Buy, hold, sell: APA Group, Macquarie, and Rio Tinto shares

Are these shares buys, holds, or sells? Let's find out.

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Key points

  • APA Group is seen as a buy by Shaw and Partners, appreciated for its defensive earnings, stable cash flows, and appealing dividend yield, making it a solid pick for income-focused investors in uncertain times.
  • Macquarie Group is rated a hold, praised for its innovative financial services and global exposure, though current market volatilities keep it from receiving a stronger recommendation.
  • Shaw and Partners suggest selling Rio Tinto to capture gains, favouring BHP for its broader resource scope and robust long-term prospects amidst current stock level highs.

There are a lot of options for investors to choose from on the ASX 200 index.

To narrow things down, let's take a look at three ASX 200 shares that analysts at Shaw and Partners have been running the rule over this week, courtesy of The Bull. Here's what the broker is saying about them:

APA Group (ASX: APA)

This energy infrastructure company could be an ASX 200 share to buy according to Shaw and Partners.

It likes the company due to its defensive earnings and attractive dividend yield. The broker feels this could make them good picks for income investors in an uncertain economic environment. It said:

APA is an energy infrastructure business. It has a portfolio of more than $27 billion in gas, electricity and renewable assets. APA offers stable earnings through essential infrastructure assets, providing resilience in challenging market conditions. Its regulated assets and long term contracts deliver predictable cash flows, reducing volatility. With an attractive dividend yield and defensive positioning, APA is well suited for income focused investors seeking security and limited downside risk in an uncertain economic environment. The share price has been enjoying favourable momentum since February.

Macquarie Group Ltd (ASX: MQG)

This investment bank has been rated as a hold by Shaw and Partners. While it is a fan of Macquarie due to its growth and resilience, it isn't enough for a better recommendation. It said:

This financial services company remains a strong long term investment with a proven track record and diversified global exposure. While more volatile than traditional banks, its innovative approach and consistent performance justify retaining current holdings. For investors seeking growth with resilience, MQG continues to deliver value despite short term market fluctuations.

Rio Tinto Ltd (ASX: RIO)

Shaw and Partners is recommending that investors lock in their gains and has put a sell rating on Rio Tinto's shares. Its analysts prefer rival BHP Group Ltd (ASX: BHP).  They said:

This global miner is heavily exposed to iron ore, and the stock is currently trading near elevated levels, in our view. With limited diversification compared to peers, we prefer BHP Group for broader resource exposure and stronger long term positioning. Locking in gains and reallocating to more diversified options makes sense in the current environment. The shares have risen from a closing price of $107.13 on June 30 to trade at $131.70 on November 13.

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie Group. The Motley Fool Australia has recommended BHP 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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