Analysts at Morgans have been busy combing through results this week.
Four ASX shares that have come out with glowing reviews and earmarked as its best calls to action are listed below.
Here's what the broker is saying about these stocks, which it is "happy to buy today":
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Imdex Ltd (ASX: IMD)
The first ASX share that Morgans is tipping as a buy is mining technology company Imdex.
Its analysts think investors should look beyond its soft guidance for FY 2025 and focus on the long term. They said:
The result was largely as expected. However, outlook commentary was downbeat as exploration activity has yet to increase despite positive macro trends. This may cause some disappointment, but it's unsurprising given the lag and, in our view, should not be a deterrent. Our thesis is premised on a prolonged trough in raisings, which can only continue for so long, and the key lead indicators trending in the right direction. We maintain our ADD rating.
Morgans has an add rating and $2.40 price target on its shares.
Lottery Corporation Ltd (ASX: TLC)
Morgans was pleased with this lottery operator's full year results, which came in slightly ahead of expectations. It said:
FY24 earnings met our expectations, with the top line rising 14% yoy following a particularly strong period for the Lotteries segment. Strong Lotteries margins offset a decline in Keno profitability. NPAT exceeded our forecast by 1%, reaching $412m. We maintain our ADD rating.
The broker has an add rating and $5.40 price target on its shares.
Step One Clothing Ltd (ASX: STP)
Morgans was pleased with this underwear retailer's results and successful pivot to profitable growth. It said:
STP outperformed expectations, with earnings that were around 6% ahead of the guidance provided in June and 50% higher than FY23. All regions saw positive sales momentum. The efficiency of marketing expenditure was considerably better than last year (and even better than we'd expected), underlining STP's successful pivot to a strategy of 'profitable growth'. We maintain our ADD rating.
Morgans responded to the result by retaining its add rating and $2.25 price target on its shares.
Superloop Ltd (ASX: SLC)
A final ASX share that gets the thumbs up from Morgans is telco Superloop. It was impressed with its performance in FY 2024 and highlights that the new financial year is likely to be even stronger. It said:
Despite posting great numbers and impressive growth in FY24 it looks like FY24 was just the warm-up year. FY25 guidance is for underlying EBITDA to grow ~55% to ~$86m (FY25 guidance is unchanged at the mid-point but has upside risk). We see a bull case for SLC to crack $100m, subject to all things going well. We maintain our ADD rating.
Morgans has an add rating and $1.90 price target on its shares.
