Tag: Stock pick

4DMedical Ltd (ASX: 4DX) shares are having a strong session on Wednesday.

At the time of writing, the ASX tech stock is up 18% to $1.96.

Why is this ASX tech stock surging?

Investors have been scrambling to buy the respiratory imaging technology company’s shares following the release of a promising announcement.

According to the release, the company has signed a significant expansion of its distribution agreement with Koninklijke Philips NV (NYSE: PHG) for its FDA-cleared, non-contrast computed tomography (CT) ventilation and perfusion imaging solution, CT:VQ.

Under the expanded agreement, Philips will add CT:VQ to its North American product portfolio, distributing the technology through its established commercial infrastructure and customer relationships.

Philips has agreed to a minimum of approximately A$15 million (US$10 million) in customer orders in 2026 and 2027.

The ASX tech stock also notes that Philips will allocate dedicated sales and clinical specialists carrying CT:VQ sales targets. Joint marketing initiatives and co-branding campaigns are being initiated to drive market awareness and adoption. RSNA (Radiological Society of North America) 2025 will mark the first major international launch event for the collaboration.

What is CT:VQ?

4D Medical describes CT:VQ as the world’s first technology capable of extracting quantitative ventilation-perfusion (VQ) data from routine non-contrast CT scans.

The technology measures regional lung tissue motion and local density changes to generate comprehensive ventilation and perfusion maps without requiring radiotracers or contrast agents.

It notes that the solution addresses several critical limitations of traditional nuclear VQ imaging. By eliminating radiotracers, the technology streamlines scheduling, improves patient access, and removes complex handling requirements, and regulatory constraints. Importantly, CT:VQ integrates seamlessly with existing CT protocols.

There are over one million nuclear VQ scans performed annually in the United States, with an average reimbursement rate of approximately US$1,150 per scan. Management points out that this represents an addressable market of more than US$1.1 billion annually in the U.S., estimated at over US$2.6 billion globally.

And given the clinical and logistical advantages of CT:VQ over traditional nuclear VQ imaging modalities, 4DMedical revealed that it is confident it can rapidly capture a significant part of this market.

Management also anticipates that the introduction of the solution into the market will drive long-term growth in demand for ventilation-perfusion scans beyond the traditional nuclear VQ indications.

Overall, these are exciting times for this ASX tech stock.

The post Why this exciting ASX tech stock is rocketing 18% today appeared first on The Motley Fool Australia.

More reading

• Why Bell Potter just doubled its valuation of this exciting ASX tech stock

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.

Vulcan Energy Resources Ltd (ASX: VUL) has made a final investment decision on its Lionheart lithium and renewable energy project in Germany, and has announced a $3.9 billion financing package to bring it into production.

The company announced on Wednesday that Phase 1 of the Lionheart project will produce 24,000 tonnes of lithium hydroxide monohydrate per year, sufficient to manufacture approximately 500,000 electric vehicle batteries.

It would also produce about 275 gigawatt hours of renewable energy and 560 gigawatt hours of heat for local consumers per year, over an estimated 30-year project life.

Debt and equity to finance project

Vulcan, which is backed by Australian iron ore magnate Gina Rinehart, said the phase one financing package included $2.1 billion in debt funding from a syndicate of 13 financial institutions, including the European Investment Bank.

The company would also raise $1.1 billion in an equity raising, comprised of a $245 million institutional placement at $4 per share, a $465 million institutional entitlement offer, and a $366 million retail offer open to existing Vulcan shareholders.

The raising is at a deep discount to Vulcan’s trading price at market close yesterday, with the company’s shares finishing at $6.13 on Tuesday.

Vulcan Managing Director Cris Moreno said securing the financing and making the decision to proceed with the project were significant milestones for the company.

A lighthouse project for Europe, Lionheart is set to redefine lithium production, delivering Europe’s first fully domestic and sustainable lithium value chain. It will also provide a clean and reliable source of renewable energy for local communities and industries in Germany’s Upper Rhine Valley.

