Both of these ASX mining companies have been downgraded by the brokers that cover them, yet their price targets remain well above their current trading levels.

Let's see what the brokers are saying about them.

Meeka Metals Ltd (ASX: MEK)

This company has just completed a $40 million capital raise at 10 cents per share, with the money to be used to fund its next phase of growth.

More specifically, the money will be used to fund the company's recent Mt Holland project acquisition, the development of its new Turnberry underground mine which will start in October, additional growth drilling and to strengthen working capital.

Meeka generated $160.8 million in revenue in FY26 and made a net profit of $51.3 million.

Broker Morgans said the company's recent guidance of 7000-7500 ounces of gold recovered in the September quarter was below their estimate of 9800 ounces.

They added:

We maintain our BUY recommendation on MEK with a revised price target of 17 cents per share. MEK is transitioning to a two-mine underground operation, with Turnberry underground (first ore Jan-27) adding a second ore source to Andy Well. While the September quarter miss has tempered near-term expectations, the Turnberry ramp-up, ore sorter performance and drilling at depth are catalysts that could rebuild confidence and narrow MEK's discount to net asset value.

Morgans' price target is 87% higher than the current share price of 9.1 cents (at the time of writing).

American Rare Earths Ltd (ASX: ARR)

This company recently updated the scoping study for its Cowboy State mining project, which estimated an after-tax net present value of US$1.07 billion and a production rate of 2500 tonnes per year of neodymium and praseodymium (NdPr) oxide.

The mine is now expected to run for 26 years, up from 20, and cost US$900 million to bring into production.

American Rare Earths Chief Executive Officer Mark Wall said:

Our ambition is to turn Halleck Creek's resource scale into a long term source of rare earth materials for American industry. This study gives investors a clearer view of the first development phase and the work that is moving it forward. We are now evaluating a mine with 50% greater processing capacity, 36% more annual NdPr oxide production and a longer operating life than the 2025 base case. That is a substantial platform from which to advance the project.

Bell Potter analysts said in their research note on the company that Halleck Creek remains one of the largest rare earth resources in the US.

The broker has a 55 cent price target on the company, which sits well above the current price of 36 cents (at the time of writing).

If achieved, this would represent a 52% return.

The post 2 ASX mining companies tipped to jump 52% and 87% 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.

ASX health technology company Blinklab Ltd (ASX: BB1) is entering an interesting phase, broker Morgans believes, with several share price catalysts soon to emerge.

New technology opening up a large market

Blinklab produces smartphone software to diagnose conditions such as autism and ADHD. Morgans noted that readouts from four exploratory programs are soon to be published.

Blinklab has almost fully recruited participants for a pivotal study for autism, with Morgans saying this should be completed by the end of the year, with submission to the US Food and Drug Administration expected in the first quarter of calendar 2027.

Morgans added:

BB1's technology has broad applications across additional indications (adult autism, dementia detection, ketamine-based pharma intervention) and preliminary data is expected to read out over the next 12 months adding to the cadence of news flow. Recently, BB1's European ADHD study delivered positive results. A US pilot is due to start in 2QCY27, ahead of a pivotal study mirroring the autism path. We agree with management that this presents a significantly larger commercial opportunity than autism spectrum disorder.

The company also recently announced a major appointment, with Dr Raphael Bernier joining the board.

Dr Bernier was the former clinical lead for mental health at Apple Health. The company said he brought first-hand experience translating clinical science into digital products at a global scale.

Blinklab said at the time:

Dr Bernier brings a rare combination of clinical practice, internationally recognised research leadership and commercial product-development experience. His appointment is intended to deepen the Board's expertise as BlinkLab progresses its pivotal U.S. FDA 510(k) program for BlinkLab Dx1 and prepares for clinical adoption and commercialisation in the United States, subject to regulatory clearance. Dr Bernier recently retired from Apple Health, where he led the clinical development of the Mental Wellbeing app for iPhone, iPad and Apple Watch. He also conducted early-stage research across released and unreleased products in the Apple ecosystem and supported the rollout of additional products relating to child development and cognitive accessibility.

Morgans said there were significant market opportunities in the diagnosis of autism and ADHD, and Blinklab also had the opportunity to expand into other conditions.

Shares looking cheap

The broker has a 12-month price target of $1.76 on Blinklab shares compared to 66 cents currently.

If achieved, this would be a 166% return. The shares are well down from their 12-month high of $1.10.

Blinklab is valued at $114.6 million.

The post This ASX health technology company could more than double in value: Broker 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 Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The big four banks have traditionally been seen as safe havens for Australian investors. However, a new research report from broker Jarden argues that they are all overvalued at current share prices.

Jarden only has an overweight recommendation on ANZ Group Holdings Ltd (ASX: ANZ). Meanwhile, it has sell ratings on Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corporation (ASX: WBC).

Federal Budget having an impact

The broker argues that the federal government's changes to capital gains tax and negative gearing rules for property investors will at least halve the rate of home loan growth, which could have implications for dividend policies at the banks.

Jarden said Macquarie Group Ltd (ASX: MQG) continues to outperform the big four banks with its simplified digital offerings.

The broker also said AI threatens to change the way people interact with banking, and inertia may no longer be enough to retain customers.

While Jarden prefers ANZ to the other banks with its overweight rating, its price target of $35.50 is still below the current level of $37.36.

ANZ is also paying a 4.5% dividend yield.

The bank recently announced that its cash profit for the quarter ended 30 June was up just 1% on the quarterly average of the half-year ended 31 March.

At the time, ANZ Chief Executive Officer Nuno Matos said:

As we release our third quarter update, we remain on track to meet our Return on Tangible Equity and Cost-to-Income targets. In the quarter, we continued to improve productivity, margins and business volumes, including accelerating growth in business banking and returning home lending to system growth. Beyond our immediate priorities, we are investing now in customer experience, propositions, channel uplift and transaction banking. This will position us well for the second phase of our strategy beyond 2027, to accelerate growth and outperform the market.

