ARB Corp eyes worst day in over 3 months after brokerage cuts profit forecast

ARB

07/02/2023 01:31

(Updates with stock moves)
    ** Shares of Australia's ARB Corp  ARB.AX  fall as much as
6.8%; set for their worst day since Oct. 28, 2022
    ** Analysts at Morningstar lower full-year profit before tax
(PBT) estimate on Australia's ARB Corp  ARB.AX  after the
release of prelim interim fiscal 2023 earnings
    ** Says margins have contracted earlier than expected; FY
PBT forecast lowered by 14% to A$139 million ($95.48 million)
    ** Brokerage flags that the main issue with the
car-accessories maker is subdued new vehicle sales on the back
of semiconductor shortages
    ** Morningstar forecasts Australian new vehicles sales
volumes to remain subdued throughout 2023 before picking up
again in 2024
    ** Co extends losses and is also the top loser on AXJO
benchmark
    ** Co said on Monday its prelim 1H 2023 profit before tax
declined nearly 30% within a range of A$64 mln to A$64.6 mln due
to elevated inflationary pressures affecting base costs
    ** Brokerage, however, forecasts margins stabilising in
fiscal 2024; raises fair value estimates by 4% to A$24.50
    ** Five of eight analysts rate the stock "buy" or higher,
and three "hold"; their median PT is A$32.62 – Refinitiv data
    ** Stock has risen 29.8% this year, as of last close
($1 = 1.4558 Australian dollars)
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))