Tag: Stock pick

The outlook for the global economy is less certain than it was at the start of the year, so it’d make sense for retirees to want to go for ASX defensive shares such as real estate investment trusts (REITs). I’m going to talk about one ASX REIT that I’ve liked for a long time and have bought myself.

The business I’m highlighting is Rural Funds Group (ASX: RFF), a farm real estate investor that owns properties across Australia in different states and across various farming sectors.

It’s invested in areas like cattle, almonds, macadamias, vineyards and cropping. Rural Funds has the flexibility to invest in additional farming sectors, if it sees opportunities elsewhere.

I’ll run through some of the positives of the business.

Pleasing and reliable distribution

Rural Funds has a record of passive income reliability. It started paying a distribution in 2014 and increased its annual payout each year to 2022. Since then, it has been paying the same distribution per unit despite the headwinds of rising interest rates.

Many other ASX REITs reduced their distribution during the last few years, but not Rural Funds.

It has guided it’s going to pay the same annual distribution per unit of 11.73 cents in FY26, which translates into a distribution yield of 5.5%, better than what term deposits are currently offering.

With how things are playing out globally, I wouldn’t be surprised to see the ASX REIT maintain its distribution at 11.73 cents per unit in FY27.

Good rental income growth prospects

The business has very good prospects for long-term rental profit and distribution, in my view.

For starters, it has a weighted average lease expiry (WALE) of 13.2 years. This is one of the longest in the REIT sector, if not the longest. The metric shows it has a significant level of rental income locked in for the long-term.

More than half of the portfolio’s revenue is linked to CPI inflation, which means Rural Funds is a pleasing option for protection against inflation, in my view. A large minority of rental contracts have fixed annual increases (plus market reviews).

In other words, most of the portfolio is going to see rental income growth each year, which is a strong tailwind for improving the underlying value of the farm and fund long-term distribution growth.

The ASX REIT is trading at great value

Rural Funds tells investors every six months what its adjusted net asset value (NAV) is.

The NAV is essentially the underlying value of the business, including the farm values, the loans, cash balance and so on. It’s ‘adjusted’ to include the market value of the water entitlements.

At the end of December 2025, Rural Funds had an adjusted NAV of $3.10 (which was up 0.6% over the six-month FY26 half-year period).

At the time of writing, it’s trading at a discount of more than 30% to its underlying value, which looks very appealing to me.

The post Why this ASX REIT is a retiree’s dream appeared first on The Motley Fool Australia.

More reading

• 2 ASX REITs I’d buy today for passive income
• 3 ASX dividend shares to buy with $5,000
• How to retire early using ASX dividend shares
• 3 of the best ASX dividend shares to buy in March
• 3 excellent ASX dividend shares to buy this month

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. 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 positions in and has recommended Rural Funds 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 down 0.3% today, but that’s not holding back this ASX All Ords stock.

The outperforming stock in question is minerals and technology company Syrah Resources Ltd (ASX: SYR).

Syrah Resources shares closed on Friday at 17 cents. In early morning trade on Monday, shares are swapping hands for 18 apiece, up 5.9%.

Here’s what’s catching investor interest.

ASX All Ords stock lifts on Tesla extension

Syrah Resources shares are marching higher after the minerals and technology company released an update on an alleged default that could scuttle its offtake agreement with Tesla Inc (NASDAQ: TSLA).

The offtake agreement is for the supply of natural graphite active anode material (AAM) from Syrah’s 11.25 thousand tonne per annum (11.25ktpa) Vidalia AAM facility, located in the US state of Louisiana.

The ASX All Ords stock first inked the offtake agreement with Elon Musk’s EV company in December 2021.

But in July 2025, Tesla sent a notice alleging that Syrah had defaulted on its obligation to provide conforming AAM samples from Vidalia. At the time, Tesla said Syrah Resources had to cure the alleged default by 16 January this year, or the US car-making giant could terminate the offtake agreement on 9 February.

