0026 GMT - Woolworths likely bested chief rival Coles in 4Q sales, but its lofty valuation prompts RBC Capital Markets to turn bearish on its stock. RBC downgrades Woolworths to underperform from sector perform, stating its preference for Coles. Analyst Michael Toner expects Woolworths's comparable sales rose by 4.4% in 4Q, reflecting investment in price and in-store execution. It expects Coles achieved same-store sales growth of 3.4% in the quarter. "We view Woolworths's current price-to-FY27 premium to Coles of 21% as high versus history in the context of Coles's stronger margins and lower capital intensity," RBC says. Woolworths is down 0.8% at 39.53 Australian dollars. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
July 13, 2026 20:26 ET (00:26 GMT)
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