Citi sees risks for Australia's ARB Corp from subdued after-market sales in FY22

ARB

17/08/2021 04:44

** Citi says ARB Corp  ARB.AX  faces risk from sales in
Australian after-market slowing over fiscal 2022
    ** Says the vehicle accessory retailer likely to take hit
from lockdowns, less stimulus, slowing of new car sales
    ** Broker retains price target at A$47.15 and a "neutral"
rating 
    ** Co flags logistical & supply chain constraints coupled
with labour shortages have led to rising operational costs
    ** Stock down about 1% at A$48
    ** Citi adds that ARB's cash conservation was 77% below
broker's estimates driven by higher inventory days
    ** Three of eight analysts rate the stock "buy", 4 "hold"
and 1 "sell"; their median PT is A$2.8 – Refinitiv data
    ** Stock had risen 57.4% this year as of last close

 (Reporting by Savyata Mishra in Bengaluru)
 ((Savyata.mishra@thomsonreuters.com))