By investing your superannuation wisely, you might be able to generate a regular cash flow high enough to live the retirement of your dreams.

The question is: How much do you actually need in your super to be able to get the passive income you want when you transition to your pension phase?

Let's investigate, using an annual $100,000 passive income as an example.

How much do I need in my superannuation to get a passive income of $100,000 every year?

To calculate how much you need in your superannuation, you need to divide your annual passive income by the dividend yield of your overall portfolio.

Obviously, the catch is that the answer varies depending on what your dividend yield is.

It means a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of passive income. 

Say your overall portfolio has a dividend yield of around 3%, you'll need a balance of around $3.3 million to earn $100,000 per year in passive income.

Of course, $3.3 million is a huge figure, and this level of superannuation isn't achievable for everyone.

But the good news is, as your portfolio's dividend yield increases, the superannuation balance required to earn the same passive income decreases. 

So if the yield of your portfolio is around 4%, for example, your balance would need to be closer to $2.5 million to earn the same dividend income.

For a 5% yielding portfolio, you'd need a balance of closer to $2 million to earn the same amount.

Increase that to a 6%, 7%, or 8% dividend yield, and you're looking at closer to $1.6 million, $1.4 million, or $1.25 million, respectively. 

And so on…

You'd still earn $100,000 per year in passive income from each of these portfolio sizes.

What ASX shares can I buy around these dividend yields?

There are a huge range of ASX dividend shares available for your superannuation investment. Here are some of my favourites.

Lower-yielding ASX dividend-paying shares such as Wesfarmers Ltd (ASX: WES), Northern Star Resources Ltd (ASX: NST), AMP Ltd (ASX: AMP) and Washington H. Soul Pattinson and Co Ltd (ASX: SOL) are solid and reliable stocks that offer a yield of around 2% to 3%.

For a mid-range yielding ASX dividend option, I'd look at Suncorp Group Ltd (ASX: SUN), QBE Insurance Group (ASX: QBE), Rio Tinto Ltd (ASX: RIO) or defensive assets like Telstra Group Ltd (ASX: TLS). These all pay a yield around 3% to 5%. 

For a higher 5% to 6% dividend yield, I'd look at reliable payers like APA Group (ASX: APA) or Origin Energy Ltd (ASX: ORG).

Lendlease Group (ASX: LLC) and Charter Hall Long WALE REIT (ASX: CLW) yield around 7% to 8%.

If you want to take on more risk and go for a much higher-yielding ASX stock, my picks would be something like IPH Ltd (ASX: IPH), Centuria Office REIT (ASX: COF), or the BetaShares Australian Top 20 Equities Yield Maximiser Complex ETF (ASX: YMAX). These typically yield anywhere between 9% and 12%.

The post How much superannuation is needed to target a $100,000 annual passive income? appeared first on The Motley Fool Australia.

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.

The maths is straightforward.

To generate $60,000 per year in dividend income at an average yield of 5%, you need approximately $1.2 million invested.

At a 6% yield, you need $1 million.

Three ASX dividend shares offer different but complementary ways to build toward that target.

Telstra: The defensive anchor

Telstra Group Ltd (ASX: TLS) is the natural starting point for any ASX passive income portfolio.

Not because it offers the highest yield, but because it offers reliability.

Telstra has not cut its dividend since 2019 and has increased its annual payout every year since 2022.

CommSec consensus estimates point to a fully-franked dividend of 21 cents per share in FY26, rising to 21.5 cents in FY27.

At $4.92 per share, that implies a forward yield of approximately 4.3%, or a grossed-up yield of approximately 6.1% including franking credits.

That franked income is particularly powerful inside superannuation, where franking credits arrive as cash rather than being absorbed by tax.

A $400,000 investment in Telstra at a 5.86% grossed-up yield generates approximately $23,440 per year.

Suncorp: The recovery play with a growing payout

Suncorp Group Ltd (ASX: SUN) had a difficult FY26.

Catastrophe costs ran to approximately $580 million above budget, weighing on near-term dividends.

Despite this, UBS forecasts a fully-franked annual dividend of 66 cents per share for FY 2026.

This would imply a grossed-up yield of approximately 5% at the current share price of $18.94.

The more compelling part of this ASX dividend share is the trajectory.

UBS projects Suncorp's dividend climbing toward $1.09 per share by FY 2030, implying a forward grossed-up yield of approximately 8.2% at today's price.

That reflects a scenario in which FY26's elevated catastrophe costs are unlikely to repeat at the same scale, and in which improving margins support a multi-year dividend recovery.

A $350,000 investment in Suncorp at a 5% grossed-up yield generates approximately $17,500 per year today. This should grow materially as the dividend recovers.

Amcor: The quarterly payer

Amcor Plc (ASX: AMC) brings something Telstra and Suncorp do not: quarterly dividends.

Most ASX companies pay twice yearly. Amcor pays four times per year, giving income investors a more frequent and consistent cash flow.

Amcor's most recently declared quarterly dividend was 91 cents per share in AUD terms. This translates to an annualised payout of approximately A$3.64 per share.

At $63.92 per share, that implies a trailing yield of approximately 5.7%.

Unfortunately, that yield is unfranked, reflecting Amcor's UK domicile and predominantly offshore earnings.

However, the yield more than compensates for the lack of franking at an absolute level.

The business is delivering too. In Q3 FY26, Amcor delivered net sales of US$5.91 billion, up 77% year on year, as Berry Global synergies continued to flow through.

A $320,000 investment in Amcor at 5.7% generates approximately $18,240 per year.

The portfolio maths for these ASX dividend shares

$400,000 in Telstra at 6.1% generates approximately $24,400 per year.

$350,000 in Suncorp at 5% generates approximately $17,500 per year.

$320,000 in Amcor at 5.7% generates approximately $18,240 per year.

Combined, a $1,070,000 portfolio across these three stocks generates approximately $60,140 per year, essentially hitting the $60,000 target.

Foolish Takeaway

$60,000 in annual passive income from ASX dividend shares is achievable with approximately $1 million to $1.2 million invested across reliable, income-producing businesses.

