ASB, BHP, Westpac shares: Buy, sell, hold

The S&P/ASX 200 Index (ASX: XJO) has climbed higher over the past week thanks to a rebound in bank, healthcare, and energy stocks.

Find out how three major ASX 200 shares, Austal Ltd (ASX: ASB), and BHP Group Ltd (ASX: BHP), and Westpac Banking Corporation Ltd (ASX: WBC) are tracking. And which one brokers rate as a buy, a hold, and a sell.

Brokers rate Austal shares as a buy

Austal shares have jumped 12% higher over the past week, up to $4.18 a piece at the time of writing. The rebound is great news for investors but there is still some way to go before the Australian-based global shipbuilding company and defence prime contractor’s shares have recouped losses shed earlier this year.

The shares are still down around 38% for the year-to-date and 39% lower than this time last year.

There hasn’t been any specific price sensitive news out of the company to explain the rebound over the past week, but there are media reports that the company is still weighing up two competing offers for its US operations. 

Wildcat Infrastructure launched a non-binding counter-bid of US$1.25 billion to US$1.35 billion to acquire Austal’s US operations as a standalone platform last month. This proposal directly competes with Hanwha Group’s earlier US$1.05 billion to US$1.20 billion buyout offer.  

Last week Austal confirmed that it had extended the due diligence period provided to Hanwha Defence USA, Inc. to enable it to firm-up its indicative, non-binding and conditional offer into a binding offer for Austal USA.

Brokers are optimistic that Austal shares can rally even higher. According to Market Index, the majority have a buy rating on the shares and the $5.36 average target price implies a 28% upside, at the time of writing.

Brokers rate BHP shares as a hold

BHP shares are also in focus this week after the mining giant posted its first quarter FY27 update on Tuesday. 

The company announced steady iron ore production and stronger realised prices, despite a drop in copper output. The miner also confirmed that there is no change to its FY27 production or unit cost guidance across core divisions.

The update follows two fatalities at its Escondida and Peak Downs sites during the quarter. These have prompted company-wide safety reviews and temporary operational pauses at the affected sites.

At the time of writing, BHP shares have fallen around 3% over the past week, to $59.50. Despite the decline, the shares are still trading around 30% higher for the year-to-date and they’re up around 35% compared to 12 months ago.

But the experts are still reserved about where the ASX mining shares could go from here. Market Index data shows the majority have a hold rating on the shares. And the $62.63 average target price implies a potential 5% upside, at the time of writing.

Brokers rate Westpac shares as a sell

Westpac shares are largely flat over the past week, to $35.13 at the time of writing. The ASX bank shares have now fallen around 10% for the year-to-date and are 10% lower than this time last year.

It looks like investors are sitting tight on Westpac shares ahead of the bank’s FY26 earnings announcement on the 2nd of November. Investors are likely waiting to see how the bank’s net interest margins and revenue. The bank is guiding revenue growth of 3-5% and a cost-to-income ratio of 51-53%.

On Monday, Westpac announced a $41 million pre-tax notable item in the second half of FY27 for expenses related to the RAMS litigation matters and associated legal costs.

Elsewhere in the bank sector there has been a rebound in confidence following fresh unemployment data and renewed confidence that the RBA will pause rates for the near future.

Market experts think that there is potential for Westpac shares to fall further. Market Index data shows the majority have a sell rating on the stock, and the $34.18 average target price implies a potential 3% downside, at the time of writing.

The post ASB, BHP, Westpac shares: Buy, sell, hold appeared first on The Motley Fool Australia.

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