2238 GMT - Investors in car dealership Eagers Automotive were too optimistic about a 2H recovery, Jefferies says. Demand and cost pressures have persisted beyond the supply constraints that bedevilled Eagers in 1H. Eagers now expects FY26 revenue of A$17.3 billion-A$17.5 billion, missing consensus forecasts for A$17.8 billion made ahead of the 3Q update. Still, Canada remains a bright spot for Eagers. It has outperformed there, despite a softer market. That offers upside to Eagers's share price as the company expands there, Jefferies says. Jefferies retains a buy call on Eagers, but cuts its EPS forecasts by 7-18% in FY26-28. Its price target falls 9.1% to A$25.00/share. Eagers ended Thursday at A$16.61.
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