Author: openjargon

ASX small-caps can be an attractive allocation option for your portfolio due to increased upside. 

Their lower market valuations, earlier growth stage, and thinner analyst coverage mean successful execution or new capital flows can re-rate them much faster than large established companies.

Here are two that have received updated guidance from the team at Bell Potter. 

Accent Group Ltd (ASX: AX1)

Accent Group Limited is a footwear and sports clothing retailer and wholesaler which owns/operates a number of footwear businesses in the performance, comfort and active lifestyle sectors. 

These include multi-branded retailers, The Athlete’s Foot (TAF) Australia, Platypus, Hype, Sports Direct and Glue Store, as well as a number of mono-branded retail stores for Merrell, Skechers, Vans, Timberland, Stylerunner, and more. 

While AX1 has a dominant market position in the overall Australian footwear market, the company also has an emerging presence in youth apparel through its Glue Store platform.

This ASX small-cap has struggled year to date, falling 42% in that span. 

Bell Potter recently updated their outlook on the company following a recent trading update. 

The broker noted that Accent Group revised down their FY26 EBIT guidance to $79.5-84.5m (was $85-95m). 

The investor day on 13th May focused on company’s Vision 2030, which should see a stronger position in the sports category from the diversification via the addition of 30 Sports Direct (SD) stores over the next 3 years and further growth in their vertical brands division led by a strong business, while maintaining lifestyle category market share (BPe market share ~30% in Australia).

The broker subsequently lowered its price target to 60 cents per share for this ASX small-cap (previously 68 cents). This is just slightly above the current share price of 55 cents.

It maintained its hold recommendation. 

EBR Systems Inc (ASX: EBR)

EBR Systems develops implantable systems for wireless tissue stimulation.

Its share price has also fallen significantly in 2026, down 44% year to date. 

However, Bell Potter is projecting significant growth for this ASX small-cap. 

In a recent report, it said the company is trading at an attractive entry point.

It noted that In the last week, EBR has announced hospital purchase agreements with 325 hospitals and thousands of other health centres, covering a large swathe of the US.

These groups are also amongst the largest hospital groups in the US, reflecting validation of the WiSE-CRT system.The agreements pave the way for EBR sales reps to directly engage with individual physicians within these groups to generate adoption and build clinical traction.

The broker has retained its buy recommendation and $2 price target on this ASX small-cap. 

From yesterday’s closing price, this indicates an upside potential of 286%. 

The post Bell Potter tips nearly 300% upside for one of these ASX small-caps appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares down 70% that could be cheap buys
• Morgans names 2 small-cap ASX shares to buy
• With potential upside of more than 300%, is this ASX biotech the best buy on the ASX right now?
• Broker says this ASX biotech stock could rocket 250%
• Morgans says these ASX dividend shares are buys

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

The core of value investing is targeting companies that are perceived to be trading at bargain prices relative to their underlying business performance.

It’s up to investors to watch individual stocks and decide when it has fallen too far. 

Investors can also mitigate some risk by targeting established and blue-chip companies rather than speculative small-caps.

Right now, there are three ASX 300 shares that may have slipped into the undervalued range after a poor 2026. 

Here’s what experts are saying. 

Flight Centre Travel Group (ASX: FLT)

Like many ASX travel shares, Flight Centre has suffered from rising interest rates, geopolitical conflict and inflation. 

These headwinds have all weighed heavily on the sector, and investor sentiment. 

As a result, Flight Centre shares are down 36% year to date. 

It’s important to point out these headwinds could persist in the short term. 

However looking long-term, after another 3% drop yesterday, these ASX 300 shares could now be oversold. 

The team at Morgan Stanley believe this ASX 300 stock looks cheap. 

It recently reaffirmed its buy rating on Flight Centre shares with a $16 target.

This suggests a rebound of over 60% from current levels. 

Brambles Ltd (ASX: BXB)

Brambled is the world’s largest supplier of reusable wooden pallets and crates used for storing and transporting goods.

This ASX 300 stock tumbled 6% yesterday to take its year to date losses to 28%. 

