WESFARMERS LIMITED (WES)
Share Price Analysis and Chart

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28/08/2026

5

Sell

$70.00

-4.79%

Post another look, Citi sees several emerging headwinds for Wesfarmers following the FY26 result, including slower 2H growth at Kmart, higher FY27 project costs, weaker momentum at Officeworks and increases in net interest expense and the tax rate.

Bunnings remains resilient, helped by favourable July weather, although Citi expects earnings growth to slow and drive a further de-rating.

FY27 NPAT forecast is lowered by around -2% and FY28 by around -4%. Citi retains Sell and raises the target price to $70.00 from $69.

First take: Wesfarmers' FY26 group EBIT of $4.49bn was in line with Citi and around 1% ahead of consensus, with Bunnings, Kmart and Officeworks beating expectations, while WesCEF and Other were weaker.

Bunnings EBIT was around 1% ahead of Citi, and early FY27 sales growth is running slightly above the 3.9% recorded in 2H26, although unseasonably dry July weather provided a benefit.

The analyst highlights softer early trading at Kmart and Officeworks relative to consensus expectations, while FY27 capex is guided to $1.3–$1.5bn and net interest expense is expected to increase.

The market's reaction to the FY26 result is difficult to call, the broker states, given the stock had fallen 10% ahead of today with the market looking for softness in Bunnings. The broker believes the drier weather has obscured the update.

On the trading updates, the stock may trade slightly lower.

Sell rated. Target $69.

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01/09/2026

2

Upgrade to Overweight from Neutral

$83.20

13.17%

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.