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Buy, hold, sell: DBI, GQG Partners, and Rio Tinto shares

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Are you searching for ASX shares to buy this month?

If you are, then it could be worth hearing what analysts at Morgans are saying about the popular shares named below.

Are they buys, holds, or sells? Let’s see how the broker rates them:

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Morgans thinks that recent share price weakness makes this coal terminal operator an ASX share to buy now.

This week, the broker has upgraded its shares to a buy rating with a $5.35 price target. Morgans likes the company due to its defensive qualities and attractive dividend yield. It said:

DBI’s share price has declined c.14% since its high on its FY25 reporting day in February. We see no factor causing a material change to the fundamental value of the business. Our forecasts and valuation includes the higher interest rate environment and elevated short-term inflation. Hence no change to our $5.35 target price. Forecast changes are negligible.

At current prices we estimate potential TSR of c.21% (including a forecast 6.2% cash yield). We view this as an attractive return (with significant margin of safety) for a defensive but growing infrastructure asset. Hence we upgrade from HOLD to BUY.

GQG Partners Inc (ASX: GQG)

Another ASX share that Morgans has been looking at is GQG Partners. While the fund manager reported net fund outflows during February, the broker was pleased to see its investment performance improve markedly.

It feels this could represent a turning point for the company and has upgraded its shares to a buy rating with a $2.03 price target. The broker said:

GQG has provided a February FUM update.  Whilst monthly net flows remained negative (-US$3.2bn), strong February investment performance (+US$10.5bn), which drove +4.5% FUM growth, made this a positive update in our view. We lift our GQG FY26F/FY27F EPS by +1%-+2%, driven by increased FUM forecasts based on better investment performance than we expected.

Our PT rises to A$2.03 (previously A$1.89). We acknowledge it remains early, but the improved January and February investment performance for GQG might mark the start of a business turnaround. We continue to see the stock as undervalued trading on 8x FY1 PE and an ~11% dividend yield. With >20% TSR upside, we move to a BUY rating, previously Accumulate.

Rio Tinto Ltd (ASX: RIO)

Lastly, Morgans highlights that Rio Tinto’s shares have pulled back recently.

While the broker believes that value is emerging, it isn’t quite enough for a buy recommendation. As a result, Morgans has upgraded the mining giant’s shares to a hold rating with a $147.00 price target. It commented:

We upgrade RIO from TRIM to HOLD with a revised target price of A$147 (prior A$146). The recent share price pullback closes the valuation stretch, while a lift in our medium-term iron ore assumption from US$80/t to US$85/t provides a firmer earnings floor. RIO remains a top-tier diversified miner.

Not cheap enough for a BUY, but the pullback removes the overshoot that justified TRIM. Iron ore earnings platform, copper and aluminium leverage, and lithium optionality, RIO represents an attractive mix with good execution in the Pilbara and Oyu Tolgoi.

The post Buy, hold, sell: DBI, GQG Partners, and Rio Tinto shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Gqg Partners. 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 Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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