The Coles Group Ltd (ASX: COL) share price has been one to watch in recent weeks. The ASX 200 blue-chip supermarket operator has recorded a healthy 1.18% gain so far this Thursday to $18.85 a share.
That's just the latest rise in what has been a cracking start to the 2023 financial year for this grocer. Since 30 June, the Coles share price has risen more than 6%. And we're only 21 days into the new financial year. So what does the rest of FY2023 look like for Coles shares?
Coles was one of the best ASX 200 blue-chips to own over the financial year just gone. Between 1 July 2021 and 30 June 2022, Coles rose from $17.09 a share to $17.81. That's a gain worth 4.21% – far better than the 10.19% loss that the S&P/ASX 200 Index (ASX: XJO) recorded over the same period.
And, as we've just discussed, Coles has kept the party going into FY2023 thus far. In fact, the grocer recorded a new 52-week high of $19.11 only earlier this week.
So is this as good as it gets for Coles in FY2023? Or does this supermarket giant have further to run?
Image source: Getty Images
What's next for the Coles share price in FY2023?
Well, fortunately for Coles investors, ASX brokers seem rather united on what they think will happen to Coles shares over the next 12 months or so. And even more fortunately, they are seeing Coles rise further.
Take broker Citi. As my Fool colleague James covered just yesterday, Citi has a buy rating on Coles shares today, with a 12-month share price target of $19.30. If that came to pass, it would see another 2.2% or so upside for Coles shares going forward.
Citi is also pencilling in a big dividend hike for Coles shareholders too. It reckons the grocer will pay out 63 cents per share in dividends for FY2022 before the company raises its payouts to 72 cents per share for FY2023.
But it's not just Citi eyeing off Coles shares today. As we also covered last week, broker Morgans is also bullish on Coles shares today. This broker also has an add rating on Coles shares at present, replete with a 12-month share price target of $20.65. That would represent an upside of 9.4% from today's pricing.
Morgans is also anticipating Coles will lift its dividends over FY2022 and FY2023. Here's some of what this broker said on its Coles position:
We continue to see COL as offering good value with the company possessing defensive characteristics and a strong balance sheet (1H22 net cash $54m) allowing ongoing investment for growth.
So all in all, it's a pretty rosy outlook for the Coles share price over FY2023. No doubt shareholders will like what these ASX brokers had to say about this company. But, as always, we'll have to wait and see what happens.
At the current Coles share price, this ASX 200 blue-chip share has a market capitalisation of $25.19 billion, with a dividend yield of 3.24%.
