Buy, hold, sell: DroneShield, Macquarie, and Wesfarmers shares

What do analysts think of these popular shares?

Key points
  • DroneShield, while showing promise with a big sales pipeline and new contracts, faces governance concerns that suggest keeping a cautious hold on its shares for now.
  • Macquarie Group, despite experiencing a softer profit phase, is advancing strategic acquisitions and maintaining resilient core earnings, making it a buy according to analysts.
  • Wesfarmers, known for its strong brands like Bunnings and Kmart, presents a mixed picture with solid profits but ongoing cost pressures, warranting a hold rating from analysts.

With so many ASX shares out there to choose from, it can be hard to decide which ones to buy over others.

To narrow things down, let's take a look at three popular shares and see if analysts think they are buys, holds, or sells this week, courtesy of The Bull. Here's what they are saying about them:

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Image source: Getty Images

DroneShield Ltd (ASX: DRO)

Bell Potter's Christopher Watt has labelled counter drone technology company DroneShield as a hold this week. Though, it is worth noting that Bell Potter itself has a buy rating on its shares.

Watt notes that there are governance concerns that could weigh on sentiment in the near term. He said:

The company provides artificial intelligence based platforms for protection against advanced threats, such as drones and autonomous systems. It recently secured another major international contract and boasts a growing sales pipeline in excess of $2.5 billion. However, while the business fundamentals are sound, investor sentiment has been clouded by governance concerns, including recent DRO share sales by directors and scrutiny over disclosure practices. These issues may create short term headwinds, but we believe the company remains structurally well positioned in the fast evolving counter drone and electronic warfare space.

Macquarie Group Ltd (ASX: MQG)

The team at Shaw & Partners thinks that investment bank Macquarie could be a buy this week.

While it acknowledges that it is going through a softer profit phase, it likes the resilience of its earnings. It explains:

This diversified financial services group is actively advancing strategic plays. The company's asset management division has lodged a $11.6 billion takeover bid for Qube Holdings, a provider of integrated import and export logistics, at $5.20 a share. MQG recently sold its United States and European public asset management business to Nomura, a financial services group. MQG has increased its interim dividend and extended its buy-back program. Despite a softer profit phase, core earnings remain resilient, reinforcing our buy recommendation.

Wesfarmers Ltd (ASX: WES)

Finally, Shaw & Partners rates this conglomerate as a hold. While there is a lot to like about the Bunnings and Kmart owner, it has concerns about cost pressures in its retail and industrial divisions. It said:

This industrial conglomerate has a strong portfolio of businesses. Several brands include hardware giant Bunnings Group, Kmart Group, Officeworks and Wesfarmers Health. Net profit after tax of $2.926 billion in fiscal year 2025 was up 14.4 per cent on the prior corresponding period. The company also declared a special dividend, reflecting strong capital management and profits. However, it cautioned investors on continuing cost pressures across its retail and industrial divisions. Given income strengths balanced by margin risks, we retain a hold recommendation.

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 DroneShield, Macquarie Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Wesfarmers. 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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