The team at Bell Potter has released updated guidance on Harvey Norman Holdings Ltd (ASX: HVN) and REA Group Ltd (ASX: REA) shares. 

The broker sees one as a clear buy with healthy upside, while the other is listed as a sell. 

Here is the latest on these retailers.

REA Group not out of the woods yet 

REA Group shares jumped 6% yesterday, however Bell Potter appears unconvinced of a long term rebound. 

Its share price remains down almost 33% in the last year. 

Bell Potter said REA’s final listings data point for FY26 capped off a strong final quarter for volumes. 

National new listings grew 13% for the month of June, supported by 3% and 9% growth in key Sydney and Melbourne markets respectively. Brisbane and Perth outperformed at 22% and 18%. The result lifts our expected FY26 listings to broadly flat from -1.3% previously, with R3m listings performance also strong at 11%.

Bell Potter has increased its price target  to $137 due to earnings estimate revisions and rolling the valuation forward to increasingly include FY28. However the broker maintains a sell rating for several reasons: 

• Higher expected RBA cash rates are forecast to weaken borrowing demand, reducing activity in the housing market.

• Recent government budget measures are expected to discourage property investment (particularly investors), weighing on house prices and listing volumes despite some support from owner-occupiers.
• Lower dwelling prices and fewer listings are expected to outweigh REA’s pricing (“buy yield”) benefits. 

Bell Potter’s updated target is roughly 14% below current levels. 

Healthy upside for Harvey Norman 

Harvey Norman shares have fallen 32% year to date, however Bell Potter is confident it can recover. 

Bell Potter said Harvey Norman concluded a challenging 2H26. 

While our FY26e estimates remain unchanged, we apply some conservatism to our forward estimates within our revenue assumptions in HVN’s Franchising and Retail divisions across all geographies. However, our estimates for the Property division remain largely unchanged as we view HVN’s prime position in Australia’s large format retail market given the sub-asset class continues to see highest rental growth in an under-supplied market.

The broker has slightly lowered its price target to $6.00 (previously $6.70) however has maintained its buy recommendation. 

From current levels, this indicates approximately 26% upside. 

We view FY27 as the cyclical low point for most retailers and see more leading indicators reflecting a tougher year led by the weak Consumer Confidence on a major household item in HVN’s key markets.

The post Buy, hold, sell: Harvey Norman and REA Group shares appeared first on The Motley Fool Australia.

More reading

• Brokers name 2 ASX dividend shares to buy with 4% to 7% yields
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Buy, hold, sell: L1 Long Short Fund, REA, Wesfarmers shares
• Experts name 3 big-name ASX 200 shares to sell

Motley Fool contributor Aaron Bell 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 Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) gave back its early gains to finish the day lower. The benchmark index edged a fraction lower to 8,840.7 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to fall on Friday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 26 points or 0.3% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.3%, the S&P 500 is down 0.6%, and the Nasdaq is 1.5% lower.

Oil prices ease

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 0.7% to US$79.05 a barrel and the Brent crude oil price is down 0.75% to US$84.32 a barrel. This is despite rising tensions between the US and Iran.

Buy Netwealth shares

Bell Potter thinks Netwealth Group Ltd (ASX: NWL) shares are good value. In response to the investment platform provider’s quarterly update, the broker has retained its buy rating and $30.00 price target. It said: “Our Buy rating and target price are unchanged. NWL remains on track to deliver free cash flow margins in-line with 5Y historical standards, balancing growth investments and profitability. Market share cadence and the current multiple make this attractive.”

Gold price sinks

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price sank overnight. According to CNBC, the gold futures price is down 1.8% to US$3,979 an ounce. Increasing US interest rate hike bets are weighing on the precious metal.

Buy Harvey Norman shares

Bell Potter sees a lot of value in Harvey Norman Holdings Ltd (ASX: HVN) shares. This morning, the broker has retained its buy rating on the retail giant’s shares with a trimmed price target of $6.00. This implies potential upside of 26%. In addition, a dividend yield greater than 6% is expected in FY 2027. It said: “While our views on FY27e sees challenging conditions for retailers with a recovery weighted to 2H, on our revised estimates HVN continues to trade at a 1-year forward P/E of ~13x (as per BPe) which appears attractive.”

