Tag: Stock pick

Reliance Worldwide Ltd (ASX: RWC) has announced a new $120 million share buyback, after its gearing levels fell below their target range.

The company said in a statement to the ASX that the new buyback was in addition to a US$15.3 million buyback announced on February 17, which was part of its interim distribution which also included a US2 cents per share dividend.

Company performing well

Reliance chair Russell Chenu said the buyback reflected the board’s confidence in the company’s strategy and outlook.

He said further:

RWC has continued to generate strong cash flows over the past two years despite subdued end markets. This has enabled us to substantially reduce net debt. Consequently, RWC’s leverage ratio has fallen below the bottom end of our target range of 1.5 time to 2.5 times net debt to EBITDA1. Undertaking this additional share buy-back will enable us to return excess capital to shareholders efficiently and is consistent with our previously articulated capital management strategy. We expect to be comfortably within the leverage ratio target range at the conclusion of the $120 million buy-back.

Reliance in mid-February said it had had a challenging first half, with its results impacted by US tariffs and weaker demand in the US and the UK.

Sales revenue was 4% lower at US$645.4 million for the first half while net profit was 34.9% lower at US$43.7 million.

The company added:

As foreshadowed in RWC’s FY25 earnings announcement in August 2025, operating earnings for the period were adversely impacted by US tariffs. The expected full year net impact of tariffs in FY26 is in the range of US$25 million to US$30 million, with the impact weighted to the first half of FY26. The benefits from the transfer of product sourcing away from China to lower tariff countries, coupled with price adjustments and cost reduction measures, will continue to flow through in the second half of FY26.

Reliance chief executive officer Heath Sharp said the first half had been “particularly challenging” due to the US tariffs and weak markets.

He added:

While residential remodelling and new construction markets remained subdued, we have made significant progress on a number of strategic initiatives. We commissioned our new assembly facility in Poland and finalised plans for a new facility in Mexico which will support activity in the Americas and lower the impact of associated tariffs. During the half we also launched new product ranges with key distributors in Germany, France and Italy, while SharkBite Max was launched nationwide across Australia.

Morgans in February released a research note to its clients on Reliance and has a price target of $3.50 on Reliance Worldwide shares, compared with $2.92 currently.

Reliance Worldwide was valued at $2.24 billion at the close of trade on Friday.

The post Which industrial company has just announced a $120 million buyback? appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares at 52-week lows: Buy, hold, or sell?
• 35 ASX All Ords shares with ex-dividend dates next week
• After being sold down on weak results, one broker thinks Reliance Worldwide is a good buy
• Why Reliance, Santana Minerals, Sims, and Treasury Wine shares are falling today
• Reliance Worldwide half-year earnings: profit falls, dividend steady

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

Several ASX shares are under pressure following the latest S&P Dow Jones Indices rebalance.

Catapult Sports Ltd (ASX: CAT), EBOS Group Ltd (ASX: EBO), and DigiCo Infrastructure REIT (ASX: DGT) slid between roughly 4.3% and 11% after it was announced they will be removed from the S&P/ASX 200 Index (ASX: XJO) later this month.

Index removals can trigger selling pressure as exchange-traded funds and index funds that track the benchmark are forced to offload the stocks. While the move doesn’t change the underlying businesses, it can still create short-term volatility.

Here’s a closer look at the 3 affected ASX shares.

Catapult Sports: struggle to deliver consistent profits

This ASX share has lost 51% of its value over 6 months to just $1 billion. Catapult develops performance analytics technology used by professional sports teams around the world. Its wearable tracking devices and video analysis software are widely used across leagues such as the NFL, NBA, and English Premier League.

Catapult operates in a niche but rapidly growing market. As professional sports become increasingly data-driven, demand for performance analytics continues to expand.

The company also benefits from a recurring software revenue model. Subscription income from teams using its analytics platforms helps provide more predictable revenue compared with traditional hardware businesses.

Despite its growth potential, Catapult has historically struggled to consistently deliver strong profits. Investors remain sensitive to execution risk as the company balances growth investments with improving margins.

Another risk is its relatively small size compared with many ASX 200 companies. Smaller technology firms can experience larger share price swings, particularly when sentiment toward growth stocks weakens.

Ebos Group: defensive business, thin margins

Ebos Group is one of the largest healthcare and pharmaceutical distributors across Australia and New Zealand. The ASX share also owns a growing portfolio of animal care and healthcare brands.

