S&P/ASX 200 Index (ASX: XJO) shares are 0.5% lower at 8.744 points on Thursday.

Meanwhile, brokers have increased their ratings on several ASX shares this week.

Let’s take a look.

Santos Ltd (ASX: STO)

The Santos share price is $7.64, up 1.8% today.

This ASX 200 energy share has fallen 1% over 12 months.

Morgan Stanley upgraded Santos shares to a buy rating this week.

The broker raised its 12-month price target from $7.50 to $7.67.

This suggests the stock is fully priced already.

Woodside Energy Group Ltd (ASX: WDS)

The Woodside share price is $29.42, up 1.9% today.

Stock in the market’s largest oil and gas producer has risen 23% over 12 months.

Morgan Stanley upgraded Woodside shares to a hold rating on Monday.

The broker has a target price of $28, suggesting a 5% downside ahead.

IGO Ltd (ASX: IGO)

The IGO share price is $6.73, down 3.2% today.

This ASX 200 mining share was among the top 5 lithium stocks for capital growth over FY26.

The IGO share price ascended 77% to close out the year at $7.37 on 30 June.

Morgan Stanley upgraded IGO to a hold rating this week.

The broker raised its 12-month target from $6.85 to $6.95.

This suggests a potential 2% upside ahead.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price is $23.46, down 0.2% today.

This ASX 200 financial share has tumbled 33% over 12 months.

Ord Minnett upgraded Netwealth shares to a buy rating yesterday.

The broker increased its 12-month target from $25 to $26.

This suggests a potential 10% upside ahead.

HomeCo Daily Needs Ltd (ASX: HDN)

The HomeCo Daily Needs REIT share price is $1.27, up 0.2% today.

This ASX real estate investment trust (REIT) has risen 2.2% over 12 months.

Morgans upgraded the ASX REIT to a buy rating with a $1.36 target on Wednesday.

This implies potential capital growth of 7% over the next year.

Waypoint REIT (ASX: WPR)

The Waypoint REIT share price is $2.42, down 0.2% today.

This ASX real estate share has fallen 1% over 12 months.

Morgans upgraded Waypoint REIT shares to a buy with a $2.50 target yesterday.

This implies a potential 3% upside ahead.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is $17.98, down 1.6% today.

This ASX 200 copper share has rocketed 61% over 12 months amid a rising copper price.

Morgan Stanley upgraded Sandfire shares to a hold rating this week.

The broker increased its 12-month price target from $16 to $17.35.

This suggests a potential 4% downside ahead.

The post 7 ASX shares catching broker upgrades this week appeared first on The Motley Fool Australia.

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Wesfarmers Ltd (ASX: WES) shares continue to flex their muscles.

The retail heavyweight gained a modest 0.3% to $90.48 during Thursday afternoon trade, but don’t let that fool you. The stock is still edging closer to its all-time high of around $95.

It’s been a cracking run. Wesfarmers shares have climbed roughly 12% over the past month and are now up 11% in 2026. That’s comfortably ahead of the S&P/ASX 200 Index (ASX: XJO), which has gained around 1% over the past month and is barely positive for the year.

The obvious question now is whether the market has got carried away, or whether Wesfarmers still has room to climb.

Why are Wesfarmers shares rallying?

A few things have fallen into place for Wesfarmers shares. For starters, Australian consumers have proved tougher than many expected. Household spending rose 1.3% last month, comfortably beating forecasts and easing fears that higher living costs were crushing retail demand.

Interest rate expectations have also helped. Markets increasingly expect the Reserve Bank of Australia to keep rates on hold at its next meeting, reducing concerns that households could face another squeeze from higher mortgage repayments.

That’s been music to the ears of retail investors.

Retail royalty

Wesfarmers isn’t just another retailer. It owns some of Australia’s best-known brands, including Bunnings, Kmart Australia, and Officeworks.

Bunnings remains the undisputed king of home improvement, while Kmart has quietly become one of the country’s most successful discount retailers. Both businesses thrive by offering value, scale, and convenience.

Ironically, if consumer spending does soften during FY27, Wesfarmers shares could actually benefit as shoppers trade down and hunt for bargains.

Being the low-cost leader isn’t a bad place to be.

There’s more than retail under the bonnet

Wesfarmers also continues to find new ways to grow. Its Anko expansion is gathering momentum, with stores opening across the Philippines and more planned before the end of FY27.

