The Wesfarmers Ltd (ASX: WES) share price has been a positive performer in 2021.
Since the start of the year, the conglomerate's shares have risen approximately 8%.
This leaves the Wesfarmers share price trading within a whisker of its record high of $56.40.
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Can the Wesfarmers share price keep on climbing?
According to one leading broker, the Wesfarmers share price can still go higher from here.
A note out of Goldman Sachs this morning reveals that its analysts have retained their buy rating and $59.70 price target on the company's shares.
This price target implies potential upside of 6% for its shares over the next 12 months excluding dividends. If you include them, the potential return for investors stretches to just over 9%.
What did Goldman Sachs say?
Goldman Sachs notes that yesterday morning Wesfarmers released an update on its Kmart business.
And while there was a muted response to it from the market, leading to the Wesfarmers share price edging lower, the broker saw positives in the release.
Goldman commented: "Wesfarmers hosted an investor presentation focused on the Kmart business today. While there were no major strategic redirections or investments announced, it offered a reassurance of ongoing strategy implementation, maintaining industry leadership and an update of early signs of trading from converted Target stores."
Some key takeaways from the update that Goldman highlighted include:
"Scale of sourcing and offer across Australia is seen as a key advantage that Kmart has vs. similar operators. Management believes that scale is likely to improve further as Target stores are converted across."
"The aspirational target first introduced in 2017 (A$10bn in sales, A$1bn in EBIT and 6 stock turns per annum) has been maintained, along with indications of addressable market opportunities across a range of categories."
"90% of the stores have been converted into the Plan C format which includes mobile fixtures and dynamic space allotment based on demand. These formats help Kmart evolve without need for significant refurbishments."
Overall, the broker was happy with the update and continues to see the Wesfarmers share price as good value at the current level.
