Morningstar sees supply pressures weighing on GUD Holdings' near-term outlook

Amotiv

19/06/2022 22:49

** Analysts at Morningstar anticipate headwinds for
Australia's GUD Holdings  GUD.AX  to persist through fiscal 2023
but keep their longer-term forecasts largely unchanged
    ** The automotive parts maker last week said it expects FY22
EBITA of circa A$147 mln ($101.81 mln), about 7% below midpoint
of its previous forecast range of A$155 mln to A$160 mln
 urn:newsml:reuters.com:*:nASXc1b08F
    ** Morningstar thinks much of GUD's near-term struggles are
attributable to AutoPacific, a vehicles accessories maker which
GUD acquired in late 2021
    ** Says semiconductor shortages continue to weigh on new
vehicle supplies, which in turn is weighing on AutoPacific
    ** Morningstar estimates tight supply to persist in near
term but expects supply constraints to ease gradually during
fiscal 2023
    ** Morningstar notes that GUD's new vehicle-exposed
businesses have worsened in recent weeks and lowers its FY22
EBITA forecast to A$147 mln; cuts underlying EBITA forecast for
FY23 by 6%
    ** Morningstar maintains its fair value estimate at A$12 and
says that GUD shares "appear undervalued" at current prices
    ** Six of seven analysts rate the stock "buy", one rates it
"hold"; their median PT is A$13.65 - Refinitiv data
    ** As of last close, stock down 32% this year 

($1 = 1.4438 Australian dollars)

 (Reporting by Himanshi Akhand in Bengaluru; Editing by Daniel
Wallis)
 ((Himanshi.Akhand@thomsonreuters.com;))