ARB Corporation shares fall as Citi downgrades to 'neutral'
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The news: ARB Corporation shares dropped after Citi downgraded the car accessories supplier and slashed its target price on the stock.
The numbers: ARB shares were down 3.9% to $33.85 at 10:50am AEDT, having slumped nearly 30% since the start of October.
Citi downgraded its rating from 'buy' to 'neutral' and cut its target price by 23% from $51.20 to $39.54.
The context: Citi analysts said they are "incrementally more cautious" on ARB's near-term outlook, noting that the latest Australian new car sales data revealed an acceleration in the rate of decline in February relative to January.
The trend is negative for the company's second-half Australian aftermarket sales, Citi said, with weakness likely to persist deeper into the calendar year.
The source: Citi research