Commonwealth Bank could drop sharply

Regarding Commonwealth Bank, Jarden is predicting a very steep share price fall from $151.18 currently to $90.

When releasing its FY26 results, CBA warned of difficult times ahead.

It said:

The Australian economy has remained resilient, supported by historically low unemployment and longer-term investment. However growth is slowing, with higher interest rates and inflation placing uneven pressure on household incomes and economic activity. Housing activity has softened from a high base. Application volumes appear to have stabilised in recent weeks. Businesses continue to manage higher input costs and supply uncertainty.

For National Australia Bank, Jarden is forecasting a share price of $29, compared to $38.55 currently. Meanwhile, for Westpac, it is predicting its share price to fall from $34.26 (at the time of writing) to $31.

The post How much could the big 4 banks' share prices fall? 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 recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The performance of True North Copper Ltd (ASX: TNC) shares over the past year has been underwhelming to say the least, but the analyst team at Morgans is tipping that's about to change.

They have just issued a new research note on the company, assigning a speculative buy rating and a very bullish share price target, which I'll get to shortly.

So what's getting them all excited?

Queensland projects progressing well

True North has two projects in development: Mt Oxide and Cloncurry, both in Queensland.

Just this week, the company announced further high-grade copper and gold exploration results at Cloncurry, building on the mineral resource announced in September of 152,000 tonnes of copper and 171,000 ounces of gold.

True North is expecting to complete a prefeasibility study on the Cloncurry project later this year.

The company said the recent drilling results showed the potential for further near-mine extension opportunities.

The company added:

Further drilling in late 2026 and into 2027 will target near mine exploration and resource extension opportunities, with the potential to grow the resource and further optimise value across the broader Cloncurry Copper Project.   

Broker likes what it sees

Morgans said True North was well-positioned, with the region likely poised for a wave of consolidation.

Long fragmented between underutilised mills and mill-constrained juniors, Cloncurry is now seeing long-anticipated consolidation gain momentum. Evolution Mining has agreed to acquire Carnaby Resources ($213m, scheme), citing latent mill capacity at Ernest Henry. Austral Resources Australia has beaten Larvotto Resources to a binding scheme for Hammer Metals ($80.7m), and AIC Mines has agreed to acquire Materra Metals (Mt Cuthbert) for $120m (~$488/t contained Cu). We see this as supportive for TNC. It validates the strategic value of Cloncurry copper gold inventory, provides fresh regional transaction benchmarks and highlights the scarcity of what TNC already holds: resources on granted mining leases alongside permitted processing infrastructure.

Morgans said the company had plenty of options for how to develop its projects, given the available infrastructure in the region.

The broker has a price target of $1.31 on True North shares, compared to the current price of 33.5 cents.

If achieved, this would constitute a 291% increase in value.

Morgans said further:

We view TNC as a compelling emerging copper opportunity, anchored by its flagship Mt Oxide project, with the Cloncurry Copper Project (CCP) providing a complementary near-term development pathway on granted leases with existing infrastructure. Further Mt Oxide drilling and the CCP prefeasibility study in late 2026 are among multiple catalysts over the next 12 months that could build scale, de-risk the portfolio and narrow TNC's valuation discount to peers.

True North Copper is valued at $62.9 million.

The post Morgans tips 290% upside for this up-and-coming ASX copper 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.

Wesfarmers Ltd (ASX: WES) shares have underperformed over the past 12 months, slipping 17.1% over the period.

The analyst team at Jarden believe a turnaround is on the way, however, with a modest share price improvement forecast over the next year.

Muted revenue growth for FY26

Wesfarmers, which owns Bunnings, Kmart, and its lithium mining operations WesCEF, grew its revenue in FY26 by just 3.4% to $47.3 billion.

Net profit came in at $2.9 billion, down 1.8%.

The Jarden team said the drop in the Wesfarmers share price over the past year meant that it was "nearing its oversold territory".

They added:

The weakness is a function of negative earnings per share revisions and macro concerns. We view these concerns as overdone – with WES' retail divisions consistently growing regardless of the cycle.

Jarden said Australian consumers were facing headwinds, with cost-of-living pressures eroding cash flow and discretionary spending growth halving.

With this as the backdrop, they looked at Wesfarmers' performance over the past 20 years to assess how it performed through the cycles.

Our conclusion: a combination of share gains, space growth, expandable categories and an everyday low pricing offer that outperforms in cyclical downturns, has seen WES' brands consistently deliver sales growth over the past 20yrs. The above, combined with its category killer status and marketplace/AI push, leaves WES retail well-positioned to continue this growth. We see limited risk to consensus, with market margin forecasts arguably conservative, led by Bunnings, which is forecast to contract 6 basis points in FY27. This is despite sourcing, productivity and mix benefits that should see Bunnings continue its 2H26 margin trend, the biggest lift since 2021.  

Jarden said Wesfarmers management was executing well, with a clear plan, and they believed there was upside developing into FY28.

They said there was an opportunity for Wesfarmers to become the leading customer-facing business in Australia across health, consumables, and energy, "and while this will take time and money, we don't believe it's reflected in the current share price''.

Jarden said earnings growth was likely to accelerate into FY28 as Wesfarmers' digital and AI push drove better return on invested capital, similar to the experience of Walmart in the US.

Share price should appreciate

Jarden has a price target of $83.20 for Wesfarmers shares, compared with the current $75.77.

If achieved, this would constitute a 9.8% return, with the company also paying a 3.3% dividend yield.

Wesfarmers is valued at $85.9 billion.

The post In a tough retail environment, what's the outlook for Wesfarmers shares? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Walmart and Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Imricor Medical Systems Inc (ASX: IMR) have been on the slide recently, falling from levels above $2 to just $1.56 at the time of writing.

This has created a buying opportunity, according to the analysts at Morgans, who have issued a new research report into the company with a bullish share price target.

