Buy, hold, sell: Medibank, Qantas, and Xero shares

Wondering which ASX blue chip shares to buy or sell? Let’s take a look at what analysts are saying about three popular options, courtesy of The Bull.

Here’s what they are recommending to their clients:

Medibank Private Ltd (ASX: MPL)

Catapult Wealth is feeling bearish about private health giant Medibank and has named it as a sell.

It has concerns about rising cost pressures, which it feels have created a challenging outlook for the company. It said:

MPL is a private health insurer. The Federal Government is attempting to encourage private health insurers to increase payments to private hospitals. Net profit after tax of $500.8 million in fiscal year 2025 was up a modest 1.7 per cent on the prior corresponding period. Profit before tax of $728.8 million was up 2.4 per cent. The company was recently trading on an annual dividend yield of 3.9 per cent. The risk of increasing cost pressures paints a challenging outlook. The shares have fallen from $5.26 on August 21 to trade at $4.545 on December 4.

Qantas Airways Ltd (ASX: QAN)

The team at Sanlam Private Wealth has put a sell rating on the shares of airline operator Qantas.

It feels that its earnings growth outlook is now more modest than in previous years and its fleet investments will require significant capital. In light of this, it feels that the Flying Kangaroo’s shares are now overvalued. Sanlam Private Wealth said:

The share price has run ahead of fundamentals, making it vulnerable to any possible downgrades, in our view. We believe the outlook for earnings growth is modest compared to the recent past. Fleet renewal plans and sustainability investments require substantial capital, which could potentially mute shareholder returns moving forward. The shares have risen from $8.02 on April 9 to trade at $9.74 on December 4, so investors may want to consider cashing in some gains.

Xero Ltd (ASX: XRO)

One ASX share that Catapult Wealth is feeling positive on is Xero. It has recommended the cloud accounting platform provider as a buy.

It was impressed with its performance during the first half of FY 2026 and believes that recent share price weakness has created a buying opportunity for investors. Especially given the potential for a meaningful re-rating of its share price if the US business starts to kick into gear. It said:

XRO is a global accounting software provider. Average revenue per user was up 15 per cent in the first half of 2026 when compared to the prior corresponding period. EBITDA was up 21 per cent. Rolling out bank feed connections in the United States will be a tail wind moving forward. In our view, the recent fall in the share price reflects a short-sighted assessment of revenue and subscriber growth rates. The US payments opportunity is significant, and any signs of successful execution and acceleration in growth will drive a meaningful re-rate.

The post Buy, hold, sell: Medibank, Qantas, and Xero shares appeared first on The Motley Fool Australia.

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