Brokers have reduced their ratings on many ASX 200 shares this week.

Let's take a look at their new ratings and 12-month share price targets.

Rio Tinto Ltd (ASX: RIO)

The Rio Tinto share price is $157.90, down 3.6% today.

Over the past 12 months, this ASX 200 mining share has climbed 47%.

Morgan Stanley downgraded Rio Tinto shares to a sell rating today.

The broker has a 12-month price target of $149.

This implies a potential 5% downside ahead.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is $10.15, down 3.6% today.

Magellan was one of the top 5 ASX 200 financial shares for capital growth in FY26, rising 13%.

The highlight of the year was Magellan's proposed merger with boutique investment bank, Barrenjoey Capital Partners.

Magellan and Barrenjoey completed the merger on 1 July. 

Morgans downgraded Magellan shares to a hold rating on Monday.

The broker lifted its 12-month price target slightly from $11.19 to $11.29.

This implies a potential 11% upside ahead.

Magellan will ask shareholders to vote on a company rebrand to Barrenjoey Group at the AGM in October.

Lottery Corporation Ltd (ASX: TLC)

The Lottery Corporation share price is $5.48, up 0.2% today.

This ASX 200 consumer discretionary share has risen 2.1% over the past year.

Citi downgraded the stock to a sell rating with a $5 target this week.

This indicates a possible 8% decline ahead.

Transurban Group (ASX: TCL)

The Transurban share price is $14.69, up 0.2% today.

This ASX 200 industrials share has risen 9.5% over 12 months.

UBS downgraded Transurban shares to a hold rating with a $14.50 target.

This suggests a potential 1% downside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is $11.01, down 3.7% today.

This ASX 200 gold share has stormed 51% higher over the past year.

Macquarie downgraded Evolution shares to a hold rating yesterday.

The broker lowered its 12-month price target from $13 to $12.

This suggests potential capital growth of 8% over the next year. 

Worley Ltd (ASX: WOR)

The Worley share price is $10.78, up 0.5% today.

This ASX 200 industrials share has tumbled 18% over the past 12 months.

Ord Minnett downgraded Worley shares from accumulate to hold with a $12.70 target on Wednesday.

This still implies a potential 18% upside ahead.

The broker said:

There remains considerable uncertainty over short-term earnings for Worley and its peers.

More broadly, we highlight the change in Worley's business mix, with a modest shift to engineering, procurement and construction (EPC) work, i.e. larger developments and responsibility for full project delivery, a business segment that is higher risk than traditional consultancy and advisory.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is 89 cents, up 0.2% today.

Judo shares were sold off in June after the bank downgraded its profit guidance.

Ord Minnett downgraded Judo shares from a buy to a hold rating yesterday.

The broker slashed its 12-month price target from $2.40 to $1.60.

This implies a potential 80% upside ahead.

Ord Minnett commented:

We also cut our recommendation on Judo to Hold from Buy despite the apparent value on offer, given uncertainty around the company's processes and the time it will take for management to rebuild market confidence.

Pro Medicus Ltd (ASX: PME)

The Pro Medicus share price is $209.07, down 1.4% today.

Pro Medicus shares hit a 52-week low of $107.75 on 24 February. Since then, the ASX 200 healthcare share has ripped 94% higher.

Jefferies thinks the stock has overshot. The broker downgraded Pro Medicus shares to a hold rating yesterday.

The broker lifted its share price target substantially from $147 to $192.60.

But with Pro Medicus shares already trading well above that, the broker recommends investors sit tight.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is $18.79, down 1% today.

This ASX 200 financial share has fallen 9.7% over 12 months.

Jarden downgraded Suncorp shares to a hold rating on Monday.

The broker raised its 12-month price target slightly from $19.10 to $19.60.

This implies a potential 4% upside ahead.

The post 9 ASX 200 shares downgraded by analysts this week appeared first on The Motley Fool Australia.

Here at The Fool, we've been super busy analysing the market's performance over FY26.

You might like to check out the 13 ASX 200 shares that doubled (or better) in value last year.

Or the best and worst-performing ASX 200 sectors. Or the No. 1 stock for capital growth in each sector.

In this article, we look ahead to FY27.

Experts reckon these ASX 200 shares could be in for an exceptional period of growth in the new financial year.

Here's why.

Mesoblast Ltd (ASX: MSB) 

The Mesoblast share price rose by a very respectable 18% in FY26 to finish at $1.96 on 30 June. 

Bell Potter reiterated its speculative buy rating last week with an unchanged target of $4.45. 

This implies the Mesoblast share price could more than double over the next 12 months. 

The broker said: 

The key overhang on the stock remains clinical trial risk with three massive valuation events over the next 18 months being adult GvHD, back pain and the BLA approval for the first indication in HF.

None of these are priced in.

The broker added:

The recent clinical trial fail by Cynata and its MSC in adult GvHD highlights yet again the risks involved in drug development.

MSB will shortly enrol the first of 180 patients in its randomised, controlled, double blind label expansion study for Ryoncil, also in adult GvHD, albeit with risk of failure mitigated by numerous factors.

These factors include a tried and tested potency assay, more aggressive dose (up to 300% higher than the Cynata product) and a 2nd line patient population that has progressed following steroid therapy.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price fell 40% in FY26 to finish at 94 cents.

Judo was smashed in the final month of FY26 after downgrading its profit guidance.

Morgans renewed its buy rating on the ASX 200 bank share with a drastic cut to its price target, which is now $1.47.

This implies the broker is confident of a strong bounce back of at least 55% over the next year.

Morgans said:

The share price drawdown was vicious (particularly considering the decline that had already occurred since February).

While the earnings growth outlook has moderated, we still forecast c.30% EPS growth across both FY26 and FY27 with the stock now trading on a c.6.8x PER (FY27F) and 0.6x P:BV (end-FY26).

A significant risk premium or probability of failure has been priced into the stock. BUY.

Zip Co Ltd (ASX: ZIP)

The Zip share price rose 5.5% to close out FY26 at $3.24 on 30 June.  

Jonathon Higgins from United Capital Partners (UCPS) says Zip shares are a buy for FY27.

Higgins is impressed with the buy now, pay later company's turnaround.

In a note, Higgins said Zip was on track to report annual cash earnings of more than $260 million just three years after a $50 million loss. 

