The Australian food division of Woolworths (ASX:WOW) is expected to perform stronger than consensus estimates.

The prediction comes from brokerage, which also foresees an improvement in the retailer’s gross profit margins, given growth in new businesses.

A streak of positive growth is anticipated, with a forecast of 6.1% like-for-like sales growth in the supermarket business until fiscal 2024, outpacing consensus estimates of 4.1%.

A significant 6% boost above market consensus for the company’s fiscal 2024 Australian food EBIT, pushed by higher sales, is also foreseen by the brokerage.

The firm advocates a ‘buy’ stance on Woolworths (ASX:WOW), maintaining its price target at A$42.20 per share.

Out of 16 analysts, nine recommend the stock as a ‘buy’ or higher, three advise ‘hold’ while four propose ‘sell’; their median price target is A$40.

As of the last close, the stock has registered an 11.7% rise for this year.

Woolworths (ASX:WOW) is a leading Australian retailer with a diverse range of retail businesses.