Harvey Norman leads ASX 200 gains as Citi hikes target price
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The news: Harvey Norman was the best performer on the ASX 200 after Citi raised its target price on the white goods retailer, following its better-than-expected financial results on Friday.
The numbers: Shares were up 6.5% to $7.34 at 10:50am AEST, having rocketed 11.5% on Friday. The stock is up 60% over the last 12 months.
Citi retained its 'buy' rating on Harvey Norman and lifted its target price 33% from $5.80 to $7.70.
The context: Citi analyst Adrian Lemme said Harvey Norman's Australian franchise earnings were "well ahead of expectations". The retailer's trading update also indicates sales momentum has continued in Australia, he said, in addition to a "pleasing uplift" in New Zealand.
Citi has lifted its EBIT forecasts by 6-8% in FY26 and FY27, on expectations that the upgrade cycle will continue against a backdrop of upbeat category outlooks and a "resurgent consumer".
The source: Citi research