However, Tesla later extended that deadline to today, 16 March, to give the two companies more time to collaborate. Syrah Resources continues to insist that it is not in default under the offtake agreement.

And it looks as if the two companies may yet reach an understanding on the issue.

This morning, the ASX All Ords stock revealed that the parties have extended the cure date to 1 June, and said that they are “closely collaborating to cure the alleged default”.

Tesla can then still terminate the offtake agreement if final qualification of the Vidalia AAM is not achieved by the new deadline.

The extended agreement remains subject to the consent of the United States Department of Energy.

What’s been happening with Syrah Resources?

The ASX All Ords stock reported its second-quarter results (Q2 FY 2026) on 28 January.

Highlights included a 34% quarter-on-quarter increase in natural graphite production at its Balama project to 34,000 tonnes, with Syrah reporting strong recovery and quality.

The ASX All Ords stock sold and shipped 29,000 tonnes of natural graphite to third-party customers, up 21% from Q1, achieving a weighted average price of US$577 per tonne (CIF).

Commenting on the results on the day, Syrah Resources CEO Shaun Verner said:

Syrah’s operational highlights for the fourth quarter included stable operations at Balama with excellent recovery and completion of further large-volume breakbulk shipments to Indonesia in addition to further container shipments. We aim to continue Balama production and sales momentum in 2026.

We are demonstrating high quality AAM product performance, setting up our Vidalia AAM facility to meet the very high standards in materials processing necessary in the battery manufacturing industry.

The post Guess which ASX All Ords stock is jumping higher today on big Tesla news appeared first on The Motley Fool Australia.

More reading

• Why CAR Group, Immutep, Northern Star, and Syrah Resources shares are sinking today
• Syrah Resources shares tumble after major US tariff hit

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 positions in and has recommended Tesla. 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.

Today, many ASX shares are trading at a lower prices than they were at the start of the year.

Market sell-offs are not a regular occurrence, and can bring opportunity.

Legendary investor Warren Buffett once explained why these conditions can create appealing buying conditions:

If you expect to be a net saver during the next five years, should you hope for a higher or lower stock market during that period?

Many investors get this one wrong. Even though they are going to be net buyers of stocks for many years to come, they are elated when stock prices rise and depressed when they fall.

Only those who will be sellers of equities in the near future should be happy at seeing stocks rise. Prospective purchasers should much prefer sinking prices.

With that in mind, the below two ASX shares look very appealing.

Breville Group Ltd (ASX: BRG)

Breville is one of the world’s largest coffee machine businesses. It has a variety of brands including Breville, Sage, Lelit and Baratza. It also has a coffee bean business called Beanz.

The business continues to grow its revenue across its different geographic regions, despite tariffs impacting the company. It reported that in HY26, Americas revenue rose 11.6% to $549.5 million, Asia Pacific revenue increased 5.9% to $190.3 million and EMEA (Europe, the Middle East and Asia) revenue grew 13.7% to $233.8 million.

I think Breville is a top business to own for the long-term because of its expansion into new markets. It’s expanding in markets like Mexico, China, the Middle East and South Korea. These are large markets which could become important profit contributors as the countries adopt coffee and Breville grows its market share.

The business is expected by experts to see rising margins and profit in the coming years. Its operating profit (EBIT) margin could be 11.3% in FY26 and steadily climb to 13% by FY30. Meanwhile, the net profit could be $139 million in FY26 and $243 million in FY30.

The Breville share price is currently valued at 29x FY26’s estimated earnings, making the ASX share look appealing for its growth outlook.

Global X Fang+ ETF (ASX: FANG)

This exchange-traded fund (ETF) is one of the most effective ways to invest in the large US tech names of Alphabet, Nvidia, Meta Platforms, Amazon, Apple and Microsoft.

There are a total of 10 positions in this portfolio, which are regularly weighted to have a position sizing of 10% in the portfolio.

