The S&P/ASX 200 Index (ASX: XJO) is having a bit of a shaky day so far this Tuesday. At the time of writing, the ASX 200 has gained a tentative 0.07%, which puts the index close to 7,490 points. But the Coles Group Ltd (ASX: COL) share price is doing far better.
Coles shares are on fire today. The ASX 200 supermarket giant is currently up a healthy 2.39% at $17.765 a share:
So what's going on with Coles shares today that is making this company such a convincing market beater?
Well, it's not entirely clear. There have been no new announcements or news out of Coles today. Or indeed this week.
But we are seeing Coles' consumer staples sector doing very well today. The S&P/ASX 200 Consumer Stapes Index (ASX: XSJ) is currently the best-performing sector on the ASX 200 right now, up 1.81%.
Other consumer staples shares are also booming. Coles' arch-rival Woolworths Group Ltd (ASX: WOW) is up by more than 2.79%, while Treasury Wine Estates Ltd (ASX: TWE), Metcash Limited (ASX: MTS), and Endeavour Group Ltd (ASX: EDV) are also enjoying some solid gains.
But perhaps more potently, we have also seen a few ASX brokers come out with some bullish opinions on Coles shares today. This could be what is giving investors a confidence boost.
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ASX brokers rate Coles shares as a buy
As my Fool colleague James covered this morning. ASX broker Morgans likes what it sees with Coles shares right now.
The broker has given the company an add rating, together with a 12-month share price target of $19.50. That would give investors an upside of close to 10% from where the shares are currently if Morgans is on the money.
Here's what the broker had to say about its decision:
We continue to see COL as offering good value with the company's solid balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. The unwinding of local shopping should also help further market share gains.
Morgans is also predicting that Coles will keep ramping up its dividends going forward too. It has 64 cents per share in dividends pencilled in for FY2023, rising to 66 cents per share for FY2024.
But Morgans isn't the only broker eyeing off Coles shares. According to reporting in The Australian today, another ASX broker in Credit Suisse is also seeing value in Coles sales right now.
Credit Suisse has given the grocer an outperform rating, and a 12-month share price target of $19.31 a share. Not quite as optimistic as Morgans, but this will still no doubt delight investors.
So it could be a combination of these factors which is leading Coles to such a lucrative, market-beating performance this Tuesday.
