18 Share Tips – 17th February 2025

Welcome to this week’s edition of 18 Share Tips – our weekly selection of top ASX shares, chosen by leading analysts, that we think are worth considering.

This week Harrison Massey of Argonaut, John Edwards of Novus Capital  and Damien Nguyen of Morgans share their ‘Buy’, ‘Hold’ and ‘Sell’ recommendations.

Please note these share tips are simply recommendations and are in no way intended as financial advice.  These share tips are general advice and don’t take into account any individual’s financial situation. Investors are advised to seek professional financial advice before investing.

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Michael Gable, Fairmont Equities

BUY RECOMMENDATIONS

BUY – Goodman Group (GMG)

This integrated industrial property group has been expanding into data centres in a bid to take advantage of increasing demand. Recent news that Chinese artificial intelligence company DeepSeek could reduce demand for data centres has led to a slump in Goodman’s share price. We believe the retreat in Goodman’s shares is an over-reaction and presents buyers with an attractive entry level. The shares have fallen from $38.63 on January 22 to trade at $36.10 on February 13.

BUY – Sandfire Resources (SFR)

After a poor end to 2024, copper futures recently started to climb again. We expect copper prices to strengthen from here in response to global growth. Sandfire increased group copper equivalent production to 75,100 tonnes in the first half of fiscal year 2025, representing 49 per cent of annual guidance. The company has significantly reduced debt since the end of fiscal year 2024. The share price charts were recently showing an upside breakout, which should see SFR trending higher from here.

HOLD RECOMMENDATIONS

HOLD – Codan (CDA)

The share price of this communications equipment and metal detection company has risen from $5.63 on February 13, 2023, to trade at $16.41 on February 13, 2025. The company’s products are sold across the globe, providing a diversified earnings stream. Group net profit after tax of $81.3 million in fiscal year 2024 was up 24 per cent on the prior corresponding period. Revenue of $550.5 million was up 21 per cent. We expect the share price to rise given a recent upside breakout.

HOLD – Westpac Banking Group (WBC)

The share price has performed strongly in the past 12 months, increasing from $24.55 on February 13, 2024, to trade at $34.82 on February 13, 2025. It has led some market watchers to suggest profit taking, citing the shares are overvalued. Our charting analysis suggests WBC can continue trading higher from here. Since September 2024, the share price has been forming higher lows, which is a bullish sign.

SELL RECOMMENDATIONS

SELL – Smartgroup Corporation (SIQ)

SIQ provides salary packaging and fleet management services. Monash Health recently appointed a Smartgroup subsidiary as its salary packaging and novated leasing provider. The company announced it didn’t expect any meaningful earnings uplift from this contract in the first half of fiscal year 2025. Our outlook for the auto market is subdued, led by stagnating electric vehicle sales. Shares in SIQ have fallen from $10.97 on February 29, 2024, to trade at $7.88 on February 13, 2025. In our view, more exciting growth prospects exist elsewhere in the market.

SELL – Platinum Asset Management (PTM)

PTM experienced net outflows of about $160 million in January 2025. This figure includes net outflows of about $138 million from the Platinum Trust Funds. Funds under management retreated from $11.050 billion on December 31, 2024, to $10.992 billion at January 31, 2025. Regal Partners abandoned pursuing a combination with PTM in December 2024 after completing due diligence. The stock price fell after the Regal Partners decision. We can’t identify sufficient catalysts at this point that will lead to a meaningful share price recovery.

Arthur Garipoli, Seneca Financial Solutions

BUY RECOMMENDATIONS

BUY – Stanmore Resources (SMR)

This coal producer recently reported a strong result in the 2024 December quarter despite weather impacts and a planned outage. Full year saleable production of 13.8 million tonnes for full year 2024 exceeded the upper end of the guidance range. Given a two year capital expenditure campaign is nearing completion, Stanmore is well positioned to lift earnings and cash flow. The recent share price decline can be attributed to a lower coal price. In our view, it provides investors with an opportunity to buy SMR at a discounted valuation, while benefiting from a historical fully franked dividend yield above 7 per cent.

BUY – Vulcan Energy Resources (VUL)

This company engages in geothermal energy and lithium exploration and development in Europe. The company recently announced that it produced first lithium hydroxide monohydrate from its downstream optimisation plant in Germany. The product met key purity specifications, deeming it to be battery quality. We see this as a key milestone for the company and a major de-risking event. The company is cashed up after completing a capital raising amid securing other funding commitments. The share price is trading at a discount, so we see value for the risk tolerant investor.

HOLD RECOMMENDATIONS

HOLD – Australian Finance Group (AFG)

AFG is a large mortgage broking group and a leader in financial solutions. The company recently reported that the quarterly residential lodgement volume exceeded $25 billion for the three months ending December 2024. It led to a record half year residential lodgement total of $49.4 billion. Earnings have been upgraded to reflect the anticipated strength of the mortgage market. Operating conditions should improve in response to expected interest rate cuts, loan book growth and higher margins. In our view, AFG is worth holding and recently presented a fully franked dividend yield around 4.5 per cent.

