Morgans says these ASX shares could rise 5%, 20%, and 55%

Looking for some investment options? Well, Morgans has just given its verdict on these ASX shares.

Is it bullish or bearish? Let’s see what the broker is saying about them:

Astron Ltd (ASX: ATR)

Morgans is a fan of this mineral sands and rare earths company and has named it as a (speculative) buy with a 90 cents price target. This implies potential upside of 55% for investors from current levels. It commented:

ATR’s flagship Donald Project is shovel-ready and on track for a Phase 1 FID in the Sept-Q 2026, with project financing and HMC offtake the final gating items. A newly released Phase 2 study and JV partner Energy Fuels’ rapid US rare earth processing build-out reinforce the long-term upside of this high-quality, ex-China critical minerals developer. Maintain SPECULATIVE BUY rating with a A$0.90ps target price.

Baby Bunting Group Ltd (ASX: BBN)

The broker thinks a compelling entry point has arrived for investors to accumulate this baby products retailer’s shares. It has a price target of $1.70 on its shares, which implies potential upside of 20% for investors from current levels.

Morgans believes at under 9x earnings, this ASX share looks good value. It said:

BBN reported a weaker than expected trading update, downgrading its pro-forma NPAT by ~11% at the midpoint of guidance. The downgrade was driven by softer sales, particularly in the 4Q, and increased supply chain costs. Our price target lowers to $1.70 (from $1.79), and we maintain our ACCUMULATE rating. Despite a softer consumer environment, we see the strength of the refurbished store program likely to underpin earnings growth in FY27. Trading at <9x PE, we see the current price as a compelling entry point to accumulate.

Tasmea Ltd (ASX: TEA)

Morgans has downgraded this specialist maintenance services provider’s shares to an accumulate rating with a $9.80 price target (offering 5% upside). It made the move after the ASX share recorded very strong gains over the past month. The broker adds:

Hot-on-the-heels of the Maxim acquisition announced earlier this month, TEA has entered into an agreement to acquire JPS Group, a specialist integrated services provider to [the] energy sector, for $50m upfront (5x FY26 EBIT) or up to $75 million inclusive of all earn-outs (7.5x FY26 EBIT or just 6.2x $12m maintainable EBIT).

This adds scale and an important growth lever to the underperforming Mechanical division, with JPS expected to double revenue by FY29. For the base business, FY26 guidance of $117m EBIT and $72.5m NPAT has been reiterated. We increase our EPS forecasts by +5-6% in FY27 and FY28. Our target price rises in line with our earnings forecasts to $9.80 (from $9.15).

The post Morgans says these ASX shares could rise 5%, 20%, and 55% 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.