Investors seeking to expand their portfolios with promising Australian Securities Exchange (ASX) shares might find valuable insights in the latest recommendations from Morgans, a leading brokerage firm. Morgans has identified three ASX-listed companies that they believe offer significant growth potential: Guzman Y Gomez Ltd, South32 Ltd, and WiseTech Global Ltd.
Guzman Y Gomez Ltd: A Recipe for Growth
Guzman Y Gomez Ltd (ASX: GYG), a quick-service restaurant operator, has caught the attention of Morgans analysts, who have assigned a buy rating and set a price target of $32.30 on its shares. This suggests a potential upside of over 30% from current levels.
The brokerage firm expressed confidence in the company’s recent menu innovation, particularly its latest limited-time offer, the BBQ Chicken Double Crunch (BBQ CDC). This new menu item has been well-received, leveraging existing ingredients to maintain cost efficiency while boosting margins. Morgans noted:
“GYG has launched its latest limited-time offer (LTO): the BBQ Chicken Double Crunch (BBQ CDC). Early feedback suggests the item is one of GYG’s more indulgent menu items and taste tests have been overwhelmingly positive. The product leverages existing ingredients, meaning no incremental complexity or cost for stores, a margin-friendly innovation that aligns with GYG’s operational discipline. Management has repeatedly emphasised that menu innovation is a key lever for same-store sales (SSS) growth, and this launch reinforces that commitment. We reiterate our BUY rating.”
This development follows a broader trend in the restaurant industry where companies are increasingly focusing on menu innovation to drive sales and enhance customer engagement.
South32 Ltd: Positioned for Commodity Upswing
South32 Ltd (ASX: S32), a diversified mining company, is also on Morgans’ buy list, with a price target of $5.00, indicating a potential 11% increase by 2026. The firm’s positive outlook is driven by South32’s robust performance in the second quarter and its strategic positioning to capitalize on strong commodity prices.
Morgans highlighted the company’s operational success and market positioning:
“2Q26 was a modest beat at a group level operationally. Supported by strong alumina and silver output. FY26 guidance on operated assets unchanged, Brazil Aluminium under review. We have applied updated house precious metal forecasts to our estimates. Post-Illawarra divestment, S32 is ~90% base metal producer with limited execution risk (ex-Hermosa) and enjoying a healthy (and material) upgrade cycle from copper, aluminium and silver prices. Positioned to benefit from the upcycle, we maintain our BUY rating with a A$5.00 Target Price (was A$4.30).”
This recommendation comes at a time when the global demand for base metals is on the rise, driven by infrastructure projects and the transition towards renewable energy sources.
WiseTech Global Ltd: Leading the Logistics Innovation
Rounding out Morgans’ recommendations is WiseTech Global Ltd (ASX: WTC), a leader in logistics solutions technology. With a buy rating and a price target of $112.50, Morgans sees a potential upside of over 75% for investors in the next 12 months.
The firm’s confidence in WiseTech is bolstered by the company’s recent investor day, which showcased its strategic growth initiatives. Morgans commented:
“WTC’s FY25 investor day highlighted the group’s progress and broader outlook for a number of key near to medium-term growth initiatives, which in our view continues to see the group in a solid position to drive value. We retain our BUY rating, with a revised PT of $112.50ps.”
This move represents a significant endorsement of WiseTech’s ability to innovate and expand in the competitive logistics technology sector, where digital transformation is a key driver of growth.
Market Implications and Investor Outlook
The recommendations by Morgans underscore the diverse opportunities available within the ASX, spanning industries from food service to mining and technology. As investors consider these options, the potential for growth and value creation remains a central theme.
Meanwhile, the broader market context, including global economic conditions and sector-specific trends, will continue to influence the performance of these shares. Investors are advised to consider these factors when making portfolio decisions.
Looking ahead, the strategic initiatives and market positioning of Guzman Y Gomez, South32, and WiseTech Global will be key determinants of their future success. As these companies navigate their respective industries, their ability to innovate and adapt will be crucial in realizing the growth potential highlighted by Morgans.