Higgins says the market is underappreciating Zip's cost discipline and its growth prospects in the US.

UCPS has a 12-month target of $4.85. This implies a possible 50% upside over the next year.

Higgins said:

Sustainable earnings momentum against structural growth is hard to find on the ASX currently. 

The post 3 ASX 200 shares with 50% to 100% upside in FY27 appeared first on The Motley Fool Australia.

Are they buys, holds, or sells? Let's find out:

CAR Group Limited (ASX: CAR)

Ord Minnett has put a buy rating and $35.00 price target on this auto listings company's shares.

While it is facing a tough period, the broker remains positive and highlights its strong track record of resilience. It said:

CAR Group (CAR) has a strong track record of resilience through macroeconomic cycles, but current conditions suggest some modest near-term pressure. Reflecting this, Ord Minnett has trimmed its forecasts slightly, with our EPS estimate for FY26 and FY27 by around 1% for FY26–FY27. Our changes imply slightly softer growth than the broader market is anticipating. Our central assumption is that growth in the second half of FY26 moderates compared to the first half, before re-accelerating into FY27 and beyond.

Overall, currency movements and these modest operational adjustments translate to only minor forecast changes. On a constant currency basis, CAR is still expected to deliver around 10–11% net profit growth in FY27, or approximately 9% after foreign exchange impacts. Importantly, these macroeconomic pressures are likely to be temporary, with scope for growth to strengthen again from FY27.

Judo Capital Holdings Ltd (ASX: JDO)

The broker isn't feeling as positive on this small business lender. In response to a disappointing trading update, Ord Minnett downgraded Judo Capital shares to a hold rating with a heavily reduced price target of $1.60.

Commenting on the downgrade, it said:

The speed at which conditions for these three specific exposures deteriorated – none were on a watch list – is a significant concern for Ord Minnett and the broader market, raising questions as to just how rigorous and reliable Judo's monitoring processes are, not to mention management's credibility. We also highlight the large size of these particular loans – the combined exposure for Judo is $80 million, versus its average SME loan size of around $3 million – and question why Judo was making such large individual loans.

Post the trading update, we have cut our EPS estimates by 9.4%, 19.6% and 7.6% for FY26, FY27 and FY28, respectively, which drives a steep downgrade of our target price to $1.60 from $2.40. We also cut our recommendation on Judo to Hold from Buy despite the apparent value on offer, given uncertainty around the company's processes and the time it will take for management to rebuild market confidence.

Worley Ltd (ASX: WOR)

Worley is another ASX share that Ord Minnett has downgraded. It has cut its rating on the engineering company's shares to a hold rating with a reduced price target of $12.70.

Ord Minnett has concerns about its near-term earnings outlook. It explains:

There remains considerable uncertainty over short-term earnings for Worley and its peers. More broadly, we highlight the change in Worley's business mix, with a modest shift to engineering, procurement and construction (EPC) work, i.e. larger developments and responsibility for full project delivery, a business segment that is higher risk than traditional consultancy and advisory.

‍Worley does not have the same exposure as the EPC sector's major operators, e.g. Italy's Maire or France's Technip Energies, but its risk profile has increased versus consulting and advisory peers such as US-based Jacobs Solution and Fluor Corp. There is apparent value on offer in Worley but the uncertainty around near-term earnings, and what we see as an increasing risk profile, mean we cut our recommendation to Hold from Accumulate.

The post Buy, hold, sell: CAR Group, Judo Capital, and Worley shares appeared first on The Motley Fool Australia.

At the time of writing, the ASX bank stock is down slightly, around 0.1%, to $164.57 a piece. For the year to date, however, the shares are still around 2% higher.

CBA shares rocked higher in mid-February after the bank posted an unexpectedly-positive half-year FY26 result. The bank shares were relatively unchanged over the next few months, even in the face of higher inflation and headwinds flowing out from volatility in the Middle East. 

But then, in early-May, CBA shares tanked following a disappointing third-quarter capital update. Investors were spooked by the results at the time and rushed to sell up their shares.

The downturn was short lived though. CBA shares rebounded by the end of May and have stayed relatively consistent since.

It's clear that CBA shares are still in favour. It's likely CBA's safe-haven appeal that continues to appeal to investors. In times of market chaos, investors typically flock to well-known and large-scale stocks.

The problem is that CBA shares have been widely considered overvalued for some time now. CBA is currently trading at a price-to-earnings (P/E) ratio over 26, making it one of the most expensive banking stocks globally. The bumper price tag isn't supported by the bank's core strength or earnings either.

Brokers are bearish, with some expecting CBA shares to fall to just $90 a piece over the next 12 months. 

I wouldn't add CBA shares to my portfolio right now. But the good news is that there are two other ASX bank shares tipped to outperform this year.

I'd buy these ASX bank stocks instead

Analysts expect all the big four banks' shares, and some mid-tier bank stocks, to decline throughout the second half 2026. 

Data shows that experts think CBA shares carry the most downside risk, with a downside of up to 45% at the time of writing, to $90 each.

But there are two ASX bank shares tipped to travel in the opposite direction this year.

Macquarie Group Ltd (ASX: MQG) is the only S&P/ASX 200 Index (ASX: XJO) bank share that brokers think can keep climbing higher over the next 12 months. Market Index data shows the majority of brokers have a buy rating on Macquarie shares. The $253.54 average target price implies a potential 1% upside, at the time of writing.

And then there is Judo Capital Holdings Ltd (ASX: JDO). Brokers are very bullish on the outlook for Judo Bank shares, with the majority holding a buy rating, according to Market Index data. The average $1.60 target price currently implies an impressive 80% potential upside ahead over the next 12 months.

What sets Macquarie and Judo Bank apart from the rest?

Macquarie is the fifth-largest ASX 200 bank by market capitalisation, and it is incredibly diversified. The bank does more than just banking; it also provides financial, advisory, investment, and fund management services across 34 markets globally. 

That means it has exposure to commodities trading, infrastructure deals, asset management, and capital markets across multiple regions.

Unlike CBA, Macquarie isn't reliant on lending margins. Its diversity also means that it can remain stable, or even benefit, when markets are going through periods of volatility.

Meanwhile, Judo Bank works differently to its peers. Unlike many other banks in the sector, Judo Bank was built to focus on providing financial services and lending to small and medium enterprises (SMEs). These SMEs have annual turnovers of up to $100 million.

