Barrenjoey slashes EPS estimates on Aussie electronic retailer Harvey Norman

Harvey Norman Holdings

01/03/2023 02:24

** Analysts at Barrenjoey say trading has slowed
considerably for Australia's Harvey Norman Holdings  HVN.AX ,
with Aussie franchise sales only about 8% ahead of pre-covid
levels
    ** Brokerage downgrades co's FY23 EPS estimates by 17% to
reflect poor 1H23 EPS and slower start to 2H; cuts FY24 and FY25
EPS estimates by 9% and 8% respectively
    ** The biggest electronic retailer in Australia slumped more
than 10% on Tuesday after it recorded a 15% drop in first-half
profit
    ** Barrenjoey says co's margins reduced in the first half
considerably as product discounting re-emerged with
telecommunications and other categories performing poorly
    ** However, says HVN's international operations (excluding
NZ) are performing well and offer longer-term growth
opportunity; keeps PT unchanged at A$4.20 
    ** HVN shares fell as much as 3.1% today 
    ** Two of 13 analysts rate the stock "buy" , five "hold" and
six "sell" or lower; their median PT is A$4.00 – Refinitiv data
    ** Stock has fallen 6.8% this year, as of last close 

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