2234 GMT - The market may be underestimating the earnings potential of GUD Holdings as demand for products used in four-wheel-drive vehicles improves, investment bank Wilsons says. "Taking a two-year forward view, we see potential upside to consensus Ebit of A$10 million-A$13 million, driven by ECB (A$5 million) and APG (A$5 million-A$8 million)," says analyst James Ferrier, namechecking GUD business units. This assumes Australian new vehicle sales stay strong and New Zealand's economy recovers. Wilsons also expects GUD will continue to pursue M&A. It sees vehicle suspension as an obvious gap in GUD's product offering, particularly as the company wants to be a leader in 4WD accessories. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
May 15, 2024 18:34 ET (22:34 GMT)
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