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 Angus Geddes of Fat Prophets, Jed Richards of Shaw and Partners, and Mark Elzayed of Investor Pulse 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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Angus Geddes, Fat Prophets
BUY RECOMMENDATIONS
BUY – Capstone Copper Corp. (CSC)
This copper producer has operations in Chile, Mexico and the United States. The first quarter of 2026 marked the sixth consecutive quarter of record adjusted EBITDA totalling $US329.1 million compared to $US179.9 million in the prior corresponding period. The results were driven by strong operations and all time high copper prices. Production guidance of between 200,000 tonnes and 230,000 tonnes in full year 2026 remains unchanged. In Chile, the fully permitted Santo Domingo project continues to advance toward a formal development decision alongside further optimisation at the Mantoverde mine. The longer term structural investment case for copper remains compelling.
BUY – QBE Insurance Group (QBE)
Gross written premium growth was up 11 per cent in the first quarter of 2026 when compared to the prior corresponding period. The net cost of catastrophe claims in the four months to April 2026 totalled about $US300 million, well below the first half budget allowance of $US517 million. Investment income reached around $US500 million, supported by a fixed income yield of 4.1 per cent. Full year 2026 guidance was reaffirmed, targeting a combined operating ratio of about 92.5 per cent. The stock’s primary uptrend remains intact.
HOLD RECOMMENDATIONS
HOLD – Scentre Group (SCG)
Scentre Group owns and operates 42 Westfield shopping centres across Australia and New Zealand. The portfolio generated partner retail sales of about $7 billion in the March quarter, up 5 per cent on the prior corresponding period. Portfolio occupancy is 99.8 per cent and customer visits increased by 3.1 per cent to 160 million between January and April 19. Management has reaffirmed full year 2026 funds from operations guidance of at least 23.73 cents per security, implying at least 4 per cent growth. With occupancy effectively full, near term upside from operations appears measured. Income focused investors may value the relatively dependable distribution stream, but a higher interest rate environment provides a valuation headwind.
HOLD – Austal (ASB)
Austal is an Australian defence shipbuilder. The company held a record order book of $17.7 billion, including contract options, at February 20, 2026, with vessels under construction or scheduled for delivery that extends well into the 2030s. Earnings before interest and tax of $60.3 million in the first half of 2026 was up 41.3 per cent on the prior corresponding period. Full year 2026 EBIT guidance of $110 million was maintained. A new $150.3 million contract to build two additional patrol boats for the Australian Border Force further enhances earnings visibility. With such a large, long dated order book, execution of the enlarged backlog remains the key variable to watch.
SELL RECOMMENDATIONS
SELL – DroneShield (DRO)
The corporate watchdog, the Australian Securities and Investments Commission (ASIC), has launched an investigation into DroneShield, a major Australian defence company. On May 12, 2026, DroneShield announced it would fully co-operate with ASIC ’s investigation regarding announcements and information provided to the ASX between November 1, 2025 and November 20, 2025 and trading in DroneShield shares between November 6 and November 12. Given unresolved regulatory outcomes, a cautious stance from investors appears justified. Shares in DroneShield have fallen from $6.60 on October 9, 2025 to trade at $3.03 on May 21, 2026.
SELL – Zip Co (ZIP)
This buy now, pay later (BNPL) provider faces a challenging backdrop, in our opinion. Any deterioration in credit quality in a softer consumer environment could materially pressure earnings given the company’s operating leverage. Despite upgraded fiscal year 2026 earnings guidance, we view near term risk as skewed to the downside. Intensifying BNPL competition and increasing regulatory scrutiny in Australia add further headwinds.
Jed Richards, Shaw and Partners
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BUY RECOMMENDATIONS
BUY – Argo Investments (ARG)
This listed investment company is trading at a material discount to its underlying asset value, offering an attractive entry point. It provides broad diversity across leading Australian companies and pays a reliable fully franked dividend yield, which was recently above 4.4 per cent. Recent results highlight steady income growth and a strong balance sheet. Its conservative style suits investors seeking income and stability. Buying at a discount enhances long term return potential, while maintaining exposure to high quality Australian equities.
BUY – L1 Long Short Fund (LSF)
LSF offers exposure to global growth opportunities through a highly regarded investment team with a strong long term track record. Management has meaningful personal investment in the fund, aligning interests with investors. The portfolio blends long and short positions, aiming to generate returns across all market cycles. Recent performance has been supported by global equity exposure. The fund also offers a solid income stream, making it an attractive option for growth and income in a diversified portfolio.
HOLD RECOMMENDATIONS
HOLD – Metcash (MTS)
Metcash remains a quality defensive business with diverse earnings across food, liquor and hardware. Its strong customer network provides consistent cash flow and resilience during economic uncertainty. Recent updates show stable margins despite increasing cost pressures, and the company continues to generate an attractive dividend yield. While growth is modest, its defensive characteristics and reliable income stream support a hold position. It remains well positioned to benefit from steady consumer demand.
HOLD – Amcor PLC (AMC)
This packaging giant continues to face pressure from elevated input costs, particularly linked to higher oil and plastic prices, which have impacted margins. Despite this, the company maintains strong global operations and continues to generate stable cash flow. A weaker share price provides an attractive dividend yield for income investors. Recent updates indicate increased costs have been passed through to customers. Holding is appropriate given its defensive packaging exposure, but upside will likely depend on managing input costs.
