• Buy, hold, sell: Cleanaway Waste Management, New Hope Corporation, CSL shares

    A financial expert or broker looks worried as he checks out a graph showing market volatility.

    S&P/ASX 200 Index (ASX: XJO) shares are down 0.6% to 8,791.6 points on Tuesday.

    Among the 11 market sectors, consumer staples is in the lead today, up 1.2%.

    The materials and miners sector is the laggard, down 1.8%. 

    Let’s check out some new ratings on three ASX 200 shares.

    CSL Ltd (ASX: CSL)

    The CSL share price is $197.46, up 1.8% today and down 9% over 12 months. 

    Ord Minnett has an accumulate rating on this ASX 200 healthcare share. 

    In a note published yesterday, the broker said: 

    We expect CSL Behring’s immunoglobulin (Ig) franchise can deliver stronger growth. We assume 7% per annum Ig revenue growth persisting from FY27 until FY29. This would see Ig revenues recover to be broadly in-line with the market.

    We also assume a 50 basis point improvement in CSL Behring’s gross margin in FY27 from increased plasma yields, a stabilisation in inventory write-downs, and declining cost per litre as donor fees stabilise.

    CSL’s earnings should also be supported by continued cost discipline and share buybacks. We note that CSL has guided to a $50 million headwind to FY27 NPAT from currency.

    Cleanaway Waste Management Ltd (ASX: CWY)

    Cleanaway Waste Management shares are $2.99, up 0.6% on Tuesday and up 8% over 12 months.

    Morgans has downgraded Cleanaway Waste Management shares from buy to hold.

    In a note released yesterday, Morgans said:

    CWY today announced that it had executed a takeover Scheme Implementation Deed (SID) with EQT.

    Completion is targeted by the end of March 2027.

    Today’s strong rise in CWY’s share price has compressed its total potential return to single digits (albeit double-digit on an annualised basis). Hence, we downgrade from BUY to HOLD.

    The stock may remain attractive for income-oriented special situations investors given the potential for a special dividend prior to completion.

    New Hope Corporation Ltd (ASX: NHC)

    The New Hope Corporation share price is $6.11, down 1.2% today and up 54% over 12 months. 

    Bell Potter has a sell rating on this ASX 200 coal share. 

    The broker has a 12-month price target of $5.30 on New Hope shares.

    In a new note yesterday, analyst James Williamson said:

    NHC has entered a binding Scheme Implementation Deed to acquire the ~74% of Malabar Resources it does not already own via a scheme of arrangement, with Malabar shareholders to receive 0.50 new NHC shares per share held.

    We maintain a Sell recommendation. Our $5.30/sh TP already incorporates an 11% premium to our sum-of-the-parts valuation, reflecting NHC’s leverage to global energy security themes amplified by recent geopolitical tensions.

    We expect energy markets will normalise over the near-term.

    While the Malabar acquisition will materially strengthen NHC’s long-term production outlook, Maxwell’s longwall ramp-up to 5Mtpa saleable production brings elevated operational complexity over the medium-term.

    The post Buy, hold, sell: Cleanaway Waste Management, New Hope Corporation, CSL shares appeared first on The Motley Fool Australia.

    Wondering where to invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See the 5 Stocks

    * Returns as of 6 March 2025

    More reading

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

  • 3 ASX 200 shares to buy and why: Ord Minnett

    Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

    S&P/ASX 200 Index (ASX: XJO) shares are 0.7% lower at 8,785.6 points on Tuesday.

    Ord Minnett has published new notes on three ASX shares today.

    The broker reckons all of them present good buying opportunities. Here’s why.

    Fortescue Ltd (ASX: FMG)

    The Fortescue share price is $15.27, up 0.2% today and down 24% over 12 months. 

    Ord Minnett has a buy rating and a 12-month price target of $19 on this ASX 200 mining share. 

    This implies a potential 24% upside ahead.

    In a new note, the broker explained its buy recommendation on Fortescue shares:

    Fortescue (FMG) provided a preliminary September quarter update that was weaker-than-anticipated.

    Iron ore shipments of 46.8 million tonnes (Mt) over the quarter was down 6% year-on-year and below market expectations for 49.7Mt.

    While maintenance activity and planned port shutdowns affected shipments, the larger issue remains the unresolved iron ore contract negotiations with the China Mineral Resources Group (CMRG), which meant that sales volumes were even softer at 42.9Mt, as the state-backed buyer restricted deliveries of FMG cargoes.

    The key issue in negotiations with CMRG appears to be long-term offtake pricing.

    We assume FMG can conclude its negotiations with CMRG by the end of CY26, but if negotiations drag on, management may need to alter mine plans, adjust stockpiling strategies and reconfigure parts of its supply chain to accommodate lower sales volumes.‍

    Resmed CDI (ASX: RMD)

    The Resmed share price is $34.34, up 0.8% today and down 16% over 12 months. 

