Australia's ARB slips after Citi says prioritising dividends could hinder growth potential

ARB

31/03/2026 01:51

Updates

**  Shares of Australia's ARB Corp ARB.AX fall as much as 1.6% to A$20.120, hitting the lowest level since Feb. 24

** Citi raises concerns over ARB prioritising dividends over required investment in engineering and fitment capacity

** Brokerage adds, funding in engineering is needed to maximise the growth potential of the business

** "We think ARB will benefit from investing more into its engineering resources rather than paying out special dividends" - Citi

** Analysts at Citi see potential for higher fuel prices in the near term

** Adds, reduced fuel availability to trouble the stock

** Citi rates stock "neutral", target price of A$22.05

** 10 of 14 analysts rate the stock "Buy" or higher, four "Hold"; their median PT is A$27.50 – data compiled by LSEG

** Stock down 35.3% this year, including the day's moves

(Reporting by Rajasik Mukherjee in Bengaluru)

((Rajasik.Mukherjee@thomsonreuters.com))