On Friday afternoon, Morgans updated its ratings on three ASX All Ords shares.

Let's take a look.

Minerals 260 Ltd (ASX: MI6)

The Minerals 260 share price closed at 62 cents, up 3.3% on Friday and up a whopping 425% over 12 months.

Minerals 260 is building one of Australia's largest near-term gold mines, Bullabulling, in Western Australia.

The miner updated the Mineral Resource Estimate (MRE) and released the Pre-Feasibility Study (PFS) for the project this week.

The MRE increased a sizeable 38% to 190Mt at 1.0g/t Au for 6.2Moz.

On Friday, Morgans maintained its buy recommendation with a 12-month target of $1.38 target.

This suggests potential upside of 120% over the next 12 months.

The broker said:

MI6 has released its maiden Ore Reserve and PFS, confirming Bullabulling as one of Australia's premier undeveloped gold projects.

The study outlines ~150kozpa production over the first decade, a 43% IRR, A$2.3bn NPV and a two-year payback period.

Importantly, the PFS was completed largely on the previous 4.5Moz resource base, with the upgraded 6.2Moz MRE providing scope for further reserve growth, mine plan optimisation and increased scale through the DFS.

Adairs Ltd (ASX: ADH)

The Adairs share price closed at $1.49, down 2.9% today and down 31% over 12 months.

Morgans downgraded Adairs shares from a buy rating to an accumulate recommendation on Friday.

The broker has a 12-month target of $1.70, suggesting 14% potential upside from here.

Morgans said:

ADH provided a FY26 trading update, with Adairs performing ahead of expectations, Mocka largely in line, but ongoing weakness in Focus on Furniture continues to weigh on group earnings.

Group EBIT is expected to be down ~1.3%.

Given the ongoing weakness in Focus on Furniture and the extended remediation time required, the group intends to recognise an impairment charge of $62-28m ($56-60m after tax). This will be excluded from underlying earnings.

We have made downward revisions to our earnings in FY26/27/28.

James Hardie Industries plc (ASX: JHX)

The James Hardie share price closed at $35.05, up 0.6% today and down 17% over 12 months.

Morgans downgraded James Hardie shares to a trim rating on Friday.

The broker lowered its 12-month price target from $39 to $36.

This suggests a potential 3% upside in the new financial year.

The broker said:

The JHX share price is up 25% in three months, leaving the business trading on a PER (NTM) of 22x, back towards the pre-AZEK average multiple of 21x. JHX has FY27 guidance in the market for EBITDA growth 4-8% – an achievable ambition.

However, by Sep-26 investor attention will turn to 2028 earnings expectations, and with Consensus factoring in +22% EPS growth we see downside.

It is our expectation that any US housing recovery will progressively be pushed into FY29/30, with JHX eking out mid to high single digit growth over the medium term.

Given JHX is trading back at its average multiple, despite the AZEK acquisition, and combined with the potential downside revisions to consensus forecasts, we are moving to a Trim rating with a $36.00/sh price target.

The post Buy, hold, sell: James Hardie, Adairs, Minerals 260 shares appeared first on The Motley Fool Australia.

The homewares and home furnishings retailer has now seen its share price fall by 18% for the year to date. 

This has reflected broader sector wide headwinds for consumer discretionary shares. The sector has been hit hard by high interest rates and inflation. 

What did the company announce?

As my colleague Aaron Teboneras reported yesterday, Adairs announced it expects FY26 group sales to land between $640 million and $641.5 million.

At the midpoint, this represents an increase of 3.7% on FY25.

However, group underlying EBIT is expected to come in between $53.5 million and $55.5 million. This would be down 1.3% on FY25.

This put a halt to the positive momentum it had felt over the past month. Subsequently, the team at Bell Potter has provided updated guidance on Adairs shares for the next 12 months. 

Here is the broker's updated view. 

Slightly below expectations

Bell Potter said Adairs' FY26 trading update was slightly below market expectations on revenue (around 1%).

The core Adairs brand was the standout performer. It delivered 3% sales growth from late February to June and stronger margins following product range improvements under the new management. This helped offset weaker performance at Focus on Furniture.

Mocka (an online furniture and homewares retailer owned by Adairs) performed largely as expected. Meanwhile, Focus on Furniture continued to face pressure from increased competition and its ongoing turnaround under new leadership.

Following the update, Bell Potter has lifted its assumptions for the core Adairs business but now expects Focus on Furniture to remain loss-making in the second half of FY26 and continue to weigh on earnings in coming years. 

The broker forecasts modest group growth of 2.6% in revenue and 1.8% in EBIT, supported by foreign exchange benefits in FY27 and healthy inventory levels. 

As a result, Bell Potter increased its FY26 NPAT forecast by 16%, while reducing FY27 and FY28 forecasts by 5% and 8%, respectively.

Minimal upside

Based on this guidance, Bell Potter slightly increased its target price on Adairs shares to $1.45 (previously $1.40). 

It retained its hold recommendation. 

Despite raising its target, it appears Adairs shares are trading close to fair value, after closing yesterday just above Bell Potter's target price. 

With the positive customer response to the range curation efforts at Adairs continuing to play out from the CY25 peak to the 4Q26 seasonal period and appears to be maintained into FY27, we attribute successful management strategy. 

However, our views on the recovery timeline at FoF in a highly competitive near-term value furniture market sees us remaining cautious over the next 12 months considering the current transition phase at ADH.

The post Are Adairs shares a buy, hold or sell after their trading update? appeared first on The Motley Fool Australia.

