Morgans names 2 ASX shares to buy now
The team at Morgans has been looking at a number of ASX shares this week.
Two that have fared well and been given buy ratings are named below. Here's why the broker is bullish on them:
Amcor (ASX: AMC)
Morgans notes that this packaging giant delivered a softer than expected half-year update this week with positives and negatives.
One positive was that Amcor delivered synergy benefits at the high-end of its guidance range during the second quarter. Offsetting this somewhat was the performance of the ASX share's non-core businesses. It explains:
AMC's 1H26 operating performance was slightly softer than expected. However, underlying EPS was largely in line with forecasts and fell within management's guidance range. EPS benefited from a more favourable tax rate, which offset weaker results from the non-core portfolio. A key positive was the delivery of Berry synergy benefits of US$55m in 2Q26, which was at the top end of management's guidance range of US$50-55m. Synergy targets for FY26-28 were reiterated.
A key negative was the performance of the non-core businesses, with volumes down high-single digit percentages during 2Q26. However, following the renegotiation of several customer contracts on better terms, segment performance should improve in 2H26. AMC also noted that discussions around portfolio optimisation are progressing well, and we view any future announcement in this area as a potential positive catalyst for the stock.
In response to the update, the broker has reaffirmed its buy rating with a trimmed price target of $75.80.
Jumbo Interactive Ltd (ASX: JIN)
Another ASX share that Morgans rates as a buy is online lottery ticket seller Jumbo Interactive.
The broker notes that the Oz Lotteries owner delivered slightly softer than expected revenue in the first half but operating earnings largely in line with its estimates. It said:
We have updated our estimates following JIN's preliminary release of headline numbers ahead of the 1H26 result. Group revenue increased 29% yoy to $85.3m, modestly below our expectations due to weaker Lottery Retailing TTV. Underlying group EBITDA of $37.5m rose 22% on the pcp and was in line with our forecasts. Overall, our topline and earnings assumptions remain broadly unchanged. Our FY26-27F NPAT and EPS forecasts increase by 4% and 2% respectively, driven primarily by lower amortisation of acquired intangibles.
Morgans thinks that recent share price weakness has created a buying opportunity. Especially given its positive earnings growth outlook. It adds:
We view the 5% share price decline today as an opportunity to build a position in a company capable of delivering >15% EPS CAGR over the next three years. JIN is trading on an undemanding forward EV/EBITDA multiple of ~6x.
Morgans has retained its buy rating with a trimmed price target of $14.90.
The post Morgans names 2 ASX shares to buy now 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 positions in and has recommended Jumbo Interactive. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended Jumbo Interactive. 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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