Stock Track | Harvey Norman Plummets 5% Intraday After Jefferies Downgrade on Rate Hike Concerns
Stock Track
Jan 07
Harvey Norman Holdings Ltd (HVN.AU) saw its stock plummet by 5% during intraday trading on Wednesday, following a downgrade by Jefferies from "buy" to "hold." The firm also lowered its price target by 9.5% to A$7.60 per share, citing the stock's recent strong performance and high valuation.
Analyst Michael Simotas noted that Harvey Norman's stock has surged nearly 50% over the past 12 months and is now trading at a price-to-earnings multiple of 18x. Jefferies believes further upside will require earnings upgrades, which seem unlikely given the market's expectation of rate hikes starting in February. The downgrade reflects growing caution about the stock's near-term prospects amid tightening monetary conditions.
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