Develop Global Ltd (ASX: DVP) is an ASX materials stock that has soared over the last year.
In the past 12 months, it has risen 138%.
This includes a 22% rise already in 2026.
It now sits close to its 52 week high.
When valuations look full like this, it can be difficult for investors to jump in.
However a new report from Bell Potter suggests the ASX materials stock can keep rising.
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2Q FY26 update
Yesterday, Develop Global released its Quarterly Activities Report- December 2025.
This included positive news regarding the company's Woodlawn site.
The Woodlawn copper restart is Develop Global's recommissioning of its Woodlawn underground copper-zinc mine in NSW, bringing the operation out of care and maintenance and back into production.
The company said the Woodlawn restart continues to perform strongly, with commissioning and ramp-up on schedule, putting the project on track for steady-state production in the March quarter:
- A record 59,000t processed in the month of December puts Woodlawn on track to reac name-plate capacity rate of 850,000tpa in the March quarter
- Quarterly revenue is up 98.5% to A$39.1 million from 9,472 tonnes of concentrate sales
- Copper and zinc concentrate production increased 36% and 43% respectively compared to the September quarter, predominately driven by higher grade production from the Kate lens.
Reacting to the report, Bell Potter said:
Woodlawn revenue was A$39.1m, higher than A$19.7m in the prior quarter and our $24.8m estimate. While processing volumes were broadly consistent with the prior quarter, greater copper and zinc concentrate production (up 36% and 43% on the prior quarter, respectively) implies higher head grade and / or metal recoveries.
Improved outlook for this ASX materials stock
In a report out of Bell Potter yesterday, the broker said the company ended the quarter with cash of $179.9m, drawn debt of $108.5m and equipment financing of $47.0m, for a net cash position of $24.4m (vs $46.0m at the end of the Sep-25 quarter).
This led to EPS changes of: FY26: +4% in FY26; nc in FY27-28.
Achieving steady-state Woodlawn production in the Mar-26 quarter is forecast to drive +92% EPS growth in FY27, with upside should spot commodity prices hold.
The broker highlighted the Mining Services division delivered A$55.5m in revenue in Q2 FY26. This was in line with expectations, driven by record output from its Bellevue Gold Mine contract.
The recently secured A$200m Waihi North tunnelling contract in New Zealand is set to commence in the June 2026 quarter, adding medium-term earnings visibility.
Based on this guidance, the broker has updated its price target to $6.40 (previously $5.80).
From yesterday's closing price, this indicates an upside of approximately 15.7%.
