Macquarie has revised its forecasts for G.U.D. Holdings taking the AutoPacific Group acquisition into consideration, with earnings per share forecasts increasing 1%, 10% and 11% through to FY24.
The broker notes AutoPacific Group is the 4WD towing market leader with an approximate 85% market share, leveraged to a large and growing total addressable market. G.U.D. Holdings should benefit from diversification as new vehicle sales normalise.
The Outperform rating is retained and the target price increases 4% to $16.40.
Sector: Consumer Durables & Apparel.
Target price is $16.40.Current Price is $12.13. Difference: $4.27 – (brackets indicate current price is over target). If GUD meets the Macquarie target it will return approximately 26% (excluding dividends, fees and charges – negative figures indicate an expected loss).