The JB Hi-Fi Limited (ASX: JBH) share price continued its ascent on Tuesday.
The retail giant’s shares rose 4% to end the day at $53.70.
This means the JB Hi-Fi share price is now up over 9% since the start of the week.
Why is the JB Hi-Fi share price rising?
Investors have been bidding the JB Hi-Fi share price higher this week following the release of its half year results.
Although its sales and profit numbers were pre-released to the market in January, there were a couple of pleasant surprises that gave its shares a boost.
These were that trading was positive during the month of January, with JB Hi-Fi Australia and The Good Guys delivering solid year on year growth. The other was a $250 million off-market share buyback.
Can its shares keep climbing?
According to a note out of Morgans, its analysts believe the JB Hi-Fi share price has room to climb higher.
This morning the broker retained its add rating and $57,00 price target on its shares. Based on the current JB Hi-Fi share price, this implies potential upside of 6.1% before dividends and almost 11% including them.
Morgans commented: “JB Hi-Fi pre-announced its headline 1H22 earnings last month. The full earnings release issued today confirmed that EBIT was down 9% to $420.5m, but this was 60% above 1H20 and 17% above our estimate before the January trading update. Gross margins and operating cash flow were better than we had forecast.”
“We see JBH as a well-run retailer with good cost discipline, a robust balance sheet and a strong market position. Although we see only modest growth opportunities, we regard JBH as undervalued at current multiples and reiterate our ADD rating,” the broker concluded.
The post Is the JB Hi-Fi (ASX:JBH) share price in the buy zone after its results? appeared first on The Motley Fool Australia.
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More reading
- Why Dexus, JB Hi-Fi, Seek, and Sims shares are climbing today
- Why Bendigo and Adelaide Bank, Crown, JB Hi-Fi, and Newcrest are pushing higher
- $250m buyback sends JB Hi-Fi (ASX:JBH) share price shooting higher
- ASX 200 (ASX:XJO) midday update: JB Hi-Fi impresses, Crown accepts $8.9bn Blackstone bid
- JB Hi-Fi (ASX:JBH) share price on watch after announcing results and $250m buyback
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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