Wesfarmers downgraded to ‘sell’ after cash splash
Wesfarmers shares have been hit with multiple downgrades, as analysts look past the generous payout that sparked a rally on Wednesday and focus on the tough operating environment several of the conglomerate’s divisions are facing.
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The conglomerate, whose business spans from coal to supermarket, reported net profit after tax of $2,689 million, up 18.9 per cent from 2013. It lifted its dividend to almost $3.4 billion and reported a $1.1 billion profit from the sale of its insurance arm.
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Wesfarmers shares spiked 3.8 per cent on Wednesday as investors warmed to the cash splash, but the shares were down 1.3 per cent at $45.06 in early trade on Thursday.
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Despite the huge payout, Deutsche Bank downgraded the stock from ‘hold’ to ‘sell’ on Thursday, highlighting the tough outlook for Target, and the Chemicals, Resources and Industrial & Safety divisions. Sydney Morning Herald – Read more…
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