The team at Morgans has been running the rule over recent result releases.
Four ASX 300 stocks that were given the thumbs up and are described as "compelling buying prospects right now" are named below. Here's what its analysts are saying about them:
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Challenger Ltd (ASX: CGF)
The first ASX 300 stock that analysts at Morgans are positive on is annuities company Challenger. It was pleased with its result and highlights its improved capital position. It said:
CGF's FY24 normalised NPAT (A$417m) was in-line with consensus and +14% on the pcp. Overall, we saw this as a positive FY24 result highlighted by a strong improvement in Life business margins/returns, good group cost control and an upward step change in CGF's capital position. We retain our Add rating.
Its analysts have retained their add rating with an improved price target of $8.66.
CSL Ltd (ASX: CSL)
Morgans notes that this biotherapeutics giant delivered a result in line with expectations thanks largely to the key CSL Behring business. It commented:
FY24 results were broadly in line, with double-digit underlying top and bottom line growth and strong OCF. Strong plasma collections drove Behring sales (+15%), while Seqirus was soft (+4%) on reduced immunisation rates, albeit above market, and Vifor grew modestly given follow-on products in some EU markets. We retain our Add rating.
Morgans has retained its add rating with an improved price target of $330.75.
James Hardie Industries plc (ASX: JHX)
Another ASX 300 stock that Morgans remains positive on is building materials company James Hardie. The broker was disappointed with its second quarter guidance but notes that management has reaffirmed its full year guidance. It said:
JHX has reiterated its FY25 guidance, while forecasting 'particularly challenging' conditions for 2QFY25, resulting in 2Q guidance falling c.13%short of consensus (and our) adjusted net income expectations. This weak 2Q invariably places additional weight on 2H25, which includes a seasonally weaker December period. With management reiterating FY25 adjusted net income guidance of U$630-700m, we set our forecast at the lower end of the range, acknowledging that lower interest rates will be a positive, when they occur. We retain our Add rating.
The broker has retained its add rating with an improved price target of $57.25.
Healthco Healthcare and Wellness REIT (ASX: HCW)
Finally, Morgans was pleased with this health and wellness focused property company's results. It explains:
The FY24 result saw portfolio metrics remain stable (cash collection 100%; occupancy 99%; and WALE +12 years). NTA $1.64. Asset recycling has been a focus during FY24 and management has flagged it will continue to look at asset sales in FY25, although no further detail around the quantum of divestments at this stage. We retain our Add rating.
Morgans has retained its add rating with a trimmed price target of $1.51.
