Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set for a poor session on Friday following a relatively weak night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 27 points or 0.3% lower this morning. On Wall Street, the Dow Jones was flat but the S&P 500 fell 1.2% and the Nasdaq sank 2.6%.

Oil prices rise

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch today after a strong night for oil prices. According to Bloomberg, the WTI crude oil price is up 2.2% to US$99.31 a barrel and the Brent crude oil price is up 3.9% to US$113.12 a barrel. This follows reports that Donald Trump could be planning further action on Iran.

Buy NextDC shares

Morgans thinks investors should be buying NextDC Ltd (ASX: NXT) shares while they are down in the dumps. The broker has upgraded the data centre operator's shares to a buy rating with a $7.50 price target. It said: "In our view NXT is incredibly cheap and its ~30% discount to NTA is unwarranted if these issues are just short term in nature. However, management needs to de-risk these key concerns for equity investors. This could take some time. We set our Target Price at $7.50 which is broadly in line with NTA and below our valuation. We upgrade to a BUY recommendation, from HOLD. Noting the heightening risks relative to normal operating conditions for the business."

Gold price tumbles

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price tumbled overnight. According to CNBC, the gold futures price is down 2.65% to US$4,040.1 an ounce. Traders were selling gold after the oil rally fuelled inflation worries.

AGMs

A number of annual general meetings are taking place today, which could see the release of trading updates. Among those holding meetings are plumbing parts company Reliance Worldwide Corporation (ASX: RWC), salary packaging company McMillan Shakespeare Ltd (ASX: MMS), and broadband provider Aussie Broadband Ltd (ASX: ABB).

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

What did Reliance Worldwide report?

• Brookfield Capital Partners to acquire 100% of RWC shares for US$3.38 per share (A$4.87 per share equivalent).
• "Go Shop" period concluded with no alternative proposals received.
• Board unanimously recommends shareholders vote in favour of the Scheme.
• Scheme remains subject to shareholder, court, and regulatory approvals.
• Indicative timeline: Scheme Booklet early November 2026; Scheme Meeting early to mid-December 2026.

What else do investors need to know?

Reliance Worldwide and its advisers ran a comprehensive international market testing process during the "Go Shop" period, engaging with a range of potential buyers. Despite extensive outreach, no alternative offers emerged that were superior or capable of becoming a superior proposal to Brookfield's offer.

Now that the "Go Shop" period has ended, standard no-shop and no-talk restrictions are in force, although fiduciary exceptions mean the board can still consider superior proposals if they arise. Brookfield retains its matching right, allowing it to meet any new competing bid, should one materialise.

What did Reliance Worldwide management say?

Reliance Worldwide Chair, Russell Chenu, said:

The 'Go Shop' process provided an important opportunity to proactively and comprehensively explore broader buyer interest and to fully market test the Brookfield Transaction, so as to allow shareholders to be fully informed when making their decision on the Transaction.
The fact that the process did not result in a proposal that the Board considers superior to the Brookfield Transaction confirms the Board's view that the Cash Consideration offered by the Brookfield Transaction represents compelling value.

The Board carefully assessed the Brookfield Transaction on a fundamental valuation basis, considering RWC's strategic position, long-term growth opportunities and cash generation potential. The outcome of the 'Go Shop' process has provided a clear market view on the fairness of the Consideration. The Cash Consideration offered by Brookfield is particularly attractive given the certainty of value it provides to RWC shareholders.

What's next for Reliance Worldwide?

Next up, Reliance Worldwide shareholders can expect to receive the Scheme Booklet in early November 2026, with a shareholder vote slated for early to mid-December 2026. If all conditions and approvals are met, implementation is targeted for late December 2026.

Shareholders don't need to take any action right now. The Board's recommendation remains subject to no superior proposal emerging and the Independent Expert continuing to find the Scheme in their best interests.

Reliance Worldwide Corporation share price snapshot

Over the past 12 months, Reliance Worldwide shares have risen 18%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has fallen 2% over the same period.

View Original Announcement

The post Reliance Worldwide ends Go Shop period, Board backs Brookfield bid appeared first on The Motley Fool Australia.

The good news is that not all ASX 200 shares fell with the market. In fact, some were able to defy the weakness and charge higher.

Here's why these were the best-performing shares on the ASX 200 in September:

Codan Ltd (ASX: CDA)

The Codan share price was a very strong performer and recorded a gain of 40%. The catalyst for this was the release of a trading update late in the month from the technology products company.

Codan revealed that group net profit after tax for the first half of FY 2027 is expected to be at least $160 million. This will be more than double the $71.2 million it recorded in the prior corresponding period.

This has been driven by robust demand for metal detectors and exceptionally strong demand for its communications products. 

Speaking about its full-year outlook, the company said:

While current indications are that the elevated sales order momentum in the Communications segment may continue into H2 FY27, order visibility in conflict regions is low and it is too early to determine whether the elevated demand and margin experienced in H1 FY27 will continue in H2 FY27. Balancing these factors, Codan is currently targeting full-year FY27 revenue growth for the Communications segment to be in the range of 30% to 40% compared to full-year FY26. 

Ingenia Communities Group (ASX: INA)

The Ingenia share price wasn't far behind with a gain of 32% in September.

