Bell Potter upgrades JB Hi-Fi to 'buy' after market selloff
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The news: Bell Potter has upgraded its recommendation on consumer electronics retailer JB Hi-Fi, saying the recent market selloff has left the stock well valued.
The numbers: Bell Potter upgraded JB Hi-Fi from 'hold' to 'buy' and retained its target price of $99.
JB Hi-Fi shares last closed at $90.35, having dropped from a high of more than $102 in early February.
The context: Bell Potter analysts said JB Hi-Fi is "one of the most productive retailers globally" with leading revenue per square metre and operating margin.
What they said: "We also strongly believe that [JB Hi-Fi] is well placed to grow supported by the market leadership as the technology category continues to win a larger share of wallet, despite some near-term gross margin pressures," the analysts said.
The source: Bell Potter research
