Author: openjargon

It was a busy week for Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

4DMedical Ltd (ASX: 4DX)

According to a note out of Bell Potter, its analysts have retained their speculative buy rating on this medical technology company’s shares with an increased price target of $6.00. Bell Potter points out that 4DMedical will undertake a head to head study of its CT:VQ exam vs CT Pulmonary Angiogram (the current standard of care) in patients with suspected Pulmonary Embolism (PE). It notes that this is necessary to generate clinical data to support the broader adoption of the 4DX CT:VQ exam for patients not subject to nuclear medicine for the ventilation/perfusion component of the exam. Bell Potter believes this is a good move, especially given the total addressable market is estimated to be $2.5 billion annually. If everything goes to plan, Bell Potter believes exponential adoption could occur from FY 2028 onwards. The 4DMedical share price ended the week at $3.97.

Megaport Ltd (ASX: MP1)

A note out of UBS reveals that its analysts have retained their buy rating on this network solutions company’s shares with an increased price target of $24.20. UBS was pleased to see that Megaport’s acquisition of Latitude.sh is bearing fruit. It notes that Latitude.sh has materially strengthened the company’s earnings outlook. In fact, it highlights that contracts secured since the November acquisition have annual recurring revenue that is six times larger than the acquired business. And with accelerating AI and cloud demand, cross-selling opportunities, and balance sheet capacity, UBS believes it is well-positioned to win further contracts. The broker also believes there is upside potential if AI adoption continues to drive demand. The Megaport share price was fetching $18.48 at Friday’s close.

Newmont Corporation (ASX: NEM)

Another note out of UBS reveals that its analysts have retained their buy rating and $195.00 price target on this gold giant’s shares. The broker has been looking at the gold sector and the impact that higher costs (due to inflationary pressures) could have on miners. It notes that this is coming at a time when the spot gold price has pulled back meaningfully from its highs and below consensus expectations. While this is bad news for many gold miners, UBS highlights that Newmont has exposure to copper, which it believes will soften the blow. As a result, it remains positive and has named the company as one of its preferred gold exposures right now. The Newmont share price ended the week at $148.76.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy right now
• Why Chalice Mining, CSL, Megaport, and Pro Medicus shares are racing higher
• 3 ASX 200 mining shares to buy: experts
• 7 ASX 200 shares with strengthened buy ratings this week
• 3 ASX 200 stocks racing higher in this week’s slumping market

Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. 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.

Macquarie Group Ltd (ASX: MQG) shares may be one of the more popular ASX dividend options because of the company’s perceived stability, dividend yield and passive income growth.

The ASX financial share typically has a decent, but lower, dividend yield compared to competitors like Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

Macquarie’s dividend has increased in most years since 2013, with there only being a couple of years when the payout was reduced.

In the ASX financial share’s recent FY26 result, the business decided to hike its annual dividend per share by 7.7% to $7 per share following a 30% increase of net profit to $4.85 billion.

In this article, we’re going to look at the annual FY27 dividend, which will be paid during 2027.

2027 dividend projection for owners of Macquarie shares

According to the projection on CMC Invest, the ASX financial share is projected to pay an annual dividend per share of $7.40 in the 2027 financial year.

At the time of writing, this forecast translates into a dividend yield of 3.1% excluding franking credits and 3.6% including franking credits.

If someone were to invest $8,000 in Macquarie, they would be able to buy 33 Macquarie shares (with a little bit of money left over).

With those 33 Macquarie shares, investors could receive $244.20 of cash and some franking credits, the level of franking credits is not known at this stage because the ASX bank share is only paying partially franked dividends.

Is this a good time to invest in the ASX bank share for passive income?

According to CMC Invest, there have been nine analyst ratings calls on the business in the last three months.

Of those nine ratings, five were buys, three were holds and one was a sell. So, the investment professionals are, on average, more positive on the appeal of the company’s valuation right now.

The average price target of those nine ratings is $244.56. That means, collectively, those analysts are predicting the Macquarie share price will (at the time of writing) hardly move over the next year.