Investors were buying the communities developer's shares after it received a series of takeover offers. While two of the proposals were rejected, the ASX 200 share is still considering an improved offer received late in the month from Warburg Pincus.

Its third offer was $5.25 cash per share, up from its previous offers of $4.75 per share and $5.05 per share, respectively. In response to the offer, Ingenia stated: 

The Ingenia Board is assessing the Further Revised Indicative Proposal with the assistance of its financial and legal advisers and will update securityholders in due course.

Megaport Ltd (ASX: MP1)

The Megaport share price was on form and raced 25% higher over the month.

Last month, Megaport upgraded its FY 2027 guidance after winning almost $1 billion of AI contracts. 

Megaport's CEO, Michael Reid, commented:

Since April, we've announced approximately A$2.3 billion in total strategic contract value…Together with our existing business, these contracts support approximately A$1.1 billion in Group ARR once deployed. Earlier deployments, new contracts, and Network growth underpin our upgraded FY27 revenue and EBITDA margin guidance. Customers have committed approximately A$323 million in prepayments on today's contracts, supporting the infrastructure investment behind future growth.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price outperformed with a 13% gain in September.

Investors were buying the plumbing parts company's shares after it accepted a $4.1 billion takeover offer from Brookfield. It advised:

It is proposed that Brookfield will acquire all of the ordinary shares in RWC for cash consideration of US$3.38 for each RWC share. The Cash Consideration, which is now denominated in US dollars, implies a value of A$4.75 per share.

The post Which were the best-performing ASX 200 shares in September? appeared first on The Motley Fool Australia.

This happy hump day for the Australian markets followed a far less optimistic session on Wall Street last night.

The Dow Jones Industrial Average Index (DJX: .DJI) was still feeling blue and dropped another 0.63%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) wasn't any better, losing 0.78% of its value.

But let's return to the local markets now and check out what was happening amongst the different ASX sectors today.

Winners and losers

The biggest losers this Wednesday were consumer staples shares. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) had a shocker today, dumping 1.15% of its value.

Real estate investment trusts (REITs) also had a day to forget, with the S&P/ASX 200 A-REIT Index (ASX: XPJ) retreating 0.54%.

Financial stocks were on the nose, too. The S&P/ASX 200 Financials Index (ASX: XFJ) was walked back 0.37% this session.

Our last losers were consumer discretionary shares, evidenced by the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ)'s 0.35% decline.

Let's turn to the green sectors now. Leading the charge were energy stocks. The S&P/ASX 200 Energy Index (ASX: XEJ) rocketed 2.19% higher this hump day.

Gold shares had a party as well, with the All Ordinaries Gold Index (ASX: XGD) surging 1.48%.

Broader mining stocks didn't miss out. The S&P/ASX 200 Materials Index (ASX: XMJ) soared up 1.28%.

Next came communications shares, illustrated by the S&P/ASX 200 Communication Services Index (ASX: XTJ)'s 0.46% bounce.

Industrial stocks were also in that range. The S&P/ASX 200 Industrials Index (ASX: XNJ) added 0.36% to its total today.

Tech shares overcame some selling to close higher, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) putting on 0.3%.

Utilities stocks didn't miss out either. The S&P/ASX 200 Utilities Index (ASX: XUJ) saw its value bumped by 0.28%.

Finally, healthcare shares got themselves over the line, as you can see by the S&P/ASX 200 Healthcare Index (ASX: XHJ)'s 1.5% surge.

Top 10 ASX 200 shares countdown

Gold stock Pantoro Gold Ltd (ASX: PNR) came in as our top stock today. Pantoro Gold shares jumped 9.3% to close at $2.82 a share. This came after Pantoro revealed some drilling results this morning, which may have excited investors.

Here's how the other winners pulled up at the kerb:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The stock is up 4.39% to $4.52 at the time of writing after trading as high as $4.65 earlier this morning.

That's a new 52-week high, taking Reliance shares up more than 23% over the past month and around 17% in 2026.

The latest rise comes after another major development in the company's takeover talks.

But there could still be more to come over the next few weeks.

Let's dive right in.

Brookfield locks in the deal

According to the release, Reliance has signed a scheme implementation deed with Brookfield Corp (NYSE: BN).

Under the deal, Brookfield plans to acquire all Reliance shares for US$3.38 each in cash, or around $4.75 per share.

On an enterprise value basis, that values the company at roughly $4.1 billion.

Notably, Brookfield has had to increase its offer a few times to get here.

Its first approach came in at $4.15 per share, followed by offers of $4.25 and then $4.50.

Reliance then gave Brookfield access to non-public information while it carried out due diligence.

After several weeks of that process, Brookfield came back with the higher offer.

The Reliance board is now unanimously backing the deal, provided there is no better proposal and the independent expert gives it the tick.

Chair Russell Chenu said the board had "carefully assessed" the offer, including Reliance's outlook, growth opportunities, and cash generation.

Could another buyer still emerge?

Now, this is where things get a little more interesting.

Reliance has agreed to the Brookfield deal, but it still has the chance to see if someone else is willing to pay more.

The agreement includes a 30-day "go-shop" period, which runs until 15 October.

During that time, Reliance can approach other potential buyers, share due diligence information, and negotiate another proposal.

AustralianSuper is also worth keeping an eye on.

According to The Australian, the super fund recently increased its stake in Reliance to 14.68%.

