Jefferies cuts AMA Group's PT on profitability concerns

Ama

31/05/2022 23:17

** Jefferies cuts AMA Group's  AMA.AX  PT to A$0.20 from
A$0.30 as it does not forecast vehicle repairing co returning to
profits until FY24
    ** Brokerage cuts FY22 forecasts to bring within guidance
range but remain below FY23-24 guidance, given lack of clarity
around co's core profitability drivers
    ** Sees annual net loss after tax of A$54 mln ($38.80 mln),
A$13 mln for FY22 and FY23, respectively, and net profit after
tax of A$22 mln for FY24
    ** Sees annual revenue of A$883 mln, A$951 mln and A$1,042
mln for FY22, FY23 and FY24, respectively
    ** Conditions are tougher than we assumed. Volumes are
recovering, but profitability is pressured due to elevated
costs/insufficient insurer recoupment - Jefferies
    ** One of six analysts rate stock "buy" or higher and five
"hold"; their median PT is A$0.33 – Refinitiv Eikon data 
    ** Stock had fallen ~4.6% this year, as of Monday's close
    
    

($1 = 1.3918 Australian dollars)

 (Reporting by Upasana Singh in Bengaluru)
 ((Upasana.Singh@thomsonreuters.com))