Over the past year, the Macquarie share price has been under $200, so analysts seem to think the company will hold onto its 2026 gain.

But, with low returns on offer (at the time of writing), according to the price target, there seem to be more compelling ASX shares out there to buy.

The post If I invest $8,000 in Macquarie shares, how much passive income will I receive in 2027? appeared first on The Motley Fool Australia.

More reading

• 7 ASX 200 shares with strengthened buy ratings this week
• How to become rich by investing in ASX shares
• 3 ASX shares Warren Buffett would probably love right now
• 5 ASX dividend shares to buy with $5,000 this month
• Can you turn $20,000 into $100,000 with ASX shares?

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

Warren Buffett has been by far one of the greatest investors in the world, leading Berkshire Hathaway to incredible long-term returns. I believe this is a good time to consider whether Buffett would be interested in BHP Group Ltd (ASX: BHP) shares, Australia’s biggest company.

Berkshire Hathaway is best known for its investments in areas like insurance, banking, railroads, Coca Cola, Apple and a few others. Mining has not been one of his key areas of focus.

But, Buffett is an American who has focused on American shares. Perhaps if he were Australian, he might have considered BHP shares as a possible investment?  

Why Buffett may have considered BHP shares

Warren Buffett and Charlie Munger together had a great track record of picking long-term, compounding businesses.

They would aim for high-quality businesses with strong economic moats. In other words, companies with competitive advantages that are expected to endure and help them fight off challengers.

The duo in charge of Berkshire Hathaway once commented that they’d rather own a wonderful business at a fair price than a fair business at a wonderful price. BHP is certainly a wonderful company that’s among the world leaders at producing iron ore, with very low operating costs.

Additionally, the company has pleasing growth prospects in terms of copper projects and potash (which is seen as a greener fertiliser).

If commodity, particularly copper, prices continue rising as time goes on, this could be very beneficial for BHP’s margins. The prospects look good for copper, considering the ongoing electrification and investments in battery energy storage around the world.

However, it’s not all positive when considering BHP shares.

Factors going against an investment

Warren Buffett is a fan of being greedy when others are fearful and fearful when others are greedy. The market has clearly been excited about the ASX mining share – the BHP share price has risen more than 70% in the past year.

BHP is what could be called a price-taker rather than a price-maker. It sells its commodities based on resource prices, rather than being able to dictate what price it charges customers/subscribers like plenty of high-quality shares out there.

Buffett does not have much of a history of buying price-takers, particularly miners.

I could understand Warren Buffett being interested in BHP shares if it were trading at a cyclical low point, but it’s trading at close to an all-time high. Investing at the low point of a cycle can be a contrarian and very rewarding investment.

So, I’d suggest there are other ASX shares that Warren Buffett would rather invest in today.

The post Would Warren Buffett buy BHP shares? appeared first on The Motley Fool Australia.

More reading

• Why 30 June is the most important date for your superannuation this year
• BHP and these ASX 200 shares are up 30%+ in 2026
• ASX 200 iron ore shares down 5%: Should you buy the dip?
• BHP shares hit a record high this week. Is the rally about to crack?
• 7 ASX 200 shares with strengthened buy ratings this week

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

For many 30-year-olds, thinking of planning for retirement is probably not close to top of the to do list.

That’s understandable – accessing their superannuation is at least 30 years off and they have plenty of time to think about it in the intervening period.

That said, a little goes a long way in terms of the benefits of compound interest, and relatively modest additional contributions to superannuation can have a big impact over that time.

What do the numbers say?

So how much superannuation does the average 30-year-old have?

The most recent figures from The Association of Superannuation Funds of Australia (ASFA) show males aged 30 to 34 have $55,690 in superannuation on average, while females have $46,586.

ASFA also has a resource which allows you to plug in your age and see what superannuation balance is preferable if you are aiming for a “comfortable” retirement.

This figure for a 30 year old is about $70,500, which as you can see, is considerably higher than the average person has accrued at that age.

This calculator assumes a pre-tax wage income of $63,000, and a lump sum at retirement of $630,000 in today’s dollars.

