ARB shares have continued their decline following a cautious assessment from Citi analyst Sam Teeger. The analyst’s updated view follows ARB’s January trading update, which has led to a more tempered outlook on the stock. ARB Corporation designs, manufactures, and distributes accessories for four-wheel drive vehicles. The company also has a presence in the United States.
Teeger highlighted ongoing difficulties in the Australian car parts and fitting sector. Despite incentives and lobbying efforts to secure visas for overseas workers, these challenges have proven persistent. While maintaining a buy rating on the stock, Citi acknowledges that ARB’s core Australian business faces increasing dependence on the success of specific new vehicle models where ARB is expected to see higher accessory sales, such as the Toyota Hilux and Ford Ranger Super Duty.
Looking ahead to CY26, the analyst anticipates that potential interest rate rises could further dampen demand in the Australian market. The stock has already experienced significant losses this month. Shares in ARB were last trading down by 2.2 per cent.
This latest dip brings the total losses for ARB shares to over 21 per cent for the month to date. Investors are closely monitoring the company’s performance in light of these emerging headwinds and the evolving macroeconomic environment.
