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JPMorgan Upgrades Harvey Norman, Shares Surge 6%

JPMorgan analyst, Shaun Cousins, has upgraded Harvey Norman from ‘underweight’ to ‘neutral’ – news which has sent the retailer’s shares soaring by as much 6.9% to $3.58.

The increase is Harvey Norman’s best one-day performance since late 2014.

The broker has reportedly provided four reasons for its positive outlook including; dividend and valuation support, a ‘subdued’ outlook for its current earnings forecast, and ‘modest’ costs from its dairy joint venture.

According to The Sydney Morning Herald,¬†Cousins affirms earnings risk is “skewed to the downside”, however, valuation support is now “emerging at current share price levels”.

JPMorgan has cut its target price from $3.75 to $3.65.

The news follows ~20% decline in Harvey Norman shares over the past year.

Shares in Harvey Norman are currently trading 4.47% higher to $3.50.

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