Harvey Norman's AGM update flagged like-for-like Australian comparable growth in FY26 so far of 6.4%, which is in line with the August update, yet Morgan Stanley points out comparables will get harder to cycle as the year draws to a close.

The company has extended its buyback program until November 23, 2026, although the broker notes the previous buyback was not executed.

Morgan Stanley continues to prefer Harvey Norman over JB Hi-Fi ((JBH)) within the mid-cap retail segment amid greater operating leverage from the franchisee model and valuation tailwinds from property. Equal-weight rating and $7.60 target. Industry View: In-Line.

Sector: Retailing.

Target price is $7.60.Current Price is $7.29. Difference: $0.31 - (brackets indicate current price is over target). If HVN meets the Morgan Stanley target it will return approximately 4% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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