The team at Morgans has been busy running the rule over a number of ASX shares this month.
Two of these shares have been named as buys and two have been named as holds. Let's see what the broker is saying about them now:
Bapcor Ltd (ASX: BAP)
This auto parts company's shares have been hammered this month following a disappointing update and it isn't hard to see why. Morgans commented:
BAP delivered an especially weak update: FY25 NPAT of A$81-82m (-14% pcp; 2H25 NPAT -21% hoh); A$48-50m in significant items; A$24m in overstatements in past profit; and the immediate resignation of three Board members. The group's exit rate into FY26 weakened materially post the April 25 Investor Day. Implied 2H25 NPAT was 30% below consensus expectations, all divisions delivered negative 2H25 sales growth (vs 1H25), and trading in May-June was noticeably soft (specifically within Trade).
In light of this, it may not come as a big surprise to learn that Morgans isn't recommending Bapcor as an ASX share to buy right now. It has put a hold rating and $3.70 price target on its shares.
The broker appears to believe that investors should wait to see if its latest turnaround is successful before picking up shares. It said:
BAP is pursuing another turnaround under a refreshed leadership team. While we see meaningful value in the core business, the sharp deterioration in trading performance since the April 25 update has materially reduced confidence in near term earnings. Execution risk remains high given BAP's size and the complexity of its operations, and we prefer to see clear evidence of progress before revisiting the investment case.
Regal Partners Ltd (ASX: RPL)
This fund manager could be an ASX share to buy according to analysts at Morgans.
They were impressed with the company's performance during the first half of 2025. And given its attractive valuation, the broker thinks now could be a good time to invest and has put a buy rating and $3.55 price target on its shares. It said:
[W]e update our earnings estimates to reflect updated 1HCY25 performance fees, 1HCY25 NPAT guidance of $40m and continued FUM growth through the Jun-25 quarter. Trading at a PER of 13x (CY26), with a strong balance sheet and capacity to continue growing FUM, we retain our BUY rating with a price target of $3.55/sh.
Peter Warren Automotive Holdings Ltd (ASX: PWR)
Another ASX share that Morgans has been looking at is auto retailer Peter Warren Automotive.
While it was pleased with its recent update and believes its margins have hit a cyclical bottom, it isn't enough for a buy rating just yet. The broker has retained its hold rating with an improved price target of $1.75. It said:
PWR provided FY25 underlying PBT guidance of ~A$22m, with 2H25 PBT of ~A$15m up from A$7.1m in 1H25. Guidance was above the company's previous statements pointing to a flat 2H25 earnings outcome. PWR noted the 2H25 uplift was delivered via an improved seasonality outcome (June end-of-year marketing campaigns) and actions to optimise inventory and costs.
Whilst margins have likely bottomed and a solid earnings recovery should be delivered into FY26/27, the business looks to lack meaningful structural growth drivers until consolidation can recommence.
Step One Clothing Ltd (ASX: STP)
A final ASX share that Morgans has been looking at is online underwear retailer Step One.
While its recent trading update was weaker than expected, Morgans remains positive and has reaffirmed its buy rating with a trimmed price target of $1.50. It also expects a very big dividend yield in the near term.
Commenting on the company, the broker said:
STP has provided a weaker than expected trading update, with EBITDA expected to be down (4)% yoy for FY25, driven by a challenging consumer environment. […] We think this implies a larger portion of total revenue has been generated during discount periods, and as such placing pressure on gross margins. We expect STP will have pulled back on marketing spend to offset some margin pressure.
We have downgraded our FY25/26 NPAT forecasts by 14% and 17% respectively driven by lower sales growth and lower gross margins. Our target price reduces to $1.50 driven by earnings revisions and lower peer multiples. We retain our Buy recommendation, STP is trading at <10x FY26 PE, offering a ~10% dividend yield.
