Morgans just upgraded these ASX 200 stocks

If you have room in your investment portfolio for some new additions, then read on!

That's because analysts at Morgans have just upgraded a couple of ASX 200 stocks to buy ratings. Here's what Morgans is recommending to clients:

Aristocrat Leisure Ltd (ASX: ALL)

A pullback in the Aristocrat share price this week could be a buying opportunity for investors according to Morgans.

It was pleased with its "solid" performance in FY 2025 and notes that its result was largely in line with expectations.

And while it has trimmed its earnings estimates and valuation slightly, the broker has upgraded the ASX 200 stock on valuation grounds. It explains:

Aristocrat Leisure (ALL) delivered a solid FY25 result, posting healthy yoy growth following the sale of Plarium and full inclusion of NeoGames. Headline numbers were broadly in line with both our and market expectations, though a few soft spots emerged beneath the surface.

We see no structural shift in market dynamics and remain comfortable with the outlook. ALL reiterated its qualitative guidance for constant currency NPATA growth in FY26 (MorgansF: +10%). Following the result, our EPSA forecasts decrease ~6% across FY26-27F. Given recent share price weakness and a more compelling valuation, we upgrade ALL from Accumulate to Buy.

Morgans has a buy rating and $73.00 price target on its shares. This implies potential upside of 22% for investors over the next 12 months.

Breville Group Ltd (ASX: BRG)

Morgans thinks that appliance manufacturer Breville could be an ASX 200 stock to buy.

Due to its premium position in the market, its exposure to the growing coffee category, and its well-managed business, the broker feels that trade tariff-induced selling has created a buying opportunity for investors. It explains:

BRG's share price has retreated ~16% following the FY25 result, which we attribute to expectations of muted earnings growth in FY26 as the group navigates tariff-related margin pressure and an uncertain consumer discretionary backdrop.

[…] We are encouraged by recent positive updates from peers who share key attributes with BRG, including strong new product innovation and geographic expansion (SharkNinja; SN-US), premium brand positioning (KitchenAid / Whirlpool; WHR-US) and growing coffee category exposure (both). We view recent weakness in BRG as an opportunity to build a position in a high-quality, well-managed business, with structural coffee tailwinds. Upgrade to BUY.

Morgans has a buy rating and $36.05 price target on the company's shares. This suggests that upside of 14% is possible for investors from current levels.

The post Morgans just upgraded these ASX 200 stocks appeared first on The Motley Fool Australia.

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

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