Australia's ARB Corp falls as UBS cuts PT on slowing revenue

ARB

21/05/2025 05:23

** Shares of auto parts manufacturer ARB Corp ARB.AX fall 3% to A$30.16, their lowest levels since April 24

** Stock among the top losers in the ASX200 benchmark index .AXJO

** UBS adjusts its net profit after tax outlook for co, placing them 5% and 11% below consensus estimates for FY25 and FY26

** UBS says this is due to slowing revenue from the sales of replacement parts and accessories for vehicles after their initial sale in AU, significant unhedged FX exposure, among others

** However, brokerage also highlights two potential positive revenue tailwinds for co in 2H25 being U.S. Toyota OEM ramp-up and sell-in to ORW/4WP stores

** Cuts price target to A$31/shr form A$34/shr; Maintains 'Sell' rating

** Stock down 25.8%, YTD

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;))