** Jefferies sees Australia's JB Hi-Fi JBH.AX well-positioned for cyclical upswing as monetary policy eases, but says trading multiple remains demanding

** Brokerage notes strong sales momentum, solid gross margin and cost-control outlook; CEO transition to Nick Wells from October not seen as major surprise

** Flags cost-of-doing-business growth moderated in H2; outlook positive with reinvestment complete and wages/sales now appropriate

** Adds July like-for-like sales ahead of consensus for JB Hi-Fi Australia and NZ

** Analysts at Morningstar raises fair value estimate on co by 3% to A$45.5, reflecting slightly higher sales lifting their profit forecast by 5$ on average over the next decade

** Flags intense competition to constrain margins at co; adds online pure plays are likely to take share from brick-and-mortar retailers with Amazon Australia being biggest threat

** Morningstar says it would need to assume EBIT margin growth of 13% over next five years to lift valuation to current share price levels

** JBH last closed at A$107.83; up 16.4% YTD

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))