The team at Morgans have adjusted their outlook on these ASX shares following key updates over the last week.
Despite the downgrade, Credit Group (ASX: CCP) and Amcor Plc (ASX: AMC) still have buy recommendations from the broker.
These ASX shares have fallen significantly this year, however Morgans does see a rebound in sight.
Here's the latest from the broker.
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Credit Corp's trading update broadly positive
Credit Corp released a trading update last week which led to a 10% single-day rise.
The debt collector revealed that it is on track to deliver record earnings in FY 2026.
It is projecting net profit after tax of $100 million to $110 million, which would be up from $94 million in FY 2025.
It also advised that its ledger investments will be higher than previously expected at $295 million to $330 million and gross lending is now projected to be higher at $420 million to $430 million.
Morgans maintained its buy recommendation but lowered its price target to $19.15 (previously $19.35).
Management noted CCP is on track for strong earnings, with investment providing "a platform for growth in FY27". Sustained delivery of the 3Q PDL momentum, alongside conversion of the US scale-up is key to a re-rating in our view. CCP is trading on ~7x FY27 PE, which we view as undemanding given the earnings profile.
From yesterday's closing price of $11.505, this indicates an upside potential of 66%.
Amcor results mixed
Amcor also released an important update last week in the form of quarterly results.
It reported a 77% rise in net sales to US$5.91 billion and an 87% increase in adjusted EBITDA to US$892 million.
Amcor shares jumped 5% following this result, however Morgans were less convinced than the general market.
The broker said while AMC's 3Q26 earnings were largely in line with expectations, FY26 underlying EPS and FCF guidance was downgraded.
Key positives include Berry synergy benefits tracking above initial expectations, continued progress on portfolio optimisation with further non-core asset divestments, and pass-through mechanisms working well with movement in resin prices due to the Middle East conflict not having a material impact on earnings.
Key negatives include ongoing soft volumes, a downgrade to FY26 underlying EPS guidance (albeit better than feared), a reduction to FCF guidance, and leverage at the end of FY26 now expected to be higher than previously anticipated.
Based on this guidance, the broker reduced its price target to $65.40 (from $68.20).
From yesterday's closing price of $55.20, this updated price target indicates an upside potential of 18%.
Trading on 9.2x FY27F PE with a 6.7% yield, we believe AMC's valuation remains attractive with Berry synergies tracking well. Further non-core asset sales (particularly the North America Beverage business) will be a potential positive catalyst. BUY rating maintained.
