Credit Suisse upgrades forecasts, expecting the boost to household goods expenditure will be longer than previously anticipated. Wesfarmers is also positioned to add value through strategic acquisitions in the industrials and home improvement sectors.
If acquisitions are not undertaken in 2021, a return of capital could become more likely, the broker adds. Rating is upgraded to Outperform from Neutral and the target lifted to $51.59 from $47.30.
Sector: Food & Staples Retailing.
Target price is $51.59.Current Price is $45.28. Difference: $6.31 – (brackets indicate current price is over target). If WES meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).