When it comes to the consumer sector, the three ASX 200 shares in this article are among the most popular for investors.
But are any of these giants in the buy zone right now? Let's see what analysts at Morgans are saying about them:
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Coles Group Ltd (ASX: COL)
The team at Morgans was relatively pleased with this supermarket giant's performance during the first quarter of FY 2026. It notes that its supermarket business is performing well, but that liquor sales were softer than expected as the major players continue to compete on price.
However, it hasn't seen enough to change its recommendation and continues to rate Coles shares as a hold with a $22.90 price target. Morgans thinks investors should wait for a better entry point before snapping up shares. It said:
COL reported a solid 1Q26 sales trading update driven by growth in its Supermarkets division. However, Liquor sales were softer than expected as consumers remain focused on value. Management indicated that Supermarkets sales growth in early 2Q26 has remained broadly in line with 1Q26, at ~4.8%. With Woolworths' (WOW) Australian Food sales up ~3.2%, COL continues to outperform, although the gap is narrowing. The liquor market remains challenging. We decrease FY26-28F underlying EBIT by 1%, mainly on the back of lower Liquor forecasts due to the ongoing softness in the market.
Our target price declines to $22.90 (from $23.45) and we maintain our HOLD rating. While Supermarkets momentum remains positive heading into the key Christmas trading period and execution continues to be strong, trading on 23x FY26F PE with a 3.6% yield, we view COL as fully valued. We would look to reassess our view should the share price weaken further.
Wesfarmers Ltd (ASX: WES)
Morgans was also pleased to see that Wesfarmers' key businesses have continued to perform positively so far in FY 2026.
But given the lofty multiples that Wesfarmers shares are trading on, the broker thinks that they are overvalued now. In light of this, it has retained its trim recommendation (one notch above sell) with a lowered price target of $79.30. It said:
On the back of the trading update, we decrease FY26-28F group EBIT by 1%, largely due to downgrades to Officeworks earnings forecasts. Our target price declines to $79.30 (from $83.20) and we maintain our TRIM rating with a 12-month forecast TSR of -4%.
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 35x FY26F PE we see the stock as overvalued in the short term.
Woolworths Group Ltd (ASX: WOW)
Finally, this supermarket giant's improved performance early in the second quarter was noted by the broker.
However, it isn't enough for Morgans to make a change to its recommendation. It continues to rate Woolworths shares as a hold with a $28.25 price target. It said:
We make minimal changes to earnings forecasts and maintain our $28.25 target price and HOLD rating. While the modest pick-up in operating performance in early 2Q26 and indications from customer surveys that cost-of-living pressures may be easing are encouraging, the group's performance during the key upcoming festive period will be critical.
The impact on margins from the increased investment will also be important to monitor. Trading on 21.5x FY26F PE with a 3.5% yield, we think the stock remains fully valued and prefer to wait for further evidence of improvement before reassessing our view.
