Negative market sentiment and various headwinds like inflation and interest rate rises have pushed many investors into a defensive mindset. 

However there are also value opportunities in today's market.

While broker targets should always be complimentary to individual research, they can provide a ballpark of where an ASX 200 stock price may go in the near future. 

Here's three of the most undervalued ASX 200 companies now according to experts, along with how much a prospective investor could potentially profit over the next 12 months. 

Ora Banda Mining Ltd (ASX: OBM)

Ora Banda Mining engages in the development and exploration of gold.

Like many ASX gold shares, it enjoyed big gains in 2025. 

However since the start of 2026, it has tumbled almost 14%. 

Brokers now view this as a buy low opportunity for the ASX 200 stock. 

Canaccord Genuity recently reiterated its buy rating with a $2.25 target. 

From the current share price of $1.33, this indicates an upside potential of 69%. 

This means a $10,000 investment could rise to almost $17,000 in the next 12 months should this ASX 200 company reach its potential. 

Guzman Y Gomez Ltd (ASX: GYG)

The popular Mexican fast casual chain has been heavily covered this year as its share price has fallen significantly. 

For the year to date, this ASX 200 stock is down 12%. 

However, it has recently started to rebound after the company announced it was exiting the US market.

Investors largely saw this as a positive, as it has soared almost 20% since the news. 

Brokers also quickly began re-evaluating the company following this announcement. 

At the time of writing, the ASX 200 stock is trading at just under $19 per share. 

Bell Potter has increased its price target to $24.50, while Ord Minnett is even more optimistic, placing a $31.00 price target on Guzman Y Gomez shares. 

These targets indicate an upside potential of 29% to 63% upside. 

This would send a $10,000 investment somewhere into the range of $12,900 to $16,000 in the next 12 months. 

Flight Centre Travel Group Ltd (ASX: FLT)

Travel shares have also been hit hard this year due to global conflict and soaring oil prices. 

Flight Centre shares have subsequently fallen 26% year to date. 

However, it is also being tipped to recover in the near future. 

Macquarie has an outperform rating on Flight Centre shares with a price target of $17.95. 

From the current share price of $11.12, this indicates an upside potential of 61%. 

If the share price reaches this target, a $10,000 investment would reach over $16,000 by next June. 

The post How much could investors profit off these undervalued ASX 200 shares with a $10,000 investment? appeared first on The Motley Fool Australia.

I always think that when markets look uncertain, it's a good idea to review your share portfolio and make sure your investments are in the right place.

Here are two ASX 200 shares I'd buy this month, and one I'd sell.

I'd buy Catalyst Metals Ltd (ASX: CYL) shares

Catalyst Metals shares are down around 2% at the time of writing on Thursday morning, and are trading at $5.28 a piece. The drop means the shares are now around 29% lower for the year to date and 26% lower than 12 months ago.

It's been a volatile run for the ASX gold producer this year. Its share price spiked to an all-time high in January after it announced a significant new high-grade discovery at its Plutonic Gold Belt. 

But it has lost around 44% of its value ever since. The downturn is likely due to a significant increase in mining costs and a weaker ASX gold sector after a strong run late last year. Fluctuating sentiment has led many investors to sell their gold shares and rotate into larger, more stable assets. 

But Catalyst Metals has shown a long period of operational consistency and organic growth. The miner expects production to increase towards the latter half of FY26 as well. 

It also posted a positive drilling update in early May. The results included visibility of a potential mine life of more than 10 years at approximately 60,000 ounces per annum.

I think the Catalyst Metals' share price will rebound soon enough, and I'd buy in the dip while they're still going for cheap.

Analysts rate the ASX 200 shares as a strong buy and tip an average target price of $13.75. That implies a potential 160% upside at the time of writing.

I'd buy Guzman Y Gomez (ASX: GYG) shares

The Mexican-themed fast-food restaurant chain's shares hit a historic low in early April but have since rebounded 25%. At the time of writing, the ASX consumer discretionary shares are changing hands for $19.05 a piece. The shares are still 12% lower year to date and 37% lower than a year ago.

After multiple headwinds and sombre sentiment so far this year, Guzman Y Gomez shares look like they have finally changed course. The latest rebound comes on the back of news that the company closed its struggling US stores to focus its business expansion on Asia and Australia.

The company's long-term goal remains to reach 1,000 restaurants in Australia, with segment EBITDA at 10% of network sales. Its Singapore expansion has already become successful, and it looks like the company can quickly build its presence in the right markets.

Most analysts rate the ASX 200 shares as a buy and tip a 28% upside to an average $24.53 target price, at the time of writing.

I'd sell Beach Energy Ltd (ASX: BPT) shares

Beach Energy shares are slightly higher today, up around 0.2% to $1.10 at the time of writing. The oil and gas exploration and production company's shares are now around 7% lower year to date and 20% lower than 12 months ago.

While the oil and gas explorer and producer's shares flew higher off the back of geopolitical tensions in March, they tumbled just as quickly.

Investor sentiment was slashed when the company posted its third-quarter update in April. It revealed softer sales, a guidance downgrade, and ongoing operational disruptions. 

The update spooked investors, and now many are worried about the company's earnings outlook.

The majority of brokers have a sell rating on the shares. But the $1.12 average target price still implies a potential 3% upside, at the time of writing.

The post 2 ASX 200 shares I'd buy and 1 I'd sell this month appeared first on The Motley Fool Australia.

We're going to look at two of the most highly rated businesses on the ASX right now. It's interesting when one analyst likes a business, but its an even better sign when numerous experts think a business is a buy. Of course, forecasts are not guaranteed.

For me, I like how both of the businesses are among the leaders in the local market, with successful overseas expansion that could suggest a significant growth runway in the long-term.

Xero Ltd (ASX: XRO)

Xero is one of the leading ASX tech shares with its accounting, business analysis and taxation reporting software.

The company has carved out a significant market share in New Zealand and Australia. It's also growing in places like the UK, South Africa, Singapore, the US and so on. It has an extremely loyal subscriber base, which gives the company the confidence to hike its subscription price.

A rising average revenue per user (ARPU) helps a number of metrics including annualised monthly recurring revenue (AMRR), the total lifetime value (LTV) of subscribers and obviously operating revenue.

