S&P/ASX 200 Index (ASX: XJO) shares fell 7.8% in March after the US and Israel attacked Iran, triggering a global oil shock.

Oil and gas prices soared while gold and other metals crumbled, impacting ASX 200 shares in different ways.

Shares in the energy sector surged 18.5% while the materials sector, which includes Australia’s biggest miners, crumbled 14.1%.

Amid the upheaval for share prices, brokers reviewed their ratings and 12-month targets on a bunch of ASX stocks.

Here are some of the ASX 200 shares elevated to strong buy consensus status after last month’s turmoil.

7 ASX 200 shares newly elevated to strong buy ratings

These ASX shares have just been upgraded to strong buy consensus ratings on the CommSec platform.

A consensus rating represents the average rating among analysts.

Genesis Minerals Ltd (ASX: GMD)

The Genesis Minerals share price dropped 20.7% in March alongside a steep fall in the gold price.

So far this month, the ASX 200 gold mining share is up 10.9% to $6.53 at yesterday’s close.

MA Financial is among the brokers that have upgraded Genesis Minerals to a buy rating.

The broker has lifted its 12-month price target from $8.05 to $8.40.

Orica Ltd (ASX: ORI)

The Orica share price descended 17.9% in March.

So far this month, the ASX materials share is up 6.7% to $21.40.

Jefferies has reiterated its buy recommendation, but reduced its price target from $25.73 to $24.04.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price fell 15.9% in March.

So far in April, the ASX 200 airline share has rebounded 8.6% to $9.09.

Jefferies has reiterated its buy rating with a price target of $12.80.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price declined 20% in March.

So far in April, the market’s largest ASX 200 tech share is up just 1.6% to $38.62.

Morgan Stanley is buy-rated on Wisetech but has slashed its target from $100 to $70.

Xero Ltd (ASX: XRO)

The Xero share price descended 9.7% in March.

The tech share has fallen a further 2.3% in April to $73.41 at yesterday’s close.

Morgan Stanley has reiterated its buy recommendation with a $130 target.

Yancoal Australia Ltd (ASX: YAL)

The Yancoal share price skyrocketed 41.5% in March, as power plants switched from gas to coal.

So far this month, the ASX 200 coal share has declined 10.3%.

Huatai Securities is buy-rated on Yancoal with a $14.40 share price target.

CAR Group Ltd (ASX: CAR)

The CAR Group share price fell 14% in March.

In April, the ASX 200 retail share is up 2.7% to $23.41.

Morgan Stanley reiterated its buy recommendation last week.

However, the broker reduced its 12-month target from $38 to $32.

The post 7 ASX 200 shares just upgraded to strong buy ratings appeared first on The Motley Fool Australia.

More reading

• 3 reasons to buy Xero shares now
• 5 things to watch on the ASX 200 on Friday
• ASX 200 energy shares whipsaw amid fragile ceasefire
• Why Orora, Select Harvests, Tamboran, and WiseTech shares are sinking today
• Orora updates FY26 outlook as Saverglass earnings take a hit

Motley Fool contributor Bronwyn Allen 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 WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. 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.

It hasn’t been a great stretch for some of the market’s highest-quality ASX stocks, but savvy investors know that pullbacks can be where the real opportunities are found.

Two standout ASX stocks — REA Group Ltd (ASX: REA) and Aristocrat Leisure Ltd (ASX: ALL) — were among the losers again on Thursday. In fact, both have shed roughly 30% of their value over the past six months.

While that might rattle short-term traders, brokers are increasingly viewing this weakness as a compelling long-term entry point.

REA Group

When it comes to dominant digital platforms, REA Group remains one of the ASX’s crown jewels.

The ASX stock sits at the heart of Australia’s online property advertising market through its flagship realestate.com.au platform, giving it powerful pricing power and a highly scalable business model.

While the housing cycle can create short-term volatility, REA’s long-term growth story remains intact. It’s supported by premium listings, depth products, and international expansion.

