shares halted after 86% surge. Is another major deal coming? appeared first on The Motley Fool Australia.

More reading

• Why did Megaport shares rocket 70% in May?
• Here are the top 10 ASX 200 shares today
• These were the best-performing ASX 200 shares in May
• Could this ASX 200 tech share be a hidden AI winner?
• Buy, hold, sell: Goodman, Megaport, and New Hope shares

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 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.

It can be just as important to know which ASX shares to avoid as it is to know which ones to own when you are aiming to outperform the market.

That’s because if you own shares that are likely to fall in value, your portfolio returns could be dragged down along with them.

With that in mind, let’s look at three ASX 200 shares that analysts have named as sells this week, courtesy of The Bull. Here’s what they are bearish on:

A2 Milk Company Ltd (ASX: A2M)

Catapult Wealth has named A2 Milk shares as a sell this week. It has fears that a recent product recall could damage its brand image in the China market. In addition, the financial services company highlights that supply chain disruptions are constraining product availability. It said:

This infant milk formula company recently initiated a voluntary recall of three small batches of contaminated product sold only in the United States. While the recall didn’t impact the key Chinese market, it poses a reputational risk in a country and segment that is sensitive to brand reputation. A recent trading update revealed supply chain disruptions are constraining product availability despite strong underlying demand. The shares have remained under pressure since April when the company downgraded guidance in full year 2026.

Brambles Ltd (ASX: BXB)

The team at Red Leaf Securities is bearish on this logistics solutions company. As a result, it is recommending investors sell Brambles shares this week.

This is due to its belief that the ASX 200 share has gone from being a premium defensive compounder to a more challenged operational story. It explains:

This supply chain logistics giant has moved from a premium defensive compounder to a more challenged operational story following recent earnings and sales revenue downgrades. Disruptions in its United States pallet pooling network have exposed execution issues, resulting in higher costs. While the CHEP business model remains structurally sound, short term performance is weighed down by operational inefficiencies and inflationary pressures.

The downgrade cycle has shifted sentiment, with the market now questioning the sustainability of mid term growth expectations. Until execution stabilises and margins recover, Brambles lacks the earnings momentum required to justify a premium multiple, leaving risk skewed to the downside, in our view. The shares have fallen from $22.10 on May 15 to trade at $16.34 on May 28.

National Australia Bank Ltd (ASX: NAB)

Catapult Wealth has also named NAB shares as a sell this week. It was disappointed with the ASX 200 bank share’s performance in the first half.

And with trading conditions getting tough, it isn’t confident that NAB will be able to deliver on expectations. It said:

The bank’s first half result in fiscal year 2026 was underwhelming, in our view. Investment loans account for about a third of residential lending. Proposed changes to negative gearing and capital gains tax are likely to reduce loan and property price growth, in our view. Given higher interest rates and affordability pressures, NAB may struggle to deliver the growth needed to support current expectations.

The post 3 ASX 200 shares to sell this week according to experts appeared first on The Motley Fool Australia.

More reading

• Are ASX 200 bank shares a buy in June?
• Buy, hold, sell: Aristocrat Leisure, Brambles, Wesfarmers shares
• These were the worst-performing ASX 200 shares in May
• 5 ASX 200 shares downgraded by brokers this week
• Brambles shares have been smashed. Is this the support level to watch?

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.

4DMedical Ltd (ASX: 4DX) has launched a new clinical program which it says is designed to fast-track its entry into the large acute pulmonary embolism market.

The company’s shares jumped as high as $4.48 on the news before settling back to be 4.4% higher at $4.28.

Large market being targeted

4DMedical said in a statement to the ASX that CLEAR – contrast-free lung evaluation for acute risk in pulmonary embolism – was a clinical evidence program designed to fast-track its entry into the acute pulmonary embolism (PE) market, which would grow the addressable market for its CT:VQ product in the US to US$3 billion.

The company said PE accounts for about 600,000 to 650,000 diagnosed clinical episodes in the US per annum, with the true number of episodes likely much higher due to under-diagnosis.

The company added:

Because PE presents with non-specific symptoms such as chest pain and shortness of breath, and carries significant morbidity and mortality if untreated, clinical pathways are intentionally biased toward exclusion rather than confirmation. As a result, imaging volumes significantly exceed disease incidence.

