Share tips: this week’s buy, hold and sell recommendations

Our share tips columnists have delivered their buy, hold and sell recommendations in a stock market battling a nasty downturn.

The Aussie share market’s 7 per cent sell-off has created opportunities for investors, this week’s share tips columnists say.

Some stocks are “buy” recommendations now their prices have dipped, while others have moved from overvalued to fair value, in their view.

Others still are going from strength to strength, they say, including Qantas and Mexican food company Guzman Y Gomez.

On Friday the ASX 200 dropped 1.8 per cent, slumping to its lowest close in more than six months – 7948.2.

Ord Minnett senior private wealth adviser Tony Paterno:

BUY

Qantas Airways (QAN)

The company’s management maintains strong operational performance, and its return to paying dividends to shareholders signals confidence in its prospects.

Qantas CEO Vanessa Hudson has impressed investors. Picture: Qantas/NewsWire

APA Group (APA)

Management has insisted that the company’s balance sheet is more than strong enough to fund its expected capex, maintain distributions and stay under credit rating agency thresholds.

HOLD

Bendigo and Adelaide Bank (BEN)

The recent share price slide of around 22 per cent brings the stock level back to fairly valued.

Woodside Energy Group (WDS)

The oil and gas company is in advanced talks with several parties to sell down its stake in the Louisiana LNG project to 50 per cent. This would provide Woodside with substantial balance sheet relief.

SELL

Bank of Queensland Limited (BOQ)

Bank of Queensland is facing challenges and taking measures to address them. This comes with very material execution risk.

Tony Paterno from Ord Minnett

Toby Grimm from Baker Young

Baker Young managed portfolio analyst Toby Grimm:

BUY

IDP Education (IEL)

We are encouraged by the company’s continued operational performance in challenging conditions and see long term value in this quality global leader in international student placement and services.

Guzman Y Gomez (GYG)

Weakness post the interim results appears an over-reaction given GYG delivered better-than-expected sales growth, which is supporting a long expansion runway.

HOLD

Medibank Private (MPL)

Better-than-expected half-year results confirm disciplined cost control and continued premium and policyholder growth, which should continue for the reminder of the year.

Telstra (TLS)

The return of sustainable earnings growth driven by continued strong performance in mobile is facilitating rising dividends and further capital management.

SELL

Computershare (CPU)

Elevated short-term interest rates have proven a boon for profitability, but we do not see this as a growth area for the company and we would advocate taking profits here.

Domain Holdings (DHG)

The company’s shares have rallied well above US-based CoStar Group’s $4.20 per share takeover offer, and we feel the premium currently on offer represents full value.

Originally published as Share tips: this week’s buy, hold and sell recommendations