Two of Australia’s largest ASX financials stocks are Suncorp Group Ltd (ASX: SUN) and QBE Insurance Group Ltd (ASX: QBE) shares. 

Both suffered heavy losses yesterday, falling between 4.24% and 3.4% respectively. 

For context, the S&P/ASX 200 Index (ASX: XJO) was essentially flat on Tuesday. 

Following yesterday’s results, it could be an opportunity to buy the dip. 

Here is what experts are saying. 

Suncorp Group

Suncorp is a Queensland-based financial services conglomerate offering retail and business banking, general insurance, superannuation, and investment products in Australia and New Zealand.

Its shares fell 4.24% yesterday despite no price sensitive news out of the financial services conglomerate. 

Its share price is down almost 10% in 2026 and more than 32% in the last 12 months. 

It now sits close to its 52-week low, trading at $16.05 per share. 

The insurance stock experienced a prolonged sell-off during elevated natural hazard payouts related to extreme weather events towards the back half of 2025.

Based on recent targets from experts, Suncorp shares could be a buy-low opportunity. 

Recently, Goldman Sachs placed a price target of $20 on Suncorp shares. 

From yesterday’s closing price, that indicates an upside of 24.61%. 

Estimates from Morgan Stanley suggest even more upside for this ASX financials stock. 

Last month, Morgan Stanley retained its overweight rating with a trimmed price target of $22.25.

This indicates an upside of 38.63%. 

It’s worth noting these capital gains could come alongside a healthy dividend yield that is projected to be more than 5%. 

An important date for investors to watch will be on Wednesday 18 February when the company releases its HY26 results.

QBE Insurance Group

QBE is Australia’s second-largest international insurer. It provides a broad range of insurance products across personal, business, corporate, and institutional markets, and is involved in insurance underwriting and reinsurance.

Its shares have also spluttered over the last 12 months, including a fall of 3.39% yesterday. 

QBE has faced headwinds over the last year which has dampened investor confidence. 

These include slowed increased premiums, and subdued growth. 

Recently, Wilsons also noted the company is negatively exposed to US dollar weakness. 

QBE shares closed yesterday at $19.69, and there appears to be limited upside based on analysts ratings. 

According to TradingView, 12 analysts have one year price targets between $19.30 and $24.21. 

This indicates QBE shares are hovering close to fair value. 

On the positive side, Bell Potter estimates that QBE’s shares will provide investors in FY 2026 with a dividend yield of 4.7%.

It is set to release full year results on Friday, 20 February. 

The post Are Suncorp or QBE shares a better buy after yesterday’s sell-off? appeared first on The Motley Fool Australia.

More reading

• ASX 200 financials flew but tech and mining shares faltered last week
• What the stronger Australian dollar means for your shares
• Buy, hold, sell: DroneShield, Regis Resources, and Suncorp shares
• Here are the 3 ASX ETFs I use for my super fund
• Goldman Sachs tips 19% upside for Suncorp shares…plus dividends!

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 S&P/ASX 200 Index (ASX: XJO) share doubled in value last year. Eagers Automotive Ltd (ASX: APE) may have moved more slowly this year, but in the first six weeks of 2026 the share price still climbed 6%.

At the time of writing, the ASX 200 share is trading at $25.93 apiece, a gain of 102% over 12 months.

The slowing pace has investors asking whether Eagers is gearing up for its next leg higher. Here’s why this rocketing ASX 200 share still looks compelling.

BYD as growth engine

A big driver of Eagers’ success has been electric vehicles, particularly BYD. The ASX 200 share now operates roughly 80% of BYD dealerships in Australia, giving it unmatched exposure to one of the fastest-growing EV brands in the country.

Analysts point to Eagers’ diversified earnings base as a key advantage. As the market normalises and interest-rate pressure eases, Eagers’ scale and brand partnerships could see it outperform peers.

Eagers delivered a record half-year result in mid-2025 — and the numbers were hard to ignore. Revenue surged to $6.5 billion, up 18.9% year-on-year. Underlying operating profit before tax hit $197.7 million, while underlying EBITDA climbed to $297 million, up 11.6%.