This means it could have a decent say in how things play out when shareholders eventually vote.

What happens next?

At $4.52, Reliance shares are still trading below the $4.75 value of Brookfield's offer.

And there are a few reasons for that.

The deal still needs shareholder, court, and regulatory approval, while completion isn't expected until the first quarter of 2027.

The final value could also move around because the offer is being paid in US dollars.

So, clearly there's still a few hurdles to get through.

The post Reliance shares surge to a 52-week high on $4.1 billion takeover deal appeared first on The Motley Fool Australia.

What did Reliance Worldwide report?

• Scheme Implementation Deed signed for Brookfield to acquire 100% of RWC shares via a scheme of arrangement
• Offer price: US$3.38 cash per share (~A$4.75 based on exchange rates)
• Total enterprise value: approximately US$2.9 billion
• Premiums: ~43% to six-month VWAP, ~32.7% to three-month VWAP, and ~31.5% to undisturbed price
• Implied FY26 EV/EBITDA multiple: ~12.1x (post-AASB16)
• Shareholders can elect to receive payment in AUD or USD at implementation

What else do investors need to know?

The agreement includes a "Go Shop" provision, allowing Reliance Worldwide's board to actively seek out alternative bids until 15 October 2026. This means shareholders have the opportunity to benefit if a superior proposal emerges. After the Go Shop period, standard exclusivity, deal protections, and matching rights apply, including a US$25.3 million break fee and a reverse break fee on the same terms.

Completion of the transaction is subject to shareholder and regulatory approvals, including the Foreign Investment Review Board, ACCC, and equivalent authorities in the US, Germany and Ukraine. An independent expert will report on whether the scheme is in shareholders' best interests.

What did Reliance Worldwide management say?

Reliance Worldwide Chair Russell Chenu said:

The Board is unanimous in its view that this Transaction is in the best interests of RWC shareholders. The Board has carefully assessed the proposal on a fundamental valuation basis, considering RWC's strategic position, long-term growth opportunities and cash generation. The Board also considered the execution risk to deliver future growth, as well as the broader macroeconomic and geopolitical environment, against the certainty of value delivered by the Cash Consideration and unanimously recommends that RWC shareholders vote in favour of the Scheme in the absence of a superior proposal and subject to an Independent Expert concluding that the Scheme is in the best interests of shareholders. In addition, the 'Go Shop' process provides us with the opportunity to explore broader buyer interest in RWC which will allow shareholders to be fully informed when making their decision on the Transaction

What's next for Reliance Worldwide?

The next step for Reliance Worldwide shareholders will be receipt of a Scheme Booklet, expected in November 2026, with full details of the proposal, including the independent expert's report. A Scheme Meeting, where shareholders will vote on the deal, is tentatively scheduled for later in 2026. If the deal is approved and all conditions are met, implementation is targeted for Q1 2027. If completion is delayed past March 2027, a "ticking fee" will accrue to shareholders.

Shareholders are encouraged to take no action until formal materials are received. The board unanimously recommends the proposal, subject to no superior bid and a positive expert report.

Reliance Worldwide share price snapshot

Over the past 12 months, Reliance Worldwide shares have risen 3%, outperforming the S&P/ASX 200 Index (ASX: XJO), which has declined 2% over the same period.

View Original Announcement

The post Brookfield moves to acquire Reliance Worldwide Corporation at a 43% premium appeared first on The Motley Fool Australia.

As earnings season continues, brokers have lowered their ratings on several ASX 200 shares this week.

Let's see a sample.

BHP Group Ltd (ASX: BHP)

The BHP share price is $65.29, up 2.5% today and up 56% over 12 months. 

Morgans downgraded BHP shares after the miner's FY26 report.

The broker lowered its 12-month price target from $59.80 to $55.30.

This suggests a potential 15% downside ahead.

Northern Star Resources Ltd (ASX: NST)

The Northern Star Resources share price is $23.99, up 6.4% today and up 32% over 12 months. 

Citi downgraded the ASX 200 gold share to a hold call after the miner's FY26 report.

The broker has a price target of $24.30, indicating just a 1% upside over the next 12 months.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is $1, down 1.8% today and down 45% over 12 months. 

Jarden downgraded the ASX 200 bank share to a sell rating after its FY26 report.

The broker has a $1.25 target, implying a potential 25% upside ahead.

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price is $4.25, up 2.4% today and down 82% over 12 months. 

Morgan Stanley downgraded the ASX 200 consumer discretionary share to a hold rating on Thursday.

This followed the online furniture retailer's FY26 report.

The broker has a 12-month price target of $4.23, suggesting a 13% upside from here.

Endeavour Group Ltd (ASX: EDV)

The Endeavour share price is $3.50, up 2.6% today and down 17% over 12 months. 

Bell Potter downgraded the ASX 200 consumer staples share to a hold call with a $3.60 target.

This followed the liquor and hotel operator's unaudited preliminary results for FY26.

The target implies just 3% potential upside ahead.

QBE Insurance Group Ltd (ASX: QBE)

The QBE share price is $21.75, down 4% today and up 0.8% over 12 months. 

Jarden downgraded the ASX 200 financial share to a sell rating after the insurer's 1H FY26 report.

The broker has a $20.30 target, indicating a 6% downside ahead.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is $7.50, down 0.7% today and up 17% over 12 months. 

