Harvey Norman shares slide after Goldman Sachs downgrade
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More news: Shares in Harvey Norman fell on the ASX after Goldman Sachs downgraded its rating on the white goods retailer to 'sell' as it warned of heightened competition in Australia and New Zealand.
Harvey Norman shares were down 3% to $4.49 by 2:40pm AEDT, having added more than 20% since January.
Goldman Sachs downgrades Harvey Norman, slashes target price
The news: Goldman Sachs downgraded Harvey Norman ahead of the white goods retailer's November trading update, as competition heats up in Australia and New Zealand.
The numbers: Goldman Sachs downgraded Harvey Norman from 'neutral' to 'sell', and cut its target price from $4.50 to $4. Harvey Norman shares closed at $4.63.
The context: Goldman Sachs analysts noted that Australia's electronics and furniture industry continues to be "modest" while JB Hi-Fi and Officeworks have demonstrated consistent share gains.
Especially in the tech category, JB Hi-Fi, Officeworks and Amazon AU are "market share winners", the analysts said, while telco shops, independent stores and Harvey Norman are "donors".
They also flagged Harvey Norman's market share loss in New Zealand, with JB Hi-Fi's "more aggressive" store roll-out expected to intensify competition "in an already difficult market".
The source: Goldman Sachs research