On 19 February the $7 billion ASX 200 share will release its second half year results for 2025.

A bold step into North America

In October, the ASX 200 share announced a game-changing move, revealing the acquisition of a 65% stake in CanadaOne Auto, one of Canada’s largest dealership groups.

The deal values CanadaOne at around $1.05 billion and marks Eagers’ first expansion into North America. Once completed in Q1 2026 (pending approvals), Eagers will control 42 dealerships across multiple Canadian provinces.

Why does this matter? Canada’s auto market is significantly larger than Australia’s and typically delivers stronger margins. Analysts see the deal as strategically important. It gives Eagers geographic diversification and reduces reliance on domestic car sales cycles.

The acquisition is backed by a $452 million capital raise and a strategic placement with Mitsubishi Corporation, which already partners with Eagers through its Easyauto123 used-car business.

Built to weather the cycle

Eagers isn’t just a new-car dealer — and that’s a big plus.

The used-car operations, service and parts divisions, and independent retailer Easyauto123 provide recurring, higher-margin revenue streams that are far less cyclical. With new vehicle sales often the most volatile part of the industry, this diversification gives Eagers a natural buffer during downturns.

The result is a more resilient, cash-generative business than many investors realise.

What next for Eagers shares?

Despite the monster rally in the past year, analysts still see room to move.

TradingView data shows most brokers rate the ASX 200 share a hold or buy, with bullish forecasts stretching as high as $35.90. This points to 38% upside from current levels.

The average 12-month price target sits at $30.96, which still points to a potential 19% gain from here.

The post Here’s why this standout ASX 200 share can keep racing up appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares that doubled in value in 2025
• Top 5 ASX 200 retail shares of 2025
• Experts rate 3 ASX 200 stars of 2025: Is there more growth ahead?

Motley Fool contributor Marc Van Dinther 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 Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Yesterday afternoon, ASX Ltd (ASX: ASX) announced that CEO and Managing Director Helen Lofthouse will step down in May 2026, coinciding with the final preparations to deliver the first phase of the CHESS project.

What did ASX Limited report?

• CEO Helen Lofthouse to step down in May 2026 after 11 years at ASX
• CHESS project Release 1 targeting go-live in April 2026
• Korn Ferry engaged to support global search for new CEO
• Technology and resilience upgrades completed under current leadership
• Ongoing transformation and technology modernisation program

What else do investors need to know?

The transition comes at a crucial time, as ASX finalises preparations for the first phase of the CHESS project, which underpins Australia’s equity clearing and settlement infrastructure. Helen Lofthouse has led a strategic reset, enhanced tech investment, and upgraded risk frameworks over her tenure.

Succession planning has commenced, with Korn Ferry supporting a thorough search for the next CEO. Both internal and external candidates will be considered, with the Board emphasising the need for strong credentials in financial markets and transformation.

What did ASX Limited management say?

Outgoing CEO and Managing Director Helen Lofthouse said:

Since becoming CEO we have reset the CHESS project, refreshed our strategy, expanded technology investment and delivered a series of technology and resilience upgrades. While the pace of change has been intense in recent years, I’m very proud of our achievements in modernising technology, enhancing customer engagement, developing Group capabilities, and shifting our culture.

What’s next for ASX Limited?

ASX’s Board said the search for a new CEO will not impact delivery of its strategic priorities, with the executive team fully accountable for current programs. The company remains focused on reliable, resilient market infrastructure and stewardship.

Investors can expect ongoing updates on the CEO search and key project milestones—especially as the CHESS project’s first phase approaches its go-live date in April 2026.

View Original Announcement

The post ASX Limited CEO to step down as CHESS project enters new phase appeared first on The Motley Fool Australia.

More reading

• Computershare lifts outlook and dividend after solid 1H26 earnings
• CSL names Gordon Naylor interim CEO as Dr Paul McKenzie retires
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Tuesday
• Sims consolidates Houston operations with Tri Coastal Trading acquisition

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.

