ARB is Australia’s biggest manufacturer and distributor of hard-working 4×4 vehicle accessories. ARB has become a $2.5bn business that enjoys a global presence with offices across the US, Europe and the Middle East and an exporting network connecting more than 100 countries. We believe things are slowly improving at ARB as cost pressures decline although February 1H earnings still showed revenue slipping by -5.1% to $341mn, the stock fell another -5.7% yesterday after delivering what we viewed as an inline trading update, illustrating why we feel it’s a bit early to catch this particular falling knife.
- We believe ARB is starting to represent value but as a potential recession looms it feels too early to buck this particular downtrend.
MM will consider ARB in the mid-high $20 region
Add To Hit List
