Australia's GUD Holdings car sales growth recovery uncertain - Citi

Amotiv

07/09/2023 22:39

** Citi says there is uncertainty around how long automotive
firm GUD Holdings  GUD.AX  will be able to sustain its car sales
growth recovery
    ** The recovery may not represent the true demand for new
cars given the rising cost of living pressures - brokerage
    ** GUD posted FY underlying net profit after tax
attributable of A$118.7 million ($75.68 million), up from A$89.3
million a year ago
    ** Citi cuts FY24 NPAT forecast on GUD by 3%, reflecting
export investment and overhead reallocation post the Davey sale
    ** Raises price target to A$13.95 from A$13.30; maintains
"buy" rating, driven by positive outlook for its AutoPacific
Group business 
    ** Out of 9 analysts, 8 rate the stock "buy" or higher and 1
"hold"; their median PT is A$13.20 – Refinitiv data
    ** Stock up 58.2% this year, as of last close

($1 = 1.5684 Australian dollars)

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))