To narrow things down, let's take a look at what Morgans is saying about three popular ASX 200 shares.

Does it rate them as buys, holds, or sells? Let's find out:

Collins Foods Ltd (ASX: CKF)

Morgans is feeling positive about this KFC-focused quick service restaurant operator ahead of its upcoming results.

While it has trimmed its estimates to reflect a number of items, this is partially offset by a stronger than expected performance in the Australian market.

As a result, it has retained its buy rating with a slightly reduced price target of $12.50. It said:

We revise our CKF forecasts ahead of the FY26 result in June, trimming underlying NPAT to reflect deferred store openings, reset German acquired store economics, and a lower EU SSS assumption to better capture the Netherlands-skewed mix for FY26, partially offset by a marginal AU SSS upgrade on sustained KFC Australia momentum. We maintain our BUY recommendation and reduce our price target to $12.50 (from $12.70).

Netwealth Group Ltd (ASX: NWL)

This investment platform provider delivered a third-quarter update that was slightly ahead of expectations.

And with the new quarter starting strongly for financial markets, Morgans appears to believe it could build on this.

This has seen the broker put an accumulate rating and $29.00 price target on Netwealth's shares. It commented:

NWL's 3Q26 net-flows of $3.96bn came in modestly ahead of expectations, however market volatility during the period eroded this solid performance to see 3Q26 FUA ending the quarter flat QoQ at A$125.8bn, (vs. Consensus A$129.8bn). Despite ongoing volatility and uncertainty tied to a US/Middle East conflict and a potential resolution, market momentum has recovered from peak pessimism in the March Quarter, with the ASX All Ordinaries +5.6% month-to-date in April'26, which will have seen FUA growth momentum improve post quarter end.

Looking through this near-term volatility NWL remains on track deliver solid growth FY26F and well placed to capitalised on the long runway of opportunity ahead. We retain our ACCUMULATE rating, with a Price target of $29.00/sh.

Pro Medicus Ltd (ASX: PME)

Finally, after adjusting its model for Pro Medicus to reflect more achievable growth estimates, the broker continues to see a lot of value in its shares.

The broker has retained its buy rating on Pro Medicus shares with a reduced price target of $210.00. It commented:

In this note, we deploy a new PME model where we have deliberately set a lower bar. Our remodelled estimates prioritise achievability over optimism, staging implementation revenue conservatively and mark FX to spot. We see this as the right framework for a stock where sentiment has been fragile.

On the business operations front, the story remains untarnished. Contract newsflow since February has been exceptional: ~$100m in wins and renewals, all at higher pricing, with cardiology upsell gaining traction. The demand story is not in question. We re-emphasise our positive long-term conviction on the name although lower our valuation to reflect current but potentially fleeting headwinds. Our target price is reduced to A$210 p/s and we retain our Buy recommendation.

The post Buy, hold, sell: Collins Foods, Netwealth, and Pro Medicus shares appeared first on The Motley Fool Australia.

Let's now see whether it is bullish, bearish, or something in between on the shares of Australia's three major listed players.

Here's what the broker is saying:

Collins Foods Ltd (ASX: CKF)

Bell Potter has initiated coverage on this KFC-focused quick service restaurant operator's shares with a buy rating and $10.80 price target.

The broker thinks that Collins Foods shares are the best value based on its forward multiples and its positive growth outlook. It explains:

We view CKF as the best-positioned QSR name due to its mix of 1) leading unit economics, 2) strong value offering at ~30% lower than its 2 key ASX-listed competitors (crucial in a consumer tightening cycle), and 3) exposure to diverse economies with a continued development pipeline in key markets, with BPe FY26e 7 new restaurants in Australia and 11 in Germany (vs. company ambition of Australia 7- 10 restaurants per annum and Germany 45-90 new restaurants over four years).

We note CKF is trading at a multiple (~14x FY27e) that we deem as cheap in comparison to its peers, when considering its recent positive SSSG and NPAT growth reiteration in March. Our confidence lies with management's strong track record of execution in domestic and international markets historically resulting in acquisitive and organic earnings growth.

Domino's Pizza Enterprises Ltd (ASX: DMP)

The broker has started with a hold rating and $18.00 price target on Domino's shares.

Although it acknowledges that its shares are trading on low multiples, it feels that this is justified based on its modest earnings growth outlook. It adds:

DMP is resetting its pricing strategy toward more profitable discounting, after a period of intense discounting to win back a customer that was lost due to previous aggressive price increases.

We note DMP is trading at a P/E multiple (~13x BPe FY27e) that we deem as appropriate in comparison to its peers, when considering our forecasted 3- year EPS CAGR of ~3%, (CKF ~11%, GYG ~53%) paired with ongoing risk within its Asia business, particularly given its overall contribution to network sales.

Guzman Y Gomez Ltd (ASX: GYG)

Bell Potter has initiated coverage on Guzman Y Gomez shares with a hold rating and $22.10 price target.

While the broker believes the burrito seller deserves a premium valuation, it is just a little too much at present to justify a buy rating. It explains:

Within Australia, GYG has the highest set of unit economics compared to CKF and DMP, due to a mix of premium menu pricing and a skew towards higher margin drive thru restaurants (~53% of total restaurant network). Moving forward, this is intended to be the strategy to boost profitability, with >85% of its 108 restaurant pipeline targeted at being drive thru format.

Since IPO, GYG has traded at ~37x trailing EV/EBITDA, a significant premium to its peers that we viewed as excessive and led by lofty expectations of US expansion. We do, however, still see a premium as warranted, underpinned by GYG's differentiated concept and growth profile that extends well beyond its domestic peers. On a forward looking basis, GYG now trades at ~24x BPe FY26e EBITDA, a level we view as still relatively elevated given future growth expectations are driven by the Australian segment.

