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Australia's JB Hi-Fi falls after Morningstar says shares overvalued

By Reuters News00:37 (UTC), 2 November 2026 Updated

** Shares of Australia's JB Hi-Fi JBH.AX fall as much 1% to A$72.155

** Morningstar says shares of JB Hi-Fi are overvalued, retains its fair value estimate of A$58 per share

** Morningstar says it now expects lower profit margins in fiscal 2027, corresponding with lower near-term sales

** The investment research firm says EBIT margins would need to average 7.2% over the decade for morningstar's valuation to match current share prices

** Morningstar adds that margin expansion from greater sales is unlikely, forecasts long-term pretax margins stabilize at fiscal 2027 levels

** Seven of 14 analysts rate the stock "buy" or higher, 5 "hold" and 2 "sell"; their median PT is set at A$78.50 – LSEG data

** YTD, stock down 24.7%

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