MOTORCYCLE HOLDINGS LIMITED (MTO)
Share Price Analysis and Chart

02/07/2025

1

Upgrade to Buy from Accumulate

$4.10

27.33%

Morgans raises its target for Motorcycle Holdings to $4.10 from $2.75 and upgrades to Buy from Accumulate. These changes follow the acquisition of seven profitable dealerships from Peter Stevens Motorcycles, including four Harley-Davidson outlets, for -$7-9m.

The broker expects the acquisition will lift the company's national market share to around 20% and be EPS accretive from 1H FY26, with additional upside from operational synergies.

Peter Stevens Motorcycles delivered FY24 revenue of $144m and profit (PBT) of $2.5m, with management at Motorcycle Holdings assuming $150m and $3m respectively in FY26. Gradual margin improvement toward group levels is also expected.

Morgans lifts its FY26 and F27 EPS forecasts by 10.5% and 11.6%, respectively, and suggests the group is well-positioned for further organic and inorganic growth.

FORECAST
Morgans forecasts a full year FY26 dividend of 18.82 cents and EPS of 31.37 cents.

10/09/2025

1

Buy

$4.13

28.26%

Moelis assesses Motorcycle Holdings' FY25 result as strong, with group revenue ahead of expectations due to strong 25% growth in the wholesale distribution business.

Gross margin, however, slipped -50bps to 25.1% while EBITDA margin was stable at 7.8%. 

The company didn't provide FY26 guidance but pointed to focus on cost-out initiatives, digital and data transformation, and Mojo brand momentum.

The broker is positive about margin improvement in FY26 and beyond. FY26 EPS forecast lifted by 7.9% and FY27 by 7.3%.

Buy. Target rises to $4.13 from $3.38.

FORECAST
Moelis forecasts a full year FY26 dividend of 19.10 cents and EPS of 34.10 cents.
Moelis forecasts a full year FY27 dividend of 20.50 cents and EPS of 36.70 cents.