UBS sees higher gross margins in FY23 for Australia's Autosports

Autosports

30/11/2022 05:22

** UBS forecasts higher gross margins for automotive dealer
Autosports Group Ltd  ASG.AX  in FY23 vs FY22 
    ** Brokerage maintains a "buy" rating for ASG with PT
unchanged at A$3.10 
    ** Says several gross margin headwinds for ASG are currently
being offset by positive business mix, where higher margin
back-end revenue is outpacing front-end growth
    ** UBS, however, trims FY23 revenue forecasts marginally
    ** Brokerage says it continues to forecast a return to more
normalised conditions (i.e. margins) across FY24-25
    ** ASG shares rise as much as 3.6% to A$2.010 on Wednesday
    ** All five analysts covering ASG rate the stock "buy" or
higher; median PT is A$3.10 – Refinitiv Eikon data 
    ** Stock down 9.4% so far this year, as of last close 
 (Reporting by Udbhav Krishna P in Bengaluru)
 ((UdbhavKrishna.P@Thomsonreuters.com))