AMA GROUP LIMITED (AMA)
Share Price Analysis and Chart

20/06/2024

1

Speculative Buy

$0.07

52.17%

Bell Potter views the update from AMA Group as "mixed" at best.

The refinancing of senior debt maturing in October 2024, with convertible bonds maturing in March 2025, remains a concern for the analyst.

AMA Group upgraded FY24 EBITDA guidance at the lower end of the range between $44m and $42m, with Bell Potter's forecast EBITDA at $44m.

The analyst highlights the potential need for an equity raise due to the refinancing delay as a risk, despite business improvements and a board restructure.

Speculative Buy rating unchanged. Target price lowered to 7c from 8c.

FORECAST
Bell Potter forecasts a full year FY24 dividend of 0.00 cents and EPS of minus -0.90 cents.
Bell Potter forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.00 cents.

25/06/2024

1

Buy

$0.14

204.35%

Canaccord Genuity analysts have updated their outlook on AMA Group, maintaining a Buy rating and keeping the price target unchanged at $0.14.

The broker highlights the positive update by company management, which includes lifting the bottom end of FY24 guidance for pre-AASB16 EBITDA to $44-49m from $42-49m previously.

The broker notes the AMA Group Board has resolved to divest the ACM Parts business, classifying it as a discontinued operation, and has also completed recent board changes.

Financial forecasts have been adjusted, with FY24 EBITDA revised to $44.7m from $43.5m, and FY25 EBITDA to $56.5m from $55.1m. The broker remains optimistic about AMA's strategic moves to improve its financial position and operational focus.

FORECAST
Canaccord Genuity forecasts a full year FY24 dividend of 0.00 cents and EPS of minus -7.00 cents.
Canaccord Genuity forecasts a full year FY25 dividend of 0.00 cents and EPS of 67.00 cents.