18 Share Tips – 24th March 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 Damien Nguyen of Morgans, Jed Richards of Shaw and Partners and James Nicolaou of PAC 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.

Sign up to our mailing list and get our weekly batch of share tips sent straight to your inbox, every monday.

As a welcome gift, we will also send you our pick of the 5 best ASX shares to buy in 2025 completely free.

Damien Nguyen, Morgans

BUY RECOMMENDATIONS

BUY – Pro Medicus (PME) 

Pro Medicus is a high quality, capital light healthcare technology company with a dominant position in radiology imaging software. It benefits from strong structural tailwinds in AI (artificial intelligence) driven medical imaging, a high margin recurring revenue model and ongoing contract wins with top tier US hospitals. With no debt, a growing cash balance and scalable business model, PME is ideally positioned for long term growth. It has won several key contracts in recent years, showing continuing momentum. We see the recent sell-off as an attractive entry point.

BUY – Regal Partners (RPL)

Regal Partners is a leading alternative asset manager benefiting from rising institutional demand for investments in hedge funds, private markets and real assets. With a strong investment performance driving assets under management growth, a scalable business model, strategic acquisitions and an attractive dividend yield, Regal is well placed to generate long term shareholder value. We view the recent sell-off as overdone considering Regal has diversified its portfolio from equities to include private credit and real assets.

HOLD RECOMMENDATIONS

HOLD – Lovisa Holdings (LOV) 

Lovisa has successfully expanded its global footprint, leveraging its fast fashion jewellery model to drive strong revenue growth and high margins. The company continues to execute well, with store rollouts in key international markets supporting expansion in the long term. However, slowing consumer spending, currency fluctuations and potential supply chain challenges pose near term risks. While Lovisa remains a well-managed, high growth retailer with strong cash flows, its valuation reflects much of this optimism, making it a hold at current levels.

HOLD – JB Hi-Fi (JBH) 

JB Hi-Fi is a leading Australian retailer demonstrating strong brand loyalty, market leadership in consumer electronics and disciplined cost management. While its value proposition and strong cash flows support continued dividends, near term headwinds, such as softer consumer spending, rising cost pressures and intense competition could limit upside potential. Given its solid fundamentals, but potential for earnings pressure in a high interest rate environment, JBH is a hold for investors seeking income stability while awaiting a more attractive entry point for future growth.

SELL RECOMMENDATIONS

SELL – Commonwealth Bank of Australia (CBA) 

The CBA is a high quality, well capitalised bank with strong market dominance in Australian retail banking. However, at current levels, CBA trades at a significant premium relative to its peers, despite facing margin pressures from higher funding costs, slowing credit growth and increasing competition. Rising household stress and potential loan impairments also pose risks in a high interest rate environment. While CBA remains a solid long term business, its stretched valuation and limited near term upside make it a sell for investors seeking better risk reward opportunities in the sector.

SELL – ASX Limited (ASX) 

The ASX benefits from a near monopoly position in Australia’s equity markets and generates stable revenue from trading, clearing and settlement services. However, concerns around regulatory scrutiny, competition from Cboe Australia and delays in critical technology upgrades, such as the CHESS replacement, create headwinds. In our view, earnings growth is modest, and the company faces ongoing operational challenges. Investors may want to consider selling ASX in favour of higher growth financial sector opportunities.

Jed Richards, Shaw and Partners

BUY RECOMMENDATIONS

BUY – Abacus Storage King (ASK)

The company owns and manages a self-storage portfolio across 147 assets in Australia and New Zealand. It has total assets of $3.3 billion. Funds from operations of $43.3 million in the first half of fiscal year 2025 were up 15.1 per cent on the prior corresponding period. ASK re-affirmed fiscal year 2025 distribution guidance of 6.2 cents per security. Also, it was recently trading significantly below asset backing, presenting a top value opportunity for investors.

BUY – Duxton Water (D2O)

Duxton provides water supply solutions to Australian irrigators. The company capitalised on the Federal Government buyback program by selling water entitlements at a premium, eliminating its debt and boosting its net tangible assets (NTA). The transaction is valued at about $121.3 million. This enables strong financial stability. It positions Duxton to potentially grow and increase its dividend. Disclosure: Shaw and Partners is facilitating an on-market share buyback for Duxton Water. This buyback program aims to enhance shareholder value by re-purchasing shares at prices deemed below the intrinsic value of the company’s assets.

HOLD RECOMMENDATIONS

HOLD – Macquarie Group (MQG) 

Macquarie is a steady performer, supported by its diversified operations across infrastructure, renewables and financial services. Macquarie reported a first half net profit of $1.612 billion in  fiscal year 2025. In a third quarter trading update in February, fiscal year 2025 net profit after tax was broadly in line with the prior corresponding period. Macquarie’s strong balance sheet and diversified revenue streams make it a stable investment, but short term challenges, such as rising costs, global volatility and uncertainty may limit immediate upside.

HOLD – Transurban (TCL)

The company generates revenue from toll roads in Australia, the United States and Canada. TCL reported average daily traffic of 2.5 million trips in the first half of fiscal year 2025, up 2.4 per cent on the prior corresponding period. Traffic was up across all markets. Infrastructure assets, such as toll roads, reduce volatility, supported by consistent traffic and a dividend yield of about 5 per cent. Also, the prospect of lower interest rates could enhance its financial performance. Government regulated returns are consistent and ensure fair pricing, which attracts investment to the sector.

