Looking to make some new additions to your investment portfolio?
To narrow things down, let's see what Morgans is saying about a few popular ASX 200 shares. Here's what the broker is saying about them:
Domino's Pizza Enterprises Ltd (ASX: DMP)
Morgans remains positive on this pizza chain operator despite a recent rebound in its share price.
In response to its annual general meeting update, the broker had retained its buy rating and $25.00 price target on its shares. It commented:
DMP's FY26 AGM update was positive, in our view, given the company is on track to exceed FY26 consensus NPAT, cost out was quantified, and its gearing metrics are improving. The trading update was weak, with Same-Store Sales (SSS) growth still negative; however, we think this is somewhat irrelevant while the business transitions to its new pricing strategy to drive higher margin sales for franchisees given the noise around the short-term volume impact of less discounting (i.e. lost sales were unprofitable anyway).
While DMP's share price has recently increased ~55% off its lows on the back of potential corporate activity, the stock is still only trading on a FY26F PE of 16x which is a ~30% discount to CKF. With improving confidence in the turnaround, we continue to think the risk reward looks attractive from here. Maintain BUY.
Orica Ltd (ASX: ORI)
Another ASX 200 shares that gets the thumbs up from Morgans is commercial explosives company Orica.
Following the release of its full year results, the broker has put a buy rating and $28.00 price target on its shares. It said:
ORI's FY25 result slightly beat consensus. It delivered another year of strong earnings and cashflow growth, improved margins and returns. Its strong balance sheet rewarded shareholders with increased capital management initiatives. The outlook remains positive and further growth is targeted in FY26.
Importantly, ORI has upgraded its medium-term growth targets for Digital Solutions and Specialty Mining Chemicals and its new 3-year RONA target has increased. With leverage to attractive industry fundamentals, market leading positions, solid earnings growth, proven management team and strong balance sheet, we reiterate our BUY rating with a new price target of A$28.00.
Xero Ltd (ASX: XRO)
Morgans wasn't overly impressed with this cloud accounting platform provider's shares.
in response, it has retained its accumulate rating and reduced its price target to $141.00.
The broker highlights that there will be higher investment expenses in the second half. It also suspects that it may take time for Xero to convince the market that its Melio acquisition was a good idea. Morgans said:
XRO's 1H26 result was largely in line with expectations but higher investment expenses in the 2H and the inclusion of Melio into our forecasts lowers our EBITDA and FCF forecasts. Our prior XRO research presented our first take on XRO including Melio numbers and now, following its 1H26 result and greater clarity on costs, we reduce our short-term forecasts and formally publish our combined XRO and Melio forecasts.
Our target price reduces ~30% to $141 on lower peer multiples and lower FCF per share. We retain our Accumulate recommendation, noting it may take some time for management to build investor confidence in the value add of Melio and return XRO back to rule of 40 growth.
