Australia's Woolworths Group rises after J.P. Morgan upgrades

Woolworths

19/05/2026 06:46

** Shares of Woolworths Group WOW.AX rise as much as 5.4% to A$34.98, highest since May 1, while Coles Group COL.AX gains as much as 3.5% to A$21.58, highest since May 11

** J.P. Morgan upgrades WOW stock to "overweight" from "neutral", raises price target to A$37 from A$35

** Retains "overweight" rating for Coles with A$24.10 price target

** "Woolworths is under-earning vs. Coles on EBIT margins, below Coles for the first time in 10 years" - J.P. Morgan

** Brokerage expects WOW to expand its gross margin by using its strong position with suppliers

** Upgrades earnings estimates by 1.2% and 7.6% for FY27 and FY28, respectively

** For Coles, brokerage makes modest earnings estimates upgrade of 1.2% and 1.5% for FY27 and FY28, respectively

** YTD, WOW up 17.1%, COL flat

 (Reporting by Sherin Sunny in Bengaluru)

 ((Sherin.Sunny@thomsonreuters.com))