JB Hi-Fi (JBH) – Strong but Pricey Performer
February 10, 2025
JB Hi-Fi retails home consumer electrical products and white goods. The company operates through three segments: JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys.
Ord Minnett recently updated its JB Hi-Fi (JBH) model to incorporate the latest trading data from the holiday season and commentary from suppliers and other retail industry players. Our view is that JB Hi-Fi has continued to win market share from rivals such as Harvey Norman (HVN), and we expect the pace of like-for-like (LFL) sales growth in the dominant JB Hi-Fi Australia division has picked up to 7% in the December quarter from 5% in the September quarter, while The Good Guys operations are likely to have maintained a LFL sales growth rate of 5%.
Our estimates now incorporate annual special dividends of$1.20–1.80 per share out to FY30, or around $28 per share over that period. Despite JB Hi-Fi’s many attractive characteristics, we maintain our Lighten recommendation on the stock on valuation grounds. Our price target rises to $85.00 from $71.00, however, to account for our upgrades to earnings estimates.
Insights that count
Discover the best opportunities to outperform the market. Our research team dig deep into the market, company and stock data to bring you insights others might overlook.
Energy One Limited (EOL) - Margin thesis playing out
Energy One provides software products, outsourced operations, and advisory services to wholesale energy, environmental, and carbon trading markets in Australasia and Europe.
Service Stream Ltd (SSM) - High-quality earnings stack
Service Stream engages in the design, construction, operation, and maintenance of infrastructure networks across the telecommunications, utilities, and transport sectors in Australia.
Energy One Limited (EOL) - Margin thesis playing out
Energy One provides software products, outsourced operations, and advisory services to wholesale energy, environmental, and carbon trading markets in Australasia and Europe.
.jpg)