Morgan Stanley upgrades Wesfarmers stock to Equal-weight

Published on 10/08/2026 at 11:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

FY26 revenue rose 3.40 percent to AUD 47.27 billion. Wesfarmers stock costs EUR 47.24 on October 8, 2026 versus EUR 47.60, a minus 0.76 percent change.

Wesfarmers, AU000000WES1, Illustration mit AI erstellt.

Morgan Stanley had upgraded Wesfarmers to Equal-weight from Underweight in mid-September, according to FNArena on October 7, 2026. The change puts margin resilience at the center of the Wesfarmers stock debate while the company works through softer consumer conditions.

Stable margins support the upgrade

FNArena reported that Morgan Stanley based the upgrade on relatively stable margins. The same analysis said Wesfarmers retail businesses have historically been less cyclical than the broader retail market, giving the diversified group a buffer when household spending weakens.

That interpretation matters because the fiscal 2026 result combined moderate sales growth with stronger underlying earnings. According to Motley Fool, revenue increased 3.40 percent to AUD 47.27 billion, while underlying net profit excluding significant items rose 8.30 percent to AUD 2.87 billion in fiscal 2026.

Retail earnings carry the case

The earnings mix gives the margin argument practical weight. Bunnings revenue increased 4.10 percent to AUD 20.40 billion in fiscal 2026, while Kmart revenue rose 2.80 percent to AUD 11.75 billion, according to Motley Fool.

Wesfarmers also raised its full-year fully franked dividend 7.80 percent to AUD 2.22 per share for fiscal 2026. For investors, the comparison is clear: earnings grew faster than group revenue, but the valuation still depends on whether that operating resilience carries into fiscal 2027.

Stock remains below its yearly high

Wesfarmers was last at AUD 76.04 on the ASX on October 8, 2026 at 4:10 p.m. AEST. Its AUD 70.80 to AUD 94.70 52-week range leaves the price AUD 18.66 below the high, while the market capitalization stood at AUD 86.3 billion on the same date.

At Lang & Schwarz, Wesfarmers stock was trading at EUR 47.24 on October 8, 2026 at 11:03 a.m. CEST, minus 0.76 percent versus the prior close of EUR 47.60. The further course of trading is shown by the continuously updated real-time quote of Wesfarmers stock.