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 Michael Gable of Fairmont Equities, Toby Grimm of Baker Young, 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.
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Michael Gable, Fairmont Equities
BUY RECOMMENDATIONS
BUY – Betashares Global Energy Comp Currency Hedged ETF (FUEL)
I recommended this exchange traded fund as a buy in TheBull.com.au in mid February because I believed the energy sector was poised to move substantially higher. With the onset of the war in Iran after my recommendation, I’m now more convinced that energy prices will increase from here given supply disruptions. This ETF captures the largest global oil and gas companies. This ETF broke out of a multi-year trading range earlier this year, and any dip provides a buying opportunity, in my view.
BUY – Deep Yellow (DYL)
The uranium sector remains promising because demand should continue to outpace supply for the next few years. Although the uranium price has edged higher in the past several months, I’m expecting a much bigger move to occur soon when utilities return to contract for future supplies. This uranium developer, based in Namibia, appears cheap at these levels and it’s highly leveraged to any increase in the underlying uranium price.
HOLD RECOMMENDATIONS
HOLD – South32 (S32)
S32 is a diversified mining company. I expect base metals prices to continue trending higher this year to the benefit of S32. After a share price sell-down in February, the stock had mostly recovered by the end of March. I see a clear resistance zone around $4.80. Buyers are also stepping in on any dips. I’m confident S32 will rally strongly moving forward. The shares were trading at $3.935 on April 30.
HOLD – Iluka Resources (ILU)
ILU has traditionally been a producer of mineral sands. It’s expanding into rare earths and is expected to start processing material in 2027. The market is also starting to take notice, and positioning into this company. It mostly traded sideways between November 2025 and March 2026, with a major resistance level near $7. It broke above the resistance line in April, leaving buyers back in control. We expect the share price to move higher from here. The shares were trading at $8.07 on April 30.
SELL RECOMMENDATIONS
SELL – JB Hi-Fi (JBH)
With interest rates possibly rising again on top of higher fuel prices, we would be cautious about discretionary retail stocks. Households are under increasing pressure from higher cost of living expenses, which could result in consumers cutting discretionary spending. This consumer electronics giant faces the challenge of sustaining revenue and earnings in a potentially softer economy. From a charting perspective, the share price remains in a downtrend. The shares have fallen from $121 on August 20, 2025 to trade at $78.10 on April 30, 2026. We would be inclined to cash in some gains at this stage of the cycle.
SELL – Westpac Banking Corporation (WBC)
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We had previously been bullish on the banks when they were trending higher from high levels of momentum. However, they are stalling at current levels. A recent trading update by WBC indicated economic conditions could be getting tougher in response to rising interest rates, inflation and potential fuel shocks. In our view, challenging economic conditions are likely to impact lending activity and credit quality. Even a robust dividend yield may not be enough to prevent a further slide in WBC’s share price.
Toby Grimm, Baker Young
BUY RECOMMENDATIONS
BUY – Worley (WOR)
Worley is an engineering and construction group. It recently stepped back from underlying earnings before interest and tax growth due to delays on Middle East projects. However, we believe the longer term outlook remains supportive. Structural trends, such as de-globalisation of supply chains and increasing investment in energy efficiency, align closely with WOR’s core capabilities. Earnings volatility and missed expectations have weighed on sentiment. But the company is trading on an undemanding valuation relative to its medium term growth potential.
BUY – TPG Telecom (TPG)
Following several years of asset sales and restructuring, TPG has emerged as a more focused telecommunications provider with a stronger balance sheet and increasing exposure to the structurally attractive mobile segment, now contributing close to half of group revenue. Full year 2025 results highlighted accelerating subscriber growth and improving revenue per user, indicating positive operating momentum. The company’s strategic shift away from infrastructure ownership and lower-margin fixed line broadband positions it for higher quality earnings growth. The stock screens as relatively attractive compared to peers.
HOLD RECOMMENDATIONS
HOLD – Viva Energy Group (VEA)
Energy market dislocation highlights the strategic importance of Viva Energy’s refining operations, particularly in light of the recently enhanced Federal Government subsidy framework. While the recent fire at the Geelong facility is a setback, the financial impact appears manageable and unlikely to offset the benefit of elevated refining margins. Higher fuel prices may weigh on convenience retail performance, which had shown signs of a recovery. Over time, refining margins are expected to normalise, but the stock appears well supported in the near term.
HOLD – Aristocrat Leisure (ALL)
Aristocrat Leisure designs, develops and distributes gaming content, platforms and systems. The company has experienced a steep share price fall despite a solid underlying operational performance. Attention is likely to focus on promotional intensity and machine level margins in the upcoming interim result. Outside the early COVID-19 period, the stock was recently trading towards the lower end of its historical range. Supported by a modest dividend yield and ongoing buy-back capacity, we consider the current valuation reasonable and maintain a hold position.
SELL RECOMMENDATIONS
SELL – Dyno Nobel (DNL)
Strategic execution remains a persistent concern, in our view. Dyno Nobel’s recent decision to exit fertiliser production, amid finalising the sale of its Phosphate Hill asset at a recent time of elevated fertiliser prices, highlight ongoing timing challenges. According to our analysis, the divestment materially reduces earnings expectations and leaves the business more exposed to rising gas costs, which are likely to pressure margins within its explosives segment. Given these risks, we see more attractive opportunities elsewhere.