The recent price weakness on the ASX stock appears to have caught the attention of analysts. Broker Morgan Stanley currently has an overweight rating on REA’s shares, alongside a $230.00 price target. That implies a potential upside of roughly 44% over the next 12 months.

For long-term investors, that’s a strong vote of confidence in both the company’s fundamentals and its ability to rebound as market conditions stabilise.

Aristocrat Leisure

Gaming technology leader Aristocrat Leisure is another high-quality name that has fallen out of favour recently. And the ASX stock could be primed for a comeback.

Aristocrat generates the bulk of its earnings from gaming machines and digital content, particularly in the lucrative US market. While sentiment has softened in recent months, underlying demand trends appear far more resilient than the share price suggests.

In fact, analysts are seeing encouraging signs. The team at Macquarie Group Ltd (ASX: MQG) has retained its outperform rating on the ASX stock, and set a $63.00 price target. That represents potential upside of approximately 33% from current levels.

Macquarie has been reviewing recent US casino gaming data and noted year-on-year growth, a positive signal for Aristocrat’s core land-based gaming business. Combined with its expanding digital segment, the company appears well placed to deliver long-term earnings growth.

Foolish Takeaway

Market pullbacks can be uncomfortable, but they often create rare opportunities to buy high-quality ASX stocks at discounted prices.

With both REA Group and Aristocrat Leisure down significantly and backed by bullish broker forecasts, long-term investors may want to take a closer look before the market sentiment turns.

The post 2 high-quality ASX stocks to buy and hold long term appeared first on The Motley Fool Australia.

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• 3 ASX 200 shares that could quietly compound for years
• Morgans names two ASX 200 shares to buy and one to sell this week

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

CSL Ltd (ASX: CSL) shares finished the day 1.37% lower when the ASX closed on Thursday afternoon, at $140.23 per share.

The decline is part of a long and consistent tumble for Australian biotech stock over the past 18 months.

The share price is now 40% lower than 12 months ago, and down 18.5% for the year-to-date.

It’s not all bad news out of the biotech giant though. Here are three reasons to add the shares to your portfolio, and three reasons to sell up.

3 reasons to buy CSL shares

1. It looks like headwinds are easing

CSL has faced huge headwinds over the past 18 months. From uninspiring financial results, to a revenue and growth profit guidance downgrade, a surprise restructure announcement, and even a shock CEO exit, several events have spooked investors and sent the company’s share price south. But I think these headwinds are finally easing and that downward pressure on CSL shares will soon lift.

2. There’s a huge demand for CSL products

At the core of its CSL’s business are its plasma-derived medicines, including immunoglobulins, albumin, and clotting factors. In fact, its blood plasma division dominates the market for rare blood disorders and immunoglobulin products. Global demand for plasma therapies is strong and growing too, and CSL is well-placed to absorb plenty of the upcoming demand.

3. Analysts tip a huge upside

Analysts are very bullish on the outlook for CSL shares. TradingView data shows 12 out of 28 analysts have a buy or strong buy rating on the stock with an upside of up to 91.6% to $286.67 per share over the next 12 months.

3 reasons to sell CSL shares

1. The market has fallen out of love with CSL shares

CSL was once widely viewed as one of the most dependable growth companies on the ASX. But over the past few years it has experienced a notable slowdown in earnings growth and a sharp share price reduction. Investors are concerned that there isn’t enough concrete proof that company and share price growth can return.

2. A sector-wide rotation makes healthcare shares less attractive

ASX healthcare shares have lagged behind most other sectors on the index so far in 2026 as investors reposition themselves towards ASX energy stocks, resources, and defensive assets. This has seen a broad rotation away from healthcare stocks like CSL while geopolitical instability continues to rattle markets. It doesn’t look like this will change any time in the near future. 

3. CSL’s growth outlook has slowed

CSL cut its FY26 revenue growth forecast to 2-3%, down from 4-5% previously at its AGM in October last year. It also downgraded its profit growth for FY26 to 4-7%, down from 7-10% previously. The company also revised its medium-term outlook for fiscal years 2027 and 2028, reducing expected NPAT growth from low-teens to high-single digits, well below the double-digit expansion rates it had previously experienced. 

