Harvey Norman (HVN) Shares Tip

Harvey Norman (HVN) have maintained a price target of $4.25 for their shares from stock analyst Citigroup Investment Research (CIR). The retailer has reported 1H07 sales of $2.71 billion, growth of 16.7%. Furniture sales continue to improve, but air-conditioner sales were weak dragging like-for-like growth down to 6.2% in 2Q07 from 8.2% in 1Q07. CIR have slightly raised their EPS forecasts by 0.9% in FY07e and FY08e to reflect the sales result. Furniture sales grew 10% in 2Q07. The result continues the improvement seen in 1Q07 and is a positive sign for HVN's FY07e profit margins given the pressure on Furniture sales in FY06. 2Q07 growth softened because sales of seasonal merchandise fell. The temperature in the eastern states of Australia was lower than 2005. However, overall temperatures were near long-term averages indicating the sales slowdown was a correction. Harvey Norman confirmed that it acquired 14 Retravision stores. The acquisition price was not revealed, but no goodwill was paid. The acquisition adds to HVN's market dominance in Australia and weakens a major competitor. CIR expect more stores to be acquired in the coming months.Total new store growth was the fastest since FY04. The growth continues in offshore markets with new stores in Ireland and NZ during 2Q07.

Harvey Norman Limited is listed on the Australian Stock Exchange (ASX) under stock code HVN. You can view their investor website here. HVN was listed on the ASX on 3 September, 1987. Gerald Harvey is the Chairman of Harvey Norman and Kay Page is the Managing Director while Chris Mentis is the CFO. Harvey Norman Holdings is involved in franchising, provision of advisory and advertising services to Harvey Norman franchisees, sale of homewares and electrical goods, provision of consumer finance, property investment and leasing of premises to Harvey Norman franchisees and other third parties. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade HVN. Check your charts and good luck with your share trading!