Tag: Stock pick

Northern Star Resources Ltd (ASX: NST) shares are having another good day on Friday.

At the time of writing, the gold miner’s shares are up 1.13% to $24.61.

It continues a strong run over the past month, with Northern Star shares now up around 21% since the end of July.

That bounce has helped the stock claw back some of its earlier losses. The shares are now up around 30% over the past 12 months, although they are still down roughly 8% in 2026 and remain well below their 52-week high of $31.96.

So, what’s been giving Northern Star shares a lift lately?

Gold prices are helping

One thing working in Northern Star’s favour right now is the gold price.

Gold is trading around US$4,583 an ounce and has climbed almost 13% over the past month, which is giving gold miners a nice tailwind.

Northern Star’s FY26 result also showed just how much that stronger gold price can help.

Revenue rose 19% to $7.62 billion, even though gold sold fell 6% to 1.54 million ounces. Helping offset the lower sales volume was the average realised gold price, which jumped 26% to $4,925 an ounce.

Underlying EBITDA increased 22% to $4.27 billion, while statutory net profit rose 24% to $1.66 billion.

Shareholders also got a fully franked final dividend of 30 cents per share.

Investors clearly liked what they saw, with the stock jumping 6.2% on 20 August when the result was released.

What happens next at KCGM?

A lot now comes down to how the KCGM expansion plays out.

Northern Star is now commissioning the larger processing plant, with the project expected to play a bigger role in production and cash flow over the coming years.

Management is guiding to FY27 gold production of 1.5 million to 1.65 million ounces, with all-in sustaining costs (AISC) of $3,050 to $3,450 an ounce.

Spending is still going to be high, though. Capital expenditure is expected to come in between $2.55 billion and $2.94 billion as work continues across KCGM and the Hemi project.

Keep in mind that this investment weighed on FY26 underlying free cash flow, which fell 64% to $190 million.

Managing director Stuart Tonkin called the company an “important inflection point”, with the KCGM expansion expected to help lift free cash flow as the ramp-up continues.

What are brokers saying?

Despite the recent rally, brokers aren’t all convinced there is much upside left.

According to TipRanks, the average 12-month price target is $23.08, which sits below where Northern Star shares are trading today.

Of the 11 analyst ratings, 2 are ‘buys’, 8 are ‘holds’ and 1 is a ‘sell’.

Jefferies is more positive, though. The broker kept its ‘buy’ rating after the FY26 result and lifted its price target to $27.

With the shares now at $24.61, Jefferies still sees the stock heading a little higher from here.

The post Northern Star shares are closing in on $25. Can the rally keep going? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• 2 ASX 200 shares I’d buy and 2 I’d avoid amid a surging Aussie dollar
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• Brokers name the ASX 200 winners and losers from the first half of reporting season

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.

S&P/ASX 200 Index (ASX: XJO) shares are 0.4% higher at 9,070.7 points on the second last day of earnings season.

Brokers have been busily reviewing earnings results and updating their ratings and 12-month price targets accordingly.

Here is a sample of ASX shares that have scored upgraded ratings, and why.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is $2.68, up 2.2% today and down 13% over 12 months.

Sigma Healthcare released its FY26 results this week.

Morgans upgraded the ASX 200 healthcare share from accumulate to buy today.

The broker shaved its 12-month price target from $3.30 to $3.19.

This implies a potential 12% upside ahead.

Morgans said:

SIG has posted its FY26 result which was in line with our and consensus forecasts. Highlights included EBIT growth of >20%, Australia CW LFL sales were 13.4% (1H 15.0%; 2H: 11.8%), International CW LFL sales of 12.2%.

We note the slight moderation in 2H in Australia was driven by a later start to the cold and flu season and cycling a very strong pcp.

SIG is targeting double-digit revenue and earnings growth for FY27.

The market has marked the shares down 7% post the FY26 results and possible sell down by some of the founders (up to 4.7% of issued capital).

We believe the share price fall is overdone and provides us with an opportunity to move our recommendation to BUY (from ACCUMULATE).

Adairs Ltd (ASX: ADH)

The Adairs share price is $1.41, down 2.1% today and down 49% over 12 months.

Adairs released its FY26 report this week.

Morgans upgraded the ASX consumer discretionary share to a buy rating.

The broker has a 12-month price target of $1.80, suggesting 27% upside from here.

Morgans said:

ADH reported FY26 underlying EBIT of $55.0m which was down 0.4% on the pcp and within guidance range of $53.5-55.5m.

