It's never a bad idea to get some expert help when looking for shares that might be undervalued.

I've had a look at the research reports coming out of Morgan Stanley this week and picked out three which might be of interest.

Let's have a look.

Catapult Sports Ltd (ASX: CAT)

Catapult specialises in technology which can be used to track sportspeople on the field and during training, with the metrics used by coaches and athletes to improve performance.

The company released its full year results this week, and said its annualised contract value increased 28% year-on-year to US$133.8 million.

Chief Executive Officer Will Lopes said it was a transformational year for the company.

He added:

We set ourselves ambitious targets: maintain our organic growth rate, reinvest meaningfully in our platform, and stay focused through a period of significant M&A. We delivered on all of them. These results reflect the efforts of every person at this company, and to the world-class sports teams who trust us with their performance every day.

Morgan Stanley said it was "another strong result, with operating metrics all improving''.

They added:

Of particular note was the pleasing progress made with bedding down the IMPECT and Perch acquisitions. Combined, they were the first material acquisitions made in some time by Management. We think the FY26 result demonstrated CAT's ability to integrate and scale acquisitions effectively, with both IMPECT and Perch appearing to perform well post acquisition and contributing positively to growth, product breadth and cross-sell opportunities. This was achieved alongside delivering organic growth in the core business.

Morgan Stanley has an overweight rating on Catapult shares with a price target of $5.20 compared to $3.57 currently.

Bega Cheese Ltd (ASX: BGA)

An interesting takeaway from the Morgan Stanley research note on Bega is that they believe that the increased use of GLP-1 weight-loss drugs is a tailwind for the company, because it, "supports smaller, nutrient-dense, protein rich consumption occasions''.

They added:

This shift favours BGA's convenient dairy formats, supporting volume, pricing, and margins over time.

Morgan Stanley is forecasting better than 20% compound annual growth in earnings per share for Bega from FY25-FY28, "driven by branded mix improvement and supply chain consolidation benefits''.

The broker has a price target of $6.70 on Bega shares compared to $5.42 currently.

Goodman Group Ltd (ASX: GMG)

Goodman is due to report its third quarter results next week.

Morgan Stanley has got in ahead of time with a research note that has a price target of $36.15 on the shares compared to $30.37 currently.

The broker said they will be looking for good news out of the company.

Given the VA Consensus is at FY26 EPS growth of 10%, we would suggest that the market is somewhat anticipating an earnings upgrade. However, the probability of a data centre contract/s is less certain, and therefore would be a positive surprise if delivered.

The post Morgan Stanley names 3 ASX shares to buy appeared first on The Motley Fool Australia.

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

The diversified industrial company SGH Ltd (ASX: SGH) held an investor day this week, which gave analysts the opportunity to get a good handle on how the company is travelling.

Macquarie has issued a research note to its clients following the ASX 200 company's presentations, and it's fair to say they liked what they saw.

Macquarie said the company reiterated its full-year EBIT growth guidance of low to mid-single digits.

Disciplined growth

The Macquarie analyst team added:

SGH's drive toward continuous improvement across its businesses remains a core tenet, seeking incremental gains at scale across businesses. For Boral, it means EBIT margins >15%, Coates seeks to drive further gains in time utilisation from the current 62% and WesTrac to extract further aftermarket service productivity. AI is seen as a key enabler of execution.

Macquarie said SGH had been successful over time in acquiring and improving assets, then deleveraging and acquiring again.

They said it was clear that "SGH seeks to continue this formula, with an emphasis on Australia, even if it is open to offshore opportunities too – this is a shift in intent, without any specifics''.

They added:

The group seeks EBIT growth of 10% through the cycle, balancing organic and inorganic growth roughly equally, on average. SGH sees identified growth opportunities in Property development, Crux, data centre build-out and exposure to growth thematics in infrastructure (and residential building when the cycle improves), mining production and energy.

Macquarie said while macroeconomic conditions remained complex, SGH's execution remains strong, "and Boral likely continues to support the majority of near-term growth''.

They also said they remained focused on the company's M&A strategy.

Macquarie increased its price target on SGH marginally from $50.35 to $50.40, compared with the current share price of $41.90.

Gas focus

Fellow broker RBC Capital Markets also recently released a report on SGH, with a price target of $47.

RBC argued that a key to the stock's rerating would be the company's interest in the Crux project in Western Australia, a joint venture with global giant Shell.

As RBC says in a report published this week:

We believe SGH is likely to make an announcement on Crux, a gas project that it has a 15.5% stake in (Shell owns the balance) that will begin backfilling volumes in the Prelude Floating LNG terminal, which we believe will act as a positive catalyst for the stock. We conservatively expect the project to start producing gas in late (2H28), and have taken the view that it will hit full production in FY30.

RBC estimates that Crux would generate $350 to $375 million in EBITDA to SGH each year, "yet consensus forecasts show no step-change in group earnings through the ramp period".

SGH is valued at $16.74 billion.

The post How high does Macquarie think SGH shares will go? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
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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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Beating the market is a challenging proposition, so it pays to turn to the experts if you're looking for shares which might be undervalued.

I've had a look at the research coming out of Macquarie over the past week and selected three ASX shares which the analyst team thinks will do well, and which they believe can deliver about 50% upside, and 77% in one case.

Let's see who they're tipping to perform.

James Hardie Industries Plc (ASX: JHX)

The building products maker reported its full year results this week, and the shares initially fell after it was revealed  net profit attributable to shareholders was down 75% to US$104 million.

But the analysts have looked through the results, and picked up on the fact that underlying EBITDA was above the guidance range, and the synergies from the company's takeover of US company AZEK were being realised.

 The Macquarie team said:

Cost and operational execution was solid, with productivity benefits from operational improvements and plant optimisation (including a coming ~$25m from closures) helping offset volume pressure.

Macquarie said there were some soft elements in the business, and the US market looked challenging.

They reduced their price target on the company to $39.60, but this remains well above the $28.87 the shares were changing hands for on Friday.

Jumbo Interactive Ltd (ASX: JIN)

Macquarie has also cut its price target for this ASX share, but again, the price target is still much higher than where the shares are trading right now.

Jumbo is a lotteries technology and management company, and Macquarie said trackable Australian lotteries volumes were down 2% year on year.

Macquarie said the majority of Jumbo's revenue comes from a reseller agreement with Lottery Corp, which is up for renewal in August 2030.

