Citi downbeat on Australia's ARB Corp; flags rising risk to FY26 earnings

ARB

03/04/2025 04:39

** Shares of ARB Corporation ARB.AX fall 6.1% to A$29.920, their lowest level since November 2, 2023

** Stock set for its weakest session since February 7, 2023, if trend holds

** Analysts at Citi anticipate rising risk to co's U.S. earnings in FY26 due to implementation of a previously announced 25% tariff on automobiles and auto parts

** Citi says demand could be lower for some of co's vehicles which are manufactured outside of U.S.

** Brokerage flags consumers could curb their spending on car accessories

** Stock among the top losers on the ASX 200 benchmark index .AXJO

** Brokerage maintains "neutral" rating with a price target of A$39.54

** Analysts on average rate the stock "hold" or higher; median price target A$38.77 - data compiled by LSEG

** Stock down 26.3% YTD, including current session's moves

(Reporting by Manasi Dasa in Bengaluru)

((Manasi.DasaSundeep@thomsonreuters.com;))