A 1% rise for Coles Group's 1H underlying earnings (EBIT), driven mainly by the core Supermarkets segment, beat forecasts by Morgans and consensus by 3% and 5%, respectively. Liquor earnings missed expectations, notes the analyst.

Supermarket sales grew by 4% in the 1H due to improved availability, benefits from a continuity program and solid demand during key event times like Xmas and Fathers Day.

Again in early-H2, Supermarkets sales grew by 4.9%, comfortably above Woolworths Group's ((WOW)) Australian Foods growth of around 1.5%, observes the broker.

The Add rating is maintained and the target rises to $18.70 from $16.60.

Sector: Food & Staples Retailing.

Target price is $18.70.Current Price is $16.75. Difference: $1.95 - (brackets indicate current price is over target). If COL meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2024 Acquisdata Pty Ltd., source FN Arena