These businesses are some of the best in the world, in my view. They (and the companies they’re invested in (such as OpenAI)) are leaders in areas like AI-related activities, social media, online shopping, online video, internet search, driverless cars, smartphones and so on.

Since the end of October 2025, the FANG ETF unit price has dropped 20%, so this looks like an appealing time to invest in these great businesses at a lower value.

Regardless of what happens next, I think the US tech giants are well positioned with their software offerings and balance sheets to succeed in the years ahead.

The post 2 top ASX shares to buy and hold for the next decade appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares highly recommended to buy: Experts
• 2 of the best ASX growth shares to buy now
• Why Breville, Forrestania Resources, GQG Partners, and WiseTech shares are falling today
• 5 things to watch on the ASX 200 on Wednesday
• Have ASX technology shares finally hit rock bottom?

Motley Fool contributor Tristan Harrison has positions in Breville Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia and is short shares of Apple. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Orica Ltd (ASX: ORI) shares are on the move on Monday morning.

At the time of writing, the ASX 200 industrial stock is down over 2% to $19.23.

Why are Orica shares falling today?

The catalyst for the move appears to be news that Orica has reached a settlement in a long-running legal dispute in the United States and has agreed to make an acquisition.

According to the release, Orica has settled litigation with CF Industries (NYSE: CF) for a payment of US$169.5 million (A$242.3 million). The dispute began in October 2023 and the settlement has been reached with no admission of liability by any party.

Management said the agreement removes litigation uncertainty and will allow the company to establish a more diversified supply base for its US operations, strengthening security of supply for customers in the region.

The payment will be made in the second half of FY 2026 and funded using Orica’s existing cash and undrawn committed bank debt facilities.

ASX 200 stock announces US acquisition

Alongside the settlement, Orica revealed that it has agreed to acquire 100% of the explosives business of Nelson Brothers, its current joint venture partner in the United States.

The deal will see the ASX 200 stock purchase the outstanding membership interests in Nelson Brothers LLC and Nelson Brothers Mining Services. Under the agreement, Orica will pay US$25 million and retire US$48 million of existing debt associated with the explosives business.

The acquisition will provide Orica with four emulsion plants, initiating system magazines located in key markets, and mobile manufacturing unit bulk explosives delivery vehicles. It will also increase storage capacity and provide direct channels to market in the US quarries and construction sectors.

Management expects the transaction to close in the second half of FY2026, subject to due diligence and final agreements.

Commenting on both developments, the ASX 200 stock’s managing director and CEO, Sanjeev Gandhi, said:

Orica has agreed to settle this litigation with CF following careful consideration and in the best interests of shareholders and customers. Our focus remains on executing our strategy, advancing our growth initiatives and delivering sustainable value for customers and shareholders. Importantly, our actions have ensured there has been no disruption to customer supply, and we remain committed to strengthening security of supply for our customers through a diversified and resilient sourcing strategy in North America.

The combination of the settlement and the acquisition of Nelson Brothers’ US Explosives business will further strengthen our North American region, deliver immediate earnings benefits and support our strategy to grow in attractive downstream markets.

The post Guess which ASX 200 stock has settled a major US litigation and made an acquisition appeared first on The Motley Fool Australia.

More reading

• Orica settles US litigation and announces US acquisition
• 2 compelling ASX shares experts rate as buys in March
• Buy this ASX 200 share benefiting from ‘cyclical tailwinds’: Top broker
• Guess which ASX 200 share is storming higher on business update
• Buy, hold, sell: Orica, Origin Energy, and Pro Medicus shares

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.

Building a second income from ASX shares could be one of the best moves Australians can make during this period.

There are two big reasons this month could be a great time to start investing in passive income names.

Firstly, share prices have dropped amid the large spike in the oil price. Why is that helpful for building a second income? When the share price of a dividend-paying business falls, the dividend yield is boosted. For example, a 5% dividend yield becomes a 5.5% dividend yield if the share price drops 10%. Getting a bigger income return is useful.

