The Wesfarmers Ltd (ASX: WES) share price is having a tough month.
Since the start of February, the conglomerate’s shares have lost 9% of their value.
The good news is that one leading broker believes this could be a buying opportunity.
Who is positive on the Wesfarmers share price?
A recent note out of Morgans reveals that its analysts are feeling bullish on the Wesfarmers share price.
According to the note, the broker has retained its add rating with a slightly trimmed price target of $58.50.
Based on the current Wesfarmers share price of $47.77, this implies potential upside of 22% for investors over the next 12 months.
And with Morgans forecasting a fully franked dividend of 162 cents per share in FY 2022, the total potential return on offer stretches to an even more attractive 25%.
What did the broker say?
While Wesfarmers delivered a half year result that was a touch short of its expectations earlier this month, the broker saw enough to remain positive on the future.
It commented: “Wesfarmers’ 1H22 result was largely in line at the underlying NPAT line (+1% vs MorgansF), which was not a surprise with guidance provided in January. However, the result was weaker (-5% vs MorgansF) at the underlying EBIT line.”
“Despite ongoing uncertainty in the operating environment, we think WES is well-placed to benefit when conditions improve and continue to view the stock as a core portfolio holding for long-term investors,” it added.
Overall, the broker believes Wesfarmers could be a great long term option for investors thanks to its “diversified group of retail and industrial brands, solid balance sheet and strong leadership team that will continue delivering value for shareholders.”
The post Top broker tips over 20% upside for Wesfarmers (ASX:WES) share price appeared first on The Motley Fool Australia.
Should you invest $1,000 in Wesfarmers right now?
Before you consider Wesfarmers, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Wesfarmers wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- Analysts name 2 ASX dividend giants to buy
- 5 ASX 200 shares tumbling to 52-week lows today
- Opportunity? 5 ASX 200 shares that traded at 52-week lows today
- The Wesfarmers (ASX:WES) share price just hit a new 52-week low. Is the smart money buying?
- Telstra, Wesfarmers, oil and unemployment: Scott Phillips on Nine’s Late News
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/2qlU5ov
Leave a Reply