In the FY26 result, Xero reported that its total number of customers rose 11% to 4.9 million, ARPU grew 23% to $55.44, AMRR grew 37% to $3.27 billion and LTV increased by 17% to $21 billion. Operating revenue increased by 31% to $2.75 billion.

The ASX share's net profit decreased in FY26, but I think it will rise rapidly for the foreseeable future now that the Melio acquisition has been concluded and integrated.

According to CMC Invest, there have been nine different analyst ratings on the business in the last three months, with eight of them being a buy. The average price target of those nine ratings is $126.57, which at the time of writing suggests a possible rise of close to 70% in the next year.

Guzman Y Gomez (ASX: GYG)

GYG is a Mexican food business, which has proven a big hit in Australia to date. It already has well over 200 locations in Australia and it's aiming for over 1,000 locations within the next 20 years.

On top of that, the business has a presence in both Singapore and Japan. It now has 24 restaurants in Singapore and it had five locations in Japan at the end of the FY26 third quarter.

The FY26 third-quarter showcased its excellent growth rate, with network sales growth of around 20% in Australia and growth of 15% in Asia.

It recently took the decision to end its growth efforts in the US because of the expected cost of reaching good profitability for that market. But, this should help the company's bottom line for the foreseeable future.

The ASX share expects the Australia and Asia division to generate $85 million of underlying operating profit (EBITDA), representing 29% growth year over year.

According to the forecast on CMC Invest, GYG could generate 64.2 cents of earnings per share (EPS) in FY28 putting it at just over 30x FY28's estimated earnings.

On CMC Invest, there have been 10 analyst ratings on the business within the last three months, with eight of those being a buy. The average price target of those 10 ratings is $24.33, suggesting a possible rise of 23% over the next year.

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

On the 22 May 2026, Guzman y Gomez Ltd (ASX: GYG) did exactly that.

Co-CEO and founder Steven Marks had spent three months on the ground in Chicago.

His conclusion, delivered to shareholders, was that the US business required far more time and capital than originally expected.

He said:

Having spent the last 3 months in the US, I realized this was going to take significantly more time and capital than we had expected. The current performance of the US business could not justify continued investment of shareholder capital.

Guzman y Gomez shares surged as much as 20.58% on the day, closing 9.57% higher at $19.81.

Why the US exit is actually good news for Guzman y Gomez shares

At first glance, exiting the world's largest fast food market sounds like bad news.

In reality, it removes one of the biggest overhangs that have weighed on Guzman y Gomez shares since the company's ASX debut.

Guzman y Gomez entered the US market in 2020 with high hopes.

However, the business struggled to differentiate from rival Chipotle, and the challenges of operating in Chicago proved harder than management anticipated.

The US losses had been dragging on overall group numbers and absorbing management attention.

This attention could have been focused on the far more profitable Australian business.

The exit costs are contained.

Guzman y Gomez expects a one-off financial hit of between US$30 million and US$40 million, mostly non-cash.

Actual cash outflows are not expected to exceed US$15 million.

That is a manageable price to pay for a clean slate.

The Australian business is performing strongly

With the US distraction removed, investors can now focus on what really matters: the Australian growth story.

Guzman y Gomez lifted its Australia Segment underlying EBITDA guidance for FY2026 to approximately $85 million, representing growth of 29% on the prior year.

The company currently operates 237 restaurants in Australia, with a long-term target of 1,000.

That pipeline of 108 new sites already approved and in development represents a visible growth path.

Furthermore, the international master franchise model in Singapore and Japan is working well.

Singapore opened its 24th restaurant this week.

Both markets are guiding to further openings over the next 12 months.

These are capital-light, royalty-style exposures that cost Guzman y Gomez almost nothing to maintain and prove that the brand travels.

What Bell Potter thinks about Guzman y Gomez shares

The broker community responded decisively to the announcement.

Bell Potter upgraded Guzman y Gomez shares to a buy rating from hold with an improved price target of $24.50, from a prior target of $22.10.

The broker said:

We welcome the US exit as a previous overhang removed on the stock and see the switch to focusing on the core Australia opportunity as more beneficial to shareholders. We are confident in the medium-term Australia opportunity, backed by a pipeline of 108 restaurants, as well as the successful master franchising operation in Singapore and Japan.

However, with the US overhang now fully removed and the 29% Australian EBITDA growth confirmed, several analysts believe the Bell Potter target itself could prove conservative.

Citi, which had already been sceptical about the US prospects, called the exit decision the right one.

The broker noted there is "significant growth" in Australia where the long-term target of 1,000 restaurants has barely been scratched.

For context, Guzman y Gomez shares traded as high as $43 in December 2024, before the US concerns mounted.

A return even to half that level from today's price of $19.81 would represent significant upside.

Foolish takeaway

Guzman y Gomez shares are not without risk.

The US exit signals a painful lesson learned and takes one major growth option off the table.

Competition in Australia from other quick service restaurant chains remains significant.

However, the decision removes what had been the most persistent valuation overhang on Guzman y Gomez shares since listing.

What remains is a 29%-growing Australian restaurant business with a clear path to 1,000 locations, a capital-light international franchise model, and a founder back in Australia focused entirely on the core opportunity.

For long-term investors, the case for Guzman y Gomez shares looks considerably cleaner today than it did a week ago.

The post Why Guzman y Gomez shares could shoot 30% higher after exiting the US market appeared first on The Motley Fool Australia.

