The team at Morgans has been busy looking at recent updates from a couple of popular ASX shares.
Is the broker now positive on them? Or has it turned negative? Let's find out:
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Megaport Ltd (ASX: MP1)
Morgans notes that this network-as-a-service company has announced a series of major contract wins for its recently acquired Latitude.sh business.
The broker was impressed with the contract wins and has upgraded its estimates to reflect them.
This has led to Morgans reaffirming its buy rating on Megaport's shares with an improved price target of $15.50. Based on its current share price of $12.63, this implies potential upside of 23% for investors over the next 12 months.
Commenting on the company, the broker said:
MP1 has announced a series of large contract wins which are financially and strategically significant. MP1 will use its globally unique communications platform to connect servers and GPU clusters in numerous DCs across the US.
DC power constraints are a growing issue and MP1 was uniquely able to stitch together multiple sites to provide consolidated inference solutions. We update our forecasts to reflect recent contract wins, lifting our TP to $15.50 per share. We retain a BUY recommendation.
New Hope Corporation Ltd (ASX: NHC)
Another ASX share that Morgans has been looking at is coal miner New Hope.
It released its third-quarter update this week and performed comfortably ahead of expectations. In fact, Morgans highlights that New Hope's group coal sales were 20% better than consensus forecasts.
It was also a similar story for production and its underlying earnings for the period.
However, due to its current valuation, this strong performance wasn't enough for a buy rating from Morgans.
It has retained its hold rating on New Hope shares with a $5.25 price target. Based on its current share price of $5.48, this implies potential downside of 4.2% over the next 12 months. It commented:
NHC delivered a materially stronger-than-expected 3Q26, with group coal sales of 3.2Mt beating consensus by ~20%. Saleable Production was also strong at 3.01Mt, beating consensus by ~10%. Bengalla achieved a FOB cash cost ($AUD/t) of $74, down from $84.4 in the prior quarter.
Underlying EBITDA (unaudited) of ~A$130m came in ~22% ahead of the prior quarter, supported by higher volumes and a meaningful step-down in unit costs. We maintain a HOLD rating with a target price of A$5.25ps.
