Although the JB Hi-Fi Limited (ASX: JBH) share price managed to carve out a gain of over 1% to $22.46 on Friday, its shares could come under significant selling pressure in the near future according to one leading broker.
What has the broker said?
A note out of Citi today reveals that its analysts have retained their sell rating and $19.00 price target on the electronics retailer's shares.
This price target implies potential downside of over 15% for its shares over the next 12 months.
According to the note, Citi's analysts appear sceptical on the company being able to accelerate its growth enough to deliver on its full-year guidance.
This will no doubt be all the more harder given the launch of Amazon in Australia.
The retail behemoth is expected to go head on with JB Hi-Fi by offering its own AmazonBasics consumer products.
Unfortunately for JB Hi-Fi, these products are likely to be similar to its own offerings and also cheaper.
Should you sell?
While I don't think Amazon's arrival will be a major negative for all Australian retailers, I do think the likes of JB Hi-Fi, Harvey Norman Holdings Limited (ASX: HVN), and Myer Holdings Ltd (ASX: MYR) could see a significant loss of market share and weaker margins.
In light of this, I would consider selling all three if I owned them today.
