MOTORCYCLE HOLDINGS LIMITED (MTO)
Share Price Analysis and Chart

28/11/2024

1

Add

$2.25

21.62%

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.

09/09/2024

1

Buy

$2.37

28.11%

Motorcycle Holdings reported FY24 results which came in at the upper end of guidance.

Moelis observes revenue met expectations while gross profit margins were slightly lower than anticipated at 26%, against 27% in FY23.

The broker highlights what appears to be some demand recovery post a prolonged period of weakness from Nov 2023 to April 2024, which infers the market might be bottoming.

Management is looking to cost out initiatives for FY25 as well as an improvement in margins.

The analyst lifts EPS forecasts by 20% in FY25 and 30% in FY26. Buy rating unchanged. Target price $2.37.

FORECAST
Moelis forecasts a full year FY25 dividend of 10.40 cents and EPS of 18.90 cents.
Moelis forecasts a full year FY26 dividend of 11.20 cents and EPS of 19.90 cents.