At first glance, FY21 results were in line with UBS estimates at the sales line while net profit was below. The final dividend was ahead of the broker’s forecast, at $0.55.
For the first eight weeks of FY22 sales growth was very strong, given tough comparables and, excluding Big W. The outlook for big W is weak with the company expecting EBIT in the first half to be “materially lower” than the prior corresponding first half.
UBS retains a Neutral rating and $39 target.
Sector: Food & Staples Retailing.
Target price is $39.00.Current Price is $40.99. Difference: ($1.99) – (brackets indicate current price is over target). If WOW meets the UBS target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
