ARB Corp’s first-quarter sales growth was strong, observes UBS.
After the 2020 federal budget announcements, Citi has a more favourable view of ARB Corp’s outlook following the expansion and extension of the instant asset write-offs program combined with the likelihood of international borders remaining closed till late 2021.
The broker expects ARB Corp’s second-quarter sales growth to slow to 16% as the company cycles tougher comps, slowing super withdrawals slow and scaling back of the JobKeeper.
FY21-23 earnings forecasts have been upgraded due to better than expected first-quarter sales and earnings.
Neutral rating retained. Target rises to $30.30 from $23.45.
Sector: Automobiles & Components.
Target price is $30.30.Current Price is $30.29. Difference: $0.01 – (brackets indicate current price is over target). If ARB meets the Citi target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