Morgans downgraded the ASX 200 coal share from buy to hold after the miner's FY26 report.

The broker reduced its 12-month price target from $8.50 to $8.05.

This implies a potential 7% upside ahead.

The broker said:

The effects of poor coal prices in the 1H provided a significant headwind for the full-year result.

FY27 guidance was softer than expected, with production growth appearing limited given the unchanged upper end of group guidance, while both costs and capital expenditure expectations have moved higher.

HomeCo Daily Needs REIT (ASX: HDN)

The HomeCo Daily Needs REIT is $1.15 per share, down 0.4% today and down 13% over 12 months. 

Jefferies downgraded the real estate investment trust (REIT) to a hold rating this week.

The change came after HomeCo's FY26 report.

The broker lowered its price target from $1.44 to $1.30.

This suggests potential capital growth of 13% over the next year. 

Reliance Worldwide Corp Ltd (ASX: RWC)

The Reliance share price is $4.83, down 0.6% today and up 4% over 12 months. 

Jarden downgraded Reliance shares to a hold call after the company released its FY26 report and revealed a takeover offer of $4.75 per share.

The broker increased its target price from $4.25 to $4.75.

This implies a potential 8% upside ahead.

Imdex (ASX: IMD)

The Imdex share price is $3.85, up 3.2% today and up 15% over 12 months. 

Imdex provides cloud-connected devices and solutions that help miners find, define, and mine ore bodies.

Bell Potter downgraded the ASX 200 materials share to a hold rating on Tuesday.

This followed Imdex's FY26 report.

The broker reduced its 12-month price target from $4.60 to $4.

This suggests a potential 4% upside ahead.

The post 10 ASX 200 shares downgraded by analysts this week appeared first on The Motley Fool Australia.

This miserly finish for the Australian markets this Tuesday followed a rough start to the American trading week on Wall Street last night (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) was not feeling Monday-fresh, dropping 0.51%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared slightly better, but still fell 0.32%.

But let's get back to our local markets now and take stock of what the various ASX sectors were up to this session.

Winners and losers

With the market's falls, there were unsurprisingly more red sectors than green ones today.

Leading those red sectors were gold stocks. The All Ordinaries Gold Index (ASX: XGD) had a rough one, cratering by 1.57%.

Communications shares weren't popular either, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) plunging 1.26%.

We could say the same for consumer staples stocks. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) saw a 1.16% dive this session.

Financial shares weren't much better, evident from the S&P/ASX 200 Financials Index (ASX: XFJ)'s 1.1% wipeout.

Consumer discretionary stocks came next. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) suffered a 1.03% reduction this Tuesday.

Tech shares were right behind that, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) dipping 1.02%.

Industrial stocks had a day to forget, too. The S&P/ASX 200 Industrials Index (ASX: XNJ) endured a 0.75% dip today.

Let's turn to the winners now. Leading the charge were healthcare shares, illustrated by the S&P/ASX 200 Healthcare Index (ASX: XHJ)'s whopping 7.81% surge. We can thank CSL Ltd (ASX: CSL) for that.

Energy stocks enjoyed some time in the sun too. The S&P/ASX 200 Energy Index (ASX: XEJ) jumped up 0.99% today.

Utilities shares also got a reprieve, with the S&P/ASX 200 Utilities Index (ASX: XUJ) advancing 0.89%.

Mining stocks were another safe haven. The S&P/ASX 200 Materials Index (ASX: XMJ) rose 0.15% by the closing bell.

Finally, real estate investment trusts (REITs) got in under the wire, as you can see by the S&P/ASX 200 A-REIT Index (ASX: XPJ)'s 0.05% inch higher.

Top 10 ASX 200 shares countdown

Our winner this session was manufacturing stock Reliance Worldwide Corporation Ltd (ASX: RWC).

Reliance shares exploded 24.65% higher today to close at $4.50 each. This came after the company posted its latest earnings, which included the revelation that it had received a takeover offer.

Here's how the other winners pulled up at the kerb:

Our top 10 shares countdown is a recurring end-of-day summary that shows which companies made big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The company also revealed that it has entered into a process deed with Brookfield Capital Partners LLC following an unsolicited, non-binding, indicative proposal for the acquisition of 100% of the ordinary shares in RWC by way of a scheme of arrangement for a cash offer price of A$4.75 per share.

What did Reliance Worldwide Corporation report?

• Net sales of US$1,305.6 million, down 0.7% on the prior corresponding period
• Adjusted net sales up 1.5% on a constant currency basis
• Reported NPAT of US$6.3 million (includes US$103.3 million in one-off post-tax items)
• Adjusted NPAT of US$125.1 million, down 15.3% year over year
• Adjusted EBITDA of US$242.1 million, 12.8% lower than last year
• No final dividend declared due to the Brookfield takeover proposal

What else do investors need to know?

The drop in reported profit was mainly due to one-off restructuring charges following the rationalisation of the company's Australian metals manufacturing operations. The board held back on a final FY26 dividend and suspended the share buy-back after receiving an unsolicited takeover offer from Brookfield Capital Partners.

Despite earnings pressures from US tariffs, higher copper costs, and weaker markets in the US and UK, Reliance Worldwide cut net debt by US$88.2 million thanks to strong operating cash flow. If the Brookfield deal does not proceed, the board may consider paying a dividend or restarting the buy-back in 2027.

