COL - UBS rates the stock as Neutral
PUBLISHED
2022-07-06
Content
UBS is generally more positive on the grocery sector, with survey results obtained by the broker suggesting food inflation has gained momentum faster than anticipated, with the sector achieving multiple price rises in the last year.
With cost of living pressures expected to drive a resurgence of private label goods, and the broker expects Woolworths Group ((WOW)) and Aldi to make market gains, while Coles Group and IGA ((MTS)) lose share. The broker increases its earnings per share forecasts 5% and 11% through to FY23.
The Neutral rating is retained and the target price increases to $18.75 from $18.00.
Sector: Food & Staples Retailing.
Target price is $18.75.Current Price is $17.99. Difference: $0.76 - (brackets indicate current price is over target). If COL meets the UBS target it will return approximately 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).