The analyst team said Jumbo shares were trading on a valuation which suggested the renewal did not take place, "providing a free option on the outcome''.

Macquarie values Jumbo shares at $10.50 compared with $7.08 currently.

Web Travel Group Ltd (ASX: WEB)

Once again, Macquarie has downgraded its price target for this ASX share, but their target is particularly bullish on this travel operator.

Macquarie said Web Travel Group is exposed to the Middle Eastern market which presented risk at the moment, "as traveller caution remains high, and the region is having difficulties restimulating demand''.

The Macquarie team also said the company was exposed to foreign exchange headwinds from the strong Australian dollar and also mentioned the uncertainty around a recently-revealed audit of the company's Spanish operations.

They said:

Whilst near-term visibility is low due to travel market disruption and Spanish audit uncertainty, we remain constructive on WEB's ability to improve margins when the travel market recovers, as it scales over the medium term.

Macquarie has a price target of $4.34 on Web Travel Group shares compared with $2.37 currently.

The post Macquarie names 3 ASX shares to buy for 40%+ returns appeared first on The Motley Fool Australia.

More reading

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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 positions in and has recommended Jumbo Interactive. The Motley Fool Australia has recommended Jumbo Interactive. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Guzman Y Gomez Ltd (ASX: GYG) shares are charging higher on Friday after the company announced it would exit the US market.

The fast food operator said in a statement to the ASX that it would cease trading its restaurants in Chicago immediately.

Not up to scratch

The company said that while genuine progress had been made in the US market, the operations were not hitting the required benchmarks.

The company said:

GYG has been consistent and transparent about the thresholds the business needed to meet to prove concept in the US. Notwithstanding the progress made by the team on brand and guest experience, the financial performance of the US business has not been acceptable and is not meeting targeted hurdles.

The decision to exit the US market will cost the company US$30 to US$40 million.

GYG Co-Chief Executive Officer Steven Marks said:

I have always been confident in the differentiation of our food and guest experience, however this was not translating to an improvement in sales momentum. Having spent the last 3 months in the US, I realised this was going to take significantly more time and capital than we had expected. In assessing the trajectory of the current network, the Board and I have concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital.

The company said it was the board's view that the Australian business was in a solid position, with strong growth, "world class unit economics and a significant network growth opportunity''.

The company added:

The quantity and quality of sites in the real estate pipeline continues to grow and GYG remains on track to open 32 restaurants this financial year. In an update to its full year guidance, GYG expects to deliver Australia Segment underlying EBITDA of approximately $85 million in FY26, representing 29% growth on the prior year.

Future still looks bright

Mr Marks said the company had a long runway ahead of it as it sought to hit its long-term target of 1,000 restaurants and underlying EBITDA as a percentage of network sales of 10%.

The company said the decision to exit the US did not mean the company had lost faith in its international ambitions.

The company said:

The decision to exit the US does not alter the Board's conviction in the global appeal of the GYG brand, or in the long-term opportunity to expand into new geographies in a disciplined and deliberate manner. The performance of GYG's master franchise markets reinforces the Board's confidence. In Singapore and Japan, our master franchise partners continue to deliver strong sales growth and healthy unit economics. Both markets are planning new restaurant openings in the next 12 months, with Singapore opening its 24th restaurant earlier this week.  

Guzman Y Gomez shares were 15.4% higher in early trade at $20.86. The company is valued at $1.83 billion.

The post Why are Guzman Y Gomez shares surging more than 15% higher? appeared first on The Motley Fool Australia.

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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.

Shares in James Hardie Industries Plc (ASX: JHX) fell earlier this week when the company reported its full year results, and on the face of it it's not hard to see why.

While net sales came in at US$4.84 billion, net profit attributable to shareholders was down 75% to US$104 million.

However, the analyst teams at Macqaurie and Morgans have had a closer look at the results, and like what they see.

We'll get to what they are saying later. Firstly let's have a closer look at the James Hardie result.

Underlying results solid

Chief Executive Aaron Erter made the point that the company exceeded expectations in terms of underlying earnings.

As he said:

We delivered Adjusted EBITDA above our guidance range in the fourth quarter, reflecting disciplined execution and the strength of our business model in a challenging operating environment. Despite unfavourable weather in February and early March that impacted reported results and disrupted construction activity across key regions, the business delivered underlying performance that exceeded expectations.

Mr Erter said it was a transformational year for the company, including as it did the finalisation of the acquisition of AZEK.

He said the company was continuing to see progress in terms of cost and commercial synergies from that deal, "further strengthening our belief in the long-term value creation opportunity from the combination''.

He added that the company was forecasting another step up in earnings this year.

We also expect a meaningful step-up in Free Cash Flow to greater than $500 million in FY27. This will be driven by higher Adjusted EBITDA as we realize both cost and commercial synergies, a reduction in one-time integration and transaction-related costs, and continued discipline around capital spending and working capital. As these factors come together, cash conversion will improve, giving us greater flexibility to reduce leverage over time.

Shares looking like good value

The analyst team at Macquarie said the company's results beat expectations at an EBITDA level, and James Hardie's cost and operational execution was "solid".

Macquarie said James Hardie was expecting soft, but stabilising conditions in the US which was a negative, and downgraded their price target on the company from $41.10 to $39.60, still well above the current price of $28.43.

The team at Morgans has a price target on James Hardie shares of $39, reduced from $45.75 following the results announcement.

They note that while there is persistent softness across key markets, the company is fundamentally sound.

They said:

We continue to view JHX as the highest-quality building products exposure on the ASX with structural advantages in fibre cement and an enhanced footprint in exteriors through AZEK. FY27 should mark an inflection year as organic growth returns, pricing holds, synergies accelerate and leverage normalises. At the current valuation, JHX screens attractively relative to quality and medium-term growth.

The post How high could James Hardie shares go? Brokers have their say appeared first on The Motley Fool Australia.

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

Shares in both Hillgrove Resources Ltd (ASX: HGO) and Havilah Resources Ltd (ASX: HAV) are trading higher after the two companies struck a deal over a South Australian copper deposit.

The companies said in a joint statement to the ASX on Thursday morning that they had signed an agreement under which Hillgrove could earn an 80% interest in the Mutooroo Copper Project.

Hillgrove currently operates the Kanmantoo underground copper mine in the Adelaide Hills.

