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PWR - Morgans rates the stock as Add

PUBLISHED

2021-11-09

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Peter Warren Automotive has acquired Penfolds Motor for $104m to enter the market in Victoria. This will provide scale and increase revenue by 24%. The deal will be funded in cash and scrip.

Morgans believes this consolidation opportunity is a gateway to meaningful growth and there remains further capacity on the balance sheet. Add rating retained. Target rises to $4.16 from $4.02.

Sector: Retailing.

 

Target price is $4.16.Current Price is $3.17. Difference: $0.99 - (brackets indicate current price is over target). If PWR meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).