18 Share Tips – 31st 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 Peter Day of Sequoia Wealth Management, Philippe Bui of Medallion Financial Group and Arthur Garipoli of Seneca Financial Solutions 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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Peter Day, Sequoia Wealth Management

BUY RECOMMENDATIONS

BUY – Pinnacle Investment Management Group (PNI)

Pinnacle is a global multi-affiliate investment management firm. PNI has a highly diversified stable of affiliates, with net flows expected to materially accelerate in the near-term in response to strong contributions from affiliates. PNI posted a net profit after tax (NPAT) of $75.7 million in the first half of fiscal year 2025, up 151 per cent on the prior corresponding period. Performance fees earned by nine Pinnacle affiliates contributed $36.4 million after tax to Pinnacle’s NPAT. The interim dividend of 33 cents a share was up 112 per cent. The shares have been oversold in a volatile market, in our view. We hold an overweight rating.

BUY – Goodman Group (GMG)  

Goodman is an integrated industrial property group. The company’s shares have largely pulled back due to a recent $4.4 billion capital raising to fund its data centre strategy. Despite the near-term equity dilution from the capital raise, GMG’s earnings per share growth outlook remains attractive. It’s underpinned by its data centre pipeline, which will benefit from strong sector tailwinds that includes cloud migration and artificial intelligence. We expect GMG to fund future developments with recycled capital that includes existing liquidity, retained earnings and a modest amount of leverage.

HOLD RECOMMENDATIONS

HOLD – Sigma Healthcare (SIG)

This healthcare company recently announced its full year results for the year ending January 31, 2025, as a stand-alone business. The merger with Chemist Warehouse Group became effective on February 12, 2025. Sigma reported 2025 normalised earnings before interest and tax of $68 million, up 183.5 per cent on the prior corresponding period and at the upper end of the guidance range previously provided. Performance was driven by a new supply contract with Chemist Warehouse that started on July 1, 2024, and like-for-like wholesales sales growth of 8.5 per cent across Amcal and Discount Drug Store brands. Chemist Warehouse will now make up the vast majority of group earnings.

HOLD – Brambles (BXB)

The supply chain logistics giant returned to volume growth in the first half of fiscal year 2025. Free cash flow before dividends of $US429.2 million was up $US118.1 million on the prior corresponding period. Sales revenue from continuing operations was up 4 per cent at constant foreign exchange rates and profit after tax grew by 11 per cent. The company retained sales revenue growth guidance of between 4 per cent and 6 per cent at constant currency for the full year and underlying profit growth of between 8 per cent and 11 per cent. The company is conducting a significant share buy-back of up to $US500 million, which is also a benefit.

SELL RECOMMENDATIONS

SELL – National Australia Bank (NAB)

Group chief financial officer Nathan Goonan has resigned to take on the same role at competitor Westpac Bank. Goonan had only been in the CFO role at NAB since July 2023 and will leave later this year after meeting contractual obligations. Goonan’s resignation was mostly unexpected among other executive leadership changes. Investors can be apprehensive about executive leadership changes as it can lead to uncertainty about the company’s direction. In a first quarter 2025 trading update, cash earnings were 2 per cent lower compared with the 2024 quarterly average in the second half. We have downgraded NAB to underweight.

SELL – Helia Group (HLI)

Helia is a provider of lenders mortgage insurance. Helia’s share price was slashed by 25 per cent on March 24 after the company revealed it was at risk of losing a supply and service contract with Commonwealth Bank of Australia when it expired on December 31, 2025. The contract represented about 44 per cent of gross written premium in full year 2024. Helia informed that CBA had entered into exclusive negotiations with an alternative provider. The company’s statutory net profit after tax of $231.5 million in full year 2024 was down 16 per cent on the prior corresponding period. We have downgraded HLI to underperform.

Philippe Bui, Medallion Financial Group

BUY RECOMMENDATIONS

BUY – GQG Partners (GQG)

GQG is an investment management firm. Funds under management net inflows have returned to positive territory, and the company continues to grow its quarterly dividend. GQG manages about $A250 billion, which is mostly exposed to global markets. Earnings per share growth has been steady in the past few years. Recently, trading on a price/earnings ratio of about 9 times and an appealing dividend yield, we’re comfortable buying this position for clients.

BUY – Unico Silver (USL)

This silver development company’s flagship Cerro Leon project is in the Santa Cruz province of Argentina. Both the gold and silver markets have been well supported in the past six-to-12 months. Given uncertainty surrounding interest rates, policy and geopolitics across the globe, we see upside in both commodities. Unico Silver stands out among the ASX listed silver options. It acquired high quality assets when the silver price was much lower and Unico has plenty of cash on its balance sheet. Recently, the share price has been enjoying favourable momentum.

HOLD RECOMMENDATIONS

HOLD – CSL (CSL)

The share price of this biotechnology giant was significantly below its 12-month highs on March 27. Although recent interim 2025 earnings results in February were marginally below consensus, the business still has a solid growth profile in the years ahead. The main drag on the interim result was the vaccines business experiencing a decline in influenza sales. Should flu sales normalise, the company should return to double digit growth in fiscal year 2026.

