The company’s maiden FY19 result was messy, UBS observes, but in line with expectations. Supermarket earnings were 3% ahead of the brokers forecasts.
The company has flagged a challenging first quarter for supermarkets and the potential for a drag on working capital via tobacco changes in the first half.
UBS retains a Sell rating, although becoming less negative, expecting the top-line and margin will improve into the second half. Target is raised to $12.65 from $12.30.
Sector: Food & Staples Retailing.
Target price is $12.65.Current Price is $13.52. Difference: ($0.87) – (brackets indicate current price is over target). If COL meets the UBS target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).