That's because I believe it is worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn't quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Lotus Resources Ltd (ASX: LOT) continues to be the most shorted ASX share after its short interest increased again to 18.5%. This uranium producer's shares have come under significant pressure since the release of a very disappointing quarterly update. Lotus revealed weak production and a sizeable cash burn. There are now concerns that another capital raising will be needed later this year.
• Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its short interest ease to 15.3%. Short sellers appear to be doubting this pizza chain operator's turnaround plans.
• Telix Pharmaceuticals Ltd (ASX: TLX) has seen its short interest ease again to 14.5%. This radiopharmaceuticals company has come under pressure after struggling to gain key US FDA approvals.
• Boss Energy Ltd (ASX: BOE) has short interest of 14%, which is down since last week. This uranium miner's uncertain production outlook beyond 2026 has weighed on sentiment.
• Treasury Wine Estates Ltd (ASX: TWE) has 13.7% of its shares held short, which is up week on week again. This wine giant's recent and encouraging trading update hasn't put off short sellers.
• Guzman Y Gomez Ltd (ASX: GYG) has short interest of 12.6%, which is down week on week. Short sellers have been closing positions after the quick service restaurant operator's shares rocketed in response to the closure of its loss-making US operations.
• CAR Group Limited (ASX: CAR) has short interest of 11.5%, which is up since last week. This may be due to concerns that higher interest rates and rising fuel costs could weigh on the automotive market.
• Flight Centre Travel Group Ltd (ASX: FLT) has returned to the top ten with short interest of 11.4%. Short sellers may believe the Middle East conflict could weigh on this travel agent's performance.
• Zip Co Ltd (ASX: ZIP) has 11.2% of its shares held short, which is down again week on week. Short sellers may be expecting this buy now pay later provider's performance to be impacted by weak consumer spending and higher interest rates.
• Polynovo Ltd (ASX: PNV) has 11.2% of its shares held short, which is down week on week again. This medical device company's shares trade on a high PE ratio. Short sellers may believe this premium is unjustified.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

The S&P/ASX 200 Index (ASX: XJO) rose 0.86% amid volatile trading to 8,731.7 points by Friday's close.

There was a strong 1.62% rally on Friday on fresh hopes of an imminent deal between the US and Iran.

Meanwhile, softer-than-expected inflation data on Wednesday quelled fears of further interest rate hikes ahead.

Annual headline inflation fell to 4.2% in April, down from 4.6% in March, according to the Australian Bureau of Statistics.

That's why consumer discretionary shares outperformed their peers last week.

Let's take a look at some individual stock price movements.

Consumer discretionary shares led the ASX sectors last week

The Wesfarmers Ltd (ASX: WES) share price lifted 6.84% over the week to finish at $79.79.

The Lottery Corporation Ltd (ASX: TLC) share price rose 4.43% to $5.42.

The Light & Wonder Inc (ASX: LNW) share price ascended 1.68% to $116.73.

JB Hi-Fi Ltd (ASX: JBH) shares rose by 2.45% to finish the week at $74.49.

Shares in furniture retailer Harvey Norman Holdings Ltd (ASX: HVN) lifted 5.01% to $4.61.

Super Retail Group Ltd (ASX: SUL) shares rose 5.77% to $11.73 apiece.

Lovisa Holdings Ltd (ASX: LOV) shares increased 6.08% to close at $23.22.

ASX 200 travel stock Flight Centre Travel Group Ltd (ASX: FLT) ripped 9.08% to $10.93 per share.

Shares in Premier Investments Limited (ASX: PMV) zoomed 7% higher to $12.53.

Some ASX 200 retail shares did not follow the broader sector trend last week.

Eagers Automotive Ltd (ASX: APE) shares fell 2.61% to $20.89 apiece.

The Guzman Y Gomez Ltd (ASX: GYG) share price eased 0.76% to $19.66.

Shares in gaming technology company Aristocrat Leisure Ltd (ASX: ALL) dipped 0.63% to $50.10.

The Breville Group Ltd (ASX: BRG) share price moderated 0.21% to $28.94.

ASX 200 market sector snapshot

Here's how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

The post Why did ASX 200 retail shares lead the market last week? appeared first on The Motley Fool Australia.

Three broker buy ratings that you might want to know more about are summarised below. Here's why brokers think these ASX shares are in the buy zone:

Guzman Y Gomez Ltd (ASX: GYG)

According to a note out of Bell Potter, its analysts have upgraded this Mexican-focused quick service restaurant operator's shares to a buy rating with an improved price target of $24.50. Bell Potter was pleased with Guzman Y Gomez's decision to close its struggling US business. The broker notes that it was a previous overhang on the stock, and sees the switch to focusing on the core Australia opportunity as more beneficial to shareholders. In addition, Bell Potter is confident in the medium-term Australia opportunity, backed by a pipeline of 108 restaurants, as well as the successful master franchising operation in Singapore and Japan. The Guzman Y Gomez share price ended the week at $19.66.

Life360 Inc. (ASX: 360)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this family safety and location technology company's shares with an improved price target of $33.00. After doing a deep dive into Life360's quarterly update, the broker thinks the market was focusing on the wrong thing. Instead of negatively reacting to its soft monthly active user (MAU) growth, which it notes was explainable, Bell Potter thinks investors should have responded positively to its strong growth in paying circles (paid subscribers). The broker believes the latter has been driven by better quality MAUs due to management now using artificial intelligence in A/B testing to help optimise marketing and subscription plans. The Life360 share price was fetching $19.33 at Friday's close.

Web Travel Group Ltd (ASX: WEB)

Analysts at Morgans have upgraded this travel technology company's shares to a buy rating with a reduced price target of $3.75. According to the note, Morgans was pleased with Web Travel's FY 2026 results this week. It highlights that the WebBeds owner delivered a resilient result that was ahead of consensus expectations. And while the broker wasn't surprised to see that the Middle East conflict is impacting its performance early in FY 2027, it remains positive. Morgans is expecting the conflict to lead to a soft first half but expects a recovery in the second half. Furthermore, it points out that after past economic and geopolitical events, travel demand has rebounded. So, with its shares down heavily, it thinks now is a great time to snap them up. The Web Travel share price ended the week at $2.61.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

That is how I see the two ASX 200 shares in this article.

Morgans has buy recommendations on both, and its price targets suggest one could rise by more than 20% and the other by more than 50% from current levels.

I also rate both as buys.

James Hardie Industries plc (ASX: JHX)

The first ASX 200 share is James Hardie.

The building products giant is trading around $31.80 at the time of writing, but Morgans has a buy rating and a $39 price target on the stock.

That implies potential upside of over 20%.

I think James Hardie is interesting because it gives investors exposure to a high-quality building materials business at a time when housing conditions are still subdued.

That might sound strange at first. Weak housing markets can put pressure on demand, volumes, and investor confidence. But I think this is where the long-term opportunity could be forming.

Morgans noted that James Hardie's FY26 result was in line with consensus and slightly ahead of prior guidance. The broker also pointed out that management is not assuming a market recovery in FY27, with affordability pressures and lower builder activity still weighing on conditions.