Not only has CSL’s growth outlook slowed significantly, it happened very soon after the initial guidance figures were released, suggesting that either it is (or will) face some significant headwinds or management simply overestimated growth potential. 

The post CSL shares: 3 reasons to buy and 3 reasons to sell appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: CSL, Magellan, and Woodside shares
• What’s Bell Potter’s updated view on CSL shares?
• Why are CSL shares struggling to regain momentum?
• 5 things to watch on the ASX 200 on Thursday
• How to invest $1,000 per month in ASX shares and build long-term wealth

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 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.

Now could be the time to buy Life360 Inc (ASX: 360) shares for big potential returns.

That’s the view of analysts at Bell Potter, who remain bullish on the family safety technology company.

What is the broker saying?

Bell Potter believes there is a chance that Life360 will be forced to downgrade its bold monthly active user (MAU) guidance for 2026. It said:

We have reviewed our Life360 forecasts and the key change we have made is to lower our forecast growth in global MAUs this year from 19.2% to 17.5%. The significance of this change is that the guidance is 20% growth and, while we were already marginally below this level before, we are now more significantly below and this suggests or implies we see potential for a downgrade to this metric in the guidance at some stage.

The trigger for making this change is we have reduced our forecast growth for global MAUs in Q1 from 18.8% to 17.6% to be more consistent with the guidance of <20% growth. This level of forecast growth in Q1 makes it look difficult for the full year guidance to be achieved and, for instance, requires that global MAUs increase by >5m in each of Q2, Q3, and Q4 versus our forecast of 2.6m in Q1.

However, despite lowering its MAU expectations, the broker has not made a change to its revenue or earnings estimates. That’s because it believes Life360 can convert more existing users to paid plans than previously estimated. It adds:

Despite the lowering in our global MAU growth forecast in 2026 there is no change in our revenue or earnings forecasts as, on the flip side, we have increased our conversion rate forecasts so that there is no change in our paying circle forecast for the full year.

Our average forecast quarterly conversion rate – measured in crude or broad terms – has increased from 3.4% to 3.5% which is still below the average 3.6% in 2025. We are therefore still modestly below last year’s level which is perhaps conservative given the addition of Pet GPS but there was an unusual spike in the conversion rate in 3Q2025 which we assume is not repeated this year.

Big potential returns for Life360 shares

According to the note, the broker has retained its buy rating on Life360 shares with a trimmed price target of $35.50 (from $37.75).

Based on its current share price of $20.14, this implies potential upside of approximately 75% for investors over the next 12 months.

The broker concludes:

We have reduced the multiple we apply in the EV/EBITDA valuation from 37.5x to 35x and increased the WACC we apply in the DCF from 9.2% to 9.5% given the risk we see of a potential downgrade to the global MAU growth guidance for this year.

We stress, however, that we see less risk of a downgrade to the revenue or adjusted EBITDA guidance given we believe any shortfall in MAU growth can be made up by a higher conversion rate. The net result is a 6% reduction in our target price to $35.50 which is still a significant premium to the share price so we maintain our BUY recommendation.

The post Here’s why Life360 shares could rise a massive 75% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 3 ASX shares that could double over the next decade (or much sooner)
• Why Arafura Rare Earths, Eagers Automotive, Life360, and Pro Medicus shares are racing higher today
• Why are ASX 200 tech stocks like WiseTech and Life360 going gangbusters on Wednesday?
• Is now the perfect time to buy ASX growth shares?

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Xero Ltd (ASX: XRO) shares have had a tough run over the past 12 months.

During this time, the cloud accounting platform provider’s shares have fallen over 60% from their high as investors grapple with rising interest rates and concerns around artificial intelligence (AI) disruption.

But for long-term investors, could this be a buying opportunity? Let’s look at three reasons why it could be.

