ASX materials stocks have largely been the most resilient this year amidst broader market volatility.
The S&P/ASX 200 Materials Index (ASX: XMJ) is up more than 10%, while the S&P/ASX 200 Index (ASX: XJO) is relatively flat.
However one ASX materials stock that has missed out on this outperformance is WA1 Resources Ltd (ASX: WA1).
The copper exploration company has seen its share price fall more than 17% since January.
Earlier this week, the company enjoyed a 7% rebound following the release of its March 2026 Quarterly Activities and Cash Flow Report.
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What did the company report?
Investors were seemingly pleased with the reported cash balance of approximately $131 million as at 31 March 2026.
Additionally, progress continued across WA1's key project workstreams that are expected to drive future value catalysts. Most notably, drilling continued to generate data for the June 2026 MRE update.
This led to a share price spike on Monday.
Following the report, the team at Bell Potter also released updated guidance on this ASX materials stock.
Here's what the broker had to say.
Upside remains according to Bell Potter
The team at Bell Potter said from an operational perspective, 3QFY26 was a relatively quiet quarter.
The company ended the quarter with A$131.5m in cash (vs A$138.5m in 2QFY26). Operating activities totalled A$5.7m.
Most notably, drilling continued to generate data for the June 2026 MRE update, where we expect both an increase in overall resource tonnage and an improvement in resource confidence categories, providing a stronger platform for the next phase of technical studies.
Encouragingly, high-grade intercepts reported both within and adjacent to the current MRE footprint indicating the MRE has not yet been fully delineated, supporting the view that further upside remains.
Price target intact
The team at Bell Potter retained their speculative buy recommendation on this ASX materials stock, along with a price target of $24.80.
From yesterday's closing price of $15.88, this target indicates an upside potential of 56%.
We retain our Speculative Buy recommendation and $24.80/sh valuation. WA1 is progressively de-risking Luni, where we remain of the view that Luni is a world class niobium asset, with the potential to emerge as the most credible Tier-1 niobium supply source outside Brazil.
Success across metallurgical optimisation, resource expansion, improved feasibility study outcomes and supportive critical minerals market tailwinds represent a clear pathway to higher valuations and share price re- rating.
