Two ASX small-cap shares that have drawn the attention of Morgans after earnings season are Ridley Corporation Ltd (ASX: RIC) and Peoplein Ltd (ASX: PPE).
These companies reported half-year results in late February, contrubuting to a mostly positive outlook from the broker.
Here's what Morgans had to say.
Image source: Getty Images
Ridley delivers strong results
Ridley provides and markets stock feed and animal feed supplements.
In late February, the consumer staples company saw its share price soar after investors reacted positively to earnings results.
Investors gobbled up these ASX shares after the company reported a large increase in first-half net profit and revenue.
Its share price is now up 13.5% year to date.
Morgans said the 1H26 result was stronger than expected and that the Integrated Poultry Feed (IPF) segment is off to a solid start.
RIC's outlook comments were stronger than expected for Bulk Stockfeeds and IPF but softer for the Packaged Feeds & Ingredients (PF&I). Pleasingly, IPF synergies have been upgraded to A$15m from A$7m previously. We have revised our forecasts. RIC's new FY26-28 Growth Plan will be released at its Investor Strategy Day on 10-11 March. We view this event as the next catalyst for the stock.
Based on this guidance, Morgans said it remains positive on the group's future prospects and maintains its accumulate rating.
It also maintained its $3.20 price target.
From yesterday's closing price of $2.94, this indicates 8.84% upside.
Peoplein has plenty of upside according to Morgans
Peoplein is a workforce solutions company operating in Australia and New Zealand. The company's services include recruiting, contracting, onboarding, rostering, timesheet management, payroll, and workplace health and safety management.
It released H1 FY26 results on February 20.
Earnings results in line with expectations at $16.1m, while ongoing operating EBITDA of $10.5m declined 9.2%.
Morgans said the result reflected its streamlined business, following the sale of its Health and Community operations in late CY25.
Key P&L metrics improved hoh, while still falling short of the prior year, suggesting any earnings recovery is still unproven. To this end, we continue to believe that PPE is producing cyclically low earnings, with the improvement hoh still too early to be called a trend.
Based on this guidance, Morgans retained its speculative buy recommendation on these ASX shares.
It also maintained its $0.95 price target, which is around 45% upside from yesterday's close price.
The broker commented:
Whilst tentative, we see some early signs of improvement and reiterate our Speculative Buy recommendation and $0.95/sh price target.
