Morgans has busy looking closely at a number of ASX shares this week.
Three of which are named below. Does the broker rate them as buys, holds, or sells? Let's find out:
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Bank of Queensland Ltd (ASX: BOQ)
Morgans has been looking ahead to this regional bank's half-year results. Unfortunately, it is predicting a sharp decline in profits for the first half.
Combined with recent share price strength, the broker feels this makes its shares fully valued now. As a result, Morgans has downgraded Bank of Queensland's shares to a hold rating with a $7.39 price target. It said:
We expect a material decline in 1H26 earnings, with recent share price strength driven by the expected capital return from the equipment finance whole-of-loan sale. Share price strength has compressed total return potential to c.5%. As such, we moderate our rating from ACCUMULATE to HOLD. Target price $7.39.
The Koala Company (ASX: KOA)
This newly listed furniture seller has caught the eye of Morgans.
This week, it has initiated coverage on Koala's shares with a buy rating and $5.13 price target. Morgans highlights that its shares are trading at a discount to peers despite having a strong growth profile. It explains:
We initiate coverage on Koala Company with a BUY recommendation and $5.13 target price. We think there is a degree of conservatism embedded in both our forecasts and valuation, with the balance of risk skewed to the upside.
Koala offers an attractive growth profile, underpinned by strong sales growth, margin expansion and significant NPAT growth. The stock screens cheap on a multiple basis, trading on 18.5x FY27 PER versus the peer set average at 27.0x, despite offering one of the strongest growth profiles.
Westpac Banking Corp (ASX: WBC)
Morgans notes that Australia's oldest bank released a trading update this week.
It was disappointed with the update and in response has downgraded Westpac's shares to a sell rating with a $34.06 price target It said:
WBC published a trading update ahead of its 1H26 result due for release on 5 May. Implied revenues were weaker, costs lower, and credit impairment charges higher than our and market expectations.
We revise our rating from TRIM to SELL as total return expectations at current prices have fallen below the -10% trigger. We estimate c.18% price downside risk partly offset by c.3.8% forecast cash yield. Target price $34.06.