Yesterday afternoon, Computershare Ltd (ASX:CPU) posted a 3.9% rise in Management EPS and upgraded its full-year outlook.

What did Computershare report?

• Management revenue up 3.9% compared to 1H FY25
• Management EPS rose 3.9% to 72.2 US cents
• ROIC exceeded 36%
• Margin income of $372.9 million, down 5.4%
• Interim dividend lifted to 55 AU cents per share (30% franked), up 22% on last year
• Net debt leverage reduced to 0.3x

What else do investors need to know?

Computershare said revenue growth was especially strong in its Issuer Services business, with Register Maintenance revenue up more than 4%. Corporate Action revenue grew by over 12% as market activity recovered in some regions, although global M&A volumes remain below 2021 levels.

The Corporate Trust division enjoyed fee revenue growth over 12%, boosted by higher issuance volumes across structured products. Employee Share Plans also saw a 5% lift in revenue, while Assets under Administration jumped 25% year-on-year.

With a robust balance sheet and strong cash generation, the company’s board opted to increase the interim dividend instead of pursuing additional share buybacks due to tax efficiency reasons.

What did Computershare management say?

Stuart Irving, CEO, said:

We are executing well on our strategic plans to deliver a simpler, higher quality Computershare that generates consistent results and enduring returns for shareholders. We have positioned the group to leverage long term growth trends and have benefitted from increased activity across all our business lines. With our natural interest rate hedge, we have delivered earnings growth again, despite a lower yield environment.

What’s next for Computershare?

Following the stronger first-half performance, Computershare upgraded its full-year Management EPS guidance to around 144 cents per share, a 6% increase on the prior year. The company remains focused on operational improvements, cost control, and investing in new technologies to drive long-term growth.

Management says momentum across key business lines and improved activity levels provide a positive outlook for the second half of FY26.

Computershare share price snapshot

Over the past 12 months, Computershare shares have declined 9%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 5% over the same period.

View Original Announcement

The post Computershare lifts outlook and dividend after solid 1H26 earnings appeared first on The Motley Fool Australia.

More reading

• ASX Limited CEO to step down as CHESS project enters new phase
• CSL names Gordon Naylor interim CEO as Dr Paul McKenzie retires
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Tuesday
• Sims consolidates Houston operations with Tri Coastal Trading acquisition

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.

Now could be an opportune time to snap up the ASX 200 stock in this article.

That’s the view of analysts at Bell Potter, who believe that it could generate big returns for investors over the remainder of 2026.

Which ASX 200 stock?

The stock in question is Region Re Ltd (ASX: RGN). It is an internally managed REIT owning and managing a portfolio of approximately 100 neighbourhood and sub-regional shopping centres around Australia.

Bell Potter notes that the ASX 200 stock has released its half-year results and was pleased with what it saw. It said:

RGN announced its 1H26 result with FFO / share of 7.9c directly in-line with BPe and Visible Alpha consensus. FY26 guidance has been upgraded to FFO / share of 16.0c (was 15.9c, BPe 15.9c, VA 15.9c) and AFFO / DPS of 14.1c.

The broker also highlights that the company’s outlook is improving. It adds:

Whilst not in our forecasts, we see potential avenues for further growth beyond stated guidance. Potential factors, which are not included in guidance, include: (1) further accretive acquisitions above RGN’s marginal CoC, (2) further deployment of FUM with capital partner (pro-forma FUM now c.$840m vs FY25 $711.5m), (3) recommencement of buy-back (c.16% complete at $2.39 avg.).

Big potential returns

In response to the results, Bell Potter has reaffirmed its buy rating on the ASX 200 stock with an improved price target of $2.75.

Based on its current share price of $2.33, this implies potential upside of 18% for investors over the next 12 months.

In addition, the broker is expecting a dividend yield of approximately 6%. This boosts the total potential return to 24%.

Bell Potter highlights that the company’s shares are trading at a discount to net tangible assets (NTA) despite offering a generous dividend yield and having a “strong runway.”

