Category: Stock Market

Knowing which ASX 200 shares to avoid can be just as important as knowing which ones to buy when aiming to maximise portfolio returns.

So, with that in mind, let’s see which shares analysts are tipping as sells this week, courtesy of The Bull.

Here’s what they are bearish on:

A2 Milk Company Ltd (ASX: A2M)

Catapult Wealth has named this infant formula company’s shares as a sell this week.

It highlights that the company is battling supply chain disruptions and was forced to downgrade its guidance recently. It said:

A recent trading update revealed supply chain disruptions are constraining product availability despite strong underlying demand. The company downgraded guidance in full year 2026, with revenue growth downgraded to low-to-mid double digits, with cash conversion falling to 50 per cent. It expects lower infant milk formula sales, mostly related to Chinese labels. The EBITDA percentage margin is forecast to decline from previous guidance of between 15.5 per cent to 16 per cent to between 14 per cent to 14.5 per cent. The shares have fallen from $9.24 on April 10 to trade at $6.67 on May 7. Better opportunities may exist elsewhere at this stage of the cycle.

Metcash Ltd (ASX: MTS)

The team at Catapult Wealth is also bearish on this wholesale distributor and has named its shares as a sell.

Catapult Wealth doesn’t appear to have been overly impressed with Metcash’s performance during the first half of FY 2026 and has concerns that higher interest rates could impact consumer spending. It commented:

Metcash is a wholesale distributor across food, liquor and hardware. It services independent retailers across Australia. Group sales revenue was up just 0.1 per cent in the first half of 2026 when compared to the prior corresponding period. Group underlying profit after tax fell 5.9 per cent, reflecting lower earnings in hardware and liquor and increased finance costs. The company operates in fiercely competitive industries. Higher interest rates may pressure its discretionary product sales and full year 2026 earnings, suggesting a re-allocation of capital. The shares have fallen from $4.23 on September 1, 2025 to trade at $2.76 on May 7.

Woodside Energy Group Ltd (ASX: WDS)

Over at Sanlam Private Wealth, it has named Woodside shares as a sell.

It has suggested that investors consider taking profit after strong oil prices drove its shares higher. Commenting on the company, Sanlam Private Wealth said:

The energy company produced a record 198.8 million barrels of oil equivalent in full year 2025. However production was offset by lower realised prices. Consequently, net profit after tax of $2.718 billion was down 24 per cent on the prior corresponding period. Full year fully franked dividends were down 8 per cent. In our view, relying on dividends carries risk if commodity prices or production fall. Investors may want to take advantage of elevated crude oil prices to cash in some gains.

The post Warning! Experts name 3 ASX 200 shares to sell appeared first on The Motley Fool Australia.

More reading

• Sell alert! Why this expert is calling time on Woodside and ANZ shares
• Here are the top 10 ASX 200 shares today
• Why Dyno Nobel, Inghams, Metcash, and Strike Energy shares are charging higher today
• Why the ASX 200 is being smashed today
• Sell alert! Why this expert is calling time on Metcash and A2 Milk shares

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group Ltd. 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.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. At the time of writing, the benchmark index is down 0.35% to 8,671.4 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

BHP Group Ltd (ASX: BHP)

The BHP share price is up 2.5% to $59.87. Investors have been buying this mining giant’s shares following another rise in the copper price overnight. According to CNBC, the spot copper price is now up over 8% since this time last month and has reached a record high. This bodes well for BHP, which has been increasing its exposure to copper in recent years.

GQG Partners Inc (ASX: GQG)

The GQG Partners share price is up 1.5% to $1.59. This morning, the fund manager released its latest funds under management (FUM) update. GQG Partners revealed that its FUM reached US$166.9 billion at the end of April. This is up from US$162.5 billion at the end of March. This reflects a strong investment performance, which added US$5.7 billion to its FUM and offset net outflows of US$1.4 billion. In addition, GQG Partners announced its latest quarterly dividend. It plans to pay the equivalent of 4.878 cents per share. This dividend alone equates to a dividend yield of 3% based on its current share price. It will be paid to eligible shareholders on 26 June.

