Investors seeking new additions to their portfolios may find valuable insights in the latest recommendations from Morgans, a leading brokerage firm. Morgans has identified three ASX-listed shares that they believe offer significant potential for growth. These shares are Guzman Y Gomez Ltd, South32 Ltd, and WiseTech Global Ltd, each with distinct strengths and opportunities for investors.
Guzman Y Gomez Ltd: A Flavorful Investment
Morgans has expressed confidence in Guzman Y Gomez Ltd (ASX: GYG), a prominent quick-service restaurant operator. The brokerage has assigned a buy rating and a price target of $32.30 on GYG’s shares, suggesting a potential upside of over 30%. This optimism is fueled by the company’s strategic menu innovations and operational efficiencies.
The recent launch of the BBQ Chicken Double Crunch (BBQ CDC), a limited-time offer, has been well-received, with taste tests indicating strong consumer approval. Importantly, this product leverages existing ingredients, minimizing additional costs and complexity for stores. Morgans highlights this as a margin-friendly innovation that aligns with GYG’s commitment to driving same-store sales growth through menu innovation.
“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. 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.”
South32 Ltd: Riding the Commodity Wave
South32 Ltd (ASX: S32), a diversified miner, is another ASX share that Morgans recommends. With a buy rating and a $5.00 price target, the broker sees an 11% upside potential by 2026. The company’s strong performance in the second quarter and robust commodity prices underpin this positive outlook.
South32’s operational success, particularly in alumina and silver output, has been a highlight. The company remains well-positioned to benefit from the current upcycle in commodity prices, particularly in base metals. Morgans notes that South32’s strategic focus on base metals, post-Illawarra divestment, reduces execution risks and enhances its growth prospects.
“2Q26 was a modest beat at a group level operationally. Supported by strong alumina and silver output. 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.”
WiseTech Global Ltd: A Technological Edge
Finally, WiseTech Global Ltd (ASX: WTC) has also received a buy rating from Morgans, with a price target of $112.50, indicating a potential upside of over 75% in the next 12 months. The logistics solutions technology company has impressed analysts with its strategic initiatives and growth outlook.
WiseTech’s investor day event last year showcased the company’s progress and highlighted several key growth initiatives. Morgans remains confident in WiseTech’s ability to drive value, citing its solid position in the market and continued focus on innovation and expansion.
“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.”
Looking Ahead: Investment Implications
The recommendations from Morgans underscore the diverse opportunities available in the ASX market, spanning sectors from quick-service restaurants to mining and logistics technology. Each of these companies presents unique growth drivers and strategic initiatives that could yield substantial returns for investors.
As market conditions evolve, these shares may offer resilience and growth potential, supported by strong operational strategies and favorable industry trends. Investors should consider these recommendations in the context of their broader portfolio strategies and risk tolerance.
With Morgans’ insights, investors are better equipped to navigate the complexities of the ASX market and make informed decisions that align with their financial goals.