Commenting on its buy recommendation, Bell Potter concludes:

No change to our Buy recommendation. We continue to see strong runway for RGN, with interest expense variability largely hedged out and, in our view, conservative guidance amid the backdrop of improving property fundamentals, trading at 14.6x FY26e FFO and a -9% discount to NTA offering a 6.0% yield.

Our target price increases accounting for these earnings changes, roll forward of our valuations. Our DCF valuation increases +3.1% accounting for the above changes. Our SOTP increases by +0.3%, reflecting our updated assumption for -10bp cap rate compression in our NAV (vs. -15bp previously).

The post This ASX 200 stock has a ‘strong runway’ and offers a 24% total return appeared first on The Motley Fool Australia.

More reading

• This ASX retail REIT just reported its half-year results. Here’s what stood out
• Region Group names Greg Chubb as new CEO and Managing Director
• Bell Potter says these ASX shares are best buys in January

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

At age 62, you’re reaching your final few years before retirement. So it’s important to know exactly how much you need in your superannuation fund before that time comes. 

What is the average superannuation balance at age 62 in Australia?

Average superannuation balances are generally broken down into age brackets and also divided between men and women. So there isn’t an exact figure for a 62-year-old’s superannuation amount in 2026. 

But there is a loose estimate.

Rest Super has run numbers, and the final figure might surprise you.

Keep in mind, though, that there is a sharp difference between genders across the age groups, thanks to women pausing from work to have children, reducing their hours, or taking time out of the workforce altogether. 

On average, women in their early 60s retire with less superannuation than men of the same age. 

The data shows that the average superannuation balance for Australians aged 60 to 64 is $395,852 for men and $313,360 for women. 

While the figure is for a bracket of ages, at age 62, it would be safe to assume it’s pretty much bang on. 

How much will it cost me to retire?

The cost of your retirement varies widely depending on the type of retirement you want to live. 

In Australia, retirement is generally split into two categories: modest or comfortable.

A modest retirement, according to the Association of Superannuation Funds of Australia (ASFA) means you have enough to cover expenses slightly above what the full Centrelink Age Pension amount. 

Whereas a comfortable retirement lifestyle means you have enough money to maintain a good standard of living. 

ASFA data shows that a comfortable retirement is expected to cost approximately $54,240 per year for individuals and $76,505 per year for couples.

To fund that, couples need a combined superannuation balance of around $690,000, and a single person needs around $595,000.

I’m way behind. How can I catch up?

The easiest way to boost your super balance before retirement is to add as much to it as you can. 

Individuals can make concessional (before-tax) super contributions, such as salary sacrificing, taxed at a reduced rate of 15%. The general cap for FY 2025-26 is $30,000. 

You can also add after-tax money to your super, and then claim a tax deduction for it, reducing the tax on those funds down to 15%. You can make these contributions up to age 67 without extra work testing or exemptions. 

If you don’t have the funds available to add more cash into your balance, the next best thing you can do is ensure the money that’s already in there is working as best as possible. 

After all, even slightly underperforming a benchmark such as the S&P/ASX 200 Index (ASX: XJO) over a long period of time can negatively impact your end balance.

The post Here is the average Australian superannuation balance at age 62 in 2026 appeared first on The Motley Fool Australia.

More reading

• This ASX 200 stock has a ‘strong runway’ and offers a 24% total return
• CSL names Gordon Naylor interim CEO as Dr Paul McKenzie retires
• Bell Potter names more of the best ASX shares to buy in February
• Here are the top 10 ASX 200 shares today
• Bell Potter says these ASX 200 stocks are buys with 20%+ upside

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.

This afternoon, CSL Ltd (ASX: CSL) announced the retirement of CEO Dr Paul McKenzie and the appointment of Gordon Naylor as interim CEO and managing director. The leadership change comes as CSL continues its strategic transformation in plasma therapies and vaccines.

What did CSL report?

