Citi trims PT on Australia's Wesfarmers on lower lithium prices

WESFARMERS

22/05/2025 23:20

** Citi lowers PT on Australian conglomerate Wesfarmers WES.AX to A$60.00 from A$61.00; retains "sell" rating

** Brokerage also lowers its EBIT forecasts by 1% and 3% for FY25 and FY26, respectively

** Forecasts cut on lower lithium prices; brokerage sees further downside risk if prices do not recover

** Citi now sees EBIT loss in lithium of A$87 million  ($55.78 million) in FY26 and a profit of A$44 million in FY27, given expected recovery in price and production ramp up

** Brokerage also sees "potential for disappointment" for company's home improvement business, Bunnings

** About 70% of Wesfarmers' enterprise value is generated from Bunnings - Citi

** Two of 14 analysts rate the stock "buy" or higher, five rate "hold" and seven rate "sell" or lower; their median PT is A$70.10, according to data compiled by LSEG

** WES up 16.16% YTD, and last closed at A$83.09

($1 = 1.5598 Australian dollars)

 (Reporting by Nichiket Sunil in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com;))