A recovery in volumes continues, although the labour cost pressures and parts inflation are a headwind UBS observes. There is likely to be a lag in passing through cost inflation, which could push out the margin recovery.
The broker still considers the company a beneficiary of consolidation opportunities and higher volumes in a post-pandemic world.
Valuation remains attractive and the broker retains a Buy rating. Target is $0.70.
Sector: Retailing.
Target price is $0.70.Current Price is $0.58. Difference: $0.12 – (brackets indicate current price is over target). If AMA meets the UBS target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
