Stock Tips: At least four stocks could be in rude health this week

It’s no easy gig analysing share prices and company performance but somebody’s got to do it. Every week two experts from our Share Tips columnist pool give us their recommendations. 

JED RICHARDS – Shaw and Partners

BUY

CSL (ASX:CSL)

Oversold and offers value at current levels. It remains a global duopoly in hospital plasma products, with strong pricing power and defensive earnings. Recent weakness is overdone; long-term fundamentals are intact. Consider buying for quality exposure to healthcare innovation and global demand for essential health services.

Sonic Healthcare (ASX:SHL)

Healthcare stocks are currently out of favour, but Sonic Healthcare’s financials have shown slight improvement. Growth rates are low, yet the stock appears oversold at these levels. Consider for defensive exposure and potential recovery as sentiment toward the sector improves.

HOLD

BWP Group (BWP)

The trust offers defensive earnings, underpinned by long leases to Bunnings. Depreciation is low due to the nature of its assets—mainly sheds and carparks on prime land. This provides stable income and capital preservation, making BWP a solid hold for conservative portfolios.

Duxton Water (ASX:D2O)

The company has transitioned from external management by Duxton to internal management. While the initial large break cost has drawn investor focus, the long-term benefits of internal management should position D2O for improved performance and greater alignment with shareholders in the years ahead.

SELL

AMP (ASX:AMP)

Years of damage control and attempts to fix legacy issues have weighed on performance. Despite recent executive changes and a short-term share price improvement, the company’s structural challenges remain. This is an opportunity to exit and reallocate capital to higher-quality businesses with clearer growth prospects and stronger management.

Bank of Queensland (ASX:BOQ)

Traditional banks like Bank of Queensland are struggling to compete with fast-growing digital and online banks, which offer superior technology and customer experience. Despite recent efforts, BOQ’s growth and profitability remain under pressure. Use any share price strength as an opportunity to exit and reallocate to stronger, more innovative institutions.

ABIGAIL COWLEY – Bell Potter Securities

BUY

Telix Pharmaceuticals (ASX:TLX)

This week, a transitional pass was granted to Telix by CMS for their Gozellix product, an overdue positive catalyst for the company. Continued product rollout and regulatory approvals present significant upside potential while the stock is trading at a low valuation.

Amcor (ASX:AMC)

Amcor presents an attractive buying opportunity at its current valuation in the defensive sector. Synergies from the merger of Berry Global in the US present a long-term catalyst for growth. Amcor announced a recent dividend of 19.6c.

HOLD

Technology One (ASX:TNE)

Technology One is a high-quality business with strong recurring revenue, however, its premium valuation leaves little room for error. We expect a material positive announcement at its showcase next month, relating to AI, which is likely to be a long-term catalyst for continued growth. Share price is considered fair value.

Mineral Resources (ASX:MIN)

Mineral Resources delivered solid FY25 results by record earnings of $737 million in their Mining Services division. The share price has had a welcomed recovery; however, elevated debt levels, lithium price volatility, and unresolved governance issues remain a short-term concern.

SELL

Star Entertainment Group (ASX:SGR)

Star Entertainment Group continues to underperform, with its balance sheet under significant strain. The company’s ability to improve financial performance and restore cash flow remains highly uncertain. Dividend payments are currently suspended, making any near-term shareholder returns unlikely.

Endeavour Group (ASX:EDV)

Endeavours business makes over 80% of revenue from their retail segment selling alcohol where there is prolonged demand weakness. Their hotel business presents increased regulatory risks. Overall sentiment for the company is bearish.

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