If you’re looking to expand your investment portfolio, it might be beneficial to explore the ASX stocks mentioned in this article.
That’s due to the Morgans team recently issuing buy ratings and anticipating a significant increase. Let’s check what the broker is advising clients:
Catalyst Metals Ltd (ASX: CYL)
Morgans believes this gold miner might be a worthwhile ASX stock to consider purchasing. It has assigned a buy rating and set a target price of $6.93 for the shares. This suggests a possible increase of 43% for investors compared to current prices.
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Speaking about the enhancement, the broker remarked:
Prior to the June quarter results, we have updated our model to include the recent Old Highway acquisition and revisions to the quarterly and FY26 projections. Given that most ASX gold producers have reported unit costs at the higher end of our expectations, we have revised our cost estimates to align with the general upward movement in the gold sector. We have upgraded CYL to a BUY rating (previously ACCUMULATE). Our target price has been adjusted to A$6.93ps (down from A$7.15ps) due to changes in unit costs.
Tyro Payments Ltd (ASX: TYR)
Another ASX stock receiving a positive rating from Morgans is the payments firm Tyro Payments.
The broker has recently assigned a buy rating and set a price target of $1.55 for the company’s stock. With the current share price at 99 cents, this indicates a potential increase of around 56% over the next year.
Morgans believes that the decline in stock price is due to theRBA’s initiative to prohibit credit card feeshas been an excessive response. It stated:
The Australian Reserve Bank (RBA) has issued a Consultation Paper as part of its evaluation of merchant card payment expenses and surcharging. Despite management’s assurance that the regulatory adjustments will not affect TYR’s profitability, we believe the risks associated with changes to surcharging have been exaggerated. We have not made any changes to our earnings or price target in this report. We still consider TYR to be undervalued, with more than 20% potential growth from our target price of A$1.55, and we keep our BUY recommendation.
Polynovo Ltd (ASX: PNV)
Ultimately, this medical equipment firm may be an ASX stock worth considering as per Morgans. However, it would only suit investors who have a high tolerance forrisk.
Morgans maintains a speculative buy recommendation and has set a target price of $2.11 for the stock. This suggests an approximate 30% increase in value for shareholders from the present level.
Speaking about its value, the broker stated:
We have revised our PNV forecasts prior to the FY25 outcome. There have been no adjustments to our FY25 projections; however, our gross profit margin has declined, and expenses related to regulation and entry into new markets have risen in FY26 and FY27. Consequently, our DCF valuation has dropped to A$2.11 (previously A$2.25), although the discount applied to the valuation has lowered to 20% from 25%, keeping our target price steady at $1.69. We continue to hold a SPECULATIVE BUY rating for PNV.
The post Morgans states that these ASX stocks could increase by 30% to 50% appeared first on The Motley Fool Australia.
More reading
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- Morgans suggests 3 ASX shares to consider purchasing
Motley Fool contributor James Mickleborodoes not hold any shares in the stocks mentioned. The Motley Fool Australia’s parent company, Motley Fool Holdings Inc., holds positions in and has advised on PolyNovo and Tyro Payments. The Motley Fool Australia has recommended PolyNovo and Tyro Payments. The Motley Fool has adisclosure policy. This article provides general investment guidance only (under AFSL 400691). Approved by Scott Phillips.