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

More reading

• Brokers name 2 ASX dividend shares to buy with 4% to 7% yields
• Buy, hold, sell: Harvey Norman and REA Group shares
• Here are the top 10 ASX 200 shares today
• AMP expects higher 1H26 earnings on China growth
• Netwealth delivers record FUA in June 2026 quarter

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Harvey Norman and Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A new report from Kerry Craig, Global Market Strategist at J.P. Morgan Asset Management has reinforced the importance of targeting growth opportunities outside Australia. 

It’s very normal for investors to focus on equities in their own country, but Australians who only invest in the domestic market could be missing out on emerging themes and sectors internationally. 

Home bias 

According to the report, Australia represents just 1.4% of the global share market. 

However, many local investors allocate a large share of their portfolios to ASX-listed companies. 

This tendency is known as home bias and, while it’s understandable, it can also be limiting.

Investing close to home can feel reassuring: familiar brands, known businesses and local news you can follow. But familiarity is not the same as opportunity. Some of the world’s major growth themes are playing out in markets, sectors and companies that many Australian portfolios may not fully capture.

Craig also highlighted that being a small share of the global market wouldn’t matter as much if Australia was consistently outperforming. 

However, it made 9.4% annualised returns over the past 10 years, which sounds good until you realise that, over that same time period, the US returned 15.5% and Japan 14.5%. 

Major growth themes are global not domestic 

Additionally, it’s important to remember that buying equities is buying expected future earnings growth, and by focusing on Australia you could be missing out on some of the major growth themes in investing today. 

While the Australian market might have ridden high on the mining boom and trade links with China in the past, it has limited exposure to some of today’s key growth drivers.

Take Artificial Intelligence. The opportunity is not only in US technology companies, but in the infrastructure behind them, including semiconductors, memory, data centres, power generation and electricity networks. Much of that spending flows through global supply chains, including markets like Korea, Japan and Taiwan, while Australia has only limited exposure.

Looking past AI 

While AI is perhaps the most obvious example, it is far from the only growth opportunity sitting outside the Australian market. 

For example, Craig highlights that European countries are spending heavily to secure reliable and sustainable energy supplies. 

At the same time, geopolitical tensions are driving higher defence spending across Europe.

As well as missing out on growth opportunities, investors should be aware the Australian share market is relatively concentrated in financials like major banks, and materials/mining. There is nothing inherently wrong with these sectors or businesses, but a well-constructed portfolio often seeks to diversify its sources of return across industries, economies, business models and growth drivers.

How to target international shares

For investors seeking exposure to international equities, there are numerous ASX ETFs that track other markets. 

For example, the Betashares Capital – Asia Technology Tigers ETF (ASX: ASIA) targets Asian technology companies. 

It has risen more than 60% in the last 12 months. 

Another popular fund is the BetaShares Nasdaq 100 ETF (ASX: NDQ) which targets the largest non-financial companies listed on the Nasdaq market.

For European exposure, there is the BetaShares Europe ETF – Currency Hedged (ASX: HEUR) which provides exposure to Europe’s largest companies that generate a substantial portion of their revenues outside the Eurozone.

The post Why it’s vital for investors to look to international shares for growth: Expert  appeared first on The Motley Fool Australia.

More reading

• Own NDQ, GAME, or other Betashares ASX ETFs? It’s pay day for you!
• 3 amazing ASX ETFs I’d buy this month
• SK Hynix IPOs in the US. Here’s what that means for ASX investors
• Analysts are still bullish on SpaceX shares after Nasdaq inclusion. Here is what that means for ASX investors
• 3 ASX ETFs with strong long-term growth potential

Motley Fool contributor Aaron Bell has positions in BetaShares Europe ETF – Currency Hedged, BetaShares Nasdaq 100 ETF, and Betashares Capital – Asia Technology Tigers Etf. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.