The project involves stripping the lithium from hot brine sourced from underground, with energy and heat also produced as part of the process.

In addition to securing debt funding from the European Investment Bank, the project has also been supported by Export Finance Australia with $214 million in debt funding, Export Development Canada with $357 million, and the Export and Investment Fund of Denmark with $179 million.

Construction to start imminently

Vulcan said it had entered into the majority of the major project contracts for the construction of Lionheart Phase One and had received all of the major construction permits for the project.

The company said on Wednesday it expected the project to generate an average of €566 million in revenue per year and €427 million in EBITDA.

Vulcan shares were in a trading halt on Wednesday while the capital raising plans were finalised.

Ms Rinehart’s Hancock Prospecting owned a 6.49% stake in Vulcan before the capital raising plans were announced.

The post Gina Rinehart-backed Vulcan Energy Resources pulls trigger on European lithium project appeared first on The Motley Fool Australia.

More reading

• Why is this ASX lithium stock sinking 7% 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.

Northern Star Resources Ltd (ASX: NST) shares are edging lower today.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $27.11. In early morning trade on Wednesday, shares are swapping hands for $26.97 apiece, down 0.5%.

For some context, the ASX 200 is up 0.2% at this same time.

With today’s intraday dip factored in, Northern Star shares have gained 74.6% in 2025, racing ahead of the 4.9% year-to-date gains posted by the benchmark index.

Atop those capital gains, the ASX 200 gold stock also trades on a fully franked 2% trailing dividend yield.

The company’s roaring share price gains this year have been partly driven by the rocketing gold price. Gold is currently trading for US$4,206 per ounce, up 60% since this time last year.

Investors have also been buying the ASX gold miner amid its own operational successes, including its recent acquisition of De Grey Mining, completed in May.

Of course, those gains have come and gone.

Which brings us back to our headline question…

Are Northern Star shares a buy right now?

Red Leaf Securities’ John Athanasiou recently ran his slide rule over the ASX 200 gold miner (courtesy of The Bull).

“This gold miner has solid fundamentals, strong cash flows and a growing project pipeline, but upside is tempered by key risks,” said Athanasiou.

He noted:

Major growth projects, including KCGM (Kalgoorlie Consolidated Gold Mines) mill expansion and the Hemi development are capital intensive with execution uncertainty. Costs are under pressure, and earnings remain exposed to volatile gold prices, which increases uncertainty.

With those risks in mind, Athanasiou isn’t ready to pull the trigger to buy Northern Star shares just yet.

“Until a clearer picture emerges in relation to project delivery and commodity stability, a hold position is prudent,” he concluded.

What’s happening with the ASX 200 gold miner’s growth projects?

Commenting on the projects that are intended to deliver long-term growth for Northern Star shares at the company’s AGM in November, chairman Michael Chaney said:

A major achievement during the year, and one that sets Northern Star up for long term success, was the acquisition of De Grey Mining Ltd and its Hemi Development Project, which is one of the largest existing, undeveloped gold projects in a world-class jurisdiction.

We look forward to bringing Hemi into production over the next few years.

As for KCCM, Chaney noted that despite more challenging geotechnical conditions encountered at the project, “FY25 also saw strong progress on the KCGM Mill Expansion Project on which we expect to begin commissioning in mid calendar year 2026.”

He added, “This will allow us to progressively increase ore throughput from KCGM’s current rate of 13 million tonnes to 27 million tonnes from FY29.”

The post Up 75% this year, are Northern Star shares still a buy today? appeared first on The Motley Fool Australia.

More reading

• Macquarie names best and worst ASX stocks to buy in a rising interest rate environment
• 5 things to watch on the ASX 200 on Wednesday
• 70% of institutional investors expect gold price to rise in 2026
• Buy, hold, sell: CSL, DroneShield, and Northern Star shares
• 5 things to watch on the ASX 200 on Monday

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

Predictive Discovery Ltd (ASX: PDI) shares are rocketing on Wednesday morning.

At the time of writing, the ASX 300 gold stock is up 27% to 79.5 cents.

