Wesfarmers standing defensive amid disruptive retail backdrop, says Morningstar
Analysts at Morningstar say Australia's Wesfarmers WES.AX is proving to be a defensive stock during a time of a very disruptive retailing environment
Says WES's earnings have been less volatile compared to other large-cap cyclical stocks over recent years
Lifts fair value estimate on Australia's largest conglomerate by 30% to A$58; lowers uncertainty rating to "low" from "medium"
Morningstar expects annual earnings growth at Wesfarmers to average 8% over the next five years, supported by lithium hydroxide sales beginning and rebound in lithium prices
Believes market is much more optimistic around Wesfarmers' forecast
Also forecasts company's Bunnings business to grow faster than the hardware retailing sector
Despite our large fair value upgrade, shares are significantly overvalued - Morningstar
Stock up 17.6% YTD
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