Category: Stock Market

As investors prepare to flip their calendars to a fresh month, there’s a growing case for targeting ASX 200 value shares. 

At its core, value investing involves identifying companies whose shares are trading below what they are actually worth. 

This is based on their underlying financial performance, assets, and long-term earning potential.

Value investing usually targets mature, blue-chip stocks rather than small-caps. 

With that in mind, here are three ASX 200 stocks that could fall into this category. 

PEXA Group Ltd (ASX: PXA)

PEXA provides a digital conveyancing platform for real estate settlements in Australia. The company touts itself as offering world-first technology that facilitates near real-time tracking of settlements and faster clearance of funds.

This ASX 200 stock has struggled in 2026, falling 20% in that span. 

However analysis from brokers and experts indicates this quality company has likely been oversold. 

Despite falling significantly, its fundamentals still look strong. 

In its most recent 3Q26 results, the company posted steady growth in transaction volume and national market penetration. 

Looking ahead, it also reaffirmed NPAT guidance for FY26 at the top end of the $15m–$25m range.

Following these results, the team at Ord Minnett placed a buy rating and $20.00 price target on this ASX 200 stock. 

Ord Minnett was pleased with the ongoing momentum in Australian property transaction volumes. 

At the time of writing, PEXA shares are trading for around $10.70, indicating a potential 87% upside. 

Guzman Y Gomez Ltd (ASX: GYG)

It has been a volatile year for Guzman Y Gomez shares. 

The fast-casual Mexican food chain saw its share price fall 25% to start the year, before soaring last week on the back of news it had withdrawn from the US market. 

Investors apparently saw this move as a disciplined one from management, as the company refocussed its efforts to domestic growth. 

At the time of writing, GYG shares remain down 37% over the last year, and still firmly sit in undervalued territory according to experts. 

Morgans has put a buy rating and $29.40 price target on this ASX 200 stock, indicating an upside potential of 52% from current levels. 

Life360 Inc (ASX: 360)

Life360 is a United States-based software development company. The company’s core product is a private family and friends social networking app that allows users to communicate and share their locations.

It was a stock market darling in 2025, but has since tumbled 42% year to date. 

Despite this fall, Bell Potter believes the ASX 200 company has a healthy base of paid subscribers, and is strategically implementing AI into its model. 

The broker has a recent price target of $33 on this ASX 200 stock, indicating an upside potential of 74%. 

The post 3 highly undervalued ASX 200 stocks to target in June with up to 87% upside appeared first on The Motley Fool Australia.

More reading

• Are Guzman Y Gomez shares a buy after rebounding 28% from a historic low?
• Top brokers name 3 ASX shares to buy now
• Why EOS, Life360, Nufarm, and Web Travel shares are pushing higher today
• Why Life360 shares could be cheap and heading 75% higher
• 5 things to watch on the ASX 200 on Wednesday

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 Life360 and PEXA Group. The Motley Fool Australia has positions in and has recommended Life360 and PEXA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

PLS Group Ltd (ASX: PLS) shares closed in the red on Wednesday afternoon. At the close of the ASX, the ASX mining stock was down around 2% to $6.28 a piece.

But the decline barely dented PLS Group’s gains this year.

The Australian lithium miner’s shares have had a fantastic run over the past year. The shares are still up around 46% for the year-to-date and its annual increase is enormous.

So, if I’d invested $5,000 in PLS Group shares 12 months ago, what would it be worth today?

At the time of writing, the share price is a huge 369% higher than just 12 months ago.

That means that $5,000 invested in the ASX mining stock in late-May last year would be worth around $23,450.

That’s an impressive increase.

Even if you invested the same amount when the ASX first opened in January this year, your $5,000 investment would already be worth around $7,300.

Why has the share price climbed so high, and so quickly?

A lot of the share price increase over the past 12 months is due to a rally in lithium prices and improved sentiment. This was primarily driven by a surge in interest in electric vehicles (EVs) and battery energy storage. 

Global EV sales have been rising faster than carmakers can keep up, and demand for grid-scale energy storage amid a shift towards renewable energy is also soaring.

Ongoing tension in the Middle East, and consequential oil supply restraints, has also prompted a significant shift towards EVs as an alternative to petrol-fueled vehicles.

