Broker reveals ratings on 4 ASX 200 sector leaders

Prefer ASX 200 large-cap stocks? Here are some new ratings and price targets for four sector leaders.

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Key points

  • Morgans rates Woodside Energy as a buy with a $30.50 target, citing strong growth and execution in major projects.
  • Wesfarmers is rated trim with a target of $79.30, seen as overvalued despite a solid brand and track record.
  • Goodman Group gets an accumulate rating with a $36.30 target, focusing on data centre opportunities amid rising capital demands.

S&P/ASX 200 Index (ASX: XJO) shares closed higher on Thursday, up 0.27% to 8,618.4 points.

There are 11 market sectors comprising the ASX 200.

Let's take a look at some new ratings and 12-month price targets for four sector leaders.

ASX 200 sector leaders: Buy, hold, or sell?

Here's what the analysts at Morgans think of these four sector leaders.

1. Woodside Energy Group Ltd (ASX: WDS)

Oil & gas giant Woodside is the largest ASX 200 energy share with a market cap of $48 billion.

The Woodside share price closed at $25.55, up 0.59% yesterday and up 2.4% in the year to date.

Morgans has a buy rating on Woodside shares with a price target of $30.50.

The broker recently commented:

Growth to 2032 with net operating cash flow guided to ~US$9bn (+6% CAGR) with a pathway to ~50% higher dividends.

Execution remains best-in-class: Scarborough, Sangomar and Trion all tracking on time and budget. Louisiana progressing under de-risked funding structure.

2. Wesfarmers Ltd (ASX: WES)

Wesfarmers is the largest ASX 200 consumer discretionary share with a market cap of $93 billion.

The Wesfarmers share price closed at $82.01, up 0.35% yesterday and up 14.8% in 2025.

Morgans has a trim rating on Wesfarmers with a price target of $79.30 per share.

In a note, the broker explained:

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.

3. Woolworths Group Ltd (ASX: WOW)

Woolworths is the largest ASX 200 consumer staples share with a market cap of $93 billion.

The Woolworths share price closed at $29.39, down 0.1% yesterday and down 3.5% in the year to date.

Morgans has a hold rating on Woolworths with a price target of $28.25.

The broker commented:

… we think the stock remains fully valued and prefer to wait for further evidence of improvement before reassessing our view.

4. Goodman Group (ASX: GMG)

Goodman Group is largest ASX 200 property share with a market cap of $60 billion.

The Goodman Group share price closed at $29.36, down 2.7% yesterday and down 18.5% in 2025.

Morgans has an accumulate rating on Goodman Group with a share price target of $36.30.

The broker says:

GMG continues to reiterate the immense data centre opportunity ahead – 5GW of potential capacity across key global gateway cities.

However, the longer time to develop these assets is seeing capital intensity increase as data centres form a larger proportion of work-in-progress (WIP).

… we attribute much of the recent share price decline to the shifting narrative around the outlook for hyperscale capex.

Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goodman Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Woolworths Group. The Motley Fool Australia has recommended Goodman Group and Wesfarmers. 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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