Citi upbeat on Australia's GUD Holdings' trading update

Amotiv

13/05/2024 19:46

** Analysts at Citi see the FY24 trading update from
Australia's GUD Holdings  GUD.AX  as positive
    ** Automotive aftermarket parts maker forecast on Monday its
FY24 underlying EBITDA to be at least A$193.5 mln ($127.85 mln),
in line with expectations
    ** "Market is likely to take... trading update as positive,
noting recent share price weakness arguably suggested a profit
downgrade was a possible outcome" - Brokerage
    ** However, Citi flags a destocking exercise by distributor
Bapcor  BAP.AX , a key customer for GUD, as a potential risk
    ** 10 of 11 analysts rate GUD  "buy" or higher, and one
"hold"; their median PT is A$13.30 – LSEG data
    ** Stock down 18.6% YTD, as of last close

($1 = 1.5135 Australian dollars)

 (Reporting by Aaditya Govind Rao in Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com;))