18 Share Tips – 9th June 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 Jed Richards of Shaw and Partners, Damien Nguyen of Morgans and Michael Gable of Fairmont Equities 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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Jed Richards, Shaw and Partners

BUY RECOMMENDATIONS

BUY – Amcor PLC (AMC) 

This packaging giant generated solid earnings and showed resilience across global markets in its latest results ending March 31, 2025. A recent dividend yield above 5 per cent, supported by consistent quarterly payouts, is appealing. Demand for Amcor’s packaging solutions remains robust in response to growing online shopping across the globe. Consequently, it reinforces long term growth potential, in our view.

BUY – Metcash (MTS) 

This stock appeals to income focused investors as it was recently offering a dividend yield of around 5 per cent at a time when interest rates on bank deposits are falling. Often overshadowed by Woolworths and Coles, Metcash delivers a steady performance in food, liquor and hardware distribution. Its defensive business model make it a reliable, undervalued option in Australia’s retail sector.

HOLD RECOMMENDATIONS

HOLD – Telstra Group (TLS) 

Strong cashflows from NBN infrastructure and rising mobile data consumption support earnings growth. EBITDA of $4.2 billion in the first half of fiscal year 2025 was up 6 per cent on the prior corresponding period and net profit after tax of $1.1 billion grew 7.1 per cent. The fully franked interim dividend of 9.5 cents a share was up 5.6 per cent. Its Connected Future strategy and consistent dividend increases enhances appeal. Telstra’s defensive profile suits income investors seeking stability and moderate capital growth after the shares have risen from $4.06 on March 17 to trade at $4.87 on June 5.

HOLD – Woodside Energy Group (WDS) 

In late May, the Federal Government made a proposed decision to grant environmental approval for the North West Shelf project extension. WDS shares responded positively to news of preliminary approval. Revenue of $3.315 billion in the first quarter of fiscal year 2025 was up 13 per cent on the prior corresponding period. Growth is supported by major project progress and rising global energy demand. As economic activity strengthens across the globe, energy consumption is rebounding. Holding WDS offers long term exposure to LNG and oil markets with upside potential. Woodside’s shares have risen from $19.15 on April 9 to trade at $22.63 on June 5.

SELL RECOMMENDATIONS

SELL – QBE Insurance Group (QBE) 

The insurance giant posted strong gross written premium growth in the first quarter of fiscal year 2025, up 8 per cent on the prior corresponding period at constant currency. It expects gross written premium growth in the mid-single digits at constant currency for the full year. The shares have risen from $19.32 on April 7 to trade at $23.55 on June 5. In our view, the stock is trading near the top of its recent range. We see limited upside, so locking in gains now could be a prudent move.

SELL – Sandfire Resources (SFR) 

This copper producer operates in Australia, Spain and Botswana. The shares have risen from $3.34 on October 17, 2022, to trade at $11.72 on June 5, 2025. In our view, the strong performance has been driven by strong copper sentiment. However, the market may be overestimating future demand. Valuations appear stretched, and locking in profits could be prudent before momentum slows or macroeconomic risks possibly weigh on commodity prices. We have been selling Sandfire and switching to BHP to retain copper exposure amid gaining diversification to other commodities.

Damien Nguyen, Morgans

BUY RECOMMENDATIONS

BUY – Pinnacle Investment Management Group (PNI) 

PNI offers leveraged exposure to increasing growing demand for active funds management through its unique multi-affiliate model. The company holds stakes in a range of high performing boutique managers, providing diversified and scalable earnings. Strong recent fund inflows amid a consistent investment performance are driving growth in funds under management. Investors can buy at a reasonable price for a stock offering a bright outlook.

BUY – Generation Development Group (GDG) 

GDG operates in Australia’s wealth management sector, particularly through its subsidiary Generation Life, which is a market leader in investment bonds in terms of inflows. Investment bonds offer compelling tax benefits and, after superannuation, are considered the next best option for minimising tax. The potential introduction of higher tax rates on superannuation balances above $3 million could lead to a further increase in demand for investment bonds issued by Generation Life, which, in turn, may lead to further upside for GDG’s share price.

HOLD RECOMMENDATIONS

HOLD – REA Group (REA) 

REA Group remains a market leader in online property advertising with a strong brand, high-margin business model and valuable network effects. Its strategic investments and international expansion, particularly in India, support long term growth prospects. However, recent developments introduce caution. The Australian Competition and Consumer Commission is investigating REA over subscription offerings. Also, the planned transition to a new chief executive introduces a degree of leadership uncertainty. While REA remains a high quality business, these headwinds justify a hold recommendation for now.

