CSL Ltd (ASX: CSL) shares have staged a sharp recovery, gaining around 26% over the past month despite remaining down 17% in the past year.

By comparison the S&P/ASX 200 Index (ASX: XJO) fell 5% in a month and lost almost 1% over 12 months.

After falling 5% across the previous trading days, the ASX blue-chip stock bounced 3% on Monday to $171.57, reigniting the question: how much further can this recovery run?

From deeply beaten down to recovery mode

To understand CSL’s rebound, it helps to remember how severely the market had punished CSL shares.

At one point, CSL was trading around $90, a level not seen for more than a decade. Even the COVID-19 market sell-off failed to push the stock that low.

Investors appeared to be pricing in a prolonged deterioration in the company’s earnings. Then came the FY26 result, which delivered a painful set of numbers but also appeared to give the market a cleaner starting point.

CSL reported a US$2.6 billion net loss, following US$7.1 billion of pre-tax impairments and US$799 million in restructuring costs. Much of this was non-cash, with CSL Vifor accounting for a substantial portion of the impairments.

Look beneath the headline loss, however, and the picture was less alarming. Underlying NPATA declined just 2% to US$3.1 billion, while revenue fell 1% to US$15.8 billion, ahead of expectations.

That helped investors focus on what CSL could look like after the reset.

FY27 is the next big test

The recovery now rests heavily on CSL’s FY27 outlook.

Management expects underlying NPAT to grow about 5%, ahead of consensus expectations for roughly 2% growth. Behring is expected to deliver mid-single-digit growth, supported by immunoglobulin sales forecast to increase at a mid-to-high single-digit rate.

Vifor remains the weak spot. Revenue is expected to fall around 25% as generic competition hits its iron products.

The bullish argument is that Behring’s scale can increasingly offset Vifor’s decline. Consensus forecasts currently put earnings per CSL share at about $9.00 in FY27, $9.50 in FY28 and $10.10 in FY29.

At $171.57, that puts CSL shares on roughly 19 times forecast FY27 earnings. That’s not obviously cheap, but it could prove reasonable if the expected earnings recovery materialises.

Do brokers see more upside?

Several major brokers remain positive following the rally.

UBS has a buy rating on CSL shares and a $181 price target, while Morgan Stanley is overweight with a $182 target. Morgans is also bullish, with a buy rating and a $187.71 target.

Those targets suggest roughly 6% to 10% potential upside from around $171.

Macquarie is considerably more cautious, however, with a neutral rating and a target of roughly $133.

So, CSL shares may still have room to run, but the easy part of the recovery could be behind them. The key question now is whether earnings can catch up with the share price.

The post CSL shares have surged over 25%. Do brokers see more upside? appeared first on The Motley Fool Australia.

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• CSL shares just fell 5% after a strong rally. Is the recovery losing steam?
• Are ASX shares heading for a crash? Here’s how I’m preparing

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 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.

We can buy a wide range of ASX shares. Some get little investor attention, while others are rated buys by many analysts.

When numerous investment professionals think a stock is a buy, it could suggest there’s a clear opportunity.

Let’s look at two of the ASX shares with the biggest number of buy ratings right now.

ALS Ltd (ASX: ALQ)

ALS describes itself as a global leader in testing. It says it provides comprehensive testing solutions to clients in a wide range of industries around the world. Its two main segments are commodities and life sciences.

FY26 was a strong year for the ASX share, with 10.7% growth of revenue, 19.3% growth of underlying operating profit (EBIT) and 25.8% growth of underlying net profit after tax (NPAT).

The company has started FY27 well, stating that it’s on track to deliver high-single-digit organic revenue growth and margin improvement consistent with FY26.

The commodities business’ organic revenue growth is trending above the 15% to 17% guided range for the first half, with continuation of the positive exploration conditions and activity levels from the junior miners continuing to grow and outpace major and mid-tier miners.

ALS’ life sciences division’s organic revenue growth has improved from the second half of FY26, but it’s still below mid-single-digit expectations.

According to CMC Invest, analysts have made six rating calls on the business in the last three months. Five of them were buy ratings, and one was a hold.

