S&P/ASX 200 Index (ASX: XJO) shares are down 0.4% to 8,777.5 points on Thursday.

This week, brokers downgraded four ASX shares and recalculated their 12-month price targets on them.

Let’s check them out.

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo Interactive share price is $6.31, down 14.3% today.

Over the past six months, this ASX 200 consumer discretionary share has fallen 44%.

Morgan Stanley downgraded Jumbo Interactive shares to a hold rating yesterday.

The broker slashed its 12-month price target from $14.50 to $8.40.

This still implies a big potential upside of more than 30% ahead.

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is 82 cents, down 5.2% today.

In the calendar year to date (YTD), this ASX energy share has fallen 30%.

Oil prices have retreated to pre-war levels after the US and Iran signed an interim peace deal.

Morgans downgraded Beach Energy shares to a sell rating this week.

The broker said:

After downgrading our Q4 estimates for daily production rates, we see potential for BPT to fall just short of its FY27 group production guidance.

While BPT’s share price has already been under pressure, its earnings outlook has declined at a faster rate, with its forward EV/EBITDA actually rising.

The broker cut its 12-month price target from $1.10 to 81 cents.

This suggests the stock is already fully priced.

Amcor CDI (ASX: AMC)

The Amcor share price is $60.94, up 4% today.

Over the past month, this ASX 200 materials share has ripped 11% higher.

Morgans downgraded Amcor shares from a buy to an accumulate rating this week.

The broker explained:

Following its merger with Berry Global in April 2025, AMC identified a non-core portfolio of ~US$2.5bn in revenue.

These lower-growth or lower-margin businesses where AMC lacks scale or leadership positions are expected to be divested over time via cash sales or joint ventures/partnerships.

While there is a range of scenarios that can play out, using conservative assumptions, we estimate the combined non-core portfolio could be worth ~US$1.8bn.

To date, AMC has reached agreements to sell six businesses for a combined value of ~US$500m.

AMC plans to use proceeds from non-core asset sales to reduce leverage, which stood at 3.8x at the end of 3Q26.

While management expects leverage to end FY26 at 3.4-3.5x, the stretched balance sheet remains a key investor concern.

Morgans kept its 12-month price target of $65.40, indicating 7% potential upside ahead.

Centuria Capital Group (ASX: CNI)

The Centuria Capital share price is $2.04, up 1.8% today and down 0.3% over six months.

Centuria Capital Group is a funds manager that specialises in property investment and investment bonds.

MA Financial Group downgraded the ASX real estate share to a hold recommendation on Tuesday.

The broker has a 12-month price target of $2.18.

This suggests a potential 7% upside ahead.

The post Downgrade alert! 4 ASX shares re-rated by experts this week appeared first on The Motley Fool Australia.

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

Yesterday, mortgage holders and ASX share investors received a mixed message on Australia’s inflation rate.

On the positive side of the scale, the ABS reported that the Consumer Price Index (CPI) increased by 4.0% in the 12 months to May. That’s down from the 4.2% increase in the inflation rate for the 12 months to April.

On the negative side of that scale, the ABS revealed that trimmed mean inflation, which takes out certain volatile items (like fuel), increased to 3.6%. That’s up from 3.4% in the 12 months to April and well above the RBA’s 2% to 3% target range.

That’s important for ASX share investors and mortgage holders hoping for interest rate relief, as the trimmed mean number is the RBA’s preferred gauge.

As you’re likely aware, Aussies have already had to contend with three interest rate increases from the central bank in 2026. While the RBA kept rates on hold at 4.35% at its last meeting on 16 June, this still sees the official interest rate back at their 2024 peak, and matching the highest level since 2011.

So, what can we expect from interest rates now?

What the experts are saying on the inflation rate and the RBA

Commenting on the latest inflation rate numbers, Ebury economist Anthony Malouf said, “May CPI data was weaker than expected at the headline level… However, the headline figure is heavily distorted by the ongoing unwind of automotive fuel prices, which have fallen over the past two months.”

As for what this might mean for Australia’s interest rates, Malouf said:

More concerning for the RBA, trimmed mean inflation surprised to the upside, rising 0.4% MoM with the annual rate lifting to 3.6% from 3.4% in April, suggesting underlying inflation continues to firm…

We maintain our view that the cash rate remains on hold at 4.35% through 2026 and into 2027.

