The team at Morgans have updated their outlook on three well known ASX listed companies this week. 

Two have received hold recommendations while one has drawn a clear positive outlook. 

Here is the latest from the broker. 

ASX Ltd (ASX: ASX)

Morgans said that ASX has recently released its monthly trading activity report for June 2026. 

It was a mixed trading month overall for ASX, in our view, with higher cash markets activity (+54% volume on pcp), a downturn in raisings and stronger average daily futures/options contracts in June. Our FY27-FY28 EPS forecasts increased by ~+2% factoring in the recent trading activity. Our price target is increased to A$53.90 (from A$51.50). HOLD maintained.

ASX shares closed trading at $53.49 yesterday. 

PEXA Group Ltd (ASX: PXA)

PEXA Group has been drawing positive ratings from experts recently. 

However Morgans appears less optimistic. 

PEXA recently responded to a draft decision by the NSW pricing regulator (The Independent Pricing and Regulatory Tribunal) that would cut the fees it can charge for its dominant electronic property settlement platform by about 20% from July 2027. 

This would potentially reduce annual revenue by around $70 million.

Commenting on the release, Morgans said: 

The headline read-through from IPART’s draft report on proposed pricing changes for PXA is an anticipated reduction in revenue of A$70m (~20%) in year 1. We think a 20% hit to exchange revenue was much more punitive than consensus market expectations. Applying the cut in one year, rather than phasing it in over multiple years, adds to the disappointment. Our price target is reduced to A$9.35 (from A$14.23).

We Move PXA to HOLD. Proposed outcomes here are worse than expected, and this creates significant uncertainty around PXA’s future profit profile and its overall operating environment.

PEXA shares closed trading yesterday at $8.44 per share. 

Qantas Airways Ltd (ASX: QAN)

After struggling earlier this year due to global conflict and soaring oil prices, Morgans now sees a rebound in store for Qantas shares. 

The broker said Qantas’s post-COVID balance sheet strengthening and cost discipline have positioned it to absorb the current fuel cost shock and consumer softness with genuine resilience. 

We forecast 2H26 PBT to be down on pcp as fuel and economic conditions bite, with FY27 forecast to deliver a moderate uplift. We view FY27 as a transition year for Qantas with higher growth expected from FY28 onwards as oil prices, refining margins and demand normalise. Structural growth drivers (fleet renewal, Project Sunrise, Loyalty scaling toward FY30 target) remain intact.

Morgans has initiated coverage on Qantas shares with an accumulate rating and $11.50 price target. 

Qantas shares closed at $10.60 yesterday. 

The post Buy, hold or sell, PEXA, ASX and Qantas shares appeared first on The Motley Fool Australia.

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

Telstra Group Ltd (ASX: TLS) is one of those ASX dividend shares that many investors already know well.

But for investors thinking about passive income, does Telstra still have the right mix of cash flow, reliability, and yield to deserve a place in a long-term income portfolio?

In my view, the answer is yes.

A business people keep using

The reason I like Telstra for income is not just that it pays dividends. It is that the business sits behind a huge amount of daily activity.

Every time people use mobile data, stream content, run a business from a phone, process digital payments, work remotely, check maps, use apps, or stay connected while travelling, telecommunications infrastructure is doing part of the work.

That gives Telstra a useful role in the economy. It is not selling a product customers buy once and forget. It is providing connectivity that people and businesses keep using every day.

That does not make Telstra immune from competition. Mobile plans, customer churn, network investment, satellite internet, and regulation are all worth keeping an eye on. But I think the underlying demand for reliable connectivity is about as durable as it gets.

The yield looks attractive

Telstra shares are currently trading around $5.07.

According to CommSec consensus estimates, the company is expected to pay dividends per share of 21 cents in FY26 and 21.5 cents in FY27.

At the current share price, that implies forward dividend yields of around 4.1% and 4.2%.

It may not offer the highest yield available on the ASX, but I think income investors should be careful about chasing a bigger number. A slightly lower yield from a more dependable business can be far more useful than a larger yield that later gets cut.

A $10,000 investment at $5.07 per share would buy about 1,972 shares. Based on the FY26 forecast dividend, that holding could generate roughly $414 in annual dividend income. Based on the FY27 forecast, the income would be around $424.

That is before tax and any franking credits. That looks attractive to me, especially for a business with defensive characteristics.

Why I’d buy

I think Telstra’s appeal comes from the combination of everyday demand and improving focus.

The company has spent years simplifying itself, investing in its networks, and leaning into its strongest asset: connectivity. That may not sound exciting, but I think it can be valuable for passive income investors.

Telstra’s mobile network remains a major competitive advantage. Customers may look for value, but reliability, coverage, and speed still count. For households and businesses, losing connection is more than an inconvenience.

That gives Telstra pricing power that many companies would like to have.

There are risks. Capital expenditure is ongoing, competition remains active, and dividend growth is unlikely to be dramatic every year.

But I think Telstra offers something useful in an uncertain economic environment: a business built around a service that remains essential even when consumers are watching their budgets.

Foolish takeaway

I think Telstra shares are a buy for passive income.

The forecast yield is attractive, but the bigger appeal is the nature of the business behind it. Connectivity is now woven into work, payments, entertainment, travel, security, and everyday communication.

That gives Telstra a defensive quality I value.

The shares may not deliver explosive growth, and investors should still watch competition and network spending. But for those wanting ASX passive income from a business with steady demand, I think Telstra looks like a strong option to buy today.

The post Are Telstra shares a buy for passive income? appeared first on The Motley Fool Australia.

More reading

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• How much is needed in superannuation to target a $70,000 annual passive income?
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• If I invest $8,000 in Telstra shares, how much passive income will I receive in 2027?
• How much do I need in superannuation to receive $5,500 per month in passive income?

Motley Fool contributor Grace Alvino 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.

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.3% to 8,803.9 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 to open slightly lower

The Australian share market looks set for subdued session on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 3 points lower. In late trade in the United States, the Dow Jones is down 0.25%, the S&P 500 is down 0.3%, and the Nasdaq has dropped 0.75%.

Oil prices race higher

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good day of trade on Wednesday after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.9% to US$70.53 a barrel and the Brent crude oil price is up 3.1% to US$74.22 a barrel. This followed reports of attacks on tankers in the Strait of Hormuz.

Buy Netwealth shares

The team at Bell Potter continues to see value in Netwealth Group Ltd (ASX: NWL) shares. This morning, in response to a quarterly update, the broker has retained its buy rating and $30.00 price target on the investment platform provider’s shares. It said: “Our Buy rating is unchanged, and we upgrade our net flow estimates +8% FY27-29. Building in margin guidance prompts us to downgrade EPS -7%/-4% and we leave headroom on the FUA target. NWL is looking to replicate EPS growth. The mandate win is the first example of a catalyst, independent of any potential vendor attrition.”

Gold price softens

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft session on Wednesday after the gold price softened overnight. According to CNBC, the gold futures price is down 0.35% to US$4,153 an ounce. Rising oil prices have sparked fears of rising inflation and interest rate hikes.

A2 Milk shares go ex-dividend

A2 Milk Company Ltd (ASX: A2M) shares are going ex-dividend this morning and could trade lower. Last month, the infant formula company declared a fully franked special dividend of 28.8 cents per share. Based on its last close price of $7.37, this represents an attractive 3.9% dividend yield. Eligible shareholders can look forward to receiving this dividend later this month on 24 July.

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

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Motley Fool contributor James Mickleboro 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 Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.