FY20 adjusted pre-tax profit fell -21% amid disruptions from the pandemic compounded by weaker new vehicle demand. UBS notes new car orders are up strongly across May-July, with benefits from fiscal stimulus and substitution in consumer expenditure.
The broker still envisages the luxury segment will take share and the valuation is undemanding. Buy rating retained. Target is raised to $1.50 from $1.40.
Sector: Retailing.
Target price is $1.50.Current Price is $1.20. Difference: $0.30 – (brackets indicate current price is over target). If ASG meets the UBS target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
