ASX Stocks With Buy Ratings Right Now – What Top Brokers Are Saying in May 2026

Highlights

• Seven ASX-listed companies — spanning commodities testing, 4WD accessories, grocery retail, gold Mining, defence technology, and digital automotive marketplaces — carry active Buy or Outperform ratings from major institutional Brokers including Macquarie, Ord Minnett, Jefferies, Bell Potter, Shaw and Partners, and Moelis Australia.
• Broker price targets across the seven stocks imply upside ranging from approximately 6% for Brambles (Macquarie Neutral, included for context) to as high as 76% for ARB Corporation (Ord Minnett Buy at AUD 31.00) and 49% for CAR Group (Bell Potter Buy at AUD 39.80) from current trading prices.
• Despite a mixed macro environment shaped by geopolitical tensions, FX Volatility, and sectoral headwinds, each of these companies has delivered recent operational updates that underpin their respective broker ratings — from ALS Limited's record FY26 Earnings to DroneShield's all-time high cash receipts quarter and Alkane Resources' record quarterly profit.

At a Glance: Broker Ratings Summary

Introduction: Why Broker Ratings Matter in the Current ASX Environment

In a market shaped by competing macro forces — from the residual inflationary impact of Middle Eastern geopolitical tensions to the structural tailwinds of the global gold price cycle and the secular rise of defence technology spending — identifying stocks where institutional research conviction is high has rarely been more relevant. Broker Buy and Outperform ratings represent a distillation of extensive financial modelling, management access, and sector expertise. While they are neither guarantees of performance nor substitutes for independent Due Diligence, they serve as a meaningful signal of where sophisticated institutional Capital sees risk-reward opportunity.

As of 19 May 2026, seven ASX-listed companies spanning six distinct sectors carry active Buy or Outperform ratings from leading institutional brokers. The companies are: ALS Limited (ALQ), ARB Corporation (ARB), Coles Group (COL), Ora Banda Mining (OBM), Alkane Resources (ALK), DroneShield (DRO), and CAR Group (CAR). Together they represent a diverse cross-section of the Australian Equity market — from defensive grocery retail to high-growth defence technology, from established industrial services to transformational junior gold miners. This article examines each company, the rationale behind the broker rating, and the most recent developments shaping the Investment thesis.

1. ALS Limited (ASX: ALQ) — Macquarie Research: Outperform | Target: AUD 23.50

ALS Limited shares were trading at AUD 23.32 on 19 May 2026, up 6.83% on the day and representing a 31.68% gain over the prior twelve months. The immediate catalyst for the day's strength was the release of a record FY26 full-year result on 18 May 2026. ALS reported Revenue of $3.32 billion, up 10.7%, with underlying NPAT growing 25.8% to $381.2 million and the EBIT Margin expanding 129 basis points to 18.0%. Free Cash Flow of $674.1 million allowed the group to reduce Leverage to 1.5x EBITDA — below its own targeted range — while paying a full-year Dividend of 42.5 cents per share, up 10.1% on FY25.

2. ARB Corporation (ASX: ARB) — Ord Minnett: Buy | Target: AUD 31.00

ARB Corporation shares have declined over 44% in the past year to AUD 17.53, making it one of the more pronounced drawdowns among ASX-listed consumer industrials. The 1H FY2026 result reported in February 2026 was the key catalyst for sentiment deterioration: Underlying Profit after tax fell 14.4% to $43.2 million, impacted by a structurally stronger Thai baht inflating Manufacturing costs, lower OEM channel orders (down 38.2%) as customers worked through excess inventory, and softness in Australian vehicle Supply for ARB's core 4x4 platforms. Despite this, the company maintained zero Debt, held $59.4 million in cash, and continued to invest in its Australian store network and US distribution infrastructure.

3. Coles Group (ASX:COL) — Jefferies: Buy | Target: AUD 25.50

Coles Group was trading at AUD 21.41 on 19 May 2026, up 2.69% on the day. The company released its Q3 FY26 sales update on 1 May 2026, covering the twelve weeks to 29 March 2026. Supermarkets comparable sales grew 3.6% — ahead of the broader market — with Volume-led growth ex-tobacco of 5.7% and eCommerce expanding 24.8% to reach 13.6% penetration of Supermarkets sales. The result demonstrated the continued effectiveness of Coles' value proposition at a time when cost-of-living pressures are steering consumers toward cooking at home rather than dining out. Management noted that early Q4 supermarket trends were broadly in line with Q3, though Liquor sales remain subdued following a step-down in consumer sentiment in March.

