The Wesfarmers Ltd (ASX: WES) share price is having a tough month.
Since the start of February, the conglomerate's shares have lost 9% of their value.
The good news is that one leading broker believes this could be a buying opportunity.
Who is positive on the Wesfarmers share price?
A recent note out of Morgans reveals that its analysts are feeling bullish on the Wesfarmers share price.
According to the note, the broker has retained its add rating with a slightly trimmed price target of $58.50.
Based on the current Wesfarmers share price of $47.77, this implies potential upside of 22% for investors over the next 12 months.
And with Morgans forecasting a fully franked dividend of 162 cents per share in FY 2022, the total potential return on offer stretches to an even more attractive 25%.
What did the broker say?
While Wesfarmers delivered a half year result that was a touch short of its expectations earlier this month, the broker saw enough to remain positive on the future.
It commented: "Wesfarmers' 1H22 result was largely in line at the underlying NPAT line (+1% vs MorgansF), which was not a surprise with guidance provided in January. However, the result was weaker (-5% vs MorgansF) at the underlying EBIT line."
"Despite ongoing uncertainty in the operating environment, we think WES is well-placed to benefit when conditions improve and continue to view the stock as a core portfolio holding for long-term investors," it added.
Overall, the broker believes Wesfarmers could be a great long term option for investors thanks to its "diversified group of retail and industrial brands, solid balance sheet and strong leadership team that will continue delivering value for shareholders."