Hillgrove to earn in

Under the deal, Hillgrove can complete a prefeasibility study looking at the viability of processing Mutooroo ore through the Kanmantoo processing facility.

The companies said:

Hillgrove's Kanmantoo processing facility provides a potential lower capital intensity and lower execution risk pathway to develop Mutooroo's 192 thousand tonne of copper from the JORC Sulphide Mineral Resource Estimate. Subject to further test work and the outcomes of the PFS, Hillgrove believes Mutooroo has the potential to lift Hillgrove's Cu production beyond 20kt per annum.

Hillgrove said the prefeasibility expenditure would be phased to mitigate risk and would be fully funded from cash flow.

Under the agreement, Hillgrove will initially issue $5 million in shares to Havilah and then invest up to $10 million in new drilling over a period of up to 24 months.

Hillgrove will earn its full 80% interest on a final investment decision to go ahead with the project, at which time it will pay Havilah a further $35 million, of which between 30% and 70% will be cash.

Project ticks the boxes

Hillgrove Chief Executive Officer Bob Fulker said:

Mutooroo's high‑grade sulphide mineralisation, proximity to rail, and favourable logistics align strongly with Hillgrove's centralised processing hub model. Importantly, the capital intensity could be potentially lower compared to a standalone development, and execution risk could potentially be materially reduced by leveraging infrastructure, approvals and operational capability we already have in place. This transaction provides Hillgrove shareholders with a lower risk, capital efficient growth option at a time when new copper discoveries are scarce, and development costs globally continue to rise. The staged PFS approach to be funded out of Hillgrove cashflow ensures disciplined capital deployment with limited cash drain, with expenditure ramping up only as key technical assumptions are validated.

Havilah Technical Director Chris Giles said the deal had the potential to substantially reduce execution risk for Havilah shareholders.

The Mutooroo project is in South Australia, about 60km southwest of Broken Hill.

It is about 16km from the Transcontinental railway line and Barrier Highway, providing direct access to established freight routes across South Australia, the companies said.

In early trade, Havilah shares were 7.4% higher at 65 cents, while Hillgrove shares were 4.7% higher at 4.4 cents.

The post Shares in these 2 ASX copper companies are charging higher after a new deal was announced appeared first on The Motley Fool Australia.

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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.

Shares in AFT Pharmaceuticals Ltd (ASX: AFP) are trading higher after the company announced a 24% increase in profit on strong revenue growth.

Solid full-year effort

The company said in a statement to the ASX that net profit had increased to NZ$14.1 million on revenue of NZ$254.7 million, up 22%.

The company will pay a dividend of NZ2.5 cents per share and gave guidance for operating profit in FY27 of NZ$28 to NZ$32 million, up from NZ$24.4 million.

The company is also targeting increased revenue of NZ$300 million for the current financial year, with the company's reporting period running until the end of March.

AFT chair David Flack said it was another strong result, "reflecting the strength of our core Australasian business and the benefits of our increasing geographic and product diversification''.

He added:

We have continued to invest for long-term value creation – progressing international hubs, executing licensing opportunities, and advancing a portfolio of valuable innovative products that can support our ambition to exceed $300 million sales this financial year.

Revenue growth in FY26 was driven by continued momentum in Australia, steady expansion in New Zealand, and a growing contribution from AFT's International and Asian hubs as they scale.

The company said:

Australasia remained the cornerstone of AFT's earnings and cash generation, growing revenue by 16% to reach $210.5 million. In the Australian market we saw broad-based strength across OTC brands and ongoing uptake across prescription medicines. The growth was also supported by a steady stream of new launches and portfolio expansion which remains a key focus. New Zealand delivered steady growth with continued opportunities across key categories including allergy, dermatology and eyecare.

Expanding in known markets

The company said it was continuing its strategy of building international business hubs in markets that share similar commercial and regulatory dynamics to its Australasian operations.

The company said:

During FY26, the company continued to expand its footprint across the UK, Europe, North America, and South Africa, progressing each hub along the path from establishment to development. In the United Kingdom, AFT continued to broaden distribution of Maxigesic tablets (marketed as Combogesic) from Boots and SuperDrug to now include independent pharmacies. The initial launches of Combogesic IV in several London NHS hospitals continued to progress, with sales momentum linked to formulary inclusion.

In Europe, the company said it was making progress with a portfolio of injectables acquired from an insolvent company, "with updated regulatory dossiers and licenses now supporting planned EU launches that are expected to make a meaningful contribution in FY27''.

The company said it was well-funded, with net debt of $38.6 million at the end of March, within its target leverage range.

AFT shares were 2.4% higher in early trade at $2.93. The ASX healthcare company is valued at $299.9 million.

The post This ASX healthcare company's profit has rocketed 24% appeared first on The Motley Fool Australia.

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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.

Copper is already trading near record highs, but according to a new report from Pitt Street Research, there could be more good news to come for investors with an "extreme" copper crunch on the way.

Pitt Street has this week sent a research note to its clients, arguing that copper could be the best-performing metal in the 2020s, and has named two producers it says are well placed to benefit.

Let's have a look at what they're saying about copper supply first.

Deficits to grow

Pitt Street Research argues that copper has the potential to mirror gold's stellar performance, as "the emerging supply/demand gap … is only going to continue to grow''.

They added:

Global copper consumption is ~26.5Mt today, and the deficit is a modest ~200,000tpa. But consumption is forecast to rise sharply as EVs (~80kg copper vs ~25kg for ICE cars), renewable energy, grid infrastructure and data centres scale simultaneously. Bloomberg has estimated that demand will reach ~35Mt by 2035 and ~50Mt by 2050.  

Pitt Street said no major new world-class copper deposit had entered production at scale in more than a decade, and existing mines are ageing and ore grades are declining.

New discoveries also take 7-10 years to come into production, they said.

They added:

The crunch will mean significantly higher copper prices. We are already seeing an impact with LME copper prices up >50% in 18 months and believe more growth is to come. ASX will gain exposure to the upside in the copper price. However, not all copper companies are created equal. The companies that will do the best will be the companies that have high-quality projects in favourable jurisdictions with persistent operational performance.

Miners worth a look

In terms of ASX-listed copper producers, Pitt Street Research likes Evolution Mining Ltd (ASX: EVN) and Sandfire Resources Ltd (ASX: SFR).

