Do you have room in your investment portfolio for some new additions? If you do, then it could be worth hearing what Baker Young is recommending, courtesy of The Bull.
Listed below are two ASX shares that it rates as a buy and one that it thinks investors should hold. Here's what you need to know:
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Woodside Energy Group Ltd (ASX: WDS)
Baker Young thinks that energy giant Woodside is being undervalued at current levels. It highlights that the ASX share trades at a significant discount to its valuation with a generous forecast dividend yield. As a result, it thinks this could be an attractive entry point for investors. It explains:
Woodside remains Australia's leading oil and gas producer with quality assets and strong growth options. Production of 99.2 million barrels of oil equivalent in the first half of fiscal year 2025 was up 11 per cent on the prior corresponding period. Operating revenue rose 10 per cent year-on-year to $6.590 billion. Softening crude oil prices should curb global investment, and support LNG prices into the next decade. Certainty on the long term future of the North West Shelf leaves the company trading at a significant discount to our valuation. Recently trading on a dividend yield above 7 per cent also provides an appealing entry level.
Orica Ltd (ASX: ORI)
Another ASX share that gets the thumbs up from Baker Young is commercial explosives company Orica.
Its analysts think now could be a good time to invest. Especially given an encouraging trading update, a sky-high gold price, and a potential rebound in coal markets. The latter two bode well for demand for its products. It explains:
The world's largest commercial explosives manufacturer recently delivered an encouraging business update. It revealed continuing strong demand amid increasing penetration of its digital solutions business. This should help drive higher revenue and earnings growth in full year 2025. Given record gold prices and growing potential for a rebound in coal, we see demand for Orica's products from key mining customers well supported into 2026. A strong balance sheet and profit growth should underpin share price upside and leave scope to increase capital returns beyond its dividend yield and $400 million share buy-back program.
CSL Ltd (ASX: CSL)
Finally, while the broker feels that the weakness in the CSL share price this year has been an overreaction, it isn't enough for it to issue a buy rating.
Baker Young currently rates the biotech giant as a hold due partly to the uncertainty caused by the restructuring and unexpected demerger of its CSL Seqirus vaccines business. It said:
We view the pronounced decline in CSL's share price following the release of full year 2025 results in August as an over-reaction. The scale of restructuring costs was a surprise, and we expect more selective contracting will reduce revenue in coming years. However, improving margins will likely support underlying earnings growth. We believe uncertainty created by the unexpected demerger of its influenza vaccines business added to the share price decline. However, a simplified business will enable CSL to focus on its core strengths in blood plasma.
