Credit Suisse upgrades forecasts following the AGM. A normalisation of expenditure in retail, i.e. Bunnings and Officeworks, could weigh on sentiment over the short term yet the expansion of new and other businesses is where the growth opportunity lies, in the broker’s view.
Credit Suisse assesses growth initiatives are developing nicely, particularly Mount Holland lithium, with first sales expected in FY24, the expansion of ammonia production and expansion into adjacencies for the home improvement segments.
The Neutral rating is retained. Target is raised to $60.38 from $59.91.
Sector: Food & Staples Retailing.
Target price is $60.38.Current Price is $57.31. Difference: $3.07 – (brackets indicate current price is over target). If WES meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