4. Ora Banda Mining (ASX:OBM) — Macquarie Research: Outperform | Target: AUD 1.70

OBM shares were trading at AUD 1.40 on 19 May 2026, up 6.04%, having gained nearly 40% over the prior twelve months. On 18 May 2026, Ora Banda's Board approved the DRIVE to 300 aspiration — a programme targeting approximately 300,000 ounces of annual gold production through two major capital investments: a new AUD 375 million, 3.0 million tonne per annum processing plant at Davyhurst (commissioning targeted Q3 FY28) and the AUD 90 million Waihi Underground mine (steady state targeted Q1 FY28). These approvals were accompanied by a dramatically upgraded Mineral Resource estimate — up 1.46 million ounces to 3.57 million ounces — and a 136% increase in total Ore Reserves to 555,000 ounces, underpinning the capital decisions with quality geological evidence.

5. Alkane Resources (ASX:ALK) — Moelis Australia Securities: Buy | Target: AUD 2.30

Alkane Resources shares surged 112% over the twelve months to 19 May 2026, trading at AUD 1.53 and up 4.08% on the day. The driving force behind this exceptional performance was the transformative combination with Mandalay Resources, which brought the Costerfield gold-antimony mine in Victoria and the Bjorkdal gold mine in Sweden into the portfolio alongside the established Tomingley Gold Operations in NSW. The enlarged three-mine Business delivered record Q3 FY2026 results: revenue of $274.4 million (up from $63.2 million in Q3 FY2025), EBITDA of $161.2 million, net profit of $93.0 million or 6.81 cents per share, and a cash balance of AUD 374 million with zero debt. A record realised gold price of AUD 6,315 per ounce and sustained antimony Demand at AUD 34,394 per tonne drove the exceptional margin per ounce of approximately $3,387.

6. DroneShield (ASX:DRO) — Shaw and Partners: Buy | Target: AUD 5.00

DroneShield shares have risen 139% over the prior twelve months to AUD 2.94, delivering one of the most remarkable runs in the ASX technology and defence sector. The company's Q1 2026 update, released on 22 April 2026, reported revenue of $74.1 million — up 121% year-on-year and the second-highest quarter on record. Customer cash receipts of $77.4 million were the highest ever recorded, reflecting an extraordinary 360% increase on Q1 2025. FY2026 committed revenues stood at $154.8 million, up 64% on the same point in FY2025, providing substantial forward revenue visibility. DroneShield closed Q1 2026 with $222.8 million in cash and no debt, recording its fourth consecutive quarter of positive Operating Cash Flow — a milestone that marks the transition from growth-stage to self-funding company.

7. CAR Group (ASX:CAR) — Bell Potter: Buy | Target: AUD 39.80

CAR Group shares were trading at AUD 26.70 on 19 May 2026 — down approximately 26% over the prior twelve months despite the business delivering excellent results across all geographic segments in H1 FY26. The six months to 31 December 2025 produced proforma revenue of $626 million (up 13% in constant currency), proforma EBITDA of $339 million (up 12%), and reported NPAT of $143 million (up 16%). All four segments — Australia, North America, Latin America, and Asia — delivered double-digit constant currency growth rates, with Latin America (via webmotors) posting 29% EBITDA growth and South Korea's Encar achieving 60% Guarantee product penetration of new listings. EBITDA-to-operating cash flow conversion was 95%, and the Interim Dividend was raised 10% to 42.5 cents per share.

Conclusion

The seven ASX-listed companies profiled in this analysis collectively represent a compelling cross-section of the Australian equity market, unified by active Buy or Outperform ratings from leading institutional brokers and recent operational updates that demonstrate tangible business momentum. From ALS Limited's record-breaking FY26 earnings and Alkane Resources' transformed multi-mine earnings base to DroneShield's record cash receipts quarter and CAR Group's globally diversified digital marketplace growth, each company offers a distinct investment narrative underpinned by broker conviction and identifiable forward catalysts. The range of implied upside — from modest single digits for ALS (where the price target may soon be revised higher) to north of 70% for ARB Corporation — reflects the variation in how the market has priced each recovery or growth story relative to broker assessments. Whether the current prices represent entry opportunities, tactical holds, or watchlist candidates for future positioning will ultimately depend on each investor's individual Risk tolerance, time horizon, and portfolio context — but the convergence of institutional conviction across these seven names at this moment in time is a signal worth examining carefully.