Credit Suisse expects the company’s retail market position and solid trading through the fourth quarter will support the FY20 results, due on August 20.
As the Target/Kmart strategy continues to develop, the broker envisages diminishing downside risks to the value of Kmart Group. However, linking of Catch with these businesses is potentially providing an additional engine of growth.
Meanwhile, the industrials performance is likely to be influenced by a range of factors. Neutral rating retained. Target rises to $44.47 from $38.25.
Sector: Food & Staples Retailing.
Target price is $44.47.Current Price is $47.73. Difference: ($3.26) – (brackets indicate current price is over target). If WES meets the Credit Suisse target it will return approximately -7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
