Woolworths Group has entered the fray in the battle to acquire Australian Pharmaceutical Industries ((API)) with a $1.75/share bid, which exceeds the $1.55/share offered by Wesfarmers ((WES)).
The analyst asks investors to ponder the group’s inglorious past attempts with portfolio expansion though notes the estimated -$990m cost is not material. The broker retains its Underperform rating and $31.84 target price.
Sector: Food & Staples Retailing.
Target price is $31.84.Current Price is $39.93. Difference: ($8.09) – (brackets indicate current price is over target). If WOW meets the Credit Suisse target it will return approximately -25% (excluding dividends, fees and charges – negative figures indicate an expected loss).
