Buy, hold, sell: Endeavour, ResMed, and Westpac shares

Let's see what analysts are saying about these big names.

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Key points

  • Endeavour Group is given a hold rating by Morgans due to weaker-than-expected sales and limited near-term upside, despite some positive retail sales indicators.
  • ResMed Inc. is recommended for accumulation as it shows strong revenue and margin growth, driven by high-margin product releases and advancements in AI and digital health.
  • Westpac Banking Corp is a sell according to Morgans, with its shares seen as overvalued despite solid business lending growth, suggesting investors reduce their exposure.

There are a lot of ASX 200 blue chip shares to choose from on the Australian share market.

To narrow things down, let's see what analysts at Morgans are saying about three popular options. Here's what you need to know:

Endeavour Group Ltd (ASX: EDV)

Morgans was disappointed with this drinks giant's first quarter update. It notes that its sales were weaker than expected overall. However, signs of improvement could bode well for the future.

But for now, the broker is sticking with its holding recommendation and trimmed price target of $3.70. Commenting on the Dan Murphy's owner, the broker said:

Our target price decreases to $3.70 (from $4.15) and we maintain our HOLD rating. While there are some encouraging signs in Retail sales heading into the key Christmas trading period, the overall liquor market remains subdued, with consumers continuing to prioritise value. With new CEO Jayne Hrdlicka not commencing her role full-time until January 2026 and an updated strategy not expected until April/May 2026, we see limited upside in EDV in the near term.

ResMed Inc. (ASX: RMD)

Another ASX 200 blue chip share the broker has been looking at is sleep disorder treatment company ResMed.

Morgans was pleased with ResMed's performance during the first quarter. It notes that it continues to deliver strong revenue growth and margin expansion.

In response, the broker has put an accumulate rating and $47.04 price target on its shares. It commented:

We continue to view fundamentals as sound and the company in a strong position to support future earnings growth, with the upper end of FY26 GPM guidance (61-63%) likely achievable given a strong cadence of new high-margin product releases, an expanding US supply chain, along with continued investment in AI and digital health to drive awareness and increase patient diagnosis. FY26-28 earnings change negligibly, with our target price modestly declining to $47.04. ACCUMULATE.

Westpac Banking Corp (ASX: WBC)

Morgans remains bearish on this banking giant following the release of its full year results.

Although it felt the result was solid, it thinks its shares are overvalued at current levels and has retained its sell rating with a slightly improved price target of $31.30. It said:

In the 2H25 result we appreciated the strong business lending growth, resilient asset quality, relatively stable underlying NIM, and regulatory capital strength. Cost investment is being made to deliver long-term revenue and cost gains. With the stock trading around all-time highs but with limited earnings growth over coming years we continue to recommend clients SELL overweight positions.

Motley Fool contributor James Mickleboro has positions in Endeavour Group and ResMed. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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