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.
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.
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.
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…