Woolworths Group's guidance for 1H underlying earnings (EBIT) was a miss against forecasts by Morgans and consensus of -2% and -1%, respectively. Overall, the company's 2Q trading update was weaker than the broker expected.

Management noted a more challenging half for New Zealand Food and BIG W, resulting in forecast downgrades by the broker for these two divisions over FY24-26, which only just exceeded forecast upgrades for Australian Food and Australian B2B.

Morgans target falls to $39.45 from $39.90 and the Add rating is maintained.

First half results are due on February 21.

Sector: Food & Staples Retailing.

Target price is $39.45.Current Price is $36.20. Difference: $3.25 - (brackets indicate current price is over target). If WOW meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2024 Acquisdata Pty Ltd., source FN Arena