Looking for some new portfolio additions? Well, let's see what analysts at Morgans are saying about these popular ASX shares.
Are they buys, holds, or sells? Let's find out:
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National Australia Bank Ltd (ASX: NAB)
While this banking giant delivered a solid quarterly update last month, it isn't enough to justify its valuation.
As a result, the broker has retained 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).
Pro Medicus Ltd (ASX: PME)
This health imaging technology company's shares could be undervalued according to Morgans.
Although Pro Medicus' half-year earnings were a touch short of expectations, the broker remains very positive on its outlook.
And while it has retained its buy rating with a trimmed price target of $275.00, this is more than double its current share price. It said:
PME delivered record revenue and underlying EBIT up ~30% YoY, yet the result fell short of expectations on operating leverage with a jump in staff costs driving an EBITDA miss as Trinity contributed less than anticipated. The longer-term outlook strengthened with more than A$280m of new contracts signed and five-year contracted revenue now around A$1.1bn, though the market remains wary of a heavy 2H execution load and cost base increase.
It is not ideal to deliver a miss in this market, but the reaction feels overcooked and the setup into 2H is far better than the share price implies. Our valuation is reduced to A$275 (from A$290) and we retain our Buy recommendation.
Telstra Group Ltd (ASX: TLS)
Finally, this telco giant delivered a result that was better than expected. However, it only reaffirmed its guidance for the full year.
In light of this, Morgans held firm with its hold rating with a $5.20 price target. It commented:
TLS's 1H26 result was slightly better than expected albeit with full year guidance broadly reiterated. Highlights of the result were strong performance for the all-important mobile business, strong cashflow and a slightly higher than expected interim dividend. The interim dividend is partially franked (90.5%) and above consensus expectations. Our TP lifts to $5.20 and we retain our Hold recommendation.
