Jefferies raises PT on Peter Warren Automotive on results beat, forecast

Peter Warren Automotive Holdings

28/08/2022 19:42

** Jefferies says FY22 results for Australia's Peter Warren
Automotive Holdings  PWR.AX  were a credible beat on its
estimates and FY23 outlook commentary was positive due to a
strong order book; raises PT to A$3.10 from A$2.70, maintains
'buy' rating 
    ** The motor vehicle dealer gained up to 5% on Friday after
reporting a annual underlying net profit after tax of A$61.7
million ($42.51 million), up 18.2% compared with last year
 urn:newsml:reuters.com:*:nL4N3020YR
    ** Brokerage says PWR is a cheap, quality auto dealer with a
strong balance sheet and significant market consolidation
opportunity ahead of it 
    ** We are a bit concerned on the consumer demand cycle
beyond FY23, we believe PWR is priced for such uncertainty -
Jefferies 
    ** Five of five analysts rate the stock "buy" or higher;
their median PT is A$3.25 – Refinitiv data
    ** Stock has fallen 12.6% this year
 

($1 = 1.4514 Australian dollars)

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))