Turnaround for Australia's AMA group to remain challenging - Jefferies

Ama

11/05/2022 24:55

** Analysts at Jefferies say a turnaround for vehicle
repairing co AMA Group  AMA.AX  remains challenging 
    ** Cuts PT to A$0.30 from A$0.45, retains rating at "hold"
    ** Brokerage says volumes recovery for co is slower than
expected
    ** Turnaround time for co keeps getting pushed as labour
shortage, soaring inflation and supply chain constraints persist
- brokerage
    ** Jefferies cuts AMA's FY22 and FY23 EPS estimates by more
than double and 30%, respectively; slashes FY22 EBIDTA forecast
to A$65.8 million ($45.63 million)
    ** AMA remains a challenging turnaround story. There are
easier turnaround stories to be found - Jefferies
    ** One of six analysts rate the stock "buy" or higher, five
"hold"; their median PT is A$0.33– Refinitiv Eikon data 
    ** Stock is down 44.2% so far this year, as of last close 

($1 = 1.4420 Australian dollars)

 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))