Telstra provides the defensive anchor with franked income.

Suncorp provides the income growth trajectory.

Amcor provides the quarterly cash flow and global defensive exposure.

Income investors looking for high yield at a reasonable price don't need to look much further than these three.

The post How to build $60,000 in annual passive income from ASX dividend shares appeared first on The Motley Fool Australia.

In morning trade, the insurance giant's shares are down 5% to $18.36.

Why are Suncorp shares on the slide?

The catalyst for this move has been the release of an update from Suncorp before the market open.

This morning, Suncorp's acting CEO, Jeremy Robson, provided an update on the successful placement of its FY 2027 reinsurance program and its FY 2026 outlook.

With respect to the former, Robson revealed that the renewal reflected continued discipline in the company's reinsurance strategy, maintaining an appropriate balance between cost, earnings volatility, and capital efficiency.

Suncorp advised that it has now successfully placed its main catastrophe program for FY 2027, which maintains the maximum event retention of $350 million for a first and second large event. This is on top of the previously announced five-year aggregate reinsurance arrangement which commenced on 30 June.

That aggregate cover provided $800 million of protection annually, and up to $2.4 billion in total over a 5-year period.

Commenting on the program, Jeremy Robson said:

The FY27 reinsurance program demonstrates our focus on optimising returns while ensuring appropriate protection for our customers and shareholders. While the cost of reinsurance remains an important input to insurance pricing, it is pleasing to see improved market conditions reflected in the pricing of our comprehensive main catastrophe program, now complemented by the addition of aggregate protection to further enhance resilience and reduce volatility.

Suncorp has also reaffirmed its natural hazard allowance (NHA) for FY 2027 is $1,800 million, excluding claims handling expenses and profit commission.

FY 2026 update

Looking ahead to its FY 2026 results next month, Suncorp advised that it is reaffirming its underlying ITR to be towards the upper end of the 10% to 12% range.

However, its gross written premium growth is now expected to be approximately 2.7%. Suncorp notes that expectations have been impacted by an ongoing weak economy and soft commercial market in New Zealand, as well as a marginal reduction in demand in Australia.

In addition, total investment income is expected to be between $750 million and $800 million in FY 2026. This is down from $1,227 million in FY 2025.

The company explained that its lower investment income relative to FY 2025 is predominately driven by rising bond yields. These are resulting in mark-to-market losses in both insurance funds and shareholders' funds.

Following today's move, Suncorp shares are now down around 12% over the past 12 months.

The post Why are Suncorp shares sinking 5% today? appeared first on The Motley Fool Australia.

What did Suncorp report?

• FY27 reinsurance program placement completed, adding $800 million annual aggregate cover for five years
• Total reinsurance costs in FY27 expected to be higher than FY26 due to exposure growth and aggregate cover
• Natural hazard costs in FY26 are forecast at $2.02 billion, approximately $250 million above the $1.77 billion allowance
• Underlying insurance trading result (ITR) for FY26 anticipated towards the upper end of the 10–12% range
• Gross Written Premium (GWP) growth for FY26 expected to be around 2.7%
• FY26 investment income expected between $750 million and $800 million, down from $1.23 billion in FY25

What else do investors need to know?

Suncorp has announced a new five-year aggregate reinsurance arrangement, effective from 30 June 2026, providing substantial protection against natural disasters. The main catastrophe cover now protects losses between $500 million and $6.4 billion, including for Home, Motor and Commercial property portfolios across Australia and New Zealand.

Total reinsurance costs in FY27 are set to rise, mainly due to the new aggregate cover and expanded exposure, but this is partly offset by more favourable catastrophe program pricing. Additionally, Suncorp will release about $100 million of capital thanks to lower capital targets, giving the balance sheet a welcome boost.

On the leadership front, Steve Johnston returns as CEO from medical leave on 6 July 2026, with acting CEO Jeremy Robson resuming as CFO, restoring the executive team's usual structure.

What's next for Suncorp?

Suncorp will provide further detail on capital management and natural hazard experience at its FY26 results presentation, scheduled for 12 August 2026. The company's strategic focus remains on balancing risk protection with efficiency, aiming to protect both shareholders and customers against volatile weather events.

Looking forward, Suncorp's enhanced reinsurance structure aims to keep earnings more stable and strengthen resilience in an increasingly unpredictable environment. The leadership team's return to its usual configuration signals ongoing continuity in strategy and execution.

Suncorp share price snapshot

Over the past 12 months, Suncorp shares have declined 7%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 2% over the same period.

View Original Announcement

The post Suncorp reveals FY27 reinsurance plans and FY26 guidance update appeared first on The Motley Fool Australia.

Some have simply run too far for that to still be true. Being honest means being upfront about which of these three ASX dividend shares still offer value, and which ones have become more of a quality holding than a bargain.

Here are three ASX dividend stocks that offer attractive yields at attractive prices for Australian investors.

Amcor Plc (ASX: AMC)

Amcor remains the clearest case of a well-priced dividend share on this list.

Its shares trade at approximately $61.67, still down materially from their 52-week high of $76.40. Amcor carries a dividend yield of approximately 5.9%, based on the most recently declared quarterly dividend of 91.0 AUD cents per share, annualised.

That yield is unfranked, reflecting Amcor's UK domicile and predominantly offshore earnings base. But the headline number remains attractive on an absolute basis.

Moreover, the company is performing. In the March 2026 quarter, Amcor delivered net sales of US$5.91 billion, up 77% year-on-year. Adjusted EBITDA surged 87% to US$892 million, as synergies from the completed Berry Global acquisition continued to come through.

CEO Peter Konieczny noted the result, stating:

The resilience of our business as we mark the first anniversary of bringing legacy Amcor and Berry together as One Amcor.

Even better, Amcor pays dividends quarterly, giving income investors a more frequent cash flow than the twice-yearly norm on the ASX.

Suncorp Group Ltd (ASX: SUN)

Suncorp is the second well-priced name here, though the dividend outlook requires a degree of patience.

