Citi, Jefferies upbeat on Australia's Coles on mitigated impact from Woolworth's Disney campaign

Woolworths

25/08/2026 22:33

** Analysts at Citi see around A$1.5 bln ($1.08 bln) of surplus capital available for Coles' COL.AX capital management
** Brokerage downgrades Australia's No.2 grocer to "neutral" from "buy" as "good news mostly priced in"
** Citi increases target price for stock to A$24.00/shr from A$23.00/shr
** Brokerage says management commentary on earnings call indicated surplus capital will be returned to shareholders
** Jefferies also remains positive on Coles on potential benefit from packaged food inflation & trading in from restaurants
** Both brokerages upbeat on the fact that impact to Coles from Woolworths' WOW.AX Ooshies program was not as severe as expected
** Coles on Tuesday reported underlying net profit of A$1.26 bln for year ended June 28
** Stock up 10.8% YTD, as of last close

($1 = 1.3953 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru)
 ((shivangi.lahiri@thomsonreuters.com))