Australia's Amotiv logs biggest drop in 16 months on soft outlook
BUZZ-Australia's Amotiv logs biggest drop in 16 months on soft outlook ** Shares of Australia's Amotiv AOV.AX fall as much as 14.3% to A$6.35, marking their biggest intraday pct loss since April 4, 2025
** In fiscal 2027, the company sees "modest" revenue and underlying EBITA growth, due to "subdued" conditions in Australia and New Zealand
** Automotive products firm logged full-year underlying EBITA of A$195.1 million ($137.64 million), compared with A$192 million a year ago, and statutory NPAT of A$75.1 million versus a loss a year earlier
** While AOV's underlying EBITA was slightly above Visible Alpha consensus, its statutory NPAT came in well below the VA estimate of A$94.5 million, Citi says
** Amotiv continues to successfully execute on its cost-out programme, although Citi does not expect a step change in end-market demand and says further cost-out is needed to offset inflationary pressures
** Citi adds that while the stock's valuation is undemanding, it is "difficult to see any catalysts that will re-rate the stock materially higher"
** Stock down nearly 30% YTD
($1 = 1.4174 Australian dollars)
(Reporting by Shruti Agarwal in Bengaluru)
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Australia's Amotiv logs biggest drop in 16 months on soft outlook