Jefferies trims PT on Australia's Peter Warren Automotive on weak profit forecast

Peter Warren Automotive Holdings

28/05/2024 20:08

** Jefferies analysts expect Peter Warren Automotive's
 PWR.AX  earnings to be impacted by higher supply from carmakers
and low demand from consumers 
    ** Brokerage cuts its PT on auto dealerships operator to
A$2.40 from A$3.00
    ** Company forecast on Tuesday underlying profit before tax
for FY24 to be in the range of A$52 mln ($34.55 mln) to A$57
mln, 12% below Visible Alpha consensus midpoint, according to
Citi
    ** Jefferies says dealerships are being impacted by original
equipment manufacturer supply normalising after years of
constraints leading to retail discounting and gross profit
pressure
    ** Jefferies flags "tougher macro leading to more sluggish
demand for cars"
    ** Stock down 23.4% YTD, based on last close

($1 = 1.5049 Australian dollars)

 (Reporting by Aaditya Govind Rao in Bengaluru)
 ((Aaditya.govindrao@thomsonreuters.com;))