Analysts from Macquarie have increased the price target on Wesfarmers (ASX:WES), Australia’s retail giant, by 5.6% to A$57/share.

The expected earnings of the company have also been revised upwards, in the range of 5% to 7.2% for the financial years 2025 and 2026.

This upgrade results from higher sales and margins from its Bunnings chain.

Wesfarmers, with Bunnings as its ‘jewel in the crown’, owns one of Australia’s supreme retail assets.

However, the sales productivity of Bunnings remains lower than its U.S.

competitors, Home Depot and Lowe’s, indicating more upside potential, according to Macquarie.

The shares of Wesfarmers are currently down by 1%.

Wesfarmers (ASX:WES) is one of Australia’s largest retail companies, with a variety of business operations.