Do you have space for some new additions in your ASX share portfolio?
If you do, it could be worth considering the three shares listed below that Morgans rates as buys.
Here's why the broker is bullish on these names:
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Judo Capital Holdings Ltd (ASX: JDO)
Morgans thinks this small business lender could be a top ASX share to buy.
In response to its capital relief securitisation transaction, the broker put a buy rating and $2.15 price target on its shares. It said:
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).
Nick Scali Limited (ASX: NCK)
Another ASX share that Morgans is bullish on is furniture retailer Nick Scali. It recently initiated coverage on its shares with a buy rating and $17.84 price target.
Morgans likes Nick Scali due to its attractive valuation and positive growth outlook. It said:
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.
Web Travel Group Ltd (ASX: WEB)
A third ASX share that Morgans is positive on is travel technology company Web Travel. It recently upgraded the WebBeds owner's shares to a buy rating with a $3.75 price target.
It was pleased with its FY 2026 results and believes the market is seriously undervaluing its shares. It explains:
Given the Middle East conflict affected trading in March, WEB's FY26 result came in at the lower end of guidance, albeit better than consensus, proving its resilience. Unsurprisingly, WEB's FY27 update showed that trading has slowed materially given the conflict. Adverse FX has been another headwind. Given the uncertainty, WEB did not provide any formal FY27 earnings guidance. We have made significant downgrades to our forecasts. We assume that the conflict and a subdued consumer environment impacts WEB's 1H27 (seasonally stronger half), followed by a recovery in the 2H27.
After material share price weakness, we upgrade WEB to a BUY rating. The company is worth materially more than the current share price. We know from past economic and geopolitical events, that after a downturn, travel demand rebounds and so will its earnings and share price.
