Buy, hold, sell: BHP, CSL, and Woodside shares

Let's see if Morgans thinks these giants are in the buy zone.

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Key points

  • BHP's current share price strength has been noted, as has its solid operational performance and a strong copper division.
  • Morgans notes that CSL has a positive earnings growth outlook, supported by restructuring and cost reductions.
  • Woodside Energy is noted for its solid financials, and could offer an attractive entry amid potential short-term oil price fluctuations.

If you have been considering a few additions to your portfolio this month, there's a high probability that one of the ASX shares named below has been on your watchlist.

So, let's see what the team at Morgans thinks about these blue chips at current levels. Here's what it is recommending:

BHP Group Ltd (ASX: BHP)

Morgans likes BHP but doesn't see enough value in the mining giant's shares at present to recommend them as a buy.

In response to its FY 2025 results last month, the broker downgraded them to a hold rating with a $43.90 price target. This is just a touch higher than where its shares currently trade. Morgans commented:

A result supported by solid underlying operational and cost performances, but several key markers are at multi-year lows. Final dividend of US60cps (vs MorgansF 53cps), supported by strong 2H FCF. Target net debt range increased to US$10-$20bn (from US$5-$15bn), a softening in capital discipline. Copper division shines with robust production and strong by-product credits. Post recent share price strength we lower our rating to HOLD (from ACCUMULATE), with an unchanged A$43.90 target price.

CSL Ltd (ASX: CSL)

The broker sees a lot of value in this beaten down biotechnology stock. It remains very positive on CSL's outlook and continues to forecast double-digit earnings growth over the medium term.

As a result, the broker has put a buy rating and $293.83 price target on its shares. This implies potential upside of over 50% from current levels. Commenting on its buy recommendation, the broker said:

As widely anticipated, CSL flagged a restructuring, streamlining R&D and commercial productivity, targeting US$500m pre-tax savings by YE28, but surprised with Seqirus demerger and multi-year share buyback (US$500m FY26). While investors have taken a glass half full approach, we believe the restructuring augments, not masks the underlying business, with streamlining operations and cost savings supporting double-digit earnings growth over the medium term. We adjust FY26-27 forecasts modestly, with our PT decreasing to A$293.83. BUY.

Woodside Energy Group Ltd (ASX: WDS)

Finally, this ASX energy stock isn't quite a buy, but is close. A recent note reveals that Morgans has an accumulate rating and $29.60 price target on its shares. This suggests that upside of over 25% is possible between now and this time next year.

Its analysts see an attractive entry point opening up for investors. They said:

Strong where it counts, management was clear on its confidence in its: 1) balance sheet, 2) LALNG selldowns (still targeting ~50%), and 3) restoration provisions. EBITDAX of US$4.69bn was healthy at -2% YoY and in line with estimates, with margin remaining at a robust 71%. ~US$2bn blowout in actual capex cash outflows in H1 saw net debt climb to US$8.7bn, materially above estimates. We maintain an ACCUMULATE rating on WDS, any short-term oil price volatility could yield an attractive entry.

Motley Fool contributor James Mickleboro has positions in CSL and Woodside Energy Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended BHP Group and CSL. 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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