Morgans’ top large-cap picks for October 2025

Our best ideas are those that we believe offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

August results season kept investors on edge with extraordinary volatility in well-held large caps (CSL, WOW). Despite the volatile moves, expectations of a sharper slowdown failed to materialise and solid updates from the banks and consumer sectors point to a generally resilient backdrop for corporate earnings. 

However, risks remain. Market concentration and ongoing macroeconomic uncertainty mean we’re likely to see significant divergence in stock performance. Investors should stay nimble and alert to opportunities and risks. This month we add Dalrymple Bay Infrastructure, PWH Holdings and ARB Corp to our Best Ideas list. We remove Amotiv.

Morgans' large cap best ideas

1. CSL Ltd (ASX: CSL)

• Sector: Healthcare
• Price Target: $293.83
• Dividend yield: 2.5%
• PE FY26: 18x
• 2y EPSg: 13.2%

Although a softer 2H Behring result and awkward restructuring timing may unsettle investors, we see the growth engine intact, with cost savings reinforcing the path to sustained double-digit earnings growth. 

We have a BUY rating on CSL with a blended DCF, PE and EV/EBITDA based target price of A$293.83.

2. Amcor (ASX: AMC)

• Sector: Industrial
• Price Target: $15.20 
• Dividend yield: 6.6% 
• PE FY26: 10x 
• 2y EPSg: 13.0%

AMC is a highly defensive business with leading global market positions and experienced management. We expect the addition of Berry, along with potential divestments, to enhance AMC’s growth outlook and balance sheet over the medium term. 

While execution of synergy targets will be the key, AMC has a strong track record in integrating large-scale transactions. 

3. Woodside Energy (ASX: WDS)

• Sector: Oil & Gas
• Price Target: $29.60 
• Dividend yield: 6.1% 
• PE FY26: 19x 
• 2y EPSg: 1.4%

We remain bullish on WDS as a business. The jump in net debt rightly increases delivery risk, but on the positive side the hurdles for WDS to unlock material value upside from here align with where its well-established core strengths sit. 

If oil prices hold steady we expect a discount in WDS’ share price to persist in the short term until it reassures on its capex profile and/or secures LALNG selldown(s). We remain cautious on the short-term outlook for oil prices, if any volatility were to unfold it would likely offer an attractive opportunity to increase positions.

4. Goodman Group (ASX: GMG)

• Sector: Property
• Price Target: $38.40 
• Dividend yield: 0.9% 
• PE FY26: 25x 
• 2y EPSg: 11.0%

GMG is a global industrial property group with a focus on infill sites across gateway markets. GMG actively manages its portfolio, growing Assets Under Management (AUM) and adding value through a buy, build, manage strategy. 

We view GMG as a high-quality, founder-led business with a robust balance sheet and a portfolio of A-grade data centre and industrial assets. Whilst uncertain, we see the opportunity in GMG’s 5GW powerbank and its capacity to see sustained earnings growth as development yields improve.

5. ResMed Inc (ASX: RMD)

• Sector: Healthcare
• Price Target: $47.86 
• Dividend yield: 0.9% 
• PE FY26: 25x 
• 2y EPSg: 9.3%

While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers. We view RMD’s overall fundamentals as sound, with profitability improving as margins expand.

6. Wisetech Global (ASX: WTC)

• Sector: Technology
• Price Target: $127.60 
• Dividend yield: 0.2% 
• PE FY26: 84.6 
• 2y EPSg: 20.7%

WTC is the leader in Global trade and logistics software, with a formidable record of growth and cashflow generation. We are attracted to WTC's strong market position and see its acquisition of E2open as a compelling opportunity to further extend the company's growth runway. WTC has an attractive valuation for its growth profile. 

7. Treasury Wine Estates (ASX: TWE)

• Sector: Consumer Staples
• Price Target: $10.10 
• Dividend yield: 5.8% 
• PE FY26: 12x 
• 2y EPSg: 9.6%

The state of the US/China economies, tariff uncertainty, weak consumer demand, health concerns, declining alcohol trends, the surprise resignation of its MD/CEO have all weighed heavily. 

TWE clearly isn’t immune to macro-economic and industry headwinds. For TWE’s share price to significantly rerate, the earnings downgrade cycle needs to end so that confidence in its outlook can return. While this will require patience, we think TWE is materially undervalued. 

The stock is trading below its real replacement value. TWE owns and operates some of the world's best vineyards, wine production assets and luxury wine brands including the iconic Penfolds brand.

8. Northern Star Resources (ASX: NST)

• Sector: Resources
• Price Target: $24.00 
• Dividend yield: 1.8% 
• PE FY26: 23x 
• 2y EPSg: -8.3%

NST looks compelling as the premier Australian focused gold producer. Upside is supported by a +2Moz growth profile by FY29, record gold prices and active capital management (dividends + buy backs). The addition of De Grey’s Hemi Project also secures additional longevity beyond the current growth profile.

Additions

Dalrymple Bay Infrastructure (ASX: DBI) 

• Sector: Infrastructure
• Price Target: $4.73 
• Div.Yield: 5.6% 
• PE FY26: 23x 
• 2y EPSg: 3.4%

DBI has previously been included in our Best Ideas list given its combination of defensive and growth attributes and appealing income yield. However, it was removed in August from our list given share price strength. We view the current price post exit of DBI’s major shareholder Brookfield in September as another attractive entry point. 

PWR Holdings (ASX: PWH) 

• Sector: Industrials
• Price Target: $2.86 
• Div.Yield: 0.0% 
• PE FY26: nm 
• 2y EPSg: nm

We view PWH as a high-quality business, underpinned by a strong balance sheet, an experienced management team, and access to large addressable markets - particularly in Aerospace & Defence - that offer significant growth potential. 

The new manufacturing facility in Australia enhances PWH’s capacity to drive growth and improve operational efficiency. While some disruption is expected in 1H26 as the company completes the final phase of its relocation, the outlook for 2H26 and beyond remains strong. 

ARB Corp. (ASX: ARB) 

• Sector: Automotive
• Price Target: $44.50 
• Div.Yield: 1.8% 
• PE FY26: 31x 
• 2y EPSg: 13.8%

High-quality, niche market leader, with a net cash balance sheet. New vehicle volumes through FY26 have turned more favourable and the domestic business should deliver an improved year with network growth benefits; launch of an eCommerce site; and a gradual improvement in consumer discretionary conditions (rate cuts). Progress in the US expansion has been incrementally more positive and remains a long-term structural growth driver for this business.

Removals

Amotiv (ASX: AOV) 

We replace AOV with ARB as our preferred Automotive exposure. While we still view the stock as offering value over the medium term it lacks near-term catalysts.