Almost all of this has come since 18 May when the company downgraded its sales revenue growth forecast to 2% to 3%, down from 3% to 4%, and downgraded its underlying profit growth forecast to 3% to 5%, down from 8% to 11%.

However, it could now be firmly in the value range. 

Citi renewed its buy rating on Brambles shares with a $27.55 price target on Monday.

This indicates a recovery of 68% over the next 12 months. 

ARB Corporation Ltd (ASX:ARB)

ARB is Australia’s largest designer, manufacturer, and distributor of four-wheel-drive and light commercial vehicle accessories.

Its share price dropped a further 3% yesterday. 

In 2026, this ASX 300 stock is now down roughly 47%. 

Similar to travel shares, consumer discretionary companies like ARB have fallen victim to cost of living pressures. 

Luxury/non-essential items like car and truck accessories have likely been pushed to the backburner for many everyday Aussies this year, which has negatively impacted ARB. 

However, looking long-term, brokers are confident this ASX 300 stock can rebound. 

Ord Minnett recently maintained a buy rating with a $31.00 target price. 

This indicates an upside potential of 82% in the next 12 months. 

The post Brokers say these ASX 300 shares are too cheap to ignore appeared first on The Motley Fool Australia.

More reading

• Why Morgans upgraded this ASX 200 share and downgraded another
• Why James Hardie, Flight Centre and Webjet shares are making waves on Wednesday
• Down 36% in 2026, Flight Centre shares slip again on new fintech update
• 5 ASX shares with 50% to 60% upside ahead: Experts
• After this week’s sell-down, is it time to buy Brambles shares?

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 ARB Corporation. The Motley Fool Australia has recommended ARB Corporation and 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.

It may be time to hit the sell button on Temple & Webster Group Ltd (ASX: TPW) and James Hardie Industries PLC (ASX: JHX) shares.

That’s according to DP Wealth Advisory’s Andrew Wielandt (courtesy of The Bull).

Both S&P/ASX 200 Index (ASX: XJO) stocks have come under heavy selling pressure over the past year.

Recently trading at $4.84, online furniture and homewares retailer Temple & Webster shares are down a painful 64.8% over 12 months.

Recently trading for $26.53, building materials company James Hardie shares are down 31.1% over this same period.

For some context, the ASX 200 has gained 2% over the past full year.

And looking ahead, Wielandt doesn’t expect any miraculous turnarounds for the beleaguered stocks.

Here’s why.

Are James Hardie shares a sell?

Commenting before James Hardie’s FY 2026 results release on Wednesday, which saw the ASX 200 stock close in the red, Wielandt noted:

This Australian building materials company generates most of its revenue in the United States. The acquisition of US decking business AZEK for $US8.75 billion has left the market concerned about earnings risk in response to a flat housing construction market in the US and increasing cost of living expenses.

Summarising his sell recommendation on James Hardie shares, Wielandt said, “The structure of the contentious acquisition left angry Australian investors without a vote on the deal. Too much uncertainty exists about the company’s outlook.”

Yesterday, James Hardie reported a 25% year-on-year increase in net sales in FY 2026 to US$4.84 billion. However, this boost was driven by the company’s AZEK acquisition. Excluding AZEK’s contribution, James Hardie’s organic net sales fell 2% from FY 2025.

Time to sell Temple & Webster shares?

Atop recommending selling James Hardie shares, Wielandt also has a bearish outlook on Temple & Webster shares.

“TPW is an online furniture and homewares retailer,” he noted.

As for Temple & Webster’s decidedly dismal share price performance of late, Wielandt said:

The share price remains under significant pressure in response to weaker discretionary spending from the oil price shock and rising interest rates in Australia. The stock has also been subjected to short selling by investors betting the shares will fall.

Summarising his sell recommendation on Temple & Webster shares, Wielandt concluded:

Our recommendation is based on a weaker macroeconomic outlook. At this point, we can’t see any clear and meaningful differentiation between TPW and bricks and mortar retailers or online competitors operating in the same or similar sectors.

The post Sell alert! Why this expert is calling time on Temple & Webster and James Hardie shares appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy now
• Why James Hardie, Flight Centre and Webjet shares are making waves on Wednesday
• James Hardie shares tumble on FY26 profit crunch
• A rare buying opportunity in 1 of Australia’s top shares?
• James Hardie earnings: FY26 profit drops as sales lift 25%

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

When ASX shares hit record high after record high, it’s great news for owners of that stock. 

However for those on the outside looking in, it can be difficult to know where the peak is. 

Yesterday, three ASX shares rocketed to new record highs: 

• GenusPlus Group Ltd (ASX: GNP)
• Smartgroup Corporation Ltd (ASX: SIQ)
• Anteris Technologies Ltd (ASX: AVR). 

Here is what pushed them to new highs, and what experts are anticipating in the near term. 

GenPlus completes $200 million placement

Investors were gobbling up GenPlus shares yesterday after the company announced it has raised $200 million by issuing around 21.6 million new shares at $9.25 each. 

The share price offered was slightly below the recent market price, which is common in capital raisings to attract investors. 

The funds will mainly be used to help finance Genus’ acquisition of MPC Kinetic Holdings Pty Ltd, an infrastructure services business announced earlier this week. 

For investors, the announcement signals that Genus is pursuing growth through acquisition and that there was strong demand from professional investors for the raising. 

This sent GenPlus shares 2% higher to a new 52-week high of $9.95. 

Its share price has now risen 60% year to date. 

Recent targets from brokers indicate these ASX shares could continue to climb higher. 

Bell Potter recently placed a buy rating on the ASX industrials stock with a $10.50 price target. 

This indicates a further 5% upside. It has also generated a positive outlook from Wilson Asset Management (WAM).

SmartGroup rises on buyback news

SmartGroup shares hit a fresh yearly high of $11.54 yesterday after the company announced it was launching a $20 million share buyback.

The company provides specialist employee management services to organisations throughout Australia. The company’s services include salary packaging, novated leasing, vehicle fleet management, payroll, employee share plan administration, and workforce optimisation.

The ASX 300 stock is engaging in the buyback after agreeing to sell the majority of its self‑funded fleet portfolio. That decision followed Smartgroup’s fleet-funding partnership with Volkswagen Financial Services Australia in 2025.

Following yesterday’s gain, it is now up 27% year to date. 

Unfortunately for prospective investors, these ASX shares now look close to fully valued. 

Bell Potter recently placed an $11.50 price target on SmartGroup shares, right around current levels. 

Anteris jumps 6% 

Anteris Technologies shares hit new record highs of $11.05 per share yesterday. 

This was despite no price sensitive news out of the healthcare stock.

Yesterday’s 6% rise takes its year to date gain to 48%. 

Much of this has come following the company’s quarterly results released on 13 May.

Experts are tipping this rise can continue. 

Five analyst forecasts via TradingView have an average one year price target of $20.41, indicating a further 85% upside from current levels. 

The post Which of these ASX shares hitting record highs is the best buy right now? appeared first on The Motley Fool Australia.

More reading

• Why Catapult, GenusPlus, Meeka Metals, and TechnologyOne shares are pushing higher today
• Guess which ASX 300 stock is outperforming today on $20 million buyback news
• Bell Potter is tipping a 40% rebound for this ASX consumer discretionary stock
• Why is this $2 billion ASX industrials stock racing higher today?
• Meet the ASX small-cap healthcare company which could triple this year

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 GenusPlus Group. The Motley Fool Australia has positions in and has recommended Smartgroup. The Motley Fool Australia has recommended GenusPlus 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 could struggle to ever reclaim the biggest ASX stock crown from S&P/ASX 200 Index (ASX: XJO) mining giant BHP Group Ltd (ASX: BHP).

The two ASX titans aren’t in direct competition with each other. But investors have been watching their market caps closely this year as they vie to remain the highest-valued company trading on Australia’s stock exchange.

Here’s what’s been happening.

BHP takes a commanding lead over CBA shares

On 27 January, BHP reclaimed the title of biggest ASX share from CBA. This came after the big four ASX 200 bank had enjoyed that crown for almost 18 months.

The crown then got handed back and forth a few times over the following weeks as one stock outperformed the other.