Ebos operates in a defensive sector. Demand for pharmaceuticals, medical supplies, and healthcare services tends to remain relatively stable regardless of broader economic conditions.

The company has also grown significantly through acquisitions, building a diversified healthcare distribution network and expanding its product portfolio across both human and animal health markets.

Strong cash flow generation has helped support consistent dividends, making the stock popular with income-focused investors.

Despite its defensive positioning, Ebos operates on relatively thin margins typical of the distribution sector. Rising costs or pricing pressure from suppliers could impact profitability.

The $3.8 billion ASX share has tumbled 31% in the past 6 months and 22% so far in 2026.

DigiCo Infrastructure REIT: focus on data centre capacity

DigiCo Infrastructure REIT is a relatively new ASX share and focuses on digital infrastructure assets. It particularly targets data centres that support cloud computing and growing data demand.

Digital infrastructure has become a critical part of the global economy. Rapid growth in cloud services, artificial intelligence, and data storage is driving strong long-term demand for data centre capacity.

As a newer listing, DigiCo has a shorter track record compared with many established ASX infrastructure companies. That can make it harder for investors to assess long-term performance.

Since being listed in December 2024 the ASX share has dropped steadily with 64% to $1.81. DigiCo’s market capitalisation has been reduced to just $1 billion.

Foolish Takeaway

Being removed from the S&P/ASX 200 Index can create short-term selling pressure, but it doesn’t necessarily change a company’s long-term prospects.

For investors willing to look beyond the index reshuffle, Catapult Sports, Ebos Group, and DigiCo Infrastructure REIT may still be worth watching closely.

The post 3 ASX shares slide after being cut from the ASX 200 appeared first on The Motley Fool Australia.

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• Leading brokers name 3 ASX shares to buy today
• Bell Potter names more of the best ASX shares to buy in March

Motley Fool contributor Marc Van Dinther 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 Catapult Sports. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Lynas Rare Earths Ltd (ASX: LYC) share price is in focus today after the company announced a major supply agreement with the US Department of War, involving US$96 million in rare earth oxide offtake and a US$110/kg floor price for NdPr.

What did Lynas Rare Earths report?

• Signed a binding Letter of Intent with the United States Department of War (DoW) for rare earth supply.
• US$96 million allocated by the US Government for Light and Heavy Rare Earth oxide purchases from Lynas.
• NdPr oxide floor price set at US$110 per kilogram under the supply framework.
• The proposed agreement covers deliveries over a four-year period.
• This follows changes to an earlier agreement regarding the Seadrift, Texas facility.

What else do investors need to know?

Lynas’ agreement with the US Department of War establishes a framework to finalise a longer-term supply arrangement. This move is designed to support US national security and strengthen supply chain resilience around essential rare earth materials.

The revised arrangement comes after mutual decisions to modify the original deal, reflecting uncertainty about progressing the Heavy Rare Earth processing facility at Seadrift, Texas. Lynas and the DoW are also in discussion about future supply needs for Heavy Rare Earth oxides.

What did Lynas Rare Earths management say?

CEO and Managing Director Amanda Lacaze said:

Lynas is pleased to sign this binding Letter of Intent with the U.S. Department of War. Through this agreement, the U.S. Defense Industrial Base will continue to have access to Light and Heavy Rare Earth oxides that are essential for modern manufacturing.

We thank the U.S. Government for working with Lynas to reach this mutually beneficial arrangement and look forward to finalising the definitive agreement in due course and continuing our productive engagement with the U.S. Government.

What’s next for Lynas Rare Earths?

Looking ahead, Lynas and the DoW will work towards converting this Letter of Intent into a definitive long-term agreement. Further talks are underway for extended supply, including potentially expanding the scope for Heavy Rare Earth oxides.

Lynas continues to be a key player in global rare earth supply, and its focus remains on serving strategic customers while supporting critical industry needs, particularly in the US.

Lynas Rare Earths share price snapshot

Over the past 12 months, Lynas Rare Earths shares have risen 172%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Lynas Rare Earths announces US$96m US rare earth agreement 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 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. 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.

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is in focus after the company announced it has resubmitted its New Drug Application (NDA) to the U.S. FDA for TLX101-Px (Pixclara®), a brain cancer imaging candidate. Telix’s resubmission includes new data addressing the FDA’s previous requests and could bring the first FDA-approved targeted PET agent for adult and paediatric brain cancer imaging to the U.S. market.

