Category: Stock Market

South32 Ltd (ASX: S32) shares are on the move again.

The ASX mining stock rose another 2% to $4.50 on Wednesday following a solid March 2026 quarterly update. That extends a strong run, with shares now up 16% over the past month. South32 shares have ascended 72% over the past 12 months, comfortably outperforming the S&P/ASX 200 Index (ASX: XJO), which is up 15%.

So, can the momentum continue?

Multiple growth pathways

Start with the fundamentals. South32 is a diversified global miner with exposure to commodities like aluminium, copper, zinc, and manganese. That diversification helps smooth earnings and gives it multiple pathways for growth.

The latest quarterly numbers reinforce that strength.

Net cash increased by US$121 million during the period, leaving the balance sheet in a stronger position. That financial flexibility is a key advantage, particularly in a cyclical sector.

Joint-venture success

Operational performance also impressed. Brazil Alumina delivered record year-to-date production, rising 5% to 1,060kt. Across the broader portfolio, the company largely held production guidance steady, signalling resilience despite a challenging operating environment.

One standout was Sierra Gorda, which delivered a record quarterly distribution of US$135 million, highlighting the value of South32’s joint venture assets.

Not everything went perfectly. Australia Manganese saw its guidance cut due to water issues following heavy rainfall and cyclone activity. However, this appears to be a localised disruption rather than a broader operational concern.

Higher freight costs

The company is also navigating external pressures. Like many miners, South32 is dealing with higher freight costs linked to geopolitical tensions. It continues to monitor supply chains closely but has not reported any diesel shortages.

Beyond the quarter, the bigger picture remains compelling. South32 shares are positioning itself for long-term demand in key commodities tied to global electrification and infrastructure trends. At the same time, its strong balance sheet supports both growth investment and shareholder returns.

Still, risks remain. Commodity prices are inherently volatile, and any downturn could weigh on earnings and sentiment. Operational disruptions – such as weather events – can also impact output, while global cost pressures may continue to squeeze margins.

What next for South32 shares?

Valuation is another factor. After such a strong run, some analysts are becoming more cautious in the near term. Morgans recently lowered its rating on South32 shares to accumulate, citing the current valuation, though it maintained a $5.00 price target.

That said, broader sentiment remains positive. According to TradingView data, 12 out of 16 brokers rate South32 shares as a buy or strong buy. The average price target sits at $4.97, implying around 11% upside from current levels. The most optimistic forecasts point to $5.81, which is around 29% higher.

Foolish Takeaway

South32 is executing well, backed by strong production, rising cash, and exposure to long-term commodity demand.

The rally may not be over for South32 shares, but after a 72% surge, investors should expect a bumpier ride from here.

The post South32 shares are booming, but is the best still to come? appeared first on The Motley Fool Australia.

More reading

• South32 shares are rising again – what just happened?
• South32 lifts net cash and sets Brazil Alumina output record in March quarter
• ASX 200 shares with renewed buy ratings this week
• Up 67% in a year! The red-hot South32 share price is smashing BHP, Rio and Fortescue
• Buy, hold, or sell? South32, Capstone Copper, and BHP shares

Motley Fool contributor Marc Van Dinther has positions in South32. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Genesis Energy Ltd (ASX: GNE) share price is in focus today after the company reported a strong third quarter for FY26, with normalised EBITDAF guidance upgraded to $515–$545 million amid robust hydro generation and disciplined cost management.

What did Genesis Energy report?

• Hydro generation rose to 745 GWh, up 264 GWh on the prior corresponding period (pcp), driven by strong hydrology and storage levels.
• Thermal generation decreased to 236 GWh, down 716 GWh on pcp, as Unit 5 was mainly offline and gas was sent to higher-value customers.
• Total customer numbers fell to 491,532, down 6.6% on pcp, as the company prioritised margin quality over volume.
• Electricity netback increased to $173/MWh, up 11.2% on pcp due to better pricing and a focus on portfolio quality.
• Total electricity sales were 1,380 GWh, down 94 GWh on pcp, reflecting the shift to higher-value segments.
• FY26 normalised EBITDAF guidance was upgraded to $515–$545 million (from $490–$520 million).

