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, John Athanasiou of Red Leaf Securities, and Tony Locantro of Alto Capital 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.
Angus Geddes, Fat Prophets
BUY RECOMMENDATIONS
BUY – Suncorp Group (SUN)
Suncorp provides insurance products and services. The company posted underlying earnings of $1.636 billion in full year 2026, a 4.5 per cent increase on the prior corresponding period. This was despite natural hazard costs exceeding its allowance. A re-insurance program in fiscal year 2027 will effectively limit natural hazard downside to $50 million in 90 per cent of scenarios. Suncorp announced a fully franked special dividend of 10 cents a share, alongside a final dividend of 52 cents. An on-market share buy-back of up to $250 million is planned for full year 2027. The underlying yield on the Australian investment portfolio rose to 5.1 per cent. We’re bullish on Suncorp moving forward in an elevated bond yield environment.
BUY – SGH Limited (SGH)
SGH owns a portfolio of quality industrial businesses, giving it exposure to mining production, construction and infrastructure. Revenue of $10.564 billion in full year 2026 was down 2 per cent on the prior corresponding period, yet earnings before interest and tax of $1.554 billion were up 1 per cent as the group margin modestly increased. We’re encouraged by 6 per cent revenue growth to $4.1 billion at the company’s WesTrac operations. Full year dividends of 64 cents a share, fully franked, were up 3 per cent. The company also announced an on-market buy-back of up to $500 million in SGH shares. Fiscal year 2027 guidance is cautious, but the outlook is solid in the medium term, supported by long duration demand.
HOLD RECOMMENDATIONS
HOLD – Westpac Banking Corporation (WBC)
Unaudited net profit, excluding notable items, of $1.8 billion in the third quarter of fiscal year 2026 was up 2 per cent on the first half average. The net interest margin of 1.89 per cent was stable. The damage came from average monthly mortgage application volumes falling 11 per cent to 29,000. Surplus capital and the steady dividend are appealing. We believe the AI-driven cost compression opportunity in coming years is underpriced.
HOLD – Woodside Energy Group (WDS)
Operating revenue in the June quarter of 2026 rose 28 per cent on the prior quarter as its average realised price increased 35 per cent. Production fell 9 per cent, reflecting planned Pluto Train 1 maintenance and a recovery from cyclone impacts. However, reliability remained strong across most assets, and Woodside narrowed full year 2026 production guidance. The Scarborough energy project is 98 per cent complete, is on budget and targeting first LNG cargo in the fourth quarter. We are patient holders.
SELL RECOMMENDATIONS
SELL – Seek (SEK)
Seek operates employment websites. We’re expecting softer demand during the year ahead. The company is challenged by declining job ads in Australia and New Zealand. Fiscal year 2027 guidance assumes a mid single digit decline in Australian and New Zealand volumes, pressuring margins if hiring conditions fail to stabilise. The company posted a reported loss of $307 million from continuing operations in full year 2026. We’re avoiding Seek at this point.
SELL – 4DMedical (4DX)
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4DMedical is an Australian respiratory imaging company and its technology is promising and appealing. The company reported operating revenue of $7.2 million in fiscal year 2026, up 23 per cent on the prior corresponding period. While the news flow has been supportive, we believe the share price already reflects a considerable amount of future success. We can’t identify sufficient traction moving forward to justify the company’s recent value. The shares have performed strongly in the past 12 months, so investors may want to consider taking a profit.
John Athanasiou, Red Leaf Securities
BUY RECOMMENDATIONS
BUY – DUG Technology (DUG)
This software solutions company is building strong momentum in response to improving revenue, margins and cash flow. Revenue of $US62.7 million rose 39 per cent in the first nine months of fiscal year 2026. Normalised EBITDA almost doubled to $US20.9 million. Operating cash flow reached $US23.7 million and DUG moved from net debt a year earlier to $US11.4 million in net cash. The earnings mix is also improving.
Demand for DUG’s proprietary MP-FWI imaging technology remains strong, while recurring 4D projects add further revenue visibility. Given accelerating growth, improving cash generation and a stronger balance sheet, DUG remains an attractive technology exposure.
BUY – Atturra (ATA)
Atturra is an AI-driven technology integrator. It’s focusing on organic growth after integrating a number of acquisitions. Underlying EBITDA in full year 2026 is expected to range between $30 million and $30.5 million, which is in line with guidance, while second half operating cash flow is expected to reach between $22 million and $23 million. Atturra plans to invest an additional $3 million in AI, while its SAP business is forecast to grow by more than 50 per cent between fiscal years 2026 and 2027. If management successfully executes its fiscal year 2027 strategy, Atturra’s earnings profile should materially strengthen.
HOLD RECOMMENDATIONS
HOLD – BHP Group (BHP)
This high quality company offers exposure to global resources. The company posted attributable profit of $US9.8 billion in full year 2026, up 9 per cent on the prior corresponding period. Revenue of $US58.8 billion was up 15 per cent. The company’s copper portfolio is positioned to benefit from electrification, renewable infrastructure, power grid investment and data centre growth. However, BHP remains heavily exposed to iron ore, leaving earnings sensitive to Chinese demand and commodity price movements. The quality of BHP’s asset base, balance sheet and diversified portfolio leaves existing shareholders with little reason to sell. However, after a solid run, prospective investors may be better served waiting for a potentially more attractive entry point.
