Buy, hold, sell: Breville, CBA, Ramelius shares

Are analysts bullish or bearish on these names?

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A female broker in a red jacket whispers in the ear of a man who has a surprised look on his face as she explains which two ASX 200 shares should do well in today's volatile climate

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Key points

  • Breville Group's recent share price dip presents a buying opportunity according to Morgans, largely due to its premium market position and innovations in the coffee sector, contrasting with its peers facing market pressures.
  • Morgans advises selling Commonwealth Bank shares, citing concerns about cost growth outpacing revenue, leading to subpar profit growth, and suggesting the stock is overpriced given its current earnings potential.
  • With a positive outlook on Ramelius Resources, Morgans supports a buy rating, buoyed by the Spartan Resources acquisition and strong production forecasts, predicting significant free cash flow in coming years.

There are lots of ASX blue chip shares to choose from on the Australian share market.

But which ones could be buys, holds, or sells?

To narrow things down, let's look at what analysts at Morgans are saying about three popular options. Here's what you need to know about them:

Breville Group Ltd (ASX: BRG)

Morgans thinks that recent share price weakness has created a buying opportunity for investors.

So much so, this week the broker has upgraded this appliance manufacturer's shares to a buy rating with a $36.05 price target.

Its analysts believe the selloff has been unnecessary and expects Breville to perform positively thanks to its strong market position and exposure to the coffee market. It explains:

BRG's share price has retreated ~16% following the FY25 result, which we attribute to expectations of muted earnings growth in FY26 as the group navigates tariff-related margin pressure and an uncertain consumer discretionary backdrop. We view this weakness is more warranted for mass-market exposed peers such as Groupe SEB (SK-FRA) and Newell Brands (NWL-US), which have delivered softer updates amid consumer demand pressure (~30% share price decline). However, we believe BRG's premium positioning, strong focus on new product innovation, and leverage to the coffee category position it to better withstand these pressures.

We are encouraged by recent positive updates from peers who share key attributes with BRG, including strong new product innovation and geographic expansion (SharkNinja; SN-US), premium brand positioning (KitchenAid / Whirlpool; WHR-US) and growing coffee category exposure (both). We view recent weakness in BRG as an opportunity to build a position in a high-quality, well-managed business, with structural coffee tailwinds. Upgrade to BUY.

Commonwealth Bank of Australia (ASX: CBA)

Another ASX 200 share that Morgans has been looking at is Australia's largest bank, CBA.

It wasn't overly impressed with the big four bank's quarterly update this week, highlighting that its cost growth is outpacing its revenue growth.

In response, the broker has put a sell rating and $96.07 price target on its shares. It said:

Revenue growth was outpaced by cost growth and loan impairment charges. The net result was c.1% profit growth, which is less than the 1.7% benefit from 1.5 additional days in the period (and that was with the benefit of seasonally low IT vendor spend which continues to rise). While the market wasn't expecting much earnings growth (c.2% for 1H26, and we were more bullish than consensus), growth was weaker than these expectations. The market's response to a mild earnings miss for a stock priced for perpetual perfection was today's sharp share price decline.

WBC seemed to be a beneficiary. We've downgraded FY26-28F EPS and DPS by c.3%. Lower earnings also reduces terminal ROTE and sustainable growth in our DCF valuation. DCF-based target price declines to $96.07/sh. We remain SELL rated on CBA, recommending clients aggressively reduce overweight positions given the risk of poor future investment returns arising from the even-now overvalued share price and low-to-mid single digit EPS/DPS growth outlook.

Ramelius Resources Ltd (ASX: RMS)

Morgans is feeling positive about this gold miner following the release of its recent updates.

It has put a buy rating and $4.50 price target on its shares. It is feeling positive about its outlook thanks partly to the $2.4 billion acquisition of Spartan Resources. It said:

Production and AISC were in line with MorgansF, however unit costs were ~10% above consensus, representing a modest miss. FY26 guidance of 195koz at AISC A$1,800/oz (midpoints) was provided. Production guidance ~14% below MorgansF but in line with consensus, while unit cost guidance represents a modest beat versus both MorgansF (-4%) and consensus (-3%).

We continue to see upside to the production profile supported by potential grade displacement at Cue as sequencing advances. Unsurprisingly, the SPR integration study outlined an impressive set of production and financial metrics. RMS forecasts ~525koz Au per annum at an AISC of A$1,975/oz from FY30 onwards, supporting upwards +A$1bn of FCF p.a. We have adjusted our forecasts to become more aligned with the growth plan.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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