S&P/ASX 200 Index (ASX: XJO) shares are just inside the green, up 0.03%, at 8,752.1 points on Friday.

This week, brokers have renewed their buy ratings and updated their 12-month price targets on several ASX 200 shares.

Let’s take a look.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is 90 cents, down 1.6% today.

This ASX 200 bank share was smashed yesterday, collapsing 46% on a profit guidance downgrade.

Today, Morgans renewed its buy rating on Judo shares but slashed its 12-month target price from $2.15 to $1.47.

This implies a potential bounce back of more than 60% over the next year.

Morgans said:

JDO downgraded its FY26 PBT guidance by c.8% at the mid-point. Even more disappointing was first-time FY27 PBT guidance which was c.16% below expectations at the mid-point.

The share price drawdown was vicious (particularly considering the decline that had already occurred since February).

While the earnings growth outlook has moderated, we still forecast c.30% EPS growth across both FY26 and FY27 with the stock now trading on a c.6.8x PER (FY27F) and 0.6x P:BV (end-FY26).

A significant risk premium or probability of failure has been priced into the stock. BUY.

BHP Group Ltd (ASX: BHP)

The BHP share price is $57.17, up 1.1% today.

The market’s largest ASX 200 mining share has lifted 29% in the year to date (YTD).

BHP shares have dropped almost 10% since last Thursday amid news of a $2.8 billion cost blow-out at its Jansen potash project.

Morgan Stanley reiterated its buy rating on BHP shares with a price target of $67.50.

This implies a potential 14% upside ahead.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is $10.65, down 0.6% on Friday.

The ASX 200 airline share has ripped 18% over the past month.

Ord Minnett reiterated its buy rating on Qantas shares this week.

The broker raised its 12-month price target from $10.50 to $11.50.

This suggests a potential 8% upside ahead.

Goodman Group (ASX: GMG)

The Goodman share price is $32.06, down 0.4% today.

The ASX 200’s biggest real estate share has risen 4% YTD.

Citi renewed its buy rating on Goodman shares with a $40 target yesterday.

This suggests a potential 25% upside ahead.

NextDC Ltd (ASX: NXT)

The NextDC share price is $14.44, down 1.9% today.

This ASX 200 tech share has risen 17% YTD amid a broader sector rebound.

Citi reiterated its buy rating on NextDC shares with a price target of $19.10.

This implies potential capital growth of 32% ahead.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems shares are $9.33, down 2.8% today.

The ASX 200 defence share has lost 6% of its market valuation YTD.

Bell Potter renewed its buy rating on Electro Optic Systems shares this week.

The broker increased its 12-month price target from $10.60 to $12.50.

This suggests a potential 34% upside ahead.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is $19.02, up 1.7% today.

This ASX 200 rare earths share has ripped 56% higher YTD.

UBS upgraded Lynas Rare Earths shares to a buy rating with a $23.65 target on Thursday.

This implies a potential 24% upside ahead.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is $8.12, down 1.2% today.

Over the past month, this ASX 200 financial share has lifted 8%.

Goldman Sachs reiterated its buy rating on IAG shares with an $8.60 target yesterday.

This suggests a potential 6% upside ahead.

The post 8 ASX 200 shares with reaffirmed buy recommendations this week appeared first on The Motley Fool Australia.

More reading

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems, Goldman Sachs Group, and Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has recommended BHP Group and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Commonwealth Bank of Australia (ASX: CBA) shares are down 0.5% to $161.82, while CSL Ltd (ASX: CSL) is down 1% to $116.48 on Friday.

In a newsletter this week, Blackwattle Large Cap Quality Fund portfolio managers, Joe Koh and Elan Miller, explain why they are underweight on the market’s largest ASX 200 bank share and overweight on the market’s biggest healthcare share.

If you’re unfamiliar with the lingo, underweight and overweight compare a fund manager’s holding in an ASX stock to its weighting in the benchmark index.

If a fund manager is overweight a stock, they hold a larger proportion of that stock than the benchmark index does.

The Large Cap Quality Fund aims to outperform the S&P/ASX 200 Accumulation Index (ASX: XJOA), after fees, over the long term.

CBA shares

CBA shares represents 10.2% of the ASX 200 Accumulation Index’s market capitalisation.

Koh and Miller said they are underweight CBA shares, and this helped the fund outperform the market in May.

They commented:

CBA provided a Q3 update, which saw its cash earnings narrowly miss consensus estimates by 1%, notwithstanding stable net interest margins and robust home lending growth of 7.1% and business lending growth of +12.5%, year-on-year.

The small earnings disappointment, combined with (in our view) expensive valuation and uncertainty around housing due to negative gearing tax changes, saw CBA’s shares underperform the S&P/ASX 200 index in May.

The night before CBA’s update, the Federal Government proposed a raft of tax changes in the 2026-27 Budget.

CBA shares experienced their biggest daily fall ever, dropping 10.2% and descending to No. 2 in the S&P/ASX 200 Index (ASX: XJO).

Koh and Miller said the Federal Budget marked “the biggest changes to the tax system since the introduction of the GST”.

