WESFARMERS LIMITED (WES)
Share Price Analysis and Chart

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28/08/2026

3

Neutral

$82.00

4.81%

Post a further look, UBS lowers the target price to $82 from $84 and tweaks FY28 EPS forecast down by -4%, FY27 forecast remains unchanged, reflecting lower Bunnings sales growth and weaker lithium price assumptions.

Sales across the first seven weeks of FY27 were generally below forecasts but the analyst remains positive on the quality and resilience of Bunnings, Kmart and WesCEF, but notes slower retail sales momentum.

FY27 net capex guidance of $1.3bn-$1.5bn is also above expectations.

The broker believes the quality of the portfolio is already reflected in Wesfarmers' elevated valuation. Neutral retained.

First read: Wesfarmers' FY26 EBT was in line with expectations, while NPAT beat UBS and consensus due to a lower-than-expected effective tax rate.

Bunnings EBT rose 5.1% y/y and Kmart Group EBT increased 6% to $1.11bn, both broadly in line, while Health was the main miss.

Early FY27 retail trading was softer than UBS and consensus forecasts across Bunnings, Kmart and Officeworks, while FY27 net capex guidance of $1.3bn-$1.5bn was also higher than expected.

Neutral. Target $84.

FORECAST
UBS forecasts a full year FY27 dividend of 232.00 cents and EPS of 273.00 cents.
UBS forecasts a full year FY28 dividend of 244.00 cents and EPS of 286.00 cents.

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01/09/2026

2

Upgrade to Overweight from Neutral

$83.20

6.34%

Jarden adjusts its rating for Wesfarmers to Overweight from Neutral with its target price increased to $83.20 from $79.30 following what is described as a high-quality FY26 result featuring EBIT 1% ahead of consensus expectations.

The company's strategic direction remains unchanged, with the analyst highlighting marginal improvements in the trading update.

Despite macroeconomic uncertainty, the broker views the business as optimally positioned for long-term market share growth, citing significant opportunities across the Kmart marketplace, K Home, and Bunnings' marketplace and appliance expansion.

Management expressed confidence in delivering EBIT growth through 1H27 and the full FY27 period, underpinned by top-line expansion and positive leverage.

The rating upgrade reflects the company's earnings certainty and long-term value proposition following recent stock underperformance, with commentary acknowledging the valuation appears expensive.