Innovative medical technology gaining traction

Imricor has developed a suite of products such as catheters, sheaths, and other tools which can be used under real-time magnetic resonance (MR) guidance, rather than under x-ray fluoroscopy guidance, thus taking advantage of MR's superior imaging capabilities.

The company has had some wins recently, with the Children's Medical Centre Dallas signing up to buy Imricor's NorthStar mapping and guidance system, becoming the second US hospital customer just two weeks after the launch of the company's US commercial operations.

Imricor said:

Children's Medical Center Dallas will be the second customer under Imricor Cardiovascular, validating the newly launched vertical and the market opportunity across more than 250 children's hospitals and more than 2,000 adult hospitals in the United States.

The company also recently announced that the US Food and Drug Administration had approved a manufacturing module which covers the design, manufacturing, and quality processes around seven Imricor products.

Imricor Chair Steve Wedan said:

Manufacturing is one of the most demanding components of any PMA, and ours covered seven devices at once. To have the FDA complete its evaluation and close this module is a strong validation of the design controls, production processes and quality system our team has built. It is the kind of milestone that is easy to state in a sentence but very hard to earn.

Morgans said in its new research note on the company that its share price had fallen more than 20% since it entered the S&P/ASX 300 Index (ASX: XKO).

The broker added:

The recent share price weakness creates a great buying opportunity. The recent news flow has been positive and we expect further key milestones to be announced over the next three to six months.

Morgans said a collaboration with Philips combining Philips' MRI platform with Imricor's cardiac systems and catheters offered a purpose-built alternative to x-ray guidance.

They added:

It is available immediately in CE-marked (European) markets. The partnership expands IMR's commercial reach and creates a scalable platform for future MRI-guided interventions across additional clinical application. We expect this will accelerate commercial adoption across the Philips global network. The other major manufacturers (Siemens and GE Health) will be following suit.

Morgans has a price target of $2.90 on Imricor shares compared to $1.56 at the time of writing, which would represent upside of 85.9%.

Imricor is valued at $568.3 million.

The post Could this ASX biotech really jump more than 80% 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 positions in and has recommended GE HealthCare Technologies. 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.

RBC Capital Markets has just started covering Chrysos Corporation Ltd (ASX: C79), and its analysts believe the innovative gold assay technology company is undervalued.

The broker has issued a new research note on Chrysos, with a bullish share price target, which I'll get to shortly.

First, let's look into what they're saying about the company.  

Innovative assay technology

Chrysos has developed a technique to analyse mining samples, which RBC says is displacing existing "centuries old" techniques because it is faster and cleaner, with similar pricing.

The company also has an innovative business model, leasing its machines to customers, which provides a recurring revenue stream.

RBC estimates that Chrysos has to date only penetrated about 10% of its total addressable market in the gold sector, providing it with a substantial growth pathway.

The broker said in its report:

Chrysos's PhotonAssay technology is a demonstrably superior alternative to the centuries-old fire assay method that is non discretionary for every gold miner globally. The growth runway is long and visible, underpinned by an expanding contracted pipeline across 23 countries and endorsements from the world's largest miners including Barrick, Newmont, and Gold Fields. The majority of the machines are with independent labs, including several of the world's largest (ALS, Bureau Veritas, Intertek, MSALABS and SGS), with an increasing number deployed on-site at major mines.

Chrysos, RBC said, was charging its customers a minimum monthly amount, with volume-linked upside.

Each machine costs about $4m to produce and install, and generates about $2 million in annual revenue per year.

RBC said they estimated that over a 20 year life, each unit would produce $40 million in revenue.

The broker added that the company did not have any credible competition.

There are no known competing or copycat technologies in the market today. The most credible long-term threats would likely originate from large instrument manufacturers, Chinese state-linked science/industrial companies, or the incumbent lab giants themselves. That said, we believe Chrysos's pace of deployment and deepening customer entrenchment make that window harder to exploit with each passing year. Other factors working in Chrysos' favour are: actively defended patent portfolio; highly specialised components; four major global lab companies are already aligned with Chrysos; and development of next gen units and solution analysis extensions continue to widen the technology gap.

RBC said the company was fast-growing and highly-profitable, but free cash flow would remain negative for the next five years due to capital expenditure for new units.

Shares looking cheap

RBC has a price target of $9.25 on the company, which is 36% higher than the current level of $6.80.

Chrysos is valued at $776.3 million.

The post This ASX gold technology company could rise by more than a third, RBC Capital Markets 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 positions in and has recommended Chrysos. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Intertek Group Plc. The Motley Fool Australia has positions in and has recommended Chrysos. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Australian house prices have much further to fall, AMP Ltd (ASX: AMP) Chief Economist Shane Oliver argues, as a "perfect storm" of interest rate rises, tax hikes for investors, and poor confidence hit the market.

House price falls just getting started

In a recently released report, Dr Oliver said that Cotality figures show national home prices fell 1.1% in September, bringing falls to date to slightly more than 5%.

But he warned much worse was to come.

Dr Oliver said:

Further falls are likely as home prices are being hit by a perfect storm of rate hikes, tax hikes on investors, poor confidence and poor affordability depressing demand with a high risk of distressed sales flowing from higher mortgage rates and unemployment. We now expect national average property prices to have a top to bottom fall in prices of 10-15%, of which they have done 5.2% so far. Sydney, Brisbane and Adelaide are likely to see the deepest falls, whereas Melbourne is likely to have a shallower decline.

Dr Oliver predicted the market would bottom out around the June quarter next year, before a modest recovery in 2027-28 as the Reserve Bank of Australia (RBA) moved to start cutting official interest rates.

He added that units and lower end property would likely not drop as steeply, given they didn't appreciate as much, and because they benefit from the expanded first home buyers 5% low deposit scheme.

Dr Oliver said the negative factors affecting the market were currently outweighing the upward pressure from a shortage of housing.