Inghams Group Ltd (ASX: ING)

The Inghams share price is up a further 6% to $1.93. Investors have been buying the poultry producer’s shares this week following the release of a trading update. Inghams revealed that sales volumes were up 1.1% for the first nine months of FY 2026. As a result, management has reaffirmed its guidance for underlying EBITDA of $180 million to $200 million. The company’s CEO and managing director, Ed Alexander, commented: “We are seeing improved operational performance and positive momentum from initiatives already delivered, while reaffirming our FY26 guidance in a challenging environment.”

Symal Group Ltd (ASX: SYL)

The Symal Group share price is up 6% to $2.52. This follows the release of a guidance update from the diversified services provider this morning. Symal advised that it expects normalised EBITDA of $120 million to $126 million in FY 2026. This compares to its previous guidance range of $117 million to $127 million. Management advised that this reflects the company’s focus on disciplined operating performance and project execution.

The post Why BHP, GQG, Inghams, and Symal shares are pushing higher today appeared first on The Motley Fool Australia.

More reading

• Copper is going ballistic. Which ASX shares are riding the boom?
• Forget gold, BHP shares could be the better long-term buy
• Why is everyone talking about WiseTech, GQG and Life360 shares on Tuesday?
• Up 55% in a year, are BHP shares still a buy today?
• GQG Partners reports growth in funds under management for April 2026

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

Copper prices are running hot, and investors are rushing back into ASX mining shares of late.

At the time of writing, the industrial base metal is trading around US$6.44 per pound.

That leaves copper prices up about 38% over the past year.

The move has also flowed through to ASX copper-related shares today.

BHP Group Ltd (ASX: BHP) is up 2.83% to $59.98, Rio Tinto Ltd (ASX: RIO) is 3.05% higher to $185.27, and Sandfire Resources Ltd (ASX: SFR) is in the green by 2.81% to $19.05.

Smaller copper names are also getting a lift, with 29Metals Ltd (ASX: 29M) jumping 10%.

Copper hits a record high

Copper has pushed further into record territory today.

According to Trading Economics, US copper futures climbed above US$6.40 per pound as supply concerns and stronger demand expectations lifted prices.

Copper is used in construction, power networks, EVs, industrial equipment, and data centres, linking it to several major spending trends.

Artificial intelligence (AI) is also adding another layer.

More data centres require more power infrastructure, and copper remains a key metal across wiring, motors, cooling systems, and grid connections.

Supply worries are adding fuel to the fire

While the demand outlook is only one side of the move, tight supply is also helping to push prices higher.

Copper is not a market that can quickly respond when buyers need more metal. New mines take years to develop, and existing operations can be affected by weather, accidents, delays, and processing issues.

That is why recent production concerns have received so much attention.

One example is the Grasberg mine in Indonesia, which is operated by PT Freeport Indonesia and is one of the world’s largest copper mines. The mine has been working through a slower return to full output after a fatal mudslide last year.

There are also concerns around sulphuric acid, which is used in copper processing. Reports have pointed to tighter sulphur supply linked to Middle East disruption and China’s move to restrict some exports.

ASX copper shares are in demand

For ASX investors, the most obvious names are the large miners.

BHP and Rio Tinto both have copper exposure, although they are still diversified businesses. That means copper is not the only driver of their earnings.

Sandfire gives investors more direct exposure to copper. The company has assets in Spain and Botswana, which makes its share price more sensitive to moves in the copper price.

There are also smaller companies such as 29Metals, AIC Mines Ltd (ASX: A1M), and FireFly Metals Ltd (ASX: FFM). These stocks can move more rapidly when copper rallies, but they also come with a higher risk.

The post Copper is going ballistic. Which ASX shares are riding the boom? appeared first on The Motley Fool Australia.

