Tag: Stock pick

Westpac Banking Corp (ASX: WBC), Cleanaway Waste Management Ltd (ASX: CWY), and Qantas Airways Ltd (ASX: QAN) are grabbing plenty of investor interest today.

As we head into the Tuesday lunch hour, all three of the S&P/ASX 200 Index (ASX: XJO) stocks are underperforming the current 0.4% gain posted by the benchmark index.

Here’s what’s happening.

Qantas shares slide on surging jet fuel costs

Qantas shares are slipping today, down 1.3% at time of writing at $8.90 each.

This follows an update this morning in which the ASX 200 airline stock warned that fast rising energy costs are going to impact its full year costs assumptions.

Indeed, since the outbreak of the Iran war, the Brent crude oil price has surged from US$71 per barrel to US$98 per barrel today. Brent crude oil traded near US$113 towards the end of March, having kicked off 2026 at just US$61 per barrel.

And that’s going to have a material impact on fuel guzzling jetliners.

How much of an impact will that have on Qantas shares?

Well, enough so that the airline has more than doubled its previous expectations for second half year (H2 2026) jet fuel costs to the range of $3.1 billion to $3.3 billion.

To mitigate the impact of the ongoing conflict in the Middle East on its operations, Qantas said it is taking steps that include international network changes, capacity adjustments and fare increases.

With the current uncertainty in mind, Qantas planned $150 million on-market share buyback has not yet commenced.

Which brings us to…

Cleanaway shares slip on earnings downgrade

Cleanaway shares are also grabbing investor interest today, and for a related reason to Qantas shares.

Shares in the ASX 200 waste management and environmental services company are down 1.1% at time of writing, changing hands for $2.31 apiece.

Investors are bidding down Cleanaway shares after the company announced that it was downgrading full year FY 2026 earnings before interest and tax (EBIT) guidance to between $460 million and $480 million. That’s down from prior full year earnings guidance of $480 million to $500 million.

The reason?

You guessed it. The Iran war.

The company estimates earnings will take a full year hit of some  $20 million, catching headwinds from higher fuel prices, increased supplier and logistics costs, and lower Middle East project activity.

Westpac shares in focus amid rising inflation and interest rates

Atop Cleanaway and Qantas shares, investors are tuning into Westpac today after the ASX 200 bank stock released an update detailing items impacting its first-half 2026 (H1 2026) results.

These include, wait for it, the initial impacts of the Middle East conflict.

Westpac noted:

With the supply shock from the energy market disruption expected to result in higher inflation and higher interest rates, an expected slowing in economic growth will create a more challenging environment for some customers.

The bank said its “strong financial position” enables it to support customers during these uncertain times while accelerating the execution of its strategic priorities.

The post Why Westpac, Cleanaway and Qantas shares are catching ASX investor interest on Tuesday appeared first on The Motley Fool Australia.

More reading

• Why Clarity, Qantas, Universal Store, and Westpac shares are falling today
• Qantas shares dip after fresh market update puts FY26 in focus
• Why Westpac shares are holding near record highs after a $75 million hit
• Qantas Airways flags higher fuel costs and capacity changes in FY26 update
• Cleanaway Waste Management trims FY26 outlook on fuel challenges

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.

There appears to be cautious optimism surrounding the conflict in the Middle East.

This is pushing global benchmarks into the green recently. 

The S&P 500 Index (SP: .INX) recovered more than 1% overnight. Today, the S&P/ASX 200 Index (ASX: XJO) has opened with strong momentum.

Since the end of March, both indexes have rallied, with Australia’s benchmark up more than 6% and the S&P 500 rising more than 8%. 

While it’s impossible to predict what will happen in the Middle East, one possibility is we have already hit the bottom of the current cycle. 

If this is the case, it may be time to buy low on ASX ETFs that are yet to fully bounce back from yearly lows. 

Here are three ASX ETFs to consider.

iShares International Equity ETFs – iShares Global Healthcare ETF (ASX: IXJ)

Healthcare stocks have been some of the hardest hit in 2026. 

Unsurprisingly, this ASX ETF has been heavily sold off. 

It is down more than 12% since November last year, but has slowly started to bounce back since late March. 

The fund aims to provide investors with the performance of the S&P Global 1200 Healthcare (Sector) Capped Index, before fees and expenses. 

