Morphing Enemies
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You can Morph Enemies as long as you have the Morph materia, you can usually morph lots of things but you usually only get maybe a Potion, Hi-Potion, X-Potion .ECT. but with a thew enemies listed below give you better Items. You may also want to check out the Battle Square and Morph a thew enemies there and get some good armor.

Enemies Name
Where to find this Enemy
When Morph
Description of Enemy
Cactuar
Desert Southwest of Cosmo Canyon
Tetra Elemental
Cactus (Use STOP magic)
Master Tonberry
The Crater (Final Dungeon)
Ribbon
Has a Star over its head (Use STOP magic)
Bagnarada
Mt. Corel
Guard Source
Machinery
Heavy Tank
Gongaga
Power Source
Looks like an elephant
Screamer
Nibel Mts.
Power Source
A enemy with a ball and chain
Heli Gunner
Shinra HQ
AB Cannon
Helicopter
Dragon Rider
Whirlwind Maze
Mind Source
Dragon
Hundred Gunner
Shinra HQ
Aux Artillery
Heavy Powered Tank
Spiral
Southern Islands
Guard Source
Lizards (Blue)
Serpant
Crashed Gelnika
Source
Looks like I forgot?
Unknown
Crashed Gelnika
Source
Looks like wraith
Unknown2
Crashed Gelnika
Source
Looks like wraith
Unknown3
Crashed Gelnika
Source
Looks like wraith

Morph Enemies Easily
For an easy way to morph enemies, have W-Magic Materia, Gravity Materia + "All" Materia, & Morph Materia. Have someone else cast Reflect on the party, then have the person with W-Magic use Demi 3 on your party twice. It will reflect & hit the enemy six times without killing it, but will greatly reduce it's HP's. At this point, you can easily Morph it.