Wanting to take advantage of the recent selloff in pockets of the share market?

Well, Bell Potter thinks the three ASX 200 shares in this article could be in the buy zone after heavy declines. Here’s what it is recommending:

Light & Wonder Inc (ASX: LNW)

Bell Potter continues to rate this gaming technology company as an ASX 200 share to buy.

It highlights that the company has a compelling growth-at-a-reasonable price (GARP) profile relative to peers. It said:

We rate LNW a Buy due to a compelling GARP profile relative to the ASX 100 and ALL (15% discount to EV / EBITA). We expect a continuation in the re-rate observed since the ASX sole listing in November 2025, as long as the company executes on market share gains in its respective markets. We believe LNW’s heightened investment in R&D will drive continued growth, particularly in the Premium leased market.

Bell Potter has retained its buy rating with an improved price target of $230.00 (from $176.00).

Pro Medicus Ltd (ASX: PME)

Another ASX 200 share that Bell Potter rates highly is health imaging technology company Pro Medicus.

Although it fell a touch short with its half-year results, it remains positive and is recommending investors buy the dip. It said:

The ongoing implementation of several major projects is expected to conclude by October 2026 inclusive of an estimated $29m boost to annual recurring revenues from the very large Trinity contract. For this reason we remain confident regarding the ongoing outlook for revenue and earnings growth. Target price is reduced by 25% to $240 following this downgrade and the re-rating now applied to software providers. Retain Buy rating. We believe the current price is an attractive entry point.

Bell Potter has retained its buy rating with a reduced price target of $240.00 (from $320.00).

Temple & Webster Group Ltd (ASX: TPW)

Finally, this online furniture and homewares retailer’s shares are being tipped as a buy.

Although its time as an ASX 200 share could be limited, the broker remains positive. It said:

Our views are unchanged of TPW’s ability to outperform over the long term as market share capture in an expanded TAM is expedited with range, pricing/scale advantages, AI/data capability backed by a strong balance sheet (~$160m cash). Trading at ~1.2x EV/Sales post today’s correction in the share price, we see TPW reverting back to valuation levels in Oct-23 at which time the company was growing revenue at sub20% and see some downside risk priced in the name, however potential for removal from the S&P/ASX 200 Index at the next rebalance in March remains.

Bell Potter now has a buy rating and $13.00 price target (from $19.50) on its shares.

The post Bell Potter names 3 sold-off ASX 200 shares to buy today appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• 13 ASX 200 shares hit multi-year lows as the market takes a breather
• Are Temple & Webster shares a buy after falling 32% yesterday following earnings results?
• 5 things to watch on the ASX 200 on Friday
• Why Pro Medicus shares could rebound over 100%

Motley Fool contributor James Mickleboro has positions in Pro Medicus and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder Inc and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Light & Wonder Inc, Pro Medicus, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why AMP, GQG, NextDC, and Origin Energy shares are racing higher today
• 3 ASX 200 stocks smashing the benchmark this week
• Why are AMP shares lifting off in Friday’s sinking market?
• GQG shares rise 4% as resilient earnings ease fund outflow concerns
• WAM Leaders announces fully franked interim dividend for 2026

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group. The Motley Fool Australia has recommended Goodman Group and Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are wanting some exposure to the smaller side of the market, then it could be worth considering the ASX All Ords stock in this article.

That’s the view of analysts at Bell Potter, who have just slapped a buy rating on its shares.

Which ASX All Ords stock?

The stock that the broker is bullish on is Cogstate Ltd (ASX: CGS).

Bell Potter highlights that this ASX All Ords stock is a highly specialised and leading service provider to over 100 global biopharma customers in the clinical trials industry.

Its core offerings include digital endpoint assessments, clinician training, and central monitoring solutions. The company operates predominantly in Central Nervous System (CNS) conditions, where trial endpoints are more subjective than other disease areas such as oncology.

What is the broker saying?

Bell Potter was pleased with Cogstate’s performance during the first half of FY 2026 and highlights its sizeable revenue backlog.

The good news is that the broker believes there are a number of positive thematics supporting this momentum in the coming years. It explains:

The strong increase in 1H26 new contract sales ($41.7m) resulted in a +$16.0m increase to CGS’s revenue backlog (now $92.3m). We see several positive thematics supporting this momentum in the years ahead, driving our forecasts of 11%/10% revenue growth in FY26/27 and EPS growth of ~21% in FY27.