The bank was founded in 2016 and received its banking license in 2019. That means it's relatively new in comparison to the majors. It was listed on the ASX in 2021.

The bank provides business lending starting at $250,000 and touts itself as providing more flexibility than major banks. It also offers personal term deposit products and home loans.

The post Forget CBA shares, I'd buy these ASX bank stocks instead appeared first on The Motley Fool Australia.

At the time of writing, the Judo share price is up 2.27% to 90 cents. 

Despite the small lift today, the ASX bank stock is still down roughly 37% over the past month and almost 50% in 2026. 

That follows a massive 40% plunge on 25 June after Judo updated the market on its asset quality and trading performance. 

So, why is the stock getting attention again today?

Morgan Stanley wants more answers

According to The Australian, Morgan Stanley analysts have cut their target price on Judo by around 32% to $1.25.

The broker said Judo's June update hurt confidence in its near-term earnings outlook. 

It also raised questions about its risk appetite, lending standards, broker use, and early risk detection.

Morgan Stanley lowered its earnings per share (EPS) forecasts for Judo by 10% to 22% across FY26 to FY28.

The broker is now forecasting FY27 profit before tax of around $179 million. That is well below Judo's own FY27 guidance range of $210 million to $220 million. 

The analysts also want more disclosure around Judo's loan book, particularly its loans to property operators and construction.

The report pointed to $2.7 billion of loans to property operators and $1 billion to construction.

What spooked the market in June

Judo's update last month showed FY26 cost of risk is now expected to be between $116 million and $122 million.

The company said this was mainly due to higher specific provisions for 3 customer exposures.

FY26 profit before tax is expected to be between $163 million and $169 million, which still represents 30% growth from FY25.

Judo also said it remains on track for its existing FY26 guidance for gross loans and advances, net interest margin, and cost-to-income ratio. 

However, the profit growth isn't the main issue right now. The focus is on whether the bad loans are isolated.

Keep in mind that Judo is a specialist business lender, not a major retail bank. Its model is built around lending to small and medium-sized businesses, often through relationship bankers.

Hence, when credit quality starts to slip, questions naturally turn to the rest of the book.

Foolish Takeaway

Today's rise looks more like bargain hunting than a proper recovery. 

The share price has bounced from its recent lows, but Judo still needs to show these credit issues are under control.

The FY26 results in August should give investors a clearer view of the loan book, provisions, margins, and whether management can rebuild confidence. 

Until then, Judo shares may keep getting some support from bargain hunters after the heavy sell-off.

But don't expect the share price to rally to previous levels just yet. 

The post Judo Bank shares rise despite Morgan Stanley price target cut appeared first on The Motley Fool Australia.

As the new financial year begins, brokers are running their rulers over several ASX shares and adjusting their ratings and 12-month price targets. 

Let's take a look at some downgrades from the experts this week. 

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is $76,45, down 2.2% today and down 32% over 12 months. 

UBS downgraded the ASX consumer discretionary share to a hold rating on Tuesday. 

The broker shaved its 12-month price target from $85 to $83.

This suggest a potential 8% upside ahead.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is $11.80, up 2.1% today and up 51% over 12 months. 

UBS downgraded the ASX 200 gold share to a hold rating on Tuesday.

The broker cut its 12-month price target from $14 to $12.60.

This implies a potential 7% upside ahead.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is $7.50, up 0.2% on Thursday and up 34% over 12 months. 

UBS downgraded the ASX coal share to a hold rating on Tuesday. 

The broker lowered its 12-month price target from $9.10 to $8.70.

This indicates possible capital gains of 16% over the next year. 

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is 90 cents, down 1.4% today and down 44% over 12 months. 

UBS downgraded Judo shares to a hold rating on Monday.

The broker has a 12-month target price of $1.05, indicating a potential 17% upside over FY27. 

Data#3 Ltd (ASX: DTL)

The Data#3 share price is $9.54, up 1.2% today and 25% higher over 12 months. 

Morgan Stanley downgraded the ASX tech share to a hold rating with a $10 target on Wednesday. 

This suggests potential capital growth of 5% over the next year. 

South32 Ltd (ASX: S32)

The South32 share price is $4.23, down 1.2% today and up 36% over 12 months. 

Morgans downgraded its rating on the ASX 200 mining share from accumulate to hold.

The broker cut its price target from $5 to $4.50, suggesting a potential 6% upside ahead.

Morgans said: 

S32 has agreed to sell its entire ali business for total consideration of US$5.6bn (US$4.1bn upfront), and transfer of US$1.2bn closure/rehab liabilities.

Our view on S32's aluminium sale is genuinely mixed. It leaves S32 a simpler and, in important respects, a better business, but also a smaller and less valuable one.

We reduce our valuation on S32's ali assets to in line with the agreed Alcoa deal… As a result we update our rating to HOLD (from Accumulate).

Turaco Gold Ltd (ASX: TCG)

The Turaco Gold share price is 48 cents, up 6.7% today and up 4% over 12 months. 

Morgans downgraded the ASX gold share from a buy to a speculative buy rating this week.

The broker slashed its 12-month price target from $2.19 to $1.18.

This still implies a potential 145% upside ahead.

The post 7 ASX shares downgraded by brokers this week appeared first on The Motley Fool Australia.

When one expert thinks an ASX share is attractive, that's interesting. When multiple analysts think a stock is a buy, that could suggest there's a clear, potentially market-beating opportunity.

Guzman Y Gomez Ltd (ASX: GYG)

GYG is an Australian-founded Mexican food business with a presence in Japan and Singapore.

The company provides consumers with nutritious, healthy food, prepared more quickly than most of its fast-food rivals.

It has proven effective at extending sales throughout the day, with a good value breakfast range, and at extending its opening hours for late-night customers too (with some restaurants now 24h).

The business is growing its network sales at a rapid pace, with both strong like-for-like (LFL) sales growth at existing locations and an expanding network in both Australia and Asia.

In the third quarter of FY26, GYG reported Australian network sales growth of 19.7% to $320.4 million and Asian network sales growth 15% to $21.5 million. As the company gets larger, GYG expects its profit margins will rise, giving it further earnings growth potential.

According to CMC Invest, there have been 10 ratings on the ASX share within the last three months, with eight of those being a buy, one being a hold and one being a sell. The average price target on GYG shares is $24.24, suggesting a possible rise of 11% within the next 12 months.

