REA Group Ltd (ASX: REA) shares could be good value after pulling back by 33% from their high.

That’s the view of analysts at Bell Potter, who are recommending the ASX 200 share as a buy to clients.

What is the broker saying about this ASX 200 share?

Bell Potter was pleased with REA Group’s quarterly update, highlighting that the realestate.com.au operator delivered a resilient result despite rising interest rates. It said:

REA reported a resilient Q3 update in a rising interest rate environment, with 1% growth in listings driven by strong Melbourne (+7%) and Sydney (+4%) performance. Residential Buy yield of +14% for the quarter was ahead of BPe FY26 (12%) and was supplemented by the Mel/Syd volume outperformance. Commercial and Financial Services segments grew revenues double digits, while a focus on core Housing.com revenue in India helped reduce Group opex on a like-for-like basis to 5% growth offset by 9% growth in Aus; Group margin increased by 221bps YoY to 55.3% for the quarter.

Another positive is that the broker believes that REA Group’s outlook is improved despite a deterioration in market conditions. It adds:

REA guided to an 8% average price increase for FY27e, which is well ahead of Domain’s 4% increase aimed at undercutting REA on price to take market share; our read-through is that REA remains confident in proving value against price leveraging its superior audience with REA attracting and engaging the buyer for 9 out of 10 homes listed on-platform and go on to sell, according to independently reviewed and validated data provided to end-users.

Recent acquisition iGuide is expected to assist against the CoStar integration of Matterport into Domain. REA see’s the market entering a balanced phase following a period of demand exceeding supply; our forecast for -2% listings decline in FY27e is unchanged.

Market-beating potential returns

According to the note, the broker has retained its buy rating on the ASX 200 share with an improved price target of $217.00 (from $211.00).

Based on its current share price of $176.89, this implies potential upside of almost 23% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

While we recognise the potential for disruption in a rapidly evolving environment, we currently see the multiple compression as 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 this dominant blue-chip ASX 200 share is a buy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why Block, News Corp, REA Group, and TechnologyOne shares are storming higher today
• REA shares rise as investors look past a rough year
• REA Group shares: Q3 revenue climbs and user engagement breaks records
• 5 things to watch on the ASX 200 on Friday

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 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.

A brutal sell-off in one of the ASX 200’s biggest tech names has opened up a very attractive buying opportunity.

After a rough start to 2026, WiseTech Global Ltd (ASX: WTC) shares are trading at a large discount to where they were less than a year ago.

The logistics software company finished Friday down 4.63% to $42.27. That followed a weaker session for the S&P/ASX 200 Index (ASX: XJO) as investors reacted to naval skirmishes between the US and Iran in the Strait of Hormuz.

WiseTech shares are now down almost 40% in 2026. They are also trading a long way below their July 2025 high of $121.31.

Let’s take a closer look at why the stock could be worth buying at these levels.

A global software business at a very cheap price

WiseTech is best known for CargoWise, its software platform used across the global logistics industry.

Its customers include freight forwarders, customs brokers, logistics providers, and other companies that need to manage complex cross-border supply chains.

This isn’t a simple app that customers can easily replace. CargoWise sits deep inside day-to-day logistics workflows, covering areas such as freight forwarding, customs, compliance, routing, and documentation.

Once embedded, CargoWise can become difficult and costly to replace.

And WiseTech also has a large global opportunity.

In its latest Macquarie Australia Conference presentation, the company said CargoWise is targeting an $11 trillion-plus global logistics market. It also pointed to TradeWise, trade finance, customs and border agencies, and verified identity as additional long-term markets.

Guidance still looks strong

The key point to note is that the company’s numbers still point to a strong year ahead.

WiseTech has maintained its FY26 guidance. It expects revenue of US$1.39 billion to US$1.44 billion and EBITDAof US$550 million to US$585 million.

That implies an EBITDA margin of around 40% to 41%.

WiseTech has also pointed to underlying EBITDA of US$598.5 million to US$637.5 million.

The company is also pushing harder into artificial intelligence (AI). Management sees AI as a way to improve productivity, reduce labour intensity, and make its platform more useful for customers.

But there are risks. WiseTech is still not cheap on traditional valuation measures, and investors have been worried about acquisitions, AI disruption, and global trade uncertainty.

