** Analysts at Morgan Stanley say acceleration of tobacco sales declines and continues to drag on top-line growth for supermarkets
** Brokerage, however, estimates drag to top-line growth to remain broadly consistent at 100 basis points in FY25-26
** Analysts at brokerage say trends reflect rise in vaping and e-cigarettes
** Valuation support and slower-than-expected consumer recovery see us continue to favour consumer staples over consumer discretionary; with preference for Woolworths WOW.AX & Coles COL.AX - Morgan Stanley
** Brokerage rates both firms as "overweight"
** Shares of Coles currently up 0.3%, Woolworths up 0.1%
** Consumer staples sub-index .AXSJ up 0.1%, compared with a 0.5% rise in consumer discretionary .AXDJ
(Reporting by Shivangi Lahiri in Bengaluru)
((shivangi.lahiri@thomsonreuters.com))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.