This Week’s Best Performing ASX Stocks – 10th October 2025

Australian stocks closed out the week in negative territory, with the ASX 200 index down 0.32%. This was the index’s most significant one-week decline since September. In this article we look at three ASX stocks that have made significant gains in the last week. We have focused on mid-sized companies and larger here – companies with a market cap of at least 1 billion AUD.

This Week on the ASX

The S&P/ASX 200 Index concluded the week on a downward trajectory, reflecting a confluence of factors that weighed on market sentiment. The benchmark index shed 29.07 points, or 0.32%, to close at 8,958.30, marking its most significant one-week decline in both points and percentage terms since the week ending September 19, 2025. This slide snapped a two-week winning streak and extended a period of weakness, with the index now down in four of the past six weeks and four of the last five trading days.

The decline in the S&P/ASX 200 Index can be attributed, in part, to rising consumer inflation expectations. The Melbourne Institute’s survey for October revealed an increase to 4.8% from 4.7% in September. This figure represents the highest level recorded since June, signaling heightened awareness among households regarding persistent inflationary pressures. Elevated inflation expectations have the potential to influence wage demands and pricing behavior, adding complexity to the Reserve Bank of Australia’s (RBA) efforts to maintain stable inflation and potentially limiting its scope for future interest rate easing.

Adding to the headwinds, Australian consumer sentiment experienced a second consecutive month of decline in October, according to the Westpac-Melbourne Institute survey. The sentiment index fell by 3.5% to 92.1, following a 3.1% drop in September, indicating a prevailing sense of pessimism among consumers. This decline in sentiment impacted perceptions of personal finances, with the indicator for family finances compared to the previous year decreasing by 4.8%, and future financial outlooks falling by 9.9%. Furthermore, consumer willingness to purchase major household items weakened, with that index down 1.1% to 97.2, potentially affecting retail sales figures.

L1 Group Limited +50.72%

L1 Group Limited (L1G.AX) has experienced a remarkable surge in its stock price, climbing 50.72% in the past week, driven by the successful completion of its merger with L1 Capital and positive analyst projections. The strategic consolidation and anticipated synergies have significantly bolstered market confidence in the company’s future prospects.

The stock’s upward trajectory reflects the market’s positive response to the merger’s completion on October 1, 2025. This consolidation has created a combined entity managing approximately A$16.5 billion in funds, positioning L1 Group as a significant player in the financial services sector. The anticipated efficiency benefits, including an estimated A$20 million in pre-tax net synergies and cost savings, are expected to substantially enhance earnings per share (EPS). Projections indicate a double-digit EPS increase within the first year post-merger, with targets exceeding 30% by the fiscal year 2027.

Prior to the merger’s finalization, Platinum Asset Management shareholders demonstrated overwhelming support, with 99% voting in favor at an extraordinary general meeting held on September 22, 2025. This approval included the rebranding of the merged entity to L1 Group Limited, trading under the ticker symbol ‘L1G’ on the ASX. The strong shareholder endorsement underscores the perceived value and strategic rationale behind the merger.

Analysts have reacted favorably to the merger, with Morningstar setting a fair value estimate of A$0.70 per share for L1 Group. Their projections forecast a 43% annual EPS growth for the combined entity from FY26 to FY30. This optimistic outlook is attributed to cost reductions, inflows into L1 Capital’s high-performing product suite, and its robust performance fee structure. The analyst consensus suggests that the merger will unlock significant value for shareholders in the coming years.

Further contributing to the positive market sentiment, L1 Group reported an increase in total assets under management (AUM) to A$16.95 billion, up from A$16.50 billion in June. This growth in AUM demonstrates the company’s ability to attract and retain assets, further solidifying its market position. The combination of increased AUM and anticipated cost synergies paints a promising picture for L1 Group’s future financial performance.

The surge in L1 Group’s stock price reflects a confluence of positive factors, including the successful merger with L1 Capital, strong shareholder backing, favorable analyst forecasts, and an increase in AUM. These elements have collectively strengthened investor confidence, leading to the notable appreciation in the company’s stock value. The market’s positive reaction suggests that L1 Group is well-positioned to capitalize on the opportunities created by the merger and deliver strong returns for shareholders.

Predictive Discovery Limited +26.14%

Predictive Discovery Ltd (PDI) has emerged as one of the top-performing stocks on the ASX this week, fueled by significant corporate developments and strategic moves. The company’s share price has experienced a substantial surge, gaining over 26.14% and rising over 131.25% in the last week, placing it firmly in the spotlight.

The primary catalyst for this upward trajectory appears to be the recently announced merger with Robex Resources Inc. The proposed transaction, valued at $2.3 billion, aims to create a mid-tier gold producer in West Africa. Markets reacted positively to the news, driving PDI shares up 9% to 48¢ immediately following the announcement on October 6, 2025. The strategic rationale behind the merger lies in combining Robex’s existing gold production in Mali with Predictive’s promising Bankan Gold Project in Guinea. The merged entity anticipates a diversified portfolio capable of producing approximately 400,000 ounces of gold annually by 2029. The deal stipulates that Robex shareholders will receive 8.667 shares of Predictive Discovery for each Robex share they currently hold.

