COL – UBS rates the stock as Sell

By Broker News | More Articles by Broker News

Coles’ result came in 3% above the company’s pre-announced number earlier in the month, largely due to better than expected cost-outs. UBS is surprised by the solid performance of the supermarket in the face of higher levels of investment by rivals.

That said, the broker fears short term profit growth is coming at the expense of longer term investment. Sell retained, target rises to $14.70 from $13.50. The broker prefers Woolworths ((WOW)).

Sector: Food & Staples Retailing.

Target price is $14.70.Current Price is $16.75. Difference: ($2.05) – (brackets indicate current price is over target). If COL meets the UBS target it will return approximately -14% (excluding dividends, fees and charges – negative figures indicate an expected loss).

Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →