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ARB - ARB News Story

A$35.4 0.3  1.0%

Last Trade - 7:10am

Consumer Cyclicals
Mid Cap
Market Cap £1.58bn
Enterprise Value £1.56bn
Revenue £286.8m
Position in Universe 159th / 1896

BUZZ-Citi sees ARB's medium-term outlook improving, upgrades to 'buy'

Fri 8th January, 2021 4:53am
** Citi Research upgrades vehicle accessories maker ARB Corp
 ARB.AX  to "buy" from "neutral" and raises PT to A$$34.25 from
    ** Sees co's medium-term outlook improving as discretionary
spending in CY21 is likely to be supported by higher household
    ** Hikes ARB's FY21e to FY23e NPAT estimates by 2% to 3%
expecting 2H21 to benefit from a pickup in SUV/4x4 sales 
    ** Notes ARB's instant asset write-off programme extension,
as well as a strong pickup in truck demand in the United States,
as boding well for export sales 
    ** Notes that new car sales increased for the second
consecutive month in December
    ** Says a growing new car sales market is less favourable
for peers Bapcor  BAP.AX  and the majority of GUD's  GUD.AX 
businesses as new cars are typically serviced at dealer garages,
and have less wear and tear relative to older cars
    ** Says used car demand remains strong due to lack of supply
and as new vehicle sales were hit by factory closures, lockdowns
and weak economic environment
    ** Sees increased demand for used cars after the COVID-19
disruption as positive for Bapcor and GUD given that both
companies typically target cars which are >5 years old, and
older cars are more likely to be serviced at independent

 (Reporting by Arundhati Dutta in Bengaluru)
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