The team at Morgans have run the ruler over two very different companies in the past few days and come out with a buy recommendation for each.
Let's have a look at what stocks they like at the moment.
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Polynovo Ltd (ASX: PNV)
This healthcare company sells its flagship product, NovoSorb, a biodegradable wound dressing that serves as a scaffold for wound regeneration.
In the first half of FY26, the company achieved revenue of $68.2 million from NovoSorb sales, up 26% on the same period the previous year, with strong sales momentum in offshore markets.
The company also has multiple products in its research and development pipeline, and is progressing its key product through regulatory pathways for wider use.
The Morgans team said it had reviewed its FY26 and FY27 forecasts for Polynovo, "and concluded the company is set to deliver a strong 2H26 and continue that growth trajectory into FY27''.
They note that the company will need a strong second half to meet its forecast revenue of $148 million, but they said, "We are confident PNV can deliver on our FY26 forecasts, noting we sit slightly below consensus''.
The Morgans team noted that Polynovo was among the most shorted stocks on the ASX, but they believe this could change.
As they said:
We believe that if PNV can achieve FY26 consensus and if FY27 consensus remains stable which currently has revenue growth of 22% and EBITDA more than doubling, the short position could be reduced materially. It is certainly one stock to watch coming into the August results.
Morgans has a price target of $1.56 on Polynovo shares, compared with the current share price of $1.04.
Digico Infrastructure REIT (ASX: DGT)
This cloud infrastructure provider recently sold a major asset in Chicago for US$750 million, which was a 5% premium to the purchase price.
This has allowed the company to reduce net debt from $1.5 billion to about $500 million and reduce its gearing from 36% to 17%.
The company said while announcing the sale this week:
Together, these initiatives materially strengthen the balance sheet, enhance securityholder returns, and provide financial flexibility to explore capital management initiatives, including returning any excess capital through enhanced distributions.
The company said it was also looking at monetising its LAX1 and LAX2 sites.
Morgans said the Chicago deal was positive as it derisked the company.
Morgans maintained its buy rating on the stock but increased its price target markedly, from $2.70 to $3.60.
