FY20 results were in line with expectations. The main positive was -$250m in cost reductions with a further -$250m expected in FY21.
Offsetting this was up to $75m of supply chain implementation costs in FY22. UBS upgrades FY21-23 estimates by 1-4%.
The broker remains positive on the sector but retains a Neutral rating, preferring Woolworths ((WOW)). Target is raised to $17.90 from $15.00. Neutral maintained.
Sector: Food & Staples Retailing.
Target price is $17.90.Current Price is $18.66. Difference: ($0.76) – (brackets indicate current price is over target). If COL meets the UBS target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