UBS expects Suncorp's FY2026 net profit and dividend to fall significantly due to catastrophe costs running roughly $580 million above budget, cutting its FY2026 EPS forecast by 31%.

Despite that near-term hit, UBS retains a buy rating with a $22 price target and forecasts an annual dividend of 66 cents per share for FY2026.

This implies a grossed-up yield of approximately 5.0% including franking credits.

The broker's more interesting observation is that the same catastrophe events pushing this year's dividend lower could "extend the positive home/motor pricing cycle," supporting a recovery in FY2027 and beyond.

UBS projects the dividend will climb toward $1.09 per share by FY2030, implying a forward grossed-up yield of approximately 8.2% at today's price.

This gap between a soft near-term number and a much stronger multi-year trajectory represents a potential attractive entry point for incoming investors.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Dalrymple Bay Infrastructure has appeared on dividend lists like this one before, and for good reason.

Why? The underlying business is high quality, with regulated, contracted revenue from its metallurgical coal export terminal in Queensland.

DBI shares hit an all-time high of $6.01 on 24 June 2026, up roughly 40% over the past twelve months. This has compressed the trailing yield to approximately 4.6%.

At an all-time high with a yield below 5%, DBI may not be the bargain it was earlier this year. However, shares have proven to be a reasonable holding for income investors over the long-term.

For investors seeking compounding dividends over the long term, DBI's high-quality business model provides a compelling investment case.

Foolish takeaway

Amcor and Suncorp both still offer a genuine combination of an attractive yield and a credible path to dividend growth from here.

Dalrymple Bay Infrastructure is a quality business with a proven track record of compounding earnings and dividends.

Income investors looking for high yield at a reasonable price don't need to look much further than these ASX dividend shares.

The post 3 well-priced ASX dividend shares to buy today appeared first on The Motley Fool Australia.

But can we continue to do so?

Investment firm, Market Partners, explains why it prefers another type of ASX financial share over banks for dividends these days.

Expert recommends better stocks for dividends

Instead of ASX 200 bank shares, Market Partners analysts James Gerrish and Shawn Hickman prefer insurance stocks.

The main case against the banks is not their relatively high share prices.

It's that investment loans have been powering their growth, and "that is likely to be pulled in" following the Federal Budget.

The Federal Government proposed major changes to capital gains tax (CGT) in the budget last month.

Under the changes, the 50% CGT discount for assets held longer than 12 months will be replaced by a cost base inflation indexation method from 1 July next year, and a minimum 30% CGT rate will apply.

In a webinar, Hickman, who is head of research at Market Partners' digital advice platform, Market Matters, said:

It's hard to imagine people are going to go out there aggressively in the near future and get fresh investment loans.

This may impact the earnings of the ASX 200 bank shares, which would threaten future dividends.

They're very secure businesses, but the growth factor for them to push a lot higher from here is very hard to imagine.

And that's why Market Matters is underweight.

We still own ANZ Group Holdings Ltd (ASX: ANZ). We still own Westpac Banking Corp (ASX: WBC). They're strong. They're going to make money. They're going to pay good dividends, but we don't see any reason to be overweight the banks.

While Gerrish emphasises that they are "certainly not negative on the banks" at today's share prices, investing is still "a relative game".

Gerrish explained:

… insurers benefit from higher interest rates. So they earn a higher income from their invested funds.

You pay your premiums, they invest the premiums, they earn a return on the premiums, then they pay out claims when they come up.

He points out that the insurance sector has experienced volatility for the past three or four years, but things have changed.

… now the tailwinds on the insurance side are improving, we think, and you think about insurers yielding circa 5%, banks mid-4%s.

Insurers have less economic sensitivity, banks have a greater degree of economic sensitivity relative to the insurers.

I think there's a case to be made that there's more upside in the insurers than banks.

That doesn't mean the banks don't go up from here, but there's probably more upside in terms of the insurance stocks relative to the banks.

Preferred ASX insurance share for dividends

Gerrish said Suncorp Group Ltd (ASX: SUN) is Market Matters' preferred ASX insurance share for dividends moving into FY27.

Since selling its banking division to ANZ, Gerrish reckons Suncorp has become a "simpler and safer institution".

He says a significant new reinsurance program, that takes about 2% off Suncorp's earnings, will protect future dividends for investors.

In this sort environment, where yield is really, really important, I think Suncorp stacks up here.

It trades about two P/E points cheaper than Insurance Australia Group Ltd (ASX: IAG).

I think it probably should trade more aligned with IAG.

Reinsurance protects Suncorp's earnings by transferring part of the financial risk of high payouts after major events.

Gerrish noted that climate change has raised risks and encouraged insurers to invest in reinsurance.

The experts point out that higher inflation can allow insurers to raise premiums, however it also makes repairs more expensive.

Gerrish added:

Insurance is a good business when they get their pricing discipline right and claims are benign.

That's the sort of environment that they're in now.

So insurance companies can now print a lot more money.

And the other thing around higher rates… is their investment portfolio has a long duration.

So, as they roll over fixed income — the majority is in fixed income — then they're getting higher rates of return on the investment portfolio as well.

Top ASX insurance share pick for growth

The experts said their top pick among ASX insurance shares for growth into FY27 is QBE Insurance Group Ltd (ASX: QBE).

Gerrish said:

They've been working hard over the last five, 10 years around simplification of their business.

So they went out there, they made a huge number of acquisitions… and it's starting to pay benefits.

The experts said QBE was an emerging turnaround story, with the share price trading close to 15-year highs.

Gerrish added:

Turnarounds can take a lot longer than anyone envisages.

But once a turnaround is starting to gain traction like it is in QBE, then the stock can run a lot further and a lot longer than anyone thinks.

So, on 12x [P/E], growing earnings at high single digits, yielding 4.7% part-franked [dividends] with earnings tailwinds, we think QBE stacks up.

