Analysts Downgrade Coles Ahead Of Q1 Sales Report

Signs of investor worries about the first quarter trading performance of our two biggest retailers – Woolworths and Coles which are both due to update the market this week on how they went in the three months to the end of September.

Coles releases its first-quarter figures this morning (Tuesday) but yesterday saw a near 3% sell-off after an analyst downgrade.

The shares ended the day at $14.56, down 2.67% and $1.05 under its all-time high of $1561 hit at the start of October.

Coles was downgraded to ‘underperform’ by analyst Grant Saligari at Credit Suisse today with a target price of $13.23.

Analysts expect Coles to report a fall in same-store sales of around 0.4% for the September quarter. That would be the first negative sales return for 12 years.

Rival Woolworths is due to report its first-quarter performance on Wednesday and analysts are forecasting a small gain in same-store sales for the giant.

Woolies shares hit their all-time high of $38.31 on October 15 and the shares have dipped since then to yesterday’s close of $37.80 – a fall of just over 1% against the 6% slide for Coles.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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