Analysts cut PT on Aussie electronics retailer JB Hi-Fi on rate-hike headwinds

JB Hi-Fi

26/10/2023 19:56

** Analysts at Jefferies and Citi cut price target on
Australian electronics retailer JB Hi-Fi Ltd  JBH.AX  after its
mixed first-quarter trading update
    ** Sticky inflation and high interest rates have resulted in
consumers cutting down on discretionary spending, impacting
retailers like JBH
    ** Jefferies cuts PT to A$37.00 from A$40.00, retains
"underperform" rating; Citi trims PT to A$48.00 from A$51.00,
maintains "neutral" rating
    ** JBH on Thursday reported declines in sales growth for
Australia and The Good Guys segments in Q1
    ** Jefferies continues to expect discretionary retailers to
"come under significant pressure" if the central bank hikes
rates
    ** Citi says strength in JBH Australia is encouraging, but
potential rate hikes in November and December present challenges
    ** Three of 13 analysts rate JBH "buy" or higher, four
"hold" and six "sell" or lower; median PT A$45.00 – LSEG data


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