And as owner and operator of one of the world’s largest independent hard rock lithium mines, Pilgangoora in Western Australia, PLS has naturally scooped up a lot of the demand.

But it’s not just market fundamentals that have pushed the company’s share price higher over the past year. The business is also booming.

The ASX mining stock posted its third quarter update in late-April. It revealed a huge 52% quarter-on-quarter revenue increase for the March quarter. This was fuelled by a 61% increase in the average realised spodumene price PLS Group received over the three months, which rose to US$1,867 per tonne (SC5.2 equivalent).

The miner also reported a 12% increase in production to 232,400 tonnes. It also said it sold 195,700 tonnes of spodumene over the same period.

What’s next for the ASX mining shares? Can they keep climbing?

It looks like analyst sentiment on the ASX mining stock has started shifting, with many anticipating that the stock is reaching (or has now passed) fair value after the latest price rises.

TradingView data shows that eight out of 16 analysts have a buy or strong buy rating on the stock. Five analysts have a hold rating, and another five rate the shares as a sell or strong sell.

The average target price of $5.66 now implies a potential 10% downside at the time of writing.

Forecasts are quite split, however. Some think the shares have the potential to increase another 15% to $7.20 while others tip the shares to decline up to 59% to $2.60.

The post If I’d invested $5,000 in this ASX mining stock 12 months ago I’d have over $23k today! appeared first on The Motley Fool Australia.

More reading

• The top 3 Betashares ASX ETFs over the past year
• Here are the top 10 ASX 200 shares today
• Why DroneShield, Lynas, PLS, and TechnologyOne shares are falling today
• Why Alkane Resources, Bapcor, PLS, and Resolute Mining shares are sinking today
• ASX lithium stocks surge more than 300%: is there more to come?

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.

Some ASX shares are built for short bursts of excitement. Others can compound value over many years by reinvesting at attractive rates, expanding into larger markets, and strengthening their competitive positions.

That second group can be powerful for patient investors, as high-quality businesses with long runways can create serious wealth over time.

Here are three that could do this over the next decade:

Hub24 Ltd (ASX: HUB)

The first ASX share to look at is Hub24.

It operates an investment platform used by financial advisers and their clients. These platforms help manage portfolios, reporting, administration, and access to investment products in one place.

Hub24 has benefited from a major shift in Australia’s wealth management industry. Advisers have been moving away from older platforms and toward technology-led providers that offer better functionality, flexibility, and service.

This has helped the company win market share and attract growing funds under administration. And as more money flows onto its platform, Hub24 benefits from scale, recurring revenue, and deeper relationships with advisers.

There will always be competition in platform technology. But Hub24 has built a strong position in a large industry that still has room to modernise.

Light & Wonder Inc (ASX: LNW)

Another ASX share that could build wealth over time is Light & Wonder.

It operates in the global gaming industry, providing gaming machines, digital casino content, and social gaming products. This gives it exposure to several parts of a large entertainment market.

Light & Wonder’s strength is its content. Successful gaming products rely on engaging maths models, strong brands, player appeal, and distribution across land-based and digital channels. When a company gets that mix right, popular titles can travel across markets and formats.

The business also has a global opportunity. Casinos, digital operators, and social gaming platforms all need fresh content to keep players engaged. That creates a long runway for companies that can consistently develop and distribute successful games.

This is not a risk-free sector. Regulation, competition, and consumer trends all matter. But Light & Wonder has a platform that gives it multiple ways to grow earnings if it continues executing well.

Macquarie Group Ltd (ASX: MQG)

A third ASX share to consider is Macquarie.

The investment bank and asset manager has built one of the most impressive long-term track records on the ASX. Its operations span asset management, commodities, infrastructure, green energy, banking, and markets.

What makes Macquarie interesting is its ability to find growth opportunities across cycles. It is not reliant on one narrow earnings stream. Some divisions perform better in volatile markets, while others benefit from long-term investment themes.

Its global infrastructure and asset management capabilities are particularly important. Demand for capital to fund energy transition, data infrastructure, transport assets, and essential services could remain significant for decades.

