Autosports Group provided a strong trading update at the AGM, UBS assesses. Management now expects a first half pre-tax profit of $20m.
The business has been supported by strong new & used car margins as well as new luxury vehicle volumes.
The broker believes, if the company can also sustain improved momentum in the servicing and parts business, there is scope for outperformance. Buy rating retained. Target rises to $1.64 from $1.50.
Target price is $1.64.Current Price is $1.48. Difference: $0.16 – (brackets indicate current price is over target). If ASG meets the UBS target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).