The post Buy, hold, sell: Collins Foods, Domino's, and Guzman Y Gomez shares appeared first on The Motley Fool Australia.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here's why they are bullish on them:

Collins Foods Ltd (ASX: CKF)

According to a note out of Morgans, its analysts have retained their buy rating on this KFC-focused quick service restaurant operator's shares with a slightly reduced price target of $12.50. While the broker has trimmed its net profit forecast to reflect deferred store openings, reset German acquired store economics, and lower European same store sales assumptions, it remains very positive. This is partly due to the strong performance of the KFC Australia business and its attractive valuation. Morgans sees potential upside of over 40% for investors from current levels. The Collins Foods share price is trading at $8.56 on Monday.

NextDC Ltd (ASX: NXT)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating on this data centre operator's shares with a trimmed price target of $19.00. The broker believes the market is underappreciating the structural growth in areas like cloud computing, GPU demand, and artificial intelligence (AI). It believes this will drive significant growth for data centre capacity, which bodes well for NextDC. In fact, it estimates that the data centre market could grow as much as 27% per annum through to 2030, under its bull case scenario. In light of this, the broker believes NextDC shares could be worth buying at current levels. The NextDC share price is fetching $14.12 at the time of writing.

Pro Medicus Ltd (ASX: PME)

Another note out of Morgans reveals that its analysts have retained their buy rating on this health imaging technology company's shares with a reduced price target of $210.00. Morgans has been fine-tuning its financial model for Pro Medicus, which includes deliberately setting a lower bar. It notes that its remodelled estimates prioritise achievability over optimism, stage implementation revenue conservatively, and mark foreign exchange to spot. Morgans believes this is the right framework for a stock where sentiment has been fragile. That said, the broker believes Pro Medicus' story remains untarnished, highlighting that contract news flow since February has been exceptional. This includes ~$100 million in wins and renewals, all at higher pricing, with cardiology upsell gaining traction. The Pro Medicus share price is trading at $145.57 on Monday afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

Both ASX 200 companies have fallen significantly in 2026. 

In a note out of Morgans, the broker lowered its price target for both companies. 

Despite the target price reduction, the broker still sees more than 40% upside for both stocks.

Collins Foods Ltd (ASX: CKF)

Collins Foods is engaged in the operation, management, and administration of chain restaurants in Australia and Europe.

The company's recognisable brand names are KFC and Taco Bell. The majority of the company's revenue comes from KFC restaurants in Australia.

Year to date, its share price is down more than 17%.

In a note out of Morgans, the broker revised its forecasts ahead of the FY26 result in June. 

We revise our CKF forecasts ahead of the FY26 result in June, trimming underlying NPAT to reflect deferred store openings, reset German acquired store economics, and a lower EU SSS assumption to better capture the Netherlands-skewed mix for FY26, partially offset by a marginal AU SSS upgrade on sustained KFC Australia momentum.

The broker has retained its buy recommendation. 

However it has now reduced its price target to $12.50 (from $12.70).

From today's opening price of roughly $8.58, this price target still indicates an upside potential of 45%. 

Pro Medicus Ltd (ASX: PME)

Pro Medicus provides of medical imaging technology. The company is recognised as a leading supplier of radiology information systems (RIS), picture archiving and communication systems (PACS), and advanced visualisation solutions for medical practices and hospitals.

Pro Medicus shares have been amongst many healthcare stocks that have struggled in 2026. 

Its share price is down 33% year to date. 

In a note out of Morgans, the broker said it has deployed a new model and deliberately set a lower bar. 

Our remodelled estimates prioritise achievability over optimism, staging implementation revenue conservatively and mark FX to spot. We see this as the right framework for a stock where sentiment has been fragile. On the business operations front, the story remains untarnished.

Contract newsflow since February has been exceptional: ~$100m in wins and renewals, all at higher pricing, with cardiology upsell gaining traction. The demand story is not in question. We re-emphasise our positive long-term conviction on the name although lower our valuation to reflect current but potentially fleeting headwinds.

The broker has retained its buy recommendation on PME shares and reduced its price target to $210. 

From today's opening price of around $148.74, this new price target indicates an upside potential of 41%. 

The post Why did Morgans just lower its outlook on Collins Food and Pro Medicus shares? appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 300 Index (ASX: XKO) KFC fast food restaurant operator closed yesterday trading for $8.78. In early morning trade on Tuesday, shares are changing hands for $8.62 apiece, down 1.8%.

For some context, the ASX 300 is down 0.2% at this same time.

Here's what's happening.

Collins Food shares slide on Taco Bell divestment

Atop its KFC restaurants, the ASX 300 stock also operates 27 Taco Bell outlets in Australia.

But, as investors have been expecting, that era is coming to an end.

Collins Food shares are slipping today after the company announced it has entered into a legally binding conditional arrangement to transition 20 of its 27 Taco Bell restaurants to an affiliated company of Taco Bell (part of YUM! Brands) and Restaurant Brands Australia Holdings.

The two parties are expected to operate the Taco Bell business going forward under a new partnership arrangement. The deal also covers the restaurants' employees, if they choose to accept offers of employment from the new owners.

The seven remaining Taco Bell restaurants will be closed over the next few weeks.

Collins Foods expects to incur one-off costs of $1 million to $2 million related to the closure of these seven restaurants.

The sale won't offer a big cash boost for Collins Foods shares, with the company saying the purchase price comprises "a nominal amount" plus the value of stock and cash floats. The new owners will assume the lease liabilities for the 20 restaurants.

Following its Taco Bell divestment, however, Collins Foods said it can now focus on its core KFC brand. The ASX 300 stock has KFC outlets in Australia and Europe, with a particular growth focus in Germany.

What did management say?

Commenting on the divestment that's yet to lift Collins Foods shares today, CEO Xavier Simonet said:

Collins Foods is pleased to announce the transition of 20 Taco Bell restaurants to the brand owner, Taco Bell, and its local partner, subject to completion of the proposed transaction. This will enable Collins Foods to focus on our core KFC business in Australia and Europe, including accelerating profitable development in Germany.

Simonet added, "We are committed to ensuring a smooth transition and to supporting all our team, whether transitioning or otherwise, through this process."

Collins Food expects the sale to complete between June and August, depending on regulatory approval timelines and the purchasing parties finalising their terms.

