A: Thanks for the questions.

 

I’ll start by a quick recap on what the major brokers say (according to FN Arena);

 

Woolworth: 3 buys/1 neutral/3 sells – target price $26.18 cw last price of $26.31

CSL: 6 buys/1 neutral – target price $140.77 cw last price $140.40

Cochlear: 4 neutrals, 2 sell – target price $142.97 cw last price $174.65.

 

CSL and Cochlear are fabulous companies,  trading on very high multiples. The market seems scared to sell them, since there are so few companies that can demonstrate the growth record they have.  On the basis of the broker valuations, I would be inclined to take profits (moreso with Cochlear than CSL). I would, however, look to establish new buying points.

 

Woolworths is in a different category. Unfortunately, it is an industry facing headwinds as competition intensifies. That said, I was impressed with the quarterly sales results (particularly the improvement with BigW) and I think the rally of around 3% in the share price is appropriate. They have momentum and are probably a hold – but I think it is a sector to remain underweight in.

 

regards