Insights

ARB (ASX:ARB) share price charges 6% higher on broker upgrade

The ARB Corporation Limited (ASX: ARB) share price is finishing the week in a very positive fashion. In afternoon trade,…
The post ARB (ASX:ARB) share price charges 6% higher on broker upgrade appeared first on The Motley Fool Australia. –

The ARB Corporation Limited (ASX: ARB) share price is finishing the week in a very positive fashion.

In afternoon trade, the 4×4 parts manufacturer’s shares are up 6% to $50.68.

Why is the ARB share price charging higher?

The catalyst for the rise in the ARB share price today appears to have been a broker note out of Citi this morning.

That note was in response to the company’s annual general meeting update on Thursday which revealed that FY 2022 has started positively.

The company advised: “Pandemic induced restrictions during the first quarter of FY2022 impacted ARB in a number of its markets, including significant lockdowns in Victoria and New South Wales. Despite these restrictions, trading performance remained strong during the quarter with pleasing sales and profit growth.”

“ARB’s order book remains strong, both domestically and internationally, and the Company is continuing with its product development work, store development program in Australia and the expansion of its manufacturing capability,” it added.

What did Citi say?

In response to the update, the team at Citi upgraded the company’s shares to a buy rating with a $55.45 price target.

Based on the current ARB share price, this implies potential upside of 9.4% for investors even after today’s strong gain.

Citi commented: “The 1Q22 trading update revealed better profit momentum despite lockdowns in NSW and Victoria. We upgrade ARB to Buy (from Neutral) following the -11% share price decline since its August 2021 peak as we see potential for sales and profit to accelerate over 2Q22e with NSW and Victoria reopening.”

“ARB also has significant medium-term growth drivers including i) its partnership with Ford, ii) distribution gain opportunities in the US, iii) opportunities to expand in Europe and iv) expansion of its Thailand manufacturing facility,” it added.

The ARB share price may now be up 63% in 2021, but Citi appears to believe it could run even higher.

The post ARB (ASX:ARB) share price charges 6% higher on broker upgrade appeared first on The Motley Fool Australia.

Should you invest $1,000 in ARB right now?

Before you consider ARB, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ARB wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Why ARB, Flight Centre, HUB24, and Qantas shares are rising today

ASX 200 (ASX:XJO) midday update: Rio Tinto cuts guidance, Treasury Wine disappoints

ARB Corporation (ASX:ARB) share price rises as stock goes ex-dividend

These ASX shares are surging on the back of key Aussie lifestyle trends

Top brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!