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Highlights

  • Bell Potter assigns a 2-BUY rating to JB Hi-Fi with a target price of AUD 114.00.

  • Forecast implies a 4.05% increase from the current share price of AUD 109.97.

  • Q3 FY25 results show continued sales growth across all business divisions.

Leading Australian electronics and appliance retailer JB Hi-Fi Ltd (ASX:JBH) has been issued a BUY rating by Bell Potter Securities. The recommendation, made by analyst Chami Ratnapala, comes with a target price of AUD 114.00, representing a 4.05% premium to the current market price of AUD 109.97. The rating was issued on 12 June 2025 and reviewed on 19 June 2025.

HY25 Results Highlight Operational Delivery

For the half-year ended 31 December 2024 (HY25), JB Hi-Fi reported robust financials:

  • Total sales rose 9.8% to AUD 5.67 billion,

  • EBIT increased 8.6% to AUD 419.9 million,

  • Net profit after tax was up 8.0% to AUD 285.4 million,

  • Earnings per share improved 8.0% to 261.1 cents,

  • An interim dividend of 170.0 cps was declared, up 7.6% year-on-year.

A key strategic milestone in the half-year period was the acquisition of a 75% stake in E. & S. Trading Co.

Q3 FY25 Sales Growth Sustains Upward Momentum

JB Hi-Fi continued its growth trajectory into the third quarter of FY25 (1 January to 31 March 2025), with solid performance across all brands. The quarterly and year-to-date sales figures are as follows:

Business Unit Q3 FY25 Comparable Q3 FY25 Total FY25 YTD Comparable FY25 YTD Total
JB Hi-Fi Australia 6.0% 6.5% 6.9% 7.0%
JB Hi-Fi New Zealand 7.5% 17.5% 7.1% 19.2%
The Good Guys 4.1% 4.6% 7.4% 7.8%
e&s 0.9% 1.9% 4.6% 5.2%

JB Hi-Fi New Zealand delivered 17.5% increase in Q3 and 19.2% year-to-date. The newly consolidated e&s brand also posted modest but positive growth figures, contributing to the Group’s diversified revenue base.

Cautious Optimism Amid Market Uncertainty

Commenting on the results, CEO Terry Smart acknowledged the company’s momentum but remained measured about the outlook.

“We remain cautious given the uncertainty in the retail market and the continued competitive activity,” Smart said. “We will continue to adapt and innovate to ensure we remain top of mind as the destination for our categories.”

Valuation 

Despite a current long-term growth projection of 7.18%, JB Hi-Fi’s continued outperformance and disciplined execution make it an attractive proposition for value-oriented investors.