Judo Capital Holdings Ltd (ASX: JDO)

Another ASX share that is highly rated by analysts after its plunge is Judo, a bank focused on lending to small and medium enterprises. It also offers term deposits to individuals, SMSFs and businesses to help fund the loans.

The Judo share price fell 40% after giving an update that three of its loans were facing difficulties and therefore it will face a hit to profitability this year.

Even so, it said it's still expecting profit to rise 30% year over year in FY26. The company also gave guidance that it expects profit to rise another 30% in FY27 to a range of between $210 million and $220 million.

According to CMC Invest, within the last three months, there has been 10 ratings on the business, of which eight were buys and two were a hold.

Of those 10 analysts, the average price target is $1.69. That implies those analysts think the Judo share price could rise by 83% within the next 12 months.

Of course, these aren't the only two ASX shares that analysts like right now.

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

The outperforming stock in question is National Australia Bank Ltd (ASX: NAB). 

NAB shares closed out May trading for $37.33. When the closing bell sounded on 30 June, shares were swapping hands for $37.86. That saw the NAB share price up 1.4% in the month just past. 

ANZ Group Holdings Ltd (ASX: ANZ) shares also finished June in the green but gained just less than the ASX 200.

ANZ shares closed May trading for $35.20 and ended June at $35.35 apiece, up 0.4%.

Commonwealth Bank of Australia (ASX: CBA) shares went the other direction.

Shares in Australia's biggest bank closed on 29 May trading for $165.02. On 30 June, shares closed the day at $164.62 each. This put the CBA share price down 0.2% in the month just past. 

Which brings us to Westpac Banking Corp (ASX: WBC). Westpac shares closed May at $36 and ended June trading for $35.21 each, putting the Westpac share price down 1.2% for the month.

What moved the big four ASX 200 bank stocks in June?

There was no price-sensitive news out from any of the big four ASX 200 bank stocks in June.

But investors breathed a sigh of relief on 16 June when the Reserve Bank of Australia kept interest rates on hold at 4.35%.

Still, mortgage holders and ASX investors alike have already suffered through three RBA interest rate hikes this year.

Coupled with stubbornly elevated inflation and the Federal Budget's changes to negative gearing policies for residential homes, a number of analysts have cautioned over lower demand for mortgage loans and increasing bad debts. 

According to Regal Funds portfolio manager Mark Nathan:

With banks, you always get a multiplier effect. If houses lose a bit of value, people don't feel as wealthy, they spend less money, they invest less, so you get a multiplier effect with the banks.

That's the big change since the budget. The market is less comfortable with what was previously a reasonable growth outlook and downgrading that to a more modest growth outlook.

Judo bank gets walloped

Turning to one of the smaller ASX 200 bank stocks, Judo Capital Holdings Ltd (ASX: JDO) shares got smashed in June, closing the month down a sharp 39.7%. 

The carnage followed a market update on 25 June, in which management increased Judo's forecast FY 2026 cost of risk to between $116 million and $122 million.

Judo also downgraded its FY 2026 profit before tax guidance to be between $163 million and $169 million. That's down from prior FY 2026 profit expectations of between $180 million to $190 million.

The post What happened with ASX 200 bank stocks CBA and Westpac shares in June? appeared first on The Motley Fool Australia.

The shares fell more than 40% in the session last Thursday and have failed to recover substantially since then.

So are they now going for a bargain? The team at Morgans seems to think so. We'll get to their analysis and price target for the company shortly.

First, let's look at what the company announced.

Tough times for the challenger bank

Judo said in its statement to the ASX last week that its cost of risk would now be $116-$122 million, "reflecting an increase in specific provisions primarily driven by three exposures across different sectors that have recently emerged, as a result of customer specific developments''.

Judo said it now expected profit before tax to be $163-$169 million, or about 30% up on FY25. This is down from previous guidance of $180-$190 million.

The company also said profit in FY27 was expected to be $210-$220 million, up another 30%, "as the Bank continues to deliver strong growth and operating leverage during a period of economic uncertainty''.

Judo Chief Executive Officer Chris Bayliss said:

We continue to see strong underlying momentum in the business. Recent credit outcomes have been driven by a small number of customers, who we are actively working with. These exposures have deteriorated subsequent to the customer-by-customer review undertaken in the third quarter and reflect recent, borrower-specific developments. "While today's update is partly a result of the macro environment, it is nevertheless disappointing. Regardless, we remain confident in the strength of our underlying business and the quality of the portfolio. We have a proven customer value proposition, are profitable and well capitalised, and have a clear path to achieving a return on equity in the low-to-mid teens.

Shares looking cheap

Morgans has this week released a research note looking at Judo and said the share price decline after the announcement was "vicious" especially considering the weakness in the share price since February.

The analyst team said Judo's forecast for FY27 earnings was materially below consensus forecasts of $255 million, and said, "the miss is more stark when considering that two years ago consensus was expecting $291 million profit before tax for FY27''.

The analysts said they had cut their price target for Judo Capital shares by 32% to $1.47, which is still well above the current level of 91 cents.

They added:

Short-term target price $1.47/share, but we think by the end of this decade JDO could be worth over $2/share. JDO is higher risk and more cyclically exposed than the major banks but investors are compensated by higher potential returns at current prices.

The post Is it time to buy the dip on Judo Capital shares? 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:

ANZ Group Holdings Ltd (ASX: ANZ)

According to a note out of Citi, its analysts have retained their buy rating and $39.25 price target on this banking giant's shares. The broker thinks proposed changes to negative gearing could have a big (and negative) impact on mortgage lending in the near term. In fact, Citi expects mortgage credit growth to slow to just 3.5% from 7%. However, the good news is that the broker believes business lending will be robust, especially given AI-related project investments. Citi thinks this bodes well for ANZ due to its extensive business banking division. The ANZ share price ended the week at $35.04.

