Eagers Automotive released FY21 profit (NPBT) guidance -5% adrift of consensus estimates with key markets impacted by 2H lockdowns, explains Morgans. Along with the impact of supply constraints, management estimates a profit (PBT) impact of circa -$20-25m.

The broker reduces its target price to $17.20 from $20.45. The Add rating rating is maintained, given the potential for EA123 strategy execution and ongoing efficiency improvements.

Sector: Retailing.

Target price is $17.20.Current Price is $14.20. Difference: $3.00 - (brackets indicate current price is over target). If APE meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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