Westfield (WDC) Shares Recommendation

Westfield (WDC) has a retained Buy 1 shares recommendation and a share price target of $20.29 from stock analyst UBS. Their price target is derived from a 2.5 percent property income growth, $1.5-2 billion per annum of developments and no acquisitions. They note that "WDC is in a unique position with $1.5-2.0m pa of dev.yielding 9% + IRR's of 13%+. As we move into CY07, the mkt should start looking through to FY08 & past the roll-off of WDC's currency hedging which dilutes EPS growth over CY06-CY07." "Operationally the business remains strong with high occupancy (Aust >99.5%; US 93.5%; UK >99%), solid spec rent growth (Aust 5.2%; US 4.4%; UK 7.7%) & good sales growth (Aust 3.6%; US 5.0%; UK 5.0%). WDC is unlikely to proceed with the wholesale fund. We believe the EPS impact of a wholesale fund vs JV is immaterial. In fact, we estimate one $2bn wholesale could add 1.0%pa (avg) to EPS over 5yrs. A JV could add 1.1%pa (avg), the reason being the higher margin property mgt fees still flow above the line & a wholesale fund requires a 20% investment by WDC, not an ideal use of WDC's capital in our view."

Westfield Group Limited is listed on the Australian Stock Exchange (ASX) under stock code WDC. You can view their investor website here. Westfield was listed on the ASX on 5 July, 2004. David H Lowy and Fred G Hilmer are deputy chairmen for Wesfield (WDC). Read previous Westfield (WDC). Read previous news and stock recommendations for Westfield (WDC). Westfield is involved in shopping centre investment, property management, leasing and marketing, property development, design and construction, funds/asset management. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!