ASX 200 bank share dividends

The trailing dividend yields of the ASX 200 bank shares are as follows:

• Commonwealth Bank of Australia (ASX: CBA) shares have a trailing dividend yield of 3% plus 100% franking
• National Australia Bank Ltd (ASX: NAB) shares have a trailing dividend yield of 4.5% plus 100% franking
• ANZ shares have a trailing dividend yield of 4.8% plus 70% to 75% franking
• Westpac shares have a trailing dividend yield of 4.3% plus 100% franking

The post Invested in ASX 200 bank shares for dividends? This fundie prefers other stocks appeared first on The Motley Fool Australia.

Investors may choose to invest in ASX defensive stocks during periods of global uncertainty because these companies tend to generate more stable earnings and dividends even when economic conditions weaken. 

Why investors are targeting defensive shares in 2026

The current conflict involving Iran has increased concerns about disruptions to global oil supplies, which has pushed energy prices higher and contributed to renewed inflation fears. 

Higher inflation can lead central banks to maintain or increase interest rates, which we have already seen in 2026. 

This can place pressure on growth-oriented sectors such as technology and consumer discretionary stocks. 

In contrast, defensive sectors on the ASX – including utilities, healthcare, consumer staples, and telecommunications – often perform more steadily. 

This is because demand for their products and services remains relatively consistent regardless of economic conditions. 

As geopolitical tensions and rising oil prices continue to create market volatility, many investors view defensive stocks as a safer option for preserving capital and generating reliable income in an uncertain environment.

While these economic conditions seem to point towards a case for defensive options, some well-known defensive shares are receiving mixed views from experts. 

Here's the latest guidance on three defensive options. 

Suncorp Group Ltd (ASX: SUN)

Suncorp shares are considered defensive because insurance demand tends to remain steady even in weaker economic conditions.

However this hasn't translated to growth in 2026 for Suncorp shares. 

Its share price is down 2.4% in 2026 compared to a flat performance from the S&P/ASX 200 Index (ASX: XJO). 

Based on recent estimates from brokers, it is hovering around fair value. 

These defensive shares closed last week at $17.37 each, right around Morgan's recent target of $17.79. 

Woolworths Group Ltd (ASX: WOW)

Woolworths dominant market share in the Australian supermarket landscape has long held it in good stead even during tough economic conditions. 

This has led to an 18% rise in share price year to date for Woolworths shares. 

The team at JP Morgan still sees modest upside in the short term for these defensive shares, recently placing a $37 price target on the company. 

From yesterday's closing price of $34.75 this indicates an upside of roughly 6%. 

Transurban Group (ASX: TCL)

Transurban is one of the world's largest toll-road operators, managing and developing urban toll-road networks in Australia and North America. 

The company develops, operates, maintains and finances toll-road networks. 

This places the company firmly in the defensive theme as revenue is supported by long-term transport infrastructure usage.

It has risen a modest 2% in 2026, however much of its value lies in its consistent dividend payments.

Recent price targets from experts are hovering around $16.10, indicating a modest capital growth potential from the current price of $14.49. 

Foolish takeaway

Defensive shares on the ASX may not deliver the same high-growth returns as more cyclical or speculative stocks.

However they can play an important role in preserving capital.

In periods of volatility these stocks tend to be more resilient, meaning they are more likely to hold their value and provide steady dividends even when broader markets decline.

The post Should investors still be thinking defensive in today's market? appeared first on The Motley Fool Australia.

I won't leave you hanging.

While higher costs and rates will impact market dynamics, my answer remains a resounding yes.

But you may wish to target a different basket of ASX shares than you might buy in a falling rate environment.

We'll look at a few you may want to consider adding to your portfolio below.

But first…

What on earth is happening with interest rates in Australia?

Inflation down under was already ticking higher in the latter months of 2025 and into 2026 before the onset of the Iran war at the end of February.

That resurgent inflation was partially spurred by greater capacity pressures. But with energy costs rocketing amid the Middle East conflict, cost of living pressures are likely to ramp significantly higher before we see any relief.

In an effort to get ahead of the curve, this saw the RBA boost Australia's official interest rate by another 0.25% on Tuesday. This third consecutive hike from the central bank sees the official interest rate at 4.35%. That's back at its 2024 peak, and it matches the highest rate levels since 2011.

While many ASX shares initially sank on the RBA's afternoon announcement on Tuesday, the All Ordinaries Index (ASX: XAO) clawed back those losses to close the day around where it was before the rate hike news hit the wires.

Buying ASX shares in a higher interest rate environment

Commenting on the RBA's latest interest rate increase, and how investors should respond, Josh Gilbert, lead analyst for APAC at eToro, said:

The takeaway for portfolios is that boring can be brilliant in this environment. Focus on quality balance sheets and pricing power, because companies that can pass costs through without losing volume are the ones that can hold up best with the current macro backdrop.

One ASX share that looks to fit this bill is Transurban Group (ASX: TCL).

While the toll road owner and operator won't be immune to the impacts of higher energy prices on its traffic volumes, Transurban is able to increase prices to match inflation across many of its toll roads. Indeed, the company reported that more than 90% of its revenue is either CPI-linked or with fixed escalations.

Other ASX shares that could perform well amid rising inflation and rates are insurance stocks.

Companies like QBE Insurance Group Ltd (ASX: QBE) and Suncorp Group Ltd (ASX: SUN) generally hold a sizeable pool of cash and bonds, which should offer an income boost amid higher interest rates.

And don't lose track of the Aussie dollar.

With Australian interest rates outpacing those in the United States, the Aussie dollar hit four-year highs this week, recently trading for 72.4 US cents. That's up from 64.3 US cents a year ago.

This big shakeup in currency exchange rates should tend to favour importers over exporters. Imported goods will be cheaper in Aussie dollar terms while exported goods will be more expensive for buyers paying in US dollars.

The post Should you still buy ASX shares amid fast-rising inflation and interest rates? appeared first on The Motley Fool Australia.

As reported by Bernd Struben, Australia's official interest rate is now back at its post-pandemic 2024 highs.

November 2011 was the last time rates were higher than the current level. 

The decision from the RBA was influenced by inflation and the ongoing conflict in the Middle East. 