These thematics include: (1) the number of Alzheimer’s disease clinical trials is expected to continue growing over the coming years; (2) CGS diversifying revenue across a variety of CNS indications beyond Alzheimer’s; (3) leveraging the Medidata strategic collaboration to drive new sales opportunities; and (4) remaining one of few fully independent providers not tied to a global CRO following recent M&A activity in the sector.

Big potential returns

According to the note, the broker has initiated coverage on the ASX All Ords stock with a buy rating and $2.90 price target.

Based on its current share price of $2.17, this implies potential upside of 34% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

We re-initiate coverage of CGS with a BUY recommendation and $2.90 PT. Cogstate is a highly profitable company (~19% NPAT margin) trading on attractive multiples relative to domestic and global peers. The forward EV/EBITDA of ~11x is well below the domestic peer average of >20x and below the global CRO avg of ~14x, notwithstanding its attractive growth outlook.

Our PT is comfortably supported by the DCF valuation (9.0% WACC, 3.0% TGR). Considering the recent pull back across software and speculative healthcare names, CGS provides a compelling investment case by virtue of its existing profitable business, attractive valuation, and multiple positive thematics.

The post Bell Potter just initiated coverage on this exciting ASX All Ords stock with a buy rating appeared first on The Motley Fool Australia.

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• Why Cogstate, DroneShield, Premier Investments, and South32 shares are storming higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cogstate. The Motley Fool Australia has positions in and has recommended Cogstate. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you hunting more investment ideas? If you are, it could be worth checking out what Morgans is saying about these popular ASX shares.

Let’s see if the broker thinks they are buys, holds, or sells right now:

Evolution Mining Ltd (ASX: EVN)

This gold miner has been given a hold rating and $14.50 price target by Morgans following its half-year results.

The broker highlights that a slightly softer profit was offset by a larger than expected dividend. It explains:

1H26 result: no major earnings surprises with a small underlying NPAT miss more than offset by a strong dividend beat of 20cps (+6%/+17% vs MorgansF/consensus). Key positives: dividend beat and approval of major projects and studies at Northparkes and Ernest Henry, which are expected to underpin production and throughput across both assets in the medium-to-long-term. Key negatives: there weren’t any. Our adjusted EBITDA forecasts for FY26/FY27/FY28 are -2%/+1%/+1%, respectively. We Maintain a HOLD rating with a A$14.50ps target price.

HomeCo Daily Needs REIT (ASX: HDN)

Morgans was pleased with this REIT’s performance during the first half of FY 2026.

So, with its shares trading at a deep discount to net tangible assets (NTA) and offering a big dividend yield, it has retained its accumulate rating (between hold and buy) with a $1.40 price target. It said:

HDN delivered a consistent set of results, with property fundamentals seeing NOI growth at +4.6% (vs pcp) and NTA growth of 5.4% (vs Jun-25). However, higher rates and increased debt saw FFO growing a more modest 2.8% – a trend we expect to continue as the business navigates potentially higher rates. Given HDN is trading at a 17% discount to NTA, with a 6.7% distribution yield (FY26), there is cause to see value. However, it appears FFO growth greater than inflation may remain elusive for the medium term. On this basis, we retain our Accumulate rating with a $1.40/sh price target.

Macquarie Group Ltd (ASX: MQG)

This investment bank released its third-quarter update this week and Morgans felt it was a solid report.

However, it hasn’t seen enough to change its recommendation. It has maintained its hold rating on Macquarie’s shares with an improved price target of $223.00. The broker said:

MQG has hosted its annual operational briefing, together with releasing its 3Q26 update. On the 3Q26 update, we saw this as a solid performance overall, benefitting from market-facing businesses (CGM and Macquarie Capital) seeing results “substantially up” on the pcp. Additionally, there was an underlying upgrade to CGM guidance, albeit this has been offset, to some degree, by an expected higher FY26 tax rate. We lift our MQG FY26F/FY27F EPS by +2%/+4% reflecting the more positive CGM commentary, blunted somewhat by higher expected tax. Our target price rises to ~$223 (from A$214). We maintain our HOLD recommendation.

The post Buy, hold, sell: Evolution Mining, HomeCo, and Macquarie shares appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
• Invest $20,000 in these 4 ASX shares and get $1,000 passive income
• ASX gold stocks never pay high dividends, but Evolution just changed the game
• Where to invest $10,000 in ASX growth shares
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the most controversial earnings reports we have seen so far this season has been from ASX 200 healthcare share and former market darling CSL Ltd (ASX: CSL). CSL dropped its latest earnings, covering the six months to 31 December 2025, on Wednesday of this week. And boy, did they disappoint.