What did Reliance Worldwide Corporation management say?

Commenting on the results, Reliance Chief Executive Officer, Heath Sharp, said:

FY26 was a challenging year, with earnings impacted by US tariffs, elevated copper costs, cost inflation and softer market conditions in the Americas and EMEA. We responded with targeted price actions, cost reduction initiatives, further optimisation of our manufacturing footprint and product sourcing.

What's next for Reliance Worldwide Corporation?

Looking ahead, the company does not expect a significant improvement in its main markets during FY27. Global factors like geopolitical tensions and US trade policies could keep input costs and demand under pressure. Still, management is targeting mid to high-single digit sales growth for FY27, supported by new products and price increases. EBITDA margin is forecast to stay broadly in line with FY26.

Reliance Worldwide Corporation share price snapshot

The Reliance Worldwide share price is underperforming the S&P/ASX 200 Index (ASX: XJO) on a 12-month basis with a decline of over 20%.

View Original Announcement

The post Reliance Worldwide FY26 profit falls but receives Brookfield takeover offer appeared first on The Motley Fool Australia.

The smaller we go down the market capitalisation list, the more likely it is to find an undervalued business with a long growth runway, in my opinion.

Experts from the listed investment company (LIC) WAM Research Ltd (ASX: WAX) have outlined two businesses that could be ones to watch. The LIC looks for the most compelling, undervalued growth opportunities on the ASX.

Civmec Ltd (ASX: CVL)

WAM described Civmec as a founder-led, mining, construction and engineering services company based in Western Australia.

During June, the company announced its order book had reached $1.5 billion. Growth was supported by a series of new contract awards, panel agreement extensions and new orders across its resources, infrastructure, energy and maintenance activities.

Key project wins included a further package of work with Iluka Resources Ltd (ASX: ILU) at the Eneabba Rare Earths Refinery and the major construction contract for Perth Park, delivered through an alliance with Seymour Whyte and Aurecon.

The investment team at WAM believes these projects provide strong earnings visibility over the next two years. Wilson Asset Management also believes that the ASX growth share is well positioned to win significant defence contracts which are expected to come to market over the next two to three years.

WAM suggested that Vicmec's ownership of strategic land at the Henderson precinct in Western Australia positions it well in tendering for these projects.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The other ASX growth share that was highlighted in the WAM Research portfolio was plumbing supplies company Reliance, which has operations across Australia, Europe and North America.

WAM noted that during June, it announced the next stage of streamlining its manufacturing operations.

That plan includes the closure of its brass casting, forging and machining operations in Moorabbin and Braeside, Melbourne, along with additional smaller sites.

Those changes are expected to deliver a benefit to net annual operating profit (EBITDA) of approximately US$9 million across the group by the end of FY27.

WAM said the ASX growth share has suffered headwinds in recent years, including US tariffs and higher interest rates, but the investment team believe the outlook is improving as macroeconomic indicators begin to stabilise and the company resets its cost base.

In WAM's view, this positions Reliance to grow earnings into FY27 and FY28. The fund manager sees potential for a rerating in the Reliance share price as earnings momentum improves.

The post 2 ASX growth shares with strong potential to buy appeared first on The Motley Fool Australia.

Is it bullish, bearish, or lukewarm on these shares? Let's find out:

Amcor PLC (ASX: AMC)

Morgans is positive on this packaging giant but not quite enough for a buy rating.

It has put an accumulate rating and $65.40 price target on the ASX share. Based on its current share price of $58.58, this implies potential upside of approximately 12% for investors. It commented:

Following its merger with Berry Global in April 2025, AMC identified a non-core portfolio of ~US$2.5bn in revenue. These lower-growth or lower-margin businesses where AMC lacks scale or leadership positions are expected to be divested over time via cash sales or joint ventures/partnerships.

While there is a range of scenarios that can play out, using conservative assumptions, we estimate the combined non-core portfolio could be worth ~US$1.8bn. To date, AMC has reached agreements to sell six businesses for a combined value of ~US$500m. AMC plans to use proceeds from non-core asset sales to reduce leverage, which stood at 3.8x at the end of 3Q26. While management expects leverage to end FY26 at 3.4-3.5x, the stretched balance sheet remains a key investor concern. Our analysis indicates a strong negative relationship (correlation coefficient -0.76) between AMC's leverage and its 1-year forward PE multiple. We therefore expect a reduction in leverage to support an improvement in AMC's PE multiple over time.

Beach Energy Ltd (ASX: BPT)

This ASX energy share has been given a sell rating by Morgans this week with a reduced price target of 81 cents. This compares to its current share price of 86 cents.

The broker is bearish due to its belief that the company could fall short of expectations. It said:

We mark-to-market our second half estimates for weaker spot gas prices, while also trimming our Waitsia output forecasts for FY26-28 on continuing struggles. After downgrading our Q4 estimates for daily production rates, we see potential for BPT to fall just short of its FY27 group production guidance. While BPT's share price has already been under pressure, its earnings outlook has declined at a faster rate, with its forward EV/EBITDA actually rising. We downgrade our recommendation to Sell (from Hold) with a revised target price of A$0.81 (was A$1.10).

