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Buy, hold, sell: Fortescue, Northern Star, and Megaport shares

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Looking for some new portfolio additions?

Well, it could pay to hear what Morgans is saying about the popular ASX shares in this article. Are they buys, holds, or sells? Here’s what you need to know:

Fortescue Ltd (ASX: FMG)

Morgans notes that this iron ore giant delivered a mixed FY 2026 result with flat earnings.

In light of this, the broker has retained its hold rating with a reduced price target of $18.70. It said:

A mixed FY26 result from FMG, with higher revenue helping to offset cost increases and elevated admin/R&D to help keep underlying earnings flat. With the focus on FY27 guidance, Iron Bridge remained a key issue, with the magnetite operation struggling through ramp up and with elevated costs. Plans for a green steel plant was big news, although difficult to quantify. We maintain a HOLD rating, with an A$18.70 target price (was A$21.80).

Megaport Ltd (ASX: MP1)

The broker was impressed with this network-as-a-service company’s results and guidance for FY 2027.

In response, the broker has upgraded Megaport shares to a buy rating with a $25.00 price target. It commented:

MP1’s FY26 underlying EBITDA and FY27 EBITDA guidance were above market expectations. Both Network and Compute delivered record growth. At first glance, simple maths suggests MP1’s funding position looks tight. However, there is nearly $500m of additional funding that got lost in translation. We think MP1 ends FY27 with nearly $600m of surplus liquidity (assuming no new deals get signed). 

Deals already contracted deliver $620m of annualised contracted EBITDA which means after EBITDA lifts 3x YoY in FY27, it will more than double into FY28, based on deals already signed. We upgrade to a Buy recommendation and $25 target price.

Northern Star Resources Ltd (ASX: NST)

Finally, following the release of an FY 2026 result that was in line with expectations, Morgans has downgraded this gold miner’s shares to a hold rating with a $25.00 price target. 

Commenting on the downgrade, Morgans said:

FY26 result was in line with a 30cps final dividend beating both MorgansF and consensus, while FY27 guidance met expectations at the headline level despite KCGM ramp-up risk. Move to a HOLD (previously ACCUMULATE) with a A$25ps target price. We expect the near-term valuation discount to persist until operating & strategic clarity improves post KCGM ramp-up and new CEO beginning in October.

The post Buy, hold, sell: Fortescue, Northern Star, and Megaport shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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