Nonetheless, at $42.27, the risk-reward looks far more interesting than it did near $121.

Foolish takeaway

Despite the above, I would not call WiseTech completely risk-free.

The US-Iran conflict and pressure around the Strait of Hormuz have added uncertainty to global trade and shipping. But those issues will not last forever.

Once shipping lanes normalise and the market starts looking past the geopolitical noise, I think WiseTech could re-rate quickly.

This is still a high-margin global software business with recurring revenue, deep customer relationships, and a large market opportunity.

With FY26 guidance maintained and the stock more than 60% below last year’s high, WiseTech looks like an absolute bargain.

The post Is this the best ASX 200 stock to buy in May? appeared first on The Motley Fool Australia.

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• ASX 200 mining shares smash multi-year highs as key commodity prices rise
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• 10 years until retirement: Is your superannuation ready?

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

The ASX 200 has been strong over the past year, but CSL Ltd (ASX: CSL) has missed the party completely.

On Friday, CSL shares hit a 52-week low of $119.61. That means the healthcare giant is now down around 49% over 12 months.

I think that is an extraordinary fall for one of Australia’s highest-quality global businesses. And while CSL clearly has challenges to work through, I believe the sell-off has created a buying opportunity for patient investors.

This is not just any fallen stock

I would never buy a share simply because it has fallen heavily.

Sometimes a falling share price is the market correctly adjusting to a weaker business. But I think CSL deserves a closer look because of what it still owns.

This is a global healthcare company with leading positions in plasma therapies, vaccines, and specialist medicines. Its products are used to treat serious medical conditions, which gives the business a very different demand profile from a retailer, miner, or airline.

That does not make CSL immune from problems. Plasma collection costs, margin pressure, trial failures, weak demand for albumin in China, and investor disappointment around earnings growth have all weighed on sentiment.

But I do not think those issues destroy the long-term value of the business.

For me, the key question is whether CSL can gradually rebuild confidence. If it can, today’s share price could look very cheap in hindsight.

The market has reset expectations

What makes CSL interesting today is how far expectations have moved.

A few years ago, investors treated CSL as one of the safest growth shares on the ASX. It often traded at a premium valuation because the market believed in its long-term earnings power.

Today, the mood is very different.

Investors are questioning the pace of recovery, margins, balance sheet flexibility, and whether management can return the business to the type of growth profile it once delivered.

I think that caution is understandable. But I also think the share price now reflects a lot of disappointment.

That is where the opportunity may be.

If CSL only needs to show steady progress, rather than perfection, the risk-reward looks much more appealing to me at a 52-week low than it did when the market was pricing in near-flawless execution.

The recovery could be powerful

CSL does not need to become a new business to create value from here.

It needs to execute better, restore margins over time, manage costs, keep reducing investor concerns, and show that its core plasma business still has attractive long-term growth ahead.

I believe it can do that.

Healthcare demand is not going away. Plasma therapies remain difficult to replicate at scale. CSL has global infrastructure, scientific expertise, regulatory experience, and deep relationships across healthcare markets.

Those strengths can be easy to overlook when sentiment is poor.

But for long-term investors, I think they still matter.

There is also something important about buying quality when it feels uncomfortable. The best entry points rarely arrive when every headline is positive. They often appear when investors are tired of waiting and the market has stopped giving a company the benefit of the doubt.

That feels close to where CSL is today.

Foolish takeaway

CSL shares are deeply out of favour, and I can understand why some investors have lost patience.

But I think the market may now be focusing too much on the pain of the past year and not enough on the quality that still sits inside the business.

At a 52-week low, I would be willing to buy CSL shares and give the company time to recover.

It may not happen quickly. But if CSL can regain even part of its former market confidence, I think patient investors could be well rewarded from here.

The post Why I’d buy CSL shares at their 52-week low appeared first on The Motley Fool Australia.

More reading

• Is this ASX healthcare share a buy for its 6.2% dividend yield?
• 3 compelling reasons to buy CSL shares today
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• ASX share volatility is rising, are you making this mistake?
• 8 ASX 200 shares with renewed buy ratings this week

Motley Fool contributor Grace Alvino 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.

