Morgans says accumulate these ASX 300 shares

The broker has given its verdict on these shares. Let's see what it is saying.

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Key points

  • An automotive retailer receives an accumulate rating due to strategic acquisitions and investments expected to boost earnings significantly.
  • A coal miner is rated accumulate, with positive long-term views on thermal coal pricing and a solid financial position attracting patient value investors.
  • An animal nutrition provider's recent acquisition strengthens its market position, with anticipated earnings growth leading to an accumulate rating.

The team at Morgans has been reviewing a number of ASX 300 shares after recent updates.

Three that have been given accumulate ratings are named below. Here's what the broker is saying about them:

Eagers Automotive Ltd (ASX: APE)

Morgans was pleased with this automotive retailer's recent update, which revealed a significant investment by Mitsubishi and its expansion into Canada through the acquisition of a 65% interest in CanadaOne. It said:

APE has executed on two highly strategic transactions: 1) taking a majority interest (65%) in CanadaOne Auto; and 2) Mitsubishi Corporation acquiring 20% of EA132. As part of the transactions, APE is conducting an underwritten entitlement offer (to raise A$452m) and Mitsubishi is investing A$50m in APE via a placement. The combined deals are ~15% EPS accretive (on LTM financials to June-25). APE's opportunity set has expanded, with the business having levers for a material earnings step-up over time across: domestic franchise auto (market share and margin); Canadian auto retail (significant market share opportunity); Independent used (global opportunities); and ancillary opportunities (enabled by scale).

The broker has put an accumulate rating and $33.35 price target on its shares.

New Hope Corporation Ltd (ASX: NHC)

Another ASX 300 share that Morgans has been looking at is coal miner New Hope. It notes that the company delivered a solid result in FY 2025. And given its belief that the thermal coal price has found a floor, it is feeling positive. Especially for patient value investors. It explains:

NHC delivered increased production through FY25, reduced its FOB costs, and maintained both a high dividend yield and a strong net cash position, reinforcing its operational discipline and financial resilience. NHC's strengthening production profile is underpinned by low-cost, high-margin, long-life assets. We think that thermal coal pricing has found its natural floor and that NHC offers a resilient, high-quality exposure to the next coal price cycle. NHC looks cheap, but does suit patient/ value investors, particularly as catalysts for thermal coal look limited in the short term.

Morgans has an accumulate rating and $4.35 price target on its shares.

Ridley Corporation Ltd (ASX: RIC)

Finally, this animal nutrition products provider has recently acquired the Incitec Pivot Fertilisers distribution business. Morgans notes that this transaction has turned the company into a leading diversified Australian agricultural services provider. It said:

RIC produces premium quality, high performance animal nutrition products. Its recent acquisition of Incitec Pivot Fertilisers (IPF) distribution business has now transformed RIC into a leading diversified Australian agricultural services provider. Similar initiatives that successfully turned around the base RIC business over the last few years can now be applied to IPF, underpinning solid earnings growth. Despite strong share price appreciation since announcing the acquisition of IPF, we are positive on the group's future prospects and initiate coverage with an Accumulate rating and A$3.25 price target.

As mentioned above, the broker has an accumulate rating and $3.25 price target on its shares.

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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Eagers Automotive Ltd. 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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