What else do investors need to know?

Genesis continued to push ahead with its Gen35 strategy, which includes significant investment in renewable projects and digital transformation. Construction has started at the Tihori (Edgecumbe) solar farm, with more progress at Leeston and Rangiriri sites as part of a target to expand solar capacity.

The company made headway with battery storage at Huntly Power Station—Stage 1 is nearing commissioning and Stage 2 has reached Final Investment Decision. Genesis also finalised the integration of Frank into its main brand and focused on margin improvement, which has helped enhance unit economics.

What’s next for Genesis Energy?

Genesis is maintaining its focus on renewable energy, battery storage, and digital upgrades. The FY26 earnings guidance upgrade reflects expected benefits from effective cost management, favourable hydro conditions, and improved wholesale pricing. However, management notes that performance may be influenced by hydrology, gas supply, plant reliability, and broader market conditions.

Looking ahead, Genesis will keep developing large-scale solar, battery, and customer electrification projects to support the country’s lower-carbon energy transition. The company also aims to grow its flexibility products in response to evolving customer demand and decarbonisation trends.

Genesis Energy share price snapshot

Over the past 12 months, Genesis Energy shares have declined 3%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 12% over the same period.

View Original Announcement

The post Genesis Energy upgrades FY26 guidance on strong Q3 earnings appeared first on The Motley Fool Australia.

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• Ramelius Resources shares: Dalgaranga exploration lifts future mine potential
• Vault Minerals posts strong Q3 gold production and free cash flow jump

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

If you are looking for an ASX uranium stock to buy, then it could be worth considering Paladin Energy Ltd (ASX: PDN) shares.

That’s the view of analysts at Bell Potter, who are feeling positive about this uranium producer following the release of its quarterly update.

What is the broker saying?

Bell Potter was pleased with Paladin Energy’s performance during the third quarter.

It highlights that its production was ahead of expectations, which has underpinned an upgrade to its guidance for FY 2026. The broker commented:

PDN reported quarterly uranium production of 1.3Mlb (2Q FY26 1.2Mlb; BPe 1.2Mlb), sales of 1.0Mlb (down 16% QoQ) and closing uranium inventory of 2.2Mlb, up 0.55Mlb QoQ due to timing of shipments. Commissioning of the remaining mining fleet and strong plant performance drove increased mining and production rates. PDN realised an average price of US$68/lb (down 13% QoQ) reflecting higher volumes sold into base escalated contracts. Production costs were US$40/lb.

Last week, PDN upgraded FY26 guidance to production of 4.5-4.8Mlb (previously 4.0- 4.4Mlb; YTD 3.6Mlb) and capital expenditure (excluding capitalised stripping costs) of US$15-17m (previously US$26-32m; YTD US$7m). […] Implied guidance points to a lift in production costs as mined volumes feed a higher portion of processed tonnes (vs processing stockpiled ore) and diesel cost inflation, which accounts for around 10-15% of PDN’s cost of production.

ASX uranium stock tipped as a buy

According to the note, the broker has retained its buy rating on Paladin Energy’s shares with an unchanged price target of $15.30.

Based on its current share price of $12.87, this implies potential upside of 19% over the next 12 months.

Commenting on its investment thesis, Bell Potter said:

We retain our Buy recommendation and $15.30/sh TP. PDN is positively exposed to rising uranium markets, with ~53% exposure to spot prices out to 2030. Production at LHM continues to improve, with transition to processing primarily fresh ore, milled grades should lift from 501ppm in 1H as should plant performance and reliability. The only risk we see is water disruptions as we enter a seasonally tricky period known for algal blooms which can impact availability from the desalination plant.

