S&P/ASX 200 Index (ASX: XJO) shares are down 0.33% at 9,046 points on Tuesday.
With reporting season now wrapped up, a number of companies have been downgraded by the experts following their FY26 results.
Let's find out why Morgans cut its ratings on the following 5 ASX shares.
Image source: Getty Images
Mineral Resources Ltd (ASX: MIN)
The Mineral Resources share price is $63.76, down 1.4% today and up 73% over 12 months.
Morgans lowered its rating on this ASX 200 mining share from buy to accumulate after reviewing the FY26 numbers.
The broker raised its 12-month share price target from $68 to $71.
This implies an 11% potential upside ahead.
Morgans said:
MIN delivered a strong FY26 result and FY27 guidance. Underlying NPAT was an 8% beat vs expectations and MIN declared a final dividend of 83cps (vs consensus 7.4cps).
The stock gave back its early gains post the conference call after MIN flagged copper as a next potential growth pathway which we think unsettled some investors.
South32 Ltd (ASX: S32)
The South32 share price is $5.24, up 1.5% today and up 92% over 12 months.
Morgans downgraded the ASX 200 mining share from accumulate to hold following South32's FY26 report.
The broker increased its 12-month price target from $4.70 to $4.90.
This suggests a potential 6% downside ahead.
Morgans said:
S32 delivered a broadly in line FY26 result, with FY27 guidance on unit cost and capex reflecting existing market expectations of continued cost pressure.
Don't count on S32 returning a meaningful part of the Alcoa deal proceeds, with the company going as far as talking down its commitment to its ordinary dividend.
Similar to some of its peers, S32's earnings have enjoyed a healthy upcycle, our concern is that it is starting to increasingly look factored in (while the company arguably swaps its earnings clout for a mid-cycle M&A war chest post Alcoa deal).
With S32's share price outperforming even its pure-copper ASX peers year-to-date on larger cycle leverage, we downgrade our rating to HOLD (from Accumulate).
Paladin Energy Ltd (ASX: PDN)
The Paladin Energy share price is $11.66, up 0.4% today and up 44% over 12 months.
Morgans downgraded the ASX 200 energy share from buy to accumulate following the uranium miner's FY26 results.
The broker has a 12-month price target of $14.10, implying a 20% upside from here.
Cash is starting to flow — PDN delivered positive operating cash flow for the first full year since the restart, generating US$38m in FY26 and marking the transition from ramp-up story to steady-state and cash-generating producer.
Guidance beaten across the board – Langer Heinrich Mine (LHM) exceeded FY26 production, sales and cost guidance, providing further evidence that the operation can sustainably deliver and continues to build momentum as it enters more steady state operations.
Following recent share price strength, we move to an ACCUMULATE (previously BUY) with an increased price target of A$14.10ps.
Lovisa Holdings Ltd (ASX: LOV)
The Lovisa share price is $24.73, down 3.9% today and down 41% over 12 months.
Morgans downgraded the ASX 200 retail share from buy to accumulate after its FY26 report.
The broker shaved its 12-month price target from $32.50 to $31.
This indicates potential capital gains of 25% over the next year.
Morgans said:
LOV delivered a strong FY26 result, with EBIT up 14.1%, ~4.5% ahead of consensus. Excluding estimated ~$22m of EBIT losses from Jewells UK, the underlying business would have grown just shy of 30% yoy.
The global store rollout continues, opening 160 stores in FY26, with management expecting a similar number in FY27.
Trading in the first 8 weeks of FY27 was positive (+3% LFL), against a challenging comp in the pcp (+5.6%).
Our valuation lowers to $31.00 and we move to an ACCUMULATE (from BUY) following recent strength in the share price.
Nanosonics Ltd (ASX: NAN)
The Nanosonics share price is $2.72, down 1.6% today and down 36% over 12 months.
Morgans downgraded the ASX 300 healthcare share from buy to accumulate after reviewing Nanosonics' FY26 report.
The broker lowered its 12-month price target from $4 to $3.50.
This suggests a potential near-30% upside ahead.
Morgans said:
Mixed result. Our key focus was whether 2H delivered the guided growth acceleration, it didn't, but trophon-only earnings confirmed the core business remains in excellent health regardless of the group-level miss and near-term OPEX requirements for the CORIS launch.
Trophon's demonstrated EBIT growth ex-CORIS underwrites the thesis regardless of near-term CORIS spend, and the FY27 guidance step-down reads to us as front-loaded investment to land the launch properly, not any deterioration in the longer-term opportunity.
