The team at Morgans has been busy looking at a number of popular ASX shares this week.
Let's see if the broker is bullish or bearish on these names. Here's what it is saying:
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ASX Ltd (ASX: ASX)
Morgans was disappointed to see this stock exchange operator provide cost and capital expenditure guidance that was significantly higher than expected.
In light of this, the broker has reduced its earnings estimates beyond FY 2026 and trimmed its valuation accordingly.
This has seen Morgans reaffirm its hold rating with a new price target of $51.50. It said:
ASX released FY27 total cost guidance along with FY28 capex expectations both of which were materially above consensus at the time of release. Whilst the topline shows encouraging growth (+~12.5% FYTD), we anticipate the market to remain cautious given the elevated cost profile as the technology refresh continues.
We lift FY26F EPS ~4% on stronger-than-forecast cash market and Futures/OTC volumes, but lower FY27-FY28F EPS by ~5%, as the updated cost guidance more than offsets the higher revenue base in the outer years. Our DCF/PE-derived PT is lowered to A$51.50 on the above, accompanied by an increase in the house RFR to 4.6%. We maintain our Hold recommendation and note near-term elevated costs will likely remain a headwind.
Endeavour Group Ltd (ASX: EDV)
Another ASX 200 share that Morgans has been looking at is drinks giant Endeavour.
In response to the Dan Murphy's and BWS owner's investor day event, Morgans has retained its hold rating on Endeavour's shares with a reduced price target of $2.80.
While there were positives from the investor day, Morgans highlights that there are execution risks to contend with while trading conditions remain challenging. It commented:
EDV provided a strategic update at its Investor Day with the new management team, led by CEO Jayne Hrdlicka, outlining their plans for growth. As expected, no trading update was provided given the company provided one only a few weeks ago. Management outlined three core growth pillars: 1) grow Retail revenue through repositioning the Dan Murphy's and BWS offers; 2) improve Hotels performance by stepping up investments in renewals; and 3) reduce costs with $300m in targeted savings by FY29. We make negligible changes to FY26-28F EBIT forecasts; however, underlying NPAT declines by 0-3% due to higher interest expense.
Our target price decreases to $2.80 (from $3.30) reflecting changes to earnings forecasts and a reduction in our FY27F PE multiple to 13x (from 15x). While the Investor Day highlighted a range of revenue and cost opportunities, these require accelerated investment and are expected to keep balance sheet leverage elevated through FY27. Execution remains key, and with the liquor market still challenging, we prefer to wait for delivery before reassessing our view. HOLD retained.
Judo Capital Holdings Ltd (ASX: JDO)
Morgans is more positive on this small business lender.
It was pleased with management's decision to undertake a second capital relief securitisation transaction. Morgans believes it reduces the need for an equity raising.
As a result, the broker has retained its buy rating with a $2.15 price target. It commented:
JDO announced its second capital relief securitisation transaction backed by SME business loans. The transaction is significant as it shows JDO's ability to again source and its willingness to utilise capital relief securitisations to support its CET1 capital ratio without the need for equity raisings. Target price of $2.15 per share, with strong double digit earnings growth forecast across FY26-28F. BUY retained, with potential TSR at current prices of c.38% (driven entirely by capital growth).
