On Friday, the S&P/ASX 200 Index (ASX: XJO) had a strong session and charged higher. The benchmark index rose 0.5% to 8,806 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set for a positive start to the week following a solid session on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.5% higher. In the United States, the Dow Jones rose 0.3%, the S&P 500 climbed 0.4%, and the Nasdaq pushed 0.3% higher.

Oil prices ease

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices eased on Friday night. According to Bloomberg, the WTI crude oil price was down 0.95% to US$71.41 a barrel and the Brent crude oil price was down 0.4% to US$76.01 a barrel. This couldn’t stop oil prices from recording a decent weekly gain amid rising tensions in the Middle East.

Buy Mesoblast shares

Mesoblast Ltd (ASX: MSB) shares could be in the buy zone according to Bell Potter. This morning, the broker has essentially upgraded the biotechnology company’s shares to a buy rating (from speculative buy) with a $4.45 price target. This is almost double its current share price. It said: “MSB is expected to commence submission of the various modules of the Biological Licence Application for Rexlemestrocel-L in heart failure and commence recruitment of the adult study in GvHD (for Ryoncil). We expect MSB will also engage in preliminary discussions with distributors for Rexlemestrocel-L in the chronic lower back pain indication, ahead of the phase 3 readout in mid CY27. Investment thesis: TP $4.45 (unchanged) There are no changes to earnings and we retain our $4.45 target price and Buy rating. As MSB is generating strong revenue growth the Speculative risk rating is no longer warranted.”

Gold price falls

It could be a soft start to the week for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price softened on Friday night. According to CNBC, the gold futures price was down 0.65% to US$4,113.7 an ounce. Increased interest rate hike bets have been weighing on the precious metal.

Buy Aroa shares

Bell Potter also sees major upside in Aroa Biosurgery Ltd (ASX: ARX) shares at current levels. This morning, the broker has retained its buy rating and $1.09 price target on the biotechnology company’s shares. It commented: “Beyond the clinical readouts, 2H CY26 should bring further clarity on the reimbursement environment. Key watchpoints should include the final PFS and OPPS rules following CMS’s proposal to retain the current flat-rate methodology for CY27, while any revised DFU/VLU LCDs could further raise the evidence threshold and narrow the reimbursable product set.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.

CSL Ltd (ASX: CSL) shares finished last week on a disappointing note, falling 2% on Friday to close at $122.89.

The decline interrupted what had been an impressive recovery, with the ASX healthcare stock climbing 24% over the past month.

Even so, it’s important to keep that rally in perspective. CSL shares remain down around 29% year to date and have lost roughly half their value over the past 12 months.

So, is this just a short-lived bounce, or could the recovery have further to run?

Why are CSL shares recovering?

After one of the steepest sell-offs in the company’s history, investors appear to have concluded that much of the bad news is already reflected in the share price.

CSL spent decades earning a reputation as one of the ASX’s highest-quality businesses, consistently delivering earnings growth and rewarding long-term shareholders. Its leadership in plasma-derived therapies and strong global footprint made it a favourite among growth investors.

That narrative unravelled for CSL shares over the past year.

A series of earnings downgrades, leadership changes, and approximately US$5 billion in non-cash impairments related to the CSL Vifor acquisition severely damaged investor confidence and sent the shares tumbling.

However, bargain hunters have started returning as the valuation became increasingly difficult to ignore.

Competitive advantages remain

Importantly, the fundamentals of the business remain intact. CSL is still the world’s second-largest plasma-derived therapies company, operating in a highly regulated industry with significant barriers to entry.

Its global plasma collection network, manufacturing expertise, and long-standing customer relationships continue to provide competitive advantages that are difficult for rivals to replicate.

While earnings growth has slowed, the business is still expanding.

Management expects FY26 revenue of around US$15.2 billion and underlying net profit after tax and amortisation (NPATA) of approximately US$3.1 billion on a constant currency basis.

The biggest challenge for CSL shares remains its US immunoglobulin business within CSL Behring, where competitive pressures continue to weigh on margins and growth expectations.

