UBS was 14% above consensus estimates prior to Harvey Norman’s 1Q AGM trading update, yet stiil manages to lift its FY22 EPS forecast by 1%, while keeping FY23 unchanged. A&NZ and Malaysian lockdowns weighed on sales and profit (PBT), notes the broker.
The analyst believes the company is well positioned based on the strength of consumer demand in retail, as well as prior positive reopening experiences. The Buy rating and $7 target price are retained.
Target price is $7.00.Current Price is $5.13. Difference: $1.87 – (brackets indicate current price is over target). If HVN meets the UBS target it will return approximately 27% (excluding dividends, fees and charges – negative figures indicate an expected loss).