He added:

Were it not for three key supports the property market would be a lot weaker. These are: the accumulated housing shortfall of an estimated 200,000 to 300,000 dwellings; vendors not being in a rush to sell just yet aided by still low unemployment; and the expanded first home buyer 5% deposit scheme which is helping to support lower priced entry level houses and units. However, despite these supports, the Australian housing market is still likely to weaken significantly further as higher mortgage rates, the removal of most property tax concessions, record poor affordability and poor confidence continue to impact at a time of a rising risk of distressed selling.

Rate rises likely off the cards

Dr Oliver said he believed the RBA would not raise interest rates again, but "we don't see it cutting rates until the second half next year''.

He added that given there is still uncertainty about the full impact of the property tax changes on demand, "the risk remains on the downside".

The post How much further will house prices fall, according to AMP's chief economist? 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 Meteoric Resources Ltd (ASX: MEI) jumped 50% in early trade on Thursday after the company announced a deal to be acquired by Lynas Rare Earths Ltd (ASX: LYC).

The deal would grant Meteoric shareholders 0.0207 Lynas shares for each of the shares they held, valuing the deal at 26.6 cents.

Meteoric shares jumped 50% on the news to 25.5 cents.

Does the deal fully value Meteoric shares?

While the deal would pay a solid premium to Meteoric shareholders, it falls well short of a price target for the company issued by Canaccord Genuity in a research note published in July, which said Meteoric was worth 40 cents per share.

At the time, the broker was very positive on a deal which Meteoric had signed with Korean giant Posco, relating to the development of Meteoric's Caldeira rare earths project in Brazil.

CG said regarding the deal:

POSCO is one of the world's largest steel producers, having had long-standing and deep involvement in upstream mining and resource projects in Australia and Brazil. In addition to steel producing inputs, POSCO has a presence in critical minerals including lithium and rare earths. In our view, the proposed partnership with POSCO is a major positive for MEI, through not only offtake (and favourable pricing mechanisms which could improve economics relative to China benchmarks), but perhaps just as importantly through its scale and access to capital and what this means for project financing.

Lynas talks up benefits of scale

Lynas said on Thursday that Meteoric shareholders would benefit from its expertise in managing rare earths projects.

The company said:

Meteoric shareholders benefit from a significant control premium and unlocking of Caldeira's value through Lynas' strong balance sheet and proven experience in developing and operating rare earth projects, while also receiving immediate exposure to the only commercial producer and supplier of light and heavy rare earth oxides outside of China. Lynas' ownership also brings opportunities to develop downstream processing in Brazil.

The Meteoric board has unanimously recommended the deal in the absence of a better offer, and Tolga Kumova, Meteoric's largest shareholder with a 6.7% stake, also supports the deal.

Lynas Chair John Humphrey said:

Lynas is very pleased with the potential to bring together the Caldeira deposit which is the largest known ionic clay rare earth Mineral Resource outside China reported in accordance with the JORC Code, and Lynas' high grade Mt Weld deposit and leading rare earth operations. This will deliver on our Towards 2030 growth objective of adding resource and scale. Expanding our operations into a new country will help Lynas maintain its leading position in the global rare earths supply chain and meet increased customer demand for rare earth materials.

Lynas shares were 5.9% lower at $13.01.

The post Which junior ASX mining stock has surged 50% on big news? 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 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.

Megaport Ltd (ASX: MP1) shares have risen almost 40% over the past 12 months, but according to the analysts at Macquarie, new contract wins make the case for further strong rises even more compelling.

Macquarie has released a new research report into Megaport, with an upgraded price target, which I'll get to shortly.

First, let's look at the company's recent news.

Major new contract wins lead to revenue upgrade

Megaport said earlier this week that it had struck three new AI infrastructure contracts worth $978.6 million in total.

The new contracts increase the company's annual recurring revenue (ARR) to about $1.1 billion, and the company would also book $322.6 million in prepayments from the contracts.

Megaport added:

The three agreements, two of which are with new customers, have a combined total contract value of approximately US$685.0M ($978.6M ) and encompass GPU and CPU compute,  network, and storage for AI applications and inference workloads. These contracts are expected to contribute approximately US$162.7M ($232.4M1) in ARR. Megaport has secured 2 power and space for the new strategic customer contracts.  

The company said it had started procurement for the equipment needed to replenish its GPU pool to fulfil the new contracts, and it had also secured the power and space required for the new equipment.

Megaport Chief Executive Officer Michael Reid said:

Since April, we've announced approximately $2.3 billion in total strategic contract value. Earlier deployments, new contracts, and Network growth underpin our upgraded FY27 revenue and EBITDA margin guidance. Customers have committed approximately $323 million in prepayments on today's contracts, supporting the infrastructure investment behind future growth. "We're broadening our customer base, replenishing our GPU pool, and expanding our AI inference platform. Our progress has been extraordinary, and we remain focused on delivery and disciplined investment. We're just getting started.

Megaport upgraded its full-year guidance, saying revenue was now expected to be $720 million to $810 million up from $620 million to $730 million.

The company's EBITDA margin is now expected to be 42% to 44%, up from 38% to 40%.

Megaport shares looking cheap

Macquarie said in its research note on Megaport that the company's GPU pool was a strategic advantage.

They said:

Capacity can initially support on-demand workloads but be redirected to longer-term contracts as opportunities arise. This allows MP1 to respond quickly to demand, bringing forward billing while reducing utilisation and funding risk.

Macquarie said Megaport had AI exposure with shorter lead times and less capital expenditure than data centres and neoclouds.

Following this week's update, Macquarie increased its price target for Megaport from $32 to $34.70.

If achieved, this would be a 68% increase from the current level of $20.65.

Megaport is valued at $4.91 billion.

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

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• 3 ASX 200 shares I would buy and hold for 10 years
• Zip vs Megaport: Which ASX tech share is the better buy?

Motley Fool contributor Cameron England has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Megaport. The Motley Fool Australia 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.