With today's intraday slide factored in, Collins Foods shares remain up a slender 0.5% since this time last year, not including dividends.

The post KFC owner Collins Foods shares sliding on Taco Bell exit appeared first on The Motley Fool Australia.

To narrow things down, let's see what analysts are saying about the three in this article.

Are they buys, holds, or sells? Here's what the broker is recommending:

Breville Group Ltd (ASX: BRG)

Ord Minnett is very positive on this appliance manufacturer and is recommending it to clients. The broker recently upgraded its shares to a buy rating with a $37.20 price target.

It highlights that Breville is well-placed to benefit from a consolidation of vendors by Best Buy (NYSE: BBY) in the United States. It explains:

The consolidation of vendors by Best Buy is described by Breville management as a "material change" to the retail channel structure in the US. The brands chosen benefit from additional shelf space and a structural lock-in, while the brands that have been de-ranged lose access to more than 1,000 retail locations. This dynamic is also playing out across other Best Buy categories, not just small domestic appliances.

As a primary partner in Best Buy's consolidated vendor strategy, this should provide Breville with a significant competitive advantage in the giant US market. Following recent weakness in the Breville share price, we upgrade to Buy from Accumulate with an unchanged price target of $37.20.

Collins Foods Ltd (ASX: CKF)

The broker has also been looking at quick service restaurant operator Collins Foods.

It highlights that the company is expanding its footprint in Germany with an acquisition.

However, while it sees positives, it isn't enough for anything more than a hold rating with a $12.00 price target. It explains:

Collins noted same-store sales (SSS) growth in its dominant Australian division was 2.7% in FY26-to-date but had accelerated in the second half of FY26 to 3.2%. Post the trading update, Ord Minnet trimmed its FY26 EPS estimate by 0.7%, while our forecasts for FY27 and FY28 increased by 7.2% and 8.4%, respectively, which led us to raise our target price to $12.00 from $10.50.

There is value apparent in Collins, but the company needs to exhibit a sustained period of performance in the German market, which the company is touting as its next 'growth pillar', before we can become more constructive on the stock.

MA Financial Group Ltd (ASX: MAF)

Ord Minnett is feeling bullish about this global alternative asset manager and has named it as a buy with a $10.05 price target.

It highlights that the asset management business is experiencing strong momentum and believes it is well-placed to grow its assets under management. It commented:

‍Ord Minnett has resumed coverage of MA Financial with a Buy recommendation and a target price of $10.05. Its asset management business is seeing continuing momentum in net flows and the launch of new investment vehicles in FY25 leads us to expect strong growth in assets under management (AUM) in the near term.

Further, the residential lending business is hitting its straps and will deliver a more material profit contribution in FY26. We see an attractive value proposition in MA Financial, with the stock trading on a one-year forward price-to-earnings (P/E) multiple of 14.7x, along with a forecast EPS compound annual growth rate (CAGR) of 23% over the FY25–28 horizon.

The post Buy, hold, sell: Breville, Collins Foods, and MA Financial shares appeared first on The Motley Fool Australia.

Two that have fared well and been given buy ratings are listed below. Here's what the broker is recommending to clients:

Collins Foods Ltd (ASX: CKF)

This quick service restaurant operator could be worth considering according to Morgans.

It was pleased with the company's recent announcement of plans to make a bolt-on acquisition for its KFC business in Germany. Morgans described it as "sensible" and highlights that it is expected to be immediately accretive to earnings.

In response, the broker has upgraded this ASX dividend stock to a buy rating with a $12.70 price target. It said:

CKF has announced what we see as a high-quality German KFC bolt-on at attractive economics. CKF is acquiring an eight-restaurant Bavarian portfolio at just under 6x restaurant-level EBITDA (pre-AASB 16) and expects the deal to be immediately EPS accretive. The Germany runway has been extended through the German Development Agreement (DA) to 45-90 new restaurants (from 40-70), materially extending the organic growth runway.

We believe this was a sensible, returns-focused deal that adds weight to the Germany growth story; execution is still key, but with a refreshed team and strong operators at the helm, success in Germany should be the catalyst for a re-rate despite lingering Netherlands noise. We upgrade to a BUY with a $12.70 target (was $12.40).

As for income, Morgans is forecasting fully franked dividends of 29 cents per share in FY 2026 and then 35 cents per share in FY 2027. Based on its current share price of $9.79, this would mean dividend yields of 3% and 3.6%, respectively.

Jumbo Interactive Ltd (ASX: JIN)

Another ASX dividend stock that Morgans is recommending is online lottery ticket seller Jumbo Interactive.

It responded positively to the company's half-year results and put a buy rating and $14.90 price target on its shares. The broker said:

Jumbo Interactive (JIN) reported a solid 1H26 result, with most headline metrics pre-released. While Lottery Retailing was impacted by a softer jackpot cycle, offshore segments delivered encouraging growth and margin expansion. Managed Services continues to build momentum, with Canada EBITDA guidance upgraded and the UK tracking nicely. Underlying SaaS trends remain healthy ex-Lotterywest.

Following the update, we believe JIN can delever by FY27F, assuming a normalisation in Australian jackpot activity and continued offshore earnings growth. We have updated our model to reflect upgraded Managed Services and Prize Draw guidance, alongside refreshed FX assumptions. Our underlying EBITDA increases +1%/+5% across FY26-27F. We maintain our BUY recommendation with an unchanged $14.90 target price.

With respect to dividends, Morgans expects fully franked payouts of 28 cents per share in FY 2026 and then 38 cents per share in FY 2027. Based on its current share price of $7.71, this would mean dividend yields of 3.6% and 4.9%, respectively

The post 2 ASX dividend stocks Morgans rates as buys appeared first on The Motley Fool Australia.

That's because Morgans has just given its verdict on three popular ASX 200 shares.

Are they buys, holds, or sells? Let's find out what the broker is saying:

Collins Foods Ltd (ASX: CKF)

This KFC-focused quick service restaurant operator caught the eye of Morgans this month after announcing an attractive acquisition in Germany.

