JBH, the well-known retailer across the JB-Hi-Fi & Good Guys brands bucked the market and rallied almost 2% yesterday. The company is a leading retailer of technology and consumer electronics, with a strong position with the younger, tech-savvy demographic. The investment thesis for JBH has historically been driven by store & online growth, driven by the likes of technology and telco, and these have largely played out delivering excellent returns for shareholders. The question now is beyond New Zealand, growth drivers are becoming more difficult to identify and although JBH retains its position as a best-in-class retailer with a low 9.95x valuation and an attractive dividend yield of ~7% over the next 12 months it’s hard to get too excited.
- We like JBH into weakness with its yield and defensive qualities appealing on valuation levels, even if we see a recession through 2023/4.
MM is neutral to mildly bullish JBH around $45
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