Wesfarmers' underlying earnings missed Morgans by -5%, following weaker than expected earnings from most divisions. Operating
cash flow fell -30% due mainly to higher inventory, supply chain disruptions, higher transport costs and labour constraints.

These factors are expected to persist into the second half. But despite ongoing uncertainty in the operating environment, the broker believes the company is well-placed to benefit when conditions improve.

Target falls to $58.50 from $60.80, Add retained.


 

Sector: Food & Staples Retailing.

Target price is $58.50.Current Price is $50.30. Difference: $8.20 - (brackets indicate current price is over target). If WES meets the Morgans target it will return approximately 14% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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