The team at Morgans has been busy running the rule over a number of ASX 200 shares this month.
Three that have received upgrades are listed below. Here's why the broker has turned more positive on these shares:
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Imdex Ltd (ASX: IMD)
This mining technology company's shares have been upgraded by Morgans recently. The broker has lifted them to an accumulate rating with a $3.80 price target.
Morgans believes that Imdex is positioned for strong growth in FY 2026. In fact, it believes the consensus estimate is too low and expects it to outperform. Particularly given how junior miners are spending heavily. It said:
Since the FY26 result, capital markets activity for junior miners – the key lead indicator for exploration spend – has accelerated to unprecedented levels. Though IMD is facing intense competition in sensors (Axis) and fluids (various private players), our raisings data suggests that FY26 consensus revenue growth of +10% is too low. Our data indicates that ALQ's geochemistry volumes, for which IMD's sensors have historically had a 95% correlation (IMD no longer discloses sensor volumes consistently), will be around +20-30% for the December half and the exit rate is closer to +30-40%.
For IMD, we assume +16% revenue growth in FY26 to account for competition. At NPAT, we increase our forecasts by +3% in FY26 and +7-9% in each of FY27-28. Our target price rises to $3.80 (from $3.45) which represents 30x PE (FY26 adjusted EPS). We note this is a peak historical multiple but is still a PEG of 1x as we forecast ~30% EPS growth. Upgrade to Accumulate.
Pro Medicus Ltd (ASX: PME)
Another ASX 200 share that has been upgraded by Morgans is health imaging technology company Pro Medicus.
While its analysts acknowledge that its shares trade on sky-high multiples, they believe this is justified given its quality. As a result, they have upgraded its shares to a hold rating on valuation grounds this week. They said:
PME continues to trade on elevated multiples, even at our target price with FY26F PE of ~200x, EV/EBITDA ~130x, and PEG ratio of 5x. While these metrics reflect the company's exceptional quality and growth profile, they also imply limited valuation support in the absence of new large contract announcements which is an opaque and often protracted process. At current levels, the risk-reward profile justifies a more balanced stance.
Buyers on weakness, trimmers on strength. Following a model roll forward, the valuation increases marginally to A$290 (from A$285) and our recommendation on Pro Medicus upgrades to HOLD (from TRIM), as the share price has now retraced to neutral territory versus our target price. This move is entirely valuation-driven, with no changes to our forecasts or model assumptions.
Transurban Group (ASX: TCL)
Finally, a third ASX 200 share that has been upgraded by Morgans this month is Transurban.
The broker lifted its recommendation on the toll road operator's shares to hold with a $13.39 price target. It made the move after reviewing its latest traffic data. Morgans explains:
We update our model for TCL's September quarter traffic data and US$ bond issue. 12 month target price lifts 51 cps to $13.39/s, due to c.3% forecast free cash flow upgrades reflecting mild upgrades to EBITDA (especially Brisbane and North America) and adjustments to capital management and debt service assumptions. We upgrade from TRIM to HOLD given the potential TSR (0%) at current prices.
