The newly opened Bunnings Pymble demonstrates how the Wesfarmers brand will utilise innovation to expand its addressable market according to UBS. The broker particularly noted the addition of DIY options in premium categories, such as pool fencing, will allow the brand to reach new customers.
The broker also expects trade customers to present further opportunity for the new store, noting trade sales currently account for 35% of Bunnings’ sales leaving material market share headroom.
The Buy rating and target price of $56.00 are retained.
Sector: Food & Staples Retailing.
Target price is $56.00.Current Price is $47.19. Difference: $8.81 – (brackets indicate current price is over target). If WES meets the UBS target it will return approximately 16% (excluding dividends, fees and charges – negative figures indicate an expected loss).
