Analysts have been working overtime this month, adjusting their financial models and recommendations to reflect the release of results.
Three ASX stocks that have fared well with analysts at Morgans are listed below. Here's what the broker is saying about them:
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Camplify Holdings Ltd (ASX: CHL)
This recreational vehicles digital marketplace platform provider could be an ASX stock to buy according to Morgans. It has responded to its half-year results by retaining its add rating and $2.85 price target.
Although the market didn't like the result, the broker remains positive. It said:
The stock closed down ~17% on result day, which we largely attribute to some seasonality in CHL's key headline metrics (future bookings, gross margins, etc). We make several cost and margin assumption changes over the forecast period (details below). Our price target remains unchanged and we maintain an Add recommendation on the stock.
Corporate Travel Management Ltd (ASX: CTD)
Another ASX stock that was sold off following its results release is this corporate travel specialist. Morgans has responded by holding firm with its add rating but trimming its price target to $20.65.
While disappointed with its guidance downgrade, it believes it is worth sticking with the company. The broker said:
The quantum of the earnings downgrade is clearly disappointing. Given the aggressive pivot in earnings guidance from the AGM last year, the market may take time to rebuild its confidence in the outlook. However, if CTD delivers even close to its five-year strategy, the share price will be materially higher in time. We maintain an Add rating with a new price target.
Sonic Healthcare Ltd (ASX: SHL)
Finally, Morgans is a fan of this ASX healthcare stock and has retained its add rating with a $34.05 price target.
Although Sonic's result was "mixed", Morgans believes its turnaround targets are achievable. It said:
Uniquely, right-sizing for rapidly declining Covid-19 testing revenues (-90%) has combined with recent acquisition costs, pressuring margins and profitability. However, management remains confident in a turnaround, outlining numerous near/medium term drivers supporting underlying profitability and reflected in guidance, which we view as achievable.
