October was a relatively flat month for many ASX stocks.
The S&P/ASX 200 Index (ASX: XJO) started and ended October in almost the exact same position – around 8,834 points.
However, the team at Morgans has just upgraded its view on two ASX stocks that could provide investors with significant upside.
Here's what the broker had to say.
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Capstone Copper (ASX: CSC)
Capstone Copper operates as a copper producer with a diversified portfolio of operating assets focused in the Americas with an extensive pipeline of near-term organic growth opportunities.
Over the last six months, the Capstone Copper share price has increased by more than 85%.
The team at Morgans is optimistic that this rise can continue.
The broker upgraded its rating from accumulate to buy on Friday.
It noted that CSC had reported an earnings beat driven by strong production, costs and realised copper prices.
Operating execution continues to impress with CSC able to generate strong group production volumes despite interruptions across different assets over the course of FY25.
The broker has a $16.10 price target on the copper producer's shares.
This indicates an upside of approximately 16.59% from today's share price of $13.81.
Jumbo Interactive Limited (ASX: JIN)
Jumbo Interactive Ltd (ASX: JIN) operates in the lotteries sector. The company develops technology to manage lottery businesses and charity lotteries. It is also a major digital retailer of both national jackpot and charity lotteries in Australia.
Today, Jumbo shares have opened almost 4% weaker.
However, this may present a buy-low opportunity for potential investors.
In a note out of Morgans on Friday, the broker said the company has entered the US market by acquiring Dream Giveaway USA for $55.4 million. This follows another recent acquisition in the UK as part of a shift from slower B2B to faster-growing B2C operations.
We view this as disciplined capital allocation: Acquiring proven profitable assets at reasonable multiples with clear operational improvement pathways. The two B2C acquisitions combined add a base line A$24m in pro-forma EBITDA.
It seems the team at Morgans is optimistic about this ASX stock based on these acquisitions. The broker has upgraded its 12-month price target to $16.60 (previously $15.90).
From today's stock price of $11.28, this indicates an upside of more than 47%.