The ASFA comfortable lifestyle standard assumes that for those who own their own home, a comfortable lifestyle would need an income of $54,840 for singles and $77,375 for couples.

A comfortable retirement includes top level health insurance, being able to own and maintain a reasonable car, regular leisure activities, and an ability to pay bills as they fall due.

Superannuation strategies

So how can you boost your super if you’re looking to ensure a comfortable retirement?

Firstly, if you’re a low or middle income earner, you can make a personal non-concessional (after tax) contribution to your super fund, and the government might also make a co-contribution of up to $500.

The Australian Taxation Office website says:

The government co-contribution you receive depends on your income and how much you contribute. You don’t need to apply for the super co-contribution. When you lodge your tax return, we will work out if you’re eligible. If your super fund has your tax file number (TFN), we will pay it to your super account automatically.

The government also has a super co-contribution calculator which can be used to assess what you are eligible for.

Another way of boosting superannuation balances is via concessional contributions.

This involves making extra payments out of salary before it is taxed, with the contributions taxed at 15% when they enter the super account.

Up to $30,000 can be paid into superannuation each year via this method, however keep in mind that employer’s contributions count towards the total.

Concessional contributions can also be tracked by using the ATO’s online services and logging into your account.

The post How much superannuation does the average 30-year-old have, and how to give it a boost appeared first on The Motley Fool Australia.

More reading

• Here’s the dividend forecast out to 2028 for Coles shares
• 4 reasons to buy Transurban shares today
• These ASX 200 shares could rise around 50% to 60%
• 2 ASX ETFs I’d buy for the AI decade
• Are Wesfarmers, Xero and this ASX 200 share buys in June?

Motley Fool contributor Cameron England 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.

Coles Group Ltd (ASX: COL) shares are a solid option for long-term passive income given the defensive nature of its products and how steadily its earnings grow over time.

Coles is not just a supermarket company, of course. It also has a number of other businesses including Coles Liquor, Liquorland, Coles Financial Services (insurance and credit cards) and a 50% share of Flybuys.

It has already increased its annual dividend per share each year since 2019 and the recent FY26 third-quarter update was pleasing – total group revenue rose 3.1%, with supermarket revenue growth of 4%.

Let’s look at what experts think could happen in the next few years.

FY26

Investors have already seen the performance of the business over the first six months of the 2026 financial year.

Coles reported group revenue growth 2.5% to $23.6 billion, underlying operating profit (EBIT) growth of 10.2% to $1.2 billion and underlying net profit growth of 12.5% to $676 million. That allowed the business to fund an interim dividend per share of 41 cents.

The projection on CMC Invest suggests the business could pay an annual dividend per share of 77.7 cents, though I suspect it will end up paying a dividend that comes to a whole cent – such as 77 cents or 78 cents per share.

The forecast represents potential year-over-year growth of 12.6% compared to FY25. The projected payment for FY26 could be a grossed-up dividend yield of 5.1%, including franking credits, at the time of writing.

FY27

The dividend growth is expected to continue in the 2027 financial year for owners of Coles shares, which could be exactly what long-term shareholders are hoping for.

The FY27 annual dividend per share is projected to rise by 9.7% year-over-year next financial year to 85.2 cents per share, which would be another pleasing year of growth for investors.

At the time of writing, this translates into a potential grossed-up dividend yield of 5.6%, including franking credits.

FY28

The last year of this series of projections is expected to have the best dividend of all for owners of Coles shares.

The FY28 annual dividend per share is forecast to rise by 6.8% to 91 cents per share. I expect that will be comfortably above inflation, so that looks like a pleasing rate of payout growth to me. It would also mean the annual dividend grows by 17% between FY26 and FY28

The predicted payout translates into a possible grossed-up dividend yield of 6%, including franking credits, at the time of writing.  

Overall, this could be a useful time to consider Coles shares for the long-term.

The post Here’s the dividend forecast out to 2028 for Coles shares appeared first on The Motley Fool Australia.

