Tag: Motley Fool

The CSL Limited (ASX: CSL) share price has continued its recovery on Tuesday.

In morning trade, the biotherapeutics company’s shares are up 2.5% to $295.01.

This means the CSL share price is now trading flat in 2022, which compares favourably to the ASX 200 index’s 12.5% decline.

Can the CSL share price keep rising?

The good news for investors is that a number of brokers still see plenty of upside in the CSL share price.

One of those brokers is Citi, which has a buy rating and $330.00 price target on the company’s shares. This implies almost 12% upside for investors over the next 12 months.

Its analysts believe plasma collection headwinds are largely over and that demand should now be the key focus. And with demand remaining strong, it feels this bodes well for its shares. It recently commented:

Recently, there have been several data points influencing our view on the plasma sector. In this report, we review them and the implications for the sector as a whole. US CMS data indicates continued price increases in immunoglobulin products. This is consistent with our expectation, as donor fees continue to remain elevated.

Underlying demand for plasma products remains strong but supply is constrained due to low plasma collection volume. With plasma collections now back to pre-pandemic levels, we expect the market to shift its focus to the strong underlying plasma product demand. This should lead to strength in the CSL share price.

Elsewhere, last week analysts at Macquarie and Morgan Stanley both retained their equivalent of buy ratings with $312.00 price targets.

Macquarie also highlights that plasma collections have been improving and were largely in line with pre-COVID levels last month. This was even the case in Texas despite restrictions on paid donations by Mexican citizens. It feels this bodes well for its earnings growth in the coming years.

The post What are brokers saying about the CSL share price? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for ASX biotech shares in FY23?
• What’s the outlook for ASX 200 healthcare shares in FY23?
• Why analysts love this ASX share that lost investors 5.5% in FY22
• 4 ‘quality’ ASX shares to buy in scary times: expert
• Analysts name 2 ASX 200 blue chip shares to buy

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 positions in and has recommended CSL Ltd. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

Shares of Amazon (NASDAQ: AMZN) have fallen hard in the first half of 2022 and are down 32% year to date, according to data provided by S&P Global Market Intelligence. Part of the drop is due to the broader stock market’s tumble as investors processed news of rising inflation and interest rate hikes from the Federal Reserve. 

But the biggest reason for Amazon’s share price drop this year comes from the company’s dismal first-quarter results, which were reported back in April. The e-commerce company reported its first quarterly loss since 2015 and issued disappointing guidance that sent its share price into a downward spiral. 

So what 

Amazon shocked analysts and investors when it reported a net loss of $3.8 billion in the quarter, its first quarterly loss in seven years and far below its net income of $8.1 billion in the year-ago quarter.

That loss came partly because of Amazon’s investment in the electric vehicle (EV) maker Rivian Automotive. It owns about 18% of the EV company, and Amazon reported a pre-tax valuation loss of $7.6 billion related it its Rivian holdings in the quarter.

But Amazon’s net loss also came as the company went on a hiring spree during the pandemic with e-commerce demand soaring. With tons of new workers and higher spending costs due to inflation, Amazon’s expenses ballooned. 

Investors were also disappointed with the guidance that management provided. The company said revenue for the second quarter would be in the range of $116 billion to $121 billion, lower than analysts’ consensus average of $125.5 billion. 

Investors will get a clearer picture of Amazon’s finances when it reports second-quarter results, likely next month.

Now what 

In the near term, Amazon investors could face some share price swings. Inflation is still stubbornly high and the company will continue to experience higher costs. And with the Federal Reserve focused on bringing inflation back down, more interest rate hikes are on the table, which could spook the market even more. 

But over the long term, Amazon investors should keep in mind that the company is still a leader in e-commerce and cloud computing. It is in a solid financial position and could end up being a great stock to have many years from now. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Amazon stock is down 32% so far this year appeared first on The Motley Fool Australia.

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More reading

• Better bear market buy: Netflix vs Amazon
• Which e-commerce company is the best buy during this bear market?
• 1 green flag for Amazon stock
• Why Amazon shares fell 12% in June
• Why Amazon stock rose while the market slept on Wednesday

Chris Neiger has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Northern Star Resources Ltd (ASX: NST) share price struggled in June, but could it steam ahead in July?

Northern Star shares fell 23% from $8.89 each at market open on 1 June to $6.84 a share at market close on 30 June.

Let’s take a look at the outlook for this ASX gold share in July.

Can the Northern Share share price go higher?

