Buy, hold, sell: Morgans gives its verdict on 3 ASX shares

Here's what the broker is saying about these shares.

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The team at Morgans has been busy looking at a number of ASX shares in recent weeks.

Three that it has given its verdict on are revealed below. Is it bullish, bearish, or something in between? Let's find out:

Baby Bunting Group Ltd (ASX: BBN)

Morgans has become more positive on this baby products retailer's shares following recent weakness.

And while it isn't quite ready to recommend Baby bunting as a buy, it has lifted its rating to hold (from trim) with a $2.70 price target. Commenting on the ASX share, the broker said:

The recent share price pullback has provided an opportunity to move our recommendation to HOLD (from TRIM), now offering ~6% TSR to our unchanged target price. Refurbished stores to date have performed above our expectations and management's target range (15-25%).

Up to October, the 3 refurbished stores have seen sales up 30% on the pcp. BBN has now completed 9 refurbishments, and we expect BBN to provide an update on performance at the 1H26 result. We see the risk/ reward now more balanced, and 14x FY27 PE as a fair valuation. We have made no changes to our forecasts or valuation. We have a $2.70 price target.

EBR Systems Inc (ASX: EBR)

An ASX share that Morgans is more positive on is EBR Systems. It is a medical device company focused on the treatment of cardiac rhythm disease through wireless cardiac pacing. It has a buy rating and $2.95 price target on its shares.

Morgans has been impressed with the company's commercial performance and highlights its sizeable total addressable market (TAM). It said:

4Q25 delivered a clear step-up in commercial execution, with case volumes doubling q/q and revenue materially ahead of expectations, confirming accelerating physician uptake during the Limited Market Release (LMR). Preliminary 4Q revenue of US$0.87-0.94m exceeded our estimate by c60%, with FY25 revenue of US$1.55-1.62m validating early pricing and demand assumptions.

We view clinical momentum with the WiSE-UP post-approval study and the TLC-AU feasibility study as supporting longer-term adoption and label expansion. Updated TAM of US$5.8bn (+60%) highlights a materially larger opportunity, underpinned by growth in leadless pacing and de novo CRT applications. We adjusted CY25-27 forecasts, with our DCF-based valuation increasing to A$2.95. BUY.

Treasury Wine Estates Ltd (ASX: TWE)

Finally, this wine giant's shares have fallen heavily over the past 12 months. Unfortunately, Morgans doesn't believe this necessarily means they are in the buy zone yet.

The broker has a hold rating and $5.25 price target on its shares. Commenting on the Penfolds owner, Morgans said:

As we feared, but even weaker than expected, TWE's trading update meant that consensus estimates were far too high. Its US performance was particularly disappointing given of all the capital spent in recent years. Gearing is now well above TWE's target range and will remain high for the next couple of years.

While we made large downgrades to our forecasts only two weeks ago following the goodwill write-down, TWE's new trading update has seen us make another round of material revisions. We stress that earnings uncertainty remains high. It will take time for new management to deliver more acceptable returns and for TWE to rebuild credibility with the market. We maintain a HOLD rating.

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Treasury Wine Estates. The Motley Fool Australia has positions in and has recommended Treasury Wine Estates. 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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