This follows news that a competing takeover offer has been tabled by Perseus Mining Ltd (ASX: PRU).

ASX 300 gold stock rockets on takeover news

This morning, Predictive Discovery revealed that it has received an unsolicited proposal from Perseus Mining.

The gold miner wants to acquire all shares not already owned by it in exchange for 0.136 new Perseus shares per Predictive Discovery share.

Based on the Perseus Mining share price at yesterday’s close, this values each Predictive Discovery share at 77.8 cents. This implies a fully diluted valuation of approximately $2.1 billion and represents a premium of 24.5% to its last close price on 2 December.

The ASX 300 gold stock notes that the proposal is superior to is planned merger with Robex Resources (ASX: RXR), which aimed to creates West Africa’s next mid-tier gold producer. Robex shares are crashing 10% on the news today. Though, Robex has a five business day matching period to table a new proposal.

According to the release, Perseus Mining’s offer will include a $37 million unsecured loan facility to be used for the purposes of paying any termination fee payable under the Robex arrangement agreement.

Perseus believes that the ASX 300 gold stock would be an excellent strategic fit and enhance its portfolio quality and African gold platform. It said:

Perseus’s rationale for the Proposed Transaction is as follows: Excellent strategic fit: as Predictive’s largest shareholder (17.8%), the transaction enhances Perseus’s portfolio quality and the Company’s African gold platform; Proven track record of delivery: Perseus is uniquely placed to de-risk, optimise and ultimately unlock the full potential of Predictive’s Bankan Gold Project (Bankan) in Guinea, with its world class projects team currently executing a similar development at Nyanzaga; Enhanced growth profile: consistent with Perseus’s M&A track record, this transaction is financially compelling and is expected to materially enhance earnings, cash flow and production going forward.

It then adds:

Significant scale & diversification: as one of the largest undeveloped gold projects in Africa, Bankan adds material ounces and mine life across a fifth jurisdiction, with its production of ~249koz1 adding to Perseus’s existing production of 500-600koz per annum2 ; Strong financial position: Bankan and Nyanzaga to be funded via existing liquidity and cashflows with no change to capital management policy; Exploration potential: significant exploration potential in the Siguiri Basin, which can be accelerated and unlocked through Perseus’s proven ability to extend mine life through exploration; and Potential value uplift: potential value uplift post transaction given enhanced scale, asset quality, longevity, jurisdictional diversification and de-risking of development.

The post This ASX 300 gold stock is rocketing 27% amid takeover bidding war appeared first on The Motley Fool Australia.

More reading

• Perseus Mining launches superior offer for Predictive Discovery shares
• Macquarie names best and worst ASX stocks to buy in a rising interest rate environment
• Why are ASX 200 gold stocks like Northern Star smashing the benchmark on Thursday
• 2 ASX 200 mining stocks smashing new 52-week highs on Thursday
• Why are ASX gold shares and ETFs soaring today?

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.

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) are the two largest Australian mining companies listed on the S&P/ASX 200 Index (ASX: XJO). Both stocks are focused on iron ore, which means they are exposed to potential commodity price swings.

When it comes to these two dominant forces, I’d buy one but sell the other.

I’d buy Rio Tinto shares

Rio Tinto shares closed 1.71% higher on Tuesday afternoon, at $135.03 a piece. Over the past month, the miner’s shares have climbed 1.65% and they’re now 14.23% higher for the year to date.

Rio Tinto has enjoyed a strong share price run in the second half of the year, driven by robust global demand for iron ore and copper. This has been spurred by early signs of a recovery in China’s sluggish economic growth.

The mining giant turned heads when it released its third-quarter update in October, where it revealed an uptick in production levels. While iron ore is Rio Tinto’s primary income-earning material, the miner has been actively boosting production of other metals beyond iron ore, particularly its copper operations. This helps to give the mining giant a volatility buffer against iron ore price swings. 

It looks like Rio Tinto is positioning itself well for more growth over the next 12 months and I’m optimistic that we’ll see more share price growth out of the company too. 

