Meantime, brokers have reviewed their ratings and 12-month share price targets on three ASX shares.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is steady at 11 cents, and down 12.5% over 12 months.

This week, Shaw & Partners gave the ASX consumer staples share a buy rating.

The broker said its DCF valuation remained 18 cents per share following the company's 2026 Strategy Day.

We are particularly impressed by BUB's success in the USA.

Having only entered the USA in 2022 under the FDA's enforcement discretion, US distribution is expected to reach circa 10,000 doors by end 2026, up over 100% on 2025.

Given that Kendamil only recently received permanent FDA approval, we expect BUB's permanent approval to come through shortly. 

BUB re-iterated its FY26 guidance for Revenue of $120-125m and reported EBITDA of $4- 6m.

Our forecasts remain $121.5m and $4.5m, respectively.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Soul Patts shares are $43.26, up 0.7% today, and up 23.8% over 12 months.

Morgans maintains a hold rating on this ASX financial share following its 1H FY26 report.

The diversified investment group reported statutory net profit after tax (NPAT) of $2,303 million, up 604.3%.

The extraordinary increase reflected the Brickworks merger, the sell-down of Tuas Ltd (ASX: TUA) and Aeris Resources Ltd (ASX: AIS) shares, and a realised gain from the sale of Apex Healthcare.

Underlying regular NPAT increased 6.7% to $304 million.

The pre-tax net asset value (NAV) climbed 14.6% to $13.8 billion, and the portfolio generated a 9.7% return for the first half.

Soul Patts increased its interim dividend by 9.1% to 48 cents per share, fully franked.

Morgans commented:

We continue to like the SOL story, particularly its track record of growing distributions and history of uncorrelated and above market returns.

Endeavour Group Ltd (ASX: EDV)

Endeavour shares are $3.28, down 0.2% today, and down 16.2% over 12 months.

The Endeavour share price fell to a record low of $3.13 on Tuesday.

On The Bull this week, Mark Elzayed from Investor Pulse revealed a sell rating on Endeavour shares.

In our view, key concerns emerged in its first half result in fiscal year 2026.

Underlying group earnings before interest and tax of $563 million fell 5.4 per cent despite a 0.9 per cent increase in group sales to $6.7 billion.

While the hotels segment generated a 4.4 per cent increase in sales, the retail division, comprising Dan Murphy's and BWS, posted a 11.6 per cent decline in underlying EBIT.

Statutory net profit after tax fell 17.1 per cent to $247 million, impacted by $45 million in significant items.

Downward revisions in consensus earnings per share suggest the bottom may not have been reached at this point.

The post Buy, hold, or sell? Bubs, Soul Patts, and Endeavour shares appeared first on The Motley Fool Australia.

That's because if the team at Bell Potter is on the money with its recommendation, it could deliver explosive returns over the next 12 months.

Which small-cap ASX share?

The small cap that Bell Potter is recommending to clients is Bubs Australia Ltd (ASX: BUB).

It is an early-stage fast-moving consumer goods (FMCG) company with exposure to growing demand for premium foreign sourced infant formula (IMF) products in China and the United States.

Bell Potter notes that Bubs recently held its investor day event and was pleased with what it heard. It explains:

In a short span of time BUB has secured 1.3% share of the US IMF market, with a 9% share in the premium natural segment (a category that grew +44% YoY in 2025). Increasing access to product is a key driver of growth with store exposures grown +27% in 1H26 to 5,558 and an expansion to 8,891 targeted by end FY26. The USFDA approval process for permanent market access is ongoing.

Targeting entry into Vietnam, Canada and Mexico, markets with a combined value of A$3.4Bn and growing at an aggregated forecast rate of ~10% p.a. Replicating some of the success seen in Australia and the US (share of 5.1% and 1.3%, respectively) implies a reasonable level of upside if successful.

Bell Potter was also pleased to see that the small-cap ASX stock has reaffirmed its guidance for FY 2026. This will see revenue of $120 million to $125 million, which is up from $104.5 million in FY 2025.

Big potential returns

According to the note, the broker has retained its speculative buy rating and 18 cents price target on the small-cap ASX stock.

Based on its current share price of 11 cents, this implies potential upside of 64% for investors over the next 12 months.

Bell Potter is bullish on the company due to its belief that FY 2026 will be a transformational year. It explains:

FY26e is a transformational year for BUB, with reported EBITDA projected at $4-6m despite incurring $5m in air freight and tariff related expenses, some of which will dissipate in FY27e. In the near term a +59% expansion in ranging points in the US and market realignment of China IMF channels towards English label formats should support a stronger 2H26e sales outcome.

With the US the primary growth engine of the business, gaining permanent access, is likely to prove a de-risking event from a value standpoint. In the interim, recent quarterly reporting saw BUB continue to materially outperform its US IMF peer group in growth (up +32% YoY in 2Q26 in USD terms vs. sector peer weighted revenue growth of -7% YoY).

The post This small-cap ASX share could rise 60% appeared first on The Motley Fool Australia.

Bubs recently reported its half-year results, and Shaw and Partners says there's a lot to like, and has assigned a price target to the company, which is 50% above where the shares are now.

More on that later – let's look at what the company reported.

Solid underlying result

Looking at the underlying results, Bubs reported EBITDA of $4.4 million, up from just $0.5 million in the previous corresponding period.

On a net profit basis, the result was 50% lower than the previous corresponding period at $1.8 million.

Revenue came in at $55.5 million, up from $48.5 million, and the company maintained its full-year revenue guidance of $120 to $125 million, with EBITDA of $4 to $6 million, up from $1 to $2 million.

