ARB Corporation shares lift as Citi upgrades stock to 'buy'
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More news: ARB Corporation shares have remained high throughout the day as Citi analysts upgraded their position on the car parts and accessories company's stock, which has also been backed by UBS analysts.
Shares in ARB Corporation had increased 3.9% to $34.46 at 2:54pm AEST.
Citi analysts upgraded their position on ARB Corporation from ‘neutral’ to ‘buy’ as they believe "improvement in topline momentum” could overshadow ongoing risks to margins.
The analyst note said that additional interest rate cuts over the next 12 months could drive a pickup in new vehicle sales — potentially driving increased demand for aftermarket parts and accessories — and that accessories for the popular BYD Shark are expected to become available this year.
However, Citi still sees downside risk to ARB’s estimated Australian aftermarket sales for the second half of calendar year 2025 “due to the cyclical weakness in new vehicle sales” and because the company doesn’t currently offer parts for the BYD Shark 6.
ARB Corporation, Amotiv shares soar as UBS flags growth
The news: ARB Corporation and Amotiv were among the biggest gainers on the ASX 200 by afternoon trade as UBS analysts flagged sales growth for utes and four wheel drive vehicles which could provide a tailwind for secondary market dealers.
The numbers: At 12:49pm AEST shares in ARB Corporation had lifted 4.6% to $34.69 while shares in Amotive were up 4% to $8.67.
The context: The UBS note flagged that the sales index for Amotiv’s AutoPacific Group improved by 6% year-on-year while ARB’s index for 4x4 products was up 10%.
The analysts also flagged that new vehicle deliveries in June 2025 was up 6% year-on-year, which could be a tailwind for aftermarket demand.
What they said: On the aftermarket sector, UBS said: "Overall now past worst of [comparables] and sequential trend looks more positive but seasonally volatile month-to-month".
The sources: UBS research, Citi Research