Overall, few ASX financial shares have shown the same ability to adapt, reinvest, and grow across different environments as Macquarie.

The post 3 ASX shares that could build serious wealth for shareholders appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy now
• How do ASX dividend shares compare to savings deposit rates today?
• Morgan Stanley tips 5% earnings downgrades for ASX 200 bank shares. Here’s why
• 4 ASX 200 shares tipped to jump another 70-80%
• I would buy these world-class ASX shares for an SMSF

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 Hub24, Light & Wonder Inc, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Hub24 and Light & Wonder Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) enjoyed a positive hump day session this Wednesday, reversing some of the losses we saw yesterday with many ASX shares pushing higher.

After some morning wobbles, the ASX 200 spent most of the session in green territory, and ended up closing with a happy 0.69% rise. That leaves the index at 8,717.7 points.

This pleasant Wednesday session for Australian investors comes after a mixed return to trading for the American markets last night, following Monday’s public holiday.

The Dow Jones Industrial Average Index (DJX: .DJI) gave up some initial optimism to close down 0.23%.

However, the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared better, gaining a solid 1.19%.

But let’s return to the local markets now and look a little closer at what was happening with the different ASX sectors this hump day.

Winners and losers

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

More reading

• Morgans says these ASX shares are buys this week
• ASX 200 rises as inflation surprise leaves investors with one big question
• 5 ASX 200 growth shares to buy next month
• ASX 200 jumps as April’s inflation print eases RBA interest rate pressures
• Morgans says these ASX shares can rise 9% to 27%

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 Megaport and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Data#3. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As an Australian, I love investing in Australian companies. There are many high-quality shares listed on the ASX, and many have a home in my personal investing portfolio. However, the ASX is only a small patch of the global investing garden. In fact, four of my five top stocks in the world are found beyond Australia’s shores. Today, let’s go through those five, and why I think they are the best companies money can buy.

My top five favourite stocks in the world

Coca-Cola Co (NYSE: KO)

Is there a product that is more famous and more ubiquitous in the world than Coca-Cola? I challenge you to name one. The Coca-Cola Company is the business behind the brand, controlling global ownership of this invaluable trademark. Coke has been a solid investment for decades.

No challenger can dislodge its century-old brand, nor consumers’ love for it. This makes Coca-Cola recession-proof, inflation-resistant and a formidable investment. Warren Buffett held Coca-Cola shares for decades, and that says more than anything I can.

Procter & Gamble Inc (NYSE: PG)

Procter & Gamble may not be the household name that Coca-Cola is. But I’d wager that there may be even more Procter & Gamble products than Coca-Cola ones in most Australians’ houses as I write. This consumer staples giant is the name behind beloved household brands like Gillette, Oral-B, Fairy, Head & Shoulders, Vicks, Tide, Olay, and Old Spice, amongst others.

These brands have graced households all over the world for decades. Given how ingrained into daily life they are, this makes Procter & Gamble another top stock, and a defensive, reliable investment one can hold for decades.

Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)

Google-owner Alphabet is next up. This company’s incredibly successful Google Search product, its flagship, needs little introduction. It is nothing less than the world’s gateway to the internet, and has been for 20 years. These days, though, Alphabet has far more going for it than just Google Search. It also owns a leading AI platform in Gemini. Not to mention one of the world’s most popular entertainment platforms, YouTube. Alphabet’s other ventures include Google Cloud, and self-driving vehicle company Waymo.

There is so much to like about Alphabet. It is my yp Magnificent 7 stock, and is set, at least in my view, to be a world-leading company for decades to come.

Nintendo Co Ltd (TYO: 7974)

Next up, we have another household name in Nintendo. It’s my opinion that Nintendo owns some of the most valuable intellectual property in the world. It has been a leader in gaming since the 1980s, with many of its original characters, including Donkey Kong and Mario, remaining entertainment staples today. In addition, Nintendo also part owns the most successful entertainment franchise in history: Pokémon.

This is a company that knows the value of its property and knows how to protect and leverage it. It has gone from strength to strength in recent years, and, in my view, remains a top stock and a screaming buy for long-term investors.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

Our final stock is our only ASX share on this list. Washington H. Soul Pattinson and Co is an investment house. It manages a vast, underlying portfolio of investments for its shareholders. Soul Patts has been doing this for decades, and is very good at it.