At the time of writing, the Adairs share price is down 4.03% to $1.43.

The fall comes after a better recent run for the ASX retail stock. Adairs shares are still up around 14% over the past month, although they remain down 18% since the start of 2026.

The update had a few moving parts, with growth in parts of the business offset by a weaker result elsewhere.

Here's what the company told investors.

Weak furniture sales weigh on Adairs

In its trading update, Adairs expects FY26 group sales to land between $640 million and $641.5 million.

At the midpoint, this represents an increase of 3.7% on FY25.

However, group underlying EBIT is expected to come in between $53.5 million and $55.5 million, which would be down 1.3% on FY25.

The main drag is Focus on Furniture, where Adairs now expects to recognise a non-cash impairment of between $62 million and $68 million against goodwill and brand intangible assets.

After the impairment and other significant items, the company expects to report a statutory net loss after tax of around $43 million for FY26.

Focus on Furniture drags

Adairs said its core retail business and Mocka both delivered sales and earnings growth in FY26.

The Adairs division is expected to report sales of about $458.5 million to $459 million, up 3.7%, with underlying EBIT up 14.6%.

Mocka also had a strong year, with sales expected to rise 22.1% and underlying EBIT up 28.1%.

However, the furniture side of the group was much weaker.

Focus on Furniture sales are expected to fall 5.7% to between $111 million and $111.5 million. Underlying EBIT is expected to drop 68.3% to between $3.5 million and $4 million.

Management pointed to heavy competitor discounting, weaker conversion, product underperformance, and execution challenges.

Adairs has brought in new management and is working through changes across the business, including clearing poorly positioned stock and improving operations.

Balance sheet holds up

Adairs said net debt was about $49 million at the end of June, down from $67.6 million a year earlier. It was also well below the company's $135 million facility limit.

The Focus on Furniture impairment is also non-cash. Adairs said it shouldn't cause any issues with its lenders, franking account, or ability to pay a dividend.

Still, the update gives shareholders a lot to think about.

The core Adairs business is growing, and Mocka is having a strong run. But Focus on Furniture is bringing down group earnings and now needs a proper turnaround.

Attention now turns to when Adairs will release its FY26 results on 24 August.

The post This ASX retail stock is falling as a $68 million furniture headache bites appeared first on The Motley Fool Australia.

At the time of writing, the Adairs share price is up 3.19% to $1.295.

While that gives shareholders some relief, the homewares and furniture retailer is still down almost 37% in 2026.

So, what has investors taking another look today?

Brett Blundy is back on the register

The latest move follows a notice lodged with the ASX on Monday evening.

That notice showed BBFIT Investments, Brett Blundy, and BBRC International have become substantial holders in Adairs.

The group now holds 9.1 million shares, giving it voting power of 5.10%. The notice shows the substantial holding was reached on 7 May 2026.

Blundy is not a random name in the retail sector. He has been linked to several major businesses over the years, including Lovisa Holdings Ltd (ASX: LOV), City Chic Collective Ltd (ASX: CCX), and the former Bras N Things business.

He also has history with Adairs.

In 2020, Blundy sold part of his Adairs holdings after the stock rallied strongly following a stellar result.

Now, the latest notice suggests he is rebuilding a position after a much tougher period for the embattled retailer.

A rough year for Adairs

In February, Adairs reported a weaker first-half result for FY26.

Sales rose by 5.9% to $329 million, but statutory profit declined by 33.8% to $12.8 million.

That profit fall was driven by pressure on margins, which fell 120 basis points.

Adairs had to work through excess inventory, while higher delivery costs, rent, and a softer Australian dollar also weighed on the result.

The dividend was also lower. Adairs declared a fully-franked interim dividend of 5.5 cents per share, down from 6.5 cents a year earlier.

Margins are still the key issue

Adairs is not a broken business, but it is operating in a difficult part of the market.

Households are still watching their spending, especially after 3 interest rate rises already this year. At the same time, retailers are discounting heavily to keep stock moving.

And that has put pressure on margins.

Costs are also still an issue, with rent, wages, freight, and currency movements all affecting retailers in different ways.

For Adairs, the market now wants evidence that margins are stabilising and profit can start moving higher again.

Foolish Takeaway

Blundy buying back in is enough to make Adairs more interesting after such a rough run.

Nonetheless, the company still has a lot of work to do.

Investors will want to see margins improve and profit start moving in the right direction again.

The post Billionaire Brett Blundy is buying again. Is this battered ASX retail share about to turn? appeared first on The Motley Fool Australia.

The two businesses I want to highlight are names that have fallen heavily in the last few months. But analysts suggest the companies could rise significantly in the next year.

Let's look at two of the ideas that could deliver dramatic market-beating returns.

Objective Corporation Ltd (ASX: OCL)

Objective Corporation says that thousands of public sector organisations are shifting to digital operations using Objective software. It says that it has more than 1,000 customers with a 99% customer retention rate. Impressively, the business invests significantly in research and development each year.

According to CMC Invest, there have been six recent analyst ratings on the business, with four of those being a buy and two being a hold.

A price target is where analysts think the share price will be in 12 months from now.

Of those six ratings, the average price target is $17.70. That suggests a possible rise of around 60% over the next year, from where it is at the time of writing.

The ASX share's financials are growing at a pleasing pace. In the FY26 half-year result, revenue grew by 9% to $66.7 million and net profit after tax (NPAT) climbed 10% to $18.7 million.