The changes include replacing the 50% capital gains tax (CGT) discount for assets held longer than 12 months with a cost base inflation indexation method and a minimum 30% CGT rate; and limiting negative gearing to new builds, effective 1 July next year.

Koh and Miller expect this to adversely affect ASX 200 bank shares.

… we anticipate slower credit growth moving forward, as well as increased risk of bad and doubtful debts, given that individuals are already feeling the impact of the RBA’s rate hikes, higher fuel prices, and increased inflation.

We believe the Budget will place increased pressure on the banks’ operating margins, increasing the risk of earnings downgrades.

The managers pointed out:

Australian home loans comprise about 63% of CBA’s total loan book, of which about one third is to investors.

CBA shares are up 0.4% in the calendar year to date (YTD) compared to a 0.3% rise for the ASX 200.

CSL shares

ASX 200 healthcare shares appear to be staging a comeback after a horror 12 months amid many industry challenges.

The S&P/ASX 200 Health Care Index (ASX: XHJ) appears to have hit a pivot point on 3 June when it touched a 9-year low.

At that stage, ASX 200 healthcare shares had fallen by more than 40% over 12 months.

Since then, healthcare shares have risen 15% as value investors return to the sector, hunting bargains.

CSL shares have been a clear target, lifting 26% since 3 June.

The CSL share price commenced a downward spiral in early FY25 amid far bigger problems than sector weakness.

Koh and Miller said CSL downgraded its earnings forecast again in May after previously reaffirming guidance when the then-CEO resigned.

The managers said:

CSL now expects FY26 revenue to be around $15.2 billion (market expectations were $15.8bn) and NPATA (excluding restructuring costs and impairments) to be around $3.1 billion (market expectations were $3.35bn), both on a constant currency basis.

CSL also intends to recognise approximately $5 billion of non-cash, pre-tax impairments across FY26 and FY27, in addition to those
announced at the FY26 half-year results.

The market continues to be wary of CSL, as the new CEO is yet to be named and the competitive environment remains difficult.

Despite this, Koh and Miller have faith that this former ASX 200 blue-chip company can pull itself out of the mud.

While previously underweight this stock, the Fund has recently moved to a small overweight position given the stock’s
now more attractive valuation, which sits at a substantial discount to the ASX 200.

CSL shares are down 32% YTD and make up 2.1% of the ASX 200 Accumulation Index.

The post Why this fundie is overweight CSL and underweight CBA 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 CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Regis Resources Ltd (ASX: RRL) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $6.45. In morning trade on Friday, shares are swapping hands for $6.58 apiece, up 3.2%.

For some context, the ASX 200 is up 0.1% at this same time.

This outperformance follows the release of Regis’ mid-year exploration update.

Here’s what’s grabbing investor interest.

Regis Resources shares lift on growth outlook

Year to date, the ASX 200 gold miner said it continued advancing priority underground and open pit targets. Regis reported this has improved its geological confidence across key growth areas as it assesses longer-term opportunities at its Duketon, McPhillamys, and Tropicana gold mines.

Regis Resources shares could get longer-term support from Duketon, with the miner declaring the initial open pit Mineral Resource declared for Beamish South. That came out at 7 million tonnes at 1.1 grams of gold per tonne for 270,000 ounces.

Also at Duketon, the miner said recent drilling at Garden Well and Rosemont Stage 3 have confirmed strong mineralisation. And ongoing drilling at Ben Hur supports the view of a potential underground mining opportunity.

At Kings Plains, situated close to the McPhillamys project, recent drilling results were said to support the potential for an open pit resource.

Regis Resources added that diamond drilling within its Tropicana Underground project continued to increase its confidence in the known mineralisation.

What did management say?

Commenting on the results helping boost Regis Resources shares today, CEO Jim Beyer said, “Regis holds a significant pipeline of opportunities, with almost 100 exploration prospects and projects at varying stages of maturity the subject of prioritised evaluation and testing across our portfolio.”

Beyer added:

At Duketon, we are encouraged by the initial Mineral Resource Estimate declared at Beamish South, and drilling will continue as we work to grow that Resource and assess its potential to support a future Ore Reserve. Ongoing drilling at Garden Well, Rosemont and Ben Hur continues to demonstrate the opportunity within the Duketon portfolio and we remain confident in our long-term underground growth pipeline.

At Tropicana, drilling across Boston Shaker, Tropicana Underground, Havana South and the Swizzler area has returned encouraging results, further reinforcing our view of Tropicana as an asset with meaningful exploration upside.

These results, including the initial Kings Plain depth extension testing, continue to validate our exploration strategy and reinforce our belief in the quality and scale of Regis’ asset base.

Looking to what could impact Regis Resources shares in the months ahead, Beyer concluded, “We see meaningful potential to grow our resource base and continue to extend mine life across the business.”

The post Regis Resources shares leaping higher today on gold mine growth outlook appeared first on The Motley Fool Australia.

More reading

• 2 ASX gold shares making big moves on key updates
• 7 ASX gold stocks to buy now
• Why Clinuvel, Elevra Lithium, Regis Resources, and SCEE shares are racing higher today
• Here are the top 10 ASX 200 shares today
• Vault Minerals lifts earnings, initiates dividend, and announces merger with Regis

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.