Citi flags tough demand backdrop for Australia's ARB on weak vehicle sales

ARB

07/04/2026 21:33

** Citi says Australia's ARB Corp ARB.AX faces a tough industry backdrop as March new vehicle sales point to continued pressure on demand

** Brokerage highlights weakness in small- and mid-sized SUVs -typically key ARB accessory categories - as buyers spread across a wider range of vehicle models

** Sees merit in higher investment in engineering and fitment capacity to support long-term growth, particularly as the vehicle mix shifts

** Citi keeps ARB rated "neutral", with a A$22.05 price target

** Says brokerage awaits clearer signs that demand is stabilising and investment in capacity is picking up

** Stock down 35.2% this year, as of last close

 (Reporting by Roushni Nair in Bengaluru)

 ((Roushni.nair@thomsonreuters.com))