There are a lot of ASX shares to choose from on the Australian share market.
But not all are necessarily buys.
So, let's see what Morgans is saying about three very popular shares this month:
Image source: Getty Images
Coles Group Ltd (ASX: COL)
Morgans has been looking at supermarket giant Coles and sees an opportunity for investors after recent weakness in its share price.
While the broker wasn't overly impressed with its performance in the first half, it has seen enough to upgrade its shares to an accumulate rating and $22.90 price target. It explains :
While COL's 1H26 result was slightly softer than expected, execution remains strong in the core Supermarkets division. […] Despite the slight downgrade to earnings, our target price remains unchanged at $22.90 due to a roll-forward of our valuation to FY27 forecasts. With a 12-month forecast TSR of 15%, we upgrade our rating to ACCUMULATE (from HOLD).
In our view, COL continues to perform well with key Supermarkets metrics such as customer scores, sales growth, cost discipline and store execution remaining solid. We hence view the recent share price pullback as an attractive entry point.
Endeavour Group Ltd (ASX: EDV)
This drinks giant is going through a tough period. And while Morgans has seen a few positives, it thinks investors should keep their powder dry until at least its investor day next month.
The broker has put a hold rating and $3.65 price target on Endeavour's shares. It said:
There were no major surprises in EDV's 1H26 result following the company's trading update in January. While EDV continues to work on its refreshed strategy with further details to be provided at an investor day on 27 May, management confirmed that the combined Retail and Hotels portfolio will be retained. Management also noted that they will continue investing in Dan Murphy's to restore its price leadership, while accelerating hotel renewals and electronic gaming machine (EGM) replacements. We decrease FY26-28F underlying EBIT by between 0-1%. Our target price falls to $3.65 (from $3.70) and we retain our HOLD rating.
Rio Tinto Ltd (ASX: RIO)
Finally, Rio Tinto shares are fairly valued according to Morgans following a recent pullback.
This has seen the broker put a hold rating and $147.00 price target on the mining giant's shares. While it is a fan of the company, it just isn't cheap enough to call it a buy yet. It explains:
We upgrade RIO from TRIM to HOLD with a revised target price of A$147 (prior A$146). The recent share price pullback closes the valuation stretch, while a lift in our medium-term iron ore assumption from US$80/t to US$85/t provides a firmer earnings floor. RIO remains a top-tier diversified miner. Not cheap enough for a BUY, but the pullback removes the overshoot that justified TRIM. Iron ore earnings platform, copper and aluminium leverage, and lithium optionality, RIO represents an attractive mix with good execution in the Pilbara and Oyu Tolgoi.
