The team at Morgans has recently evaluated a series of updates, resulting in buy ratings for three ASX 200 shares. These recommendations include Catalyst Metals Ltd, CSL Ltd, and Light & Wonder Inc. Here’s a closer look at why Morgans is optimistic about these companies.
Catalyst Metals Ltd: A Promising Gold Miner
Catalyst Metals Ltd (ASX: CYL) has caught Morgans’ attention, despite a softer-than-expected first-quarter performance. The gold miner’s recent update was impacted by mill maintenance, an isolated event that led to higher unit costs. However, Morgans remains confident in Catalyst’s ability to meet its FY 2026 guidance.
CYL delivered a softer than expected operating result for 1Q, driven predominantly by mill maintenance, an isolated event. CYL reiterated its FY26 guidance despite 1Q unit costs being outside of stated parameters – we think guidance is still within reach and maintain our preference for CYL within the ~100kozpa producer peer group (CYL, PNR, OBM).
Following the results, Morgans adjusted its FY26 capital expenditure forecast to A$336 million from A$231 million. This increase reflects updated exploration and growth capital requirements, particularly for the Four Eagles exploration drive in Victoria and continued development at Plutonic. Morgans reiterates its BUY rating, with a price target of A$10.58 per share, slightly down from the previous target of A$11.00.
CSL Ltd: A Biotech Giant Facing Challenges
CSL Ltd (ASX: CSL), a major player in the biotech industry, also received a buy rating despite recent setbacks. Morgans acknowledges the company’s disappointing performance but argues that the market reaction has been excessive, leaving CSL’s shares undervalued.
Despite the majority of the business “tracking to plan”, FY26 cc guidance had been downgraded (2-3% at revenue and NPATA mid-points), mainly reflecting continued declines in US influenza vaccination rates, although Chinese government cost containment affecting albumin demand was also flagged.
CSL’s management is working to mitigate the impact of these challenges, particularly in the US influenza vaccine market. Morgans believes that the risk of a permanently lower base is overestimated, noting that CSL’s segments like Seqirus and Vifor are undervalued. Consequently, Morgans has lowered its FY26-28 net profit forecasts by up to 14.3%, with a revised price target of A$249.51, down from A$293.83.
Light & Wonder Inc.: A Strong Performer in Gaming Technology
Light & Wonder Inc. (ASX: LNW) has impressed Morgans with its robust third-quarter performance, positioning it well for FY 2025. The gaming technology company’s results have alleviated market concerns regarding its ability to meet guidance.
Light & Wonder’s (NDAQ/ASX: LNW) strong 3Q25 result was met with a well-deserved positive reaction, alleviating market concerns around FY25 guidance delivery with a much more achievable 4Q25 implied outlook.
The company’s record margin expansion across its segments, particularly in iGaming, has been a standout. With the imminent NASDAQ delisting, this strong performance sets a positive tone for FY26. Morgans maintains its BUY recommendation with a 12-month target price of A$175.
Market Implications and Future Outlook
The recommendations by Morgans highlight a strategic approach to investing in diverse sectors within the ASX 200. The focus on companies with potential despite current challenges suggests a long-term investment perspective. Investors are encouraged to consider these shares for their portfolios, taking into account the detailed analysis and forecasts provided by Morgans.
As the market continues to fluctuate, these buy ratings reflect confidence in the underlying fundamentals of Catalyst Metals, CSL, and Light & Wonder. The coming months will be crucial as these companies strive to meet their guidance and navigate industry-specific challenges. Investors and analysts alike will be closely monitoring their performance and any further updates from Morgans.
