Macquarie Claims JB Hi Fi Looks Good In 2016, Virtual Reality Set To Contribute To Growth
JB Hi-Fi is looking the goods in the short, medium and long term, according to Macquarie, which has upgraded the stock claiming that it will outperform Harvey Norman.
New categories such as Virtual Reality, 360 degree cameras and the closure of Dick Smith stores is set benefit the mass retailer.
Analyst feedback suggests double digit sales growth across the consumer electronics industry in December is set to result in Q4 2015 growth.
“JBH is best placed to benefit from likely DSH store closures given category overlap,” Macquarie said.
Easing competition will help JB Hi-Fi recapture the market, with the retailer expected to grab one third of DSE’s lost sales.
They said that Virtual Reality (VR) and Augmented Reality (AR) will be huge for the mass retailer.
“Macquarie’s US tech analysts expect VR/AR will be even more disruptive than the short from desktop to mobile.”
“JBH is well placed given its market leadership in tech and #2 position in gaming. We expect VR to reinvigorate gaming in FY17 and FY18 while having a broader long term impact on a number of categories,” Macquarie analysts said.