The broker believes the deal is sensible and could be the start of a re-rating for its shares. As a result, it has upgraded them to a buy rating with a $12.70 price target. It said:

CKF has announced what we see as a high-quality German KFC bolt-on at attractive economics. CKF is acquiring an eight-restaurant Bavarian portfolio at just under 6x restaurant-level EBITDA (pre-AASB 16) and expects the deal to be immediately EPS accretive. The Germany runway has been extended through the German Development Agreement (DA) to 45-90 new restaurants (from 40-70), materially extending the organic growth runway.

We believe this was a sensible, returns-focused deal that adds weight to the Germany growth story; execution is still key, but with a refreshed team and strong operators at the helm, success in Germany should be the catalyst for a re-rate despite lingering Netherlands noise. We upgrade to a BUY with a $12.70 target (was $12.40).

Liontown Ltd (ASX: LTR)

Lithium miner Liontown released its results last week and reported EBITDA and a loss that were ahead of expectations.

In addition, it was pleased to see that its balance sheet has been strengthened significantly.

As a result, it has upgraded Liontown shares to a hold rating with a $1.80 price target. It explains:

EBITDA and underlying NLAT beat MorgansF and consensus expectations, though earnings remain impacted by ramp-up costs. Kathleen Valley production continues to scale, the balance sheet has strengthened materially, and a brownfield expansion appears increasingly likely. We upgrade to a HOLD rating (from TRIM) with a A$1.80ps target price as we see the stock as trading at fair value.

Northern Star Resources Ltd (ASX: NST)

This gold miner disappointed Morgans with its second guidance downgrade of the financial year.

However, due to its attractive valuation, the broker has retained its buy rating on Northern Star's shares with a reduced price target of $30.00. It said:

NST has downgraded gold sales for the second time in FY26 and the third time since FY25, withdrawing full year guidance entirely, although indicate sales may exceed 1,500koz Au. The frequency, persistence and severity of operational issues across both KCGM and Yandal are concerning.

We have downgraded our forecasts for KCGM (FY26, FY27) and Yandal (FY26 and beyond) until operations demonstrate a period of stability. We downgrade our price target for NST to A$30.00ps (previously A$35.00ps). Our BUY rating is maintained, we note valuation strength is derived from the long-term growth profile rather than near-term earnings.

The post Buy, hold, sell: Collins Foods, Liontown, and Northern Star shares appeared first on The Motley Fool Australia.

Share price declines give us the chance to buy certain companies at much cheaper valuations. These are the same businesses as last year, but the market has decided they are worth less than they were.

When an expert calls a business a buy, that's interesting. When numerous analysts call a company a buy then that's a very compelling signal to investors.

Let's look at two well-liked ideas.

Collins Foods Ltd (ASX: CKF)

Collins Foods is a large operator of KFC restaurants in Australia and Europe.

According to the Commsec collation of analysts, there are currently 10 buy ratings on the ASX share. One of the brokers that rates the business as a buy is UBS, with a price target of $13.50.

Collins Foods recently gave a trading update and announced an acquisition.

UBS noted that the ASX share is buying eight KFC restaurants in Bavaria (centred around Munich) and this delivers a 50% increase to its German network.

Additionally, its German development plan has been expanded, with a target of between 45 to 90 greenfield (new) restaurants over the next four years, which is expected to add between 3% to 7% more earnings per share (EPS) than the previous growth target range.

In terms of the trading update, in the second half of FY26 to date, Collins Foods said that Australian total sales were up 6.2%, German total sales were up 9.1% and the Netherlands total sales were up 4.1%.

Each country's like for like (LFL) sales growth was stronger than expected, according to the broker. Excitingly, UBS is expecting Collins Foods to increase its EPS at a compound annual growth rate (CAGR) between FY27 and FY30.

It's only trading at 19x FY26's estimated earnings, according to UBS' estimates.

Premier Investments Ltd (ASX: PMV)

Premier Investments is the owner of Peter Alexander and Smiggle. It also owns a substantial minority stake of Breville Group Ltd (ASX: BRG).

According to the Commsec collation of analyst opinions, there are currently 11 buy ratings on the business. One of the brokers that rates Premier Investments as a buy is UBS.

The broker notes that Premier Investments is going to hand in its FY26 half-year result at the end of this week.

UBS noted that the business has provided guidance for the FY26 first half result of underlying profit of $120 million, which the broker is also estimating for the company. The broker is also forecasting net profit of $99.3 million, EPS of 62.1 ents and a dividend per share of 40.4 cents.

The broker has a buy rating on the ASX share because of its strong core ANZ Peter Alexander business and the extent that the Breville shares are "underappreciated within its valuation", which makes the risk/reward attractive despite Smiggle being challenged and the start-up losses in Peter Alexander UK.

In ANZ, Peter Alexander has expanded its total addressable market (TAM) with its offer extending to men, kids, plus-size and accessories. UBS thinks the business is justified to invest in expanding the store network and refurbishing existing stores.

Based on UBS' estimate, the Premier Investments share price is valued at 14x FY26's estimated earnings.

The post 2 ASX shares highly recommended to buy: Experts appeared first on The Motley Fool Australia.

Does the broker think they are buys, holds, or sells? Here's what Morgans is recommending to clients:

Collins Foods Ltd (ASX: CKF)

The broker was pleased with news that this KFC restaurant operator is expanding its footprint in Germany with an attractive acquisition.

In response to the news, the broker has reaffirmed its buy rating on Collins Foods shares with a slightly improved price target of $12.70. It said:

CKF has announced what we see as a high-quality German KFC bolt-on at attractive economics. CKF is acquiring an eight-restaurant Bavarian portfolio at just under 6x restaurant-level EBITDA (pre-AASB 16) and expects the deal to be immediately EPS accretive. The Germany runway has been extended through the German Development Agreement (DA) to 45-90 new restaurants (from 40-70), materially extending the organic growth runway.

We believe this was a sensible, returns-focused deal that adds weight to the Germany growth story; execution is still key, but with a refreshed team and strong operators at the helm, success in Germany should be the catalyst for a re-rate despite lingering Netherlands noise. We upgrade to a BUY with a $12.70 target (was $12.40).

