Can Woolworths shares reach $40 by Christmas?

What's on the cards for this supermarket giant's shares between now and the end of the year?

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Woolworths Group Ltd (ASX: WOW) shares have been having a tough time in recent months.

For example, since the end of August, the retail giant's shares have lost over 10% of their value.

But could a rebound be on the cards before the end of the year? Could the Woolworths share price climb back to the $40.00 mark? Let's see.

Can Woolworths shares hit $40 by Christmas?

Firstly, it is important to note that it is impossible to predict short-term movements by shares. And with just four weeks to go until Christmas, we don't have much time to work with.

Outside that, is it actually plausible that Woolworths shares could reach $40.00 under any timeframe?

Well, the good news is that the answer to that is yes. For example, Goldman Sachs currently has a conviction buy rating and a $42.40 price target on them.

So, clearly, it is possible. But what about in such a short space of time? Let's have a look.

Getting to $40

Woolworths shares are currently fetching $34.16. This means they would have to rise 17% to get to our target.

There have been a number of occasions this year when the company's shares have risen 7% to 10% in a short period of time. However, 17% might just prove to be a little too much of an ask by Christmas even if the stars were to align for Woolworths.

Nevertheless, with Goldman Sachs believing that the company would make a good long-term investment, it might be better to focus on that rather than short-term gains. It recently commented:

We are Buy rated (on Conviction List) on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as pass through any cost inflation to protect its margins, beyond market expectations. The stock is trading below its historical average (since 2018), and we see this as a value entry level for a high-quality and defensive stock.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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