The team at Morgans has been busy running the rule over a number of ASX shares after recent updates.
Three that have fared well and have been named as buys by the broker are listed below. Here's what it is saying about them:
AVITA Medical Inc (ASX: AVH)
Morgans remains positive on this commercial-stage regenerative medicine company despite its disappointing second quarter update. It said:
AVH's 2Q25 report was a significant miss versus expectations with no sales growth on the quarter as delays and complications continue to secure reimbursement from the regional Medicare contractors. As a result, AVH has made large downgrades to guidance, and pushed guidance around profitability to the middle of next year.
But it wasn't all bad news. There was one notable positive according to the broker. It adds:
However, one notable positive element in the results is that despite a significant shortfall in sales, AVH successfully rolled through cost-base reductions as planned, decreasing the net loss with more to come in 3Q. Nonetheless, another missed guidance target is unlikely to reassure investors, and it is now evident that additional capital will be necessary to support the company to profitability.
Morgans has a speculative buy rating and $2.00 price target on its shares.
Light & Wonder Inc (ASX: LNW)
This cross-platform games developer could be an ASX share to buy according to the broker.
While it delivered a mixed quarterly update, the broker remains positive. This is due to the "unsustainable" discount that its shares trade at compared to peers. It said:
Operationally, the result fell short on the top line, with land-based revenues impacted by competitor hardware refreshes, delayed operator spend following April tariff concerns, and continued softness in SciPlay. FY25 Adj-EBITDA guidance is now US$1.43-1.45bn, while NPATA guidance has been tightened to US$550-575m.
While we remain mindful of US-based volatility during the transition, we view the current valuation discount to peers as unsustainable in light of LNW's long-term growth aspirations, market share dynamics, and constructive industry feedback. We lower our FY25-26F EPSA forecasts by ~3% to reflect more conservative growth assumptions, updated guidance, and the expanded buy-back.
Morgans has put a buy rating and $175.00 price target on Light & Wonder's shares.
Pinnacle Investment Management Group Ltd (ASX: PNI)
Finally, Morgans was impressed with this investment management company's full year results.
And while it acknowledges that its shares not cheap, it believes they are worth paying a premium to own. It said:
PNI delivered FY25 NPAT of A$134.4m, up 49% on pcp. Affiliate earnings grew 43% to A$129.7m and 39% to A$83m excluding performance fees (PF). Group FUM closed at A$179.4bn, +15.4% for the half (inflows A$16.4bn; performance A$7.6bn). 'Life Cycle' was the standout, with 2H inflows of ~A$14bn. PNI cycles a strong FY25 performance fee outcome, however earnings step-ups are coming through in Life Cycle, Metrics and potentially Five V. Medium-term 'embedded' drivers are visible from the scaling of several managers; and the long-term offshore opportunity is significant.
PNI is arguably expensive on near-term valuation multiples (susceptible to short-term volatility), however we see embedded strong growth medium term; the operating structure is now expanded to facilitate ongoing offshore growth; and near-term catalysts look supportive (solid flows outlook; acquisitions).
Morgans has an accumulate rating and $26.30 price target on its shares.