SELL RECOMMENDATIONS

SELL – Flight Centre Travel Group (FLT)

We were surprised to see the stock trading above $22 in 2024 as excessive investor enthusiasm noted increases in world travel. Investors were disappointed with the first half result in fiscal year 2025 and punished the stock. While revenue of $1.328 billion was up 3.2 per cent, statutory profit after income tax of $59.6 million was down 31.2 per cent. Shares in the travel agency giant closed at $17.72 on February 25, the day prior to its results. The shares were trading at $14.32 on March 20. The international travel market may be impacted by slowing global growth in response to higher prices from tariffs amid geopolitical uncertainty.

SELL – Domino’s Pizza Enterprises (DMP) 

Shares in the fast food giant have fallen from $36 on February 10 to trade at $26.59 on March 20. Underlying group earnings before interest and tax of $100.6 million in the first half of fiscal year 2025 were down 6.7 per cent on the prior corresponding period. Network sales were down 2.9 per cent and same store sales fell 0.6 per cent. Challenges in Japan and France are impacting group performance. Markets in Asia and Europe are struggling. Investor confidence has been impacted and a recovery in performance will take time. Other stocks are more appealing at this stage of the cycle.

Don’t Buy Just Yet

You will want to see this before you make any decisions.

Before you decide which shares to add to your portfolio you might want to take a look at this special report we recently published.

Our experts picked out The 5 best ASX shares to buy in 2025.

We’re giving away this valuable research for FREE.

Click below to secure your copy

James Nicolaou, PAC Partners

BUY RECOMMENDATIONS

BUY – APA Group (APA) 

APA is a leading infrastructure energy business. The group reported solid first half results in fiscal year 2025. Total revenue of $1.62 billion was up 6.9 per cent on the prior corresponding period. Underlying EBITDA of $1.015 billion was up 9.1 per cent, marginally exceeding forecasts and underpinning strong full year guidance of between $1.96 billion and $2.02 billion amid a distribution forecast of 57 cents per security. Effective cost controls continue to keep expense growth below inflation levels. APA’s defensive infrastructure profile offers an attractive dividend yield and potential upside from anticipated interest rate reductions.

BUY – Generation Development Group (GDG) 

GDG is a diversified financial services and investment company. It offers appealing growth prospects across its key business segments. Total funds under management in the Generation Life business grew to $3.84 billion in the first half of fiscal year 2025, up 31 per cent year-on-year. Lonsec Investment Solutions reported strong funds under management growth to $12.7 billion. Lonsec is well positioned to capture continuing market share growth. GDG’s strong earnings trajectory, supported by double-digit revenue growth across its key divisions, reinforces its investment case.

HOLD RECOMMENDATIONS

HOLD – Shape Australia Corporation (SHA)

Shape is a fit-out and construction services business. The company generated record revenue of $479 million in the first half of fiscal year 2025, up 15 per cent compared to the prior corresponding period. EBITDA of $14.8 million was up 21 per cent. The company generated record project wins of $531.5 million and it has backlog orders of $516 million. SHA’s diversification strategy into non-office sectors, including healthcare, education and defence, is progressing well. The company is successfully executing its strategy and fundamentals remain solid. We await further upside potential, or a more attractive entry point.

HOLD – Aurelia Metals (AMI) 

The company operates three underground base metals mines at two operations, Peak and Federation. It’s progressing the Great Cobar project, a high grade copper development at Peak. AMI delivered a solid first half result in fiscal year 2025. Underlying EBITDA of $49.7 million was up 53 per cent year-on-year, exceeding estimates by 4 per cent on the back of lower costs and favourable pricing. The company remains well-funded, with $96.7 million in cash, ensuring flexibility for upcoming growth projects. AMI presents an attractive valuation.

SELL RECOMMENDATIONS

SELL – Accent Group (AX1) 

The company holds a leading position in the footwear retail sector. It has more than 900 stores, 34 brands and more than 35 online platforms. The company is up against fierce competition, discounting pressures and foreign exchange headwinds in a challenging retail environment. It posted EBITDA of $158.3 million in the first half of fiscal year 2025, up 0.5 per cent on the prior corresponding period. It delivered like-for-like retail sales growth of 2.9 per cent. In a recent trading update, like-for-like sales for the first seven weeks of the second half were up just 2.2 per cent on the prior year, failing to meet consensus expectations. The gross margin was down around 70 basis points on the prior year. The business remains vulnerable to softer consumer demand.

SELL – Healius (HLS) 

HLS is a diagnostic pathology and imaging company. Pathology revenue, excluding Agilex Biolabs, of $641.7 million in the first half of fiscal year 2025 was up 7 per cent. However, the pathology EBIT (earnings before interest and tax) margin fell to just 0.6 per cent. Healius remains under pressure to effectively execute its cost-cutting initiatives. The stock appears expensive relative to its growth outlook.

Related Articles:

• How to Start Stock Trading in Australia
• The Best Stock Trading App in Australia
• A Beginner’s Guide to CFD Trading in Australia
• The Best CFD Trading Platform in Australia

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.