The RBA said:

In addition, the conflict in the Middle East has resulted in sharply higher fuel and related commodity prices, which are already adding to inflation. There are early signs that many firms experiencing cost pressures are looking to increase prices of their goods and services. Short-term measures of inflation expectations have also risen.

Why this matters for investors 

As a quick refresher, the RBA cash rate acts as a benchmark for the Australian economy. 

When the cash rate rises, borrowing becomes more expensive for businesses and consumers. 

This can slow economic activity and reduce company profits, often putting downward pressure on share prices. 

On the flip side, when the cash rate falls, borrowing is cheaper. 

This can stimulate spending and investment, which can boost corporate earnings and generally support higher share prices. 

In this way, changes in the cash rate influence both company fundamentals and investor behaviour across the ASX.

For the everyday Aussie, changes in the cash rate affect how much they pay on mortgages, loans, and credit cards. 

This has a direct influence on spending power and the overall cost of living.

But it isn't bad news for every ASX-listed company when interest rates are high. 

Here are some options for investors looking for companies that could stand to benefit from a high-interest-rate environment. 

Big banks

Banks make much of their profit from the difference between:

• the interest they charge borrowers (home loans, business loans), and
• the interest they pay depositors and wholesale lenders

This difference is called the net interest margin (NIM).

When the Reserve Bank of Australia raises rates, banks usually increase mortgage and business lending rates fairly quickly, but deposit rates often rise more slowly.

That can widen margins and increase profits.

This (not always) can mean bank shares like the big four can benefit in a high-interest-rate environment. 

Investors may choose to target these banks individually. However, another option is to target an ASX ETF that includes all the big four bank shares. 

One such option is the VanEck Australian Banks ETF (ASX: MVB). 

Insurance companies

Another subsector of the ASX that can outperform in high-rate environments is insurance shares. 

These companies can benefit from interest rate rises because they invest premiums and earn more when yields rise. 

Some options include: 

• QBE Insurance Group Ltd (ASX: QBE)
• Suncorp Group Ltd (ASX: SUN)
• Insurance Australia Group Ltd (ASX: IAG)

The post Where to invest with interest rates rising appeared first on The Motley Fool Australia.

What did ANZ report?

• Statutory profit for the half: $3,650 million, up 62% on prior half
• Cash profit: $3,780 million, up 70% or 14% excluding significant items
• Cash return on tangible equity: 11.6%, up 161 basis points
• CET1 capital ratio: 12.39%, up 36 basis points from September 2025
• Interim dividend: 83 cents per share, franked at 75%
• Cost-to-income ratio: down to 49.4% from 65.5% previously

What else do investors need to know?

ANZ reported improved results across key metrics after simplifying its business and completing several transformation initiatives. The proposed integration of Suncorp Bank remains on track, with customer migration planned by June 2027.

Credit quality stayed strong, with low portfolio losses and only a minimal increase in non-performing exposures. Customer deposits increased 3% and capital levels remain well above regulatory minimums. Liquidity ratios also stayed strong, highlighting ANZ's financial stability.

What did ANZ management say?

ANZ Chief Executive Officer Nuno Matos said:

This half year result demonstrates three things. First, our transformation is running at pace, and we are making good progress in executing our five immediate priorities safely, sustainably, and on time.

Second, in parallel, we are investing in line with our ANZ 2030 strategic initiatives, to deliver for our customers, accelerate growth and outperform the market beyond 2027.

Third, importantly we are already delivering materially better returns for shareholders.

What's next for ANZ?

ANZ expects to continue executing on its ANZ 2030 strategy, focusing on cost reductions, technology, and customer experience. The bank is targeting a return on tangible equity around 12% by FY28 and a cost-to-income ratio in the mid-40s percent range.

There are further plans to complete the integration of Suncorp Bank and achieve cost savings of $800 million in FY26, with Suncorp synergies expected to deliver $500 million in annual benefits by FY29. ANZ will also keep building its risk management framework amid ongoing economic uncertainty.

ANZ share price snapshot

Over the past 12 months, ANZ shares have risen 23%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 6% over the same period.

View Original Announcement

The post ANZ shares: Profit jumps in 2026 half-year earnings appeared first on The Motley Fool Australia.

Amid ongoing market volatility due to the war in Iran, brokers have reduced their ratings on five ASX All Ords shares.

Let's take a look.

Northern Star Resources Ltd (ASX: NST)

The Northern Star Resources share price is $20.89, down 3.3% today.

Over the past month, this ASX All Ords gold share has edged 2.6% higher.

Ord Minnett downgraded Northern Star shares to a hold rating this week.

The lowered rating follows the miner's third-quarter update last week.

The miner revealed ongoing cost pressures and a continued increase in capital expenditure.

Ord Minnett reduced its 12-month price target from $23.70 to $22.70.

This still implies a potential 9% upside ahead.

Fortescue Ltd (ASX: FMG)

The Fortescue share price is $19.90, down 1.6% today.

Over the past month, this ASX All Ords mining share has fallen 2%.

Bell Potter downgraded Fortescue shares to a sell rating with an $18.15 target today.

This implies a potential 9% downside ahead.

The broker said:

FMG's core iron ore operations continue to perform very well and benefit from an elevated iron ore price.

However, we anticipate higher costs to emerge in 2HCY26 as low-cost inventories are exhausted, putting pressure on earnings.

We are wary of the "portfolio optimisation" review encompassing Iron Bridge.

Webjet Group Ltd (ASX: WJL)

The Webjet Group share price is 54 cents, up 1.9% today.

Over the past month, this ASX All Ords travel share has risen 1.9%.

Ord Minnett downgraded Webjet shares to a hold rating this week.

The broker slashed its 12-month price target from $1.15 to 67 cents.

This implies a potential near-30% share price fall over the next year.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is $16.93, down 0.3% today.

Over the past month, this ASX All Ords financial share has lifted 4.9%.

Morgans downgraded Suncorp shares to a hold rating yesterday.

However, the broker increased its 12-month price target from $17.01 to $17.79.

This suggests there is still upside ahead, but less than 5%.