There has been a sell-off among some of the real estate investment trusts recently, which analysts argue is creating a buying opportunity.

I've selected two research reports published this week that make the case that the trusts in question have been oversold and are now worth a look for investors.

Let's see who the analysts like.

HomeCo Daily Needs REIT (ASX: HDN)

HomeCo is down nearly 20% on a 12-month basis and is trading not far above its low for the period.

The shares have been sold off, particularly since the release of HomeCo's results on 13 August.

Bell Potter has run the ruler over the company and believes the shares now represent good value.

One major selling point is the dividend yield, which is now sitting at 8.2%.

Bell Potter also argues that the sell-off in the shares has been overdone.

The broker said:

The stock has fallen 13.3% since results and underperformed peers over 3 months, a reaction we view as disproportionate to the underlying 2.2% FY27 earnings decline.  

Bell Potter said they expected earnings to trough this financial year, with growth returning in FY28 as the cost of debt reduces, assets are sold, and developments are completed.

The broker added that retail supply was lagging demand, "driving vacancy down and rental growth up''.

Bell Potter has a buy recommendation on HomeCo shares with a price target of $1.20 compared to $1.08 currently.

Charter Hall Group (ASX: CHC)

UBS believes Charter Hall has been oversold since early August and calls the company a "top pick" in the real estate sector.

The broker said:

Of the large cap REITs, CHC's relative returns are most negatively correlated to bond yields which are up ~50bp in the past two months. While rising yields are clearly a headwind for the business (e.g. via lower valuations and transaction volumes), we think the market is assigning too much weight to a downside outcome despite a more resilient earnings base this cycle.

UBS said the market was likely wary of the shares, which were heavily sold off during the last interest rate increase cycle in 2022-23.

But the broker said the current rate cycle is far less dramatic, and "property values should hold up better given sharp devaluations booked across 2022-24''.

UBS has slightly reduced their price target on Charter Hall from $24.50 to $24, but that's still well above the current level of $18.56.

Charter Hall is valued at $8.38 billion.

The post 2 ASX real estate funds that could return 23% to 35% appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today
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• Goodman Group vs Charter Hall: Which ASX REIT pays better income?

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

Morgans says cryopreservation company Vitrafy Life Sciences Ltd (ASX: VFY) is at a crucial juncture in its development, with success likely to unlock significant value.

Vitrafy shares are already up 163% on a 12-month basis, but Morgans has an even more bullish price target on the company which I'll get to shortly.

Firstly, let's have a look at the business.

Major developments over the past year

Vitrafy said in its recently-released annual report that while it remained an early-stage business, progress made during the year had, "materially strengthened the foundation for the Company's future''.

The company's technology involves software and controlled freezing techniques, which it says "preserves biomaterial value, enhances reproducibility, and streamlines cryopreservation workflows at scale''.

The company said further in its annual report:

The clear highlight of the year was the successful completion of our Phase II in-vitro platelet study with the U.S. Army Institute of Surgical Research ("USAISR"), part of the Defense Health Agency. Conducted across 20 donors at commercial volumes — our largest blood testing program to date — the study found that every protocol tested using the Vitrafy ecosystem met or exceeded the relevant regulatory and quality guidelines for platelet use. Our simplified "no-wash" protocol achieved a mean post-thaw platelet recovery of 94%, outperforming the wash-based standard on platelet recovery, clot strength and the retention of the platelet receptors critical to clotting function.

Vitrafy said its technology could provide "surge capacity" in settings where a reliable supply of platelets was constrained, such as regional hospitals, emergency response, or battlefield environments.

The company added:

With no FDA-approved no-wash cryopreserved platelet product currently available in the United States, the Board believes these results position Vitrafy to address a genuine unmet market need with a differentiated, first-line offering, supported by independent U.S. Army validation.

Vitrafy in FY26 grew revenues 80% to $3.6 million and made a net loss of $16.2 million.

Shares looking cheap, broker says

Morgans said in a research note to clients that the company had spent the year "turning a single commercially unproven cryopreservation platform into three separate, partially validated commercial pathways''.

The broker said the success of the current year would turn on whether those pathways could be converted into material contracts.

They added:

Commercial success is far from a foregone conclusion, but strong scientific data, a forced re-equipment cycle, and a funded runway make VFY a viable contender, in our view, to become the replacement standard in US frozen blood infrastructure, with Cell and Gene Therapy (CGT) and animal reproduction providing optionality on top of that core case.

Morgans has a 12-month price target of $5.06 on Vitrafy shares, compared with $3.43 currently.

Vitrafy is valued at $213.8 million.

The post This ASX biotech could rise almost 50%, Morgans says appeared first on The Motley Fool Australia.

More reading

• 7 ASX healthcare stock picks from Bell Potter

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 analysts at Barrenjoey are tipping significant upside for Navigator Global Investments Ltd (ASX: NGI) shares following the company's sale of its stake in Invictus Capital.

Strong return on investment

Earlier this week, Navigator said New York Life Investment Management would acquire a 60% stake in Invictus Capital Partners from Navigator and other shareholders, with the remaining interest to be purchased in 2031.

Navigator said the deal delivered it material upfront proceeds of US$40 million to US$43 million, with a potential earn-out of up to US$32 million in 2030.

An additional consideration would be determined by Invictus' future business growth, Navigator added.

The company said the transaction implied a materially higher valuation for Invictus compared to its initial investment in 2022.

Navigator added:

For NGI, the Transaction represents a partial realisation at an attractive valuation, while retaining meaningful exposure to Invictus' ongoing growth and performance over the multi-year period to 2030 through retained interests, existing carried interest and fund investments, and potential future consideration. The Initial Closing is expected to occur in the first quarter of 2027, subject to customary closing conditions and regulatory approvals. It is anticipated to deliver a significant return on NGI's invested capital, with value realised through upfront proceeds at the Initial Closing, potential earn-out consideration and additional consideration at the Deferred Closing in 2031.

