Australia's JB Hi-Fi, Wesfarmers overvalued, Morningstar says

Harvey Norman Holdings

16/12/2024 24:51

** Shares of Australia's JB Hi-Fi  JBH.AX  rise 0.4% while
conglomerate Wesfarmers  WES.AX  gain 0.6% 
    ** Morningstar says Australian retailing industry leaders,
who are perceived well with highly regarded management teams are
leading the recent rebound rally in discretionary retail 
    ** Leading discretionary retailers  JBH.AX  and  WES.AX 
look overvalued to the investment research firm, with stocks up
18.8% and ~6%, respectively, since October  
    ** Investor concerns that cyclically soft liquor sales could
indicate a more structural change in consumer preferences are
weighing on sentiment towards Endeavour  EDV.AX , says
Morningstar
    ** The investment research firm believes meaningful margin
expansion is hard to achieve for most retailers as an uptick in
household savings remain an overhang
    ** In the September quarter, volumes were flat, with
household goods outperforming—underpinning sales growth at JB
Hi-Fi, Harvey Norman  HVN.AX , and Kogan  KGN.AX  - Morningstar
    ** EDV stock gains 0.4%
    

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))