The team at Morgans has been busy running the rule over a number of ASX shares in recent days.
Three that have been given accumulate ratings are named below. Here's what the broker is saying about them:
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ARB Corporation Ltd (ASX: ARB)
Although this 4×4 automotive parts company's first quarter update was softer than expected, Morgans remains positive. This is because management is working on issues impacting its performance and its exposure to meaningful tailwinds at home and overseas. It said:
ARB's 1Q26 update was slightly softer than expected (1Q26 sales +3.8%; vs 1H26 cons +5.6%), as Export strength (1Q26 +17.6%) offset slower Aftermarket (+1%). Export sales, particularly in the US, continue to strengthen (and appear sustainable), as a slower Aftermarket result was driven by 'fitter' shortages; changing mix of targeted new vehicles; and slower accessorisation rates. ARB is actively addressing these issues, which we expect will improve through FY26. We remain positive on the stock and observe meaningful tailwinds (onshore and off) carrying the group into an improved FY26 result. ACCUMULATE maintained.
Morgans has an accumulate rating and $42.60 price target on its shares.
COG Financial Services Ltd (ASX: COG)
Another ASX share that Morgans is urging investors to accumulate is this financial services company.
It highlights that COG has made an acquisition that is expected to be accretive to earnings per share and increase its share of the novated leasing market. Commenting on the company, the broker said:
COG has acquired an additional 14% stake in Fleet Network (a salary Packaging/Novated Leasing business). This deal is expected to be +5% accretive to EPSA. This transaction follows hot on the heels of COG's recent acquisition of EasiFleet, another Novated Leasing/Salary Packaging business. This shows management's clear intent to aggressively increase COG's market share in the Novated Leasing space. We lift our COG FY26F/FY27F EPS by +2%/+5% reflecting the Fleet Network acquisition. Our price target rises to A$2.63 based on our earnings changes, and also a lift to our SOTP valuation multiple, to more in line with peer levels. With >10% upside to our price target, we maintain our Accumulate rating.
Morgans has an accumulate rating and $2.63 price target on its shares.
Santos Ltd (ASX: STO)
Finally, this energy producer could be an ASX share to accumulate according to Morgans.
In response to its quarterly update, the broker has upgraded its shares to an accumulate rating with a $6.80 price target. It believes that recent share price weakness has created an opportunity for investors. Morgans said:
3Q25 production and sales slightly missed expectations, on WA outages and Cooper flood impact and weaker oil-linked LNG pricing. FY25 production guidance trimmed to 89-91mmboe. After the ADNOC fallout, Santos is a bruised name, but this is at odds with core asset reliability and growth delivery visibility, creating an opportunity. Heavily discounted post-ADNOC, valuation risk-reward now skews to the upside. We upgrade to Accumulate (from Trim), with a revised A$6.80 target price.