HOLD – Life360 (360) 

This information technology company provides a mobile networking safety app for families. Life360 has demonstrated impressive growth and reported a strong March 2025 update, showing increasing penetration across its key markets and continuing success in converting members to its subscription based offering. The company has further solidified its position in the family tracking and location sharing market. However, Life360’s current valuation appears to reflect much of its anticipated growth, which suggests limited immediate upside potential. While Life360’s long term prospects remain promising, potential investors may want to consider waiting for possibly a more favourable entry point.

SELL RECOMMENDATIONS

SELL – Qantas Airways (QAN) 

Qantas has rebounded strongly since the pandemic, but several factors suggest it might be time for investors to consider selling stock. The airline faces challenges, such as increasing competition, volatile fuel costs and potentially softer international travel demand. Market sentiment is shifting and strategic moves, such as past share buybacks, could influence liquidity and long term growth potential. While Qantas remains a leader in the aviation industry, investors may find better opportunities elsewhere if current valuations don’t align with future earnings potential.

SELL – Commonwealth Bank of Australia (CBA) 

CBA has delivered strong share price returns for its loyal shareholders, but it’s trading at a significant premium to its peers in Australia and across the globe. Shifting economic conditions, including potential interest rate cuts, could impact profitability. We’re concerned the bank’s high valuation leaves little room for disappointment, and could make it vulnerable to market corrections. For investors who have enjoyed strong returns, now may be a good time to lock in gains and reduce exposure.

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Michael Gable, Fairmont Equities

BUY RECOMMENDATIONS

BUY – Betashares Global Uranium ETF (URNM)

URNM provides exposure to a portfolio of mining, exploration and development companies in the global uranium industry. I’m positive about the outlook for uranium miners due to increasing demand for uranium expected to exceed supply during the next few years. This ETF has risen from $5.99 on April 22 to trade at $8.14 on June 5. It broke out of a corrective decline on strong volumes, and I expect the stock to move higher from here.

BUY – Lynas Rare Earths (LYC)

This rare earths miner should continue to outperform as the US looks to diversify its supply of these metals away from China. LYC is the largest producer of rare earths outside of China and is already negotiating deals with the US Government to secure supply. The shares have risen from $6.53 on January 2 to trade at $9.16 on June 5. From a charting perspective, I expect LYC to ultimately re-test the highs of $11.09 on January 10, 2022.

HOLD RECOMMENDATIONS

HOLD – BHP Group (BHP)

This global diversified miner delivered record iron ore and copper production for the nine months ending March 31, 2025. Total copper production increased 10 per cent to 1.5 million tonnes. Iron ore production of 193 million tonnes was up 1 per cent. From a charting perspective, I believe BHP shares are set to recover. The shares fell from $41.26 on February 22 to close at $34.16 on April 9. The shares were trading at $38.21 on June 5. We believe a recovering share price will be supported by improving copper prices and a falling US dollar.

HOLD – South32 (S32)

This global diversified mining and metals company produces copper, aluminium, silver, lead, zinc and nickel. It has operations in Australia, southern Africa and South America. South32, like other resource stocks, benefits from a falling US dollar, which I expect will continue to weaken. The company increased copper and aluminium production during fiscal year 2025 to the end of the March quarter. It also improved its net cash position to $US252 million. From a charting perspective, S32 appeared to form a low after the recent sharemarket sell-off before the latest uptrend has emerged. Renewed stimulus in China should also benefit S32.

SELL RECOMMENDATIONS

SELL – Orora (ORA)

The share price of this packaging giant has been in a downtrend for the past three years. The shares have fallen $3.61 on June 13, 2022, to trade at $1.882 on June 5, 2025. Earnings guidance had previously been downgraded due to volatile sales and higher costs. Now, there’s further earnings uncertainty due to potential tariffs with the US. Broker targets are lower, and we believe this will add further selling pressure to the stock.

SELL – OFX Group (OFX)

OFX is a global provider of international payments and foreign exchange services. Its recent fiscal year 2025 result was disappointing, with earnings lower than what the market expected. Underlying net profit after tax of $27.7 million was down 18.2 per cent on the prior corresponding period. Net operating income (NOI) of $214.9 million was down 5.5 per cent. The company didn’t provide NOI guidance in fiscal year 2026 in light of global economic uncertainty. It expects underlying EBITDA margins to be lower in fiscal years 2026 and 2027. The shares have fallen from $1.31 on May 19 to trade at 69.2 cents on June 5. I can’t identify a catalyst at this point that will lead to a share price recovery – at least in the short term.

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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.