Morgans says to buy these two ASX shares

These ASX shares are worth monitoring according to Morgans.

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Key points

  • Morgans recommends buying Symal Group shares, citing its recent acquisition strategy and geographic expansion into South East Queensland as positive factors.
  • Guzman Y Gomez shares have dropped over 50% this year due to valuation issues and disappointing US results, but Morgans still sees potential for recovery, reinforced by positive feedback on a new menu item.
  • Guzman Y Gomez's recent menu innovation, the BBQ Chicken Double Crunch, is noted as a cost-effective strategy that could drive same-store sales growth, leading Morgans to maintain its buy rating.

The team out of Morgans yesterday released updated guidance on two ASX shares that have performed very differently in 2025.

Both ASX shares have buy ratings from the broker.  

Here's the latest guidance out of Morgans.

Symal Group (ASX: SYL)

Symal Group specialises in public and private infrastructure. It offers a range of services, including contracting, plant and equipment hire, material sales, recycling, and remediation services.

The company has seen its share price rise an impressive 80% in 2025. 

It announced yesterday it has entered into a $28 million conditional agreement to acquire the assets of Queensland-based civil contracting and haulage businesses Timms Group and L&D Contracting via an upfront cash purchase.

This ASX share rose 5% on the back of this announcement. 

Morgans is optimistic on this news, saying the acquisition largely reflects the company's intention to continue expanding both its geographic and sector diversification, via a mix of organic and acquisition-led strategies. 

The further expansion into South East Queensland is seen as a positive, as the business expands its wider East Coast presence and looks to take advantage of South East Queensland infrastructure projects.

The broker said the company has a mix of organic and acquisition-led growth, combined with a healthy balance sheet and an undemanding earnings multiple (vs peers). 

Based on this guidance, Morgans reiterated its Buy recommendation. 

It has increased its target price to $3.75, as a result of higher earnings expectations and a progressively reducing peer multiple discount.

Based on yesterday's closing price of $3.07, this indicates an upside of 22.15%. 

Guzman Y Gomez (ASX: GYG)

Unlike the previous ASX share mentioned, Guzman Y Gomez shares tumbled by more than 50% this year. 

Valuation concerns and disappointing results in the US market have weighed heavily on investor sentiment.

It has consistently been a top 10 most shorted share throughout the start of December.

However the team at Morgans has reiterated a buy rating, believing the fast casual Mexican chain can bounce back. 

Morgans said in a note yesterday that GYG has launched its latest limited-time offer (LTO): the BBQ Chicken Double Crunch (BBQ CDC). 

Early feedback suggests the item is one of GYG's more indulgent menu items and taste tests have been overwhelmingly positive.

The product leverages existing ingredients, meaning no incremental complexity or cost for stores, a margin-friendly innovation that aligns with GYG's operational discipline. 

Management has repeatedly emphasised that menu innovation is a key lever for same-store sales (SSS) growth, and this launch reinforces that commitment. We reiterate our BUY rating.

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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