Jefferies initiates coverage for Australia's ARB Corp; stock down on subdued rev growth view

ARB

10/07/2023 06:15

** Jefferies sees subdued revenue growth for car accessories
maker ARB Corporation  ARB.AX  in near term as post-Covid demand
for car parts and accessories set to cool
    ** Co stock falls as much as 0.8% to A$28.04
    ** Local suppliers' improved range and quality of
aftermarket services, a dominant segment for ARB, likely to
further drag revenue growth in medium term - Jefferies
    ** But brokerage views ARB's more modest exposure to new
vehicle sales as positive as aftermarket sales less volatile,
has higher margins and growth
    ** Initiates coverage for ARB at 'hold'; PT at A$28.26 
    ** 3 of 10 analysts rate the stock "buy" or higher, five
"hold" and two "sell" or lower; median PT is A$29.43 – Refinitiv
data 
    ** Stock up 10.1% so far this year, as of last close 
    


 (Reporting by Navya Mittal in Bengaluru)
 ((navya.mittal@thomsonreuters.com))