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 Toby Grimm of Baker Young, Joshua Baker of RaaS Group, and James Bills of Shaw and Partners 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.
Toby Grimm, Baker Young
BUY RECOMMENDATIONS
BUY – Aurizon Holdings (AZJ)
This coal and freight logistics firm delivered better than expected full year 2026 results, in our view. Revenue of $4.194 billion was up 6 per cent on the prior corresponding period and statutory net profit after tax of $362 million was up 19 per cent. A highly encouraging performance at its containerised freight division provides a long term opportunity, in our view. Strong global coal prices amid favourable weather conditions to date in New South Wales and Queensland should generate demand for export logistics. While competition for haulage contracts may lower margins, the business outlook remains positive. It was recently trading on an attractive dividend yield above 6 per cent.
BUY – Temple & Webster Group (TPW)
We don’t regularly play high growth consumer discretionary stocks, but we see an opportunity emerging in this online furniture and homewares retailer. The company delivered record revenue of $664.6 million in full year 2026, up 10.6 per cent on the prior corresponding period. It’s worth noting that new chief executive Susie Sugden was previously the chief marketing officer during the company’s highly successful infancy between 2016 and 2020. The company is focusing on improving margins, which, in our view, is conservative and prudent given the incredibly challenging conditions in the retail sector. We believe new management deserves an opportunity to rebase expectations in a sector offering medium term upside. Also, we believe accumulating a position is worth considering for those willing to take relatively high volatility risk.
HOLD RECOMMENDATIONS
HOLD – Kelsian Group (KLS)
KLS is a global operator of bus, motor coach and marine services. In our view, it delivered highly respectable 2026 results, but was marked down on doubts surrounding the sustainability of its impressive US performance and the withdrawal of the SeaLink Rottnest Island ferry from the sale of its planned tourism portfolio. However, we do see value at recent levels for what will ultimately be a far less volatile business moving forward. It was recently trading on modest forward earnings multiples.
HOLD – CAR Group (CAR)
Australia’s premium online car trading platform posted reported revenue of $1.253 billion in full year 2026, up 6 per cent on the prior corresponding period. Reported net profit after tax of $314 million was up 14 per cent. Guidance for 2027 appears favourable relative to consensus expectations. While the stock remains expensive relative to the broader market, its recent forward price/earnings ratio was trading at a significant discount to its average over the past four years. The company expects revenue growth of between 11 per cent and 14 per cent in constant currency in full year 2027.
SELL RECOMMENDATIONS
SELL – PLS Group (PLS)
This lithium producer generated group revenue of $1.934 billion in full year 2026, up 152 per cent on the prior corresponding period. It was driven by a 121 per cent increase in the average realised price and record sales volumes. However, in our view, considerable optimism is already priced into the stock. Further details, including the benefits and risks, of potentially expanding the Pilgangoora operations are expected to be released in the December quarter. After a strong share price run in the past year, we would consider cashing in some gains at these levels.
SELL – Guzman Y Gomez (GYG)
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GYG is a Mexican themed restaurant chain. The share price has rallied strongly after a decision to exit loss making US operations in May, followed by encouraging full year results in August. While there’s a near term benefit of withdrawing from the US, the decision also removes long term expansion potential. Also, it places more pressure on Australia, Singapore and Japan to perform to greater heights to justify what we consider a lofty price-earnings multiple. The shares materially exceed our valuation. The shares have risen from $16 on May 20 to trade at $26.85 on September 10. Investors may want to consider taking a profit at these levels given the Australian economy is dealing with a cost of living crisis.
The contributor, their employer, and their associates may hold interests in, receive benefits from, or have relationships with the securities mentioned that could influence the views expressed
Joshua Baker, RaaS Group
BUY RECOMMENDATIONS
BUY – Solstice Minerals (SLS)
SLS remains an exciting opportunity in the copper market. Exploration of the Nanadie Well project is progressing, with drilling revealing significant potential to expand the resource. The company recently announced new copper-gold intercepts, with reverse circulation drilling identifying previously unrecognised high grade zones. Drilling can create value and lead to expanding upside. The shares have risen from $1.81 on August 24 to trade at $2.52 on September 10. I own shares in SLS.
BUY – Auric Mining (AWJ)
The gold producer generated total record revenue of $44.8 million in first half of 2026, up 13.2 per cent on the prior corresponding period. The company posted a net profit before tax of $28 million. The Munda gold mine produced 8886 ounces from toll milling campaigns. An integrated scoping study supported the re-establishment of the Burbanks processing facility. The company recently announced it had executed binding agreements to buy two leases that together comprise the Union Jack project. One lease is subjected to completion of due diligence. AWJ continues to build a team with extensive experience in developing gold projects. I own shares in AWJ.
HOLD RECOMMENDATIONS
HOLD – Iluka Resources (ILU)
This mineral sands producer is diversifying into rare earths via its Eneabba refinery, which is 60 per cent complete. The company recently reported the refinery is progressing on schedule and on budget. An inaugural off-take agreement has been executed. Mineral sands revenue of $433 million in the first half of 2026 was down 22 per cent on the prior corresponding period. If the Eneabba project continues without any major cost blowouts or delays amid mineral sands prices continuing to recover, ILU may be a buy next year.
