Jefferies flags Aussie Coles' cost-efficiency doubts but sees vertical integration payoff

** Jefferies questions whether grocer Coles' COL in-house food production matches third-party cost efficiency or delivers arm's-length returns, noting automated dairy ops remain under-utilised

** However, says the upside of vertical integration appears tangible, underpinning COL's strong execution, sales beat and ability to react to rival Woolworths' WOW 2024 supply chain snags

** Keeps "hold" rating at price target of A$21

** 10 of 15 analysts rate the stock "buy" or higher, others "hold"; their mean PT is A$24.06– LSEG data

** Stock has gained 15.4% so far this year