Bubs Chief Executive Officer Joe Coote said regarding the result:

We're pleased with the strong first half momentum and are on track to exceed our FY26 commitments. Our revenue and gross profit growth highlight the strength of our brands and the diversity of our business model, with the US our main growth engine as major retailers expand store counts and instore ranging. We have continued to invest in rightsizing our inventory in market to meet demand and respond quickly to market opportunities, particularly in the US and China, where momentum continues to build. Our Australia and Rest of World (ROW) markets are stabilising. Concurrently, we have strengthened our leadership capability with further key appointments and undertaken a rationalisation of our product portfolio.

Shares looking cheap

Shaw and Partners said there were some bright lights in the report.

The USA remains Bub's largest and most profitable market, driven by strong revenue growth, recording $34.2m in total group revenue, up 47.6% on the previous corresponding period. Momentum continues to build through category expansion in Goat infant formula, supported by ranging expansion across major retailers (e.g. Walmart, Target). Increasing store counts and broader instore distribution are driving sustained sales growth into the second half.

In China there was also strong underlying demand, while a drop in revenue in that market "reflected temporary in‑market inventory effects and short‑term supply shortages''.

Ageing stock has now been fully cleared, and in‑market inventory levels are healthy, positioning the business for normalised sales in the second half.

Shaw and Partners have run the ruler over the results and integrated the upgraded earnings guidance into their model, and subsequently upgraded their price target on Bubs shares from 17 cents to 18 cents.

This compares with a current price of 12 cents per share for the small-cap stock. Bubs is currently valued at $107.3 million.

The post This penny stock could deliver 50% upside, Shaw and Partners says appeared first on The Motley Fool Australia.

Here, we canvas the views of two experts on three ASX All Ords shares within the consumer staples, utilities, and healthcare sectors.

One is a buy, one is a hold, and one is a sell.

Let's review.

Bubs Australia Ltd (ASX: BUB)

Bubs Australia shares are steady at 13 cents per share on Tuesday.

The share price of this milk producer has risen 8.3% over the past 12 months.

Shaw and Partners has a buy rating on the ASX consumer staples share.

Bubs released its 2Q FY26 quarterly activities report on 30 January.

The company reported 2Q FY26 net revenue of $29.9 million, up 17%, and 1H FY26 net revenue of $55.5 million, up 14.3%.

After reviewing the report, Shaw and Partners lowered its 12-month price forecast from 20 cents to 17 cents per share.

The broker said:

[The] 2Q FY26 quarterly activities report highlighted another strong quarter of sales in the USA, and ongoing inventory issues plus some challenging conditions in Australia, China, and ROW.

The company remains confident of receiving permanent FDA approval and noted the FDA has no further questions on the clinical trial component of its submission at this time.

Conditions in Australia/China/ROW should improve in 2H26.

We have adjusted our BUB forecasts to incorporate the 2H26 quarterly.

Given the expected TSR [total shareholder return] of circa 31%, we rate the stock a BUY. 

Origin Energy Ltd (ASX: ORG)

The Origin Energy share price is $11.01, down 1.1% today and up 8.8% over the past 12 months.

In a new note, Ord Minnett maintains a hold rating on this ASX utilities share.

The broker lifted its share price target from $10.80 to $11, implying the stock is fully valued today.

Ord Minnett said:

… we remain cautious on Origin given the headwinds we see – increased capital expenditure to maintain APLNG production, ongoing bad debt problems at Octopus, weaker wholesale electricity pricing, and a likely fall in spot LNG prices – and remain at Hold.

4DMedical Ltd (ASX: 4DX)

4DMedical shares are $3.45 apiece, down 0.4% today.

The respiratory imaging technology company has enjoyed a stunning share price growth of 562% over the past year.

On The Bull this week, Tony Paterno from Ord Minnett explained the broker's sell rating on the rocketing ASX healthcare share.

Paterno said:

In our view, there's a growing disconnect between 4DX's valuation and the uncertainty around near term CT:VQ revenue generation.

While we remain positive on 4DX's technology, we pull back to a sell recommendation on valuation grounds. 

The post Buy, hold, sell: Bubs, Origin Energy, 4D Medical shares appeared first on The Motley Fool Australia.

That's because the team at Bell Potter believes its shares could rocket over the remainder of 2026.

Which ASX penny stock?

The penny stock that Bell Potter is tipping as a (speculative) buy is Bubs Australia Ltd (ASX: BUB).

It is a small rival to infant formula manufacturer A2 Milk Company Ltd (ASX: A2M), with a focus on goat's milk.

Bell Potter notes that the ASX penny stock has released its quarterly update and revealed revenue largely in line with expectations thanks to strong growth in the United States. It said:

2Q26 Net revenue of $29.9m was up +4% YoY (and vs. BPe of $30.2m and 1Q26 of $25.6m). US IMF growth was +46% YoY to $17.4m and the main driver of revenue growth. T12M Revenue was up +23% YoY to $109.5m a figure broadly comparable to 1Q26. 1H25 Revenues are essentially in line with our forecasts at $55.5m and BUB noted a 1H26 GM of 49.3%, which is above the 40-45% FY26e guidance range and implies a 2Q26 GM of 51.8%.

The broker also points out that there were no comments from management relating to its outlook, but it expects solid growth to continue, setting it up for a decent FY 2027. It adds:

There are no firm outlook comments. We note that BUB has previously provided FY26e guidance of: (1) FY26e revenue of $120-125m, implying a 2H26e annualised run rate of $129-139m (vs. BPe FY27e of $135m); (2) Gross margin target of 40-45% (1Q26 46.4% and 2Q26 of 51.8%) and reported EBITDA of $1-2m.

