Buy, hold, sell: PLS, Ramelius, and Woolworths shares

With so many ASX shares to choose from on the local bourse, it can be hard to know what to buy and what to sell.

To narrow things down, let's see what Morgans is saying about the three popular shares named below.

Does the broker rate them as buys, holds, or sells? Let's find out:

PLS Group Ltd (ASX: PLS)

Morgans was relatively pleased with the performance of this lithium miner in the first quarter, highlighting that its production and costs beat expectations.

And while shipments fell short due to delays and pricing was weaker, the broker remains positive. It has retained its accumulate rating with a trimmed price target of $3.60. This is still meaningfully higher than its current share price of $2.75. It said:

1Q27 production and costs beat expectations, but a 15kt shipment delayed into October and weaker pricing led to a -12%/-6% revenue miss vs MorgansF/consensus. FY27 production and cost guidance are unchanged, while capex guidance has been revised to A$1,130-1,195m to include P2000, enhancing infrastructure and the newly announced Fortescue PPA, which is expected to lower P2000 unit costs by a further ~A$15-20/t. Maintain ACCUMULATE with A$3.60ps target price (previously A$3.70ps).

I would have to agree with Morgans on PLS shares. It might not be a standout buy, but it could be a good pick for long-term lithium exposure.

Ramelius Resources Ltd (ASX: RMS)

Another ASX share that Morgans has been looking at is gold miner Ramelius Resources.

In response to its first-quarter update, the broker has retained its buy rating on the company's shares with an improved price target of $5.18. This is notably higher than its current share price of $3.54. It commented: 

RMS has released its 1Q27 quarterly report: 48.8koz at an AISC of A$2,656/oz, with cash and gold up A$118m QoQ to A$768m and underlying FCF of A$62m. Production was impacted by wet weather interrupting haulage from Penny, deferring higher-grade ore into 2Q27. 

Never Never grade was lower but in line with RMS's mine sequencing, with tonnes and grade the key watch point as the year progresses. FY27 guidance was reaffirmed. We maintain our BUY rating with a price target of A$5.18ps (previously A$5.02ps).

I think this is a fair call from Morgans and Ramelius could be a good pick for gold exposure.

Woolworths Group Ltd (ASX: WOW)

Morgans has been looking at this supermarket giant's quarterly update. It was happy with the performance of its Australian Food division, which continued its solid momentum.

This has seen the broker lift its earnings estimates slightly through to FY 2029.

However, Morgans believes Woolworths shares are fully valued now and has downgraded them to a hold rating with a $43.55 price target. This compares to its current share price of $39.48. It commented:

WOW delivered a solid 1Q27 sales trading update. The performance of the Australian Food division was a key highlight with solid momentum continuing in Australian B2B. Sales growth in NZ Food moderated toward the end of the quarter due to increased competition and softer consumer sentiment, while BIG W was impacted by weaker discretionary retail conditions. We adjust FY27/FY28/FY29F group underlying EBIT by +1%/+1%/+1%. Our target price rises modestly to $43.55 (from $43.50). 

In our view, while trading conditions remain challenging in NZ Food and BIG W, the core Australian Food business (~88% of group EBIT) continues to perform well, supported by improved execution and sustained sales growth ahead of the market. While we expect this momentum to continue, WOW is now trading on 28x FY27F PE with a yield of 2.7%. As a result, we see limited upside from current levels, with the valuation largely reflecting the growth outlook. We downgrade our rating to HOLD from ACCUMULATE.

I think Morgans makes a fair point, but I would be inclined to rate Woolworths shares higher. Given its defensive qualities and strong performance, I see Woolworths as a good option in the current environment.

The post Buy, hold, sell: PLS, Ramelius, and Woolworths shares appeared first on The Motley Fool Australia.

Motley Fool contributor James Mickleboro has positions in Woolworths Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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