Citi says ARB's earnings growth target too modest, keeps 'neutral' rating
02/09/2026 22:36
BUZZ-Citi says ARB's earnings growth target too modest, keeps 'neutral' rating ** Citi maintains 'neutral' rating on Australia's ARB Corporation ARB.AX, with a target price of A$22.50
** Brokerage says executive remuneration changes by the motor vehicle accessories maker a step in "right direction", with higher EPS growth hurdles and a greater proportion of incentives linked to performance
** But argues EPS growth targets need "more stretching", given ARB's growth potential
** Adds, given scope for improved vehicle supply and execution in Australia, among others, strong EPS growth should be achievable over time
** ARB last closed down 1.82%, raising YTD losses to 39.9%
(Reporting by Subhalakshmi Dey in Bengaluru)
Recent news on ARB
See all newsMorningstar cuts fair-value estimate for Amotiv, says shares materially undervalued
Citi cautious on ARB recovery, Morningstar sees value
Australia's ARB hits over 6-year low after warning of softer Q1 trading
Citi sees board shuffle at Australia's ARB as positive, but not transformational
Citi says ARB's earnings growth target too modest, keeps 'neutral' rating