UBS has joined MB in its sketicism, at the AFR:
UBS retail analyst Ben Gilbert says Wesfarmers shares have re-rated since the Coles demerger announcement and a series of non-core asset sales and are now trading at 19 times earnings per share, outperforming the ASX200 industrials index by around 13 per cent over the past 12 months.
While the prospect of capital management in the form of a capital return or special dividend is likely to support Wesfarmers’ share price in the near term, Mr Gilbert believes there is a risk the shares will derate after the demerger, which is due to be completed in November.
