Harvey Norman & Super Retail Group

What is your view on:
Harvey Norman
Super Retail Group

What do they offer in terms of share growth and/or dividends?

A: Thanks for the question.

In the retailing space, I prefer JB Hi-Fi, but note that both Harvey Normal (HVN) and Super Retail Group (SUL) have strong records. With the latter, I struggle to understand how all the component pieces fit in.

In regards to your question, probably best to use the broker forecasts. According to FN Arena:

Harvey Norman – trading on a multiple 15.6 times FY16 earnings, 14.6 times FY17 earnings
Forecast yield is 5.3% for FY16, 5.4% for FY17, should be fully franked
Consensus target price of $4.68

Super Retail – trading on a multiple of 18.1 times FY16 earnings, 14.0 times FY17 earnings
Forecast yield is 4.6% in FY16, 5.2% in FY17 , should be fully franked
Consensus target price of $9.71


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