Earlier this year, the company confirmed that its shareholders have enjoyed a total return (share price growth plus dividends) of 12.9% per annum over the 25 years to 31 January 2026. That’s well above what the broader market returned. This top stock also has the best dividend growth streak on the ASX, having delivered an annual dividend hike every year since 1998.

The post Screaming buys: My top 5 favourite stocks in the world appeared first on The Motley Fool Australia.

More reading

• How much is needed in superannuation to target a $3,000 monthly passive income?
• Don’t want to rely on your wage? Build a second income with these ASX shares
• Berkshire Hathaway just sold these stocks
• SpaceX IPO: What are dual-class shares?
• $10,000 buys 237 shares in this trusty ASX dividend stock

Motley Fool contributor Sebastian Bowen has positions in Alphabet, Coca-Cola, Procter & Gamble, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Nintendo, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Alphabet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Woolworths Group Ltd (ASX: WOW) is the kind of ASX 200 share that I think deserves a spot in most portfolios.

This is a business built around everyday spending. Millions of Australians shop at Woolworths each week, and that gives the company a strong position in a category that remains essential through different economic conditions.

At a current share price of $34.40, I think Woolworths shares could be worth buying for three key reasons.

Defensive demand

The first reason I like Woolworths is its defensive nature.

Food and household essentials are not optional purchases in the same way as holidays, furniture, electronics, or luxury goods. Households may change what they buy when money is tight, but they will always need groceries.

That gives Woolworths a level of earnings resilience that many companies cannot match.

This does not mean the business is immune from pressure. Shoppers are value-conscious, competition remains strong, and supermarkets need to keep investing in prices, stores, supply chains, loyalty, and online capability.

But I think Woolworths is well placed to deal with those challenges.

A solid growth outlook

The second reason is that Woolworths is not just a defensive income share. There is still robust earnings growth expected over the medium term.

According to CommSec, the consensus estimate is for Woolworths to generate earnings per share of $1.30 in FY26, $1.48 in FY27, and $1.64 in FY28.

That implies earnings growth of close to 14% in FY27 and around 11% in FY28.

I think that is a solid outlook for a supermarket business.

Looking further down the line, the company has several ways to improve. It can keep building its online grocery business, use loyalty and data more effectively, improve store productivity, expand private label, and invest in supply chain efficiency.

None of those things will make headlines. But in a business as large as Woolworths, small improvements can still add up.

Dividends can keep rising

The third reason is income.

CommSec’s consensus estimates suggest Woolworths could pay dividends per share of 99.5 cents in FY26, $1.13 in FY27, and $1.28 in FY28.

Based on the current share price of $34.40, that would represent forward dividend yields of approximately 2.9%, 3.3%, and 3.7%, respectively.

Those are not the biggest yields on the ASX, but combined with potential capital gains, I think the overall investment outlook is compelling.

However, the valuation is worth acknowledging. Based on consensus estimates, Woolworths is trading on around 26 times FY26 earnings, 23 times FY27 earnings, and 21 times FY28 earnings.

That is not cheap. But I think Woolworths deserves to trade on a premium to many ASX shares because of its defensive qualities, market position, and expected earnings recovery.

Foolish takeaway

Woolworths shares at around $34 are not a bargain-bin opportunity.

But not every good investment starts with an obviously cheap valuation. Sometimes the appeal is owning a high-quality business with reliable demand, a strong market position, and a path to better earnings over time.

That is how I see Woolworths today. The company offers defensive exposure, forecast earnings growth, and a dividend stream that could become more attractive over the next few years. For patient investors, I think that makes the shares worth buying.

The post 3 reasons to buy Woolworths shares at $34 appeared first on The Motley Fool Australia.

More reading

• Should investors still be thinking defensive in today’s market?
• ASX 200 consumer staples shares outperformed again last week
• How to turn $500 a month into $500,000 with ASX shares
• How to build a $52,000 annual passive income
• Buying Woolworths shares? Here’s the yield you’ll get today

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

I think broker notes can be useful when they add another layer to an investment view.

