The Coles Group Ltd (ASX: COL) share price is edging lower today despite the release of a positive announcement.
In morning trade the supermarket giant’s shares are down almost 1% to $15.45.
What did Coles announce?
This morning Coles increased its green credentials by releasing its Climate Change Position Statement and announcing targets to reduce greenhouse gas emissions.
According to the release, the supermarket operator has committed to delivering net zero greenhouse gas emissions by 2050.
In addition to this, before then, the company intends to power its entire business by 100% renewable electricity by the end of FY 2025.
Another commitment is for Coles to reduce its combined Scope 1 and 2 greenhouse gas emissions by more than 75% by the end of FY 2030 from a FY 2020 baseline.
Coles’ CEO, Steven Cain, said: “We have already reduced Scope 1 and Scope 2 greenhouse gas emissions by 36.5% since 2009 and have been a leader in securing renewable energy. Our new targets for Scope 1 and 2 emissions commit us to an accelerated reduction in greenhouse gas emissions that exceed the climate change ambitions of the Paris Agreement and will help sustain Australia for generations to come by working together with our customers, suppliers and members of the community.”
Is the Coles share price in the buy zone?
The Coles share price has underperformed this year and was down 16% year to date prior to today.
One broker that is likely to see this share price weakness as a buying opportunity is Morgan Stanley. Last month its analysts put an overweight rating and $20.25 price target on the company’s shares.
Based on the current Coles share price, this price target implies potential upside of 31% for its shares over the next 12 months.
The broker is also forecasting a 57 cents per share fully franked dividend in FY 2021. This represents an attractive 3.7% yield currently.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
More reading
- Is Coles (ASX:COL) a dependable ASX share to buy right now?
- 2 quality ASX dividend shares to buy today
- Why the Coles (ASX:COL) share price is still down 15% in 2021
- 2 ASX dividend shares to buy with yields above 4%
- ASX 200 Weekly Wrap: Calm restored to the ASX 200
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Coles (ASX:COL) share price lower after announcing greenhouse gas emissions targets appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/3vIjL35
Leave a Reply