Deutsche Bank now expects resources to be profitable in FY17, which should underpin strong group earnings. Coles and Bunnings remain the drivers of the share price, accounting for over 75% of the broker’s valuation.
The broker revises FX and coal price assumptions which drives a 5% upgrade to FY17 earnings estimates. Hold rating retained. Target is $43.
Sector: Food & Staples Retailing.
Target price is $43.00.Current Price is $45.10. Difference: ($2.10) – (brackets indicate current price is over target). If WES meets the Deutsche Bank target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).