The team at Morgans has been busy running the rule over a number of ASX shares this week.
Three popular shares that the broker has given its verdict on are listed below. Here's what it is saying about them:
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Goodman Group (ASX: GMG)
Morgans was pleased with this industrial property company's performance in FY 2025 and its outlook for the year ahead. Particularly given its exposure to the growing data centre market.
In response, the broker has retained its accumulate rating with a $38.40 price target. Commenting on Goodman, it said:
GMG continues its growth trajectory, with FY26 guidance to see EPS increase 9% (vs pcp). The data centre buildout gathers pace and now represents 57% of Work In Progress (WIP) and will likely drive a higher production rate over the medium term (a key driver of development earnings).
We continue to see the opportunity in GMG, which offers one of the highest quality exposures amongst our REIT coverage. So, whilst upside is limited, GMG offers long run exposure to a substantial data centre deployment and the stock remains a core portfolio holding, hence the ACCUMULATE recommendation and $38.40/sh price target.
Megaport Ltd (ASX: MP1)
Another ASX share that has been given an accumulate rating (with an improved price target of $16.50) is network-as-a-service provider Megaport.
It notes that Megaport delivered a result ahead of expectations and highlights its "top tier" LTV:CAC ratio. It said:
MP1's FY25 headline result was a beat vs expectations due to currency gains and inline on an underlying basis. Most importantly, revenue growth is accelerating. Excluding "accelerated investment" FY26 EBITDA would be 10% above consensus expectations. However, management have opted to supercharge growth and invest an additional 10% of revenue into sales, marketing and engineering. This OPEX drags short-term EBITDA lower.
However, as explained below, this additional investment increases our valuation because the returns on incremental spend are high. MP1's LTV:CAC ratio is 6x which is top tier and means every $1 spent on Customer Acquisition adds $6 of gross profit, which lifts our DCF. We reduce our short-term forecasts, but our DCF-based valuation lifts due to higher medium-term free cash flow on higher short-term investment spend.
Objective Corporation Ltd (ASX: OCL)
Finally, this public sector software provider's shares are a hold according to Morgans with a $22.90 price target.
It was pleased with its results, which were in line with expectations, but feels that its shares are fairly valued after rallying strongly. It explains:
OCL delivered a solid FY25 result, broadly in line with MorgF. NPAT of $35.4m (+13% YoY) as in line with MorgF & Consensus, whilst Underlying EBITDA of $46.4m (+5% YoY) was ~3% behind MorgF.
Having stumbled to reach its ARR targets in recent years, OCL achieved +15% ARR growth (supported by its recent Isovist acquisition) and reiterated a similar growth target for FY26 which along with prospects for ASX300 index reweighting saw the market react favourably. Whilst we see OCL's outlook as remaining supportive of strong growth into FY26, OCL's share price reaction yesterday (+20%), in our view sees the stock fairly valued.
