Jefferies upgrades Harvey Norman to 'buy', lifts PT

** Analysts at Jefferies raise PT on Australia's Harvey Norman HVN to A$5.85 from A$4.75; upgrade rating to "buy" from "hold"

** Says the discretionary retailer is seeing early benefits from improving demand which is resulting in operational leverage and local margin expansion

** Brokerage sees long-term upside in the stock from its expansion in U.K. and Asia

** Says co has strong property backing and a history of performing well when the consumer cycle turns

** Seven of 12 analysts rate the stock "buy" or higher, three "hold" and two "sell"; their median PT is A$5.40 – LSEG data

** Stock up 11.8% YTD