A significant reset in valuation for Xero shares

The first reason to consider Xero shares is the sharp decline itself.

High-quality growth companies can fall out of favour quickly when sentiment shifts. In Xero’s case, fears that AI could disrupt traditional accounting software have weighed heavily on the stock.

However, while AI may change how accounting is done, it is unlikely to remove the need for trusted platforms that manage financial data, compliance, and workflows.

With the share price having reset materially, investors are now able to access Xero shares at a far more reasonable valuation than in previous years.

Turning AI from a threat into an opportunity

Another reason to be positive on Xero is how it is responding to AI disruption.

Rather than being left behind, Xero is leaning into the technology through its partnership with AI giant Anthropic.

The deal means Xero users will be able to work with their financial data directly inside a major AI platform and provides a new way for Claude to power end-to-end financial workflows for small businesses at scale.

Xero highlighted that for millions of small businesses, this will mean less time manually chasing invoices or piecing together cash flow across multiple reports, with Claude proactively surfacing the insights and actions that would otherwise take hours to find.

In this context, AI becomes less of a threat and more of a feature. If executed well, it could strengthen Xero’s value proposition and deepen its competitive advantage.

A platform with room to grow

A third reason to consider Xero shares is the strength and scalability of its platform.

Xero has built a global ecosystem connecting small businesses, accountants, and third-party applications. Once embedded, switching becomes difficult due to the integration of financial data and workflows.

Looking ahead, growth is not just about adding new users. There is a significant opportunity to increase revenue per user through additional services such as payments, payroll, and financial tools.

By expanding what it offers within its existing base, Xero can continue growing even without rapid subscriber gains.

Overall, for investors willing to look beyond short-term concerns, Xero’s reset valuation, proactive AI strategy, and scalable platform could make it a compelling opportunity right now.

The post 3 reasons to buy Xero shares now appeared first on The Motley Fool Australia.

More reading

• I’m following Warren Buffett to snap up these cheap ASX stocks
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• Down 35% in 2026, are Xero shares the bargain buy of April?
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Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) continued its positive run and pushed higher. The benchmark index rose 0.25% to 8,973.2 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to edge lower on Friday despite a decent night in the United States. According to the latest SPI futures, the ASX 200 is expected to open 5 points lower this morning. On Wall Street, the Dow Jones was up 0.6%, the S&P 500 rose 0.6% and the Nasdaq climbed 0.8%.

Oil prices rebound

It could be a good finish to the week for ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 4.65% to US$98.80 a barrel and the Brent crude oil price is up 2% to US$96.68 a barrel. This was driven by concerns over the US-Iran ceasefire sticking.

Buy Life360 shares

Life360 Inc (ASX: 360) shares could be undervalued according to analysts at Bell Potter. This morning, the broker has retained its buy rating with a trimmed price target of $35.50. It said: “There is, therefore, some risk around the Q1 result – scheduled to be released on 12th May – and the potential of a downgrade or softening of the global MAU growth target though, on the flip side, reiteration of the guidance could be taken positively as it would show confidence in the outlook.”

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a decent finish to the week after the gold price rose slightly overnight. According to CNBC, the gold futures price is up 0.2% to US$4,785.9 an ounce. Ceasefire concerns and the release of US inflation data were behind the rise.

Buy Northern Star shares

Northern Star Resources Ltd (ASX: NST) shares could be cheap according to Bell Potter. Ahead of the release of its quarterly update and following the announcement of a share buyback, the broker has retained its buy rating and $35.00 price target. It said: “The buy-back has minimal impact on our EPS estimates going forward, however the signalling of value in the underlying business is of more importance. As noted above, we see NST as hitting the bottom of production and earnings downgrades, with some margin compression to come from the impact of fuel prices.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Here’s why Life360 shares could rise a massive 75%
• Buy, hold, sell: CSL, Magellan, and Woodside shares
• ASX 200 energy shares whipsaw amid fragile ceasefire
• Why Bendigo Bank, EBR Systems, Strickland, and Woodside shares are rising today
• March was the worst month for the gold price since June 2013. Now what?

