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Highlights
- Impressive Performance: JB Hi-Fi has outperformed the ASX 200 index by 72% in the past year, with shares up 90%.
- CEO Sells Shares: CEO Terry Smart sold 6,500 shares for over AU$500,000 on November 11, reducing his indirect holdings.
- Strong Sales Growth: The company reported solid sales growth for Q1 FY25, with significant performance from JB Hi-Fi Australia and Good Guys.
- Broker Optimism: Bell Potter and Citi analysts are bullish on the stock, with price targets of AU$87 and AU$85, respectively, citing strong future earnings growth.
JB Hi-Fi Ltd (ASX:JBH) has been one of the standout performers on the ASX 200 over the past year, with shares soaring approximately 90%, significantly outperforming the broader market by more than 72%. The Australian retailer has benefited from robust sales and earnings growth, especially in its key operations in Australia and New Zealand.
Despite the strong stock performance, CEO Terry Smart recently offloaded a parcel of shares valued at over AU$500,000. Smart sold 6,500 shares on November 11, reducing his indirect holdings to 22,802 shares. While some investors may raise questions about the sale, it is important to note that such transactions can be driven by a variety of personal reasons, such as diversifying investments or funding personal expenditures.
The company's Q1 FY25 earnings results showed solid growth, with JB Hi-Fi Australia's total sales increasing by 4.9%, and comparable sales growing by 5%. New Zealand’s sales surged 19%, and Good Guys also posted strong results.
Brokerage firms are optimistic about JB Hi-Fi’s future. Bell Potter added the stock to its preferred list, predicting stronger-than-expected earnings in FY26 and FY27, driven by factors such as lower interest rates and real wage growth. Citi also maintains a "buy" rating, with a target price of AU$85, citing positive sales growth projections for H1 FY25.
Overall, while the CEO’s share sale might raise some eyebrows, analysts are confident in JB Hi-Fi's growth trajectory, and the stock remains a strong performer in the retail sector.
