** 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
(Reporting by Rishav Chatterjee in Bengaluru)
((Rishav.Chatterjee@thomsonreuters.com;))
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