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 John Athanasiou of Red Leaf Securities, Philippe Bui of Medallion Financial Group, and Dylan Evans 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.
John Athanasiou, Red Leaf Securities
BUY RECOMMENDATIONS
BUY – BHP Group (BHP)
Iron ore sales continue to drive earnings, but the key long term story is copper, where demand is structurally supported by electrification, grid investment and artificial intelligence related infrastructure. Consequently, it gradually shifts BHP from a traditional cyclical miner towards a more diversified industrial metals compounder. Cash generation remains strong, supporting consistent dividends and capital management. The balance sheet is conservative, allowing flexibility through the cycle. While iron ore is still exposed to Chinese demand volatility, BHP’s scale and low cost positioning provide downside protection.
BUY – Aristocrat Leisure (ALL)
The business is transitioning from a traditional gaming supplier into a global digital entertainment platform, with its social gaming division driving much of the growth momentum. This improves margins, lifts earnings visibility and reduces cycles over time. Land-based gaming remains a stable cash generator, supporting re-investment and shareholder returns. Management execution has been consistently strong, with disciplined capital allocation and successful integration of acquisitions. The stock trades at a premium valuation, but, in our view, it’s justified by return on equity, offshore growth exposure and a structural earnings upgrade story that continues to play out.
HOLD RECOMMENDATIONS
HOLD – Commonwealth Bank of Australia (CBA)
CBA remains the highest quality franchise in Australian banking, supported by its dominant deposit base, strong digital ecosystem and industry leading profitability. Earnings remain resilient, but growth is moderating as mortgage competition intensifies and credit expansion normalises. Credit quality is stable and dividends remain highly reliable, reinforcing its defensive appeal. However, the key issue is valuation, with the stock trading at a significant premium to domestic and global peers. Much of the quality and stability is already priced in, leaving limited upside without a material macro or earnings surprise to the upside.
HOLD – Wesfarmers (WES)
The industrial conglomerate’s performance is supported by a diversified portfolio across retail, industrials and chemicals. The group’s strength lies in disciplined capital allocation and its ability to generate steady returns across cycles. However, in our view, near term growth is likely to remain subdued as consumer spending normalises and retail conditions become more selective. Hardware giant Bunnings continues to provide earnings stability. The stock’s valuation appropriately reflects its quality profile, leaving limited re-rating potential in the absence of a stronger macro tailwind. Wesfarmers remains a reliable long term holding, but it’s best viewed as a steady compounder rather than a growth catalyst.
SELL RECOMMENDATIONS
SELL – Brambles (BXB)
This supply chain logistics giant has moved from a premium defensive compounder to a more challenged operational story following recent earnings and sales revenue downgrades. Disruptions in its United States pallet pooling network have exposed execution issues, resulting in higher costs. While the CHEP business model remains structurally sound, short term performance is weighed down by operational inefficiencies and inflationary pressures. The downgrade cycle has shifted sentiment, with the market now questioning the sustainability of mid term growth expectations. Until execution stabilises and margins recover, Brambles lacks the earnings momentum required to justify a premium multiple, leaving risk skewed to the downside, in our view. The shares have fallen from $22.10 on May 15 to trade at $16.34 on May 28.
SELL – Elders (ELD)
The company’s exposure to agriculture, livestock and rural services make it highly sensitive to seasonal and commodity-driven swings. While expansion through acquisitions has supported scale, it has also increased leverage, which, in our view, reduces balance sheet flexibility. Without a clear cyclical upswing, the outlook remains challenging. Elders is exposed to elevated diesel prices, which remains a risk to the company’s cost base. In our opinion, the stock offers limited defensive characteristics, making it more suitable as a sell than a hold at this stage of the cycle. The shares have fallen from $7.20 on May 15 to trade at $5.58 on May 28.
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Philippe Bui, Medallion Financial Group
BUY RECOMMENDATIONS
BUY – Unico Silver (USL)
This silver explorer is advancing high grade deposits in Argentina’s Santa Cruz province. The Joaquin project recently delivered a 143 per cent resource increase to 167 million ounces of silver equivalent since acquiring it in October 2024. The latest update was achieved from just 27,723 metres of drilling at a discovery cost of US11 cents per ounce. Silver demand is structurally supported by solar, electrification and green technology, giving USL direct leverage to a rising commodity. With the resource growing rapidly and development progressing, the investment case is building.
BUY – Saluda Medical, Inc. (SLD)
Saluda makes the Evoke spinal cord stimulator — the only closed loop device that automatically adjusts pain therapy in real time. Clinical results are strong, with 90 per cent of patients preferring it to traditional systems. Global revenue grew by 34 per cent in the third quarter of fiscal year 2026 when compared to the prior corresponding period. Full year guidance has been upgraded twice since its initial public offering in calendar year 2025. Given the share price fall since listing in December 2025, the valuation is compelling at current levels, in our view. With no closed loop offering from competitors, acquisition interest is a real possibility.
HOLD RECOMMENDATIONS
HOLD – Arafura Rare Earths (ARU)
The rare earths company is developing the Nolans Project in the Northern Territory — Australia’s first fully integrated ore-to-oxide NdPr (Neodymium-Praseodymium) operation, producing the critical input for electric vehicle motors and wind turbines. With China controlling about 85 per cent of global processing and restricting exports, projects like Nolans are rare and strategically valuable. The company just reached its final investment decision and recently received commitments under an institutional placement to raise $350 million.