What did Telix Pharmaceuticals report?

• Resubmitted NDA for TLX101-Px (Pixclara®) brain cancer imaging agent to U.S. FDA
• Submission includes additional data and statistical analysis to address FDA’s Complete Response Letter
• TLX101-Px has Orphan Drug and Fast Track designations from the FDA
• No FDA‑approved targeted amino acid PET agent currently available for brain cancer imaging in the U.S.
• TLX101-Px is intended for both adult and paediatric glioma imaging

What else do investors need to know?

TLX101-Px is being developed to help doctors distinguish between recurrent or progressing glioma and changes caused by prior treatments. This could make a real difference for patients struggling with brain cancer by helping their clinical teams make better informed decisions.

Globally, PET imaging with 18F-FET (the basis for TLX101-Px) is part of clinical guidelines, but no similar FDA-approved product exists in the U.S. The agent targets LAT1 and LAT2 transport proteins and also has potential as a companion diagnostic for Telix’s investigational brain cancer therapy, TLX101-Tx.

Telix has operations spanning the U.S., Europe, Japan, and other countries, and is headquartered here in Melbourne. Its Illuccix® imaging agent is already approved in multiple markets. However, both TLX101-Px and the therapy TLX101-Tx are investigational and not yet approved anywhere.

What did Telix Pharmaceuticals management say?

Dr. David N. Cade, Telix Group Chief Medical Officer, said:

We appreciate the FDA’s recognition of the critical unmet need to improve the diagnosis and management of glioma, particularly in the post-treatment 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.

What’s next for Telix Pharmaceuticals?

Telix expects the FDA review process to progress in the coming months after its resubmission. With Orphan Drug and Fast Track status, the company could potentially see an expedited pathway to approval, if the regulator is satisfied with the new data.

In the meantime, Telix continues work on its broader pipeline, including further development of both imaging and therapeutic products for cancer and rare diseases worldwide. Investors will be watching for updates on FDA timelines and any developments in the pivotal study of TLX101-Tx.

Telix Pharmaceuticals share price snapshot

Over the past 12 months, Telix shares have declined 59%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Telix Pharmaceuticals resubmits FDA application for brain cancer imaging agent 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 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. 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.

Oil prices have surged again as the war in the Middle East continues to disrupt global energy supply.

According to Trading Economics, West Texas Intermediate (WTI) crude rose 1.06% to US$99.75 per barrel, while Brent crude is trading above US$103 per barrel. Prices have rallied sharply since the conflict began in late February.

The rise in oil has also pushed broader commodity markets higher, lifting products linked to diversified commodity indices such as the Global X Bloomberg Commodity Complex ETF (ASX: BCOM).

War in the Middle East hits global oil flows

The latest rally follows a significant disruption to global energy supply caused by the ongoing war involving Iran, the United States, and Israel.

The Strait of Hormuz, a narrow shipping lane between Iran and Oman, normally carries around 20 million barrels of oil per day, representing roughly 20% of global oil trade.

Since the conflict escalated, tanker traffic through the strait has collapsed and maritime shipments have slowed dramatically.

The International Energy Agency (IEA) estimates that oil production across Gulf states including Saudi Arabia, Iraq, Kuwait, and the United Arab Emirates has already been reduced by at least 10 million barrels per day. This makes it the largest supply disruption in the history of the oil market.

Oil prices briefly surged as high as US$119 per barrel earlier this month, the highest level since 2022, before easing slightly.

Several oil export facilities have also been affected by military strikes and attacks on infrastructure. In one incident, a fire at the Fujairah oil hub in the United Arab Emirates forced loading operations to stop at a port that previously exported around 1.7 million barrels per day.

Commodity markets move higher alongside oil

The rise in oil prices has contributed to gains across the broader commodity complex.

One investment reflecting this move is the Global X Bloomberg Commodity Complex ETF.

The BCOM share price closed at $13.22 on 13 March, up 1.38% for the day. Over the past month the ETF has risen 10.44%, while its 1-year return is 14.96%.

The ETF tracks the Bloomberg Commodity Index, which includes exposure to a diversified group of commodities across multiple sectors.

These include energy products, precious metals, industrial metals, agricultural commodities, grains, and livestock.

