Morgans just upgraded these ASX shares to buy ratings

There has been a flurry of results releases this week. Some have gone down well with the market, others have not.

Three ASX shares that impressed enough to get an upgrade from Morgans are named below. Here’s why the broker has become bullish on them:

Accent Group Ltd (ASX: AX1)

This footwear retailer delivered a profit result that was down heavily over the prior corresponding period, but in line with expectations.

Outside this, the broker was pleased to see management decide to close down the Glue Store brand and believes it will be supportive of earnings growth in FY 2027.

In light of this and the low multiples its shares trade on, the broker has upgraded the stock to a buy rating with a $1.30 price target. It said:

AX1 reported 1H26 EBIT which was down 30% yoy to $56.5m, in line with the revised guidance range provided in November ($55-60m). The decline was driven by soft comp sales and significant operating de-leverage from lower gross margins. AX1 has made the unsurprising decision to cease operations of loss-making Glue store, which contributed $8.4m EBIT loss in 1H26. On an underlying basis, EBIT fell 10%. We see this providing incremental benefit on group earnings in FY27.

We have increased our EBIT by 1.5% in FY26 and by 11% in FY27. Our blended valuation lifts to $1.30 (from $1.10). We have upgraded to a BUY (from HOLD). We see significant earnings growth in FY27, driven by underlying FY26 run-rate (ex-Glue), this makes the stock look inexpensive at ~10x FY27 P/E and ~5.6% yield.

Iress Ltd (ASX: IRE)

Morgans notes that this financial technology company delivered a profit result ahead of expectations. In response, it has upgraded its forecasts, bumped its valuation higher, and lifted its recommendation.

The broker now rates Iress shares as a buy with a $10.95 price target. It explains:

IRE delivered a solid FY25 result with underlying EBITDA of A$136.2m, +4.7% ahead of our estimate, and the group’s FY25 guidance range. Divisionally each segment delivered solid EBITDA growth half on half, with APAC Wealth up +24.5%, UK Wealth +46%, and GTMD +8.6%. FY26 Cash EBITDA guidance (underlying EBITDA less capex) was provided at A$116-126m (representing 15-26% growth YoY).

IRE flagged that capex for FY26 will remain in line with FY25, which implies further operating leverage is expected. We upgrade our underlying EBITDA forecasts by +5-6%, which sees our price target increase to $10.95 from $10.50. With over 50% implied TSR, we move to a BUY rating from ACCUMULATE.

Siteminder Ltd (ASX: SDR)

A third ASX share that has been upgraded by Morgans is hotel technology company Siteminder.

In response to its mixed half-year result and recent share price weakness, the broker has upgraded its shares to a buy rating with a $7.00 price target. It said:

SDR’s 1H26 result was largely per expectations at the revenue line (A$131m, +23% on the pcp on a constant currency basis), however marginally below at EBITDA. Growth in transaction revenue and the mix shift towards the higher margin Smart Platform offering saw the group gross margin expand ~98bps to 67.8%. Key business metrics remain robust (e.g LTV/CAC of 6.7x, ARR and Rule of 40 growth).

We undertake a broad review of our assumptions in this update. Our price target is lowered to A$7.00 (from A$8.10) as a result. However, given the significant discount of the current share price versus our valuation we upgrade to a BUY recommendation.

The post Morgans just upgraded these ASX shares to buy ratings appeared first on The Motley Fool Australia.

More reading

• Why Accent Group, DroneShield, IDP Education, and Sigma shares are jumping today
• 2 ASX growth shares I invested in last week with $4,000
• Here are the top 10 ASX 200 shares today
• Why this ASX 300 stock is jumping 20% on Wednesday
• Why Accent, DroneShield, WiseTech Global, and Woolworths shares are racing higher

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