17/05/2022 09:02

Harvey Norman (HVN) $4.50

As interest rates rise and consumer confidence wanes its always worth keeping our finger on the pulse on the retail sector which will give us a decent read on how things are looking within Australia. The uncertainty towards rising interest rates and to a lesser extent an election is a tough backdrop for discretionary spending and that’s exactly what we’ve seen of late with HVN making fresh 2022 lows last week, at this stage we see no reason...

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05/05/2022 09:21

Harvey Norman (HVN) $4.91

Our view towards HVN is very similar to JBH although there’s been no pop to fresh highs in 2022, it did try to rally in February after delivering its half-year results – EBITDA was down 3.3% while revenue fell 6.2% to $4.91bn. The latest 20c fully franked dividend puts the stock on a forecasted 7.1% yield over the next 12-months, certainly worth watching into weakness as a yield play but a move back towards $4.50 wouldn’t surprise short term.

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14/04/2022 09:10

Harvey Norman (HVN) $5.12

On ~11x earnings and expected to yield 6.84% fully franked over the coming 12 months it’s hard to be too negative on Harvey Norman, however, whenever I go into my local HVN to buy an overpriced printer cartridge from a graduate of Sunshine Tafe, it doesn’t fill me with confidence. HVN has a very high correlation to housing given its product mix which means 2022 will be a very good year for it, however, the outlook for FY23...

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14/01/2022 09:23

Harvey Norman (HVN) $4.85

Gerry Harveys HVN was a major beneficiary through the pandemic as Australians focused their spending on the home as opposed to travel and entertainment. However as we slowly move back to normality (hopefully!) this tailwind has gone and chasing HVN around $5 is not exciting although for the yield hungry a 7% forecasted fully franked yield is clearly attractive.

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22/10/2021 09:21

Harvey Norman (HVN) $4.95

HVN has corrected well over 20% as the sectors come off the boil which has led to broker upgrades with targets around $6, our feeling is the recent correction is building in most of the potentially bad news leaving room for surprises on the upside. Like the broad market any gains / recovery has been very muted so far but we feel this is a prime candidate for an excellent run...

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31/08/2021 16:12

Harvey Norman (HVN) $5.93

FY21 Results: A very strong FY21 for Harvey Norman once again showing that ‘old school’ retailing can print some impressive numbers with EBIT of $1.23bn up 71% on FY20 while NPAT was $841m up 75% and ahead of expectations. Re-stocking of inventory had a negative impact on cash flow while the FY21 dividend of $0.35 fully franked was a touch below expectations.

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31/08/2021 08:46

Reporting Today (HVN, IGO, MSB, PBH, RRL, SFR)

Companies reporting today include: Harvey Norman (HVN), Independence Group (IGO), Mesoblast (MSB), PointsBet (PBH), Regis Resources (RRL), Sandfire Resources (SRF) + Webjet (WEB) AGM

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20/04/2021 09:15

Harvey Norman (HVN) $5.70

HVN has more than tripled from its COVID low gaining over 100% in just 12-months but as always what comes next is what matters. We like this retailer which is forecast to yield over 6.5% fully franked over the next 12-months but our optimum entry is around the $5.25 area.

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19/01/2021 15:36

Harvey Norman (HVN) $5.33

Gerry Harvey must have enjoyed his stocks almost 50% gain over the last 6-months, as a side note I’ve always liked the way he was happy to step up and buy tranches of his stock when the doubters were circling, he’s clearly a winner today – he even bought $1m worth as part of a 15-stock plunge into local stocks back in March, good call! The shares look poised to breakout to fresh decade highs, in November they announced sales revenue was up close to 30% with Australia not surprisingly leading the way as we’ve dealt with the virus so much better than most people. However, as the vaccine is rolled out its stores in the likes of Europe, Singapore and Malaysia are likely to play some catch up.

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