Endeavour Group Ltd (ASX: EDV)

Another ASX share that Morgans has been looking at is Dan Murphy's owner Endeavour Group.

It was relatively pleased with its half-year results. However, for now, the broker thinks its shares are fairly valued and has retained its hold rating with a $3.65 price target. It said:

There were no major surprises in EDV's 1H26 result following the company's trading update in January. While EDV continues to work on its refreshed strategy with further details to be provided at an investor day on 27 May, management confirmed that the combined Retail and Hotels portfolio will be retained.

Management also noted that they will continue investing in Dan Murphy's to restore its price leadership, while accelerating hotel renewals and electronic gaming machine (EGM) replacements. We decrease FY26-28F underlying EBIT by between 0-1%. Our target price falls to $3.65 (from $3.70) and we retain our HOLD rating.

Magellan Financial Group Ltd (ASX: MFG)

Morgans has also been looking at Magellan shares. It notes that the company is planning to merge with Barrenjoey.

And while it feels the deal is more favourable to Barrenjoey, it thinks it has created a buying opportunity for investors. It has upgraded its shares to a buy rating with an improved price target of $12.43. It said:

MFG has entered into an arrangement to merge with Barrenjoey. We think the deal makes strategic sense and will reinvigorate the MFG story. Nevertheless, deal pricing appears tilted in Barrenjoey's favour (in our view). We assume the merger closes at the end of FY26. Changes to our MFG FY26F/FY27F/FY28F EPS are -27%/+10%/~+25% reflecting the incorporation of the deal and upgrades to our assessment of Barrenjoey's earnings profile (based on new disclosures).

Our price target is set at A$12.43 (previously A$9.80). We think the Barrenjoey merger fundamentally changes MFG's overall outlook, strengthening the business and providing additional pathways to growth. MFG also retains a strong balance sheet (~A$690m of liquidity, post deal). Move to a BUY.

The post Buy, hold, sell: Collins Foods, Endeavour, and Magellan shares appeared first on The Motley Fool Australia.

Shares in the S&P/ASX 300 Index (ASX: XKO) KFC fast food restaurant operator closed yesterday trading for $9.92. In morning trade on Friday, shares are changing hands for $9.87 apiece, down 0.5%.

For some context, the ASX 300 is down 0.4% at this same time.

This modest underperformance comes amid news that the company has agreed to settle a long-standing class action.

Here's what we know.

Collins Foods shares slide on $9 million settlement

Collins Foods shares are in the red this morning after the KFC operator announced that it has entered into a binding heads of agreement with the applicants of the proceedings to settle the employee class action.

The legal action, which regards 10-minute employee rest breaks, was commenced against Collins Foods and other respondents in December 2023.

The company reported that it has agreed to pay up to $9 million to settle the matter, subject to approval by the Federal Court of Australia.

Collins Foods made no admission of liability.

What else has been happening with the ASX 300 fast food stock?

Yesterday was a big day for the KFC operator, with Collins Foods shares closing up 5.2%.

Investors responded favourably to the company's announcement, released after market close on Wednesday, revealing its expansion plans in Germany.

Collins Foods said it has inked an agreement with JJ Restaurant to acquire eight KFC restaurants near Munich for approximately $50 million, plus working capital.

As for the return on that investment, management forecast around $46 million in revenue over the first full year of ownership. The company expects to deliver earnings before interest, taxes, depreciation and amortisation (EBITDA) of around $9 million over the first 12 months.

"There is a significant growth opportunity for Collins Foods in the German market, and we are pleased to be executing on our expansion in a disciplined manner," Collins Foods CEO Xavier Simonet said.

Having secured an expansion of its German development agreements, the company is now aiming to open 45 to 90 new restaurants in the next four years.

Simonet noted:

The KFC brand has substantial potential in Germany with approximately a fifth of the store footprint of the largest competitor, McDonald's. Despite lower restaurant density, KFC enjoys strong brand awareness and consumer appeal in Germany, supporting a compelling opportunity to expand our market presence.

How have Collins Foods shares been performing?

Collins Foods shares are up 19.8% over the past 12 months, outpacing the 11.1% gains delivered by the benchmark index.

The post KFC owner Collins Foods shares sliding today on class action news appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back today are listed below. Here's why they are rising:

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price is up 7% to $10.07. This follows news that the quick service restaurant operator is accelerating its expansion in Germany. Collins Foods has agreed to acquire eight KFC restaurants in Bavaria, centred around Munich, increasing its presence and scale in the country. The company also released a trading update which revealed that Australian same store sales are up 3.2% so far in the second half and 2.7% year to date. The company's CEO, Xavier Simonet, said: "There is a significant growth opportunity for Collins Foods in the German market, and we are pleased to be executing on our expansion in a disciplined manner."

St George Mining Ltd (ASX: SGQ)

The St George Mining share price is up 7% to 15 cents. Investors have been buying this rare earths developer's shares after it announced downstream plans that will aim to separate cerium and lanthanum. St George Mining's executive chair, John Prineas, commented: "The magnet and heavy rare earths hosted in our world-class Araxa rare earths resource are very significant and the main driver for development of a rare earths mining operation. The opportunity to also monetise the cerium component of the Araxa rare earths deposit can add material value to a potential mining operation at Araxa."

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is up 5% to $9.12. This has been driven by news that three major credit agencies have given the coal miner BB+ ratings with stable outlooks. Whitehaven's managing director and CEO, Paul Flynn, said: "These credit ratings recognise Whitehaven's strengthened credit profile, prudent capital management and the successful integration – and initial improvements – at the Daunia and Blackwater metallurgical coal operations, which have enhanced the Company's diversification, scale and returns through the cycle."

Woodside Energy Group Ltd (ASX: WDS)

The Woodside Energy share price is up almost 2% to $30.97. The catalyst for this has been a jump in oil prices overnight. It isn't just Woodside that is rising today. Other energy shares are rising as well, which has lifted the S&P/ASX 200 Energy index by 1.7% this afternoon.

