FY19 results were affected by accounting changes and the reclassification of refrigerated logistics as discontinued. Credit Suisse expects this will be the last time the business is reported on as a separate entity.
Automotive operating conditions remain challenging, including credit availability. Nevertheless, Automotive Holdings appears to have found a base, in the broker’s view, and outperformed the broader market.
Neutral rating maintained. Target rises to $3.21 from $3.05.
Target price is $3.21.Current Price is $3.22. Difference: ($0.01) – (brackets indicate current price is over target). If AHG meets the Credit Suisse target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).