More reading

• This beaten-down ASX 200 stock just jumped 5%. Is the market too negative?
• Top brokers name 3 ASX shares to buy now
• Why’s the ASX 200 falling today despite another tech rally?
• How to get wealthy investing $300 a month into ASX shares
• Here’s how Coles and Woolworths shares stacked up in May

Motley Fool contributor Tristan Harrison 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.

Transurban Group (ASX: TCL) shares have materially outpaced the S&P/ASX 200 Index (ASX: XJO) in 2026.

Shares in the ASX 200 toll road developer and operator were recently trading for $14.98 apiece, up 5.6% year to date.

The ASX 200, on the other hand, was down 0.6% for 2026 late this week.

Atop that share price outperformance, Transurban also paid eligible stockholders an unfranked 34 cents per share dividend on 24 February.

And looking ahead, Catapult Wealth’s Dylan Evans believes this $47 billion ASX 200 stock can keep outperforming (courtesy of The Bull).

Here’s why.

Should I buy Transurban shares today?

“TCL operates toll roads in Australia and the United States,” Evans said.

Citing the first reason he’s bullish on the ASX 200 stock, he said, “It generates reliable inflation linked cash flows, underpinning a relatively defensive stock.”

Indeed, in an era of resurgent inflation, companies that can pass those rising costs on without suffering significant demand deterioration have a distinct advantage.

When the company reported its March quarter results on 9 April, management noted, “Historically, Transurban has demonstrated resilience in periods of market dislocation, with more than 90% of revenue CPI-linked or with fixed escalations.”

However, Evans cautioned, “The shares are sensitive to rising interest rates, partially due to its significant debt, which, in our view, has weighed on the stock in the past few years.”

On the plus side, and supporting his buy recommendation on Transurban shares, he said, “During the same time, Transurban has been growing traffic volumes and has been involved in completing several significant projects, including the West Gate Tunnel in Melbourne.”

As for the third reason you may want to buy shares now, he said, “Any easing in inflation and interest rates would boost the company’s performance.”

Then there’s that welcome passive income on offer.

“In the meantime, Transurban offers an attractive dividend yield, reliable earnings and a development pipeline with long term growth potential,” Evans concluded, rounding off the fourth reason he’s bullish on the stock.

At recent prices, Transurban stock trades on an unfranked 4.5% trailing dividend yield.

What’s the latest from the ASX 200 stock?

The last release deemed price sensitive to Transurban shares was an April traffic market update, released on 4 May.

Among the highlights the company reported that April saw commercial vehicle traffic on its toll roads across Australia increase by 10.8%.

And traffic in its core Melbourne market was up by 1.6% in April, which management credits to the ongoing ramp-up of the West Gate Tunnel project.

The post 4 reasons to buy Transurban shares today appeared first on The Motley Fool Australia.

More reading

• 5 tips to navigate ASX share market volatility
• Buy, hold, sell: Transurban, Sonic Healthcare, A2 Milk shares
• Buying Transurban shares? Here’s the dividend yield you’ll get today
• 3 ASX defensive stocks to buy while sharemarkets are volatile
• Which defensive shares are outperforming the ASX 200

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

The Australian share market has traditionally generated an average annual return of around 10%.

While that is undoubtedly a great return, investors don’t necessarily have to settle for targeting it.

That’s because there are some ASX 200 shares that are being recommended as buys and tipped to rise considerably more.

Here are two shares that analysts are recommending to Aussie investors this month:

Nufarm Ltd (ASX: NUF)

The team at Morgans believes that agricultural chemicals company Nufarm could be an ASX 200 share with considerable upside.

The broker was pleased with the company’s half-year results, which revealed that its earnings were at the high end of its guidance range.

Morgans believes this leaves Nufarm well-placed to deliver strong earnings growth in FY 2026.

As a result, it has put a buy rating and $4.15 price target on its shares. Based on its current share price, this implies potential upside of almost 50%.

Commenting on its recommendation, the broker said:

NUF’s 1H26 result was at the higher end of guidance with the company reporting strong earnings growth. Seed Technologies reported a particularly strong result. NUF is on track to deliver strong underlying EBITDA growth in FY26. Pleasingly, the company upgraded its Seed Technology guidance. NUF is our key pick of the ag and chemical sector. The company is materially undervalued and we reiterate our BUY rating with a new price target of A$4.15.