4DMedical said CTPA – which its product could displace – had become the de facto imaging modality for suspected PE. This procedure involves injecting a contract dye into the bloodstream and taking x-ray scans.

Scan volumes had increased four-fold over the past 20 years or so, the company said.

The company added:

This persistent overuse has been accompanied by declining diagnostic efficiency. Across large cohorts, the positive diagnostic yield of CTPA has been reported in the range of approximately 3–10%, meaning the vast majority of patients (90-97%) undergo iodinated contrast exposure without confirmation of PE. Consequently, large volumes of patients are subjected to higher-cost imaging using contrast injections to rule-out PE as part of standard emergency and acute-care workflows.

4DMedical said there were an estimated five million CTPA scans carried out for suspected PE in the US each year.

Better outcome, less impact

Its CT:VQ product could achieve the same clinical outcome with less invasive scans, the company said.

CT:VQ generates quantitative, three-dimensional ventilation and perfusion maps from routine, non-contrast inspiratory and expiratory CT scans, enabling contrast-free functional lung assessment within standard CT workflows. Importantly, the underlying VQ (ventilation and perfusion) indication is already FDA-cleared, de-risking the regulatory pathway, while CLEAR generates the clinical evidence to drive adoption in acute PE. 4DMedical is already displacing nuclear VQ at pace. The Company believes the high-quality clinical evidence from CLEAR positions CT:VQ to extend beyond that core market into the materially larger (~5 million scans per annum in the U.S.) acute PE opportunity.

4DMedical also said it had entered into a clinical research agreement with Mass General Brigham at Massachusetts General Hospital – the largest teaching hospital of Harvard Medical School – to conduct the CLEAR program.

This will compare CT:VQ head to head with CTPA.

4DMedical is valued at $2.43 billion.

The post Why are 4DMedical shares charging higher today? appeared first on The Motley Fool Australia.

More reading

• Top 10 ASX shares bought and sold by investors in May
• Why 4DMedical, IperionX, Pro Medicus, and Ventia shaares are storming higher today
• This ASX healthcare rocket is up 14% in a week. Here’s why investors are still buying
• Here are the top 10 ASX 200 shares today
• Why 4DMedical, Elsight, Judo Capital, and Northern Star shares are racing higher 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 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 ASX share market is always providing us with opportunities to consider. A large portion of my portfolio is focused on ASX dividend shares, and there are two names I’m planning to put money towards during June 2026.

I want to find investments that can provide a satisfactory level of passive income, payout growth and capital growth. I can use those dividends for my own life expenditure, or re-invest the dividends. Plus, long-term growth can help me become wealthier.

In the coming weeks, I’m planning to invest in the following two businesses.

MFF Capital Investments Ltd (ASX: MFF)

This business is best known as a listed investment company (LIC), led by portfolio manager Chris Mackay.

MFF likes to invest in a portfolio of global shares that have a combination of quality and value, while having the potential for self-reinforcing growth. It says it owns around 25 of the best listed businesses in the world.

Some of those holdings include Alphabet, Amazon, Mastercard and Visa.

By investing in businesses with excellent growth compounding potential, MFF has delivered excellent returns. Impressively, the ASX dividend share has delivered an average total shareholder return (TSR) of 15.2% per year over the prior five years, according to CMC Invest.

That return – which I think is a decent measure of portfolio performance – helps fund a higher dividend and supports MFF share price growth. The MFF share price has risen by 80% in the last five years, though past performance is not a guarantee of future performance, of course.

The ASX dividend share has increased its regular annual dividend per share each year since 2018 and it expects to increase its annual dividend per share to 21 cents per share for FY26. That translates into a grossed-up dividend yield of 6.1%, including franking credits.

L1 Long Short Fund Ltd (ASX: LSF)

The other ASX dividend share I’m considering is this LIC operated by L1 Group Ltd (ASX: L1G). I may decide to split any investing I do this month between the two names I’m highlighting in this article.

I like how the investment strategy includes investing in ASX shares and global shares, with both long-term buys and short-selling. This gives the LIC a wide range of opportunities to look at, with a particular focus on businesses with lower price/earnings (P/E) ratios, double-digit earnings per share (EPS) and modest debt levels.

The ASX dividend share’s portfolio has delivered an average net return per year of 16.3% over the prior five years, which is a great level of return to fund rising dividends. It has increased its annual dividend each year since 2021. The current trend of its quarterly dividend suggests the next year of dividends could equate to a grossed-up dividend yield of 5.2%, including franking credits, at the time of writing.