That is important to me because it means the buy case is not built on a sudden housing rebound.

Instead, FY27 appears to be more about margin recovery, cash generation, and synergies. If James Hardie can improve the business while the broader market remains soft, it could be well placed when conditions eventually improve.

There are risks. Housing can stay weak for longer than expected, and integration or synergy delivery can disappoint. But I like the idea of buying a strong building products business before the cycle feels comfortable again.

Guzman Y Gomez Ltd (ASX: GYG)

The second ASX 200 share is Guzman Y Gomez.

The fast-food company is trading around $19.42 at the time of writing, and Morgans has upgraded its price target to $29.40 this month.

That suggests potential upside of approximately 50%.

This is a very different opportunity to James Hardie. Guzman Y Gomez is a growth stock, and investor sentiment can move quickly when expectations change.

But I think the latest development is a positive one.

Morgans highlighted the company's decision to exit its US operations immediately. The broker viewed this as a positive catalyst because it removes a business that was expected to generate a significant underlying EBITDA loss in FY26 and require more capital than the potential returns could justify.

I think that makes sense.

The US may have offered long-term optionality, but optionality is not always valuable if it consumes too much money and management attention. By stepping away, Guzman Y Gomez can simplify the story and focus more clearly on the Australian business, where performance appears to be tracking well.

Morgans also noted that removing the US losses results in material upgrades to its EBITDA and NPAT forecasts.

That could be powerful for sentiment. Growth companies are often rewarded when the market gets more confidence in the quality of earnings, not just the size of the store rollout opportunity.

Guzman Y Gomez still needs to execute. Competition in quick-service restaurants is high, and the valuation will likely remain sensitive to growth expectations. But I like the cleaner focus and the potential for the Australian business to keep scaling.

Foolish Takeaway

A broker price target is not a guarantee, and investors should never treat one as certainty.

But I think these two buy calls are interesting because the logic is not just about hoping for better market conditions.

James Hardie could benefit from internal improvements while housing remains subdued. Guzman Y Gomez has made a decision that may improve earnings quality and simplify its growth story.

Both shares come with different risks, but I think each has a credible path to being worth more. If Morgans is right, the upside could be significant.

The post Why these ASX 200 shares could shoot 20% and 50% higher appeared first on The Motley Fool Australia.

As the chart above shows, the Mexican restaurant business has seen enormous volatility since it listed on 21 June 2024.

But, at the time of writing, it's down 37% in the past year and more than 55% since December 2024.

I'm not sure if the company will ever see declines of that size again in the future. But, I've been looking for opportunities away from the tech sector because of the uncertainties of how the AI future could play out.

I'm not convinced AI will become as widespread as some people believe due to costs, but I still think it's wise to look at a wide array of opportunities.

There are a few great reasons why I think GYG shares are on course for a very good future.

Exciting plans for Australia

The most important part of GYG's growth plans is what it wants to achieve in Australia.

GYG wants to reach 1,000 locations in Australia within the next 20 years. It had 242 restaurants at the end of the FY26 third quarter and it expects to open 32 restaurants in FY26. That's an excellent growth runway.

In the FY26 third-quarter, Guzman Y Gomez reported network sales growth of around 20%. I'd describe a profitable business growing its top-line at around 20% (or more) per year, definitely makes it one of Australia's top shares.

But, it's not as though the new locations are entirely stealing growth from the existing network. In the FY26 third-quarter, the company said the Australia segment (which includes Singapore and Japan) delivered comparable sales growth of 6.6%.

GYG expects to deliver Australia segment underlying operating profit (EBITDA) of approximately $85 million in FY26, that represents 29% year over year growth.

International expansion

Investors should remain focused on the Australian division because that's the segment that is likely to generate the most network sales and earnings.

But, its Asian network sales are also headed in a very pleasing direction.

I'm not sure how much GYG's network sales will grow in Japan and Singapore in the next five years, but at the current rate of growth, it could become a sizeable contributor to Guzman Y Gomez.

In the third quarter of FY26, Asian network sales grew by 15% year over year to $21.5 million. If the network sales in Japan and Singapore continue growing by double-digits for the foreseeable future, then the future looks bright. But, the Asian network sales were only 6.7% of the Australian network sales.

Plus, GYG could decide to expand into other countries where its success may look more like the Asian success (and less like the US, where it has decided to exit).  

Rising profit margins could be key for one of Australia's top shares

While the top-line of Guzman Y Gomez is growing at a very fast pace, its bottom line could increase at an even stronger rate because the company is expecting profit margins to improve in the coming years.

In FY26, it expects the Australia segment underlying EBITDA as a percentage of network sales to expand to between 6% to 6.2% in FY26 compared to 5.7% in FY25. In the long-term that profit margin is forecast by the business to rise towards 10%. That would represent a significant rise in dollar terms for the business, which bodes very well for the future, in my view.

According to the projection on CMC Invest, GYG could generate earnings per share (EPS) of 64.2 cents. That means it's currently valued at 30x FY28's estimated earnings. I think it's an appealing price to invest in for the long-term.

The post A rare buying opportunity in 1 of Australia's top shares? appeared first on The Motley Fool Australia.

Ten that were given the equivalent of buy ratings are listed below. Here's what is being recommended:

Dicker Data Ltd (ASX: DDR)

In response to this computer hardware and software distributor's trading update, Morgan Stanley has upgraded Dicker Data's shares to an overweight rating with an improved price target of $11.00.

Eagers Automotive Ltd (ASX: APE)

This auto retailer released a trading update at its annual general meeting this week. In response, Macquarie retained its outperform rating on the ASX share with a trimmed price target of $27.10.

Goodman Group (ASX: GMG)

The team at Morgans was relatively pleased with this industrial property giant's third-quarter update. In response to the update, the broker reiterated its buy rating with a $36.00 price target.

Guzman Y Gomez Ltd (ASX: GYG)

Ord Minnett is positive on this quick service restaurant operator's decision to exit the US market. It responded to the news by retaining its buy rating with a $31.00 price target.

Life360 Inc. (ASX: 360)

Bell Potter was busy reviewing this location technology company's quarterly update this week. It thinks the post-results selloff was an overreaction and has created a buying opportunity. This is especially the case given its strong growth in paying circles (paid subscribers). Bell Potter put a buy rating and $33.00 price target on Life360's shares.

