0055 GMT - The share-price drop that followed Woolworths' latest trading update generates some cautious optimism on the stock at Morgans. Analyst Alexander Lu raises his recommendation on the Australian supermarket operator to accumulate from hold, telling clients in a note that management's decision to absorb higher fuel costs and invest in product pricing is the correct one from a long-term perspective. He acknowledges this will weigh on margins in the near term, but stresses the importance of brand perception among consumers. "Woolworths' dominant market position and relatively defensive characteristics should support steady and resilient earnings growth," Lu adds. Morgans keeps a A$37.30 target price on the stock, which is up 0.4% at A$34.53. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

April 30, 2026 20:55 ET (00:55 GMT)

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