JB Hi-Fi Ltd (ASX: JBH) shares are surging in pre-market trading, climbing 5.92% amid a broker upgrade and overall positive market sentiment. The electronics retailer's stock movement comes as the broader Australian market is poised for a significant rebound.

The catalyst for JB Hi-Fi's impressive gain appears to be a notable upgrade from Bell Potter. The broker has raised its recommendation on JBH shares to a "buy" rating, setting a price target of $99.00. Bell Potter's analysts view JB Hi-Fi as "one of the most productive retailers globally," citing its leading revenue per square meter metric and strong operating margins in its Australian operations. The broker also expressed confidence in JB Hi-Fi's growth prospects, highlighting the company's market leadership position as the technology category continues to capture a larger share of consumer spending.

Adding to the positive sentiment, Bell Potter considers JB Hi-Fi's current valuation of approximately 20 times CY25 estimated P/E as attractive, especially in light of the recent market sell-off. This upbeat assessment comes against the backdrop of a broader market rally, with the ASX 200 expected to open significantly higher, potentially providing additional tailwinds for JB Hi-Fi and other ASX-listed companies.