Meanwhile, Bunnings keeps moving into new product categories, including pet supplies and automotive accessories. Kmart is experimenting with larger K Home stores, potentially opening another growth avenue beyond its traditional discount retail business.

The company also maintains exposure to lithium through its mining interests, giving shareholders another potential long-term earnings driver if battery materials regain momentum.

The secret sauce

One reason Wesfarmers shares command such a premium valuation is simple: the company generates outstanding returns. During the first half of FY26, Bunnings produced a return on capital approaching 71%, while Kmart wasn’t far behind at almost 70%.

Across the broader business, return on equity reached 32.7%.

Those are elite numbers. Very few mature ASX companies consistently generate that level of profitability while continuing to reinvest for future growth.

What do brokers think?

Here’s where things get interesting.

According to TradingView data, analysts are far less enthusiastic than the market.

Of the 14 brokers covering Wesfarmers shares, seven recommend holding the shares, six rate them as either a sell or strong sell, and only one has a buy recommendation.

The average 12-month price target sits at $76.91, implying a downside of around 15% from current levels.

Even the most optimistic analyst doesn’t expect the shares to move meaningfully above today’s price, while the most bearish forecast suggests downside of roughly 28%.

Foolish takeaway

After a stellar run, investors appear willing to pay almost any price for Wesfarmers’ strengths. Brokers, however, aren’t so convinced.

For long-term shareholders, Wesfarmers shares still look like they’re worth owning. New investors may simply need to decide whether they’re comfortable paying a premium for one of the ASX’s best operators.

The post Wesfarmers shares are closing in on record highs. Buy, hold or sell? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor Marc Van Dinther 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 S&P/ASX 200 Index (ASX: XJO) is back in the red on Thursday as investors react to another jump in oil prices.

At the time of writing, the ASX 200 is down 0.53% to 8,738 points.

The move has the benchmark index on track for its third straight decline, with weakness across the big miners and banks weighing on the market.

At the latest check, 113 stocks are lower, 80 are higher, and 7 are unchanged.

Here’s a closer look at today’s fall.

Oil is back on the agenda

Oil prices are giving investors something else to worry about today.

According to Trading Economics, Brent crude rose to around US$78.80 a barrel after fresh US strikes on Iran, while WTI crude was trading near US$74.26 a barrel.

The move is helping parts of the energy sector, but it is not doing much for the broader mood across the ASX 200.

With inflation, rates, and global growth already weighing on the market, higher oil prices have only added to the pressure.

Miners and banks weigh on the market

Most of the damage is coming from the big miners and banks.

BHP Group Ltd (ASX: BHP) shares are down 1.93% to $56.40, while Rio Tinto Ltd (ASX: RIO) has fallen 3.98% to $157.33.

The major banks are also softer.

Commonwealth Bank of Australia (ASX: CBA) shares are down 0.42% to $167.47, National Australia Bank Ltd (ASX: NAB) has slipped 1.21% to $39.11, and ANZ Group Holdings Ltd (ASX: ANZ) is 1.23% lower at $35.43.

Westpac Banking Corp (ASX: WBC) is holding up better, edging 0.06% lower to $36.23.

Energy and defensives offer support

There is still some support around, which is stopping the ASX 200 from falling further.

Woodside Energy Group Ltd (ASX: WDS) shares are up 1.8% to $29.39, while Santos Ltd (ASX: STO) has added 1.67% to $7.625.

CSL Ltd (ASX: CSL) is also doing some work, rising 1.86% to $126.61.

The supermarkets are helping as well. Woolworths Group Ltd (ASX: WOW) shares are up 0.46% to $40.085, while Coles Group Ltd (ASX: COL) has lifted 0.96% to $23.635.

But even with those gains, the ASX 200 is still struggling to get back on the front foot.

Can the ASX 200 recover today?

The ASX 200 still has time to recover, but it needs more help from the usual heavyweights.

Energy stocks and defensives are doing their bit, but the weakness in miners and banks is making it hard for the index to turn positive.

A lot may depend on whether BHP, Rio Tinto, and the major banks can steady into the afternoon session.

If they do, the ASX 200 could claw back some of today’s losses.

The post Is the ASX 200 heading for a third straight fall as oil prices jump? appeared first on The Motley Fool Australia.

More reading

• Steadfast Group extends exclusivity on $6.00 per share takeover offer
• Fletcher Building lifts FY26 profit guidance as quarterly volumes rise
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Why the ASX 200 is sliding towards a 4-week low today

Motley Fool contributor Aaron Teboneras 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 CSL. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.