Tradingview data shows that out of 15 analysts, 7 have a buy or strong buy rating on Rio Tinto shares. Another 7 have a hold rating and just 1 has a sell recommendation. The maximum target price is $157.96 which implies a potential 16.98% upside at the time of writing. 

I’d sell BHP shares

BHP also finished the day in the green on Tuesday. At the close of the ASX the stock was 1.1% higher at $42.56 a piece. That means that over the past month BHP shares are down 1.87% and for the year-to-date the shares are 6.51% higher.

BHP is heavily reliant on iron ore prices, and while it has diversified with assets like copper, the price of iron ore significantly impacts BHP’s profitability and share price. China’s ongoing attempt to assert more control over iron ore pricing in its deals with BHP has been a headwind for the miner over the past month. The miner also recently announced it is abandoning acquisition discussions with Anglo American (LSE: AAL).

I think these headwinds are going to start taking a toll on the mining giant’s share price over the next 12 months. Analysts seem to be divided about the stock’s outlook too. Tradingview data shows that out of 19 analysts, 2 have a sell or strong sell rating on the shares. Another 11 have a hold rating and 6 have a buy or strong buy rating. The maximum target price is $48.38 a piece, which implies a potential 13.67% upside at the time of writing, but some predict BHP’s share price could fall 7.64% to $39.31 a piece.

The post Rio Tinto versus BHP shares: One I’d buy and one I’d sell appeared first on The Motley Fool Australia.

More reading

• What happened with BHP, Rio Tinto and Fortescue shares in November?
• Macquarie names best and worst ASX stocks to buy in a rising interest rate environment
• Is the BHP share price a buy for passive income?
• Here’s the earnings forecast out to 2030 for BHP shares
• Analysts think BHP and these ASX dividend shares are buys 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 recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Perseus Mining Ltd (ASX: PRU) share price is in focus today after the company delivered a binding offer to acquire all remaining shares in Predictive Discovery Ltd (ASX: PDI) , valuing each Predictive share at A$0.778 and representing a 24.5% premium to Predictive’s last closing price.

What did Perseus Mining report?

• Definitive binding offer to acquire 100% of Predictive Discovery shares it does not already own
• Offer valued at 0.1360 new Perseus shares per Predictive share, implying A$0.778 per Predictive share
• Premium of 24.5% to Predictive’s 2 December closing price and 34.8% to its 10-day VWAP
• A$37 million loan facility offered to Predictive for working capital and pre-development needs
• On completion, Predictive shareholders (excluding Perseus) will own approximately 18.4% of Perseus shares

What else do investors need to know?

Perseus already holds 17.8% of Predictive Discovery and sees the move as a natural fit to expand its African gold portfolio. The Bankan Gold Project in Guinea, which Predictive is developing, would add significant scale—boosting mine life and providing further diversification for Perseus.

The Predictive board has unanimously declared Perseus’ offer to be a “Superior Proposal” compared to a previous agreement with Robex Resources. Robex has a five-day right to match Perseus’ bid, with that period closing on 10 December 2025.

What did Perseus Mining management say?

Commenting on this development, Managing Director and CEO Craig Jones said:

This transaction is expected to enhance our growth profile, production and cash flows, while allowing us to unlock the full potential of the Bankan Project.

What’s next for Perseus Mining?

To proceed, the offer requires approval from Predictive shareholders and various regulatory clearances, along with an independent expert’s positive opinion. Once complete, Perseus expects the transaction to strengthen its position as a leading African gold producer and unlock further exploration potential across Guinea’s Siguiri Basin.

Perseus will keep investors updated, especially as Robex’s right to match the offer continues through the next week. No action is required from Perseus shareholders for now.

Perseus Mining share price snapshot

Over the past 12 months, Perseus Mining shares have risen 120%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 1% over the same period.

View Original Announcement

The post Perseus Mining launches superior offer for Predictive Discovery shares appeared first on The Motley Fool Australia.

More reading

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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.

