Buy, hold, sell: NAB, PLS Group, Wesfarmers shares

Brokers have given their verdicts on these ASX shares.

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August was a rocky month for the S&P/ASX 200 Index (ASX: XJO). 

Some key ASX 200 players, including PLS Group Ltd (ASX: PLS) rebounded strongly throughout the month while others, such as National Australia Bank Ltd (ASX: NAB) and Wesfarmers Ltd (ASX: WES) came crashing down.

Let's recap how the shares have tracked over the past month, and whether brokers rate them a buy, sell or hold now.

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Image source: Getty Images

Hold NAB shares

August was a rough month for ASX bank shares, with many reversing much of their gains made earlier this year.

Key headwinds were concerns were higher-than-expected inflation data, renewed interest rate hike forecasts, falling mortgage demand, a weaker housing market, and tight competition squeezing margins.

NAB shares weren't immune from the downturn. The major bank's shares fell around 8% though the course of August and continued tumbling into September.

At the time of writing, NAB shares are $38.50 a piece, down around 9% for the year-to-date and nearly 10% lower than a year ago.

Brokers aren't too sure where the bank stock could go next. Market Index data shows the majority have a hold rating on NAB shares. And the $39.88 average target price implies a potential 4% upside over the next 12 months, at the time of writing.

Buy PLS shares

NAB may have had a difficult month, but PLS shares have travelled in the opposite direction.

The lithium stock flew over 32% in August, rebounding strongly from a low in late July. And they kept climbing higher in early September too. At the time of writing, PLS shares are trading at $5.48. That's a 27% increase year-to-date and a huge 126% hike from 12 months ago.

Investors have rushed to buy into the stock amid growing investor optimism that the lithium price recovery is improving, and this was rocketed higher again when the miner posted a strong FY26 result in mid-August.

PLS posted a 152% increase in revenue, a 59% increase in underlying EBITDA, and a swing into profit in NPAT (from a loss in the prior corresponding period).

The company has also announced a 5-cent-per-share, fully franked final dividend for FY26. This is great news for investors after PLS suspended its dividend payouts in 2024 amid crashing global lithium prices. 

It looks like the experts are also bullish that PLS shares could climb even higher. Market Index data shows the majority of brokers have a buy rating on the shares.

Although after the recent rally, the $5.47 average target price now implies a minor 0.2% upside at the time of writing.

Sell Wesfarmers shares

Wesfarmers shares were also pushed lower in August amid broad pressure on consumer and retail stocks, as well as concerns about inflation and interest rate increases.

The sell-off picked up pace after the conglomerate posted its FY26 results later in the month.

The company reported a 3.4% increase in revenue to $47.3 million and a 7.3% increase in EBIT. But statutory NPAT fell 1.8% to $2.8 million, including significant items, or was up 8.3% excluding them. 

Wesfarmers' result came in slightly ahead of the market's $47.1 billion forecasted revenue, and was in line with expectations for NPAT.

Going forward, Wesfarmers said it expects higher capital expenditure in FY27, of $1.3 to $1.5 billion. 

But investors were spooked, potentially because although the result was robust, it raises questions about how the business can continue growing in a weakening market.

Wesfarmers shares fell around 12% in August, and fell another 1.5% in the first day of trading in September, to $77.08 each. The shares are now down 6% for the year-to-date and are 15% lower than 12 months ago.

Brokers are bearish too. Market Index data shows the majority now have a strong sell rating on Wesfarmers shares. After the latest price crash, the $76.70 average target price now implies just 0.2% upside at the time of writing.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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