It’s not hard to see why. CSL reported revenues of US$8.3 billion, a drop of 4% over the same period last year. Reported net profits after tax (NPAT) tanked by a horrid 81% to US$401 million, while underlying profits fell 7% to US$1.9 billion. The company maintained its interim dividend at US$1.30 per share. Investors were not encouraged by the sudden resignation of now-former CSL CEO Dr Paul McKenzie the night before these results came out.

All in all, it was a disastrous earnings report for CSL. The company’s shares have now crashed 16.7% since Monday’s close. The $150-levels we are now seeing represent more than a 50% dive from CSL’s all-time 2020 highs of over $340 per share, and are the lowest the stock has traded at since early 2018.

CSL shares plunge, but is all hope lost?

I, perhaps unfortunately in hindsight, own CSL shares myself. I am obviously not too impressed with the company’s recent performance. Saying that, I am not selling out of my holdings yet. In fact, I think these earnings were not as disastrous as the market is assuming.

Yes, CSL is certainly in the midst of a rough patch. However, I think the headwinds it is facing are temporary. For example, the company is being hurt by the current US administration’s negative views on vaccines. Yet this may pass after the next American presidential elections in 2028. CSL remains one of the world’s largest and most dominant healthcare companies and possesses a wide economic moat. I don’t see any long-term threats to its blood plasma medicines business.

Additionally, the company’s balance sheet and cash flow remain strong. This is evidenced by its decision this week to extend its share buyback scheme from US$500 million to US$750 million. Given that CSL shares are currently at an eight-year low, this should provide significant value for existing investors going forward.

Foolish takeaway

I am not pleased with CSL’s recent performance, and the tenure of former CEO Paul McKenzie was a disaster. However, I think CSL is not permanently damaged and can work its way back to its former glory. I have still put the company on notice in my own portfolio, and am prepared to sell out if CSL continues to make missteps. But I think its restructing and ongoing share buybacks going forward will prove to be a turning point in hindsight. Let’s see how the rest of 2026 treats this ASX 200 healthcare stock.

The post The earnings were awful, but here’s why I’m still holding my CSL shares appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: James Hardie, CSL, and CBA shares
• Why CSL shares could be trading at a 94% discount today
• Here’s an ASX 200 share that I think could beat CSL in 2026
• Why AMP, CSL, Pro Medicus, and Temple & Webster shares are crashing today
• Are CSL shares a buy after this week’s brutal selloff?

Motley Fool contributor Sebastian Bowen has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Several top brokers have re-rated Commonwealth Bank of Australia (ASX: CBA) and ANZ Group Holdings Ltd (ASX: ANZ) shares after the major banks stunned the market with their earnings reports this week.

On Friday, CBA shares continue to ride the momentum generated by the bank’s 1H FY26 report, released on Wednesday.

The CBA share price lifted 0.29% to an intraday high of $179.27 apiece this morning.

But the stock reversed course this afternoon, with CBA shares currently 1.9% lower for the day at $175.42.

ANZ shares have had a topsy-turvy day, rising 1.5% to a record $40.95 this morning before pulling back to $40.75 currently, up 1%.

Meantime, the S&P/ASX 200 Index (ASX: XJO) is down 1.4% to 8,914.30 points as the rest of the market takes a breather.

Let’s find out what the brokers thought of these banks‘ reports, and how their ratings and 12-month share price targets have changed.

CBA shares: How are they rated now?

CBA surprised analysts and investors alike with a 6% increase in cash profit to $5.45 billion for 1H FY26.

The bank declared a fully-franked interim dividend of $2.35 per share, up 4% from 1H FY25.

CBA’s net interest margin (NIM) was 2.04%, steady on an underlying basis, and return on equity (ROE) was 13.8%, up 0.1%.

The results led to CBA reclaiming its title as the No. 1 ASX 200 share by market cap from BHP Group Ltd (ASX: BHP) on Thursday.

CBA shares took the title from BHP in July 2024, and BHP shares snatched it back last month.

CBA CEO Matt Comyn said:

Our balance sheet settings remain resilient with strong levels of capital, deposit funding and provisioning given the economic backdrop and geopolitical issues.

