There are a lot of options for Aussie investors to choose from on the ASX.
To narrow things down, let's take a look at three popular ASX 200 shares and see if the team at Morgans rates them as buys, holds, or sells.
Here's what the broker is saying about them:
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Domino's Pizza Enterprises Ltd (ASX: DMP)
This beaten down pizza chain operator's shares could be in the buy zone for patient investors according to Morgans. It recently put a buy rating and $18.00 price target on its shares.
While the broker was disappointed that the positive catalysts it was looking for didn't emerge with its FY 2025 results, it does see reasons to be upbeat. It explains:
As expected, the FY25 result was largely in line. We view the large negative share price reaction today as fair given the weak trading update, increase in ND/EBITDA, lack of disclosure around the quantum of cost out, and change in messaging since July around how cost out will now not directly flow to near term profitability. It will instead be invested in marketing and franchisee support to drive long-term value.
The key positive takeaways were that management is working fast to take "significant" cost out of the business, Europe saw strong 2H EBIT improvement driven by margin expansion and SSS growth and Asia SSS, whilst still negative, continues to improve and is likely approaching a positive inflection. Whilst the positive catalysts we were looking for did not eventuate, which was disappointing, we still see long-term value on offer, albeit patience will be required.
Qantas Airways Ltd (ASX: QAN)
Morgans was pleased with the Flying Kangaroo's performance in FY 2025. It notes that it delivered a result in line with expectations, with strong cash flow generation and low net debt. It was also pleased to see that FY 2026 looks set to be another strong year.
However, for valuation reasons, it only rates Qantas as a hold with a $12.80 price target. It said:
The FY25 result was in line with expectations. Strong growth was delivered during the year, again largely driven by Jetstar. Cashflow generation was strong and net debt remains toward the bottom end of its target range. Like previous periods, QAN announced A$400m of shareholder returns with a 16.5cps final dividend and a 9.9cps special dividend which was in line with our forecast.
Outlook commentary implies another year of strong growth in FY26 (largely in line with our previous forecast and consensus), driven by capacity growth and RASK improvement underpinned by ongoing strength in the demand environment. We forecast EBIT growth of +9% and NPBT growth of +8%. We continue to look for a more attractive entry point. Maintain HOLD.
Wesfarmers Ltd (ASX: WES)
Finally, the Bunnings and Kmart owner's shares have been strong performers over the past 12 months.
Unfortunately, because of this and despite its strong performance in FY 2025 and solid start to FY 2026, Morgans sees its shares are slightly overvalued at current levels. As a result, it has a trim rating and $83.20 price target on them. It said:
We make minimal changes to earnings forecasts but lift our target price to $83.20 (from $75.80). This reflects another solid result, demonstrating strong execution by management and early signs of improvement in consumer sentiment, which should support a more positive outlook for trading conditions. With a forecast 12-month TSR of -6%, we maintain our TRIM rating.
While we continue to view WES as a core long-term portfolio holding with a diversified group of well-known retail and industrial brands, a healthy balance sheet, and an experienced leadership team with a strong track record of growth, trading on 36.9x FY26F PE we see the stock as overvalued in the short term.