• Dr Paul McKenzie will retire as CEO and managing director, effective 10 February 2026.
• Gordon Naylor, former CFO and President of Seqirus, appointed interim CEO & MD from 11 February.
• Naylor will not receive a short-term or long-term performance incentive but will be granted a one-off equity award valued at US$4.06 million.
• The Board highlighted CSL’s recent progress, including new therapies (HEMGENIX®, ANDEMBRY®), increased plasma collections, and improved operations.
• Outgoing CEO Dr McKenzie’s tenure saw expansion of R&D investment and the new Melbourne vaccine facility.

What else do investors need to know?

CSL Limited is undertaking a CEO search while Gordon Naylor steers the company as interim chief. Naylor has a deep 33-year history with CSL, having helped develop its plasma businesses and turn around its global influenza division.

The one-off restricted share units to be granted to Naylor, equal to 200% of his fixed pay, will vest after 12 months—subject to performance and holding conditions. No short-term or long-term bonuses will apply during his interim period.

Dr Paul McKenzie leaves after seven years with CSL, three of them as CEO, in which he guided the company through pandemic disruptions and operational transformations. The transition aims to ensure continuity as CSL pursues growth and new therapies.

What did CSL management say?

Incoming interim CEO & MD Gordon Naylor said:

I have had a long association with CSL. It is a great company with innovative platforms, world-class people, as well as differentiated medicines and vaccines essential for patients and communities globally. My immediate priority will be to work closely with the Board and leadership team on executing our strategic transformation and delivering for our patients, public health and shareholders.

What’s next for CSL?

The company will begin a formal process to find its next permanent CEO. During this period, Naylor will focus on progressing CSL’s strategy, continuing investment in research, and maintaining improvements across its global supply chain and new product introductions.

CSL’s Board remains committed to driving innovation and international growth, aiming to build on foundations laid during Dr McKenzie’s leadership. The transition is designed to ensure steady execution of current plans and long-term value for investors.

CSL share price snapshot

Over the past 12 months, CSL shares have declined 37%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.

View Original Announcement

The post CSL names Gordon Naylor interim CEO as Dr Paul McKenzie retires appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• 5 amazing ASX shares that could build serious wealth for investors
• 3 beaten-down ASX 200 shares to pick up in February
• How I would aim to build a $500,000 ASX retirement portfolio
• 3 ASX 200 shares to buy: experts

Motley Fool contributor Laura Stewart 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. 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 on the lookout for some investment ideas, then read on. That’s because Bell Potter has been busy picking out its best ideas for February.

Listed below are two more Australian shares that the broker has just named as best buys for the month ahead. Here’s what it is saying about them:

Elders Ltd (ASX: ELD)

The first ASX share that Bell Potter has recommended as a best buy this month is Elders.

It is a leading agribusiness and rural services company providing a diverse range of services to rural and regional Australia. Bell Potter notes that this includes livestock and wool agency and marketing, real estate services, agricultural supplies, financial services, and insurance.

The broker believes that Elders’ shares are looking cheap at current prices and feels that the market is undervaluing the recent acquisition of Delta Agribusiness. In addition, it sees scope for potential upside catalysts and a strong dividend yield for income investors.

Commenting on its bullish view of the stock, Bell Potter said:

We see value in ELD, particularly with the market appearing to undervalue the pending Delta acquisition. The base business is performing well with multiple growth drivers including recovery from drought conditions, system modernisations, and backward integration benefits. We are attracted to ELD’s valuation, which is relatively cheap at 12x 12MF P/E, along with these potential upside catalysts and a strong dividend yield.

GemLife Communities (ASX: GLF)

Bell Potter has added this over 50s lifestyle communities developer to its best ideas list this month.

It believes the company is well-placed to benefit from Australia’s ageing population and expanding retirement living sector. In fact, Bell Potter estimates that GemLife could deliver a three-year earnings per share compound annual growth rate of 15%.

Commenting on the company, the broker said:

We add GemLife Communities (GLF) to the Small Cap Panel as a high-quality exposure to Australia’s ageing population and expanding retirement living sector. The business benefits from an experienced, family led management team with strong alignment through ~43% ownership, supporting long term strategic execution.

