Insights

What is the outlook for the Woolworths (ASX:WOW) share price?

Where next for the Woolies share price?
The post What is the outlook for the Woolworths (ASX:WOW) share price? appeared first on The Motley Fool Australia. –

The Woolworths Group Ltd (ASX: WOW) share price has been a strong performer in 2021.

Since the start of the year, the retail conglomerate’s shares are up a sizeable 16%.

In fact, adjusting for the demerger of Endeavour Group Ltd (ASX: EDV), the Woolworths share price has just reached a record high of $39.39.

What is the outlook for the Woolworths share price?

Given their strong performance this year, investors will no doubt be wondering where its shares are heading from here.

Unfortunately, the outlook for the Woolworths share price is not overly positive in the near term based on recent broker notes.

For example, a recent note out of Citi reveals that its analysts have a neutral rating and $37.60 price target on its shares. This implies potential downside of 4.5% over the next 12 months.

In addition to this, at the start of the month, the team at Morgan Stanley downgraded Woolworths shares to an equal-weight rating with a $36.50 price target.

According to the note, the broker made the move on valuation grounds. Though, on a positive note, its analysts believe the Woolworths post-demerger capital management will come in at the high end of its $1.6 billion to $2 billion range. It suspects that these funds will be returned to shareholders via an off-market buyback.

Finally, another broker that recently downgraded the Woolworths share price to a neutral rating was Goldman Sachs. It has put a $36.80 price target on its shares. Once again, valuation was the key driver of this downgrade.

The broker explained at the end of June: “While the short-term catalyst of an off-market buyback remains in play, we are taking advantage of the current strength in WOW to downgrade to Neutral. Since we upgraded WOW to a Buy rating on 7 March 2021 the share price has appreciated 14.1% prior to the demerger vs. the market up +8%.”

The post What is the outlook for the Woolworths (ASX:WOW) share price? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Woolworths right now?

Before you consider Woolworths, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woolworths wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

Has Dry July hit the Endeavour (ASX:EDV) share price?
Which ASX 200 shares are winning from latest retail trade figures?

The Woolworths (ASX:WOW) share price is surging to record highs
Woolworths (ASX:WOW) share price rises amid $4m start-up support
Woolworths (ASX:WOW) share price outperforms following digital wallet launch

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 no position in any of the stocks mentioned. 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 Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!