An update from ARB Corp showed a 4% beat on Macquarie’s forecast for first half revenues and a 13-16% beat on the expected final profit range of $90-92m. Revenues and margins contnue to track strongly.
ARB’s succes comes from solid inventory levels amid everyone else’s supply shortage meeting ongoing strong demand.
The company is well placed to offset any headwinds from supply chain disruption, input costs and so forth through price increases, the broker suggests, and should benefit from scale efficiencies.
Neutral retained, traget rises to $49.30 from $46.00.
Sector: Automobiles & Components.
Target price is $49.30.Current Price is $42.77. Difference: $6.53 – (brackets indicate current price is over target). If ARB meets the Macquarie target it will return approximately 13% (excluding dividends, fees and charges – negative figures indicate an expected loss).
