Citi sees U.S. revenue key for future growth on Australia's ARB Corp

ARB

06/11/2022 20:08

** Citi sees continued strength in vehicle upfitting as a
positive for Australia's ARB Corp  ARB.AX , noting the U.S. is a
key market for the company currently; expects U.S. revenue to
contribute higher proportion of future growth
    ** Citi expects the automobile accessory maker to continue
to expand their original equipment manufacturing (OEM) business
which brokerage feels is helpful for building brand awareness
and endorsement of product quality
    ** Brokerage remains "Buy" rated on the vehicles equipment
maker; gives target price of A$39.25
    ** Citi sees "positive read-throughs" for ARB from U.S.
Auto, Trucks and Motorcycle Parts maker Fox Factory Holding's
 FOXF.O  third-quarter results after the later revealed
continued sales growth momentum and a positive outlook for its
Powered Vehicles business
    ** Co on Oct. 28 said that its long-term initiatives should
support stronger sales in the second half of FY23 and in FY24
 urn:newsml:reuters.com:*:nFWN31SAJC
    ** Says given ARB's long-term growth prospects appear
unchanged, Citi sees the current weakness as temporary and as an
opportunity to get set in a quality long-term growth story for
the company
    ** Six of eight analysts rate the stock "buy" or higher and
two "hold"; their median PT is A$32.62 – Refinitiv data
    ** Stock has fallen 47.2% this year, as of last close
 (Reporting by Rishav Chatterjee in Bengaluru; editing by David
Evans)
 ((Rishav.Chatterjee@thomsonreuters.com;))