It's been a fantastic day so far for ASX shares and the S&P/ASX 200 Index (ASX: XJO). So far this Thursday, the ASX 200 has gained a pleasing 0.76% to around 7,050 points. But what is the Wesfarmers Ltd (ASX: WES) share price doing?
Wesfarmers shares are enjoying a similar experience to the overall market as it currently stands. The ASX 200 blue-chip retail conglomerate is presently trading at $47.68 a share, up 0.85% for the day so far.
So these gains could just be a consequence of the goodwill we see across the share market today. But it's also possible investors are expecting good things from the company when it reports its full-year earnings for FY2022 tomorrow.
Yes, Wesfarmers is scheduled to give investors a look at its books tomorrow, 26 August. Optimism for these results might be stemming from some recent broker opinions on the company.
As my Fool colleague James covered earlier this month, ASX broker Morgans is expecting some good news.
Why are ASX 200 investors buying into Wesfarmers shares today?
The broker has a 12-month share price target of $58.40 on Wesfarmers shares today. If this were to be realised, it would result in a pleasing 22.7% upside from where the shares trade today.
Inflation is ravaging the fortunes of many ASX 200 shares in 2022. Just look at what is happening to the Woolworths Group Ltd (ASX: WOW) share price today, for example. But Morgans reckons Wesfarmers has "one of the highest quality retail portfolios in Australia" and a "highly regarded management team."
As such, the broker thinks the company will be able to navigate the current challenging environment. In addition, Morgans is also expecting a final and fully franked dividend of 85 cents per share tomorrow.
If that is indeed announced, it would bring the company's full-year dividend to $1.65 per share. Morgans is also pencilling in even better full-year dividends of $1.81 per share for FY23.
So given these bullish predictions, perhaps it's no surprise investors are confident that tomorrow will be a good day for the company and its shareholders. But we shall have to wait and see what the company comes up with.
At the current Wesfarmers share price, this ASX 200 blue-chip share has a market capitalisation of $43.7 billion, with a dividend yield of 2.61%.