In a note, Morgans said:

SUN has provided an update on its aggregate reinsurance cover and its FY26 outlook. Overall, in our view, SUN securing an aggregate reinsurance cover will reduce future earnings volatility, whilst 2H26 claims are tracking below our expectations.

We believe SUN's management has executed well in recent years, successfully steering the company's strategy as a pure play general insurer. However, with the upside to our price target now more limited, we move to a HOLD recommendation.

PLS Group Ltd (ASX: PLS)

The PLS Group share price is $6.15, up 2.8% today.

Over the past month, this ASX All Ords lithium share has skyrocketed 20%.

The PLS Group share price hit a record $6.17 on Tuesday.

Morgans downgraded PLS shares from hold to trim after the miner's 3Q FY26 update.

The broker said:

Record production +8% ahead of consensus expectations and costs -13% ahead of consensus expectations highlights PLS' strong operating leverage. Strong cash build supports growth and potential shareholder returns.

PLS is our preferred lithium exposure, but we see much of the near-term upside priced in and suggest selectively trimming positions.

Morgans kept its price target at $5.40, suggesting a potential 12% fall from here.

The post 5 ASX All Ords shares downgraded by brokers this week appeared first on The Motley Fool Australia.

Two of the most recent shares to receive updated guidance from the broker are Stanmore Resources Ltd (ASX: SMR) and Suncorp Group Ltd (ASX: SUN). 

Let's find out how Morgans views Stanmore and Suncorp shares today. 

Stanmore Resources

This ASX 200 company is an Australian coal producer with operations and exploration projects in the Bowen and Surat Basins in central and southern Queensland.

Its stock price has fallen 6% so far in 2026. 

Yesterday, it released its Q1 2026 Quarterly Activities Report.

As Laura Stewart reported yesterday, it reported saleable coal production steady at 3.2 million tonnes and closing cash of US$166 million, giving the miner a strong foundation for the year.

Morgans said two of three headline metrics narrowly miss consensus, though without material impact. 

As a result, FY26 production guidance is unchanged, and the year remains back-end weighted. 

FOB cash cost guidance increased to US$98-103/t from US$93-97/t due to inflationary pressures on fuel costs. Our forecast FOB costs have been increased to ~US$99/t to reflect this guidance update. We have made material changes to forecasts that reduces our DCF valuation to A$2.80ps (previously A$2.95ps). Following recent share price weakness, we upgrade our recommendation to BUY (previously HOLD).

Today, Stanmore Resources shares are trading at approximately $2.25 each. 

From this price, the updated target from Morgans indicates an upside potential of 24%. 

Suncorp

In a fresh note out of Morgans, the broker has increased its price target on Suncorp shares. 

The broker said the company has provided an update on its aggregate reinsurance cover and its FY26 outlook.

Overall, in our view, SUN securing an aggregate reinsurance cover will reduce future earnings volatility, whilst 2H26 claims are tracking below our expectations. We raise our SUN FY26F/FY27F EPS estimates by +3% and +1% respectively, reflecting lower-than-expected current year hazard claims relative to our prior forecasts, a mark-to-market and a modest adjustment to our forward UITR assumptions.

As a result, Morgans' price target has increased to $17.79 (previously $17), driven by these earnings revisions. 

We believe SUN's management has executed well in recent years, successfully steering the company's strategy as a pure play general insurer. However, with the upside to our price target now more limited, we move to a HOLD recommendation.

At the time of writing, Suncorp shares are trading for $16.95. 

From this level, the revised price target from Morgans indicates just 5% upside for Suncorp shares. 

The post What is Morgans saying about Stanmore Resources and Suncorp shares after results? appeared first on The Motley Fool Australia.

As the war in Iran drags on, investors are increasingly worried about the long-tail impact of the fuel crisis on the global economy.

The Bureau of Statistics will release quarterly inflation data today ahead of the Reserve Bank's next interest rate meeting next Tuesday.

Ryan Felsman, a senior economist at Commonwealth Bank of Australia (ASX: CBA), laid out his expectations:

The March 2026 CPI release will provide an update on underlying price pressures ahead of the RBA's May Board meeting (4-5 May), as well as insights into how prices initially responded following the start of the Iran war.

We expect headline inflation rose by 1.1% in March to take the annual rate to 4.6%.

Fuel alone is likely to account for 0.9% pts of the monthly gain, with petrol prices at the pump rising by more than 30% over the month.

Amid these economic concerns, several brokers have reiterated their buy ratings on a small group of ASX 200 shares this week.

Despite today's volatile market conditions, they see strong growth ahead for their top picks.

Let's take a look.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price closed at $61.37, up 4% on Tuesday.

UBS has renewed its buy rating on this ASX 200 mining stock and increased its 12-month price target from $66 to $73.

The target suggests a possible 19% capital gain ahead.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price closed steady at $16.77 on Tuesday.

UBS has reiterated its buy rating on this ASX 200 financial share and raised its price target from $19.25 to $19.60.

This implies a potential 17% upside ahead.

Morgan Stanley also renewed its buy rating on Origin shares with a more ambitious $21.60 target.

Newmont Corporation CDI (ASX: NEM)

The Newmont share price finished the session at $158.69, down 4.5%, yesterday.

The ASX 200 gold mining share attracted a renewed buy rating from Citi with a $215 target this week.

This suggests capital growth of 34% ahead.

Macquarie and Morgans also renewed their buy ratings this week. Their targets are $192 and $208, respectively.

In a note, Morgans said:

… NEM delivered a strong beat across multiple operating and financial metrics, while completing its US$6bn buyback and announcing a further US$6bn program.

The result reinforces NEM's positioning as a high-quality, cash-generative gold producer with strong balance sheet flexibility and increasing capacity to return capital to shareholders.

Origin Energy Ltd (ASX: ORG)

The Origin Energy share price finished 3.9% lower at $11.66 yesterday.

UBS reiterated its buy rating on Origin shares this week.

The broker shaved its target down from $14.30 to $14.10.

This suggests a potential 21% upside ahead for the ASX 200 utilities share.

