Bullish broker notes on demerger
Brokers have provided notes regarding yesterday’s update on Woolworth’s demerger plans with the Endeavour Group to create two independent and ASX-listed companies.
Macquarie noted that Woolworths would maintain an ongoing partnership with Endeavour and retain a 14.6% shareholding. The broker notes that Woolworths will have a positive net cash position of $75 million post demerger, while approximately $1.4 billion to $1.5 billion of net debt will sit with the Endeavour Group business.
With an improved balance sheet, the broker believes Woolworths will explore capital management options and may return up to $1.6 billion to $2.0 billion to shareholders. With that in mind, Macquarie retained an outperform rating with a target price of $44.50.
Similarly, Morgan Stanley highlighted the plans for potential capital management. Its earnings estimates for the company remain unchanged, retaining its overweight rating with a $44.00 target price.
Add to My Watchlist
What is My Watchlist?
 (20min delay)
|
|||||
|
Last
$31.51 |
Change
-0.320(1.01%) |
Mkt cap ! $38.49B | |||
| Open | High | Low | Value | Volume |
| $31.75 | $31.88 | $31.51 | $61.54M | 1.946M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 15434 | $31.51 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $31.58 | 118 | 1 |
View Market Depth
| Last trade - 16.10pm 08/08/2025 (20 minute delay) ? |
| WOW (ASX) Chart |