Web Travel Group Ltd (ASX: WEB)

Morgans is also bullish on this travel technology company and believes it could be an undervalued ASX 200 share.

It was pleased to see the WebBeds owner’s FY 2026 results come in ahead of expectations.

In response, the broker upgraded its shares to a buy rating with a $3.75 price target. Based on its current share price, this suggests that upside of almost 60% is possible between now and this time next year.

Speaking about its upgrade, Morgans said:

Given the Middle East conflict affected trading in March, WEB’s FY26 result came in at the lower end of guidance, albeit better than consensus, proving its resilience. Unsurprisingly, WEB’s FY27 update showed that trading has slowed materially given the conflict. Adverse FX has been another headwind.

Given the uncertainty, WEB did not provide any formal FY27 earnings guidance. We have made significant downgrades to our forecasts. We assume that the conflict and a subdued consumer environment impacts WEB’s 1H27 (seasonally stronger half), followed by a recovery in the 2H27. After material share price weakness, we upgrade WEB to a BUY rating. The company is worth materially more than the current share price. We know from past economic and geopolitical events, that after a downturn, travel demand rebounds and so will its earnings and share price.

The post These ASX 200 shares could rise around 50% to 60% appeared first on The Motley Fool Australia.

More reading

• 7 ASX shares attracting upgraded ratings this week
• Top brokers name 3 ASX shares to buy next week
• 10 ASX shares given buy ratings this week
• 4 ASX 200 shares tipped to rise 30% or more in the year ahead
• Macquarie names 3 ASX 200 stocks to buy right now

Motley Fool contributor James Mickleboro has positions in Web Travel Group Limited. 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.

I think artificial intelligence (AI) could become one of the defining investment themes of the next decade.

But I do not think investors need to treat AI as a simple race between a handful of mega-cap technology companies. The opportunity is likely to spread across many layers of the economy.

There will be companies building chips, running data centres, developing software, automating factories, improving logistics, powering robotics, and using data in ways that were not possible a few years ago.

That is why I think exchange-traded funds (ETFs) can be a useful way to invest in the theme.

Two ASX ETFs I would consider buying for the AI decade are named in this article.

Betashares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

The first ASX ETF I like is the Betashares Global Robotics and Artificial Intelligence ETF.

I think this fund is interesting because it captures a part of AI that can be easy to overlook: the physical world.

AI is not only about chatbots, search tools, and software assistants. Over time, it could help machines become smarter, factories become more automated, warehouses become more efficient, and healthcare systems become more precise.

That is where robotics comes in.

The RBTZ ETF gives investors exposure to companies involved in robotics, automation, and artificial intelligence. I like that because many businesses will not just use AI to write emails or summarise information. They will use it to make physical processes faster, safer, and more productive.

This could include industrial robots, automation equipment, sensors, medical technology, logistics systems, and other companies connected to the robotics supply chain.

I see this as a long-term productivity theme. Labour shortages, rising wages, reshoring, supply chain resilience, and the push for efficiency could all support demand for better automation over time.

As always, there are risks to consider. Robotics and AI-related shares can trade on high expectations, and some companies in the sector may be cyclical. Factory investment can slow when economic conditions weaken.

But I like the idea of owning exposure to the companies helping AI move from screens and servers into the real economy.

Global X Artificial Intelligence ETF (ASX: GXAI)

The second ASX ETF I would consider is the Global X Artificial Intelligence ETF.

This fund takes a more direct approach to the AI and big data theme. It provides exposure to companies that could benefit from the development and use of artificial intelligence, as well as the infrastructure and analysis behind it.

What I like about the GXAI ETF is that AI is not a single product category.

It can involve semiconductors, cloud platforms, software, data analytics, cybersecurity, automation, and digital infrastructure. A company might benefit by supplying chips. Another might benefit by building software tools. Another might provide the data, storage, or computing layer that makes AI useful.

That makes stock picking difficult.

The winners may also change over time. Some companies that look dominant today may face tougher competition later. Others may quietly benefit as AI moves deeper into business workflows.

