Buy, hold, sell: Catapult Sports, Guzman Y Gomez, and Wesfarmers shares

Buy, hold, sell: Catapult, Guzman Y Gomez, and Wesfarmers shares

The team at Morgans has been busy looking at a number of popular ASX shares this week.

Let’s see if the broker is bullish or bearish on these names. Here’s what it is saying:

Catapult Sports Ltd (ASX: CAT)

Morgans was pleased with this sports technology company’s performance in FY 2026, highlighting that its revenue and annualised contract value (ACV) were strong. But the biggest positive was arguably that operating leverage is starting to show.

In response, Morgans has retained its buy rating with a $5.40 price target. It said:

CAT’s FY26 result confirmed strong organic momentum, with revenue US$141m (+19% c/c) and closing ACV US$134m (+28% c/c) at the top of guidance, while Management EBITDA of US$25m (17.6% margin, +67% pcp) beat MorgansF. Operating leverage is now evident, with a 41% incremental margin (48% ex-acquisitions) in the period. ACV per pro team crossed US$30k for the first time whilst SaaS metrics improved. We trim FY27-FY29F Management EBITDA by 6-8% factoring in the result. Our price target is lowered to A$5.40 (from A$5.55) on these changes, offset to a degree by a valuation roll forward. BUY maintained.

Guzman Y Gomez Ltd (ASX: GYG)

The broker was pleased to see this quick service restaurant operator decide to close its US operations with immediate effect.

While this removes a potential growth engine, it also removes a loss-making part of the business that was weighing on its financial performance and simplifies its story.

Morgans has put a buy rating and $29.40 price target on Guzman Y Gomez shares. It said:

GYG announced the immediate exit of its US operations, a business that we forecast generated a significant FY26 underlying EBITDA loss and required materially more capital than could be justified by prospective returns. We view this as a positive catalyst, notwithstanding that the market has previously ascribed meaningful optionality value to the US as a long-term growth engine.

The exit removes a loss sooner than consensus anticipated and simplifies the story while the Australian operations are performing well and in line with expectations. Stripping out the US losses results in material upgrades to our EBITDA and NPAT forecasts. We maintain our BUY rating and upgrade our price target to A$29.40.

Wesfarmers Ltd (ASX: WES)

Morgans points out that the Bunnings and Kmart owner’s shares have pulled back meaningfully from their highs.

It believes this leaves Wesfarmers shares trading at more reasonable valuation. As a result, the broker has upgraded its shares to an accumulate rating with an $81.10 price target. It said:

WES’s share price has fallen 9% over the past 12 months and 7% over the past 6 months. The stock is now trading on a more reasonable 26.5x FY27F PE compared to a peak one-year forward multiple of ~37x in August 2025. We adjust FY26/27/28F group EBIT by +0%/+2%/+2%, primarily reflecting higher lithium earnings driven by updated price assumptions. Our target price increases slightly to $81.10 (from $80.50) and with a forecast 12-month TSR of 12%, we upgrade our rating to ACCUMULATE (from TRIM).

In our view, WES remains a high-quality business with a healthy balance sheet and a proven management team. Amid ongoing geopolitical uncertainty and cost-of-living pressures, its retail divisions (Bunnings, Kmart Group, Officeworks, Priceline) are well-placed to grow due to their strong value propositions. A sustained improvement in lithium prices should also support earnings over the medium term.

The post Buy, hold, sell: Catapult Sports, Guzman Y Gomez, and Wesfarmers 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 positions in and has recommended Catapult Sports and Wesfarmers. The Motley Fool Australia has positions in and has recommended Catapult Sports. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.