For a read through for Eclipx Group, Macquarie reviews the 3Q performance of key competitor Element (Custom Fleet) and notes ongoing microchip shortages causing OEM production delays. However, Element expects normalisation of production by mid-2023.
After that, a multi-quarter surge in revenue should occur to clear the excess order backlog, points out the broker, The Outperform rating and $2.82 target price are retained for Eclipx Group.
Sector: Diversified Financials.
Target price is $2.82.Current Price is $2.50. Difference: $0.32 – (brackets indicate current price is over target). If ECX meets the Macquarie target it will return approximately 11% (excluding dividends, fees and charges – negative figures indicate an expected loss).
