Peter Warren Automotive falls, Citi cuts to 'sell' on weak forecast

Peter Warren Automotive Holdings

29/05/2024 01:54

(Adds share moves, Citi's comments)
    ** Shares of Peter Warren Automotive  PWR.AX  drop as much
as 2.9% to a record low of A$1.815
    ** Analysts at Citi downgrade the stock to "sell" from
"neutral", trim PT to A$1.70 from A$2.40
    ** Jefferies cuts PT to A$2.40 from A$3.00, keeps "buy"
rating
    ** Auto dealerships operator 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
    ** Citi sees "further downside risks from a weakening
consumer and excess inventory"
    ** 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;))