Stryker shares tumble despite strong Q2 results and raised guidance
Investing.com - Jefferies upgraded ARB Corp Ltd (ASX:ARB) stock rating from Hold to Buy on Wednesday, while raising its price target to AUD36.00 from AUD34.50.
The upgrade comes as Jefferies sees a potential rebound in discretionary spending following recent challenges for the Australian 4x4 accessories manufacturer, which has faced consumer pullback in both Australia and the United States.
ARB’s stock has experienced a significant de-rating, falling from 32 times mid-2024 earnings to 22 times currently, creating what Jefferies views as a buying opportunity ahead of improving market conditions.
The research firm cited several positive catalysts for ARB, including the beginning of interest rate cuts, continued solid 4x4 vehicle sales in key markets, and potential improvement in Middle East geopolitical conditions.
Jefferies also adjusted its earnings per share forecasts for ARB, increasing its FY26 estimate by 1% and its FY27 projection by 3%, reflecting growing confidence in the company’s medium-term outlook despite recent headwinds from U.S. tariffs and competitive pressures.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.