Motley Fool contributor James Mickleboro has positions in Life360 and Woodside Energy Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX 200 mining shares were the worst hit by the Iran war last month.

The S&P/ASX 200 Materials Index (ASX: XMJ) tumbled 21% between 27 February and 23 March before a sharp recovery began.

Since then, materials shares have jumped 18% as investors refocus on the positive long-term outlook for Australian mining.

Meantime on The Bull this week, experts have revealed their ratings on three ASX 200 mining shares.

Let’s take a look.

BHP Group Ltd (ASX: BHP)

The BHP share price closed at $54.56 on Thursday, up 0.06%.

The market’s largest ASX 200 mining share is 59% higher over 12 months.

However, strong momentum was not enough to keep BHP shares immune from the Iran war sell-off.

The BHP share price dropped from a record high of $59.39 on 3 March to a low of $46.06 on 23 March.

With BHP stock now rebounding, Michael Gable from Fairmont Equities gives it a hold rating.

The commodities bull market has only just started, in my view.

As a global mining giant, BHP generally appeals to investors looking to increase exposure in the resources sector.

BHP’s share price has retreated to a major support level since the start of the war in Iran.

I’m confident the stock should bounce from these levels.

BHP’s diversification makes it a safer bet for investors to ride the commodities bull market.

Capstone Copper Corp CDI (ASX: CSC)

Capstone Copper shares finished yesterday’s session at $12.10, down 2.81%.

The ASX 200 copper mining share has almost doubled over the past 12 months, up 97%.

Mitch Belichovski from Morgans Financial has a buy rating on Capstone Copper shares.

Belichovski said:

CSC is one of a limited number of pure play copper names listed on the ASX.

Copper production growth differentiates CSC from its peers.

Growth is driven by a combination of near term and longer dated brownfield and greenfield projects, alongside a declining cost profile.

CSC was recently trading on a modest price-earnings ratio in 2026 and offers good value at these price levels.

South32 Ltd (ASX: S32)

The South32 share price closed at $4.58 yesterday, up 0.22%.

Mark Elzayed from Investor Pulse has a hold rating on South32 shares.

He said South32 was navigating a complex portfolio transition along with operational challenges.

He noted that the company put an aluminium smelter in Mozambique into care and maintenance last month.

However, Elzayed said South32’s 1H FY26 results were encouraging.

Underlying EBITDA of $US1.1 billion was up 9 per cent on the prior corresponding period.

Underlying earnings of $US435 million grew 16 per cent, supported by higher base and precious metals prices.

Copper and zinc production remained strong, highlighted by a 28 per cent increase in underground ore reserves at Cannington.

The ASX 200 mining share has soared 43% over six months and is 28% higher in the year to date.

He concluded:

From a valuation and technical standpoint, we see S32 as fairly valued following a strong rally earlier this year.

The stock is consolidating, with technical indicators appearing neutral, and we view it as a wait and see opportunity.

The post Buy, hold, or sell? South32, Capstone Copper, and BHP shares appeared first on The Motley Fool Australia.

More reading

• 3 reasons to buy Capstone Copper shares today
• Why surging ASX 200 copper stocks like Sandfire and BHP shares are ‘vulnerable’
• Morgans names two ASX 200 shares to buy and one to sell this week
• 3 analysts give their verdict on BHP shares
• ASX 200 sector leaders to buy amid today’s market rally

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

These quality ASX dividend shares have slid toward fresh 52-week lows and lost up to 20% for the year to date. As a result, long-term investors now get a rare chance to lock in higher starting yields and stronger rebound upside.

Three ASX dividend shares stand out for their mix of appealing income, asset backing, and recovery potential: Dexus (ASX:DXS), Mirvac Group (ASX: MGR), and Charter Hall Group (ASX: CHC). 