However, a lot of this will depend on its approval process in the US, where it is seeking permanent access. It adds:

BUB continues to progress with its USFDA application for permanent access. The USFDA has confirmed that it will continue to facilitate the importation, sale, and distribution of BUB product while its review is being finalised.

Big potential returns

According to the note, the broker has responded to the update by upgrading the ASX penny stock to a speculative buy rating with an improved price target of 18 cents.

Based on its current share price of 12.7 cents, this implies potential upside of 42% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

We upgrade to Buy, Speculative risk rating (prev. Hold, Speculative rating). 2Q26 revenue growth was consistent with our expectations, although 1H26e gross margins were stronger. USFDA remains the largest risk factor, however, we suspect the delays are more linked to 2025 shutdowns than BUB product. New management look to be increasing brand support, resulting in what looks a more consistent US revenue profile. FY26e margin risk looks to the upside following a strong 1H26 outcome.

The post This ASX penny stock could rocket 40%, says broker appeared first on The Motley Fool Australia.

The announcement centres on Bubs' pathway toward permanent regulatory approval in the US, which remains the company's most important growth market.

At the time of writing, Bubs shares are trading around 13.5 cents, giving the company a market capitalisation of roughly $121 million.

So, what exactly did Bubs say, and why does it matter?

Progress continues on US approval

According to the release, Bubs confirmed that the US Food and Drug Administration (FDA) continues to review the company's New Infant Formula Submissions (NIFS).

These submissions cover all three of Bubs' infant formula ranges currently sold in the US:

• Bubs Essential
• Bubs 365 Day Grass Fed
• Bubs Goat powder infant formulas

Management said the FDA review process remains on track, and importantly, there are currently no outstanding requests for information from the regulator.

Products can stay on shelves for now

One of the more reassuring parts of today's update is around near-term sales continuity.

Bubs said the FDA has confirmed it will continue to allow the importation, sale, and distribution of Bubs' infant formula products in the US after 31 December 2025, while the final review process is completed.

This will occur under the FDA's 'Enforcement Discretion' framework, which has allowed certain international suppliers to operate in the US since the infant formula shortages emerged.

Why the US market matters so much

The US is already Bubs' largest and most strategic market.

Earlier this year, Bubs completed what it described as the world's largest single clinical infant formula trial, enrolling 478 infants over 16 months. The results from that trial formed a critical part of the data submitted to the FDA as part of the company's approval process.

Permanent regulatory approval would move Bubs from a temporary supplier to a fully approved participant in the US infant formula market. That shift would open the door to broader distribution, longer-term contracts, and more predictable growth.

The bigger picture for investors

Bubs operates in a highly regulated industry, so progress can sometimes feel slow. However, today's update points to steady progress for the company.

With the FDA still engaged, no new data requests, and ongoing access to the US market confirmed, Bubs appears to be nearing the final stages of its approval process.

For investors, timing is now the main focus. Formal approval remains the key hurdle, and until that happens, sentiment is likely to move around.

The post Why this ASX small-cap share is back in focus after a US market update appeared first on The Motley Fool Australia.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are falling:

Bubs Australia Ltd (ASX: BUB)

The Bubs Australia share price is down 3% to 15 cents. This appears to have been driven by a broker note out of Ord Minnett this morning. According to the note, the broker has downgraded this infant formula company's shares to an accumulate rating from buy with a trimmed price target of 18 cents (from 20 cents). While it was pleased with its performance in FY 2025, it highlights that there is renewed board room instability following the surprise exit of its chair and the recent resignation of its CEO.

Ora Banda Mining Ltd (ASX: OBM)

The Ora Banda Mining share price is down a further 5% to 99.2 cents. This gold miner's shares have been under pressure this week after the release of a bearish broker note out of Macquarie. According to the note, the broker downgraded the gold miner's shares from outperform all the way to an underperform rating with a 95 cents price target. This followed the release of its mineral resources and ore reserve statement at the end of last week.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is down 2% to $11.06. The catalyst for this has been the airline operator's shares going ex-dividend this morning for its fully franked final dividend and special dividend of FY 2025. Last month, the airline operator released its FY 2025 results and revealed a fully franked final dividend of 16.5 cents per share and a fully franked special dividend of 9.9 cents per share. These dividends, which total 26.4 cents per share, will be paid to eligible shareholders on 15 October.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price is down 3% to $16.74. Investors have been selling this retail conglomerate's shares following the shock exit of its CEO, Anthony Heraghty. The release states: "The Board made this decision after receiving new information from Mr Heraghty regarding his relationship with the company's former Chief Human Resources Officer. In light of this new information, the Board has concluded Mr Heraghty's prior disclosures were not satisfactory. The Board will carefully consider the implications this may have for the company and any related matters." Super Retail's CFO, David Burns, has been appointed interim CEO while it undertakes a search for a replacement.

The post Why Bubs, Ora Banda, Qantas, and Super Retail shares are falling today appeared first on The Motley Fool Australia.

Over at the $31.8 billion logistics software firm Wisetech, the stock is up more than 3.5% after it was revealed founder Richard White had offloaded 1.24 million shares since late August, worth $122.9 million at Monday's share price of $98.04.

The sale of shares leaves the executive chair with $11.04 billion worth of shares in the company, or 35.59% of the shares on issue.

Wisetech shares are changing hands at around the mid-point of their 12-month range, with the stock having traded as low as $67.80 and as high as $141.61 during the past year.

As The Motley Fool has reported elsewhere today, broker Bell Potter is bullish on the stock, with a buy rating and a $127.50 price target.

This is based around the popularity of its CargoWise platform, which is used by logistics firms the world over.

Bubs hits the right formula

Meanwhile at the $138 million baby formula firm Bubs, non-executive director Paul Jensen has stepped up into the chair role after Katrina Rathie resigned.   

