The Wesfarmers Ltd (ASX: WES) share price has risen by more than 60% in the past five years, which is a solid result for shareholders. It's worthwhile asking what could happen over the next 12 months for the ASX blue-chip share.
The business has delivered excellent profitable growth at Kmart and Bunnings. Other businesses are also a slice of the Wesfarmers pie including Officeworks, Target, Priceline, InstantScripts, other healthcare businesses, Wesfarmers chemicals, energy and fertilisers (WesCEF), and an industrial and safety division.
Share price gains are not guaranteed, so let's take a look at whether experts believe the business can deliver capital growth for investors if they invested $10,000.
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Wesfarmers share price target
A number of different experts have views on where they think the Wesfarmers share price will go in the coming months.
A price target is where the analysts think the share price will be in 12 months from the time of the investment call.
The broker UBS currently has a price target of $90 on the business, implying a possible rise of just over 10%, at the time of writing. That would turn $10,000 into around $11,000.
According to CMC Markets, of six recent ratings on the business, the average analyst price target is $84.89, suggesting a possible rise of more than 4% in the next 12 months. That would add an extra $400 to a $10,000 investment, becoming $10,400.
There are a few ratings that imply a pleasing rise. For example, one Wesfarmers share price target is $92.6, implying a possible rise of 14% from where it is at the time of writing. However, there are a couple of recent ratings that suggest the business could drop by just over 10% in the next year, from where it is today.
What are experts seeing with the retail giant?
UBS recently commented on the company after it delivered its AGM update. The broker commented on the divisions of the business, each of which has a part to play for the Wesfarmers share price:
Consumer demand remains positive but cost of living pressures are a challenge for some consumers & businesses (weighing on demand & investment). WES divisions continue to invest in productivity initiatives to offset higher costs & maintain competitive prices. WES retail divisions well positioned given value credentials & broad ranges.
…Bunnings enjoys growth options across category, channel & customer, with these capital light and hence expanding ROC [return on capital].
Kmart expected to continue to benefit from rising customer numbers, transaction frequency & category participation. UBS [is] confident the Kmart value credentials and Anko product development capabilities can support sales in different consumer environments.
Officeworks: As part of a reset, WES announced A$15-25m in one-off costs due to lower operating margins and costs associated with an operating model reset & ERP replacement programme. This is expected to drive cost savings to help Officeworks better execute its EDLP offering and increase focus on the technology category.
WesCEF: Covalent Lithium refinery continues. As per FY25 results, Chemicals & Energy EBT to be impacted by higher natural gas costs and lower LPG content.
Health: Priceline is delivering strong network sales growth due to improved retail execution, network expansion, price reductions and new ranges. Wholesale improving yet competitive.
Ultimately, UBS is projecting a possible net profit of $2.79 billion from the company in FY26, with potential further profit growth in the coming years, which is a tailwind for the Wesfarmers share price in the longer-term.
