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 Philippe Bui of Medallion Financial Group , Blake Halligan of Gray Perry Wealth Advisers, and Tom Fairchild of Lazarus Capital Partners 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.
Philippe Bui, Medallion Financial Group
BUY RECOMMENDATIONS
BUY – Challenger Gold (CEL)
Challenger offers speculative exposure to the development of its wholly owned Hualilan gold project in Argentina. A 35,000 metre drilling program provides near term catalysts through resource growth and mine-plan optimisation. Management is targeting commercial production from this operation by early 2029. We see potential for a re-rating as engineering, approvals and financing progresses. CEL is suitable for investors who are comfortable with higher risk. The shares were trading at $1.605 on October 8.
BUY – Xero (XRO)
Xero is an accounting software provider. Operating revenue grew 31 per cent in full year 2026 when compared to the prior corresponding period. Adjusted EBITDA rose 18 per cent, demonstrating continuing growth alongside investment in its US expansion. The Melio acquisition in the US broadens its offering across accounting and payments, creating opportunities to deepen customer relationships. We believe its recurring revenue model, established accounting network and growing product suite support an attractive long term investment case. Integration costs and competition remain risks, but we favour buying for sustained international growth.
HOLD RECOMMENDATIONS
HOLD – GR Engineering Services (GNG)
This mineral processing engineering and construction group delivered full year revenue of $493.2 million and EBITDA of $63.1 million, both up on the previous year. We favour its exposure to investment in new mines and processing infrastructure. However, project timing, construction costs and contract execution can produce uneven earnings. We suggest existing shareholders should retain their positions. Any further purchases should depend on the valuation and evidence that new contract activity can sustain earnings growth.
HOLD – Megaport (MP1)
Megaport’s expansion into AI infrastructure is generating momentum, with about $979 million in new contracts supporting upgraded full year 2027 revenue guidance of between $720 million and $810 million. Pre-payments from these contracts totalling about $322.6 million help fund deployment and strengthen the growth case. Forecast capital expenditure of between $1.78 billion to $1.88 billion highlights the scale of its transformation. We recommend holding while monitoring delivery, customer concentration and the returns generated from this substantial investment.
SELL RECOMMENDATIONS
SELL – Wesfarmers (WES)
Wesfarmers owns retail giants Bunnings, Kmart and Officeworks among other businesses. Bunnings and Kmart remain strong businesses. However, we regard the valuation of Wesfarmers as demanding. Fiscal year 2026 underlying earnings per share increased by 8.3 per cent, while the shares were recently trading around 30 times reported earnings. Consequently, this leaves limited room for potentially weaker consumer spending or execution setbacks. An earnings decline at Officeworks and the ongoing lithium investment add uncertainty outside the core retailers. We favour reducing exposure and re-allocating capital to opportunities offering a more attractive balance between valuation and growth.
SELL – Commonwealth Bank of Australia (CBA)
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This bank delivered another strong result in full year 2026. The company posted cash profit of $10.982 billion in full year 2026, up 7 per cent on the prior corresponding period. The full year dividend of $5.05, fully franked, was up 4 per cent. CBA’s scale, customer franchise and technology investment underpin the company’s quality. Nevertheless, we believe the valuation leaves insufficient room for disappointment. Mortgage competition, operating costs and the potential for credit losses to normalise remain risks. We favour taking profits and re-allocating capital to other companies where earnings growth and income offer a more compelling prospective return.
Blake Halligan, Gray Perry Wealth Advisers
BUY RECOMMENDATIONS
BUY – ResMed Inc. (RMD)
ResMed is a global leader in treating sleep apnoea and in respiratory care devices, with a growing digital health ecosystem that supports long term recurring revenue. Revenue increased 8 per cent in constant currency in full year 2026 when compared to the prior corresponding period. Earnings per share were up 17 per cent. ResMed continues to benefit from an under-penetrated market, with less than 20 per cent of US sleep apnoea sufferers diagnosed or treated amid growing demand for home-based health care solutions. We believe concerns around GLP-1 weight loss drugs impacting ResMed are overstated. Expanding patient support provides an attractive long term growth outlook.
BUY – SiteMinder (SDR)
SiteMinder provides hotel commerce software that helps accommodation providers manage distribution, bookings and revenue. Annual recurring revenue (ARR) rose 24.1 per cent on a constant currency and organic basis in full year 2026 when compared to the prior corresponding period. Transaction ARR increased 37.1 per cent. SiteMinder’s improving unit economics remain a key attraction. As SiteMinder expands its customer base and increases product penetration, these investments should support stronger recurring revenue and operating leverage over time.
HOLD RECOMMENDATIONS
HOLD – Ramsay Health Care (RHC)
Ramsay Health Care is one of the largest private hospital operators in Australia, with additional operations in the UK and Europe. Revenue increased 4.2 per cent in constant currency in full year 2006 when compared to the prior corresponding period. Underlying earnings before interest and tax were up 11.8 per cent, supported by improved activity, theatre utilisation and higher margins. Management expects further revenue growth and margin improvement in full year 2027. Ramsay’s scale and exposure to growing health care demand support its longer term outlook. However, labour cost pressures and a strong share price rise following the full year results reduce the margin of safety.