Navigator Chief Investment Officer Ross Zachary said the deal "serves as an example of how NGI's partnership model can create value for all stakeholders of alternative investment management firms''.

Navigator added:

NGI first partnered with Invictus in August 2022, with total consideration of approximately US$115 million paid over three years. Since then, Invictus has more than tripled gross assets, generating strong outcomes for its investors and extending its leadership position in the U.S. residential mortgage credit market. The results of the partnership, including distributions received by NGI and the growth in the value of NGI's interests before consideration of the Transaction, have exceeded NGI's return targets and generated an attractive return for shareholders.

Analysts like the look of the deal

Barrenjoey analysts said in a note to clients that the deal highlights that the price for one of Navigator's private market firms was well above the valuation it is trading on.

They added:

We estimate a PE for the sale in the high teens, perhaps into the 20s based on management fee-only profits.

Barrenjoey has a price target of $4.20 for Navigator shares, compared with the current $2.43.

Macquarie also issued a new research note on Navigator following the announcement, with a price target of $3.24.

Navigator is valued at $1.51 billion.

The post Barrenjoey tips this ASX financial stock to rise 73% appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Buy, hold, sell: Aristocrat, Liontown, and Navigator Global shares

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

When you're planning for your retirement, it's great to start with a goal, and start as early as possible.

This ensures that you get the most benefit from compound interest on your savings, and can rest easy that you'll be able to afford a comfortable retirement.

What actually is a comfortable retirement?

What constitutes a comfortable retirement is different for everyone, but a decent benchmark is the Association of Superannuation Funds of Australia's (ASFA) retirement standard, which tallies up what it will cost for life's essentials and a few other costs which make up a comfortable existence.

These include being able to afford top-level health insurance, reliable internet, owning and maintaining a reasonable car, and enjoying leisure activities and occasional travel.

The standard does assume however that the retiree takes a part pension from the age of 67, and owns their own home.

The standard is currently set at $56,166 per year for singles and $78,998 for couples.

The good news if you're aiming for $1500 a week, or $78,000 per year in income from your retirement savings, is that this is comfortably above the retirement standard level for singles.

So what level of retirement savings would you need to generate this level of income?

If you were able to earn a 10% dividend yield on your portfolio, which I would argue is unlikely, you'd need superannuation savings of $780,000.

If you were earning just 5%, this would increase to $1.56 million.

I would argue that with the benefits of franking credits you'd be able to comfortably earn about 7.5% from dividends, meaning you'd need savings of $1.04 million.

Franking credits effectively pay a shareholder back a credit for the tax a company has already paid.

Given that retirees pay a 0% tax rate, this means the full 30%, for fully franked dividends, flows back to the shareholder.

In practical terms, a 5% dividend yield on a fully franked share becomes 7.14%.

Which shares deliver solid dividends?

In terms of companies that can deliver solid dividend yields, there are plenty to choose from.

Premier Investments Ltd (ASX: PMV) recently reported its full-year results. The retailer maintained its dividend, yielding 6.85%.

The Atlas Arteria Ltd (ASX: ALX) share price has slipped sharply recently, boosting its yield to 10.58%.

At the more blue-chip end, Westpac Banking Corporation (ASX: WBC) has a trailing yield of 4.39%, and Telstra Group Ltd (ASX: TLS) pays 4.36%.

As you can see there are plenty of options for shares which deliver a decent dividend yield.

And if you think your superannuation could use a top-up, it's worth looking into non-concessional contributions, which can be a tax-effective way to increase your retirement savings.

The post How much is needed in superannuation for $1500 in weekly passive income? 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 positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Junior medical device company EBR Systems Ltd (ASX: ABR) recently secured reimbursement for its devices in the US.

The analyst team at Bell Potter has examined the new announcements, and has reiterated its bullish price target on the company, which we'll get to shortly.

First let's have a look at what was announced.

More funds for heart implant procedures

EBR has developed a system called WiSE which it says is designed to overcome the limitations of conventional cardiac resynchronisation therapy and, "is the only leadless left ventricular endocardial pacing (LVEP) device".

The company recently released a quarterly report and said that it had surpassed its hundredth commercial WiSE implant, "with multiple sites performing their first WiSE implants and numerous sites performing their 2nd, 3rd, 4th, and greater cases".

In mid-September the company released another update, saying the base US Medicare inpatient reimbursement rates for eligible WiSE procedures had increased by about 58% and 93%.

The company added that assuming the maximum available New Technology Add-on Payment (NTAP), the total Medicare payment could reach about US$77,839 and $US66,566 respectively.

EBR Chief Executive Officer John McCutcheon said:

The final FY2027 Medicare payment rates represent a significant reimbursement and commercial milestone for WiSE. The increased inpatient reimbursement provides hospitals with a clearer and stronger payment pathway for eligible WiSE procedures, while better recognising the resources required to deliver this differentiated leadless technology. This outcome further strengthens the commercial foundation for WiSE as we scale our U.S. launch and work to expand access for heart failure patients who are not well served by conventional CRT.

The new pricing comes into effect on 1 October.

Analysts say this ASX biotech is looking cheap

Bell Potter said the increased reimbursements meant that, "financial considerations should not drive decision making in WiSE system utilisation, enabling physicians and hospitals to focus on the clinical criteria''.

The broker noted that the new payment schedules applied to inpatient procedures, which accounted for only about 20% of WiSE procedures.

Bell Potter has a price target on EBR shares of 70 cents, compared to the current price of 25 cents.

Fellow Broker Morgans has a much more bullish price target on the company, recently issuing a new research note with a price target of $1.95.

Morgans said regarding the company's rollout:

With 17 sites already having completed ≥3 cases, we see an opportunity for utilisation to compound as physicians gain experience and WiSE becomes embedded in clinical workflows.

EBR Systems is valued at $202.9 million.