HOLD – Alcidion Group (ALC)

The company offers software products and technical services to the global healthcare market. It announced its biggest contract to date in February. With a total contract value of $37.5 million over 10 years, it will be pivotal for the company to continue producing contract wins on the back of this momentum. The company has guided for a positive EBITDA and cash flow result for full year 2025. The company had a cash balance of $7.7 million and no debt at December 31, 2024. ALC was recently trading on an undemanding revenue multiple, so we still see substantial upside for this exciting small market capitalisation technology play.

SELL RECOMMENDATIONS

SELL – Silex Systems (SLX)

SLX, in conjunction with Global Laser Enrichment, is advancing its Silex uranium enrichment technology. Speculation exists about the technology’s commercial potential. The company has consistently raised capital in the past. It reported a net loss from ordinary activities of $18.059 million for the six months to December 2024. We like the outlook for uranium, but prefer exposure to uranium miners.

SELL – Wesfarmers (WES)

The industrial conglomerate has come off its highs, but was recently trading on an elevated price/earnings ratio of about 31 times that’s above long term averages. The stock seems priced for strong growth figures. Recent half year results in fiscal year 2025 were solid, but most metrics came in at low single digits. Although it’s a defensive position, with a recent dividend yield below 3 per cent, we see much more attractive options elsewhere.

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Arthur Garipoli, Seneca Financial Solutions

BUY RECOMMENDATIONS

BUY – Antipa Minerals (AZY)

The company has a strategically significant 2.3 million gold resource at its flagship Minyari Dome project. The resource is located only 35 kilometres north of Greatland Gold’s under-utilised Telfer gold-copper processing plant in Western Australia’s highly prospective Paterson Province, a tier 1 jurisdiction in the East Pilbara. With an established gold resource, Antipa offers robust economics and substantial exploration upside, presenting a clear pathway to production, or it may become a takeover target. Its proximity to the Telfer mill positions Antipa as the most logical acquisition target for Greatland Gold, which needs to secure long term ore feed for its under-utilised processing capacity. In our view, Antipa Minerals presents an appealing investment opportunity with near term re-rating potential.

BUY – Botanix Pharmaceuticals (BOT) 

This clinical dermatology company has shipped its Sofdra topical gel to first patients, a prescription medicine used to treat axillary hyperhidrosis (excessive underarm sweating). Sofdra has been approved by the US Food and Drug Administration. The company has embarked on a commercial launch of Sofdra with an experienced US based team. The company recently announced the product launch has so far proven to be successful. The huge target market provides Botanix with a potentially big sales opportunity going forward.

HOLD RECOMMENDATIONS

HOLD – Santos (STO)

This big market capitalisation oil and gas producer was sold down on marginally weaker than expected net profit after tax in full year 2024 and negative sentiment towards oil and gas stocks. The company offers an attractive production growth outlook, a superior cash flow profile and disciplined approach to capital allocation, with a view to maximising shareholder returns. With its two major projects, Barossa LNG and Pikka Phase 1 Oil in Alaska, largely de-risked and nearing completion, the company is on the cusp of generating free cash flows from late 2025, which should increase shareholder returns.

HOLD – Develop Global (DVP)

This explorer develops mineral resources. It’s also involved in underground mining services. Managing director Bill Beament has an enviable track record of turning minnow mining companies into successful large market capitalisation stocks, such as Northern Star Resources. DVP recently announced that re-commissioning of the Woodlawn zinc-copper mine is on budget and on schedule for production and cash flow in the June quarter. If Woodlawn can deliver operationally, it will enable the company to fund the development of its Sulphur Springs project in the Pilbara, or fund other acquisitions.

SELL RECOMMENDATIONS

SELL – Computershare (CPU)

This share registry services provider recently reported strong first half results in fiscal year 2025. The company delivered a profit after tax from continuing operations of $286.5 million, an increase of 24.9 per cent on the prior corresponding period. It also upgraded full year guidance. CPU has been a beneficiary of higher interest rates, which we believe have peaked. The stock has re-rated too quickly and is trading on lofty multiples, in our view. It may be time to consider locking in a profit.

SELL – Domain Holdings Australia (DHG)

Domain operates an online real estate platform in Australia. CoStar Group, a US listed company and online provider of real estate marketplaces, lodged a non-binding indicative proposal for Domain Holdings Australia at $4.20 a share in cash on February 21. The shares soared on the proposal. On March 27, Domain announced it had received an improved proposal from CoStar at $4.43 a share. Domain will engage with CoStar to facilitate due diligence. Domain shares fell 22 cents on March 27 to finish at $4.25. Domain announced there was no guarantee a binding agreement would be reached and no certainty that the improved proposal would result in a transaction. Much is still to play out, so investors may want to consider taking a profit now and invest the proceeds in other opportunities.

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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.