Welcome to this week’s edition of 18 Share Tips: our weekly selection of top ASX shares, chosen by leading analysts, that we think are worth considering.
This week Dylan Evans of Catapult Wealth, Christopher Watt of Bell Potter Securities, and John Athanasiou of Red Leaf Securities share their ‘Buy’, ‘Hold’ and ‘Sell’ recommendations.
Please note these share tips are simply recommendations and are in no way intended as financial advice. These share tips are general advice and don’t take into account any individual’s financial situation. Investors are advised to seek professional financial advice before investing.
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Dylan Evans, Catapult Wealth
BUY RECOMMENDATIONS
BUY – Aristocrat Leisure (ALL)
Aristocrat makes and distributes slot machines and is a major player in online casinos. Aristocrat’s share price has fallen considerably this calendar year, driven partly by the fear of artificial intelligence (AI) competition and currency related issues. While AI does increase the risk of competition via new entrants, particularly in the online space, the highly regulated nature of the industry provides some protection for Aristocrat. We believe any risk to Aristocrat’s position is overblown, and this weakness presents an opportunity to buy a company with a strong history of earnings growth at the lower end of its historic multiples range.
BUY – Coles Group (COL)
The supermarket giant posted a solid first half result in fiscal year 2026, maintaining margins and delivering earnings before interest and tax growth of 10.2 per per cent. The liquor business struggled, but it only makes up a small percentage of group revenue, so its overall impact is limited. Coles has continued to grow its share of own-brand sales, leverage its quality locations into home delivery and online sales growth and expand locations to capture population growth. The Middle East conflict and its inflationary impacts may be a short term disruption, but an inflationary environment is somewhat cushioned for supermarkets, particularly compared to more discretionary sectors.
HOLD RECOMMENDATIONS
HOLD – Lynas Rare Earths (LYC)
Lynas remains one of the few rare earths producers outside China, and the strategic value of its Australian location has only become more obvious in the shadow of the war in Iran. The recent 10-year renewal of the company’s Malaysian operating licence provides further certainty, particularly as the Malaysian Government has left uncertainty in the past. Sustaining the company’s demanding valuation is a challenge, with much of its future potential priced into the share price at recent levels, in our view.
HOLD – PLS Group (PLS)
PLS is a lithium producer. Demand for lithium is well supported, driven by consistent growth and adoption of technologies, including battery energy storage and electric cars. Demand is revealed in the group’s recently signed off-take agreement with China’s Canmax Technologies, a deal that included a record $US1000 a tonne price floor. Looking forward, PLS is well placed to grow as it has the means for substantial expansion potential at its existing Pilgangoora operations in Western Australia.
SELL RECOMMENDATIONS
SELL – Iress (IRE)
Iress is a significant provider of financial market and wealth management software across Australia, Asia, Canada and the UK. The recurring subscription model has always been attractive, delivering reliable and consistent earnings over several decades. However, other competitors are emerging and could challenge IRE’s all-in-one model with a solution built from smaller offerings. This may challenge IRE’s long term market share. The company reported a 10.6 per cent decline in statutory net profit after tax in full year 2025 when compared to the prior corresponding period. The shares have fallen from $9.68 on November 24, 2025 to trade at $7.03 on April 16, 2026.
SELL – Commonwealth Bank of Australia (CBA)
CBA is a high quality company, with a strong management team and consistent track record. However, in our view, the bank was recently trading on a lofty price-earnings ratio well above its long term average and that of its competitors. This multiple expansion has driven much of CBA’s share price outperformance in the past five years. However, the company’s high multiple is supported by only single digit growth and a recent modest dividend yield below 3 per cent on April 16. We believe the company is overvalued.