Secondly, it appears inflation is returning, so it could be a good idea to invest in passive-income assets that can deliver a growing second income to offset inflation.

Future Generation Australia Ltd (ASX: FGX)

Future Generation is a listed investment company (LIC). A LIC structure can be advantageous over an exchange-traded fund (ETF) because the board of directors can decide on the level of dividend payments (and deliver consistency), whereas ETFs largely pass through the income they receive from their portfolios, so ETF payouts can be volatile.

Impressively, Future Generation Australia has increased its annual payout every year for the last 10 years in a row, an excellent record of consistency.

Another positive is that the LIC doesn’t charge any management fees or performance fees. Instead, it donates 1% of its net assets to youth-focused charities.

Future Generation is invested in a portfolio of funds from fund managers who work for free. This means Future Generation Australia has a lot of underlying diversification. Over the last seven years to February 2026, its portfolio has returned an average of 10.7%.

In terms of the dividend yield, its 2025 payout translates into a grossed-up dividend yield of 7.7%, including franking credits. That’s a great starting yield for investors wanting a second income, in my view.

APA Group (ASX: APA)

APA is one of the largest energy infrastructure businesses in Australia. Its main portion of its asset base is a national gas pipeline network – it transports half of the country’s gas usage.

Most of the business’ revenue is linked to inflation, so any increase in inflation can accelerate its revenue growth, though higher interest costs will be an offset to that.

The ASX share also has other assets, like gas storage, gas processing, gas-powered electricity generation, wind farms, solar farms, and electricity transmission. It’s building a diversified portfolio.

APA has increased its annual distribution every year for the past two decades in a row. It has been one of the most reliable dividend growth payers on the ASX.

It has partly achieved this through the steady expansion of its asset base, investing in new assets (such as pipelines) and acquisitions (such as Basslink).

I’m expecting the business to continue growing its distribution over the rest of this decade, which makes it an attractive second income. In FY26, it’s expected to grow its distribution to 58 cents per security, which would be a distribution yield of 6.3%.

I like APA’s defensive earnings – energy remains a very important aspect of the Australian economy, particularly if it continues expanding its pipeline network and capacity.

The post Want to build a second income? I’d buy these ASX shares today appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares I’d buy instead of Westpac
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• 3 ASX shares I would buy to protect against a recession

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

Telix Pharmaceuticals Ltd (ASX: TLX) shares are on the slide on Monday morning.

At the time of writing, the ASX healthcare stock is down 2.5% to $11.03.

Why are Telix Pharmaceuticals shares falling today?

Investors have been selling the company’s shares today after it announced the resubmission of a new drug application (NDA) to the U.S. Food and Drug Administration (FDA) for its brain cancer imaging candidate TLX101-Px, also known as Pixclara.

According to the release, the NDA relates to an investigational PET imaging agent designed to help characterise recurrent or progressive glioma, a form of brain cancer, in both adult and paediatric patients.

Telix advised that the application has been resubmitted with additional data requested by the FDA. The company believes the new data and statistical analysis, together with the original submission, address the issues raised in the regulator’s earlier Complete Response Letter.

The imaging candidate has already received both Orphan Drug and Fast Track designations from the FDA, reflecting its potential to address a significant unmet medical need.

Importantly, management highlights that while PET imaging with the tracer is already included in international clinical guidelines for imaging gliomas, there is currently no FDA-approved targeted amino acid PET imaging agent commercially available in the United States for brain cancer imaging.

Potential companion diagnostic

Telix also noted that TLX101-Px may serve as a companion diagnostic for its therapeutic candidate TLX101-Tx, which is being investigated as a treatment for glioblastoma in the IPAX-BrIGHT study.

Gliomas are among the most common types of brain tumours, accounting for around 30% of all brain and central nervous system tumours and approximately 80% of malignant brain tumours.

