Analysts sees potential tail winds for Australia's GUD Holdings' business

Amotiv

15/08/2023 22:19

** Analysts predict higher sales growth in FY24 from
Australia's GUD Holdings'  GUD.AX  AutoPacific Group, which
company had acquired in 2022 
    ** The automotive parts maker posted annual underlying net
profit after tax attributable of A$118.7 mln ($76.99 mln), up
33% on the prior period, while also flagging APG business to
report more revenue and EBITA growth in FY24  urn:newsml:reuters.com:*:nL4N39W0ZI 
    ** Analysts from Morningstar see AutoPacific’s sales to grow
at around 7% in fiscal 2024, while Citi estimates a 24% growth
in margins for the business for FY24 
    ** "GUD remains our top pick in the small cap auto parts
sector. APG continues to trend in the right direction on the
back of improving supply constraints," Citi anlaysts write 
    ** Morningstar maintains its fair value estimate over stock
of A$12 per share, with an "High" uncertainty rating. 
    ** Citi hikes its price target to A$13.30 per share, while
retaining a "Buy" rating on the stock 
    ** Eight of nine analysts rate the stock "buy" or higher,
one "hold" and none "sell" or lower; their median PT is A$11.78–
Refinitiv data
    ** Stock has risen ~54.9% this year, as of last close


($1 = 1.5307 Australian dollars)

 (Reporting by Archishma Iyer in Bengaluru)
 ((Archishma.Iyer@thomsonreuters.com;))