On Friday, the S&P/ASX 200 Index (ASX: XJO) had a day to forget and finished the week deep in the red. The benchmark index sank 1.5% to 8,744.4 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set for a poor start to the week despite a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 42 points or 0.5% lower. In the United States, the Dow Jones was largely flat, but the S&P 500 rose 0.85% and the Nasdaq stormed 1.7% higher.

Oil prices rise

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent session after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price was up 0.65% to US$95.42 a barrel and the Brent crude oil price was up 1.2% to US$101.29 a barrel. Traders were buying oil amid doubts over the US-Iran peace deal.

ANZ shares going ex-dividend

ANZ Group Holdings Ltd (ASX: ANZ) shares are going ex-dividend this morning and could trade lower. Last week, the big four bank released its half-year results and declared a partially franked interim dividend of 83 cents per share. This will be paid to eligible shareholders in around seven weeks on 1 July.

Gold price rises

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a positive start to the week after the gold price pushed higher on Friday night. According to CNBC, the gold futures price was up 0.4% to US$4,730.7 an ounce. Traders appear to believe gold has been oversold in recent weeks.

Buy REA Group shares

Bell Potter thinks REA Group Ltd (ASX: REA) shares are good value. In response to the property listings company’s quarterly update, the broker has retained its buy rating with an improved price target of $217.00 (from $211.00). It said: “While we recognise the potential for disruption in a rapidly evolving environment, we currently see the multiple compression as 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 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining shares smash multi-year highs as key commodity prices rise
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• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in REA Group and 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.

A booming lithium market has sent several ASX lithium stocks into overdrive, with two standout performers delivering extraordinary returns for investors.

PLS Group Ltd (ASX: PLS) has risen 323% over the past 12 months, while Liontown Ltd (ASX: LTR) has climbed an even stronger 354%.

Recent momentum has also been strong. Over the past month alone, PLS shares are up 21%, while Liontown has jumped 42%.

The key catalyst has been a sharp rebound in lithium prices. Lithium carbonate prices have risen almost 60% in 2026 and are up roughly 180% over the past year as demand expectations continue to strengthen.

The global push toward clean energy and electric vehicles (EVs) remains the biggest long-term driver. At the same time, ongoing oil market volatility has reinforced the appeal of EV adoption globally, increasing optimism around future lithium demand.

But after such explosive gains, investors may be wondering whether these ASX lithium stocks can keep climbing.

PLS Group

PLS Group has become one of the ASX’s most closely watched lithium producers thanks to its strong production profile and large-scale operations.

The company benefits from established lithium exports, growing cash flow generation and significant leverage to higher spodumene prices. Investors have also been encouraged by improving sentiment across the broader battery materials sector.

However, lithium remains a highly cyclical commodity, and that creates risk for shareholders after a rally of this size. Any sharp pullback in lithium prices could weigh heavily on earnings expectations and market sentiment.

That caution is increasingly reflected in broker views on the ASX lithium stock. Morgans recently downgraded PLS shares to a trim rating and placed a $5.40 price target on the stock. With shares currently trading around $6.26, the broker sees limited near-term upside after the recent surge.

Even so, bullish lithium market conditions could continue supporting the share price if battery demand remains strong and supply growth struggles to keep pace.

Liontown

This $8 billion ASX lithium stock has also ridden the lithium rebound aggressively higher as investors look toward the company’s production growth potential.

The market has become increasingly optimistic about Liontown’s long-term ability to benefit from stronger lithium pricing and expanding EV demand globally.

Its development pipeline and exposure to future battery supply chains continue attracting investor attention, particularly as major automakers and battery manufacturers seek secure lithium supply.

Still, Liontown carries its own risks. Development-focused miners can face funding pressures, operational execution challenges and sensitivity to commodity price swings.

Analyst sentiment also appears more balanced following the recent rally. According to CommSec data, Liontown shares currently carry a consensus hold rating among 12 analysts covering the stock.

Morgans this week also downgraded Liontown shares from hold to trim, although it lifted its price target to $2.20, which is below the current share price.

Foolish Takeaway

For investors, the outlook for both ASX lithium stock may ultimately depend on whether lithium prices can continue their remarkable recovery.

If EV demand growth remains strong and supply stays constrained, these high-flying ASX lithium shares could still have room to run.

The post ASX lithium stocks surge more than 300%: is there more to come? appeared first on The Motley Fool Australia.

More reading

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• ASX lithium stocks to buy amid commodity price rocketing 58% already this year

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.