But BHP now looks to be cementing its lead, with the BHP share price buoyed by strong iron ore prices (currently at around US$110 per tonne). Meanwhile, copper prices (currently at US$13,411 per tonne) have surged by 45% over the past 12 months.

At the same time, CBA shares are under pressure. That’s partly due to ongoing analyst warnings on CBA’s overvaluation relative to its peers. And investors are also increasingly concerned over Australia’s economy potentially leading to lower home loans with higher defaults.

Connecting the dots, BHP shares have gained 48.52% over the past year, while CBA shares have fallen 5.68% during this time.

At market close on Wednesday, this saw BHP commanding a market cap of $291.32 billion compared to CBA’s market cap of just over $270 billion.

What are the experts saying about CommBank and BHP shares?

Charles Casey, a portfolio manager at Solaris, has a decidedly bullish outlook on BHP shares.

According to Casey (quoted by The Australian Financial Review):

The diverging performance is led by the outlook for earnings and dividends, which is improving for BHP and Rio Tinto Ltd (ASX: RIO) but is deteriorating for Commonwealth Bank, and that’s why we saw such a big derating in the valuation applied to CBA last week.

If you’re trading to perfection like CBA was, there’s just no room for disappointment.

As for why BHP could continue to outpace CBA shares, Casey said:

BHP is really well-placed at the moment to keep deleveraging and growing its earnings and dividends into August. BHP is one of our key holdings, and we’ve been very underweight CBA…

With the copper price high, this talk of electrification and obviously the building out of data centres, it looks like demand will stay strong for a while.

Regal Partners’ Phil King also sounded a bullish note on ASX mining stocks like BHP (quoted by the AFR).

King noted:

The next five or 10 years look extremely exciting for the mining sector. There’s going to be very little new supply in commodities like copper over the next five years. I don’t think the outlook for the mining industry has ever looked better.

With King speculating that global copper prices could increase by another fivefold over the coming five to 10 years, he said BHP shares could surge past $100 within the next few years.

“Even then, we’d still be happy to be long,” he said.

The post Why CBA shares might never retake the biggest ASX stock crown from BHP appeared first on The Motley Fool Australia.

More reading

• ANZ, Westpac, NAB and CBA shares: Analysts rate 2 a hold, and 2 a sell
• Are CBA, Westpac, NAB and ANZ shares heading for more pain?
• BHP shares vs Rio Tinto shares: Which miner looks better?
• 3 reasons why the BHP share price could be a buy
• Why this top fundie is overweight BHP shares

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

Passive income can be built in a few different ways on the ASX.

One way is with exchange traded funds (ETFs) that focus on dividend-paying Australian or international shares.

But which ones could be buys for passive income?

Here are three ASX ETFs that could be worth looking at:

Vanguard Australian Shares High Yield ETF (ASX: VHY)

The first ASX ETF to look at is the Vanguard Australian Shares High Yield ETF.

This fund provides exposure to ASX-listed companies with higher forecast dividends than the broader Australian share market.

Its portfolio includes many of the country’s best-known income shares, including banks, miners, energy companies, and telecommunications businesses. Holdings include BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Telstra Group Ltd (ASX: TLS).

The attraction here is simplicity. Instead of trying to choose individual dividend shares, investors can gain diversified exposure to a basket of high-yielding Australian companies in one trade.

The Vanguard Australian Shares High Yield ETF could suit investors who want income from familiar ASX names without relying on just one or two companies.

Betashares Global Royalties ETF (ASX: ROYL)

Another ASX ETF to look at is the Betashares Global Royalties ETF.

This fund takes a less conventional path to income. It invests in global companies that earn royalty-style revenue from assets such as commodities, intellectual property, infrastructure, and other long-life sources.

Royalty businesses can be attractive because they may benefit from the use or production of an asset without carrying the same operating burden as the company running it directly.

Its holdings include Franco-Nevada Corporation (NYSE: FNV), Texas Pacific Land Corporation (NYSE: TPL), and Wheaton Precious Metals Corp (NYSE: WPM).