Judo Capital Holdings Ltd (ASX: JDO)

A note out of Morgans reveals that its analysts have retained their buy rating on this small business lender's shares with a heavily reduced price target of $1.47. The broker acknowledges that Judo Capital downgraded its earnings guidance for FY 2026. While this was a letdown, the biggest disappointment for Morgans was the company's guidance for FY 2027. It notes that this guidance fell well short of consensus estimates for next year. Nevertheless, the broker thinks the doom and gloom and vicious selloff were an overreaction. Morgans highlights that Judo Capital's shares are now trading at under 7x FY 2027 earnings. This is despite its guidance pointing to 30% earnings growth across both FY 2026 and FY 2027. Morgans suspects that the market has now priced in a significant risk premium or probability of failure. The Judo Capital share price was fetching 88 cents at Friday's close.

WiseTech Global Ltd (ASX: WTC)

Analysts at Ord Minnett have retained their buy rating on this logistics software company's shares with a reduced price target of $60.00. According to the note, Ord Minnett believes the company could be struggling to convert customers to its new pricing model. It suspects that customers are not in a rush to switch to the new model and could be waiting until the end of their contracts before doing so. As a result, it has downgraded its revenue assumptions meaningfully to reflect this. Nevertheless, Ord Minnett remains positive and sees significant value in its shares at current levels, even after cutting its valuation. The WiseTech Global share price ended the week at $31.55.

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

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

Beach Energy Ltd (ASX: BPT)

Morgans hasn't been impressed with this energy producer's operational performance. And, unfortunately, it believes the trend will continue and suspects that it could fall short of guidance in FY 2027.

As a result, it recently downgraded Beach Energy shares to a sell rating with a reduced price target of 81 cents. This compares to its current share price of 85 cents. It said:

We mark-to-market our second half estimates for weaker spot gas prices, while also trimming our Waitsia output forecasts for FY26-28 on continuing struggles. After downgrading our Q4 estimates for daily production rates, we see potential for BPT to fall just short of its FY27 group production guidance.

While BPT's share price has already been under pressure, its earnings outlook has declined at a faster rate, with its forward EV/EBITDA actually rising. We downgrade our recommendation to Sell (from Hold) with a revised target price of A$0.81 (was A$1.10).

Flight Centre Travel Group Ltd (ASX: FLT)

While this travel agent recently downgraded its earnings guidance, Morgans has been far more forgiving.

It appears to believe that the worst is now behind the company and that a sharp rebound in earnings and its valuation could be on the cards soon.

This has seen Morgans put a buy rating and $14.80 price target on its shares. This is meaningfully higher than the current Flight Centre share price of $11.99. It commented:

Given recent downgrades from other travel industry peers due to the conflict in the Middle East, FLT's downgrade wasn't a surprise. Given its balance sheet strength and depressed share price, a new up to A$200m share buyback was announced. We have made only minor changes to our forecasts given FLT's guidance was broadly in line with our previous forecast.

While a peace agreement and eased travel restrictions are positive, we think 1H27 will still be challenging. We forecast a strong recovery in 2H27. If it wasn't for this conflict, FLT would have had a great year given its results for the first nine months were strong. We are buyers of FLT because when operating conditions ultimately improve, both its earnings and share price will be materially higher.

Judo Capital Holdings Ltd (ASX: JDO)

Another ASX share the broker is sticking with after an earnings guidance downgrade is small business lender Judo Capital.

It thinks the selling has been overdone and has retained its buy rating with a reduced price target of $1.47. This compares to the current Judo Capital share price of 88 cents. It said:

JDO downgraded its FY26 PBT guidance by c.8% at the mid-point. Even more disappointing was first-time FY27 PBT guidance which was c.16% below expectations at the mid-point. The share price drawdown was vicious (particularly considering the decline that had already occurred since February).

While the earnings growth outlook has moderated, we still forecast c.30% EPS growth across both FY26 and FY27 with the stock now trading on a c.6.8x PER (FY27F) and 0.6x P:BV (end-FY26). A significant risk premium or probability of failure has been priced into the stock. BUY.

The post Buy, hold, sell: Beach Energy, Flight Centre, and Judo Capital shares 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 right now:

Goodman Group (ASX: GMG)

According to a note out of Citi, its analysts have retained their buy rating and $40.00 price target on this industrial property company's shares. The broker highlights that over in the UK, Prologis (NYSE: PLD) has made a takeover offer for industrial property company Segro (LSE: SGRO). Citi believes this offer highlights the strategic value of Goodman's portfolio of development sites and data centre pipeline. It also shows the scarcity of these types of assets as global data centre demand accelerates. And given its belief that Goodman is better positioned than many of its peers, with a significant development pipeline, the broker sees plenty of value in the company's shares at current levels. The Goodman share price is trading at $31.98 on Friday afternoon.

Judo Capital Holdings Ltd (ASX: JDO)

A note out of Morgans reveals that its analysts have retained their buy rating on this small business lender's shares with a heavily reduced price target of $1.47. The broker notes that Judo Capital has downgraded its earnings guidance for FY 2026. However, the biggest disappointment for Morgans was the company's guidance for FY 2027, which fell well short of consensus estimates. Nevertheless, the broker thinks the vicious selloff has been an overreaction. It highlights that Judo Capital's shares are trading at under 7x FY 2027 earnings despite its guidance pointing to 30% growth across both FY 2026 and FY 2027. Morgans suspects that the market has now priced in a significant risk premium or probability of failure. The Judo Capital share price is fetching 88 cents at the time of writing.

Minerals 260 Ltd (ASX: MI6)

Analysts at Bell Potter have retained their speculative buy rating and $1.35 price target on this gold explorer's shares. According to the note, the broker was pleased with drilling results from the ongoing resource definition program at its 100% owned, 4.5Moz Bullabulling Gold Project. Bell Potter highlights that they continue to confirm and upgrade the confidence within the current mineral resource estimate and build the case for extensions beyond it. The broker also notes that the company holds ~$250 million in cash, which it believes is sufficient to fund it through to a final investment decision in early 2027. The Minerals 260 share price is trading at 83 cents on Friday.

The post Brokers name 3 ASX shares to buy right now appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are ending the week in the red:

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is down almost 11% to $4.08. This is despite the respiratory imaging technology company announcing that its non-contrast ventilation-perfusion imaging solution, CT:VQ, has been approved by the Therapeutic Goods Administration (TGA). The TGA has also included the product in the Australian Register of Therapeutic Goods (ARTG), which enables commercial deployment across Australia. Broad weakness in the tech sector on Friday could be overshadowing this news.

