Macquarie reviews the various segments of the company’s business and concludes, as supply constraints normalise, that demand could amount to 18,500 novated vehicles per year for 18 months from the second half of 2022.
The broker assumes novated yields move to a cumulative 6% over the first half. Estimates for earnings per share are reduced for 2021-23 to reflect expectations of delayed vehicle supply and the impact of lockdowns on consumer confidence.
Neutral retained. Target rises to $7.90 from $7.76.
Sector: Commercial & Professional Services.
Target price is $7.90.Current Price is $7.71. Difference: $0.19 – (brackets indicate current price is over target). If SIQ meets the Macquarie target it will return approximately 2% (excluding dividends, fees and charges – negative figures indicate an expected loss).