Its growth remains promising – HY26 annual recurring revenue (ARR) increased by 12% to $120 million. The business is expecting its FY26 ARR growth to be between 10% and 14%. I think many ASX shares would be pleased with that level of growth.  

With the Objective Corporation share price down by around 40% in the last six months, it looks much better value.

Adairs Ltd (ASX: ADH)

Adairs sells furniture and homewares across three different businesses – Adairs, Mocka, and Focus on Furniture.

According to CMC Invest, there have been six recent ratings on the business, with three buy ratings and three hold ratings.

The average price target on the business from those six ratings is $2.02. That implies a possible rise of 65% from where it is today, though that may be an optimistic view amid the rising interest rate environment, which may impact retail spending.

The latest we heard from the business of its performance was for the first seven weeks of the second half of FY26, though this was before all of the various impacts seen over the last few months that could impact the sales.

At the time of the FY26 half-year result, it said it expects margin and underlying operating profit (EBIT) growth in the second half. While the short term may be uncertain, I think the longer term could prove to be positive for the ASX share.

It looks a lot cheaper to me after falling more than 50% in the last 12 months.

The post 2 ASX shares tipped to grow 60% or more in the next 12 months appeared first on The Motley Fool Australia.

The US and Iran launched missile strikes against each other in the Strait of Hormuz overnight as the US tried to restore shipping.

Meanwhile, the Reserve Bank of Australia (RBA) raised interest rates for a third consecutive time to 4.35% today due to rising inflation.

In a statement, the RBA said:

Inflation picked up materially in the second half of 2025, and information since the beginning of this year confirms that some of this increase reflected greater capacity pressures.

In addition, the conflict in the Middle East has resulted in sharply higher fuel and related commodity prices, which are already adding to inflation.

There are early signs that many firms experiencing cost pressures are looking to increase prices of their goods and services.

The Brent crude oil price hit a four-year high earlier today as the market becomes increasingly pessimistic that the war will end soon.

Economists are warning that oil shocks have a long-tail economic impact, and the RBA appears acutely aware of the upside risk to CPI.

Today, four of the 11 market sectors finished in the red, with energy in the lead, up 0.89%, while financials lagged, down 0.5%.

Scores of ASX 200 shares hit fresh 52-week lows today.

They included former market darling CSL Ltd (ASX: CSL) and retail stalwart Wesfarmers Ltd (ASX: WES) shares.

Let's take a look.

CSL Ltd (ASX: CSL)

The CSL share price hit a 9-year low of $122.48 today.

The ASX 200 healthcare giant has lost half its value over the past 12 months.

Company issues have compounded the impact of a broader ASX 200 healthcare sector rout due to many global headwinds.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price reached a 52-week low of $71.31 today.

The market's largest ASX 200 consumer discretionary share is down 9% over 12 months.

Consumer sentiment is crumbling in Australia today.

Last month, the consumer sentiment index recorded its biggest fall since the beginning of the pandemic five years ago.

Amcor Ltd (ASX: AMC)

The Amcor share price hit a 12-year low of $51.42 today, and is down 28% over 12 months.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price fell to a record low of $3.13 today, and is down 22% over 12 months.

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price hit a 52-week low of $4.39 today.

Stock in the ASX 200 furniture retailer has tumbled 15% over 12 months.

Ansell Ltd (ASX: ANN)

The Ansell share price dropped to a 2-year low of $25.35 today, and is down 18% over 12 months.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price hit a 3-year low of $11.47 on Tuesday, and is down 12% over 12 months.

Austal Ltd (ASX: ASB)

Austal shares fell to a 52-week low of $4.01 today.

The ASX 200 industrial share has fallen 21% over 12 months.

ARB Corporation Ltd (ASX: ARB)

The ARB Corporation share price hit a 52-week low of $17.89 today, and is down 43% over 12 months.

Nick Scali Ltd (ASX: NCK)

The Nick Scali share price hit a 52-week low of $14.03, and has cooled 18% over 12 months.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price hit a 2-and-a-half-year low of $5.29 today.

This ASX 200 retail share has lost 69% of its market capitalisation in 12 months.

Inghams Group Ltd (ASX: ING)

The Inghams share price descended to a 52-week low of $1.71 today.

The ASX 200 consumer staples share has fallen 51% over 12 months.

Centuria Office REIT (ASX: COF)

Centuria shares dipped to a 52-week low of 92 cents today.

The ASX 200 real estate investment trust (REIT) has decreased 26% over 12 months.

Accent Group Ltd (ASX: AX1)

Accent shares hit a 13-year low of 51 cents, and are down 72% over 12 months.

Adairs Ltd (ASX: ADH)

The Adairs share price hit a 52-week low of $1.25, and is down 51% over 12 months.

The post CSL and Wesfarmers among scores of ASX shares hitting fresh 52-week lows appeared first on The Motley Fool Australia.

However, two that have received a downgrade are Adairs Ltd (ASX: ADH) and LGI Ltd (ASX: LGI). 

Lets see what the broker had to say. 

Adairs in transition phase 

Adairs is a homewares and home furnishings retailer in Australia and New Zealand. 

It has been struggling so far in 2026, down nearly 28% in that span. 

Shares closed last week at $1.30 each. 

The team at Bell Potter said in its recent report that it remains cautious on these ASX shares in the near term. 

The broker said Adairs' 1H26 result saw the company delivering between the mid to high points of the downgraded guidance range provided in Oct-25. 

However gross margins were towards the bottom end of the guidance range but with some good wins in the Mocka brand. 

