The Wesfarmers Ltd (ASX: WES) share price is sitting at $36.07 today, but may have a fair way to fall over the next 12 months if the expert analysts at Goldman Sachs are on the money. The analysts attended Wesfarmers' June 13 investor day, but came away with quite a few worries about what's left of the investment conglomerate's businesses after it decided to sell supermarkets giant Coles Group Ltd (ASX: COL).
"Macro headwinds remain in line with our prior expectations and, despite the company's positive steps to address headwinds to growth, we came away from the investor day with a more cautious view on the longer term structural issues facing a number of WES' business units," commented the analysts.
As a result of its concerns and taking into account Wesfarmers' takeover interest in Kidman Resources Ltd (ASX: KDR) and Lynas Corporation Ltd (ASX: LYC) the analysts valued the stock at just $30.50 on a blended EV/ EBIT based SOTP and DCF basis.
