Woolworths Gains as Macquarie Upgrades Rating to Outperform

Highlights:

• Macquarie upgraded Woolworths Group Limited (ASX: WOW) to "outperform," driving a 1.1% share price increase.
• The investment bank expects supermarket stocks to gain traction following an ACCC report on grocery pricing.
• Despite the rise, Woolworths shares remain down 8% year-to-date at the time of writing, lagging behind Coles’ 1.9% decline.

Supermarket Giant Sees Investor Interest Amid Competition Report

Woolworths Group Limited (ASX: WOW) saw its shares climb 1.1% after investment bank Macquarie upgraded the stock to an "outperform" rating. The upgrade signals growing investor confidence in the supermarket chain, especially as traders anticipate a shift in market sentiment following a key report from Australia’s Competition and Consumer Commission (ACCC) on grocery pricing.

Macquarie’s Optimistic Outlook

Macquarie’s revised rating suggests Woolworths is well-positioned to benefit from strong consumer demand and potential market adjustments after the ACCC’s findings. The investment bank believes that supermarket stocks could attract more buyers as regulatory scrutiny provides greater clarity on pricing dynamics in the sector.

Stock Performance Lagging Behind Coles

Despite the recent uptick, Woolworths shares remain down 8% year-to-date at the time of writing, underperforming its key rival Coles Group Limited (ASX: COL), which has declined 1.9% in the same period. Investors will be closely watching how the competition report impacts both major retailers in the coming weeks.

With Macquarie’s upgrade and renewed investor interest, Woolworths could see a stronger performance as the supermarket sector navigates regulatory developments.

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