The index is designed to measure the performance of healthcare providers, biotechnology companies and manufacturers of medical supplies, advanced medical devices and pharmaceuticals.

This fund has been around since 2001, and in the last 10 years has brought annualised returns of nearly 10% per year. 

The recent drop off could be a rare opportunity to buy low on this ASX ETF. 

Vanguard Australian Property Securities Index ETF (ASX: VAP)

This ASX ETF seeks to track the return of the S&P/ASX 300 A-REIT Index. 

This index includes real estate companies in the retail, office, industrial and diversified sectors. 

Since inception in 2010, it has brought annualised returns of nearly 10% per year. 

However, it is currently down nearly 18% since late last year. 

This could be a rare opportunity to access exposure to the Australian real estate industry at a relative value. 

Vanguard Ethically Conscious International Shares Index Etf Fun (ASX: VESG)

This ASX ETF was first listed in 2018, since then, it has brought an average annualised return of more than 12%. 

At the time of writing, it is down almost 7% since yearly highs back in January. 

It includes more than 1,400 holdings, and is an ESG fund. 

This means it excludes companies that have a specified level of business involvement in fossil fuels, nuclear power, alcohol, tobacco, cannabis, gambling, adult entertainment or weapons.

The post ASX ETFs that might never be this cheap again 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.

If you are looking for gold sector exposure for your portfolio, then read on.

That’s because the team at Bell Potter has just named one ASX 200 gold stock to buy now.

Which ASX 200 gold stock?

The gold miner that the broker is bullish on is Evolution Mining Ltd (ASX: EVN).

Bell Potter has been looking ahead to the company’s quarterly update and is expecting a decent performance, albeit with some weather and operational disruptions. It said:

With this update we have made allowances for various weather and operational disruptions that have eventuated during the March quarter, causing us to shift some production from the March quarter to the June quarter and overall result in a modest reduction to our FY26 production forecasts.

Lower gold production is partially offset by higher copper production. All-In-Sustaining-Costs (AISC) are marginally higher overall. Our near-term commodity price forecasts are up (2%-11% for gold, 1% for copper) and partially offset by a higher exchange rate. The net impact is a 14% reduction to our FY26 earnings forecast and a 5% reduction to our full year dividend distribution forecast.

The good news is the broker believes the ASX 200 gold stock is well placed to deal with any energy security issues caused by war in the Middle East. It adds:

We view EVN as relatively well placed to deal with potential energy security issues. It benefits from grid electrical power to all the processing plants in its asset portfolio, removing exposure to diesel power generation. EVN’s mining production is dominated (~60%) by underground mining which is less diesel intensive than open-pit mining. Its open-pit operations (Cowal and Mungari) both hold substantial ore stockpiles, including ~5yrs mill feed at Cowal and 12-18 months mill feed at Mungari.

EVN is also relatively less exposed to flight restrictions, with all its operations (other than Ernest Henry) having largely residential workforces rather than Fly-In-Fly-Out (FIFO). While risks remain, we believe this provides EVN with greater optionality in contingency planning compared with most peers. We expect these options and the outlook on input costs to be a key focus of the quarterly.

Major upside potential

According to the note, the broker has retained its buy rating on Evolution Mining’s shares with a slightly trimmed price target of $16.60 (from $16.70).

Based on its current share price of $12.88, this implies potential upside of almost 29% for investors over the next 12 months.

It also expects an attractive 4% dividend yield over the forecast period, lifting the total return further.

Commenting on its buy recommendation, Bell Potter said:

EVN offers effectively unhedged gold and copper exposure via a portfolio of high quality, long-life assets in Tier 1 jurisdictions and overseen by a high-quality management team. EVN has stated its intention to pass growing free cash flows on to shareholders. Our NPV-based Target Price is lowered 1% to $16.60/sh and we retain our Buy recommendation.

The post Is this one of the best ASX 200 gold stocks to buy now? appeared first on The Motley Fool Australia.

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• March was the worst month for the gold price since June 2013. Now what?
• 5 things to watch on the ASX 200 on Tuesday
• Three ASX 200 stock picks to consider now, to drive gains as markets and the gold price recover

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.