The Northern Star share price fell in June, but some analysts see potential upside for the gold miner’s shares.

Citi analysts have recently retained a buy rating on the Northern Star share price but cut the price target to $12.10. This is still almost 77% upside on the current share price. Commenting on the outlook for Northern Star in light of gold prices, Citi said:

We’ve trimmed our gold price in FY22/23. “Push and Pull” frictions can keep average prices elevated, but with upward momentum lagging. On a six to 12 month view we now see gold trading at US$1775 per ounce vs spot US$1853 per ounce.

We remain at buy.

Meanwhile, Macquarie also is optimistic about the future of the Northern Star share price, with an $11 price target. This is a nearly 61% upside based on today’s price.

Gold prices fell 2.1% in the month of June and have declined further in July to nearly nine-month lows, Trading Economics data shows.

In a research note today, ANZ senior economist Felicity Emmett noted “gold prices remained under pressure” in global markets as the US dollar strengthens ahead of more US inflation data being released. She said:

An increase in CPI could stiffen the resolve of the Fed to proceed with another big increase in interest rates later this month.

Investors continue to cut their exposure to the precious metal.

Meantime, Northern Star will release its latest quarterly results on Wednesday 20 July.

Share price snapshot

The Northern Star share price has dropped nearly 34% in the past year, falling nearly 28% in the year to date.

For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has shed nearly 16% in the past year and 11% year to date.

Northern Star has a market capitalisation of about $7.9 billion based on the current share price.

The post Down 23% in June, can the Northern Star Resource share price go up in July? appeared first on The Motley Fool Australia.

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More reading

• Is this a good time to go digging for ASX 200 mining shares for FY23?
• 5 things to watch on the ASX 200 on Monday
• Why did the Northern Star share price lose its shine in FY22?
• Is now the time to be buying beaten down ASX 200 mining shares?
• Losing their shine: 3 ASX 200 gold shares hitting new 52-week lows today

Motley Fool contributor Monica O’Shea 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.

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It is fair to say that the Xero Limited (ASX: XRO) share price has been well and truly out of form in 2022.

Since the start of the year, the cloud accounting platform provider’s shares are down a sizeable 42%.

While this is disappointing for shareholders, it could prove to be a buying opportunity for long term investors.

Is the Xero share price good value?

The good news is that analysts at Goldman Sachs believe the pullback in the Xero share price is a buying opportunity for investors.

This week the broker reiterated its buy rating on the company’s shares with a slightly trimmed price target of $113.00.

Based on the current Xero share price of $84.26, this implies potential upside of 34% for investors over the next 12 months.

What did the broker say?

Goldman notes that there are some near term challenges that Xero is facing. However, it believes the company can navigate this uncertainty and continue its growth.

In fact, despite reducing its estimates, Goldman is still forecasting average gross profit growth of 22% per annum from Xero between FY 2023 and FY 2025.

It commented:

While noting that the near term remains robust, we do acknowledge the risk of higher churn from SME business challenges and recent price increases. Nevertheless, we see Xero as well-placed to navigate this uncertainty given the stickiness & importance of its software, and lower levels of churn vs. AU overall. We revise FY23-25 GP to reflect FX and higher churn/ARPU growth (price increases). Our 12m TP is -4% to A$113 (also revised in May).

All in all, this could make it a great option for investors that are looking for exposure to the tech sector following 2022’s weakness.

The post Here’s why Goldman Sachs sees lots of value in the Xero share price appeared first on The Motley Fool Australia.

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More reading

• Down 40% in 2022: Is the Xero share price a buy today?
• Here are the top 10 ASX shares today
• Why are ASX 200 tech shares sprinting higher today?
• How did Xero shares do in the 2022 financial year?
• Why Regis Resources, Sayona, Woodside, and Xero shares are pushing higher

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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The share price of materials giant Mineral Resources Limited (ASX: MIN) has been struggling lately, tumbling more than 17% over the last 30 days.

But there could be light on the horizon for the lithium and iron ore producer, with one broker tipping a 41% upside on its stock.

At the time of writing, the Mineral Resources share price is $46.01. That’s 21.6% lower than it was at the start of 2022.

For context, the S&P/ASX 200 Index (ASX: XJO) has slipped 13% so far this year, as has the S&P/ASX 200 Materials Index (ASX: XMJ).

Let’s take a closer look at what’s been going on with the resources giant and what one broker expects for its future.

Mineral Resources share price tipped to hit $65

The Mineral Resources share price has been plagued by retreating commodity prices and negative sentiment recently. But one broker expects the stock to perform a notable comeback.