SELL – Monadelphous Group (MND)
Monadelphous has delivered a strong recent performance, supported by robust demand across mining and energy construction services. However, the business operates in a cyclical industry with structurally low margins, which historically have translated into elevated earnings volatility. Current market expectations appear optimistic regarding the scale and durability of recent growth. The company’s valuation offers limited downside protection against potential margin compression from cost inflation, or a moderation in demand. We would consider taking 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.
Tony Locantro, Alto Capital
BUY RECOMMENDATIONS
BUY – Algorae Pharmaceuticals (1AI)
This pharmaceutical company is focused on accelerating the identification and commercialisation of novel therapeutic opportunities. The company recently demonstrated independent validation of its AlgoraeOS platform through collaborations with leading research institutions, supporting the credibility of its technology and its ability to generate high quality drug combination candidates. A recent capital raise has strengthened the balance sheet and supports ongoing development. Early stage companies in this sector carry inherent clinical and regulatory risk. But the combination of platform validation, an emerging commercial strategy and leverage to successful outcomes positions Algorae as a speculative buy with re-rating potential as milestones are delivered.
BUY – NewPeak Metals (NPM)
This junior exploration company focuses on gold and critical minerals across Argentina and Australia. Recent activity highlights a strategic shift towards its flagship Las Openas gold project in Argentina. The company has consolidated ownership of key permits and is prioritising exploration efforts on this asset. Drilling was recently completed at the Tansey Gold project, with assays pending and representing a near term catalyst for the market. Also, NewPeak retains a strategic shareholding in Lakes Blue Energy NL (ASX: LKO), which has been partially monetised to strengthen the balance sheet, while retaining exposure to potential upside in the underlying gas assets. While the company remains early stage and capital sensitive, the combination of a tightening project focus, imminent assay results and additional asset backing supports a speculative buy stance.
HOLD RECOMMENDATIONS
HOLD – Red Metal (RDM)
This explorer offers exposure to copper, gold and rare earth elements across Australia. A key near term catalyst is the company’s proposed in-specie distribution of its shareholding in Maronan Metals, with eligible shareholders to receive one Maronan share for every 5.25 Red Metal shares held at the record date of May 14. This transaction is expected to unlock value by separating the two businesses and enabling the market to independently assess each asset. Also, upcoming column leach testing at the Sybella rare earths project near Mt Isa represents a further technical catalyst. While these developments are encouraging, the broader asset base remains exploration stage, supporting a hold position pending further validation.
HOLD – Kaiser Reef (KAU)
This Australian gold producer operates the Henty mine in Tasmania and is advancing the Maldon Gold Project in Victoria. The company recently reported quarterly gold production of 5534 ounces, with output impacted by lower-than-expected stoping grades at Henty. Management has implemented grade control improvements, with production expected to stabilise moving forward. Encouragingly, Kaiser has strengthened its balance sheet via increasing cash and reducing debt. Removing gold hedging leaves it fully exposed to a strong gold price environment. While well positioned, execution risk and production variability support a hold stance.
SELL RECOMMENDATIONS
SELL – Commonwealth Bank of Australia (CBA)
Australia’s largest retail bank enjoys a dominant position across mortgages, deposits and consumer banking. The company recently reported a record first half cash net profit after tax in 2026 of $5.445 billion, supported by lending growth and strong deposit volumes. Recently, the share price had re-rated significantly and traded at a premium to domestic peers and global banking counterparts. With much of the operational strength already reflected in the valuation, the risk-reward balance favours taking profits at current levels.
SELL – IGO Limited (IGO)
IGO is a diversified battery metals company with exposure to lithium, nickel and copper, including a strategic interest in the Greenbushes lithium operation. The company has benefited from strong investor interest in the energy transition theme, supported by long term demand expectations for battery materials. While IGO remains a high quality operator, the share price appears to reflect a recovery in underlying commodity prices. In our view, uncertainty in near term commodity prices amid earnings volatility are likely to persist. The risk-reward balance supports taking profits.
Featured Names – The Roundup
| Name | Recommendation | Firm |
|---|---|---|
| Betashares Global Energy Comp Currency Hedged ETF (FUEL) | Buy | Fairmont Equities |
| Deep Yellow (DYL) | Buy | Fairmont Equities |
| Worley (WOR) | Buy | Baker Young |
| TPG Telecom (TPG) | Buy | Baker Young |
| Algorae Pharmaceuticals (1AI) | Buy | Alto Capital |
| NewPeak Metals (NPM) | Buy | Alto Capital |
| South32 (S32) | Hold | Fairmont Equities |
| Iluka Resources (ILU) | Hold | Fairmont Equities |
| Viva Energy Group (VEA) | Hold | Baker Young |
| Aristocrat Leisure (ALL) | Hold | Baker Young |
| Red Metal (RDM) | Hold | Alto Capital |
| Kaiser Reef (KAU) | Hold | Alto Capital |
| Westpac Banking Corporation (WBC) | Sell | Fairmont Equities |
| JB Hi-Fi (JBH) | Sell | Fairmont Equities |
| Dyno Nobel (DNL) | Sell | Baker Young |
| Monadelphous Group (MND) | Sell | Baker Young |
| Commonwealth Bank of Australia (CBA) | Sell | Alto Capital |
| IGO Limited (IGO) | Sell | Alto Capital |
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.
