While the long-term opportunity remains appealing, UBS believes there are a number of near-term uncertainties including the potential impact of current lockdowns and the ability and time required to successfully renegotiate pricing increases.
Additionally, there are labour and parts inflation pressures as well as recent staff turnover within senior management, explains the broker. The rating is downgraded to Neutral from Buy and the target price falls to $0.56 from $0.70.
The analyst considers the risk-return balance has shifted, at least until there’s more visibility on the above-mentioned concerns.
Sector: Retailing.
Target price is $0.56.Current Price is $0.56. Difference: $0.00 – (brackets indicate current price is over target). If AMA meets the UBS target it will return approximately 0% (excluding dividends, fees and charges – negative figures indicate an expected loss).