Cuscal Ltd (ASX: CCL)

Cuscal is the other ASX share I want to highlight. It’s an authorised deposit-taking institution (ADI) with the licences, connectivity and processing capability to support all payment types and regulated data services. It was only listed on the ASX in November 2024.

The company says that the combination of these capabilities and credentials within a single organisation in Australia is limited to the four major ASX bank shares and Cuscal.

Cuscal had a solid FY26 – statutory NPAT rose by 49% to $42.7 million. Underlying net profit rose 20% to $46.2 million, and underlying net operating income grew 20% to $347.7 million.

It acquired Indue on 1 December 2025 and Paymark on 29 May 2026, adding around $40 million to its net operating income. Those acquisitions increased its scale, strengthened its position across Australia and New Zealand, and expanded its range of payment capabilities it provides to clients.

The ASX share expects to deliver “strong profit growth” in FY27, supported by resilient transaction volumes, the acquisitions and cost management. It expects FY27 to show growth in the mid-20 % range for both transaction volumes and underlying net profit.

According to CMC Invest, there have been five analyst ratings on the business in the last three months, with four of those being a buy and one being a hold.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

More reading

• Broker puts fresh buy ratings and tips 36% upside for these earnings results winners 
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investing some of your superannuation savings into ASX dividend shares is a popular and proven way to earn lifestyle-boosting passive income during your retirement years.

But if your aim is to invest $400,000 of your superannuation into ASX shares, then how much passive income might you reasonably expect to earn from that super investment each year?

We’ll have a look at three quality S&P/ASX 200 Index (ASX: XJO) dividend stocks below to get a handle on that answer.

But first, some important reminders.

Dividend traps, diversity and trailing yields

How much passive income you can earn from your $400,000 superannuation investment will depend on the yield you receive, with the idea being you don’t draw down your initial capital investment.

Now, it’s tempting to chase the top yielding stocks. But beware you don’t fall into the dividend trap. A lot of the top yielding ASX stocks you’ll see listed have also suffered large share price falls. This could signal further troubles ahead as well as lower future dividend payouts.

Also, bear in mind that while we’ll look at three ASX dividend shares below, a properly diversified passive income portfolio will contain a lot more than just three ASX stocks. There’s no magic number, but 15 is a decent target. Ideally, these companies will operate in various sectors and locations. This will reduce the risk of a material decline in your passive income if any single company or sector takes a hit.

And finally, remember that the yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company specific and macroeconomic factors.

With that said…

Investing $400,000 of superannuation in ASX passive income shares

The first ASX 200 dividend stock I’d consider investing some of my $400,000 of superannuation savings into is Aussie fuel supplier Ampol Ltd (ASX: ALD).

Recently trading for $42.04 each, Ampol shares have gained 40.3% in 12 months. So, no dividend trap here.

As for that passive income, Ampol paid (or will shortly pay) two fully franked dividends over the last year, totalling $2.45 a share. That sees Ampol shares trading on a fully franked trailing dividend yield of 5.8%.

Next, I’d invest some of my super into Australian fitout and construction services specialist Shape Australia Corporation Ltd (ASX: SHA).

Recently trading for $6.99 a share, Shape stock has gained 43.7% in 12 months.

Shape also paid (or shortly will pay) two fully franked dividends over the year, totalling 32 cents a share. This sees Shape trading on a fully franked dividend yield of 4.8%.

And the third ASX dividend share I’d target is big four Aussie bank stock ANZ Group Holdings Ltd (ASX: ANZ).

Recently trading for $37.47, the ANZ share price is up 13.6% in 12 months.

Over this time, ANZ paid two partly franked dividends totalling $1.66 per share. ANZ trades on a partly franked trailing dividend yield of 4.4%.

To the maths!

If you were to invest an equal amount of your $400,000 superannuation allotment to each of the above ASX 200 dividend stocks, you could expect to earn a yield of 5.0%.

Atop potential future share price gains, you could then expect to earn an extra $20,000 a year in passive income from that super investment.

The post How much passive income can I earn investing $400,000 of my superannuation buying ASX shares? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Energy shares rose while the ASX 200 slumped last week. Here’s why
• Here are the top 10 ASX 200 shares today
• 9 ASX 200 shares earning strengthened buy ratings this week
• How much superannuation do I need to earn $100 a day in passive income?

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