    Ord Minnett has a buy call and a $36.20 price target on this ASX healthcare share. 

    This suggests a potential 5% upside ahead.

    The broker commented:

    We expect the capital management program to support the shares and earnings. RMD has flagged more than US$1.85 billion will be returned to shareholders through share buybacks and dividends during FY27.

    Its sleep business we expect will continue to grow ahead of market, and margins will return to expansion as productivity efficiencies and pricing take effect.

    Further, RMD’s forward price-earnings multiple (circa 18x consensus) is not demanding against our EPS growth estimate of 8% in FY27 (in US dollars).

    ARB Corporation Ltd (ASX: ARB)

    The ARB share price is $16.97, down 0.6% today and down 53% over 12 months. 

    Ord Minnett has a buy rating and a $28 price target on this ASX 200 consumer discretionary share.

    This implies a potential 65% upside ahead.

    The broker said:

    ARB-relevant vehicle sales declined 14.4% on the pcp in Sep-26. Key ARB Toyota vehicles were mixed — HiLux sales declined 11.7% and the LandCruiser declined 59.4%, while the LandCruiser Prado grew 6.4%.

    The Ford Ranger, another key ARB model, grew 4.0% and was the highest-selling vehicle in the month.

    ARB expects FY27 key vehicle sales to be broadly in line with FY26, with upside from improved Toyota supply.

    With 1Q27 key model sales 16.3% below the pcp, this requires a recovery over the remainder of the year.

    Toyota’s August 2026 data showed further improvement in exports to Oceania, and we continue to forecast a return to earnings growth in FY27, assisted by improved supply, strong gross profit margins and continued offshore expansion.

    The post 3 ASX 200 shares to buy and why: Ord Minnett appeared first on The Motley Fool Australia.

    Wondering where to invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See the 5 Stocks

    * Returns as of 6 March 2025

    More reading

    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 ARB Corporation and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended ARB Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Why I’d buy Zip and DroneShield shares today

    Woman holding her glasses and looking at her laptop.

    I’m always interested in companies with the potential to become much bigger businesses over time.

    And right now, there are two ASX shares that I think have particularly exciting growth prospects.

    Here’s why I would be happy buying them today.

    Zip Co Ltd (ASX: ZIP)

    Zip is a share I think has plenty of growth ahead of it, especially in the United States.

    The buy now, pay later provider has established a growing presence in the American payments market, giving it access to an enormous pool of potential customers and merchants.

    What I like is how much more business Zip could generate through its existing platform. As it attracts new merchants and increases transaction volumes, there is an opportunity to generate additional revenue without costs increasing at the same rate.

    That could support considerable earnings growth over the next few years. And I think the current valuation makes that opportunity worth considering.

    With Zip shares around $2.15, they are trading on a PE ratio of 14 times consensus FY27 earnings, falling to less than 10 times FY29 earnings. I think that could prove very cheap if the company delivers on market expectations.

    Of course, there are challenges. Higher interest rates could make funding more expensive and put pressure on Zip’s margins. They could also place additional strain on customers, potentially leading to higher bad debts.

    That makes disciplined lending particularly important as the company expands. But if Zip can keep growing its share of the enormous US market while maintaining credit quality, I think shareholders could be rewarded handsomely.

    DroneShield Ltd (ASX: DRO)

    DroneShield is another ASX share I would buy, although I think it requires considerable patience. The counter-drone technology company’s shares are trading around $1.48 on Tuesday, having fallen sharply from their previous highs.

    That weakness comes despite what I believe is an increasingly important long-term market opportunity. Drones have become a major part of modern warfare, and governments are investing in technology capable of detecting and defeating them.

    DroneShield has developed a range of systems designed to address these threats, and its growing presence in international defence markets could support substantial sales growth.

    The opportunity now is to turn its expanding sales pipeline and procurement agreements into meaningful contracts.

    Valuation is a challenge, with DroneShield trading on a very high forward PE ratio. But I don’t think that is the best way to assess the company at this stage.

    In some ways, DroneShield reminds me of Zip shares during its earlier rapid-growth phase, when building the business and expanding its market presence were major priorities.

    What I want to see is DroneShield developing the scale to convert growing demand into substantial, sustainable profits.

    That is far from guaranteed. Defence orders can be unpredictable, competition is increasing, and the company still has execution and regulatory uncertainties to resolve. Nevertheless, I think the potential rewards justify considering the shares as a higher-risk investment.

    Foolish takeaway

    I would be happy buying both Zip and DroneShield shares today.

    There is plenty that could go wrong, but I think both companies have opportunities to become much larger businesses over the coming years.

    For investors comfortable with volatility and prepared to take a long-term view, I believe they could deliver excellent returns.

    The post Why I'd buy Zip and DroneShield shares today appeared first on The Motley Fool Australia.

    Wondering where to invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See the 5 Stocks

    * Returns as of 6 March 2025

    More reading

    Motley Fool contributor Grace Alvino has positions in DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield. 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.