The S&P/ASX Small Ordinaries Index (ASX: XSO) is up a solid 1.4% today, but that’s nothing compared to the gains rolling in for investors in this junior ASX mining stock.

The surging ASX share in question is Blackstone Minerals Ltd (ASX: BSX).

Blackstone Minerals shares closed yesterday trading for 3.5 cents. In late morning trade on Tuesday, shares are changing hands for 6.3 cents apiece, up a jaw-dropping 80%.

Here’s what’s got investors fired up.

ASX mining stock rockets on Philippines green light

In late October last year, the Municipal Mayor of Mankayan issued a Cease and Desist Order, halting exploration activities at Blackstone’s Mankayan Copper-Gold Project, located in the Philippines.

That decision followed concerns from some local residents and government officials about the potential environmental impacts of the copper-gold mine.

As you’d expect, the ASX mining stock came under heavy selling pressure in late October following this news.

Today, Blackstone Minerals shares are shaking off those headwinds and rocketing higher after the company reported that the Cease and Desist Order has been lifted. Meaning exploration activities can now resume at the Mankayan project.

The ASX mining stock said that its affiliate, Crescent Mining & Development Corporation, has been working with local community groups, including indigenous peoples and regional and national government bodies, to achieve this positive outcome.

Blackstone Minerals said it expects to commence drilling at the Mankayan project in the “near future”. The miner plans to drill up to 10 holes, averaging between 800 metres and 1,000 metres each.

Mankayan is reported to be the fourth largest undeveloped copper project in the Philippines. The project hosts a Mineral Resource of 2.8 million tonnes of copper, 9.7 million ounces of gold, and 20.4 million ounces of silver.

What did management say?

Commenting on the regulatory green light sending the ASX mining stock surging today, Blackstone Minerals executive chairman Geoff Gilmour said:

On behalf of Blackstone and CMDC, I would like to thank all our staff, community members and Regional and National Government departments for their constructive engagement and actions in achieving the lifting of the Order. With this behind us, there is a clear pathway forward to advance the Mankayan Project for the benefit of all stakeholders.

A project of Mankayan’s size and international importance cannot be underestimated and I look forward to updating shareholders and stakeholders as the Pre-Feasibility Study work and associated drilling activities progresses.

Judging by today’s price action, investors are expecting some materially positive updates from the resumption of those drilling activities.

The post Guess which ASX mining stock is rocketing 80% today on huge Philippines news appeared first on The Motley Fool Australia.

More reading

• Is this one of the best ASX 200 gold stocks to buy now?
• Why Clarity Pharmaceuticals shares just fell 5% on today’s announcement
• This ASX retail stock is sliding after a surprise leadership announcement
• Is it time to buy low on these ASX travel stocks?
• Up 188% in a year, why is this ASX All Ords gold stock surging again on Tuesday?

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.

Shares in Clarity Pharmaceuticals (ASX: CU6) have dropped around 5% today after the company announced a major manufacturing agreement in the United States.

At face value, the news looks positive. Clarity has secured large-scale production capacity for its lead prostate cancer imaging product, and this positions it for a future commercial launch.

So why did the stock fall?

High expectations

It’s fair to say that investor expectations for Clarity are sky high, but progress isn’t always linear.

Today’s announcement from Clarity was actually, on the face of it, quite positive but it did lack concrete dollar figures to provide the required level of ‘clarity’ (sorry I had to!) on the pathway to commercialisation.

The announcement notes that Clarity will gain access to significant manufacturing capability across the US, including the ability to produce tens of thousands of doses today and potentially hundreds of thousands in the future.

This matters because radiopharmaceuticals are not easy to deliver. These products have short shelf lives and require specialised infrastructure. Companies that can manufacture and distribute reliably have a real advantage.

In simple terms, Clarity is building the foundations to compete at scale.

Despite the strategic progress, investors are forward-looking and thinking of what happens next.

At the moment, Clarity is still a clinical-stage company; its lead product is not yet approved, and it must still complete late-stage trials to secure regulatory approval before generating revenue.

At the same time, expanding manufacturing brings forward costs. Investors often worry about how much capital will be needed and how long it will take to turn that investment into profits.

Another possible factor to explain today’s share price movement is the starting point.

Clarity’s share price had already performed strongly over the past year, and so when expectations are elevated, even positive developments can trigger selling if they do not materially accelerate the timeline.

