Buy, hold, sell: Catapult, Step One, WiseTech Global shares

Are you hunting for new ASX shares to buy? If you are, it could be worth hearing what analysts at Morgans are saying about the three below.

Does it rate them as buys, holds, or sells? Let’s find out.

Catapult Sports Ltd (ASX: CAT)

This sports performance technology company has been given a buy rating by Morgans with a $6.25 price target.

It likes the company due to its large addressable market and strong growth outlook. With respect to the latter, the broker believes Catapult is positioned to deliver a compound annual growth rate of 20% for its annualised contract value through to FY 2028. It explains:

Catapult Sports Ltd (CAT) is a global leader in sports performance technology that provides a comprehensive all-in-one platform for elite professional and collegiate sports. This encompasses coaching, scouting, analytics and athlete management. Initially landing with its core wearables technology, CAT has since expanded its service offering and opened up new key verticals assisting its penetration into a large addressable market of ~20k teams globally.

We forecast strong topline growth for CAT, estimating a ~20% ACV 3-year CAGR, reaching ~US$180m by FY28. A scalable platform and strong SaaS metrics should see CAT join the ‘Rule of 40’ club by FY27. We initiate coverage on Catapult Sports (CAT) with a Buy recommendation and a A$6.25 per share price target.

Step One Clothing Ltd (ASX: STP)

This beaten down online underwear seller has copped a downgrade from Morgans following its disappointing trading update.

The broker has downgraded its shares to a hold rating with a reduced price target of 30 cents. It said:

STP has provided a materially weaker than expected trading update for 1H26. Revenue for 1H26 is expected to be down 31-37% to $30-33m and EBITDA is expected to be a loss of $9-11m, including a $10m provision for inventory obsolescence. Excluding inventory obsolescence, EBITDA for 1H26 would be a loss of $1m to $1m profit.

As a result of recent trading, STP has withdrawn its FY26 earnings guidance. We have materially lowered our earnings estimates for FY26/27/28 based on this trading update and uncertainty around the path forward. We have moved our recommendation to a HOLD (from SPEC BUY), with a blended EV/EBIT and DCF valuation of $0.36, we have applied a 15% discount to this valuation to set our price target at $0.30 due to earnings uncertainty.

WiseTech Global Ltd (ASX: WTC)

Finally, this logistics solutions technology company could be in the buy zone according to Morgans.

It was pleased with its investor day update and believes it is well-placed to continue its strong growth in the coming years. It has a buy rating and $112.50 price target on its shares. Morgans said:

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.

The post Buy, hold, sell: Catapult, Step One, WiseTech Global shares appeared first on The Motley Fool Australia.

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