An ETF can help reduce the pressure to pick the perfect individual winner.

I also like that the GXAI ETF can give investors exposure outside the obvious ASX technology names. Australia has some strong tech businesses, but the AI ecosystem is global. Many of the companies driving the theme are listed overseas.

This ETF will still be volatile. If AI expectations become too stretched, share prices can fall quickly. But for investors who believe AI adoption has years to run, I think this is a cleaner way to gain exposure than chasing one hot stock.

Foolish takeaway

The AI decade may not reward investors in a straight line. There will likely be hype, disappointment, breakthroughs, and valuation resets along the way. That is normal for a major technology shift.

What I like about these two ASX ETFs is that they approach the theme from different angles. One leans into robotics and automation, while the other gives broader exposure to AI, data, and the digital businesses behind the trend.

For patient investors, I think that combination could be a useful way to participate in the AI boom without needing to know today exactly which company will be the biggest winner in 2036.

The post 2 ASX ETFs I’d buy for the AI decade appeared first on The Motley Fool Australia.

More reading

• 3 excellent ASX ETFs for beginners to buy now
• Where to invest $5,000 in ASX ETFs in June 2026
• 3 exciting ASX ETFs to buy and hold for 10 years
• Could this ASX ETF be the easiest way to invest in AI?
• Investors who looked offshore for tech exposure are being handsomely rewarded by these ASX ETFs

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.

June has started with several high-quality ASX 200 shares looking interesting to me at current levels.

Wesfarmers Ltd (ASX: WES), Xero Ltd (ASX: XRO), and Aristocrat Leisure Ltd (ASX: ALL) are all very different businesses, but I think each could be worth buying this month, and I’m not alone.

Analysts from Morgans have spoken positively about all three recently. 

Wesfarmers shares

Wesfarmers is not a stock I would usually expect to look obviously cheap.

The market recognises this is a high-quality business and often prices the company accordingly. But after a weaker period for the share price, I think the valuation looks more reasonable than it did a year ago.

Morgans notes that Wesfarmers shares have fallen 9% over the past 12 months and 7% over the past six months. The broker says the stock is now trading on 26.5 times forecast FY27 earnings, compared with a peak one-year forward P/E multiple of around 37 times in August 2025.

That is still a premium valuation, but I think it is more digestible for a business of this quality.

What appeals to me is Wesfarmers’ ability to keep improving its businesses over time. This is not just about owning strong retail brands. It is about the group’s culture of discipline, cost control, operational improvement, and reinvestment.

Morgans highlights Wesfarmers’ healthy balance sheet, proven management team, and strong value propositions across its retail divisions. It also sees a possible medium-term earnings boost from better lithium prices.

The broker has recently upgraded the stock to accumulate and lifted its target price slightly to $81.10. I would go a step further and call Wesfarmers a buy for long-term investors.

Xero shares

Xero is another ASX 200 share I think looks attractive in June.

The small business software company recently delivered better-than-expected FY26 results and an FY27 outlook, according to Morgans. The broker also notes that earnings momentum continues to improve relative to consensus expectations.

I think the key attraction is that Xero is becoming more valuable to small businesses over time.

Accounting remains the foundation, but the opportunity is broader. Xero can help with invoicing, payments, payroll, tax, reporting, cash flow, and increasingly automated financial tasks.

The market has been nervous about artificial intelligence (AI) disruption. I understand that concern. AI could change how customers use software and what they are willing to pay for.

But I think Xero is better placed than many to turn AI into an advantage. If it can make its platform faster, simpler, and more useful for business owners, AI could deepen customer reliance rather than weaken it.

Morgans also points out that management was confident enough to announce a buyback and hint at potential capital management in FY28. The broker has retained its buy rating and $111 target price.

I agree with the positive view. Xero still has execution risk, particularly around the US and AI monetisation, but I think the long-term opportunity remains excellent.

Aristocrat Leisure shares

The third ASX 200 share I would buy in June is Aristocrat Leisure.

This is one of the ASX’s best global growth businesses in my view.

