On Monday, the JB Hi-Fi Ltd (ASX: JBH) share price crashed 8% to finish the day at $107.83.
The catalyst for this was the release of the retail giant's full year results for FY 2025.
While the ASX 200 share delivered a strong result and revealed a positive start to the new financial year, news that its CEO is stepping down overshadowed this.
One leading broker believes this could be a buying opportunity for investors. Let's see what it is saying about the retailer.
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What is the broker saying about this ASX 200 share?
Bell Potter was impressed with the company's performance in FY 2025, highlighting that its result was largely ahead of consensus expectations.
The broker was also pleased with the company's strong start to FY 2026. It said:
JB Hi-Fi (JBH)'s FY25 revenue, gross profit and dividends were beats, however EBIT a miss to consensus. Positively the Jul-25 trading update (start of FY26) of +5%, +24% and +4% in comparable sales growth for JBH Aus, NZ and Good Guys (GG) respectively together with the FY26e new store guidance were stronger than BPe.
The elephant in the room is of course the exit of Terry Smart as its CEO. However, the broker believes that the appointment of COO, Nick Wells, as his replacement will mean there is a smooth transition. It adds:
After ~25 years in the business, the company announced the retirement of current Group CEO, Terry Smart, with Nick Wells who has been with the business for 16 years including 10 years in the CFO role and most recently as COO to take over from Oct25. We anticipate a smooth leadership transition with the extensive cross-over period.
Buy the dip
As mentioned above, Bell Potter thinks investors should be taking advantage of Monday's share price weakness.
In response, the broker has retained its buy rating on the ASX 200 share with an improved price target of $119.00 (from $114.00). Based on its current share price of $107.83, this implies potential upside of 10% for investors over the next 12 months.
In addition, it is forecasting dividend yields of 3.1% in both FY 2026 and FY 2027. This boosts the total potential 12-month return to over 13%.
Commenting on its buy recommendation, the broker said:
Our PT increases by 4% to $119.00 (prev. $114.00) driven by earnings revisions, while our target P/E multiple remains unchanged at ~27x on a blended FY26/27e basis (skewed to FY26e). We retain our view of JBH as one of the most productive retailers globally with leading unit economics (JBH Aus) while also well placed to benefit from the replacement & upgrade cycle of computing & telco devices driven by AI capability/end of useful life.
As today's share price correction sees the stock trading at ~24x FY26e P/E (BPe), we see valuation support considering the catalysts of operating leverage in the key parts of the business from FY26e onwards. Retain BUY.