Liontown Ltd (ASX: LTR)

Over at UBS, its analysts are bullish on this lithium miner. This week, the broker retained its buy rating on Liontown's shares with a $2.70 price target.

Mineral Resources Ltd (ASX: MIN)

This mining and mining services company announced the expansion of its Mt Marion lithium operation last week. Bell Potter was pleased with the plan and has retained its buy rating with an improved price target of $80.50.

Nufarm Ltd (ASX: NUF)

Morgans was pleased with this agricultural chemicals company's half-year results and believes it is "on track to deliver strong underlying EBITDA growth in FY26." As a result, the broker believes Nufarm shares are "materially undervalued" at current levels. It has put a buy rating and $4.15 price target on them.

Paladin Energy Ltd (ASX: PDN)

Macquarie has turned bullish on this uranium producer. This week, the broker upgraded the ASX uranium share to an outperform rating with a $13.25 price target.

Web Travel Group Ltd (ASX: WEB)

UBS responded to this travel technology company's FY 2026 results by retaining its buy rating with a trimmed price target of $4.60. It felt the company delivered a solid result given the challenging finish to the year.

The post 10 ASX shares given buy ratings this week appeared first on The Motley Fool Australia.

The ASX 200 is up 1.5% to 8,721.7 points at the time of writing.

Reported expectations are that the ceasefire will be extended by 60 days and the Strait of Hormuz may be reopened.

Despite today's recovery, ASX 200 shares remain in the red for 2026.

However, the experts have flagged five ASX shares that they believe will outperform over the next 12 months.

Champion Iron Ltd (ASX: CIA) 

The Champion Iron share price is $4.51, down 5.7% today.

This ASX mining share is down 27% in the calendar year to date (YTD).

RBC Capital has a buy rating on Champion Iron shares with an $8.11 target.

This indicates a potential 80% upside ahead.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is $4.17, up 1.5% today.

This ASX consumer discretionary share has increased 12.4% YTD.

Canaccord Genuity has a buy rating with a $7.50 target.

This implies potential capital gains of 80% ahead.

Kingsgate Consolidated Ltd (ASX: KCN)

The Kingsgate share price is $6.10, up 4.1% today.

This ASX gold mining share is up 5.7% YTD.

Canaccord Genuity has a buy rating with a $10.30 target.

This implies a potential near-70% upside ahead.

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman y Gomez share price is $19.50, up 0.6% today.

This ASX 200 consumer discretionary share has fallen 9.6% in 2026.

After Guzman upgraded its earnings guidance and announced its US exit, Morgans renewed its buy rating.

The broker also raised its 12-month price target from $26.70 to $29.40.

This suggests capital growth of 51% over the next 12 months.

The broker said:

The exit removes a loss sooner than consensus anticipated and simplifies the story while the Australian operations are performing well and in line with expectations.

Stripping out the US losses results in material upgrades to our EBITDA and NPAT forecasts.

We maintain our BUY rating and upgrade our price target to A$29.40.

Australian Agricultural Company Ltd (ASX: AAC)

The Australian Agricultural Company share price is $1.31, up 0.5% today.

This ASX agriculture share is down 9.8% YTD.

Bell Potter has a buy rating with a $1.85 price target.

This implies a potential 41% capital gain over the next 12 months.

The broker said:

AAC delivered a record operating performance that was understated, due to the inclusion of $9m in flood related costs.

While costs are currently experiencing inflationary pressure (grain and oil), continued strong pricing in core offshore markets, uplifts in grainfed cattle capacity (FY27-28e sales program) and a larger herd are reason for optimism in future periods.

The post 5 ASX shares set to soar 40% to 80% in 12 months: experts appeared first on The Motley Fool Australia.

Meanwhile, brokers have indicated continued confidence in several ASX 200 shares, issuing renewed buy calls this week.

Let's review.

Goodman Group (ASX: GMG)

The Goodman share price is $31.39, up 2% today.

The ASX 200 real estate share has risen 2% in the calendar year to date (YTD).

Morgans renewed its buy rating on Goodman shares on Thursday.

The broker raised its 12-month share price target from $32.45 to $36.

This suggests a potential 15% upside ahead.

ANZ Group Holdings Ltd (ASX: ANZ)

The ANZ share price is $35.27, up 1.1% today.

This ASX 200 bank share has fallen 2.5% over the past month.

Citi reiterated its buy rating on ANZ shares with a price target of $40 on Monday.

This implies potential capital gains of 13% ahead.

Ora Banda Mining Ltd (ASX: OBM)

The Ora Banda share price is $1.37, up 7.6% today.

This ASX 200 gold share has fallen 10.9% YTD.

Canaccord Genuity reiterated its buy rating with a $2.25 target this week.

This implies a potential 64% upside ahead.

Codan Ltd (ASX: CDA)

The Codan share price is $42.13, up 2.7% today.

This ASX 200 tech share has rocketed 45% YTD.

Canaccord Genuity reaffirmed its buy rating with a 12-month target of $47.05.

This suggests a potential 11% upside ahead.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is $1.56, up 12% today.

This ASX bank share has fallen 14% YTD.

Citi renewed its buy rating on Judo shares with a $2.20 target today.

This implies potential capital growth of 40% over the next year.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is $72.99, up 3.1% today.

This ASX 200 mining share is up 32% YTD.

UBS renewed its buy rating on Mineral Resources shares this week.

The broker raised its share price target from $73 to $83.

This implies potential capital growth of 14% over the next year.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is $10.99, up 8.8%.

This ASX 200 travel share is down 27% YTD.

Jefferies has reaffirmed its buy rating on Flight Centre shares with a $14 target.

This suggests a potential 28% capital gain ahead. 

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman y Gomez share price is $19.49, up 0.5% today.

This ASX 200 consumer discretionary share has fallen 16% over six months.

Last week, the Mexican restaurant chain upgraded its earnings guidance and announced it was exiting the US.

Morgans renewed its buy rating on Guzman y Gomez shares on Monday.

The broker upped its price target from $26.70 to $29.40.

This suggests a potential 50% upside ahead.

Santos Ltd (ASX: STO)

The Santos share price is $7.77, down 1.1% today.

This ASX 200 energy share has lifted 26% due to higher oil and gas prices in 2026.

