Jefferies lowers PT on Australia's Wesfarmers as valuation tops out

WESFARMERS

30/10/2025 20:17

** Jefferies expects Australia's Wesfarmers  WES.AX to maintain steady single-digit earnings growth, supported by solid sales and productivity gains

** Flags the stock is fully valued and that leaves limited upside; believes the conglomerate is being impacted by the recent high inflation report

** Trims PT to A$82.50 from A$83; WES closed over 7% lower at A$86.13

** Adds co's sales trends are broadly consistent with August trading update and its forecasts, but one-off costs and some trading issues would weigh on earnings at Officeworks segment

**  Cost pressures present challenges for businesses but productivity investments continue to help to offset, adds brokerage

** Maintains "hold" rating on stock

** Stock has gained over 20% YTD

 (Reporting by Rishav Chatterjee in Bengaluru)

 ((Rishav.Chatterjee@thomsonreuters.com))