Buy, hold, sell: Aristocrat, Breville, and Healius shares

If you are hunting for some new portfolio additions, then it could pay to hear what Morgans is saying about the three ASX shares in this article.

Does the broker rate them as buys, holds, or sells? Let’s dig deeper into things:

Aristocrat Leisure Ltd (ASX: ALL)

Morgans was impressed with this gaming technology company’s performance in the first half of FY 2026. It notes that Aristocrat outperformed expectations thanks largely to its gaming business.

In response, the broker has retained its buy rating on Aristocrat shares with an improved price target of $67.00. It said:

Aristocrat Leisure (ALL) 1H26 result beat our forecasts and came broadly in line with consensus, despite management’s prior flagging of a softer than usual 1H skew. Gaming was the clear standout – strong outright sales on continued Baron cabinet demand and solid leased adds in a thin content period. Product Madness and Interactive came in below our forecasts, though the latter is complicated by a D&D reclassification and acquisition drag that flatters the headline miss.

Greater clarity on the FY26-29F earnings shape is expected at the July investor day. Capital management remains a key pillar – a $1bn buyback extension marks $5.1bn returned over five years, underpinned by a fortress balance sheet at 0.3x net debt/EBITDA. We now assume a normalised 1H/2H skew and incorporate ~$100m in annualised savings in FY27, lifting EPSA 3% and 4% for FY26-27F respectively.

Breville Group Ltd (ASX: BRG)

Another ASX share that Morgans is positive on is appliance manufacturer Breville.

Following the release of positive updates from peers, the broker has retained its buy rating on Breville’s shares with a $36.75 price target. It commented:

1Q26 updates from key offshore peers have shown broadly positive read-throughs for BRG, despite an ongoing challenging consumer and macro backdrop. We consider small domestic appliance peers with a premiumisation focus (DLG / KitchenAid), innovation-led NPD (SN), high Coffee exposure (DLG) and ongoing geographic expansion (all) as holding strong relevance for BRG.

Sales momentum across these select peers in 1Q26 (DLG +6.6%; Ninja brand +9.1%; KitchenAid +10%) appears broadly positive and supportive of our view for ongoing outperformance from BRG. BUY maintained.

Healius Ltd (ASX: HLS)

Finally, Morgans was disappointed with this healthcare company’s update and sizeable downgrade to earnings.

And given the increased uncertainty over the outlook of its pathology business, the broker has retained its hold rating with a reduced price target of 41 cents. It said:

HLS has materially downgraded FY26 earnings, which we find disappointing given reiterated consensus-aligned guidance at the 1H26 result only three months ago. While Pathology cost control continues to improve and labour optimisation initiatives are gaining traction, weaker volumes, ongoing GP softness and mounting regulatory/funding pressures are offsetting operational progress. Agilex continues to perform relatively well, and HLS has commenced a strategic review following unsolicited interest in the asset.

However, the extent to which value can be crystallised above the original high acquisition multiple remains uncertain given the business’ modest scale and inconsistent earnings trajectory. While a potential Agilex sale could provide balance sheet upside, the downgrade reinforces that sustainable margin recovery within core Pathology remains elusive. We adjust FY26-28 estimates, with our target price decreasing to A$0.41. HOLD.

The post Buy, hold, sell: Aristocrat, Breville, and Healius shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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.