The company also announced that Joe Coote had stepped up to the board as managing director, after joining the company as chief executive officer in July.

Bubs late last month reported impressive revenue results of $102.5 million, up 29% on the previous corresponding period.

The company also swung to a net profit of $5.5 million, up from a loss the previous year of $21 million. The company's stock traded as much as 6.5% higher on Monday before settling back to be up 1.3% at 15.7 cents.    

The post What's the management news sending these stock higher on Monday? appeared first on The Motley Fool Australia.

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

Bellevue Gold Ltd (ASX: BGL)

The Bellevue Gold share price is up 4.5% to 89.5 cents. This follows the release of the gold miner's quarterly update this morning. According to the release, Bellevue Gold's quarterly gold production increased 55% quarter on quarter to 38,941 ounces. It was a similar story for gold sold, which increased 50% to 38,754 ounces at an average realised price of A$5,147 per ounce. This was achieved with a project all-in sustaining cost (AISC) of A$2,253 per ounce. As a result, full year FY 2025 annual production was 126,139 ounces, with 130,164 ounces sold.

Bubs Australia Ltd (ASX: BUB)

The Bubs Australia share price is up 3% to 17.5 cents. Investors have been buying this infant formula company's shares following the release of its full year update. Bubs revealed that it achieved FY 2025 net revenue of $102.5 million. This is up 29% on FY 2024's revenue. In light of this, Bubs expects to achieve FY 2025 EBITDA of $5.5 million to $6 million, which compares favourably to a loss of $19.8 million a year earlier. In other news, the company has appointed Joe Coote as its new CEO, effective immediately. It notes that Mr Coote is a highly accomplished international executive with over 20 years of leadership in the FMCG, dairy and infant nutrition sectors. Most recently he was the CEO of Darigold. It is the fourth-largest dairy cooperative in the USA, overseeing over US$2 billion in global sales.

Clarity Pharmaceuticals Ltd (ASX: CU6)

The Clarity Pharmaceuticals share price is up 6% to $4.37. This has been driven by news that the pharmaceuticals company has successfully completed a $203 million placement to a small group of institutional investors. These funds were raised at $4.20 per new share, which represents a 2.2% premium to its last close price. Executive chair, Dr Alan Taylor, said: "The completion of the institutional Placement, coupled with significant short- and medium-term deliverables, such as the read-outs of the Co-PSMA trial and the Phase 3 trials, respectively, as well as longer-term activities, such as the further development of our therapy programs, are expected to underpin short-, medium- and longer-term shareholder value growth as we work towards our ultimate goal of better treating people with cancer."

Regal Partners Ltd (ASX: RPL)

The Regal Partners share price is up 4% to $3.02. The catalyst for this appears to have been a positive reaction to the fund manager's half year update from brokers. This morning, analysts at Bell Potter responded to the update by retaining their buy rating and $3.55 price target on its shares.

The post Why Bellevue Gold, Bubs, Clarity Pharmaceuticals, and Regal Partners shares are rising today appeared first on The Motley Fool Australia.

That's because they have been named as buys and tipped to generate big returns in 2025. Here's what analysts are saying about them:

Bluebet Holdings Ltd (ASX: BBT)

The first small cap ASX stock that could deliver big returns for investors is sports betting company Bluebet.

Morgans is very positive on Bluebet after it posted "another strong quarterly result." It also highlights that "the company achieved an EBITDA positive half earlier than expected, driven by accelerated synergy gains and solid trading performance."

The broker expects more of the same and anticipates a strong result later this month. It said:

Encouragingly, BBT reports that 2Q25 trading momentum has carried into 3Q25. We expect a statutory benefit in 1H25 following the US exit, though some costs from the wind-down will offset this. The company reaffirmed its confidence in achieving over 10% market share through both organic and inorganic growth. BBT will release its interim result on 27 February 2025. We have taken our forecast FY25 EBITDA up from $4.2m to $4.9m.

Morgans has put an add rating and 43 cents price target on its shares. This implies potential upside of 15% for investors from current levels.

Bubs Australia Ltd (ASX: BUB)

The team at Ord Minnett think that this infant formula company could be an ASX small cap stock to buy now.

The broker highlights that after getting rid of its previous wealth-destroying management team, Bubs now looks well-managed and positioned for a successful turnaround. It said:

‍After eight years, several false starts including a costly one into China, a sacked founder, a failed board spill, and a staggering $316 million in equity injections, is it safe to mention the name Bubs in investment circles? We are of the view that it is.

For any investor that has previously written-off the company, we believe it is time to revisit Bubs get exposure to what we forecast to be an outstanding 2025 turnaround story. Bubs is currently displaying all of the essential ingredients for a successful turnaround, i.e. anew and competent management team that has had enough time to steady the ship, a good product with sufficient gross profit (GP) margins, and a multi-year double-digit growth profile.

Ord Minnett recently initiated coverage on Bubs with a buy rating and 20 cents price target. This suggests that upside of over 70% is possible for investors over the next 12 months.

Readytech Holdings Ltd (ASX: RDY)

Finally, Morgans also rates this software provider as an ASX small cap stock to buy right now.

Its analysts think that Readytech's shares are too cheap considering its strong earnings growth outlook. The broker said:

RDY's recent organic growth trajectory demonstrates its ability to deliver our forecast 14.5% CAGR EBITDA growth over coming years. Despite this, the company is trading at a ~20% discount to its historic average EBITDA multiple of ~11x, which we believe represents compelling value.

Morgans has an add rating and $3.74 price target on its shares. This implies potential upside of 18% for investors.