CreditorWatch chief economist Ivan Colhoun has a more hawkish view on what we might expect from the RBA’s rate-setting path.

According to Colhoun:

There was some good news in today’s CPI release with the first reports of some price falls as fuel surcharges were reduced…

However, that still leaves Australia with a labour market inflation problem, with the recent 4.75% national wage case decision likely to sustain price rises at rates nowhere near consistent with the RBA’s 2.5% aims. That suggests the Bank isn’t finished tightening as yet.

Connecting the dots, Colhoun advised mortgage holders and ASX investors to brace for another rate hike towards the end of the year.

He concluded:

My base case remains of a continuing slow, elongated tightening cycle in Australia, underpinned by the global AI, defence and renewables investment boom, with mining also benefiting. Further tightening remains a significant risk. My expectation is the RBA will continue to observe inflation and the economy for a while longer and next tighten in November.

And we’ll leave off with BNY APAC macro strategist, Wee Khoon Chong, who said the latest inflation rate data leaves the door open for another RBA rate hike in 2026.

Chong noted (quoted by the Australian Financial Review):

Markets appear too complacent in assuming the current tightening cycle has peaked. The data is unlikely to shift the RBA from its current wait-and-see stance in the near term.

However, the firmer core inflation reading reinforces our view that further policy tightening remains possible before year end.

Stay tuned!

The post Buying ASX shares or paying off a mortgage? Here’s what the inflation rate means for RBA interest rate hikes appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 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.

Looking for some investment options? Well, Morgans has just given its verdict on these ASX shares.

Is it bullish or bearish? Let’s see what the broker is saying about them:

Astron Ltd (ASX: ATR)

Morgans is a fan of this mineral sands and rare earths company and has named it as a (speculative) buy with a 90 cents price target. This implies potential upside of 55% for investors from current levels. It commented:

ATR’s flagship Donald Project is shovel-ready and on track for a Phase 1 FID in the Sept-Q 2026, with project financing and HMC offtake the final gating items. A newly released Phase 2 study and JV partner Energy Fuels’ rapid US rare earth processing build-out reinforce the long-term upside of this high-quality, ex-China critical minerals developer. Maintain SPECULATIVE BUY rating with a A$0.90ps target price.

Baby Bunting Group Ltd (ASX: BBN)

The broker thinks a compelling entry point has arrived for investors to accumulate this baby products retailer’s shares. It has a price target of $1.70 on its shares, which implies potential upside of 20% for investors from current levels.

Morgans believes at under 9x earnings, this ASX share looks good value. It said:

BBN reported a weaker than expected trading update, downgrading its pro-forma NPAT by ~11% at the midpoint of guidance. The downgrade was driven by softer sales, particularly in the 4Q, and increased supply chain costs. Our price target lowers to $1.70 (from $1.79), and we maintain our ACCUMULATE rating. Despite a softer consumer environment, we see the strength of the refurbished store program likely to underpin earnings growth in FY27. Trading at <9x PE, we see the current price as a compelling entry point to accumulate.

Tasmea Ltd (ASX: TEA)

Morgans has downgraded this specialist maintenance services provider’s shares to an accumulate rating with a $9.80 price target (offering 5% upside). It made the move after the ASX share recorded very strong gains over the past month. The broker adds:

Hot-on-the-heels of the Maxim acquisition announced earlier this month, TEA has entered into an agreement to acquire JPS Group, a specialist integrated services provider to [the] energy sector, for $50m upfront (5x FY26 EBIT) or up to $75 million inclusive of all earn-outs (7.5x FY26 EBIT or just 6.2x $12m maintainable EBIT).

This adds scale and an important growth lever to the underperforming Mechanical division, with JPS expected to double revenue by FY29. For the base business, FY26 guidance of $117m EBIT and $72.5m NPAT has been reiterated. We increase our EPS forecasts by +5-6% in FY27 and FY28. Our target price rises in line with our earnings forecasts to $9.80 (from $9.15).

The post Morgans says these ASX shares could rise 5%, 20%, and 55% 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 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.