Our financial position enables us to support lending growth, continue investing to accelerate our technology modernisation agenda and enhance our GenAI capability, and help combat fraud, scams, cyber threats and financial crime.

We continue to watch the competitive intensity and its implications across the financial system.

We are well placed to compete effectively and will continue to adjust our settings as appropriate.

Here at The Fool, we reviewed the ratings of seven analysts tracking CBA shares on Friday.

They have all reiterated their sell ratings on CBA shares.

Some have lifted their 12-month price targets, but those targets are nowhere near where CBA shares are trading today.

Jeffries raised its price target from $139.60 to $143. Citi lifted its target from $137 to $140.

Morgan Stanley raised its price target from $131 to $140. UBS raised its target from $125 to $130.

Ord Minnett has a target of $120, while Macquarie’s is $124.

Morgans raised its CBA share price target from $99.81 to $124.26.

In a note, the broker said:

CBA delivered a meaningful beat of 1H26 earnings expectations.

We have materially upgraded our EPS forecasts after factoring in continuation of higher loan growth and benign credit loss environments.

What about ANZ shares?

ANZ also surprised the market by announcing a $1.94 billion cash profit for 1Q FY26 yesterday.

That was 75% higher than the 2H FY25 quarterly average, indicating that new CEO Nuno Matos is doing something right.

The strong profit was driven by higher revenue and lower expenses.

The operating income was $5.7 billion, up 4% on the 2H FY25 quarterly average, while operating expenses fell 21% to $2.8 billion.

Matos said:

The quarterly result highlights the early progress we are making in executing our ANZ 2030 strategy.

Our productivity program aimed at removing duplication and simplifying the bank is well underway, delivering a significant reduction in expenses while growing revenue.

Looking ahead, we continue to be fully engaged in executing our ANZ 2030 strategy.

This is the beginning of our five-year journey to become the best bank for customers and shareholders in Australia and New Zealand.

We found a mixed bag of ratings from seven analysts covering ANZ shares on Friday.

Morgan Stanley upgraded its rating on ANZ shares to a buy with a 12-month target of $36.30.

Morgans downgraded its rating from trim to sell and increased its target slightly from $32.57 to $32.65.

The broker said:

On face of it, the 1Q26 trading update suggested ANZ was tracking ahead of 1H26 growth expectations.

However, the beat was driven mostly by the speed of cost-out and will unlikely affect consensus expectations as ANZ retained its FY26 cost guidance of c.$11.5bn.

We estimate ANZ is trading on 1.8x P:TBV, 16x PER, and 4.1% cash yield (partly franked), all stretched against historical trading ranges.

The remaining analysts reiterated their previous ratings, with some adjustments to price targets.

Citi maintained a buy rating on ANZ with a share price target of $40.30.

Ord Minnett has a sell rating with a price target of $33.

UBS is also sell-rated but lifted its target from $35 to $36.50.

Jefferies kept its hold rating on ANZ shares with a price target of $34.55.

Macquarie also recommends holding the ASX 200 bank share with a price target of $37.

Despite the increases on some price targets, ANZ shares are trading ahead of even the most optimistic valuations.

The post Brokers re-rate CBA and ANZ shares after banks stun the market appeared first on The Motley Fool Australia.

More reading

• ASX shares with ex-dividend dates next week
• Buy, hold, sell: James Hardie, CSL, and CBA shares
• What’s going on with ASX bank stocks this week?
• Here are the top 10 ASX 200 shares today
• 7 ASX 200 large-cap shares hitting multi-year highs today

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in PointsBet Holdings Ltd (ASX: PBH) are edging slightly lower today.

At the time of writing, the PointsBet share price is down 1.66% to 89 cents.

The company has a market capitalisation of just over $300 million and operates online sports and racing betting platforms in Australia and Canada. It offers fixed odds betting, in play wagering, and its own PointsBetting product through a digital platform.

Let’s take a closer look at what the market is responding to.

Canadian regulator proposes short suspension

In its ASX announcement, PointsBet advised that the Alcohol and Gaming Commission of Ontario (AGCO) has issued a notice of proposed order to suspend PointsBet Canada’s iGaming registration for 5 days.

The proposed suspension relates to a March 2024 incident. According to the company, it involved the provision of certain transactional information connected to suspicious betting activity.

PointsBet said it has the right to appeal the proposed order within 15 days through the Licence Appeal Tribunal. The company is currently reviewing the notice and considering its options, including requesting a formal hearing.

