Citi cautious on near-term demand for Australia's Peter Warren Automotive
31/10/2023 19:53
** Analysts at Citi remain cautious on near-term demand for
Peter Warren Automotive Holdings Ltd PWR.AX ; Citi's economists
forecast two interest rate hikes in November and December from
the central bank
** Brokerage rates automotive dealership "buy" and gives
target price of A$3.50
** Citi expects current order book of co to support
earnings; sees order book to be only slightly below June 2023
levels
** Brokerage sees new car revenue to be tracking ahead of
pcp as supply has improved
** Citi sees PWR's service and parts business delivering
growth in 1Q24
** However, brokerage sees potential for bailment costs to
step up further
** All eight analysts rate the stock "buy" or higher; their
median PT is A$3.32 - LSEG
** PWR down 11.5% YTD, as of last close
(Reporting by John Biju in Bengaluru)
((John.Biju@thomsonreuters.com;))