Adairs and Mocka delivered strong EBIT growth (+14.9%/ +32.1%).

Focus on Furniture remains a drag with EBIT down 67.6% to $3.8m (~$2.0m loss in 2H) with management now guiding a two-year turnaround.

Given the underperformance, ADH recognised a non-cash impairment charge of $63.5m ($56.7m post tax).

We see the core Adairs banner set to deliver strong growth in FY27 driven by GM improvement and cost control, along with solid growth in Mocka offsetting weakness in Focus.

Given the share price weakness, we have upgraded to a BUY recommendation (from ACCUMULATE).

Polynovo Ltd (ASX: PNV)

The Polynovo share price is $1.04, up 1% today and down 24% over 12 months.

Polynovo released its FY26 earnings this week.

Bell Potter upgraded Polynovo shares to a buy rating today.

The broker increased its 12-month price target from $1 to $1.22.

This suggest a potential 18% upside ahead.

Bell Potter said:

The key concerns underpinning our July downgrade have eased sufficiently to restore confidence in the earnings outlook.

US trading improved into year-end and July, gross margin pressures appear largely temporary, and better-than-expected cost control
provides greater operating leverage as revenue scales.

We also see incremental upside from SynPath, with management now outlining a clearer strategy for entry into the US outpatient market, which is not yet reflected in our forecasts.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is $21.60, up 0.4% today and down 38% over 12 months.

Netwealth released its FY26 earnings this week.

Morgans raised the ASX 200 financial share to a buy call with a $27.50 target.

This implies potential gains of 28% ahead for Netwealth shares.

Morgans said:

NWL reported FY26 Revenue +21%; EBITDA +18%; and NPAT +16% on pcp, which was largely in line with MorgF / Consensus expectations.

Whilst flows momentum 1Q27 to date has seen a slower start, NWL reaffirmed its FY27 Flows guidance of $18-20bn, with the cadence of flows from MS and other sources expected to step up over the course of the year.

The post 4 ASX shares scoring upgrades in the final week of earnings season appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Netwealth, Sigma Healthcare, and Wesfarmers shares
• 3 ASX 200 shares to buy post-results: broker
• Why now is the time to buy low on these ASX healthcare shares with up to 84% upside
• 5 things to watch on the ASX 200 on Friday
• 3 excellent ASX shares I’d buy for long-term wealth creation

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

Electro Optic Systems Holdings Ltd (ASX: EOS) shares are taking a breather on Friday following a huge run over the past month.

At the time of writing, the EOS share price is down 5.54% to $10.40 apiece.

The stock opened at $10.82 and traded as high as $11.10 earlier in the session.

But the pullback follows a very strong run over the past few weeks.

Even after today’s fall, EOS shares are still up around 40% over the past month. And if you zoom out a little further, the shares have almost doubled since February this year.

So, are investors simply taking some money off the table, or is there more going on?

What is weighing on EOS shares today?

There doesn’t appear to be any fresh company news behind the drop, so this looks more like some profit-taking after a stellar few weeks.

EOS shares jumped 23% on Tuesday after the company released its half-year result, before adding another 6.2% on Wednesday. They then slipped 2.1% on Thursday and are giving back more ground today.

The rebound has been even more impressive since the end of July. EOS shares closed at just $6.10 on 30 July, meaning the stock has climbed more than 70% from that level in less than a month.

Given how quickly the shares have climbed, it’s easy to see why some investors might be cashing in some gains.

Why did the shares jump this week?

The half-year result gave investors plenty to get excited about.

Revenue from continuing operations surged 283% to $168.8 million, helped by a big increase in activity across its defence systems business. Underlying EBITDA also swung to a $21.6 million profit from a $14.9 million loss a year earlier.

There was still a $33.7 million loss from continuing operations, although that included a $34 million non-cash fair value loss tied to the MARSS acquisition.

The order book was probably one of the biggest numbers in the result. Contracted work reached around $846 million at 30 June, up from just $170 million a year earlier.

Management is now guiding to full-year 2026 revenue of $360 million to $400 million.

If EOS can hit that range, it would deliver record annual revenue and show investors just how quickly the business is growing.

Foolish takeaway

After climbing so fast over the past month, EOS shares could stay volatile in the near term.

I’d keep an eye on the $10 level first, which has become an important area for the shares this year. Above that, Thursday’s intraday high of $11.98 is another level to watch, before the stock runs into its 52-week high of $12.58.

Bell Potter also remains positive after the result, keeping its ‘buy’ rating and $12.60 price target.

That target sits right around the previous high, so the next test is whether EOS can keep winning contracts.

The post EOS shares are sinking 5% today. Is the huge rally running out of steam? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• What is Bell Potter saying about EOS shares after its results?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: Bendigo and Adelaide Bank, PLS, EOS 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 Electro Optic Systems. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Morgans has been busy running the ruler over a number of results this week.

Three popular ASX shares that have come under the spotlight are listed below. Does the broker rate them as buys? Let’s find out.

Netwealth Group Ltd (ASX: NWL)

This investment platform provider delivered a result that was largely in line with expectations.

And while fund inflows have started slowly in FY 2027, Morgans remains positive and has upgraded Netwealth shares to a buy rating with a $27.50 price target. It said:

NWL reported FY26 Revenue +21%; EBITDA +18%; and NPAT +16% on pcp, which was largely in line with MorgF / Consensus expectations. Whilst flows momentum 1Q27 to date has seen a slower start, NWL reaffirmed its FY27 Flows guidance of $18-20bn, with the cadence of flows from MS and other sources expected to step up over the course of the year. We make minor changes to our NPAT forecasts of +1% in FY27-29F, overall, this sees our price target unchanged at A$27.50/sh. We move to a BUY rating.

Sigma Healthcare Ltd (ASX: SIG)

Another ASX share that has been upgraded is Chemist Warehouse owner Sigma Healthcare.

Morgans was pleased with the company’s FY 2026 results, which were in line with expectations. In response, the broker has upgraded Sigma Healthcare shares to a buy rating with a $3.19 price target. It explains:

SIG has posted its FY26 result which was in line with our and consensus forecasts. Highlights included EBIT growth of >20%, Australia CW LFL sales were 13.4% (1H 15.0%; 2H: 11.8%), International CW LFL sales of 12.2%. We note the slight moderation in 2H in Australia was driven by a later start to the cold and flu season and cycling a very strong pcp. SIG is targeting double-digit revenue and earnings growth for FY27. 

We have reduced our forecast by ~3.5%, which sees our TP reduce to A$3.19 (was A$3.30). The market has marked the shares down 7% post the FY26 results and possible sell down by some of the founders (up to 4.7% of issued capital). We believe the share price fall is overdone and provides us with an opportunity to move our recommendation to BUY (from ACCUMULATE).

Wesfarmers Ltd (ASX: WES)

Bunnings and Kmart owner Wesfarmers delivered a result that was largely in line with expectations. 

However, it has started FY 2027 slightly softer than expected. Nevertheless, Morgans has retained its accumulate rating with an improved price target of $85.00. It said:

WES’s FY26 result was broadly in line with expectations, although trading in early FY27 was slightly softer, with management also flagging higher capex in FY27. Earnings from Bunnings, Kmart Group and Health were largely in line with expectations, while Officeworks was slightly above our forecasts. WesCEF was modestly weaker than anticipated. Management noted that while consumer demand remains resilient, cost-of-living pressures persist and customers continue to be value-conscious. 

We make minimal changes to FY27-29F group EBIT but decrease underlying NPAT by 1-2% due to higher net interest expense. Despite these changes, our target price rises to $85.00 (from $81.10) as we believe the increased investments WES is making in the near term will drive sustainable growth over the long term. This is particularly evident across its retail businesses (Bunnings, Kmart Group, Officeworks and Priceline), where investment should strengthen customer value propositions in a subdued consumer environment and position the divisions to capture stronger growth when economic conditions improve. ACCUMULATE rating maintained.

The post Buy, hold, sell: Netwealth, Sigma Healthcare, and Wesfarmers shares appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares scoring upgrades in the final week of earnings season
• 3 ASX 200 shares to buy post-results: broker
• Why now is the time to buy low on these ASX healthcare shares with up to 84% upside
• 5 things to watch on the ASX 200 on Friday
• Everything you need to know about the Wesfarmers dividend

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

I love receiving dividends from my ASX share portfolio. That’s why a significant portion of my portfolio is focused on ASX dividend shares.

I like to own businesses that pay passive income to my bank account, while also delivering long-term capital growth.

All three of the names I’ll highlight each have a weighting of more than 10% in my portfolio. Let’s run through the appeal of each of them.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

This business has been one of my favourites for a very long time and I imagine it will continue to be so for decades to come.