Commenting on the resubmission, Telix’s chief medical officer, Dr David N. Cade, said:

We appreciate the FDA’s recognition of the critical unmet need to improve the diagnosis and management of glioma, particularly in the posttreatment setting. Our resubmission is supported by an extensive and compelling data set – particularly so for an orphan indication. We are grateful to our global clinical collaborators, who share our commitment to ensuring patients in the U.S. can benefit from this important patient management tool.

Also commenting on the news was Maggie Haynes, who is executive director at Head for the Cure Foundation. Hayne added:

Our community is encouraged by the FDA’s ongoing engagement and guidance to the sponsor and support for the Expanded Access Program for TLX101-Px. We are hopeful of an expedited review, so this important and proven imaging option can become available to those who urgently need it.

The post Telix shares drop despite promising US FDA update appeared first on The Motley Fool Australia.

More reading

• Telix Pharmaceuticals resubmits FDA application for brain cancer imaging agent
• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today
• Why Telix shares could smash the market in 2026 with an 80% return
• Should you buy low on these ASX healthcare stocks?

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

In uncertain times like this, there are particular ASX-listed exchange-traded funds (ETFs) that could provide strong returns over the long-term which I’m drawn to.

The short-term may be volatile, but that can happen every so often on the share market. Sometimes the world can throw up a big unexpected event which cause share prices to drop.

Earnings of some businesses may well fall. But, some may fare better than others because of the quality metrics they possess.

I want to highlight two funds in-particular that have performed strongly over the long-term and could be resilient through whatever happens next. But, I have a positive view about the long-term.

Betashares Global Quality Leaders ETF (ASX: QLTY)

This ETF represents a global portfolio of 150 companies that are ranked by the highest quality score.

By owning 150 businesses from across the world and in different sectors, it offers investors significant diversification, much more than what the S&P/ASX 200 Index (ASX: XJO) currently provides.

BetaShares says that the quality score rankings used to select the stocks in the index are based on a combined ranking of four key factors – return on equity (ROE), debt-to-capital, cash flow generation ability and earnings stability.

In other words, these businesses make a lot of profit for shareholders, they use little-to-no debt to do so, they generate plenty of cash flow and their earnings are stable. But combining these elements, I think you’re left with many of the world highest-quality companies in the portfolio.

Over the three years to the end of February 2026, the QLTY ETF returned an average of 17.3% per year, which is an excellent return, in my view. Past performance is not a guarantee of future returns of course.

I’m backing the ASX ETF’s portfolio to continue delivering good results over time.

VanEck MSCI International Quality ETF (ASX: QUAL)

The QUAL ETF has a somewhat similar setup – it’s aiming to provide investors with a high-quality global portfolio that is decided by a few quality-based metrics.

It doesn’t look at quite as many quality characteristics, but it does own twice as many shares as the QLTY ETF. In terms of the number of different names it provides exposure to, it does have more diversification.

The three metrics that this ASX ETF looks for is a high return on equity, earnings stability and low financial leverage. In other words, these businesses are very profitable on behalf of shareholders’ funds, the profit is resilient and doesn’t usually go backwards, and these companies don’t utilise much, if any debt, as part of the business.

Impressively, to 28 February 2026, it has returned an average of 20.3% per year over the prior three years, though that’s not a guarantee of future returns.

The post 2 ASX ETFs I’d buy for returns and to sleep well at night appeared first on The Motley Fool Australia.

More reading

• 3 defensive ASX ETFs to battle through market turmoil
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Motley Fool contributor Tristan Harrison has positions in VanEck Msci International Quality ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Perpetual Ltd (ASX: PPT) share price is in focus after the company announced the sale of its Wealth Management business to Bain Capital for an upfront $500 million, plus potential further payments.

What did Perpetual report?

