Which of these 3 ASX stocks does Ord Minnett prefer?

Which of these ASX stocks does Ord Minnett prefer?

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Key points

  • Ord Minnett sees strong upside for BRE, driven by a strategic partnership with Carester and rising demand for rare earths.
  • Transurban is aiming to keep cost growth below inflation and expects savings from restructuring. Ord Minnett upgraded its traffic forecasts and raised its price target slightly. 
  • Despite a positive long-term outlook, Ord Minnett downgraded margin forecasts for GMG’s data centre projects.

Broker Ord Minnett released reports on three ASX stocks yesterday. 

All three companies come with mostly positive views from the broker. 

Lets see what upside it's anticipating. 

Brazilian Rare Earths Ltd (ASX: BRE)

Brazilian Rare Earths has been one of the many rare earths ASX materials stocks enjoying a bull run in 2025. 

The company focuses on the exploration of rare earth elements and other critical minerals in Brazil. Its stock price has raced almost 150% higher since January. 

Ord Minnett reported yesterday the announcement of a strategic partnership between Brazilian Rare Earths and French rare earth experts Carester. It includes technical assistance on building a rare earth refinery and a binding 10-year offtake agreement for heavy rare earth concentrate.

Its shares have climbed 145% since 20 August but we expect there is much more to come as it progresses plans to monetise its rare earth discoveries and bauxite resources.

Ord Minnett has a price target of $6.30 and a speculative buy recommendation on this ASX stock. 

From yesterday's closing price of $5.69, that indicates an upside of 10.72%. 

Transurban Group (ASX: TCL)

Transurban Group is one of the world's largest toll-road operators, managing and developing urban toll-road networks in Australia and North America. 

Ord Minnett reported yesterday that Transurban is aiming for growth in underlying operating costs to be kept below the inflation rate. 

Ord Minnett has incorporated savings of more than $50 million into our model from the management restructure and technology rationalisation to arrive at our FY26 estimate of a 1% increase.

Post the quarterly update, the broker said it modestly upgraded its traffic forecasts. 

The broker has upgraded its price target from $14.50 to $14.60 and maintained its accumulate rating. 

This indicates this ASX stock is trading close to fair value, closing yesterday at $14.85. 

Goodman Group (ASX: GMG)

Goodman Group is the largest real estate investment trust (REIT) in Australia. 

The broker said it has reviewed its Goodman (GMG) model and concluded that some greater conservatism on margins in its booming data centre business is justified. 

As a result, we have downgraded our forecast margin on cost for Goodman's project pipeline to 50% from 60% previously.

Despite this, the broker seems to have a positive long term view, but its current valuation results in a hold recommendation. 

Ord Minnett has an updated price target of $33.70 on this ASX stock. 

It is currently trading at approximately $33.92. 

Motley Fool contributor Aaron Bell 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 Goodman Group and Transurban Group. The Motley Fool Australia has recommended Goodman Group. 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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