The post Why Collins Foods, St George Mining, Whitehaven Coal, and Woodside shares are pushing higher today appeared first on The Motley Fool Australia.

At the time of writing, the ASX 200 stock is up 11% to $10.50.

Why is this ASX 200 stock rising today?

The catalyst for the move appears to be the release of an announcement from the quick service restaurant operator after the market close on Wednesday.

That announcement revealed plans to accelerate the ASX 200 stock's expansion in Germany, alongside an update on its Netherlands operations.

According to the release, Collins Foods has signed an asset purchase agreement with JJ Restaurant to acquire eight KFC restaurants in Bavaria, centred around Munich. This will significantly increase its footprint in the region.

Management notes that the deal will increase the company's German restaurant portfolio by almost 50%, providing greater scale in one of Germany's most affluent and populous states.

In addition, Collins Foods has secured an expansion of its German development agreements, which will now target 45 to 90 new restaurant openings over the next four years.

The ASX 200 stock believes this will support its strategy of establishing Germany as its second key growth pillar.

Commenting on the news, the company's managing director and CEO, Xavier Simonet, said:

There is a significant growth opportunity for Collins Foods in the German market, and we are pleased to be executing on our expansion in a disciplined manner. The KFC brand has substantial potential in Germany with approximately a fifth of the store footprint of the largest competitor, McDonald's. Despite lower restaurant density, KFC enjoys strong brand awareness and consumer appeal in Germany, supporting a compelling opportunity to expand our market presence.

Collins Foods has agreed to pay 31.1 million euros (A$50.3 million) plus working capital.

It anticipates revenues of 28.2 million euros (A$45.6 million) and EBITDA of 5.3 million euros (A$8.6 million) from the acquired restaurants in the first 12 months of ownership post completion.

Netherlands agreement refocused

Alongside the German update, Collins Foods announced that it has signed a revised and extended corporate franchise agreement for the Netherlands with Yum! Brands.

Management advised that the updated agreement will allow the company to sharpen its operational focus and work toward improving profitability in the Dutch market.

Simonet explains:

The updated Netherlands CFA brings our responsibilities into closer alignment with our other operating markets and will enable us to focus more sharply on improving sales and profitability across our network.

Trading update

In addition, the ASX 200 stock provided the market with a trading update.

It revealed that Australia sales are up 6.2% so far in the second half, while Germany sales are up 9.1% and Netherlands sales are up 4.1%. Same store sales growth is 3.2%, 4.1%, and negative 0.3%, respectively.

The post Guess which ASX 200 stock is rocketing 11% on big Euro news appeared first on The Motley Fool Australia.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 set to fall

The Australian share market looks set to fall on Thursday following a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 49 points or 0.55% lower this morning. In late trade in the United States, the Dow Jones is down 0.6%, the S&P 500 is down 0.1% and the Nasdaq is up 0.1%.

Collins Foods shares on watch

Collins Foods Ltd (ASX: CKF) shares will be on watch on the ASX 200 on Thursday. After the market close on Wednesday, the quick service restaurant operator announced an acceleration of its expansion in Germany. This has seen the company acquire eight KFC restaurants in Bavaria, centred around Munich, increasing its presence and scale in the country. The company also revealed that Australian same store sales are up 3.2% so far in the second half and 2.7% year to date.

Oil prices jump

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch on Thursday after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 5.1% to US$87.74 a barrel and the Brent crude oil price is up 5% to US$92.23 a barrel. Traders were buying oil despite news that the IEA is releasing 400 million barrels of stockpiled oil.

Lynas shares upgraded

Bell Potter is no longer bearish on Lynas Rare Earths Ltd (ASX: LYC). This morning, the broker has finally taken its sell rating off the rare earths producer's shares and upgraded them to a hold rating with a vastly improved price target of $19.00 (from $11.60). It said: "We continue to see risks around the valuation premium and multiple, which in our opinion are pricing in perfection in an imperfect world. However, we note that the announcement safeguards a substantial portion of revenue and earnings, reducing the impact of adverse price swings should additional supply enter the market over the coming years and somewhat justifying that premium."

Gold price falls

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Thursday after the gold price dropped overnight. According to CNBC, the gold futures price is down 1.1% to US$5,187.4 an ounce. A stronger US dollar and inflation concerns weighed on the precious metal.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

Thanks largely to shocks on global energy markets rolling through the world's economy, investors hit the sell button hard this session, sending the ASX 200 down by a horrific 2.85%. That leaves the index at just 8,599 points after it finished at 8,851 points last Friday.

This depressing start to the Australian trading week comes after a tough end to the American week on Saturday morning (our time).

The Dow Jones Industrial Average Index (DJX: .DJI) suffered a sizeable drop of 0.95%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was hit even harder, falling by 1.59%.

But let's grit our teeth and return to this week and our local markets now for an autopsy of the various ASX sectors' performance this Monday.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is up 0.3% while the S&P/ASX 200 Index (ASX: XJO) is up 0.5%.

Meantime, brokers have revealed two ASX retail shares to buy and two to sell.

Let's take a look.

Nick Scali Ltd (ASX: NCK) 

The Nick Scali share price is $19.14, up 3.9% on Tuesday and up 8.6% over the past 12 months.

The furniture retailer reported a 36% increase in profit in its 1H FY26 results last week.

Nick Scali revealed a 7.2% year-on-year increase in revenue to $269.3 million and an 18.8% uplift in earnings before interest, taxes, depreciation, and amortisation (EBITDA) to $96.6 million.

The statutory net profit after tax (NPAT) was $41 million, and there was a 14.1% improvement in gross margin to 59.2%.

Nick Scali announced a fully-franked interim dividend of 39 cents per share, up 30% on 1H FY25.

Bell Potter said first-half NPAT came in 11% above expectations.

The broker retained its buy rating on the ASX retail share but lowered its 12-month share price forecast by 11% to $25 "due to softer growth into the second half, earnings revisions and the rising interest rate environment".

