If you are looking for exposure to the mining sector, then you are spoilt for choice on the Australian share market.
So, to narrow things down, let's look at three popular ASX mining shares and see if Morgans rates them as buys, holds, or sells. Here's what you need to know:
Image source: Getty Images
Newmont Corporation (ASX: NEM)
Morgans is bullish on this gold giant. In response to its quarterly update, which revealed an in-line result, the broker retained its buy rating with a $194.00 price target. This implies potential upside of almost 45% for investors from current levels. It said:
A broadly in-line result with small beats and misses across the board despite the Cadia disruption, with the qoq earnings decline driven by a lower realised gold price rather than operating performance. NEM's capital returns remain best in class among its gold peers, with US$1.9bn returned this quarter implying a capital return yield of around 7-8%. Maintain BUY with a A$194ps target price.
Rio Tinto Ltd (ASX: RIO)
The broker was pleased with Rio Tinto's half-year results, noting that it was a strong and clean one.
However, due to its current valuation, Morgans only has a hold rating and $159.00 price target on Rio Tinto's shares. It said:
RIO's 1H26 was a strong result and a clean one, but we expect it was management's talk of targeted US$5bn in H2 asset divestments (and resulting possible capital management) that drove RIO's outperformance on the day. Earnings were broadly close to estimates (EBITDA below / NPAT above), while operating cash flow of US$9,173m was 5.0% ahead of consensus, free cash flow rose 75% to US$3,834m, and net debt of US$14,061m came in below any market estimates. The interim dividend of US211cps (+43%) held the 50% payout.
RIO is executing well, the balance sheet is in better shape than we forecast, and the productivity gains are real. The problem is that none of this is a secret. RIO trades on 6.9x CY26 EV/EBITDA against BHP's 7.2x. We maintain HOLD with a slight trim to our target price to A$159.00 from A$163.00.
Santos Ltd (ASX: STO)
Morgans is also sitting on the fence with energy producer Santos. It notes that the company has downgraded its production guidance for FY 2026. In response, the broker has retained its hold rating with a trimmed price target of $7.90. It said:
STO's 2Q26 came with a FY26 production guidance cut to 99-105mmboe from 101-111mmboe and delivered sales revenue 10% below consensus. However, we believe a solid 2H uplift is likely, driven by Barossa and Pikka both ramping up. At A$7.68, STO is already close to fair value on our numbers.
Behind that sits the Federal east coast gas reservation process, on which STO is the most exposed gas producer in our coverage, a risk that is difficult to quantify and could easily escalate further in terms of implications for the gas industry. Maintain HOLD with A$7.90 target price (was A$8.30).
