Morgans leaves estimates largely unchanged after FY21 results and retains its Hold rating, while raising the price target to $54 from $52.23.
The analyst points out like-for-like (LFL) sales growth was negative in the first few weeks of FY22 to date, reflecting extremely strong trading at the start of FY21. Despite this, the LFL performance compared to FY19 was positive, especially in The Good Guys.
The broker expects LFL’s to track negative throughout FY22, with the gross margin coming under some pressure and notes that while the company performs relatively well in lock downs, it performs better outside them.
Sector: Retailing.
Target price is $54.00.Current Price is $49.53. Difference: $4.47 – (brackets indicate current price is over target). If JBH meets the Morgans target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).