Management stated that the initial response provided to the regulator in March 2024 was incomplete. Once the issue was identified, the company said it had supplied the full and correct information and had fully cooperated with the regulator since then.

PointsBet confirmed that its Canadian operations will continue during the appeal period and has indicated its intention to challenge the proposed suspension.

There was no mention of a financial penalty in the announcement.

Recent performance and financial position

PointsBet operates in a highly competitive wagering market. The company has grown revenue over recent years, with annual revenue sitting around $260 million in its most recent full-year result.

However, the business is still reporting net losses. While losses have narrowed compared with previous periods, the company has not yet returned to consistent profitability.

PointsBet also does not pay a dividend.

Over the past 12 months, the share price has traded between roughly 79 cents and $1.32. At 89 cents, the stock is sitting toward the lower end of that range.

What investors should watch next

The next key event for shareholders will be the upcoming half-year results, expected in late February. Investors will be looking for updates on revenue growth, operating costs, and progress toward improving earnings.

Regulatory developments will also remain important. Online betting businesses operate under strict rules, particularly in overseas markets such as Canada.

Any further regulatory action could weigh on investor sentiment and put additional pressure on the share price.

The post PointsBet shares dip as investors digest latest news appeared first on The Motley Fool Australia.

More reading

• Buyback news has this ASX All Ords gaming stock looking like a sure bet

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended PointsBet. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It has been another busy week for many of Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone right now:

Breville Group Ltd (ASX: BRG)

According to a note out of Morgans, its analysts have retained their buy rating on this appliance manufacturer’s shares with an improved price target of $40.65. This follows the release of a better than feared half-year result from Breville this week. It notes that its double-digit sales growth was largely offset by US tariff pressures, leading to a flat net profit outcome. Nevertheless, Morgans continues to be impressed by Breville’s strong operational execution, green shoots in food preparation, and powerful medium-term tailwinds. The latter includes geographic expansion and at-home coffee tailwinds. The Breville share price is trading at $32.53 on Friday.

Northern Star Resources Ltd (ASX: NST)

A note out of Citi reveals that its analysts have upgraded this gold miner’s shares to a buy rating with an improved price target of $33.40. The broker made the move in response to the company’s half-year results this week. It was pleased with the results and management’s reiteration of guidance for FY 2026. And while it sees short-term downside risks, the broker feels its valuation is compelling based on the current gold price and its price to net asset value. The Northern Star share price is fetching $28.29 at the time of writing.

Pro Medicus Ltd (ASX: PME)

Analysts at Bell Potter have retained their buy rating on this health imaging technology company’s shares with a reduced price target of $240.00. This follows the release of Pro Medicus’ half-year results, which were a touch short of expectations. Bell Potter notes that although it delivered a record result with strong revenue and profit growth, its revenue was still a 5% miss. And as it was priced to perfection, it wasn’t surprised to see its shares tumble. Outside this, the broker highlights that management spoke about how it doesn’t believe AI will disrupt its business. The broker agrees with this and believes that it is well-placed to benefit from increasing demand for radiology services. This is especially the case given how its systems remain a driver of efficiency in radiology. Overall, it believes that following this downgrade and the re-rating now applied to software providers, it is an attractive entry point for investors. The Pro Medicus share price is trading at $120.49 today.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• 13 ASX 200 shares hit multi-year lows as the market takes a breather
• Are Northern Star Resources shares a buy following their profit results?
• Why Pro Medicus shares could rebound over 100%
• Broker weighs in on two ASX healthcare shares that crashed yesterday
• Here are the top 10 ASX 200 shares today

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Insurance Australia Group Ltd (ASX: IAG) this week reported a solid but unremarkable increase in underlying earnings, but the question is, where to from here for IAG shares?

We’ve canvassed the views of two brokers, and it’s fair to say they are broadly positive.

But first, let’s look at the results.

Solid underlying performance

IAG reported an underlying insurance profit of $804 million, up 7.6% on the previous corresponding period, on $8.93 billion in premiums written, up 6%.

The company declared a steady dividend of 12 cents per share and also announced an on-market share buyback worth up to $200 million.

IAG Managing Director Nick Hawkins said the result demonstrated the strength of the business.

