Woolworths (WOW) Stock Recommendation

Woolworths (WOW) have had their stock recommendation upgraded to Buy 1 with a share price target of $24 from stock analyst, UBS. Their price target is derived by applying the cost of equity less dividends to their valuation. Woolworths is UBS' top pick of the Food retailers followed by MTS. The upgraded rating is based on their view that industry conditions are working in the favour for WOW - "industry dynamics in food & liquor retailing are ideal for WOW currently. Inflation is rising, CML is just embarking on a major overhaul that could disrupt its front end operations & WOW has cleared the major implementation hurdles on supply chain & is now accumulating significant net savings". They also believe that " ML can not afford to be too aggressive on price as it will have to bank a significant proportion of forecast cost savings to the bottom line to achieve its FY08 EPS target."

Woolworths Limited is listed on the Australian Stock Exchange (ASX) under stock code . You can view their investor website here. WOW was listed on the ASX on 12 July, 1993. Woolworths (WOW) is involved in food, general merchandise and specialty retailing through chain store operations. James A Strong is the current Chairman and Michael Gerard Luscombe is the Managing Director and CEO of Woolworths. Read previous news and stock recommendations for Woolworths (WOW). 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!