Overall, this could make the ASX uranium stock worth considering if you are looking for exposure to this side of the market for your portfolio.

The post This ASX uranium stock is a top buy according to one broker appeared first on The Motley Fool Australia.

More reading

• Why Bank of Queensland, Cochlear, Northern Star, and Paladin Energy shares are falling today
• Paladin shares are falling again. Here’s what investors might be overlooking
• Paladin Energy boosts uranium production and lifts FY26 guidance
• Why Eden Innovation, Elsight, Paladin Energy, and Zip shares are racing higher today
• Why Paladin Energy, Alcoa and Zip shares are making headlines on Friday

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 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.

There has been a lot of uncertainty on the ASX share market over the last couple of months with share prices moving around significantly. I think this is a great opportunity to buy ASX dividend shares.

When a share price goes lower, it boosts the dividend yield on offer. Therefore, when the opportunity is there, I think it’s worth jumping on. For example, if a business with a 7% dividend yield sees a 10% share price fall, the yield on offer becomes 7.7%.

The two businesses below have some of the most appealing dividend yields, partly because I expect ongoing payout growth.

Universal Store Holdings Ltd (ASX: UNI)

I think Universal Store is one of the most underrated businesses on the ASX for dividends because of both its yield and its impressive growth.

In my view, it’s important that a good ASX dividend share regularly increases its payout to help offset (or outpace) inflation and ensure our bank account grows in real terms.

Universal Store is best-known for two businesses within its stable – Universal Store and Perfect Stranger. The company aims to sell premium apparel to fashion-focused younger shoppers in Australia.

It is delivering excellent levels of growth – in the first half of FY26, group sales increased 14.2% to $209.6 million, with Universal Store sales rising 11.9% to $174.8 million and Perfect Stranger sales soaring 41.5% to $17.8 million.

The sales growth supported a 22% rise in underlying net profit after tax (NPAT) to $28.3 million. The business’ offering is clearly resonating with customers, particularly the Perfect Stranger brand. Its interim dividend was hiked by 18.1% per share.

The ASX dividend share is expecting to open more Universal Store and Perfect Stranger stores in the second half of FY26, as well as in the coming years. The increased scale could see ongoing sales strength and improving profit margins.

According to the forecast on Commsec, it’s trading with a projected FY27 grossed-up dividend yield of 8.9%, including franking credits, at the time of writing.

Future Generation Australia Ltd (ASX: FGX)

The other ASX dividend share I want to tell you about is a listed investment company (LIC) that doesn’t charge any management fees or performance fees. Instead, it donates 1% of its net assets each year to youth charities.

Its actual investments are a variety of funds from different fund managers who are all happy to work pro bono.

This investment style means investors have exposure to hundreds of underlying businesses, which are typically smaller (and have more growth potential) than what the S&P/ASX 200 Index (ASX: XJO) is weighted to.

As a LIC, Future Generation Australia is able to steadily grow its annual dividend per share from investment returns it has made in the current year or previous years.

In the most recent result, Future Generation Australia decided to increase its annual dividend per share by around 3% to 7.2 cents. That translates into a grossed-up dividend yield of approximately 7.5%, including franking credits.

I’m projecting a 7.75% grossed-up dividend yield (at the time of writing), including franking credits, for FY27.

The post Get paid huge amounts of cash to own these ASX dividend shares! appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares Bell Potter rates as top buys
• 3 ASX dividend shares raising dividends like clockwork
• 3 cheap ASX dividend shares offering 5% to 6% yields (and major upside)
• Why Clarity, Qantas, Universal Store, and Westpac shares are falling today
• This ASX retail stock is sliding after a surprise leadership announcement

Motley Fool contributor Tristan Harrison has positions in Future Generation Australia. 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 Universal Store. 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 a return of around 10% per annum.

But investors don’t necessarily have to settle for that, especially with some ASX stocks tipped for outsized returns.

Which ASX stock?

