There are a lot of ASX shares to choose from on the Australian share market.
To narrow things down, let's take a look at three that analysts at Morgans have just given their verdict on.
Is it bullish or bearish? Here's what the broker is saying:
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DigiCo Infrastructure REIT (ASX: DGT)
This data centre investment company's shares could be dirt cheap according to Morgans. It notes that its shares are trading at a 50% discount to its net asset value (NAV).
It also highlights that this NAV estimate does not include the 88MW SYD1 expansion, which could add a further $1.50 per share to its NAV. In light of this, the broker has put a buy rating and $4.15 price target on its shares. It said:
DGT continues to trade at a c.50% discount to NAV of A$4.62/security, yet that NAV does not yet reflect the full value of the 88MW SYD1 expansion, which management estimates will deliver a further c.A$1.50/security of NAV uplift at a targeted 15% yield on cost. The core thesis rests on three pillars. First, SYD1 is a genuinely scarce asset, a Tier 1 CBD carrier hotel with secured power and full planning approval operating in a structurally undersupplied market with a 200MW+ qualified demand pipeline.
Second, the business has demonstrated operating momentum, yet cash earnings are yet to materialise. Third, Australian capital partnering at or above book value would be a significant valuation catalyst. Acknowledging the share price weakness, we continue to see the opportunity in DGT, retaining our Buy rating with a $4.15/sh price target.
Magellan Financial Group Ltd (ASX: MFG)
Morgans isn't as positive on this fund manager's shares. In response to its half-year results, the broker has put a hold rating and $9.80 price target on its shares.
The broker feels that its shares are fully valued, especially given that the core business remains challenged. It said:
MFG's 1H26 operating profit after tax (A$83m) was flat on the pcp, but appeared comfortably above (+20%) Factset consensus (A$68m). Overall, whilst this result showed MFG's investment in Barrenjoey is shaping as a winner (with upside), there is still significant work to do turning around MFG's core Investment management franchise.
Following a change of analyst, we update our numbers and price target with this note. Our PT is set at $9.80 (previously (A$10.74) and stock coverage is transferred to Richard Coles. We maintain a HOLD rating on MFG, with the stock trading at only a 5% discount to our Blended valuation. Growth in the core business is still challenged (with downside risk), however we acknowledge optionality from current and future strategic investments.
Ramelius Resources Ltd (ASX: RMS)
This gold miner delivered a half-year result in line with expectations last week according to Morgans.
And while there were positives and negatives from the half, the broker remains positive and has retained its buy rating with a $5.75 price target. It said:
1H26 result was solid with no material surprises, FY26 continues to focus on the integration of Dalgaranga (acquired via ASX SPR) into the RMS asset portfolio. Key positive: Introduction of new capital management framework and the spartan deal; A$84.9m (net) tax losses remain. Key negative: Operating cash flow (-3% pcp), free cash flow (-15% pcp) and cash/bullion on hand (-14% pcp) reflect the anticipated grade decline across the RMS Magnet Hub assets.
This was well flagged and should begin to reverse as Dalgaranga ore is introduced into the Magnet operations and ramps through the system, marking the transition to the next phase of higher-grade feed – we forecast Dalgaranga alone to contribute +A$700m per annum from FY28 onwards. We maintain our BUY rating, price target A$5.75ps (previously A$5.76).