While Evolution is mainly thought of as a gold producer, Pitt Street said it has strong copper exposure embedded in its high-quality assets.

Pitt Street said:

Ernest Henry is a large-scale iron oxide copper-gold (IOCG) deposit with a long mine life to at least 2040 and significant resource depth. The operation contains approximately 1.4Mt of copper and 2.8Moz of gold in resources, supporting long-term production of around 50kt copper per annum. Beyond Ernest Henry, Evolution also has exposure through Northparkes, creating a broader copper portfolio. Copper contributes approximately 25% of group revenue, with a strategic target of increasing this to 40% over time. This indicates a deliberate shift towards greater copper leverage.

And finally, to Sandfire, Pitt Street said it had diversified from a single asset producer into a diversified global copper company with producing assets in Europe and Africa.

Pitt Street said:

All things considered, we believe Sandfire represents a direct, scalable and relatively low-cost copper exposure, with both operational stability and growth. In the context of the copper price scenarios, it offers strong leverage in the base and bull cases, while remaining resilient in downside environments due to its cost position.

The post With an "extreme" copper crunch coming, here are 2 shares to buy appeared first on The Motley Fool Australia.

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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.

Coal miner New Hope Corporation Ltd (ASX: NHC) released a quarterly production report this week, prompting the broker community to take a closer look at the company.

Interestingly, the brokers don't agree on whether the company is fully valued at the moment, with Macquarie breaking ranks with an outperform rating on the shares.

We'll have a closer look at some of the broker share price targets for New Hope shortly.

First, let's have a look at what they announced this week.

Robust production numbers

The company said in its quarterly report that its coal production was "strong", coming in at 4.3 million tonnes for the quarter, up 5% on the previous quarter.

Coal sales were 10.4% higher at 3.2 million tonnes, while the average realised price inched up from $139 per tonne to $140.70 per tonne.

New Hope said the underlying EBITDA for the quarter was $130.1 million, up 21.7% on the previous quarter, and the company had cash of $571.6 million.

The company said the conflict in the Middle East had been supportive of higher coal prices.

It said:

During the quarter, geopolitical conflict in the Middle East caused disruption and uncertainty to global energy markets. Global coal markets observed favourable price movements during the quarter, driven by concerns surrounding Middle Eastern LNG availability and shifting gas-to-coal for power generation. Japan, South Korea and Taiwan (JKT) increased coal imports, prioritising energy security amidst LNG supply disruption. Japan and South Korea have eased restrictions on older coal plants and postponed planned retirements. The Company anticipates increased demand in the coming quarter, as the Northern Hemisphere moves out of the shoulder season and into Summer. Looking ahead, the Group's forward sales book remains well supported with the majority of production for the next three months sold.

Broker dissent

In terms of the brokers that follow the company, both Bell Potter and Morgans have a hold recommendation on New Hope shares.

Bell Potter said they had increased their price target for the company from $4.50 to $5, after they applied "a 10% premium to our sum of the parts valuation with energy security concerns exacerbated by recent geopolitical issues''.

Their price target is still below the current share price of $5.44, however.

Morgans has a price target of $5.25 on the shares, up from $5 previously, saying New Hope "continues to be well-positioned to deliver low-cost, high-margin cash flow from its operations''.

They added:

We believe coal prices can rebound meaningfully above consensus over time, and NHC is positioned to capitalise, driving stronger cash flow and shareholder returns.

Macquarie, however, is an outlier with a bullish price target of $7 on New Hope shares.

Macquarie said:

Improving (stabilising) performance at Bengalla (hitting target run rates) and ongoing ramp-up at New Acland positions New Hope well in what could become a tighter market for thermal coal as global energy disruptions continue from the Middle East conflict.

The post Analysts are split over whether New Hope shares are a buy or a hold appeared first on The Motley Fool Australia.

More reading

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

Morgans has released a research report into the uranium market, and the takeaway is that Australian-listed uranium miners are well placed to take advantage of a global shortage of the resource.

Morgans has a buy rating on Paladin Energy Ltd (ASX: PDN) and NexGen Energy Ltd (ASX: NXG), and an accumulate rating on Boss Energy Ltd (ASX: BOE), with bullish price targets on the first two companies. We'll get to the specifics of those later.

Firstly, why do they think the market for uranium will perform well?

Demand exceeding supply

The Morgans team said uranium has moved to a "structurally constrained market", with two decades of low uranium prices, "leaving an industry short of capital, development-ready projects and spare capacity just as reactor demand begins to accelerate''.

Morgans said the current bull market is different from previous cycles, which were driven by temporary supply distortions.

They said:

Today's upswing is being driven by harder‑to‑reverse forces: a structural supply deficit, a geopolitical reshaping of nuclear fuel chains, and a demand surge with no credible non‑nuclear substitute.

The Morgans team noted that China currently has 38 nuclear reactors under construction, while the US is targeting 400 gigawatts of new nuclear by 2050.

They added:

More than 20 nations have pledged to triple global capacity by 2050, with China, France, India, Russia and the US alone underpinning close to 1,000 GW of forecast capacity by mid-century. Every one of those reactors requires uranium from tightening global supply. Over the past five years, utilities have contracted materially less uranium than reactors consumed, creating a large and growing unfunded supply gap. With reactor demand set to accelerate into 2040, amid decarbonisation pressures, energy security concerns and AI‑driven power growth, nuclear is emerging as the only scalable, zero‑carbon baseload option.

Shares looking cheap

On the company front, Morgans said Paladin offered both near-term production and a world-class development asset.

They noted that the company's Langer Heinrich mine was ramping up towards its nameplate capacity of six million pounds per year.

They added:

Bolted onto that producing asset is Patterson Lake South in Canada, a fully-owned, bottom-quartile-cost development project backed by a completed feasibility study.

Morgans has a price target of $13.05 on Paladin shares compared with $10.44 currently. The shares are currently up 85.7% over 12 months.

Regarding NexGen Energy, Morgans said it was a single-asset company at the moment, "but that asset is Rook I, one of the most consequential undeveloped uranium deposits on the planet''.

Morgans said at peak production, Rook I would deliver 25 to 30 million pounds of uranium oxide per year.

They added:

The project is fully permitted, with construction imminent, and positioned in the bottom quartile of the global cost curve. In a market chronically short of Tier-1 supply, Rook I is the best answer in decades.