Aristocrat Leisure Ltd (ASX: ALL)

The Aristocrat share price closed at $46.20, down 4.2%, on Tuesday.

The ASX 200 consumer discretionary share got a reiterated buy rating from UBS this week.

The broker lowered its target slightly to $68.90, which still suggests impressive capital growth of almost 50% ahead.

IGO Ltd (ASX: IGO)

The IGO share price closed 2.3% higher on Tuesday at $7.49.

UBS maintained its buy rating on the ASX 200 lithium share this week.

The broker lifted its price target from $9.05 to $9.75, implying a potential 30% upside ahead.

The post 6 ASX 200 shares with strengthened buy ratings this week 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:

Fortescue Ltd (ASX: FMG)

According to a note out of Macquarie, its analysts have retained their outperform rating on this iron ore miner's shares with a trimmed price target of $22.00. This follows the release of a third-quarter update that revealed lower-than-expected costs and a stronger than anticipated balance sheet. While the Iron Bridge operation continues to weigh on its production, the broker remains positive on the investment opportunity here. This is particularly the case given the potential for its green energy initiatives to support its growth. The Fortescue share price is trading at $19.95 on Monday afternoon.

Regis Resources Ltd (ASX: RRL)

A note out of Morgans reveals that its analysts have upgraded this gold miner's shares to a buy rating with a slightly improved price target of $10.07. This followed the release of a strong quarterly update, which revealed gold sales of 89.1koz at an AISC of A$2,807 per ounce. This was achieved with an average realised price of A$6,977 per ounce, which underpinned revenue of $622 million. Morgans notes that this was ahead of its expectations. In addition, the broker points out that Regis Resources generated cash of $198 million, which has helped take its cash balance above $1.1 billion. In light of this and recent share price weakness, it believes the Regis Resources shares are being materially undervalued by the market. The Regis Resources share price is fetching $7.43 at the time of writing.

Suncorp Group Ltd (ASX: SUN)

Analysts at Morgan Stanley have retained their overweight rating and $21.60 price target on this insurance giant's shares. According to the note, the broker was pleased with Suncorp's aggregate reinsurance cover. Morgan Stanley expects this to reduce earnings volatility and Suncorp's cost of capital, which it believes should support a re-rating of its shares to higher multiples. As a result, the broker sees plenty of value in the company's shares at current levels. The Suncorp share price is trading at $16.77 this afternoon.

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

After a shaky and volatile session that saw the index whipsaw quite a lot, the ASX 200 ended up closing 0.078% lower by the time the markets closed up shop. That leaves the index at 8,786.5 points as we head into the weekend.

This inglorious end to the trading week for ASX investors follows a red night up on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) wasn't in a good mood, shedding 0.36%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) fared worse, though, dropping by 0.89%.

But let's return to the local markets now and see how the various ASX sectors ended their respective weeks today.

Winners and losers

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

At the time of writing, shares are down 0.49% to $16.32.

The move adds to a volatile period for the insurer, with the stock now down roughly 15% in 2026, despite rebounding around 10% over the past month.

Here's what the company announced.

CEO taking temporary leave

In a statement to the ASX, Suncorp confirmed that Chief Executive Officer Steve Johnston will take a short period of leave as he recovers from a medical procedure.

The company said the leave is expected to be brief.

During this period, Chief Financial Officer Jeremy Robson will step into the role of acting CEO.

Neil Wesley, currently General Manager of strategy, corporate development and investor relations, will serve as acting CFO.

The update was released ahead of market open, with the board expressing its support for Johnston and wishing him a speedy recovery.

Management continuity in focus

The announcement points to a structured internal transition, with senior executives stepping into interim roles.

Robson's appointment as acting CEO indicates the company is relying on leadership already familiar with its operations, financial position, and strategic priorities.

Wesley's move into the CFO role maintains oversight across key financial functions, including capital management, reporting, and investor engagement.

There were no changes flagged to Suncorp's strategy, operations, or financial outlook in the update.

Share price remains volatile

Suncorp shares have been moving unevenly in recent months, reflecting a mix of sector-wide pressures and company-specific factors.

While the stock has recovered over the past month, it remains down year to date, highlighting inconsistent recent trading performance.

The decline follows a period where investors reassessed earnings momentum across the insurance sector. Suncorp's half-year results pointed to pressure from elevated natural hazard costs, alongside shifts in premium growth and claims trends.

At the same time, broader market conditions have influenced the share price as investors adjust expectations around interest rates and valuations.

The company has continued capital management initiatives, including share buybacks, which have provided some short-term support to the share price.

Foolish Takeaway

While today's update relates to leadership, the use of internal executives in acting roles maintains continuity across the business.

With no changes to guidance or strategy, the share price move reflects positioning rather than underlying performance.

The near-term direction for Suncorp shares is likely to follow insurance sector trends, along with any updates on leadership and earnings.

The post Suncorp shares slip as CEO steps aside appeared first on The Motley Fool Australia.

The RBA announced an increase of the cash rate target by 0.25%, bringing Australia's official interest rate to 4.10%.

The decision was largely due to rising inflation according to the board. 

Australia's benchmark index, the S&P/ASX 200 Index (ASX: XJO) crawled roughly 0.3% higher in Tuesday's trade following the news. 

How does the cash rate impact ASX shares?

The RBA Cash Rate plays a central role in shaping the performance of ASX-listed shares. 

When the cash rate rises, borrowing becomes more expensive for businesses and consumers, which can slow economic activity and reduce company profits, often putting downward pressure on share prices. 

Higher rates also make fixed-income investments like bonds more attractive relative to equities, leading some investors to shift money out of shares. 

Conversely, when the cash rate falls, borrowing is cheaper, encouraging spending and investment, which can boost corporate earnings and generally support higher share prices. 

In this way, changes in the cash rate influence both company fundamentals and investor behavior across the ASX.

For the everyday consumer, changes in the cash rate affect how much they pay on mortgages, loans, and credit cards, influencing their spending power and overall cost of living.

While past performance does not guarantee future returns, here are ASX shares that may benefit from a higher rate environment. 

