A number of big names released updates this week and Morgans has been busy running the rule over them.
In response, let's see whether the broker now rates these ASX 200 shares as buys, holds, or sells.
Image source: Getty Images
National Australia Bank Ltd (ASX: NAB)
Morgans was pleased with this big four bank's performance during the first quarter and has upgraded its forecasts to reflect this and its positive outlook.
However, due to its current valuation, the broker has reaffirmed its sell rating with a $37.27 price target. It said:
Like its peers that reported in February, NAB's 1Q26 trading update showed it is benefitting from a supportive interest rate, credit growth, and asset quality environment. We make upgrades to our forecasts to reflect performance and outlook. 12 month target price set at $37.27/sh. With more aggressive assumptions than previously we estimate a higher fundamental value for NAB. However, the share price is still trading far ahead of this revised estimate. SELL retained, with potential TSR of -17% (including 3.6% cash yield).
Santos Ltd (ASX: STO)
Another big name that Morgans has been looking at is energy giant Santos. Morgans thought the company delivered a solid result given the difficult trading conditions.
However, with its shares trading at fair value, the broker has retained its hold rating and $6.80 price target. It explains:
A solid CY25 earnings result from STO under difficult conditions, with lower commodity prices partly offset by solid cost controls and operating performances. Surprisingly large final dividend versus our estimate, with full year dividend payout equivalent to 86% of earnings and funded majority through debt. FCF was back in positive territory at US$208m, with a FCF breakeven of US$58.90/bbl. Strategic review on non-core assets could see some changes to the portfolio (Cooper, WA, Narrabri all being reviewed). We maintain a HOLD rating and A$6.80 target price.
Suncorp Group Ltd (ASX: SUN)
This insurance giant posted a sharp decline in profits during the first half due to unfavourable weather conditions. And while Suncorp also downgraded its guidance for FY 2026 slightly, Morgans remains positive.
It has retained its accumulate rating with a $17.01 price target. It said:
SUN's 1H26 NPAT (A$263m) was well down on the pcp ($1.1bn) due to bad weather, but it was only -2% below consensus ($268m). Overall, we saw this as a reasonable result, albeit similar to key peer IAG, SUN did deliver a mild downgrade to FY26 top-line growth guidance. We make relatively nominal changes to our SUN FY26F/FY27F EPS of -2%/+1% on a review of our earnings assumptions. Our PT is reduced to A$17.01 (previously A$19.28). With >10% upside to our valuation, we maintain our Accumulate rating on SUN.
