UBS believes the company is well-positioned to withstand the disruptions from the pandemic over the course of 2020.
Easing social isolation measures across Australasia, limited air travel and ongoing declines in new car sales support an improving backdrop for aftermarket automotive parts demand.
Offsetting this is FY21 margin pressures from the weaker AUD/USD and increased competition in the filtration market. Neutral maintained. Target is reduced to $9.20 from $11.50.
UBS believes GUD Holdings has sufficient liquidity to support operational flexibility and any opportunistic acquisitions.
Sector: Consumer Durables & Apparel.
Target price is $9.20.Current Price is $8.94. Difference: $0.26 – (brackets indicate current price is over target). If GUD meets the UBS target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
