If you have space in your portfolio for some new additions, then it could be worth considering the three ASX shares in this article.
The team at Morgans is bullish on them and has just named them as buys. Here's what the broker is recommending to clients:
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Megaport Ltd (ASX: MP1)
Morgans was pleased to see Megaport's newly acquired Latitude.sh business announce some major contract wins.
In response to the news, the broker has retained its buy rating on Megaport's shares with an improved price target of $15.50. It 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.
Symal Group Ltd (ASX: SYL)
This public and private infrastructure services provider's investor day event impressed Morgans.
It highlights the "immense" pipeline of potential work, which it believes could lead to the ASX share achieving its aspirational EBITDA target early.
As a result, the broker has put a buy rating and $3.35 price target on Symal's shares. It said:
SYL's recent investor day left us with the impression that the pipeline of potential work is immense, as the business progresses its $7.5bn of recently tendered work, along with a further $1.4bn of projects in early contractor involvement ('ECI'). Across the key verticals of infrastructure, digital, energy and defence, the total addressable market continues to grow, which along with M&A, could see the business delivering early on its FY30 aspirational EBITDA target of $200m.
Given SYL's history of winning approximately one out of four tenders and no sign of Government investment budgets abating, the investment thesis for SYL as the 'picks and shovels' of the infrastructure build out remains intact. On this basis, we reaffirm our Buy rating and $3.35/sh price target.
Treasury Wine Estates Ltd (ASX: TWE)
A third ASX share that Morgans is positive on is wine giant Treasury Wine.
The broker is feeling optimistic ahead of the Penfolds owner's investor day event next month.
Combined with positives from its recent trading update, the broker has put a buy rating and $5.30 price target on its shares. It said:
We see TWE's Investor Day on 4 June as a key share price catalyst. At this event, the company intends to share its detailed plans and targets for its portfolio and operating model to support a future state TWE. TWE's recent trading update was positive with strong depletion growth, highlighting the strength of its brands. It also has the support of its banks with new debt commitments secured.
2H26 EBITS is on track to be higher than the 1H26. Following material share price weakness, given its low trading multiples and our belief that new management can deliver more acceptable returns overtime, we upgrade to a BUY recommendation.
