WES
Are WES overvalued at present, they are now only yielding about 2.8% and are near their record highs. Can they maintain their growth?
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Answer
Hi Colin,
WES has been pushed ever higher over recent years by investors looking for “quality safe stocks” almost at any price, similar to Commonwealth Bank (CBA), Goodman Group (GMG) and REA Group (REA). The stocks trading around its highest valuation since COVID making it hard to buy for MM around $74, plus as you say its forecast to yield less than 3% for the next 5-years.
WES has been a strong business that’s continued to deliver for years, producing another solid FY24 trading update in August demonstrating why investors are prepared to pay up for this diverse and defensive business who doesn’t come out with nasty hidden surprises.
- We continue to have interest if/when WES pulls back into the $65 region, only around 10% lower.