Jefferies has reportedly upped its price target for Mineral Resources’ stock to $65. The broker also slapped the company’s shares with a buy rating, Livewire reports.

That would see the company’s stock returning to trade around the 52-week high it reached in January.

A falling iron ore price and a lithium sell-off event have taken their toll on the company’s shares since then.

Companies involved in lithium have had a rough slog over the last few weeks following a major turnaround on the market. Meanwhile, the price of iron ore has slumped around 28% since peaking in March.

Interestingly, there hasn’t been much news from the company over the last few months. Though, it was added to the S&P/ASX 50 Index (ASX: XFL) in June.

The post Could the Mineral Resources share price unload another 41% of upside? appeared first on The Motley Fool Australia.

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More reading

• Why did the Mineral Resources share price fall 10% in the 2022 financial year?
• The Mineral Resources share price is leaping higher again today. Here’s why
• Here are the top 10 ASX shares today
• Is now the time to be buying beaten down ASX 200 mining shares?
• These ASX 200 mining shares are bouncing back on Thursday

Motley Fool contributor Brooke Cooper 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.

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ASX biotech shares incurred heavy losses in FY22 as investors piled out of risk assets and moved into higher-quality corners of the market.

Here’s a closer look at three noteworthy ASX biotech shares and their outlook for FY23.

CSL Ltd (ASX: CSL)

Shares in the biotech giant gyrated last year but analysts tip they’ll deliver upside in FY23. Citi rates this ASX share a buy on a $330 valuation.

The Citi team say that CSL should benefit now that COVID-19 has wound back and blood plasma collections can resume en masse.

It forecasts around 20% growth in earnings per share (EPS) for CSL this financial year, as the market “shift[s] its focus to the strong underlying plasma product demand.”

Not only that, but CSL announced its acquisition of Vifor Pharma last year, and is likely to book its first round of revenue from the transaction in FY23.

This could weigh on the CSL share price if everything goes well.

Imugene Ltd (ASX: IMU)

Shares in Imugene have caught a bid lately and are up 33% in the past week. After booking heavy losses last financial year, things could be looking different in FY23 for the ASX biotech share.

As TMF reported last week, “Imugene advised it has appointed a new executive director and clinical scientist.”

That was Dr Sharon Yavrom, who comes with nearly 20 years of industry experience.

The latest results of its HER-Vaxx Phase 2 study were also a positive catalyst for the share price.

The HER-Vaxx segment is sure to be integral to Imugene’s growth narrative looking ahead, as it was in FY22.

Immutep Ltd (ASX: IMM)

Another ASX biotech share worth mentioning for FY23 is Immutep. The company is focused on developing novel oncology solutions through its lead drug compound, etfi.

Immutep shares underperformed in FY22, with investors incurring a substantial on-paper loss. But the biotech share caught a bid in the first week of July following a company announcement.

Immutep advised that part A of the phase II TACTI-002 trial met its primary objective, showing favourable anti-tumour activity.

The study was evaluating efti in combination with MSD’s pembrolizumab in 114 patients.

Investors reacted favourably after digesting the news.

The wider healthcare sector has also been strengthening in early FY23.

The post What’s the outlook for ASX biotech shares in FY23? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for ASX 200 healthcare shares in FY23?
• Why analysts love this ASX share that lost investors 5.5% in FY22
• 4 ‘quality’ ASX shares to buy in scary times: expert
• Analysts name 2 ASX 200 blue chip shares to buy
• Up 33% in a week, what’s helping the Imugene share price higher?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. 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.

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Woolworths Group Ltd (ASX: WOW) shares could be in the buy zone at the current level.

That’s the view of the team at Goldman Sachs, which has just added the retail giant’s shares to its conviction list.

What is Goldman saying about the Woolworths share price?

Goldman Sachs has added Woolworths to its conviction list in place of its old drinks business Endeavour Group Ltd (ASX: EDV). It explained:

We update our forecasts for WOW, reiterate our Buy rating and add to our regional Conviction List, with TP to A$40.50 (from A$41.70). We remain positive on EDV and reiterate Buy but remove from Conviction List after recent out performance with TP unchanged at A$8.30. Since adding EDV on CL from March 28th, the stock is +9.1% vs ASX200 -10.3%.

We reiterate our key positive thesis on EDV as a defensive alcohol retail leader with material advantage in consumer loyalty, re-opening beneficiary and accelerated growth leveraging B/S. Whilst we continue to see 6% upside, WOW now has a higher upside of 10% (3rd highest in our consumer/retail coverage, but with clear catalysts to re-rating).