Dexus: premium assets, premium yield

Dexus remains one of the clearest contrarian income plays on the ASX after appearing on one of the latest fresh 52-week lows scan. Its biggest strength is institutional-grade office, industrial, healthcare, and infrastructure exposure, backed by a vast $51.5 billion real assets platform. 

The market’s main concern is obvious: CBD office valuations and leasing demand. Higher bond yields and softer white-collar occupancy trends continue to weigh on sentiment, which explains why the ASX dividend share remains under pressure.

Still, the distribution story remains attractive. Dexus recently confirmed its February 2026 distribution payment, continuing its typical half-year payout structure, and the forward yield sits around 6.3% to 6.6% at current prices. 

For patient investors, this is the classic “buy when office fear peaks” setup.

Mirvac Group: diversified and less office-dependent

Mirvac offers a slightly different flavour of income. This ASX dividend share has also been dragged toward yearly lows with the broader REIT sector. Its strength lies in diversification across residential development, retail, industrial, and premium office assets. That broader earnings mix can make it less vulnerable than pure office landlords.

The risk, however, is that apartment settlements and commercial valuations are both highly rate-sensitive. If inflation remains sticky, the recovery could take longer than bulls hope.

On income, Mirvac’s payout policy has historically been based on operating earnings and cash generation from both rent and development profits, usually paid in two instalments annually.

The yield around these levels is generally 5.5% to 6%, which becomes especially attractive when the stock is trading near 12-month lows. 

Charter Hall Group: the defensive income specialist

For pure passive income, Charter Hall may be the standout of the trio.  

The biggest strength of this ASX dividend share is right in the name: long weighted average lease expiry (WALE). This means rental income is typically locked in for years with blue-chip tenants. That makes distributions more predictable than most office-heavy REITs.

The key risk is that higher interest costs compress property values and slow external growth, even when rent collections remain stable.

The payout policy of this ASX dividend share is built around steady quarterly or semi-annual rental-backed distributions. Dividend yields can push north of 7% near cyclical lows, making it the most compelling pure-income pick of the three.

The post 3 ASX dividend shares near 52-week lows with very tempting yields appeared first on The Motley Fool Australia.

More reading

• Charter Hall Group secures $1.2bn property mandate from institutional client
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• 3 ASX income stocks trading at attractive prices
• These 3 ASX 200 shares have hit fresh multi-year lows: Buy, sell or hold?
• Is now the time to jump on these ASX real estate stocks?

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 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.

Bendigo and Adelaide Bank Ltd (ASX: BEN) shares closed another 8.4% higher on Thursday afternoon, at $11.34 a piece. 

The latest uptick means the shares are now 13.2% higher over the past five days and 6.9% higher for the year-to-date.

It’s welcome news for investors too, after Bendigo Bank shares shed over 14% of their value between mid-February and late-March.

Why are Bendigo Bank shares climbing higher this week?

The regional Australian bank posted its third-quarter trading update ahead of the ASX open on Thursday morning.

The bank revealed a 7.6% increase in unaudited cash earnings and a 1.98% rise in net interest margin. It’s annualised lending growth was 5.6% for the quarter and its statutory NPAT reached $109.4 million.

It also revealed that its operating expenses came in 4.1% lower than the previous quarter, largely due to reduced staff costs.

Alongside the trading update, the bank also announced the second phase of its Productivity Program to accelerate its progress towards its 2030 strategy.

The program is expected to help the bank evolve its operating model with a view to be simpler and more efficient. It is also accessing leading global capabilities to drive innovation for customers, and support operational excellence.

Bendigo Bank announced a partnership with Google in November last year. It has now added two more strategic partnerships with leading technology providers. 

These include a seven-year technology service partnership with Infosys (NYSE: INFY) and a six-year business operations partnership with Genpact (NYSE: G).

The Infosys partnership is expected to help improve Bendigo Bank’s IT service delivery capability and help drive innovation through better software engineering and access to AI talent.

Meanwhile, the Genpact partnership will help with optimisation to help drive productivity and improve risk management across the bank.

Bendigo Bank said it expects the partnerships will help drive an annual run rate expense benefit of approximately $65 million to $75 million by FY28. 