The post These small cap ASX stocks could rise 15% to 70% appeared first on The Motley Fool Australia.

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

Bubs Australia Ltd (ASX: BUB)

The Bubs Australia share price is up 22% to 12 cents. Investors have been buying this infant formula company's shares following the release of a second quarter and first half update. Bubs reported group gross revenue of $32.9 million for the quarter, which is a 42% increase on the prior corresponding period. This led to the company posting positive EBITDA of $2.9 million for the first half. This is a solid turnaround from the $6.8 million EBITDA loss it recorded in the prior corresponding period. In light of this, management has reaffirmed its guidance for FY 2025. It continues to expect revenue of $102 million, a gross margin greater than 40%, and EBITDA breakeven.

Chrysos Corporation Ltd (ASX: C79)

The Chrysos Corporation share price is up 4% to $5.17. This follows the release of the mining technology company's second quarter update. Chrysos reported unaudited revenue of $15.3 million. This was up 12% quarter on quarter and 53% year on year to $15.3 million. Management advised that this was driven primarily by international revenue and sample volume growth. CEO Dirk Treasure said: "Our significant sales success continued into the second Quarter of FY25 with two new contracts signed, building on four new contracts in the first Quarter. This momentum reflects the ongoing market penetration of our PhotonAssay technology and the efficacy of our customer diversification strategy."

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is up 3.5% to $101.58. This appears to have been driven by a broker note out of Citi. According to the note, the broker has reaffirmed its buy rating on the retail giant's shares with an improved price target of $110.00 (from $85.00). Citi is feeling positive about household spending in FY 2025 and feels there is upside risk to consensus estimates for JB Hi-Fi.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is up 9% to $9.09. This follows the release of the uranium miner's quarterly update. Paladin Energy produced 638,409 pounds of uranium during the quarter, which was in line with management expectations. The company also revealed that it remains on track to meet its revised production guidance of 3.0 million to 3.6 million pounds of U3O8 in FY 2025. CEO Ian Purdy said: "We continue to de-risk the operation but recognise the LHM is still ramping up to full production and patience is required as our local team steadily achieves their goals."

The post Why Bubs, Chrysos, JB Hi-Fi, and Paladin Energy shares are storming higher today appeared first on The Motley Fool Australia.

In morning trade, the small cap ASX stock is up a whopping 22% to 12 cents.

Why is this small cap ASX stock rocketing?

Investors have been bidding the infant formula company's shares higher today in response to the release of a strong quarterly update.

For the three months ended 31 December, Bubs reported group gross revenue of $32.9 million (net revenue of $28.7 million). This is a 42% increase on the prior corresponding period.

This reflects growth across all markets. USA gross revenue was up 26% to $17.2 million, China gross revenue rose 68% to $7.1 million, Australia gross revenue rose 32% to $6.3 million, and Rest of World revenue increased 92% to $2.3 million.

Another positive was that the company's gross profit margin increased to 48% for the first half, up from 38% in the prior corresponding period.

But potentially getting investors the most excited was its EBITDA for the first half of FY 2025. The small cap ASX stock reported positive EBITDA of $2.9 million for the six months. This is a solid turnaround from the $6.8 million EBITDA loss it recorded in the prior corresponding period.

In addition, it second quarter operating cash inflow was $3.9 million, which is up from a $13 million outflow in the same period last year. This left Bubs with $17.2 million in total cash and cash equivalents plus $5 million in undrawn debt facilities.

'Turnaround is gathering pace'

The small cap ASX stock's chief executive officer and managing director, Reg Weine, was very pleased with the company's performance during the quarter. He commented:

We are very pleased with the continued progress against our strategic pillars, and our turnaround is gathering pace with another strong quarter of performance which was aided by a strong US dollar.

Pleasingly, our focus on growth in multiple markets, led by the US, working capital discipline, cost-out initiatives, portfolio optimisation and a reduction in one-off expenses, has resulted in Bubs achieving positive operating cash flow of $3.9m in Q2 FY25. The cash flow in Q3 FY25 will likely fluctuate as we invest in working capital for the second half however, we expect to be cash flow positive in Q4 FY25.

Outlook

The infant formula company has reaffirmed its guidance for the full year.

It continues to expect revenue of $102 million, a gross margin greater than 40%, and EBITDA breakeven.

The post Guess which small cap ASX stock is rocketing 22% on big news appeared first on The Motley Fool Australia.

In morning trade, the ASX All Ords share jumped as much as 18% to $6.77.

The infant formula company's shares have eased back a touch since then but remain up almost 8% at $6.24 at the time of writing.

Why is this ASX All Ords share jumping?

Investors have been buying the company's shares today despite there being no news out of it.

When this happens, the ASX will often give a company a speeding ticket and ask for it to explain the price action.

So, there's a fair chance that A2 Milk will provide the market with an answer to this puzzle later today. But for now, let's take a look at what could be driving this ASX All Ords share higher on Friday.

What is happening?

When a company's shares rocket so much in a single day, it can spark hopes that a takeover is coming. However, there's no word on the street about one in the works, so this seems unlikely.

Moving on. Yesterday there was a new substantial shareholder, Paradice Investment Management, on the A2 Milk share register. While that is a positive, it's not likely to put a rocket under the ASX All Ords share.

This leaves us with China. And recent stimulus measures the country's leaders are rolling out to stimulate economic growth.

One such measure that has been reported by Reuters could be particularly good news for A2 Milk and its junior rival Bubs Australia Ltd (ASX: BUB), which is also racing higher today.

According to the media outlet, sources claim that China is planning to issue special sovereign bonds worth about 2 trillion yuan (US$284.43 billion) this year as part of a fresh fiscal stimulus.