In other words, the market was hoping for a step change. Instead, it got a steady step forward.

Foolish bottom line

Zooming out, this announcement is another step forward in Clarity’s long-term trajectory.

The company is not just trying to develop a better product; it is trying to ensure it can deliver that product at scale across a large market. If its clinical trials are successful, this manufacturing footprint could become a key competitive strength.

For now, however, investors are balancing that long-term potential against near-term uncertainty, which is understandable.

Clarity shares are now down around 20% year to date, and are up roughly 69% over the past 12 months.

The post Why Clarity Pharmaceuticals shares just fell 5% on today’s announcement appeared first on The Motley Fool Australia.

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• Clarity Pharmaceuticals shares are up 12% today. Here’s what’s driving the move

Motley Fool contributor Kevin Gandiya has no positions 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.

Universal Store Holdings Ltd (ASX: UNI) shares are extending their recent pullback on Tuesday after the market was hit with an unexpected management update.

The stock is down 2.29% to $7.24 in morning trade, bringing its decline to almost 20% over the past month. This also leaves it well below the record high of $9.88 reached earlier this year.

Today’s weakness comes only weeks after Universal reported a strong half-year result that included healthy sales growth and a higher dividend.

The focus now appears to be moving away from recent momentum and toward how the leadership handover may influence the group’s next stage of growth.

A founder-era chapter is coming to an end

Before market open, Universal announced that its Group Managing Director and Chief Executive Officer, Alice Barbery, will retire on 31 October 2026. She will step down after 17 years with the company.

Her replacement will be George Do, an internal executive who takes over from 1 November.

The succession plan appears deliberately measured. George joined the business in 2005, began on the shop floor, moved into the buying and product side, and most recently led the Universal Store and Perfect Stranger banners as CEO.

His long history with the business should give investors more confidence that the merchandising approach, brand direction, and retail strategy are unlikely to change materially.

Alice is also not leaving entirely. She is expected to join the board as a Non-Executive Director in February 2027 and continue supporting George during the handover period through consulting and advisory work.

Why investors aren’t buying the handover yet

Discretionary retail stocks have become harder to please in recent weeks. This is especially after a strong run through 2025 and into early 2026 pushed expectations higher.

With the shares already pulling back, investors may now want proof that momentum across the group’s brands can keep building.

The CEO change gives investors one more thing to keep an eye on, even though the replacement is coming from inside the business.

The key question now is whether the sales and earnings momentum across Universal Store, Perfect Stranger, Thrills, and CTC can carry through the second half.

Foolish Takeaway

To me, this looks more like investors trimming expectations after a strong run than a negative read-through on the CEO change.

The handover looks orderly, and the incoming CEO already knows the business well. Recent momentum across the brands also suggests the company still has a solid platform to keep growing.

The post This ASX retail stock is sliding after a surprise leadership announcement appeared first on The Motley Fool Australia.

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

One section of the ASX that has struggled significantly in 2026 is travel stocks. 

While it doesn’t operate as one of the core sectors of the ASX, “travel stocks” refer to companies that operate in the leisure, travel, or tourism sectors.

Fundamentally, travel companies sell goods and services that help people get from one place to another – be it for business or pleasure.

Why are travel stocks struggling in 2026?

Travel is largely a discretionary activity. 

That means it’s not an essential need for the everyday consumer. 

A clear comparison can be made between consumer staples and discretionary companies.

Staples are goods and services we can’t live without, like groceries, healthcare, or utilities. 

These companies generally have steady, non-cyclical earnings, regardless of economic factors. 

Travel stocks, on the other hand, are highly sensitive to a mix of economic factors that influence people’s ability and willingness to travel. 

These factors include: 

• Economic growth (GDP) – Strong growth increases travel demand 
• Disposable income & consumer confidence – Higher income and confidence lead to more spending on travel
• Interest rates – Higher rates reduce spending power and travel budgets
• Fuel prices – Rising fuel costs increase expenses, especially for airlines
• Exchange rates – Currency strength affects affordability of international travel
• Inflation – Higher inflation raises costs and reduces real spending power
• Employment levels – More jobs can mean more people able to afford travel
• Global stability & events – Crises or disruptions can quickly impact travel demand. 