Morgans has a price target of $20.80 on Nexgen, compared to $14.96 currently. Nexgen is up 79.7% over the past year.

The post Up about 80% this year, these ASX uranium stocks are still a buy appeared first on The Motley Fool Australia.

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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.

Ora Banda Mining Ltd (ASX: OBM) recently updated the market about a number of development programs it has on foot, prompting the analysts at Macquarie to take a closer look at the company.

Macquarie this week issued a new research report on Ora Banda, with a bullish price target which we'll get to shortly.

First, let's look at what the company announced.

Looking to ramp up production

Ora Banda has an ongoing program called Drive to 300, which is an "aspirational" target for the company to double its gold production to 300,000 ounces per year over a three-year period.

This week the company signed off on three key developments to bring it closer to this aspiration.

The first was giving the go ahead for a new, three million tonne per year processing plant at the company's Davyhurst mine, at a cost of $375 million.

Those works are planned to start in early FY27, with commissioning scheduled for the third quarter of FY28.

Ora Banda added:

The Company intends that the existing Davyhurst plant will continue to operate during construction of the new plant and may continue to operate subsequently, depending on ore availability and economics.

The second project given the go-ahead was a third underground mine at the company's Waihi operations at a cost of $90 million, with the portal to be established in the second quarter of FY27, "with focus on fast-tracking development into the high-grade 'Golden Pole' lode''.

That project is expected to reach steady state production in the first quarter of FY28.

The company added:

Additionally, accessing Waihi underground provides Ora Banda with the opportunity to establish underground drill platforms, allowing for rapid, cost-effective extensional drilling similar to previous campaigns at Riverina and Sand King.

The company has also replaced its existing $50 million credit facility with a $200 million facility, giving it increased flexibility as it ramps up operations.

Ora Banda's Managing Director, Luke Creagh, said:

The Drive to 300 is the exciting next phase for Ora Banda, building on earlier success with the achievement of to Drive to 100 and Drive to 150. This doubling of production is currently expected to be capable of being internally funded and has the potential to add material value and position Ora Banda as a long-term sustainable gold business.

Shares looking like good value

The Macquarie team said Ora Banda's production outlook was higher than their expectations, due to their plan to keep the existing Davyhurst processing plant operating alongside the new one.

They said the company was "in a strong position to fund the new mill and underground using balance sheet and cashflow generation'', with total liquidity on hand of $432 million.

Macquarie said Ora Banda was "an attractive value proposition and the focus now moves to execution and delivery''.

They have a price target of $1.70 for the company, compared to its current price of $1.40.

Ora Banda is valued at $2.71 billion.

The post Macquarie says this mid-tier ASX gold miner can pile on more than 25% appeared first on The Motley Fool Australia.

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

RBC Capital Markets has initiated coverage of SGH Ltd (ASX: SGH), which is a diversified industrial company that owns Boral, Coates, Westrac, and various gas-producing investments.

The broker is bullish on the company's shares and has an outperform rating on them. We'll get to the specifics of their share price target later.

Firstly, let's look at why they're keen on the company's prospects.

Sum of the parts more valuable

RBC says the company is well diversified across infrastructure, building, resources, energy (including through part-ownership of Beach Energy Ltd (ASX: BPT)), and media.

Key to a re-rating in the stock, however, is the company's interest in the Crux project in Western Australia, which is a joint venture with global giant Shell.

As RBC says in a report published this week:

We believe SGH is likely to make an announcement on Crux, a gas project that it has a 15.5% stake in (Shell owns the balance) that will begin backfilling volumes in the Prelude Floating LNG terminal, which we believe will act as a positive catalyst for the stock. We conservatively expect the project to start producing gas in late (2H28), and have taken the view that it will hit full production in FY30.

RBC estimates that Crux would generate $350 to $375 million in EBITDA to SGH each year, "yet consensus forecasts show no step-change in group earnings through the ramp period''.

RBC has valued the Crux stake at $1.2 billion, or $3.20 per share.

The broker also says the company's exposure to infrastructure nationally remains well-positioned.

RBC said:

Concern around an East Coast infrastructure slowdown is reasonable, however overdone in our view. Whilst VIC is particularly weak and unlikely to change in the short to medium term, NSW infrastructure is expected to be stable whilst QLD is growing. Whilst the infrastructure sector may be in an Airpocket, we do not think the business will suffer from debilitating indigestion, such that 15.6 PE presents an attractive entry point.

SGH also owns Westrac, which is the exclusive Caterpillar dealer in Western Australia and New South Wales.

RBC said SGH is currently trading at a discount to its peer group, indicating there should be some upside in the stock.

RBC said:

We have valued SGH through both a short- and long-term lens. The construction market that SGH is exposed to through Boral and Coates is inherently cyclical, as is the resources sector that WesTrac is exposed to. On top of that, SGH's energy exposures through Beach and Crux also introduce year-to-year volatility that must be captured through a short term, Sum of the Parts valuation. Separately, the business has longevity whose assets must be recognized via a net present value valuation – Boral's quarries, WesTrac's highly sought after exclusive contract with Caterpillar, Coates' dominant market position with key customers and in key geographies.

RBC has calculated a price target of $47 for SGH shares, compared with $40.82 currently. The company also pays a 1.6% dividend yield.

SGH is valued at $16.36 billion.

The post How high does RBC Capital think SGH shares will go? appeared first on The Motley Fool Australia.

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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.

Geopacific Resources Ltd (ASX: GPR)'s Woodlark gold project in Papua New Guinea would generate more than $6 billion over the life of the mine, a new study published today says.

Robust project economics

The company released its definitive feasibility study into the proposed gold mine this morning, saying the study "confirms Woodlark as a technically robust, economically attractive, long-life open pit gold development, forecast to generate strong free cash flow and rapid capital payback''.

The study says the mine will generate revenue of $6.1 billion in total, with post-tax net cash flow of $2.5 billion, calculated at a gold price of $5500. The gold price is currently $6312.

The mine is expected to have a payback period of about 18 months and an all-in sustaining cost of production of $ 1,966 per ounce.

The company said:

The production schedule prioritises near-surface higher grade material during the early years of operation, supporting strong eary cash generation and rapid capital payback.

The definitive feasibility study is based on a 1.2 million ounce gold reserve.

The open-pit mining project is expected to cost about $650 million to bring into production.

The company said it would now engage with financing partners "and assess a range of funding solutions''.

Geopacific Resources Managing Director Hamish Bohannan said:

The completion of the DFS marks a major milestone for the Company and confirms Woodlark as a technically robust, long-life project capable of delivering strong margins and significant free cash flow. It comes at a time of increasing international interest in resource development and infrastructure investment in PNG, reflecting the country's growing strategic importance as a destination for large-scale resource projects and a key supplier of precious metals to global markets. The Woodlark Project is well positioned to contribute to this development landscape while delivering long-term value for shareholders and stakeholders in PNG. Importantly, the Project benefits from a high proportion of Proved and Probable Reserves, established permitting and significant prior technical work which provides a strong foundation as we advance towards development.

Mr Bohannan said the company was targeting a final investment decision on the project by late 2026.

The Woodlark mine is expected to produce for 12 years with 35.6 million tonnes of ore mined.

The project is located on Woodlark Island, about 600km east of Port Moresby.

More exploration to come

The company said there were further near-mine targets that could also result in new resources.

The company said:

Large-scale copper-gold porphyry targets on Woodlark Island remain completely untested, providing a potentially company-making discovery opportunity layered on top of the existing gold project.

Geopacific Resources is valued at $153.9 million.

The post A new PNG project could generate more than $6 billion once in production, this ASX gold company says appeared first on The Motley Fool Australia.

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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.

Brambles Ltd (ASX: BXB) shares have had a shocker of a week so far, plumbing new 12-month lows after the company significantly downgraded its outlook for the full year.

The question is, does that mean the shares are now going cheap, or is there more pain to come?

I've canvassed the views of three major brokers, and all believe there's some upside in the share price from where Brambles shares are now, but they differ widely in their outlook.

I'll get to their specific share price targets shortly. Firstly, let's recap Brambles' big announcement this week.

Major cost pressures

One of the main features of the announcement was that Brambles was having to spend more on repairing its pallets to bring them up to standard for customers who were increasingly automating their processes.

Brambles said it was progressively increasing its repair quality to meet this demand, which had contributed to creating a bottleneck.

The company said:

During April 2026, this focus on quality consistency has coincided with short-term repair capacity constraints in parts of Brambles' US subcontractor service centre network which Brambles expects to be resolved by the end of 1H27. These short-term repair capacity constraints have been driven by subcontractor turnover, labour availability challenges and the additional time required to repair pallets consistently to a higher standard. At the same time as repair capacity tightened, Brambles experienced higher than anticipated customer demand.

Brambles said there was a "material" cost increase over the short term. The company said it was also buying another two million pallets in the fourth quarter, with more purchases expected early in FY27.

As a result of these various elements, Brambles downgraded its sales revenue growth forecast to 2% to 3%, down from 3% to 4%, and downgraded its underlying profit growth forecast to 3% to 5%, down from 8% to 11%.

Shares appear oversold

The team at Macquarie have run the ruler over the changes at Brambles and has reduced their price target on the shares from $23.35 to $18.60.

Macquarie said:

A need to invest incrementally in customer outcomes has been a concern for us. Resolving this issue presents ongoing earnings risks, especially if full mitigation requires price adjustment. We think multiples will remain pressured.

The team at Morgans came up with a similar share price target of $18.70.

They said the trading update was disappointing, while noting that Brambles' US$400 million share buyback, also announced this week, would give the share price some support.

Morgan Stanley was an outlier among the brokers with a price target of $28 on Brambles shares.

They noted that cost headwinds should ease by the end of the first half of FY27, "though further demand spikes and subcontractor exits remain key risks''.

Brambles is valued at $23.74 billion.

The post After this week's sell-down, is it time to buy Brambles shares? appeared first on The Motley Fool Australia.

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

Bapcor Ltd (ASX: BAP) recently delivered another weak trading update, which has pushed its shares even lower, with the stock now more than 90% down over a 12-month period.

The question is, does the share price weakness now represent good value buying, or is it still time to stay on the sidelines?

I've canvassed the opinions of three major brokers and will shortly reveal their share price target for the company.

Conflict derails momentum

First, let's have a look at Bapcor's recent trading update.

The auto parts and accessories retailer said in its update released last week that it had "positive momentum from turnaround activities implemented since the release of the 1H26 results''.

But it also warned that trading in its second half had been negatively impacted by the war in the Middle East.

The company said:

Bapcor has delivered improved sales momentum, with sales growth in February 2026 to April 2026 across all business segments versus the prior comparative period (pcp). This is a turnaround from the declines evident across all business segments in the period from July 2025 to January 2026 versus the pcp.     

But while the February to April period was positive, "trading conditions have materially deteriorated since late March 2026 with the commencement of the Middle East conflict and the increase in interest rates''.

The company therefore reduced its FY26 earnings guidance to $62 to $68 million, down from $74 to $79 million.

Bapcor Managing Director Chris Wilesmith said:

We are pleased with the positive momentum of the turnaround, which has been delivered through decisive actions we've taken to improve pricing, stock availability and team engagement. This is despite the challenging external environment which was not contemplated when we began this turnaround, and which has slowed the rate of improvement contemplated in our previous guidance. We will continue driving initiatives during the important trading months of May and June.

The company said net debt at the end of April was about $168 million, and the current trading conditions could give rise to a non-cash impairment at the end of the financial year.

Analysts still wary

Following the update, brokers have revised their price targets for Bapcor shares, which are currently changing hands for 36.75 cents.

Macquarie reduced its price target for the company from 61 cents to 44 cents.

They said:

Management remains focused on executing strategic initiatives to improve operating and financial performance. Given the softer trading conditions from the Middle East conflict and higher rates, some initiatives will take longer to execute on and hence see the benefits. Maintain Neutral.

Morgans, in a note titled "A long road back", said it was "Another disappointing, but largely unsurprising update from BAP''.

Morgans has a price target of 41 cents per share on the company.

Morgan Stanley, meanwhile, has a very bearish price target of 25 cents on the shares.

Morgan Stanley said:

We see BAP's Autobarn as sub-scale vs Supercheap Auto (SCA) and Repco, with less scope for command and control with a franchise network. We also see the range as less DIY and more discretionary vs SCA and especially vs Repco, a concern with a softening consumer.

Bapcor is valued at $248.9 million.

The post Down more than 90% over a year, is it time to buy Bapcor shares? appeared first on The Motley Fool Australia.