In addition, as part of the package, the Ministry of Finance reportedly plans to issue 1 trillion yuan of special sovereign debt primarily to stimulate consumption in response to growing concerns about a stuttering post-COVID economic recovery.

And importantly for A2 Milk, the "proceeds will also be used to provide a monthly allowance of about 800 yuan, or US$114, per child to all households with two or more children, excluding the first child, the first source said."

Given that the Chinese infant formula market has been going through a rough patch recently, investors may believe that this will give it a boost. It may also help lift China's falling birth rate, which would be good news for the ASX All Ords share.

The post Why is this ASX All Ords share soaring 18% today? appeared first on The Motley Fool Australia.

Two stocks showing mixed performance following the release of FY24 results on Wednesday are Camplify Holdings Ltd (ASX: CHL) and Bubs Australia Ltd (ASX: BUB).

While Camplify shares are flat at $1.30 apiece, they were trading more than 4% higher earlier in the session, fetching $1.35 at one point.

Meanwhile, Bubs shares are down nearly 4% to 12.5 cents apiece at the time of writing.

Let's see what these companies posted.

ASX small caps post FY24 results

Camplify shares lifted early in the session as investors responded to its FY24 earnings. The company reported a 24.9% increase in revenue for the year, reaching $47.8 million.

This was driven by a 9% rise in total bookings, tallying 89,086. As of August 26 this year, the company had $22.4 million in future bookings, up 2.4% year over year.

The total number of RVs on the platform also grew by 15.4% to 32,786, with notable fleet expansions in New Zealand and Spain.

Meanwhile, membership income increased to $5.2 million during the year, up 205% compared to FY23.

CEO Justin Hales remarked positively on Camplify's strong growth during the year:

For CHL FY24 was a period of consolidation, optimisation, and preparation. In order to position the business for further evolution and potential expansion, CHL needed to invest in consolidation of teams, systems, and procedures to enable efficiency.

In FY24 CHL undertook major projects to enable this goal including the migration of PaulCamper to the centralised CHL platform, and the implementation of a number of business improvement systems. These projects are designed to establish a foundation for growth and improvement in key metrics over the next 3-5 years.

Management says the ASX small cap remains "on track with [its] 3-5 year goals" on revenue, pre-tax earnings, fleet, and members.

We remain committed to our plan, and positive about the ability to deliver against these goals.

Bubs: Turnaround continues, and so do losses

Bubs Australia reported a 33% increase in revenue for FY24, reaching $79 million.

Growth was underscored by a continued recovery in its key export markets, particularly the USA and China.

As a result, the ASX small cap's gross margin improved by more than 11 percentage points over the year from 30% to 41%.

Growth in international markets was 13% for the year, underlined by its presence in Japan and Vietnam. This brings the four-year compounding growth rate in sales to the rest of the world to 20%.

Despite these gains, Bubs still reported a statutory net loss of $21 million. Although, this is far less than the previous year's loss of $108 million.

CEO Reg Weine expressed optimism about the company's strategic direction:

This first year in our turnaround strategy was a pivotal one and an important step in the right direction as we continue to build momentum in the USA and reset our China business. We achieved very strong growth in our two key strategic export markets, with USA revenue up 46% and China revenue up 27% on FY23. We also grew very strongly in our home market and our rest of world markets including Japan and Vietnam.

Bubs has set ambitious goals for FY25, including revenue growth of 28% to $102 million, gross margins exceeding 40%, and a break-even operating income.

While the impact of the non-recurring costs impacted our statutory loss for FY24, their absence in FY25 when coupled with the continued strong momentum in all markets and cost out initiatives, provides a clear pathway to positive trading EBITDA4 (before shared based payments) in FY25.

ASX small caps snapshot

Camplify and Bubs Australia present a tale of two ASX small caps with differing paths after their FY24 earnings results.

Camplify is down 41% in the past months, whereas Bubs has slipped over 30% into the red.

The post One up, one down: ASX small-cap shares mixed after FY24 results appeared first on The Motley Fool Australia.

Shares in the ASX infant formula company closed on Friday trading for 13.5 cents. In early afternoon trade on Monday, shares are changing hands for 13.2 cents apiece, down 2.2%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.9% at this same time.

This comes following the release of Bub's unaudited financial results for the quarter ending 30 June (Q4 FY 2024).

Revenue spike fails to boost Bubs share price

Investor expectations appear to have been high, as the Bubs share price is slipping despite the company reporting Q4 gross revenue of $29.9 million. That's up 50% from the $20.0 million of revenue achieved in Q4 FY 2023.

Following on the strong quarter, full year FY 2024 net revenue of $81.1 million is up 35% from the prior year's $60.1 million. This tops the company's net revenue guidance of $80.0 million.

Q4 operating cash outflow decreased to $3.6 million, a marked improvement from the $13.0 million in cash outflow recorded for Q4 FY 2023. The company cited improved working capital management, cost discipline and operational efficiencies for the reduced outflows.

Still, the Bubs share price could be catching headwinds with the company reporting FY 2024 cash burn of $27.2 million. That figure includes $12.4 million of one-off non-recurring costs. The normalised monthly cash burn came to $1.2 million.

As at 30 June, Bubs held $17.7 million in cash reserves along with $5.0 million of bank facilities for a total of $22.7 million of available cash liquidity.

The company also said it is continuing to follow the FDA's guidelines and is making "meaningful progress" on its United States clinical trial and US permanent access. 351 patients are now enrolled in the Growth Monitoring Study. Bubs expects FDA approval in October 2025.

What did management say?

Commenting on the results that have yet to lift the Bubs share price, CEO Reg Weine said, "Our key target market, the USA, has delivered exceptional growth for Bubs, with total gross revenue1 of $48.9 million, an increase of 63% on FY 2023."