Reliance Worldwide Corporation Ltd (ASX: RWC)

Although this plumbing parts company's shares trade on undemanding multiples, it isn't quite enough for anything more than a hold rating at present with a price target of $3.60. This is a touch lower than its current share price of $3.72.

The broker was positive on its decision to close its Australian brass operations. It said:

RWC has announced plans to close its Australian brass casting, forging and machining operations, along with several smaller sites, as part of its ongoing global footprint rationalisation program. We think the decision makes sense given RWC's reduced reliance on Australian-sourced brass in recent years. Annualised net savings are expected to be ~US$9m by the end of FY27, with benefits in the Americas more than offsetting an adverse impact on APAC earnings. One-off costs of US$100-110m (including ~US$5m cash) are expected to be incurred in FY26.

We make no changes to underlying assumptions, with changes to earnings forecasts reflecting the one-off costs in FY26 and net benefits expected across FY27 and FY28. RWC's valuation remains undemanding (12.8x FY27F PE) and recent developments related to the Middle East conflict should be positive for the global macroeconomic outlook. However, US housing demand remains subdued with 30-year fixed mortgage rates still around 6.5%. The timing of a recovery in housing activity remains uncertain and we therefore maintain our HOLD rating.

The post 1 ASX share to accumulate, one to hold, and one to sell appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today 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:

Centuria Capital Group (ASX: CNI)

The Centuria Capital share price is down over 6% to $2.04. This follows the successful completion of an institutional placement and entitlement offer. Centuria Capital has raised $265 million at $2.00 per new share. This represents a discount of 8.25% to its last close price. Centuria's joint CEOs, John McBain and Jason Huljich, commented: "The Centuria and ResetData combination has created a differentiated NVIDIA neocloud partner with scalable sovereign AI Factories and access to Centuria's real estate, land and potential 200MW+ power pipeline. ResetData is one of three Australian NVIDIA Cloud Partners and is uniquely placed to take advantage of an upswing in international demand for the establishment of Australian-based AI Factory capacity uptake. It is worth noting that comparable neocloud platforms in Australia have experienced rapid re-ratings as contracts and scale have emerged and we have this firmly in mind as we respond to increased AI demand and build out our capability in this area."

Iluka Resources Ltd (ASX: ILU)

The Iluka Resources share price is down 11% to $7.24. This is despite the mineral sands and rare earths company announcing a major offtake agreement this morning. Iluka revealed that it has signed a binding, multi-year agreement for the supply of magnet rare earth oxides to a global automotive company. The agreement sets pricing at the higher of minimum and market-linked prices for each product to balance the dual risks of downside price volatility and security of supply. Iluka advised that its minimum revenue over the contract period is US$155 million. But assuming industry forecast pricing, Iluka's revenue over the contract period would be US$172 million.

Metcash Ltd (ASX: MTS)

The Metcash share price is down 3% to $3.02. This may have been driven by a broker note out of Ord Minnett this morning. The broker has downgraded the wholesale distributor's shares to a hold rating (from buy) with a reduced price target of $3.50 (from $3.70). While Metcash's FY 2026 result was in line with expectations, Ord Minnett was disappointed with its trading update for the first seven weeks of FY 2027.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price is down 2.5% to $3.58. Investors have been selling the plumbing parts company's shares after it revealed that it is closing its brass casting, forging, and machining operations in Melbourne, along with additional smaller sites. This is part of its ongoing optimisation of its global manufacturing operations. Management revealed that it expects to recognise a one-off net charge of US$100 million to US$110 million in FY 2026.

The post Why Centuria Capital, Iluka, Metcash, and Reliance Worldwide shares are falling today appeared first on The Motley Fool Australia.

Reliance Worldwide Corporation Ltd (ASX: RWC) is in focus after the company announced another round of operational changes.

At the time of writing, the Reliance share price is down 4.36% to $3.51.

The plumbing products company has still gained around 12% over the past month, but it remains about 15% lower than this time last year.

Here's what was in the update.

Reliance closing brass sites

In a statement to the ASX, Reliance said it plans to close its brass casting, forging, and machining operations in Moorabbin and Braeside, Melbourne.

It will also shut several smaller sites as part of a wider move to make its manufacturing operations more efficient.

Reliance said the closures follow a sustained fall in brass production volumes at its Melbourne facilities in recent years. As such, the company no longer sees enough value in keeping those sites running.

Management said the changes are expected to start supporting earnings from FY27.

However, the move will affect around 85 employees in Australia. The company has started consulting with those workers and expects that process to finish in July 2026.

Why is brass demand falling?

Reliance pointed to a few reasons why its brass volumes have been falling.

In the US, the company has invested in its Alabama facility to automate the assembly of its SharkBite Max brass push-to-connect fittings.

SharkBite Max has also been redesigned so it uses less brass. According to the company, that has reduced the amount of brass needed per fitting by about 20%.

Reliance is also moving some of its APAC SharkBite production out of Melbourne and to third-party suppliers in Asia.

On top of this, the company expects brass demand to fall further as it keeps replacing brass with stainless steel across some of its key product ranges.

What will it cost?

The changes will come with a fairly large hit in the short term.

Reliance expects to record a one-off net charge of between US$100 million and US$110 million in FY26. This will be left out of operating earnings.

The charge includes about US$5 million for redundancy and property exit costs, around US$25 million in net asset write-downs, and a US$70 million to US$80 million impairment of intangible assets.

