JB Hi-Fi’s largely pre-guided first half result confirmed sales were down -2%, earnings -9% and profit -9% in the half, with January trading already appearing strong as noted by UBS.
The company announced a $250m off-market buyback, and the broker notes the decision to return surplus cash suggests further surplus capital remains that could fund potential acquisitions and that the company is confident in its outlook.
The company continues to benefit from long-term underlying improvement. Earnings per share forecasts increase 4%, 6% and 7% through to FY24.
The Neutral rating is retained and the target price increases to $54.00 from $51.00.
Sector: Retailing.
Target price is $54.00.Current Price is $53.00. Difference: $1.00 – (brackets indicate current price is over target). If JBH meets the UBS target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
