The Coles Group Ltd (ASX: COL) share price has been a solid performer on Tuesday.
In morning trade the supermarket operator’s shares were up as much as 4.5% to $15.35.
Why is the Coles share price pushing higher?
The Coles share price has been given a boost after it was the subject of a number of positive broker notes.
On Monday analysts at the Macquarie Group Ltd (ASX: MQG) equities desk upgraded the company’s shares to an outperform rating with a $17.20 price target.
According to the note, the broker thought the market selloff had left Coles’ shares trading at a very attractive level. In addition to this, it believes Coles is a high quality asset and was pleased to see it gaining market share during the early weeks of 2020.
Another broker that has turned positive on the supermarket operator is Credit Suisse. This morning the broker upgraded its shares from a neutral rating to outperform with an improved price target of $17.80.
The broker sees value in its shares at this level and appears to believe its renewal program and the development of the supermarket range will drive its earnings growth over the medium term.
Finally, another broker that remains bullish on Coles is Goldman Sachs. Late last month the broker retained its buy rating and $18.10 price target on its shares.
It was happy with its first half results and notes that they have provided a degree of confidence in the progress of its strategy execution. The broker also expects medium term conditions to remain supportive across the supermarket industry.
Should you invest?
I agree with the brokers on Coles and would be a buyer of its shares ahead of rival Woolworths Group Ltd (ASX: WOW).
And with its shares offering a decent dividend yield, it could be a good option for income investors if the Reserve Bank cuts rates today.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.