ASX materials stocks enjoyed a stellar year in 2025.
The S&P/ASX 200 Materials (ASX: XMJ) sector rose by an impressive 31.7%.
For context, the S&P/ASX 200 Index (ASX: XJO) rose approximately 6.3%.
This success was driven by record commodity prices including gold, silver and platinum.
However the record run might still not be over.
A fresh note out of Morgans has reinforced the upside in two ASX materials stocks.
Here's what the broker had to say.
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VBX Ltd (ASX: VBX)
VBX is a responsible and near-term producer of high-quality, low-silica Australian bauxite.
It is focused on the near-term development of high-grade, low-silica bauxite resources at its flagship project, Wuudagu, in Northern Western Australia.
Its share price has fallen 20% in the last 6 months, however Morgans is optimistic on this ASX materials stock.
The broker said the company is continuing to advance its 95.9Mt Wuudagu bauxite project.
Recent drilling at Wuudagu D, E and F confirmed these areas as new discoveries that could significantly increase the project's size.
With three additional discoveries confirmed, we see scope for an additional 35-55Mt in potential volume, before applying grade parameters. We are encouraged by average in-situ Al2O3 grades of ~40% across the reported drill datasets which may beneficiate in the same manner as the existing reserve.
The broker also said the Definitive Feasibility Study (DFS) work is progressing well and is on track for a 2026 update, supporting future offtake agreements and financing.
Based on this guidance, Morgans has reiterated its speculative buy recommendation and raised its price target to $2.10 (previously $1.60).
This indicates an upside of 320% from yesterday's closing price of $0.50.
Tesoro Resources Ltd (ASX: TSO)
Tesoro Resources is a gold developer operating in the coastal Cordillera region of Chile.
Its share price already rose more than 300% in the last year, however Morgans believes it can keep soaring.
The broker said it has maintained its buy recommendation following the company's share consolidation.
We update our TSO model, adjusting for the recently implemented 15:1 share consolidation. We maintain our SPECULATIVE BUY rating and price target of A$4.88ps. TSO remains inexpensive, trading at A$96/oz vs. a peer group average of A$220/oz, accompanied by quantum changing exploration potential.
Based on the price target of $4.88, Morgans is expecting an increase of 275% from yesterday's closing price of $1.30.
