Citi retains PT and rating on Australia's Coles, sees gap closing vs Woolworths

Coles

03/05/2026 19:47

** Analysts at Citi see Australia's Coles' COL.AX Supermarket like-for-like sales deficit to larger peer Woolworths WOW.AX to mostly close in Q4

** Brokerage leaves target price unchanged at A$23.00/shr, retains "buy" rating

** Coles on Friday posted a 3.1% rise in total group sales revenue to A$10.70 bln ($7.71 bln)

** If fuel prices spike again and mobility restrictions are put in place, we would expect even greater growth in Click and Collect channel (particularly delivery) than ~25% reported in Q3 - Citi

** Citi also expects oral format GLP-1 drugs to further reduce liquor demand for Coles' already struggling segment, says "difficult to see material rebound in liquor consumption"

** Coles remains our preferred supermarket exposure, and we like its relative defensiveness in the current challenging economic environment - Citi

** YTD, stock up 6.9%, as of last close

($1 = 1.3883 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Edmund Klamann)

 ((shivangi.lahiri@thomsonreuters.com))