They should not be followed blindly. Brokers can be wrong, forecasts can change, and target prices can move quickly. But when a broker’s thesis lines up with my own view, I think it is worth paying attention.

Morgans currently has buy recommendations on the three ASX 200 shares in this article. I also rate all three as buys.

Xero Ltd (ASX: XRO)

The first ASX 200 share is Xero.

The small business accounting software company recently reported a better-than-expected FY26 result, and Morgans believes the FY27 outlook commentary was also ahead of expectations.

What I like about Xero is that it is no longer just an accounting software business in the narrow sense. It has the chance to become a more complete financial operating system for small businesses.

That could include accounting, payroll, invoicing, payments, tax, reporting, cash flow tools, and eventually more artificial intelligence (AI)-driven support.

Morgans noted that investors appeared cautious about the risk and reward from AI disruption. I can understand that. AI could change the way small businesses interact with software over time.

But I see AI as more of an opportunity than a simple threat for Xero. If management can use it to make the platform more valuable, save customers time, and unlock new monetisation options, I think the long-term runway remains attractive.

Morgans has retained its buy recommendation and $111 target price on the stock.

Breville Group Ltd (ASX: BRG)

Breville is another ASX 200 share I like.

This is a premium appliance business with a strong position in coffee machines, kitchen products, and other higher-quality household appliances.

What makes Breville interesting to me is the way it has built a global brand around better design, performance, and the at-home coffee routine. It is not just selling appliances. It is selling products that can become part of a daily habit.

Morgans is also positive on the stock. The broker pointed to encouraging updates from relevant offshore peers, including businesses with premium appliance exposure, innovation-led product development, coffee exposure, and geographic expansion.

That is a useful read-through for Breville because it suggests premium appliance demand has not disappeared, even with a challenging consumer backdrop.

I still think investors need to be realistic. Breville can be affected by consumer confidence, currency movements, tariffs, and competition.

But I like the company’s brand, product pipeline, and international growth opportunity. In my view, it remains one of the better consumer growth shares on the ASX.

CSL Ltd (ASX: CSL)

The third ASX 200 share is CSL.

This has been a painful stock for many investors. The healthcare giant has faced downgrades, weaker confidence, and concerns around its plasma business.

Morgans recently reduced its forecasts and target price following CSL’s downgrade of guidance. The broker pointed to issues including China albumin price pressure, US immunoglobulin channel inventory normalisation, paused Iran sales, and weaker sales in some areas.

However, the important point is that Morgans still has a buy recommendation, with a target price of $147.59.

I agree with the broader thinking. CSL’s issues look serious, but I do not think they prove the business is structurally broken.

The company still has global leadership positions, large end markets, and exposure to healthcare demand that should continue to grow over time. Recovery may take years, and investors should not expect the old CSL story to simply reappear overnight.

But the valuation now looks much more interesting. If management can improve execution and rebuild confidence, I think patient investors could be rewarded.

Foolish takeaway

I like all three of these ASX 200 shares, but for different reasons.

What stands out is not simply that Morgans has buy ratings on them. It is that each stock has a credible path to being worth more over time, despite some clear risks.

Xero has a larger software opportunity ahead, Breville has a premium global brand, and CSL has recovery potential from a much lower level of confidence. For investors willing to be patient, I think all three are worth considering today.

The post 3 popular ASX 200 shares that experts rate as strong buys appeared first on The Motley Fool Australia.

More reading

• 2 of the best ASX 200 shares to buy with $10,000
• Down 40%+! I’d buy CSL and these ASX shares while investors are still cautious
• 2 incredible ASX tech shares you’ll wish you bought and held
• Xero shares vs WiseTech shares: Which ASX tech share would I buy today?
• I would buy these world-class ASX shares for an SMSF

Motley Fool contributor Grace Alvino has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Xero. The Motley Fool Australia has positions in and has recommended Xero. 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.

Guzman Y Gomez Ltd (ASX: GYG) shares are trading in the green again on Wednesday afternoon. 

At the time of writing, the shares are up slightly, around 0.3%, to $19.46 each.

The increase means the Mexican-themed fast-food restaurant chain’s shares have rebounded by around 22% from last week’s slump. And they’re 28% higher than a historic low recorded in early April.

