As February earnings season draws to a close, brokers are updating their outlooks on ASX shares following important announcements.
Two S&P/ASX 300 Index (ASX: XKO) shares that received fresh guidance from Bell Potter yesterday were Capricorn Metals Ltd (ASX: CMM) and Elders Ltd (ASX: ELD).
Both saw solid share price increases on Thursday for different reasons.
Capricorn Metals released HY results, while Elders made headlines by announcing the sale of a key part of its business.
Here's what the companies released.
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Capricorn Metals delivers record profit
Capricorn Metals is a gold production company based in Perth, Western Australia.
Investors reacted positively to half-year results from Capricorn Metals that included:
- Sales revenue up 64% to $350.1 million from the sale of 59,816 ounces of gold at an average price of $5,842 per ounce
- Underlying net profit after tax up 130% to $144.8 million
- Underlying EBITDA rose 101% to $215.3 million with a 62% margin
- Maiden fully-franked interim dividend of 5 cents per share ($22.8 million) declared.
Following yesterday's 1.45% gain, its share price is now up 77.6% over the last 12 months.
What did Bell Potter have to say?
Following the results, the team at Bell Potter said it was an excellent result that reflects operational performance, with the company tracking to the top end of guidance and maintaining its track record of delivery.
It increased earnings per share by: FY26: +3%; FY27: +4%; and FY28: +25%.
CMM is a sector leading gold producer, unhedged and debt free. It is fully funded to grow production from ~115kozpa to ~300kozpa, potentially from 2HCY27, from two gold mines in WA, each with +10 year mine lives.
CMM is run by a management team that has an excellent track record of delivery.
As a result, the broker increased its price target on these ASX shares to $16.10 (previously $14.30).
From yesterday's closing price of $14, this indicates a potential upside of 15%.
The broker also retained its buy recommendation.
Elders shares downgraded
Elders is an agribusiness that provides goods and services to Australian primary producers.
Yesterday, the company announced it has agreed to sell its Killara Feedlot business to Australian Meat Group for approximately $195.8 million.
Following the announcement, Bell Potter released updated guidance on the company.
NPAT changes are -14% in FY26e, -9% in FY27e and -8% in FY28e incorporating the above and higher base interest rates. Our target price is now $9.00/sh (prev. $9.45/sh) reflecting earnings changes mitigated in part by higher Killara proceeds.
From yesterday's closing price of $7.40, the broker still sees 21% upside for these ASX shares.
The broker maintained its buy recommendation.
Our Buy rating is unchanged. We see encouraging signs for FY26e, with livestock turnoff values exhibiting double digit YoY growth through 1H26TD, mitigated in part by dryer conditions through most of the summer cropping window and an easing in input price tailwinds.