This gives the Betashares Global Royalties ETF a different income profile from a traditional dividend ETF. Its distributions are linked to businesses that can generate cash from assets, rights, or agreements rather than everyday operating activity alone. It was recently recommended by the team at Betashares.

Betashares S&P 500 Yield Maximiser Complex ETF (ASX: UMAX)

A third ASX ETF that income investors may want to look at is the Betashares S&P 500 Yield Maximiser Complex ETF.

It provides exposure to the US share market while using an options strategy to help generate passive income.

This means its distributions are not driven only by dividends from the underlying companies. A key part of the income comes from selling call options and collecting the premiums from those contracts.

Its underlying exposure includes major US companies such as Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Amazon (NASDAQ: AMZN).

The trade-off is important. This type of strategy can lift income, but it may limit some upside if the US market rises strongly.

For investors focused more on cash flow than maximising capital growth, the Betashares S&P 500 Yield Maximiser Complex ETF offers a different way to turn global equity exposure into regular income.

The post Which ASX ETFs could be buys for passive income? appeared first on The Motley Fool Australia.

More reading

• How to invest during market chaos and volatility
• Which Australian ETFs would be top buys this month?
• 3 ASX ETFs for investors in their 60s
• Building wealth with ASX ETFs? Don’t make these errors
• How to build a $1,000 a month passive income from the ASX

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 Amazon, Apple, and Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares S&P 500 Yield Maximiser Fund and Telstra Group. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, Microsoft, and Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Morgans has been busy adjusting its recommendations to reflect recent updates from a number of ASX 200 shares.

Two that have fared differently are named below. Here’s why the broker has turned negative on one of them and positive on the other:

Brambles Ltd (ASX: BXB)

Morgans was disappointed with this logistics solutions company’s trading update this month.

It highlights that the ASX 200 share is facing short-term pallet repair capacity constraints, which is weighing on its performance.

In light of this and the challenging operating environment, the broker has downgraded Brambles shares to a hold rating with a heavily reduced price target of $18.70. It explains:

BXB’s trading update was disappointing, reflecting short-term pallet repair capacity constraints in parts of the US. These issues were driven by subcontractor turnover at service centres, labour shortages, and elevated supply chain costs, including additional repair, handling, transportation, and storage expenses. BXB has downgraded FY26 (constant FX) revenue growth guidance to 2-3% (vs 3-4% previously) while underlying EBIT growth is now expected to be 3-5% (vs 8-11% previously). We adjust FY26/27/28F underlying EBIT by -4%/-5%/-1%.

Our target price declines to $18.70 (from $25.50) and we move to a HOLD rating (from ACCUMULATE). While management expects US pallet repair capacity constraints to be a short-term issue, with resolution targeted by the end of 1H27 and improvement initiatives already underway, risks remain given the challenging operating environment, including potential for further subcontractor turnover. With the volume outlook also uncertain, we prefer to wait for BXB’s FY26 result on 20 August before reassessing our view.

TechnologyOne Ltd (ASX: TNE)

This ASX 200 tech share delivered a half-year result in line with expectations this week. In fact, the company’s growth would have been ahead of expectations if it were not for foreign exchange (FX) headwinds.

So, with the company well-placed to hit the top-end of its guidance in FY 2026 and the broker seeing plenty of value in TechnologyOne’s shares, it has upgraded them to an accumulate rating with a $32.30 price target. It explains:

TNE’s 1H26 result came in largely as expected, albeit with some FX headwinds, which otherwise would have seen its underlying result land ahead of consensus. The group enters 2H26, with a strong pipeline of ‘Plus’ leads, which sees TNE well positioned to achieve the top end of its re-affirmed FY26 ARR/PBT Guidance. The pullback in TNE’s share price sees our TSR lift to 18% and we therefore move to an Accumulate rating with a $32.30 price target.

The post Why Morgans upgraded this ASX 200 share and downgraded another appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy now
• Why Catapult, GenusPlus, Meeka Metals, and TechnologyOne shares are pushing higher today
• Does Bell Potter think TechnologyOne shares are a buy?
• 3 reasons to sell this ASX tech stock

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

It was a red hump day for the S&P/ASX 200 Index (ASX: XJO) and many ASX shares this Wednesday. After yesterday’s enthusiastic rebound, the bears were back in force today, with the index starting in the red this morning and drifting lower as the session went on.