While the revenue growth of the key growth brands, Adairs (~70% of the group) and Mocka ~10% of the group) saw further improvements for the first 7 weeks of 2H26 vs 1H26, we see some headwinds for the key 4Q26 as Adairs cycles the range curation driven clearance activity in the pcp and given the current macroeconomic environment.

Based on this guidance, the broker has lowered its price target 44% to $1.40 per share (previously $2.50). 

Bell Potter maintained its hold rating. 

While we anticipate the current transition phase across all three brands to progress over the near term, we expect operating leverage led earnings growth to be skewed to the long term with our estimates seeing ~6% revenue growth and ~16% EBIT growth over the next 4 years (4 yr CAGR).

LGI gets a slight downgrade

LGI is engaged in the recovery of biogas from landfills, and the subsequent conversion into renewable electricity and saleable environmental products.

Its share price is down almost 12% year to date, and closed last week at $3.62. 

Following its H1 FY26 results, the team at Bell Potter slightly lowered its price target on these ASX shares. 

The broker said wholesale electricity prices fell again in early 2026 across the National Electricity Market (NEM). Prices dropped about 27% in Queensland and 16% in New South Wales compared to last year.

Even though electricity demand reached a record for the quarter, prices still declined because temperatures were milder and there was less price volatility.

Based on this guidance, the broker decreased its price target to $4.50 (previously $4.64). 

In good news for investors, this price target still indicates a solid upside potential of nearly 25%. 

The broker maintained its buy recommendation on these ASX shares. 

The post Why did these ASX shares receive a downgrade from Bell Potter? appeared first on The Motley Fool Australia.

For you to be entitled to a stock's next dividend, you must own it before its ex-dividend date.

Here are some of the ASX shares going ex-dividend next week.

ASX shares with ex-dividend dates next week

The post 32 ASX shares about to go ex-dividend appeared first on The Motley Fool Australia.

In a statement to the ASX on Monday, Adairs said revenue was up 5.9% to $329 million for the first half, while gross margin fell 120 basis points to 57.7% and net profit was 33.8% lower at $12.8 million.

The company added:

Adairs sales and margin gained momentum through Q2 after a challenging Q1 where heavy clearance activity was undertaken. Mocka achieved another outstanding result and is poised to accelerate further with the opening of retail stores. The management changes at Focus on Furniture provides the opportunity to reset operations and strategy to unlock the potential of this business.

Breaking down the results

The Adairs division delivered first-half sales of $229.4 million, up 4%, supported, the company said, by strong execution through sales events including Black Friday, Christmas, and Boxing Day.

Underlying earnings of $18.6 million were down 10%, primarily attributable to Q1 clearance sales, the company said.

During the half, two new stores were opened, two were upsized and refurbished, and one closed.

In the Focus on Furniture division, sales were up 1% to $63.1 million while like for like sales declined 3.3%.

In the Mocka division, sales hit a record $36.5 million, up 29.8%, "driven by product innovation and effective customer acquisition strategies, particularly in Australia'', Adairs said.

Adairs added:

Australian sales increased +44.5%, with customers responding to on-trend, great-value new ranges. New Zealand returned to growth, with sales up +8.2%, supported by new product and continued positive results from the shop-in-shop trial, which contributed $1.2 million in sales.

Mocka will open its first standalone retail store in May this year, the company said.

Managing director Elle Roseby said regarding the results that they were heading in the right direction.

Whilst the results across the brands were mixed, I'm pleased with the material progress we have made and the significant decisions we have actioned to reposition and reset our businesses. This work positions us well for sales growth, margin expansion and earnings improvement into 2H. Specifically, I'm pleased with the extent to which we were able to clear excess inventory in Q1 at Adairs, leading to improved performance in Q2. At Focus on Furniture we have made the important changes to the leadership team which allows us to reset our operational approach and strategy. Finally, I'm delighted with the continued growth at Mocka and the opportunity that gives us to open our first standalone retail store for Mocka in 2H

Adairs shares were trading 4.1% higher at $1.898 on Monday morning. The company was valued at $320.9 million at the close of trade on Friday.

The post This retailer's shares are up despite mixed results, as the business goes through a reset period appeared first on The Motley Fool Australia.

If we're going to beat the market, we need to own shares in a different way to the market average. That doesn't necessarily need to be through owning businesses that are trading cheaply, it can be done by buying high-quality companies for the long-term.

I'm going to talk about two ASX shares that I think are trading at very cheap price/earnings (P/E) ratios.

Adairs Ltd (ASX: ADH)

Adairs sells homewares and furniture through three different businesses – Adairs, Mocka and Focus on Furniture.

I wouldn't say this business has the strongest economic moat on the ASX and it's quite heavily exposed to changes in consumer sentiment. But, those cyclical changes in customer demand and investor confidence can prove to be buying opportunities.

At the time of writing, the ASX share is down by 37% since 19 September 2025, making it seem much cheaper.

While trading conditions may be tough, the business is now trading at a very low level. Analysts from UBS currently predict that the business could generate earnings per share (EPS) of 20 cents in FY26. That means it's valued at just 9x FY26's estimated earnings.

That looks particularly cheap with the fact that the business is projected to steadily increase its net profit every year to the end of FY30. By FY30, UBS forecasts its EPS could rise to 29 cents.

Centuria Industrial REIT (ASX: CIP)

This is a real estate investment trust (REIT) that owns a portfolio of industrial properties around Australia. Its real estate is located in metropolitan locations that are in-demand by tenants and the vacancy rate is very low. This is a strong support for the rental earnings of the business.

