Supply Constraints Return to Haunt Eagers Automotive
Supply Constraints Return to Haunt Eagers Automotive
Car dealer Eagers Automotive's trading update was very positive regarding new orders. However, Jefferies says the return of vehicle-supply constraints took the gloss off it. Analyst John Campbell says the supply crunch mainly involves Toyota vehicles and cars that don't run on traditional motor fuels.
Cautious Approach from Analysts
Jefferies retains a buy call and A$30.50/share price target on Eagers, but cut FY26 pretax profit estimates by 3%. Australian motorists are buying electric vehicles and other clean-energy cars at pace as fuel prices surge, straining the retail-supply chain.
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