HOLD – Transurban Group (TCL)
Transurban owns and operates toll roads across Australia and North America, generating cash flows from essential transport infrastructure. The company recently agreed to acquire additional interests in Sydney toll roads, which should support longer term earnings and cash flow growth. No equity funding is required for the $4.5 billion deal. However, in our view, the benefits are likely to be offset in the near term by increased funding requirements, elevated leverage and ongoing sensitivity to interest rates. Dependable earnings is challenged by limited immediate upside.
SELL RECOMMENDATIONS
SELL – Evolution Mining (EVN)
Evolution Mining produces gold and copper from operations in Australia and Canada. The company delivered record cash generation, a net cash position and higher shareholder returns in full year 2026, supported by strong gold and copper prices. However, sustaining record earnings relies on gold and copper prices remaining high in a volatile world. Future performance depends on consistent delivery across major operations, disciplined investment and continuing replacement of mined reserves. After a recent and substantial share price recovery, the valuation leaves limited room for operational setbacks or weaker metal prices. Investors may want to consider taking profits at current levels.
SELL – Reece (REH)
Reece is a plumbing supplies company in Australia, New Zealand and the United States. Statutory sales revenue was up 4.5 per cent in reported currency in full year 2026 when compared to the prior corresponding period. However, earnings before interest and tax in reported currency fell 2.6 per cent. Housing cyclicality and US execution remain material risks. Any slowdown in housing activity or property prices could weaken demand for plumbing products, placing pressure on revenue, margins and earnings. In our view, the shares appear expensive relative to these risks.
Tom Fairchild, Lazarus Capital Partners
BUY RECOMMENDATIONS
BUY – Janus Electric Holdings (JNS)
JNS converts diesel prime movers into electric vehicles using a patented battery-swap system in Australia and North America. The macro case is compelling as Australia imports about 87 per cent of its diesel. Freight transportation uses almost half of the imported diesel. Electrifying trucks means owners don’t have to rely on imported diesel. Conversions appeal in terms of fuel savings over the longer term and reduced emissions. Revenue is growing, but the company reported a $9.1 million statutory loss after tax in full year 2026. However, the share price has risen from 14 cents on July 1 to trade at 69 cents on October 8. The outlook appears prosperous, but a speculative buy at these levels.
BUY – Wildcat Resources (WC8)
This developer is fast-tracking the Tabba Tabba lithium project near Port Hedland in Western Australia. The project is located near some of the world’s largest lithium mines. Macro tailwinds help drive the company’s investment case. Electric vehicles and fast growing industrial battery storage drive lithium demand. Australia is the world’s largest lithium producer, and the Federal Government offers incentives to grow critical minerals projects. Tabba Tabba hosts 74.1 million tonnes at 1 per cent lithium oxide. A definitive feasibility study is well advanced. Wildcat is drilling the nearby Bolt Cutter lithium discovery and is well funded.
HOLD RECOMMENDATIONS
HOLD – Ansell (ANN)
Ansell is a global leader in safety solutions, making protective gloves and clothing for industrial and health care customers. Its premium brands give it genuine pricing power. In full year 2026, price increases fully offset higher US tariffs and Middle East-driven cost pressures without derailing volumes. Global sales of $US2.14 billion in full year 2026 were up 5 per cent on an organic constant currency basis. Adjusted earnings per share of $US1.486 were up 18.5 per cent. With full year 2027 guidance pointing to further growth on top of a strong balance sheet and an ongoing share buy-back, Ansell looks well placed for inflationary times.
HOLD – BlueScope Steel (BSL)
BSL is Australia’s largest steelmaker, with major operations in North America and Asia. Its pricing power is primarily generated from premium brands, such as COLORBOND and TRUECORE, which achieved record Australian despatches. US tariffs lifting steel spreads at its Ohio-based North Star mill also assisted its pricing power. Underlying earnings before interest and tax of $A1.27 billion rose 72 per cent on the prior corresponding period despite softer Australian pricing and higher raw material costs. After rejecting a $30 per share takeover bid in January, BlueScope plans to deliver $3 per share in returns in financial year 2027.
SELL RECOMMENDATIONS
SELL – NextDC (NXT)
NXT is riding the AI data centre boom. The company generated total revenue of $496.5 million in full year 2026, up 16 per cent on the prior corresponding period. To fund capital expenditure of $3.397 billion in full year 2026, NXT raised $9.75 billion, much of it in senior debt, subordinated notes and hybrid securities. The company’s $82.1 million statutory profit relied on a revaluation gain of $128.8 million. In our view, rising interest costs could squeeze returns before new capacity starts paying its way. The shares have fallen from $16.37 on June 4 to trade at $10.23 on October 8.
SELL – ANZ Group Holdings (ANZ)
The bank faces headwinds as Australian house prices fall. After acquiring Suncorp Bank, ANZ is the country’s third largest home lender. The bank noted a 12 per cent fall in home loan application values since the May budget and the end of July following the Federal Government’s proposed changes to negative gearing and capital gains tax. Capital city house prices may fall more than 10 per cent from their peak, raising negative equity risks among recent low deposit buyers, which may pressure lending growth and credit quality. Investors may want to consider cashing in some gains given the share price rise since June.
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.