For the year-to-date, however, the ASX consumer discretionary shares are still down around 10%, and they’re 37% below trading levels seen a year ago.

Why is the stock rebounding?

After multiple headwinds and sombre sentiment so far this year, Guzman Y Gomez shares look to have changed trajectory.

The latest rebound this week follows news that the quick-service restaurant operator has decided to close its struggling US stores.

On Friday last week, the company announced it had exited the US market and had ceased trading in its Chicago restaurants, effective immediately. Management said that the decision was made after the business failed to meet key financial performance targets, despite solid efforts by the US team.

Founder and Co-CEO Steven Marks said that the board concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital.

It looks like investors were pleased with the announcement. This is likely because the company has made an effort to halt losses and refocus the business in Australia and Asia. 

A move like this reflects very positively on management because it isn’t easy to admit defeat and change course when a strategy starts to fail. 

The move also allows Guzman Y Gomez to refocus its business expansion in markets where the brand is stronger, and the growth trajectory is more sound.

What are the company’s growth plans now?

Instead, Guzman Y Gomez said its international expansion efforts will now focus on master franchise partners in Singapore and Japan. 

Both of these partners are delivering strong sales growth, with Singapore recently opening its 24th restaurant. The company still believes disciplined global expansion remains possible in the right markets.

The company’s long-term goal remains to reach 1,000 restaurants in Australia, with segment EBITDA at 10% of network sales.

Is this the beginning of a share price resurgence?

Analysts are mostly bullish on Guzman Y Gomez shares over the next 12 months, with many expecting the latest rally to continue.

TradingView data shows that 10 out of 14 analysts have a buy or strong buy rating on the fast-food retailers’ shares. Another two have a hold rating, and two rate the stock as a sell or strong sell.

The average $24.60 target price implies a potential 27% upside at the time of writing. Meanwhile, some are even more optimistic and tip the shares to jump 60% higher to $31 over the next 12 months.

The post Are Guzman Y Gomez shares a buy after rebounding 28% from a historic low? appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Catapult Sports, Guzman Y Gomez, and Wesfarmers shares
• Buy, hold, sell: Catapult Sports, Tower, Guzman y Gomez shares
• Leading brokers name 3 ASX shares to buy today
• What is Bell Potter’s view on GYG shares after its US exit?
• How much higher could Guzman Y Gomez shares go?

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.

If you have space in your portfolio for some new additions, then it could be worth considering the three ASX shares in this article.

The team at Morgans is bullish on them and has just named them as buys. Here’s what the broker is recommending to clients:

Megaport Ltd (ASX: MP1)

Morgans was pleased to see Megaport’s newly acquired Latitude.sh business announce some major contract wins.

In response to the news, the broker has retained its buy rating on Megaport’s shares with an improved price target of $15.50. It said:

MP1 has announced a series of large contract wins which are financially and strategically significant. MP1 will use its globally unique communications platform to connect servers and GPU clusters in numerous DCs across the US. DC power constraints are a growing issue and MP1 was uniquely able to stitch together multiple sites to provide consolidated inference solutions. We update our forecasts to reflect recent contract wins, lifting our TP to $15.50 per share. We retain a BUY recommendation.

Symal Group Ltd (ASX: SYL)

This public and private infrastructure services provider’s investor day event impressed Morgans.

It highlights the “immense” pipeline of potential work, which it believes could lead to the ASX share achieving its aspirational EBITDA target early.

As a result, the broker has put a buy rating and $3.35 price target on Symal’s shares. It said:

SYL’s recent investor day left us with the impression that the pipeline of potential work is immense, as the business progresses its $7.5bn of recently tendered work, along with a further $1.4bn of projects in early contractor involvement (‘ECI’). Across the key verticals of infrastructure, digital, energy and defence, the total addressable market continues to grow, which along with M&A, could see the business delivering early on its FY30 aspirational EBITDA target of $200m.

Given SYL’s history of winning approximately one out of four tenders and no sign of Government investment budgets abating, the investment thesis for SYL as the ‘picks and shovels’ of the infrastructure build out remains intact. On this basis, we reaffirm our Buy rating and $3.35/sh price target.

