The Australian residential market appears to be stabilising and Macquarie believes Bunnings can continue to outperform as it expands its ranges, rolls out stores and increases the trade component.
The broker also notes some improvement in loan approvals and credit growth for owner-occupiers. This should all be positive for sales at Bunnings. Outperform rating and $37.13 target maintained.
Sector: Food & Staples Retailing.
Target price is $37.13.Current Price is $35.61. Difference: $1.52 – (brackets indicate current price is over target). If WES meets the Macquarie target it will return approximately 4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
