COL - Morgans rates the stock as Add
PUBLISHED
2022-05-02
Content
Coles Group's 3Q sales were slightly better than Morgans forecast, despite major disruptions during the period. Online outperformed partly due to omicron-related demand.
Like-for-like sales at Supermarkets outperformed the analyst's forecast, while Liquor sales also exceeded expectation. In Express, convenience store sales underperformed due to floods and reduced consumer mobility from omicron.
Management noted sales in the 4Q to date have been solid. The broker maintains its Add rating and increases its target to $20.65 from $19.70.
Sector: Food & Staples Retailing.
Target price is $20.65.Current Price is $18.70. Difference: $1.95 - (brackets indicate current price is over target). If COL meets the Morgans target it will return approximately 9% (excluding dividends, fees and charges - negative figures indicate an expected loss).