Buy, hold, sell: Coles, Liontown, and ResMed shares

Morgans has been busy running the rule over a number of updates this month.

Here’s what it is saying about these popular ASX shares after reviewing their latest numbers:

Coles Group Ltd (ASX: COL)

Morgans was a touch disappointed with this supermarket giant’s performance in the third quarter.

While pleased with its supermarkets business, it highlights that Coles’ liquor business let the company down.

In response, the broker has retained its accumulate rating on Coles shares with an improved price target of $24.60. It said:

COL’s 3Q26 sales update was slightly softer than expected, with another solid performance in Supermarkets offset by ongoing challenging conditions in Liquor. Supermarkets continues to gain market share from discounters and independents, with strong volume growth indicating the value proposition continues to resonate with customers. We reduce FY26-28F underlying EBIT by 0-1%, largely reflecting a more difficult outlook for Liquor.

Despite the minor reduction in earnings, our target price increases to $24.60 (from $22.90), reflecting a higher valuation multiple. In our view, COL’s defensive earnings profile and strong execution warrant a premium amid macro uncertainty and Middle East geopolitical risks. In addition, the core Supermarkets division should benefit from increased at-home consumption and continued demand for own-brand products as customers become more value-conscious. ACCUMULATE rating maintained.

Liontown Ltd (ASX: LTR)

The broker wasn’t impressed with this lithium miner’s performance in the third quarter. It described the quarter as weak due to lower recoveries.

And while its outlook is improving, this hasn’t been enough to stop Morgans downgrading Liontown shares to a trim rating with a $2.20 price target. Morgans explains:

Weak 3Q26 result was driven by lower recoveries, though ramp-up is progressing well and cash flow turned positive. Outlook is improving with recoveries and spodumene prices lifting. Move to a TRIM with a A$2.20ps TP on valuation but the outlook remains positive.

ResMed Inc. (ASX: RMD)

Morgans was pleased with ResMed’s third-quarter update, highlighting further double-digit growth and margin expansion.

In light of this, the broker has retained its buy rating on ResMed shares with a trimmed price target of $41.72.

Commenting on the company, the broker said:

RMD’s 3Q result was solid, with double-digit revenue and earnings growth, further margin expansion and strong cash flow generation. Sleep and respiratory demand remains robust, with continued mask strength and ROW re-acceleration, while SaaS remains stable but subdued. Notably, GM expansion continues, underpinned via manufacturing, procurement and logistics efficiencies.

And while macro uncertainties remain and investors seemingly focus on variability in US device growth while pondering if the Noctrix acquisition is merely a ‘plug’ to a slowing core, we view these concerns as myopic and manageable. We adjust FY26-28 forecasts modesty with our target price declining to A$41.72, mainly on house changes to FX and risk-free rate. BUY.

The post Buy, hold, sell: Coles, Liontown, and ResMed shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in 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.