Breville Group Ltd (ASX: BRG)

The Breville share price is $32.17, down 0.5% on Tuesday and down 13% over the past 12 months.

The white goods manufacturer released its 1H FY26 results last week.

The company revealed a 10.1% increase in total sales revenue to $1,098.7 million.

EBITDA grew by 2.9% to $182.8 million and NPAT lifted 0.7% to $98.2 million.

Breville announced a fully-franked interim dividend of 19 cents per share, up from 18 cents in 1H FY25.

Following the report, Morgans maintained a buy rating on this ASX retail share.

The broker commented:

1H26 was better-than-feared, with double-digit sales growth (+10%) largely offset by tariff costs (~130bp GM impact) to deliver a flat NPAT outcome (+1% on pcp).

Crucially, FY26 EBIT growth guidance provides much-needed earnings visibility, alleviating some concerns for an extended transition year and improving our confidence for a resumption of sustainable EPS growth from FY27+.

We continue to be impressed by BRG's strong operational execution, green shoots in Food Prep, and powerful medium-term tailwinds (geographic expansion, espresso tailwinds, NPD, Best Buy developments).

Collins Foods Ltd (ASX: CKF)

The Collins Foods share price is $10.14, up 1.2% today and up 24% over the past 12 months.

On The Bull this week, Michael Gable from Fairmont Equities revealed a sell rating on the KFC franchise owner.

Gable explained:

We expect cost pressures to hit margins. Cost of living pressures and rising interest rates in Australia may pressure sales.

The company delivered group revenue and statutory net profit after tax growth in the first half of 2026 when compared to the prior corresponding period.

However, market reaction to the result has been negative.

The shares have fallen from $11.60 on December 1, 2025 the day prior to the half year result, to trade at $10.425 on February 12, 2026.

Share price rallies are followed by selling pressure, a sign that investors are seeking out other opportunities.

Cettire Ltd (ASX: CTT)

ASX retail share Cettire is trading at 48 cents apiece, down 2% today and down 60% over the past 12 months.

Cettire will release its 1H FY26 results next Thursday.

Christopher Watt from Bell Potter Securities reckons the luxury goods online retailer is a sell.

Watt explained:

Fiscal year 2025 was challenging in response to a slowdown in demand, macroeconomic headwinds and a heightened competitive environment.

The company posted a statutory net loss after tax of $2.6 million.

The shares have fallen from $4.66 on February 12, 2024 to trade at 51 cents on February 12, 2026.

In our view, the lack of near term catalysts suggest elevated risk, particularly if macroeconomic headwinds dampen luxury demand. 

The post ASX retail shares: Experts rate 2 to buy and 2 to sell appeared first on The Motley Fool Australia.

That said, it doesn't mean there aren't companies that stand out from the pack and are worth looking at from an investment perspective.

RBC Capital Markets has looked at the sector broadly and come up with some key picks for your portfolio.

For a start, they say broadly that things certainly are competitive:

While we expect the sector to report in-line revenue, we anticipate elevated discounting and competition may present downside risk to gross margin outcomes as evidenced by Super Retail Group's and Endeavour Group's recent announcements. Woolworths and JB Hi-Fi stand out as other names facing potential downside risk to gross margins.

So who does the RBC team think will surprise on the upside this reporting season?

Collins Foods Ltd (ASX: CKF)

RBC has had a look at Collins Foods and says its FY26 net profit guidance "looks conservative to us''.

The company is guiding for growth in the mid to high teens; however, RBC has done the sums and believes it's likely to come in at the top of that range.

They also point out that chicken "may be structurally oversupplied in Australia'', which could be good news on the cost front for the KFC operator.  

RBC has a price target of $12.80 on Collins Foods shares compared with $10.75 currently.

Coles Group Limited (ASX: COL)

When it comes to Coles Group, RBC says market share trends will be the focus, with Woolworths Ltd (ASX: WOW) discounting to gain market share.

We believe a narrowing of share tends in the second quarter is likely, though we forecast Coles has done a better job of protecting margins.

RBC said, "outsized cash flow growth will provide scope for Coles to invest in further entrenching structural cost advantages."

RBC has a price target of $24 on Coles, compared with its current price of $20.76.

Super Retail Group (ASX: SUL)

Over at Super Retail, RBC says much of the negative news has been released before the reporting season.

They say the company has scope to grow across multiple brands.

Supercheap Auto has an opportunity to improve execution (store format, range) to take share from Autobarn. Rebel top-line trends remain solid, and stronger execution should enable Rebel to more effectively deliver margin outcomes going forward.

RBC says with sales growth figures already pre-released, the focus for reporting season will be on cash flow, the balance sheet, and the first eight weeks of trade in the second half.

RBC has a price target of $16.10 on Super Retail shares, compared with its current price of $14.50.

The post Which ASX retail stocks look like good buying ahead of the looming reporting season? appeared first on The Motley Fool Australia.

It can be particularly attractive to invest in growing businesses because rising profits are a natural tailwind for capital growth, we just need to buy them at the right valuation.

The broker UBS currently has a buy rating on the following ASX shares.

Sigma Healthcare Ltd (ASX: SIG)

Sigma is Australia's largest pharmacy franchisor and wholesaler, operating under the brands of Chemist Warehouse, Amcal and Discount Drug Store, as well as 3,500 wholesale customers. It has more than 80 international stores across New Zealand, Ireland and UAE.

UBS has a buy rating on the business, with a price target of $3.40.

The broker is expecting Sigma Healthcare's earnings per share (EPS) to increase at a compound annual growth rate (CAGR) of 15% between FY26 and FY29.

UBS suggests Chemist Warehouse's like-for-like sales are going to grow by 13.2% in FY26, 10.2% in FY27 and high single digits between FY28 and FY30.

The broker points to a number of tailwinds including an ageing population, health prioritisation, higher value medicines, greater category participation and spending per consumer, more than 30 stores opening per year and the international growth potential. The profit margins are also projected to steadily climb over the next few years.

Ventia Services Group Ltd (ASX: VNT)

The next ASX share is Ventia. It provides essential infrastructure services across ANZ, specialising in long-term operation, maintenance and management of critical infrastructure.

