The Coles Group Ltd (ASX: COL) share price defied the broader market's downturn on Friday to post a new 52-week high, and one broker thinks it could go even higher.
At its highest point today, the Coles share price was trading at $18.97, 1.87% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) has been in the red all day. It's currently down 0.75%.
So, what might be going on with the supermarket's stock lately? Let's take a look.
Coles share price inks new 52-week high
The Coles share price reached its highest point in more than a year on Friday despite the company's silence.
In fact, the market hasn't heard price-sensitive news from the supermarket since late April.
So, what might be driving it higher? Well, the Australian Bureau of Statistics found household spending increased in May despite the current inflationary environment earlier this week.
Speaking of, Coles has positive exposure to inflation, my Fool colleague James reported yesterday. On top of that, its sales have been growing and it holds a strong market position.
The supermarket can also pass on higher costs to consumers. In fact, it upped the price of Coles brand milk yesterday due to rising costs associated with sourcing, transporting, and packing the dairy product.
Morgans is one broker excited about the future of the Coles share price. It has reportedly slapped the stock with a $20.65 price target.
It also expects the supermarket giant to up its dividends to 61 cents in financial year 2022 and 64 cents in financial year 2023.
