The Australian share market continues to present opportunities despite ongoing volatility. Broker updates from Morgans have placed three well-known companies back in the spotlight.
Objective Corporation Ltd (ASX: OCL), ResMed Inc (ASX: RMD), and South32 Ltd (ASX: S32) have all received fresh ratings following significant developments. Investors seeking the best ASX stocks for future growth in Australia are watching these names closely.
The companies are in various industries, including software, healthcare, mining and more. Their trials and tribulations can help inform investors about where the value may lie in 2026 and beyond.
Investors are rattled by new broker upgrades to ASX stocks, including Objective Corp, ResMed and South32. [Courtesy: Reuters]
Why Objective Corp Remains Among ASX Growth Stocks Australia 2026
Objective Corporation has faced a major setback after losing its long-standing contract with the Australian Department of Defence. The agreement had remained in place for more than 25 years.
Despite this, Morgans retained its Buy recommendation and reduced its price target to $11.50 per share. The broker noted that Objective’s shares have fallen to a five-year low. The company expects no earnings impact in FY26.
However, it expects annual recurring revenue to finish FY26 in line with FY25 at approximately A$120 million before foreign exchange headwinds. Morgan’s reduced its FY27 and FY28 net profit forecasts by around 22-23%.
What Is Driving ResMed’s share price prediction in Australia?
Several factors have pushed ResMed’s valuation lower this year. Yet Morgans remains optimistic about the sleep treatment specialist. Key reasons supporting the broker’s Buy recommendation include:
- ResMed trades at around 16x forward earnings
- Consensus forecasts still indicate double-digit earnings growth
- Industry demand remains resilient despite competitive concerns
- The broker maintained its A$41.72 target price
The company faces challenges from GLP-1 therapies, positive Phase III data from Apnimed’s oral sleep apnoea treatment, and the possibility of Philips returning to the US PAP market in 2027. Nevertheless, current industry data does not indicate a material decline in underlying demand.
ResMed’s lower valuation has renewed investor interest in the healthcare technology leader. [Courtesy: Brchart]
How Does South32 Stock Analysis in Australia Change After The Aluminium Sale?
South32 seems to have done more than just a small tweak; it has made a kind of strategic shift after agreeing to sell its aluminium business.
From what I can tell, the deal comes in at about US$5.6 billion, with US$4.1 billion paid upfront and an added transfer of US$1.2 billion for closure and rehabilitation liabilities, so it’s not just the cash piece alone.
Morgan described the sale as a mixed outcome. The broker believes it creates a simpler and stronger company, although it also becomes smaller and less valuable. Key takeaways include:
- Total transaction value could reach approximately US$6.8 billion
- The deal sits below consensus valuations of US$8.8 billion to US$9.2 billion
- Morgans reduced its price target to A$4.50 from A$5.00
- The broker downgraded its recommendation to Hold
The transaction reflects the ongoing transformation occurring across Australia’s mining and resource sector.
What Do These Broker Ratings Mean For Future Investors?
Broker recommendations often provide important signals for retail and institutional investors. In this case, Morgan’s sees value opportunities in Objective Corp and ResMed despite recent setbacks. South32, however, faces a more balanced outlook following its asset sale. Investors should consider several factors before making decisions:
- Valuation levels compared with historical averages
- Industry growth potential over the next several years
- Company-specific risks and earnings forecasts
- Broader market and economic conditions
These factors can significantly influence future share price performance and investment returns.
Why ASX Growth Stocks Australia 2026 Remain In Focus
Australian investors continue to search for companies with sustainable earnings growth and attractive valuations. Objective Corp’s software platform, ResMed’s healthcare leadership and South32’s portfolio transformation each represent different investment themes.
For investors exploring ASX opportunities, these companies demonstrate how market sentiment can quickly change after operational updates.
The evolving landscape across the ASX and Australia’s resources sector also creates opportunities for investors following developments in the country’s healthcare and biotechnology sectors.
Could These Shares Deliver Long-Term Growth?
Investing in companies that have a sustainable business model and are capable of adapting to change can be a key factor in their long-term success. Objective Corp aims to regain investor trust following a major deal blow.
Competition is a problem, but ResMed is still enjoying good global sales of sleep treatments. South32’s investment plan is focused on future growth opportunities. The risk is still present, but broker assessments indicate that investors should not pass up these companies.
This could lead to opportunities for patient investors willing to consider the market’s volatility in the short-term and invest for the long-term, given the current valuations and strategic positions they hold.
Also Read: Top ASX Rare Earth Stocks 2026 That’re Turning Into Real Returns for Australians
Frequently Asked Questions
Q1: Why Did Morgan’s Keep A Buy Rating On Objective Corp?
A1: Morgan’s believes the market has overreacted to the Defence contract loss. The broker’s revised price target is $11.50 despite lower FY27 and FY28 forecasts.
Q2: What Is The Current ResMed share price prediction in Australia?
A2: Morgans maintained its Buy recommendation and kept its target price at A$41.72. The broker still expects double-digit earnings growth.
Q3: Why Was South32 Downgraded To Hold?
A3: South32’s aluminium sale improves business simplicity but reduces overall value. Morgans lowered its target price from A$5.00 to A$4.50.
Q4: Which Company Looks Most Attractive For Growth?
A4: Morgans currently favours Objective Corp and ResMed with Buy ratings. South32 carries a more balanced outlook following its strategic changes.
Disclaimer:
This article is provided for informational purposes only and does not count as financial advice, investment recommendations or an offer to buy or sell securities. The opinions discussed are drawn from publicly available broker commentary and company details at the moment it was published, so they’re kind of contextual, not absolute. Any investor should do their own due diligence, review their personal financial situation, and also obtain professional guidance before making any investment choices involving Objective Corp, ResMed, or South32 shares.
Source Links:
- https://www.fool.com.au/2026/07/04/buy-hold-sell-objective-corp-resmed-and-south32-shares/
- https://www.google.com/finance/beta/quote/RMD:ASX
- https://in.investing.com/equities/objective-corp-ltd
Elizabeth Jones is a finance and mining content specialist with over 10 years of experience creating clear, SEO-driven content across fintech, investing, banking, insurance, cryptocurrency, and resource markets. She transforms complex financial data and industry trends into engaging, reader-focused articles that improve understanding and audience engagement.
