Wesfarmers gains; Jefferies sees Bunnings' auto push as modest start to expansion

WESFARMERS

16/09/2025 02:17

Updates

** Wesfarmers WES.AX gains as much as 1.4% to A$94.370, highest since August 25

** Stock set for third consecutive session of gains

** Jefferies says co's DIY hardware retailer Bunnings' auto expansion modest but signals broader ambitions, with phase two of the expansion imminent

** Adds Bunnings could gain traction with narrow set of vehicle-specific categories but unlikely to match Super Retail's SUL.AX full range

** Notes Super Retail may consider M&A as defence, but geographic overlap limits options; Peer Bapcor's BAP.AX Burson trade unit seen as "attractive", though unlikely to be sold

** Says expansion expected to mirror Bunnings' phased pet category rollout, with retailer's proven track record of growing total addressable market through new segment entries

** YTD, WES gains 31.8%

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))