Multiple supply disruptions and healthy demand will support continued strength in the copper price, Wilsons Advisory says, with the broker naming some key players on the ASX to keep an eye on.

The team at Wilsons said in a note to clients this week that, after a three-year downturn in the resources sector, with the exception of gold, momentum appears to be turning positive, with several trends underpinning a revival.

Several tailwinds for demand

Wilsons said the macroeconomic environment is becoming more supportive for resources, with rate cuts in the US likely to stimulate global commodity demand, and a weaker US dollar offering a tailwind for US dollar-priced commodities.

There are also several industry-specific drivers, including growth in data centre builds and associated infrastructure to support the artificial intelligence boom, the onshoring of supply chains and the build-out of national commodity stockpiles, and a renewed interest in defence spending.

At the same time, supply dynamics remain a key differentiator across commodities – with tightening supply conditions supporting the rallies in metals like copper and aluminium.

On copper specifically, Wilsons said there were reasons to be bullish on pricing going forward.

Copper remains one of our preferred commodities, supported by healthy demand and increasingly constrained supply. Prices recently hit record highs (US$5.10/lb), driven by multiple supply disruptions which have tightened the physical market, however, we continue to see upside to the copper price over the medium-term.

The energy transition and the move towards electrification continue to support long-term demand for copper, Wilsons said, while supply constraints “remain significant”.

Significant operational disruptions at Freeport McMoRan’s Grasberg mine- the world’s second-largest copper mine, along with disruptions at Kamoa-Kakula, Cobre Panama, and QB, have exacerbated market tightness in an already constrained market. Moreover, declining ore grades, deeper mines, rising costs, the lack of large-scale projects in the pipeline – alongside sovereign risks – are all likely to limit new project delivery and push the cost-curve higher over time.

ASX-listed companies to watch

Among ASX-listed copper producers, Wilsons said their preferred pick in the sector was Sandfire Resources Ltd (ASX: SFR) despite it trading above the current price target from Canaccord Genuity of $15.

As the only pureplay ASX 100 copper producer, Sandfire has a best-in-class track record of operational delivery, which continues to underpin reliable leverage to the copper price.

Wilsons said outside of the S&P/ASX 100 Index (ASX: XTO), Canaccord has buy ratings on Hillgrove Resources Ltd (ASX: HGO), with a price target of 5 cents, compared to the current price of 3.4 cents, and Capstone Copper Corp (ASX: CSC), which Canaccord has a price target of C$14.50 ($15.80) on, compared to the current price of $13.44.

Hillgrove operates the Kanmantoo copper mine in South Australia, where it recently upgraded the mineral resource to 160,000 tonnes of contained copper and 120,000 ounces of gold.

The post With copper increasingly in demand, what are the Aussie stocks Wilsons Advisory is tipping to be winners? appeared first on The Motley Fool Australia.

More reading

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• Revealed: BHP and 4 other ASX 200 mining stocks rank among top global copper producers
• ASX 200 mining shares rip as lithium makes a comeback
• What is Ord Minnett’s view on Sandfire Resources shares?

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.

After a relatively calm stretch, the trademark price turbulence of Bitcoin (CRYPTO: BTC) has returned — and it has been hard to miss. 

In recent months, the digital asset surged to an all-time high near US$126,000 before sliding more than 30% from peak to trough. This week alone, the price swung from around US$92,000 to below US$85,000 and then jumped more than 8% overnight.

For long-term observers, this isn’t unusual behaviour. Volatility has always been part of Bitcoin’s story, and historically, these periods of sharp movement tend to arrive with various neat headlines to blame. 

So what is actually going on, and is any of this relevant for ASX investors?

Why Bitcoin is moving so sharply

Market observers suggest the latest pullback has far more to do with liquidity dynamics than a fundamental shift in sentiment. Analysts tracking flows point to tightening liquidity conditions, with shorter-term traders adjusting their positioning as central bank reserves stabilise again. This often creates pressure across risk assets — Bitcoin included.

