4 ASX shares scoring upgrades in the final week of earnings season

S&P/ASX 200 Index (ASX: XJO) shares are 0.4% higher at 9,070.7 points on the second last day of earnings season.

Brokers have been busily reviewing earnings results and updating their ratings and 12-month price targets accordingly.

Here is a sample of ASX shares that have scored upgraded ratings, and why.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is $2.68, up 2.2% today and down 13% over 12 months.

Sigma Healthcare released its FY26 results this week.

Morgans upgraded the ASX 200 healthcare share from accumulate to buy today.

The broker shaved its 12-month price target from $3.30 to $3.19.

This implies a potential 12% upside ahead.

Morgans said:

SIG has posted its FY26 result which was in line with our and consensus forecasts. Highlights included EBIT growth of >20%, Australia CW LFL sales were 13.4% (1H 15.0%; 2H: 11.8%), International CW LFL sales of 12.2%.

We note the slight moderation in 2H in Australia was driven by a later start to the cold and flu season and cycling a very strong pcp.

SIG is targeting double-digit revenue and earnings growth for FY27.

The market has marked the shares down 7% post the FY26 results and possible sell down by some of the founders (up to 4.7% of issued capital).

We believe the share price fall is overdone and provides us with an opportunity to move our recommendation to BUY (from ACCUMULATE).

The Adairs share price is $1.41, down 2.1% today and down 49% over 12 months.

Adairs released its FY26 report this week.

Morgans upgraded the ASX consumer discretionary share to a buy rating.

The broker has a 12-month price target of $1.80, suggesting 27% upside from here.

Morgans said:

ADH reported FY26 underlying EBIT of $55.0m which was down 0.4% on the pcp and within guidance range of $53.5-55.5m.

Adairs and Mocka delivered strong EBIT growth (+14.9%/ +32.1%).

Focus on Furniture remains a drag with EBIT down 67.6% to $3.8m (~$2.0m loss in 2H) with management now guiding a two-year turnaround.

Given the underperformance, ADH recognised a non-cash impairment charge of $63.5m ($56.7m post tax).

We see the core Adairs banner set to deliver strong growth in FY27 driven by GM improvement and cost control, along with solid growth in Mocka offsetting weakness in Focus.

Given the share price weakness, we have upgraded to a BUY recommendation (from ACCUMULATE).

The Polynovo share price is $1.04, up 1% today and down 24% over 12 months.

Polynovo released its FY26 earnings this week.

Bell Potter upgraded Polynovo shares to a buy rating today.

The broker increased its 12-month price target from $1 to $1.22.

This suggest a potential 18% upside ahead.

Bell Potter said:

The key concerns underpinning our July downgrade have eased sufficiently to restore confidence in the earnings outlook.

US trading improved into year-end and July, gross margin pressures appear largely temporary, and better-than-expected cost control
provides greater operating leverage as revenue scales.

We also see incremental upside from SynPath, with management now outlining a clearer strategy for entry into the US outpatient market, which is not yet reflected in our forecasts.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is $21.60, up 0.4% today and down 38% over 12 months.

Netwealth released its FY26 earnings this week.

Morgans raised the ASX 200 financial share to a buy call with a $27.50 target.

This implies potential gains of 28% ahead for Netwealth shares.

Morgans said:

NWL reported FY26 Revenue +21%; EBITDA +18%; and NPAT +16% on pcp, which was largely in line with MorgF / Consensus expectations.

Whilst flows momentum 1Q27 to date has seen a slower start, NWL reaffirmed its FY27 Flows guidance of $18-20bn, with the cadence of flows from MS and other sources expected to step up over the course of the year.