Experts tip 2 ASX 200 financial shares to sell and 1 to buy

As earnings season winds down, experts reveal their ratings on 3 financial stocks.

| More on:
Man sits at computer and analyses stock graphic

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX 200 financial shares closed higher on Wednesday, with the S&P/ASX 200 Financials Index (ASX: XFJ) increasing 0.54%.

By comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) lifted 0.28%.

As earnings season winds down, experts have revealed their ratings on three ASX 200 financial stocks.

Let's take a look.

Expert ratings on 3 ASX 200 financial shares

Westpac Banking Corporation Ltd (ASX: WBC

This ASX 200 bank share closed the session yesterday at $38.50, up 0.52% for the day and up 22% over the past six months. 

On The Bull this week, Peter Day from Sequoia Wealth Management revealed a sell rating on Westpac shares. 

Day summarised Westpac's latest financial report: 

The bank reported an unaudited statutory net profit of $1.9 billion in the third quarter of fiscal year 2025, up 14 per cent on the first half average.

The result was about 12 per cent to 14 per cent ahead of consensus estimates.

Revenue was up 4 per cent.

Net interest income increased 4 per cent, mostly due to an increase in the net interest margin to 1.99 per cent.

Treasury and Markets contributed 14 basis points, up from 12 basis points.

Day said Westpac's report was well received by the market.

However, he cautioned against assuming that revenue momentum would continue into the next quarter.

After a 22% gain in six months, Day says: "Investors may want to consider pocketing some gains." 

Pinnacle Investment Management Group (ASX: PNI)

Shares in this ASX 200 investment management firm rose 2.59% to $21.80 apiece on Wednesday. 

This ASX 200 financial share has lost 5.5% of its value over the past six months. 

Stuart Bromley from Medallion Financial Group has a buy rating on Pinnacle Investment Management Group shares. 

Bromley reviewed the key points of Pinnacle's recent report:  

The company announced that 91 per cent of affiliate strategies outperformed respective benchmarks over five years to June 30, 2025.

Pinnacle posted net profit after tax of $134.4 million in fiscal year 2025, up 49 per cent on the prior corresponding period.

Funds under management for aggregate affiliates was up 63 per cent in fiscal year 2025, supporting its medium to long term earnings outlook.

Bromley summed up that recent success "reinforces confidence in management's ability to execute on planned growth initiatives".

Commonwealth Bank of Australia (ASX: CBA)

Bromley also revealed a sell rating on CBA shares this week.

The CBA share price finished 0.44% higher at $169.83 yesterday. The ASX 200's largest financial share is up 9% over the past six months. 

The analyst commented on CBA's share price weakness since June and some potential headwinds ahead. 

Bromley said:

The shares have fallen from $191.40 on June 25 to trade at $173.80 on August 21.

But we still view the business as overvalued, as it was recently trading on a price/earnings ratio above 28 times.

Falling interest rates typically compress net interest margins for banks. Rising costs are also expected to deliver headwinds.

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

More on Opinions

two people sit side by side on a rollercoaster ride with their hands raised in the air and happy smiles on their faces
Opinions

Up over 200% in 6 months: Are Pilbara Minerals shares still a buy?

How high can the lithium producer’s shares go?

Read more »

Two young boys sit at a desk wearing helmets with lightbulbs, indicating two ASX 200 shares that a broker has recommended as buys today
Opinions

The best stocks to invest $1,000 in right now

I'd be happy to pick up more of these winners right now.

Read more »

A woman sits on sofa pondering a question.
Opinions

Best ASX retail stock to buy right now: Wesfarmers or Woolworths?

Here's my pick between the two retail powerhouses.

Read more »

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Opinions

4 ASX shares I'd buy today with $10,000

I think these shares are set to soar.

Read more »

A man in his 30s with a clipped beard sits at his laptop on a desk with one finger to the side of his face and his chin resting on his thumb as he looks concerned while staring at his computer screen.
Opinions

Is it time to sell your Wesfarmers shares?

The stock crashed 15% in October.

Read more »

A woman looks nonplussed as she holds up a handful of Australian $50 notes.
Opinions

Westpac versus CBA shares: Which bank is a better buy for 2026?

Are you weighing up buying shares in these two banking giants?

Read more »

A woman sits on a chair smiling as she shops online.
Opinions

Down 30% this year. Are Block shares finally a buy?

Here's what's ahead for the company over the next 12 months.

Read more »

A trendy woman wearing sunglasses splashes cash notes from her hands.
Opinions

3 of the best ASX 200 shares to buy right now!

These stocks have strong long-term growth potential.

Read more »