Coles Group Ltd (ASX: COL) shares have reportedly been tipped as a November winner, with the company’s annual general meeting (AGM) expected to deliver a bout of positivity.
The S&P/ASX 200 Index (ASX: XJO) supermarket operator will host its AGM next month. There, it could provide an update on its activities through the first few months of financial year 2023.
The Coles share price is trading at $16.38 right now, 0.18% higher than its previous close. Meanwhile, the ASX 200 is up 0.23%.
The stock has been outperforming this year so far, falling 8.5% compared to the index’s 12.2% tumble.
Let’s take a closer look at what the market might be expecting to hear from Coles next month.
Could Coles shares be an AGM winner?
There could be an exciting few weeks ahead for Coles shares. The company is preparing to release its sales results for the first quarter on 26 October and host its AGM on 9 November.
Making the near future more exciting, Macquarie has reportedly tipped the supermarket operator to be an AGM winner.
The broker has an outperform rating on Coles shares. It expects the company could benefit from an update at its AGM, the Australian Financial Review reports.
Last November, the company’s leaders revisited its pandemic-induced struggles before looking to the future, with a focus on the Christmas period.
This time around, they might look back at a period defined by the rising cost of living, inflation, and rate hikes.
Of course, being an S&P/ASX 200 Consumer Staple Index (ASX: XSJ) share, Coles is largely protected from such happenings.
Though, the company noted inflation will still likely impact its bottom line this financial year. Additionally, its sales growth could be dinted from the cycling of 2021 lockdowns.
Management could also look to a future without Coles Express. The business is set to be sold to Viva Energy Group Ltd (ASX: VEA) for $300 million.
Getting down to business, Coles’ AGM will see shareholders voting on the election of Terry Bowen and Scott Price onto the company’s board.
Meanwhile, Jacqueline Chow and chair James Graham will be standing for re-election. Graham noted that, if re-elected, he will likely retire before the end of the ensuing term.
Macquarie isn’t alone in expecting big things from Coles shares in the future. Morgans and Citi both also rate the stock a buy, slapping Coles shares with respective price targets of $20 and $20.10.
The post Are Coles shares a buy ahead of the company’s November AGM? appeared first on The Motley Fool Australia.
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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