Weine added:

We expect our new products to perform better than the existing range and our US sales to grow strongly in FY 2025. There is early evidence that our new look tins are resonating with US parents and caregivers.

As for China, Weine said:

While USA expansion remains our immediate priority, pleasingly we are now achieving strong sales growth in China with gross revenue in the second half of FY 2024 of $11.0 million exceeding the first half of FY 2024 of $8.0 million.

And on the home front, Weine noted:

Domestically, we are one of the fastest growing infant formula manufacturers in the category and the fastest growing premium brand, achieving 11% scan sales growth for the quarter versus the total market growth of 2.2%. Pleasingly, Bubs is the largest player in the domestic goat IMF [infant milk formula] market with 52% market share.

With today's intraday moves factored in, the Bubs share price is down 34% over 12 months but remains up just under 2% in 2024.

The post Bubs share price wallows despite 50% revenue boost appeared first on The Motley Fool Australia.

This kind of buying activity can be a strong indicator of growth potential – especially when it comes from those with deep knowledge of the business. While each of these shares discussed here has faced recent challenges, the recent insider purchase could signal this belief.

Here's a look at these five cheap ASX shares being bought by insiders this week.

IDP Education Ltd (ASX: IEL)

IDP Education has been facing headwinds, with its share price down 23% in 2024 and 37% over the past year. Changes to student visa rules have disrupted the student placement and education company's key markets.

Despite this, non-executive director Tracey Horton bought 1,300 shares on 7 June for around $15.15 each.

Further, Citigroup also purchased around 3.27 million IDP shares in June, bringing its stake to more than 18.87 million shares, or 6.77% voting power.

Currently, the seemingly cheap ASX share is valued at $15.37 apiece, having climbed 3% into the green so far this week.

Deterra Royalties Ltd (ASX: DRR)

Deterra Royalties recently experienced a 10% drop after announcing a significant acquisition in the lithium sector.

The company noted it made a $276 million offer to UK company Trident Royalties Plc in June, equal to roughly 93 cents per share.

Despite the initial market reaction, the company's shift towards green metals looks like it's being viewed favourably by institutional investors.

Mandatory filings show The Vanguard Group starting an initial position in Deterra, purchasing 26.59 million shares of the company through its various entities.

This sees it owning 5.029% of the company as of 21 June 2024. The cheap ASX share is priced at $4.02 each at the time of writing.

BUBS Australia Ltd (ASX: BUB)

Bubs Australia has been in the headlines following strong sales growth in the United States. According to my colleague Bernd, Bubs' weekly scan revenues have surpassed US$1 million, and the company has become the top-selling infant formula product on Amazon USA.

CEO Reginald Weine is optimistic about sustained demand and future growth. On 24 June 2024, Weine acquired 50,000 shares at $0.125 each. Bubs Australia shares are currently trading at $0.128 each, down 10% in the last month.

Starpharma Holdings Ltd (ASX: SPL)

Starpharma Holdings has also faced challenges in 2024. The cheap ASX share is down nearly 47% this year and 68% in the past 12 months.

Recent filings show that as of 21 June 2024, investment fund Allan Gray reduced its voting power to 9.28% after disposing of 5.35 million shares from its position this week.

Some of this new supply looks to have been soaked up by two directors – Lynda Cheng, and Robert Thomas – who this week purchased 110,555 shares at 9 cents per share, and 200,000 ordinary shares at 8.9 cents apiece respectively.

Currently, Starpharma shares are priced at $0.087 each.

WAM Leaders Limited (ASX: WLE)

WAM Leaders has seen steady insider buying from director Geoffrey Wilson. Mr Wilson is also the chairman of listed investment company (LIC) WAM Capital Ltd (ASX: WAM).

Between 24 June and 27 June 2024, Wilson acquired over 18,000 shares. The purchases were made on market across several trades, ranging in size from $11.1 million to $15.6 million.

The investments bring Wilson's stake to 13.05 million shares in the cheap ASX share. Today, WAM Leaders is valued on market at $1.28 apiece with a trailing dividend of 9.1 cents per share.

The post 5 potentially cheap ASX shares being bought by insiders appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are charging higher:

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is up almost 17% to 14 cents. Investors have been buying the junior infant formula company's shares following the release of an update on its US operations. Bubs advised that USA weekly scan revenue exceeds US$1 million per week with over 24,000 tins sold. This compares to its third quarter average of US$750,000 revenue per week. Management also notes that it was the number one, best-selling infant formula product on Amazon USA in May 2024. Bubs' CEO, Reg Weine, commented: "We are continuing to see exceptionally strong demand for our products in the USA, and we have now reached a new weekly scan sales record in the USA with revenue exceeding US$1m."

Codan Ltd (ASX: CDA)

The Codan share price is up 8% to $11.53. This appears to have been driven by a broker note out of UBS this morning. According to the note, the broker has initiated coverage on the metal detector manufacturer's shares with a buy rating and $13.10 price target. UBS is feeling positive about the company's outlook and is expecting strong revenue growth and margin expansion to drive even stronger earnings per share growth. The broker also sees scope for value accretive acquisitions given its strong balance sheet and new debt facilities.

