Woolworths shares experienced a notable rally at the market open following an upgrade from JPMorgan. The financial institution revised its rating on the supermarket stock from “neutral” to “overweight,” also increasing the target price from $29.50 to $31. The upgrade spurred a 2.3 per cent increase in Woolworths’ value within the first few minutes of trading. This surge positioned Woolworths as one of the top-performing stocks on the ASX 200.
Woolworths Group is an Australian company that operates a chain of supermarkets and retail stores across Australia and New Zealand. It provides a wide range of products, including groceries, fresh produce, and household goods to consumers. JPMorgan attributed the upgrade to the positive impact of Woolworths’ new commercial leadership on sales figures.
The broker highlighted that the improved sales performance was driven by strategic initiatives, including a renewed focus on impulse-purchase categories, loyalty-driven promotions, enhanced online offerings, and dynamic high-low pricing strategies. These strategies are expected to provide a boost to sales in the second quarter of 2025.
JPMorgan anticipates that these changes will provide a “sugar hit” to sales figures for the second quarter of 2025, particularly relevant given the expected supply chain disruptions anticipated from late November. The upgrade reflects confidence in Woolworths’ strategic direction and its ability to navigate upcoming challenges.
