Buy, hold, sell: NAB, Pro Medicus, and Telstra shares

Looking for some new portfolio additions? Well, let’s see what analysts at Morgans are saying about these popular ASX shares.

Are they buys, holds, or sells? Let’s find out:

National Australia Bank Ltd (ASX: NAB)

While this banking giant delivered a solid quarterly update last month, it isn’t enough to justify its valuation.

As a result, the broker has retained its sell rating with a $37.27 price target. It said:

Like its peers that reported in February, NAB’s 1Q26 trading update showed it is benefitting from a supportive interest rate, credit growth, and asset quality environment. We make upgrades to our forecasts to reflect performance and outlook. 12 month target price set at $37.27/sh.

With more aggressive assumptions than previously we estimate a higher fundamental value for NAB. However, the share price is still trading far ahead of this revised estimate. SELL retained, with potential TSR of -17% (including 3.6% cash yield).

Pro Medicus Ltd (ASX: PME)

This health imaging technology company’s shares could be undervalued according to Morgans.

Although Pro Medicus’ half-year earnings were a touch short of expectations, the broker remains very positive on its outlook.

And while it has retained its buy rating with a trimmed price target of $275.00, this is more than double its current share price. It said:

PME delivered record revenue and underlying EBIT up ~30% YoY, yet the result fell short of expectations on operating leverage with a jump in staff costs driving an EBITDA miss as Trinity contributed less than anticipated. The longer-term outlook strengthened with more than A$280m of new contracts signed and five-year contracted revenue now around A$1.1bn, though the market remains wary of a heavy 2H execution load and cost base increase.

It is not ideal to deliver a miss in this market, but the reaction feels overcooked and the setup into 2H is far better than the share price implies. Our valuation is reduced to A$275 (from A$290) and we retain our Buy recommendation.

Telstra Group Ltd (ASX: TLS)

Finally, this telco giant delivered a result that was better than expected. However, it only reaffirmed its guidance for the full year.

In light of this, Morgans held firm with its hold rating with a $5.20 price target. It commented:

TLS’s 1H26 result was slightly better than expected albeit with full year guidance broadly reiterated. Highlights of the result were strong performance for the all-important mobile business, strong cashflow and a slightly higher than expected interim dividend. The interim dividend is partially franked (90.5%) and above consensus expectations. Our TP lifts to $5.20 and we retain our Hold recommendation.

The post Buy, hold, sell: NAB, Pro Medicus, and Telstra shares appeared first on The Motley Fool Australia.

More reading

• ASX bank stocks: Buy, sell, or hold?
• How have the ASX big four bank shares held up in March?
• Are these ASX shares hitting 52-week highs still worth buying?
• 3 of the safest ASX 200 dividend stocks in Australia
• Can Telstra Group shares keep soaring after hitting a 10-year high?

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 positions in and has recommended Telstra Group. 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.