More reading

• Why BHP, GQG, Inghams, and Symal shares are pushing higher today
• Forget gold, BHP shares could be the better long-term buy
• Up 55% in a year, are BHP shares still a buy today?
• Why the ASX 200 is being smashed today
• ASX 200 mining shares smash multi-year highs as key commodity prices rise

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

Sky Metals Ltd (ASX: SKY) is forging ahead on a number of fronts with its Tallebung tin project, keeping it firmly in the sights of the analysts at Morgans, who rate the stock a buy.

Positive news

The company last week released an update on the Tallebung project to the ASX, saying the key step of submitting a scoping report to the New South Wales Government had been ticked off.

Sky Managing Director Oliver Davies said regarding the milestone:

This marks a significant step forward for SKY, with Tallebung advancing on both the approvals and technical fronts. The initiation of the NSW State Significant Development (SSD) process is a key milestone as we position the project for near-term development. At the same time, ongoing drilling continues to deliver shallow, high-grade tin-tungsten-silver results, highlighting the strength, continuity and scale of the Tallebung system. With more than 500 drill holes completed and further results imminent, we are well positioned for the upcoming updated Mineral Resource Estimate and Pre-Feasibility Study in the first half of 2026. SKY is well-funded and focused on accelerating Tallebung toward development as a near‑term, strategic source of tin and tungsten.

Recent drilling at the project has delivered results including 8m of 1.24% tin and 13.2 grams per tonne of silver from a depth of 68m, and 16m at 0.38% tin and 37.4 grams per tonne of silver from 46m.

The submission of the scoping report, the company said, “allows key environmental, technical and permitting workstreams to progress in parallel, advancing the project towards near-term development”.

The company added:

The recent appointment of environmental consultants and an Environmental Manager at SKY is driving the SSD process, baseline studies and ongoing stakeholder engagement. These activities are aligned and continue to exceed the Company’s planned development schedule, underpinning its strategy to advance Tallebung as a near‑term tin, tungsten and silver development opportunity.  

Shares looking cheap

Morgans said the progression of the Tallebung project was positive, and added:

We rate SKY a speculative buy with a target price of 35 cents per share, offering leveraged exposure to tin, a strategically important critical metal supported by electronics-led demand and a structurally tight, disruption-prone supply base. Tallebung provides investors access to an ASX-listed tin development opportunity, complemented by an established resource base and strong ore sorting amenability, which underpins a capital-efficient development pathway and project economics.

Morgans said Sky had a proven management team, and the spot tin price was currently sitting above its bull case assumptions.

Sky shares are currently changing hands for 19 cents. The company is valued at $187.8 million.

The post As approvals progress, Morgans says this ASX tin company is a buy appeared first on The Motley Fool Australia.

More reading

• 2 big-name ASX 200 shares at 52-week lows that I’d buy and hold
• Major ASX retail stocks sink to year lows: time to buy?
• Warning! Experts name 3 ASX 200 shares to sell
• Why BHP, GQG, Inghams, and Symal shares are pushing higher today
• Copper is going ballistic. Which ASX shares are riding the boom?

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.

The S&P/ASX 200 Index (ASX: XJO) is having another poor session. In afternoon trade, the benchmark index is down 0.35% to 8,670.2 points.

Four ASX shares that are falling more than most today are listed below. Here’s why these shares are tumbling:

Amotiv Ltd (ASX: AOV)

The Amotiv share price is down 4% to $6.20. This appears to have been driven by a broker note out of Citi this morning. According to the note, the broker has downgraded the auto parts company’s shares to a neutral rating with a heavily reduced price target of $6.70 (from $9.30). It made the move after reducing its earnings forecasts to reflect margin pressures.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down 14% to $3.03. Investors have been selling the counter-drone technology company’s shares following the announcement of an ASIC investigation. The investigation relates to announcements made between 1 November 2025 and 20 November 2025, as well as share trading between 6 November 2025 and 12 November 2025. It said: “DroneShield advised that it will cooperate fully with the investigation regarding announcements and information provided to the Australian Securities Exchange between 1 and 20 November 2025, and trading in Droneshield shares between 6 and 12 November 2025 (inclusive). […] It is not clear what action, if any, may result from ASIC’s investigation.”

