Jefferies scrutinises tariff impact on Australia's ARB amid market uncertainty

ARB

17/03/2025 19:02

** Jefferies highlights the fall of auto parts manufacturer ARB's ARB.AX shares after the U.S. election, despite ambiguity surrounding final tariff regime

** ARB's shares have dropped by 21%, contrasting avg 12% rise seen by Asian auto parts cos — brokerage

** Highlights 25% tariffs on USMCA partners and 20% on China, which led to a retaliatory tariff from China on larger U.S. vehicles

** The 25% extra tariff on steel and aluminium from all countries could affect ARB's ops in Thailand and Australia, but the impact on autos and auto parts remains unclear — Jefferies

** Brokerage observes ARB's expanding U.S. distribution, hinting at potentially significant market opportunity in world's largest 4x4 market

** Rates stock as "hold" at a price target of A$36/shr

** 5 of 14 analysts rate the stock "buy" or higher, 8 "hold" and 1 "sell"; their median PT is A$40.17 — LSEG data

** Stock down 16.4% YTD as of the last close

 (Reporting by Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk))