WES – Morgan Stanley rates as Underweight

By Broker News | More Articles by Broker News

The company will sell its 40% stake in the Bengalla JV to New Hope ((NHC)) for $860m. Morgan Stanley estimates after-tax proceeds of $658m versus a valuation of $843m, meaning the transaction would be around -2% dilutive to FY20 EPS.

With this transaction, Wesfarmers completes its exit of the resources business. Underweight rating retained. Industry view is Cautious. Target is $42.

Sector: Food & Staples Retailing.

Target price is $42.00.Current Price is $50.08. Difference: ($8.08) – (brackets indicate current price is over target). If WES meets the Morgan Stanley target it will return approximately -19% (excluding dividends, fees and charges – negative figures indicate an expected loss).

Broker News

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →