Looking for new additions to your investment portfolio this month? If you are, it could pay to listen to what analysts at Morgans are saying about the ASX stocks in this article.
They have just been given buy ratings and are tipped to rise meaningfully from current levels. Here's what the broker is saying about them:
Navigator Global Investments Ltd (ASX: NGI)
Morgans believes that this alternative asset management company's shares are undervalued.
It highlights that despite rising over 70% this year, its shares are still trading at just 13x estimated FY 2026 earnings.
This comes at a time when management is aiming to double its earnings over the next five years, which implies a compound annual growth rate (CAGR) of 15%. It said:
Navigator Global Investments (NGI) is an alternative asset management firm focused on partnering with leading global alternative managers, with exposure to 11 boutique firms across hedge funds, private markets, structured credit, macro, commodities and derivatives. NGI operates a simple and effective model: it takes minority stakes in high-quality, high-margin alternative managers and supports their growth with capital and strategic services. The model creates a highly diversified earnings base with strong growth potential through adding scale (new partnerships) to the existing platform.
NGI has a strategic ambition to double EBITDA over five years, implying ~15% CAGR. We believe the business has the operating structure and expertise, is self-funding, and has a large addressable market for acquisitions to achieve this target. Earnings resilience is a key feature supported by high diversity in its Assets under management (AUM) across asset classes, managers, investment strategies, and investor channels. At ~13x FY26F PE, we see this earnings durability and growth potential as undervalued.
Morgans has initiated coverage on the ASX stock with a buy rating and $3.45 price target. This implies potential upside of 17% for investors from current levels.
Polynovo Ltd (ASX: PNV)
Another ASX stock that Morgans has put a buy rating on is Polynovo.
It is a medical technology company aiming to simplify the management of acute complex wounds with its NovoSorb BTM product. This is a dermal scaffold for the regeneration of the dermis when lost through surgery, trauma or burn.
Morgans has turned more positive on the company after it strengthened its board and finally appointed a new leader. It was also pleased to see that its recent trading update suggests that the company is on to achieve its revenue forecast in FY 2026. It said:
Following changes to its Board and with the appointment of a new CEO, we see more stability and focus returning to the PNV business. The 1Q26 trading update sees group sales up 33% and gives us confidence our full-year revenue forecast (up ~17%) is on track. We sit below revenue consensus but in line with EBITDA. We have made no changes to forecasts. However, we have removed our discount to the target price which now sits at A$2.03 (was A$1.69). We have moved our recommendation up to BUY from SPECULATIVE BUY.
As mentioned above, Morgans has a buy rating and $2.03 price target on its shares. This suggests that upside of 68% is possible between now and this time next year.