Centuria Capital Group (ASX: CNI)

The Centuria Capital share price is down 2.5% to $1.98. This has been driven by the property company's shares going ex-dividend this morning for its latest payout. Eligible shareholders can now look forward to receiving Centuria Capital's 5.2 cents per share final dividend in a couple of months. The company is expecting to make the payment on 27 August.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price is down a further 1.5% to 90 cents. This small business lender's shares have been sold off this week after it increased its cost of risk and downgraded its earnings guidance. Judo Capital revealed that it now expects its FY 2026 cost of risk to be in the range of $116 million to $122 million. This has been caused by three exposures across different sectors that have recently emerged. As for its earnings, Judo Capital now expects its profit before tax in FY 2026 to be between $163 million and $169 million. This is down from its previous guidance of between $180 million and $190 million. The company's CEO, Chris Bayliss, said: "While today's update is partly a result of the macro environment, it is nevertheless disappointing."

Worley Ltd (ASX: WOR)

The Worley share price is down 4% to $10.64. This may have been driven by the release of a broker note out of Ord Minnett. According to the note, the broker has downgraded the professional services company's shares to a hold rating (from accumulate) with a trimmed price target of $12.70 (from $13.10). This was driven by a profit guidance downgrade this week due to the negative impacts of the Middle East conflict.

The post Why 4DMedical, Centuria Capital, Judo Capital, and Worley shares are dropping today appeared first on The Motley Fool Australia.

Here's why investors have been bidding down the ASX 200 heavyweights this week.

Judo shares plunge on profit downgrade

Judo shares are down 2.2% in intraday trade today, changing hands for 90 cents apiece. That sees shares in the ASX 200 challenger bank down a sharp 39.9% since last Friday's close.

All of those losses can be pinned to Thursday's decidedly underwhelming market update.

Judo shares closed down a precipitous 40.4% yesterday after the bank increased its forecast full-year FY 2026 cost of risk to between $116 million and $122 million.

And investors were overheating their sell buttons after Judo downgraded its FY 2026 profit before tax guidance to be between $163 million and $169 million. While that still represents year-on-year profit growth of around 30%, the revised guidance was down from prior FY 2026 profit expectations of between $180 million and $190 million.

Commenting on the downgrade, Judo Bank CEO Chris Bayliss said:

We continue to see strong underlying momentum in the business. Recent credit outcomes have been driven by a small number of customers, who we are actively working with.

DroneShield shares losing altitude

DroneShield shares also had a week to forget, though not nearly as bad as Judo shares.

Shares in the ASX 200 drone defence company are down 4.8% at the time of writing, trading for $2.30 each. That sees the DroneShield share price down 16.4% since last Friday's close.

There was no market-sensitive news out this week to explain the sharp decline. Though the company did announce the appointment of retired Rear Admiral Lee Goddard as an independent non-executive director.

But investors may have been favouring their sell buttons amid expectations that the peace deal in the Middle East could impact future demand for drone defence systems.

Which brings us to…

WiseTech shares sink on new White allegations

Joining DroneShield and Judo shares on the decline this week is WiseTech.

Shares in the ASX 200 logistics software solutions company are down 1.7% at the time of writing, trading for $30.85 apiece. That sees the WiseTech share price down 16.4% for the week.

WiseTech shares plunged 18.4% on Monday following concerning new media reports involving founder and executive chairman Richard White.

Investors were heading for exit following news that the Australian Federal Police are investigating White over allegedly exploiting a female employee's immigration status and financial position, and providing false information on a visa application.

The post Why DroneShield, WiseTech and Judo shares are leading the ASX 200 lower this week appeared first on The Motley Fool Australia.

The ASX bank stock extended its heavy sell-off on Friday morning, falling another 2% to $0.90 after already shedding around 40% over recent trading sessions.

That leaves Judo Capital shares down roughly 49% in 2026 and 42% over the past 12 months. By comparison, the S&P/ASX 200 Index (ASX: XJO) has gained approximately 2.2% over the same period.

So, what's behind the dramatic collapse?

Investors didn't like Judo's latest update

The sell-off began after Judo released revised expectations for FY 2026 on Thursday that left investors questioning the bank's near-term outlook.

While management still expects earnings to grow this financial year, it also revealed that bad debt costs are rising faster than previously anticipated.

The biggest concern was the bank's updated cost of risk guidance. Judo now expects its FY 2026 cost of risk to come in between $116 million and $122 million, reflecting an increase in specific loan provisions.

Management of Judo Capital shares said the higher provisioning relates primarily to three individual customer exposures across different industries that have deteriorated following customer-specific developments.

Although the issues appear concentrated rather than widespread, investors rarely welcome surprises when it comes to credit quality.

The bank also expects loans that are either more than 90 days overdue or classified as impaired to rise to around 3% of gross loans and advances by 30 June. That's another sign that some borrowers are finding conditions increasingly challenging.

There were a few positives

The update wasn't entirely negative. Judo said its collective provision coverage should remain broadly unchanged from its third-quarter trading update, equating to 94 basis points of gross loans and advances.

Management also noted that current provisioning includes additional overlays designed to protect against ongoing macroeconomic uncertainty across vulnerable sectors.

In other words, Judo Capital believes it has built a reasonable buffer against further deterioration.

Profit growth is still expected, just not as much

Perhaps the biggest disappointment for investors in Judo Capital shares was a downgrade to earnings guidance. Judo now expects FY 2026 profit before tax of between $163 million and $169 million.

While that would still represent approximately 30% growth on FY 2025, it falls well short of the bank's previous guidance of $180 million to $190 million.

Looking further ahead, management of the $2 billion ASX share expects FY 2027 profit before tax of between $210 million and $220 million, implying another year of roughly 30% earnings growth despite ongoing macroeconomic and geopolitical uncertainty.

Chief Executive officer Chris Bayliss acknowledged the disappointment but maintained confidence in the business. He said the latest update was partly driven by the broader economic backdrop but stressed that Judo Capital remains profitable, well capitalised, and has a clear pathway to delivering a return on equity in the low-to-mid teens.

What's next for Judo Capital shares?

For now, investors appear focused on rising credit losses rather than future profit growth.

The market has become far less forgiving of banks reporting deteriorating loan quality, particularly when expectations were already high.

That said, Judo's long-term growth story hasn't disappeared overnight. The lender continues to grow its business banking franchise, remains profitable, and is forecasting another two years of double-digit earnings growth.

