Wesfarmers (WES) Stock Recommendation

Wesfarmers (WES) have retained their Reduce 1 stock recommendation with a share price target of $30.60 from stock analyst UBS. The price target was derived from applying their cost of equity less dividends. UBS have noted the following from their AGM: " Metallurgical coal exports from Curragh are expected to be within the previously guided range of 6.2-6.5mt. We forecast 6.2mt. Bunnings 1Q cash comp store sales were up 13.1% over a weak pcp (c1%) & ahead of our FY07 forecasts. Insurance has been negatively impacted by storm-related claims in NZ & drought-related claims in Aust. WIS is tracking ahead of pcp following recent restructuring. Increasing our FY07 Bunnings comps forecast to 6.0% from 4.7% more than makes up the negative impact of some downward adjustments to our Insurance numbers." UBS vales Wesfarmers at $29.35 using an average of DCF and SOP. The stock analyst have predicted that key trigger points for this diversified industrial stock is the strategy day and the upcoming 2007 coal negotiations.

Wesfarmers Limited is listed on the Australian Stock Exchange (ASX) under stock code WES. You can view their investor website here. Wesfarmers is a diversified industrial with interests in chemical and fertiliser manufacture; gas processing and distribution; coal mining and production; building materials, hardware, industrial and safety products and services; rail transport and insurance. You can read previous Wesfarmers (WES) stock recommendations and news. Find out the meaning of the recommendations in this primer. The company was listed on the ASX on 15 November, 1984. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!