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

Australian superannuation funds bounced back in April, delivering a solid 2.6% return for the month according to Chant West, as markets around the world returned to growth.

Welcome reprieve

The industry analyst said that the boost in April went a decent way to recouping the 3.2% lost by funds in March, with the figures calculated for funds with 61-80% of their allocation in growth assets.

Chant West said further:

With international markets also up in May so far, Chant West estimates that with just six weeks remaining in FY26, the median growth fund return is sitting at 6.4%. This follows three consecutive years of very strong performance – 9.2% in FY23, 9.1% in FY24 and 10.4% in FY25.

Chant West Head of Superannuation Investment Research Mano Mohankumar said the April share market rally was driven by the ceasefire in the Middle East and solid corporate earnings in the US.

He added:

Over the month, developed market international shares returned a lofty 9% in hedged terms, led by the technology and communications services sectors amid ongoing investor enthusiasm for AI. With the Australian dollar appreciating against most major currencies, the return in unhedged terms was more modest, but still healthy at 4.4%. Emerging markets shares performed even better, gaining 9.3% in unhedged terms. While not reaching the same heights, Australian shares still generated a solid gain of 2.3%. With the risk-on sentiment, returns from bonds were flat with Australian and international bonds up 0.1% and 0.3%, respectively.

Mr Mohankumar said the turbulence in markets over the past couple of months was a timely reminder that superannuation is a long-term investment.

Members who panicked in March and switched to cash or a lower risk diversified option, not only turned paper losses into real ones, but also missed out on the subsequent market rebound. Missing even short periods of strong returns can have a significant impact on retirement outcomes due to the power of compounding.

Chant West figures show that for the financial year to date, all growth asset allocations have returned 7.5%, high growth have returned 6.5% and growth have returned 6%.

Balanced funds have returned 4.8% and conservative allocations have returned 3.6%.

Long-term results are solid

Mr Mohankumar said since the introduction of compulsory super in 1992 the media growth fund had returned 8% per annum.

The annual CPI increase over the same period is 2.7%, giving a real return of 5.3% p.a. – well above the typical 3.5% target. Even looking at the past 20 years, which includes three major share market downturns – the GFC in 2007-2009, COVID-19 in 2020, and the high inflation and rising interest rates in 2022 – super funds have returned 6.6% p.a., which is still ahead of the typical objective.

The post How did Australian super funds fare in April after steep falls in March? appeared first on The Motley Fool Australia.

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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.

The next 12 months will be a "formative period" for True North Copper Ltd (ASX: TNC), Morgans says, as they tip the shares to more than triple in value.

Morgans released a new research note on True North yesterday, followed by an exploration update from the company today.

More positive results

The company said it had completed a geophysics program at its flagship Mt Oxide project in North Queensland, and "the results have expanded the potential strike of the Aquila copper-cobalt-silver discovery and generated additional high-priority drill targets along the Mt Gordon Fault Zone''.

The company said drilling at the Aquila discovery had shown a strong correlation between "IP chargeability and conductivity anomalies and broad zones of shallow copper-cobalt-silver sulphide mineralisation''.

The new IP survey expanded the chargeability anomaly to about 500m north of current drilling, "highlighting further growth potential within the emerging copper-cobalt silver system''.

The company added:

The Phase 1 IP program has provided important targeting data to support refinement of the next drilling phase at Mt Oxide, including extension drilling at Aquila and testing of newly identified parallel structures along the broader mineralised corridor.  

True North Managing Director Andrew Mooney said:

The completion of the Phase 1 IP geophysics program marks another important step in our strategy to systematically grow the Mt Oxide Project and unlock the broader scale potential of the system. Extending the Aquila IP anomaly a further ~500 metres north has now grown the target to more than ~1.5 kilometre in strike extent, with mineralisation and geophysical anomalies remaining open along strike and at depth beyond current drilling. This is a highly encouraging result and further reinforces the significance of the new high-grade Aquila copper-cobalt-silver discovery.

Shares looking cheap

Morgans said in its research note to clients that outside of the Mt Oxide project, it expected recent drilling at the company's Cloncurry Hub project to support operations, which could produce about 9000 tonnes of copper per year.

Morgans said:

TNC offers exposure to a staged copper growth platform, combining near-term development optionality at Cloncurry with district-scale exploration leverage at Mt Oxide. We are attracted to TNC for: 1) a clearly defined three-pillar strategy across development, growth and discovery; 2) material resource growth potential at Mt Oxide; 3) exploration upside across multiple projects; 4) infrastructure-rich operating environment; and 5) experienced management with relevant base metals development and operating expertise.  

Morgans has a speculative buy rating on True North Copper and has upgraded its price target from $1.20 to $1.30 due to higher expected gold credits.

True North shares are currently changing hands for 40 cents. The company is valued at $60.9 million.

The post Morgans is tipping this ASX copper company could more than triple in value appeared first on The Motley Fool Australia.

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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.

Shares in 4DMedical Ltd (ASX: 4DX) jumped more than 8% in early trade after the company said a study validating its key technology had been published in a prestigious journal.

Strong endorsement

4DMedical said in a statement to the ASX that a study evaluating its technology, CT:VQ, had been published in the American Journal of Respiratory and Critical Care Medicine – the world's leading respiratory medicine journal.

 The company went on to say:

The study included patients with severe emphysema undergoing bilateral lung volume reduction surgery (LVRS) and analysed pre‑operative non‑contrast inspiratory and expiratory CT scans using quantitative imaging techniques, including CT‑derived perfusion (CT:VQ). The authors conclude that integrating functional data from CT:VQ perfusion and anatomical (emphysema) information from routine CT imaging can enhance and streamline patient selection for LVRS, increasing successful outcomes from 48% to 76%, with potential to reduce reliance on additional perfusion imaging studies and improve clinical outcomes.

4DMedical said its technology was designed to integrate into routine radiology workflows and "can analyse historical CT scans, enabling functional assessment earlier in the care pathway, including during LVR patient selection discussions''.

The company added:

LVRS is a specialised surgical intervention typically performed at advanced medical centres (AMCs). Efficient identification of suitable candidates is critical, as outcomes are strongly influenced by underlying lung physiology, including the distribution of emphysema and regional perfusion. By improving pre‑operative selection, functional CT‑based assessment has the potential to reduce unnecessary invasive procedures and optimise utilisation of high‑value surgical respiratory services.

