Morgans names 2 ASX shares to buy and 1 to hold

If you are in the market for some new investments, then read on.

That’s because Morgans has just picked out two ASX shares that it rates as a buy and one that it thinks is a hold.

Here’s what the broker is saying:

Intelligent Monitoring Group Ltd (ASX: IMB)

This security, monitoring and risk management services provider has caught the eye of Morgans after announcing new acquisitions.

In response to the news and an accompanying capital raising, the broker has retained its buy rating and $1.00 price target on the ASX share. It said:

Following the agreement to acquire Tyco NZ and Red Wolf on 12/12 (Hungry Caterpillar), IMB raised $20m on 16/12/25 at $0.58/share via an institutional placement to return leverage back to pre-acquisition levels (1.6x net debt/pro forma EBITDA). We incorporate the equity raise, though our price target is unchanged ($1.00) as a re-rating in peer multiples offsets the dilution.

Regal Partners Ltd (ASX: RPL)

Another ASX share that has been given a buy rating is Regal Partners.

Morgans has been impressed with the fund manager’s recent trading update and particularly its performance fees. The latter has seen the broker upgrade its estimates for the coming years.

As a result, it has retained its buy rating and lifted its price target to $4.25. It said:

RPL continues to demonstrate its ability to generate performance fees through equity market cycles, with 2HCY25 performance fees of $130m being c.3x times the performance fee booked in 1HCY25. Increased confidence in the recurring nature of the performance fees has seen us increase our expectations over the forecast period, to be within the target range of 40-60 bps of FUM. Despite a solid upgrade to our CY25 earnings forecasts, the valuation impact is relatively muted, a result of the modest earnings multiple applied to average ‘through the cycle’ performance fees. On this basis we retain our BUY rating, increasing our target price to $4.25/sh (previously $4.00/sh).

Endeavour Group Ltd (ASX: EDV)

Morgans notes that this alcohol drinks giant has delivered an improved sales performance in the second quarter of FY 2026. However, this was achieved at the expense of margins.

As a result, it hasn’t seen enough to change its rating and retained its hold recommendation and $3.70 price target. Commenting on the Dan Murphy’s owner, the broker said:

EDV’s Retail segment delivered an improved sales performance in 2Q26 (+1.8%) following a decline in 1Q26 (-1.4%). However, this growth was driven by sharper pricing and increased promotions, with 1H26 margins expected to be materially lower than the pcp. With the retail liquor market remaining subdued, management said the changes to its pricing strategy were aimed at reinforcing the group’s customer value proposition (underpinned by Dan Murphy’s lowest liquor price guarantee), reignite top-line growth, and respond to an increasingly competitive landscape, particularly online. Management has guided to 1H26 group EBIT of between $555-566m.

At the mid-point, this was 5% below both our previous forecast and Visible Alpha consensus. We adjust FY26/27/28 group EBIT forecasts by -5%/-6%/-6%. Our target price remains unchanged at $3.70, with downgrades to earnings forecasts offset by a roll-forward of our model to FY27 forecasts. HOLD rating maintained.

The post Morgans names 2 ASX shares to buy and 1 to hold appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Intelligent Monitoring Group. The Motley Fool Australia has recommended Intelligent Monitoring Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.