tradingkey.logo

BUZZ-Australian conglomerate Wesfarmers gains; MS expects Bunnings to outperform

ReutersJan 29, 2025 2:50 AM

** Shares of Australia's Wesfarmers WES.AX rise 1.2% to A$76.37

** Stock gains as much as 1.5% to A$76.58 earlier in the day, hitting its highest since late Aug. 2024

** Analysts at Morgan Stanley expect the conglomerate's hardware chain Bunnings to outperform rival Metcash MTS.AX in 1H25, owing to its over-exposure to trade services

** Expect Wesfarmers' Kmart operations to continue to benefit from current trading conditions, potentially from recent underperformance in the Smiggle brand, owned by Premier Investments PMV.AX

** Brokerage expects market to look out for commentary by WES on online competition from rivals such as PDD-owned PDD.O Temu, and Amazon AMZN.O

** Look for commentary on tariff impacts to Kmart, potential to grow exposure to underutilised factories in China - MS

** Brokerage has "underweight" rating on WES and A$60.7 PT

** Stock up 6.7% YTD

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Related Articles

KeyAI