Canaccord Genuity confident on Australia's AMA Group's long-term basics

Ama

17/04/2023 23:11

** Canaccord Genuity (CG) says longer-term thesis around
Australian automotive aftercare firm AMA Group Ltd  AMA.AX 
remains intact despite its annual outlook cut
    ** Brokerage cuts price target AMA to A$0.24 from A$0.30,
but maintains "speculative buy" rating on long-term confidence
    ** AMA on Monday cut its FY23 normalised EBITDA outlook,
citing margin pressures due to labour constraints, higher cost
of repairs
    ** Brokerage cuts FY23 EBITDA by 12% to A$62.5 mln ($41.88
mln), and by 21.3% to A$94.5 mln for FY24
    ** Three of seven analysts rate the stock "buy" or higher,
three "hold" and one "sell" or lower; their median PT is A$0.27
– Refinitiv data
    ** AMA down 25.6% this year, as of last close, vs a 4.9%
increase in the ASX All Ordinaries index  .AORD 

($1 = 1.4925 Australian dollars)

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))