Top Australian Brokers
Christopher Watt, Bell Potter Securities
BUY RECOMMENDATIONS
BUY – Xero (XRO)
This accounting software provider remains a high quality business, underpinned by strong subscriber growth and increasing average revenue per user through product expansion. Xero continues to improve operating leverage as the business scales up globally, with margins expected to expand in response to cost discipline. Importantly, Xero is transitioning from a growth-at-all-costs model to one focused on profitability and cash generation, which should support a re-rating in valuation. With a large addressable small-to-medium sized market and increasing penetration of digital accounting, Xero is well positioned to deliver sustained double-digit earnings growth. Near term catalysts include further margin upgrades and continued execution across key regions. We believe concerns related to the impact of artificial intelligence are overblown, and the share price sell-off presents a compelling buying opportunity.
BUY – Life360 Inc. (360)
This information technology company provides a mobile networking safety app for families. The company offers a compelling growth story driven by its unique position at the intersection of safety, connectivity and subscription-based monetisation. With accelerating premium subscriber growth alongside improving unit economics, the company continues to benefit from strong engagement and pricing power. The integration of hardware and software ecosystems provide options for further monetisation, while operating leverage is beginning to emerge. Given strong top line momentum, expanding margins and the recent sell-off in line with the broader technology sector, Life360 presents an attractive risk-reward profile, particularly at current levels.
HOLD RECOMMENDATIONS
HOLD – Lovisa Holdings (LOV)
This global fashion and jewellery accessories retailer continues to deliver a strong store roll-out and resilient sales growth, supported by its global expansion strategy. However, in our view, much of its growth is already reflected in the company’s valuation, with execution risk increasing as the store base matures. While margins remain robust and the brand continues to resonate with consumers, the pace of expansion may moderate over time. Lovisa remains a high quality retailer, but at current levels, a more balanced risk-return profile justifies a hold rating.
HOLD – Orora (ORA)
The packaging giant faces near term headwinds. Earnings before interest and tax for the Saverglass business has been materially downgraded in fiscal year 2026, with softer wine demand and operational disruptions contributing to the outlook revision. While leverage remains manageable and the valuation appears reasonable, the lack of near term catalysts and earnings uncertainty supports a neutral stance. Longer term, a recovery in demand and a return to normal operations could drive upside, but visibility remains limited.
SELL RECOMMENDATIONS
SELL – ASX Limited (ASX)
The ASX appears challenged, in our opinion, with structural pressures emerging across its core listings and trading businesses. Our research indicates limited growth in listings activity and ongoing scrutiny around system reliability may weigh on investor confidence. While the ASX benefits from monopoly-like characteristics, its earnings growth profile is moderating, in our view, and regulatory risk remains elevated. At current valuation levels, the risk-reward equation looks unfavourable relative to other opportunities in the market.
SELL – Bendigo and Adelaide Bank (BEN)
The market responded positively to the company’s third quarter trading update for fiscal year 2026. Unaudited cash earnings were up 7.6 per cent on the first half quarterly average. The net interest margin of 1.98 per cent was up 6 basis points on the second quarter of 2026. In our view, catalysts to drive improvement from here are limited. The risk-reward profile lags other peers, so we would be inclined to cash in gains in this volatile environment.
John Athanasiou, Red Leaf Securities
BUY RECOMMENDATIONS
BUY – NextDC (NXT)
Australia’s leading data centre operator provides connectivity and colocation services to cloud, enterprise and government clients across Australia and the Asia Pacific. Its network of certified facilities underpin critical digital infrastructure amid surging demand for cloud, artificial intelligence and high performance computing. NextDC recently launched a $1 billion hybrid securities offer to fund expansion. A strong forward order book reflects institutional confidence in its long term growth. The company continues to build new facilities and sign strategic partnerships, positioning it to capture structural tailwinds in digital transformation and infrastructure demand.
BUY – EVE Health Group (EVE)
EVE is a life sciences company. It focuses on proprietary pharmaceutical reformulation and delivery technologies. The company is progressing a growing pipeline of reformulated drug candidates addressing sexual health therapies and cardiovascular treatments. It recently raised $904,000 at 2 cents a share to advance its drug reformulation strategy. In our view, the company’s capital-light, high margin model enables scalable expansion into larger reformulated drug markets. Trading at 3.1 cents a share on April 16, the stock is a speculative buy for investors with an appetite for risk amid the possibility of generating gains.