UBS renewed its buy rating on Santos shares with a $8.60 target on Thursday.

This suggests a potential 11% upside ahead.

The post 9 ASX 200 shares with renewed buy ratings this week appeared first on The Motley Fool Australia.

Over the past 12 months, the S&P/ASX 200 Index (ASX: XJO) has returned a relatively tepid 2.8%. But that's a stellar performance compared to these three crashing stocks.

Here's how these ASX 200 consumer focused stocks have performed over this same time:

• Online hotel booking travel agency Web Travel shares are down 52.3%
• Online furniture and homewares retailer Temple & Webster shares are down 75.6%
• Mexican fast food restaurant chain Guzman Y Gomez shares are down 36.1%

Atop some of their own operational issues, all three companies have faced stiff headwinds amid resurgent inflation and fast rising interest rates, which could see consumers continue to cut back on their discretionary spending.

And despite the past year's sharp falls, those share price losses might keep coming in the months ahead.

Here's why.

Temple & Webster, Web Travel, and Guzman Y Gomez shares facing headwinds

Bell Potter institutional sales and trading director Richard Coppleson believes that Australia is approaching a recession that could continue to see investors exit ASX consumer stocks.

According to Coppleson (quoted by The Australian Financial Review):

I have grave fears that we are heading down that [recession] road and my view remains the same for now: avoid domestic cyclicals, retail and anything tied to the consumer because this could get ugly, really ugly.

We have had the market slapping us in the face and warning us that it may be coming; the selling of retail stocks has been savage and going for a long time. The market can see it coming, even if we can't yet

Ten Cap's Jun Bei Liu also expects ASX consumer-oriented shares are likely to face ongoing headwinds this year.

Liu noted:

The consumer was already under pressure prior to recent geopolitical uncertainty, and we expect conditions to soften further as higher interest rates continue to work through the economy.

As if this isn't enough of a concern for Temple & Webster, Web Travel, and Guzman Y Gomez shares, the AFR reported that Morgan Stanley expects all three stocks to get booted from the ASX 200 as part of the S&P Dow Jones Indices quarterly rebalance next week.

Losing their spots on the benchmark Aussie index could place these beleaguered stocks under further selling pressure as ASX 200 Index tracking ETFs, and some fund managers limited to the larger end of the market, will have to sell their existing holdings.

The post Why Temple & Webster, Web Travel and Guzman Y Gomez shares could have even further to fall appeared first on The Motley Fool Australia.

At its core, value investing involves identifying companies whose shares are trading below what they are actually worth. 

This is based on their underlying financial performance, assets, and long-term earning potential.

Value investing usually targets mature, blue-chip stocks rather than small-caps. 

With that in mind, here are three ASX 200 stocks that could fall into this category. 

PEXA Group Ltd (ASX: PXA)

PEXA provides a digital conveyancing platform for real estate settlements in Australia. The company touts itself as offering world-first technology that facilitates near real-time tracking of settlements and faster clearance of funds.

This ASX 200 stock has struggled in 2026, falling 20% in that span. 

However analysis from brokers and experts indicates this quality company has likely been oversold. 

Despite falling significantly, its fundamentals still look strong. 

In its most recent 3Q26 results, the company posted steady growth in transaction volume and national market penetration. 

Looking ahead, it also reaffirmed NPAT guidance for FY26 at the top end of the $15m–$25m range.

Following these results, the team at Ord Minnett placed a buy rating and $20.00 price target on this ASX 200 stock. 

Ord Minnett was pleased with the ongoing momentum in Australian property transaction volumes. 

At the time of writing, PEXA shares are trading for around $10.70, indicating a potential 87% upside. 

Guzman Y Gomez Ltd (ASX: GYG)

It has been a volatile year for Guzman Y Gomez shares. 

The fast-casual Mexican food chain saw its share price fall 25% to start the year, before soaring last week on the back of news it had withdrawn from the US market. 

Investors apparently saw this move as a disciplined one from management, as the company refocussed its efforts to domestic growth. 

At the time of writing, GYG shares remain down 37% over the last year, and still firmly sit in undervalued territory according to experts. 

Morgans has put a buy rating and $29.40 price target on this ASX 200 stock, indicating an upside potential of 52% from current levels. 

Life360 Inc (ASX: 360)

Life360 is a United States-based software development company. The company's core product is a private family and friends social networking app that allows users to communicate and share their locations.

It was a stock market darling in 2025, but has since tumbled 42% year to date. 

Despite this fall, Bell Potter believes the ASX 200 company has a healthy base of paid subscribers, and is strategically implementing AI into its model. 

The broker has a recent price target of $33 on this ASX 200 stock, indicating an upside potential of 74%. 

The post 3 highly undervalued ASX 200 stocks to target in June with up to 87% upside appeared first on The Motley Fool Australia.

At the time of writing, the shares are up slightly, around 0.3%, to $19.46 each.

The increase means the Mexican-themed fast-food restaurant chain's shares have rebounded by around 22% from last week's slump. And they're 28% higher than a historic low recorded in early April.

For the year-to-date, however, the ASX consumer discretionary shares are still down around 10%, and they're 37% below trading levels seen a year ago.

Why is the stock rebounding?

After multiple headwinds and sombre sentiment so far this year, Guzman Y Gomez shares look to have changed trajectory.

The latest rebound this week follows news that the quick-service restaurant operator has decided to close its struggling US stores.

On Friday last week, the company announced it had exited the US market and had ceased trading in its Chicago restaurants, effective immediately. Management said that the decision was made after the business failed to meet key financial performance targets, despite solid efforts by the US team.

Founder and Co-CEO Steven Marks said that the board concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital.

It looks like investors were pleased with the announcement. This is likely because the company has made an effort to halt losses and refocus the business in Australia and Asia. 

A move like this reflects very positively on management because it isn't easy to admit defeat and change course when a strategy starts to fail. 

The move also allows Guzman Y Gomez to refocus its business expansion in markets where the brand is stronger, and the growth trajectory is more sound.

What are the company's growth plans now?

Instead, Guzman Y Gomez said its international expansion efforts will now focus on master franchise partners in Singapore and Japan. 

Both of these partners are delivering strong sales growth, with Singapore recently opening its 24th restaurant. The company still believes disciplined global expansion remains possible in the right markets.