The stock that Bell Potter believes is severely undervalued is AMA Group Ltd (ASX: AMA).

It is the largest accident repair company in Australia with approximately 140 vehicle panel repair shops.

Bell Potter highlights that AMA released its third quarter update this month and has delivered earnings ahead of expectations thanks to stronger than forecast margins. In addition, it was pleased to see management announce plans for a share buyback. It said:

Normalised pre-AASB 16 EBITDA of $17.9m in 3QFY26 was 2% above our forecast of $17.6m and the beat was driven by a higher margin than forecast (7.0% vs BPe 6.7%) while revenue was slightly below ($254.2m vs BPe $263.3m). At a business level, Capital Smart and Specialist Businesses were both ahead of our forecasts ($13.3m and $1.8m vs BPe $12.4m and $1.0m) while AMA Collision and Wales were below ($2.0m and $1.5m vs BPe $4.6m and $2.1m).

Operating cash flow pre-AASB 16 of $(0.4)m was below our forecast of $3.8m but was negatively impacted by a higher-than-expected $6.3m tax payment during the quarter. AMA announced its intention to put a share buyback program in place given “the Board has determined that recent market volatility presents a good capital management opportunity.”

Share tipped to almost double

According to the note, the broker has retained its buy rating on the ASX stock with an unchanged price target of $1.10.

Based on its current share price of 56 cents, this implies potential upside of 96% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

There are no changes in the key assumptions we apply in the valuations we use to determine our target price which are a 5.5x multiple in the EV/EBITDA and 10.5% WACC in the DCF. Yes, we adjusted these assumptions to reflect the risk of a downgrade to the guidance but we leave them unchanged as we still see risk of a downgrade at some stage or a slight miss at the result. The result is no net change in our target price of $1.10 and we retain the BUY recommendation.

The key potential positive catalyst is an end to the conflict in the Middle East and a reduction in fuel prices though we note that, even with fuel prices remaining elevated, anecdotal evidence suggests traffic volumes are relatively normal in at least city areas, particularly with school holidays now over.

The post Guess which ASX stock Bell Potter says could rise almost 100% appeared first on The Motley Fool Australia.

More reading

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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 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.

Telstra Group Ltd (ASX: TLS) has built a reputation as a reliable, income-focused share.

But is the telco a good buy this month? I think it is.

Here are three reasons I would consider buying Telstra shares today.

The earnings base is becoming more consistent

Telstra’s core business continues to deliver. Its mobile division remains a key driver of growth, supported by customer additions and higher average revenue per user. That has flowed through to earnings, with the company reporting growth across multiple parts of the business in the first half of FY26.

What stands out to me is how this is being achieved. The company is seeing operating leverage come through, supported by cost control and efficiency gains. It reduced underlying operating expenses during the first half, which helped offset cost pressures and supported profit growth.

This combination of revenue growth and cost discipline is important. It points to a business that is becoming more predictable and easier to manage, which tends to support more stable earnings over time.

Capital returns

There is more to Telstra than the dividend alone.

The company lifted its interim dividend to 10.5 cents per share in February and continues to run a large buyback program, which has been increased to $1.25 billion.

That combination can have a meaningful impact on returns.

Dividends provide a steady income stream, while buybacks reduce the number of shares on issue and support earnings per share growth. Over time, that can help lift both earnings per share and dividends per share.

Telstra is also generating the cash to support this approach, which is what gives me confidence in its sustainability.

Its position in the market remains strong

Telstra’s role in Australia’s telecommunications network is well established.

Demand for connectivity continues to grow as more devices, services, and businesses rely on mobile and data networks. Telstra remains a key provider across mobile, fixed, and infrastructure, which supports a large base of recurring revenue.

The company is also continuing to invest in its network and technology. This includes expanding its fibre footprint and improving service quality, which helps retain customers and supports pricing.

Over time, that kind of investment tends to reinforce its position rather than weaken it, which is important for a business built around long-term infrastructure.