The investment conglomerate has built a diversified portfolio across a range of sectors including resources, energy, financial services, property, retirement living, swimming schools, electrification and so on.

Its investments are themselves growing, while the business can also expand its portfolio with retained earnings each year. It’s this combination that helps the company’s net asset value (NAV) and share price.

Soul Patts has increased its annual dividend per share every year since 1998, which is the best record for longevity on the ASX. Additionally, it has paid a dividend every year in its 120-year-plus history.

I think this business is one of the best options for a combination of long-term capital and passive income growth. The current grossed-up dividend yield is 3.5%, including franking credits.

MFF Capital Investments Ltd (ASX: MFF)

MFF is another leading business for passive income. The company’s regular annual dividend has increased every year for the past several years.

The listed investment company (LIC) invests in high-quality shares that are competitively advantaged (strong economic moats) with compelling growth outlooks.

With an excellent, diversified portfolio, MFF has achieved strong investment returns and this has funded very good dividends.

In FY26, the company grew its annual dividend per share by 23.5% to 21 cents. I expect the business will increase its FY27 annual dividend by 19% to 25 cents per share.

I think it’s a great option to get exposure to impressive global blue-chips as well as strong passive income.

I believe its FY27 grossed-up dividend yield will be 6.7%, including franking credits, at the time of writing.

L1 Long Short Fund Ltd (ASX: LSF)

The third ASX dividend share that’s a major position in my portfolio is this LIC, which uses a mixture of long-term investing and short-selling through ASX shares and international shares to generate strong returns.

The L1 team generally like to look at businesses with low price/earnings (P/E) ratios, solid earnings growth and a good outlook. That generally means avoiding (long-term) investing in tech shares and instead focusing on names in areas like resources, energy and unloved names in other sectors.

L1 Long Short Fund is paying a quarterly dividend to investors and this payout is increasing every quarter, which is a pleasing growth trajectory.

I expect the FY27 annual dividend will grow by at least 11% year-over-year, translating into a potential grossed-up dividend yield of 4.6%, including franking credits.

With the above three ASX dividend shares, I believe my dividend cash flow is on a very good course.

The post Why these 3 top ASX dividend shares are my biggest holdings appeared first on The Motley Fool Australia.

More reading

• How much do I need to retire on $120,000 a year at 55?
• I’d buy 164,557 shares of this ASX stock to aim for $500 a week of passive income
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• How ASX dividend growth shares can build lasting income

Motley Fool contributor Tristan Harrison has positions in L1 Long Short Fund, Mff Capital Investments, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Mff Capital Investments and Washington H. Soul Pattinson and Company Limited. 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 0.4% higher at 9,077.7 points on Friday.

As earnings season nears its end, Morgans has reviewed the following companies’ reports and given them a buy rating.

Here’s why.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $41.14, up 4% today and down 59% over 12 months.

WiseTech released its FY26 results this week.

Morgans reiterated its buy rating on the ASX 200 tech share.

The broker cut its 12-month price target from $67 to $62.50.

This implies a potential 52% upside ahead for WiseTech shares.

Morgans said:

WTC’s FY26 result was largely in line with Morgans forecasts (MorgansF), with FY26 revenue of US$1,396m and EBITDA of US$558m coming in towards the lower end of its initial FY26 guidance range.

While CargoWise revenue growth of +11% was softer than expected, WTC delivered annualised run-rate savings of ~US$115m in FY26, supporting further margin expansion into FY27.

FY27 guidance will see revenue growth 2H-weighted, reflecting the timing of growth initiatives, while Underlying EBITDA guidance of US$725-780m implies EBITDA margins tracking back towards 49-51%.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $12.07, down 1% today and down 5% over 12 months.

Flight Centre released its FY26 report this week.

Morgans reiterated its buy rating on the ASX 200 consumer discretionary share.

The broker lowered its 12-month price target from $14.80 to $14.25.

This implies potential capital gains of 18% ahead for Flight Centre shares.

Morgans said:

FLT’s FY26 result came in at the lower end of guidance which is disappointing given its 18 June trading update. Leisure was the key miss for us. Corporate had a strong year (+28% NPBT growth), while Leisure was weak (NPBT -22%) given the Middle East conflict.

Outlook comments disappointed with Corporate expected to have a weak 1H27, followed by growth in the 2H27. Pleasingly, Leisure is off to a strong start.

