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.

More reading

• Westpac vs AMP: Which ASX financial stock is best for retirees?
• Here are the top 10 ASX 200 shares today
• Should I buy BHP shares after its update?
• BHP Q1 update: steady guidance, stronger prices, focus on safety
• Buy, hold, sell: Santos, BHP, Telstra shares

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.

Cochlear Ltd (ASX: COH) shares are up around 1% in early morning trade at $140.22 a piece.

This morning’s increase means the shares have now climbed 9% higher over the past week alone, and they’re up 56% from a 10-year low recorded in late April.

It’s certainly a step in the right direction, and the increase is great news for Cochlear investors. But the shares are still around 51% lower than a year ago, so there is still a long way for them to go before they return to the highs recorded in late 2025. 

But what about a more achievable target? 

Cochlear shares are slowly creeping back up to $150. Can they break that barrier?

Here’s what the experts tip next

Market Index data shows that all brokers agree to a hold rating on Cochlear shares. The average target price is $131.37 a piece, which implies around a 6% downside at the time of writing.

TradingView data shows something similar. The majority (16 out of 18) of analysts have a hold rating on the shares. Another two rate Cochlear shares as a sell.

The average target price is a little higher, at $138.53, but that still implies around a 1% downside at the time of writing.

But there are some more bullish experts who think that it’s possible for Cochlear shares to break past $150 over the next 12 months. The maximum target price is actually much higher than the $150 level, at $165 each, which implies a potential 18% upside from the trading price at the time of writing.

The team at Morgans retained a hold rating on the healthcare company after its FY26 results announcement. The team said that while the result was mixed, underlying NPAT came in ahead of forecasts and revenue was broadly in line. Cochlear’s FY27 NPAT guidance of $330 million to $350 million implies only modest growth and no material turn in earnings.

What could drive Cochlear shares higher this year?

It’s no secret that 2026 has been a difficult year for the medical hearing implant device company. Cochlear has suffered from several strong headwinds, including a sector-wide rotation away from ASX healthcare shares this year. 

But the company’s latest result does suggest that business is getting back on track.

Looking ahead, I still see Cochlear as a strong, globally dominant business with its long-term outlook intact. I think the steep sell-offs this year were overdone.

The company’s AGM next week could help provide more insight into how the company is tracking so far in FY27. And in the absence of bad news, I think Cochlear shares could keep climbing higher past $150 in the coming months.

The post Cochlear shares jump 9% in a week: Can they break past $150? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 3 ASX shares I think could have a brilliant 2027
• AGL, Cochlear, WiseTech shares: Buy, hold, sell
• 3 defensive ASX shares I’d buy in a market sell-off
• 5 leading ASX shares I’d buy and hold until 2040

Motley Fool contributor Samantha Menzies 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 Cochlear. The Motley Fool Australia has recommended Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A $150,000 annual passive income would finance an excellent retirement lifestyle. 

And it’s more achievable than you’d think.

You could rent out your assets, invest in property, try your hand at e-commerce, or, my personal favourite, you could use your superannuation balance to invest in some dividend-paying ASX shares.

By investing your superannuation into income-focused shares, you can create a steady stream of passive income in retirement, especially once you transition your super into the tax-free pension phase.

Here’s how it works.

While working, investment earnings and dividends inside super are taxed at a concessional rate of 15%. Once you retire and convert your super into an account-based pension (retirement phase), investment earnings and dividend income become 100% tax-free.

But the question is, how much do you need in your super to be able to earn this level of passive income when you transition to your pension phase?

Let’s take a look.

What superannuation balance do I need to generate $150,000 in annual passive income?

To calculate the amount of superannuation you need to earn $150,000 in passive income every year, you’ll need to divide your annual passive income by your portfolio’s dividend yield.

The only issue is the answer can vary significantly depending on what that yield is.

The general rule of thumb is that the passive income increases in line with your dividend yield. 

This means that a portfolio with a dividend yield of say, 5%, would only need to be half the size of one with around a 2.5% dividend yield, to earn the same annual passive income. 

I’d like my portfolio to yield around the ASX average. What does that look like?

The S&P/ASX 200 Index (ASX: XJO) provided an average dividend yield of 4.2% in FY26.

In order to generate a $150,000 passive income off a 4.2% yielding portfolio, you’d need a superannuation balance of around $3.6 million.

There are several ASX 200 shares around this level so your options are broad. 

I’d look at defensive shares which can help ward off volatility elsewhere in a portfolio. Telstra Group Ltd (ASX: TLS) and Inghams Group Ltd (ASX: ING) both have strong defensive qualities and all yield around the 4.2% level, at the time of writing.

ASX bank shares are another good option. Three of the big four major banks, ANZ Group Holdings Ltd (ASX: ANZ), National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC), all yield around the 4.2% level, at the time of writing.

I think this amount of superannuation is out of reach. What are my other options?

As I mentioned earlier, as your yield goes up, the superannuation balance you need goes down.

So a $3.6 million superannuation balance might be out of reach for many Australians, but you can still earn the same amount off a lower balance.

On a 5% yielding portfolio, you can generate $150,000 per year in passive income off a $3 million superannuation balance.

Raise that to 6% and you’d need closer to $2.5 million.

Hike that again closer to 7% and you could earn $150,000 off around $2.1 million.

You can raise your overall portfolio yield even higher, to 8% or even far beyond, but it’s important to note that generally, the higher the yield, the riskier that stock is.

The post How much superannuation is needed to generate $150,000 per year in passive income? appeared first on The Motley Fool Australia.

More reading

• Plan on retiring early? I’ve found 5 dividend stocks that have what it takes to pay you for life
• Wesfarmers shares rebound 11%: Can they keep climbing?
• Westgold Resources: Q1 FY27 earnings update
• Transurban posts September quarter 2026 traffic lift as project openings boost growth
• Should I buy NEXTDC shares after today’s 45% crash?

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.