Morgans says these top ASX shares are buys

The broker has good things to say about these stocks.

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There are plenty of ASX shares out there for investors to choose from.

To narrow things down, let's take a look at three that Morgans has just named as buys. They are as follows:

betr Entertainment Ltd (ASX: BBT)

Morgans remains bullish on this sports betting company and sees it as an ASX share to buy.

It has put a buy rating and 42 cents price target on its shares. It explains:

We have updated our model to incorporate BETR Entertainment's (BBT) sizeable minority stake in PointsBet Holdings (PBH) into valuation. This adjustment improves transparency around how the PBH position flows through to equity value. No changes to operating assumptions for the core business are made as part of this event. Our target price increases to $0.42 (from $0.38). We retain a Buy recommendation. BBT is scheduled to release its FY25 result on 28 August.

DigiCo Infrastructure REIT (ASX: DGT)

This data centre operator could be an ASX share to buy according to Morgans.

It has put a buy rating and $4.85 price target on its shares, which is notably higher than its current share price of $2.76.

While disappointed with its FY 2025 results and guidance for the year ahead, the broker remains positive and sees potential for a material lease transaction to unlock value. It explains:

DGT's FY25A result fell short of investors' expectations, providing little in the way of quantitative earnings guidance for FY26, as EBITDA growth remains dependent on the timing of new contract commencements, renewals and remixing of existing capacity. The company does however expect to add an additional 6MW of capacity at SYD1 by Jun-26, which we estimate could see EBITDA increase >20%, once billing.

Investors are demanding tangible evidence of leasing progression, whilst management have been, until now, largely hamstrung by approvals and construction timings. Whilst we appreciate the frustration, we remain of the opinion the asset can lease-up, with a material lease transaction the catalyst to unlock value. On this basis, we retain our BUY rating at $4.85/sh price target.

GemLife Communities Group (ASX: GLF)

A third ASX share that gets the thumbs up from Morgans is GemLife. It is a provider of resort style living for homeowners aged 50 and over.

The broker has initiated coverage on its shares with a buy rating and $5.25 price target.

Morgans believes that the company is well-placed to benefit from growing demand from the downsizer market and insufficient future supply from land lease community (LLC) operators. It said:

With growing demand from the aging 50+ housing downsizer market and insufficient future supply from Land Lease Community (LLC) operators, we believe GLF is positioned to grow earnings as it builds out an extensive portfolio of 9,836 sites across the eastern seaboard. Whilst GLF trades at a price-to-earnings multiple (FY26) discount to its two nearest peers (INA and LIC), we believe GLF can establish itself at the ASX's premium single focus LLC operator.

GLF's free cash flow positive model and capacity to fund growth ambitions from retained earnings, should see the business grow faster than peers, without needing to seek additional capital. As a result, we initiate coverage with a BUY recommendation and a 12-month target price of A$5.25/sh, based on a blended average of PER, SOTP and DCF.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PointsBet. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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