It’s been a wobbly first half of 2026, with Australian sharemarkets swinging sharply between highs and lows.

During periods of uncertainty, defensive ASX shares are typically thrust into the spotlight as investors rotate towards stable assets.

But after recent price gains, are these major ASX blue chips still a buy?

Here’s what the experts think.

Coles Group Ltd (ASX: COL)

Coles shares have suffered peaks and troughs throughout the first few months of 2026. The shares have traded anywhere between a low of $20.35 a piece and an all-time high of $24.41 in late-June. Overall though, the shares are up around 6% for the year-to-date. 

It looks like Coles shares hit a couple of headwinds this month. After spiking to a historic high, the shares weakened over the past couple of weeks, thanks to a combination of company-specific setbacks. 

These include concerns about a potential acquisition of Petbarn owner Greencross, and news that the Australian Competition and Consumer Commission (ACCC) has ruled against the supermarket giant’s proposed acquisition of a leasehold interest in Kalgoorlie-Boulder, Western Australia. 

But brokers are still bullish about the outlook for Coles shares. TradingView data shows that the majority (nine out of 16) of analysts have a buy or strong buy rating. Another five rate the supermarket stock as a hold and another two have a sell or strong sell rating.

The average $23.65 target price implies a potential 5% upside at the time of writing. 

Woolworths Group Ltd (ASX: WOW)

Coles’ direct rival, Woolworths has fared much better this year. For the year-to-date the supermarket giant’s share price is over 33% higher, and it has mostly trended upwards rather than suffering a series of sharp peaks and falls.

It looks like the steady increase has mostly been driven by investor confidence that the retailer’s earnings are recovering after a difficult period in late-2025.

Woolworths posted a stronger-than-expected first half result in February and is actively pursuing cost cutting initiatives to help support margins and earnings over time. 

But after the incredible run,  it looks like Woolworths shares have now reached their peak and are trading around fair value. 

TradingView data shows that eight out of 17 analysts have a hold rating on the supermarket stock. Another five rate the shares as a buy or strong buy, and four rate Woolworths shares as a strong sell.

The average $36.33 target price now implies a potential 8% downside over the next 12 months, at the time of writing.

Wesfarmers Ltd (ASX: WES)

Wesfarmers shares had a difficult start to the year and slumped to an annual low in mid-May. But the retail conglomerate’s shares quickly rebounded and have now recovered around 29% from that point to the close of the ASX on Thursday afternoon. For the year-to-date, Wesfarmers shares are now up around 12%.

The business benefited from an uptick in consumer spending and news that interest rates could start falling. Wesfarmers’ sheer scale and market dominance across several retail sectors has also helped reinforce the company’s competitive advantage.

The company has also been actively expanding. The company has opened five Anko stores in the Philippines and plans to launch another five by the end of FY27. Locally, its Bunnings brand continues to expand into new categories, including pet products and automotive accessories. And also its Kmart segment is testing larger K Home stores in an attempt to break into the furniture retail market.

But the concern now is that after a huge rebound, Wesfarmers shares have become too expensive.

TradingView data shows half (seven out of 14) of analysts have a hold rating on the stock. Another six rate Wesfarmers shares as a strong sell. Only one broker now holds a buy rating.

The average $77.39 target price implies a potential 16% downside, at the time of writing. 

The post Buy, hold, sell: Coles, Woolworths, Wesfarmers shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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 Wesfarmers. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Bell Potter has released updated guidance on Harvey Norman Holdings Ltd (ASX: HVN) and REA Group Ltd (ASX: REA) shares. 

The broker sees one as a clear buy with healthy upside, while the other is listed as a sell. 

Here is the latest on these retailers.

REA Group not out of the woods yet 

REA Group shares jumped 6% yesterday, however Bell Potter appears unconvinced of a long term rebound. 

Its share price remains down almost 33% in the last year. 

Bell Potter said REA’s final listings data point for FY26 capped off a strong final quarter for volumes. 

National new listings grew 13% for the month of June, supported by 3% and 9% growth in key Sydney and Melbourne markets respectively. Brisbane and Perth outperformed at 22% and 18%. The result lifts our expected FY26 listings to broadly flat from -1.3% previously, with R3m listings performance also strong at 11%.

Bell Potter has increased its price target  to $137 due to earnings estimate revisions and rolling the valuation forward to increasingly include FY28. However the broker maintains a sell rating for several reasons: 

• Higher expected RBA cash rates are forecast to weaken borrowing demand, reducing activity in the housing market.

• Recent government budget measures are expected to discourage property investment (particularly investors), weighing on house prices and listing volumes despite some support from owner-occupiers.
• Lower dwelling prices and fewer listings are expected to outweigh REA’s pricing (“buy yield”) benefits. 

Bell Potter’s updated target is roughly 14% below current levels. 

Healthy upside for Harvey Norman 

Harvey Norman shares have fallen 32% year to date, however Bell Potter is confident it can recover. 

Bell Potter said Harvey Norman concluded a challenging 2H26. 

While our FY26e estimates remain unchanged, we apply some conservatism to our forward estimates within our revenue assumptions in HVN’s Franchising and Retail divisions across all geographies. However, our estimates for the Property division remain largely unchanged as we view HVN’s prime position in Australia’s large format retail market given the sub-asset class continues to see highest rental growth in an under-supplied market.

The broker has slightly lowered its price target to $6.00 (previously $6.70) however has maintained its buy recommendation. 

From current levels, this indicates approximately 26% upside. 

We view FY27 as the cyclical low point for most retailers and see more leading indicators reflecting a tougher year led by the weak Consumer Confidence on a major household item in HVN’s key markets.

The post Buy, hold, sell: Harvey Norman and REA Group shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) gave back its early gains to finish the day lower. The benchmark index edged a fraction lower to 8,840.7 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to fall

The Australian share market looks set to fall on Friday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 26 points or 0.3% lower this morning. In late trade on Wall Street, the Dow Jones is down 0.3%, the S&P 500 is down 0.6%, and the Nasdaq is 1.5% lower.

Oil prices ease

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices pulled back overnight. According to Bloomberg, the WTI crude oil price is down 0.7% to US$79.05 a barrel and the Brent crude oil price is down 0.75% to US$84.32 a barrel. This is despite rising tensions between the US and Iran.

Buy Netwealth shares

Bell Potter thinks Netwealth Group Ltd (ASX: NWL) shares are good value. In response to the investment platform provider’s quarterly update, the broker has retained its buy rating and $30.00 price target. It said: “Our Buy rating and target price are unchanged. NWL remains on track to deliver free cash flow margins in-line with 5Y historical standards, balancing growth investments and profitability. Market share cadence and the current multiple make this attractive.”

Gold price sinks

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a poor finish to the week after the gold price sank overnight. According to CNBC, the gold futures price is down 1.8% to US$3,979 an ounce. Increasing US interest rate hike bets are weighing on the precious metal.

Buy Harvey Norman shares

Bell Potter sees a lot of value in Harvey Norman Holdings Ltd (ASX: HVN) shares. This morning, the broker has retained its buy rating on the retail giant’s shares with a trimmed price target of $6.00. This implies potential upside of 26%. In addition, a dividend yield greater than 6% is expected in FY 2027. It said: “While our views on FY27e sees challenging conditions for retailers with a recovery weighted to 2H, on our revised estimates HVN continues to trade at a 1-year forward P/E of ~13x (as per BPe) which appears attractive.”

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

More reading

• Brokers name 2 ASX dividend shares to buy with 4% to 7% yields
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• Netwealth delivers record FUA in June 2026 quarter

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