The main reasoning for this target is profit forcasting. Yearly...

The main reasoning for this target is profit forcasting.
Yearly EBIT
2021 3,614
2020 2,694
2019 2,404
https://www.wsj.com/market-data/quotes/AU/WES/financials/annual/income-statement

Earnings Before Interest, Taxes, Depreciation, and Amortization
EBITDA Growth 2021 21.34%2020 43.56% 2019 -2.68%2018 -33.58%

EBITDA Growth indicates a recession prior to covid.

1. Note earning we declining before covid in EBITDA

2. in covid the year earnings for 2021. profits skyrocketed which indicates earnings should fall by 30% as covid had an extraordinary effect on corporate profits due to government intervention.

3. A fall in earning by 30% would place the share price at around $38, but then you need to factor in that the recession that was only beginning in 2019.

4. If the recession picks up from 2019 you could wipe around 20 to 30% off profits which would reduce WES profit to around EBIT 1.5 billion and a share price between $25 and $30. This is back to 2016 prices which was an equilibrium economy.

low interest rates have compounded the problem.
1. lower disposable income from higher borrowings
2. Less revenue from investments
3 Less income for investment.
4 A national debt trap for another financial crisis.

This has created a perfect storm for a very bad recession and will accelerate what started in 2018.2019.