JB Hi-Fi rebounds as analysts see value after selloff
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More news: JB Hi-Fi recovered much of Monday's selloff in early trade after Macquarie and Morgans analysts raised their ratings and target prices on the electronics retailer.
Shares were up 5.9% to $114.19 at 10:50am AEST, having shed 8.4% on Monday.
Macquarie, Morgans upgrade JB Hi-Fi after sharp selloff
The news: Analysts have bumped up their ratings on JB Hi-Fi after the electronics retailer slumped 8.4% on Monday following the release of its full-year results.
The numbers: Macquarie upgraded JB Hi-Fi from 'neutral' to 'outperform' and raised its target price 5% from $112 to $118. Morgans upgraded the stock from 'sell' to 'trim' and lifted its target price from $92 to $95.
Bell Potter retained its 'buy' rating and increased its target price 4% from $114 to $119.
JB Hi-Fi shares last closed at $107.83 after the company broadly met market expectations for the 2025 financial year, and announced the departure of its chief executive Terry Smart.
The context: Macquarie analysts called Monday's selloff an "overreaction", with JB Hi-Fi "well-placed in a sector seeing structural tailwinds". They noted that comparable sales growth in Australia has remained in the mid-to-high single-digits over recent periods, and they continue to see growth over the medium term.
The analysts also said the company's decision to pay out 70-80% of net profit after tax in future dividends, up from 65% previously, is a "prudent change in policy." They said the move will result in more consistent cashflow returns to shareholders while still enabling balance sheet flexibility for strategic investment.
Morgans analyst Emily Porter attributed Monday's selloff to "high expectations leading into the result", with the stock having gained over 10% in over the previous two weeks. Morgans made upward revisions to earnings forecasts over FY26 and FY27, but see the stock "fully valued".
The sources: Macquarie research, Morgans research, Bell Potter research
