Australia's GUD Holdings sinks most since 2008 after weak profit forecast

Amotiv

17/06/2022 01:41

(Adds shares, milestones)
    ** Shares of GUD Holdings  GUD.AX  drop as much as 20.4% to
A$7.65, their biggest intraday pct loss since Nov. 18, 2008 
    ** GUD on Thursday, after market close, said it expects FY22
earnings before interest, taxes, and amortization (EBITA) of
A$147 mln ($103.59 mln), 7% below midpoint of its previous
forecast range of A$155 mln to A$160 mln and 10% below Factset
consensus estimate of A$163 mln  urn:newsml:reuters.com:*:nASXc1b08F
    ** Citi Research downgrades GUD to "neutral" from "buy";
lowers PT by 36% to A$9.95 
    ** Citi says downgrade reflects increased uncertainty
surrounding GUD's earnings recovery, which is primarily reliant
on supply from Original Equipment Manufacturer (OEM) normalising
    ** Citi says OEM supply shortages are not likely to be
resolved anytime soon and are outside GUD's control
    ** Stock hits lowest since March 25, 2020 and tops losses on
the benchmark index  .AXJO 
    ** Citi lowers GUD's FY22 and FY23 net profit after tax
estimates by 7% and 15%, respectively
    ** All seven analysts covering the stock rate it "buy" or
higher; their median PT is A$14.90 – Refinitiv data
    ** Stock down 15.5% this year, as of last close


($1 = 1.4190 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com))