The JB Hi-Fi Limited (ASX: JBH) share price continued its ascent on Tuesday.
The retail giant's shares rose 4% to end the day at $53.70.
This means the JB Hi-Fi share price is now up over 9% since the start of the week.
Why is the JB Hi-Fi share price rising?
Investors have been bidding the JB Hi-Fi share price higher this week following the release of its half year results.
Although its sales and profit numbers were pre-released to the market in January, there were a couple of pleasant surprises that gave its shares a boost.
These were that trading was positive during the month of January, with JB Hi-Fi Australia and The Good Guys delivering solid year on year growth. The other was a $250 million off-market share buyback.
Can its shares keep climbing?
According to a note out of Morgans, its analysts believe the JB Hi-Fi share price has room to climb higher.
This morning the broker retained its add rating and $57,00 price target on its shares. Based on the current JB Hi-Fi share price, this implies potential upside of 6.1% before dividends and almost 11% including them.
Morgans commented: "JB Hi-Fi pre-announced its headline 1H22 earnings last month. The full earnings release issued today confirmed that EBIT was down 9% to $420.5m, but this was 60% above 1H20 and 17% above our estimate before the January trading update. Gross margins and operating cash flow were better than we had forecast."
"We see JBH as a well-run retailer with good cost discipline, a robust balance sheet and a strong market position. Although we see only modest growth opportunities, we regard JBH as undervalued at current multiples and reiterate our ADD rating," the broker concluded.
