18 Share Tips – 2nd February 2026

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, Damien Nguyen of Morgans and Blake Halligan of Catapult Wealth 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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Toby Grimm, Baker Young

BUY RECOMMENDATIONS

BUY – New Hope Corporation (NHC)

The extension of Origin Energy’s Eraring coal fired power station is a reminder that demand for thermal coal is likely to remain robust for longer than many investors believe. New Hope group saleable coal production of 2.7 million tonnes for the quarter ending October 31, 2025 was up 7.1 per cent on the previous quarter. Underlying EBITDA of $107.9 million for the quarter was up 15.5 per cent on the prior quarter. New Hope has a strong balance sheet, and we feel the market is undervaluing NHC’s growth potential through the New Acland stage 3 development. Recently trading on a modest forecast earnings multiple in fiscal year 2026 and an attractive fully franked dividend yield, the stock screens as attractive.

BUY – Reliance Worldwide Corporation  (RWC)

We expect the push-to-connect plumbing fittings maker to benefit from a brighter political and economic outlook during 2026. A combination of potential interest rate cuts in the United States and increasing political attention on housing affordability should support a recovery in US housing construction. Net sales of $US1.314 billion in full year 2025 were up 5.5 per cent on the prior corresponding period. We expect the company to generate double digit earnings growth from full year 2027.

HOLD RECOMMENDATIONS

HOLD – Beach Energy (BPT)

The oil and gas producer, BPT, remains constrained by its large exposure to less than favourable domestic gas markets, in our view. However, the continuing successful development of the Waitsia gas project in Western Australia underpins material oduction growth and increasing exposure to export pricing in coming years. Relatively low debt and an improved profitability outlook substantiates our reason to hold for now.

HOLD – The A2 Milk Company (A2M)

A2M shares tumbled about 12 per cent on January 19 following news that birth rates in China – its key infant formula market – fell 17 per cent in 2025 to multi-decade lows. While this suggests continued headwinds for demand, we note the company is still likely to see mid-single digit sales and earnings growth in fiscal year 2026. A2M enjoys significant pricing power in China, boasts a strong balance sheet and has the potential to further diversify its products and end markets over the medium term.

SELL RECOMMENDATIONS

SELL – ARB Corporation (ARB)

The four wheel drive accessories maker warned on January 20, 2026 that sales in key Australian and OEM (original equipment manufacturer) markets continued to decline in the first half of 2026. While exports to the United States were better than expected, it represents a smaller portion and lower margin segment of ARB’s business and is unlikely to offset major headwinds largely beyond the company’s control. ARB shares were recently trading more than 10 per cent above our valuation, so  we suggest investors consider selling around current levels.

SELL – Insurance Australia Group (IAG)

The decision by competition regulator, the Australian Competition and Consumer Commission (ACCC),   to block IAG’s proposed acquisition of RAC Insurance (RACI) from the Royal Automobile Club of Western Australia highlights the rising barriers to inorganic growth for IAG. Further, the ACCC decision reflects a desire to stimulate greater competition in the general insurance market. With IAG trading above our valuation, we would be inclined to take profits around current levels.

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.

Damien Nguyen, Morgans

BUY RECOMMENDATIONS

BUY – Xero (XRO)

Xero is a global accounting software provider. It offers an attractive medium term growth opportunity as subscriber momentum improves and operating leverage begins to flow through the business model. The business continues to expand its footprint across key geographies, with cloud accounting penetration still well below potential, providing a long runway for adoption. Recent cost discipline has strengthened margins. Despite a softer macroeconomic backdrop, resilient revenue growth is supported by price increases and a broader ecosystem of adjacent services. We view the current share price as an attractive entry point for long term investors.

BUY – CSL Limited (CSL)

This biopharmaceutical giant offers a stronger risk/reward profile after a period of share price underperformance. Plasma collections are rising, costs are normalising and earnings momentum is improving. Recovery at CSL Behring, a blood products division, remains on track and the influenza vaccination division Seqirus continues to provide defensive earnings. The current valuation sits well below long term averages despite fundamental improvement. This sets up an attractive long term capital growth story. Catalysts for a share price re-rating include an earnings recovery and margin expansion.

HOLD RECOMMENDATIONS

HOLD – Mineral Resources (MIN)

MIN is a diversified resources company in Western Australia. It has extensive operations in lithium, iron ore, energy and mining services. Mineral Resources enters 2026 with improved stability after a volatile period, supported by progress at Onslow Iron. On January 29, 2026, the company upgraded lithium volume guidance and maintained cost guidance at both operations. It reduced net debt to about $4.9 billion as at December 31, 2025. We remain confident management can successfully execute its strategy and expect strong earnings growth in the current commodity price environment. The shares have risen from $14.40 on April 9, 2025 to trade at $61.18 on January 29, 2026. At this point, we believe the stock is fully valued.

HOLD – BHP Group (BHP)

BHP remains a high quality diversified miner. The stock has performed well, with the price increasing from $34.16 on April 9, 2025 to trade at $51.39 on January 29, 2026. While capital discipline and dividend yield remain attractive, there isn’t a compelling catalyst to add to portfolios at current levels, in our view. We suggest investors retain exposure for income and longer term portfolio balance, and wait for a potentially better entry point before increasing weight.