This broad exposure distinguishes it from many commodity ETFs that track a single market such as gold, oil, or agriculture.

Oil markets remain sensitive to developments

Oil markets remain highly sensitive to developments in the Middle East war.

The IEA has already coordinated the release of around 400 million barrels of oil from strategic reserves in an effort to stabilise global markets.

However, analysts warn that strategic reserves can only offset supply losses for a limited period if shipping through the Strait of Hormuz remains restricted.

With oil now trading close to US$100 per barrel, the conflict has become a major driver of commodity prices and global energy markets.

The post Oil climbs toward US$100 as the Middle East war disrupts global supply 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.

The CSL Ltd (ASX: CSL) share price has been through a tough time over the past two years. As the chart below shows, it’s down more than 50% since August 2024.

As a result of this decline, it has fallen below Wesfarmers Ltd (ASX: WES) and Macquarie Group Ltd (ASX: MQG) in market capitalisation terms.

The question now is whether the company is on track to recover some of that lost ground or whether it’s going to go even lower. Let’s take a look at what analysts think of the company’s potential.

Expert views on the CSL share price

According CMC Invest, there are a number of positive opinions on the business. There are currently seven buy ratings, four hold ratings and no sell ratings.

A price target tells us where analysts think the share price will go in a year – the average price target on CSL shares is $215.13, according to CMC Invest. That implies a possible rise of 52% from where it is today.

UBS is one of the brokers that likes CSL right now, with a price target of $235, implying a possible rise of 66%.

Why UBS likes the ASX healthcare giant

UBS notes that the CSL share price valuation is appealing, though a recovery in the gross profit margin could take a while.

UBS is expecting CSL to prioritise volume over price as it seeks to re-establish its position as the low-cost supplier. This strategy is “likely to weigh on average selling prices, particularly as it seeks to replace tender volumes, most notably with the NHS”, according to UBS.

The broker also notes that the interim CEO’s track record inspires confidence, but time is needed to turn this around. Gordon Naylor has more than 30 years of CSL experience, having help senior engineering, operational, financial and leadership roles.

UBS noted that Naylor’s “deep understanding of the plasma and flu businesses makes him a highly credible choice to lead the company through its current challenges.”

It’s not a booming market for CSL right now, with global plasma-derived therapy sales only increasing by just 4% in 2025, which is much lower than the historic growth, largely due to the US reimbursement cuts.

But, UBS did highlight underlying demand growth was “solid with Ig volumes up 7-8% and like-for-like sales up 8-9%. CSL’s poor results were attributed to the loss of key tenders and poor commercial execution, particularly in the large US market.”

The broker notes that:

Our review of competitor results points to market share losses for CSL across Ig, subcutaneous Ig, albumin and hereditary angioedema. The flu business was the sole area of strength, with Seqirus share rising to ~33%.

UBS projects that the business could generate net profit of US$3.4 billion in FY26 and US$3.7 billion in FY27.

The post Here are the latest growth forecasts for the CSL share price appeared first on The Motley Fool Australia.

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

When I think about investing in blue-chip shares, I’m usually looking for a few key things.

First, I want businesses with strong competitive positions. Second, I want companies that have proven they can grow over long periods of time. And finally, I like businesses that operate in industries with favourable long-term trends.

The ASX 200 has plenty of high-quality blue-chip shares worth considering. But if I had $10,000 ready to invest today, these are three that I find particularly appealing right now.

Woolworths Group Ltd (ASX: WOW)

Woolworths might not be the most exciting company on the ASX, but that’s part of what I like about it.

Supermarkets are a classic defensive business. People still need to buy groceries regardless of what the economy is doing, which helps provide a steady stream of revenue.

Woolworths also benefits from its significant scale. It serves 24 million customers each week across its growing network of businesses. Combined with its strong brand recognition and supply chain advantages, it is very difficult for competitors to challenge its position in the Australian grocery market.

I also think the company’s investments in technology, online shopping, and supply chain efficiency could help support steady earnings growth over time.

It may not deliver explosive returns, but personally I see Woolworths as the kind of reliable blue chip that can compound value steadily for years.

Macquarie Group Ltd (ASX: MQG)

Macquarie is one of the most unique companies in the Australian market, in my opinion.

While many banks focus mainly on traditional lending, Macquarie has built a global financial services business spanning infrastructure investing, asset management, commodities trading, and specialist banking.