SELL RECOMMENDATIONS
SELL – Woodside Energy Group (WDS)
Woodside has benefited from elevated oil and gas prices driven by geopolitical tensions in the Middle East. However, in our view, the share price strength appears largely macro driven rather than based on underlying company improvements. Given Middle East tensions are expected to ease over time, energy prices could soften and reduce earnings support. The stock now appears fully valued. In response to share price gains, it makes sense to lock in profits and re-allocate the proceeds to opportunities with stronger growth outlooks.
SELL – Telstra Group (TLS)
Telstra is currently trading at elevated levels, in our view, with its defensive appeal pushing the share price higher. However, underlying growth remains limited, and the dividend yield is becoming less attractive as the share price rises. Recent updates show steady but low growth across its core business segments, according to our analysis. Valuations are now stretched and the risk-reward balance is less compelling. The shares have risen from $3.89 on February 10, 2025 to trade at $5.45 on May 21, 2026. We would be inclined to take a profit at theses levels.
Mark Elzayed, Investor Pulse
BUY RECOMMENDATIONS
BUY – Kingsgate Consolidated (KCN)
Kingsgate operates the Chatree gold mine in Thailand and is benefiting from elevated gold prices and improving operational momentum. We like the stock because March quarter gold production reached 21,036 ounces, with record margins of $US2613 per ounce. Total cash and bullion climbed to $213.4 million, while debt was significantly reduced. Management is also targeting gold production of between 85,000 ounces to 95,000 ounces in full year 2026, supported by stronger grades and ongoing exploration upside near Chatree.
BUY – Commonwealth Bank of Australia (CBA)
CBA remains Australia’s dominant retail bank. The recent sharp sell-off has created a more attractive entry point for long term investors. The bank generated unaudited cash net profit after tax of $2.7 billion in the third quarter of fiscal year 2026, up 4 per cent on the prior corresponding period. Lending and deposits continued to grow despite a softer economic backdrop. CBA also maintains strong capital levels and recently paid a fully franked interim dividend of $2.35 a share for the first half of fiscal year 2026. The shares fell heavily following housing concerns flowing from the Federal Budget. We see scope for a recovery once sentiment stabilises.
HOLD RECOMMENDATIONS
HOLD – Wesfarmers (WES)
Wesfarmers is a diversified industrial conglomerate. It owns market leading businesses, including Bunnings, Kmart and Officeworks, generating resilient earnings, even in softer economic conditions. We believe it makes sense to hold Wesfarmers given it generated net profit after tax of $1.603 billion in the first half of 2026, up 9.3 per cent on the prior corresponding period. Revenue of $24.2 billion was up 3.1 per cent. Bunnings and Kmart continued delivering strong sales growth. The group also lifted its fully franked interim divided by 7.4 per cent to $1.02 a share, highlighting confidence in cash generation and balance sheet strength.
HOLD – Tower (TWR)
Tower is a New Zealand focused insurer benefiting from solid policy growth and improved underwriting conditions. The company generated 15,000 new customers in the year to March 31, 2026, despite a subdued economic environment. The company announced growth initiatives for the second half of 2026, including a partnership with Westpac to offer general insurance products to its retail customers. In our view, company performance and outlook supports a hold recommendation at this stage of the cycle.
SELL RECOMMENDATIONS
SELL – Ricegrowers (SGLLV)
Owns SunRice Group and has benefited from elevated rice prices and strong export demand. But we believe much of the good news is already reflected in the share price of this global group. Moving forward, we expect earnings growth to moderate as global rice supplies normalise amid what we consider to be elevated input costs. The company is up against strong competition in several markets. Margins also face pressure from freight and currency volatility, potentially limiting near term upside.
SELL – Bapcor (BAP)
Bapcor is an aftermarket automotive parts provider in Australia and New Zealand. It operates the Autobarn, Burson and Autopro brands. It reported improving sales from turnaround activities between February and April 2026. However, trading conditions had materially deteriorated since late March 2026 in response to the Middle East conflict and an increase in interest rates. It has reduced fiscal year 2026 earnings guidance on what it provided on February 26, 2026. The company also flagged higher operating costs. The share price remains under pressure. The stock has fallen from $5.22 on July 14, 2025 to trade at 38 cents on May 21, 2026. Better options exist elsewhere, in our view.
Featured Names – The Roundup
| Name | Recommendation | Firm |
|---|---|---|
| Capstone Copper Corp. (CSC) | Buy | Fat Prophets |
| QBE Insurance Group (QBE) | Buy | Fat Prophets |
| L1 Long Short Fund (LSF) | Buy | Shaw and Partners |
| Argo Investments (ARG) | Buy | Shaw and Partners |
| Kingsgate Consolidated (KCN) | Buy | Investor Pulse |
| Commonwealth Bank of Australia (CBA) | Buy | Investor Pulse |
| Scentre Group (SCG) | Hold | Fat Prophets |
| Austal (ASB) | Hold | Fat Prophets |
| Metcash (MTS) | Hold | Shaw and Partners |
| Amcor (AMC) | Hold | Shaw and Partners |
| Wesfarmers (WES) | Hold | Investor Pulse |
| Tower (TWR) | Hold | Investor Pulse |
| DroneShield (DRO) | Sell | Fat Prophets |
| Zip Co (ZIP) | Sell | Fat Prophets |
| Endeavour Group (EDV) | Sell | Shaw and Partners |
| The a2 Milk Company (A2M | Sell | Shaw and Partners |
| Ricegrowers (SGLLV) | Sell | Investor Pulse |
| Bapcor (BAP) | Sell | Investor Pulse |
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.