• Binding deal to sell Wealth Management division to Bain Capital for $500 million cash up front
• Potential additional upfront payment, dependent on advice business performance to completion (up to $50 million)
• Earn-out component of up to $50 million, tied to Wealth business performance post-completion
• Net proceeds will be used to reduce company debt and invest in Asset Management and Corporate Trust businesses
• Pro-forma net debt to EBITDA expected to fall to around 0.2x after completion

What else do investors need to know?

Completion of the transaction is subject to approvals from the Foreign Investment Review Board (FIRB), the ACCC, and a corporate restructure to separate Wealth Management from the Perpetual Group. Completion is targeted towards the end of 2026.

Transaction and separation costs are expected to be around $30 million (post-tax) over the next 12–18 months. Estimated tax on proceeds is $45–50 million, with franking credits from this available for future dividends, likely from 2H27.

Perpetual will license its Wealth-related brands to Bain Capital for 15 years but will retain full ownership of the core “Perpetual” brand. Transitional support services for technology and operations will be provided to the Wealth Management business for up to 18 months post-completion.

What did Perpetual management say?

Perpetual CEO and Managing Director Bernard Reilly said:

Following a thorough sale process, we believe we have achieved the right outcome for our shareholders, clients and people, and one that reflects Wealth Management’s longstanding reputation as a premium provider of high net worth advisory, fiduciary, philanthropic and not-for-profit offerings in the Australian market.

This is a pivotal step in our strategy to simplify and transform Perpetual. Following completion, Perpetual will have a stronger balance sheet and more simplified business, focused on two core businesses, asset management and corporate trustee services, while also enhancing its ability to invest for future growth and deliver improved shareholder returns over the longer term.

We believe we have found the right owner for the Wealth Management business to help it continue to grow and deliver high quality products and services to its clients. Today’s announcement also provides clarity and certainty for our teams, who have continued to show an exceptionally high level of professionalism, commitment and focus throughout this process.

What’s next for Perpetual?

With the Wealth Management sale, Perpetual will concentrate on its core Asset Management and Corporate Trust operations. The business expects to use sale proceeds to pay down debt and fund further growth in these divisions.

Over the coming months, the group will progress the required regulatory and court approvals for completion, and provide transitional support to the Wealth Management business until it is fully separated. The simplification aims to position Perpetual for long-term growth and improved shareholder returns.

Perpetual share price snapshot

Over the past 12 months, Perpetual shares declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Perpetual sells Wealth Management business to Bain Capital for $500m appeared first on The Motley Fool Australia.

More reading

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• Meridian Energy: February 2026 update shows growth and strong storage
• 5 things to watch on the ASX 200 on Monday

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.

Northern Star Resources Ltd (ASX: NST) shares have been struggling in recent months.

Due to production issues, the ASX 200 gold giant is down 32% from its 52-week high to $21.75.

While this is disappointing for shareholders, Bell Potter thinks it could be a buying opportunity for the rest of us.

What is the broker saying about this ASX 200 gold giant?

Bell Potter was very disappointed to see the company downgrade its FY 2026 guidance for a second time last week. It said:

NST have downgraded FY26 guidance for a second time this FY, just when we thought NST were seeing light at the end of the tunnel. Gold sales are now expected to be at or around 1,500koz down from the previously revised 1,600-1,700koz guidance (BPe 1,601koz, VA 1,614koz prior to the downgrade).

The reasons driving the downgrade primarily stemmed from KCGM mill throughput challenges with intermittent outages in the float circuit and electrical issues compounding downtime. Throughput over the remainder of the year is likely to average ~9Mtpa vs the initial 12Mtpa FY26 guidance. Adding insult to injury, productivity at Jundee continued to disappoint with grades failing to meet expectations and prompting a shift in resources to higher-margin operations.

