Australia's auto firms: Jefferies prefers Peter Warren over Eagers Automotive

Peter Warren Automotive Holdings

06/09/2021 24:42

** Brokerage firm Jefferies says it prefers Australian auto
firm Peter Warren Automotive Holdings Ltd  PWR.AX  over peer and
rival Eagers Automotive Ltd  APE.AX 
    ** Says PWR has superior growth prospects, but lags APE as
it is more affected by lockdowns with 49% of its sales coming
from the sealed state of New South Wales  urn:newsml:reuters.com:*:nRscdPbDZa
    ** Adds that long-term growth in the sector will come from
M&A activity, which may be key driver for PWR
    ** Forecasts negative EPS growth for both in the near term,
says forecasts exclude M&A
    ** Nine out of 13 analysts covering APE rated it "buy" or
higher, three rated "hold" and one "sell" or lower; their median
PT being A$18.13 – Refinitiv data
    ** PWR has lost 9.5% this year, as of last close, vs a 25.3%
rise in APE

 (Reporting by Yamini C S)
 ((Yamini.CS@thomsonreuters.com;))