What are these key catalysts?

Goldman has named three key catalysts for a re-rating of the Woolworths share price. These are its superior growth in the core business, adjacent revenues with higher margins, and its valuation.

In respect to its growth, Goldman is forecasting a sales “CAGR of 6.6% and underlying NPAT of 14.1% over FY22-24e, with key driver being market share gain of AU Foods business.” This is expected to be driven by an effective cost-price pass through and additional mix improvement with relatively stable volume growth.

As for its adjacent revenue opportunities, the broker highlights that Woolworths has a highly loyal consumer base and high frequency contact points. It believes that “the retail media business is the next material growth lever for WOW” and has “factored in A$1.1B sales, with 30% EBIT margin in 2030.”

Finally, the broker sees scope for the Woolworths share price to trade on higher multiples. It highlights that the valuation gap between its shares are Coles Group Ltd (ASX: COL) is at its lowest point in years.

The broker believes this is “unwarranted” due to Woolworths being the “superior operator with faster growth outlook.” In light of this, the broker expects “ better comps and margin management to become apparent, and the stock to re-rate.”

The post Why Goldman Sachs added Woolworths shares to its conviction list appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Why ‘superior operations’ puts Woolworths shares in this broker’s buy basket
• The Woolworths share price outperformed the ASX 200 in FY22. Here’s why
• Why Domino’s, EML, Talga, and Woolworths shares are pushing higher
• Why experts rate these top ASX dividend shares as buys

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 positions in and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX 200 healthcare shares were a mixed bag in FY22 with many names underperforming their benchmark.

The S&P/ASX 200 Health Care Index (ASX: XHJ) tumbled in December and hasn’t made a recovery yet. It’s now trading down 7.5% in the year to date.

With the macroeconomic landscape shifting, ASX 200 healthcare shares might be set to catch a bid again.

How’s it looking for ASX 200 healthcare shares in FY23?

It appears investors are paying more attention to fundamental analysis in 2022.

For example, unprofitable ASX growth shares and ASX tech shares have been beaten down, whilst profitable ASX mining shares with high free cash flow have soared.

For the healthcare basket, these trends have had a big impact. Healthcare shares have been strengthening in the past month, up 4% in that time.

The sector trades on a price-to-earnings (P/E) ratio of 44.5x per Bloomberg data. Analysts are forecasting average earnings per share (EPS) growth of around 30% for H2 FY22 in the space.

Meanwhile, researchers at Deloitte have weighed in with their opinion on the outlook for the healthcare industry in FY23.

The Deloitte team said that a number of forces are “proving to be the catalyst for the clinical, financial, and operational transformation that health care has long promised to the world”.

“Despite COVID-19’s many devastating impacts, it does present the health care sector with a powerful opportunity to accelerate innovation and reinvent itself,” it added.

Catching a bid in FY23

The stage looks set for large-cap players within the ASX 200 healthcare space to catch a bid in FY23.

We’ve seen it happen already. Biotech giant CSL Limited (ASX: CSL) has jumped from $269 per share on 1 July to $287.99 now, for instance.

Meanwhile, sleep and respiratory specialist Resmed CDI (ASX: RMD) is up 7% in the past month of trade.

It will be an enduring test for ASX 200 healthcare shares to push through the current market volatility.

The post What’s the outlook for ASX 200 healthcare shares in FY23? appeared first on The Motley Fool Australia.

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More reading

• Why did the ResMed share price finish down in FY22?
• Why analysts love this ASX share that lost investors 5.5% in FY22
• 4 ‘quality’ ASX shares to buy in scary times: expert
• Analysts name 2 ASX 200 blue chip shares to buy
• Here’s how ASX healthcare shares performed in FY22

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Lake Resources N.L. (ASX: LKE) shares will be worth watching closely on Tuesday.

Yesterday, the lithium developer was the subject of a scathing short attack from J Capital.

J Capital has previously targeted Nearmap Ltd (ASX: NEA), Vulcan Energy Resources Ltd (ASX: VUL), and WiseTech Global Ltd (ASX: WTC).

What is Lake Resources?

Firstly, a bit of background. Lake Resources is a clean lithium developer aiming to use an unproven direct lithium extraction (DLE) technology for the production of sustainable, high purity lithium from its flagship Kachi Project in Catamarca Province within the Lithium Triangle in Argentina.