While investors will need to be patient for another six months, FLT’s fundamentals remain attractive (FY27F PE of 11.6x) …

When operating conditions ultimately improve, both its earnings and share price will be materially higher.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is $21.40, down 0.5% today and down 38% over 12 months.

Netwealth released its FY26 earnings this week.

Morgans increased the ASX 200 financial share to a buy rating with a $27.50 target.

This implies potential gains of 28% ahead for Netwealth shares.

Morgans said:

NWL reported FY26 Revenue +21%; EBITDA +18%; and NPAT +16% on pcp, which was largely in line with MorgF / Consensus expectations.

Whilst flows momentum 1Q27 to date has seen a slower start, NWL reaffirmed its FY27 Flows guidance of $18-20bn, with the cadence of flows from MS and other sources expected to step up over the course of the year.

The post 3 ASX 200 shares to buy post-results: broker appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares with strengthened buy ratings this week
• WiseTech shares are bouncing back. Is it time to buy?
• Why is everyone talking about Flight Centre, Air New Zealand and Virgin Australia shares on Friday?
• Buy, hold, sell: Domino’s, Flight Centre, and WiseTech shares
• 3 excellent ASX shares I’d buy for long-term wealth creation

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 Netwealth Group and WiseTech Global. The Motley Fool Australia has positions in and has recommended Netwealth Group and WiseTech Global. 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.

As reporting season rolls on, it gives the brokers plenty to work with on valuing companies.

I’ve selected three of UBS’ new research notes that look at ASX mining stocks it thinks will outperform over the next 12 months.

Let’s see who they like.

Mineral Resources Ltd (ASX: MIN)

Mineral Resources delivered its strongest ever financial result this week, posting record revenue of $6.5 billion and underlying net profit of $822 million, up 831%.

The iron ore and lithium miner also shocked the market with a much larger-than-expected dividend, paying 83 cents per share, up from nothing the previous year.

Managing director Chris Ellison said of the result:

The past 12 months stand among the most significant in MinRes’ history. Record operational and financial results reflect years of strategic investment, positioning the company to enter its third listed decade with a stronger foundation than at any point in our 20-year journey on the ASX. Onslow Iron achieved nameplate capacity of 35Mtpa in August 2025, just three years after we reached a Final Investment Decision. The speed of delivery is a demonstration of the inhouse capability we have developed across the business, with strong cash flow from the project now accelerating the deleveraging of the balance sheet.

UBS said the company beat expectations across all key metrics and had a healthy balance sheet.

They expect to see higher earnings in the current year as iron ore, lithium, and mining services all ramp up.

UBS has a $76 price target on Mineral Resources shares, compared with the current $64.09.

Capricorn Metals Ltd (ASX: CMM)

UBS said there were no real surprises in the Capricorn result, with EBITDA slightly below expectations, driven by higher corporate and exploration costs.

The gold company’s full-year sales revenue came in at $769.3 million, up 46%, while net profit was 59% higher at $327.2 million.

Capricorn also declared a 5-cent dividend, fully franked.

For FY27, the company is forecasting gold production of 137,000 to 147,000 ounces, up 18.3% on the FY26 guidance, at an all-in sustaining cost of $1900 to $2100 per ounce.

UBS has a price target of $20.25 on Capricorn shares, compared with the current price of $17.42.

Lynas Rare Earths Ltd (ASX: LYC)

Lynas’ net profit of $222.4 million came in below expectations, on record revenue of $977.9 million.

The company also received a record price across all of its rare earths products.

The company is ramping up production across various assets and investing heavily in its Towards 2030 growth strategy, for which the company raised $932 million in new equity during the year.

UBS has a $22.50 price target on Lynas shares, compared with the current $16.19.

The post 3 ASX mining stocks UBS rates as a buy appeared first on The Motley Fool Australia.

More reading

• 9 ASX 200 shares with strengthened buy ratings this week
• Here are the top 10 ASX 200 shares today
• Mineral Resources just delivered a surprise dividend. Here’s how much
• Mineral Resources shares jump 5% today: Buy, sell or hold?
• Why Wesfarmers, Mineral Resources and Qantas shares are turning heads on Thursday

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 recommended Lynas Rare Earths Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is back in positive territory on Friday.

At the time of writing, the benchmark index is up 0.26% to 9,061 points after closing 0.98% lower at 9,038 points on Thursday.

That leaves the market around 2.5% below its record high of 9,296 points reached earlier this month, although it is still holding above the 9,000 mark.

