Credit Suisse upgrades 1H estimates after Harvey Norman’s 1Q sales and profits comfortably exceeded expectations. In identifying a point of difference with JB Hi-Fi ((JBH)), the analyst points to the value-adding property portfolio and longer-term offshore growth.
The broker notes, that with the exception of Malaysia, all regions are now free to trade. Share price outperformance is considered unlikely in the face of declining earnings over FY22 and FY23, estimates the analyst. Neutral rating and target eases to $5.61 from $5.65.
Sector: Retailing.
Target price is $5.61.Current Price is $5.10. Difference: $0.51 – (brackets indicate current price is over target). If HVN meets the Credit Suisse target it will return approximately 9% (excluding dividends, fees and charges – negative figures indicate an expected loss).