HOLD – Telstra Group (TLS)
Telstra’s investment case has improved materially, supported by a stronger mobile business, better earnings momentum and improving shareholder returns. Its mobile network remains the company’s key competitive advantage, providing pricing power, scale and dependable cash generation. The market has increasingly recognised Telstra’s defensive qualities, which, we believe, are reflected in the share price. Telecommunications also remains a capital intensive industry, requiring significant ongoing investment to maintain network leadership. For existing shareholders, the combination of relatively stable earnings, dividends and a strong mobile franchise remains attractive. However, for new investors, the upside appears less compelling after a recent re-rating.
SELL RECOMMENDATIONS
SELL – Commonwealth Bank of Australia (CBA)
CBA shares deserves to trade at a premium given its dominant retail franchise, strong technology platform, solid deposit base and consistent execution. However, Australian banking remains a mature industry, with intense competition across mortgages and deposits limiting the potential for outsized earnings growth. At a premium valuation, investors are paying a higher price for quality, leaving little room for disappointment. After a substantial re-rating, investors may be better served taking some profits and reallocating capital towards businesses offering stronger growth at more reasonable valuations.
SELL – Westpac Banking Corporation (WBC)
The bank remains well capitalised and continues to generate solid earnings, but the operating environment is becoming increasingly competitive. Mortgage pricing is aggressive, deposit competition remains intense and the scope for sustained margin expansion appears limited. Westpac’s dividend remains attractive, but investors should also consider opportunity cost. We believe there are more compelling opportunities on the ASX, which offer stronger structural growth or more attractive valuations.
Tony Locantro, Alto Capital
BUY RECOMMENDATIONS
BUY – Dimerix (DXB)
Dimerix is a clinical-stage biopharmaceutical company developing treatments for kidney disease. Its lead asset is DMX-200. The fully recruited action phase 3 trial is anticipated to have a final readout in March 2028. Also, Dimerix has expanded its renal pipeline with phase 2 DMX-652, a treatment targeting acute kidney injury. With a pivotal phase 3 program approaching major clinical catalysts, significant licensing validation and an increasingly diversified kidney disease portfolio, the risk-reward profile supports a speculative buy recommendation.
BUY – Legacy Minerals Holdings (LGM)
This gold and silver explorer is advancing the Mt Carrington project in New South Wales. The investment case is stronger following a major resource upgrade to about 1.6 million ounces of gold equivalent, alongside a positive scoping study demonstrating attractive preliminary economics and a long-life development opportunity. Ongoing geophysical work and drilling across numerous targets offer substantial exploration upside. With a growing resource base, encouraging project economics amid multiple exploration and development catalysts ahead, Mt Carrington is emerging as an increasingly significant asset. While feasibility, permitting and funding risks remain, a combination of development potential and exploration upside leaves LGM as a high risk, high reward speculative buy.
HOLD RECOMMENDATIONS
HOLD – Kaiser Reef (KAU)
Kaiser Reef is an Australian gold producer. It operates the Henty mine in Tasmania alongside its Victorian gold assets. Kaiser produced 6000 ounces of gold across its Henty and Maldon operations for the quarter ending June 30, 2026. The company retains a healthy cash position amid continuing investment in underground development, exploration and operational improvements. Given established production, strong exposure to elevated gold prices and multiple opportunities to expand output and mine life, Kaiser offers an attractive combination of cash flow and growth.
HOLD – Great Southern Mining (GSN)
GSN is progressing an active gold exploration portfolio across Western Australia and Queensland. Drilling has started at its emerging Amy Clarke prospect, which is part of the Duketon Gold project. Earlier results identified gold mineralisation across about 4.7 kilometres of strike. Drilling has extended known mineralisation at the Mon Ami gold project. While the portfolio offers substantial discovery upside and strong third party validation, projects remain exploration stage, supporting a hold recommendation.
SELL RECOMMENDATIONS
SELL – Commonwealth Bank of Australia (CBA)
The CBA remains Australia’s leading banking franchise and delivered another strong result in full year 2026. Cash net profit after tax of $10.982 billion was up 7 per cent on the prior corresponding period. The full year dividend of $5.05 a share, fully franked, was up 4 per cent. Strong lending, deposit growth and a robust capital position continue to demonstrate the quality of the business. However, operating expenses and loan impairment expenses increased. The CBA continues to trade at a substantial valuation premium to domestic banking peers. Although the underlying business remains strong, the premium valuation leaves little room for disappointment and may potentially constrain prospective returns.
SELL – CAR Group (CAR)
CAR Group operates leading digital automotive markets in Australia and internationally. It delivered another strong result in fiscal year 2026. Reported revenue of $A1.253 billion was up 6 per cent on the prior corresponding period. Reported net profit after tax of $A314 million was up 14 per cent. International operations continue to generate attractive long term growth and management expects further revenue growth in fiscal year 2027. However, the company’s strong operating performance is increasingly reflected in its valuation, which requires sustained double digit growth and continuing successful international execution. In our view, the risk-reward balance in response to valuation supports a lighten recommendation.
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.