The post This ASX biotech could nearly triple in value Bell Potter 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.

When it comes to iron ore, BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) are the obvious names. However, if you're looking for serious share price upside, junior companies can be worth a look.

ASX iron ore junior with potential

UBS has just initiated coverage of Champion Iron Ltd (ASX: CIA), and believes there is significant share price appreciation to be had over the next 12 months.

I'll get to their specific share price target shortly. Firstly let's have a look at why UBS likes the company.

The broker said broadly, they expect iron ore markets to remain balanced over the medium term, "with benchmark prices supported by cost inflation and resilient, albeit moderating, steel demand''.

With regards to Champion in particular, UBS said the company's iron ore grades were the key differentiator.

The broker added:

Growing demand for premium steelmaking inputs, declining seaborne ore quality, and increasing blending requirements support structurally attractive economics for ultra high-grade iron ore producers. In our view, the market underappreciates CIA's premium-grade product suite and the potential for improved premium capture as the Direct Reduction Pellet Feed (DRPF) facility ramps up.

UBS said the company's pellet feed facility lifts the grade of its products from 66.2% to 69%, increasing the company's exposure to premium markets.

The broker added:

Our CIA investment case rests on the market underestimating the scarcity value of CIA's ultra-high-grade product suite, and the price realisation/earnings leverage from DRPF. As a result, we expect earnings to move above consensus from FY30.

UBS said Champion's Bloom Lake mining operation, "benefits from a large, consistent orebody and established rail and port infrastructure, supporting reliable production and cost visibility''.

And they said the company was less vulnerable to price volatility due to the premium product being produced.

As they said:

Product quality and integrated logistics should underpin cash generation through the cycle, though fixed logistics costs reduce flexibility in weaker markets. Margin durability therefore remains tied to supportive high-grade premiums.

ASX iron ore shares looking cheap

UBS has a price target of $4.15 on Champion shares compared to $3.06 currently, and is also forecasting a 4% dividend yield.

Champion Iron is valued at $1.71 billion.

UBS recently raised its long-term iron ore forecast to US$93 per tonne from US$85 per tonne.

The broker said:

While consensus remains focused on Simandou's supply addition and weaker Chinese construction activity, we believe the market is underestimating three structural supports to iron ore prices: resilient steel demand led by China's manufacturing and export complex and the emergence of the Global South, a tighter iron-unit market balance once depletion and Fe grade decline are incorporated, and cost curve support that remains materially higher than in prior cycles.

The post This ASX iron ore junior could rise more than 33% UBS says appeared first on The Motley Fool Australia.

More reading

• 7 ASX mining shares with 11% to 158% upside ahead: experts

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

Shares in junior technology company Stakk Ltd (ASX: SKK) rocketed almost 40% in early trade after it announced that the US Federal Bureau of Investigation would be using its signature verification technology.

Recent deal already paying dividends

Stakk recently merged with US company Parascript, which pushed its valuation past the $100 million mark,

The company said in a statement to the ASX on Tuesday that Parascript had been engaged to provide signature verification capabilities for the FBI.

The company added:

Stakk's technology supports the assessment of physical signatures where authenticity or potential fraud is in question. The first phase of the FBI deployment is fully live. Work is now under way on a second phase that will add capabilities to locate and prepare reference signatures for the verification process.

Stakk said the commercial terms of the agreement were confidential, but it was expected to contribute meaningfully to the company's FY27 revenue target, which is now expected to surpass $55 million.

The initial agreement runs until December 2027 and may auto-renew for subsequent 12-month terms thereafter.

The company said the agreement was a strong endorsement of its technology.

The engagement also establishes a live Law Enforcement deployment of Stakk's technology. It demonstrates the relevance of the Group's capabilities in a sector where the authenticity of signatures and documents can be critical and provides a foundation for Stakk to pursue further Law Enforcement opportunities. The need to establish authenticity extends across financial services, healthcare, insurance, telecommunications, and government. As AI-powered fraud grows more sophisticated, Stakk expects demand for these capabilities to increase. The Company sees opportunities with state and federal Law Enforcement agencies across the United States, as well as with agencies internationally.

Stakk Director Arthur Lo said the Parascript acquisition was already proving its worth, with the company providing services that were in demand across financial services, healthcare, government, law enforcement, and other regulated sectors.

He added:

As fraud grows more sophisticated, we see a substantial opportunity to bring these solutions to agencies in the United States and internationally. This engagement is a powerful example of why we recently brought the two businesses together.

Share price taking off

Stakk shares traded as high as 2.5 cents before settling back to be changing hands for 2.4 cents, up 33.3%.

The company was valued at $114.8 million at the close of trade on Monday.

Stakk said late last month that its $55 million revenue target for FY27 was already secured through recurring revenue under existing contracts.

The post Which ASX tech stock is up more than 30% after revealing a deal with the FBI? appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Cameron England has positions in Stakk. 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.

Codan Ltd (ASX: CDA)'s value has surged past $10 billion, up more than 15% just today, after the company announced a large profit upgrade just three months into the new financial year.

Firing on all cylinders

The technology manufacturer has two main divisions – metal detection and military communications – with both expecting to grow significantly over the full year.

Codan had already issued a trading update on 20 August, saying strong demand for unmanned systems meant that its communications division expected to significantly exceed the previous year's performance in the first half.

The company said on Tuesday that orders had continued to strengthen during the first quarter and it now had better visibility for results through the second quarter.

Codan said demand outside of conflict regions was strong, and revenue was expected to be up 20% on the previous corresponding period, "with broad-based growth across regions and markets reinforcing the global relevance of our technologies''.

The company added:

Demand from conflict regions is currently exceptionally strong, reflecting the proven performance and reliability of our technology in these contested environments. With this elevated demand, Codan expects revenue generated from conflict regions to represent approximately 50% of Communications segment revenue in H1 FY27 (vs. approximately 20% in the previous corresponding period). Codan now expects the Communications segment to deliver H1 FY27 revenue of between $400 million and $410 million. This compares to $221.8 million in the pcp and $506.2 million in full year FY26.  

