What are analysts saying about CAR, Wesfarmers, and Xero shares?

Analysts have been busy running the rule over a number of blue-chip ASX 200 shares this week.

Let’s see what they are saying about three popular names, courtesy of The Bull. Here’s what you need to know:

CAR Group Limited (ASX: CAR)

The team at Morgans thinks this auto listings company could be worth considering. The broker has named the carsales.com.au owner as a buy this week.

It feels that recent share price weakness has created an attractive entry point for long term investors. The broker said:

Car Group is Australia’s leading online automotive marketplace, benefiting from a strong network and steady demand for new and used cars. Its diversified revenue streams, including listings, data services and finance, provide consistent growth and help cushion softer economic periods. Recent share price weakness has improved the valuation, while the company’s dominant position and scalable marketplace model support attractive long term returns. We view the current share price as an attractive entry point for long term investors.

Wesfarmers Ltd (ASX: WES)

Morgans isn’t as positive on the investment opportunity with this one. It has named the Bunnings and Kmart owner as a sell this week.

While the broker is a fan of the company, it isn’t a fan of its valuation and feels that the risk-reward profile is unfavourable. It explains:

This industrial conglomerate is a well managed and diversified group, but market pricing has become demanding after a strong run. Bunnings and Kmart continue to perform well, but the retail environment is softening. The current valuation appears to assume sustained strength across all divisions, leaving little margin for error should consumer spending weaken or emerging businesses take longer to deliver meaningful returns. While Wesfarmers remains a high quality operator, its risk‑reward profile looks unfavourable relative to other opportunities, supporting a cautious sell for now.

Xero Ltd (ASX: XRO)

Over at Fairmont Equities, its analysts have named this cloud accounting platform provider’s shares as a sell this week.

While it thinks Xero is a great business, it notes that it has been caught up in a major sector rotation. And until its shares find a bottom, it is staying clear of them. It explains:

Xero is a global accounting software provider. XRO is a great business, but it’s caught up in a major sector rotation, where investor funds have been moving out of technology stocks with high price/earnings ratios and into hard assets. The downtrend in the share price indicates sellers were recently still in control and any price bounces are struggling to gain traction. We believe the shares will remain under pressure until the market stops trying to pick the bottom. The shares have fallen from $194.21 on June 24, 2025 to trade at $81.525 on February 26, 2026.

The post What are analysts saying about CAR, Wesfarmers, and Xero shares? appeared first on The Motley Fool Australia.

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