MOTORCYCLE HOLDINGS LIMITED (MTO)
Share Price Analysis and Chart

12/07/2024

3

Hold

$1.40

6.87%

Summing up the outlook for Auto & Parts players on the ASX, Morgans sees relatively challenging short-term industry dynamics for auto dealers, favourable conditions for Novated, and a mixed bag within Aftermarket segments.

For auto retailers, the broker is anticipating 1H pressure on the return on sales (ROS) metric. Novated lease settlements and earnings for the half are expected to be supported by a 12% increase in total electric vehicle deliveries.

For Motorcycle Holdings, the broker maintains a Hold rating and $1.40 target price.

FORECAST
Morgans forecasts a full year FY24 dividend of 8.00 cents and EPS of 16.00 cents.
Morgans forecasts a full year FY25 dividend of 9.00 cents and EPS of 14.00 cents.

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08/03/2024

3

Market Weight

$1.59

21.37%

Motorcycle Holdings confirmed first half results were in line with the recent guidance downgrade, which disappointed Wilsons. The earnings decline reflected a sharp contraction in demand late in the half.

The broker observes management is executing well and there is evidence of market share and effective cost control. Caution prevails because of the relatively high discretionary nature of the demand and the volatility in trading.

Despite the share price being "fundamentally cheap", Wilsons retains a Market Weight rating. Target is reduced to $1.59 from $1.93.

FORECAST
Wilsons forecasts a full year FY24 dividend of 9.00 cents and EPS of 19.00 cents.
Wilsons forecasts a full year FY25 dividend of 11.00 cents and EPS of 23.90 cents.