Should you buy GQG Partners or Greatland Resources as they join the ASX 200 today?

Let's see what the experts have to say.

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Key points

  • GQG Partners and Greatland Resources are among nine new entries to the S&P/ASX 200 Index, indicating growing market caps and attracting more ETFs to rebalance in their favour.
  • GQG Partners, trading at a 52-week low of $1.65, holds an outperform rating from Macquarie with a $2.63 price target, but another broker is more cautious 
  • Greatland Resources, quickly ascending to the ASX 200 after a June listing, also holds an outperform rating from Macquarie with a $7.10 price target

Asset manager, GQG Partners Ltd (ASX: GQG), and gold and copper miner, Greatland Resources Ltd (ASX: GGP) are among 9 ASX shares that officially entered the benchmark S&P/ASX 200 Index (ASX: XJO) today.

Other new entrants include counter-drone technology developer Droneshield Ltd (ASX: DRO) and teleco share Tuas Ltd (ASX: TUA).

The companies entered the ASX 200 prior to the opening of trade on Monday as part of the latest quarterly index rebalance.

Every three months, S&P Dow Jones Indices updates the composition of Australia's leading indices to ensure they reflect market caps.

As companies grow in size, they ascend into our major indices, starting with the S&P/ASX All Ords Index (ASX: XAO), which is the top 500 companies by market cap.

Gaining entry into the ASX 200 is certainly a good look, as it indicates a company is on the rise.

It also prompts a whole lot of extra buying support, as fund managers are forced to rebalance their index-tracking exchange-traded funds (ETFs) to align with the new composition of the ASX 200.

Here are the 9 shares joining the ASX 200 today.

ASX share
DroneShield Ltd (ASX: DRO)
IperionX Ltd (ASX: IPX)
Perenti Ltd (ASX: PRN)
Superloop Ltd (ASX: SLC)
Tuas Ltd (ASX: TUA)
Dalrymple Bay Infrastructure Ltd (ASX: DBI)
Greatland Resources Ltd (ASX: GGP)
Ebos Group Ltd (ASX: EBO)
GQG Partners Ltd (ASX: GQG)

Are GQG Partners shares a buy, hold, or sell?

Macquarie has an outperform rating on GQG Partners shares with a 12-month price target of $2.63.

Today, the GQG Partners share price fell to a new 52-week low of $1.65.

Macquarie maintained its outperform rating on the ASX 200 financial share following the company's 1H FY25 report last month.

Analyst Elizabeth Miliatis discussed the stock's "dependable dividends" in a note.

GQG Partners shares are trading on a very attractive annual trailing dividend yield of 13%.

Morgans is more cautious and has a hold rating on GQG Partners shares, with a similar price target of $2.65.

The broker said:

We maintain a HOLD recommendation, preferring to allow the current 'flows risk' period to reduce before taking a more positive stance.

What about Greatland Resources shares?

Greatland Resources shares were only listed on the ASX in June, so it's some feat to join the ASX 200 so quickly.

The company owns the Telfer gold and copper mine and the Havieron gold and copper development project in Western Australia.

Macquarie has an outperform rating on Greatland Resources shares with a 12-month price target of $7.10.

Today, the Greatland Resources share price is $6.95, up 8.8%.

Macquarie released a note following Greatland's FY25 earnings report last month.

The broker commented:

GGP reported FY25 underlying Ebitda of A$470m, stripping out integration costs, ASX listing costs and gains on financial assets, which was a ~9% (~A$49m) miss to MQe/VA.

The majority of the miss was driven by an A$39m noncash change in inventories charge related to stockpiles acquired as part of the Telfer acquisition.

D&A of A$40m was materially lower than both MQe/VA estimates, we suspect due to the Telfer (in production) allocated value likely being materially lower than Havieron's (not in production) allocated value at the time of acquisition.

The lower D&A saw Npat of A$337m beat our expectations by 43% and VA by 4%.

Greatland Resources is guiding FY26 production of 285 koz at an all-in sustaining cost (AISC) of US$2,600 per ounce.

The gold price is US$3,691 per ounce at the time of writing.

Mark Gardner from MPC Markets is also bullish on Greatland Resources shares.

Gardner recently commented on The Bull:

In its first seven months of operations in fiscal year 2025, the company generated $961.3 million in unaudited revenue from contract customers.

It reported an unaudited net profit after tax of $337.3 million.

The balance sheet is strong, with no debt at June 30.

The outlook is bright, and the company offers re-rate potential and material upside, in our view.

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 DroneShield. The Motley Fool Australia has recommended Gqg Partners. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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