Coles Group Ltd

COL: XASX (AUS)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	A$45.00	Zthbg	Vkjvtzknx

Coles Earnings: Recent Trading Outperformance Versus Woolworths Likely Short-Lived

Johannes Faul

Feb 27, 2024

The value gap between Australia’s two largest supermarket operators has been dramatically closing over the space of a week, following their first-half fiscal 2024 results. However, both defensive plays screen as overvalued. We think the market underestimates the risk of relatively low-growth, defensive yield stocks like Coles and Woolworths derating, given higher prevailing interest rates.

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