HOLD – Amcor PLC (AMC)

This global packaging company recently released its second quarter result for fiscal year 2025, which was in line with consensus. Guidance was retained. Underlying net profit after tax of $US233 million was up 3 per cent on the prior corresponding period. The key to Amcor’s prospects rest on its recently announced acquisition of US packaging rival Berry Global Group, which isn’t expected to be finalised until mid 2025. Amcor packaging volumes are strong and cash flow has improved.

SELL RECOMMENDATIONS

SELL – 29Metals (29M)

This copper, zinc and precious metals mining company has exploration and production assets in Australia and Chile. We continue to view the company through a cautious lens. Copper production at Golden Grove rose in the December quarter of 2024 when compared to the prior quarter, but zinc production was down. Gold production was flat.  We’re concerned that capital expenditure may continue to impact cash flow. The company reported a net loss after tax of $109 million in the first half of fiscal year 2024. The shares have fallen from 50.2 cents on October 22, 2024, to trade at 20.5 cents on February 13, 2025.

SELL – Syrah Resources (SYR)

This graphite producer recently declared force majeure at its Balama mine in Mozambique following escalating civil unrest and political uncertainty. The company announced there had been no production at Balama for the three months ending December 31, 2024. Protest actions at Balama started in late September and continued through January 2025, impeding the company’s ability to conduct operations. The company is committed to achieving a positive resolution. But, in our view, there’s too much uncertainty about the outlook at this stage.

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BUY RECOMMENDATIONS

BUY – GenusPlus Group (GNP)

GenusPlus is a specialist power and communications infrastructure provider. It’s positioned for strong growth after it was recently awarded a contract of about $140 million by Ausgrid for sub-transmission line works. GNP recently announced it had completed the acquisition of Geographe Tree Services. These developments bolster the company’s medium term order book, while reinforcing its presence in the renewable energy sector. With a positive earnings outlook, improving margins and strategic acquisitions, GenusPlus presents an attractive investment opportunity with a solid foundation for long term growth.

BUY – Life360 Inc. (360)

This information technology company provides a mobile networking safety app for families. Life360 continues to demonstrate strong growth, particularly in core subscription revenue, which remains on track to generate more than 25 per cent growth. The company has upgraded EBITDA guidance, reflecting improving operational efficiencies. Record growth in paying subscribers, increasing user engagement and a strong balance sheet position Life360 for continued expansion. Focusing on increasing its market share and enhancing its product offerings, the company presents a compelling investment case, in our view​.

HOLD RECOMMENDATIONS

HOLD – HUB24 (HUB)

HUB24 retains its position as a leading investment platform provider, reporting higher-than-expected funds under administration (FUA) growth and record net inflows. The company’s long term outlook remains positive, driven by strong adviser adoption, structural industry changes and continuing migration of funds. Valuation metrics suggest the stock is fairly priced with moderate to near-term upside. Investors can consider holding their positions to capture future growth, while remaining mindful of market conditions​.

HOLD – Pro Medicus (PME)

Pro Medicus has experienced a significant rise in market capitalisation following several major contract wins, reinforcing its position as a leader in radiology viewing platforms. The company continues to benefit from strong pricing power, a limited competitive landscape and high margin contracts. On February 13, 2025, the company announced a half year net profit of $51.7 million for the six months ending 2024. The profit was up 42.7 per cent on the prior corresponding period. Revenue from ordinary activities of $97.2 million was up 31.1 per cent. Investors should hold their positions while monitoring any shifts in regulatory changes or technological advancements that may impact future growth​.

SELL RECOMMENDATIONS

SELL – IGO Limited (IGO)

IGO faces headwinds in response to a downgraded lithium price outlook, which may weigh on profitability. IGO reported a group EBITDA loss of $79 million in the second quarter of fiscal year 2025. The company’s share in the TLEA joint venture resulted in a loss of $57 million. Sales revenue of $132 million was down 8 per cent on the prior quarter. With limited near-term catalysts for a recovery amid the risk of further downside, investors should consider exiting their positions​. The shares have fallen from $7.94 on February 29, 2024, to trade at $4.82 on February 13, 2025.

SELL – The Star Entertainment Group (SGR)

This embattled casino operator remains in a precarious financial position, facing liquidity challenges, regulatory uncertainties and a shrinking cash reserve. The company has struggled with operational and legal issues, and, with state governments showing little inclination to provide financial support, there’s growing risk to the company’s ability to operate as a going concern. Continued losses and possible dilutive equity raises further diminish the investment appeal. Given these challenges, investors should consider selling to avoid further downside risk​.

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The above recommendations are general advice and don’t take into account any individual’s objectives, financial situation or needs. Investors are advised to seek their own professional advice before investing. Please note that TheBull.com.au simply publishes broker recommendations on this page. The publication of these recommendations does not in any way constitute a recommendation on the part of TheBull.com.au. You should seek professional advice before making any investment decisions.