By the time the markets closed, the ASX 200 had shed a nasty 1.26%. That leaves the index back under 8,500 points at 8,496.6.

This rough mid-week session for the Australian markets follows a similarly negative night on the American bourse.

The Dow Jones Industrial Average Index (DJX: .DJI) drifted lower, dropping 0.65%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was even more pessimistic, falling 0.84%.

But let’s return to the local markets now for a deeper look into how today’s tough trading conditions filtered down into the various ASX sectors this session.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why Morgans upgraded this ASX 200 share and downgraded another
• Top brokers name 3 ASX shares to buy now
• ASX 200 drops to a new 7-week low as banks and miners sink
• Why Catapult, GenusPlus, Meeka Metals, and TechnologyOne shares are pushing higher today
• Why this $2.7 billion ASX 200 stock is charging higher in Wednesday’s sinking market

Motley Fool contributor Sebastian Bowen 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 ResMed and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Lynas Rare Earths Ltd. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Gqg Partners and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX bank shares have sunk lower through the first few weeks of May, as investors become concerned about earnings growth, valuations and interest rate hikes. 

Some softer-than-expected results, combined with proposed changes to negative gearing and capital tax concessions put pressure on major bank shares.

Here’s a rundown of how each of the big four banking giants are faring today, and what brokers expect next.

Hold ANZ Group Holdings Ltd (ASX: ANZ) shares

ANZ shares are down around 1% to $35.2 at the time of writing. The shares are now down 4% so far in May, down 3% for the year-to-date, but are 23% higher than the trading price this time 12 months ago.

The banking giant posted good news earlier this month though. In early May, ANZ reported a 70% jump in its cash profit for the first half of FY26. Statutory profit was also up 62%, operating income was up 3%, and the bank’s operating expenses were 22% lower.

ANZ confirmed it has now achieved 49% of its gross cost-savings target of $800 million for FY 2026.

Brokers are relatively neutral on ANZ shares. TradingView data shows that out of 16 analysts, the majority (eight) have a hold rating on the stock. Another six have a buy or strong buy rating while two have a sell or strong sell rating.

The average $35.32 target price implies a potential 0.3% upside at the time of writing.

Sell Commonwealth Bank of Australia (ASX: CBA) shares

CBA shares are trading in the red in Wednesday lunchtime trade. At the time of writing, the ASX bank shares are relatively flat, trading at $162.31 at the time of writing.

Today’s slump means the shares are now down 6.5% so far in May, and are 6% lower than their trading price this time last year.

The bank posted a disappointing third-quarter capital update last week, where it reported a flat operating income and a 1% decline in its unaudited cash NPAT. Investors were spooked by the results and rushed to sell up their shares, sending the share price tumbling.

CBA shares have been considered overvalued relative to its peers for some time now, and it looks like the downturn could finally be coming to fruition. But the shares haven’t reached the bottom yet.

The majority (11 out of 16) of analysts have a strong sell rating on CBA shares. Another three rate the stock as a sell and two rate it as a hold. The average $127.57 target price implies more than 20% downside ahead, at the time of writing.

Hold National Australia Bank Ltd (ASX: NAB) shares

NAB shares are also in the red on Wednesday lunchtime, down around 1% to $36.76 at the time of writing. NAB has been the worst big four performer in May, down 8% already. For the year-to-date the shares are down 13% and they’re just over 1% lower than this time last year.

The bank’s latest half-year FY26 results were a miss versus market expectations, and investors reacted negatively. Despite posting a modest earnings growth earlier this month, including a 6.4% increase in underlying profit and a 3.1% increase in revenue, the share price sell-off accelerated. 

It looks like analyst sentiment is finally shifting for NAB shares though.

The latest data shows nine out of 16 analysts now rate the ASX bank stock as a hold. Another five have a sell or strong sell rating. This is an improvement from late-April when the majority had a sell or strong sell rating.

