Coles Group's 3Q sales beat Morgans expectation, and management noted Supermarkets sales growth has continued into the 4Q with volumes remaining modestly positive. The company expects ongoing moderation in supplier input cost inflation.

Liquor like-for-like sales increased 1.5% (the analyst forecast 2.5%) with the business no longer cycling on-premise restrictions in the previous corresponding period.

The broker lifts EBIT forecasts across FY23-25 by 1% and the target rises to $19.85 from $19.60. Add.

Sector: Food & Staples Retailing.

Target price is $19.85.Current Price is $18.20. Difference: $1.65 - (brackets indicate current price is over target). If COL meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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