With a progressive dividend policy and good portfolio returns, the LIC has a very positive future, in my view.

The post 2 great ASX dividend shares I plan to buy in June appeared first on The Motley Fool Australia.

More reading

• Forget BHP shares! Buy these ASX dividend shares instead for passive income
• 3 ASX financial shares to buy: experts
• How much is needed in superannuation to target a $3,000 monthly passive income?
• Don’t want to rely on your wage? Build a second income with these ASX shares
• Buy, hold, sell: L1 Long Short Fund, Metcash, and Wesfarmers shares

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund and Mff Capital Investments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Mastercard, and Visa. The Motley Fool Australia has recommended Alphabet, Amazon, Mastercard, Mff Capital Investments, and Visa. 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 0.72% to 8,666.9 points on Tuesday.

The market is cautious as it continues to wait for further news on peace negotiations between the US and Iran.

Among the 11 market sectors, technology shares are in the lead, up 3.3%, while ASX REITs are the laggard, down 1.8%.

Meanwhile on the The Bull this week, two experts give us their views on three ASX 200 shares.

Let’s check them out. 

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is $161.02, down 1.4% today, and down 0.6% in the calendar year to date (YTD).

John Athanasiou from Red Leaf Securities has a hold rating on this ASX 200 bank share this week.

Athanasiou explains:

CBA remains the highest quality franchise in Australian banking, supported by its dominant deposit base, strong digital ecosystem and industry leading profitability.

Earnings remain resilient, but growth is moderating as mortgage competition intensifies and credit expansion normalises.

Credit quality is stable and dividends remain highly reliable, reinforcing its defensive appeal.

However, the key issue is valuation, with the stock trading at a significant premium to domestic and global peers.

Much of the quality and stability is already priced in, leaving limited upside without a material macro or earnings surprise to the upside.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is $78.90, down 1.1% today, and down 3.5% YTD.

Philippe Bui from Medallion Financial Group puts a sell rating on this ASX 200 consumer discretionary share this week.

Bui says:

Wesfarmers is a high quality business, but the outlook is softening, in our view.

A deteriorating consumer environment and sticky inflation are pressuring forward earnings, while Amazon‘s growing penetration across core retail categories is an intensifying competitive threat that shows no signs of abating.

Saluda Medical Inc (ASX: SLD)

The Saluda Medical share price is 43 cents, up 10.3% on no news today, and down 70% YTD.

Bui has a buy recommendation on this ASX healthcare share, and comments:

Saluda makes the Evoke spinal cord stimulator — the only closed loop device that automatically adjusts pain therapy in real time.

Clinical results are strong, with 90 per cent of patients preferring it to traditional systems.

Global revenue grew by 34 per cent in the third quarter of fiscal year 2026 when compared to the prior corresponding period.

Full year guidance has been upgraded twice since its initial public offering in calendar year 2025.

Given the share price fall since listing in December 2025, the valuation is compelling at current levels, in our view.

With no closed loop offering from competitors, acquisition interest is a real possibility.

The post Buy, hold, sell: Wesfarmers, Saluda Medical, CBA shares appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares I think could beat the market over 10 years
• Top 10 ASX shares bought and sold by investors in May
• Are ASX 200 bank shares a buy in June?
• Buy, hold, sell: Aristocrat Leisure, Brambles, Wesfarmers shares
• Buy, hold, sell: BHP, PLS Group, CBA shares

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

Collins Foods Ltd (ASX: CKF) shares are slipping today.

Shares in the S&P/ASX 300 Index (ASX: XKO) KFC fast food restaurant operator closed yesterday trading for $8.43. In early morning trade on Tuesday, shares are swapping hands for $8.36 apiece, down 0.8%.

For some context, the ASX 300 is down 0.7% at this same time.

Here’s what’s happening.

Collins Foods shares slip despite growth plans

Investors are running their slide rules over Collins Foods shares after the company announced that is has completed the acquisition of eight KFC restaurants, located in the German state of Bavaria.

Collins Foods acquired the eight fast food outlets from JJ Restaurant GmbH & Co.

The acquisitions form part of Collins Food’s growth plans in the nation, with Germany touted as its second core growth pillar. The new restaurants roughly double the company’s portfolio in Europe’s top economy.

Management noted the eight new restaurants “strengthen the company’s position in Germany and deliver a meaningful increase in scale in one of the country’s most populous and economically significant regions”.

Citing the ongoing potential benefits of the acquisition, Collins Foods noted:

In addition, the acquisition unlocks further development opportunities in Bavaria — an attractive and affluent market that includes Munich, one of Germany’s largest and wealthiest cities. Germany remains an underpenetrated and attractive market for the KFC brand, offering significant long-term growth potential.

The company first announced its agreement to purchase the eight KFC restaurants after market close on 11 March. It listed the purchase price as 31.1 million euros, plus working capital. And it anticipated revenues from the acquired restaurants of around $28.2 million euros.

Collins Foods shares closed up 5.2% on the news when markets opened the following day. That enthusiasm may have been driven by forecasts that the acquired restaurants will operate at higher margins than Collins Foods’ existing German restaurants.

Commenting on the completed deal today, Collins Foods managing director & CEO Xavier Simonet said:

This acquisition marks another important milestone in our German growth strategy. The additional scale created enhances our operational presence and positions us well to accelerate growth further in this key market.

The company said it will consolidate the contribution from the acquisition in its financial results from 1 June.

What is the ASX 300 fast food stock planning in Germany?

Collins Foods shares could have a sizeable growth path in Germany.

In March, the company revealed that it is targeting 45 to 90 new restaurants over four years.

“The KFC brand has substantial potential in Germany with approximately a fifth of the store footprint of the largest competitor, McDonald’s,” Simonet said on the day.

The post Buying KFC owner Collins Foods shares? Here’s what’s happening in Germany appeared first on The Motley Fool Australia.

More reading

• Which 3 ASX fast food operators are going cheap at current levels according to Morgans?
• Brokers say these 2 ASX shares are highly undervalued — here’s why I agree

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

SRG Global Ltd (ASX: SRG) shares are having a strong session on Tuesday despite the market weakness.

At the time of writing, the ASX 200 share is up 17% to a record high of $3.68.

This compares favourably to the performance of the S&P/ASX 200 Index (ASX: XJO), which is down 0.5% in early trade.

Why is this ASX 200 share outperforming?

Investors have been bidding the diversified infrastructure services company’s shares higher today after it announced material contract wins.

According to the release, the ASX 200 share has secured $1.85 billion of contracts with blue-chip clients across a diverse range of sectors.

One of those is an eight-year term contract with Gympie Regional Council in Queensland to deliver program management services under an alliance contract model.

It notes that the scope covers the planning, design, and delivery of key water infrastructure, including a new water treatment plant, trunk water and wastewater networks, and the renewal and upgrade of ageing regional assets. The contract has commenced and will complete in January 2034.

Another contract is a seven-year term contract with Origin Energy Ltd (ASX: ORG) to provide asset integrity and advanced inspection services across its operations in central Queensland. The contract has commenced and will complete in December 2033.

In the industrial and resources sector, the ASX 200 share has secured an eight-year term contract with Fortescue Ltd (ASX: FMG). This will see it provide multi-disciplinary maintenance services across its operations in the Pilbara region of Western Australia.

There is also a two-year term contract with the BHP Group Ltd (ASX: BHP) and Mitsubishi Alliance to provide asset integrity and reliability services across its central Queensland operations.

Lastly, another contract is for the Maddington Data Centre (Stage 1) with CTC in Perth.

Guidance upgrade

In light of this success, the ASX 200 share has upgraded its FY 2026 EBITDA guidance to the top end of its previously provided range of $164 million to $168 million.

It has also initiated its FY 2027 EBITDA guidance in the range of $190 million to $200 million, which it notes is above current consensus estimates.

Commenting on the update, the company’s CEO, David Macgeorge, said:

We are pleased to have secured these significant contracts across Australia in a broad range of sectors with blue-chip repeat clients. These contract awards are a further demonstration of our market-leading capabilities as a truly diversified infrastructure services company.

I am also pleased to advise that we have upgraded our FY26 guidance to the top end of the previously provided EBITDA range of $164m to $168m, and that our FY27 EBITDA guidance will be a range of $190m to $200m, which is above current market consensus. This reflects the strength of our diversified operating model, the quality of our client base and our strong track record of delivering and exceeding market expectations. The Company is exceptionally well positioned to continue to deliver long-term sustainable growth.