The post What on earth's going on with Judo Capital shares? appeared first on The Motley Fool Australia.

This week, brokers have renewed their buy ratings and updated their 12-month price targets on several ASX 200 shares.

Let's take a look.

Judo Capital Holdings Ltd (ASX: JDO)

The Judo share price is 90 cents, down 1.6% today.

This ASX 200 bank share was smashed yesterday, collapsing 46% on a profit guidance downgrade.

Today, Morgans renewed its buy rating on Judo shares but slashed its 12-month target price from $2.15 to $1.47.

This implies a potential bounce back of more than 60% over the next year.

Morgans said:

JDO downgraded its FY26 PBT guidance by c.8% at the mid-point. Even more disappointing was first-time FY27 PBT guidance which was c.16% below expectations at the mid-point.

The share price drawdown was vicious (particularly considering the decline that had already occurred since February).

While the earnings growth outlook has moderated, we still forecast c.30% EPS growth across both FY26 and FY27 with the stock now trading on a c.6.8x PER (FY27F) and 0.6x P:BV (end-FY26).

A significant risk premium or probability of failure has been priced into the stock. BUY.

BHP Group Ltd (ASX: BHP)

The BHP share price is $57.17, up 1.1% today.

The market's largest ASX 200 mining share has lifted 29% in the year to date (YTD).

BHP shares have dropped almost 10% since last Thursday amid news of a $2.8 billion cost blow-out at its Jansen potash project.

Morgan Stanley reiterated its buy rating on BHP shares with a price target of $67.50.

This implies a potential 14% upside ahead.

Qantas Airways Ltd (ASX: QAN)

The Qantas share price is $10.65, down 0.6% on Friday.

The ASX 200 airline share has ripped 18% over the past month.

Ord Minnett reiterated its buy rating on Qantas shares this week.

The broker raised its 12-month price target from $10.50 to $11.50.

This suggests a potential 8% upside ahead.

Goodman Group (ASX: GMG)

The Goodman share price is $32.06, down 0.4% today.

The ASX 200's biggest real estate share has risen 4% YTD.

Citi renewed its buy rating on Goodman shares with a $40 target yesterday.

This suggests a potential 25% upside ahead.

NextDC Ltd (ASX: NXT)

The NextDC share price is $14.44, down 1.9% today.

This ASX 200 tech share has risen 17% YTD amid a broader sector rebound.

Citi reiterated its buy rating on NextDC shares with a price target of $19.10.

This implies potential capital growth of 32% ahead.

Electro Optic Systems Holdings Ltd (ASX: EOS)

Electro Optic Systems shares are $9.33, down 2.8% today.

The ASX 200 defence share has lost 6% of its market valuation YTD.

Bell Potter renewed its buy rating on Electro Optic Systems shares this week.

The broker increased its 12-month price target from $10.60 to $12.50.

This suggests a potential 34% upside ahead.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas Rare Earths share price is $19.02, up 1.7% today.

This ASX 200 rare earths share has ripped 56% higher YTD.

UBS upgraded Lynas Rare Earths shares to a buy rating with a $23.65 target on Thursday.

This implies a potential 24% upside ahead.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is $8.12, down 1.2% today.

Over the past month, this ASX 200 financial share has lifted 8%.

Goldman Sachs reiterated its buy rating on IAG shares with an $8.60 target yesterday.

This suggests a potential 6% upside ahead.

The post 8 ASX 200 shares with reaffirmed buy recommendations this week appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Judo Capital Holdings Ltd (ASX: JDO)

The Judo Capital share price is down 40% to 92.5 cents. Investors have been selling the small business lender's shares after it increased its cost of risk and downgraded its earnings guidance. Judo Capital now expects its FY 2026 cost of risk to be in the range of $116 million to $122 million. This has been driven by three exposures across different sectors that have recently emerged. As a result, Judo Capital now expects its profit before tax in FY 2026 to be between $163 million and $169 million. This is down meaningfully from its previous guidance of between $180 million and $190 million. The company's CEO, Chris Bayliss, said: "While today's update is partly a result of the macro environment, it is nevertheless disappointing."

Minerals 260 Ltd (ASX: MI6)

The Minerals 260 share price is down almost 12% to 83.5 cents. The gold industry is a sea of red on Thursday following another pullback in the gold price. This has seen the S&P/ASX All Ords Gold Index drop 5% today. In other news, this morning, Minerals 260 released results from the ongoing drilling program at its 100% owned 4.5Moz Bullabulling Gold Project. It is possible that some investors were expecting stronger results than those that were released.

Santos Ltd (ASX: STO)

The Santos share price is down 3% to $7.03. Investors have been selling energy shares today following another pullback in oil prices overnight. Traders were selling oil after tankers continued to pass through the Strait of Hormuz. The S&P/ASX 200 Energy Index is down 2.5% this afternoon.

Worley Ltd (ASX: WOR)

The Worley share price is down almost 9% to $11.20. This morning, this professional services company revealed that the Middle East conflict has continued to impact its earnings. Worley now estimates the impact to FY 2026 underlying EBITA to be up to $60 million. This is up materially from its previous estimate of $30 million to $40 million. It explains: "The extended duration and ongoing impact of the Middle East conflict continues to cause disruption to the progress of existing projects. While there have been no project cancellations, customers continue to delay the commencement and award of new projects."

The post Why Judo Capital, Minerals 260, Santos, and Worley shares are dropping today appeared first on The Motley Fool Australia.

In morning trade, the ASX 200 bank stock is down a massive 46% to 82 cents.

Why is this ASX 200 bank stock crashing?

Investors have been selling the small business lender's shares after it released an update on expectations in FY 2026.

One item which appears to have caught the eye of investors is its FY 2026 cost of risk, which is now expected to be in the range of $116 million to $122 million.

Management advised that this reflects an increase in specific provisions primarily driven by three exposures across different sectors that have recently emerged, as a result of customer-specific developments.

Judo Capital now expects 90-days-past-due (90DPD+) and impaired loans to be approximately 3% of gross loans and advances (GLA) at 30 June.

One positive is that collective provision coverage at 30 June is expected to remain broadly in line with its third-quarter trading update, which was 94bps of GLA or 1.09% of standardised credit risk weighted assets.

It notes that provisioning levels include a management overlay for sectors impacted by the uncertain macroeconomic environment.