The company's long-term goal remains to reach 1,000 restaurants in Australia, with segment EBITDA at 10% of network sales.

Is this the beginning of a share price resurgence?

Analysts are mostly bullish on Guzman Y Gomez shares over the next 12 months, with many expecting the latest rally to continue.

TradingView data shows that 10 out of 14 analysts have a buy or strong buy rating on the fast-food retailers' shares. Another two have a hold rating, and two rate the stock as a sell or strong sell.

The average $24.60 target price implies a potential 27% upside at the time of writing. Meanwhile, some are even more optimistic and tip the shares to jump 60% higher to $31 over the next 12 months.

The post Are Guzman Y Gomez shares a buy after rebounding 28% from a historic low? appeared first on The Motley Fool Australia.

The team at Morgans has been busy looking at a number of popular ASX shares this week.

Let's see if the broker is bullish or bearish on these names. Here's what it is saying:

Catapult Sports Ltd (ASX: CAT)

Morgans was pleased with this sports technology company's performance in FY 2026, highlighting that its revenue and annualised contract value (ACV) were strong. But the biggest positive was arguably that operating leverage is starting to show.

In response, Morgans has retained its buy rating with a $5.40 price target. It said:

CAT's FY26 result confirmed strong organic momentum, with revenue US$141m (+19% c/c) and closing ACV US$134m (+28% c/c) at the top of guidance, while Management EBITDA of US$25m (17.6% margin, +67% pcp) beat MorgansF. Operating leverage is now evident, with a 41% incremental margin (48% ex-acquisitions) in the period. ACV per pro team crossed US$30k for the first time whilst SaaS metrics improved. We trim FY27-FY29F Management EBITDA by 6-8% factoring in the result. Our price target is lowered to A$5.40 (from A$5.55) on these changes, offset to a degree by a valuation roll forward. BUY maintained.

Guzman Y Gomez Ltd (ASX: GYG)

The broker was pleased to see this quick service restaurant operator decide to close its US operations with immediate effect.

While this removes a potential growth engine, it also removes a loss-making part of the business that was weighing on its financial performance and simplifies its story.

Morgans has put a buy rating and $29.40 price target on Guzman Y Gomez shares. It said:

GYG announced the immediate exit of its US operations, a business that we forecast generated a significant FY26 underlying EBITDA loss and required materially more capital than could be justified by prospective returns. We view this as a positive catalyst, notwithstanding that the market has previously ascribed meaningful optionality value to the US as a long-term growth engine.

The exit removes a loss sooner than consensus anticipated and simplifies the story while the Australian operations are performing well and in line with expectations. Stripping out the US losses results in material upgrades to our EBITDA and NPAT forecasts. We maintain our BUY rating and upgrade our price target to A$29.40.

Wesfarmers Ltd (ASX: WES)

Morgans points out that the Bunnings and Kmart owner's shares have pulled back meaningfully from their highs.

It believes this leaves Wesfarmers shares trading at more reasonable valuation. As a result, the broker has upgraded its shares to an accumulate rating with an $81.10 price target. It said:

WES's share price has fallen 9% over the past 12 months and 7% over the past 6 months. The stock is now trading on a more reasonable 26.5x FY27F PE compared to a peak one-year forward multiple of ~37x in August 2025. We adjust FY26/27/28F group EBIT by +0%/+2%/+2%, primarily reflecting higher lithium earnings driven by updated price assumptions. Our target price increases slightly to $81.10 (from $80.50) and with a forecast 12-month TSR of 12%, we upgrade our rating to ACCUMULATE (from TRIM).

In our view, WES remains a high-quality business with a healthy balance sheet and a proven management team. Amid ongoing geopolitical uncertainty and cost-of-living pressures, its retail divisions (Bunnings, Kmart Group, Officeworks, Priceline) are well-placed to grow due to their strong value propositions. A sustained improvement in lithium prices should also support earnings over the medium term.

The post Buy, hold, sell: Catapult Sports, Guzman Y Gomez, and Wesfarmers shares appeared first on The Motley Fool Australia.

According to Trading Economics, the US and Iran are discussing a framework that would extend the ceasefire for two months.

Additionally, the US would lift its blockade of Iranian ports while Iran would reopen the Strait of Hormuz, a critical global oil and gas shipping channel.

While the world waits for further news, three experts give us their views on three ASX shares.

Let's take a look.

Catapult Sports Ltd (ASX: CAT)

The Catapult Sports share price is $3.28, down 2.1% today and down 35% over six months.

Morgans has reiterated its buy rating on this ASX tech share and shaved its 12-month target from $5.55 to $5.40.

The broker said: 

CAT's FY26 result confirmed strong organic momentum, with revenue US$141m (+19% c/c) and closing ACV US$134m (+28% c/c) at the top of guidance, while Management EBITDA of US$25m (17.6% margin, +67% pcp) beat MorgansF.

Operating leverage is now evident, with a 41% incremental margin (48% ex-acquisitions) in the period.

ACV per pro team crossed US$30k for the first time whilst SaaS metrics improved.

We trim FY27-FY29F Management EBITDA by 6-8% factoring in the result.

Tower Ltd (ASX: TWR)

The Tower share price is $1.58, up 1.9% today and down 6% over six months.

Mark Elzayed from Investor Pulse has a hold rating on this ASX financial share. 

On The Bull this week, Elzayed said: 

Tower is a New Zealand focused insurer benefiting from solid policy growth and improved underwriting conditions.

The company generated 15,000 new customers in the year to March 31, 2026, despite a subdued economic environment.

The company announced growth initiatives for the second half of 2026, including a partnership with Westpac Banking Corp (ASX: WBC) to offer general insurance products to its retail customers.

In our view, company performance and outlook supports a hold recommendation at this stage of the cycle.

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is $20.05, up 0.9% today and down 12% over six months.

Last week, the Mexican restaurant chain upgraded its earnings guidance and announced the abandonment of its US expansion plans.

Guzman y Gomez now expects underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of approximately $85 million, up 29% year over year, for FY26.

Citi has reiterated its sell rating on the ASX consumer discretionary share.

The broker increased its 12-month price target from $16.55 to $18.35.