At the same time, some of the selling pressure from long-term holders appears to have eased. On-chain data shows renewed accumulation from larger cohorts, which is typically a constructive sign for medium-term price trends.

And importantly, mainstream interest continues to grow. Bank of America recently suggested that a 4% portfolio allocation may make sense for certain investors. Meanwhile, Vanguard has softened its long-standing stance by opening access to Bitcoin exposure across its platform. Whether or not investors agree with those endorsements, they reflect a noticeable shift in institutional acceptance.

Why volatility sometimes has nothing to do with fundamentals

One of the biggest drivers of short-term swings is far more mechanical: leverage.

Both long and short leveraged positions can be wiped out when Bitcoin moves quickly. When that happens, forced liquidations trigger further buying or selling, which can amplify each price move. It’s part of the reason why prices can plunge one hour and rally aggressively the next without any change in broader conditions.

In other words, the volatility is often a function of market structure rather than real economic news.

What this means for ASX investors

Even if you don’t hold Bitcoin directly, its movements increasingly touch the Australian market:

Digital infrastructure companies: ASX names like Block (ASX: XYZ) tend to react to shifts in digital asset sentiment because their revenue models and investor bases overlap with the broader ecosystem.

ASX-listed Bitcoin ETFs: Funds such as the VanEck Bitcoin ETF (ASX: VBTC) and Betashares Bitcoin ETF (ASX: QBTC) move broadly in line with the underlying asset. Swings in Bitcoin flow into these products immediately.

None of this means ASX portfolios must have exposure. But it does underline why more market participants are keeping an eye on Bitcoin’s behaviour, even if they never intend to own a single satoshi.

Foolish takeaway

Bitcoin’s volatility can be unsettling, but it isn’t new. For some investors, the asymmetric nature of the asset — the idea that the long-term upside could outweigh the downside — is enough reason to consider a small, well-defined allocation. For others, the swings alone are reason to steer clear.

The sensible middle ground is simple: invest in assets you understand, in a way that aligns with your goals and risk tolerance.

Bitcoin’s price movements will continue to make headlines, but your long-term strategy should remain anchored in discipline, diversification, and patience, whether you hold digital assets or not.

The post Bitcoin price volatility is back. Should ASX investors pay attention? appeared first on The Motley Fool Australia.

More reading

• Bitcoin price collapse leads US$1 trillion crypto crash
• Why are ASX 200 tech stocks getting smashed on Friday?
• Here are the top 10 ASX 200 shares today
• This is the only reason you should be buying Bitcoin right now
• Why is the Bitcoin price getting smashed?

Motley Fool contributor Leigh Gant owns Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. 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 team at Morgans has been busy running the rule over a number of popular ASX shares in recent days.

Let’s see what the broker is saying about them and whether it thinks they are in the buy zone right now:

A2 Milk Company Ltd (ASX: A2M)

Morgans was pleased with this infant formula company’s strong start to FY 2026 and has upgraded its estimates to reflect this.

However, while it is a fan of the company, it feels that its shares are fair value at current levels and has retained its hold rating with a $9.40 price target. It said:

A2M has had a stronger than expected start to FY26 and consequently, it has upgraded its sales and NPAT guidance. We have upgraded our forecasts and forecast strong growth from FY27 onwards. While we rate the company and its management team highly, we believe that the stock is trading on fair multiples (FY27 PE of 31.5x and PEG of 1.8x). We maintain a Hold rating with a new price target of A$9.40.

Mach7 Technologies Ltd (ASX: M7T)

Morgans has responded positively to the release of this enterprise image management systems provider’s strategic transformation plans. It believes it positions the company for sustainable growth in the coming years.

As a result, the broker has retained its buy rating with a trimmed price target of 76 cents. This is almost 70% higher than where its shares trade today. It said:

M7T released its strategic transformation plans at its AGM, introducing a customer-focused operating model and the upcoming Flamingo AI platform to drive long-term growth, efficiency, and new revenue through modernised imaging solutions. Despite potential near-term revenue softness, the transformation is well-aligned with industry trends and positions M7T for sustainable growth and signals genuine innovation and a commitment to delivering what radiology customers want.