Profit guidance

In light of the above, the ASX 200 bank stock revealed that its profit before tax in FY 2026 is now expected to be between $163 million and $169 million or approximately 30% growth on FY 2025.

This is down meaningfully on its previous guidance of between $180 million and $190 million.

Looking to FY 2027, management has provided profit before tax guidance of between $210 million and $220 million. This represents growth of 30% again and takes into account the uncertain macroeconomic and geopolitical environment.

Commenting on the news, the ASX 200 bank stock's CEO, Chris Bayliss, said:

We continue to see strong underlying momentum in the business. Recent credit outcomes have been driven by a small number of customers, who we are actively working with. These exposures have deteriorated subsequent to the customer-by-customer review undertaken in the third quarter and reflect recent, borrower-specific developments.

While today's update is partly a result of the macro environment, it is nevertheless disappointing. Regardless, we remain confident in the strength of our underlying business and the quality of the portfolio. We have a proven customer value proposition, are profitable and well capitalised, and have a clear path to achieving a return on equity in the low-to-mid teens.

The post Which ASX 200 bank stock is crashing 46% on profit guidance downgrade? appeared first on The Motley Fool Australia.

Despite the hold, the cash rate target remains at its equal highest level since 2011. 

Yesterday investors were quick to buy ASX 200 stocks right after the decision, before cooling off in the afternoon. 

How does the cash rate impact investors?

In a statement from the RBA yesterday, the central bank said it held rates at 4.35% because, after three consecutive hikes, financial conditions have tightened and the economy is showing signs of slowing. 

Essentially, the board wants to wait and see how much work those previous rises are doing before acting again. 

Inflation remains too high due to both domestic capacity pressures and Middle East oil supply disruptions, and the board has left the door firmly open to further hikes if needed.

For investors, today's hold at 4.35% is less a victory lap and more a pit stop. 

The RBA's decision was unanimous, with the board noting that following three consecutive rate hikes since the start of the year, financial conditions are now tighter and there are signs the economy is slowing as expected – exactly what they were gunning for.

Where to invest in high interest rate environments?

The board made clear that inflation is still too high and that it judged leaving the cash rate unchanged appropriate while it assesses the response to previous hikes and the ongoing impact of the oil supply disruption.

In other words, the RBA isn't done – it's watching. 

For ASX investors, that means the rate-sensitive sectors like REITs, utilities, and consumer discretionary stocks remain in the pressure cooker for now. 

The silver lining? Mortgage demand has already plummeted, dropping 6.6% year-on-year in May, suggesting the hikes are doing their job and that if inflation keeps cooling, the next move from the RBA could eventually be a cut, not another hike. 

The investors who position themselves in quality companies now, before rate relief arrives, are the ones history tends to reward. 

Stocks generating positive outlooks from experts 

For those looking to position themselves targeting quality companies, there are several generating positive outlooks right now. 

In the energy sector, brokers continue to tip further upside for Yancoal Australia Ltd (ASX: YAL). 

The coal miner is up 21% year to date however has targets indicating as much as 130% upside in the next 12 months. 

After facing several headwinds in 2026, experts now see a long-term recovery for Qantas Airways Ltd (ASX: QAN). 

Brokers are tipping a 30% rebound from current levels. 

Moving to bank shares, Judo Capital Holdings Ltd (ASX: JDO) remains the high upside choice of many experts. 

It has been tipped to rise roughly 40% in the next 12 months. 

The post RBA keeps cash rate at 4.35% – What does it mean for investors? appeared first on The Motley Fool Australia.

If you do, it could be worth considering the three shares listed below that Morgans rates as buys.

Here's why the broker is bullish on these names:

Judo Capital Holdings Ltd (ASX: JDO)

Morgans thinks this small business lender could be a top ASX share to buy.

In response to its capital relief securitisation transaction, the broker put a buy rating and $2.15 price target on its shares. It said:

JDO announced its second capital relief securitisation transaction backed by SME business loans. The transaction is significant as it shows JDO's ability to again source and its willingness to utilise capital relief securitisations to support its CET1 capital ratio without the need for equity raisings. Target price of $2.15 per share, with strong double digit earnings growth forecast across FY26-28F. BUY retained, with potential TSR at current prices of c.38% (driven entirely by capital growth).

Nick Scali Limited (ASX: NCK)

Another ASX share that Morgans is bullish on is furniture retailer Nick Scali. It recently initiated coverage on its shares with a buy rating and $17.84 price target.

Morgans likes Nick Scali due to its attractive valuation and positive growth outlook. It said:

We initiate with a BUY and $17.84 PT on Nick Scali. We use an FY28 PER and DCF when setting our price target as we opt to look through near-term consumer weakness, with the current price providing an attractive entry point. High-quality retailer with a long track record. Nick Scali has delivered long-term EPS growth through disciplined store rollout, LFL growth, best-in-class margins, and operating leverage. Strong cash generation and balance sheet.

Structural negative working capital supports high cash conversion, while the low capital intensity of new store rollouts leaves ample cash flow for dividends and property purchases and/or growth ventures. Store rollout optionality. Further Plush and Nick Scali rollout in ANZ and the Nick Scali rollout opportunity in the UK provide an attractive growth leg.

Web Travel Group Ltd (ASX: WEB)

A third ASX share that Morgans is positive on is travel technology company Web Travel. It recently upgraded the WebBeds owner's shares to a buy rating with a $3.75 price target.

It was pleased with its FY 2026 results and believes the market is seriously undervaluing its shares. It explains:

Given the Middle East conflict affected trading in March, WEB's FY26 result came in at the lower end of guidance, albeit better than consensus, proving its resilience. Unsurprisingly, WEB's FY27 update showed that trading has slowed materially given the conflict. Adverse FX has been another headwind. Given the uncertainty, WEB did not provide any formal FY27 earnings guidance. We have made significant downgrades to our forecasts. We assume that the conflict and a subdued consumer environment impacts WEB's 1H27 (seasonally stronger half), followed by a recovery in the 2H27.

After material share price weakness, we upgrade WEB to a BUY rating. The company is worth materially more than the current share price. We know from past economic and geopolitical events, that after a downturn, travel demand rebounds and so will its earnings and share price.

The post Broker names 3 ASX shares to buy now appeared first on The Motley Fool Australia.