The team at Morgans was busy running the rule over the results of a number of popular ASX stocks last week.
Let's see how three big names fared after the broker reviewed their updates. Are they buys, holds, or sells?
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ANZ Group Holdings Ltd (ASX: ANZ)
Morgans concedes that ANZ's first-quarter update implies that it is trading ahead of expectations during the first half of FY 2026.
However, it notes that this was driven by cost reductions. So, with management retaining its cost guidance for the full year, it isn't getting overly excited by the update.
In fact, due to valuation reasons, the broker has downgraded ANZ shares to a sell rating with a slightly improved price target of $32.65. It said:
On face of it, the 1Q26 trading update suggested ANZ was tracking ahead of 1H26 growth expectations. However, the beat was driven mostly by the speed of cost-out and will unlikely affect consensus expectations as ANZ retained its FY26 cost guidance of c.$11.5bn. We make minor adjustments to FY26-28F EPS, reflecting 1Q26 Markets revenue strength, impairment charges lower than expected (but off an already low base), and higher shares on issue (DRP uptake was higher than assumed). 12-month target price $32.65 (+8 cps).
We estimate ANZ is trading on 1.8x P:TBV, 16x PER, and 4.1% cash yield (partly franked), all stretched against historical trading ranges. Given the recent share price strength, we downgrade our rating from TRIM to SELL with a potential TSR of -15%.
Breville Group Ltd (ASX: BRG)
Morgans was pleased with this appliance manufacturer's half-year results and particularly its operational execution in a difficult environment. In light of this, the broker has retained its buy rating with an improved price target of $40.65. It explains:
1H26 was better-than-feared, with double-digit sales growth (+10%) largely offset by tariff costs (~130bp GM impact) to deliver a flat NPAT outcome (+1% on pcp). Crucially, FY26 EBIT growth guidance provides much-needed earnings visibility, alleviating some concerns for an extended transition year and improving our confidence for a resumption of sustainable EPS growth from FY27+.
We continue to be impressed by BRG's strong operational execution, green shoots in Food Prep, and powerful medium-term tailwinds (geographic expansion, espresso tailwinds, NPD, Best Buy developments). Buy maintained.
South32 Ltd (ASX: S32)
Lastly, diversified mining giant South32 delivered a first-half profit result and dividend that was ahead of the market's expectations.
But due to a recent share price surge, the broker has been forced to downgrade South32's shares to an accumulate rating (from buy) with an unchanged price target of $5.00. It explains:
Bumper 1H26 EBITDA comfortably ahead of consensus and close to our estimate, riding consistent production and higher base and precious metals. 15% interim dividend beat and upsized capital management of an extra US$100m. Not all positive, Hermosa budget increase flagged for H2 a ST risk to monitor. Guidance unchanged, besides Brazil Aluminium output and capex timing tweaks.
We lower our rating to ACCUMULATE (from BUY) with an unchanged A$5.00 TP, recommending patience when adding following the recent share price surge.
