BUZZ-Coles: Jefferies says price cuts an attempt to stem market share loss, unlikely to spur 'price war'
** Jefferies says price cuts announced by Coles Group on Thursday are unlikely to cause a 'price war' with other retailers like Woolworths Group
** The retailer reduced prices across private label and branded products, with prices falling by 5%-35% [https://bit.ly/2RnXxE9 ]
** Brokerage says that price reductions by the retailer appear likely to be an effort to stem the market share loss it has suffered to both WOW and other independents
** Adds that the retailer has been highly rational to date, and any aggressive investment would be swiftly countered by WOW, which would hurt COL more than WOW
** COL's weak momentum, larger operating leverage, smaller online business makes it unlikely for the co to win a price war against WOW that is cycling much larger COVID costs in the base - Jefferies
** Says research conducted by brokerage suggested COL has been more aggressive than WOW, with certain product prices tracked for COL growing only 0.5% in March qtr compared to 1.2% rise for the latter
** Five of 12 analysts rate COL stock "buy" or higher, 7 rate it "hold"; their median PT is A$19– Refinitiv data
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