It's never a bad idea to get some expert help when looking for shares that might be undervalued.
I've had a look at the research reports coming out of Morgan Stanley this week and picked out three which might be of interest.
Let's have a look.
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Catapult Sports Ltd (ASX: CAT)
Catapult specialises in technology which can be used to track sportspeople on the field and during training, with the metrics used by coaches and athletes to improve performance.
The company released its full year results this week, and said its annualised contract value increased 28% year-on-year to US$133.8 million.
Chief Executive Officer Will Lopes said it was a transformational year for the company.
He added:
We set ourselves ambitious targets: maintain our organic growth rate, reinvest meaningfully in our platform, and stay focused through a period of significant M&A. We delivered on all of them. These results reflect the efforts of every person at this company, and to the world-class sports teams who trust us with their performance every day.
Morgan Stanley said it was "another strong result, with operating metrics all improving''.
They added:
Of particular note was the pleasing progress made with bedding down the IMPECT and Perch acquisitions. Combined, they were the first material acquisitions made in some time by Management. We think the FY26 result demonstrated CAT's ability to integrate and scale acquisitions effectively, with both IMPECT and Perch appearing to perform well post acquisition and contributing positively to growth, product breadth and cross-sell opportunities. This was achieved alongside delivering organic growth in the core business.
Morgan Stanley has an overweight rating on Catapult shares with a price target of $5.20 compared to $3.57 currently.
Bega Cheese Ltd (ASX: BGA)
An interesting takeaway from the Morgan Stanley research note on Bega is that they believe that the increased use of GLP-1 weight-loss drugs is a tailwind for the company, because it, "supports smaller, nutrient-dense, protein rich consumption occasions''.
They added:
This shift favours BGA's convenient dairy formats, supporting volume, pricing, and margins over time.
Morgan Stanley is forecasting better than 20% compound annual growth in earnings per share for Bega from FY25-FY28, "driven by branded mix improvement and supply chain consolidation benefits''.
The broker has a price target of $6.70 on Bega shares compared to $5.42 currently.
Goodman Group Ltd (ASX: GMG)
Goodman is due to report its third quarter results next week.
Morgan Stanley has got in ahead of time with a research note that has a price target of $36.15 on the shares compared to $30.37 currently.
The broker said they will be looking for good news out of the company.
Given the VA Consensus is at FY26 EPS growth of 10%, we would suggest that the market is somewhat anticipating an earnings upgrade. However, the probability of a data centre contract/s is less certain, and therefore would be a positive surprise if delivered.