Treasury Wine Estates Ltd (ASX: TWE)

A third ASX share that Morgans is positive on is wine giant Treasury Wine.

The broker is feeling optimistic ahead of the Penfolds owner’s investor day event next month.

Combined with positives from its recent trading update, the broker has put a buy rating and $5.30 price target on its shares. It said:

We see TWE’s Investor Day on 4 June as a key share price catalyst. At this event, the company intends to share its detailed plans and targets for its portfolio and operating model to support a future state TWE. TWE’s recent trading update was positive with strong depletion growth, highlighting the strength of its brands. It also has the support of its banks with new debt commitments secured.

2H26 EBITS is on track to be higher than the 1H26. Following material share price weakness, given its low trading multiples and our belief that new management can deliver more acceptable returns overtime, we upgrade to a BUY recommendation.

The post Morgans says these ASX shares are buys this week appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises as inflation surprise leaves investors with one big question
• 5 ASX 200 growth shares to buy next month
• Buy, hold, sell: Symal, Vicinity Centres, NAB shares
• 2 fallen ASX 200 stocks I think could recover strongly
• Treasury Wine shares slide as another leadership change hits sentiment

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

The S&P/ASX 200 Index (ASX: XJO) is pushing higher on Wednesday after a fresh inflation update gave investors something to work with.

At the time of writing, the benchmark index is up 0.21% to 8,675 points.

The move isn’t huge, but it’s notable given the market was under pressure earlier in the session.

The ASX 200 traded as low as 8,625.8 points before recovering after the April inflation numbers landed.

The index is still down 0.44% in 2026 and around 1.26% over the past month. Over the past year, however, it remains up about 3.19%.

Inflation gives investors a reason to buy

The Australian Bureau of Statistics (ABS) said annual inflation eased to 4.2% in April, down from 4.6% in March. The fall was helped by lower automotive fuel prices, which dropped 7% over the month after the federal fuel excise cut.

That was enough to settle some nerves after a weaker start to the session.

Lower headline inflation can reduce pressure on the Reserve Bank of Australia (RBA) to keep lifting interest rates.

It also helps explain why investors were more willing to buy stocks after the data was released.

But the report wasn’t all good news.

Trimmed mean inflation, which strips out some volatile price moves, rose to 3.4% over the year. That was up from 3.3% in March and remains above the RBA’s 2% to 3% target band.

Why the RBA question is not settled

Today’s inflation update may reduce the chance of another rate rise in June, but it doesn’t close the door on more tightening later this year.

The RBA has already lifted the cash rate 3 times this year, taking the cash rate target to 4.35%.

That is already putting pressure on households, especially mortgage holders rolling onto higher repayments.

The problem for the RBA is that the headline inflation number is only one part of the picture.

Annual inflation has eased, but the underlying measure is still moving the wrong way.

It also explains why the market reaction has been positive, but not overly excited.

Investors have enough in the numbers to justify some buying today. They do not have enough to assume the inflation fight is finished.

Banks weigh while tech helps

The recovery has not been spread evenly across the market.

The major banks are still dragging on the index, with Commonwealth Bank of Australia (ASX: CBA) shedding 0.60% to $163.32, Westpac Banking Corp (ASX: WBC) down 1.46% to $36.08, National Australia Bank Ltd(ASX: NAB) slipping 1% to $37.23, and ANZ Group Holdings Ltd (ASX: ANZ) edging 0.98% lower to $35.31.

Tech shares are doing more of the heavy lifting.

Dicker Data Ltd (ASX: DDR) is surging 7.86% to $9.61, Megaport Ltd (ASX: MP1) is climbing 7% to $14.75, and Siteminder Ltd (ASX: SDR) is up 6.5% to $3.04.

The post ASX 200 rises as inflation surprise leaves investors with one big question appeared first on The Motley Fool Australia.

More reading

• Morgans says these ASX shares are buys this week
• 5 ASX 200 growth shares to buy next month
• This ASX tech share is rocketing 8% after a big AGM update
• Why ASX, CBA, Endeavour, and Tuas shares are falling today
• Westpac shares sink after court calls conduct ‘grossly negligent’

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