Morgans Elevates Three ASX Shares to “Buy” Ratings
In a recent review, Morgans has upgraded three ASX shares to “Buy” ratings, reflecting positive prospects for investors. The selected companies include Maas Group Holdings Ltd, Pro Medicus Ltd, and REA Group.
Maas Group Holdings Ltd (ASX: MGH)
Maas Group has positioned itself for significant growth by selling its Construction Materials division. This strategic pivot focuses on digital, artificial intelligence, and electrification infrastructure. Morgans supports this initiative, increasing Maas’s rating to a “Buy” with a price target of $5.10, indicating a potential upside of approximately 25% from its current share price of $4.11.
- Investment of $100 million in Firmus aligns with recent contract victories.
- Projected $550 million net cash balance post-investment.
- Management aims for a 20% Return On Capital (ROC) through reinvestment strategies.
Pro Medicus Ltd (ASX: PME)
Morgans has also upgraded Pro Medicus, a provider of health imaging technology, due to its recent share price decline amid broader tech sector weaknesses. The broker’s rating now stands at “Buy” with an ambitious price target of $290.00, suggesting a potential rise of 75% over the next year.
- Concerns about AI disrupting the premium imaging SaaS market are seen as overblown.
- Morgans recommends buying during this period of volatility.
REA Group (ASX: REA)
Lastly, REA Group, which operates realestate.com.au, has been given a “Buy” rating with a price target of $211.00, suggesting a 23% upside in the next 12 months. Morgans is optimistic following the company’s half-year results, which met expectations despite a slight dip.
- 1H26 results were only around 1% below projected figures.
- Reported a strong yield growth of 14%, counterbalancing a 6% decline in listings.
Morgans’ upgraded ratings for these ASX shares indicate confidence in their growth trajectories, encouraging investors to consider them for their portfolios. These strategic decisions reflect both market dynamics and company performance enhancements, reinforcing the opportunities available in the current economic climate.
