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The electronic retailer's stock jumped $A1.08 (US$.99) or 5.56 per cent to finish at $20.50, the highest since the company listed in October 2003.
JB Hi-Fi surprised the market on Wednesday with better-than-expected September quarter comparable store sales, with chief executive Richard Uechtritz telling media at its annual meeting that the Christmas trading period would be "reasonable" if the strong sales trend continued.
Like-for-like sales surged during the September quarter from 3.8 per cent for the first five weeks of 2009/10 to 8.4 per cent for the entire quarter to September 30.
Analysts at Deutsche Bank, UBS and Morgan Stanley ramped up their 12-month share price targets to $22.75, $21.50 and $23 respectively, while Credit Suisse upgraded its recommendation on the stock from Underperform to Neutral.
UBS' retail analysts Ben Gilbert and Paul Wong upgraded their 2009/10 net profit expectation by 0.7 per cent to $122 million - 29 per cent higher than the retailer's record 2008/09 profit of $94.4 million.
JB Hi-Fi is the cheapest among its peers, with earnings upside, sustained sales momentum, further upgrades to new store openings and economies of scale driving cost margins down, they said in a client note.
But they noted comparable store sales would become "increasingly challenging" for the remainder of 2009/10 as the impact of the government's fiscal stimulus washes out of the economy.
"We expect growth to moderate into Christmas," they said.
JB Hi-Fi on Wednesday also upgraded its target for new JB Hi-Fi-branded store openings during 2009/10 from 18 to 22, but maintained its previous sales guidance of about $2.8 billion, or a 20 per cent hike on the 2008/09 result.
A number of the new stores will be opened late in 2009/10 and "won't make too much of a difference" to total sales, Mr Uechtritz said.
Fifteen new JB Hi Fi-branded stores will open in the six months to Christmas making 137 in total, and the company said it will create 700 more jobs in 2010.
Chairman Patrick Elliott, declined to give profit guidance but said there was no reason why margins or the cost base would deteriorate drag down profitability.
(AAP)lm
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