What do the brokers think?

Broker sentiment has become more balanced as CSL shares recover, although opinions differ on just how much upside remains.

Morgans is among the more optimistic brokers. It has a buy recommendation and a price target of $147.59, implying meaningful upside from current levels.

Macquarie Group Ltd (ASX: MQG) is more cautious. The broker has a neutral rating and a $114 price target, citing uncertainty surrounding CSL’s core plasma and albumin businesses, as well as ongoing competitive pressures.

According to TradingView data, analyst sentiment remains mixed. Of the 18 analysts covering CSL, 10 have a hold recommendation, while the remaining eight rate the healthcare giant as either a buy or strong buy.

The consensus price target sits at $140.15, suggesting around 14% upside over the next 12 months.

Forecasts vary widely, however. The most bearish analyst expects CSL shares to fall to around $104.55, while the most bullish believes they could climb as high as $199.68.

The post Where could CSL shares go next? Here’s what brokers are predicting appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther 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 and Macquarie Group. The Motley Fool Australia has recommended CSL and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Leading blue-chip shares like Wesfarmers Ltd (ASX: WES) are a popular choice among passive income-seeking investors.

The retail conglomerate has a highly diversified portfolio with exposure to some of Australia’s strongest retail brands, including Kmart and Bunnings. The company also has operation office supplies, health and wellbeing, industrials, chemicals, energy, and even more.

As a retail company, Wesfarmers is a classic cyclical stock, but its highly diversified portfolio means it also has some strong defensive qualities.

This year is a great example of the peaks and troughs that a cyclical stock like Wesfarmers can travel through.

Wesfarmers shares have come off the boil in February as Australians tighten their purse strings and prepare for ongoing instability. But then signs of some recovery, forecasts of interest rate cuts and softer-than-expected inflation figures saw the shares swing the other way very quickly. 

In mid-May Wesfarmers shares started rebounding, and at the time of writing the shares are trading at one of the highest levels seen since October last year.

That’s one of the benefits of cyclical stocks. They tend to outperform during economic recoveries.

Another benefit of Wesfarmers shares is the company’s sheer size and market dominance. At the time of writing, the business is the 6th largest company listed on the ASX with a market cap of around $102 billion. 

The company is well-established and financially sound with a history of reliable growth and stability. 

All these factors combined mean the company can pay its shareholders reliable and consistent passive income.

But what exactly does that passive income look like?

How many Wesfarmers shares can I get for $3,000?

At the time of writing, Wesfarmers shares are trading at $89.91 each. That means a $3,000 investment will buy you around 33 shares.

What dividend does Wesfarmers pay its shareholders?

Wesfarmers pays its shareholders two fully-franked dividend payments per year, payable in March and October. 

In March, Wesfarmers paid its investors an interim dividend of $1.02 per share.

And as the company’s earnings climb, its payout is expected to rise too.

Analysts tip Wesfarmers to pay an annual $2.13 dividend per share for FY26, and then $2.31 in FY27.

Based on the current $89.91 share price, that translates to a forward dividend yield of around 2.4% for FY26 and roughly 2.6% in FY27.

So, what’s the estimated passive income for FY27?

Using the estimated payout figures above, we can calculate roughly how much income to expect from a $5,000 investment in Wesfarmers shares.

If the conglomerate pays the expected $2.13 per-share dividend in FY26, your 33 shares would generate $70.29 in passive income.

Assuming Wesfarmers then pays the forecasted $2.31 dividend in FY27, those 33 shares would generate another $76.23 in passive income for the year.

That’s some great passive income!

The post If I invest $3,000 in Wesfarmers shares, how much passive income will I earn in FY27? appeared first on The Motley Fool Australia.

More reading

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• Which is the best buy, Coles shares or Wesfarmers shares?
• How to go from zero to $50,000 with ASX shares
• How much do I need in my superannuation to get $52,000 per year in passive income?
• Wesfarmers shares are closing in on record highs. Buy, hold or sell?

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