JB Hi-Fi (ASX:JBH) share price sinks lower on broker downgrade

The JB Hi-Fi Limited (ASX:JBH) share price is sinking lower on Wednesday after being downgraded by a leading broker…
The post JB Hi-Fi (ASX:JBH) share price sinks lower on broker downgrade appeared first on Motley Fool Australia. –

red arrow pointing down, falling share price

The JB Hi-Fi Limited (ASX: JBH) share price is out of form again on Wednesday and is sinking lower.

In afternoon trade the retailer’s shares are down 5% to $44.20.

This means the JB Hi-Fi share price is now down almost 17% from the all-time high it reached just three weeks ago.

Why is the JB Hi-Fi share price sinking lower?

Investors have been selling the retailer’s shares this week amid news that there could soon be an effective COVID-19 vaccine rolled out globally.

As backwards as it might sound, this is being seen as bad news for companies like JB Hi-Fi.

This is because it has been a big winner during the pandemic as investors redirect their spending away from travelling onto entertainment and homewares.

It was for this reason this morning that equity analysts at Macquarie Group Ltd (ASX: MQG) downgraded the company’s shares to a neutral rating and cut the price target on them by almost 10% to $49.50.

According to the note, if the vaccine is a success, the broker expects that consumer behaviour will return to normal in 2021. This is likely to result in a slowdown in its growth as consumers start traveling again.

What about other retailers?

Analysts at Morgans also expect this to be the case and have been adjusting their recommendations today.

It has reduced the multiples for shares that it believes are likely to be impacted by a redirection in spending as the world returns to normal.

Two retailers that have been impacted are Accent Group Ltd (ASX: AX1) and Super Retail Group Ltd (ASX: SUL).

The broker has downgraded Accent’s shares to a hold rating with a reduced price target of $1.67. As for Super Retail, its shares have been downgraded by Morgans to a hold rating with a reduced price target of $11.78.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Super Retail Group Limited. The Motley Fool Australia has recommended Accent Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post JB Hi-Fi (ASX:JBH) share price sinks lower on broker downgrade appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!