HOLD – South32 (S32)
South32 is a diversified miner with exposure to copper, aluminium, manganese, zinc, silver and lead. It recently announced the sale of its aluminium value chain assets to Alcoa for up to $US5.6 billion. The company continues to invest in the Hermosa development to grow its future base metals production. A hold recommendation is driven by stronger commodity price outlooks in key metals, including zinc. Consequently, this can support underlying earnings and operating cash flow growth to offset the expectation of higher investment levels to support a longer term strategic plan. Underlying EBITDA grew by 28 per cent in fiscal year 2026.
SELL RECOMMENDATIONS
SELL – Boss Energy (BOE)
Boss is a multi-mine uranium producer. It owns the Honeymoon project in South Australia and has a 30 per cent stake in the Alta Mesa project in South Texas. The Honeymoon project has presented challenges, with the company cutting production guidance in response to bad weather in the third quarter of 2026. A resource downgrade has since followed. The company posted a net profit after tax of of $2.544 million in fiscal year 2026, up from a loss of $34.168 million in the prior year. The shares have fallen from $4.62 on June 23, 2025 to trade at $1.53 on September 10, 2026. Other stocks appeal more at this stage of the cycle.
SELL – Fortescue (FMG)
The iron ore producer generated revenue of $US16.966 billion in full year 2026, up 9 per cent on the prior corresponding period. Statutory net profit after tax of $US2.860 billion was down 15 per cent, which included a $US525 million non-cash impairment charge relating to the Iron Bridge project and a $US73 million compensation claim expense. The final, fully franked dividend of 46 cents a share was down from 60 cents a year ago. Capital expenditure and investment guidance in full year 2027 is forecast to increase on full year 2026. The outlook for the iron ore price isn’t as appealing as other commodities. The share price has fallen from $22.99 on May 14 to trade at $17.22 on September 10.
James Bills, Shaw and Partners
BUY RECOMMENDATIONS
BUY – NextDC (NXT)
The company continues to benefit from strong demand for data centre infrastructure, driven by cloud computing, artificial intelligence and increasing digitalisation across the economy. NXT is expanding capacity across key Australian markets and maintains a strong development pipeline to support future growth. While investment spending remains elevated, management continues to secure long term customer contracts that provide earnings visibility. With structural growth tailwinds expected to persist for many years, NXT remains well positioned to deliver attractive long term shareholder returns.
BUY – Magellan Financial Group (MFG))
Magellan offers investors exposure to a respected global funds management business that appears attractively valued following several challenging years. The company continues to generate strong cash flow and maintain a robust balance sheet. The business also offers an appealing dividend yield – recently above 7 per cent – supported by surplus capital. Improving sentiment and stabilising operating conditions provide potential for a re-rating, making Magellan an attractive opportunity for income and capital growth investors.
HOLD RECOMMENDATIONS
HOLD – Wesfarmers (WES)
Wesfarmers remains one of Australia’s premier diversified companies. It’s supported by market leading businesses, including Bunnings, Kmart and Officeworks. The company’s strong balance sheet, disciplined capital allocation and resilient earnings profile continue to underpin shareholder value. While growth opportunities remain available across several divisions, recent share price levels appear to reflect much of this quality. Holding Wesfarmers remains appropriate given the company’s strong market position, dependable cash generation and proven ability to create value over the long term.
HOLD – James Hardie Industries PLC (JHX)
James Hardie remains a global leader in fibre cement building products and continues to benefit from strong brand recognition and market share gains, particularly in North America. The company has delivered solid long term earnings growth through product innovation and operational efficiency. However, housing activity remains sensitive to interest rate movements and broader economic conditions, creating some uncertainty around demand in the near term. Given its strong fundamentals and balanced valuation, a hold recommendation remains appropriate.
SELL RECOMMENDATIONS
SELL – Commonwealth Bank of Australia (CBA)
In our view, the stock trades at a significant premium to domestic peers and on historical valuations. While the bank maintains a high quality franchise and strong market position, earnings growth is expected to remain modest amid competitive lending conditions and regulatory pressures. Recent Federal Government initiatives aimed at increasing housing supply and improving affordability is likely to lead to intensifying competition across the mortgage market and place pressure on lending margins. Current valuations leave limited scope for further earnings driven upside. Investors may wish to take profits and re-deploy capital into opportunities offering stronger risk-adjusted return potential.
SELL – Woolworths Group (WOW)
The supermarket group has experienced a strong recovery in the past year, with the share price recently trading near the upper end of its historical range. While the company remains high quality with a leading position in Australian food retailing, much of the recent improvement appears to be reflected in the WOW share price. Earnings growth is expected to remain relatively steady rather than exceptional, limiting scope for further share price appreciation from current levels. Following the recent rally, investors may consider taking profits before re-allocating capital to opportunities with stronger growth potential and a more attractive risk-reward profile.
GENERAL ADVICE WARNING: This advice does not take into account your objectives, financial situation or needs. Before acting on this advice, you should consider whether it is appropriate for you, having regard to your objectives, financial situation and needs. If this advice relates to the acquisition, or possible acquisition, of a particular financial product, you should obtain and consider the relevant disclosure document or other information relating to that product before making any decision about whether to acquire the product.
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.
