Investment firm Morgans has issued new recommendations for three major Australian companies—Amcor, ANZ Group Holdings Ltd, and Macquarie Group Ltd—providing insights for investors looking to enhance their portfolios.
Amcor: A Buy Recommendation
Morgans analysts believe that packaging giant Amcor (ASX: AMC) is currently undervalued. They have upgraded their rating on the company’s shares to a buy, with a target price of $15.20. The firm cites several factors contributing to this decision, including Amcor’s low trading multiples, positive growth outlook, and a generous dividend yield of 6.1%.
Morgans stated, “Our target price is maintained at $15.20 and with a 12-month forecast total shareholder return (TSR) of 25%, we upgrade our rating to BUY (from ACCUMULATE).” The upgrade follows Amcor’s solid results for the first quarter of fiscal year 2026, which bolstered management’s confidence in achieving synergy targets for the full year. Analysts view the current valuation as attractive, trading at 10.4 times the forecasted price-to-earnings (PE) ratio for FY26.
Investors can look forward to potential positive catalysts, including upcoming quarterly results that may exceed expectations and the successful completion of additional asset sales.
ANZ Group: A Trim Recommendation
On the other hand, ANZ Group Holdings Ltd (ASX: ANZ) has faced a less favorable assessment from Morgans. Following disappointing second-half results, the firm has maintained a trim rating on the bank’s shares, setting a price target of $33.09. Morgans indicated that the shares appear expensive after a strong gain, especially considering the recent profit decline.
Excluding significant items totaling $1.1 billion, ANZ’s profit for the second half of fiscal year 2025 decreased by 7% compared to the first half, alongside a 3% drop in pre-provision profit. Although revenue grew by 2%, costs surged by 6%, and credit impairment charges doubled. “Earnings were materially below market expectations,” Morgans explained, noting that consensus may not have fully accounted for the significant items.
Despite downgrading cash earnings forecasts for fiscal years 2026 to 2028 by 1-2%, the target price was lifted by 29 cents to $33.09 per share due to strong CET1 capital performance in the second half of fiscal year 2025. Morgans recommends that clients consider trimming their holdings into share price strength, as current valuations are nearing all-time highs.
Macquarie Group: A Hold Recommendation
Finally, Macquarie Group Ltd (ASX: MQG) has received a hold recommendation from Morgans following a lackluster performance in the first half of fiscal year 2026. The broker set a price target of A$215.00, slightly down from a previous target of A$223.00.
Morgans noted that Macquarie’s net profit after tax (NPAT) for the first half was A$1.65 billion, reflecting a 3% increase year-on-year but falling short of the company’s own consensus estimate of A$1.81 billion by 9%. The discrepancy was attributed to various factors, including increased investment spending in the Commodities and Global Markets segment and impairments related to green assets.
While acknowledging the challenges, Morgans provided a slightly optimistic outlook, making minor downgrades to FY26 earnings by 2%, while lifting earnings estimates for subsequent years by 2% to 4%. Given the current valuation at 19 times PE, Morgans maintains its hold recommendation, viewing the stock as fairly valued.
Investors should consider these insights from Morgans when evaluating their positions in Amcor, ANZ, and Macquarie Group, as the recommendations reflect the current market conditions and company performances.
