UBS has upgraded Harvey Norman (ASX:HVN) to Buy from Neutral citing an uplift in housing trends, better pricing, and a reduction in franchisee support

UBS has upgraded Harvey Norman (ASX:HVN) to Buy from Neutral citing an uplift in housing trends, better pricing, and a reduction in franchisee support. The upgrade follows HVN's results announcement which, while in line with consensus, was below UBS estimates. Although the broker has lowered its estimates for FY14, it remains more bullish than the overall market in believing the tide has turned for the retailer. The broker has raised the target price from $3.00 to $3.30 (current price $3.01) and notes that the stock is trading at an 18% discount to the ASX200. If HVN meets the UBS target it will return approximately 10%. Based on the stock's last closing share price, its estimated Price to Earnings Ratio (PER) is 15.05.