Are you looking for some new additions to your portfolio?
If you are, it could be worth hearing what Ord Minnett is saying about the ASX shares below.
Is the broker bullish, bearish, or something in between? Let's find out.
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Orora Ltd (ASX: ORA)
Ord Minnett remains relatively positive on this packaging company despite concerns over potential write-downs for the Saverglass business.
The broker has an accumulate (between buy and hold) rating and a $1.55 price target on its shares. It said:
Ord Minnett also highlights the risk of a material write-down of the value of its Saverglass business – bought for $2.2 billion in 2023 but now seemingly valued by the market at circa $850 million – and its Gawler plant – where a $200 million investment was recently made in plant upgrades and repairs – unless end-market demand starts to revive.
Post our review, we cut our EPS estimates by 0.8%, 13.1% and 11.7% for FY26, FY27 and FY28, respectively, to incorporate downgraded volume forecasts, with the Saverglass business feeling the deepest cuts. These downgrades led us to cut our target price on Orora to $1.55 from $1.70, while we maintained our Accumulate recommendation on valuation grounds.
ResMed Inc. (ASX: RMD)
This sleep disorder treatment company recently announced the sale of its MatrixCare business for US$490 million.
Ord Minnett labelled the sale as "strategically sound" and remains positive on the investment opportunity with ResMed shares.
In response, it has retained its buy rating with a $36.60 price target. The broker commented:
ResMed (RMD) sold its MatrixCare unit, a supplier of software to manage post-operative out of hospital care for senior citizens, for US$490 million ($705 million) in cash, with net proceeds to be used to return capital to shareholders via an accelerated share buyback program. Ord Minnett viewed the decision to offload MatrixCare, which is being bought by private equity group Frazier Healthcare Partners, as strategically sound given the business was complementary rather than core to its sleep apnoea and respiratory-focused residential care software (RCS) division.
ResMed also reiterated guidance for an FY26 gross operating margin of 62–63%, a selling, general, and administrative (SG&A) expenses-to-sales ratio of 19–20%, and an R&D-to-sales ratio of 6–7%. Post the sale, expected to be completed in the September quarter, we have cut our EPS estimates by 0.2%, 1.2% and 1.0% for FY26, FY27 and FY28, respectively, to incorporate the removal of MatrixCare earnings and a reduced number of shares, which drives a downgrade in our target price to $36.60 from $36.80. We reiterated our Buy recommendation on ResMed.
Virgin Australia Holdings Ltd (ASX: VGN)
This airline operator could be worth considering according to Ord Minnett.
It has been running the rule over Virgin Australia shares and likes what it sees. The broker has put a buy rating and $3.90 price target on them. It said:
Ord Minnett forecasts the airline's net debt-to-operating earnings (ND/EBITDA) multiple will hover near the lower end of its target range of 1–2x out to FY30. Note that this includes our expectations Virgin will commence dividends in FY28 of around $0.18 per share, implying a dividend yield of around 8% on a fully franked basis.
Post our review, we have nudged our EPS estimate for FY26 higher by 0.2%, while our FY27 forecast increases 2.2% and our FY28 numbers are unchanged. This leads us to raise our target price on Virgin to $3.90 from $3.80, and we reiterate our Buy recommendation.
