First half results were in line with estimates and the pre-release. Credit Suisse upgrades to Neutral from Underperform on recent share price weakness.
Upside is envisaged as further traction is obtained in the US and motor vehicle sales improve. The broker is not excessively bullish, being uncertain whether a very strong second half result will be bettered.
The US remains key to the stock over the next couple of years, and Credit Suisse retains a $40.60 target.
Sector: Automobiles & Components.
Target price is $40.60.Current Price is $41.57. Difference: ($0.97) – (brackets indicate current price is over target). If ARB meets the Credit Suisse target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).
