Buy, hold, sell: Flight Centre, SGH, and Navigator Global shares

Wondering where to invest fresh capital?

To narrow things down, let’s see if Morgans rates the following three ASX shares as buys, holds, or sells. Here’s what it is recommending:

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans notes that this travel agent giant has unsurprisingly downgraded its earnings guidance.

It believes investors should look beyond this, highlighting that it would have been a great year for Flight Centre if it were not for the Middle East conflict.

As a result, it has retained its buy rating with an improved price target of $14.80 (from $14.55). It said:

Given recent downgrades from other travel industry peers due to the conflict in the Middle East, FLT’s downgrade wasn’t a surprise. Given its balance sheet strength and depressed share price, a new up to A$200m share buyback was announced. We have made only minor changes to our forecasts given FLT’s guidance was broadly in line with our previous forecast. While a peace agreement and eased travel restrictions are positive, we think 1H27 will still be challenging.

We forecast a strong recovery in 2H27. If it wasn’t for this conflict, FLT would have had a great year given its results for the first nine months were strong. We are buyers of FLT because when operating conditions ultimately improve, both its earnings and share price will be materially higher.

Navigator Global Investments Ltd (ASX: NGI)

Another ASX share that has been given a buy rating is investment company Navigator Global Investments.

Morgans has put a buy rating and improved price target of $3.42 (from $2.97) on its shares.

While the broker has trimmed its FY 2026 earnings estimates, it has lifted its outer year forecasts to reflect the Stable transaction. It commented:

NGI on the 4th of May announced the acquisition of a portfolio of alternative asset manager interests from Stable Asset Management, alongside a new strategic partnership between the two firms. Following the completion of the entitlement offer and lifting of research restrictions we update our forecasts. We view the transaction as strategically attractive, though the projected double-digit EPS accretion in Year 1 assumes Stable sustains its strong near-term growth trajectory (EBITDA +35% – MorgansE).

We revise our NGI FY26F EPS down -5%, reflecting management’s updated FY26F EBITDA guidance range (US$100m-US$104m), which came in below our prior forecast (US$106m). Our FY27F and FY28F EPS forecasts are lifted by 9%–13%, incorporating the earnings accretion from the Stable transaction. Our price target increases to A$3.42 (from A$2.97). We maintain our BUY rating with >20% upside to our price target.

SGH Ltd (ASX: SGH)

Morgans has been looking at this diversified investment company’s investor day presentation and was pleased with what it saw.

In response, the broker has resumed coverage with a buy rating and a $52.75 price target. It commented:

At SGH’s recent investor day management set out a medium-term strategy and framework to deliver 10% EPS/EBIT growth at a 15% ROCE, along with a near doubling of market cap. These ambitions are set against a track record of growing organically, while acquiring industrial businesses, improving operational performance and cash generation. SGH takes an entrepreneurial approach to leverage, gearing up to acquire what it perceives as ‘privileged assets’, with operational improvements then driving a quick deleverage.

With first gas expected from Crux in FY28, the Ravenhall (DXS JV) underway, and Boral volumes muted, we believe the business can continue delivering double-digit earnings growth. The stock is trading at 16.8x PER (Consensus, NTM), in line with its historical 3-year average, but a c.4.5x PER (NTM) discount to the index (ASX 200 industrials). Given the baseline strategy is set, and potential levers for outperformance are clear (property, Crux, M&A), we rate SGH a BUY with a A$52.75/sh price target.

The post Buy, hold, sell: Flight Centre, SGH, and Navigator Global 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 recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.