Industrial properties are benefiting from strong demand tailwinds including e-commerce, logistics, data centres, refrigerated space and more.

The fund manager of the ASX share, Grant Nichols, said at the end of October:

CIP continues to achieve strong outcomes across its portfolio relating to leasing, capital transactions and value add initiatives. The ability to deliver these results is credited to CIP's portfolio being concentrated in Australia's urban infill markets where tenant demand is strongest, vacancy is low and supply is constrained. These urban infill assets provides multiple future opportunities for alternative, higher-use developments such as data centres and residential schemes.

At the end of FY25, it reported net tangible assets (NTA) of $3.92 per unit, so it's trading at a discount of more than 18%, which I think makes it very cheap.

In FY26, the business is expecting to generate funds from operations (FFO – rental profit) – between 18.2 cents to 18.5 cents per unit, funding a distribution per unit of 16.8 cents. That translates into a forward distribution yield of 5.25%.

The post 2 ASX shares that are absurdly cheap right now appeared first on The Motley Fool Australia.

If businesses are undervalued, they can be particularly appealing on the dividend yield side of things because a lower valuation boosts the yield.

While the two names below aren't the most famous, it looks to me like a good time to invest in both of them.

Centuria Industrial REIT (ASX: CIP)

This ASX dividend share is a real estate investment trust (REIT) that owns a portfolio of industrial properties across Australian metropolitan locations.

It continues to benefit from a low vacancy rate in Australian cities because of the limited space and the amount of demand for industrial properties.

Australia requires more space for fresh food and pharmaceutical demand, increased data centre demand, onshoring of supply chains and increasing e-commerce adoption.

The business has properties across the subsectors of distribution centres, manufacturing and production, transport logistics, data centres and cold storage, giving it broad exposure to the industrial sector.

In FY26, it's expecting to grow its rental earnings – as measured by the funds from operations (FFO) – per unit to between 18.2 cents to 18.5 cents. This guidance represents growth of up to 6% compared to FY25.

The distribution is being paid in quarterly instalments and the ASX dividend share expects to deliver a payout of 16.8 cents per unit in FY26, representing a year-over-year increase of 3% to 16.8 cents. It has a distribution yield of 5.1%.

It also reported $3.92 of net tangible assets (NTA) at 30 June 2025, so it's valued at an attractive 16% discount.

Adairs Ltd (ASX: ADH)

Adairs is a retailer of homewares and furniture. It has three businesses: Adairs, Focus on Furniture and Mocka.

The company has suffered a valuation decline in recent months. Over the past three months its share price has dropped around 30%.

But, for such a cyclical retailer like Adairs, this lower valuation could be the right time to pounce and then be patient.

This ASX dividend share is not priced for a lot of success over the medium-term. But, analyst estimates suggest that the company could see steadily rising earnings and dividends in the coming years.

The projection on CMC Markets suggests the ASX dividend share could generate earnings per share (EPS) of 20.1 cents in FY26, 24.1 cents in FY27 and 26.8 cents in FY28.

With those forecasts, the potential dividend per share could be 12.5 cents in FY26, 15.5 cents in FY27 and 18 cents in FY28.

At the current Adairs share price, it's valued at less than 9x FY26's estimated earnings with a possible grossed-up dividend yield of 10%, including franking credits.

The trading update in October suggested that group sales are expected to grow by at least $9 million in the first half of FY26 to between $319.5 million to $331.5 million. Sales growth is a promising sign for earnings growth, even if it's not as strong as the market was hoping for.

The post These 2 ASX dividend shares are great buys right now appeared first on The Motley Fool Australia.

But which ASX dividend shares are in the buy zone? Let's take a look at three that analysts are recommending to clients. They are as follows:

Adairs Ltd (ASX: ADH)

The first ASX dividend share that could be a buy according to analysts is Adairs. It is one of Australia's leading homewares retailers.

Adairs has returned to form recently following a difficult period. And with improved inventory management, stronger online performance, and cost efficiencies flowing through, the company now sits in a healthier financial position.

As consumer sentiment gradually improves, Adairs' margin profile and cash generation should improve, supporting its fully franked dividend. Morgans expects the company to pay fully franked dividends of 11 cents per share in FY 2026 and then 15.5 cents per share in FY 2027. Based on its current share price of $1.85, this equates to dividend yields of 6% and 8.4%, respectively.

Morgans has a buy rating and $2.60 price target on its shares.

BHP Group Ltd (ASX: BHP)

Another ASX dividend share that could be a top pick for passive income is BHP.

The Big Australian's world-class and low cost mining assets generate significant free cash flow through the cycle, allowing the company to continue rewarding its shareholders even when commodity prices soften.

Morgan Stanley expects BHP to pay dividends of approximately $1.90 per share in FY 2026 and then $1.70 per share in FY 2027. This would mean dividend yields of 4.4% and 4%, respectively.

The broker also sees plenty of upside for investors with its overweight rating and $48.00 price target.

Dicker Data Ltd (ASX: DDR)

A third ASX dividend share that analysts rate as a buy is Dicker Data. It is an IT hardware and software distributor with a long track record of steady revenue growth, resilient margins, and rising dividends.

The company's relationships with top-tier technology vendors, along with its focus on recurring product demand, have helped support consistent cash flow. And with digital infrastructure spending remaining robust, Dicker Data appears well placed to continue rewarding shareholders with attractive fully franked dividends.

Morgan Stanley is forecasting fully franked dividends per share of 47.6 cents in FY 2025 and then 50.8 cents in FY 2026. This equates to dividend yields of 4.6% and 4.9%, respectively.

