Sydney, May 20, 2026, 06:07 AEST
- Woolworths finished Tuesday up 3.7%, last trading at A$34.21.
- JPMorgan raised its rating to “overweight,” saying it sees the stock beating its benchmark or peer group.
- The announcement hit before the ASX opened Wednesday. Regular trading on the exchange goes from 9:59 a.m. to 4 p.m. AEST.
Woolworths Group Ltd shares rallied Tuesday after JPMorgan upgraded the stock, sending it among the day’s bigger ASX 300 risers and lifting the consumer staples sector. Woolworths finished the day at A$34.21, up A$1.23, or 3.7%. The S&P/ASX 200 added 1.17% to close at 8,604.7. The Australian market was still closed early Wednesday. Market Index
Timing is a factor here. Woolworths shares were hit after the late-April update. The retailer posted steady sales but flagged a messier profit view. The company said Australian Food EBIT, or operating profit, would miss the top of its previous mid-to-high single-digit growth range.
JPMorgan upgraded Woolworths to overweight from neutral and raised its price target to A$37 from A$35, according to MarketIndex. That move brought in some buyers. Coles and Metcash, seen as Woolworths’ closest grocery rivals, gained too, with investors picking up defensive stocks or names considered less tied to economic cycles. Market Index
Woolworths was at A$34.21 at 4:38 p.m. AEST on May 19, according to its investor page. Shares traded between A$34.77 and A$33.68 during the day. The stock is still down 8.7% for the month, but up 7.3% for the year, MarketIndex data shows. Woolworths Group
Consumer staples led the ASX higher, adding 3% and topping all sectors as the local market bounced back from Monday’s drop. The Reserve Bank of Australia’s May minutes raised talk of a possible pause soon, after three rate hikes this year. Hebe Chen, analyst at Vantage Markets, said the release offered a “modest sign of relief,” with traders reading the tone as less urgent. The Business Times
ASX 200 bounced back from what IG market analyst Tony Sycamore called Monday’s “demolition derby”, helped by President Donald Trump delaying planned U.S. strikes on Iran and some relief in bond yields. But Sycamore said IG still isn’t seeing signs of a near-term peace deal. IG
Woolworths is facing rising costs and more careful shoppers, and it remains to be seen if better sales will be enough. The company posted third-quarter group sales of A$18.1 billion, a 4.5% gain, helped by a 5.9% jump in Australian Food revenue and a 20.2% lift in group e-commerce sales.
Woolworths boss Amanda Bardwell said in the April 30 update that the conflict in the Middle East has brought “greater uncertainty” for customers, suppliers and staff. Bardwell said the company is staying focused on productivity and cost discipline, while still putting money into lower prices and convenience.
Australian consumer sentiment ticked up in May, but households are still cautious. The Westpac-Melbourne Institute survey posted a 3.5% gain to 83 for the month, Reuters said. That’s still far under 100, meaning more consumers are pessimistic than optimistic. “Consumers remained ‘deeply pessimistic,’” Westpac’s Matthew Hassan said. Investing
The rally is built on shaky ground. If fuel costs remain up, if suppliers raise prices again, or if the RBA hikes rates another time, Woolworths could find it tougher to balance margins with price holds for shoppers.
RBA minutes put the risk front and center. The bank said higher fuel costs may spread into prices of other goods and services in time. The RBA increased the cash rate by 25 basis points to 4.35% at its May meeting. Eight board members backed the hike, while one voted to keep rates steady. Gov
