As the broader Australian automotive aftermarket has recovered strongly after the easing of lockdown measures, Macquarie revises forecasts higher, although acknowledges a reinstatement of lockdown in Victoria emphasises the risks.
The broker believes the automotive business is well-placed to perform strongly in the medium term, given its highly defensive characteristics.
The stock has rallied from its lows in March and appears fairly valued so the broker retains an Neutral rating, raising the target 21% to $11.50.
Sector: Consumer Durables & Apparel.
Target price is $11.50.Current Price is $11.77. Difference: ($0.27) – (brackets indicate current price is over target). If GUD meets the Macquarie target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).