Analysts maintain 'positive', 'neutral' ratings for Peter Warren, Eagers

Capital Power

15/01/2024 05:03

** E&P Capital's analysts maintain "positive" rating for
Peter Warren Automotive Holdings  PWR.AX  and "neutral" for
Eagers Automotive  APE.AX  on relative valuation grounds
    ** Shares of PWR rise 3% to A$2.39; APE shares down 0.9% to
A$14.32
    ** Analysts cut valuation of APE by 7% to A$12.53 per share
    ** Co's revenue and margins, based on revised numbers for
its acquisitions in Melbourne, lower than analysts' expectations
    ** Analysts lower revenue and profit estimates by 1.2% and
6.3% for FY24
    ** Brokerage also slashes vehicle retailer PWR's core profit
by 8%,9% and 10% through FY24-26 on higher floorplan expenses
    ** All eight analysts covering PWR stock rate it "buy" or
"higher"; their median PT is A$3.32- LSEG data
    ** Average rating of 14 analysts for APE is equivalent to
"buy"; median PT is A$15.95 - LSEG data
    ** PWR dropped 9.6% in 2023
    ** APE gained 33.5% in 2023

 (Reporting by Megha Rani in Bengaluru)
 ((Megha.Rani2@thomsonreuters.com;))