There are a lot of ASX shares to choose from on the local market.
To narrow things down, let's look at three that Morgans has recently recommended as buys.
Here's what it is recommending to clients:
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IDP Education Ltd (ASX: IEL)
Morgans recently upgraded this language testing and student placement company's shares to a buy rating with a $3.15 price target.
Although it acknowledges that current trading conditions are tough, the broker remains positive on its long-term opportunity. As a result, it thinks now is a good time for patient investors to open a position. It said:
Visa data in IDP's key destination markets remains in deep contraction, with AUS, CAD, and the UK all experiencing material volume and visa grant rate declines. Positively, IDP's China IELTS is scaling quickly (13 test centres vs 5 at 1H26), the cost base reset is on track (A$25m net reduction), and the group continues to demonstrate pricing power across both IELTS and Student Placement (SP).
With structural demand drivers for international study intact, a leaner cost base, growing China optionality and ongoing technology/product development (Navi, FastLane, One Skill Retake), we are willing to look through the near-term backdrop on a cyclically depressed multiple. We upgrade to BUY, A$3.15ps PT.
Nick Scali Limited (ASX: NCK)
Another ASX share that Morgans is positive on is furniture retailer Nick Scali.
It has just initiated coverage on the company's shares with a buy rating and $17.84 price target.
The broker believes its shares are good value, especially given its attractive growth opportunity in the UK market. It explains:
We initiate with a BUY and $17.84 PT on Nick Scali. We use an FY28 PER and DCF when setting our price target as we opt to look through near-term consumer weakness, with the current price providing an attractive entry point. High-quality retailer with a long track record. Nick Scali has delivered long-term EPS growth through disciplined store rollout, LFL growth, best-in-class margins, and operating leverage. Strong cash generation and balance sheet.
Structural negative working capital supports high cash conversion, while the low capital intensity of new store rollouts leaves ample cash flow for dividends and property purchases and/or growth ventures. Store rollout optionality. Further Plush and Nick Scali rollout in ANZ and the Nick Scali rollout opportunity in the UK provide an attractive growth leg.
Treasury Wine Estates Ltd (ASX: TWE)
A third ASX share that has been given the thumbs up by the team at Morgans is wine giant Treasury Wine.
It was positive on Treasury Wine's investor day update and responded by reiterating its buy rating with a new price target of $5.95.
Commenting on the Penfolds owner, the broker said:
TWE's Investor Day was the positive share price catalyst we were expecting. Solid depletions growth continues and the mid-point of FY26 EBITS guidance was slightly ahead of consensus estimates. Importantly, Ascent or TWE's transformation program is expected to deliver sustainable, high-quality earnings growth and deleverage the balance sheet over the medium to long term.
We have upgraded our FY27 and FY28 forecasts. Given TWE's low trading multiples and our belief that new management can deliver more acceptable returns over time, we reiterate our BUY recommendation with a new A$5.95 price target.
