Stocks Down Under 5 June 2020: JB HiFi, AFT Pharmaceuticals, Geopacific Resources

JB Hi-Fi: Too much growth now means less later on

The Coronavirus Crisis was hard on the shareholders of the Melbourne-based retailer JB Hi-Fi. The stock crashed 47%, from $44.71 per share on 10 February to only $23.50 on 25 March. And then, just as suddenly, came the rebound, to the point where we think JB Hi Fi is overvalued. JB Hi Fi has traded well through this crisis, but we believe there’s not likely to be enough earnings growth for the next two years to justify the current valuation.

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