Harvey Norman (ASX:HVN) share price hits multi-year high: Can it go higher?

The Harvey Norman Holdings Limited (ASX:HVN) share price has hit a multi-year high on Friday but could still fo higher from here…

| More on:
An investor sits at her desk and stretches her arms above her head in delight.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Harvey Norman Holdings Limited (ASX: HVN) share price is on form again on Friday and is pushing higher.

In afternoon trade, the retail giant's shares are up 3.5% to a multi-year high of $4.93.

This latest gain means that the Harvey Norman share price is now up 41% over the last six months.

As a comparison, the S&P/ASX 200 Index (ASX: XJO) is up a solid 13.8% over the same period.

Why is the Harvey Norman share price at a multi-year high?

Investors have been buying Harvey Norman's shares over the last few months thanks to its strong performance during the pandemic.

In November, the retailer released a trading update which revealed stellar sales growth so far in FY 2021.

According to the release, aggregated sales revenue increased by 28.2% between 1 July and 21 November compared to the prior corresponding period.

Management advised that this was driven by strong same store sales growth across almost all regions and particularly in the ANZ market.

Harvey Norman's Australian franchisees delivered a 30.4% increase in comparable store sales and its New Zealand stores reported a 20.4% lift in comparable store sales. This includes stores that were temporarily closed due to COVID-19.

Pleasingly, Harvey Norman's profit growth has been even stronger in FY 2021 thanks to margin expansion. Between 1 July and 31 October, the company reported unaudited profit before tax growth of 160.1% on the prior corresponding period.

Can the Harvey Norman share price go even higher?

Two brokers that believe Harvey Norman's shares can still go higher are Citi and Credit Suisse.

Citi has a buy rating and $5.50 price target on its shares, whereas Credit Suisse has an outperform rating and $5.30 price target on its shares.

Citi's price target implies potential upside of over 11% even from the multi-year high it reached today. That doesn't include the very generous 45 cents per share fully franked dividend it is forecasting.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on 52-Week Highs

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Materials Shares

Why is this ASX lithium stock jumping to a 52-week high today?

This lithium stock is smashing the market this year despite all the doom and gloom in the industry.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
52-Week Highs

3 ASX 200 shares smashing new 52-week highs on a red-market day

These lucky shares are defying the market today.

Read more »

A piggy bank on the cloud in the blue sky symbolising a record high share price.
Share Market News

Here's why Morgan Stanley says the record-high ASX 200 has more room to run

The top broker also thinks investors should prepare for a rotation out of ASX bank stocks in 2025.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
52-Week Highs

Why is this ASX stock jumping 10% to a decade-high today?

What is getting investors excited today? Let's find out.

Read more »

Man raising both his arms in the air with a piggy bank on his lap, symbolising a record high.
52-Week Highs

12 non-bank ASX 200 shares smashing new 52-week highs today

Do you own any of these stocks at 52-week highs today?

Read more »

A cloud with a blue arrow pointing upwards through its middle symbolising a rising asx share price
52-Week Highs

7 ASX 200 shares smashing new highs on Tuesday

Here's why these companies are hitting new 52-week highs on Tuesday.

Read more »

Hands reaching high for a trophy with a sunset in the background.
52-Week Highs

6 ASX 200 shares smashing new highs while the market dives today

Do you own any of these lucky ASX 200 stocks?

Read more »

A woman wearing a top of gold coins and large gold hoop earrings and a heavy gold bracelet stands amid a shower of gold coins with her mouth open wide and an excited look on her face.
Gold

14 ASX gold stocks unearthing fresh 52-week highs today

Do you own any of these hot gold miners?

Read more »