If you are in the market for some new portfolio additions, then it could pay to listen to what Morgans is saying about the three ASX shares in this article.
Does it rate them as buys, holds, or sells? Here's what you need to know:
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Imdex Ltd (ASX: IMD)
Morgans was pleased with this mining technology company's performance during the third quarter.
In response, the broker has retained its buy rating on Imdex shares with an improved price target of $5.00. It said:
The 3Q update was strong with constant FX organic revenue growth of +26% YoY. While we pare back our FY26 revenue forecast slightly on FX, we make negligible changes to our EBITDA forecast ($164m +3% vs VA consensus $160m) as mix benefits offset the lower revenue. For FY27-28, we increase our earnings forecasts on confirmation of strong volume growth and recent capital markets activity. While we see capacity for a slight beat in August, in our view, outer year upgrades will be the key driver of the share price from here.
JB Hi-Fi Ltd (ASX: JBH)
This retail giant delivered a "resilient" trading update according to Morgans.
However, it highlights that management appears somewhat cautious ahead of the important end of financial year (EOFY) period.
In response, the broker has retained its accumulate rating with a trimmed price target of $82.90. It said:
JBH provided a solid 3Q26 sales trading update, showing the ongoing resilience in demand for its product categories. Management did caution going into one of the key trading periods (EOFY), that they were seeing supplier component costs increases, stock availability shortages and ongoing heightened competitive activity. We see this as likely reflecting potential margin pressure in the 4Q. We have made minor revisions to earnings (<1%), and our valuation lowers to $82.90 (from $83.50). We maintain our ACCUMULATE recommendation.
Lottery Corporation Ltd (ASX: TLC)
Morgans was pleased to see this lotteries company secure a mammoth 40-year extension to its Victorian Public Lottery Licence.
It believes the deal is strategically positive but acknowledges that the debt taken on to pay for it will weigh on its earnings.
Nevertheless, the broker has upgraded Lottery Corp's shares to an accumulate rating with an improved price target of $6.00. It said:
The Lottery Corporation (TLC) has secured a 40-year extension of its Victorian Public Lottery Licence to 30 June 2068, paying a $1.145bn upfront premium funded entirely by debt. The duration and timing of the renewal was a mild surprise given the licence was historically offered on 10-year terms and wasn't expiring until June 2028.
We view the deal as strategically positive, but near-term earnings absorb the cost. Higher D&A and interest from the new debt drag our FY26/27/28F EPS estimates down 3%/13%/15% respectively, partially offset by a beta reduction reflecting materially lower licence renewal risk.