The company caught the eye recently when its CEO, Steve Promnitz, quit with immediate effect and without comment. He also promptly sold all of his 10.2 million shares the next day.

What is J Capital saying about Lake Resources shares?

According to the report, its analysts believe Lake’s DLE technology isn’t going to work as planned and will “still use large amounts of water and produce toxic waste.”

The short seller also highlights that the technology, which is owned by partner Lilac Solutions, has lost an important supporter recently. It said:

Based on our research into cooperation partners, we are sceptical that the DLE technology developed by Lilac Solutions “Lilac” works. We have discovered that Warren Buffet’s Berkshire Hathaway Energy Renewables (BHE) has “parted ways” with Lilac.

Investors still have no evidence that the Lilac DLE technology works at scale and if so at what cost. If the DLE technology works then the number of “cycles” for which the extraction medium can be used will be a key cost driver. If the medium can only be used for a few hundred cycles then the costs may be prohibitively high.

The short seller also has doubts over Lake Resources’ production timeline. The company is aiming to begin production in 2024, but J Capital feels this is highly unlikely.

Lake claims that it will be in production in 2024. Lawyers in Argentina that we spoke to, who are familiar with mining projects in the area, said it would take at least 3 years for the project to be up and running. They considered this project to be in early-stage development.

Insider sales and option issues

J Capital has taken aim at management for consistently selling shares and for the company rewarding research firms with options.

Lake insiders have successfully sold $8.1 mln in stock in the last year. Lake granted 41.5 mln options to financial institutions that published favourable research on the company. Insider share sales have followed a pattern of Lake announcement, followed by favourable research, stock price rise and then insider sales.

At the time of writing, Lake has not responded to the short attack.

The post Lake Resources shares on watch amid short seller attack appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why are these ASX 200 lithium shares tumbling today?
• Here are the 3 most heavily traded ASX 200 shares on Monday
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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 positions in and has recommended Nearmap Ltd. and WiseTech Global. The Motley Fool Australia has positions in and has recommended Nearmap Ltd. and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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One of the beneficiaries of the COVID-19 retail boom was the JB Hi-Fi Limited (ASX: JBH) share price. But things aren’t as rosy now with the retailer’s shares declining over the financial year. The JB Hi-Fi share price dropped by more than 20% throughout FY22.

JB Hi-Fi is a leading retailer of electronics and home appliances. It has three key businesses – JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys.

In the first part of the COVID-19 pandemic, there was huge demand for products that enabled people to work, learn, and enjoy entertainment at home.

There may have been a question over how long that demand was going to continue. But FY22 showed consumers still wanted what JB Hi-Fi was selling — and in large numbers.

Let’s have a look at those numbers reported during FY22.

FY22 half-year result

The most important update from the company has been the report for the six months to 31 December 2022.

Share prices can be influenced when investors get the clearest picture of how a company has performed.

JB Hi-Fi said that total sales fell by 1.6% to $4.86 billion, though this was up 21.7% over two years. Online sales increased by 62.6% to $1.1 billion. Net profit after tax (NPAT) fell by 9.4% to $287.9 million – but it was up 68.8% over the two years.

JB Hi-Fi announced an interim dividend of $1.63 per share, as well as a share buy-back of up to $250 million.

The company said it had continued to see elevated demand across all of its sales channels despite the lockdowns.

When lockdowns finished, the company revealed that sales growth had continued.

Ongoing sales growth in the FY22 third quarter

In the three months to 31 March 2022, the company reported ongoing growth for all three of its brands.

The company said it was still seeing heightened customer demand and strong sales growth. This was continuing into the FY22 fourth quarter to date (at the beginning of May 2022).

JB Hi-Fi Australia sales went up by 11.9%. In New Zealand dollar terms, JB Hi-Fi New Zealand sales were up 4.8%. The Good Guys sales went up by 5.5%.

So, what’s hurting the JB Hi-Fi share price?

In the FY22 third-quarter update, the company noted there was ongoing disruption to stock availability and operations arising from COVID-19 and other local and global uncertainties.

Ord Minnett is one of the brokers that recently cut its profit projections for JB Hi-Fi. It expects a hit to sales because of increasing inflation and higher interest rates. That’s why it changed its rating to hold from buy. It cut its price target to $42.

UBS is another broker to have similar negative thoughts about the retail sector due to higher interest rates and more expensive energy and fuel hurting household budgets. Its rating is neutral with a price target of $38.

The post Why did the JB Hi-Fi share price fall more than 20% in FY22? appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison 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.

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