Investors were clearly thrilled with the latest update. Many rushed to buy into the shares soon after the announcement.

Are the shares a buy, sell or hold?

Bendigo Bank’s latest update injected some positive sentiment into investors, but it’s unclear whether the share price increase is sustainable.

ASX bank stocks across the board have been strained recently as ongoing conflict in the Middle East, soaring fuel prices, and interest rate growth weigh heavily on investor sentiment.

Experts are now warning that Australia’s inflation rate could keep climbing. Major banks widely predict another cash rate increase in May. 

It’s not too surprising then that analysts are relatively neutral on Bendigo Bank shares. While the bank has made some positive waves, the sector as a whole is still under pressure. 

According to TradingView data, nine out of 14 analysts have a hold rating on Bendigo Bank shares. The average $10.43 target price, however, implies a potential 8% downside at the time of writing. 

The post Are Bendigo Bank shares a buy after jumping 13% this week? appeared first on The Motley Fool Australia.

More reading

• Why Bendigo Bank, EBR Systems, Strickland, and Woodside shares are rising today
• Why is everyone talking about Sandfire, Bendigo Bank, and DroneShield shares on Thursday?
• ASX bank stock jumps 7% on strategic partnerships and trading update
• Bendigo and Adelaide Bank lifts profit and launches strategic partnerships
• ASX bank stocks: Buy, sell, or hold?

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

It’s been a rough stretch for ASX retail stocks.

Lovisa Holdings Ltd (ASX: LOV) and Nick Scali Ltd (ASX: NCK) both slipped again on Thursday afternoon, falling 4% and 3% respectively at the time of writing.

That adds to a painful trend. Lovisa is now down 21% year to date, while Nick Scali has tumbled 31%.

So, is this a red flag or the kind of dip investors dream about?

Let’s break it down.

Lovisa: expansion in Europe, Asia and US

Lovisa has built a global fashion jewellery empire and it’s still growing.

The fast-fashion model of this ASX retail stock allows it to quickly adapt to trends, while its expanding international footprint continues to drive store growth. Lovisa has successfully scaled across Europe, the US, and Asia, giving it a long runway for expansion. That growth story is the key attraction.

But the market has cooled. Rising costs, softer consumer spending, and concerns about margins have weighed on sentiment. Retail is a tough game in uncertain economic conditions, and Lovisa isn’t immune.

And analysts are becoming more cautious on the ASX retail stock. Bell Potter recently retained its hold rating but slashed its price target to $24.00 from $33.50 — a significant downgrade. From current levels, that implies only around 5% upside over the next 12 months.

Still, for long-term investors, the global growth story remains intact if execution holds.

Nick Scali: strong margins, UK growth

Nick Scali has also been under pressure, but its fundamentals remain solid.

The furniture retailer is known for strong margins, disciplined cost control, and a premium product offering. It has also expanded through acquisitions, including its UK growth push, which could unlock new revenue streams. Like Lovisa, it benefits from brand strength and a loyal customer base.

But the risks are clear. Furniture is highly cyclical. When consumer confidence drops or interest rates rise, big-ticket spending is often one of the first areas to be cut.

That’s likely a big reason behind the recent share price weakness.

Even so, analysts see potential. Sentiment is cautiously optimistic, with five out of ten analysts rating the ASX retail stock as a buy or strong buy, and the other five sitting at hold. The average price target is $22.37, suggesting potential upside of around 39%.

That’s a meaningful gap from current levels.

Foolish Takeaway

Lovisa and Nick Scali have both been hit hard, but that’s exactly what makes them interesting.

For investors willing to look past short-term retail headwinds, these ASX stocks could offer a mix of recovery potential and long-term growth.

The key question: are you buying the dip or avoiding the risk?

The post Got $7,500? Here are 2 strong ASX retail stocks to buy now appeared first on The Motley Fool Australia.

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• Here’s what I consider to be the very best ASX 200 share to buy in April

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