Credit Suisse found the FY21 result “incredibly strong” albeit in line with expectations. Investor attention has now turned to the lockdown-impacted trading in the first quarter of FY22.
While the broker suspects some would have been disappointed by the lack of capital management the cash is probably going to be used for expansion. Offshore expansion and property are the key differentiators between Harvey Norman and household goods peers in Australia.
The broker retains a Neutral rating and raises the target to $5.80 from $5.68.
Sector: Retailing.
Target price is $5.80.Current Price is $5.38. Difference: $0.42 – (brackets indicate current price is over target). If HVN meets the Credit Suisse target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