Life360 Inc (ASX: 360)

The Life360 share price is down 12% to $17.69. This follows the release of the family safety and location technology company’s first-quarter update. Life360 reported total revenue of US$143.1 million for the quarter, up 38% on the prior corresponding period. It also posted global monthly active user (MAU) growth of 17% year on year to approximately 97.8 million. And while management has upgraded its revenue and EBITDA guidance for FY 2026, it has been forced to trim its MAU guidance due to a technical issue with Android phones. MAU growth is now expected to be in the range of 17% to 20%, rather than 20%.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 5% to $40.21. This is despite there being no news out of the logistics solutions technology company on Tuesday. However, it is worth noting that the technology sector is facing a selloff today. This has seen the S&P/ASX All Technology Index fall 3% this afternoon.

The post Why Amotiv, DroneShield, Life360, and WiseTech shares are tumbling today appeared first on The Motley Fool Australia.

More reading

• Why is everyone talking about WiseTech, GQG and Life360 shares on Tuesday?
• DroneShield shares crash 16% on ASIC investigation
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Motley Fool contributor James Mickleboro has positions in Life360 and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield, Life360, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Life360 and WiseTech Global. 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) shares are sliding today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $33.50. In early afternoon trade on Tuesday, shares are changing hands for $32.90 each, down 1.8%.

For some context, the ASX 200 is down 0.3% at this same time.

Woolworths shares have outperformed in 2026, gaining 11.8% compared to the benchmark index’s 0.6% year-to-date loss.

Over the past year, however, Woolies stock has gained a slender 0.4%, trailing the 5.4% returns posted by the ASX 200.

Though we shouldn’t forget Woolworth’s dividends. The ASX 200 stock trades on a 2.8% fully-franked trailing dividend yield.

And the supermarket recently reported strong growth in its quarterly food sales.

Which brings us back to our headline question.

Woolworths shares: Buy, hold, or sell?

Catapult Wealth’s Blake Halligan recently ran his slide rule over the supermarket giant (courtesy of The Bull).

“Food retail sales were up 5.9% in the third quarter of 2026 when compared to the prior corresponding period,” he noted.

But Halligan sounded a note of caution on that growth outlook.

Explaining his hold recommendation on Woolworths shares, he said:

However, food earnings before interest and tax growth guidance is expected to be in the mid-to-high single digit range, but no longer at the upper end of the range.

While scale and defensive earnings remain strengths, possible margin pressure and cautious consumer sentiment temper near‑term upside, supporting a hold for now.

What’s the latest from the ASX 200 supermarket?

Woolworths released its third quarter (Q3 FY 2026) results on 30 April.

The 5.9% year-on-year increase in Australian Food sales to $13.8 billion, which Halligan mentioned above, helped support a 4.5% lift in total Q3 sales to $18.1 billion.

eCommerce sales showed particularly impressive growth, surging 20.2% from Q3 FY 2025 to reach $2.7 billion. That now sees the company’s eCommerce segment representing 16.6% of all its Australian Food sales.

However, Woolworths shares closed down 7.8% on the day of the results release, with investors having taken note of the lowered expectations for full-year FY 2026 food earnings growth.

The company also flagged rising uncertainty amid the ongoing Iran war.

“The conflict in the Middle East is creating greater uncertainty for our customers, suppliers and team at a time when cost-of-living pressures are already acute,” Woolworths CEO Amanda Bardwell said.

Bardwell added:

While the impact on the group to date has been limited, higher fuel costs and secondary effects are likely to have an increasing inflationary impact as we move through the calendar year.

