The team at Bell Potter has been busy this week assessing options for Aussie investors.
Three ASX shares that have fared well and are being recommended by the broker to its clients are named below.
Here's why the broker is bullish on these names:
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Dexus Convenience Retail REIT (ASX: DXC)
Bell Potter believes that Dexus Convenience Retail REIT offers a compelling mix of defensive income and valuation support.
The broker highlights DXC's high-quality portfolio of service stations and convenience retail assets, leased to long-term, non-discretionary tenants. This includes tenants such as 7-Eleven, Ampol (ASX: ALD), and Chevron. This provides stable cash flows and resilience through the cycle.
Importantly, Bell Potter sees scope for valuation upside as capitalisation rates stabilise. It said:
Petrol stations are typically a low volatility asset class given long term leases with strong covenants, however higher debt base rates are likely to see cap rate expansion ahead. Asset valuations however at a 6.3% portfolio cap rate do not look demanding to us vs. industry transactions and peer REITs.
Bell Potter has a buy rating and price target of $3.25 on Dexus Convenience Retail REIT's shares. Based on its current share price of $2.82, this implies upside of more than 15%. That's before factoring in a forecast dividend yield of around 7.5%.
Orica Ltd (ASX: ORI)
Orica is an ASX share to buy this week according to Bell Potter.
The broker points to strong structural tailwinds driven by increased production of iron ore, copper, and gold, which should underpin long-term demand for blasting services. It notes that Orica's scale, global footprint, and pricing discipline position it well to benefit from this trend. The broker said:
We expect EBIT growth momentum to be sustained in the short-to-medium term underpinned by cyclical tailwinds in mining and exploration markets. EBIT growth is expected to be supported by further premium product uptake, robust facility performance across AN and sodium cyanide supply networks and commercial discipline.
Bell Potter has put a buy rating and $28.50 price target on Orica shares. Based on its current share price of $25.38, this implies potential upside of 12% for investors.
Sonic Healthcare Ltd (ASX: SHL)
Finally, Bell Potter believes Sonic Healthcare offers an appealing combination of income and share price upside.
The broker expects Sonic to return to double-digit earnings growth in FY 2026, driven largely by acquisitions, particularly in pathology, and steady demand across its diagnostics businesses. While cost control and execution remain key risks, Bell Potter believes much of this is already reflected in the share price. It said:
While SHL has outperformed the XHJ, it has materially underperformed the broader market, reflecting concerns with growth and cost control. If the new CEO can impress investors with financial performance and strategy, we believe upside remains in SHL.
Bell Potter has a buy rating and $28.50 price target on Sonic Healthcare's shares. Based on its current share price of $21.82, this suggests that upside of 30% is possible. In addition, the broker is forecasting a dividend yield of approximately 5% in FY 2026.