Aristocrat has built a powerful position in gaming content, cabinets, digital gaming, and interactive entertainment. What I like most is that its success is not built on one product cycle alone. It has a deep content engine, a global customer base, and the balance sheet strength to invest through changing conditions.

Morgans was positive on the company’s first-half result, noting that gaming was the clear standout. The broker highlighted strong outright sales, continued demand for the Baron cabinet, and solid leased additions.

There were weaker areas in Product Madness and Interactive, but Morgans still lifted its earnings per share forecasts and increased its target price to $67. It retained its buy rating.

I think financial strength is important because it gives Aristocrat the room to buy back shares, invest in content, pursue acquisitions, and continue strengthening the business.

Foolish Takeaway

What I like about this group is that the investment cases are not built on one narrow theme.

Each business has a different way to create value, and each has enough quality to remain interesting beyond June.

Morgans is positive on all three, and while I am slightly more bullish on Wesfarmers than the broker’s accumulate rating, I think the broader message is clear: these are ASX 200 shares worth considering while valuations and sentiment still look reasonable.

The post Are Wesfarmers, Xero and this ASX 200 share buys in June? appeared first on The Motley Fool Australia.

More reading

• Why 30 June is the most important date for your superannuation this year
• Canaccord Genuity has just added these two ASX 200 shares to its best ideas list
• 3 amazing ASX growth shares to buy with $15,000
• How to become rich by investing in ASX shares
• 3 ASX 200 tech shares to buy now: expert

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

The Commonwealth Bank of Australia (ASX: CBA) share price has seen ups and downs in the last year, as the chart below shows. I think this is a good time to look at whether the ASX bank share is an attractive buy or not.

Despite recovering some of the early May decline, the bank is still (at the time of writing) approximately 10% lower than it was in April 2026.

I get excited when quality businesses fall because that means we can buy them at a lower price with a larger margin of safety. However, a decline doesn’t necessarily mean it’s great value.

Is this a good time to buy the CBA share price?

It may be 10% cheaper, but its price/earnings (P/E) ratio is still worth contemplating.

According to the forecast on CMC Invest, the ASX bank share is projected to generate $6.48 of earnings per share (EPS) in FY26. That means it’s trading at more than 25x FY26’s estimated earnings.

Of course, the P/E ratio is one thing, but the other part of the equation is considering whether its earnings growth rate is strong enough to make that valuation appealing.

The latest information available to the market is the CBA FY26 third-quarter result. While I wouldn’t base all expectations of the ASX bank share’s future growth on one quarter, I think it’s a good indicator of how the bank is performing and is the latest influence on the CBA share price.

Cash net profit after tax (NPAT) for the three months to 31 March 2026 came to approximately $2.7 billion. This was a rise of 4% year-over-year, though it was a reduction of 1% compared to the quarterly average of the first half of FY26.

It said that business lending grew 12.5% (1.2x as fast as the market), household deposits grew 9.1% (1.1x as fast as the market) and there was 7.1% growth of home lending (approximately the same speed as the market).

But, it also included a $316 million loan impairment expense with higher collective provisions, reflecting heightened geopolitical and macroeconomic uncertainty.

So, while the bank did see an impressive level of loan volume growth, borrowers also face more uncertainty because of the wider economic picture.

Conclusion on Commonwealth Bank

The investment professional community doesn’t see value here with the CBA share price. According to Commsec, analysts are bearish on the ASX bank share valuation, with 14 sell ratings and just two hold ratings.

Combined with the clouded picture for banks following the Federal budget and the possible impacts on home loan demand, I think there are better opportunities out there on the ASX share market.

The post Is the CBA share price a buy in June? appeared first on The Motley Fool Australia.

More reading

• Why CBA, PLS, Resolute Mining, and Silver Mines shares are dropping today
• 3 ASX shares Warren Buffett would probably love right now
• How much super do you actually need to retire in Australia? The answer might surprise you
• 2 ASX income shares I’d buy outside Westpac and the big four banks
• How these 3 headwinds could sink CBA shares in 2026

Motley Fool contributor Tristan Harrison 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.