If you are searching for some new investment options, then it could pay to listen to what the team at Morgans is saying about the three in this article.
Does it rate them as buys, holds, or sells? Let's find out:
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Beach Energy Ltd (ASX: BPT)
Morgans hasn't been impressed with this energy producer's operational performance. And, unfortunately, it believes the trend will continue and suspects that it could fall short of guidance in FY 2027.
As a result, it recently downgraded Beach Energy shares to a sell rating with a reduced price target of 81 cents. This compares to its current share price of 85 cents. It said:
We mark-to-market our second half estimates for weaker spot gas prices, while also trimming our Waitsia output forecasts for FY26-28 on continuing struggles. After downgrading our Q4 estimates for daily production rates, we see potential for BPT to fall just short of its FY27 group production guidance.
While BPT's share price has already been under pressure, its earnings outlook has declined at a faster rate, with its forward EV/EBITDA actually rising. We downgrade our recommendation to Sell (from Hold) with a revised target price of A$0.81 (was A$1.10).
Flight Centre Travel Group Ltd (ASX: FLT)
While this travel agent recently downgraded its earnings guidance, Morgans has been far more forgiving.
It appears to believe that the worst is now behind the company and that a sharp rebound in earnings and its valuation could be on the cards soon.
This has seen Morgans put a buy rating and $14.80 price target on its shares. This is meaningfully higher than the current Flight Centre share price of $11.99. It commented:
Given recent downgrades from other travel industry peers due to the conflict in the Middle East, FLT's downgrade wasn't a surprise. Given its balance sheet strength and depressed share price, a new up to A$200m share buyback was announced. We have made only minor changes to our forecasts given FLT's guidance was broadly in line with our previous forecast.
While a peace agreement and eased travel restrictions are positive, we think 1H27 will still be challenging. We forecast a strong recovery in 2H27. If it wasn't for this conflict, FLT would have had a great year given its results for the first nine months were strong. We are buyers of FLT because when operating conditions ultimately improve, both its earnings and share price will be materially higher.
Judo Capital Holdings Ltd (ASX: JDO)
Another ASX share the broker is sticking with after an earnings guidance downgrade is small business lender Judo Capital.
It thinks the selling has been overdone and has retained its buy rating with a reduced price target of $1.47. This compares to the current Judo Capital share price of 88 cents. It said:
JDO downgraded its FY26 PBT guidance by c.8% at the mid-point. Even more disappointing was first-time FY27 PBT guidance which was c.16% below expectations at the mid-point. The share price drawdown was vicious (particularly considering the decline that had already occurred since February).
While the earnings growth outlook has moderated, we still forecast c.30% EPS growth across both FY26 and FY27 with the stock now trading on a c.6.8x PER (FY27F) and 0.6x P:BV (end-FY26). A significant risk premium or probability of failure has been priced into the stock. BUY.