However, most of that isn't a cash cost. Reliance said only about US$5 million is expected to be cash, with the rest being non-cash.

From FY27, the company expects more production to shift away from the APAC region. That is expected to reduce APAC revenue by about US$38 million compared with FY25, but improve APAC operating earnings by about US$9 million.

Across the group, Reliance expects the changes to lift annual EBITDA by about US$9 million by the end of FY27. Once all the benefits are flowing through, the total annual uplift could reach around US$15 million.

The post This ASX 200 stock just dropped 4% after revealing a big business reset appeared first on The Motley Fool Australia.

What did Reliance Worldwide report?

• Planned closure of brass casting, forging, and machining operations in Moorabbin and Braeside, Victoria, plus smaller sites.
• Expected net annual EBITDA benefit of US$9 million across the group by end FY27.
• One-off net charge of US$100 million to US$110 million in FY26 (excluded from operating earnings).
• Around 85 employees impacted by Australian brass manufacturing closures.
• Transition of APAC brass component supply to third-party Asian vendors in 2025.

What else do investors need to know?

These manufacturing changes follow a steady decline in demand for brass production in Australia. This is due in part to Reliance Worldwide's investment in automating its Alabama facilities and designing products that use less brass, alongside a strategy to increasingly replace brass with stainless steel.

The company anticipates an adverse EBITDA impact of US$9 million on APAC region results after the closures. However, these are expected to be more than offset by an estimated annual Americas region benefit of US$18 million.

What's next for Reliance Worldwide?

Reliance Worldwide's focus moving forward is on sourcing from third-party vendors and ongoing optimisation of its supply chain. The company expects its overall brass requirements to continue declining, supporting a shift towards more cost-effective materials and manufacturing strategies.

Management anticipates these steps will deliver net financial benefits from FY27, with project cash outflows mainly relating to redundancy and asset exit costs, and the bulk of the one-off charges non-cash in nature.

Reliance Worldwide share price snapshot

Over the past 12 months, Reliance Worldwide shares have declined 12%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 4% over the same period.

View Original Announcement

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The S&P/ASX 200 Index (ASX: XJO) enjoyed its second positive trading day of the week so far this Tuesday, although it was a close call.

After yesterday's euphoric session, investors were far more downbeat this morning, with the ASX 200 opening sharply lower. However, the index recovered over the rest of the day, and eventually finished up 0.042% at 8,917.7 points.

This cautious day for Australian investors comes after an excited start to the American trading week on Wall Street last night.

The Dow Jones Industrial Average Index (DJX: .DJI) was in fine form, rising 0.92%.

But the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was off to the races, rocketing a hefty 3.07%.

Let's return to the local markets now and take stock of what the different ASX sectors were up to today amid our middling trading conditions.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

To narrow things down, let's see what analysts at Morgans are saying about the three named below. Are they buys, holds, or sells?

Netwealth Group Ltd (ASX: NWL)

Morgans remains positive on this investment platform provider following its quarterly update.

However, it isn't quite enough for a buy rating. The broker has put an accumulate rating and $29.00 price target on its shares. This compares to its current share price of $23.44.

Speaking about Netwealth, Morgans said:

NWL's 3Q26 net-flows of $3.96bn came in modestly ahead of expectations, however market volatility during the period eroded this solid performance to see 3Q26 FUA ending the quarter flat QoQ at A$125.8bn, (vs. Consensus A$129.8bn). Despite ongoing volatility and uncertainty tied to a US/Middle East conflict and a potential resolution, market momentum has recovered from peak pessimism in the March Quarter, with the ASX All Ordinaries +5.6% month-to-date in April'26, which will have seen FUA growth momentum improve post quarter end.

Looking through this near-term volatility NWL remains on track deliver solid growth FY26F and well placed to capitalised on the long runway of opportunity ahead. We retain our ACCUMULATE rating, with a Price target of $29.00/sh.

PLS Group Ltd (ASX: PLS)

This lithium giant delivered a strong quarterly update with record production and lower than expected costs.

However, given its strong share price gains, Morgans has downgraded PLS' shares to a trim rating with a $5.40 price target. This compares to its current share price of $6.14.

Commenting on the stock, Morgans said:

Record production +8% ahead of consensus expectations and costs -13% ahead of consensus expectations highlights PLS' strong operating leverage. Strong cash build supports growth and potential shareholder returns. Move to a TRIM rating (previously HOLD) with a A$5.40ps target price. PLS is our preferred lithium exposure, but we see much of the near-term upside priced in and suggest selectively trimming positions.

Reliance Worldwide Corporation Ltd (ASX: RWC)

This plumbing parts company could be fairly valued according to Morgans. It has put a hold rating and $3.25 price target on its shares. This is largely in line with its current share price of $3.30.

Morgans notes that Reliance's trading update was better than feared. It said:

RWC has reaffirmed all earnings guidance, including regional and group outlooks, for 2H26 and FY26. Against an uncertain global macro backdrop and the potential impact of higher oil prices stemming from the Middle East conflict, the trading update was better than feared. In relation to the expected impact from US tariffs, while there have been several changes since the 1H26 result in February, the anticipated impact on RWC's earnings in FY26 and FY27 remains unchanged.

