Woolworths Group initiated with a Sector Perform at RBC Capital

RBC Capital initiated coverage of Woolworths Group (WOLWF) with a Sector Perform rating and A$31 price target The company remains Australia’s dominant grocery retailer and benefits from scale, vertical integration, a broad supplier network and large store footprint, the analyst tells investors in a research note. However, the firm believes headwinds from soft volumes, price investment as consumers preference value, and growing online penetration is weighing on Woolworths’ outlook.