Morgans reviews forecasts for stocks under its Auto coverage on the expectation of weakening consumer demand and limited upside for near-term vehicle supply in Australia. June new vehicle sales (deliveries) were down -9.7% on the previous corresponding period.
While industry commentary has remained positive on demand, notes the analyst, cost pressures have increased and US consumer demand has started to weaken.
The broker downgrades forecasts for Eagers Automotive and the target price falls to $14.00 from $14.40, while the Add rating is unchanged.
Sector: Retailing.
Target price is $14.00.Current Price is $9.85. Difference: $4.15 – (brackets indicate current price is over target). If APE meets the Morgans target it will return approximately 30% (excluding dividends, fees and charges – negative figures indicate an expected loss).