What stands out to me is its ability to adapt. Over the past few decades, the company has repeatedly evolved its business model to capture new opportunities across global markets.

Macquarie has also developed an exceptional reputation in infrastructure investing, an area that I think will continue to grow as governments and businesses invest in energy, transport, and digital infrastructure.

In my view, Macquarie is one of the most dynamic and internationally focused companies in the ASX 200.

Cochlear Ltd (ASX: COH)

Cochlear is another blue-chip ASX 200 share that I believe has powerful long-term growth potential.

The company is a global leader in implantable hearing solutions, and its technology has transformed the lives of hundreds of thousands of people with severe hearing loss.

What stands out to me is that the company operates in a market with significant unmet demand. Hearing loss affects millions of people globally, yet only a small percentage of eligible patients currently receive implantable hearing devices.

As awareness grows and healthcare systems expand access to treatment, I think Cochlear has a long runway for growth.

The company also invests heavily in research and development, which helps maintain its leadership position in the industry.

Foolish takeaway

If I had $10,000 to invest in ASX 200 blue-chip shares today, I would want exposure to a mix of defensive stability and long-term growth.

Woolworths offers resilience through its dominant position in the supermarket sector. Macquarie provides exposure to global financial markets and infrastructure investment. And Cochlear operates in a healthcare market with significant long-term growth potential.

The post Where I’d invest $10,000 in ASX 200 blue-chip shares right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino 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 Cochlear and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Woolworths Group. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have a high tolerance for risk, then it could be worth hearing about the ASX defence stock that Bell Potter is tipping as a buy.

This is especially the case given that the broker believes it could more than double in value over the next 12 months.

Which ASX defence stock?

The stock that Bell Potter is recommending to clients is Titomic Ltd (ASX: TTT).

It is a cold spray metal coating technology company specialising in additive manufacturing and coating and repairs.

Bell Potter highlights that cold spray uses compressed gas to accelerate metal powders to supersonic speeds. This enables kinetic energy to fuse/plastically deform the particles onto a substrate in solid form.

In addition, the company’s high pressure systems can accept speciality alloy powders and manufacture large high-spec components. This means that key target markets are the global aerospace and defence sectors, and the natural resources and energy sectors.

What is the broker saying?

Bell Potter was at the ASX defence stock’s investor day in the US recently and was impressed with what it saw. It said:

The event highlighted TTT’s unique additive manufacturing and coating and repairs capabilities, and leverage to US and global defence spending. From the Strategic Advisory Group, it was clear that US aerospace and defence activity is at an inflection point as the country develops hypersonic systems, addresses supply chain vulnerabilities, and updates an ageing installed asset base. TTT is enjoying the tailwinds of a significant culture-change and increased sense of urgency across the US Department of War and broader Washington bureaucratic system.

The broker also notes that 2027 could be the year that production really starts to kick off. It explains:

Last year, TTT established US-based capabilities for technical validation and to service defence prime qualification activities in 2026. TTT is now engaged with NASA and several tier one defence prime contractors for qualification and is progressing other critical industry certifications (AS9100, DNV maritime approval). By the end of 2026, TTT expect to convert from qualification phase to initial production, which should rapidly scale from 2027. The company also expects that non-dilutionary funding opportunities will crystalise this year.

Big potential returns

According to the note, Bell Potter has retained its speculative buy rating and 50 cents price target on the ASX defence stock.

Based on its current share price of 21.5 cents, this implies potential upside of 130% for investors over the next 12 months.

Commenting on its recommendation, the broker said:

TTT provides leverage to the emerging application of its cold spray technology in Additive Manufacturing (AM) for defence, aerospace and natural resources markets. US defence spending as a percentage of GDP is growing off a cyclical low and is largely being driven by modernisation of its defence industrial base. TTT’s TKF technology has several advantages over traditional casting and forging manufacturing process including shorter lead-times and production cycles and improved material properties.

The post Bell Potter says this ASX defence stock could rocket 130% 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.

The Meridian Energy Ltd (ASX: MEZ) share price is in focus today after the company released its operating update for February 2026, showing customer growth of 2.1% during the month and a lift in total water inflows for the year to date.

What did Meridian Energy report?

