Woolworths (WOW) Stock Recommendation

Woolworths (WOW) has a Neutral 1 stock recommendation and a share price target of $23.06 by stock analyst and investment banker UBS. UBS also values Woolworths at $21.51 using their DCF and SOP average. They view the retailer as performing well and they "remain comfortable with our FY07 NPAT forecast being at the top end of the 16-21% growth guidance range". However, UBS' top picks in the retail sector are MTS, BBG, JBH and WOW respectively.

Woolworths (WOW) Stock Recommendation

ABN Amro have upgraded their recommendation for the Woolworths (WOW) stock with a share price target of $22.30. The stockbroker has noted that there are further gains to be had as duplicate costs are set to be eliminated this year. Supermarket margins have increased to above 5 percent which drove the record profit level. Meanwhile, Credit Suisse have rated the stock as Underperform with a stock price target of $19.00. They see the stock as overpriced and have commented that this year was a tough year.

Defensive Stock Portfolio

Macquarie Research Equities (MRE) note that ""

With investors increasingly risk averse, share prices are at risk in this reporting season if profit delivery does not match the market’s expectations. This change in investor risk appetite driven by concerns over the outlook for global growth and the continued increase in cash rates around the world (ECB and Bank of England the most recent) is impacting on market valuations.

UBS: Woolworths Limited WOW Recommendation

UBS has a Neutral 1 Recommendation on Woolworths Limited (WOW) with a price target of $18.80. UBS valued WOW using the average of a DCF & SOP.

Share Price and Cost Pressures Intensifying… Where are the Risks?

Macquarie Research Equities (MRE) have conducted an extensive analysis of stocks that are at risk of earnings downgrades due to increasing cost pressures. While softer revenues are a problem, the real concern lies with accelerating cost growth that is effectively eating into company margins. Against this backdrop, MRE believe that rising costs present an increasing risk to company Earning Per Share (EPS) growth forecasts for FY06.

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