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

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

| More on:
Business people discussing project on digital tablet.

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

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.

More on Broker Notes

man with dog on his lap looking at his phone in his home.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Two workers at an oil rig discuss operations.
Broker Notes

Should you buy Santos, Beach Energy or Woodside shares? Here's Macquarie's top pick

Macquarie has released its new share price expectations for Santos, Beach Energy and Woodside shares.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

person holding hat
Broker Notes

3 ASX 200 large-cap shares just re-rated by analysts

We reveal the latest views on an ASX 200 large-cap miner, retailer, and consumer staples leader.

Read more »

A young man goes over his finances and investment portfolio at home.
Broker Notes

Down 80% in 2025: Is it time to buy this beaten down ASX stock?

Let's see what Bell Potter is saying about this stock after its heavy decline.

Read more »

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Broker Notes

NextDC shares jump 11% on major OpenAI deal

This data centre operator will be home to the AI giant in Australia.

Read more »

A large clear wine glass on the left of the image filled with fifty dollar notes on a timber table with a wine cellar or cabinet with bottles in the background.
Broker Notes

Macquarie names 3 top dividend-paying ASX 200 shares to buy today

Macquarie expects these three dividend paying ASX 200 shares to outperform in 2026. Let’s see why.

Read more »

Confident male executive dressed in a dark blue suit leans against a doorway with his arms crossed in the corporate office
Broker Notes

Broker reveals ratings on 4 ASX 200 sector leaders

Prefer ASX 200 large-cap stocks? Here are some new ratings and price targets for four sector leaders.

Read more »