HOLD RECOMMENDATIONS
HOLD – BHP Group (BHP)
BHP is one of the world’s largest diversified miners, with high quality assets in iron ore, copper and energy minerals. The company generates strong cash flows and dividends, benefiting from its scale and operational efficiency. However, BHP’s performance is closely tied to volatile commodity cycles, particularly iron ore prices and global demand, which can cap near term valuation expansion. While long-term fundamentals in key metals remain robust, with electrification and decarbonisation trends supporting copper demand, the stock is fairly priced and may trade sideways until clearer commodity drivers emerge.
HOLD – Woolworths Group (WOW)
Australia’s largest supermarket operator offers stable defensive earnings and a strong balance sheet. It benefits from everyday demand and a dominant position in grocery retail supporting steady cash flows and dividends. However, margin pressure from cost inflation and competitive discounting limits growth prospects. While same store sales growth remains moderate, the company’s resilience in consumer staples provides a solid foundation. WOW is a reliable long term holding, but lacks significant upside catalysts in the absence of operational improvements or digital expansion initiatives.
SELL RECOMMENDATIONS
SELL – HUB24 (HUB)
The company’s diversified financial services platform provides investment and superannuation administration technology to advisers and institutions. Despite its strong technology footprint, current multiples imply high future growth expectations that may be difficult to meet, in our view. Any slowdown in adoption or execution could put pressure on its share price. Given what we consider an elevated valuation and the inherent risks in scaling further, HUB24 presents limited upside from current levels, making it a candidate for investors to reduce holdings.
SELL – Wesfarmers (WES)
Wesfarmers is a diversified industrial conglomerate. Major retail brands include Bunnings, Kmart, Target and Officeworks. Its businesses are household names, but recent trading suggests slowing consumer demand and cost pressures are weighing on sentiment. With much of its value already priced in amid a mixed outlook on near term retail growth, Wesfarmers lacks fresh catalysts to drive meaningful upside. Trimming positions into strength may be prudent for investors seeking a better risk-reward proposition.
Featured Names – The Roundup
NameRecommendationFirm
Aristocrat Leisure (ALL)BuyCatapult Wealth
Coles Group (COL)BuyCatapult Wealth
Xero (XRO)BuyBell Potter Securities
Life360 Inc. (360)BuyBell Potter Securities
NextDC (NXT)BuyRed Leaf Securities
EVE Health Group (EVE)BuyRed Leaf Securities
Lynas Rare Earths (LYC)HoldCatapult Wealth
PLS Group (PLS)HoldCatapult Wealth
Lovisa Holdings (LOV)HoldBell Potter Securities
Orora (ORA)HoldBell Potter Securities
BHP Group (BHP)HoldRed Leaf Securities
Woolworths Group (WOW)HoldRed Leaf Securities
Iress (IRE)SellCatapult Wealth
Commonwealth Bank of Australia (CBA)SellCatapult Wealth
ASX Limited (ASX)SellBell Potter Securities
Bendigo and Adelaide Bank (BEN)SellBell Potter Securities
HUB24 (HUB)SellRed Leaf Securities
Wesfarmers (WES)SellRed Leaf Securities
The above recommendations are general advice and don’t take into account any individual’s objectives, financial situation or needs. Investors are advised to seek their own professional advice before investing. Please note that TheBull.com.au simply publishes broker recommendations on this page. The publication of these recommendations does not in any way constitute a recommendation on the part of TheBull.com.au. You should seek professional advice before making any investment decisions.
Anthony Black is a long-standing journalist, having worked in newspapers for more than 20 years. He was the Sunday Herald-Sun’s finance editor for eight years and his reports were published in News Limited papers across Australia.