Azzet reports on three stocks with price moving updates today.
Woolworths lifts on broker upgrade ~
Shares in Woolworths Group (ASX: WOW) were up 3.6% by 2:05 pm AEDT (3:05 am GMT) to $29.41 after JPMorgan decided to upgrade the supermarket stock from “neutral” to “overweight” with the broker’s target price rising from $29.50 to $31.
JPMorgan attributed its upgrade to stronger sales under the consumer staple’s new commercial leadership.
The broker clearly liked the group’s decision to appoint Sean Barrett – formerly Albertsons’ chief marketing officer of U.S.-based supermarket giant Albertsons Companies - as its new CMO.
Barrett’s appointment, effective January 2026, follows a horror run for the supermarket operation, which saw it record the highest level of brand distrust in Roy Morgan’s latest Brand Trust index survey.
Reigniting growth will clearly be high on Barrett’s priority list, with Woolworth’s latest Q1 trading update reporting group sales were up 2.7% on Q1 FY25 to $18.5 billion, with Australian food sales up 2.1% and food retail sales increasing by 3.8%.
While the big boost came from ecommerce sales, which jumped 13.2% to $2.7 billion, CEO Amanda Bardwell admitted that the performance was below aspirations.
There was also a noted underperformance in pet and baby, while Big W improved slightly, up 1% year-on-year.
The stock’s share price dropped from its most recent high of $33.61 on 21 August to $27.15 on 3 September after reporting a “disappointing” FY25 that included a 17.1% decline in normalised profits to $1.39 billion due to weak performance out of its supermarket and Big W brands.
Over the medium term, Bardwell told the market - following the FY25 result - that it aims to deliver sustainable mid- to high-single-digit earnings growth through consistent growth from Woolworths Retail, improved profits from NZ Food and BIG W and incremental growth from our complementary businesses and services.
Meanwhile, the broker noted that its latest re-rating on Woolworths followed the supermarket giant's focus on impulse categories, loyalty-driven promotions, online offerings, and high-low pricing strategies, giving second-quarter 2025 sales a “sugar hit” ahead of expected supply chain disruptions from late November.
After a string of weak quarters, Bardwell reaffirmed to fund managers earlier this month the group’s plans to push down prices on a small number of popular products and focus on growing its private label range.
In an attempt to simplify its complex business, comprising 15 different operating models, Bardwell has cut $400 million in costs, closed online marketplace MyDeal and folded in separately operating divisions like the Healthy Life wellness business.
Meanwhile, the jury’s out on whether Woolworths’ efforts to provide the lowest possible prices to customers are working.
Despite months of work lowering shelf prices - in the hope of turning around Woolworths’ market share falls – the group’s published sales figures for the first quarter of FY26 recorded an increase that was less than half that of Coles.
Woolworths Group has a market cap of $35.7 billion; the share price is down 3.66% over one year and over 9% over the last month.
The stock’s shares appear to be in a long-term bearish trend, confirmed by a falling 200-day moving average.
However, there are rallies occurring at shorter time frames.
The 5-day moving average is above the 50-day moving average, and the 20-day moving average is rising.
Consensus is Hold.
The Star Entertainment jumps after issuing cleansing prospectus
Long-suffering shareholders in The Star Entertainment Group (ASX: SGR) had lots to smile about this morning, with the share price up 4.8% after the embattled casino operator issued a cleansing prospectus to allow recently issued shares to Bally’s to trade freely on the market.
The move covers shares issued to two major investors, Bally’s and Investment Holdings, after their convertible notes were turned into equity, as well as incentive shares granted to senior executives.
The prospectus includes a token offer of 20 shares at 10.5 cents each – a standard legal step to remove trading restrictions.
The group’s note to the exchange this morning – which was deemed not to be price sensitive – follows revelations earlier in the week that Bruce Mathieson junior is expected to become the next executive chairman.
The appointment follows an agreement by the billionaire Mathieson family and its business partners at American casino giant Bally’s to convert loans to the gaming group into shares.
Before the conversion of notes, the Mathieson family held around 10% of the company, making them the largest single shareholder at the time.
Together with Bally's Corporation - which now holds around 38% - the two entities jointly control more than half of the company.
Once Bruce Mathieson’s appointment is officially announced next week, chairwoman Anne Ward will retire, and Star CEO Steve McCann is expected to remain in his position.
Son of publican Bruce Mathieson and a former director at Endeavour, Mathieson junior told shareholders he would do his best to turn the company around.
Meanwhile, Star is still trying to sell down its 50% stake in its Brisbane casino and entertainment complex, while waiting on a hefty fine for historical breaches of money laundering laws and will need to refinance its debt early next year.
Earlier this week, Star told investors that Chow Tai Fook and Far East - which each own 25% of Queen’s Wharf - had requested an extension of the refinancing of its $1.4 billion debt from December until March 31.
Star has guaranteed half of the precinct’s $1.4 billion debt, which will be extended until the Queen’s Wharf deal is done.
The Star Entertainment Group has a market cap of $301 million; the share price is down 43% in one year and up 27% in the last week.
The stock’s shares appear to be in a long-term bearish trend, confirmed by a falling 200-day moving average.
However, there are rallies occurring at shorter timeframes.
Consensus does not over this stock.
European Metals soars after scoring major Czech funding
Shares in European Metals Holdings (ASX: EMH) were trading 75% higher this afternoon after the minerals explorer confirmed that its Cinovec lithium project in the Czech Republic has been approved for a government grant of up to €360 million under the nation’s Strategic Investments for a Climate-Neutral Economy program.
The grant, which represents one of the largest direct project-level funding approvals for any critical raw materials development in the European Union, recognises Cinovec as a Strategic Project by the European Commission under the EU Critical Raw Materials Item.
Describing it as a transformational milestone, executive chair Keith Coughlan told the market that the approval demonstrates the support for and importance of Cinovec in the future of European electromobility.
“Coming at a time of renewed positive outlook for lithium and strong geopolitical commitment to Critical Raw Material supply chain security, the grant confirms the significant support at both Czech government and European Union levels,” he said.
Paid in Czech koruna, the grant allows for reimbursement of up to 35% of eligible capital expenditure via annual drawdowns aligned with project-status reports.
While each disbursement is subject to validation under EU state-aid rules, project completion must occur no later than 31 December 2032, and each disbursement is subject to validation under EU state-aid rules.
Qualifying categories for the Strategic Investments for a Climate-Neutral Economy program include lithium production and other key inputs for solar, wind, electrolyser, heat-pump, and carbon-capture technologies.
Further updates will be provided once construction-readiness activities progress and outstanding approvals are finalised.
Meanwhile, here’s what we know:
- The Cinovec Project represents Europe's largest hard rock lithium deposit and the largest within the European Union, hosting globally significant resources.
- The scale of this resource base is understood to position it among the world's most significant lithium developments.
Production Profile
- Initial Ore Reserve: 34.5Mt at 0.65% Li2O covering the first 20 years of mining.
- Target Annual Output: 22,500 tonnes per annum of lithium carbonate.
- Processing Capability: Both battery-grade lithium hydroxide and carbonate production.
Ownership Structure: 51% CEZ - one of Central Europe's largest energy companies – which is 70% owned by the Czech Republic, 49% European Metals through Geomet s.r.o.
European Metals Holdings has a market cap of $87 million; the share price is up 165% in one year and is up 75% in the last week.
The stock appears to be in a long-term uptrend, confirmed by multiple indicators.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