The post Guess which ASX 200 share is jumping 17% on earnings guidance upgrade appeared first on The Motley Fool Australia.

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• China’s PMI data beat forecasts. Investors should be looking at these ASX resource stocks
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group and Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Atlas Arteria Group (ASX: ALX) share price is in focus after the company lodged its Supplementary Target’s Statement rejecting IFM’s takeover offer, which independent directors say undervalues the business and is below the current market price.

What did Atlas Arteria report?

• The independent directors unanimously recommend Atlas Arteria securityholders reject the $4.75 per security takeover offer from IFM.
• The Independent Expert’s Report values Atlas Arteria at $5.39–$6.20 per security, higher than the current offer.
• The offer price is below Atlas Arteria’s recent closing price of $5.04 (as at 1 June 2026).
• The IFM offer remains highly conditional and may extend up to 12 months.
• Bidder retains the right to increase the offer up to $5.10 within 12 months after the offer closes.

What else do investors need to know?

The Supplementary Target’s Statement responds directly to IFM’s Third Supplementary Bidder’s Statement, reiterating that the offer is “too low, opportunistic and highly conditional”. Atlas Arteria’s independent directors maintain that the terms do not provide an appropriate premium for control or reflect the long-term value of its international toll road portfolio.

The Board highlights that accepting the offer now would prevent shareholders from selling on market for potentially higher prices during the lengthy offer period. Securityholders are encouraged to read the full Target’s Statement and seek independent advice if considering their options.

What’s next for Atlas Arteria?

Atlas Arteria’s board will continue actively engaging with shareholders and monitoring developments related to IFM’s bid. Investors can expect ongoing updates if circumstances change or if a revised offer is made.

The company also remains focused on disciplined management and sustainable long-term value creation through its established portfolio of toll road assets in France, Germany, and the United States.

Atlas Arteria share price snapshot

Over the past 12 months, Atlas Arteria shares have declined 5%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

The post Atlas Arteria responds to IFM with “reject” on takeover offer appeared first on The Motley Fool Australia.

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

Megaport Ltd (ASX: MP1) shares were among the best performers on the Australian share market in May.

During the month, the network-as-a-service provider’s shares rocketed an incredible 70%.

This compares very favourably to a gain of 0.75% by the benchmark S&P/ASX 200 Index (ASX: XJO).

Why did Megaport shares smash the market?

Investors were scrambling to buy the company’s shares after it followed up a big announcement late in April with an even bigger announcement in the middle of May.

Late in April, Megaport revealed that its Latitude.sh business had secured a major new customer contract for compute and storage. The customer signed a 36-month contract with a total value of approximately US$25.1 million (A$35.4 million). It notes that this represents approximately US$8.4 million (A$11.8 million) in annualised recurring revenue (ARR).

That announcement was already giving investor sentiment a boost early in May, but the announcement that followed a couple of weeks later is what really put a rocket under Megaport’s shares.

That announcement revealed that the Latitude.sh business had secured three major GPU, CPU, network, and storage contracts across two customers. Management stated its belief that this reinforced its position as a critical infrastructure partner in the accelerating artificial intelligence (AI) ecosystem.

According to the release, the contracts represent a combined total contract value (TCV) of approximately US$182.9 million (A$254 million), representing approximately US$65.2 million (A$90.6 million) in ARR.

Two of the contracts, representing approximately 90% of the TCV, have 36-month initial terms, while the third contract has a 24-month contract term.

Megaport’s CEO, Michael Reid, commented:

We are at the forefront of an accelerating inflection point across the industry. As use cases shift from AI foundation models to inference and the edge, Megaport is becoming an essential platform for powering the applications of tomorrow with globally distributed, automated infrastructure.

Whether supporting AI, edge compute, or anyone requiring instant global reach and performance, Megaport is a one-stop platform for the AI ecosystem, providing on-demand, software-enabled performance of dedicated hardware with the flexibility of a global network.

Positive broker response

In response to the news, a number of leading brokers upgraded their earnings estimates and valuations accordingly.

Arguably the most bullish was the team at Macquarie Group Ltd (ASX: MQG), which retained its outperform rating with an improved price target of $26.30. The good news is that even after its heroics in May, this price target still implies potential upside of almost 60% for Megaport’s shares over the next 12 months.

This may bode well for its performance in June.

The post Why did Megaport shares rocket 70% in May? appeared first on The Motley Fool Australia.

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