Foolish takeaway

Telstra offers steady earnings, strong cash flow, and consistent capital returns.

With those pieces in place, I see it as a reliable income-focused investment that can continue to deliver over time, supported by a business that is becoming more stable and predictable.

The post 3 reasons I’d buy Telstra shares today appeared first on The Motley Fool Australia.

More reading

• Where I’d invest $5,000 in ASX blue-chip shares
• Stagflation: How to position an ASX stock portfolio
• Why I don’t own Telstra shares (yet)
• How to build a second income from ASX shares without taking big risks
• Where I’d invest on the ASX for passive income right now

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian share market may be trading within sight of a record high, but not all shares have climbed with it.

A good number of ASX growth shares have been sold off over the past 12 months and still trade at a deep discount.

While this is disappointing for growth investors, it could have created a very attractive buying opportunity for those with capital to deploy.

With that in mind, here are three ASX growth shares that could be top picks right now:

Lovisa Holdings Ltd (ASX: LOV)

The first ASX growth share that could be a buy is Lovisa.

It is a fast-growing fashion jewellery retailer that is in the middle of an ambitious global expansion. At last count, the company was operating over 1,000 stores across more than 50 markets.

But management isn’t settling for that and continues to open new stores across the globe.

Morgans has named Lovisa as one of its top picks in the retail sector, highlighting the company’s scalable store model and strong brand appeal.

The broker currently has a buy rating and $36.80 price target on its shares. Based on its current share price, this implies potential upside of 50% over the next 12 months.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share that could be worth considering is TechnologyOne.

It is a leading developer of enterprise software for governments, universities, and large organisations. These customers tend to be sticky, long-term users, which gives the company a high level of revenue visibility.

Its shift to a software-as-a-service model has been a huge success, delivering consistent annual recurring revenue growth and strong cash generation. But if you thought its growth was coming to an end, think again. Management believes it can double the size of its business every five years.

And while its shares have recovered from their lows, UBS still sees plenty of upside. It currently has a buy rating and $38.70 price target on its shares, which implies potential upside of almost 30%.

WiseTech Global Ltd (ASX: WTC)

A final ASX growth share that could be a top buy is logistics solutions technology company WiseTech Global.

Its CargoWise platform sits at the core of global freight and logistics operations. It is deeply embedded in customers’ workflows, with high switching costs and recurring subscription revenue.

Its share price has been pressured by broader tech sector weakness and AI disruption concerns. However, this type of software is very complex and would be very hard for AI to disrupt.

It is for that reason that Bell Potter put a buy rating and $78.75 price target on its shares this week. This suggests that over 70% upside is possible from current levels.

The post 3 stellar ASX growth shares to buy now with 30% to 70% upside appeared first on The Motley Fool Australia.

More reading

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• Buy, hold, sell: ANZ, NAB, and WiseTech shares
• Still down 40% over the past year, how high could WiseTech shares recover?
• 5 oversold ASX shares to buy before the end of April
• Why I don’t own Telstra shares (yet)

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

DroneShield Ltd (ASX: DRO) shares have been in the spotlight this week.

On Wednesday, the counter-drone technology company released its eagerly anticipated first-quarter update.

Was it a strong result? And should you be buying its shares today?

Let’s see what analysts at Bell Potter are saying about this popular ASX share.

What is the broker saying?

Bell Potter was pleased with the company’s quarterly update, highlighting that its revenue was up more than expected and its committed revenues continue to creep higher. It said:

Revenue: DRO reported $74m in revenue up 121% YoY which was a higher print than the April 8th trading update of $63m due to the timing of deliveries. Quarterly SaaS revenues were $5.1m vs $11.6m for the full year 2025, 6.9% of revenue.