4DMedical said hospital margins from LVRS were highly sensitive to patient selection, and its technology directly enhances LVRS economics by enabling earlier, non-invasive identification of optimal candidates.

The company added:

By reducing reliance on additional imaging, avoiding low‑value surgical interventions and improving post‑operative outcomes, functional CT imaging supports higher procedural success rates, more efficient use of surgical infrastructure and improved contribution margins per case, reinforcing LVRS as a precision‑led, high‑value service line for advanced medical centres.

The company is also presenting the data at the ATS International Conference 2026 in Orlando, Florida, which is being held this week.

Shares fluctuating

While 4DMedical shares have retraced from highs around $6.80 in mid-April, shareholders in the company are still sitting on gains of more than 1000% for the past 12 months.

The shares traded as high as $4.35 early on Tuesday, up 8.7%, before sliding to be 1.8% lower at $3.93, with 3.2 million shares traded.

The company is valued at $2.38 billion.

The post Why did 4DMedical shares charge higher today, then drop? appeared first on The Motley Fool Australia.

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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.

The team at Shaw and Partners has been keeping a close watch on the small cap and emerging side of the market recently, and has come up with plenty of ideas around companies they see as good value.

Today I've selected two in the technology field, albeit very different companies, to see what the analyst team at Shaw and Partners are saying.

Let's have a look.

Smart Parking Ltd (ASX: SPZ)

This company does as the name suggests – it supplies parking monitoring and management systems and now has offices in the UK, Denmark, Germany, Australia, New Zealand, and the US.

The company only entered the US in March of last year, after it acquired Peak Parking for $56.9 million.

The company said in its most recent half-year report that it had added 53 new automatic number plate recognition sites globally during the half year, while revenue jumped from $32 million to $62.8 million.

Net profit increased from $3.9 million to $4.3 million.

Shaw and Partners said in their recent note to clients that "a strong buying opportunity seems to have emerged in SPZ as the March quarter trading update paints a picture of solid performance notwithstanding a share price drop of over 40% since February''.

The analyst team said the US represented a large potential market for the company, which it was just breaking into.

They added:

The roll-out of SPZ's low-cost, user-friendly, accurate parking technology into the relatively untapped parking segment of unmanaged, small surface lots (attached to retailers, hotels, fast food chains, and high-density transportation hubs etc) could add significant value. SPZ is confident in its ability to launch the service and has now hired a sales team.

Shaw and Partners has a price target of $1.55 on Smart Parking shares compared with 83.5 cents currently.

Atturra Ltd (ASX: ATA)

This company presented at the Shaw and Partners TechRise conference recently and Chief Executive Officer Stephen Kowal gave a "confident update" according to the Shaw analyst team.

Shaw and Partners said:

Management implicitly reaffirmed FY26 guidance and agreed the business is returning to growth in 2H, with accelerating demand across data, security and AI-readiness work offsetting weakness elsewhere and supporting confidence into FY27/FY28. Margins are expected to benefit from restructuring and automation-led managed services efficiencies, while improving cross-sell traction and stronger momentum across IP products (ACP and Scholarian) are incrementally strengthening the medium-term outlook.

Shaw and Partners has a price target on Atturra shares of $1.15 compared with 45 cents currently. Atturra is valued at $171 million.

The post Shaw and Partners says these two ASX small-cap companies could have some serious upside appeared first on The Motley Fool Australia.

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

Brazilian Rare Earths Ltd (ASX: BRE) plans to demerge its Amargosa bauxite and gallium project into a new company, which will launch after an initial public offer worth up to $50 million.

Shareholders to share the wealth

The new company will be known as Alurion Resources Ltd, and Brazilian Rare Earths shareholders on the register on an as-yet unannounced record date will be given 0.5607 shares in Alurion for each share they own.

Brazilian Rare Earths shareholders will also be given priority for new shares under the initial public offer.

The company's board said in a statement to the ASX on Monday that separating the Amargosa project into a new company with its own focused management team made sense.

The company said:

The proposed demerger affords Amargosa the focus and flexibility it needs to be progressed rapidly, and reflects a disciplined portfolio strategy that separates two large-scale, strategically important mineral platforms with different development pathways.

The company added that bauxite was in high demand, with new sources needed globally.

Bauxite is the primary raw material used to make alumina, which is then used to produce aluminium. The world's seaborne bauxite supply chain has become increasingly concentrated, with Guinea now supplying approximately 70% of China's imported bauxite feedstock. This supply concentration highlights the strategic importance for new, high-quality bauxite supply from reliable mining jurisdictions.

Advanced project status

Brazilian Rare Earths said Amargosa was not an early-stage project, with exploration work by Rio Tinto Ltd (ASX: RIO) and, more recently, by Brazilian Rare Earths itself, having defined a 568 million tonne resource, including 98 million tonnes of direct-ship bauxite at a grade of 41.9%.

The company added:

The scale and quality of the resource provide the foundation for a low-complexity initial development pathway and potential longer-term expansion opportunities. The first-stage Scoping Study development plan is simple by design: mine and ship bauxite directly, without building a beneficiation plant, tailings facility or major fixed infrastructure. This development pathway is designed to minimise upfront capital intensity, reduce time to market and position Amargosa in the first quartile of the global cost curve.

Brazilian Rare Earths said the scoping study envisaged a 1.2 year payback period and a development cost of just US$119 million.

Brazilian Rare Earths Managing Director Bernardo de Veiga said regarding the plan:

The proposed demerger and public listing of Alurion Resources is a disciplined value-unlocking transaction for BRE shareholders and the right structure for the leading Amargosa Bauxite-Gallium Project. Amargosa is a large-scale bauxite-gallium province, with the resource base, grade, logistics and low-capex first-stage development pathway to support a compelling standalone investment proposition. Establishing Alurion as a dedicated company gives Amargosa the capital focus, specialist leadership and strategic mandate to advance its development pathway. For BRE, the demerger also sharpens our corporate focus. It allows Alurion to advance Amargosa as a leading bauxite and critical minerals development company, while BRE concentrates its development and execution capabilities on advancing one of the world's most important rare earth and critical minerals provinces.

Brazilian Rare Earths shares were 4.9% higher on Monday at $5.60.

Canaccord Genuity recently issued a share price target for the company of $8.

The post Which ASX rare earths company is spinning out a new aluminium company? appeared first on The Motley Fool Australia.

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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.