18 Share Tips – 10th 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 Toby Grimm of Baker Young, John Athanasiou of Red Leaf Securities and Angus Geddes of Fat Prophets 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.

Toby Grimm, Baker Young

BUY RECOMMENDATIONS

BUY – IDP Education (IEL)

The shares recently hit five-year lows on the back of first half results in fiscal year 2025. Revenue of $475.4 million was down 16 per cent on the prior corresponding period, driven by a decline in student placement and English language testing volumes. However, we’re encouraged by the company’s operational performance in difficult conditions, sustaining growth and profitability ahead of its peers. We see long term value and quality in this global leader and suggest investors consider accumulating the stock around current levels.

BUY – Guzman Y Gomez (GYG)

GYG is a Mexican themed restaurant chain. The company had 239 restaurants operating in Australia, Singapore, Japan and the US at December 31, 2024. The steep decline in the company’s share price following its recent interim results is an over-reaction to modestly weaker than expected underlying earnings reported for the period. Critically, GYG delivered better than expected sales growth, which continued into the second half, vindicating its decision to invest in competitive pricing. The shares have fallen from $45.32 on February 19 to trade at $33.77 on March 6.

HOLD RECOMMENDATIONS

HOLD – SiteMinder (SDR)

The hotel software developer disappointed investors with a modest miss on first half revenues in fiscal year 2025, subsequently prompting a steep decline in its share price. However, we believe the company is impressively managing costs while continuing the rollout of new products, which underpins long term growth.

HOLD – Ramsay Health Care (RHC)

The outlook for Australia’s largest private hospital operator appears more effective and optimistic. Alongside better than expected interim results in fiscal year 2025, Ramsay also indicated that it’s investigating a potential sale of its troubled European arm Ramsay Sante. Should a transaction occur, it may facilitate balance sheet repair, buy-backs and provide funding for much needed technological investment.

SELL RECOMMENDATIONS

SELL – Computershare (CPU)

This corporate services provider delivered another stellar first half result in fiscal year 2025. It resulted in the shares surging to all-time highs in February. 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. The company declared an interim dividend of 45 cents a share, up 12.5 per cent. Elevated short-term interest rates have proven a boon for profitability, but we don’t regard them as a core strength or growth area for the company. Given the stock is trading well above our $30 valuation, we suggest investors consider taking a profit. CPU shares were trading at $40.96 on March 6.

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, recently lodged a takeover bid for Domain Holdings Australia at $4.20 a share in cash. Media giant Nine Entertainment Co Holdings is the controlling shareholder in Domain. Shares in DHG soared on the bid to trade at $4.34 on March 6. The Domain board is considering the proposal. We feel the premium on offer for Domain on March 6 represents full value, and we would look to re-allocate proceeds into other opportunities created during the recent sharemarket retreat.

John Athanasiou, Red Leaf Securities

BUY RECOMMENDATIONS

BUY – REA Group (REA)

This online multinational digital advertising business specialises in property. A buying opportunity exists after REA shares were recently sold off following CoStar Group’s unexpected takeover proposal for competitor Domain Holdings Australia. REA recently delivered strong first half year results in fiscal year 2025 that exceeded expectations. As the dominant player in Australian real estate classifieds, REA boasts a premium product suite and a data driven platform that sets it apart from competitors. CoStar’s potential entry introduces new competition. But, in our view, it’s unlikely to have a significant impact given REA’s scale and entrenched market presence.

BUY – WT Financial Group (WTL)

The company operates a financial adviser network. In our view, the group presents a compelling investment case, backed by strong financial growth, an attractive valuation and a focus on shareholder returns. Underlying first half revenue and other income of $106.4 million in fiscal year 2025 was up 33.7 per cent on the prior corresponding period. Underlying net profit before tax of $2.59 million was up 43.3 per cent, highlighting operational strength. Despite a strong share price performance in the past year, WTL remains undervalued, in our view. Recently trading on an undemanding price/earnings ratio make WTL an appealing entry point. Continued expansion, robust financials and dividends leave WTL as a promising growth and income investment in the financial services sector. The shares were trading at 12.5 cents on March 6.

HOLD RECOMMENDATIONS

HOLD – BHP Group (BHP)

This global miner remains a hold due to its high quality assets, solid balance sheet and a fully franked dividend yield of about 4 per cent. It’s widely regarded as the most popular choice among large resource stocks, benefiting from diversified exposure across iron ore, coal, copper and other commodities. However, near-term uncertainty surrounding iron ore prices and weakening demand from China poses risk. While BHP is a well-managed company with an enviable cost position, the lack of immediate catalysts leave it as a hold rather than a buy or sell at current levels.

