Morgans just upgraded these ASX stocks to buy ratings (with huge upside!)

If you are on the lookout for ASX stocks to buy, then read on.

That’s because analysts at Morgans have just upgraded these names to buy ratings with big return potential. Here’s why it is bullish on them:

Minerals 260 Ltd (ASX: MI6)

This gold developer’s shares could be in the buy zone according to Morgans following the release of the highly anticipated mineral resources estimate (MRE) update for its Bullabulling Gold Project.

The broker believes the MRE positions Bullabulling to become a ~200,000 ounces per annum operation over ~15 years.

In response, the broker has upgraded Minerals 260’s shares to a buy rating with a vastly improved price target of $1.10. This implies potential upside of 180% from current levels.

Commenting on the gold explorer, Morgans said:

MI6 has released the highly anticipated MRE update for its flagship Bullabulling Gold Project. Bullabulling now hosts 130Mt at 1.0g/t Au for 4.5Moz, a material beat on our prior upside case of 3.5Moz. Importantly, a high degree of the resource (3Moz or 67%) remains in the ‘indicated’ category and underpins our updated forecasts and future pre-feasibility studies (PFS) – due mid CY26.

Given the updated scale, we now see clear line-of-sight to a ~200kozpa operation over ~15 years (previously 160–170kozpa), which we model via a staged mill expansion from 5Mtpa to 7Mtpa. Bullabulling now positions MI6 as the largest single-asset, undeveloped gold resource in Australia outside the established producer cohort, and we view it as a must-own stock. We upgrade our rating to BUY (from SPECULATIVE BUY) and increase our price target to A$1.10ps (previously A$0.55ps).

NextDC Ltd (ASX: NXT)

Another ASX stock that Morgans has become bullish on is data centre operator NextDC.

In response to new contract wins and recent share price weakness, the broker has upgraded the company’s shares to a buy rating with a $19.00 price target. This suggests that upside of more than 40% is possible from current levels. It said:

NXT has announced that following recent customer contract wins, presumably including a large single customer contract win across multiple locations, its contracted utilisation has increased by 71MW to 316MW as at 1 December 2025. Further contract wins were, and remain in, our forecasts so this mostly underpins our expectations.

However, we upgrade our capex assumptions and lift our FY27/28 EBITDA forecasts by 5%. Our target price remains $19 per share. The share price has declined ~19% in the last three months and given a ~40% differential between the current share price and our $19 target price we upgrade our recommendation to BUY from ACCUMULATE.

The post Morgans just upgraded these ASX stocks to buy ratings (with huge upside!) appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. 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.