Citi resumes coverage of Woolworths post the de-merger of Endeavour Group ((EDV)) with a Neutral rating and $37.60 target.
The broker expects Woolworths will outperform Coles ((COL)) in the short term because of its better online reach.
Following the demerger, Citi also expects Woolworths will have higher cash flow and a lightly geared balance sheet provides other options.
Sector: Food & Staples Retailing.
Target price is $37.60.Current Price is $38.17. Difference: ($0.57) – (brackets indicate current price is over target). If WOW meets the Citi target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