HOLD – IDP Education (IEL)

The company provides international student placements. It co-owns the world’s most popular English language tests. IDP Education’s share price took a sharp hit after reporting a disappointing first half result in fiscal year 2025. Revenue of $475.4 million was down 16 per cent on the prior corresponding period, driven by a decline in student placement and English language testing volumes. Restrictions on student and other migrant visas across key markets impacted the result.  Despite near-term headwinds, IEL’s long term fundamentals remain strong, underpinned by structural growth drivers in international education. The company has a clear strategy and disciplined investment approach, which positions it for a long term recovery. If regulatory pressures ease and demand rebounds, IEL could regain momentum, making it a reasonable hold for investors with a long-term outlook.

SELL RECOMMENDATIONS

SELL – AMP (AMP)

The share price of this diversified financial services company plunged recently after posting disappointing fiscal year 2024 results. Statutory net profit after tax of $150 million fell by 43.4 per cent on the prior corresponding period. Total revenue of $1.252 billion was down 1.1 per cent. Also, the company cut its final dividend from 2 cents last year to 1 cent this year, making it less appealing to income investors. Although AMP is repositioning itself as a retirement specialist and digital bank, the business faces ongoing restructuring challenges and rising costs. Given weaker profitability and reduced yield appeal, downside risks outweigh potential upside, in our view.

SELL – Corporate Travel Management (CTD)

CTD provides business travel management services. Statutory net profit of $29.2 million for the six months ending on December 31, 2024, was down 42 per cent on the prior corresponding period. Revenue and other income of $342.8 million fell 6 per cent. In our view, a key risk is the rapid advancement of artificial intelligence (AI). While CTD plans to use AI to reduce costs, AI-driven solutions across the technology sector could reduce customer reliance on human services provided by CTD. The share price has fallen from $17.66 on February 21 to trade at $15.85 on March 6.

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

Angus Geddes, Fat Prophets

BUY RECOMMENDATIONS

BUY – BHP Group (BHP)  

BHP’s first half results in fiscal year 2025 reflect cyclical pressures, but the underlying business remains strong. Iron ore prices have held up despite market concerns, and the company’s copper earnings have increased. The company’s aggressive expansion in copper and potash, amid cost discipline, provides a solid foundation for long term growth. BHP’s cash flows and balance sheet support its strategic investments. With a valuation reflecting subdued commodity sentiment, we see a low hurdle for upside from current levels.

BUY – QBE Insurance Group (QBE)

The insurance giant posted a better-than-expected set of fiscal year 2024 numbers, supported by premium growth, higher investment returns and favourable catastrophe expenses. Shareholders were rewarded with a final dividend increase to 63 cents a share. The company’s valuation remains attractive when compared to its peers. We see scope for the North American crop segment to normalise, providing earnings support.

HOLD RECOMMENDATIONS

HOLD – HUB24 (HUB)

First half group total revenue from ordinary activities of $195.2 million in fiscal year 2025 was up 25 per cent on the prior corresponding period. Underlying EBITDA of $77.6 million was up 41 per cent. The company’s platform FUA (funds under administration) target has been upgraded to range between $123 billion and $135 billion in fiscal year 2026. HUB24 enjoyed record inflows and continues to take market share in an attractive market. However, elevated valuation multiples means the company must continue to execute superbly.

HOLD – Amcor PLC (AMC)

The packaging giant is successfully executing its strategy amid headwinds, with positive sequential volume trends and improving margins offsetting a 1 per cent fall in net sales for the six months ending December 31, 2024, when compared to the prior corresponding period. The Berry Global Group merger is looming as the primary catalyst. Given the current risk profile, Amcor appears fairly valued at present levels, supporting a hold rating until clearer signs of merger synergies and sustained revenue growth emerge.

SELL RECOMMENDATIONS

SELL – Spark New Zealand (SPK) 

Total net profit of $NZ35 million in the first half of fiscal year 2025 was down 77.7 per cent on the prior corresponding period. This telecommunications and digital services company reduced EBITDAI guidance for fiscal year 2025. The shares were punished following the result, with some market experts reducing their price targets. The New Zealand economy continues to struggle, posing an additional headwind in an already relatively small market. We see some risk going forward about whether the current dividend amount is sustainable.

SELL – Lovisa Holdings (LOV) 

This global fashion jewellery and accessories retailer has a solid track record of growth, but keeping investors satisfied appears challenging amid an increasingly crowded market. First half net profit after tax of $56.9 million in fiscal year 2025 was up 6.5 per cent on the prior corresponding period. However, comparable store sales were up just 0.1 per cent. Operating cost headwinds are challenging, and many consumers are struggling in difficult times. The shares have fallen from $30.52 on February 19 to trade at $26.395 on March 6. We find it difficult to justify the company’s elevated valuation.

Related Articles:

• A Guide to Day Trading ASX Shares
• A Beginner’s Guide to CFD Trading in Australia
• The Best CFD Trading Platform in Australia
• Commodities Trading – A Beginners Guide

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.