Morgans has been running the rule over a number of ASX shares this week.
Here's what the broker is saying about these three popular shares:
Collins Foods Ltd (ASX: CKF)
Morgans is positive on this quick-service restaurant operator following the release of its FY 2026 results.
However, the broker has cut its valuation to reflect disappointment in Europe. Morgans has a buy rating and $10.60 price target on Collins Foods shares. It said:
In our view, CKF reported a solid result in light of tough conditions. NPAT grew 17.6%, at the mid-point of guidance. COGS are expected to be flat to modest in FY27, which is better than feared. KFC Australia 1H27-to-date SSS of +4.0% is a stronger-than-expected start. Europe disappointed with early 1H27 SSS tracking deeply negative, though attributable to factors outside CKF's control.
Balance sheet remains strong with ND/EBITDA of 0.8x, keeping CKF well placed to fund the German expansion, accelerate Kwench rollout, and pursue further German bolt-on acquisitions. While the composition of our forecasts has changed, the net profit impact is minor. We believe CKF remains undervalued for its growth profile. Despite the tough consumer environment, CKF proves resilient regardless of numerous challenges and continues to deliver solid growth. We retain our BUY recommendation and revise our price target to A$10.60 from A$12.50.
Karoon Energy Ltd (ASX: KAR)
Another ASX share that Morgans has been looking at is Karoon Energy.
Following a rollercoaster month, the broker has upgraded the energy producer's shares to a buy rating with a $1.77 price target.
The broker appears to believe investors should be taking advantage of recent weakness caused by a Middle East peace agreement and guidance downgrade. It explains:
The last 30 days have been the toughest part of the rollercoaster, with KAR's share price -36% on an initial Middle East peace agreement and guidance downgrade. The start to 2026 was always going to be a tough period for KAR: a) heavy H1 investment spend, b) key Bauna well restart (SPS-92) and c) conflict uncertainty.
Now at the end of H1, the first two of those three factors have been resolved, with KAR moving back into positive FCF generation with most of its 2026 capex now sunk. KAR also announced the next phase of its on-market buyback starting in July 2026. We upgrade our rating to BUY (from Hold) with a A$1.77 target price (was A$1.67).
Pro Medicus Ltd (ASX: PME)
Morgans remains positive on this medical imaging technology company. However, due to a recent rally, the broker has downgraded Pro Medicus shares to an accumulate rating with an improved price target of $230.00.
Commenting on the downgrade, Morgans said:
PME has re-gained positive momentum (MoMo) off its multi-year lows. The move reflects a closing of the value gap flagged in our recent note (1 June), not any change to the underlying business. With a >50% price move in June and heavy buying across the network in the mid to low $100s, taking some profits on new and overweight positions is hard to argue against, but absolutely view maintaining positions in PME as a core growth holding.
With the near-term upside/downside skew now less favourable, happy to lock in some outsized profits while maintaining a core growth holding. TP upgraded to A$230.
The post Buy, hold, sell: Collins Foods, Karoon Energy, and Pro Medicus shares appeared first on The Motley Fool Australia.
Motley Fool contributor James Mickleboro has positions in Collins Foods and Pro Medicus. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Collins Foods and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026