The Woolworths Group Ltd (ASX: WOW) share price has continued its slide over the past month.
So much so, the supermarket giant's shares are down 8% since this time in October.
Where next for the Woolworths share price?
The good news for shareholders (and prospective shareholders) is that most brokers believe that the company's shares are good value at current levels.
In fact, none of the major brokers have a sell rating on Australia's largest retailer's shares.
The worst rating is a neutral rating and $31.25 price target from the team at UBS. But even that is almost 4% ahead of the current Woolworths share price of $30.10.
And if you throw in an expected 3.1% dividend yield in FY 2025, you're looking at a worst-case broker scenario of a 7% return.
This appears to suggest that downside risk is minimal from here onwards. But what about upside?
What about the bulls?
There are a number of other brokers that see potential for the Woolworths share price to rise strongly from current levels.
One of those is Morgan Stanley, which has an overweight rating and $38.00 price target. This implies potential upside of 26% for investors over the next 12 months.
To put that into context, a $5,000 investment would turn into approximately $6,300 next year if Morgan Stanley is on the money with its recommendation.
Elsewhere, the team at Goldman Sachs is equally bullish and believes that concerns over regulatory action has been overdone and created a buying opportunity.
A recent note reveals that the broker has a buy rating and $36.20 price target on its shares. This suggests that upside of 20% is possible for investors buying in at current levels.
Commenting on the ACCC Supermarkets Inquiry, Goldman said:
None of the listed areas of further deep-dive are a surprise based on the initial scoping/material submitted to ACCC and channel checks. […] Net net, while we do not take any view on the final outcome, we remain of the view that earnings and valuation risks from the Inquiries are sufficiently priced in and reiterate Buy WOW and Neutral COL.
As for its buy rating, Goldman believes that its shares are attractively priced given the discount they trade at compared to historical multiples. It explains:
While WOW is facing transition challenges as its new CEO recalibrates WOW's strategy against a value consumer, we believe that WOW's structural advantages of its store network, scaled online position and leading data/analytics capabilities will enable market share wins in the medium term. WOW is FY26 P/E of ~21x vs historical avg 26x.
Overall, this could make the retail giant one to consider in December.