The broker has an overweight rating and $10.30 price target on its shares.

The post 3 ASX dividend shares to buy for a passive income stream appeared first on The Motley Fool Australia.

Plenty of homegrown ASX shares deliver consistent earnings, strong cash flow, and fully franked dividends.

If you are looking to build or top up an income-focused portfolio, here are five ASX dividend shares that could be worth considering:

Adairs Ltd (ASX: ADH)

Adairs is one of Australia's leading homewares retailers. It has returned to form recently following a difficult retail cycle. With improved inventory management, stronger online performance and cost efficiencies flowing through, the business now sits in a healthier financial position. As consumer sentiment gradually improves, Adairs' margin profile and cash generation should benefit, supporting its fully franked dividend. It currently trades with an estimated forward dividend yield of 6.8%.

BHP Group Ltd (ASX: BHP)

BHP is one of the most dependable dividend payers on the ASX. Its world-class mining assets generate enormous free cash flow through the cycle, allowing the company to continue rewarding shareholders even when commodity prices soften. Analysts expect BHP to maintain strong fully franked distributions over the coming years thanks to its low-cost operations and robust balance sheet. For example, the consensus estimate is for a 3.9% dividend yield in FY 2026.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to look at is Coles. It is a favourite among defensive income investors, and for good reason. This supermarket giant generates consistent earnings through all economic conditions, supported by steady demand for essential goods. In addition, its focus on automation, cost efficiencies, and private-label expansion is helping push margins higher, which bodes well for its future dividends. The market is expecting a fully franked 3.5% dividend yield this year.

Dicker Data Ltd (ASX: DDR)

Dicker Data is an IT hardware and software distributor with a long track record of steady revenue growth, resilient margins, and rising dividends. Its relationships with top-tier technology vendors, along with its focus on recurring product demand, have helped support consistent cash flow. As digital infrastructure spending remains strong across the corporate sector, Dicker Data is positioned to continue rewarding shareholders with fully franked dividends. It currently trades with an estimated forward dividend yield of 4.6%.

Telstra Group Ltd (ASX: TLS)

Finally, Telstra could be a core holding for income-focused investors. With strong demand for mobile services, expanding 5G adoption, and ongoing improvements to network efficiency, Telstra continues to deliver stable earnings. Management has outlined plans to lift dividends gradually through its Connected Future 30 strategy, supported by recurring cash flow from mobile, enterprise and infrastructure businesses. This is expected to underpin a 4.1% fully franked dividend yield in FY 2026.

The post Buy Telstra and these ASX dividend shares for passive income appeared first on The Motley Fool Australia.

Some names in the retail sector have experienced significant declines recently, as trading updates were not as good as expected.

There's no guarantee that disappointment in the latest update will mean a positive surprise in the next one. However, on a three- or five-year view, I think there are some names capable of recovering substantially from their current position, such as the following two.

Accent Group Ltd (ASX: AX1)

Accent owns several retail brands, including The Athlete's Foot, Nude Lucy, Stylerunner and Platypus. It also sells various global shoe brands, including Vans, Ugg, Skechers and Hoka. The business has also started opening Sports Direct stores in Australia.

The trading update for FY26 did not impress the market. While total group-owned sales were up 3.7%, like-for-like sales were down 0.4% and the gross profit margin for FY26 year to date was down 160 basis points (1.60%) compared to the prior year. Operating profit (EBIT) is expected to be in the range of $85 million to $95 million for FY26.

The ASX 300 share has a number of initiatives to deliver growth, including opening 50 Sports Direct stores over the next six years, rolling out dozens of stores for the other brands (including Stylerunner and the highly profitable Nude Lucy), buying back The Athlete's Foot stores from franchisees and growing new distributed brands.

According to the forecast from UBS, the Accent share price is valued at under 11x FY27's estimated earnings after falling close to 30% in a month.

The weaker performance is disappointing, but I believe it can bounce back from this level and potentially surprise investors.

Adairs Ltd (ASX: ADH)

Adairs is a furniture and homewares business which sells items through three different brands – Adairs, Mocka and Focus on Furniture.

The Adairs share price has fallen by more than 30% since 19 September 2025, making it appear to be a better value proposition if there's a recovery in the medium term. I believe that's possible following the rate cuts by the RBA and the end of high inflation.

The ASX 300 stock's update was also not exciting – it downgraded its sales expectations to a range of $319.5 million to $331.5 million, down from the previous range of $324.5 million to $336.5 million. The gross profit margin guidance was narrowed to between 59% to 59.5%.

I'm hopeful of a recovery in consumer spending overall, but Adairs is working on plans to improve, which could be more impactful.  

It wants to reduce Adairs' inventory and cut the item count by 10%, maximise key sales periods, enhance the Linen Lover membership value, launch new store formats and upgrade its technology.

The ASX 300 share wants Focus on Furniture to be Australia's favourite furniture retailer by improving product quality and stock availability, expanding the choice of fabrics and colours, be faster to market with on-trend furniture, it's offering customers flexible payment options, it'll open dozens of more stores and accelerate store upgrades.

Finally, with the Mocka business, it wants to build brand awareness, expand the range and open a physical store trial in Australia.

According to the forecast from UBS, Adairs is trading at 8x FY27's estimated earnings.

The post These 2 ASX 300 shares are bargain buys appeared first on The Motley Fool Australia.