We make no changes to FY26 earnings forecasts but reduce FY27 and FY28 underlying EBITDA by 2%, reflecting a more modest earnings growth profile amid ongoing subdued housing conditions. Despite the adjustments to earnings forecasts, our target price increases to $3.25 (from $3.00), reflecting an uplift in our PE valuation multiple to 12x (from 11x) following the better-than-feared trading update. HOLD rating maintained.

The post Buy, hold, sell: Netwealth, PLS, and Reliance shares appeared first on The Motley Fool Australia.

Reliance Worldwide is an Australian-owned company that designs and manufactures branded plumbing and heating products sold internationally.

Year to date, its share price has fallen almost 16%. 

After crashing to start the year, investors may be circling this ASX industrials stock as a bounce-back candidate. 

Fresh information was released from the company this week in the form of its FY26 Full Year Trading Outlook.

What did the company announce?

On Tuesday, the team at Reliance Worldwide reaffirmed all earnings guidance, including regional and group outlooks, for 2H26 and FY26. 

Based on nine months trading ended 31 March 2026, there is no material change to the FY26 second half and full year guidance issued on 17 February 2026. All guidance – including regional and Group outlook, FY26 net tariff impact, cash flow conversion, capital expenditure, D&A, net interest, effective tax rate and cost savings – is reaffirmed.

It appears investors were pleased with the announcement, as this ASX industrials stock has rebounded 7% across the last two days of trading. 

Following the announcement, the team at Morgans also provided updated guidance on the ASX industrials stock. 

Here's what the broker said. 

Trading update better than feared

In a note out of Morgans this week, the broker said that against an uncertain global macro backdrop and the potential impact of higher oil prices stemming from the Middle East conflict, the trading update was better than feared. 

In relation to the expected impact from US tariffs, while there have been several changes since the 1H26 result in February, the anticipated impact on RWC's earnings in FY26 and FY27 remains unchanged.

Target price increases

Morgans made no changes to FY26 earnings forecasts but reduced FY27 and FY28 underlying EBITDA by 2%, reflecting a more modest earnings growth profile amid ongoing subdued housing conditions. 

Despite the adjustments to earnings forecasts, our target price increases to $3.25 (from $3.00), reflecting an uplift in our PE valuation multiple to 12x (from 11x) following the better-than-feared trading update. HOLD rating maintained.

After increasing its price target, it now appears that this ASX industrials stock is trading at fair value. 

It closed yesterday at $3.24, right around the updated target from Morgans. 

Elsewhere, the average analyst price of 16 experts via TradingView sits at $4.09. 

This indicates a potential upside of 26%. 

The post Should you buy this ASX industrials stock after a 16% crash? appeared first on The Motley Fool Australia.

By the time trading wrapped up this afternoon, the ASX 200 had fallen 0.64%. That leaves the index at 8,710.7 points.

This unhappy day for ASX investors follows a mixed start to the American trading week last night.

The Dow Jones Industrial Average Index (DJX: .DJI) gave up an early spike to close down 0.13%.

Things were better on the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) though, which pushed 0.2% higher.

But let's return to the local markets now, and take stock of how today's miserable trading conditions filtered down into the various ASX sectors.

Winners and losers

The post Here are the top 10 ASX 200 shares today 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:

Elsight Ltd (ASX: ELS)

The Elsight share price is up over 6% to $7.13. This morning, the ASX defence stock revealed that its Halo connectivity platform has been included in the U.S. Department of War's Defense Contract Management Agency (DCMA) Blue List. It is a directory of approved, National Defense Authorization Act (NDAA)-compliant unmanned aircraft systems and components. Elsight's CEO, Yoav Amitai, commented: "Halo's inclusion on the Blue List arrives at a moment when U.S. defence drone procurement is scaling at an unprecedented pace. With approximately US$75 billion (A$105 billion) proposed for drone and counter-drone capabilities in FY2027 alone, the pathway from Blue List approval to operational deployment has never been shorter or more clearly defined. This milestone validates Halo as a trusted backbone for the next generation of U.S. defence programs."

Iperionx Ltd (ASX: IPX)

The Iperionx share price is up 5% to $4.48. This may have been driven by a broker note out of Bell Potter this morning. It has retained its speculative buy rating on the titanium production technology company's shares with an $8.25 price target. It said: "IPX has the potential to disrupt the incumbent titanium supply chain through materially lowering production costs and manufacturing waste. The company will incrementally expand capacity and progress commercial relationships with aerospace, automotive, luxury goods and government end users."

Predictive Discovery Ltd (ASX: PDI)

The Predictive Discovery share price is up 3% to 98.5 cents. Investors have been buying this gold miner's shares following the release of a strong quarterly update. Predictive Discovery revealed that revenue surged 321% to US$200.8 million for the three months. This was driven by a sharp lift in gold sales volumes and stronger realised gold prices (US$4,806 per ounce) during the quarter. And thanks to lower costs, the company delivered a cash margin from operations of US$139 million.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price is up 5% to $3.20. This follows the release of a trading update from the plumbing parts company. Investors appear pleased that its full-year guidance has been reaffirmed after nine months of trading. Another positive is that the FY 2026 net cost impact of US tariffs is expected to be at the lower end of the previously indicated US$25 million to US$30 million guidance range.

The post Why Elsight, IperionX, Predictive Discovery, and Reliance shares are pushing higher today appeared first on The Motley Fool Australia.