UPDATE: Macquarie has just downgraded its rating on Harvey Norman Holdings Ltd (ASX: HVN) shares to neutral, following a remarkable surge of over 50% in 2025. This decision comes as the company reports a 9.1% increase in aggregated sales for the period from July 1, 2025, to November 20, 2025, compared to the previous year.
The Australian-based retailer, known for its extensive range of electronics, furniture, and entertainment goods, is experiencing strong momentum. According to Macquarie, the consumer electronics and furniture categories are witnessing significant growth, fueled by new product releases and ongoing demand for replacements from the pandemic period. Notably, comparable store sales have increased by 8.1% year-on-year, indicating robust consumer interest.
Despite this positive news, Macquarie warns of challenges ahead. The firm highlights that Harvey Norman’s real estate portfolio is facing headwinds, particularly due to a slowdown in detached housing creation in Australia. The report states, “
Our house view is the RBA cutting cycle has finished. While replacements are supporting current comps, we see the potential for further upside surprises as more limited.
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The international market also shows promise, with sequential improvements noted in sales across key regions including New Zealand, Malaysia, and the UK. This growth is expected to enhance earnings and support potential network expansions.
As of yesterday, Harvey Norman shares closed at $7.14, with Macquarie setting a price target of $7.60. This adjustment reflects a modest upside of 6.44%. The broker’s neutral rating suggests that while the company is performing well, particularly in tech and furniture, the recent share price increase of over 50% in the past year has balanced the risk/reward ratio.
Investors are urged to consider these developments closely. Macquarie’s insights indicate that, while Harvey Norman is thriving currently, the outlook may become more complex due to external economic factors.
For those looking to invest, it may be worth noting that Harvey Norman was not highlighted among the top stock picks by Motley Fool investing expert Scott Phillips.
Stay tuned for more updates as this story develops.
