Harvey Norman's 'Written Orders' Metric Doesn't Give Much Comfort
Dow Jones
Yesterday
2247 GMT - Harvey Norman's snapshot of recent trading stated that written orders in Australia rose in August, after sales fell by 3.4% in July. For Jefferies, the 'written orders' metric doesn't give much comfort. That's because it isn't regularly disclosed and refers only to orders for goods not yet delivered, analyst Michael Simotas says. So, they could be very volatile over such a short period. "We believe demand is being impacted by housing weakness and Harvey Norman's operating deleverage can be severe," says Jefferies, retaining a hold call on the stock. Harvey Norman ended last week at A$4.42, roughly in line with Jefferies's A$4.40 price target.
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