Credit Suisse found the Kmart briefing incrementally positive. Improved earnings appears likely in FY22, with most of the final group of Target stores to be converted to Kmart by the end of June.
Credit Suisse observes management appears confident Target will not create a negative earnings surprise. Meanwhile, appreciating house prices and the extension of the government building grant are positive aspects for Bunnings.
The broker retains a Neutral rating and raises the target of $57.32 from $57.04.
Sector: Food & Staples Retailing.
Target price is $57.32.Current Price is $55.51. Difference: $1.81 – (brackets indicate current price is over target). If WES meets the Credit Suisse target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
