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JB Hi-Fi Shares Leap As Analysts Upgrade Stock

Shares in JB Hi-Fi have jumped by more than 5 per cent this morning, as a number of brokers upgraded the company following yesterday’s report of record sales and profits.

As of 12:30pm, shares were sitting at $48.84.

Goldman Sachs raised its target price by 9.2 per cent to $40.30, USB lifted it from $44 to $46, Citi by 10 per cent to $55, and Morgans Financial by 6 per cent to $53.

“The investment thesis for JB Hi-Fi had historically been driven by store and online growth, category growth, driven by technology, and category expansion,” UBS analyst Shaun Cousins said in a note.

“The question now, as with other discretionary retailers that have enjoyed EBIT margin expansion during COVID, is where do EBIT margins settle?”

For the half year to December 31, JB Hi-Fi’s net profit jumped an impressive 14.6 per cent, to $329.9 million.

For the December quarter, the company’s earnings before interest and tax were up by 14 per cent, to $479.2 million, while sales increased by 8.6 per cent to reach $5.3 billion.

CEO Terry Smart said that during the six months, “trading conditions started to normalise following two years of COVID-related disruptions.”


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