The team at Ord Minnett has been busy running the rule over a number of big-name ASX 200 shares recently.
Does the broker rate them as buys, holds, or sells? Let's see what it is saying:
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CSL Ltd (ASX: CSL)
Ord Minnett continues to rate CSL shares as a hold with a $117.00 price target. This is largely in line with its current share price of $116.32.
The broker believes the market is underestimating the challenges that its CSL Vifor business is facing and is expecting earnings below consensus estimates. It explains:
Ord Minnett has reviewed its CSL (CSL) model further with a focus on its Vifor nephrology business that is facing challenges which, in our view, are being underestimated by the broader market. Our estimates for Vifor revenue and operating profit in FY27 are below consensus estimates by 15% and 32%, respectively, while our forecasts for operating profit across the FY27–FY29 horizon are more than 10% below market expectations.
Our target price on CSL is unchanged at $117.00 post this latest review. Despite the apparent significant upside [previously] on offer, Ord Minnett maintains its Hold recommendation on the stock given the significant uncertainty around the earnings outlook and broader issues as management attempts to reset the business.
Steadfast Group Ltd (ASX: SDF)
Takeover target Steadfast has been given a hold rating and $6.00 price target by Ord Minnett. This compares to its current share price of $5.15.
It notes that the insurance broker recently received a takeover bid of $6.00 per share from a consortium led by American wholesale insurance distributor Amwins. Ord Minnett believes that this may be the best the shareholders get. It said:
Absent the current bid, the chances of realising a value for the company of $6.00 a share any time soon would appear remote, even if that price is towards the bottom end of its historical trading range. We make no changes to our EPS estimates but raise our target price to $6.00 from $5.55 and lower our recommendation to Hold from Buy.
Wesfarmers Ltd (ASX: WES)
Finally, Ord Minnett has also put a hold rating on Wesfarmers shares with a price target of $75.00. This is below its current share price of $85.76.
It was pleased with its strategy day presentation, but believes its shares are fully valued based on a sum of the parts valuation. It commented:
Wesfarmers (WES) delivered a well-received presentation at its strategy day where the retail and industrial conglomerate laid out how plans to exploit AI and leverage its data to accelerate its long-term sales and earnings growth at its key Bunnings, Kmart, and Officeworks businesses.
Post the strategy day, we have made minor changes to our EPS estimates to incorporate Officeworks transformation costs, a lower contracted price and reduced spodumene concentrate price for the Covalent lithium arm, and currency impacts. Overall, this drives reductions in our EPS forecasts of 0.2%, 1.2% and 0.8% over FY26, FY27 and FY28, respectively. We raise our sum-of-the-parts (SOTP)-derived target price on Wesfarmers to $75.00 from $70.00 to factor in higher earnings multiples but reiterate our Hold recommendation on valuation grounds.
