A new month is here, so what better time to look at making some new portfolio additions.
But which ASX shares could be buys?
Three that Morgans is bullish on are named below. Here's what it is recommending to clients:
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Catalyst Metals Ltd (ASX: CYL)
Morgans thinks that this gold miner could be a good option for investors looking for exposure to this side of the market.
In response to its half-year results, the broker has retained its buy rating and $14.56 price target. It said:
1H26 result was broadly in line with expectations, with FY26 shaping as a foundation year ahead of a step-change in ounce growth from FY27 and beyond, underpinned by ~10 years of reserves. Key positive: Continued uplift in the price of gold has delivered a material uplift in revenue (+50% pcp) and underlying EBITDA (+92%) despite ounce production effectively being flat pcp. Key negative: legal settlement fees regarding Plutonic's K2 prospect (A$49m) eroded NPAT which was not fully captured in our forecasts. We maintain our BUY rating and A$14.56ps price target.
Light & Wonder Inc. (ASX: LNW)
Another ASX share that has been given a buy rating (with a $195.00 price target) by Morgans is gaming technology company Light & Wonder.
The broker was pleased with management commentary relating to AI disruption and agrees that it will strengthen its competitive edge. As a result, it thinks recent share price weakness has created an opportunity. It explains:
We were encouraged by management's articulation of AI as both an offensive growth lever and a defensive moat. Net/net, we view AI as enhancing LNW's competitive edge rather than eroding it, and the recent share price weakness appears disconnected from the durability of its land-based earnings base.
In our view, LNW trades on an undemanding valuation given: (1) supportive NA EGM demand; (2) litigation overhang behind it; (3) a balance sheet set to delever through 2026 (MorgansF: ~2.9x); and (4) Grover providing a high-return, recurring revenue vertical growing ahead of expectations. We upgrade to BUY, however lower our price target to A$195 (previously A$200).
Objective Corporation Ltd (ASX: OCL)
Finally, Morgans has named information technology software and services provider Object Corp as a buy with a $16.70 price target.
The broker believes there are tailwinds that will be supportive of its long-term growth momentum. It explains:
OCL's FY26 ARR guidance has been reset to 10-14% (CC basis). Our EBITDA forecasts reduce by -4% across FY26-FY28F, driven by adjustments for ARR guidance and our expectations around timing of investment/margins and currency movements. Our blended DCF/EV/EBITDA based price target revises to $16.70/sh (from $20.00/sh). We see tailwinds remaining supportive of OCL's long-term growth momentum. Following the recent pullback in OCL's share price we move to a Buy rating (from Accumulate).
