Looking for some new portfolio additions in February? If you are, then let's see what analysts are saying about the popular ASX shares named below.
Are they buys, holds, or sells? Here's what you need to know about them:
BHP Group Ltd (ASX: BHP)
This mining giant's shares have been on fire in 2026. Unfortunately, the team at Morgans thinks they have now peaked and that investors should wait for a better entry point.
In response to BHP's quarterly update, the broker has put a hold rating and $47.90 price target on the Big Australian's shares. It said:
A sound 2Q26 result operationally, with WAIO setting a H1 production record and BHP upgrading guidance at both Escondida and Antamina. The offsetting negative was the separate update on the Jansen Stage 1 potash project, seeing a further budget upgrade to US$8.4bn and leaving concern around possible changes to Jansen Stage 2.
We have applied upgraded metal price forecasts, driving the upgrade in our target price but not transforming the value proposition, with BHP still appearing fair value. In our sector investment strategy we view BHP as a core holding on earnings and portfolio quality grounds as well as dividend profile, we maintain our Hold rating.
DroneShield Ltd (ASX: DRO)
This counter-drone technology company's shares have pulled back recently and Bell Potter thinks a buying opportunity has opened up. Especially given how 2026 could be a very big year for the company.
Bell Potter has put a buy rating and $5.00 price target on DroneShield's shares. It said:
We believe DRO has a market leading RF detect/defeat C-UAS offering and a strengthening competitive advantage owing to its years of battlefield experience and large and focused R&D team. We expect 2026 will be an inflection point for the global C-UAS industry with countries poised to unleash a wave of spending on RF detect and defeat solutions.
Consequently, we believe DRO should see material contracts flowing from its $2.1b potential sales pipeline over the next 3-6 months as defence budgets roll over to FY26e. At 47x CY26e EV / EBITDA, DRO trades at a 28% discount to the global drone peer group. Further, we see upside risk to our revenue forecasts in CY26/27e, given the opportunities observed in the C-UAS industry
Santos Ltd (ASX: STO)
The team at Morgans has also been looking at energy giant Santos. Although it delivered a fourth quarter update largely in line with expectations, the broker hasn't seen enough to justify a higher valuation.
Morgans has put a hold rating and $6.60 price target on Santos' shares. It said:
STO posted a largely in line 4Q25 production and revenue result, although updates on its two key growth projects did flag some incremental negatives. Barossa ramp-up is dealing with an expected ~2-month delay vs planned. Pikka Phase 1 saw a ~US$200m upgrade in capex budget on a combination of cost pressures.
Hiccups aside STO has done a good job executing, with Barossa and Pikka startups set to help the cash flow equation. Trading closed at a modest discount to our A$6.60 Target Price and we maintain our Hold rating.
