The Australian share market is home to plenty of quality companies, but not all of them are necessarily worth investing in.
So, to save you from having to research and find which ASX 200 shares are buys and which are not, I have picked out three that Morgans has recently recommended. Here's what it is bullish on:
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Collins Foods Ltd (ASX: CKF)
This KFC-focused quick service restaurant operator could be an ASX 200 share to buy according to the broker. It believes the company is positioned to deliver a strong result in FY 2026 after a stellar start to the year. It said:
CKF's AGM trading update was stronger than expected, with improving sales growth seen across all regions. FY26 guidance was reiterated for low to mid-teens underlying NPAT growth. The stronger than expected 1H26 trading update confirms that guidance is likely conservative. It also includes Taco Bell losses (planned exit in FY26). Improving sales growth is being delivered through product innovation and strong execution. With a domestic consumer recovery still largely yet to play out, we see further upside from here. Maintain BUY.
Morgans has a buy rating and $12.20 price target on its shares.
NextDC Ltd (ASX: NXT)
Another ASX 200 share that Morgans is recommending to clients is data centre operator NextDC.
It was pleased with its FY 2025 results and guidance and believes they demonstrate just how positive its growth outlook is. It explains:
NXT's FY25 result in line with expectations as was FY26, but FY27 was higher. Highlights of the result include: 1) a slide which finally shows investors the revenue ramp-up profile of NXT's contracted MWs (it's faster than anticipated so upgrades forecasts); 2) the pipeline is larger than ever (~2 GWs in NSW alone); and 3) setting up a partnership in Japan and Joint Ventures for S4/S7 will lower NXT's equity requirements (relative to 100% self-funding). While none of these items are totally new, collectively they represent good reasons for the share price to rally strongly. We lift FY26F EBITDA by 2% and FY27 by 23%. We also lift our capex forecasts. The net result is our target price lifts to $19.00 per share from $18.80.
As mentioned above, the broker has a buy rating and $19.00 price target on NextDC's shares.
South32 Ltd (ASX: S32)
Finally, Morgans is positive on this diversified miner and sees it as an ASX 200 share to buy now.
Although it wasn't blown away with its result, it has seen enough to continue recommending the miner. It said:
FY25 result steady, but FY26 guidance reset at Mozal (C&M risk) and Cannington (lower throughput, higher costs) clouds near-term earnings. Hermosa build year pushes group capex to US$1.4bn in FY26, keeping FCF tight despite trimmed sustaining spend. Sierra Gorda copper volumes up 20%, but limited near-term catalysts and consensus downgrades pressure weigh on sentiment. Dividend of US 2.6cps; US$144m remains in buyback program. Maintain BUY with reduced target price of A$3.55 (was A$4.10).
Morgans has a buy rating and $3.50 price target on its shares.
