S&P/ASX 200 Index (ASX: XJO) shares are narrowly lower, down 0.03%, at 8,726 points on Thursday.

Meanwhile, three experts explain their latest ratings on three ASX 200 shares.

Let’s review. 

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems shares are $8.54, down 8.1% today and up 38% over 12 months. 

Bell Potter has a buy rating on this ASX 200 industrials share. 

In a new note, the broker raised its 12-month target price from $12.60 to $13.80.

Analyst Baxter Kirk said:

EOS has entered into an agreement with the government of a Middle Eastern Gulf state (GCC member) for a nation-wide counterdrone (C-UAS) defence system valued at £370m (~$700m). This represents the largest contract ever secured by EOS.

EOS expects over 80% of contract revenue to be earned over the initial 12-24 months after the contract becomes unconditional.

Given the security deposit posted in August 2026, we believe this contract award was somewhat priced in by the market, however, we are surprised by the market’s reaction and given upcoming catalysts, believe current levels represent an attractive entry point.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is $15.22, down 0.7% today and down 23% over 12 months. 

Bell Potter has a hold rating on this ASX 200 mining share. 

In a new note, the broker reduced its 12-month target price from $17.10 to $15.80.

Analyst David Coates said: 

FMG has reported a suite of negative metrics in an out-of-cycle preliminary report updating performance for the September 2026 quarter.

Total shipments were down 6% YoY to 46.8Mt (incl. 2.5Mt from Iron Bridge), with a scheduled port shutdown impacting volumes.

Sales of 42.9Mt were 8% below shipments of 46.8Mt, with the 3.9Mt gap attributed to ongoing negotiations with China Mineral Resource Group (CMRG), China’s centralised ore buying agency.

This is the first time FMG has disclosed a material discrepancy between shipments and sales.

Price realisations also weakened to 82% (vs benchmark Platts 61%: US$80/dmt). Absolute price received is down ~US$9/dmt QoQ.

Net debt rose to US$2.8bn (from US$0.9b at 30 June) as cash fell to US$3.2b (from US$5.1b) after US$1.0b final dividend, US$0.9b
of CAPEX and an estimated ~US$300m impact from unsold ore.

FY27 guidance of 197-207Mt at C1 costs of US$20.50-21.75/wmt is unchanged, but is now “subject to negotiations with CMRG”.

We had previously flagged risks to price realisations and we now make a greater allowance and for longer through our forecast period.

Reece Ltd (ASX: REH)

The Reece share price is $17.04, down 0.4% today and up 45% over 12 months. 

Blake Halligan from Gray Perry Wealth Advisers has a sell rating on this ASX 200 industrials share. 

Halligan said (courtesy The Bull): 

Reece is a plumbing supplies company in Australia, New Zealand and the United States.

Statutory sales revenue was up 4.5 per cent in reported currency in full year 2026 when compared to the prior corresponding period. However, earnings before interest and tax in reported currency fell 2.6 per cent.

Housing cyclicality and US execution remain material risks. Any slowdown in housing activity or property prices could weaken demand for plumbing products, placing pressure on revenue, margins and earnings.

In our view, the shares appear expensive relative to these risks.

The post Buy, hold, sell: Reece, Fortescue, Electro Optic Systems shares 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 Electro Optic Systems. 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.

Bank of Queensland Ltd (ASX: BOQ) shares are moving higher on Thursday following the release of the bank’s full-year results.

The shares are up around 1% to $6.56, with investors seemingly encouraged by the progress being made across the business.

But is the latest update enough to make Bank of Queensland shares worth buying? Here’s how I see it.

Some encouraging progress

One thing I liked about the bank’s results was the progress it is making towards becoming a simpler, more efficient bank.

The company has completed the migration of ME customers onto its new digital banking platform, removing an important obstacle in its transformation.

It has also continued investing in technology and improving its operations, with further productivity benefits expected in FY27.

I think these changes could help Bank of Queensland become more competitive and reduce costs over time.

There was also encouraging growth in business banking. Commercial lending increased 16% during FY26, supported by demand across sectors including healthcare, agriculture, and other industries.

This is an area where Bank of Queensland has established expertise, and I think it could become an increasingly important source of growth.

Another positive was the improvement in its net interest margin, which increased six basis points to 1.70%. Combined with continued cost discipline, that suggests management is making progress on some of the issues that have weighed on profitability.

Why I’m still cautious on Bank of Queensland shares

Despite those improvements, I think Bank of Queensland has more work ahead before it becomes a particularly compelling investment.

The bank reported cash earnings of $358 million for FY26, down 7% on the previous year. That decline is disappointing, particularly when the larger Australian banks have generally demonstrated stronger earnings resilience.

Bank of Queensland’s mortgage business also struggled, with home lending contracting 8% during the year.

Management is targeting a return to home lending growth in FY27, supported by its digital platform and expanded distribution. I would want to see evidence of that recovery before becoming more positive.