The average $38.40 target price now implies a potential 5% upside, at the time of writing.

Sell Westpac Banking Corp (ASX: WBC) shares

Westpac shares have also come under pressure on Wednesday. At the time of writing the share price is down 1% to $35.96 a piece. They’re now down 8% for the year-to-date but are still 14% higher than 12 months ago.

The bank posted its first-half results earlier this month. Westpac’s statutory net profit was 3% higher year-on-year but 5% lower compared to the second half of FY25. Its total lending and deposit growth also climbed 7% year-on-year.

The result was solid, and it caused a brief share price uptick before investors reversed and the sell-off resumed. 

Analysts are pretty pessimistic about the outlook for Westpac shares over the next year. The majority (nine out of 16) have a sell or strong sell rating on the bank shares. Another seven have a hold rating.

The average $34.04 target price implies around 5% downside at the time of writing. 

The post ANZ, Westpac, NAB and CBA shares: Analysts rate 2 a hold, and 2 a sell appeared first on The Motley Fool Australia.

More reading

• Are CBA, Westpac, NAB and ANZ shares heading for more pain?
• Here is what Westpac is paying shareholders in June 2026
• Is the CBA share price a buy for its 4.5% dividend yield?
• Which big four ASX bank stock is the best buy right now?
• Why is the ASX 200 starting at a 7-week low today?

Motley Fool contributor Samantha Menzies 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.

A2 Milk Company Ltd (ASX: A2M) shares are under pressure again on Wednesday as investors keep selling the infant formula stock.

At the time of writing, the A2 Milk share price is down 4.26% to $5.62.

Earlier today, the stock hit a new 52-week low of $5.60. The last time A2 Milk shares traded around these levels was back in January 2025.

It has been a rough fall for shareholders. A2 Milk shares are now down around 25% over the past month and 39% since the start of 2026.

The sell-off comes after a difficult run of company updates, broker downgrades, and concerns about the outlook for infant formula sales.

So, what has gone wrong?

Guidance cut

The biggest problem is still A2 Milk’s recent trading update.

In April, the company warned that supply chain disruptions were constraining product availability, despite strong underlying demand.

Investors were already focused on China before the update landed. The weaker guidance only added to concerns about demand and the extent of A2 Milk’s growth.

As part of the update, A2 Milk downgraded its FY26 outlook.

Revenue growth was reduced to low-to-mid double digits, while cash conversion was expected to fall to 50%.

The company also said it expected lower infant milk formula sales, mostly related to Chinese labels.

Margins are also under pressure, with A2 Milk’s EBITDA margin now expected to fall to between 14% and 14.5%. That’s down from its previous guidance range of 15.5% to 16%.

Brokers are losing patience

The recent weakness has also been made worse by broker commentary.

Citi reportedly downgraded A2 Milk shares to a sell rating, with a reduced price target of $5.85. The broker pointed to ongoing supply challenges, lower birth rates, and valuation concerns.

Other analysts have also taken a more cautious view.

Catapult Wealth has named A2 Milk as a sell this week, pointing to the supply chain issues and softer outlook.

Dolphin Partners Financial Services has also highlighted the pressure on the stock after the company’s downgrade and recent product recall in the United States.

The recall related to 3 small batches of product sold in the US. A2 Milk said the issue was isolated to US label product.

Foolish takeaway

A2 Milk’s share price fall shows how quickly confidence can change when a growth stock starts missing expectations.

The company is still profitable and demand has not disappeared. But investors are no longer giving it the benefit of the doubt while guidance is being cut and margins are moving lower.

Until A2 Milk can show it is back on track, the share price may struggle to find much support.

The post Down 39% in 2026, is this ASX 200 stock becoming a falling knife? appeared first on The Motley Fool Australia.

More reading

• Sell alert! Why this expert is calling time on Endeavour and A2 Milk shares
• 4 ASX 200 shares tipped to jump another 50% to 60%
• Why experts are selling these 3 ASX shares this week
• Why A2 Milk, Brambles, Elders, and Tuas shares are sinking today
• Synlait Milk CEO resigns – the latest in a line of executive departures

Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor Aaron Teboneras 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.