Insurance companies

Insurers can benefit from interest rate rises because they invest premiums and earn more when yields rise. 

This could be ideal for ASX shares like: 

• QBE Insurance Group Ltd (ASX: QBE)
• Suncorp Group Ltd (ASX: SUN)
• Insurance Australia Group Ltd (ASX: IAG)

All three saw share price rises yesterday on the back of the RBA announcement. 

In simple terms, higher interest rates = higher investment returns on premiums, which directly lifts insurers' earnings.

QBE and IAG have also attracted positive analysis from brokers recently, indicating it could outperform markets in the short-term. 

Financial and cash-sensitive businesses

Two other ASX shares that could outperform due to rising interest rates are: 

• Macquarie Group Ltd (ASX: MQG)
• Computershare Ltd (ASX: CPU)

These companies directly earn more income from cash balances or client funds. 

For example, Computershare's profits can rise significantly as interest earned on client balances increases.

Meanwhile, Macquarie Group can benefit from higher interest rates because it earns more income on its large pools of client funds and investments, while also profiting from increased margins in its lending and financial services businesses.

The company also has a long track record of generating strong profits across market cycles.

The post 5 ASX shares that could benefit from rising interest rates appeared first on The Motley Fool Australia.

Meanwhile, experts have recommended that investors sell two popular ASX 200 financial shares.

Here's why.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

The Soul Pattinson share price is 1.5% higher at $38.35 on Tuesday, and up 16% over the past 12 months.

Soul Patts is a diversified investment house that invests across a range of industries and asset classes, including ASX shares.

On The Bull this week, Mark Elzayed from Investor Pulse revealed a sell rating on this ASX 200 financial share.

Elzayed explains his sell rating:

SOL has long earned its place in Australian portfolios because of its enviable dividend record and conservative stewardship.

Even so, we see grounds for a tactical exit.

The valuation has moved to a premium relative to underlying asset momentum, with the price-to-earnings ratio sitting well above its longer term average.

Elzayed also spoke of moderation across Soul Patts' core holdings of New Hope Corporation Ltd (ASX: NHC) and TPG Telecom Ltd (ASX: TPG) shares and the Brickworks business.

(New Hope shares are among the biggest fallers of the ASX 200 on Tuesday — here's why.)

Elzayed concluded:

Softer global coal prices are tempering the exceptional cash generation previously delivered by New Hope, while TPG continues to navigate an intensely competitive telecommunications landscape.

Absent a meaningful acquisition to reignite growth, the fading post-merger enthusiasm around the Brickworks restructuring could leave the shares marking time.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is $14.42, up 2.3% on Tuesday and down 25% over 12 months.

Also on The Bull this week, John Athanasiou from Red Leaf Securities gave the insurance giant a sell rating.

Athanasiou explained:

While premium rate increases have helped, we believe margin expansion is peaking. Earnings are exposed to claims inflation, natural catastrophe volatility and regulatory scrutiny.

Half year results to December 31, 2025 highlighted these risks. Profit after tax of $263 million was down from $1.1 billion in the prior corresponding period. Cash earnings were hit by higher natural hazard costs and the interim dividend was reduced.

Suncorp declared a fully franked interim dividend of 17 cents per share for 1H FY26, down from 41 cents per share in 1H FY25.

The Suncorp interim dividend represents a payout ratio of 68% of cash earnings, and will be paid on 31 March.

Athanasiou added:

Much of the recent improvement reflects cyclical conditions rather than structural change.

In our view, the valuation is vulnerable given competitive pricing pressure and rising affordability concerns. 

The post 2 ASX 200 financial shares to sell: Experts appeared first on The Motley Fool Australia.

Let's see what they are saying about these shares, courtesy of The Bull. Here's what you need to know:

Guzman Y Gomez Ltd (ASX: GYG)

The team at Red Leaf Securities is bearish on this Mexican quick service restaurant operator and has named it as a sell this week.

It feels that the company's shares are expensive, especially given how much value the market is placing on its ambitious global expansion. It explains:

GYG is a Mexican themed restaurant chain. We retain a sell rating despite Australian brand strength. Expansion in the United States is in its early stages and carries execution risk. Challenges include increasing labour costs, operating costs and competition.

Revenue and profit growth were overshadowed by share price weakness after the company released its first half result in fiscal year 2026 on February 20. In our view, investors are paying a premium for ambitious long term store targets. In a higher cost-of-capital environment, the valuation leaves little margin for error.

Suncorp Group Ltd (ASX: SUN)

Another ASX share that Red Leaf Securities has been looking at is insurance giant Suncorp.

It has concerns that the company's margins have peaked and believes it could be vulnerable to competitive pricing pressure. As a result, it has named Suncorp shares as a sell. It explains:

Suncorp provides insurance products and services. While premium rate increases have helped, we believe margin expansion is peaking. Earnings are exposed to claims inflation, natural catastrophe volatility and regulatory scrutiny. Half year results to December 31, 2025 highlighted these risks. Profit after tax of $263 million was down from $1.1 billion in the prior corresponding period.

Cash earnings were hit by higher natural hazard costs and the interim dividend was reduced. Much of the recent improvement reflects cyclical conditions rather than structural change. In our view, the valuation is vulnerable given competitive pricing pressure and rising affordability concerns.

Worley Ltd (ASX: WOR)

Over at EnviroInvest, its analysts think that Worley shares are a buy.

They like the engineering services company due to its exposure to sustainability and energy transition work. EnviroInvest said:

Worley provides engineering and project services across energy, chemicals and resources. Aggregated revenue of $6.3 billion in the first half of fiscal year 2026 was up 5.4 per cent on the prior corresponding period. Underlying earnings before interest, tax and amortisation of $377 million was up 0.3 per cent. More than half of new awards were linked to sustainability and energy transition work. Legacy hydrocarbons exposure remains, but capital is increasingly directed to low carbon infrastructure.

The post Buy, hold, sell: Guzman Y Gomez, Worley, and Suncorp shares appeared first on The Motley Fool Australia.