Building an ASX portfolio does not have to be difficult.

In fact, I think many investors could do very well by keeping things simple, spreading their money across a small number of exchange-traded funds (ETFs), and letting time do the heavy lifting.

If I were starting today and wanted a simple long-term portfolio, I would consider using three ASX ETFs.

Start with a broad Australian base

The first ETF I would consider is the Vanguard Australian Shares Index ETF (ASX: VAS).

This ETF provides investors with exposure to a broad basket of Australian shares, including the largest companies on the ASX.

That means a single investment can provide exposure to banks, miners, retailers, healthcare companies, infrastructure shares, and industrial businesses.

For me, the appeal is simplicity.

Instead of trying to pick the next winning bank or mining stock, investors can own a broad slice of the Australian market. That can reduce the risk of relying too heavily on one company.

The VAS ETF can also provide dividend income, which is one of the features many investors like about the Australian share market.

I would not expect it to be the fastest-growing part of the portfolio every year. But I think it can work well as a steady foundation.

Add global diversification

The second ETF I would consider is the Vanguard MSCI Index International Shares ETF (ASX: VGS).

This is where I think the portfolio becomes much stronger.

Australia is a good market, but it is also quite concentrated. Banks and resources make up a large part of the local index, which means investors can miss out on other sectors if they only buy Australian shares.

The VGS ETF helps solve that problem.

It provides exposure to major global companies across developed markets, including large technology, healthcare, consumer, industrial, and financial businesses.

I think that is important because many of the world’s best companies are listed outside Australia.

A portfolio that only owns ASX shares may be missing out on global leaders in software, semiconductors, luxury goods, pharmaceuticals, payments, and cloud computing.

That is why I would want the VGS ETF in the mix.

Add a growth tilt

The third ETF I would consider is the Betashares Nasdaq 100 ETF (ASX: NDQ).

This ETF is more concentrated and higher risk than the VAS or VGS ETFs, but I think it can play a useful role for investors who want extra growth exposure.

It gives investors access to many of the largest companies listed on the Nasdaq, including global technology and innovation leaders like Apple and Nvidia.

These businesses are exposed to themes such as artificial intelligence, cloud computing, digital advertising, e-commerce, cybersecurity, and software.

Of course, the Nasdaq can be volatile. When interest rates rise or investors turn away from growth shares, the NDQ ETF can fall sharply.

But over the long term, I think owning some exposure to world-class technology businesses makes sense.

Foolish Takeaway

An ASX portfolio does not need 20 holdings to work.

I think a mix of the VAS, VGS, and NDQ ETFs could give investors a strong starting point. It provides exposure to Australian dividends, global businesses, and some of the world’s leading technology companies.

There will still be market downturns, and returns are never guaranteed. But for investors who want a straightforward way to build wealth over time, I think this three-ETF approach is hard to ignore.

The post How I’d build a simple ASX portfolio with just 3 ETFs appeared first on The Motley Fool Australia.

More reading

• How to retire early at 57 with these 3 Vanguard ASX ETFs
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Motley Fool contributor Grace Alvino has positions in Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, and Nvidia. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

For many Australians, exchange-traded funds (ETFs) offer one of the simplest ways to grow wealth steadily over time. They provide instant diversification, relatively low fees, and exposure to hundreds — even thousands — of companies in a single investment.

Retiring early might sound ambitious, but building long-term wealth becomes far more achievable with the right investing strategy.

A balanced ETF portfolio can also help investors combine growth, income, and global diversification without needing to constantly pick individual shares.

Here are three Vanguard ASX ETFs that could form a strong long-term portfolio for investors aiming to retire earlier.

Vanguard Australian Shares Index ETF (ASX: VAS)

The VAS ETF is the most popular ASX ETF. The fund tracks the broader Australian share market and provides exposure to many of the country’s largest companies.

Its biggest holdings include Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).

This ETF can play an important role for income-focused investors because Australian shares are known for relatively strong dividend yields and franking credits. It also offers broad exposure across banks, miners, healthcare companies, and consumer businesses.

The management fee remains low, making it an efficient long-term core holding.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Next is the Vanguard MSCI Index International Shares ETF. This ETF provides exposure to large companies across developed global markets outside Australia.

Two of its largest holdings are Microsoft and Apple.