The post Are Woolworths shares a buy amid fast-growing food sales? appeared first on The Motley Fool Australia.

More reading

• How big will the Coles and Woolworths dividends be in 2027?
• Buy, hold, sell: ANZ, Eagers, and Woolworths shares
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• How to build a $1,000 a month passive income from the ASX

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

The S&P/ASX 200 Index (ASX: XJO) is sliding on Tuesday as investors turn their attention to tonight’s Federal Budget.

At the time of writing, the ASX 200 is down 0.51% to 8,657 points.

That puts the benchmark under pressure again after a weak start to the week. The index fell 0.49% on Monday as CSL Ltd (ASX: CSL) dragged the healthcare sector lower following another profit warning and impairment update.

The selling is also fairly broad. Right now, 138 ASX 200 stocks are trading lower, while 57 are higher and 5 are unchanged.

Let’s take a look at what’s behind today’s fall.

Budget night looms

The biggest local event is tonight’s Federal Budget, which Treasurer Jim Chalmers will hand down at 7:30pm AEST.

Investors will be watching closely for any changes to capital gains tax (CGT) and negative gearing.

For share investors, the key point is whether any CGT change stays focused on property or applies to other assets, including shares.

CGT can affect investors who sell shares, ETFs, managed funds, and other assets for a profit.

The current CGT discount allows eligible individuals to reduce a capital gain by 50% if they hold the asset for more than 12 months.

Reports suggest the government may change the discount as part of a wider tax reform package. ABC reported that the CGT discount could be linked to inflation, although a flat discount of 25%, 30%, or 35% may also be considered.

The Australian Financial Review has also reported that changes to negative gearing and CGT would apply to assets acquired from budget night, but take effect from 1 July 2027.

That timing would give investors and property buyers some room to adjust. But the market will still want clarity tonight.

If changes are limited to property, the direct impact on ASX investors may be smaller. But if shares are included, investors could face a lower after-tax return on future gains.

CSL and banks continue to weigh on the index

CSL shares are still in the red after Monday’s heavy fall. The stock is down another 2.76% to $97.97 at the time of writing.

ResMed Inc (ASX: RMD) is also weighing on the market. The stock is down 4.05% as its CHESS Depositary Interests (CDI) trade ex-dividend tomorrow.

The banks are also weaker. Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), and ANZ Group Holdings Ltd (ASX: ANZ) are all trading lower.

Miners offer support

Nonetheless, the main support today is coming from the resources sector.

BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO), and Fortescue Ltd (ASX: FMG) are all trading higher by 2.85%, 3.17%, and 1.75%, respectively.

The miners are getting support from stronger commodity prices, with iron ore, gold, and copper all helping sentiment. Oil is also higher, with Brent crude above US$105 a barrel amid fresh concerns over the Middle East.

The post ASX 200 sinks before tonight’s budget. Are investors about to get a tax shock? appeared first on The Motley Fool Australia.

More reading

• Just added to the ASX 200: 3 stocks that deserve a spot on your watchlist 
• Centuria Industrial REIT books $188m in Q3 asset sales, reaffirms FY26 outlook
• Up 55% in a year, are BHP shares still a buy today?
• GQG Partners reports growth in funds under management for April 2026
• Life360 Q1 2026 earnings: revenue climbs, advertising growth stands out

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

Gold has had a strong run.

With rising geopolitical tensions, it is easy to see why investors have been drawn to the precious metal.

But if I were looking for a long-term wealth-building idea on the ASX, I would be more interested in a business that can generate cash flow, pay dividends, and benefit from a major structural demand trend.

That is why BHP Group Ltd (ASX: BHP) shares stand out to me.

The copper opportunity

BHP is often thought of as an iron ore giant, and for good reason.

Iron ore has been the backbone of the business for years and remains a major earnings driver. But I think the more interesting long-term story is copper.

Copper is used across electricity networks, renewable energy infrastructure, data centres, electric vehicles, industrial machinery, and construction. If the world keeps electrifying, it is hard to see copper demand disappearing.

