S&P/ASX 200 Index (ASX: XJO) shares are 1.7% lower on Friday, and 10 of the 11 market sectors are in the red.
The world is waiting for Iran's response to a US proposal to end the war and re-open the Strait of Hormuz.
The Strait of Hormuz is a key shipping channel for Middle Eastern oil and gas, with about 20% of the world's supply transported through it.
For now, the Strait remains effectively closed for a tenth week amid fresh clashes between the US and Iran overnight.
Meanwhile, brokers have indicated continuing confidence in several ASX 200 shares by reaffirming their buy ratings this week.
Let's take a look.
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Zip Co Ltd (ASX: ZIP)
The Zip share price is $2.57, down 2.7% today.
Over the past 12 months, this ASX 200 financial share has risen 40%.
That sounds impressive, but it hides the fact that Zip shares have weakened 23% in the calendar year to date.
UBS remains confident that Zip shares will rebound.
The broker renewed its buy rating this week with a 12-month price target of $3.10.
This suggests a potential 20% upside ahead.
JB Hi-Fi Ltd (ASX: JBH)
The JB Hi-Fi share price is $73.87, down 0.8% today.
Over the past six months, this ASX 200 retail share has fallen 25%.
Morgans renewed its accumulate rating on JB Hi-Fi shares with a lowered target of $82.90 this week.
This suggests a potential 12% upside ahead.
Morgans said:
JBH provided a solid 3Q26 sales trading update, showing the ongoing resilience in demand for its product categories.
Management did caution going into one of the key trading periods (EOFY), that they were seeing supplier component costs increases, stock availability shortages and ongoing heightened competitive activity.
We see this as likely reflecting potential margin pressure in the 4Q.
Bellevue Gold Ltd (ASX: BGL)
The Bellevue Gold share price is $1.55, down 2.2% on Friday.
Over the past month, this ASX 200 gold mining share has fallen 17%.
UBS renewed its buy rating on Bellevue Gold shares this week.
The broker shaved its 12-month price target to $2, suggesting a 28% upside ahead.
CSL Ltd (ASX: CSL)
The CSL share price is $120.61, down 1.2%, after hitting a 9-year low of $119.61 today.
CSL shares have halved in value over the past 12 months.
UBS renewed its buy rating on CSL shares today with a reduced price target of $205.
This indicates a potential 68% upside ahead.
Flight Centre Travel Group Ltd (ASX: FLT)
The Flight Centre share price is $10.73, down 1.5% today.
This ASX 200 travel share is struggling in 2026, down 29% in the calendar year to date.
Morgans remains confident of a turnaround though.
The broker renewed its buy rating on Flight Centre shares this week.
However, it slashed its 12-month price target from $18.05 to $14.55.
This still suggests a potential 35% capital gain ahead.
Morgans said:
Surprisingly, FLT has maintained its FY26 earnings guidance. It noted that the conflict is creating near-term uncertainty and temporarily disrupting international travel patterns. It is having a more significant impact on Leisure (April profit was down ~A$10m on the pcp).
While the reiteration of guidance was better than feared, our concern is that following its key trading period (May-June), FLT will likely need to revise guidance as we expect leisure demand will remain weak.
If it wasn't for this conflict, FLT would have had a great year given its results for the first nine months were strong.
Polynovo Ltd (ASX: PNV)
The Polynovo share price is $1.01, down 2.7% today.
This ASX 200 healthcare share has lost almost a third of its valuation over the past 12 months.
Morgans maintained its buy rating on Polynovo shares this week.
The broker lowered its price target from $1.83 to $1.56, which still implies a great potential upside of 54%.
Morgans commented:
We have reviewed our FY26 and FY27 forecasts and conclude the company is set to deliver a strong 2H26 and continue that growth trajectory into FY27.
PNV is one of the most shorted stocks on the ASX. If PNV can demonstrate a growing profit profile the short position could be reduced materially.
Magellan Financial Group Ltd (ASX: MFG)
The Magellan share price is $8.92, down 1.8% today.
Over the past month, this ASX 200 financial share has fallen 10.5%.
Morgans renewed its buy rating on Magellan shares today.
The broker trimmed its 12-month price target from $11.99 to $11.19.
This suggests a potential 24% upside ahead.
Neuren Pharmaceuticals Ltd (ASX: NEU)
The Neuren Pharmaceuticals share price is $12.86, down 1.5% on Friday.
This ASX 200 healthcare share has fallen 32% in the calendar year to date.
However, Bell Potter is confident that the stock price will come back.
The broker renewed its buy rating today with a 12-month price target of $22.
This implies a near-70% capital gain ahead.