All three of the companies that I'm going to talk about have seen their share prices decline in recent times. But, I believe they are great candidates to bounce back from recent difficulties; they only seem to me like temporary challenges.

Let's get into what makes them exciting ideas.

Beacon Lighting Group Ltd (ASX: BLX)

As the chart below shows, the Beacon share price has fallen more than 20% since August.

Beacon has a few different segments including its Beacon Lighting stores for consumers, a trade segment (for electricians, builders, architects and interior designers) and international sales.

The ASX small-cap share is exposed to a number of areas of the economy that have struggled including consumer spending, construction and trade activity.

But, following rate cuts, I think the company has the potential to become a lot larger. It has identified a potential store network of close to 200 Beacon Lighting stores, implying a possible increase of around 50% from where it is today.

I'm also hopeful that the company can grow its earnings in international markets such as Hong Kong and Europe (which saw double-digit sales growth). Impressively, Tmall Global sales in China grew by 72.3% during FY25.

According to the forecasts on CMC Markets, the Beacon share price is valued at 20x FY26's estimated earnings and 17x FY27's estimated earnings.

Adairs Ltd (ASX: ADH)

Adairs is a homewares and furniture retailer that operates through three different businesses – Adairs, Mocka and Focus on Furniture.

It has dropped around 30% from 19 September 2025, as the below chart shows.

I view Adairs as a discretionary retailer that goes through elevated volatility, so it can be an opportunity to buy when investors don't seem very confident.  

The ASX small-cap share recently reduced its FY26 guidance, but it's working on a number of initiatives to improve its profitability.

I think it's trading at a price that's too low given how retail spending could recover over the next year or two.

According to the forecasts on CMC Markets, it's trading at 10x FY26's estimated earnings and 8x FY27's estimated earnings.

Inghams Group Ltd (ASX: ING)

Inghams is one of the largest poultry businesses in Australia. The Inghams share price is down around 40% from June 2025.

The company has suffered through a number of negatives including transitioning to a new Woolworths Group Ltd (ASX: WOW) supply agreement, a shift to a lower-margin mix, weaker wholesale pricing and weaker overall retail demand.

But, the poultry ASX small-cap share is working on a number of ways to try to improve profitability, including reducing inventory, matching production to demand and reducing costs.

I'm optimistic that the company's profits can recover over the next couple of years, making the current valuation attractive as a turnaround opportunity.

According to the forecasts on CMC Markets, the Inghams share price is valued at 12x FY26's estimated earnings and 9x FY27's estimated earnings.

The post 3 ASX small-cap shares I'd buy with $3,000 right now appeared first on The Motley Fool Australia.

It's close to its 52-week low, and I think that makes this a good time to invest in the discretionary retailer.

The business may be best known for its Adairs business, but it also owns Mocka and Focus on Furniture. It sells furniture and homewares.

Slowing sales

The ASX small-cap stock recently provided a trading update, which noted slowing sales growth in the first half of FY26 to date.

Adairs' sales growth has moderated as the company pulled back on the frequency and intensity of its promotional activity.

After an encouraging start, sales at Focus on Furniture slowed despite ongoing promotional activity, leading to a lower-than-planned gross profit margin.

However, Mocka's strong sales momentum has been maintained with customers continuing to respond well to new products.

The next two months are vital for the company's overall first-half performance, with Black Friday, Christmas, and other trading events.

Adairs reduced its HY26 sales guidance from a range of $324.5 million to $336.5 million, down to between $319.5 million to $331.5 million. The gross profit margin guidance has been narrowed to between 59% to 59.5%, changed from 58.8% to 59.6%.

Management of the small-cap stock did say that they are cautiously optimistic about the trading outlook for the rest of the half. All three businesses are "well stocked".

Why this is a good time to invest in the ASX small-cap stock

It was a disappointing update; there's a reason why the Adairs share price has fallen so far in the last couple of months. But, I think the valuation takes into account the negativity and leaves room for contrarian investors to benefit from a potential rebound.

Adairs is working on a number of initiatives to improve profitability.

In the Adairs business, it wants to reduce its item count by 10%, maximise key event periods, enhance the Linen Lover membership, enable sustainable sales and margin growth (and reduce excess inventory), launch its next generation of 'store of the future', and upgrade its data and technology.

With Focus on Furniture, it wants to improve product quality and stock availability, expand product choice (including fabrics and colours), be faster to market, improve in-store merchandising, accelerate store upgrades, and open more stores.

With the Mocka business, the ASX small-cap stock aims to invest in marketing, expand its range further, and deliver a Mocka standalone store strategy.

After the valuation decline, it's now trading at around 10x FY26's estimated earnings, according to the forecast on Commsec.

The post Why I think this ASX small-cap stock is a bargain at $2.03 appeared first on The Motley Fool Australia.

Adairs released an update this week ahead of its annual general meeting, which said that the company's sales growth had slowed as it pulled back on promotional activity in its Adairs branded division.

The company downgraded its first-half guidance from projected revenue of $324.5 to $336.5 million to $319.5 to $331.5 million as a result.

The Adairs business comprises three retail brands: Adairs, Focus on Furniture, and Mocka.

Sales slowing

The company told the market that:

After am encouraging start, sales at Focus Furniture have slowed despite ongoing promotional activity leading to lower than planned gross profit margin. Mocka's strong sales momentum has been maintained with customers continuing to respond well to new product.

Jarden, in a research note sent to clients, said the update "implies the test is still to come''.

This was because about 55% of sales came towards the end of the first half of the financial year, as Black Friday sales and Christmas skewed the results.