Order intake: Committed revenues (incl. YTD revenue) for CY26 as at 20 April 2026 was $155m a $15m increase since 31 March 2026 reflecting a steady flow of smaller orders. Notably, DRO said it has received an order related to the FIFA World Cup. We expect more orders to flow from key USA events over the coming months. DRO has committed revenues comprising 42% of our upgraded CY26 revenue estimate of $365m (prev. $324m). Using November 30 as the cutoff for orders delivered in CY26, we are 39% of the way through the year, suggesting current contract activity is tracking ahead of our upgraded forecast.

Should you buy DroneShield shares?

According to the note, the broker has retained its buy rating and $4.80 price target on DroneShield’s shares.

Based on its current share price of $3.83, this would mean potential upside of 25% for investors over the next 12 months.

Bell Potter remains very positive on the company and believes it is well-placed to benefit from a wave of spending in the industry. Commenting on the company, the broker said:

We believe DRO has a market leading RF detect/defeat C-UAS offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. We expect 2026 will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending on RF detect and defeat solutions.

Consequently, we believe DRO should see material contracts flowing from its $2.3b potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26e. At 43x CY26e EV / EBITDA, DRO trades at a discount to the global drone peer group. Further, we see upside risk to our revenue forecasts in CY26/27e, given the opportunities observed in the C-UAS industry.

The post Are DroneShield shares a buy after its latest update? appeared first on The Motley Fool Australia.

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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 DroneShield. 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.

Wondering whether the banks are in the buy zone right now?

Well, the team at Morgans has done the work for you. It has been busy running the rule over ASX bank shares and has given its verdict on them.

Here’s what it is saying:

ANZ Group Holdings Ltd (ASX: ANZ)

Morgans currently thinks that ANZ shares are overvalued at current levels and has put a sell rating and $30.72 price target on them. Based on its current share price of $36.41, this implies potential downside of 15.6%. It recently said:

We revise our forecasts ahead of ANZ’s 1H26 result in May and reflecting on the recent updates provided by NAB and WBC. FY26-28F EPS downgraded by 6-7%. Target price reduced 6% to $30.72/sh. SELL retained given c.-15% downside at current prices, including 4.4% cash yield.

Bank of Queensland Ltd (ASX: BOQ)

This regional bank’s shares could be around fair value now according to the broker. As a result, earlier this week it downgraded Bank of Queensland’s shares to a hold rating with a $7.39 price target. Based on its current share price of $6.61, this implies potential upside of almost 12%. It explains:

We expect a material decline in 1H26 earnings, with recent share price strength driven by the expected capital return from the equipment finance whole-of-loan sale. Share price strength has compressed total return potential to c.5%. As such, we moderate our rating from ACCUMULATE to HOLD. Target price $7.39.

Commonwealth Bank of Australia (ASX: CBA)

Australia’s largest bank may be performing above expectations, but Morgans still isn’t a buyer. It currently has a sell rating and $124.26 price target on CBA shares. Based on its current share price of $175.04, this implies potential downside of 29% over the next 12 months. It said:

CBA delivered a meaningful beat of 1H26 earnings expectations. We have materially upgraded our EPS forecasts after factoring in continuation of higher loan growth and benign credit loss environments. We expect DPS growth won’t match EPS growth as we see approaching CET1 capital tightness. Target price lifted to $124.26. SELL retained, with potential TSR of -24% (including 3% cash yield) at current elevated prices and trading multiples.

National Australia Bank Ltd (ASX: NAB)

This big four bank’s shares may be down heavily from their 52-week high, but Morgans still thinks they are overvalued.

This week, the broker put a sell rating and $34.56 price target on NAB shares. Based on its current share price of $40.22, this suggests that 14% downside is possible.

NAB announced a $1.8bn DRP equity raising, increased loan provisioning, and acceleration of capital software amortisation. Material forecast downgrades as we adjust for today’s announcement and introduce increased conservatism into our modelling. SELL given potential TSR at current prices of -12% (including c.4.2% cash yield).