The strong demand could also translate into a better EBIT margin of about 40% in the first half, compared to 26% in the first half last year.

Codan said demand from conflict regions was difficult to predict over the full year, "and accordingly it is too early in the financial year to determine if demand and margin will continue at similar levels in H2 FY27''.

Metal detection also performing well

The Minelab metal detection division was also performing strongly, driven by demand for the recently launched GPZ8000 and Gold Monster 2000 detectors, Codan said, as well as by the favourable gold price.

On August 20, Codan said that Minelab was tracking broadly in line with second-half FY26 levels.

Minelab's revenue run rate is now slightly above those levels, Codan said.

In terms of group profit, Codan is expecting a net profit of not less than $160 million for the first half, compared to $71.2 million in the first half of FY26 and $175.2 million for the full year.

Codan shares traded as high as $61.30 before settling back to be 16.8% higher at $60.73.

The post This ASX tech company just surged past the $10 billion valuation mark after a major profit upgrade 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 oil and gas sector has certainly been volatile with the conflict in the Middle East.

In this environment, it can be useful to defer to the experts, with Macquarie recently releasing two new research reports: one on an oil and gas junior and one on a major company.

Let's see who they like.

Strike Energy Ltd (ASX: STX)

Strike shares have returned exactly 0% over the past 12 months, but the Macquarie analysts believe that's about to change.

Key to this is an agreement Strike recently made with Gina Rinehart's Hancock Energy to process the gas from its West Erregulla project through Hancock's Belisama facility.

The deal also included a $30 million loan from Hancock, which Strike will use to support its share of pre-development activities.

The West Erregulla joint venture is targeting a final investment decision in FY28, with first gas expected in CY29.

Macquarie said the deal was "a key turning point", materially improving the development pathway for the project.

The broker said:

In our view, this was particularly important given Walyering's limited life (we forecast production to end Dec-28 quarter for now) – with West Erregulla targeted online mid-CY29. The market seems to be under-appreciating the significance of this for now & it may take some time for institutional interest to return to STX.

Macquarie said that with the Hancock money and debt funding from Macquarie Bank, the company was adequately funded.

The broker has a price target of 15 cents on Strike shares compared to 11 cents currently.

Santos Ltd (ASX: STO)

Santos shares have performed well over the past year, up 24.4%, but the team at Macquarie thinks they have further to run.

The broker's analysts said in their research note on the company that the third quarter will be a "watershed" period as Santos moves into the harvest phase after a long period of investment.

They added that the strong commodity pricing environment was providing a favourable earnings backdrop, with the disruption in the Middle East continuing.

Macquarie is forecasting earnings per share to be 40% higher for the calendar year, driven by higher realised prices and increased LNG shipments; however, they noted that their estimate was 31% above consensus.

Macquarie has an outperform rating on Santos shares and a price target of $9.35 compared to $8.58 currently.

Conversely, Macquarie has a neutral rating on Woodside Energy Group Ltd (ASX: WDS) and a price target of $32.40 compared to $31.77.

Santos is valued at $27.8 billion.

The post 2 ASX energy companies Macquarie says will outperform 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 recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Brokers have released new research reports on three very different companies this week, but the common thread is a forecast of solid share price appreciation.

Let's see who the brokers like.

Alliance Aviation Services Ltd (ASX: AQZ)

Morgans has belatedly run the ruler over Alliance's FY26 results and has increased their price target on the company as a result.

The broker said the company achieved its FY26 guidance despite a mixed set of numbers, including second-half revenue coming in $19 million below their expectations.

This was due to weaker-than-expected wet lease revenue, partially offset by a strong performance from contracts, with contract revenue 9% ahead of Morgans' estimates.

Looking forward, Alliance has resigned its largest wet lease contract, securing more favourable terms.

Morgans said:

While the fleet commitment reduces from 30 to 23 aircraft through FY27, AQZ expects materially improved profitability, margins and cash generation from the revised contract.

The broker said the company's strategic reset had "materially improved the investment case".

They added:

The renegotiation of its largest wet lease contract, fleet transition and renewed focus on balance sheet repair provide a clearer pathway to improved profitability, cash flow generation and deleveraging over the next 12-24 months. That said, FY27 remains a critical execution year. Delivery of margin guidance, restructuring benefits, fleet optimisation initiatives and leverage targets will be key to rebuilding investor confidence and supporting share price appreciation.

Morgans has a price target of 85 cents on Alliance shares compared to 51 cents at the time of writing.

Premier Investments Ltd (ASX: PMV)

Premier recently reported its full-year results, with revenue slipping 2.8% to $808 million and net profit falling 10.3%.

The retailer maintained a strong dividend payout, however, and said the start to FY27 had been steady with sales within 1% of the same period the previous year.

Macquarie analysts said in a new research note on the company that the result was in line with recently lowered profit guidance and that sales were broadly in line with their expectations.

The analysts said they were positive about Smiggle repositioning itself in the market to focus on older tweens and said the Peter Alexander store rollout program was strong.

Macquarie has a price target of $15.70 for Premier shares, compared with $11.82 at the time of writing.

Minerals 260 Ltd (ASX: MI6)

Macquarie said in its research note on Minerals 260 that the company's Bullabulling Gold Project was the third-largest undeveloped project in Australia and the only large-scale, long-life asset not owned by a producer.

Macquarie added:

MI6 currently trades on an Enterprise Value to Resource ounce of $321/oz, a 31%/41% discount to ASX listed gold developers/ producers. We see scope for the stock to re-rate as the project is de-risked through FID, construction, commissioning and steady state production.

Macquarie has a price target of $1.30 on Minerals 260 shares compared to 85 cents at the time of writing.

The post 3 ASX shares tipped to return 38% to 60% 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 recommended Macquarie Group and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.