The post Buy, hold, sell: Catapult Sports, Tower, 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 outlined below. Here's why they are bullish on them:

Catapult Sports Ltd (ASX: CAT)

According to a note out of Morgans, its analysts have retained their buy rating on this sports technology company's shares with a trimmed price target of $5.40. Morgans was pleased with Catapult's FY 2026 results. The broker highlights that the company's strong organic momentum has continued, with revenue increasing 19% to US$141 million and annualised contract value (ACV) ending at US$134 million, which is up 28% on the prior corresponding period. Morgans points out that operating leverage is now evident, with a 41% incremental margin in the period. It was also pleased to see average ACV per pro team cross US$30,000 for the first time and improving SaaS metrics. The Catapult share price is trading at $3.28 on Monday.

Guzman Y Gomez Ltd (ASX: GYG)

A note out of Bell Potter reveals that its analysts have upgraded this Mexican-focused quick service restaurant operator's shares to a buy rating with an improved price target of $24.50. Bell Potter has responded positively to news that Guzman Y Gomez is closing its struggling US operations. The broker has welcomed the US exit, noting that it was a previous overhang on the stock, and sees the switch to focusing on the core Australia opportunity as more beneficial to shareholders. Bell Potter is confident in the medium-term Australia opportunity, backed by a pipeline of 108 restaurants, as well as the successful master franchising operation in Singapore and Japan. The Guzman Y Gomez share price is fetching $20.02 at the time of writing.

Paladin Energy Ltd (ASX: PDN)

Analysts at Macquarie have upgraded this uranium producer's shares to an outperform rating with a $13.25 price target. According to the note, the broker highlights that Paladin Energy's shares have underperformed rivals recently. Macquarie thinks this has created a buying opportunity, noting that its shares are trading at a level that implies a sizeable discount to spot prices of U308. And while the broker concedes that there are production risks heading into FY 2027, it remains positive and believes it could be a great way to gain exposure to the uranium cycle and AI megatrend. The Paladin Energy share price is trading at $11.35 today.

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

As The Motley Fool's Laura Stewart reported last week, Guzman y Gomez decided to exit the US market after its business there failed to meet key financial performance targets, despite solid work by the local team. 

According to GYG, the Board remains confident in the strength and future opportunity of its Australian business, supported by a robust pipeline of new sites.

GYG shares rocket on US withdrawal news

The market reacted positively to this decision last week, as GYG shares jumped by more than 20%. 

This marked a strong rebound after GYG shares had slumped in 2026. 

Prior to last week's news, the share price had fallen 25% this year. 

As Kevin Gandiya reported on Sunday, investors likely saw this decision as a positive one due to the competitive US market. 

The disciplined decision may have prevented a much larger destruction of shareholder value down the track.

Brokers adjust their view on GYG shares

It's clear from last week's market reaction that investors saw the decision as a positive one. 

It seems brokers view it the same way. 

Following the US exit, the team at Bell Potter issued updated guidance on GYG shares. 

The broker said that although the Q3FY26 results outlined comparable sales momentum, progress in brand awareness, and operational execution, since then geopolitical events have significantly impacted consumer sentiment, likely exacerbating losses expected in the US. 

The company expects a one-off P&L impact of US$30-40m in FY26, including a cash component to be no greater than US$15m. The company has chosen to instead concentrate on its core Australian market, providing FY26 Australia segment (include Singapore and Japan) underlying EBITDA guidance of ~$85m (vs. BPe $85.7m, +29% YoY growth). 

They also reaffirmed 32 net new restaurant openings in Australia, with the long-term 1,000 restaurant target unchanged, supported by a near-term 108 restaurant pipeline.

Target price increases

Based on this guidance, Bell Potter has increased its price target to $24.50 (previously $22.10). 

The broker said higher EBITDA forecasts lifted its cash flow assumptions and increased the valuation. 

We welcome the US exit as a previous overhang removed on the stock and see the switch to focusing on the core Australia opportunity as more beneficial to shareholders. We are confident in the medium term Australia opportunity, backed by a pipeline of 108 restaurants, as well as the successful master franchising operation in Singapore and Japan.

Based on last week's closing price of $19.81, the updated price target indicates nearly 24% upside for GYG shares. 

The post What is Bell Potter's view on GYG shares after its US exit? appeared first on The Motley Fool Australia.

Prescient analysis

RBC Capital Markets issued a research note to its clients on Thursday – a day before the GYG announcement – which actually considered what would happen if the company decided to exit the US.

The market reaction to GYG's announcement indicates that RBC's theory was on the money.

RBC said in a follow up note on Friday:

On the US exit, we published a US exit scenario yesterday (relating to FY28) where we highlighted +15% upside potential to FY28 NPAT. The potential impact to FY27 from the exit on an underlying basis (ignoring exit costs) on our base case assumptions could be a +20% increase to FY27E NPAT, and could raise our NPAT CAGR FY25 – FY30 from 45.4% to 47.7%. We view the exit as a positive.

RBC said they believed the US business had "very low" prospects of success, "and the losses of the business were weighing down the earnings of the group so the sooner exit than anticipated is positive''.

Astoundingly RBC did not believe the US operations would break even until FY37.

Long growth runway

On a brighter note, they believe the Australian operations have plenty of upside, while they are sceptical about the company's goal of 1,000 restaurants over time.

They said in their original research note:

Our data science team (RBC Elements) performed a proprietary white space analysis to identify a potential 1,339 additional restaurants in Australia today. We apply sector knowledge and stricter cutoffs to population density, and see a ~550-650 additional restaurant opportunity, which should grow alongside population growth over time. We still do not believe prospectus forecasts for AU restaurants (1,000+) will be achieved by 2045, however consensus (VA: 969) now sits below this target and discounted cash flows are less sensitive to outer-year store count forecasts.

GYG also said on Friday that its operations in Singapore and Japan were performing well.

The company said:

In Singapore and Japan, our master franchise partners continue to deliver strong sales growth and healthy unit economics. Both markets are planning new restaurant openings in the next 12 months, with Singapore opening its 24th restaurant earlier this week. 

RBC said while there were no detailed numbers on these operations, the sentiment was positive.

RBC has a price target of $22 on GYG shares, which delivers some slight upside to the company's current share price of $19.81.

The post How much higher could Guzman Y Gomez shares go? appeared first on The Motley Fool Australia.