Tag: ASX:WFD

Shares of WFD are firming today after yesterday’s earnings report failed to inspire any material buying interest.

The company posted a 13.5 % rise in annual profit to US$1.55 billion, shrugging off tough retail conditions and competition from online platforms like Amazon.

Revenue for the year to December 31st rose 17.1% to US$2.1 billion.

Some reports have noted that the lack of specific earnings guidance in yesterday’s announcement has somewhat tempered fresh buying interest.

WFD was added to our Top 20 model portfolio on February 7th at $8.89 and our ALGO engine triggered a buy signal for WFD on February 13th at $8.55.

From a technical perspective, there is a momentum switch-point at $8.75, a break of this price level suggest an extension back into the $9.00 handle.

Westfields

Our ALGO engine triggered another buy signal for WFD at $8.51 into yesterday’s ASX close.

This additional technical buy signal references a “higher low” formation relative to the November lows near $8.15.

Looking at the daily price chart, the gap from the takeover announcement in December has been filled.

This is a key development and suggests the current oversold conditions will likely be met with new buying interest in the near -term

Fundamentally, Unibail-Rodamco, the French retail giant which effected the takeover bid for WFD, has posted a 7.2% increase in 2017 earnings and expects similar growth in 2018.

Since a percentage of the $10.01 takeover price is script, it’s reasonable to expect WFD to get a boost from their result.

WFD was added to our Top 20 Model Portfolio on February 7th at $8.89 per share.

We prefer the long side of WFD at current levels with a medium-term upside target of $9.70.

Westfields

It’s been just under a month since the Westfield board recommended shareholders accept $32 billion takeover from French firm Unibail-Rodamco.

Since then, the share price has softened, has never traded at the cash and script offer of $10.01 per share, and closed at a post-announcement low of $9.18 on Friday.

Part of the recent weakness seems to be tied to the cash component of the deal valued at USD 2.67 per share.

The AUD/USD has risen from .7550 to .7850 since the deal was announced, which roughly corresponds to the 4.5% fall in the WFD share price since December 12th.

With the stock going ex-dividend on February 13th for 16.43 cents per share, we believe WFD is good value in this range for a move back into the $9.80/90 area in the near-term.

Westfield

Unibail-Rodamco (Europe’s largest listed commercial property company) has entered into an agreement to acquire all the outstanding shares in WFD.

The offer consideration is equivalent to $10 per share and represents +17.8% premium to the last close.

Westfield Corp