S&P/ASX 200 Index (ASX: XJO) shares are down 1% to 9,097.3 points as earnings season continues on Friday.
These three companies released their FY26 results this week.
Let's see how Morgans adjusted its ratings and 12-month price targets after reviewing the numbers.
Image source: Getty Images
Treasury Wine Estates Ltd (ASX: TWE)
The Treasury Wine Estates share price is $5.87, up 1.7% today and down 24% over 12 months.
Morgans kept its buy rating on this ASX 200 wine share after Treasury released its FY26 earnings yesterday.
TWE's FY26 result came in above the top end of its original EBITS guidance range and NPAT beat consensus expectations.
While FY27 is a transition year, we think guidance will prove conservative and could be upgraded at the 1H27 result given the progress on inventory rebalancing (ahead of expectations) and the strong depletions growth across key brands.
Strategies to improve TWE's performance are well underway and should result in it returning to solid earnings growth and a strong balance sheet in FY28. We have upgraded our forecasts.
With a multi-year transformation program in place, strong management and the strength of the Penfolds brand, we reiterate our BUY rating …
The broker increased its 12-month target on Treasury Wine Estates shares significantly from $5.95 to $7.30.
This suggests a potential near-25% upside ahead.
Orora Ltd (ASX: ORA)
The Orora share price is $1.51, up 1.7% today and down 32% over 12 months.
Orora manufactures aluminium cans and glass bottles, mainly for beer, wine, and spirits.
Morgans maintained its hold recommendation on this ASX 200 materials share after Orora's FY26 results.
The broker said:
ORA's FY26 result was slightly softer than our forecasts but largely in line with consensus.
Key positives: Cans continued to perform well with EBIT up 7% on the back of 6% volume growth. The balance sheet remains strong, supporting the resumption of the on-market buyback following the result.
Key negatives: The near-term outlook for Saverglass remains challenging. ORA also recorded a non-cash impairment of $742.8m following a reassessment of the business's earnings outlook relative to expectations at the time of its acquisition in 2023.
With the outlook for the Glass business remaining challenging and group earnings expected to decline in FY27, a recovery still appears some way off.
While management is implementing initiatives to restore growth, progress is likely to be constrained until consumer demand for wine and spirits improves.
The broker reduced its 12-month share price target from $1.55 to $1.45.
This suggests the stock is already more than fully valued.
Transurban Group (ASX: TCL)
The Transurban share price is $14.08, down 3.3% today and up 0.8% over 12 months.
Morgans maintained a trim rating on Transurban shares after reviewing the company's FY26 report.
EBITDA was slightly below and Free Cash slightly above consensus expectations. FY27 DPS growth guidance was in-line with consensus, but guidance on Free Cash coverage surprised by implying approximately no FC growth in FY27.
The Free Cash guidance indicates TCL is a slower growth stock than implied in its trading yield. If TCL were repriced to APA Group's yield the share price would trade down towards our $12.53 target price.
TRIM into share price strength.
The broker shaved its price target down from $12.63 to $12.53.
This implies a potential 11% downside ahead.
