Buy, hold, sell: TechnologyOne, Pro Medicus, PLS Group shares

S&P/ASX 200 Index (ASX: XJO) shares rose 2.77% and produced total returns, including dividends, of 7% in FY26.    

Here, John Athanasiou from Red Leaf Securities shares his insights on three ASX 200 shares (courtesy The Bull). 

Are they a buy, hold, or sell in the new financial year? 

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price dropped 28% in FY26 to close out the year at $29.47.

ASX 200 tech shares were smashed between late August through to 30 March this year.

Since then, tech shares have recovered almost 20% while TechnologyOne stock has lifted 16%.

Athanasiou has a buy rating on TechnologyOne shares, commenting:

This technology company holds an embedded position in enterprise resource planning software across government, education and the corporate sector.

The business benefits from long duration contracts, expensive switching costs and a highly recurring revenue base underpinning strong earnings visibility.

The company has consistently delivered double-digit earnings growth, while maintaining disciplined cost control.

While the valuation remains elevated, it’s broadly supported by earnings visibility and structural digitisation tailwinds.

In a market favouring predictable cashflows and defensiveness, TechnologyOne remains a core long duration compounder.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price tumbled 29% in FY26 amid a broader healthcare sector rout. 

However, the ASX 200 healthcare share has been recovering ahead of its peers since hitting a 52-week low of $107.75 in February.

Pro Medicus shares are up 82% since that trough. The broader sector did not turn until 3 June but is rapidly rising.

Athanasiou explained his hold rating on Pro Medicus shares:

Pro Medicus remains a premium healthcare technology compounder with a dominant position in US medical imaging software.

The company exhibits strong operating leverage, minimal churn and structurally high returns on capital.

However, valuation is the binding constraint.

The market already embeds sustained high growth over an extended horizon, reducing the margin of safety.

PME remains a high quality hold, with upside dependent on continuing US market expansion and incremental large scale contract wins.

PLS Group Ltd (ASX: PLS)

The PLS Group share price soared 275% to close out FY26 at $5.02. 

PLS Group has reaped the rewards of strongly rebounding lithium prices over the past 12 months.  

Athanasiou has a sell rating on the ASX 200 lithium share, explaining:

PLS is a leading Australian lithium producer. Lithium remains structurally linked to electrification, but near term fundamentals are challenged by expanding supplies.

While PLS asset quality remains strong, earnings are highly leveraged to spot prices, generating volatility through the cycle.

Balance sheet strength provides a buffer, but doesn’t offset cyclical earnings pressure.

PLS remains a high risk recovery trade dependent on the timing of lithium re-balancing, with limited near term visibility.

The post Buy, hold, sell: TechnologyOne, Pro Medicus, PLS Group shares appeared first on The Motley Fool Australia.

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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 Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.