Glancing over this list, you might see why travel stocks have struggled this year, with plenty of these headwinds influencing people’s ability to travel. 

However, many travel stocks have now been heavily sold off. 

This means if headwinds subside in the back half of 2026, there could be value. 

Let’s look at three options to consider buying low. 

Web Travel Group Ltd (ASX: WEB)

Web Travel Group is an online travel agency that enables customers to search and book domestic and international travel flight deals, travel insurance, car hire, and hotel accommodation worldwide.

Its share price has fallen more than 44% year to date. 

However, 8 analyst forecasts via TradingView place an average price target of $5.86 on this travel stock. 

That indicates an upside of 121% from today’s price. 

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre operates a vast network of travel agencies under various brands worldwide, including Student Universe, Travel Money, Corporate Traveller, and Topdeck.

Its share price has tumbled nearly 25% year to date. 

A recent note out of Citi included a $16.75 price target on Flight Centre shares. 

This indicates a potential upside of 48% from today’s opening share price of $11.30. 

Helloworld Travel Ltd (ASX: HLO)

Helloworld is an Australian-based travel distribution company. It comprises a wide array of travel brands across three key business pillars: retail, wholesale, and inbound.

Its share price is down more than 17% year to date. 

However, Shaw and Partners placed a 12-month share price target of $2.80 late last month. 

This indicates nearly 80% upside from current levels. 

The post Is it time to buy low on these ASX travel stocks? appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. 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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) is up 0.9% today, with this ASX All Ords gold stock charging ahead of those gains.

The fast-rising miner in question is New Murchison Gold Ltd (ASX: NMG).

New Murchison Gold shares closed yesterday trading for 4.6 cents. In early morning trade on Tuesday, shares are changing hands for 4.9 cents apiece, up 6.5%. 

This sees shares in the ASX All Ords gold stock up an impressive 188.2% since this time last year, well ahead of the 15.5% 12-month gains posted by the All Ords.

New Murchison is catching some tailwinds today from an uptick in the gold price overnight amid news that the US and Iran are mulling a second round of negotiations. Gold is currently trading for US$4,758 per ounce.

Here’s what else is piquing investor interest today.

ASX All Ords gold stock jumps on high-grade intercepts

Investors are bidding up New Murchison shares following the release of a new batch of promising exploratory drilling results.

The ASX All Ords gold stock has been conducting a reverse circulation (RC) drilling campaign at the Crown Prince East Pit prospect. That’s a satellite deposit at New Murchison’s flagship Crown Prince Gold Mine, located in Western Australia.

This morning, management reported on new high-grade gold intercepts, which they said have delineated additional mineralisation within the designed pit outline of the Crown Prince East Pit.

For the geologically inclined, management noted:

CP East is centred on a mineralised dilational zone in the local mafic unit (foliated basalt and dolerite). This zone hosts a set of sub parallel southerly dipping lodes which host gold mineralisation in quartz carbonate veins.

New Murchison’s latest exploration program consisted of 49 RC holes totalling 5,365 metres, as well as two diamond holes, which were drilled to ascertain structural data.

Among the top results, the ASX All Ords gold stock reported 18 metres at 10.3 grams of gold per tonne from 54 metres, including 6 metres at 29.3 grams of gold per tonne from 65 metres from one hole.

A second hole returned 12 metres at 10.3g/t Au from 34 metres, including 1 metre at 42.2g/t Au from 36 metres.

“These encouraging results open the opportunity of proving up additional reserves within the close proximity of the current Crown Prince Gold Operations,” management noted.

What’s been happening with New Murchison Gold?

New Murchison Gold released its December quarter update on 21 January.

In its first full-quarter of production, the ASX All Ords gold stock sold 184,746 dry tonnes of crushed ore, representing 22,766 ounces of gold, to the Westgold Resources Ltd (ASX: WGX) Bluebird gold processing facility.

As at 31 December, New Murchison held $92 million in cash.

The post Up 188% in a year, why is this ASX All Ords gold stock surging again on Tuesday? appeared first on The Motley Fool Australia.

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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.

A2 Milk Company Ltd (ASX: A2M) shares were under significant pressure yesterday.

The infant formula company’s shares ended the session 13% lower at $8.04 following the release of a trading update.

Is this a buying opportunity for investors? Let’s see what Bell Potter is saying about it.

What is the broker saying?

Bell Potter was disappointed with the downgrade and has concerns that the issues could remain in FY 2027. It said:

The downgrade to revenue expectations has been driven by lower availability of product, driven by increased testing (following competitor ARA contamination recalls) delaying product release times (SM1 cited an 8-10wk delay at its recent 1H26 result) and resolved supply chain issues at SM1’s Dunsandel facility.

The margin downgrade is less clear, with higher freight and testing costs the major drivers. Essentially, the upper end of revised revenue guidance is unchanged from pervious guidance, but EBITDA margins expectations are materially downgraded and we suspect these higher supply chain costs are likely to persist into 1Q27e

The broker also highlights that the lack of stock in China could impact customer acquisition and customer retention in the key market. It adds:

Product availability in China is an issue for Apr-May’26, with likely out-of-stocks, which has the scope limit new customer acquisition and retain existing customers.

Should you buy A2 Milk shares?

In response to the update, the broker has retained its hold rating with a reduced price target of $8.35 (from $9.55).

Based on its current share price of $7.99, this implies modest potential upside of 4.5% for investors over the next 12 months.

However, it also expects a dividend yield of approximately 3% over the period, which boosts the total potential return to around 7.5%.

Commenting on changes to its estimates and the retention of its hold recommendation, Bell Potter said:

NPAT changes are -13% in FY26e, -9% in FY27e and unchanged in FY28e. Our forecasts assume that elevated supply chain costs remain through 1Q27e (elevated freight and testing costs imbedded in COGS). Our target price falls to A$8.35/sh (prev. A$9.55/sh) reflecting earnings changes and movements in the AUDNZD cross rate.

Hold, TP A$8.35/sh. While some of the issues are likely to be temporary in nature (such as elevated air freight) they may well persist into 1Q27e as in-market inventory levels are restored. The deterioration in FY26e margin expectations, when supply chain issues were flagged by SM1 in Feb’26 and are now below Aug’25 guidance levels on a higher revenue base is somewhat concerning, given returning ingredient COG inflation.

The post What is Bell Potter saying about A2 Milk shares after the selloff? appeared first on The Motley Fool Australia.

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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 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.

Qantas Airways Ltd (ASX: QAN) shares are sliding on Tuesday after management stepped back in front of the market with a fresh trading update.

The airline had already been trying to stabilise after a rough few months, with the stock still down about 14% in 2026 following today’s decline.

In morning trade, the Qantas share price is down a modest 0.33% to $8.98.

That puts the stock closer to the early April lows, though it still remains well below the February peak above $11.

The move comes after investors were given a clearer view of how the airline expects current global disruptions to flow through the second half.

Higher fuel costs are being offset elsewhere

The key issue in today’s release was the jump in jet fuel costs.

Qantas said fuel prices have more than doubled since its half-year result in February, with the combined fuel and refining margin impact expected to add roughly $200 million to second-half FY26 costs.

Even so, the market seems comfortable with the way management has framed the offset.

The airline noted that about 90% of second-half fuel exposure is already hedged, while fare increases, route changes, and capacity adjustments are already being used to recover part of the pressure.

Demand trends also appear to still be working in its favour.

International travel into Europe remains firm, which has allowed aircraft to be shifted toward stronger-yielding routes, including Paris and Rome.

That helps explain why the group was comfortable leaving its international revenue guidance unchanged despite the cost pressure.

Capital discipline may also be helping sentiment

Another part of the update that likely supported the share price was the balance sheet.

Management said FY26 capital expenditure is now expected to come in at or below $4.1 billion, which is the bottom end of previous guidance. Net debt is also still expected to remain within its target range by year end.

The previously announced 19.8 cents per share fully-franked interim dividend is still due to be paid this week. However, the planned $150 million on-market share buyback has not yet started.

Foolish Takeaway

Today’s small loss reflects growing comfort that the profit impact is being contained rather than concern over the latest update.

Fuel is still the main short-term issue, but hedging, ticket price increases, solid travel demand, and tighter spending should help support second-half earnings.

With the shares still below their February highs, the latest update may improve investor confidence if conditions stay stable.

The post Qantas shares dip after fresh market update puts FY26 in focus appeared first on The Motley Fool Australia.

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