That is where BHP could be well placed.

The company already has major copper exposure, and management has been clear about its desire to increase its exposure to future-facing commodities. For investors, that gives BHP a growth angle that goes beyond the usual iron ore cycle.

I think this matters because copper is becoming more strategically important. Supply is difficult to bring on quickly, new mines can take years to develop, and permitting can be challenging.

If demand remains strong and supply stays tight, copper could be a very useful tailwind for BHP over the next decade.

A real business behind the theme

One of the risks with commodity investing is getting too excited about the theme and forgetting the business.

That is why I prefer BHP shares to many smaller resource shares.

It has scale, diversification, balance sheet strength, and a long operating history. It can invest through cycles, fund major projects, and return capital to shareholders when conditions are favourable.

BHP also has potash as another long-term option through its Jansen project. That gives it exposure to global food production and fertiliser demand, which could become increasingly important over time.

So, while copper is my favourite part of the thesis, it is not the only reason I would own the stock.

There is also the dividend.

BHP’s dividend will always move with commodity prices and earnings. It is not a fixed income stream. But over time, the company has shown a willingness to reward shareholders when cash generation is strong.

For investors who want both income and long-term growth potential, I think that combination is attractive.

Why I would buy instead of gold

Gold can help during uncertain periods, and I understand why some investors like it.

But gold does not grow earnings, expand production, or pay dividends.

BHP can do all three, although none of that is guaranteed, and commodity cycles can be brutal.

The key difference for me is that BHP gives investors exposure to real economic activity. If copper demand grows, if potash becomes a larger contributor, and if iron ore remains profitable, the company can generate cash and reinvest for the future.

That is the kind of long-term setup I would rather own.

Foolish Takeaway

Gold may continue to attract attention, especially while markets remain unsettled.

But for my money, BHP looks like the more attractive long-term ASX share idea.

It offers exposure to copper, iron ore, potash, dividends, and one of the strongest resource platforms in the world.

The post Forget gold, BHP shares could be the better long-term buy appeared first on The Motley Fool Australia.

More reading

• Up 55% in a year, are BHP shares still a buy today?
• Why the ASX 200 is being smashed today
• ASX 200 mining shares smash multi-year highs as key commodity prices rise
• The ASX 200 just suffered its biggest fall in 7 weeks. Here’s what’s going on
• The Aussie dollar just hit a 4-year high. Which ASX shares will benefit?

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

The CSL Ltd (ASX: CSL) share price has been under heavy selling pressure again this week.

So much so, the biotechnology giant’s shares are trading near a decade-low.

Is this a buying opportunity? Let’s see what the team at Bell Potter is saying about the former market darling.

What is the broker saying?

In a broker note titled “Blood on the Street”, Bell Potter highlights that CSL has made a sizeable downgrade to its earnings guidance.

While this was disappointing, Bell Potter was particularly concerned with its CSL Behring gross margin weakness. This has caused doubts that CSL will be able to bring its margin back to pre-COVID levels in the future. It said:

CSL provided a hefty downgrade to FY26 guidance, lowering revenue by ~$750m (i.e. -4.7%) and NPATA by ~$300m (i.e. -8.7%) from the prior midpoint of guidance ranges. Updated guidance now implies a 2% decline in revenue and 4% decline in NPATA vs FY25. We were already below prior guidance ranges however the update today was worse than expected. The majority of CSL’s products are facing a mix of underlying market softness (e.g. Seqirus, albumin) or increased competitive pressures (e.g. Ig and iron) as evidenced by today’s update.

One of the most concerning takeaways was the further degradation in Behring GM for FY26, leading to further loss of confidence it can climb back to the pre-Covid level of ~57%. Additionally, the US Ig plasma market has undoubtedly faced oversupply recently, leading to price competition and further market share loss for CSL. The approval by EU regulators of Grifols’ Egyptian based plasma supply chain will only add further supply capacity in the coming years to the global market.

