Morgans says these Australian shares are top buys

The broker thinks these shares could be worth a shout right now.

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If you are looking to add to your ASX share portfolio in September, then it could be worth checking out the three shares below that Morgans is positive on.

Here's what the broker is saying about these shares:

Collins Foods Ltd (ASX: CKF)

Morgans has become even more bullish on this KFC focused quick service restaurant operator following the release of a trading update this week.

In response, the broker has retained its buy rating with an improved price target of $12.20.

It thinks that management's guidance for FY 2026 could be conservative based on its strong start to the year. It said:

CKF's AGM trading update was stronger than expected, with improving sales growth seen across all regions. FY26 guidance was reiterated for low to mid-teens underlying NPAT growth. The stronger than expected 1H26 trading update confirms that guidance is likely conservative. It also includes Taco Bell losses (planned exit in FY26). Improving sales growth is being delivered through product innovation and strong execution. With a domestic consumer recovery still largely yet to play out, we see further upside from here. Maintain BUY.

Frontier Digital Ventures Ltd (ASX: FDV)

Another ASX share that gets the thumbs up from Morgans is online classifieds marketplace operator Frontier Digital Ventures.

Although its first half performance was weaker than expected, Morgans remains positive and has retained its buy rating with a trimmed price target of 55 cents. This is notably higher than where its shares currently trade.

Commenting on the company, the broker said:

FDV's 1H25 NPAT (~-A$1.6m) came in below MorgansE (-A$0.22m) due to some more one-off items (e.g. Fraud provision, FX impacts, etc). At the consolidated EBITDA level the result actually beat our expectations (A$3.26m vs A$2.40m). A positive from the result was a strong expansion of the consolidated EBITDA on the pcp (A$3.2m vs A$1.8m), but on the negative side revenue growth was down -5% on the pcp (impacted by restructuring in InfoCasas).

We lower our FDV FY25F/FY26F EPS (>10%) off low bases, reflecting slightly lower revenue and EBITDA forecasts (on a broad review of our earnings assumptions). Our PT falls to A$0.55 (previously A$0.58). We see long-term value in FDV given its assembled portfolio, and with >50% upside to our PT (A$0.55) we maintain our BUY call.

PEXA Group Ltd (ASX: PXA)

Finally, Morgans is also positive on this property settlements technology company.

While it fell short of the broker's expectations in FY 2025, it was pleased with the operational progress it made in the UK. As a result, it has upgraded its shares to an accumulate rating with an improved price target of $16.87. It said:

PXA's FY25 Group NPATA (A$41m, -6% on the pcp) appeared -11% below consensus, whilst the result was -4% below at EBITDA (A$135m, +7% on the pcp).  Although the result headline figures missed expectations, we think FY25 saw meaningful operational progress in the UK. We also like new CEO Russel Cohen's mantra of a more targeted approach to overall capital investment.

We lower our PXA FY26F/FY27F EPS by >10%, reflecting softer FY26 guidance than expected. Our PXA price target rises to A$16.87 (previously A$16.30) with our earnings changes offset by a valuation roll-forward. With >10% upside to our price target, we move to an Accumulate recommendation.

Motley Fool contributor James Mickleboro has positions in Collins Foods. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Frontier Digital Ventures and PEXA Group. The Motley Fool Australia has recommended Collins Foods. 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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