Global diversification matters because the Australian market is heavily concentrated in financials and resources. This ASX ETF adds exposure to global technology, healthcare, industrials, and consumer brands that simply aren’t well represented locally.

For long-term investors, that broader diversification can help reduce portfolio concentration risk while tapping into global growth trends.

Vanguard Diversified High Growth Index ETF (ASX: VDHG)

Finally, investors could consider the Vanguard Diversified High Growth Index ETF. This ETF provides an all-in-one diversified portfolio with a strong focus on growth assets.

Its underlying holdings include broad exposure to Australian and international shares through funds that hold companies such as Nvidia and Amazon.

The appeal here is simplicity. Investors gain exposure to thousands of global securities across multiple asset classes in a single ETF. Vanguard also automatically rebalances the portfolio, helping maintain the target asset allocation over time.

Because the ETF leans heavily toward growth assets, it may suit younger investors or those with a longer investment horizon aiming to maximise capital growth before retirement.

Foolish Takeaway

The bottom line is that early retirement usually comes down to consistency rather than chasing quick wins.

By combining Australian income exposure, global diversification, and long-term growth assets through low-cost Vanguard ASX ETFs, investors can steadily build wealth over time while keeping their strategy simple.

The post How to retire early at 57 with these 3 Vanguard ASX ETFs appeared first on The Motley Fool Australia.

More reading

• Building wealth with ASX ETFs? Don’t make these errors
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• Why I’d buy these ASX ETFs if I had $500 spare

Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Microsoft, and Nvidia. The Motley Fool Australia has recommended Amazon, Apple, BHP Group, Microsoft, Nvidia, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Baker Young’s Toby Grimm recently ran his slide rule over two S&P/ASX 200 Index (ASX: XJO) heavyweights.

And he liked what he saw.

Enough so that he issued a buy recommendation for engineering and professional services company Worley Ltd (ASX: WOR), which has a market cap of around $6.0 billion.

Grimm also has a buy recommendation on ASX 200 telco TPG Telecom Ltd (ASX: TPG), which commands a market cap north of $8 billion.

Here’s why he expects their share prices, and market caps, are set to grow (courtesy of The Bull).

Should you buy Worley shares today?

“Worley is an engineering and construction group,” said Grimm. “It recently stepped back from underlying earnings before interest and tax growth due to delays on Middle East projects.”

That news was delivered in a market update on 20 April.

While Worley reported that its projects in the Middle East have not been cancelled following the outbreak of hostilities, the ASX 200 heavyweight did say there were some delays.

As such, management forecast that the company’s full year FY 2026 earnings before interest, tax and amortisation (EBITA) will take a hit in the range of $30 million to $40 million.

Despite these impacts, Worley said it still expects to achieve year on year revenue growth in FY 2026.

According to Baker Young’s Grimm:

We believe the longer-term outlook remains supportive. Structural trends, such as de-globalisation of supply chains and increasing investment in energy efficiency, align closely with WOR’s core capabilities.

Summing up his buy recommendation on the ASX 200 shares, Grimm said, “Earnings volatility and missed expectations have weighed on sentiment. But the company is trading on an undemanding valuation relative to its medium-term growth potential.”

Worley shares trade on an unfranked 4.1% trailing dividend yield. The stock is down just over 2% in 12 months.

Which brings us to…

ASX 200 telecom accelerating growth

Commenting on his buy recommendation for TPG Telecom, Grimm said:

Following several years of asset sales and restructuring, TPG has emerged as a more focused telecommunications provider with a stronger balance sheet and increasing exposure to the structurally attractive mobile segment, now contributing close to half of group revenue.

And he noted that the ASX 200 share’s strategic operational shift is starting to pay off.

According to Grimm:

Full year 2025 results highlighted accelerating subscriber growth and improving revenue per user, indicating positive operating momentum. The company’s strategic shift away from infrastructure ownership and lower-margin fixed line broadband positions it for higher quality earnings growth.

The stock screens as relatively attractive compared to peers.

TPG shares are down about 20% over 12 months and trade on a partly franked 4.4% trailing dividend yield.

The post Why these 2 ASX 200 heavyweights just got a big buy call appeared first on The Motley Fool Australia.

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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 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.

