Is the Wesfarmers (ASX:WES) share price a buy today?

The Wesfarmers share price is an interesting investment question at the current level.

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Could the Wesfarmers Ltd (ASX: WES) share price be worth looking at right now?

Over the last month the Wesfarmers share price has risen by 6.4% and in the last six months it has risen by 13.6%.

Brokers have been paying attention to the rise of Wesfarmers. The diversified conglomerate recently held an investor day. The broker Macquarie Group Ltd (ASX: MQG) noted the company's increased attention given to commercial customers with its acquisitions of Adelaide Tools and Beaumont Tiles.

Macquarie has given Wesfarmers a price target of $58.12. That suggests the broker doesn't think the share price is going to move much over the next 12 months.

Investor day

At that investor day, Wesfarmers ran through key group segment strategies and a high level update on trading conditions and the performance.

It reminded investors that its primary objective is to provide a satisfactory return to shareholders.

There are a few different goals for the business that helps it achieve those returns. One is anticipating the needs of customers and delivering competitive goods and services. Another is looking after its team members, and providing a safe, fulfilling work environment.

Another factor is taking care of the environment. To this end, it's looking to reduce its scope 1 and scope 2 emissions to net zero for its retailers by 2030 and industrials by 2050. Compared to FY20, it has managed to divert 12% of waste from landfill.

Wesfarmers has four different value-creating strategies for delivering on its shareholder returns goals.

It wants to strengthen existing businesses through its operating excellence and satisfying customer needs.

Wesfarmers seeks to secure growth opportunities through entrepreneurial initiatives.

The company aims to renew the portfolio through value-adding transactions.

It also wants to ensure sustainability through responsible long-term management.

Wesfarmers currently has three key priorities. It wants to develop a market-leading data and digital ecosystem. It wants to invest in platforms for long-term growth. The company also wants to accelerate the pace of its continuous improvement.

Recent trading

Wesfarmers' retail businesses are now cycling the impacts of COVID-19 last year from mid-March.

Compared to 2019, sales are still up with "strong" growth. However, customer demand has remained resilient, but sales have been negative in some months for some businesses because of the strong comparable period last year.

Online growth has moderated as customer traffic to stores has increased, and online penetration has reduced but remains above pre-COVID levels.

Is the Wesfarmers share price a buy?

Whilst Macquarie has a price target of almost $60, Citi has a price target of $45. That suggests a potential decline of more than 20% over the next 12 months.

Citi pointed out that whilst the rollout of more tools stores will grow sales and earnings for the overall business, it is possible that it will eat into some of Bunnings' sales of tools.

Until or unless Wesfarmers reveals acquisitions, Citi isn't going to include that in its forecasts.

According to Citi, the Wesfarmers share price is valued at 28x FY21's estimated earnings.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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