ASG – Macquarie rates the stock as Neutral

The auto market has recorded its longest run of weakness since the GFC, the broker notes, and its only getting worse. Autosports result, in line with a pre-release, demonstrated a high degree of financial and operational leverage in the company’s business model.

Earnings numbers will be cycling softer comparables ahead but while the broker feels a nadir may be approaching, it would like to see more evidence before becoming more confident, while noting acquisition optionality for the company is compelling.

Neutral retained, target rises to $1.15 from $1.00.

Sector: Retailing.

Target price is $1.15.Current Price is $1.15. Difference: $0.00 – (brackets indicate current price is over target). If ASG meets the Macquarie target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

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