HOLD – Megaport (MP1)
MP1 is a leading global network-as-a-service provider, connecting enterprises to cloud providers and data centres. Artificial intelligence-driven data centre investment is a direct tailwind, and this business is capturing it. Revenue quality is improving, margins are expanding and existing customers are spending more. Wholly owned subsidiary Latitude.sh secured three major contracts in May, representing a meaningful step forward in recurring revenue. At current prices, in line with historic valuation averages, emerging upside doesn’t appear fully priced in.
SELL RECOMMENDATIONS
SELL – Commonwealth Bank of Australia (CBA)
Australia’s largest bank carries a premium valuation. Slowing credit growth, sticky inflation and proposed property tax changes are headwinds for this mortgage heavy business. Sentiment took a material hit recently when the stock posted its largest single-day decline of about 10 per cent since listing in 1991 following a disappointing trading update. Earnings momentum is fading and the valuation is still trading at a significant premium to peers.
*Please note CBA is recommended as a sell and a hold this week as market experts take different views about its outlook.
SELL – Wesfarmers (WES)
Wesfarmers is a diversified industrial conglomerate. Major retail brands include Bunnings, Kmart, Target and Officeworks. Wesfarmers is a high quality business, but the outlook is softening, in our view. A deteriorating consumer environment and sticky inflation are pressuring forward earnings, while Amazon’s growing penetration across core retail categories is an intensifying competitive threat that shows no signs of abating.
*Please note WES is recommended as a sell and a hold this week as market experts take different views about its outlook.
Dylan Evans, Catapult Wealth
BUY RECOMMENDATIONS
BUY – Transurban Group (TCL)
TCL operates toll roads in Australia and the United States. It generates reliable inflation linked cash flows, underpinning a relatively defensive stock. The shares are sensitive to rising interest rates, partially due to its significant debt, which, in our view, has weighed on the stock in the past few years. During the same time, Transurban has been growing traffic volumes and has been involved in completing several significant projects, including the West Gate Tunnel in Melbourne. Any easing in inflation and interest rates would boost the company’s performance. In the meantime, Transurban offers an attractive dividend yield, reliable earnings and a development pipeline with long term growth potential.
BUY – Origin Energy (ORG)
Origin is a key player in Australia’s energy supply chain. Broader energy supply disruptions caused by the conflict in Iran are likely to be a net positive for Origin. The company’s gas will become more appealing to Asian consumers when compared to Middle Eastern competitors. Electricity sales volumes in the March quarter were up 4 per cent on the prior quarter. Longer term, Origin is positioned to benefit from electrification and its energy security.
HOLD RECOMMENDATIONS
HOLD – PLS Group (PLS)
PLS is an Australian lithium producer, with its primary operation in Western Australia. PLS has a solid balance sheet. Revenue of $624 million in the first half of 2026 was up 47 per cent on the prior corresponding period. Driving growth is a combination of increasing demand for lithium and near term supply constraints. Demand is fuelled by growing battery and electric vehicle adoption, which has been boosted by the conflict in Iran and crude oil disruptions. The strong balance sheet and free cash flow should enable PLS to fund its expansion plans.
HOLD – Sonic Healthcare (SHL)
Sonic is a leading global provider of clinical laboratory services, including pathology and radiology. The company increased revenue by 17 per cent in the first half of 2026 when compared to the prior corresponding period. Net profit after tax was up 10 per cent. The company is on track to achieve full year EBITDA guidance of between $1.87 billion to $1.95 billion on a constant currency basis. If positive momentum continues, Sonic looks like a solid value play. Sonic was recently trading on a modest price/earnings multiple of about 17 times and a partially franked dividend yield of about 5.7 per cent. An ageing population underpins demand for laboratory services, so SHL should be able to grow at high double digits over the long term.
SELL RECOMMENDATIONS
SELL – National Australia Bank (NAB)
The bank’s first half result in fiscal year 2026 was underwhelming, in our view. Investment loans account for about a third of residential lending. Proposed changes to negative gearing and capital gains tax are likely to reduce loan and property price growth, in our view. Given higher interest rates and affordability pressures, NAB may struggle to deliver the growth needed to support current expectations.
SELL – The a2 Milk Company (A2M)
This infant milk formula company recently initiated a voluntary recall of three small batches of contaminated product sold only in the United States. While the recall didn’t impact the key Chinese market, it poses a reputational risk in a country and segment that is sensitive to brand reputation. A recent trading update revealed supply chain disruptions are constraining product availability despite strong underlying demand. The shares have remained under pressure since April when the company downgraded guidance in full year 2026.
Featured Names – The Roundup
| Name | Recommendation | Firm |
|---|---|---|
| BHP Group (BHP) | Buy | Red Leaf Securities |
| Aristocrat Leisure (ALL) | Buy | Red Leaf Securities |
| Unico Silver (USL) | Buy | Medallion Financial Group |
| Saluda Medical, Inc. (SLD) | Buy | Medallion Financial Group |
| Transurban Group (TCL) | Buy | Catapult Wealth |
| Origin Energy (ORG) | Buy | Catapult Wealth |
| Commonwealth Bank of Australia (CBA) | Hold, Sell | Red Leaf Securities, Medallion Financial Group |
| Wesfarmers (WES) | Hold, Sell | Red Leaf Securities, Medallion Financial Group |
| Arafura Rare Earths (ARU) | Hold | Medallion Financial Group |
| Megaport (MP1) | Hold | Medallion Financial Group |
| PLS Group (PLS) | Hold | Catapult Wealth |
| Sonic Healthcare (SHL) | Hold | Catapult Wealth |
| Brambles (BXB) | Sell | Red Leaf Securities |
| Elders (ELD) | Sell | Red Leaf Securities |
| National Australia Bank (NAB) | Sell | Catapult Wealth |
| The a2 Milk Company (A2M) | Sell | Catapult Wealth |
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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.
