First half results were ahead of expectations. UBS continues to envisage capital management as a catalyst on a 6-12 month view.
Harvey Norman has flagged tailwinds outside of pandemic-inspired demand, in particular a build up in household savings as well as the housing cycle and the shift to regional or suburban locations.
Given the backdrop, UBS retains a Buy rating. Target is reduced to $5.60 from $5.80.
Sector: Retailing.
Target price is $5.60.Current Price is $5.24. Difference: $0.36 – (brackets indicate current price is over target). If HVN meets the UBS target it will return approximately 6% (excluding dividends, fees and charges – negative figures indicate an expected loss).