Further bolstering investor confidence, Predictive Discovery recently quoted 468,750 new fully paid ordinary securities on the ASX. This move is likely intended to strengthen the company’s financial position and increase its visibility within the market. Analyst ratings for PDI stock currently reflect a ‘Buy’ recommendation, with a price target around A$0.45. This positive outlook suggests that analysts anticipate continued growth and value creation for the company.

In September 2024, Perseus Mining Ltd (ASX: PRU) increased its stake in Predictive Discovery to 19.9%. This strategic investment signaled Perseus Mining’s confidence in the Bankan Gold Project, which boasts a substantial ore reserve of 3.05 million ounces. While Perseus Mining has stated that it currently has no intention to acquire control of Predictive Discovery or launch a takeover offer, their increased stake demonstrates the perceived attractiveness and growth potential of Predictive’s assets.

It is worth noting that Predictive Discovery has also demonstrated responsiveness to shareholder concerns. In July 2024, the company withdrew a proposal to issue 10 million options to non-executive directors after receiving feedback from shareholders. This decision highlights the company’s commitment to sound corporate governance practices and its willingness to address shareholder concerns regarding executive compensation.

Looking ahead, the successful completion of the merger with Robex Resources remains a key factor in Predictive Discovery’s future performance. The integration of the two companies’ assets and operations will be critical in realizing the projected production targets and achieving the anticipated synergies. While the current market sentiment surrounding Predictive Discovery is decidedly bullish, the company’s ability to execute its strategic plans and navigate potential challenges in the West African mining sector will ultimately determine its long-term success. The factors that have impacted today’s price action may continue to influence market sentiment, with investors closely monitoring the progress of the merger and the development of the Bankan Gold Project.

Brazilian Rare Earths +20.19%

Brazilian Rare Earths Limited (BRE.AX) has experienced a significant upswing, fueled by strategic partnerships and favorable global market dynamics. The stock has gained 20.19% over the past week, extending its year-to-date gains to an impressive 117.39%, reflecting strong investor confidence in the company’s growth prospects.

The recent surge in BRE shares can be attributed to several key factors. A major catalyst was the announcement of a 10-year sales agreement with Carester, a French company. This agreement will see BRE supply up to 150,000 tonnes per year of heavy rare earth feedstocks, specifically dysprosium and terbium, to Carester’s separation and recycling plant in Lacq, France. This long-term agreement not only secures a substantial revenue stream for BRE but also includes technical collaboration, with Carester assisting in the engineering and commissioning of BRE’s planned separation plant in Bahia, Brazil. This collaboration is viewed by the markets as a validation of BRE’s strategy to establish itself as a leading global rare earth producer.

Geopolitical developments have also played a crucial role in boosting BRE’s stock performance. China’s recent tightening of export controls on rare earth metals has created a ripple effect across the global market. These controls, targeting foreign defense firms and semiconductor users, have amplified concerns about supply chain security and increased demand for alternative rare earth sources. China’s dominance in the processed rare earths market, accounting for over 90% of global supply, means that any restrictions on its exports significantly impact the market. This situation has positioned companies like Brazilian Rare Earths, with assets outside of China, as increasingly strategic players.

Adding to the positive sentiment, BRE reported record high-grade discoveries at its Monte Alto Project earlier in the year. Exploration results revealed Total Rare Earth Oxide (TREO) grades reaching up to 45.7%, along with significant quantities of neodymium, praseodymium, dysprosium, and terbium. These findings underscore the potential of the Monte Alto Project and its attractiveness to investors seeking high-quality rare earth resources. The markets have reacted positively to these results, viewing them as a strong indicator of future production potential.

Furthermore, BRE’s amended agreement with Rio Tinto regarding the Amargosa tenement has been well-received. The revised terms, which replaced a US$40 million milestone payment with a life-of-mine, fixed-price production-based royalty of US$1 per wet metric tonne of bauxite sold, provide BRE with greater financial flexibility. This adjustment aligns with the company’s long-term operational goals and reduces near-term financial burdens, which is viewed favorably by analysts.

Brazil’s broader commitment to developing its rare earth industry also supports BRE’s growth trajectory. The Brazilian government is actively working to reduce dependence on Chinese imports, with significant funding allocated through the Brazilian Development Bank and Finep. This national initiative creates a supportive environment for companies like BRE to expand their operations and contribute to the country’s emergence as a key player in the global rare earth market.

While BRE enjoys these positive tailwinds, the broader rare earths market is also seeing significant developments. Lynas Rare Earths, an Australian company, recently announced a partnership with Noveon to supply rare earth magnets to the US. However, Lynas also reported an annual profit slump and launched a substantial capital raising. These divergent signals highlight the complex dynamics within the rare earths sector, where individual company performance can be influenced by both market-wide trends and specific operational challenges. Looking ahead, BRE’s strategic positioning, coupled with favorable market conditions, suggests continued growth potential. The company’s ability to capitalize on the increasing demand for non-Chinese rare earth sources, combined with its ongoing exploration and development efforts, could drive further stock appreciation. However, as with any mining company, risks remain, including commodity price volatility, operational challenges, and geopolitical uncertainties.