The economic environment could also make things difficult. Interest rates are expected to remain elevated, with further increases possible as the Reserve Bank attempts to control inflation.

While higher rates can support banking margins, they also place pressure on borrowers and can reduce demand for new lending.

For a smaller bank competing against much larger rivals, I think that creates additional challenges.

What about the dividend?

One reason income investors might remain interested is the bank’s dividend.

The bank declared a fully franked final dividend of 20 cents per share, bringing its ordinary dividends for FY26 to 40 cents.

At $6.56, that represents a dividend yield of approximately 6.1%.

Shareholders also received a fully franked special dividend of 15 cents during the year, although I would not assume that payment will be repeated.

I think its dividend yield is attractive, but maintaining it will depend on the bank delivering more consistent earnings.

Foolish takeaway

I would rate Bank of Queensland shares as a hold following these results.

Management is making worthwhile improvements, and the dividend provides a reason for existing shareholders to remain patient.

For me, though, I would like to see stronger earnings and a return to mortgage growth before putting fresh money into the bank.

Until then, I think there are better opportunities elsewhere on the ASX.

The post Would I buy Bank of Queensland shares after looking at its results? appeared first on The Motley Fool Australia.

More reading

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• Bendigo and Adelaide Bank vs Bank of Queensland: Which is better value?
• 6 ASX shares downgraded by experts this week
• Buy, hold, sell: Orica, Bank of Queensland, Megaport shares

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 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.

The three ASX shares in this article are operating in different industries, but each face some interesting challenges over the coming years.

Some could benefit as conditions improve, while others may need to adapt to substantial changes in their markets.

Here’s how I would rate their shares today.

Appen Ltd (ASX: APX)

Appen shares are a hold for me. The company helps developers train and improve artificial intelligence (AI) models, putting it in an industry that continues to attract enormous investment.

But I have mixed feelings about its long-term prospects. AI models are becoming increasingly sophisticated, with synthetic data and automated evaluation potentially reducing the need for some traditional training services.

At the same time, more advanced AI creates demand for specialist data, human evaluation, and expert input in complex areas such as coding and mathematics. Appen could benefit from these opportunities.

Its recent results provide some encouragement. Revenue increased 17% in the first half of FY26, supported by particularly strong growth in China.

But the recovery remains uneven. Revenue from its Global business declined 27%, suggesting Appen still faces challenges replacing traditional work with newer AI projects.

I am also concerned about its reliance on a relatively small number of major technology customers, whose spending priorities can change quickly.

For me, the question is whether Appen can build a consistently profitable business as AI technology evolves. I think there is enough progress to justify holding the shares, but I would want clearer evidence of sustainable growth before buying.

Flight Centre Travel Group Ltd (ASX: FLT)

Flight Centre is a patient buy in my view. The travel company has faced a challenging period, with geopolitical tensions disrupting travel plans and higher fuel prices contributing to more expensive airfares.

But I think the work Flight Centre has done during this difficult period could pay off when conditions improve.

Management has materially reduced costs, leaving the business in a stronger position to benefit when travel demand picks up.

It has also strengthened its offering through acquisitions made around the bottom of the travel cycle, expanding its presence in specialist and higher-value travel markets.

I particularly like its position in corporate travel. Flight Centre has built a substantial global business serving companies that need help managing employee travel, bookings, and expenses.

That gives it an established customer base and opportunities to capture more business as corporate travel spending improves.

For me, the combination of a leaner cost base, a broader offering, and a strong corporate travel business could support a meaningful recovery in earnings.

I don’t expect conditions to improve overnight, particularly given the uncertainty surrounding international travel. But I would be happy to buy Flight Centre shares with a long-term view and give the recovery time to play out.

Telstra Group Ltd (ASX: TLS)

Telstra shares would be a buy for income investors. The telecommunications company has a substantial mobile network, millions of customers, and an established position in an industry that has become essential to everyday life.

I like the relatively dependable demand for its services, which helps support regular dividends.

Telstra paid 21 cents per share in FY26, and management is targeting further earnings growth under its Connected Future 30 strategy. That could provide room for dividends to increase gradually.

There is one longer-term development I would be watching, though. SpaceX has been expanding Starlink’s mobile capabilities and recently agreed to acquire approximately US$8 billion worth of mobile spectrum in the United States. 

I think that is a significant development, as it suggests SpaceX has ambitions to compete more directly with traditional telecommunications companies.

But for now, I think Telstra’s extensive infrastructure and network capacity give it a strong competitive position, particularly in populated areas.

As such, I think Telstra remains a good option for investors seeking dependable income.

Foolish takeaway

I would be happy buying Flight Centre and Telstra shares today, with the former offering recovery potential and the latter providing a more dependable source of income.

Appen is one I would continue holding for now. Its recent progress is encouraging, but I think it still has more to prove before I would consider adding to my position.

The post Buy, hold, sell: Appen, Flight Centre, and Telstra shares appeared first on The Motley Fool Australia.

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