The Jarden analysts added:

Focus sales downgrades are consistent with industry feedback on weaker sector furniture sales in August and September.

The Jarden team said, despite the soft update, they remained comfortable with their buy rating on the stock and had a price target of $2.68 on Adairs shares, albeit reduced from their previous target of $2.96.

Including 3.4% of returns from dividends, the Jarden analysts are expecting a total shareholder return over 12 months of 17%.

Key risks to the company going forward included the macroeconomic environment, promotions, costs, the company's execution on its national distribution centre, and competition, the Jarden team said.

Adairs said in its update this week that the company remained "cautiously optimistic" about the outlook for the rest of the half.

All three businesses are well-stocked, and our term are well-prepared for the peak trading period ahead.

Protest votes

The company received a strong protest vote against its remuneration report this week, with 20.4% of shares voted going against its adoption.

This fell short of the 25% of no votes needed to constitute a strike under Australian corporate law.

There was also a significant vote of 13.4% against the re-election of Trent Peterson as a director of the company.

The post This ASX 300 retail stock should deliver double-digit returns, one broker says appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Adairs Ltd (ASX: ADH)

The Adairs share price is down 6% to $2.21. This appears to have been driven by a broker note out of Bell Potter this morning. In response to the homewares retailer's trading update, its analysts have cut their valuation. Bell Potter now has a hold rating and $2.50 price target. It said: "Our PT is down ~4% to $2.50/share (prev. $2.60/share) driven by our earnings downgrades. Our target P/E multiple remains unchanged at 12.5x (on a FY26e and FY27e blended basis). We see several upside catalysts for ADH in the upcoming seasonal period given the higher than industry average contribution at 55% of 1H sales and continuing tailwinds from the housing market/consumer recovery."

Alcoa Corp (ASX: AAI)

The Alcoa Corp share price is down 3.5% to $55.47. This follows the release of the alumina producer's quarterly update. For the first quarter, the company reported a 3% increase in revenue to US$3 billion but an adjusted net loss of US$6 million. The latter is down from a profit of US$135 million a year earlier.

ASX Ltd (ASX: ASX)

The ASX share price is down 1% to $56.91. This morning, this stock exchange operator released an update ahead of its annual general meeting. Management advised that "total expense growth guidance remains between 14% and 19% in FY26 compared to FY25. This includes operating expenses of between $25 million and $35 million related to ASX's response to the ASIC inquiry." Its core business expenses (ex. ASIC costs) are expected to be at the upper end of its guidance range.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price is down 3.5% to $16.54. Investors have been selling the retailer's shares following the release of a trading update at its annual general meeting. The Supercheap Auto owner revealed that sales were up 4.5% for the first 16 weeks of FY 2026. In addition, it advised that its gross margin has been stable. Judging by its share price weakness today, it seems that the market was expecting a stronger start to the new financial year.

The post Why Adairs, Alcoa, ASX, and Super Retail shares are falling today appeared first on The Motley Fool Australia.

In early trade, the ASX 300 stock is down 3% to $2.11.

Why is this ASX 300 stock falling?

Investors have been rushing to the exits this morning after the homewares retailer downgraded its guidance for the first half of FY 2026.

According to the release, year to date trading across the first half of FY 2026 has been largely in line with what was foreshadowed in management's commentary provided with its results in August.

The ASX 300 stock revealed that Adairs' sales growth has moderated as it pulled back on the frequency and intensity of its promotional activity.

For the Focus on Furniture brand, after an encouraging start, sales have slowed despite ongoing promotional activity, which has led to a lower than planned gross profit margin.

One positive is that its online business, Mocka, has continued its strong sales momentum in the first half, with customers continuing to respond well to new product.

Overall, this isn't the best way for the ASX 300 stock to be performing ahead of the most important period of the half. Commenting on the period to come, it said:

Looking ahead, the next 10 weeks is the most important trading period for the half, delivering approximately 55% of sales for the half with key events like Adairs' next Linen Lover Sale Event (which commences this evening), Black Friday, Christmas, and Boxing Day sales to come. The H1 result is heavily dependent on performance during these peak periods.

Guidance downgraded

The company has downgraded its first half sales and gross margin assumptions for the Adairs and Focus on Furniture businesses.

It now expects Adairs sales of $225 million to $232 million (down from $229 million to $236 million) with a gross margin of 61.4% to 61.9%.

The Focus on Furniture business is now expected to generate sales of $60 million to $63 million (down from $62 million to $64 million) with a gross margin of 50.2% to 50.7%.

This is ultimately expected to lead to Adairs reporting group sales of $319.5 million to $331.5 million for the half. While this is up 2.9% to 3.8% on the prior corresponding period, it is down from its previous guidance range of $324.5 million to $336.5 million. This is expected to be achieved with a gros margin of 59% to 59.5%, compared to its previous guidance of 58.8% to 59.6%.

Commenting on its outlook, the ASX 300 stock said:

We remain cautiously optimistic about the trading outlook for the rest of the half. All three businesses are well stocked, and our team are well prepared for the peak trading period ahead.

The post Guess which ASX 300 stock just downgraded its guidance appeared first on The Motley Fool Australia.

With the August reporting season done and dusted, scores of companies have ex-dividend dates next week.

If you're keen to buy any of these ASX shares while they are still trading cum dividend, time is running out!

To receive a stock's next dividend, you must buy or already own it before the ex-dividend day.

We provide a sample of the ASX shares going ex-dividend next week below.

35 ASX shares about to go ex-dividend

The post 35 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.