Is the CSL share price good value?

According to the note, the broker has retained its hold rating with a heavily reduced price target of $100.00 (from $155.00).

This is only modestly higher than the current CSL share price of $99.25.

Commenting on its recommendation, Bell Potter said:

Earnings decreases drive large reductions to our PE and DCF-based valuations. We increase the PE valuation weighting to 75% and reduced the multiple to 12.0x. This leads to a reduction of our PT to $100 (from $155). We maintain our Hold recommendation. CSL’s global biopharma peers trade on a median of 14x FY27 PE.

We think a discount is warranted for CSL considering the declining underlying earnings outlook across FY26-27, the lack of stable management, and series of credibility hits following several disappointing results/trading updates. CSL is trading on ~12x our forecast NPATA for FY27. The difference between NPATA to statutory NPAT remains uncertain given the $5b of additional impairments announced today with unclear spread across FY26-27.

The post ‘Blood on the Street’: What is Bell Potter saying about the CSL share price crash? appeared first on The Motley Fool Australia.

More reading

• How low can CSL shares go?
• Down 63%: Should you finally give up on CSL shares?
• What are experts saying about these shares hitting 52-week lows 
• 5 things to watch on the ASX 200 on Tuesday
• Why ANZ, CSL, Dateline, and DroneShield shares are sinking today

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

Being added to the S&P/ASX 200 Index (ASX: XJO) is no small feat. 

Outside of reflecting a company’s strong performance, it also opens up a new universe of institutional investors and ETFs to the company.

Index inclusion can also shine a light on compelling businesses that the broader market has been sleeping on. 

Here are three newly added ASX 200 members worth adding to your watchlist.

SRG Global (ASX: SRG)

SRG is a Perth-based infrastructure services company employing more than 5,000 people across more than 20 industries, with revenues approaching $1.6 billion. 

What sets it apart from your typical contractor is how recurring its revenue is, with more than 80% of the business tied to annuity-like streams.

The most recent half-year results told a good story: EBITDA climbed 20% year on year, and the work-in-hand book hit a record $4.2 billion, up 24% from the prior year.

For investors looking for infrastructure exposure without the volatility of miners and explorers, SRG is worth a closer look.

Vulcan Energy Resources (ASX: VUL)

Vulcan is building what it describes as the world’s first carbon-neutral lithium operation, drawing lithium from geothermal brines beneath Germany’s Upper Rhine Valley. 

The flagship Lionheart Project is targeting 24,000 tonnes of lithium hydroxide per year, enough to supply batteries for around 500,000 electric vehicles annually. 

As European carmakers face mounting pressure to clean up their supply chains, a domestically sourced green lithium product could stand to benefit.

Vulcan Energy has secured a €2.2 billion financing package, and construction of the project is now underway in Frankfurt. 

The company is still pre-revenue, so risks remain high, and performance depends on the scale of the lithium deposits and on management execution.

But if Vulcan can execute, investors could gain a lot. 

Predictive Discovery Limited (ASX: PDI)

Predictive Discovery is a leading West African gold producer and developer, listed on the ASX.

Predictive Discovery’s Bankan Gold Project in Guinea has been shaping up as one of the more significant gold discoveries in West Africa in recent years. 

The timing of Predictive Discovery’s index promotion could hardly be better, given that the price of gold has risen significantly over the last few years. 

Similar to Vulcan, future performance depends largely on the scale of the deposits found and on management’s ability to execute its plan.

Despite all of this, the scale of the Bankan project gives plenty of reasons to be excited. 

Foolish takeaway

Index inclusion gives investors the opportunity to analyse new stocks with exciting business models. 

SRG, Vulcan, and Predictive Discovery are no exception.

All have fascinating future growth trajectories, and I reckon they should be on investors’ watchlists.

The post Just added to the ASX 200: 3 stocks that deserve a spot on your watchlist  appeared first on The Motley Fool Australia.

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