So, what’s helping the ASX 200 move higher today?

Tech stocks are leading the rebound

Technology shares are doing much of the heavy lifting today after a strong night on Wall Street.

Nvidia Corp (NASDAQ: NVDA) shares jumped 8.7% after investors welcomed the company’s latest quarterly results and outlook. The move added around US$442 billion to the chipmaker’s market value in a single session.

That helped push the Nasdaq Composite Index (NASDAQ: .IXIC) 1.6% higher, while the S&P 500 Index (SP: .INX) gained 0.7%, with technology easily the strongest-performing sector.

That strength has flowed through to the local market, with some of the ASX’s biggest tech shares among Friday’s strongest performers.

Xero Ltd (ASX: XRO) shares are up 8.28% to $88.50, and Pro Medicus Ltd (ASX: PME) shares have climbed 3.93% to $186.28.

The banks are also lending a hand. Commonwealth Bank of Australia (ASX: CBA) shares are up 0.87% to $156.31, while National Australia Bank Ltd (ASX: NAB) shares have risen 1.05% to $38.38.

The gains are fairly broad across the market as well, with 103 ASX 200 companies trading higher, 89 lower, and 8 unchanged.

There are still a few big stocks moving the other way though. Rio Tinto Ltd (ASX: RIO) shares are down 1.28% to $176.41, Woolworths Group Ltd (ASX: WOW) shares are 1.19% lower at $39.08, and CSL Ltd (ASX: CSL) shares have fallen 1.08% to $172.01.

Rate hike concerns haven’t disappeared

Today’s rise doesn’t mean investors have stopped worrying about interest rates.

The latest ABS figures showed annual inflation eased to 3.5% in July, although trimmed mean inflation remained higher at 3.6%.

Household spending also jumped, rising 1.1% in July and 7% over the year. That has kept the possibility of another RBA rate hike on the table for now.

Westpac chief economist Luci Ellis said the latest inflation numbers have increased the risk of another hike, but she doesn’t think the RBA has seen enough yet to make that call.

She sees November as a more likely time for a move than September, with the RBA still set to receive more data on jobs, spending, and inflation before deciding what comes next.

What should investors watch?

The ASX 200 has found some support after falling for 2 straight sessions, although it is still sitting below the 9,296-point record high reached on 6 August.

From here, investors will be watching to see whether today’s tech-led rebound can build into something broader and carry into next week.

Interest rates are still likely to have the biggest say in where the market heads next.

The post Why the ASX 200 is pushing higher as rate hike fears grow appeared first on The Motley Fool Australia.

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• Should I buy BHP shares before the end of August?
• 37 ASX shares going ex-dividend next week
• Here are the top 10 ASX 200 shares today
• Why is the ASX 200 falling to a 4-day low today?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Nvidia, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended CSL, Nvidia, and Pro Medicus. 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 0.3% higher at 9,061.6 points on the second last day of earnings season.

This week, brokers indicated continued confidence in several ASX 200 shares.

Let’s check them out.

Coles Group Ltd (ASX: COL)

The Coles share price is $23.40, down 1.4% today and down 3% over 12 months. 

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

Morgan Stanley renewed its buy rating on Coles shares this week.

The broker has a 12-month price target of $25.

This suggests a potential 6% upside ahead.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $64.35, down 1.6% today and up 74% over 12 months. 

Over the past month, this ASX 200 mining share has soared 21%.

Bell Potter renewed its buy rating on Mineral Resources shares today.

The broker has a $75 target, which implies a 15% upside ahead.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is $39.04, down 1.3% today and up 38% over 12 months.

This ASX 200 supermarket share has fallen 2% over the past month.

Morgans reiterated its buy rating on Woolworths shares with a price target of $43.50.

This implies potential capital gains of 11% ahead.

Centuria Capital Group (ASX: CNI)

The Centuria Capital share price is $1.18, down 1.3% today and down 52% over 12 months. 

Over the past month, this ASX real estate investment trust (REIT) has slumped 22%.

UBS maintained its buy rating on Centuria Capital shares today.

The broker lowered its target from $2.11 to $1.80, suggesting a 52% upside ahead.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is $11.77, down 2.6% today and up 62% over 12 months.

Over the past month, this ASX 200 uranium share has ripped 28% higher.

Jefferies reaffirmed its buy rating on Paladin Energy shares yesterday.