Westpac Banking Corp (ASX: WBC)

Morgans has downgraded Australia’s oldest bank’s shares to a sell rating with a $34.06 price target following the release of its trading update.

Based on the current Westpac share price of $39.40, this implies potential downside of 13.5% for investors over the next 12 months. It said:

WBC published a trading update ahead of its 1H26 result due for release on 5 May. Implied revenues were weaker, costs lower, and credit impairment charges higher than our and market expectations. We revise our rating from TRIM to SELL as total return expectations at current prices have fallen below the -10% trigger. We estimate c.18% price downside risk partly offset by c.3.8% forecast cash yield. Target price $34.06.

The post How does Morgans rate ANZ, BOQ, CBA, NAB, and Westpac shares? appeared first on The Motley Fool Australia.

More reading

• Why Bank of Queensland, Cochlear, Northern Star, and Paladin Energy shares are falling today
• Buy, hold, sell: ANZ, NAB, and WiseTech shares
• Why this ASX bank stock is tumbling today after earnings
• Bank of Queensland half-year 2026: profit falls, dividend steady as revenue rises
• Stagflation: How to position an ASX stock portfolio

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 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.

What more could an Australian investor want than both growth and dividends? Some ASX shares that are indeed offering that.

I like it when ASX shares pay dividends because it means our bank account is experiencing the improvement in the profit of that business – it’s not just ‘on paper’ returns. The more it grows, the bigger the dividend payments can be.

With that in mind, I’m going to talk about two ASX shares that I believe are likely to grow their underlying earnings and dividend significantly over the next several years.

Pinnacle Investment Management Group Ltd (ASX: PNI)

This business makes investments in high-quality funds management businesses (‘affiliates’) and helps them grow by offering a number of services including client distribution services, legal, finance, compliance, seed funds under management (FUM) and plenty of other areas.

This allows the fund manager to focus on delivering strong investment returns, which is the best way to help grow its FUM.

Pinnacle’s portfolio of fund managers, such as Coolabah, Solaris, Pacific Asset Management, Firetrail and Plato, has steadily grown Pinnacle’s total affiliate FUM and this helped increase the underlying profit.

Performance fees can be variable, so its statutory net profit won’t necessarily grow every single year. But, ongoing FUM inflows across the portfolio can help the core earnings and fund strong growth of its ‘base’ dividend.

The projection on Commsec suggests the ASX share’s forecast earnings per share (EPS) could grow by 68% between FY26 and FY28.

This would mean it’s currently trading at under 16x FY28’s estimated earnings, with a potential grossed-up dividend yield of around 7.7%, including franking credits for FY28, at the time of writing.

Guzman Y Gomez Ltd (ASX: GYG)

GYG is a Mexican restaurant business, with more than 200 locations in Australia, as well as a few in Singapore, Japan and the US.

The company is delivering good sales growth at its existing restaurants, which is helping drive good (and growing) restaurant margins. In the third quarter of FY26, the business reported comparable sales growth across Australia, Singapore and Japan of 6.6%.

The ASX share also has significant plans to expand its Australian restaurant network in the coming years, which can help drive total network sales and scale benefits. At 31 March 2026, it had 242 Australian locations (up 31 year-over-year) – it wants to reach 1,000 Australian locations within 20 years.

The company’s total network sales grew 19.5% to $345.9 million in the third quarter of FY26, demonstrating its compounding ability. I’m not counting on the US expansion efforts to add anything meaningful, but if it does then it could be a very useful bonus.

The projection on Commsec suggests EPS could rise by 127% between FY26 and FY28, putting the valuation at 42x FY28’s estimated earnings, at the time of writing.

GYG’s dividend is not expected to be huge, but it could rapidly rise in the coming years. The forecast amount for FY28 translates into a possible grossed-up dividend yield of 2.35%, including franking credits.

The post 2 ASX shares that I rate as buys today for both growth and dividends! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez and Pinnacle Investment Management Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.