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

ARB

30/03/2026 19:53

** Citi raises concerns over Australia's ARB Corp ARB.AX prioritising dividends over required investment in engineering and fitment capacity

** Brokerage adds, funding in engineering is needed to maximise growth potential of 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 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 – LSEG data

** Stock down 35% this year, as of last close

 (Reporting by Rajasik Mukherjee in Bengaluru)

 ((Rajasik.Mukherjee@thomsonreuters.com))