With a strong development pipeline and settlements expected to ramp, we forecast a +15% 3 year EPS CAGR, and see the CY25 result as the next major catalyst. The stock looks attractive trading at ~15x FY27 earnings and we anticipate a re-rate as recurring income becomes a bigger contributor of earnings and the market better recognises the resilience and scalability of the model.

The post Bell Potter names more of the best ASX shares to buy in February appeared first on The Motley Fool Australia.

More reading

• These buy-rated ASX dividend stocks offer 4% to 6% yields
• Why Beach Energy, Elders, Maas, and Neuren shares are dropping today
• Guess which ASX 200 stock is falling on CEO news
• Elders appoints René Dedoncker as next CEO in planned succession
• Leading brokers name 3 ASX shares to buy today

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

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

More reading

• Bell Potter says these ASX 200 stocks are buys with 20%+ upside
• 5 amazing ASX shares that could build serious wealth for investors
• Morgans upgrades 3 ASX shares to buy ratings
• 3 reasons to buy Zip shares today
• Why Elevra Lithium, Pro Medicus, Sims, and Treasury Wine shares are roaring higher

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 DroneShield. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking for some market-beating returns for your portfolio, then Bell Potter has you covered.

It has just named two ASX 200 stocks as buys with the potential to rise strongly from current levels. Here’s what it is recommending:

CAR Group Limited (ASX: CAR)

Bell Potter remains positive on this auto listings company following its half-year results release.

In response, the broker has retained its buy rating on the ASX 200 stock with a trimmed price target of $39.80 (from $42.20). Based on its current share price of $27.19, this implies potential upside of 46% for investors over the next 12 months.

Commenting on its results, the broker said:

CAR’s interim result was in-line with expectations with adj. EPS growing 11% YoY to 52cps (BPe: 51.9cps) and was broad-based across the Group. All regions ex. Aus grew revenue double digits (Group: +8% to $626m; BPe: $621m) and margins were broadly in-line with expectations (Group adj. EBITDA +12% to $339m; BPe: $339m). CAR finished the half with cash at bank of $232m (net debt: $1.1b) and announced a 40% franked 42.5cps dividend.

And while the broker has trimmed its valuation, it remains very positive on the investment opportunity here. It adds:

We have reduced our Target Multiples in PER (36x to 30x) and SOTP, in part reflecting a higher risk-free rate and potential for AI-based competition in the current environment. CAR’s global network of auto and non-auto classifieds platforms has scaled the ability to generate cash flows supporting growth investment and shareholder returns simultaneously. CAR is proactively implementing AI solutions across its platforms and geographies on top of a technical eco-system integrated into Dealer management workflows, network effect and unique data sets. Retain Buy.

REA Group Ltd (ASX: REA)

Another ASX 200 stock that gets a thumbs up from Bell Potter is property listings company REA Group.

In response to its half-year results, the broker has retained its buy rating with a reduced price target of $211.00 (from $244.00). Based on its current share price of $174.87, this suggests that upside of 21% is possible between now and this time next year.

Commenting on its recommendation, Bell Potter said:

Our Target Price decreases via lift in risk free rate 4.5% (prev. 4.0%) in our WACC and reduction of target multiples in our PER (40x prev. 45x) and SOTP. While we recognise the potential for disruption in a rapidly evolving environment, we currently see the pullback in valuation overdone considering that REA’s moat lies in decades of property, customer and buyer intent data and inherent network effect via established and highly engaged audience. Therefore, REA’s shareholder value sits below the user interface level which is difficult to replicate. Retain Buy.

The post Bell Potter says these ASX 200 stocks are buys with 20%+ upside appeared first on The Motley Fool Australia.

More reading

• 5 amazing ASX shares that could build serious wealth for investors
• 3 ASX 200 shares tipped to storm 50% to 60% higher this year
• Morgans upgrades 3 ASX shares to buy ratings
• 5 ASX stocks that are still good value at over $100 a share
• How much could the REA Group share price rise in the next year?

Motley Fool contributor James Mickleboro has positions in REA Group. 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 CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.