Eagers Automotive released FY21 profit (NPBT) guidance -5% adrift of consensus estimates with key markets impacted by 2H lockdowns, explains Morgans. Along with the impact of supply constraints, management estimates a profit (PBT) impact of circa -$20-25m.
The broker reduces its target price to $17.20 from $20.45. The Add rating rating is maintained, given the potential for EA123 strategy execution and ongoing efficiency improvements.
Sector: Retailing.
Target price is $17.20.Current Price is $14.31. Difference: $2.89 – (brackets indicate current price is over target). If APE meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