Life360 Inc (ASX: 360)

The Life360 share price is up over 3% to $14.23. As well as getting a boost from a booming tech sector, this location technology company was the subject of a bullish broker note out of Morgan Stanley this morning. According to the note, the broker has reaffirmed its overweight rating and $17.50 price target on Life360's shares. It has been looking at the company's expansion into advertising and sees a very big opportunity based on what it has seen from peers such as ride-sharing apps.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price is up 1.5% to 3.75 cents. This follows the release of drilling results from the Moblan Lithium Project in Canada. Management highlights that its recent drilling is demonstrating the potential of a single, large continuous orebody. Interim CEO, James Brown, commented: "Moblan continues to present outstanding high-grade drilling results over wide intersections. The deposit now extends over ~2.3km E-W, ~1.2km N-S and to depth of ~450m. Today's announcement emphasises the continuation of known mineralisation and areas of in-fill between zones, suggesting considerable potential for uncovering additional extensions to this premium lithium deposit."

The post Why Bubs, Codan, Life360, and Sayona Mining shares are charging higher appeared first on The Motley Fool Australia.

While A2 Milk shares are up a healthy 1.9% in early afternoon trade on Thursday, shares in this ASX infant formula company just surged 20.8% to trade for 14.5 cents apiece.

After some likely bargain hunting, shares are up 18.8% at the time of writing.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.6% at this same time.

Any guesses?

If you said Bubs Australia Ltd (ASX: BUB), give yourself a virtual gold star.

Here's what's grabbed ASX investor interest today.

Bubs gains leave A2 Milk shares wanting today

The Bubs share price is racing ahead of the benchmark and A2 Milk shares after the company announced that its weekly scan revenues in the United States have topped US$1 million a week, with more than 24,000 tins sold.

That's up 25% from the third quarter's average weekly scan revenue of US$750,000.

Investor exuberance also appears to have been roused by the company reporting it moved from number six to the number one best-selling infant formula product on Amazon USA in May 2024.

Bubs also reported on ongoing progress relating to the Food and Drug Administration's permanent access pathway and clinical trial. As at 7 June, Bubs had more than 300 infant enrolments, representing 75% of its target.

And the ASX infant formula company said it has commenced the roll-out of new label tins and sizes for the US market.

Commenting on the results seeing the Bubs share price leaving A2 Milk shares far behind today, Bubs CEO Reg Weine said, "We are continuing to see exceptionally strong demand for our products in the USA, and we have now reached a new weekly scan sales record in the USA with revenue exceeding US$1 million."

Atop the strong online sales growth via Amazon, Weine said, "Pleasingly we are seeing sustained demand for our products right across the USA, from more than 5,800 bricks and mortar retail stores stocking Bubs."

Looking ahead, Weine added:

We have recently increased our target inventory levels in the US to meet the rise in demand and following the stock shortages which occurred in late 2023 and believe this strong and sustained consumer driven demand will provide a strong tailwind for growth in FY 2025.

Closer to home and addressing a potentially even larger market, Weine noted, "Our China business has now rebounded."

How have the two ASX dairy stocks been tracking?

With today's intraday gains factored in, the Bubs share price is up 8% so far in 2024.

A2 Milk shares have performed far better, rocketing an eye-watering 65% year to date.

The post Guess which A2 Milk rival's shares just rocketed 21% on US news! appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Arafura Rare Earths Ltd (ASX: ARU)

The Arafura share price is up 56% to 23 cents. Investors have been buying this rare earths developer's shares after it announced that the Commonwealth Government has conditionally approved a US$533 million debt finance package to support the Nolans Project in the Northern Territory.

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is up 7.5% to 14.5 cents. This is despite there being no news out of the infant formula company. Though, it is worth highlighting that Bubs has reported two instances of insider buying this month from its CEO. In total, Bubs CEO Reg Weine has bought a total of 250,000 shares through on-market trades for an average of 12 cents per share.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is up 10% to $14.59. This morning, this biopharmaceuticals company announced an on-market share buyback. Clinuvel will aim to buy back up to 1.5 million shares over the next 12 months, which equates to approximately 3% of its outstanding share capital. This reflects its view that the recent decline of market valuation is no longer commensurate with the performance and expected outlook for the company.

Superloop Ltd (ASX: SLC)

The Superloop share price is up 23% to $1.29. This follows news that the telco has won a major wholesale contract with Origin Energy Ltd (ASX: ORG). It is an exclusive six-year contract that will see the migration of Origin's broadband customer accounts, currently 130,000, onto Superloop's network. The transition of Origin's current subscriber base is expected to occur during FY 2025.

The post Why Arafura, Bubs, Clinuvel, and Superloop shares are racing higher today appeared first on The Motley Fool Australia.

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

Bubs Australia Ltd (ASX: BUB)

The Bubs share price is up 9% to 12 cents. This follows the release of the infant formula company's quarterly update. Bubs recorded a 79.7% increase in gross revenue to $25.7 million for the three months ended 31 December. The United States business was the star performer, delivering a 498% increase in gross revenue to $13.7 million. It now represents 53% of total gross revenue.

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is up 4.5% to $8.51. This has been driven by the iron ore miner's third quarter update this morning. Champion Iron posted record quarterly production of 4wmt, which underpinned revenue of C$507 million and EBITDA of C$247 million.

Playside Studios Ltd (ASX: PLY)

The Playside Studios share price is up 21% to 72.5 cents. Investors have been buying this game developer's shares after it reported a record quarterly performance. Playside revealed record quarterly revenue of $20.7 million and positive unaudited EBITDA of $8 million. The latter is almost double what was recorded in the previous quarter.

Select Harvests Ltd (ASX: SHV)

The Select Harvests share price is up 16% to $3.70. This morning, this almond producer released a trading update and revealed that its 2024 crop is looking strong. This is good timing because it also advised that global almond market conditions are increasingly positive. It notes that market prices for almonds are rising, particularly for higher grade material, and export markets are becoming increasingly active.

The post Why Bubs, Champion Iron, Playside Studios, and Select Harvests shares are charging higher appeared first on The Motley Fool Australia.