SELL RECOMMENDATIONS

SELL – Wesfarmers (WES)

Wesfarmers remains a high quality industrial conglomerate, but after a strong re-rating through 2025 and solid fiscal year 2025 results, the stock, in our view, now screens as close to fully valued with limited upside. Shares were recently trading near the upper end of its recent range, supported by resilient results at Bunnings and Kmart. However, broader group earnings are increasingly sensitive to macroeconomic conditions across retail, industrials and commodities. While the longer term outlook remains strong, the recent valuation already captures much of the good news. With the stock priced for perfection amid slowing momentum, we believe investors may benefit from reducing exposure at these levels.

SELL – Westpac Banking Corporation (WBC)

Weaker consumer sentiment in an uncertain policy environment cloud the earnings outlook. Recent economic commentary highlights creeping pessimism among Australian consumers. Uncertainty around interest rate expectations creates a challenging setting for major banks to profitably grow credit. Westpac’s long term projections show acceptable returns. However, in our view, near term momentum appears constrained by operational adjustments, margin pressure and a more cautious economic tone. Given limited earnings catalysts on the horizon, we see better opportunities elsewhere.

Blake Halligan, Catapult Wealth

BUY RECOMMENDATIONS

BUY – HUB24 (HUB)

HUB24 operates an investment and superannuation platform. The company posted strong growth in the second quarter of fiscal year 2026. Record quarterly platform net inflows of $5.6 billion were up 2 per cent on the prior corresponding period and significantly higher than consensus forecasts. Excluding large migrations, platform net inflows were up 42 per cent. Quarterly and annual net inflows lifted the company’s market share in platform administration to 9.3 per cent as at September 30, 2025, up from 7.9 per cent in the prior corresponding period. Attracting increasing funds paints a bright outlook for profits moving forward. 

BUY – Ausbil Active Dividend Income Fund – Active ETF (DIVI)

The fund provides investors with exposure to an actively managed portfolio, mostly made up of listed Australian equities. The fund targets companies in sectors with the strongest earnings and upcoming earnings revisions. It has consistently paid monthly distributions for many years, averaging a yield of between 5 per cent and 6 per cent, with franking levels above 80 per cent. Even in times of economic uncertainty, investors should be able to rely on receiving regular franked dividends. DIVI has been enjoying favourable momentum, rising from $10.66 on November 21, 2025 to trade at $11.31 on January 29, 2026.

HOLD RECOMMENDATIONS

HOLD – BHP Group (BHP)

The global miner is benefiting from copper prices increasing more than 30 per cent in calendar year 2025. The company recently increased fiscal year 2026 copper production guidance, enabling it to capitalise on record copper prices. Demand for copper remains strong and a welcome tailwind for BHP.  The company should benefit further if it can keep wages, energy, infrastructure and other costs under control.

HOLD – Endeavour Group (EDV)

Endeavour operates liquor outlets, hotels and gaming facilities. The company expects earnings before interest and tax (EBIT) of between $555 million and $566 million before significant items of $45 million in the first half of fiscal year 2026. Preliminary unaudited retail EBIT of between $323 million and $328 million reflects margin pressure from discounting that lifted Dan Murphy’s and BWS sales by 0.7 per cent to $5.404 billion. Hotel sales rose 4.4 per cent to $1.2 billion. Despite hotel strength and softer earnings, we continue to hold EDV pending its March and April updates as the company offers defensive attributes and could rebound on signs of successfully executing its strategy under new chief executive Jayne Hrdlicka.

SELL RECOMMENDATIONS

SELL – ASX Limited (ASX)

On January 28, 2026, the Australian financial markets operator updated the market on fiscal year 2026 expense guidance. Previous guidance, excluding Australian Securities and Investments Commission (ASIC) inquiry costs, has been lifted from between 8 per cent and 11 per cent to between 13 per cent and 15 per cent. Including ASIC inquiry costs, total expense guidance has increased from between 14 per cent and 19 per cent to between 20 per cent and 23 per cent. Unaudited statutory net profit after tax of $263.6 million in the first half of 2026 was up 8.3 per cent on the prior corresponding period. Underlying return on equity of 13.5 per cent remains flat. ASIC’s interim report cited ASX operational and governance issues. The shares have been under pressure since the ASIC inquiry was announced in June, 2025. Until we know what ASIC’s final report contains, other stocks appeal more.   

SELL – Reece (REH)

The soft first quarter of fiscal year 2026 for this plumbing supplies company reflected subdued housing activity in Australia and the United States. Sales on a like-for-like basis increased just 2 per cent in Australia and New Zealand amid a low single digit decline in the US. Group EBITDA of $222 million was down 8 per cent year-on-year. The shares fell from $24.07 on January 30, 2025 to $10.22 on September 4. The shares were trading at $14.69 on January 29, 2026. The company was recently trading on a lofty price/earnings ratio above 28 times. Investors may want to consider locking in some gains, as the shares are exposed to a downwards rating, in our view.

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.