Jefferies cuts PT on Australia's Ampol as businesses lag

Convenience Retail Asia

25/10/2022 21:58

** Jefferies cuts price target on Australian fuel retailer
Ampol Ltd  ALD.AX  to A$36.50 from A$39.00; maintains 'buy'
rating
    ** Brokerage says 'disappointed' to see Fuels &
Infrastructure (F&I) (ex Lytton) lose money on trading losses
and continued drag from elevated jet product freight
    ** Says Convenience Retail (CR) delivered its best EBIT
since the onset of the pandemic, with recovering volumes
compounded by margin strength as fuel prices fell; Z Energy too
performed well, helped by robust importer margins
    ** Jefferies says while margins are unlikely to sustain
their unprecedented levels, expects them to remain somewhat
elevated given global supply constraints
    ** Nine of 11 analysts rate the stock "buy" or higher, two
"hold"; their median PT is A$35.48 – Refinitiv data
    ** Stock has fallen 7.8% this year, compared with an
8.7%decline in the benchmark index  .AXJO 
 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))