This report is an updated version of the report published on the 21 August 2023 at 4:22 PM GMT+10.
JB Hi-Fi Ltd (ASX: JBH) – SELL at AUD 47.18
JB Hi-Fi Limited is an Australian retailer operating through divisions, namely, JB HI-FI Australia, JB HI-FI New Zealand and The Good Guys. The ASX-listed retailer provides technology solutions, consumer electronics and home appliances.
Investment Rationale – SELL at AUD 47.18
- Profit Booking: JBH’s stock price is hovering around ‘Resistance 1’ level given in the report on 26 June 2023, and presented a profit booking opportunity.
- Technical Indicator: The momentum oscillator, 14-day RSI is trading at ~58.18 levels, which is approaching the overbought zone.
- Profit Decline: During FY23, EBIT and Net Profit declined by 3.2% and 3.7% respectively.
- Key Risks: JBH’s share price is exposed to economic downturns, supply chain disruptions, rapid technological changes, cybersecurity, and other operational challenges.
JBH Daily Chart
(Source: REFINITIV, Analysis by Kalkine Group)
Valuation Methodology: Price/Earnings Approach (FY24E) (Illustrative)
Considering that the resistance level, and risks associated, it is prudent to book profit at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current price of AUD 47.18 (as 21 August 2023, at 2:27 PM GMT+10).
Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate.
Note 1: Past performance is neither an indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 21 August 2023. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Note 4: Dividend Yield may vary as per the stock price movement.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.
Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.
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