Guess which ASX 200 stock could be worth $90 a share

If you are hunting some good value ASX 200 stocks to buy right now, then read on.

That’s because Bell Potter believes that one well-known company’s shares could be seriously undervalued at current levels.

Which ASX 200 stock?

The stock that Bell Potter is recommending to clients is JB Hi-Fi Ltd (ASX: JBH).

It is of course one of Australia’s leading retailers, responsible for the JB Hi-Fi, E&S, and The Good Guys brands.

Bell Potter has been looking back on the ASX 200 stock’s half-year results. It was pleased with the company’s performance during the half but acknowledges that the second half has started a touch weaker than expected. It said:

JB Hi-Fi (JBH)’s 1H26 result overall from a revenue, gross/net profit and dividends perspective saw marginal beats to Consensus/BPe. Good Guys (GG) and JBH NZ were the two key stand-out performers (vs BPe), while JBH Aus’s ability to maintain +5% comparable sales growth despite cycling a strong +8.8% in 2Q26 was resilient. The Jan-26 trading update (start of 2H26) of +2.4%, +16.7% and +2.7% in comparable sales growth for JBH Aus, NZ and GG respectively saw NZ tracking ahead of BPe, however JB Aus, GG and e&s slightly behind BPe.

In light of this, the broker has trimmed its earnings estimates slightly. It adds:

We make changes to our revenue assumptions factoring in the Jan trading update and the upcoming challenging comps in 4Q26 as JBH Aus cycles +8.2% comparable sales during the seasonal quarter driven by the Nintendo Switch 2 sales (post launch in Jun-25). We also apply some conservatism through our medium-term forecasts to see our revised revenue estimates growing by 4-5% in FY27/28 and some market share related investments in margins to see largely flat GM/EBIT margins (GM ~22% for JBH Aus, ~23% for GG, ~17% for JBH NZ and ~29% for e&s). […] The net result sees our NPAT forecasts -1%/-4%/-8% for FY26/27/28e.

Could be worth $90 per share

According to the note, Bell Potter has retained its buy rating on JB Hi-Fi’s shares with a lowered price target of $90.00.

Based on its current share price of $71.70, this implies potential upside of over 25% for investors over the next 12 months.

In addition, it is expecting a 4.7% dividend yield in FY 2026, boosting the total potential return to approximately 30%.

Commenting on its buy recommendation, the broker said:

Our PT decreases by 24% to $90.00 (prev. $119.00). Along with our earnings revisions, we also reduce our target P/E multiple by 30% to ~19x (prev. 27x) on a blended FY26/27e basis (skewed to FY27e). Our target multiple is driven by a ~12% premium applied to the current trading multiple. We see some defensiveness in the name with the semi-discretionary characteristics as stretched consumer wallets take a larger share in technology products, to retain our view of JBH as one of the key preferences within our sector coverage.

The stock continues to trade at an 18-month low on a ~17x FY26e P/E (BPe), and we see valuation support considering the relative defensiveness and margin levers in the business model.

The post Guess which ASX 200 stock could be worth $90 a share appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• JB Hi-Fi vs. Harvey Norman: Which is the better retail buy?
• A once-in-a-decade chance to earn a supersized passive income from ASX shares?
• 3 top ASX dividend share buys for passive income in March
• JB Hi-Fi vs. Wesfarmers: Which retail stock deserves a place in your portfolio?

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 Scott Phillips.