UBS has a buy rating on the ASX share, with a price target of $6.23.

The broker notes that Ventia's earnings growth has been driven by key contract wins and renewals, as well as expanding its profit margins though exposure to more specialised, higher value work.

UBS suggests that increased infrastructure investment provides a growing market opportunity for the business, combined with balance sheet deleveraging, underpins its forecasts that EPS could grow at a CAGR of 9% over the next three years.

The broker suggests that dividends per share could rise every year between FY26 to FY29.

Collins Foods Ltd (ASX: CKF)

Collins Foods is a large KFC franchisee business, with operations in Australia and Europe (the Netherlands and Germany).

UBS rates the ASX share as a buy, with a price target of $13.10.

The broker noted that Collins Foods' value proposition is resonating with consumers, pointing out that not many Australian consumer-facing businesses recorded an improvement in like-for-like sales in the last few months of 2025.

Conditions in Europe are more challenging, but the company could benefit from the reversal of avian flu impacts that were felt in recent times. It could also benefit from changes to VAT in Europe, which may lead to year-over-year growth of operating profit (EBITDA).

UBS said it continues to like the ongoing strength within the Australian KFC business, combined with the "penetration opportunity" within Germany.

Currently, the Collins Foods share price is valued at 21x FY26's estimated earnings, according to the UBS projection.

The post Brokers rate these 3 top ASX shares as buys for February appeared first on The Motley Fool Australia.

The two companies that I'm about to highlight are some of the most highly rated opportunities on the ASX right now. That doesn't guarantee great returns, or even positive returns, but experts are clearly bullish on their potential.

Let's dive into two appealing ideas.

WiseTech Global Ltd (ASX: WTC)

According to a collation of analyst ratings on this ASX share, there are currently 13 buy recommendations.

As the chart below shows, the WiseTech share price has dropped by close to 50% over the past year. Experts think this could be a good time to invest for a potential rebound.

Broker UBS describes WiseTech as a global technology company that develops, sells and implements software for logistics service providers in more than 165 countries. Its core platform is called CargoWise, which helps customers execute "highly complex logistics transactions" and manages operations on one global database. Its customers include most of the leading global freight forwarders and third-party logistic providers.

UBS currently has a price target of $115 on the business, suggesting it can rise 72% within a year (at the time of writing).

The broker thinks WiseTech is attractively priced compared to other US high-growth peers that operate on a software-as-a-service business model.

In FY26, UBS projects that WiseTech could generate US$1.4 billion of revenue and US$223 million of net profit.

Fast forward to FY30, and UBS sees revenue reaching US$2.6 billion and net profit reaching US$771 million. In other words, in four financial years time, revenue could grow 84% and net profit could surge 245%.

Collins Foods Ltd (ASX: CKF)

Collins Foods is another ASX share that's highly rated by analysts. According to the Commsec recommendation collation, there are currently eight buy ratings on the business.

One of the brokers that rates Collins Foods as a buy is UBS. This business is one of the largest KFC franchisee operators in Australia. It also has a growing presence in Germany and the Netherlands.

Unlike WiseTech, the Collins Foods share price has had a strong 12 months – it's up more than 40%, as the below chart shows. UBS thinks the fast food operator has more room for growth.

UBS currently has a price target of $13.10 on the business, suggesting the ASX share could rise 24% within the next year.

The broker believes that Collins Foods' value proposition is resonating with customers, with its KFC Australia network showing an improvement of like-for-like sales in the second half of the 2025 calendar year. Many other consumer-facing businesses did not see an improvement in comparable sales.

While conditions are challenging in Europe, UBS suggested that lower chicken costs (with a reversal of the avian flu impacts) and changes to VAT could help its European division deliver operating profit (EBITDA) growth. UBS said:

We continue to like the ongoing strength within the Australian KFC business, combined with the penetration opportunity within Germany.

The broker is forecasting that the ASX share could generate a compound annual growth rate (CAGR) for earnings per share (EPS) of 19%.

Despite that, the Collins Foods share price is trading at less than 21x FY26's estimated earnings.

UBS predicts that business could deliver an operating profit margin of 16% by FY31, with the "annualisation of strong value offerings giving some fixed cost operating leverage", the benefit of cost tailwinds (for chicken, potatoes and oil), ongoing improvement within outlets and "ongoing fractionalisation of head office costs from ongoing store roll-out."

Overall, things are looking very positive for this ASX share, though it's not only stock worth keeping an eye on.

The post Experts rate these 2 ASX shares as buys this month! appeared first on The Motley Fool Australia.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set for a decent start to the week following a relatively positive finish to the last one on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 11 points or 0.15% higher. In the United States, the Dow Jones was up 0.65%, the S&P 500 rose 0.2%, and the Nasdaq finished largely flat.

Oil prices slip

It could be a subdued start to the week for ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) after oil prices slipped on Friday night. According to Bloomberg, the WTI crude oil price was up 0.15% to US$57.32 a barrel and the Brent crude oil price was down 0.15% to US$60.75 a barrel. Since then, the Venezuelan leader Maduro has been overthrown. Given how oil-rich it is, this could have an impact on oil markets when they reopen.

BHP and Rio Tinto expected to rise

It looks set to be a good start to the week for BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) shares on Monday after their NYSE-listed shares charged higher on Friday night. Both miners were up around 2% during the session on Wall Street. This left both mining giants trading within touching distance of their 52-week highs.

Gold price falls

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued start to the week after the gold price edged lower on Friday night. According to CNBC, the gold futures price was down 0.25% to US$4,329.6 an ounce. This may have been driven by profit-taking from some traders.

Collins Foods pay day

Today is a good day for owners of Collins Foods Ltd (ASX: CKF). That's because today is pay day for the KFC focused quick service restaurant operator's shareholders. Last month, the company released its half year results and revealed a 29.5% increase in underlying net profit after tax to $30.8 million. This allowed the Collins Foods board to increase its fully franked interim dividend by 18% to 13 cents per share.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.