JPMorgan analyst, Shaun Cousins, has upgraded Harvey Norman from ‘underweight’ to ‘neutral’ – news which has sent the retailer’s shares soaring by as much 6.9% to $3.58.

The increase is Harvey Norman’s best one-day performance since late 2014.

The broker has reportedly provided four reasons for its positive outlook including; dividend and valuation support, a ‘subdued’ outlook for its current earnings forecast, and ‘modest’ costs from its dairy joint venture.

According to The Sydney Morning Herald, Cousins affirms earnings risk is “skewed to the downside”, however, valuation support is now “emerging at current share price levels”.

JPMorgan has cut its target price from $3.75 to $3.65.

The news follows ~20% decline in Harvey Norman shares over the past year.

Shares in Harvey Norman are currently trading 4.47% higher to $3.50.