Buy, hold or sell, PEXA, ASX and Qantas shares

Which stock is Morgans most optimistic on?

The team at Morgans have updated their outlook on three well known ASX listed companies this week. 

Two have received hold recommendations while one has drawn a clear positive outlook. 

Here is the latest from the broker. 

A man and a woman sit in front of a laptop looking fascinated and captivated.

Image source: Getty Images

ASX Ltd (ASX: ASX)

Morgans said that ASX has recently released its monthly trading activity report for June 2026. 

It was a mixed trading month overall for ASX, in our view, with higher cash markets activity (+54% volume on pcp), a downturn in raisings and stronger average daily futures/options contracts in June. Our FY27-FY28 EPS forecasts increased by ~+2% factoring in the recent trading activity. Our price target is increased to A$53.90 (from A$51.50). HOLD maintained.

ASX shares closed trading at $53.49 yesterday. 

PEXA Group Ltd (ASX: PXA)

PEXA Group has been drawing positive ratings from experts recently. 

However Morgans appears less optimistic. 

PEXA recently responded to a draft decision by the NSW pricing regulator (The Independent Pricing and Regulatory Tribunal) that would cut the fees it can charge for its dominant electronic property settlement platform by about 20% from July 2027. 

This would potentially reduce annual revenue by around $70 million.

Commenting on the release, Morgans said: 

The headline read-through from IPART's draft report on proposed pricing changes for PXA is an anticipated reduction in revenue of A$70m (~20%) in year 1. We think a 20% hit to exchange revenue was much more punitive than consensus market expectations. Applying the cut in one year, rather than phasing it in over multiple years, adds to the disappointment. Our price target is reduced to A$9.35 (from A$14.23).

We Move PXA to HOLD. Proposed outcomes here are worse than expected, and this creates significant uncertainty around PXA's future profit profile and its overall operating environment.

PEXA shares closed trading yesterday at $8.44 per share. 

Qantas Airways Ltd (ASX: QAN)

After struggling earlier this year due to global conflict and soaring oil prices, Morgans now sees a rebound in store for Qantas shares. 

The broker said Qantas's post-COVID balance sheet strengthening and cost discipline have positioned it to absorb the current fuel cost shock and consumer softness with genuine resilience. 

We forecast 2H26 PBT to be down on pcp as fuel and economic conditions bite, with FY27 forecast to deliver a moderate uplift. We view FY27 as a transition year for Qantas with higher growth expected from FY28 onwards as oil prices, refining margins and demand normalise. Structural growth drivers (fleet renewal, Project Sunrise, Loyalty scaling toward FY30 target) remain intact.

Morgans has initiated coverage on Qantas shares with an accumulate rating and $11.50 price target. 

Qantas shares closed at $10.60 yesterday. 

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PEXA Group. The Motley Fool Australia has positions in and has recommended PEXA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

A female sharemarket analyst with red hair and wearing glasses looks at her computer screen watching share price movements.
Broker Notes

Buy, hold, sell: Santos, BHP, Telstra shares

Here's what Michael Gable from Fairmont Equities thinks of these three ASX 200 shares.

Read more »

Couple using their digital tablet together.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Broker Notes

Why the Paladin Energy share price "doesn't make sense"

This uranium stock could be set for a major re-rating.

Read more »

Two miners standing together.
Broker Notes

3 ASX 200 mining shares to buy with 41% to 79% upside ahead: broker

The green energy transition and other factors are providing strong growth drivers for mining.

Read more »

Happy miner with his arms folded.
Broker Notes

Buy, hold, sell: Paladin Energy, Fortescue, Rio Tinto shares

Let's take a look at some new ratings from Morgans.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

9 ASX 200 shares experts are backing for growth amid market weakness

Brokers retained a positive view on BHP, CSL, Telstra, Xero, and other shares this week. 

Read more »

Medical workers examine an x-ray or scan in a hospital laboratory.
Broker Notes

This ASX biotech could rise 40% or 750%, depending on who you ask

A poor quarter has reduced expectations, but there's still plenty of upside.

Read more »

Man using his device in an airport.
Broker Notes

This high-quality ASX 200 share could rise 60%

A leading broker expects a good yield and major upside from this stock.

Read more »