VEEM Ltd (ASX: VEE)

A third ASX share that Morgans has been looking at is marine, defence, and mining products manufacturer.

While its recent trading update was softer than expected, the broker remains positive and sees plenty of upside for investors. In light of this, it has upgraded its shares to a speculative buy rating with a $1.10 price target. This implies potential upside of 30% for investors from current levels. It commented:

VEE’s AGM update was softer than expected, primarily due to delays in receiving ASC orders and a hold-up in obtaining security clearance for the Hunter-class propeller project. Additionally, anticipation around the launch of the Mark III gyro led to purchase hesitancy among potential customers in 1H26. These delays have shifted some work to 2H26, which management expects to be stronger, driven by significant contributions from defence (particularly ASC).

While the trading update was disappointing, we believe VEE’s outlook remains positive with multiple growth opportunities across defence (eg, HII, Northrop Grumman, Hunter Class Frigate Program), propulsion (VEEM Extreme, Sharrow), and gyros (Mark III). Timing of order flow remains uncertain, which is likely to cause earnings volatility in the near term. However, the long-term earnings potential of these opportunities remains significant.

The post Morgans gives its verdict on A2 Milk and these ASX shares appeared first on The Motley Fool Australia.

More reading

• What’s driving a 9% divergence in ASX 200 consumer staples vs. discretionary shares?
• Why did the ASX 200 dive to a near six-month low last week?
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy today
• Does Macquarie rate a2 Milk shares a buy, hold, or sell?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Mach7 Technologies. The Motley Fool Australia has recommended Veem. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Consumer discretionary shares haven’t had the best year in general as a sector. 

While sectors like materials and industrials have brought strong returns (up 10% to 20%), consumer discretionary has lagged behind. 

For context, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) has risen just 4% since January. 

However, the team at Bell Potter have just initiated coverage on Beacon Lighting Group Ltd (ASX: BLX) with a buy recommendation. 

Despite the share price being down roughly 3.5% since the start of the year, and almost 20% since August, Bell Potter has an optimistic price target on this consumer discretionary stock. 

Beacon Lighting Group  

Beacon Lighting Group is a specialist retailer of lighting, fans, globes, and electrical accessories, servicing retail, trade, and wholesale customers. 

The company retails over 3,500 products, with more than 85% of those designed in-house, which is key to its vertically integrated business model and thus provides high, defensive gross margins. 

These products are primarily sold through a network of 131 retail stores across Australia, as well as through a significant online presence. 

Future growth in store

Bell Potter said in yesterday’s report that, as the largest specialist retailer in a fragmented market made up of single-store operators or large multi-category retailers, it has a unique market positioning, as designer, manufacturer, and retailer of lighting products.

The key growth category for BLX is its trade business, currently making up ~40% of group revenue as of FY25, targeting 50% by FY28, which we estimate will grow at a 3- yr CAGR of 10% from FY25-28e. Comparatively, the more mature retail business is expected to grow ~4%, driven by a stable 4-store rollout per annum.

The broker also said the trade segment has benefited from a housing boom versus the retail business stabilising due to cost-of-living pressures and less discretionary income available. 

Overall, it expects the total group to grow at a rate of ~7% per annum as it continues to take market share from single-owner operators and expands further into trade and commercial avenues.

Buy recommendation from Bell Potter

The broker has initiated coverage on this consumer discretionary stock with a price target of $3.35. 

Yesterday, Beacon Lighting Group shares closed at $2.96. 

This means Bell Potter’s price target indicates an upside of approximately 13.18%. 

The broker said it views the company’s leading market position in a fragmented market (~12% market share) and vertically integrated business model (FY25 GM ~69%) as attractive and unique characteristics for a specialty goods retailer.

We believe the business is well positioned to take advantage of a recovering retail environment, supported by a strong housing market and construction outlook.

The post Bell Potter just initiated coverage with a buy rating on this consumer discretionary stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell 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.