Buy, hold, sell: South32, Australian Finance Group, Magellan shares

S&P/ASX 200 Index (ASX: XJO) shares are up 0.4% to 9,014.6 points on Thursday.

Let’s check out some new ratings on ASX shares today.  

Magellan Financial Group Ltd (ASX: MFG)

The Magellan Financial Group share price is $8.54, up 2.8% today and down 19% over 12 months. 

Morgans has an accumulate rating on this ASX 200 financial share after Magellan’s FY26 results.

The broker said: 

MFG’s group operating profit after tax (A$145m) was down 9% on the pcp (A$159m) and 2% above consensus (A$142m).

Guidance was the main factor weighing on the result, with management flagging numerous headwinds for FY27 — which shapes up as a consolidation year — alongside signs of a slowdown in Barrenjoey growth in 2H26 (despite otherwise impressive overall numbers).

Our price target falls from A$11.26 to A$10.25. While MFG faces some near-term pressures, we continue to believe the company is well positioned to drive medium-term growth.

South32 Ltd (ASX: S32)

The South32 share price is $5.19, up 0.7% today and up 97% over 12 months.

Morgans downgraded this ASX 200 mining share from accumulate to hold after South32’s FY26 report.

The broker said:

With S32’s share price outperforming even its pure-copper ASX peers year-to-date on larger cycle leverage, we downgrade our rating to HOLD (from Accumulate).

S32 delivered a broadly in line FY26 result, with FY27 guidance on unit cost and capex reflecting existing market expectations of continued cost pressure.

Don’t count on S32 returning a meaningful part of the Alcoa deal proceeds, with the company going as far as talking down its commitment to its ordinary dividend.

Similar to some of its peers, S32’s earnings have enjoyed a healthy upcycle, our concern is that it is starting to increasingly look factored in (while the company arguably swaps its earnings clout for a mid-cycle M&A war chest post Alcoa deal).

Australian Finance Group Ltd (ASX: AFG)

The Australian Finance Group share price is $1.52, up 2.2% today and down 43% over 12 months. 

Jonathan Tacadena from MPC Markets has a sell rating on this S&P/ASX 300 Index (ASX: XKO) financial share. 

On The Bull this week, Tacadena said:  

This mortgage broking group reported net profit after tax of $49 million in full year 2026, up 39 per cent on the prior corresponding period.

AFG grew its network to more than 4300 brokers. While profit growth looks good on paper, the company faces a difficult operating backdrop, in our view.

Australia’s property market is slumping, and the major banks recently confirmed residential mortgage applications had been significantly falling since the Federal Government’s budget in May. AFG’s earnings momentum appears difficult to sustain moving forward.

The valuation should be pricing in rising volume risk, not last year’s growth. We see more downside than upside.

The post Buy, hold, sell: South32, Australian Finance Group, Magellan shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Magellan Financial 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.