The team at Morgans has been busy looking at a number of ASX 200 shares following recent update.
Two that have fared well and have been upgraded by the broker are named below. Here's what it is saying about them:
Lovisa Holdings Ltd (ASX: LOV)
The first ASX 200 share to get an upgrade from Morgans is fashion jewellery retailer Lovisa.
While the company's trading update was a touch softer than it was expecting, it acknowledges that its sales growth has been very strong so far in FY 2026. Especially in such a tough economic environment.
So, with its shares taking a tumble, the broker has upgraded them to a buy rating with a trimmed price target of $40.00. Based on its current share price, this suggests that upside of approximately 30% is possible.
Commenting on its recommendation, Morgans said:
LOV provided a trading update for the first 20 weeks of FY26 which was slightly below expectations. LFL sales have slowed in the last 12 weeks and store rollout was a little bit slower than expectations, but total sales growth remains strong (over 20%). We see very few Australian retailers able to deliver +20% sales growth in light of the ongoing challenging retail trading conditions. Given the share price weakness, we have upgraded to a BUY from an ACCUMULATE.
We see this as a great opportunity to buy this high quality retailer with a global store rollout opportunity trading back around its average 10-year 1-year forward PE multiple (~31x), offering ~20% EPS growth CAGR over the next 3 years. We have lowered our price target to $40 (from $44.50) driven by moving back to 50/50 weighting EV/EBIT and DCF valuation.
Megaport Ltd (ASX: MP1)
Morgans was pleased with this network-as-a-service provider's performance so far in FY 2026, highlighting that its net revenue retention (NRR) and annual recurring revenue (ARR) have grown strongly since the end of the last financial year.
In addition, it has updated its forecasts to reflect the acquisition of Latitude.sh and its network expansion into the India market.
This has led to Morgans upgrading its shares to a buy rating with a $17.00 price target. This implies potential upside of 22% for investors over the next 12 months.
Commenting on its upgrade, the broker said:
We update our forecasts to include MP1 recent capital raising, acquisition of "Compute-as-a-Service" provider Latitude.sh and network expansion into India. The acquisitions accelerate revenue and EBITDA growth while the core MP1 business keeps improving. Since June 2025 NRR (net revenue retention) has lifted 2 ppts to 109%. Revenue and ARR (annual recurring revenue) growth is strong. We upgrade to a BUY recommendation and our target price moves to $17.
