JBH - Stock Update

10 Mar 2022

Sector: Consumer Discretionary

JBH vs. Consumer discretionary sector which could leave the stock vulnerable to ‘correct’ quickly once the window closes. This movement supports our long-term buy rating for JBH as the company’s performance remains strong.

WOW, CBA, and WBC have all recently faded off after their own off-market buybacks and given JBH currently is progressing through their own off-market buyback it’s important to outline potential market action.

Stocks in the range between the last eligibility date to last submission date (22 Feb – 11 Apr for JBH) can have slowed price movement as seen with WOW, CBA, and WBC and occasionally may come off after completion although this does not affect our overall buy thesis.

JBH vs. ASX200 Consumer Discretionary Sector

Source: Bloomberg

JBH vs. Consumer Discretionary Sector peers YTD

Source: Bloomberg

Company overview

JB Hi-Fi (JBH) is an Australian electronics and entertainment retailer.

JBH’s performance has been an indicator that sales trends are resilient regardless of covid impacts. Although impacts from the upcoming buy-back may cause a short-term unwinding, the company may still have the potential to be in a net cash position even after the buy back. This may result in the company being able to lift its dividend payout which would present as a strong positive for shareholders. Stock Insight – JBH – 10th Mar 2022 A performance gap has opened up between

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