GUD – Credit Suisse rates the stock as Downgrade to Neutral from Outperform

Channel checks of the auto market conducted by Credit Suisse suggest after-market growth is trending lower and competition is increasing among part suppliers. The broker notes that while GUD has an excellent track record of navigating through increased competition in the past, its relative reliance on auto is now greater than it ever has been.

Credit Suisse has not changed forecasts but sees sufficient downside risk emerging to warrant a pullback to Neutral from Outperform. Target falls to $12.00 from $13.35.

Sector: Consumer Durables & Apparel.

Target price is $12.00.Current Price is $10.51. Difference: $1.49 – (brackets indicate current price is over target). If GUD meets the Credit Suisse target it will return approximately 12% (excluding dividends, fees and charges – negative figures indicate an expected loss).


About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →