Analysts see long-term value in Aussie retailer Harvey Norman; hike PTs

Harvey Norman Holdings

31/08/2023 21:39

** Analysts with Jefferies and Citi see long-term business
value and share upside for Australian electrical and home
retailer Harvey Norman  HVN.AX  
    ** HVN's FY23 results beat market estimates on Thursday,
sending the shares 5.2% higher
    ** Citi sees "numerous tailwinds" including house price
recovery, a warmer summer, and upcoming stage 3 tax cuts from
next year for the wealthy
    ** Brokerage hikes PT to A$4.60 from A$3.70, upgrades rating
to buy from neutral
    ** Says expect shares to go further up given improved
outlook and reasonable valuation
    ** Jefferies hikes PT to A$3.40 from A$3.20, retains
"underperform" rating
    ** Jefferies sees "long-term" value in HVN, but warns that
high living costs and high interest rates are resulting in
demand for discretionary goods
    ** Both Jefferies and Citi hiked their earnings estimates
through to FY25
    ** Two of 13 analysts rate HVN "buy" or higher, seven "hold"
and four "sell" or lower; their median PT is A$3.60 – Refinitiv
data
    ** HVN down 2.2% this year, as of last close

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))