UBS resumes coverage of JB Hi-Fi with a Neutral rating and $50 target. The shifting of spending patterns during the pandemic has buoyed the stock as consumers initially spent money on technology and then more broadly on entertainment.
This drove gross margin expansion. The broker also notes The Good Guys was improving prior to the pandemic because of changes to merchandise and this supported sales and margins via premiumisation.
Sector: Retailing.
Target price is $50.00.Current Price is $47.74. Difference: $2.26 – (brackets indicate current price is over target). If JBH meets the UBS target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
