2 ASX stocks to buy and 1 to sell

Morgans has given its verdict on these shares.

There are a lot of ASX stocks to choose from on the local share market.

But which ones should you buy and what should you avoid?

Let's take a look at two stocks that Morgans has given buy ratings to and one that it is tipping as a sell. Here's what you need to know:

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Flight Centre Travel Group Ltd (ASX: FLT)

Morgans remains positive on this travel agent giant. In response to its better than expected half-year results, the broker put a buy rating and $18.05 price target on its shares. Based on its current share price of $12.17, this implies potential upside of 48% for investors. It commented:

FLT's 1H26 NBPT was up 4.1%, a beat on guidance for a flat result. The Corporate result was the highlight with NPBT was up 20%, while Leisure was better than feared down only 4%. The 3Q26 is off to a strong start and importantly Leisure is back in growth. FY26 guidance was reiterated. We have made minor upgrades to our forecasts. FLT's fundamentals remain attractive (FY27 PE of 10.6x) and we retain a Buy recommendation with a new A$18.05 price target.

Seek Ltd (ASX: SEK)

Another ASX stock that Morgans is bullish on this month is job listings giant Seek.

While the broker has some concerns over the AI disruption threat, it isn't enough to stop it from putting a buy rating and $27.50 price target on its shares. Based on its current share price of $16.93, this suggests that upside of 60% is possible between now and this time next year. It said:

SEK's 1H26 result was largely as per expectations with net revenue (+12% on pcp), Adjusted EBITDA (+19% on pcp) and adjusted NPAT (+35% on pcp) all broadly in line with Visible Alpha consensus and MorgansF. We make only marginal adjustments to our forecasts taking into account the updated guidance.

Whilst our DCF-derived price target remains unchanged at A$27.50 the recent sharp share price pullback now results in ~70% [now ~60%] TSR upside. We move to a Buy recommendation accordingly, though SEK has still many questions to answer on the AI threat.

National Australia Bank Ltd (ASX: NAB)

The ASX stock that Morgans is bearish on this month is banking giant NAB.

Although it delivered a solid quarterly update, the broker believes NAB's shares are overvalued at current levels. It has put a sell rating and $37.27 price target on its shares. Based on its current share price of $46.82, this implies potential downside of 20% for investors. 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).

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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