If you have room in your portfolio for some new additions, then it could be worth checking out the ASX shares in this article.
That's because the team at Morgans has recently put buy ratings on them and is tipping them to rise very strongly. Let's see what the broker is recommending to clients:
Catalyst Metals Ltd (ASX: CYL)
Morgans thinks that this gold miner could be an ASX share to buy. It has put a buy rating and $6.93 price target on its shares. This implies potential upside of 43% for investors from current levels.
Commenting on its upgrade, the broker said:
Ahead of the June quarter results we update our model to account for the recent Old Highway acquisition as well as adjustments to quarterly and FY26 forecasts. With the majority of ASX gold producers reporting unit costs to the upper end of our forecasts, we adjust our cost estimates to reflect the broader upward trend across the gold space. We upgrade CYL to a BUY recommendation (previously ACCUMULATE). Our target price moves to A$6.93ps (from A$7.15ps) as a function of unit cost adjustments.
Tyro Payments Ltd (ASX: TYR)
Another ASX share that gets the thumbs up from Morgans is payments company Tyro Payments.
The broker recently put a buy rating and $1.55 price target on its shares. Based on its current share price of 99 cents, this suggests that upside of approximately 56% is possible between now and this time next year.
Morgans thinks that share price weakness caused by the RBA's plan to ban credit card surcharges has been an overreaction. It said:
The Reserve Bank of Australia (RBA) has released a Consultation Paper as part of its Review of Merchant Card Payment Costs and Surcharging. With management adamant the regulatory changes won't impact TYR's profitability, we think risks from surcharging changes have been overstated. We make no alterations to our earnings or price target in this note. We continue to see TYR as unvalued and with >20% upside to our PT (A$1.55), we maintain our BUY recommendation.
Polynovo Ltd (ASX: PNV)
Finally, this medical device company could be an ASX share to buy according to Morgans. Though, only for investors with a high tolerance for risk.
Morgans has a speculative buy rating and $2.11 price target on its shares. This implies potential upside of almost 30% for investors from current levels.
Commenting on its valuation, the broker said:
We have updated our PNV forecasts ahead of the FY25 result. We have made no changes to our FY25 forecasts; however, our gross margin has decreased, and regulatory and new market development costs have increased in FY26 and FY27. As a result, our DCF valuation has decreased to A$2.11 (was A$2.25), although the discount applied to the valuation has reduced to 20% from 25%, leaving our target price unchanged at $1.69. We maintain a SPECULATIVE BUY recommendation on PNV.