While the ASX 200 gold stock has reaffirmed its cost guidance for FY 2026, Bell Potter believes that this will be removed with its third-quarter result. The broker explains:

Management reaffirmed AISC guidance of A$2,600- $2,800/oz, however on our assessment this is likely to be pulled potentially at the 3Q result. Total group gold sales across Jan-Feb were 220koz (2QFY26 348koz), we have pared back our estimate for KCGM, adjusting throughput to 7.4Mtpa (annualized) in 3Q and 10.4Mtpa in 4Q at an average grade of 1.8g/t. We remain sceptical on the throughput grade required to meet the updated guidance, given mined grades are tracking around 1.6g/t and being delivered for processing through the new Mill in FY27.

Should you buy Northern Star shares?

Despite the many negatives, Bell Potter remains positive on the ASX 200 gold giant and believes it could be a good time to buy.

It has retained its buy rating and $35.00 price target, which implies potential upside of 60% for investors over the next 12 months.

Commenting on its recommendation, the broker said:

Our Target Price is unchanged at $35.00/sh, and we maintain our Buy recommendation. The disappointing downgrade however is likely to remain as a significant overhang for the stock over the next 12-18m until the ramp up of the upgraded mill at KCGM commences. We see potential positives from asset rationalisation, given the high capital and operating costs at the likes of Jundee and Thunderbox.

The post What Bell Potter is saying about this fallen ASX 200 gold giant appeared first on The Motley Fool Australia.

More reading

• Northern Star Resources shares just crashed – time to buy the dip?
• 5 things to watch on the ASX 200 on Monday
• Why CAR Group, Immutep, Northern Star, and Syrah Resources shares are sinking today
• Northern Star shares crash 16% on second guidance downgrade for FY26
• Northern Star trims FY26 guidance and updates on KCGM mill expansion

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 Orica Ltd (ASX: ORI) share price is in focus today after the company announced the settlement of US litigation and a new acquisition in North America. Highlights include resolving the CF Industries dispute for US$169.5 million and moving to acquire Nelson Brothers’ US explosives business.

What did Orica report?

• Settled litigation with CF Industries for US$169.5 million, funded from existing cash and undrawn debt facilities
• Agreement to acquire Nelson Brothers’ US explosives business for US$25 million plus retirement of US$48 million in debt
• Transactions expected to be earnings per share (EPS) accretive in the first full financial year
• Acquisition to boost EBIT by AUD$35 million per year once fully integrated
• Increased exposure to the strategic North American market, especially US Quarries and Construction sectors

What else do investors need to know?

Orica’s settlement with CF Industries brings an end to litigation that began in October 2023, with no admission of liability by either party. This move removes a significant source of uncertainty for Orica’s shareholders and customers.

The acquisition of Nelson Brothers’ explosives business will give Orica full ownership of four US emulsion plants and wider access to downstream markets. The deal also expands Orica’s exposure in critical end markets through improved supply chain and delivery capabilities, plus enhanced opportunities for cross-selling its product and service offerings.

What did Orica management say?

Orica Managing Director and CEO Sanjeev Gandhi said:

Orica has agreed to settle this litigation with CF following careful consideration and in the best interests of shareholders and customers. Our focus remains on executing our strategy, advancing our growth initiatives and delivering sustainable value for customers and shareholders.

Importantly, our actions have ensured there has been no disruption to customer supply, and we remain committed to strengthening security of supply for our customers through a diversified and resilient sourcing strategy in North America.

The combination of the settlement and the acquisition of Nelson Brothers’ US Explosives business will further strengthen our North American region, deliver immediate earnings benefits and support our strategy to grow in attractive downstream markets.

What’s next for Orica?

Looking ahead, Orica expects the combination of the litigation settlement and new acquisition to simplify its business structure and create greater operational resilience. Management sees upside through increased presence in the attractive North American market, as well as potential revenue growth and business synergies from the Nelson Brothers acquisition.

The integration of the newly acquired business and a move to diversify Orica’s ammonium nitrate supply are aimed at supporting sustainable long-term growth and further protecting customer supply chains.

Orica share price snapshot

Over the past 12 months, Orica shares have risen 11%, slightly outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

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The post Orica settles US litigation and announces US acquisition appeared first on The Motley Fool Australia.

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