MOTORCYCLE HOLDINGS LIMITED (MTO)
Share Price Analysis and Chart

28/11/2024

1

Add

$2.25

24.65%

Motorcycle Holdings announced a positive trading update for the four months to October at the AGM. Morgans notes higher-than-expected sales growth of 8% compared to the previous corresponding period, including Mojo sales up 6%, services and repairs up 8%, and finance and insurance up 5%.

Wholesale parts and accessories grew 5%, while retail increased 6%. Management highlighted the cost of doing business remained challenging, with operating expenses advancing 5% over the period. Despite this, the company improved its earnings margin.

Morgans upgrades EPS forecasts by 9.7% for FY25 and 9.1% for FY26.

The target price increases to $2.25 from $1.90 with an unchanged Add rating.

FORECAST
Morgans forecasts a full year FY25 dividend of 12.00 cents and EPS of 23.00 cents.
Morgans forecasts a full year FY26 dividend of 13.00 cents and EPS of 26.00 cents.

10/12/2024

1

Buy

$2.60

44.04%

Moelis notes a stronger-than-expected year-to-date trading update for Motorcycle Holdings, with revenues rising by 8% year-on-year.

Growth was driven by a 13% increase in used bike retail units and gains in parts, accessories, and service revenues, explains the broker.

The analysts highlight the company’s cost management initiatives, including property consolidation and system upgrades, which are expected to offset rising expenses.

The addition of new CFMOTO models continues to expand market share and support margin growth, observes the broker.

Moelis implements substantial EPS upgrades of 20-30% for FY25-27 forecasts, reflecting operating leverage as the business recovers from cyclical lows. The new management team is seen as well-placed to execute strategic growth initiatives.

Buy rating. The target price rises to $2.60 from $2.37.

FORECAST
Moelis forecasts a full year FY25 dividend of 13.10 cents and EPS of 23.30 cents.
Moelis forecasts a full year FY26 dividend of 14.70 cents and EPS of 26.70 cents.