With earnings season in full swing, the team at Morgans has provided fresh analysis on ASX shares Dexus Convenience Retail REIT (ASX: DXC) and Beach Energy Ltd (ASX: BPT).
Both companies released HY26 results over the last week.
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What did the companies report?
Dexus Convenience Retail REIT wholly owns a portfolio of service station and convenience retail assets.
It released its earnings results for the six months to 31 December 2025 this week.
The company confirmed an interim distribution of 10.45 cents per security and confirmed its previously provided FY26 guidance.
Highlights included a high occupancy of 99.9% maintained, and a portfolio valuation uplift of $19.8 million, supporting a 4.4% increase in Net Tangible Assets (NTA) per security to $3.80.
Meanwhile, oil and natural gas producer Beach Energy released FY26 half year earnings results last week.
The company reported 1H FY26 underlying EBITDA of $558m and underlying NPAT of $219m.
Both of these came in ahead of expectations.
An interim fully franked dividend of 1cps was also declared.
What is Morgans' take on these ASX shares?
The team at Morgans said Dexus Convenience REIT delivered a solid 1H26 operating result.
It noted that the company has agreed to acquire two fund-through developments (~$35m combined), consistent with its ongoing portfolio repositioning toward metro and highway locations.
Portfolio fundamentals remain sound, supported by long-dated leases, high occupancy and a tenant base weighted toward national operators, while gearing sits at the lower end of the target range, providing balance sheet capacity to fund the development pipeline.
The broker sees this ASX REIT as trading at a 26% discount to NAV.
It has placed an accumulate rating on these ASX shares along with a $2.90 target price.
Dexus Convenience REIT closed trading yesterday at $2.83.
For Beach Energy shares, Morgans said the noisy 1H26 result was hard to analyse.
Pushing its accounting treatments harder than its operations leaves us concerned around BPT's forward FCF profile. Gradually declining reserves could suppress BPT's valuation until it makes an acquisition, a difficult position to be in.
Based on this guidance, Morgans has downgraded its rating to trim (from hold), with an updated $1.09 target price.
Beach Energy shares closed yesterday at $1.13 each.
Foolish takeaway
Based on the guidance out of Morgans yesterday, it seems both of these ASX shares are close to fairly valued.
However elsewhere, Bell Potter is more optimistic on Dexus Convenience REIT shares.
The broker has a $3.25 price target along with a buy recommendation.
This indicates an upside of almost 15%.