It was another busy week for Australia’s top brokers. This has led to a number of broker notes being released.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Flight Centre Travel Group Ltd (ASX: FLT)

According to a note out of Macquarie, its analysts have retained their outperform rating and $17.95 price target on the travel agent’s shares. This follows the release of a trading update last week, which revealed that the company has retained its guidance for FY 2026. Macquarie was pleased with the news and notes that this reflects a strong corporate performance, which is offsetting disruption in the leisure segment. Together with ongoing cost discipline and productivity gains, the broker believes the company is positioned to grow its earnings over the medium term. The Flight Centre share price ended the week at $10.74.

ResMed Inc. (ASX: RMD)

A note out of Morgans reveals that its analysts have retained their buy rating on this sleep disorder treatment company’s shares with a trimmed price target of $41.72. This follows the release of a third-quarter result which Morgans thought was solid. The broker was pleased to see the company deliver double-digit revenue and earnings growth, further margin expansion, and strong cash flow generation. It also points out that investors seem to be focusing on variability in US device growth while pondering if the Noctrix acquisition is merely a plug to a slowing core. However, it views these concerns as myopic and manageable. As a result, Morgans thinks now could be a good time to buy shares. The ResMed share price was fetching $28.56 at Friday’s close.

TechnologyOne Ltd (ASX: TNE)

Another note out of Bell Potter reveals that its analysts have upgraded this enterprise software provider’s shares to a buy rating with an improved price target of $31.75. This follows news that TechnologyOne has won a new contract with James Cook University. Bell Potter believes this is a major positive from a product perspective. That’s because it demonstrates the power of TechnologyOne’s Agentic AI product to win contracts. As a result, the broker has boosted its annual recurring revenue (ARR) forecasts for the medium term and is now forecasting ARR of $655 million in FY 2026. This equates to growth of 18% year on year, which is at the top end of the company’s 16% to 18% guidance range for the year. The TechnologyOne share price ended the week at $27.99.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• 3 super ASX tech stocks I’d buy in May with $3,000
• Money to invest? I’d follow Warren Buffett to get rich
• $10,000 invested in these ASX 200 shares 10 years ago is worth…
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• Brokers name 3 ASX shares to buy right now

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

The ASX dividend stock Rural Funds Group (ASX: RFF) is an incredibly underrated passive income idea. When you put its positives together, it has a decent claim to be one of the best options on the ASX.

It’s not a famous business, but it gives exposure to one of the most important industries in Australia – farmland.

This is the only business on the ASX that focuses on owning farms and leasing them out, so it’s very attractive to gain a piece of that asset base.

Great farm portfolio

The business is invested across a number of farming assets, including almonds, cattle, macadamias, cropping, vineyards and more.

Rural Funds has locked in rental income for an extremely long time. In the FY26 half-year result, the business reported its weighted average lease expiry (WALE) was 13.2 years. Not many businesses have locked in their income that far in advance. Impressively, a large chunk of macadamia leases have been signed to FY64.

It has a number of large, high-quality tenants including Olam, JBS, Select Harvests Ltd (ASX: SHV), Stone Axe, Australian Agricultural Company Ltd (ASX: AAC) and Treasury Wine Estates Ltd (ASX: TWE).

I like how the ASX dividend stock regularly invests in its farming portfolio to improve the underlying value of the farm and increase its rental potential. Currently, it’s developing macadamia orchards.

Good passive income

Despite the challenges of higher interest rates, the business has been able to deliver investors a consistent level of passive income.

In the last few years, Rural Funds has given unitholders 11.73 cents per unit, annually.

It’s expecting to pay an annual distribution per unit of 11.73 cents in FY26, translating into a potential distribution yield of 5.75%.

Considering interest rates are rising again, I wouldn’t be surprised if the business pays another 11.73 cents per unit in the 2027 financial year. That would be another distribution yield of 5.75%.

Excellent discount

What’s a good price to pay for this business?

It’s hard to know what a property is worth unless you actually go to sell it.

Rural Funds regularly tells investors about what its underlying value is, called the adjusted net asset value (NAV). It’s ‘adjusted’ to take into account the market value of the water entitlements.

The ASX dividend stock reported its adjusted NAV was $3.10 at 31 December 2026, meaning it’s currently trading at a discount of around 34%, which is a great value to buy at.

The post Is this the best ASX dividend stock to buy for passive income? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.