He went on to say:

Today’s results show the work we’ve done to deliver a more stable earnings profile, maintain a strong underlying margin, and ensure Australia and New Zealand are well protected through our comprehensive reinsurance program which now includes RACQI. Various major hailstorms and severe weather events in October and November across south-east Queensland and northern NSW resulted in significant claims for insurers , including more than 35,000 for IAG as customers were supported through adversity. The severe weather was an opportunity to demonstrate the strength of IAG’s customer support. Our response was faster and even more targeted as a result of our new, proprietary Situation Awareness Map, powered by AI, data, and satellite technology.

On the outlook, IAG slightly downgraded its forecast for full-year gross written premiums (GWP) to high single digits, down from 10% previously, and maintained its FY26 insurance profit guidance range of $1.55 to $1.75 billion.

Shares looking cheap

The analysts at Morgan Stanley looked at the results and said there could be some upside, with “some potential in the near-term for higher pricing to emerge or investment yields to rise or extra reinsurance deals to unlock capital, though these are not in our base case”.

They also added that insurance companies wouldn’t be immune from fears around artificial intelligence.

As they wrote:

Given recent market debate about increasing competition from AI-powered price discovery in personal lines, we think the lower topline growth will be a point of concern for investors.

Morgan Stanley has a price target of $7.50 on IAG shares against the current price of $6.89.

Macquarie is more bullish on the stock with a price target of $9.

It said:

At current valuations we believe the stock is cheap, with earnings (and dividends) quarantined in 2H26 and reinsurance costs protected for the next three years.  

The post IAG shares could go how high? appeared first on The Motley Fool Australia.

More reading

• IAG FY26 half-year result: profit down, revenue up, dividend steady
• ASX 200 financials flew but tech and mining shares faltered last week
• Buy, hold, sell: IAG, Mineral Resources, and Westpac shares
• IAG share price drops 13 in a year: Buying opportunity or time to sell up?
• Looking at the IAG share price? Here’s how much this stock pays in dividends

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The good news for investors looking for an income boost is that the Australian share market has a multitude of options.

To narrow things down, let’s look at three ASX dividend stocks that experts think could be in the buy zone right now. Here’s what they are recommending to clients:

Cedar Woods Properties Limited (ASX: CWP)

The first ASX dividend stock that analysts are tipping as a buy is Cedar Woods. It is one of Australia’s leading property developers with a portfolio that is diversified by geography, price point, and product type.  This includes subdivisions in emerging residential communities, high-density apartments, and townhouses in inner-city neighbourhoods.

Bell Potter believes the company is well-placed to benefit from Australia’s chronic housing shortage. It expects this to underpin fully franked dividends per share of 35 cents in FY 2026 and then 39 cents in FY 2027. Based on its current share price of $7.68, this equates to 4.6% and 5.1% dividend yields, respectively.

The broker has a buy rating and $10.00 price target on its shares.

Lottery Corporation Ltd (ASX: TLC)

Another ASX dividend stock that analysts rate as a buy is Powerball, Keno, and Tatts Lotto operator Lottery Corporation.

Its earnings are largely insulated from economic cycles. Ticket sales tend to remain steady regardless of whether consumer confidence is high or low, which supports predictable cash flows.

What could make Lottery Corporation attractive for income investors is its capital-light business model. With minimal reinvestment requirements, a large portion of earnings can be returned to shareholders as dividends. This has allowed the company to establish itself as a consistent income payer since its demerger.

UBS expects this trend to continue and is forecasting fully franked dividends per share of 17 cents in FY 2026 and then 21 cents in FY 2027. Based on its current share price of $5.14, this would mean dividend yields of 3.3% and 4.1%, respectively.

The broker has a buy rating and $6.30 price target on its shares.

Sonic Healthcare Ltd (ASX: SHL)

A third ASX dividend stock that is rated as a buy by analysts is Sonic Healthcare.

It is one of the world’s leading healthcare providers with operations spanning laboratory medicine, pathology, radiology, and primary care medical services. After a tough period following the end of COVID testing, analysts at Bell Potter believe the company is positioned for sustainable growth.

This is expected to support partially franked dividends of $1.09 per share in FY 2026 and $1.11 per share in FY 2027. Based on its current share price of $21.62, this equates to dividend yields of 5% and 5.1%.

Bell Potter has a buy rating and a $28.50 price target on its shares.

The post Looking for income? Check out these buy-rated ASX dividend stocks appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended The Lottery Corporation. The Motley Fool Australia has recommended Sonic Healthcare and The Lottery Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.