The broker raised its price target from $12.50 to $14.50.

This suggests a potential 22% upside ahead.

NextDCLtd (ASX: NXT)

The NextDC share price is $14, up 3.1% today and up 2% over 12 months.

This ASX 200 tech share has increased 6% over the past month.

UBS renewed its buy rating on NextDC shares today with a $22.55 target.

This implies potential capital growth of 61% over the next year.

Droneshield Ltd (ASX: DRO)

The Droneshield share price is $1.76, down 1.7% today and down 46% over 12 months.

Over the past month, this ASX 200 industrials share has fallen 2.5%.

Bell Potter renewed its buy rating on Droneshield shares this week.

The broker shaved its 12-month price target from $2.50 to $2.40.

This suggests a potential 35% upside ahead.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price is $41.89, up 6% today and down 58% over 12 months.

This ASX 200 tech share has risen 21% over the past month.

Morgans reiterated its buy rating on Wisetech shares this week.

The broker cut its target price from $67 to $62.50.

This implies a potential 49% upside ahead.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is $9.54, down 1.2% today and down 21% over 12 months. 

Over the past month, this ASX 200 airline share has fallen 8%.

Morgan Stanley retained its buy call on Qantas shares today.

The broker raised its target from $12.50 to $12.80.

This suggests a potential 33% upside ahead.

The post 9 ASX 200 shares with strengthened buy ratings this week appeared first on The Motley Fool Australia.

More reading

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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 DroneShield, Jefferies Financial Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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 0.3% higher at 9,062.7 points on the second last day of earnings season.

Brokers have been reviewing ASX 200 company reports and updating their ratings and 12-month price targets accordingly.

Here are three updates from Morgans.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is $38.95, down 1.5% today and up 37% over 12 months.

Woolworths released its FY26 earnings this week.

Morgans reiterated its accumulate rating on the ASX 200 consumer staples share.

The broker raised its 12-month price target from $37.30 to $43.50.

This implies potential capital gains of 11% ahead for Woolworths shares.

Morgans said:

WOW’s FY26 result was slightly better than expected. Australian Food earnings were in line with our forecast, while Australian B2B and W Living exceeded expectations. NZ Food was softer following a challenging 2H26.

Encouragingly, Australian Food sales momentum has continued into early FY27, supported by the popular Disney Ooshies collectibles campaign. Excluding this benefit, sales growth remained solid, indicating the underlying business continues to perform well.

Our target price increases to $43.50 (from $37.30), reflecting changes to earnings forecasts and a higher valuation multiple.

The multiple expansion reflects continued positive momentum in the core Australian Food segment, our increased confidence that this sales growth can be sustained, and improved execution.

Ramsay Health Care Ltd (ASX: RHC)

The Ramsay Health Care share price is $50.98, up 1.8% today and up 50% over 12 months.

Ramsay Health Care released its FY26 report this week.

Morgans renewed its hold rating on the ASX 200 healthcare share with a $49.39 target.

This suggests the stock is fully valued.

The broker said:

FY26 underlying NPAT increased 23% and was ahead of expectations, with EBIT growth and positive OCF (ex РSant̩). Australia remained the earnings driver, while UK Acute was the standout and Elysium showed a material 2H turnaround.

Pleasingly, Australia delivered EBIT growth of 11.2% and 30bp margin expansion despite a 4% headwind from new funding at Joondalup public, supported by activity, acuity, theatre utilisation, PHI indexation and cost control.

While we view result quality as encouraging (OCF & ROCE up), FY27 guidance is qualitative, with management only targeting EBIT growth and margin expansion (ex РSant̩), leaving the sustainability question open for debate.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $5.34, up 3.6% today and up 132% over 12 months. 

PLS Group released its FY26 results this week.

Morgans downgraded the ASX 200 lithium share from hold to trim with a $4.60 target.

This suggests a potential 13% downside ahead.

Morgans commented:

PLS delivered an in-line FY26 Underlying EBITDA result and surprised with a maiden 5cps fully franked final dividend (22% FCF payout).

We view PLS as fairly valued at current levels, with its premium to peers already reflecting the company’s best-in-class execution, balance sheet and growth optionality.

Depleted lithium inventories leave scope for short-term upside, though we see the medium-term outlook as more volatile given uncertainty around supply and demand drivers.

The post Buy, hold, sell: Ramsay Health Care, PLS Group, Woolworths shares appeared first on The Motley Fool Australia.

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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 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.