• February retail customer numbers rose 2.1%, up nearly 20% over the past year.
• Total water inflows for financial year to date were 129% of historical average.
• February 2026 hydro storage remained robust, ending at 110% of average nationally.
• Generation in February was 5.2% higher than last year, with increases in both hydro and wind output.
• Retail sales volumes in February were 2.7% lower than a year ago, mainly from reduced irrigation demand.
• Average generation price received in February dropped 83.7% year-on-year.

What else do investors need to know?

February saw a mix of wet and dry weather, with the “Valentine’s Storm” delivering above-average rainfall to much of New Zealand, while inland South Island areas stayed drier. Despite recent lower inflows, storage levels are well above average, keeping Meridian’s generation system in a strong position for autumn.

Residential, SMB, and large business sales were all higher compared to last February, but agriculture and corporate segments saw lower volumes. Wholesale prices fell sharply, and outages on the HVDC link between the islands limited power transfers for part of the month.

What did Meridian Energy management say?

CEO Mike Roan said:

Although inflows eased during February, this is the first below-average month in the past six. Storage levels remain robust, leaving the system well placed heading into autumn. Our retail growth remains strong. While lower irrigation demand saw sales volumes dip marginally year-on-year, customer numbers increased 2.1% during February, lifting total growth to nearly 20% over the past year, adding further scale and momentum to our Retail business.

What’s next for Meridian Energy?

Meridian is heading into autumn with strong hydro storage, even after a relatively dry February. The company highlights ongoing growth in customer numbers and expanding momentum in its Retail business as areas of continued focus, alongside careful management of storage and generation as weather patterns shift.

Investors can access weekly storage and lake level updates on Meridian’s website for further insight into trends as autumn progresses.

Meridian Energy share price snapshot

Over the past 12 months, Meridian Energy shares have declined 8%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 10% over the same period.

View Original Announcement

The post Meridian Energy: February 2026 update shows growth and strong storage 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.

ASX dividend stock Lovisa Holdings Ltd (ASX: LOV) could be one of the most appealing buys within the S&P/ASX 300 Index (ASX: XKO) right now. After falling 52% since August 2025, as the chart below shows, the business is trading at much better value.

Lovisa sells affordable jewellery through its global store network that’s across every continent. It also has a start-up business called Jewells in the UK.

A jewellery retailer may not instantly strike investors as a good opportunity, but it has already demonstrated a very strong capability to deliver pleasing and growing dividends.

Let’s take a look at what makes it an appealing buy today after its fall.

Strong passive income credentials

The business has already delivered massive dividend payout growth over the past decade. The total of its last two dividends has increased by close to 10x compared to the annual payment in 2016.

I’m not expecting the dividend to grow by another ten times in the upcoming decade, but I do think that its store growth and total sales growth will help send the Lovisa share price and dividend substantially higher in the coming years.

Broker UBS projects that the business could pay an annual dividend per share of 79 cents in FY26. That would be a dividend yield of 3.8%, excluding the effect of any franking credits.

UBS then suggests that the ASX dividend stock could then pay an annual dividend per share in FY27 of 93 cents – a rise of 17.7% year-over-year. That translates into a possible dividend yield of 4%, excluding any franking credits.

The broker thinks the Lovisa payout could continue climbing each year to FY30, reaching a potential payment per share of $1.33. This would be an increase of 68% compared to the estimated FY26 payout. The forecast payout would translate into a dividend yield of 6.4% by FY30, excluding franking credits.

In my mind, there are few ASX dividend shares capable of providing a dividend yield of around 4% (or more) in FY26 and delivering a strong rate of growth over the next few years.

Why this is a good time to invest in the ASX dividend stock

I doubt there will be many times that the share price will decline 50%. It currently looks like an especially attractive buying opportunity for long-term returns.

The FY26 half-year result delivered compelling growth, with 85 new stores opened to end the period with 1,095 locations. Underlying revenue grew 22.7% to $498.1 million and underlying net profit increased 21.5% to $69.6 million.

It’s difficult to say how much the current events in the Middle East will affect its financials in FY26 and FY27, but I’m confident about the long-term.

Based on the current profit predictions by UBS, it’s valued at just 21x FY27’s estimated earnings. With its global growth plans and the potential for its margins to steadily climb higher thanks to operating leverage, I think the long-term still looks very bright.

The post 1 ASX dividend stock down 52% I’d buy right now appeared first on The Motley Fool Australia.

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