JB Hi Fi Ltd (ASX: JBH) shares have delivered stockholders some outsized gains over the past year.
Shares in the S&P/ASX 200 Index (ASX: XJO) electronics retailer are currently sitting at $98.40. That puts them up 69.98% since this time last year, dwarfing the 10.83% gains delivered by the ASX 200 over this same time.
And that's not including the $3.41 a share in fully franked dividends JB Hi-Fi paid out over the year. If we add those back in, then JB Hi-Fi stock is up an accumulated 75.9% over 12 months.
But with those kinds of gains already in the bag, should investors consider taking some profits off the table?
Time to sell those soaring JB Hi-Fi shares?
MPC Markets' Jonathan Tacadena has a very positive view on JB Hi-Fi shares.
But following the stellar run higher for the ASX 200 retail stock, he nonetheless has a sell rating on them (courtesy of The Bull).
"This consumer electronics giant is a top performer," Tacadena said.
He added:
It continues to generate sales growth and, accordingly, investors have reacted positively to the stock. The shares have risen from $57.44 on January 25, 2024, to trade at $98.48 on January 23, 2025.
And that, Tacadena said, may portend the end of the current rally for JB Hi-Fi.
"In our view, the shares are priced to perfection, leaving little or no room for error. The stock is trading at premium valuations compared to its peers," he said.
According to Tacadena:
Any downturn in what is widely considered a subdued economy could negatively impact the shares. Investors may want to consider cashing in some gains.
Citi says buy
Despite MPC Markets' standpoint on JB Hi-Fi shares, Citi still reckons there is plenty more juice left in the retailer's tank.
Just last week, the broker reaffirmed its buy rating on the stock and upgraded its price target from $85 to $110. The upgrade helped propel JB Hi-Fi shares up by 2.68% on the day.
If JB can achieve Citi's price target, this suggests around 12% upside from current pricing.
What's been happening with the ASX 200 electronics retailer?
The last price-sensitive information to directly impact JB Hi-Fi shares came on 31 October.
That's when the company released its first quarter trading update (Q1 FY 2025) and reported on its annual general meeting (AGM).
Investors reacted positively to the trading update, with JB Hi-Fi achieving growth in both its Australian and New Zealand JB Hi-Fi businesses along with the Good Guys.
Among the highlights, the company reported total sales growth for JB HI-Fi Australia of 4.9%, total sales growth for JB Hi-Fi New Zealand of 19.6%, and total sales growth for The Good Guys of 5.3%
At the company's AGM, CEO Terry Smart noted, "FY 2024 was another strong year with group sales of $9.59 billion, group earnings before interest and taxes (EBIT) of $647.2 million and earnings per share of 401.4 cents."
JB Hi-Fi shares closed up 5.3% on the day.
